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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-01355

The Alger Funds
(Exact name of registrant as specified in charter)

360 Park Avenue South New York, New York 10010
(Address of principal executive offices) (Zip code)

Mr. Hal Liebes

Fred Alger Management, Inc.

360 Park Avenue South

New York, New York 10010
(Name and address of agent for service)

Registrant's telephone number, including area code: 212-806-8800

Date of fiscal year end: October 31

Date of reporting period: October 31, 2016

Table of Contents

The Alger Funds


Shareholders’ Letter (Unaudited)	1
Fund Highlights (Unaudited)	14
Portfolio Summary (Unaudited)	29
Schedules of Investments	31
Statements of Assets and Liabilities	71
Statements of Operations	79
Statements of Changes in Net Assets	83
Financial Highlights	91
Notes to Financial Statements	124
Report of Independent Registered Public Accounting Firm	167
Additional Information (Unaudited)	168

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Shareholders' Letter (Unaudited) October 31, 2016

Dear Shareholders,

Dangers of Bond-Like Equities Materialize
In our last shareholder letter, we discussed the risks of investors stampeding into bond-like
equities, with the trend being particularly strong in the U.S. In that letter, we noted that
bond-like equities had outperformed the overall S&P 500 Index, but we urged investors to
avoid joining the stampede because the category of equities is highly vulnerable to rising
interest rates and other risks. Due to the strong results of bond-like stocks in the months
leading up to July, U.S. equities advanced for the one-year reporting period ended October
31, 2016, but the inherent risks that we had identified started to surface in a spectacular
fashion.

During the first eight months of the reporting period, the bond-like Telecommunications
sector within the S&P 500 led with a 25.4% return. With a massive reversal, it became the
worst performing sector with a -11.7% return for the last four months of the reporting
period. Utilities and Consumer Staples, which were the second- and third-best performing
sectors during the first eight months of the reporting period with double-digit gains, were
the fourth- and fifth-worst performers with negative returns during the final four months
of the reporting period. Growth sectors, meanwhile, led with Information Technology
generating a 12.8% return during the last four months of the reporting period.

Equities Advance
From a broader perspective, the S&P 500 climbed 4.51% during the reporting period and
international equities gained 0.72% as measured by the MSCI ACWI ex USA Index. Broadly
speaking, accommodative monetary policies across the globe supported investor sentiment,
although Brexit, or the vote by the U.K. electorate to leave the European Union, drove
volatility. From a regional perspective, Latin America, North America, Japan, and Asia/
Pacific Ex-Japan outperformed while the negative returns of Europe and Africa/Mideast
trailed the overall performance of the MSCI ACWI ex USA Index. Emerging markets were
a bright spot with strengthening commodity prices, attractive valuations, and improving
economic data helping the MSCI Emerging Markets Index rally 9.67%.

In the U.S., the strong market leadership of bond-like stocks early in the reporting period
created challenging conditions for firms such as Alger that invest in companies with attractive
fundamentals and strong potential for generating earnings growth. Despite those challenges,
we continued with our more than 50-year tradition of employing extensive bottom-up
research to identify and invest in well managed companies with strong fundamentals,
including the potential for generating earnings growth. Since our founding in 1964, we have
believed that those types of companies offer the greatest potential for creating wealth for
our clients.

Our View of Risks and Bond-Like Equities
The rotation out of bond-like equities was no surprise at Alger. Indeed, in our last letter, we
identified the following risks associated with bond-like equities:

• Bond-like equities are highly interest-rate sensitive so investors who stam-

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peded into the category of stocks faced substantial interest rate risk. With
record-low interest rates, the risk of rising rates was considerable.
• Due to the stampede, valuations of sectors with companies that offer stable
earnings and high dividend yields such as Consumer Staples were historically
high, especially relative to growth sectors. At of the start of the 12-month
reporting period, for example, the P/E ratios for Consumer Staples and Util-
ities sectors traded at 20% and 12% premiums respectively, to their 20-year
medians while Information Technology and Health Care traded with P/E
ratios that were 7% and 3%, respectively, below their 20-year medians. The
large disparity in valuations implied that growth stocks were more attractive
than bond-like equities.
• Investors focused on bond-like equities could miss the potentially strong re-
turns that result when leading companies with attractive fundamentals gener-
ate earnings growth. Importantly, massive forms of innovation, such as inter-
net-related technologies and health care advancements, are creating attractive
opportunities for companies to grow their earnings and reward investors.

Global Economy Takes a Toll on Bond-Like Equities
Various developments during the one-year reporting period fueled fears of rising interest
rates and inflation, which in turn sparked the dramatic investor rotation out of bond-like
sectors and into growth sectors. During the past few years, low commodity prices have
tempered inflation expectations, but that trend ended abruptly during the reporting period.
During the first 10 months of 2016, the multi-year decline in commodity prices reversed with
the Bloomberg Commodity Index gaining 8.3%. In the past, expectations that moderating
economic growth in China would limit commodity price increases also helped to temper
investors’ inflation expectations. During the reporting period, however, a more favorable
view of China emerged. Year-over-year industrial production in October of 2015 grew only
5.6% but from November of 2015 through September of this year, production growth
trended above 6%. In the U.S., inflation concerns were also stoked by a strengthening job
market creating wage pressures, with compensation increasing 2.8% during the 12-month
period ended October 31. Inflation expectations as measured by comparing the nominal yield
of a 10-year Treasury to its inflation protected counterpart also grew during the reporting
period with the spread increasing from 1.59% to 1.73%. Finally, anticipation that the Federal
Reserve would continue normalizing monetary policy supported expectations that interest
rates will rise. We believe that investors’ rotation into growth equities in response to those
developments was rational. Leading growth companies have potential for growing their
earnings, which can help offset the adverse impact of inflation and rising interest rates on
corporate fundamentals. Bond-like sectors such as Utilities, however, have less potential for
generating earnings growth, so they are susceptible to interest rate increases.

The Value of a Long-Term Perspective and Fundamental Research
Emotions can easily distort individuals’ views of reality, especially when it comes to
investing. We believe that the incorrect view that bond-like equities are the only way to
generate yield during times of low interest rates is an example of a distorted and potentially
costly perspective. This distorted view caused many investors to overlook growth stocks’
return of capital, which can be measured by total yield. Total yield is dividend yield plus
the share repurchase yield. As an example, at the end of June, the Information Technology

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and Consumer Discretionary sectors offered total yields of 6.5% and 6.0%, respectively,
compared to the 4.7% total yield of Telecommunication Services and the 4.3% total yield
of Utilities.

In addition, performance of sectors is driven by three primary factors: dividends, earnings
growth, and changes to P/E ratios. During the reporting period, those three factors pointed
to growth sectors having strong potential for outperforming bond-like sectors. Data as of
the end of June illustrate this point, with consensus expectations having called for the bond-
like Utilities and Consumer Staples sectors to generate earnings growth per share of 4%
and 7%, respectively, over the next three to five years. For this analysis, we reduced earnings
growth expectations by 20% simply to have a conservative outlook. For the Utilities and
Consumer Staples sectors, the dividend yield for the prior 12 months was 4% and 3%.
For both sectors, a reversion to the 20-year P/E median would imply a decline of 5%.
The potential changes in earnings and P/E ratios combined with dividend payments would
result in hypothetical returns of 3% for Utilities and 5% for Consumer Staples.

After factoring in the previously mentioned 20% reduction, growth sectors such as
Information Technology, Health Care, and Consumer Discretionary could potentially have
earnings growth ranging from 8% to 14%. As of June 30, those sectors offered 2% dividend
yields for the trailing 12 months. In the event of a reversion to 20-year medians, the sectors’
P/E ratios would increase 2%, which would result in hypothetical returns ranging from 12%
to 18%.

The U.S. Presidential Election
Emotions also played a role when investors weighed in on the U.S. presidential campaign
and the subsequent victory of Donald Trump. The election was a highly emotional event
for many Americans, but it is important to remember that corporate fundamentals and
economic cycles ultimately drive market performance. With that in mind, we urge investors
to focus on corporate fundamentals and avoid making large bets on the potential policies
of a new president.

As Jason Zweig of the Wall Street Journal points out, investors have a poor track record
of making bets on presidents. Regulations from President Barack Obama were expected to
hurt the performance of Health Care stocks, but the sector has outperformed the overall
market during his presidency. Increased military spending under President George W. Bush,
furthermore, had a counterintuitive impact on defense stocks, with the category of equities
declining in 2001 and 2002.

Reasons for Optimism
Rather than chasing dividend yields or making bets on potential policies of President-elect
Trump, we believe equity investors should assess the ongoing U.S. economic recovery, strong
corporate fundamentals, and the rapid pace of innovation. Those factors, we maintain, are
likely to support growth equities in the foreseeable future. The economy has benefited from
an expanding labor market that has created 15.5 million jobs since February of 2010. With
a strengthening job market, compensation as measured by hourly wages increased 2.8%
during the 12-month reporting period. Personal finances are also encouraging, with the
Household Debt Service Ratio, which is the ratio of total required household debt payments
to total disposable income, having improved substantially. After hitting a high of 13.20% in

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the fourth quarter of 2007, the ratio has declined to an attractive level of only 9.98% as of
the second quarter of this year, according to the Federal Reserve.

We believe corporate fundamentals are also encouraging. According to FactSet Research
Systems, S&P 500 companies (ex-financials) held $1.45 trillion in cash at the end of the
second quarter of this year. Despite declining 0.2% from the prior quarter, it was still the
second-largest amount in at least 10 years.

As mentioned earlier, corporations are using their large cash positions to reward shareholders
with dividends and aggressive share repurchase programs. In the second quarter, S&P 500
companies (ex-financials) paid a total of $176.6 billion in dividends and share repurchases,
according to FactSet. It was a 1.7% year-over-year decrease, but the 12-month period ended
June 30 was strong with buybacks and dividends growing 6.1% and 6.6%, respectively,
compared to the 12-month period ended in June of 2015.

We maintain that investors should also assess the attractive valuations of growth sectors
relative to bond-like sectors. As of the end of the reporting period, the Information
Technology sector within the S&P 500 had a P/E ratio that was 2% below its 20-year
median. Health Care and Consumer Discretionary sectors had P/E ratios that were 15%
and 4%, respectively, below their 20-year medians. The P/E ratios for Consumer Staples and
Utilities, however, were at 21% and 20% premiums to their 20-year medians.

We also believe that innovation that can help drive corporate earnings growth is strong
across the globe, thanks in large part to internet related technologies and advancements
in health care. At the same time, the adoption of new technologies by consumers and
corporations is accelerating. The internet, smartphones, ebooks, and social media illustrate
this trend, with each form of technology reaching 50% market penetration in a fraction of
the time that was required by washing machines, landline telephones, and dishwashers. At
the same time, medical innovation in orthopedic, cardiac, and cancer is occurring rapidly.

Conclusion
We urge investors to employ an investment strategy that uses intensive research to identify
companies with strong fundamentals and potential for earnings growth. At the same time,
investors should maintain a long-term perspective and avoid the risky behavior of focusing
on bond-like equities. At Alger, we will continue to focus on our fundamental research and
disciplined investment approach as we seek to generate attractive returns for our valued
clients.

Portfolio Matters
Alger Capital Appreciation Fund
The Alger Capital Appreciation Fund returned -0.42% for the fiscal year ended October 31,
2016, compared to the 2.28% return of the Russell 1000 Growth Index.

During the reporting period, Information Technology and Consumer Discretionary were
the largest portfolio sector weightings. The largest sector overweight was Information
Technology and the largest underweight was Consumer Staples. The Information
Technology and Consumer Discretionary sectors provided the greatest contributions to
relative performance while Industrials and Health Care were among sectors that detracted
from results.

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Amazon.com, Inc.; Microsoft Corp.; Alphabet, Inc., Cl. C; and UnitedHealth Group, Inc.
were among the most important contributors to performance. Shares of social network
operator Facebook, Inc., Cl. A also contributed to performance. The shares performed
strongly in response to the company continuing to take advertising market share from print
and television media. We believe investors have also been encouraged by the growth of
Instagram, which is the company’s video- and photo-sharing network.

Conversely, Allergan PLC.; Vertex Pharmaceuticals, Inc.; LinkedIn Corp., Cl. A; Norwegian
Cruise Line Holdings Ltd.; and Signet Jewelers Ltd. detracted from results. During the
second quarter of 2016, shares of Norwegian Cruise Line Holdings underperformed after
the company’s management issued guidance that fell below expectations. Management also
said it expects to face higher costs.

Alger International Growth Fund
The Alger International Growth Fund returned -6.32% for the fiscal year ended October
31, 2016, compared to the 0.72% return of the MSCI ACWI ex USA Index.

Stock selection resulted in China, Belgium, and Taiwan providing the greatest contributions
to relative performance while Japan, Germany, and the United Kingdom were among
countries that detracted from results.

During the reporting period, Financials and Information Technology were the largest
portfolio sector weightings. The largest sector overweight was Information Technology and
the largest underweight was Financials. The Information Technology sector contributed to
relative performance while other sectors detracted from results.

Taiwan Semiconductor Manufacturing Co., Ltd.; Phoenix Healthcare Group Co., Ltd.;
Tencent Holdings Ltd.; and AXA SA were among top contributors to performance. Shares
of Alibaba Group Holdings Ltd. also contributed to performance. The Alibaba Group runs
the two largest online marketplaces in China, Taobao, a C2C marketplace, and T-Mall, a
B2C marketplace. It announced that it generated better-than-expected revenues, margins,
and gross merchandise value for the second quarter of 2016. (Gross merchandise value
is the value of all goods sold on Alibaba’s commerce platforms). It also said sales through
mobile devices accounted for 75% of Alibaba’s gross merchandise value. Management also
expressed optimism regarding its cloud services offering, which has potential to break even
in 2017.

Conversely, detracting from performance were Samsung Electronics Co., Ltd.; Intesa
Sanpaolo S.p.A.; Essentra PLC.; Allergan PLC.; and Shire PLC. The performance of shares
of global pharmaceuticals company Allergan weakened during the reporting period in
response to concerns that a new U.S. president may support regulations that could block
acquisition activity. An internal investigation at Valeant Pharmaceuticals International, Inc.,
furthermore, cast a shadow over the pharmaceutical industry.

Alger Mid Cap Growth Fund
The Alger Mid Cap Growth Fund returned -4.32% for the fiscal year ended October 31,
2016, compared to the 0.40% return of the Russell Midcap Growth Index.

During the reporting period, the largest portfolio sector weightings were Consumer
Discretionary and Information Technology. The largest sector overweight was Information
Technology and the largest underweight was Consumer Staples. The Consumer Discretionary
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and Energy sectors provided the largest contributions to relative performance while
Information Technology and Health Care were among sectors that detracted from results.

Among the most important contributors to performance were Broadcom Ltd.; Finisar
Corp.; TransDigm Group, Inc.; and Jarden Corp. Shares of Diamond Resorts International,
Inc. also supported performance. The company is a global operator of time shares. It is
enjoying growth stemming from the strengthening finances of consumers and from prior
acquisitions. News that the company will be acquired by Apollo Global Management, LLC.
for a 26% premium drove the strong performance of Diamond shares.

Conversely, detracting from performance were LinkedIn Corp., Cl. A; Signet Jewelers Ltd.;
NetScout Systems, Inc.; Norwegian Cruise Line Holdings Ltd; and Tolero Pharmaceuticals,
Inc. The performance of Norwegian Cruise Line Holdings stock was impacted by
developments identified in the Alger Capital Appreciation Fund discussion.

Alger SMid Cap Growth Fund
The Alger SMid Cap Growth Fund returned -0.92% for the fiscal year ended October 31,
2016, compared to the 0.00% return of the Russell 2500 Growth Index.

During the reporting period, the largest sector weightings were Information Technology
and Consumer Discretionary. The largest sector overweight was Information Technology
and the largest underweight was Materials. The Information Technology and Health Care
sectors provided the largest contributions to relative performance while Industrials and
Financials were among sectors that detracted from results.

TESARO, Inc.; Match Group, Inc.; Burlington Stores, Inc.; and GrubHub, Inc. were among
the most important contributors to performance. Shares of Cvent, Inc. also contributed
to performance. The company provides a leading cloud-based event management
platform that addresses the entire lifecycle of events and meetings, including budgeting,
planning, venue sourcing, marketing, management, and measurement of meetings. Cvent’s
competitive advantage is its detailed hotel and venue database that is extremely beneficial to
event planners. Shares of Cvent performed strongly following news that the company will
be acquired by Vista Equity Partners for a 69% premium.

Conversely, detracting from performance were LendingClub Corp.; WisdomTree
Investments, Inc.; Paycom Software, Inc.; and Pacira Pharmaceuticals, Inc. Shares of
TubeMogul, Inc. also detracted from results. The company provides cloud-based software
that allows its clients to plan, buy, measure, and optimize online video advertising.
Performance of TubeMogul shares weakened after the company’s management reported
that revenues and earnings missed expectations with weak second-quarter gross spending
on advertising. Management attributed the weak results to short-term mobile viewability
concerns which should be rectified within the next few quarters as more publishers upgrade
their mobile sites from flash technology to HTML and make their platforms compatible
with third-party software that many advertisers use to verify viewability metrics and to catch
online ad fraud.

Alger Small Cap Growth Fund
The Alger Small Cap Growth Fund returned -3.92% for the fiscal year ended October 31,
2016, compared to the -0.49% return of the Russell 2000 Growth Index.

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During the reporting period, the largest portfolio sector weightings were Information
Technology and Consumer Discretionary. The largest sector overweight was Information
Technology and the largest underweight was Consumer Discretionary. The Health Care and
Energy sectors provided the largest contributions to relative performance while Information
Technology and Financials were among sectors that detracted from results.

