Guarantee

The objective of Saratoga's Mentor Program is for you to obtain a return on your investment in shares of two to three times the S&P / ASX All Ordinaries Index and recoup your investment in the program within 12 months.

With Saratoga's mentor program, Saratoga guarantees that if you follow the mentoring guidelines, you will obtain a return of not less than 50% over the market average as measured by Saratoga Trade Simulator software against the S&P / ASX All Ordinaries Index, or a money back refund is provided.

Guarantee Guidelines

As rate of return is fully measurable, determining your performance against the market average is precise.

The guidelines are completely transparent and are as follows:

  • Select shares that clearly perform better than the S&P / ASX All Ordinaries Index;
  • Select shares that have risen over the long-term (up-trending);
  • Out-perform the share price by buying shares when they are relatively cheap (during dips) and selling them when they are relatively expensive (during peaks);
  • Plan the trade including:
    • Risk management
    • Portfolio balance

  • Trade the plan;
  • Undertake periodic reviews; and
  • Simulate investing as guided by your personal instructor.

Under this guarantee our obligations are to:

  • Guide you to achieve your objectives;
  • Assist you to achieve your objectives;
  • Provide appropriate information content;
  • Set simulated investment exercises;
  • Monitor your progress;
  • Review your simulated investments;
  • Answer your questions;
  • Do whatever else is reasonably required to achieve your objectives.

Under this guarantee your obligations are to:

  • Listen carefully with focus;
  • Ask for clarification on any aspects as they occur;
  • Implement coach or mentor suggestions;
  • Undertake simulated investing as prescribed;
  • Devote at least three hours per week to the program.

Realistic Performance Expectations

The following information has been provided to clarify performance expectations prior to your entering into a relationship with Saratoga.

  • The share market has returned an average of about 10% per annum for the last 25 years, as measured by the benchmark S&P / ASX All Ordinaries Index.
    • For example, 50% over-performance of the benchmark during this period means that your portfolio will average an increase in value of 15% per annum.
    • For example, 100% over-performance of the benchmark during this period means that your portfolio will average an increase in value of 20% per annum.

  • Client portfolio value and associated performance calculations are measured against the benchmark and calculated as the sum of:
    • The current value of your share holdings;
    • The balance of your bank account used by your for share investing;
    • Any interest received in this bank account;
    • Any dividends received from related share investing activity;
    • Any franking credits received fro related share investing activity.

  • When considering investment returns from shares, performance should be measured statistically over a five (5) to ten (10) year period, to cater for the ups-and-downs that may occur.
    o You may find it difficult to out-perform the benchmark significantly if, in any year, the benchmark is exceeding 15% per annum. For example, a portfolio return of 20% to 25% where the benchmark is increasing by 15% would still represent a very good result (certainly much better than the average).
    • You may find that you can achieve better results in a declining market. For example, should the benchmark decrease in a single year by say 20% and your portfolio only decreases by 5%, this represents a significant over-performance when compared to the benchmark, even though the annual return may seem very low.
    • You may find that you can achieve better results in a flat (or sideways) market. For example, should the benchmark neither decrease or increase in value over a single year, you may find that you can increase the value of your portfolio by say 10%. This actually represents a significant over-performance when compared to the benchmark, even though the annual return may seem quite low.