<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>cast-apr.txt
<DESCRIPTION>BODY OF N-30
<TEXT>
Dear Shareholder:
The six months ended April 30 were a roller-coaster in the markets. The Dow
opened on November 1, 2001 at 9075 and closed on April 30, 2002 at 9946,
while the Nasdaq began at 1690 and closed on April 30, 2002 at 1688. The
Dow recovered from the lows it reached in the aftermath of September 11;
the Nasdaq's performance was less impressive. After a volatile run-up and
an equally volatile decline, especially in the technology sector, we are
now in a narrow trading range, and we expect that to continue for some
time. For the six-month period, the Castle Convertible Fund returned 7.61%,
while the S&P was up 2.31% and the Lehman Brothers Government/Credit Bond
Index was down 1.00%.
The last quarter of 2001 was a difficult one for the economy and for the
country. The economy had already entered a recession in the summer, but the
events of September 11 pushed the markets lower and raised serious concerns
about the future. The first quarter of 2002 showed signs that the recession
was coming to a swift end and that the economic downturn would be far less
severe than some had feared. The recession was largely the result of a halt
in business spending and the need for companies to eliminate excess
inventories. Consumers, who make up two-thirds of America's $10 trillion
economy, continued to spend during this period, with personal consumption
expenditures growing steadily at more than 2.5%. As a result of the
inventory draw-down, tax-cuts, and emergency government spending, the
economy actually grew at an annual rate of 5.6% in the first quarter of
2002, while productivity showed remarkable gains of 8.46%, in part due to
increased efficiency brought about by the widespread integration of
information technologies.
The Federal Reserve, after a dramatic series of rate cuts in the fall of
2001 that brought the Fed Funds rate to 1.75%, adopted a neutral stance,
and rates stayed unchanged in the first months of 2002. We do not expect
that this will change until the end of the year, at the earliest, and even
then, we expect the tightening to be modest. Government fiscal policy for
2002 and beyond will provide some economic stimulus even as rates remain
low. The 10-year note has also been stuck in a low-yield range, fluctuating
only marginally at around 5.00%. The bond market, much like the stock
market, has been in a narrow range, reflecting continued unease on Wall
Street and uncertainty about the political and economic future.
The concerns of Wall Street notwithstanding, going forward, the macro-
economic outlook is positive. The overwhelming majority of economic data
suggests that the economy is growing at a rate of about 3% a year. The
equity markets and Wall Street in general however, have been marching to
the beat of a different drummer and focusing instead on the negatives.
While Wall Street mentality and economic reality may diverge for a while,
corporate America has become more efficient and more productive and the
overall economy is healthy; sooner rather than later, both financial
markets will reflect that fact. This is a challenging period, no doubt, but
many companies have become more efficient as a result. We will continue to
identify such companies, and we anticipate that they will yield strong
results in the months ahead.
Respectfully submitted,
/s/ Dan C. Chung
Dan C. Chung
Chief Investment Officer
June 7, 2002
CASTLE CONVERTIBLE FUND, INC.
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2002
<TABLE>
<CAPTION>
Principal Corporate Convertible
Amount Bonds-31.5% Value
------------------------------------------------------------------------------
<s> <c> <c>
AEROSPACE & DEFENSE-.5%
$ 250,000 EDO Corporation, Cv. Sub.
Notes, 5.25%, 4/15/07(a) $ 303,873
-----------
AIRLINES-.8%
500,000 Continental Airlines, Inc., Cv.
Sub. Notes, 4.50%, 2/1/07 472,500
-----------
COMMUNICATIONS EQUIPMENT-.9%
750,000 Juniper Networks Inc., Cv.
Sub. Notes, 4.75%, 3/15/07 558,750
-----------
COMPUTER SOFTWARE-.9%
500,000 Computer Associates
International Inc., Cv. Senior
Notes, 5.00%, 3/15/07(a) 537,500
-----------
COMPUTERS & PERIPHERALS-1.0%
500,000 Agilent Technologies, Inc., Cv.
Senior Deb., 3.00%, 12/1/21(a) 576,250
-----------
ENERGY-2.5%
750,000 Calpine Corporation, Cv. Senior
Notes, 4.00%, 12/26/06(a) 706,875
1,000,000 Hanover Compressor Co., Cv.