TESARO, Inc.; FEI Company; Burlington Stores, Inc.; and DTS, Inc. were among top
contributors to performance. Shares of Cognex Corp. also contributed to performance.
The company is a leader in machine vision that helps manufacturers reduce costs and
maintain quality. It does so with software and other products that capture and analyze visual
information to automate and improve manufacturing and associated processes. In one
example, manufacturers use Cognex technology to assist with locating, tracking, identifying,
and inspecting smartphones in the production process. In the third quarter of 2016, shares
of Cognex performed strongly after the company’s management reported that second-
quarter earnings exceeded expectations, with increased demand from logistics companies in
North America and automobile companies in China and Europe. The company’s guidance,
furthermore, surpassed expectations.

Conversely, WisdomTree Investments, Inc.; NetScout Systems, Inc.; Restoration Hardware
Holdings, Inc.; and Pacira Pharmaceuticals, Inc. were among detractors from performance.
Shares of TubeMogul, Inc. also detracted from results. The performance of TubelMogul
stock weakened in response to developments identified in the Alger SMid Cap Growth
Fund discussion.

Alger Small Cap Focus Fund
The Alger Small Cap Focus Fund returned 1.92% for the fiscal year ended October 31,
2016, compared to the -0.49% return of the Russell 2000 Growth Index.

Among the most important contributors to performance were Cognex Corp.; FEI
Company; Stamps.com, Inc.; Veeva Systems, Inc., Cl. A; and Cantel Medical Corp. Shares of
Cognex Corp. also contributed to performance. The shares performed strongly in response
to developments identified in the Alger Small Cap Growth Fund discussion.

Conversely, detracting from performance were comScore, Inc.; NetScout Systems, Inc.;
FleetmaticsGroupPLC.;andManhattanAssociates,Inc.Sharesof WisdomTreeInvestments,
Inc. also detracted from results. WisdomTree Investments manages approximately $54
billion in assets with more than 75 exchange traded funds. The performance of WisdomTree
shares weakened early in the reporting period in response to investors withdrawing assets
from the company’s products.

Alger Health Sciences Fund
The Alger Health Sciences Fund returned -14.06% for the fiscal year ended October 31,
2016, compared to the 4.51% return of the S&P 500 Index.

Among the most important contributors to performance were Sarepta Therapeutics, Inc.;
UnitedHealth Group, Inc.; ABIOMED, Inc.; and Medivation, Inc. Shares of TESARO,
Inc. also contributed to results. TESARO is a biotechnology company that is focused on
developing drugs for treating cancer. Late in the second quarter of 2016, the company
reported encouraging results for a clinical trial of its treatment for ovarian and breast cancer,
which supported the performance of TESARO stock.

- 7 -

Conversely, Tolero Pharmaceuticals, Inc.; Vertex Pharmaceuticals, Inc.; Allergan PLC.;
Bristol-Myers Squibb Co.; and Shire PLC. were among top detractors from performance.
Bristol-Myers provides oncology and immunology pharmaceutical products. During the
third quarter, Bristol-Myers’ trial of using its Opdivo product for treating non-small cell lung
cancer failed to achieve very aggressive goals and caused disappointment among investors.

Alger Growth & Income Fund
The Alger Growth & Income Fund returned 2.62% for the fiscal year ended October 31,
2016, compared to the 4.51% return of the S&P 500 Index.

The Fund invests in companies that are classified in one of the following categories: Dividend
Leaders, which generate high dividend yields; Dividend Growers, which have a history
of strong and consistent dividend growth; and Kings of Cash Flow, which have strong
potential for capital appreciation and returning cash to investors as a result of generating
strong free cash flow.

During the reporting period, we continued to emphasize Dividend Growers and Kings of
Cash Flow, in part because Dividend Leaders continued to trade at high valuations.

During the reporting period, the largest portfolio sector weightings were Information
Technology and Financials. The largest sector overweight was Consumer Staples and the
largest underweight was Utilities. The Consumer Discretionary and Real Estate sectors
provided the largest contributions to relative performance while Energy and Financials were
among sectors that detracted from results.

Microsoft Corp.; Broadcom Ltd.; Johnson & Johnson; and Altria Group, Inc. provided
the largest contributions to performance. Shares of Facebook, Inc., Cl. A also contributed
to results. Performance of Facebook stock benefited from developments identified in the
Alger Capital Appreciation Fund discussion.

Conversely, The Blackstone Group LP.; Williams Partners, LP.; Gilead Sciences, Inc.;
Delphi Automotive PLC.; and Bristol-Myers Squibb Co. were among top detractors from
performance. The performance of Bristol-Myers stock was driven by developments
identified in the Alger Health Sciences Fund discussion.

I thank you for putting your trust in Alger.

Sincerely,

Daniel C. Chung, CFA
Chief Investment Officer
Fred Alger Management, Inc.
_______________________________

FactSet Research Systems represented 0.00% of Alger assets under management as of
October 31, 2016.

Investors cannot invest directly in an index. Index performance does not reflect the
deduction for fees, expenses, or taxes.

- 8 -

This report and the financial statements contained herein are submitted for the general
information of shareholders of the funds. This report is not authorized for distribution to
prospective investors in a fund unless preceded or accompanied by an effective prospectus
for the fund. Fund performance returns represent the 12-month period return of Class
A shares prior to the deduction of any sales charges and include the reinvestment of any
dividends or distributions.

The performance data quoted represents past performance, which is not an
indication or guarantee of future results.
Standardized performance results can be found on the following pages. The investment
return and principal value of an investment in a fund will fluctuate so that an investor’s
shares, when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. For performance data
current to the most recent month-end, visit us at www.alger.com or call us at (800) 992-3863.

The views and opinions of the funds’ management in this report are as of the date of the
Shareholders’ Letter and are subject to change at any time subsequent to this date. There
is no guarantee that any of the assumptions that formed the basis for the opinions stated
herein are accurate or that they will materialize. Moreover, the information forming the
basis for such assumptions is from sources believed to be reliable; however, there is no
guarantee that such information is accurate. Any securities mentioned, whether owned in a
fund or otherwise, are considered in the context of the construction of an overall portfolio
of securities and therefore reference to them should not be construed as a recommendation
or offer to purchase or sell any such security. Inclusion of such securities in a fund and
transactions in such securities, if any, may be for a variety of reasons, including, without
limitation, in response to cash flows, inclusion in a benchmark, and risk control. The
reference to a specific security should also be understood in such context and not viewed as
a statement that the security is a significant holding in a fund. Please refer to the Schedule
of Investments for each fund which is included in this report for a complete list of fund
holdings as of October 31, 2016. Securities mentioned in the Shareholders’ Letter, if not
found in the Schedule of Investments, may have been held by the funds during the fiscal
period.

A Word about Risk
Investing in the stock market involves gains and losses and may not be suitable for all
investors. Growth stocks tend to be more volatile than other stocks as the price of growth
stocks tends to be higher in relation to their companies’ earnings and may be more sensitive
to market, political and economic developments. Stocks of small- and mid-sized companies
are subject to greater risk than stocks of larger, more established companies owing to such
factors as limited liquidity, inexperienced management, and limited financial resources.
Investing in foreign securities involves additional risk (including currency risk, risks related
to political, social or economic conditions, and risks associated with foreign markets, such
as increased volatility, limited liquidity, less stringent regulatory and legal system, and lack
of industry and country diversification), and may not be suitable for all investors. Some
of the countries where a fund can invest may have restrictions that could limit the access
to investment opportunities. The securities of issuers located in emerging markets can be
more volatile and less liquid than those of issuers in more mature economies. Investing
in emerging markets involves even higher levels of risk, including increased information,

- 9 -

market, and valuation risks, and may not be suitable for all investors. Special risks associated
with investments in emerging country issuers include exposure to currency fluctuations, less
liquidity, less developed or less efficient trading markets, lack of comprehensive company
information, political instability and different auditing and legal standards.

Funds that participate in leveraging, such as Capital Appreciation, SMid Cap, and Health
Sciences, are subject to the risk that the cost of borrowing money to leverage will exceed
the returns for securities purchased or that the securities purchased may actually go down
in value; thus, a fund’s net asset value can decrease more quickly than if the fund had not
borrowed.

A small investment in derivatives could have a potentially large impact on a fund’s
performance. When purchasing options, a fund bears the risk that if the market value of
the underlying security does not move to a level that would make exercise of the option
profitable, the option will expire unexercised. When a call option written by a fund is
exercised, the fund will not participate in any increase in the underlying security’s value
above the exercise price. When a put option written by a fund is exercised, the fund will
be required to purchase the underlying security at a price in excess of its market value. Use
of options on securities indexes is subject to the risk that trading in the options may be
interrupted if trading in certain securities included in the index is interrupted, the risk that
price movements in a fund’s portfolio securities may not correlate precisely with movements
in the level of an index, and the risk that Fred Alger Management, Inc. may not predict
correctly movements in the direction of a particular market or of the stock market generally.
Because certain options may require settlement in cash, a fund may be forced to liquidate
portfolio securities to meet settlement obligations. Forward currency contracts are subject
to currency exchange rate risks and the risk that Fred Alger Management, Inc. may not
predict accurately future foreign exchange rates. Derivative contracts generally are subject to
the risk of non-performance by the contract counterparty. For a more detailed discussion
of the risks associated with a fund, please see the Prospectus.

Before investing, carefully consider a fund’s investment objective, risks, charges,
and expenses. For a prospectus or a summary prospectus containing this and other
information about The Alger Funds call us at (800) 992-3863 or visit us at www.
alger.com. Read it carefully before investing.
Fred Alger & Company, Incorporated, Distributor. Member NYSE Euronext,
SIPC.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
Definitions:

• S&P 500 Index: An index of large company stocks considered representative
of the U.S. stock market.
• Morgan Stanley Capital International (MSCI) All Country World Index
(ACWI) ex USA is an unmanaged, market capitalization-weighted index de-
signed to provide a broad measure of equity market performance throughout
the world, including both developing and emerging markets, but excluding
the United States.
• MSCI Emerging Markets Index: A free float-adjusted market capitalization
index designed to measure equity market performance in the global emerging
- 10 -

markets.
• Russell 1000 Growth Index: An index of common stocks designed to track
performance of large-capitalization companies with greater than average
growth orientation.
• Russell Midcap Growth Index: An index of common stocks designed to
track performance of medium-capitalization companies with greater than
average growth orientation.
• Russell 2500 Growth Index: An index of common stocks designed to track
performance of small- and medium-capitalization companies with greater
than average growth orientation.
• Russell 2000 Growth Index: An index of common stocks designed to track
performance of small-capitalization companies with greater than average
growth orientation.
• FactSet Research Systems, Inc. is a multinational financial data and software
company.
• The Bloomberg Commodity Index reflects the performance of 20 commod-
ities, which are weighted to account for economic significance and market
liquidity.

- 11 -


FUND PERFORMANCE AS OF 9/30/16 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
	1		5		10		SINCE
	YEAR		YEARS		YEARS		INCEPTION
Alger Capital Appreciation Class A (Inception 12/31/96)	4.90	%	15.22	%	9.70	%	8.57	%
Alger Capital Appreciation Class B (Inception 11/1/93)	4.84	%	15.32	%	9.56	%	8.54	%
Alger Capital Appreciation Class C (Inception 7/31/97)^*,†	8.92	%	15.60	%	9.45	%	8.35	%
Alger Capital Appreciation Class Z (Inception 12/29/10)	11.13	%	16.86	%	n/a		12.50	%
Alger International Growth Class A (Inception 12/31/96)	(3.50	)%	6.33	%	3.04	%	4.80	%
Alger International Growth Class B (Inception 11/11/86)	(3.84	)%	6.40	%	3.04	%	4.77	%
Alger International Growth Class C (Inception 7/31/97)^*,†	0.09	%	6.60	%	2.82	%	4.59	%
Alger International Growth Class I (Inception 5/31/13)	2.10	%	n/a		n/a		2.74	%
Alger International Growth Class Z (Inception 12/29/10)	2.33	%	7.92	%	n/a		4.93	%
Alger Mid Cap Growth Class A (Inception 12/31/96)	0.19	%	12.21	%	4.74	%	7.64	%
Alger Mid Cap Growth Class B (Inception 5/24/93)	(0.02	)%	12.37	%	4.65	%	7.60	%
Alger Mid Cap Growth Class C (Inception 7/31/97)^*,†	3.91	%	12.47	%	4.43	%	7.06	%
Alger Mid Cap Growth Class Z (Inception 5/28/15)	6.13	%	n/a		n/a		(6.18	)%
Alger SMid Cap Growth Class A (Inception 5/8/02)	4.59	%	11.92	%	6.76	%	7.54	%
Alger SMid Cap Growth Class B (Inception 5/8/02)	6.14	%	12.01	%	6.65	%	7.49	%
Alger SMid Cap Growth Class C (Inception 5/8/02)	8.83	%	12.26	%	6.51	%	7.27	%
Alger SMid Cap Growth Class I (Inception 8/5/07)^*	10.41	%	13.15	%	7.43	%	8.01	%
Alger SMid Cap Growth Class Z (Inception 12/29/10)	10.78	%	13.52	%	n/a		8.38	%
Alger Small Cap Growth Class A (Inception 12/31/96)	1.81	%	10.69	%	5.74	%	3.75	%
Alger Small Cap Growth Class B (Inception 11/11/86)	2.43	%	10.95	%	5.77	%	3.73	%
Alger Small Cap Growth Class C (Inception 7/31/97)^*,†	5.78	%	10.83	%	5.41	%	3.56	%
Alger Small Cap Growth Class Z (Inception 12/29/10)	7.90	%	12.14	%	n/a		7.05	%
Alger Small Cap Focus Fund Class A (Inception 3/3/08)	8.85	%	14.05	%	n/a		7.23	%
Alger Small Cap Focus Fund Class C (Inception 3/3/08)	13.01	%	14.52	%	n/a		7.14	%
Alger Small Cap Focus Fund Class I (Inception 3/3/08)	14.98	%	15.54	%	n/a		8.14	%
Alger Small Cap Focus Fund Class Z (Inception 12/29/10)	15.19	%	15.83	%	n/a		10.13	%
Alger Health Sciences Class A (Inception 5/1/02)	(7.00	)%	12.81	%	8.32	%	10.38	%
Alger Health Sciences Class B (Inception 5/1/02)	(6.59	)%	12.92	%	8.21	%	10.32	%
Alger Health Sciences Class C (Inception 5/1/02)	(3.40	)%	13.14	%	8.07	%	10.09	%
Alger Health Sciences Class Z (Inception 5/28/15)	(1.36	)%	n/a		n/a		(11.98	)%
Alger Growth & Income Class A (Inception 12/31/96)	6.52	%	12.95	%	6.93	%	7.53	%
Alger Growth & Income Class C (Inception 7/31/97)^*,†	10.54	%	13.32	%	6.70	%	7.31	%
Alger Growth & Income Class Z (Inception 3/1/12)	12.69	%	n/a		n/a		11.19	%

- 12 -

Beginning August 7, 2015, Alger Small Cap Focus Fund (formerly Alger Growth Opportunities Fund) changed its
investment strategy to normally invest at least 80% of its net assets, plus any borrowings for investment purposes, in
equity securities of companies that, at the time of purchase of the securities, have a total market capitalization within
the range of companies included in the Russell 2000 Growth Index.

Beginning May 31, 2013, Alger International Growth Fund (formerly Alger Large Cap Growth Fund) changed its
investment strategy to include securities of foreign companies of any market capitalization; its previous investment
strategy considered securities of United States companies with a market capitalization equal to or greater than the
companies in the Russell 1000 Growth Index.

Beginning April 1, 2011, Alger Growth & Income Fund changed its investment strategy to focus on securities that
offer opportunities for capital appreciation as well as pay dividends. Previously, under the name “Alger Balanced
Fund”, its investment strategy focused on securities, including fixed-income, with an emphasis on income-producing
and a potential for capital appreciation.

* Historical performance prior to the inception of the Class, is that of the Fund's Class A shares, which has
been adjusted to remove the sales charge imposed by Class A shares and adding the higher operating expenses
of the Class C shares.
† Since inception performance is calculated since the inception of the Class A shares. Historical performance
prior to July 31, 1997, inception of the class, is that of the Fund's Class A shares, reduced to reflect the current
maximum sales charge and the higher operating expenses of Class C shares.

- 13 -

ALGER CAPITAL APPRECIATION FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Capital
Appreciation Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 1000 Growth Index
(unmanaged index of common stocks) for the ten years ended October 31, 2016. Figures for the Alger Capital
Appreciation Fund Class A shares and the Russell 1000 Growth Index include reinvestment of dividends.
Performance for Alger Capital Appreciation Fund Class B, Class C and Class Z shares will vary from the results
shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in
any index. Index performance does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/31/1996
Class A (Inception 12/31/96)	(5.65	)%	12.07	%	8.89	%	8.38	%
Class B (Inception 11/1/93)	(5.67	)%	12.15	%	8.76	%	8.35	%
Class C (Inception 7/31/97)^*	(2.07	)%	12.43	%	8.65	%	8.16	%
Russell 1000 Growth Index	2.28	%	13.65	%	8.22	%	6.76	%


						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class Z (Inception 12/29/10)	(0.08	)%	13.65	%	n/a	11.79	%
Russell 1000 Growth Index	2.28	%	13.65	%	n/a	12.09	%

The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s
average annual total returns include changes in share price and reinvestment of dividends and capital gains. Class A returns reflect the
maximum initial sales charge and Class C and B returns reflect the applicable contingent deferred sales charge. The chart and table above
do not reflect the deduction of taxes that a shareholder would have paid on Fund distributions or on the redemption of Fund shares.
Investment return and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost.
Current performance may be higher or lower than the performance quoted. For updated performance, visit us at www.alger.com or call
us at (800) 992-3863.

- 14 -

ALGER INTERNATIONAL GROWTH FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger International
Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the MSCI AC WORLD INDEX ex
USA (unmanaged index of common stocks) for the ten years ended October 31, 2016. Beginning May 31, 2013
Alger International Growth Fund changed its investment strategy to include securities of foreign companies of
any market capitalization. Previously, under the name “Alger Large Cap Growth Fund”, its investment strategy
considered securities of United States companies with a market capitalization equal to or greater than the companies
in the Russell 1000 Growth Index. Figures for the Alger International Growth Fund Class A shares and the index
include reinvestment of dividends. Performance for the Alger International Growth Fund Class B, Class C, Class
I and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those
classes bear. Investors cannot invest directly in any index. Indices performance does not reflect deduction for fees,
expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/31/1996
Class A (Inception 12/31/96)	(11.22	)%	3.38	%	2.41	%	4.63	%
Class B (Inception 11/11/86)	(11.51	)%	3.42	%	2.41	%	4.60	%
Class C (Inception 7/31/97)^*	(7.95	)%	3.66	%	2.19	%	4.42	%
MSCI AC WORLD INDEX ex USA	0.72	%	4.11	%	2.07	%	4.97	%


					Since
	1 YEAR		5 YEARS	10 YEARS	5/31/2013
Class I (Inception 5/31/13)	(6.12	)%	n/a	n/a	1.84	%
MSCI AC WORLD INDEX ex USA	0.72	%	n/a	n/a	1.70	%

- 16 -

ALGER INTERNATIONAL GROWTH FUND
Fund Highlights Through October 31, 2016 (Unaudited) (Continued)


						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class Z (Inception 12/29/10)	(5.88	)%	4.92	%	n/a	4.36	%
MSCI AC WORLD INDEX ex USA	0.72	%	4.11	%	n/a	2.20	%

- 17 -

ALGER MID CAP GROWTH FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Mid Cap
Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell Midcap Growth Index (an
unmanaged index of common stocks) for the ten years ended October 31, 2016. Figures for the Alger Mid Cap
Growth Fund Class A shares and Russell Midcap Growth Index include reinvestment of dividends. Performance
for the Alger Mid Cap Growth Fund Class B, Class C and Class Z shares will vary from the results shown above due
to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index
performance does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/31/1996
Class A (Inception 12/31/96)	(9.33	)%	8.23	%	3.78	%	7.35	%
Class B (Inception 5/24/93)	(9.82	)%	8.26	%	3.70	%	7.31	%
Class C (Inception 7/31/97)^*	(5.96	)%	8.46	%	3.47	%	6.77	%
Russell Midcap Growth Index	0.40	%	12.02	%	7.65	%	8.04	%


					Since
	1 YEAR		5 YEARS	10 YEARS	5/28/2015
Class Z (Inception 5/28/15)	(4.03	)%	n/a	n/a	(8.92	)%
Russell Midcap Growth Index	0.40	%	n/a	n/a	(2.77	)%

ALGER SMID CAP GROWTH FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger SMid Cap
Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 2500 Growth Index (an
unmanaged index of common stocks) for the ten years ended October 31, 2016. Figures for the Alger SMid Cap
Growth Fund Class A shares and the Russell 2500 Growth Index include reinvestment of dividends. Performance
for the Alger SMid Cap Growth Fund Class B, Class C, Class I and Class Z shares will vary from the results shown
above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any
index. Index performance does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		5/8/2002
Class A (Inception 5/8/02)	(6.14	)%	7.62	%	5.34	%	7.02	%
Class B (Inception 5/8/02)	(4.90	)%	7.67	%	5.24	%	6.97	%
Class C (Inception 5/8/02)	(2.30	)%	7.94	%	5.10	%	6.76	%
Class I (Inception 8/5/07)^*	(0.79	)%	8.79	%	6.00	%	7.49	%
Russell 2500 Growth Index	0.00	%	11.71	%	7.72	%	8.27	%


						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class Z (Inception 12/29/10)	(0.57	)%	9.14	%	n/a	7.09	%
Russell 2500 Growth Index	0.00	%	11.71	%	n/a	9.85	%

ALGER SMALL CAP GROWTH FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Small Cap
Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 2000 Growth Index (an
unmanaged index of common stocks) for the ten years ended October 31, 2016. Figures for the Alger Small Cap
Growth Fund Class A shares and the Russell 2000 Growth Index include reinvestment of dividends. Performance
for the Alger Small Cap Growth Fund Class B, Class C and Class Z shares will vary from the results shown above due
to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index
performance does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/31/1996
Class A (Inception 12/31/96)	(8.93	)%	6.13	%	4.26	%	3.37	%
Class B (Inception 11/11/86)	(8.40	)%	6.36	%	4.28	%	3.35	%
Class C (Inception 7/31/97)^*	(5.50	)%	6.23	%	3.91	%	3.18	%
Russell 2000 Growth Index	(0.49	)%	11.34	%	6.92	%	5.83	%


						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class Z (Inception 12/29/10)	(3.55	)%	7.52	%	n/a	5.68	%
Russell 2000 Growth Index	(0.49	)%	11.34	%	n/a	9.06	%

ALGER SMALL CAP FOCUS FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Small Cap
Focus Fund Class A shares, with an initial 5.25% maximum sales charge, the Russell 2000 Growth (unmanaged indices
of common stocks) from March 3, 2008, the inception date of the Alger Small Cap Focus Fund, through October
31, 2016. Prior to August 7, 2015, the Fund followed different investment strategies under the name “Alger Growth
Opportunities Fund” and prior to February 12, 2105 was managed by a different portfolio manager. Accordingly,
performance prior to those dates does not reflect the Fund’s current investment strategies and investment personnel.
Prior to August 7, 2015 the Fund compared its performance to the Russell 2500 Growth Index. From August 7
forward, the Fund will compare its performance to the Russell 2000 Growth Index to better reflect its investment
strategies. Figures for the Alger Small Cap Focus Fund Class A shares, the Russell 2000 Growth Index include
reinvestment of dividends. Performance for the Alger Small Cap Focus Fund Class C, Class I and Class Z shares
will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors
cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
						Since
	1 YEAR		5 YEARS		10 YEARS	3/3/2008
Class A (Inception 3/3/08)	(3.46	)%	9.26	%	n/a	6.21	%
Class C (Inception 3/3/08)	0.28	%	9.72	%	n/a	6.12	%
Class I (Inception 3/3/08)	1.96	%	10.68	%	n/a	7.09	%
Russell 2000 Growth Index	(0.49	)%	11.34	%	n/a	8.59	%


						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class Z (Inception 12/29/10)	2.22	%	10.97	%	n/a	8.55	%
Russell 2000 Growth Index	(0.49	)%	11.34	%	n/a	9.06	%

- 24 -

ALGER SMALL CAP FOCUS FUND
Fund Highlights Through October 31, 2016 (Unaudited) (Continued)

The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s average
annual total returns include changes in share price and reinvestment of dividends and capital gains. Class A returns reflect the maximum
initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart and table above do not reflect the
deduction of taxes that a shareholder would have paid on Fund distributions or on the redemption of Fund shares. Investment return
and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost. Current performance
may be higher or lower than the performance quoted. For updated performance, visit us at www.alger.com or call us at (800) 992-3863.

- 25 -

ALGER HEALTH SCIENCES FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Health
Sciences Fund Class A shares, with a maximum sales charge of 5.25%, and the S&P 500 Index (an unmanaged index
of common stocks) for the ten years ended October 31, 2016. Figures for the Alger Health Sciences Fund Class
A shares and the S&P 500 Index include reinvestment of dividends. Performance for the Alger Health Sciences
Fund Class B, Class C and Class Z shares will vary from the results shown above due to differences in expenses and
sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect
deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		5/1/2002
Class A (Inception 5/1/02)	(18.59	)%	9.00	%	6.41	%	9.43	%
Class B (Inception 5/1/02)	(18.26	)%	9.12	%	6.30	%	9.37	%
Class C (Inception 5/1/02)	(15.40	)%	9.35	%	6.16	%	9.15	%
S&P 500 Index	4.51	%	13.57	%	6.70	%	6.89	%


					Since
	1 YEAR		5 YEARS	10 YEARS	5/28/2015
Class Z (Inception 5/28/15)	(13.63	)%	n/a	n/a	(18.24	)%
S&P 500 Index	4.51	%	n/a	n/a	2.32	%

ALGER GROWTH & INCOME FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Growth &
Income Fund Class A shares, with a maximum sales charge of 5.25%, and the S&P 500 Index (an unmanaged index
of common stocks), for the ten years ended October 31, 2016. Beginning April 1, 2011, Alger Growth & Income
Fund changed its investment strategy to focus on securities that offer opportunities for capital appreciation as well
as pay dividends. Previously, under the name “Alger Balanced Fund”, its investment strategy focused on securities,
including fixed-income, with an emphasis on income-producing and a potential for capital appreciation. Figures for
the Alger Growth & Income Fund Class A shares, and the S&P 500 Index include reinvestment of dividends and/
or interest. Performance for the Alger Growth & Income Fund Class C and Class Z shares will vary from the results
shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in
any index. Index performance does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/31/1996
Class A (Inception 12/31/96)	(2.77	)%	10.52	%	6.51	%	7.41	%
Class C (Inception 7/31/97)^*	0.89	%	10.88	%	6.29	%	7.20	%
S&P 500 Index	4.51	%	13.57	%	6.70	%	7.44	%


	1 YEAR		5 YEARS	10 YEARS	Since 3/1/2012
Class Z (Inception 3/1/12)	2.91	%	n/a	n/a	10.61	%
S&P 500 Index	4.51	%	n/a	n/a	12.16	%

The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s
average annual total returns include changes in share price and reinvestment of dividends and capital gains. Class A returns reflect the
maximum initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart and table above do
not reflect the deduction of taxes that a shareholder would have paid on Fund distributions or on the redemption of Fund shares. Prior
to April 1, 2011, the Fund followed a different investment objective and different strategies under the name “Alger Balanced Fund”.
Investment return and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost.
Current performance may be higher or lower than the performance quoted. For updated performance, visit us at www.alger.com or call
us at (800) 992-3863.

- 27 -

PORTFOLIO SUMMARY†
October 31, 2016 (Unaudited)



	Alger Capital		Alger Mid Cap Growth		Alger SMid Cap Growth		Alger Small Cap Growth
SECTORS	Appreciation Fund		Fund		Fund		Fund
Consumer Discretionary	16.8	%	18.9	%	7.4	%	7.9	%
Consumer Staples	6.7		4.8		2.5		2.6
Energy	1.7		1.0		1.8		1.1
Financials	2.9		5.3		10.8		3.9
Health Care	15.2		15.8		29.0		32.1
Industrials	7.4		12.0		8.6		7.8
Information Technology	42.6		24.3		36.1		37.4
Materials	1.6		4.8		0.5		2.4
Real Estate	0.7		2.9		3.4		1.6
Telecommunication Services	0.4		1.1		0.0		0.0
Short-Term Investments and
Net Other Assets	4.0		9.1		(0.1	)	3.2
	100.0	%	100.0	%	100.0	%	100.0	%


	Alger Small Cap Focus		Alger Health Sciences		Alger Growth & Income
SECTORS	Fund		Fund		Fund
Consumer Discretionary	2.6	%	0.0	%	13.3	%
Consumer Staples	0.0		0.0		12.0
Energy	0.0		0.0		6.2
Financials	1.0		0.0		14.5
Health Care	45.3		98.6		14.1
Industrials	5.0		0.1		10.5
Information Technology	40.2		0.0		20.3
Materials	3.3		0.0		0.9
Real Estate	0.0		0.0		2.4
Telecommunication Services	0.0		0.0		3.3
Utilities	0.0		0.0		0.7
Short-Term Investments and Net Other Assets	2.6		1.3		1.8
	100.0	%	100.0	%	100.0	%

- 29 -

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—93.5%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc.*,^@,(a)	82,955	$		–
AEROSPACE & DEFENSE—0.9%
Lockheed Martin Corp.	77,962			19,208,278
TransDigm Group, Inc.	10,400			2,833,584
			22,041,862
AIRLINES—0.4%
Southwest Airlines Co.	247,233			9,901,682
ALTERNATIVE CARRIERS—0.4%
Level 3 Communications, Inc.*	181,449		10,188,361
APPAREL ACCESSORIES & LUXURY GOODS—1.1%
Hanesbrands, Inc.	172,752			4,439,726
PVH Corp.	137,413			14,700,443
Under Armour, Inc., Cl. A*	236,535			7,356,239
			26,496,408
APPAREL RETAIL—0.2%
The TJX Cos., Inc.	80,829			5,961,139
APPLICATION SOFTWARE—2.3%
Adobe Systems, Inc.*	216,899			23,318,812
salesforce.com, Inc.*	417,694			31,393,881
			54,712,693
AUTO PARTS & EQUIPMENT—1.1%
Delphi Automotive PLC.	201,842			13,133,859
Johnson Controls International PLC.	320,326			12,915,544
			26,049,403
BIOTECHNOLOGY—4.2%
ACADIA Pharmaceuticals, Inc.*	203,300			4,738,923
Biogen, Inc.*	50,443			14,133,120
BioMarin Pharmaceutical, Inc.*	219,370			17,663,672
Celgene Corp.*	329,302			33,648,078
Incyte Corp.*	183,119			15,925,860
Vertex Pharmaceuticals, Inc.*	204,646			15,524,446
			101,634,099
BREWERS—1.6%
Molson Coors Brewing Co., Cl. B	381,321		39,584,933
BROADCASTING—1.3%
CBS Corp., Cl. B	550,725		31,182,050
BUILDING PRODUCTS—0.1%
Fortune Brands Home & Security, Inc.	60,070			3,281,624
CABLE & SATELLITE—2.3%
Comcast Corporation, Cl. A	884,376		54,672,124
COMMUNICATIONS EQUIPMENT—0.1%
Palo Alto Networks, Inc.*	17,388			2,674,796
DATA PROCESSING & OUTSOURCED SERVICES—3.8%
Sabre Corp.	211,618			5,466,093
Visa, Inc., Cl. A	1,051,130			86,728,736
			92,194,829
DRUG RETAIL—0.4%
CVS Caremark Corp.	109,981			9,249,402

- 31 -

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
ELECTRICAL COMPONENTS & EQUIPMENT—0.2%
Eaton Corp., PLC.	67,511	$		4,305,176
FINANCIAL EXCHANGES & DATA—0.5%
IntercontinentalExchange Group, Inc.	30,930			8,363,163
S&P Global, Inc.	35,784			4,360,280
			12,723,443
FOOD DISTRIBUTORS—0.2%
US Foods Holding Corp.*	226,800			5,125,680
GENERAL MERCHANDISE STORES—0.2%
Dollar Tree, Inc.*	54,405			4,110,298
HEALTH CARE EQUIPMENT—2.5%
Boston Scientific Corp.*	584,207			12,852,554
DexCom, Inc.*	241,774			18,916,398
Edwards Lifesciences Corp.*	183,407			17,464,014
Medtronic PLC.	143,309			11,754,204
			60,987,170
HEALTH CARE FACILITIES—0.6%
Amsurg Corp.*	167,104			9,984,464
HCA Holdings, Inc.*	61,923			4,738,967
			14,723,431
HOME ENTERTAINMENT SOFTWARE—2.2%
Activision Blizzard, Inc.	416,174			17,966,232
Electronic Arts, Inc.*	465,874			36,580,426
			54,546,658
HOME IMPROVEMENT RETAIL—1.6%
The Home Depot, Inc.	322,591		39,359,328
HOTELS RESORTS & CRUISE LINES—0.4%
Ctrip.com International Ltd.#*	155,137			6,849,299
Royal Caribbean Cruises Ltd.	33,404			2,567,765
				9,417,064
HOUSEWARES & SPECIALTIES—1.8%
Newell Brands, Inc.	885,961		42,543,847
HYPERMARKETS & SUPER CENTERS—0.4%
Costco Wholesale Corp.	70,131		10,370,271
INDUSTRIAL CONGLOMERATES—4.0%
3M Co.	15,300			2,529,090
Danaher Corp.	88,317			6,937,300
Honeywell International, Inc.	789,152			86,554,192
			96,020,582
INDUSTRIAL GASES—0.8%
Air Products & Chemicals, Inc.	149,390		19,931,614
INTERNET RETAIL—5.7%
Amazon.com, Inc.*	171,647		135,570,233
NetFlix, Inc.*	14,563			1,818,482
			137,388,715
INTERNET SOFTWARE & SERVICES—16.3%
Alibaba Group Holding Ltd.#*	207,753			21,126,403
Alphabet, Inc., Cl. C*	253,381		198,787,530
comScore, Inc.*	91,940			2,646,953