Senior Note, 4.75%, 3/15/08 825,000
-----------
1,531,875
-----------
HEALTH CARE-6.0%
500,000 Community Health Systems,
Inc., Cv. Sub. Notes, 4.25%,
10/15/08 546,250
1,250,000 Omnicare, Inc., Cv. Sub. Deb.,
5.00%, 12/1/07 1,200,625
750,000 Province Healthcare Company,
Cv. Sub. Notes, 4.50%,
11/20/05 877,500
1,000,000 Total Renal Holdings Inc., Cv.
Sub. Deb., 7.00%, 5/15/09 1,023,800
-----------
3,648,175
-----------
HEALTH CARE ADMINISTRATIVE
SERVICES-1.3%
500,000 AmeriSource Health Corp., Cv.
Sub. Notes, 5.00%, 12/1/07 813,125
-----------
MANUFACTURING-2.4%
1,250,000 Quanex Corporation, Cv. Sub.
Deb., 6.88%, 6/30/07 1,425,781
-----------
REAL ESTATE-3.1%
1,750,000 Equity Office Properties, Ltd.
Partnership, Sr. Exchange
Notes, 7.25%, 11/15/08 1,849,908
-----------
RESTAURANTS & LODGING-2.4%
1,500,000 Hilton Hotels Corp., Cv. Sub.
Notes, 5.00%, 5/15/06 1,470,000
-----------
SEMICONDUCTOR CAPITAL
EQUIPMENT-4.1%
500,000 ATMI, Inc., Cv. Sub. Notes,
5.25%, 11/15/06 793,437
500,000 Axcelis Technologies, Inc., Cv.
Sub. Notes, 4.25%, 1/15/07(a) 501,250
500,000 LAM Research Corporation, Cv.
Sub. Notes, 4.00%, 6/1/06 475,000
SEMICONDUCTOR CAPITAL
EQUIPMENT-(Continued)
500,000 Teradyne Inc., Cv. Senior Notes,
3.75%, 10/15/06 733,125
-----------
2,502,812
-----------
SEMICONDUCTORS-5.6%
1,000,000 Analog Devices, Inc., Cv. Sub.
Notes, 4.75%, 10/1/05 957,500
1,500,000 Conexant Systems Inc., Cv.
Sub. Notes, 4.00%, 2/1/07 976,800
1,250,000 Photronics Inc., Cv. Sub. Notes,
4.75%, 12/15/06 1,451,562
-----------
3,385,862
-----------
Total Corporate Convertible
Bonds (Cost $17,871,470) 19,076,411
-----------
<CAPTION>
Convertible Preferred
Shares Securities-21.7% Value
------------------------------------------------------------------------------
<s> <c> <c>
AUTOMOTIVE-1.5%
30,000 General Motors Corp., 5.25%,
Cv. Senior Deb. Cl. B. 862,500
-----------
BANKS-.9%
10,000 Washington Mutual, Inc.,
5.375%, Cv. Pfd. Income
Equity Security 530,600
-----------
BUILDING & CONSTRUCTION-1.9%
30,000 TXI Capital Trust I, 5.50%,
Cv. Pfd. 1,149,000
-----------
ENERGY-4.8%
15,000 Calpine Capital Trust III, Term
Income Deferrable, 5.00%,
Cv. Pfd. 435,000
10,000 Hanover Compressor Capital
Trust, 7.25%, Cv. Pfd. 577,500
20,000 Unocal Capital Trust II, 6.25%,
Cv. Pfd. 1,008,700
17,000 Weatherford International (EVI)
Inc., 5.00%, Cv. Sub. Pfd.