- 32 -

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
INTERNET SOFTWARE & SERVICES—(CONT.)
eBay, Inc.*	299,591	$		8,541,339
Facebook, Inc., Cl. A*	940,967		123,257,267
GrubHub, Inc.*	62,920			2,397,881
Match Group, Inc.*	170,182			3,073,487
Palantir Technologies, Inc., Cl. A*^,@	153,282			1,172,607
Stamps.com, Inc.*	97,100			9,472,105
Yahoo! Inc.*	582,371			24,197,515
			394,673,087
INVESTMENT BANKING & BROKERAGE—1.1%
Morgan Stanley	576,346			19,347,935
The Goldman Sachs Group, Inc.	40,000			7,129,600
			26,477,535
IT CONSULTING & OTHER SERVICES—0.3%
Cognizant Technology Solutions Corp., Cl. A*	131,277			6,741,074
LIFE SCIENCES TOOLS & SERVICES—1.5%
Thermo Fisher Scientific, Inc.	245,100		36,037,053
MANAGED HEALTH CARE—3.1%
Aetna, Inc.	36,443			3,912,156
Centene Corp.*	188,680			11,788,726
Humana, Inc.	26,929			4,619,131
UnitedHealth Group, Inc.	384,035			54,275,667
			74,595,680
MOVIES & ENTERTAINMENT—0.4%
Time Warner, Inc.	103,319			9,194,358
OIL & GAS EQUIPMENT & SERVICES—0.5%
Halliburton Company	287,378		13,219,388
OIL & GAS EXPLORATION & PRODUCTION—1.2%
Anadarko Petroleum Corp.	275,553			16,378,870
EOG Resources, Inc.	55,520			5,020,118
Pioneer Natural Resources Co.	42,582			7,623,030
			29,022,018
PACKAGED FOODS & MEATS—0.4%
The Kraft Heinz Co.	54,700			4,865,565
The WhiteWave Foods Co.*	106,400			5,797,736
			10,663,301
PHARMACEUTICALS—3.1%
Allergan PLC.*	249,471			52,124,471
Eli Lilly & Co.	310,898			22,956,708
			75,081,179
RAILROADS—0.5%
Union Pacific Corp.	129,683			11,435,447
RESEARCH & CONSULTING SERVICES—0.4%
Verisk Analytics, Inc., Cl. A*	110,200			8,986,810
RESTAURANTS—0.3%
Starbucks Corp.	148,031			7,856,005
SEMICONDUCTOR EQUIPMENT—0.2%
ASML Holding NV#	47,488			5,015,683

- 33 -

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
SEMICONDUCTORS—4.9%
Broadcom Ltd.	328,093	$		55,867,676
Cavium Networks, Inc.*	58,983			3,329,590
Microsemi Corp.*	190,275			8,016,286
NXP Semiconductors NV*	300,336			30,033,600
QUALCOMM, Inc.	237,550			16,324,436
Skyworks Solutions, Inc.	63,581			4,891,922
			118,463,510
SOFT DRINKS—1.7%
PepsiCo, Inc.	377,420		40,459,424
SPECIALIZED CONSUMER SERVICES—0.3%
ServiceMaster Global Holdings, Inc.*	233,323			8,350,630
SPECIALTY CHEMICALS—0.8%
The Sherwin-Williams Co.	34,291			8,396,494
WR Grace & Co.	169,211			11,330,369
			19,726,863
SYSTEMS SOFTWARE—6.4%
Microsoft Corp.	2,226,812		133,430,575
Red Hat, Inc.*	47,366			3,668,497
ServiceNow, Inc.*	198,271			17,430,003
			154,529,075
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—5.9%
Apple, Inc.	1,187,442		134,822,165
Western Digital Corp.	138,152			8,073,603
			142,895,768
TOBACCO—2.0%
Altria Group, Inc.	278,219			18,395,840
Philip Morris International, Inc.	306,869			29,594,447
			47,990,287
TRADING COMPANIES & DISTRIBUTORS—0.9%
HD Supply Holdings, Inc.*	699,291		23,076,603
TOTAL COMMON STOCKS
(Cost $1,976,624,075)			2,265,869,460
PREFERRED STOCKS—0.5%	SHARES			VALUE
ADVERTISING—0.1%
Choicestream, Inc., Series A*^,@,(a)	715,332			–
Choicestream, Inc., Series B*^,@,(a)	1,649,956			973,474
				973,474
INTERNET SOFTWARE & SERVICES—0.2%
Palantir Technologies, Inc., Cl. B*^,@	625,130			4,782,245
Palantir Technologies, Inc., Cl. D*^,@	81,445			623,054
				5,405,299
PHARMACEUTICALS—0.2%
Intarcia Therapeutics, Inc., Series DD*^,@	76,682			4,373,941
TOTAL PREFERRED STOCKS
(Cost $8,711,512)				10,752,714

- 34 -

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2016 (Continued)


WARRANTS—0.0%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 6/22/26^@,(a)	387,502		$	379,752
(Cost $387,114)				379,752
MASTER LIMITED PARTNERSHIP—0.9%	SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—0.9%
The Blackstone Group LP.	861,391			21,560,617
(Cost $26,275,918)				21,560,617
REAL ESTATE INVESTMENT TRUST—1.1%	SHARES			VALUE
MORTGAGE—0.4%
Blackstone Mortgage Trust, Inc., Cl. A	334,540			10,103,108
SPECIALIZED—0.7%
Crown Castle International Corp.	189,177			17,213,215
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $26,304,725)				27,316,323
	PRINCIPAL
CORPORATE BONDS—0.0%	AMOUNT			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 11.00%, 8/05/18^@,(a)	387,502			387,502
(Cost $47,054)				387,502
Total Investments
(Cost $2,038,350,398)^(b)	96.0	%		2,326,266,368
Other Assets in Excess of Liabilities	4.0	%		96,381,317
NET ASSETS	100.0	%	$	2,422,647,685

- 35 -

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2016 (Continued)

# American Depositary Receipts.
(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment Company
Act of 1940. See Affiliated Securities Note 11.
(b) At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes of
$2,074,637,190, amounted to $251,629,178 which consisted of aggregate gross unrealized appreciation of $331,227,470
and aggregate gross unrealized depreciation of $79,598,292.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be
liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Choicestream, Inc.	03/14/14	$	24,057	0.00	%	$	0	0.00	%
Choicestream, Inc., 11.00%,
8/05/18	08/04/16		388	0.00	%		387,502	0.02	%
Choicestream, Inc., 6/22/26	08/04/16		387,114	0.02	%		379,752	0.01	%
Choicestream, Inc., Cl. A	12/17/13		572,038	0.03	%		0	0.00	%
Choicestream, Inc., Cl. B	07/10/14		989,973	0.05	%		973,474	0.04	%
Intarcia Therapeutics, Inc.,
Series DD	03/27/14		2,483,730	0.14	%		4,373,941	0.18	%
Palantir Technologies, Inc., Cl. A	10/07/14		997,406	0.05	%		1,172,607	0.05	%
Palantir Technologies, Inc., Cl. B	10/07/14		4,128,004	0.22	%		4,782,245	0.20	%
Palantir Technologies, Inc., Cl. D	10/14/14		537,767	0.03	%		623,054	0.02	%
Total						$	12,692,575	0.52	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 36 -

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—95.6%	SHARES		VALUE
AUSTRALIA—3.5%
DIVERSIFIED BANKS—1.2%
Westpac Banking Corp.	92,300	$	2,134,433
DIVERSIFIED METALS & MINING—2.3%
BHP Billiton Ltd.	118,200		2,065,053
Rio Tinto Ltd.	51,000		2,110,098
			4,175,151
TOTAL AUSTRALIA
(Cost $5,888,352)			6,309,584
BRAZIL—1.7%
DIVERSIFIED REAL ESTATE ACTIVITIES—0.5%
BR Malls Participacoes SA*	222,970		892,369
INDEPENDENT POWER AND RENEWABLE ENERGY—0.5%
AES Tiete Energia SA	188,144		974,525
MULTI-LINE INSURANCE—0.7%
BB Seguridade Participacoes SA	116,000		1,167,537
TOTAL BRAZIL
(Cost $2,730,777)			3,034,431
CANADA—6.8%
FOOD RETAIL—1.3%
Alimentation Couche-Tard, Inc.	46,514		2,337,059
GOLD—0.7%
Agnico Eagle Mines Ltd.	23,300		1,183,547
INTEGRATED OIL & GAS—2.1%
Cenovus Energy, Inc.	149,200		2,152,806
Suncor Energy, Inc.	54,300		1,629,749
			3,782,555
MULTI-UTILITIES—1.1%
Canadian Utilities Ltd.	72,900		2,083,634
OIL & GAS EXPLORATION & PRODUCTION—1.6%
Canadian Natural Resources Ltd.	50,900		1,615,759
Encana Corp.	130,000		1,239,849
			2,855,608
TOTAL CANADA
(Cost $12,478,096)			12,242,403
CHINA—7.7%
APPLICATION SOFTWARE—0.1%
Gridsum Holding, Inc.#*	20,568		289,392
DIVERSIFIED BANKS—1.4%
China Construction Bank Corp.	3,588,000		2,620,109
ELECTRICAL COMPONENTS & EQUIPMENT—0.7%
Byd Co., Ltd.	181,000		1,191,579
HEALTH CARE FACILITIES—1.0%
Phoenix Healthcare Group Co., Ltd.	1,099,200		1,746,716
INTERNET SOFTWARE & SERVICES—4.5%
Alibaba Group Holding Ltd.#*	46,366		4,714,958

- 37 -

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
CHINA—(CONT.)
INTERNET SOFTWARE & SERVICES—(CONT.)
Tencent Holdings Ltd.	127,500	$	3,379,026
			8,093,984
TOTAL CHINA
(Cost $11,454,257)			13,941,780
FRANCE—6.6%
AEROSPACE & DEFENSE—0.9%
Safran SA	24,200		1,665,386
AUTO PARTS & EQUIPMENT—1.4%
Valeo SA	42,800		2,469,993
BIOTECHNOLOGY—0.2%
DBV Technologies SA#*	12,100		415,393
DIVERSIFIED BANKS—0.8%
BNP Paribas SA	25,800		1,496,105
HOME ENTERTAINMENT SOFTWARE—0.4%
UBISOFT Entertainment*	20,200		687,380
INTEGRATED OIL & GAS—2.3%
TOTAL SA	87,550		4,194,456
MULTI-LINE INSURANCE—0.6%
AXA SA	44,100		995,089
TOTAL FRANCE
(Cost $11,574,974)			11,923,802
GERMANY—7.4%
APPLICATION SOFTWARE—1.6%
SAP SE#	33,300		2,933,978
AUTOMOBILE MANUFACTURERS—1.5%
Bayerische Motoren Werke AG	31,946		2,787,398
HEALTH CARE SERVICES—1.0%
Fresenius Medical Care AG & Co.	22,700		1,849,177
INDUSTRIAL CONGLOMERATES—0.8%
Siemens AG	12,505		1,420,915
INTEGRATED TELECOMMUNICATION SERVICES—2.0%
Deutsche Telekom AG	218,600		3,566,833
MULTI-LINE INSURANCE—0.5%
Allianz SE	5,500		858,652
TOTAL GERMANY
(Cost $14,236,775)			13,416,953
HONG KONG—3.6%
CONSTRUCTION & ENGINEERING—0.8%
China State Construction International Holdings Ltd.	1,017,000		1,483,640
HOME FURNISHINGS—0.4%
Man Wah Holdings Ltd.	1,040,000		690,238
HOUSEHOLD APPLIANCES—0.6%
Techtronic Industries Co., Ltd.	300,000		1,127,137

- 38 -

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
HONG KONG—(CONT.)
INDUSTRIAL CONGLOMERATES—0.6%
China Everbright International Ltd.	908,800	$	1,086,401
LIFE & HEALTH INSURANCE—1.2%
AIA Group Ltd.	340,904		2,144,616
TOTAL HONG KONG
(Cost $6,485,357)			6,532,032
INDIA—2.1%
DIVERSIFIED BANKS—1.3%
HDFC Bank Ltd.	106,600		2,388,732
PHARMACEUTICALS—0.8%
Aurobindo Pharma Ltd.	120,700		1,480,729
TOTAL INDIA
(Cost $2,625,149)			3,869,461
INDONESIA—1.5%
AUTOMOBILE MANUFACTURERS—0.6%
Astra International Tbk PT	1,800,000		1,135,634
CONSTRUCTION MATERIALS—0.2%
Semen Indonesia Persero Tbk PT	541,595		408,234
DIVERSIFIED BANKS—0.7%
Bank Rakyat Indonesia Persero Tbk., PT	1,217,000		1,136,398
TOTAL INDONESIA
(Cost $2,441,501)			2,680,266
IRELAND—3.2%
AUTO PARTS & EQUIPMENT—0.4%
Johnson Controls International PLC.	16,614		669,877
CONSTRUCTION MATERIALS—0.6%
CRH PLC.	32,700		1,058,204
ELECTRICAL COMPONENTS & EQUIPMENT—0.5%
Eaton Corp., PLC.	14,200		905,534
PHARMACEUTICALS—1.7%
Shire PLC.	55,600		3,139,454
TOTAL IRELAND
(Cost $6,332,701)			5,773,069
ISRAEL—0.4%
OIL & GAS REFINING & MARKETING—0.4%
Reliance Industries Ltd.*	50,000		787,856
(Cost $773,398)
ITALY—0.6%
DIVERSIFIED BANKS—0.6%
Banco Popolare SC	400,000		1,154,625
(Cost $1,176,823)
JAPAN—13.5%
BREWERS—1.2%
Asahi Group Holdings Ltd.	62,200		2,218,629
COMMODITY CHEMICALS—1.4%
Toray Industries, Inc.	273,706		2,547,241

- 39 -

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
JAPAN—(CONT.)
CONSTRUCTION & ENGINEERING—1.0%
Taisei Corp.	238,500	$	1,787,484
DIVERSIFIED BANKS—1.2%
Mitsubishi UFJ Financial Group, Inc.	431,400		2,225,837
DIVERSIFIED CHEMICALS—0.5%
Daicel Corp.	69,900		919,085
DIVERSIFIED REAL ESTATE ACTIVITIES—0.8%
Mitsui Fudosan Co., Ltd.	64,550		1,469,985
ELECTRONIC COMPONENTS—1.7%
Alps Electric Co., Ltd.	83,200		1,995,680
Murata Manufacturing Co., Ltd.	7,000		977,444
			2,973,124
HOMEBUILDING—0.5%
Haseko Corp.	98,900		962,430
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.7%
Temp Holdings Co., Ltd.	75,000		1,271,917
INTEGRATED TELECOMMUNICATION SERVICES—1.2%
Nippon Telegraph & Telephone Corp.	47,000		2,083,732
PROPERTY & CASUALTY INSURANCE—1.1%
Tokio Marine Holdings, Inc.	52,300		2,062,791
RAILROADS—0.9%
East Japan Railway Co.	17,650		1,553,629
WIRELESS TELECOMMUNICATION SERVICES—1.3%
KDDI Corp.	77,200		2,346,241
TOTAL JAPAN
(Cost $25,484,965)			24,422,125
MEXICO—0.5%
DIVERSIFIED REAL ESTATE ACTIVITIES—0.5%
Corp Inmobiliaria Vesta SAB de CV	609,030		920,610
(Cost $1,261,007)
NETHERLANDS—4.7%
DIVERSIFIED BANKS—0.7%
ING Groep NV	100,000		1,312,821
PERSONAL PRODUCTS—1.7%
Unilever NV	71,300		2,982,464
SEMICONDUCTOR EQUIPMENT—1.0%
ASML Holding NV#	17,176		1,814,129
SEMICONDUCTORS—1.3%
NXP Semiconductors NV*	23,000		2,300,000
TOTAL NETHERLANDS
(Cost $8,291,328)			8,409,414
NORWAY—0.8%
PACKAGED FOODS & MEATS—0.8%
Orkla ASA	150,000		1,416,424
(Cost $1,439,231)

- 40 -

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
SOUTH KOREA—1.2%
ELECTRONIC EQUIPMENT MANUFACTURERS—0.6%
SFA Engineering Corp.*	20,300	$	1,025,935
SEMICONDUCTORS—0.6%
SK Hynix, Inc.	30,000		1,073,463
TOTAL SOUTH KOREA
(Cost $2,063,638)			2,099,398
SPAIN—1.9%
ELECTRIC UTILITIES—1.9%
Iberdrola SA	499,747		3,401,314
(Cost $3,338,717)
SWEDEN—1.3%
BUILDING PRODUCTS—0.8%
Assa Abloy AB, Cl. B	80,800		1,468,496
DIVERSIFIED BANKS—0.5%
Nordea Bank AB*	76,300		801,891
TOTAL SWEDEN
(Cost $2,350,534)			2,270,387
SWITZERLAND—6.2%
DIVERSIFIED CAPITAL MARKETS—1.7%
Credit Suisse Group AG	140,000		1,953,685
UBS Group AG	71,900		1,016,652
			2,970,337
PACKAGED FOODS & MEATS—2.2%
Nestle SA	53,701		3,894,660
PHARMACEUTICALS—1.2%
Novartis AG	30,600		2,171,937
PROPERTY & CASUALTY INSURANCE—1.1%
Chubb Ltd.	16,200		2,057,400
TOTAL SWITZERLAND
(Cost $12,147,672)			11,094,334
TAIWAN—2.8%
ELECTRONIC COMPONENTS—0.5%
Largan Precision Co., Ltd.*	8,151		962,500
SEMICONDUCTORS—1.7%
Taiwan Semiconductor Manufacturing Co., Ltd.*	514,100		3,088,136
TEXTILES—0.6%
Eclat Textile Co., Ltd.*	90,000		1,020,731
TOTAL TAIWAN
(Cost $3,939,536)			5,071,367
UNITED KINGDOM—12.0%
DISTILLERS & VINTNERS—0.5%
Diageo PLC.	34,200		910,323
HOTELS RESORTS & CRUISE LINES—0.5%
Carnival Corp.	18,000		868,227
HOUSEHOLD PRODUCTS—1.4%
Reckitt Benckiser Group PLC.	28,062		2,510,543

- 41 -

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES				VALUE
UNITED KINGDOM—(CONT.)
INTEGRATED OIL & GAS—3.1%
BP PLC.	456,100			$	2,696,439
Royal Dutch Shell PLC., Cl. B	111,632				2,879,387
					5,575,826
PHARMACEUTICALS—2.1%
AstraZeneca PLC.	28,027				1,569,438
GlaxoSmithKline PLC.	110,167				2,176,363
					3,745,801
TOBACCO—3.6%
British American Tobacco PLC.	48,511				2,780,422
Imperial Brands PLC.*	77,973				3,771,852
					6,552,274
TRADING COMPANIES & DISTRIBUTORS—0.8%
Ashtead Group PLC.	91,600				1,427,325
TOTAL UNITED KINGDOM
(Cost $22,308,959)					21,590,319
UNITED STATES—5.6%
APPLICATION SOFTWARE—0.2%
Mobileye NV*	11,500				427,570
AUTO PARTS & EQUIPMENT—0.5%
Delphi Automotive PLC.	13,352				868,815
HEALTH CARE EQUIPMENT—1.2%
Medtronic PLC.	25,700				2,107,914
PHARMACEUTICALS—2.0%
Allergan PLC.*	17,000				3,551,980
SEMICONDUCTORS—1.7%
Broadcom Ltd.	17,970				3,059,931
TOTAL UNITED STATES
(Cost $10,590,924)					10,016,210
TOTAL COMMON STOCKS
(Cost $171,414,671)				172,378,164
Total Investments
(Cost $171,414,671)^(a)	95.6	%		172,378,164
Other Assets in Excess of Liabilities	4.4	%			7,921,981
NET ASSETS	100.0	%	$	180,300,145

# American Depositary Receipts.
(a) At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes of
$172,320,494, amounted to $57,670 which consisted of aggregate gross unrealized appreciation of $11,018,398 and
aggregate gross unrealized depreciation of $10,960,728.
* Non-income producing security.

Industry classifications are unaudited.
See Notes to Financial Statements.

- 42 -

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—86.0%	SHARES		VALUE
AEROSPACE & DEFENSE—2.2%
Hexcel Corp.	24,852	$	1,130,517
TransDigm Group, Inc.	8,510		2,318,635
			3,449,152
AIRLINES—0.9%
Southwest Airlines Co.	36,494		1,461,585
ALTERNATIVE CARRIERS—1.1%
Level 3 Communications, Inc.*	14,491		813,670
Zayo Group Holdings, Inc.*	30,097		968,521
			1,782,191
APPAREL ACCESSORIES & LUXURY GOODS—3.6%
Hanesbrands, Inc.	37,744		970,021
lululemon athletica, Inc.*	18,133		1,038,114
Michael Kors Holdings Ltd.*	16,800		853,104
PVH Corp.	17,284		1,849,042
Under Armour, Inc., Cl. A*	18,034		560,857
Under Armour, Inc., Cl. C*	14,502		375,022
			5,646,160
APPAREL RETAIL—1.9%
Burlington Stores, Inc.*	16,200		1,214,028
Ross Stores, Inc.	27,267		1,705,278
			2,919,306
APPLICATION SOFTWARE—2.1%
Autodesk, Inc.*	6,784		490,347
Gridsum Holding, Inc.#*	19,778		278,276
Manhattan Associates, Inc.*	14,931		756,106
Mobileye NV*	21,205		788,402
Splunk, Inc.*	16,604		999,395
			3,312,526
AUTO PARTS & EQUIPMENT—2.6%
Delphi Automotive PLC.	24,350		1,584,454
Johnson Controls International PLC.	35,549		1,433,336
WABCO Holdings, Inc.*	10,739		1,057,362
			4,075,152
AUTOMOTIVE RETAIL—1.1%
O'Reilly Automotive, Inc.*	6,433		1,701,143
BIOTECHNOLOGY—3.9%
ARIAD Pharmaceuticals, Inc.*	52,505		457,844
BioMarin Pharmaceutical, Inc.*	14,014		1,128,407
Bluebird Bio, Inc.*	11,268		538,047
Incyte Corp.*	13,144		1,143,134
Sarepta Therapeutics, Inc.*	15,389		603,865
TESARO, Inc.*	9,723		1,175,316
Ultragenyx Pharmaceutical, Inc.*	5,400		318,546
Vertex Pharmaceuticals, Inc.*	10,569		801,764
			6,166,923

- 43 -

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
BROADCASTING—0.8%
CBS Corp., Cl. B	22,189	$	1,256,341
BUILDING PRODUCTS—2.0%
Allegion PLC.	28,571		1,823,972
Fortune Brands Home & Security, Inc.	22,344		1,220,653
			3,044,625
COMMUNICATIONS EQUIPMENT—2.2%
F5 Networks, Inc.*	11,746		1,623,415
Finisar Corp.*	36,916		1,010,760
Palo Alto Networks, Inc.*	4,081		627,780
Quantenna Communications, Inc.*	14,038		210,289
			3,472,244
CONSTRUCTION & FARM MACHINERY & HEAVY
TRUCKS—1.0%
Wabtec Corp.	20,700		1,600,317
CONSUMER FINANCE—0.3%
LendingClub Corp.*	104,062		513,026
DATA PROCESSING & OUTSOURCED SERVICES—4.4%
Euronet Worldwide, Inc.*	12,010		955,395
Fiserv, Inc.*	18,310		1,803,169
FleetCor Technologies, Inc.*	3,759		658,953
MAXIMUS, Inc.	21,600		1,124,496
Sabre Corp.	44,537		1,150,391
WNS Holdings Ltd.#*	41,468		1,140,370
			6,832,774
DISTILLERS & VINTNERS—0.4%
Constellation Brands Inc., Cl. A	3,800		635,056
ELECTRICAL COMPONENTS & EQUIPMENT—0.8%
Acuity Brands, Inc.	1,600		357,712
AMETEK, Inc.	20,148		888,527
			1,246,239
FINANCIAL EXCHANGES & DATA—3.1%
IntercontinentalExchange Group, Inc.	4,957		1,340,323
MarketAxess Holdings, Inc.	6,373		960,794
MSCI, Inc.	9,823		787,706
S&P Global, Inc.	13,805		1,682,139
			4,770,962
FOOD DISTRIBUTORS—1.1%
Performance Food Group Co.*	73,700		1,768,800
GENERAL MERCHANDISE STORES—1.6%
Dollar General Corp.	10,544		728,485
Dollar Tree, Inc.*	23,605		1,783,358
			2,511,843
HEALTH CARE EQUIPMENT—6.5%
ABIOMED, Inc.*	14,748		1,548,393
Baxter International, Inc.	13,412		638,277

- 44 -

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
HEALTH CARE EQUIPMENT—(CONT.)
DexCom, Inc.*	27,752	$		2,171,316
Edwards Lifesciences Corp.*	20,000			1,904,400
IDEXX Laboratories, Inc.*	17,067			1,828,558
Insulet Corp.*	13,988			519,235
Masimo Corp.*	11,946			657,030
Nevro Corp.*	5,421			498,298
Obalon Therapeutics, Inc.*	32,242			416,889
			10,182,396
HEALTH CARE FACILITIES—1.7%
Amsurg Corp.*	15,200			908,200
Universal Health Services, Inc., Cl. B	3,735			450,852
VCA Antech, Inc.*	20,312			1,248,375
				2,607,427
HEALTH CARE TECHNOLOGY—0.8%
Medidata Solutions, Inc.*	26,317			1,262,953
HOME ENTERTAINMENT SOFTWARE—1.7%
Electronic Arts, Inc.*	33,585			2,637,094
HOTELS RESORTS & CRUISE LINES—2.9%
Carnival Corp.	30,241			1,484,833
Royal Caribbean Cruises Ltd.	39,688			3,050,817
				4,535,650
HOUSEHOLD PRODUCTS—1.1%
Church & Dwight Co., Inc.	35,800			1,727,708
HOUSEWARES & SPECIALTIES—2.3%
Newell Brands, Inc.	76,267			3,662,341
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.3%
WageWorks, Inc.*	7,200			424,440
INDUSTRIAL GASES—1.0%
Air Products & Chemicals, Inc.	11,091			1,479,761
INDUSTRIAL MACHINERY—0.5%
Colfax Corp.*	25,149			799,487
INTERNET SOFTWARE & SERVICES—3.3%
comScore, Inc.*	27,300			785,967
Cornerstone OnDemand, Inc.*	14,778			610,331
eBay, Inc.*	18,803			536,074
GrubHub, Inc.*	33,196			1,265,100
LogMeIn, Inc.	4,433			421,135
Palantir Technologies, Inc., Cl. A*^,@	16,376			125,276
Q2 Holdings, Inc.*	30,400			854,240
Stamps.com, Inc.*	6,072			592,324
				5,190,447
INVESTMENT BANKING & BROKERAGE—0.7%
TD Ameritrade Holding Corp.	32,600			1,115,246
IT CONSULTING & OTHER SERVICES—0.9%
InterXion Holding NV*	39,074			1,454,725

- 45 -

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
LEISURE PRODUCTS—0.5%
Coach, Inc.	20,396	$	732,012
LIFE SCIENCES TOOLS & SERVICES—1.0%
Charles River Laboratories International, Inc.*	7,800		591,864
NanoString Technologies, Inc.*	23,125		449,781
Patheon NV*	18,100		459,559
			1,501,204
METAL & GLASS CONTAINERS—0.9%
Ball Corp.	18,700		1,441,209
OIL & GAS DRILLING—0.2%
Patterson-UTI Energy, Inc.	16,258		365,480
OIL & GAS EQUIPMENT & SERVICES—0.1%
Weatherford International PLC.*	37,500		180,750
OIL & GAS EXPLORATION & PRODUCTION—0.7%
PDC Energy, Inc.*	6,236		382,454
Pioneer Natural Resources Co.	4,323		773,903
			1,156,357
PACKAGED FOODS & MEATS—2.2%
ConAgra Foods, Inc.	17,602		848,064
Pinnacle Foods, Inc.	25,022		1,286,631
TreeHouse Foods, Inc.*	14,197		1,241,954
			3,376,649
PHARMACEUTICALS—0.9%
Aerie Pharmaceuticals, Inc.*	20,893		694,692
Akorn, Inc.*	11,100		265,845
Dermira, Inc.*	14,464		453,447
			1,413,984
REGIONAL BANKS—0.5%
Citizens Financial Group, Inc.	31,700		834,978
RESEARCH & CONSULTING SERVICES—1.4%
Verisk Analytics, Inc., Cl. A*	27,700		2,258,935
SEMICONDUCTOR EQUIPMENT—0.7%
Lam Research Corp.	11,765		1,139,558
SEMICONDUCTORS—5.0%
Broadcom Ltd.	15,178		2,584,510
Cavium Networks, Inc.*	18,600		1,049,970
Microsemi Corp.*	18,428		776,372
NXP Semiconductors NV*	15,240		1,524,000
Skyworks Solutions, Inc.	24,228		1,864,102
			7,798,954
SPECIALIZED CONSUMER SERVICES—1.1%
ServiceMaster Global Holdings, Inc.*	45,645		1,633,635
SPECIALTY CHEMICALS—2.9%
Axalta Coating Systems Ltd.*	18,896		474,667
Balchem Corp.	13,187		1,000,893

- 46 -

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
SPECIALTY CHEMICALS—(CONT.)
International Flavors & Fragrances, Inc.	4,893	$		639,907
The Sherwin-Williams Co.	3,576			875,619
WR Grace & Co.	22,810			1,527,358
				4,518,444
SPECIALTY STORES—1.2%
Tractor Supply Co.	12,528			784,629
Ulta Salon, Cosmetics & Fragrance, Inc.*	4,200			1,022,028
				1,806,657
SYSTEMS SOFTWARE—3.1%
Fortinet, Inc.*	39,791			1,275,699
Proofpoint, Inc.*	9,268			726,426
ServiceNow, Inc.*	23,716			2,084,874
TubeMogul, Inc.*	97,300			710,290
				4,797,289
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—0.6%
Western Digital Corp.	14,569			851,412
TRADING COMPANIES & DISTRIBUTORS—1.4%
HD Supply Holdings, Inc.*	66,763			2,203,179
TRUCKING—0.8%
Old Dominion Freight Line, Inc.*	17,600			1,314,368
TOTAL COMMON STOCKS
(Cost $129,209,594)			134,571,094
PREFERRED STOCKS—1.3%	SHARES			VALUE
BIOTECHNOLOGY—1.0%
Prosetta Biosciences, Inc., Series D*^,@,(a)	219,610			887,225
Tolero Pharmaceuticals, Inc. Series B*^,@,(a)	495,000			638,550
				1,525,775
INTERNET SOFTWARE & SERVICES—0.3%
Palantir Technologies, Inc., Cl. B*^,@	66,787			510,920
Palantir Technologies, Inc., Cl. D*^,@	8,701			66,563
				577,483
TOTAL PREFERRED STOCKS
(Cost $2,979,689)				2,103,258
REAL ESTATE INVESTMENT TRUST—3.4%	SHARES			VALUE
HEALTH CARE—0.5%
Omega Healthcare Investors, Inc.	21,800			693,894
MORTGAGE—0.5%
Blackstone Mortgage Trust, Inc., Cl. A	25,342			765,329
SPECIALIZED—2.4%
Crown Castle International Corp.	17,149			1,560,387
Lamar Advertising Co., Cl. A	35,075			2,225,509
				3,785,896
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $5,508,370)				5,245,119

- 47 -

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


SPECIAL PURPOSE VEHICLE—0.2%	SHARES			VALUE
CONSUMER FINANCE—0.2%
JS Kred SPV I, LLC.^@	314,956		$	327,271
(Cost $314,956)				327,271
Total Investments
(Cost $138,012,609)^(b)	90.9	%		142,246,742
Other Assets in Excess of Liabilities	9.1	%		14,184,374
NET ASSETS	100.0	%	$	156,431,116

# American Depositary Receipts.
(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the
Investment Company Act of 1940. See Affiliated Securities Note 11.
(b) At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income
tax purposes of $138,072,339, amounted to $4,174,403 which consisted of aggregate gross unrealized
appreciation of $12,526,345 and aggregate gross unrealized depreciation of $8,351,942.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is
deemed to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
JS Kred SPV I, LLC.	06/26/15	$	314,956	0.15	%	$	327,271	0.21	%
Palantir Technologies, Inc., Cl. A	10/07/14		106,559	0.05	%		125,276	0.08	%
Palantir Technologies, Inc., Cl. B	10/07/14		441,023	0.22	%		510,920	0.33	%
Palantir Technologies, Inc., Cl. D	10/14/14		57,451	0.03	%		66,563	0.04	%
Prosetta Biosciences, Inc., Series
D	02,06,15		988,245	0.50	%		887,225	0.56	%
Tolero Pharmaceuticals, Inc.	08,01,14		1,003,888	0.45	%		427,829	0.27	%
Tolero Pharmaceuticals, Inc.	10/31/14		489,082	0.23	%		210,721	0.14	%
Total						$	2,555,805	1.63	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 48 -

THE ALGER FUNDS | ALGER SMID CAP GROWTH FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—91.9%	SHARES			VALUE
AEROSPACE & DEFENSE—0.4%
Hexcel Corp.	15,339	$		697,771
APPAREL ACCESSORIES & LUXURY GOODS—1.0%
Ralph Lauren Corp.	18,539			1,818,676
APPAREL RETAIL—0.5%
Burlington Stores, Inc.*	12,476			934,951
APPLICATION SOFTWARE—11.0%
Blackbaud, Inc.	83,573			5,131,382
Ellie Mae, Inc.*	18,169			1,923,916
Everbridge, Inc.*	31,270			460,294
Fair Isaac Corp.	10,383			1,253,021
HubSpot, Inc.*	25,276			1,325,726
Mobileye NV*	67,420			2,506,676
Splunk, Inc.*	24,102			1,450,699
Tyler Technologies, Inc.*	17,658			2,832,343
Ultimate Software Group, Inc.*	12,722			2,684,215
			19,568,272
ASSET MANAGEMENT & CUSTODY BANKS—2.9%
Affiliated Managers Group, Inc.*	16,349			2,168,858
WisdomTree Investments, Inc.	340,780			2,923,893
				5,092,751
BIOTECHNOLOGY—5.2%
ACADIA Pharmaceuticals, Inc.*	84,972			1,980,697
Alexion Pharmaceuticals, Inc.*	5,326			695,043
Incyte Corp.*	22,084			1,920,646
Neurocrine Biosciences, Inc.*	41,524			1,817,505
Ra Pharmaceuticals, Inc.*	13,592			174,657
TESARO, Inc.*	17,654			2,134,016
Ultragenyx Pharmaceutical, Inc.*	10,723			632,550
				9,355,114
BREWERS—0.4%
Craft Brew Alliance, Inc.*	42,934			689,091
BUILDING PRODUCTS—1.6%
Allegion PLC.	44,295			2,827,793
COMMUNICATIONS EQUIPMENT—1.5%
F5 Networks, Inc.*	7,830			1,082,184
Finisar Corp.*	47,291			1,294,828
Quantenna Communications, Inc.*	16,185			242,451
				2,619,463
CONSTRUCTION & FARM MACHINERY & HEAVY
TRUCKS—1.7%
Wabtec Corp.	39,658			3,065,960
CONSUMER FINANCE—3.0%
LendingClub Corp.*	1,090,371			5,375,529
DATA PROCESSING & OUTSOURCED SERVICES—1.0%
Euronet Worldwide, Inc.*	22,127			1,760,203