Equivalent Deb. 890,290
-----------
2,911,490
-----------
FOODS & BEVERAGES-2.9%
25,000 Wendy's Financing Inc., $2.50,
Term Cv. Pfd., Series A 1,775,000
-----------
INSURANCE-1.3%
32,000 Travelers Property Casualty
Corp., 4.50%, Jr. Cv. Sub. Pfd. 805,120
-----------
RAILROADS-6.3%
30,000 Canadian National Railway
Company, 5.25%, Cv. Pfd. 1,893,300
40,000 Union Pacific Capital Trust,
6.25%, Cv. Pfd. 1,935,000
-----------
3,828,300
-----------
SPECIALTY RETAIL-.8%
12,500 United Rentals Trust I, 6.50%,
Cv. Pfd. 497,625
-----------
UTILITIES-1.3%
15,000 El Paso Energy Capital Trust I,
4.75%, Cv. Pfd. C 768,000
-----------
Total Convertible Preferred
Securities (Cost $12,000,877) 13,127,635
-----------
<CAPTION>
Mandatory Convertible
Shares Securities-27.8% Value
------------------------------------------------------------------------------
<s> <c> <c>
AEROSPACE & DEFENSE-2.9%
5,500 Northrop Grumman Corp., Equity
Security Trust, 7.25%,
11/16/04(b) 712,360
15,000 Raytheon Company, 8.25%,
Equity Security Units,
5/15/04(b) 1,053,600
-----------
1,765,960
-----------
COMMUNICATIONS EQUIPMENT-1.6%
20,000 Motorola Inc., 7.00%, Equity
Security Units, 11/16/04(b) 960,000
-----------
DIVERSIFIED FINANCIALS-1.4%
18,000 Capital One Financial
Corporation, 6.25%, Upper
DECS 5/17/05(b) 858,996
-----------
ELECTRONIC EQUIPMENT &
INSTRUMENTS-1.4%
40,000 Solectron Corporation, 7.25%,
Adjustible Conversion
Rate Equity, 11/15/04(b) 836,000
-----------
ENERGY-5.9%
20,000 Apache Corporation, $2.015
Depository Shares, 5/15/02(b) 1,055,800
12,300 Cinergy Corp., 9.50% Feline
PRIDES 2/16/05(b) 716,475
10,000 Dominion Resources Inc.,
9.50%, Premium Income Pfd.,
11/16/04(b) 622,700
35,000 Valero Energy Corp. Trust I,
7.75%, Premium Equity
Participating Security Units,
8/18/03(b) 1,170,750
-----------
3,565,725
-----------
ENERGY & ENERGY
SERVICE-1.5%
37,500 Williams Companies Inc., 9.00%,
Income PACS 2/16/05(b) 872,625
-----------
ENERGY EQUIPMENT &
SERVICES-1.6%
35,000 TECO Energy Inc., 9.50%,
Adjustable Coversion Rate
Equity Security Units,
1/15/05(b) 951,650
-----------
HEALTH CARE-2.4%
17,000 Anthem, Inc., 6.00%, Equity
Security Units, 11/15/04(b) 1,460,470
-----------
INSURANCE-2.8%
7,500 ACE Ltd., 8.25%, Income
PRIDES, 5/16/03(b) $ 643,725
10,000 MetLife Capital Trust I, 8.00%,
5/15/03(b) 1,054,500
-----------
1,698,225
-----------
MEDICAL SERVICES-.9%
5,000 Express Scripts Automatic
Exchange Security Trust,
7.00%, 11/15/03(b) 563,300
-----------
PAPER PACKAGING & FOREST
PRODUCTS-2.2%
25,000 Boise Cascade Corporation, 7.50%
Adjustable Conversion Rate
Equity Security Units,
12/16/05(b) 1,336,250
-----------
UTILITIES-3.2%
30,000 Ameren Corporation, 9.75%,
Adjustable Conversion Rate
Equity Units, 5/15/05(b) 770,625
20,000 FPL Group Inc., 8.50%, Equity
Units, 2/16/05(b) 1,174,800
-----------
1,945,425
-----------
Total Mandatory Convertible
Securities (Cost $15,342,210) 16,814,626
<CAPTION>
Shares Common Stocks-9.9% Value
------------------------------------------------------------------------------
<s> <c> <c>
DIVERSIFIED FINANCIALS-1.7%
30,000 J. P. Morgan Chase & Co. 1,053,000
-----------
UTILITIES-8.2%
28,000 American Electric Power
Company, Inc. 1,282,400
50,000 OGE Energy Corp. 1,182,500
25,000 TXU Corp. 1,360,500
43,400 Xcel Energy Inc. 1,103,662
-----------
4,929,062
-----------
Total Common Stocks
(Cost $4,533,825) 5,982,062
-----------
<CAPTION>
Principal Short-Term
Amount Investments-8.3% Value
------------------------------------------------------------------------------
<s> <c> <c> <c>
$2,575,000 Federal Home Loan Banks,
1.79%, 5/1/02 2,575,000
2,450,000 Student Loan Marketing
Association 1.79%, 5/1/02 2,450,000
-----------
Total Short-Term Investments
(Cost $5,025,000) 5,025,000
-----------
Total Investments (Cost $54,773,382)(c) 99.2% 60,025,734
Other Assets in Excess of Liabilities .8 501,581
-------------------------------
Net Assets 100.0% $60,527,315
===============================
<FN>
--------------------
(a) Pursuant to Securities and Exchange Commission Rule 144A, these
securities may be sold prior to their maturity only to qualified
institutional buyers.