- 49 -

THE ALGER FUNDS | ALGER SMID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
DISTRIBUTORS—1.2%
LKQ Corp.*	66,847	$		2,157,821
ELECTRONIC COMPONENTS—1.4%
Dolby Laboratories Inc., Cl. A	53,831			2,561,817
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.5%
FLIR Systems, Inc.	24,437			804,466
ELECTRONIC MANUFACTURING SERVICES—0.7%
Trimble, Inc.*	47,838			1,322,242
FINANCIAL EXCHANGES & DATA—3.8%
IntercontinentalExchange Group, Inc.	8,540			2,309,131
MarketAxess Holdings, Inc.	30,206			4,553,856
				6,862,987
FOOD DISTRIBUTORS—1.0%
Performance Food Group Co.*	75,336			1,808,064
GENERAL MERCHANDISE STORES—1.1%
Dollar General Corp.	27,314			1,887,124
HEALTH CARE EQUIPMENT—8.2%
Abaxis, Inc.	39,231			1,872,888
ABIOMED, Inc.*	18,439			1,935,910
Cantel Medical Corp.	49,103			3,497,607
DexCom, Inc.*	36,804			2,879,545
Insulet Corp.*	36,124			1,340,923
STERIS PLC.	27,218			1,818,707
Tactile Systems Technology, Inc.*	76,010			1,350,317
			14,695,897
HEALTH CARE FACILITIES—0.9%
Amsurg Corp.*	26,348			1,574,293
HEALTH CARE SUPPLIES—1.8%
DENTSPLY SIRONA, Inc.	15,484			891,414
Neogen Corp.*	42,805			2,255,395
				3,146,809
HEALTH CARE TECHNOLOGY—4.2%
Medidata Solutions, Inc.*	71,670			3,439,443
Veeva Systems, Inc., Cl. A*	105,347			4,092,731
				7,532,174
HOME ENTERTAINMENT SOFTWARE—2.6%
Activision Blizzard, Inc.	40,805			1,761,552
Take-Two Interactive Software, Inc.*	65,484			2,906,835
				4,668,387
HUMAN RESOURCE & EMPLOYMENT SERVICES—2.6%
On Assignment, Inc.*	51,773			1,781,509
WageWorks, Inc.*	47,833			2,819,755
				4,601,264
INTERNET SOFTWARE & SERVICES—5.6%
GrubHub, Inc.*	135,002			5,144,926
LogMeIn, Inc.	10,079			957,505

- 50 -

THE ALGER FUNDS | ALGER SMID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
INTERNET SOFTWARE & SERVICES—(CONT.)
Match Group, Inc.*	135,075	$		2,439,455
Palantir Technologies, Inc., Cl. A*^,@	81,310			622,021
Shopify, Inc., Cl. A*	21,962			910,325
			10,074,232
LIFE SCIENCES TOOLS & SERVICES—4.5%
Bio-Techne Corp.	47,156			4,903,753
Luminex Corp.*	146,652			3,054,761
				7,958,514
MANAGED HEALTH CARE—1.2%
Centene Corp.*	34,490			2,154,935
MOVIES & ENTERTAINMENT—2.2%
Lions Gate Entertainment Corp.	195,297			3,976,247
OIL & GAS DRILLING—0.7%
Helmerich & Payne, Inc.	19,943			1,258,603
OIL & GAS EQUIPMENT & SERVICES—0.4%
Weatherford International PLC.*	146,847			707,803
OIL & GAS EXPLORATION & PRODUCTION—0.7%
Pioneer Natural Resources Co.	7,222			1,292,882
PACKAGED FOODS & MEATS—1.1%
Hain Celestial Group, Inc.*	52,570			1,911,971
PHARMACEUTICALS—0.9%
Aerie Pharmaceuticals, Inc.*	26,157			869,720
The Medicines Co.*	24,986			823,289
				1,693,009
RESTAURANTS—1.4%
Shake Shack, Inc., Cl. A*	76,946			2,453,808
SEMICONDUCTORS—6.6%
Cavium Networks, Inc.*	24,422			1,378,622
Microsemi Corp.*	94,462			3,979,684
Monolithic Power Systems, Inc.	23,971			1,889,155
Skyworks Solutions, Inc.	59,596			4,585,316
				11,832,777
SPECIALTY CHEMICALS—0.5%
WR Grace & Co.	13,033			872,690
SYSTEMS SOFTWARE—3.6%
Proofpoint, Inc.*	35,654			2,794,560
ServiceNow, Inc.*	30,286			2,662,442
TubeMogul, Inc.*	126,529			923,662
				6,380,664
TRADING COMPANIES & DISTRIBUTORS—1.2%
HD Supply Holdings, Inc.*	62,974			2,078,142

- 51 -

THE ALGER FUNDS | ALGER SMID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
TRUCKING—1.1%
Old Dominion Freight Line, Inc.*	26,476		$	1,977,228
TOTAL COMMON STOCKS
(Cost $151,657,534)			164,052,424
PREFERRED STOCKS—3.7%	SHARES			VALUE
BIOTECHNOLOGY—0.5%
Prosetta Biosciences, Inc., Series D*^,@,(a)	231,474			935,155
INTERNET SOFTWARE & SERVICES—1.6%
Palantir Technologies, Inc., Cl. B*^,@	331,607			2,536,793
Palantir Technologies, Inc., Cl. D*^,@	43,203			330,503
				2,867,296
PHARMACEUTICALS—1.6%
Intarcia Therapeutics, Inc., Series DD*^,@	49,317			2,813,042
TOTAL PREFERRED STOCKS
(Cost $5,114,017)				6,615,493
RIGHTS—0.0%	SHARES			VALUE
BIOTECHNOLOGY—0.0%
Dyax Corp. *^,@	37,550			–
(Cost $1)				–
MASTER LIMITED PARTNERSHIP—1.1%	SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.1%
The Blackstone Group LP.	76,900			1,924,807
(Cost $1,836,995)				1,924,807
REAL ESTATE INVESTMENT TRUST—3.4%	SHARES			VALUE
SPECIALIZED—3.4%
Crown Castle International Corp.	34,879			3,173,641
Lamar Advertising Co., Cl. A	47,018			2,983,292
				6,156,933
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $6,090,021)				6,156,933
Total Investments
(Cost $164,698,568)^(b)	100.1	%	178,749,657
Liabilities in Excess of Other Assets	(0.1	)%		(136,636	)
NET ASSETS	100.0	%	$	178,613,021

(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment Company Act
of 1940. See Affiliated Securities Note 11.
(b) At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes of
$171,457,406, amounted to $7,292,251 which consisted of aggregate gross unrealized appreciation of $18,707,080 and
aggregate gross unrealized depreciation of $11,414,829.
* Non-income producing security.

- 52 -

THE ALGER FUNDS | ALGER SMID CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)

@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be
liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Intarcia Therapeutics, Inc., Series
DD	03/27/14	$	1,597,378	0.14	%	$	2,813,042	1.57	%
Dyax Corp.	05/07/15		0	0.00	%		0	0.00	%
Dyax Corp.	05/15/15		0	0.00	%		0	0.00	%
Dyax Corp.	06/18/15		0	0.00	%		0	0.00	%
Dyax Corp.	06/26/15		0	0.00	%		0	0.00	%
Palantir Technologies, Inc., Cl. A	10/07/14		529,084	0.05	%		622,021	0.35	%
Palantir Technologies, Inc., Cl. B	10/07/14		2,189,744	0.22	%		2,536,793	1.42	%
Palantir Technologies, Inc., Cl. D	10/14/14		285,262	0.03	%		330,503	0.19	%
Prosetta Biosciences, Inc., Series D	02/06/15		1,041,633	0.10	%		935,155	0.52	%
Total						$	7,237,514	4.05	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 53 -

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—94.6%	SHARES			VALUE
AEROSPACE & DEFENSE—0.8%
Hexcel Corp.	21,200	$		964,388
APPAREL RETAIL—2.5%
American Eagle Outfitters, Inc.	75,500			1,286,520
Burlington Stores, Inc.*	22,600			1,693,644
				2,980,164
APPLICATION SOFTWARE—12.4%
American Software, Inc., Cl. A	176,151			1,837,255
Blackbaud, Inc.	36,300			2,228,820
Ellie Mae, Inc.*	12,500			1,323,625
Everbridge, Inc.*	36,285			534,115
Fair Isaac Corp.	7,500			905,100
Guidewire Software, Inc.*	21,200			1,217,940
HubSpot, Inc.*	22,100			1,159,145
Manhattan Associates, Inc.*	44,500			2,253,480
Tyler Technologies, Inc.*	22,100			3,544,840
			15,004,320
ASSET MANAGEMENT & CUSTODY BANKS—1.7%
WisdomTree Investments, Inc.	245,310			2,104,760
AUTOMOTIVE RETAIL—0.5%
Lithia Motors, Inc., Cl. A	7,297			625,937
BIOTECHNOLOGY—3.2%
ACADIA Pharmaceuticals, Inc.*	49,300			1,149,183
Halozyme Therapeutics, Inc.*	34,600			298,598
Heron Therapeutics, Inc.*	17,900			265,815
Ra Pharmaceuticals, Inc.*	9,159			117,693
TESARO, Inc.*	13,300			1,607,704
Ultragenyx Pharmaceutical, Inc.*	6,700			395,233
				3,834,226
BREWERS—0.4%
Craft Brew Alliance, Inc.*	30,600			491,130
BUILDING PRODUCTS—1.5%
Masonite International Corp.*	32,500			1,849,250
COMMUNICATIONS EQUIPMENT—1.4%
NetScout Systems, Inc.*	54,300			1,490,535
Quantenna Communications, Inc.*	10,827			162,188
				1,652,723
CONSUMER FINANCE—1.9%
LendingClub Corp.*	471,300			2,323,509
DATA PROCESSING & OUTSOURCED SERVICES—1.9%
Euronet Worldwide, Inc.*	17,000			1,352,350
MAXIMUS, Inc.	18,400			957,904
				2,310,254
ELECTRONIC COMPONENTS—2.9%
Dolby Laboratories Inc., Cl. A	18,500			880,415

- 54 -

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
ELECTRONIC COMPONENTS—(CONT.)
DTS, Inc.	60,700	$		2,570,645
				3,451,060
ELECTRONIC EQUIPMENT & INSTRUMENTS—3.5%
Cognex Corp.	59,100			3,049,560
FLIR Systems, Inc.	35,578			1,171,228
				4,220,788
FOOD DISTRIBUTORS—1.4%
Performance Food Group Co.*	68,829			1,651,896
HEALTH CARE EQUIPMENT—8.6%
Abaxis, Inc.	42,600			2,033,724
ABIOMED, Inc.*	19,200			2,015,808
Cantel Medical Corp.	39,000			2,777,970
Inogen, Inc.*	24,800			1,331,016
Obalon Therapeutics, Inc.*	25,447			329,030
STERIS PLC.	13,100			875,342
Tactile Systems Technology, Inc.*	56,600			1,005,499
			10,368,389
HEALTH CARE FACILITIES—2.8%
Amsurg Corp.*	15,400			920,150
Surgery Partners, Inc.*	38,800			624,680
VCA Antech, Inc.*	29,000			1,782,340
				3,327,170
HEALTH CARE SUPPLIES—5.5%
Endologix, Inc.*	50,482			528,041
Meridian Bioscience, Inc.	47,293			777,970
Neogen Corp.*	63,800			3,361,622
Quidel Corp.*	102,700			1,982,110
				6,649,743
HEALTH CARE TECHNOLOGY—5.6%
Medidata Solutions, Inc.*	47,900			2,298,721
Quality Systems, Inc.	60,329			777,641
Veeva Systems, Inc., Cl. A*	49,800			1,934,730
Vocera Communications, Inc.*	92,300			1,698,320
				6,709,412
HOME ENTERTAINMENT SOFTWARE—1.6%
Take-Two Interactive Software, Inc.*	42,600			1,891,014
HUMAN RESOURCE & EMPLOYMENT SERVICES—2.9%
On Assignment, Inc.*	37,900			1,304,139
WageWorks, Inc.*	36,400			2,145,780
				3,449,919
INDUSTRIAL MACHINERY—2.6%
Proto Labs, Inc.*	31,900			1,425,930
Sun Hydraulics Corp.	57,500			1,692,225
				3,118,155
INTERNET SOFTWARE & SERVICES—6.2%
GrubHub, Inc.*	66,800			2,545,748

- 55 -

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
INTERNET SOFTWARE & SERVICES—(CONT.)
NIC, Inc.	55,700	$	1,278,315
Nutanix, Inc., Cl. A*	1,082		26,509
Shopify, Inc., Cl. A*	8,200		339,890
SPS Commerce, Inc.*	16,900		1,054,222
Stamps.com, Inc.*	23,100		2,253,405
			7,498,089
IT CONSULTING & OTHER SERVICES—1.1%
InterXion Holding NV*	34,500		1,284,435
LEISURE FACILITIES—0.6%
Planet Fitness, Inc., Cl. A*	36,600		775,920
LIFE SCIENCES TOOLS & SERVICES—4.5%
Bio-Techne Corp.	28,500		2,963,715
Luminex Corp.*	84,300		1,755,969
PRA Health Sciences, Inc.*	13,000		691,860
			5,411,544
MOVIES & ENTERTAINMENT—0.7%
Lions Gate Entertainment Corp.	44,400		903,984
OIL & GAS EQUIPMENT & SERVICES—0.6%
RPC, Inc.*	45,100		778,877
OIL & GAS EXPLORATION & PRODUCTION—0.5%
Parsley Energy, Inc., Cl. A*	20,100		661,290
PACKAGED FOODS & MEATS—0.8%
TreeHouse Foods, Inc.*	11,426		999,546
PHARMACEUTICALS—1.6%
Aerie Pharmaceuticals, Inc.*	16,827		559,498
Pacira Pharmaceuticals, Inc.*	24,400		775,920
The Medicines Co.*	17,500		576,625
			1,912,043
RESTAURANTS—2.8%
Shake Shack, Inc., Cl. A*	69,400		2,213,166
Wingstop, Inc.	43,300		1,158,708
			3,371,874
SEMICONDUCTORS—3.4%
Cavium Networks, Inc.*	18,000		1,016,100
Microsemi Corp.*	32,697		1,377,525
Monolithic Power Systems, Inc.	21,100		1,662,891
			4,056,516
SPECIALTY CHEMICALS—2.4%
Balchem Corp.	39,000		2,960,100
SPECIALTY STORES—0.8%
Five Below, Inc.*	25,455		956,599
SYSTEMS SOFTWARE—3.0%
Proofpoint, Inc.*	30,100		2,359,238

- 56 -

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES				VALUE
SYSTEMS SOFTWARE—(CONT.)
TubeMogul, Inc.*	168,173		$		1,227,663
					3,586,901
TOTAL COMMON STOCKS
(Cost $103,587,958)				114,135,925
PREFERRED STOCKS—0.3%	SHARES				VALUE
BIOTECHNOLOGY—0.3%
Prosetta Biosciences, Inc., Series D*^,@,(a)	50,688				204,779
Tolero Pharmaceuticals, Inc. Series B*^,@,(a)	148,237				191,226
					396,005
TOTAL PREFERRED STOCKS
(Cost $675,194)					396,005
RIGHTS—0.0%	SHARES				VALUE
BIOTECHNOLOGY—0.0%
Dyax Corp. *^,@	9,700				–
Neuralstem, Inc., 1/8/2019*^,@	77,950				–
					–
TOTAL RIGHTS
(Cost $0)					–
REAL ESTATE INVESTMENT TRUST—1.6%	SHARES				VALUE
SPECIALIZED—1.6%
CyrusOne, Inc.	44,500				1,985,145
(Cost $1,519,489)					1,985,145
SPECIAL PURPOSE VEHICLE—0.3%	SHARES				VALUE
CONSUMER FINANCE—0.3%
JS Kred SPV I, LLC.^@	290,078				301,420
(Cost $290,078)					301,420
Total Investments
(Cost $106,072,719)^(b)	96.8	%		116,818,495
Other Assets in Excess of Liabilities	3.2	%			3,800,847
NET ASSETS	100.0	%	$		120,619,342

(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the
Investment Company Act of 1940. See Affiliated Securities Note 11.
(b) At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income
tax purposes of $107,267,873, amounted to $9,550,622 which consisted of aggregate gross unrealized
appreciation of $19,028,250 and aggregate gross unrealized depreciation of $9,477,628.
* Non-income producing security.

- 57 -

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2016 (Continued)

@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is
deemed to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
JS Kred SPV I, LLC.	06/26/15	$	290,078	0.15	%	$	301,420	0.25	%
Neuralstem, Inc.	01/03/14		0	0.00	%		–	0.00	%
Dyax Corp.	05/01/15		0	0.00	%		–	0.00	%
Dyax Corp.	08/14/15		0	0.00	%		–	0.00	%
Prosetta Biosciences, Inc.,
Series D	02/06/15		228,096	0.10	%		204,779	0.17	%
Tolero Pharmaceuticals, Inc.	10/31/14		447,098	0.19	%		191,226	0.16	%
Total						$	697,425	0.58	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 58 -

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—97.4%	SHARES			VALUE
APPLICATION SOFTWARE—19.0%
American Software, Inc., Cl. A	222,545	$		2,321,144
ANSYS, Inc.*	19,700			1,799,595
Blackbaud, Inc.	129,862			7,973,527
Ellie Mae, Inc.*	27,882			2,952,425
Everbridge, Inc.*	242,161			3,564,610
Guidewire Software, Inc.*	31,757			1,824,440
HubSpot, Inc.*	35,335			1,853,321
Manhattan Associates, Inc.*	121,515			6,153,519
Tyler Technologies, Inc.*	39,511			6,337,564
			34,780,145
BIOTECHNOLOGY—3.0%
Incyte Corp.*	62,693			5,452,410
COMMUNICATIONS EQUIPMENT—1.8%
NetScout Systems, Inc.*	123,250			3,383,213
ELECTRONIC COMPONENTS—3.0%
Dolby Laboratories Inc., Cl. A	43,890			2,088,725
DTS, Inc.	79,757			3,377,709
				5,466,434
ELECTRONIC EQUIPMENT & INSTRUMENTS—3.5%
Cognex Corp.	122,980			6,345,768
FINANCIAL EXCHANGES & DATA—1.0%
MarketAxess Holdings, Inc.	11,964			1,803,693
HEALTH CARE EQUIPMENT—14.9%
Abaxis, Inc.	53,737			2,565,404
ABIOMED, Inc.*	24,465			2,568,580
Cantel Medical Corp.	112,185			7,990,938
DexCom, Inc.*	49,173			3,847,295
Inogen, Inc.*	87,640			4,703,639
Insulet Corp.*	77,558			2,878,953
Tactile Systems Technology, Inc.*	157,589			2,799,569
			27,354,378
HEALTH CARE FACILITIES—1.3%
VCA Antech, Inc.*	40,035			2,460,551
HEALTH CARE SUPPLIES—8.3%
Endologix, Inc.*	285,002			2,981,121
Meridian Bioscience, Inc.	189,731			3,121,075
Neogen Corp.*	116,921			6,160,567
Quidel Corp.*	152,257			2,938,560
			15,201,323
HEALTH CARE TECHNOLOGY—10.9%
Medidata Solutions, Inc.*	147,180			7,063,168
Quality Systems, Inc.	175,646			2,264,077
Veeva Systems, Inc., Cl. A*	196,721			7,642,611
Vocera Communications, Inc.*	165,179			3,039,294
			20,009,150

- 59 -

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES				VALUE
HUMAN RESOURCE & EMPLOYMENT SERVICES—2.3%
WageWorks, Inc.*	73,039		$		4,305,649
INDUSTRIAL MACHINERY—2.7%
Proto Labs, Inc.*	67,305				3,008,534
Sun Hydraulics Corp.	64,110				1,886,757
					4,895,291
INTERNET SOFTWARE & SERVICES—7.5%
GrubHub, Inc.*	107,938				4,113,517
NIC, Inc.	198,291				4,550,778
SPS Commerce, Inc.*	23,470				1,464,059
Stamps.com, Inc.*	36,696				3,579,695
				13,708,049
LIFE SCIENCES TOOLS & SERVICES—5.5%
Bio-Techne Corp.	64,656				6,723,577
Luminex Corp.*	163,518				3,406,080
				10,129,657
PHARMACEUTICALS—1.4%
Heska Corp.*	53,860				2,660,684
RESTAURANTS—2.6%
Shake Shack, Inc., Cl. A*	78,265				2,495,871
Wingstop, Inc.	85,943				2,299,835
					4,795,706
SEMICONDUCTORS—1.3%
Monolithic Power Systems, Inc.	29,930				2,358,783
SPECIALTY CHEMICALS—3.3%
Balchem Corp.	80,238				6,090,064
SYSTEMS SOFTWARE—4.1%
Proofpoint, Inc.*	55,936				4,384,264
TubeMogul, Inc.*	418,174				3,052,670
					7,436,934
TOTAL COMMON STOCKS
(Cost $167,021,403)				178,637,882
PREFERRED STOCKS—0.0%	SHARES				VALUE
BIOTECHNOLOGY—0.0%
Tolero Pharmaceuticals, Inc., Series B*^,@,(a)	10,097				13,025
PHARMACEUTICALS—0.0%
Intarcia Therapeutics, Inc., Series DD*^,@	759				43,294
TOTAL PREFERRED STOCKS
(Cost $55,038)					56,319
Total Investments
(Cost $167,076,441)^(b)	97.4	%		178,694,201
Other Assets in Excess of Liabilities	2.6	%			4,787,695
NET ASSETS	100.0	%	$		183,481,896

- 60 -

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments October 31, 2016 (Continued)

(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment Company Act
of 1940. See Affiliated Securities Note 11.
(b) At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes of
$168,125,406, amounted to $10,568,795 which consisted of aggregate gross unrealized appreciation of $17,063,065 and
aggregate gross unrealized depreciation of $6,494,270.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be
liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Intarcia Therapeutics, Inc., Series
DD	03/27/14	$	24,584	0.14	%	$	43,294	0.02	%
Tolero Pharmaceuticals, Inc.	10/31/14		30,454	0.20	%		13,025	0.01	%
Total						$	56,319	0.03	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 61 -

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—92.7%	SHARES			VALUE
BIOTECHNOLOGY—33.7%
ACADIA Pharmaceuticals, Inc.*	54,000	$		1,258,740
Alexion Pharmaceuticals, Inc.*	14,228			1,856,754
Alnylam Pharmaceuticals, Inc.*	8,500			302,600
Amicus Therapeutics, Inc.*	103,050			711,045
ARIAD Pharmaceuticals, Inc.*	77,000			671,440
Avexis, Inc.*	4,500			213,750
Bavarian Nordic A/S*	7,950			269,321
Bellicum Pharmaceuticals, Inc.*	50,000			828,000
Biogen, Inc.*	13,750			3,852,475
BioMarin Pharmaceutical, Inc.*	55,500			4,468,860
Bluebird Bio, Inc.*	16,000			764,000
Calithera Biosciences, Inc.*	45,000			123,750
Catabasis Pharmaceuticals, Inc.*	56,282			194,173
Celgene Corp.*	32,000			3,269,760
Celldex Therapeutics, Inc.*	70,000			220,500
Chimerix, Inc.*	36,150			146,408
Clovis Oncology, Inc.*	22,000			639,760
Five Prime Therapeutics, Inc.*	15,000			727,950
Genmab A/S*	1,500			247,011
Global Blood Therapeutics, Inc.*	20,000			349,000
Halozyme Therapeutics, Inc.*	123,000			1,061,490
Incyte Corp.*	40,000			3,478,800
Ra Pharmaceuticals, Inc.*	14,654			188,304
REGENXBIO, Inc.*	16,000			252,000
Sarepta Therapeutics, Inc.*	70,000			2,746,800
Spark Therapeutics, Inc.*	17,500			822,675
TESARO, Inc.*	18,000			2,175,840
Trillium Therapeutics, Inc.*	25,000			341,250
Ultragenyx Pharmaceutical, Inc.*	1,500			88,485
Vertex Pharmaceuticals, Inc.*	36,000			2,730,960
			35,001,901
HEALTH CARE EQUIPMENT—20.5%
ABIOMED, Inc.*	28,500			2,992,215
Baxter International, Inc.	31,000			1,475,290
Boston Scientific Corp.*	50,000			1,100,000
CR Bard, Inc.	6,500			1,408,420
DexCom, Inc.*	38,000			2,973,120
Edwards Lifesciences Corp.*	36,000			3,427,920
IDEXX Laboratories, Inc.*	20,000			2,142,800
Insulet Corp.*	11,000			408,320
Masimo Corp.*	17,000			935,000
Medtronic PLC.	10,500			861,210
Nevro Corp.*	12,000			1,103,040
Obalon Therapeutics, Inc.*	46,795			605,059
Stryker Corp.	15,000			1,730,250
Tandem Diabetes Care, Inc.*	21,000			127,050
			21,289,694

- 62 -

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
HEALTH CARE FACILITIES—3.7%
Amsurg Corp.*	19,000	$		1,135,250
Universal Health Services, Inc., Cl. B	2,000			241,420
VCA Antech, Inc.*	40,000			2,458,400
				3,835,070
HEALTH CARE SUPPLIES—0.6%
West Pharmaceutical Services, Inc.	8,250			627,247
HEALTH CARE TECHNOLOGY—0.4%
Veeva Systems, Inc., Cl. A*	11,000			427,350
INDUSTRIAL CONGLOMERATES—0.1%
Danaher Corp.	1,500			117,825
LIFE SCIENCES TOOLS & SERVICES—2.7%
Charles River Laboratories International, Inc.*	14,500			1,100,260
Mettler-Toledo International, Inc.*	600			242,448
NanoString Technologies, Inc.*	54,000			1,050,300
Patheon NV*	16,500			418,935
				2,811,943
MANAGED HEALTH CARE—7.4%
Aetna, Inc.	6,500			697,775
Humana, Inc.	8,500			1,458,005
UnitedHealth Group, Inc.	35,000			4,946,550
WellCare Health Plans, Inc.*	5,000			567,550
				7,669,880
PHARMACEUTICALS—23.6%
Aerie Pharmaceuticals, Inc.*	32,000			1,064,000
Akorn, Inc.*	41,000			981,950
Allergan PLC.*	8,000			1,671,520
Aratana Therapeutics, Inc.*	25,000			202,500
AstraZeneca PLC.#	9,000			254,880
Bristol-Myers Squibb Co.	73,000			3,716,430
Cempra, Inc.*	23,150			419,594
Dermira, Inc.*	36,500			1,144,275
Eli Lilly & Co.	65,000			4,799,600
Emmaus Life Sciences, Inc.*^,@	479,063			143,719
GlaxoSmithKline PLC.#	45,000			1,800,450
GW Pharmaceuticals PLC.#*	3,500			410,865
Johnson & Johnson	8,500			985,915
Merck & Co., Inc.	24,009			1,409,808
Omeros Corp.*	5,000			41,000
Redhill Biopharma Ltd.#*	15,500			187,395
Shire PLC.#	24,600			4,148,544
Supernus Pharmaceuticals, Inc.*	30,000			594,000
Theravance Biopharma, Inc.*	18,000			452,340
			24,428,785
TOTAL COMMON STOCKS
(Cost $97,420,115)				96,209,695

- 63 -

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments October 31, 2016 (Continued)


PREFERRED STOCKS—6.0%	SHARES			VALUE
BIOTECHNOLOGY—5.5%
Prosetta Biosciences, Inc., Series D*^,@,(a)	897,366		$	3,625,359
Tolero Pharmaceuticals, Inc. Series B*^,@,(a)	1,638,547			2,113,725
				5,739,084
PHARMACEUTICALS—0.5%
Intarcia Therapeutics, Inc., Series DD*^,@	8,965			511,364
TOTAL PREFERRED STOCKS
(Cost $9,270,545)				6,250,448
RIGHTS—0.0%	SHARES			VALUE
BIOTECHNOLOGY—0.0%
Dyax Corp. *^,@	21,800			–
Neuralstem, Inc., 1/8/2019*^,@	344,125			–
				–
PHARMACEUTICALS—0.0%
Emmaus Life Sciences, Inc., 9/11/2018*^,@	320,000			–
TOTAL RIGHTS
(Cost $1)				–
Total Investments
(Cost $106,690,661)^(b)	98.7	%	102,460,143
Other Assets in Excess of Liabilities	1.3	%		1,399,510
NET ASSETS	100.0	%	$	103,859,653

- 64 -

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments October 31, 2016 (Continued)

# American Depositary Receipts.
(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the
Investment Company Act of 1940. See Affiliated Securities Note 11.
(b) At October 31, 2016, the net unrealized depreciation on investments, based on cost for federal income
tax purposes of $108,024,733, amounted to $5,564,589 which consisted of aggregate gross unrealized
appreciation of $11,517,125 and aggregate gross unrealized depreciation of $17,081,714.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is
deemed to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Emmaus Life Sciences, Inc.	09/09/13	$	800,000	0.42	%	$	96,000	0.09	%
Emmaus Life Sciences, Inc.	06/06/14		556,721	0.28	%		47,719	0.05	%
Emmaus Life Sciences, Inc.,
Rights	09/09/13		0	0.00	%		0	0.00	%
Intarcia Therapeutics, Inc.,
Series DD	03/27/14		290,376	0.15	%		511,364	0.49	%
Neuralstem, Inc.	01/03/14		0	0.00	%		0	0.00	%
Dyax Corp.	04/01/15		0	0.00	%		0	0.00	%
Dyax Corp.	10/15/15		0	0.00	%		0	0.00	%
Prosetta Biosciences, Inc.,
Series D	02/06/15		4,038,147	2.00	%		3,625,359	3.49	%
Tolero Pharmaceuticals, Inc.	08/01/14		3,914,286	2.01	%		1,669,843	1.61	%
Tolero Pharmaceuticals, Inc.	10/31/14		1,027,736	0.49	%		443,882	0.43	%
Total						$	6,394,167	6.16	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 65 -

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—92.6%	SHARES		VALUE
ADVERTISING—0.0%
Choicestream, Inc.*^,@,(a)	5,064	$	–
AEROSPACE & DEFENSE—2.9%
General Dynamics Corp.	7,200		1,085,328
The Boeing Co.	12,020		1,712,009
			2,797,337
AIR FREIGHT & LOGISTICS—0.8%
United Parcel Service, Inc., Cl. B	7,300		786,648
AIRPORT SERVICES—0.8%
Macquarie Infrastructure Corp.	9,780		800,102
APPAREL RETAIL—0.9%
L Brands, Inc.	6,300		454,797
VF Corp.	7,700		417,417
			872,214
ASSET MANAGEMENT & CUSTODY BANKS—1.5%
BlackRock, Inc.	4,100		1,399,084
AUTO PARTS & EQUIPMENT—2.0%
Delphi Automotive PLC.	15,500		1,008,585
Johnson Controls International PLC.	23,875		962,640
			1,971,225
BIOTECHNOLOGY—1.3%
Amgen, Inc.	4,100		578,756
Gilead Sciences, Inc.	9,700		714,211
			1,292,967
BREWERS—1.1%
Molson Coors Brewing Co., Cl. B	9,800		1,017,338
CABLE & SATELLITE—2.1%
Comcast Corporation, Cl. A	32,000		1,978,240
CASINOS & GAMING—0.6%
Las Vegas Sands Corp.	9,500		549,860
COMMUNICATIONS EQUIPMENT—1.3%
Cisco Systems, Inc.	41,100		1,260,948
CONSUMER ELECTRONICS—0.6%
Garmin Ltd.	11,100		536,796
CONSUMER FINANCE—0.7%
Discover Financial Services	11,800		664,694
DIVERSIFIED BANKS—4.7%
JPMorgan Chase & Co.	41,461		2,871,589
Wells Fargo & Co.	36,852		1,695,560
			4,567,149
DIVERSIFIED CHEMICALS—0.9%
The Dow Chemical Co.	16,500		887,865
DRUG RETAIL—1.9%
CVS Caremark Corp.	15,600		1,311,960

- 66 -

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
DRUG RETAIL—(CONT.)
Walgreens Boots Alliance, Inc.	6,100	$	504,653
			1,816,613
ELECTRICAL COMPONENTS & EQUIPMENT—0.6%
Eaton Corp., PLC.	9,500		605,815
FINANCIAL EXCHANGES & DATA—1.4%
CME Group, Inc.	13,350		1,336,335
HEALTH CARE EQUIPMENT—0.9%
Becton Dickinson and Co.	5,100		856,341
HOME IMPROVEMENT RETAIL—1.9%
The Home Depot, Inc.	15,200		1,854,552
HOTELS RESORTS & CRUISE LINES—0.7%
Royal Caribbean Cruises Ltd.	8,400		645,708
HOUSEHOLD PRODUCTS—1.6%
The Procter & Gamble Co.	18,225		1,581,930
HYPERMARKETS & SUPER CENTERS—0.9%
Wal-Mart Stores, Inc.	11,700		819,234
INDUSTRIAL CONGLOMERATES—4.1%
General Electric Co.	68,347		1,988,898
Honeywell International, Inc.	18,000		1,974,240
			3,963,138
INTEGRATED OIL & GAS—3.9%
Exxon Mobil Corp.	32,100		2,674,572
TOTAL SA#	21,900		1,045,506
			3,720,078
INTEGRATED TELECOMMUNICATION SERVICES—3.3%
AT&T, Inc.	30,300		1,114,737
Verizon Communications, Inc.	43,829		2,108,175
			3,222,912
INTERNET SOFTWARE & SERVICES—4.8%
Alphabet, Inc., Cl. A*	2,005		1,623,850
Alphabet, Inc., Cl. C*	2,010		1,576,925
Facebook, Inc., Cl. A*	10,900		1,427,791
			4,628,566
INVESTMENT BANKING & BROKERAGE—2.3%
Morgan Stanley	51,500		1,728,855
TD Ameritrade Holding Corp.	13,811		472,474
			2,201,329
LEISURE FACILITIES—0.6%
Six Flags Entertainment Corp.	10,410		579,316
LEISURE PRODUCTS—1.2%
Coach, Inc.	15,700		563,473
Mattel, Inc.	17,300		545,469
			1,108,942

- 67 -

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
MANAGED HEALTH CARE—2.5%
Aetna, Inc.	11,000	$	1,180,850
UnitedHealth Group, Inc.	8,500		1,201,305
			2,382,155
MOVIES & ENTERTAINMENT—0.9%
Time Warner, Inc.	10,000		889,900
MULTI-LINE INSURANCE—0.8%
Hartford Financial Services Group, Inc.	16,900		745,459
MULTI-UTILITIES—0.7%
Sempra Energy	6,500		696,150
OIL & GAS EQUIPMENT & SERVICES—0.9%
Halliburton Company	19,500		897,000
OIL & GAS EXPLORATION & PRODUCTION—0.9%
ConocoPhillips	21,000		912,450
OTHER DIVERSIFIED FINANCIAL SERVICES—1.1%
Bank of America Corp.	65,900		1,087,350
PACKAGED FOODS & MEATS—0.8%
The Kraft Heinz Co.	8,600		764,970
PHARMACEUTICALS—8.8%
Bristol-Myers Squibb Co.	27,900		1,420,389
Eli Lilly & Co.	20,500		1,513,720
GlaxoSmithKline PLC.#	17,100		684,171
Johnson & Johnson	20,000		2,319,800
Pfizer, Inc.	59,099		1,874,029
Roche Holding AG#	23,800		682,465
			8,494,574
RAILROADS—1.3%
CSX Corp.	42,100		1,284,471
RESTAURANTS—1.7%
Darden Restaurants, Inc.	8,100		524,799
McDonald's Corp.	9,800		1,103,186
			1,627,985
SEMICONDUCTOR EQUIPMENT—1.0%
Kla-Tencor Corp.	13,444		1,009,779
SEMICONDUCTORS—4.3%
Broadcom Ltd.	10,900		1,856,052
Intel Corp.	42,000		1,464,540
QUALCOMM, Inc.	12,100		831,512
			4,152,104
SOFT DRINKS—3.1%
PepsiCo, Inc.	19,800		2,122,560
The Coca-Cola Co.	20,700		877,680
			3,000,240
SYSTEMS SOFTWARE—4.1%
Microsoft Corp.	65,400		3,918,768