(b) These securities are required to be converted on the date listed;
they generally may be converted prior to this date at the option of
the holder.
(c) At April 30, 2002, the net unrealized appreciation on investments,
based on cost for federal income tax purposes of $54,773,382 amounted
to $5,252,352 which consisted of aggregate gross unrealized
appreciation of $5,944,272 and aggregate gross unrealized
depreciation of $691,920.
</FN>
</TABLE>
CASTLE CONVERTIBLE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2002 (Unaudited)
<TABLE>
<s> <c> <c>
ASSETS:
Investments in securities, at value (cost $54,773,382),
see accompanying schedule of investments $60,025,734
Cash 24,560
Receivable for investment securities sold 442,604
Dividends and interest receivable 389,422
Prepaid expenses 31,352
-----------
Total Assets 60,913,672
LIABILITIES:
Payable for investment securities purchased $ 288,440
Investment advisory fees payable 37,331
Directors' fees payable 4,088
Accrued expenses 56,498
----------
Total Liabilities 386,357
-----------
NET ASSETS applicable to 2,236,003 outstanding shares of $0.01
par value (10,000,000 shares authorized) $60,527,315
===========
NET ASSET VALUE PER SHARE $ 27.07
===========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2002 (Unaudited)
<TABLE>
<s> <c> <c>
INVESTMENT INCOME:
Income:
Interest $ 815,794
Dividends 918,943
-----------
Total Income 1,734,737
Expenses:
Investment advisory fees-Note 2(a) $ 220,893
Directors' fees 24,000
Shareholder reports 21,650
Custodian and transfer agent fees 17,143
Professional fees 11,110
Bookkeeping fees 9,000
Miscellaneous 18,610
----------
Total Expenses 322,406
-----------
NET INVESTMENT INCOME 1,412,331
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 767,199
Net change in unrealized appreciation (depreciation) on investments 2,207,890
----------
Net realized and unrealized gain (loss) on investments 2,975,089
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,387,420
===========
</TABLE>
See Notes to Financial Statements.
CASTLE CONVERTIBLE FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2002 Year Ended
(Unaudited) October 31, 2001
------------------------------------
<s> <c> <c>
FROM INVESTMENT ACTIVITIES:
Net investment income $ 1,412,331 $ 2,998,610
Net realized gain (loss) on investments 767,199 (118,596)
Net change in unrealized appreciation (depreciation) on investments 2,207,890 (3,921,515)
-------------------------------
Net increase (decrease) in net assets resulting from operations 4,387,420 (1,041,501)
-------------------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,475,762) (2,973,884)
Net realized gains - (1,475,762)
-------------------------------
Total dividends (1,475,762) (4,449,646)
-------------------------------
Net increase (decrease) in net assets 2,911,658 (5,491,147)
NET ASSETS:
Beginning of period 57,615,657 63,106,804
-------------------------------
End of period (including undistributed net investment income
of $529,311 and $592,742, respectively) $60,527,315 $57,615,657
===============================
</TABLE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
Six
Months
Ended Year Ended October 31,
April 30, ---------------------------------------------------
2002(i) 2001 2000 1999 1998 1997
----------------------------------------------------------------
<s> <c> <c> <c> <c> <c> <c>
Net asset value, beginning of period $ 25.77 $ 28.22 $ 26.20 $ 25.32 $ 30.08 $ 29.54
---------------------------------------------------------------
Net investment income .63 1.34 1.40 1.32 1.39 1.54
Net realized and unrealized gain (loss) on
investments 1.33 (1.80) 2.24 1.07 (2.36) 2.08
---------------------------------------------------------------
Total from investment operations 1.96 (0.46) 3.64 2.39 (0.97) 3.62
---------------------------------------------------------------
Dividends from net investment income (0.66) (1.33) (1.32) (1.46) (1.49) (1.60)
Distributions from net realized gains - (0.66) (0.30) (0.05) (2.30) (1.48)
---------------------------------------------------------------
Total Distributions (0.66) (1.99) (1.62) (1.51) (3.79) (3.08)
---------------------------------------------------------------
Net asset value, end of period $ 27.07 $ 25.77 $ 28.22 $ 26.20 $ 25.32 $ 30.08
===============================================================
Market value, end of period $ 25.30 $ 24.25 $ 22.75 $ 21.00 $ 22.75 $ 25.75
===============================================================
Total investment return based on market
value per share 7.14% 15.83% 16.51% (1.29%) 1.66% 14.01%
===============================================================
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $60,527 $57,616 $63,107 $58,583 $56,627 $67,252
===============================================================
Ratio of expenses to average net assets 1.10% 1.03% 1.06% 1.02% 1.04% 1.00%
===============================================================
Ratio of net investment income to average
net assets 4.81% 4.89% 5.05% 5.05% 5.00% 5.26%
===============================================================
Portfolio Turnover Rate 93.70% 53.81% 68.55% 60.65% 52.99% 57.58%
===============================================================
<FN>
--------------------
(i) Unaudited. Ratios have been annualized; total investment return has
not been annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
CASTLE CONVERTIBLE FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1-Summary of Significant Accounting Policies:
Castle Convertible Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as a diversified, closed-end management
investment company. The Fund's investment adviser is Fred Alger Management,
Inc. (the "Adviser").
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements.
(a) Investment Valuation-Investments in securities are valued at 4:00 p.m.
Eastern time. Listed and unlisted securities for which such information is
regularly reported are valued at the last reported sales price or, in the
absence of reported sales, at the mean between the bid and asked price or,
in the absence of a recent bid or asked price, the equivalent as obtained
from one or more of the major market makers for the securities to be
valued. Securities for which market quotations are not readily available
are valued at fair value, as determined in good faith pursuant to
procedures established by the Board of Directors. Short-term investments
are valued at amortized cost which approximates market value.
(b) Securities Transactions and Investment Income-Securities transactions
are recorded on a trade date basis. Realized gains and losses from
securities transactions are recorded on the basis of the first-in, first-
out method. Dividend income is recognized on the ex-dividend date and
interest income is recognized on the accrual basis.
Effective November 1, 2001, premiums and discounts on debt securities
purchased are amortized or accreted over the lives of the respective
securities. This change in accounting policy which has been applied
retroactively had no material effect on the accompanying financial
statements.
(c) Dividends to Shareholders-Dividends payable to shareholders are
recorded by the Fund on the ex-dividend date. Dividends from net investment
income are declared and paid quarterly. Distributions from net realized
gains are declared and paid annually after the end of the fiscal year in
which earned.
(d) Federal Income Taxes-It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income, including
net realized capital gains, to its shareholders. Therefore, no federal
income tax provision is required. At October 31, 2001, the net capital loss
carryforward of the Fund which may be used to offset future net realized
gains was approximately $119,000, and expires in 2009.
(e) Other-These financial statements have been prepared using estimates and
assumptions that affect the reported amounts therein. Actual results may
differ from those estimates.
NOTE 2-Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory Fees-Fees incurred by the Fund, pursuant to the
provisions of an Investment Advisory Contract (the "Contract") with the
Adviser, are payable monthly and computed at an annual rate of .75% based
on the Fund's average weekly net asset value.
The Contract further provides that if in any fiscal year the
aggregate expenses of the Fund (excluding interest, brokerage commissions,
taxes and extraordinary expenses) should exceed 1.5% of the first $30
million of average net assets and 1.0% of the average net assets of the
Fund over $30 million, the Adviser will reimburse the Fund for such excess
expenses. For the six months ended April 30, 2002, no reimbursement was
required pursuant to the Contract. For the six months ended April 30, 2002,
the total investment advisory fee charged to the Fund amounted to $220,893,
and the Adviser received $9,000 for bookkeeping services supplied to the
Fund at cost.
(b) Transfer Agent Fees-Alger Shareholder Services, Inc. ("Alger
Services"), an affiliate of the Adviser, serves as transfer agent for the
Fund. During the six months ended April 30, 2002, the Fund incurred fees of
approximately $7,000 for services provided by Alger Services and reimbursed
Alger Services approximately $2,000 for transfer agent related expenses
paid by Alger Services on behalf of the Fund.
(c) Directors' Fees-Certain directors and officers of the Fund are
directors and officers of the Adviser and Alger Services. The Fund pays
each director who is not affiliated with the Adviser or its affiliates an
annual fee of $8,000, payable quarterly, which is reduced proportionately
by any meetings not attended during the quarter.
(d) Other Transactions With Affiliates-At April 30, 2002, the Adviser and
its affiliates owned 451,116 shares of the Fund.
NOTE 3-Securities Transactions:
During the six months ended April 30, 2002, purchases and sales of
investment securities, excluding short-term securities, aggregated
$50,748,586 and $51,717,179, respectively.
NOTE 4-Components of Net Assets:
At April 30, 2002, the Fund's net assets consisted of:
<TABLE>
<s> <c>
Paid-in capital $54,012,068
Undistributed net investment income 529,311
Undistributed net realized gain 733,584
Net unrealized appreciation 5,252,352
-----------
NET ASSETS $60,527,315
===========
</TABLE>
NOTE 5-Distributions to Shareholders:
The tax character of distributions paid during the six months ended
April 30, 2002 and the year ended October 31, 2001 was:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, October 31,
2002 2001
-------------------------
<s> <c> <c>
Distributions paid from:
Ordinary Income $1,475,762 $2,973,884
Long-term capital gain - 1,475,762
------------------------
Total distributions paid $1,475,762 $4,449,646
========================
</TABLE>
As of April 30, 2002 the components of distributable earnings on a
tax basis were as follows:
<TABLE>
<s> <c>
Undistributed ordinary income $ 521,674
Undistributed long-term gain 741,221
Capital loss carrryforward -
Unrealized appreciation (depreciation) 5,252,352
</TABLE>
The difference between book basis and tax-basis undistributed long-
term gain is attributable primarily to the tax deferral of losses on wash
sales and net short-term capital gains taxed as ordinary income.
Castle Convertible Fund, Inc.
Board of Directors
Fred M. Alger, Chairman
James P. Connelly, Jr., Vice Chairman
Charles F. Baird, Jr.
Roger P. Cheever
Dan C. Chung
Lester L. Colbert, Jr.
Stephen E. O'Neil
Nathan E. Saint-Amand
B. Joseph White
---------------------------------------------------------------------------
Investment Adviser
Fred Alger Management, Inc.
111 Fifth Avenue, 2nd Floor
New York, NY 10003
---------------------------------------------------------------------------
Transfer Agent and Dividend Disbursing Agent
Alger Shareholder Services, Inc.
30 Montgomery Street, Box 2001
Jersey City, N.J. 07302-9811
---------------------------------------------------------------------------
Results of Annual Meeting of Shareholders
The annual meeting of the shareholders of the Fund was held on December 4,
2001. The following matters were submitted to a shareholder vote and
approved:
(i) the election or reelection of the following directors of the Fund: Fred
M. Alger, James P. Connelly, Jr., Charles F. Baird, Jr., Roger P. Cheever,
Lester L. Colbert, Jr., Stephen E. O'Neil, Nathan E. Saint-Amand, and B.
Joseph White. Each of the candidates elected or reelected received at least
1,923,621 affirmative votes and no more than 53,190 votes were withheld for
any candidate. There were 10,061 abstentions.
(ii) The ratification of the selection of Arthur Andersen LLP as the Fund's
independent public accountants for the fiscal year ending October 31, 2002:
For-1,985,895; Against-11,040; Abstain-18,603
---------------------------------------------------------------------------
This report was prepared for distribution to shareholders and to others who
may be interested in current information concerning the Fund. It was not
prepared for use, nor is it circulated in connection with any offer to
sell, or solicitation of any offer to buy, any securities.
Castle Convertible Fund, Inc.
Semi-Annual Report
April 30, 2002
(Unaudited)
[LOGO]
</TEXT>
</DOCUMENT>