- 68 -

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—4.8%
Apple, Inc.	32,655	$	3,707,649
Western Digital Corp.	15,200		888,288
			4,595,937
TOBACCO—2.6%
Altria Group, Inc.	37,415		2,473,880
TOTAL COMMON STOCKS
(Cost $62,435,488)			89,256,448
CONVERTIBLE PREFERRED STOCKS—0.6%	SHARES		VALUE
PHARMACEUTICALS—0.6%
Allergan PLC., 5.50%, 3/1/2018	770		592,130
(Cost $770,000)			592,130
PREFERRED STOCKS—0.1%	SHARES		VALUE
ADVERTISING—0.1%
Choicestream, Inc., Series A*^,@,(a)	43,672		–
Choicestream, Inc., Series B*^,@,(a)	89,234		52,648
			52,648
TOTAL PREFERRED STOCKS
(Cost $88,465)			52,648
WARRANTS—0.0%	SHARES		VALUE
ADVERTISING—0.0%
Choicestream, Inc., 6/22/26^@,(a)	15,285		14,979
(Cost $15,269)			14,979
MASTER LIMITED PARTNERSHIP—1.8%	SHARES		VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.3%
The Blackstone Group LP.	50,400		1,261,512
OIL & GAS STORAGE & TRANSPORTATION—0.5%
Cheniere Energy Partners LP.^(b)	16,300		431,950
TOTAL MASTER LIMITED PARTNERSHIP
(Cost $1,685,765)			1,693,462
REAL ESTATE INVESTMENT TRUST—3.1%	SHARES		VALUE
HEALTH CARE—0.8%
Welltower, Inc.	11,100		760,683
MORTGAGE—0.7%
Blackstone Mortgage Trust, Inc., Cl. A	22,200		670,440
SPECIALIZED—1.6%
Crown Castle International Corp.	8,400		764,316
Lamar Advertising Co., Cl. A	12,600		799,470
			1,563,786
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $2,584,853)			2,994,909

- 69 -

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2016 (Continued)


	PRINCIPAL
CORPORATE BONDS—0.0%	AMOUNT			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 11.00%, 8/05/18^@,(a)	15,285		$	15,285
(Cost $1,856)				15,285
Total Investments
(Cost $67,581,696)^(c)	98.2	%		94,619,861
Other Assets in Excess of Liabilities	1.8	%		1,715,056
NET ASSETS	100.0	%	$	96,334,917

# American Depositary Receipts.
(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities Note 11.
(b) All or a portion of the security is on loan.
(c) At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $67,310,949, amounted to $27,308,912 which consisted of aggregate gross unrealized appreciation of
$29,251,703 and aggregate gross unrealized depreciation of $1,942,791.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Choicestream, Inc.	03/14/14	$	1,469	0.00	%	$	0	0.00	%
Choicestream, Inc., 11.00%,
8/05/18	08/04/16		1,856	0.00	%		15,285	0.02	%
Choicestream, Inc., 6/22/26	08/04/16		15,269	0.02	%		14,979	0.02	%
Choicestream, Inc., Cl. A	12/17/13		34,924	0.03	%		0	0.00	%
Choicestream, Inc., Cl. B	07/10/14		53,541	0.05	%		52,648	0.05	%
Total						$	82,912	0.09	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 70 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016


		Alger Capital		Alger International
	Appreciation Fund				Growth Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	2,324,525,640		$	172,378,164
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		1,740,728			—
Cash and cash equivalents		90,377,212			5,380,357
Foreign cash †		—			899,742
Receivable for investment securities sold		58,900,537			4,222,687
Receivable for shares of beneficial interest sold		2,199,437			112,491
Receivable for interfund loans		1,797,269			—
Dividends and interest receivable		789,928			502,192
Receivable from Investment Manager		—			5,122
Prepaid expenses		279,506			84,732
Total Assets		2,480,610,257			183,585,487

LIABILITIES:
Payable for investment securities purchased		44,627,638			2,560,394
Payable for shares of beneficial interest redeemed		9,962,985			311,995
Foreign capital gain tax payable		—			37,455
Accrued investment advisory fees		1,633,796			111,066
Accrued transfer agent fees		822,558			80,866
Accrued distribution fees		580,036			61,309
Accrued administrative fees		57,655			4,302
Accrued shareholder administrative fees		30,508			2,395
Accrued other expenses		247,396			115,560
Total Liabilities		57,962,572			3,285,342
NET ASSETS	$	2,422,647,685		$	180,300,145

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		2,152,292,326			198,279,288
Undistributed net investment income (accumulated loss)		(2,163,396	)		1,967,138
Undistributed net realized gain (accumulated realized loss)		(15,397,215	)		(20,845,455	)
Net unrealized appreciation on investments		287,915,970			899,174
NET ASSETS	$	2,422,647,685		$	180,300,145
* Identified cost	$	2,036,330,162		$	171,414,671
** Identified cost	$	2,020,236		$	—
† Cost of foreign cash	$	—		$	895,559
*See Notes to Financial Statements.*

- 71 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016 (Continued)


		Alger Capital	Alger International
	Appreciation Fund			Growth Fund

NET ASSETS BY CLASS:
Class A	$	1,360,963,390	$	107,398,097
Class B	$	16,681,679	$	25,033,075
Class C	$	309,113,561	$	15,190,137
Class I	$	—	$	14,201,978
Class Z	$	735,889,055	$	18,476,858

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		67,730,648		7,364,561
Class B		1,022,323		1,961,171
Class C		18,855,148		1,220,979
Class I		—		975,877
Class Z		35,934,569		1,253,341

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	20.09	$	14.58
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	21.21	$	15.39
Class B — Net Asset Value Per Share Class B	$	16.32	$	12.76
Class C — Net Asset Value Per Share Class C	$	16.39	$	12.44
Class I — Net Asset Value Per Share Class I	$	—	$	14.55
Class Z — Net Asset Value Per Share Class Z	$	20.48	$	14.74
*See Notes to Financial Statements.*

- 72 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016 (Continued)


	Alger Mid Cap Growth				Alger SMid Cap
		Fund			Growth Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	140,720,967		$	177,814,502
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		1,525,775			935,155
Cash and cash equivalents		11,757,523			650
Receivable for investment securities sold		5,621,084			2,231,042
Receivable for shares of beneficial interest sold		29,652			158,138
Dividends and interest receivable		229,236			1,687
Receivable from Investment Manager		329			—
Prepaid expenses		57,750			74,990
Total Assets		159,942,316			181,216,164

LIABILITIES:
Payable for investment securities purchased		2,718,435			407,370
Payable for shares of beneficial interest redeemed		443,065			513,758
Payable for interfund loans		—			1,197,749
Accrued investment advisory fees		104,024			130,927
Accrued transfer agent fees		94,471			180,480
Accrued distribution fees		57,620			56,095
Accrued administrative fees		3,764			4,445
Accrued shareholder administrative fees		2,218			2,294
Accrued other expenses		87,603			110,025
Total Liabilities		3,511,200			2,603,143
NET ASSETS	$	156,431,116		$	178,613,021

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		191,404,148			153,356,533
Undistributed net investment income (accumulated loss)		(656,460	)		(1,451,230	)
Undistributed net realized gain (accumulated realized loss)		(38,547,819	)		12,656,630
Net unrealized appreciation on investments		4,231,247			14,051,088
NET ASSETS	$	156,431,116		$	178,613,021
* Identified cost	$	135,531,395		$	163,656,935
** Identified cost	$	2,481,214		$	1,041,633
*See Notes to Financial Statements.*

- 73 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016 (Continued)


	Alger Mid Cap Growth			Alger SMid Cap
		Fund		Growth Fund

NET ASSETS BY CLASS:
Class A	$	111,422,623	$	82,617,812
Class B	$	19,004,892	$	1,641,160
Class C	$	18,494,998	$	32,182,926
Class I	$	—	$	32,605,805
Class Z	$	7,508,603	$	29,565,318

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		10,926,784		7,767,805
Class B		2,307,985		199,292
Class C		2,270,293		3,869,822
Class I		—		3,009,169
Class Z		733,083		2,678,519

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	10.20	$	10.64
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	10.76	$	11.23
Class B — Net Asset Value Per Share Class B	$	8.23	$	8.23
Class C — Net Asset Value Per Share Class C	$	8.15	$	8.32
Class I — Net Asset Value Per Share Class I	$	—	$	10.84
Class Z — Net Asset Value Per Share Class Z	$	10.24	$	11.04
*See Notes to Financial Statements.*

- 74 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016 (Continued)


		Alger Small Cap		Alger Small Cap Focus
		Growth Fund			Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	116,422,490		$	178,681,176
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		396,005			13,025
Cash and cash equivalents		4,355,350			2,348,224
Receivable for investment securities sold		142,983			212,712
Receivable for shares of beneficial interest sold		17,460			3,099,348
Dividends and interest receivable		2,332			—
Receivable from Investment Manager		694			951
Prepaid expenses		66,541			69,553
Total Assets		121,403,855			184,424,989

LIABILITIES:
Payable for investment securities purchased		272,512			475,226
Payable for shares of beneficial interest redeemed		220,855			237,820
Accrued investment advisory fees		87,084			117,060
Accrued transfer agent fees		60,226			31,669
Accrued distribution fees		31,393			35,433
Accrued administrative fees		2,957			4,292
Accrued shareholder administrative fees		1,651			1,779
Accrued other expenses		107,835			39,814
Total Liabilities		784,513			943,093
NET ASSETS	$	120,619,342		$	183,481,896

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		117,566,291			178,779,806
Undistributed net investment income (accumulated loss)		(867,784	)		(860,396	)
Undistributed net realized gain (accumulated realized loss)		(6,821,691	)		(6,055,274	)
Net unrealized appreciation on investments		10,742,526			11,617,760
NET ASSETS	$	120,619,342		$	183,481,896
* Identified cost	$	105,397,525		$	167,045,987
** Identified cost	$	675,194		$	30,454
*See Notes to Financial Statements.*

- 75 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016 (Continued)


		Alger Small Cap	Alger Small Cap Focus
		Growth Fund		Fund

NET ASSETS BY CLASS:
Class A	$	85,556,267	$	23,653,129
Class B	$	4,998,401	$	—
Class C	$	8,708,145	$	15,928,215
Class I	$	—	$	75,647,674
Class Z	$	21,356,529	$	68,252,878

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		13,921,132		2,118,928
Class B		1,056,155		—
Class C		1,896,513		1,554,537
Class I		—		6,611,001
Class Z		3,407,910		5,921,942

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	6.15	$	11.16
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	6.49	$	11.78
Class B — Net Asset Value Per Share Class B	$	4.73	$	—
Class C — Net Asset Value Per Share Class C	$	4.59	$	10.25
Class I — Net Asset Value Per Share Class I	$	—	$	11.44
Class Z — Net Asset Value Per Share Class Z	$	6.27	$	11.53
*See Notes to Financial Statements.*

- 76 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016 (Continued)


	Alger Health Sciences				Alger Growth &
		Fund			Income Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments # (Including
in Alger Growth & Income Funds securities loaned at value
of $332,276)	$	96,721,059		$	94,536,949
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		5,739,084			82,912
Cash and cash equivalents#		869,862			2,127,842
Receivable for investment securities sold		4,381,906			114,512
Receivable for shares of beneficial interest sold		50,034			80,116
Dividends and interest receivable		66,064			104,918
Receivable from Investment Manager		1,075			—
Prepaid expenses		33,855			78,313
Total Assets		107,862,939			97,125,562

LIABILITIES:
Payable for investment securities purchased		3,114,787			—
Collateral on securities loaned at value (Note 4)		—			339,244
Payable for shares of beneficial interest redeemed		612,287			300,732
Accrued investment advisory fees		78,362			48,346
Accrued transfer agent fees		95,150			33,663
Accrued distribution fees		44,194			31,672
Accrued administrative fees		2,660			2,273
Accrued shareholder administrative fees		1,566			1,300
Accrued other expenses		54,280			33,415
Total Liabilities		4,003,286			790,645
NET ASSETS	$	103,859,653		$	96,334,917

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		117,166,879			68,859,807
Undistributed net investment income (accumulated loss)		(1,200,678	)		360,022
Undistributed net realized gain (accumulated realized loss)		(7,872,017	)		76,923
Net unrealized appreciation (depreciation) on investments		(4,234,531	)		27,038,165
NET ASSETS	$	103,859,653		$	96,334,917
* Identified cost	$	97,710,492		$	67,474,637
** Identified cost	$	8,980,169		$	107,059
# Includes collateral received on stock loan	$	—		$	339,244
*See Notes to Financial Statements.*

- 77 -

THE ALGER FUNDS
Statement of Assets and Liabilities October 31, 2016 (Continued)


	Alger Health Sciences			Alger Growth &
		Fund		Income Fund

NET ASSETS BY CLASS:
Class A	$	68,685,599	$	64,123,193
Class B	$	1,951,724	$	—
Class C	$	28,241,964	$	20,789,483
Class Z	$	4,980,366	$	11,422,241

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		4,289,490		1,963,203
Class B		151,186		—
Class C		2,176,141		645,039
Class Z		312,874		349,428

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	16.01	$	32.66
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	16.90	$	34.47
Class B — Net Asset Value Per Share Class B	$	12.91	$	—
Class C — Net Asset Value Per Share Class C	$	12.98	$	32.23
Class Z — Net Asset Value Per Share Class Z	$	15.92	$	32.69
*See Notes to Financial Statements.*

- 78 -

THE ALGER FUNDS
Statement of Operations For the year ended October 31, 2016


			Alger Capital		Alger International
		Appreciation Fund				Growth Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$		29,581,916		$	4,954,272
Interest from affiliated securities – Note 11			3,503			—
Interest			172,488			6,207
Total Income			29,757,907			4,960,479

EXPENSES:
Advisory fees — Note 3(a)			19,329,676			1,436,496
Distribution fees — Note 3(c)
Class A			3,750,281			284,587
Class B			194,359			270,349
Class C			3,172,984			184,405
Class I			—			43,123
Shareholder administrative fees — Note 3(f)			367,544			30,589
Administration fees — Note 3(b)			682,409			55,639
Custodian fees			174,047			217,078
Interest expenses			—			876
Transfer agent fees and expenses — Note 3(f)			1,887,135			216,616
Printing fees			378,501			36,599
Professional fees			185,062			61,220
Registration fees			102,213			84,805
Trustee fees — Note 3(g)			101,044			8,141
Fund accounting fees			331,224			31,658
Miscellaneous			112,496			28,826
Total Expenses			30,768,975			2,991,007
Less, expense reimbursements/waivers — Note 3(a)			—			(69,450	)
Net Expenses			30,768,975			2,921,557
NET INVESTMENT INCOME (LOSS)			(1,011,068	)		2,038,922

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on investments			29,525,133			(10,580,516	)
Net realized (loss) on foreign currency transactions			(12,706	)		(271,462	)
Net change in unrealized (depreciation) on investments and
foreign currency			(39,911,973	)		(5,746,664	)
Net realized and unrealized (loss) on investments and foreign
currency			(10,399,546	)		(16,598,642	)
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$		(11,410,614	)	$	(14,559,720	)
* Foreign withholding taxes	$		134,044		$	525,395
*See Notes to Financial Statements.*

- 79 -

THE ALGER FUNDS
Statement of Operations For the year ended October 31, 2016 (Continued)


	Alger Mid Cap Growth				Alger SMid Cap
		Fund			Growth Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	1,674,007		$	1,831,524
Interest		13,887			2,515
Total Income		1,687,894			1,834,039

EXPENSES:
Advisory fees — Note 3(a)		1,263,291			2,300,528
Distribution fees — Note 3(c)
Class A		300,793			260,928
Class B		213,479			25,643
Class C		213,627			402,840
Class I		—			110,149
Shareholder administrative fees — Note 3(f)		27,218			37,971
Administration fees — Note 3(b)		45,712			78,104
Custodian fees		49,226			71,564
Interest expenses		—			5,084
Transfer agent fees and expenses — Note 3(f)		215,572			234,407
Printing fees		32,105			45,085
Professional fees		53,772			55,400
Registration fees		68,041			109,832
Trustee fees — Note 3(g)		6,707			10,831
Fund accounting fees		25,290			39,603
Miscellaneous		22,014			33,689
Total Expenses		2,536,847			3,821,658
Less, expense reimbursements/waivers — Note 3(a)		(6,943	)		—
Net Expenses		2,529,904			3,821,658
NET INVESTMENT LOSS		(842,010	)		(1,987,619	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on investments		(3,808,563	)		17,529,616
Net realized (loss) on foreign currency transactions		(22	)		—
Net change in unrealized (depreciation) on investments and
foreign currency		(3,841,136	)		(24,476,457	)
Net realized and unrealized (loss) on investments and foreign
currency		(7,649,721	)		(6,946,841	)
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$	(8,491,731	)	$	(8,934,460	)
* Foreign withholding taxes	$	—		$	6,436
*See Notes to Financial Statements.*

- 80 -

THE ALGER FUNDS
Statement of Operations For the year ended October 31, 2016 (Continued)


		Alger Small Cap		Alger Small Cap Focus
		Growth Fund			Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	778,416		$	496,801
Interest		4,830			8,140
Total Income		783,246			504,941

EXPENSES:
Advisory fees — Note 3(a)		1,071,912			905,825
Distribution fees — Note 3(c)
Class A		241,507			43,148
Class B		54,652			—
Class C		106,384			125,901
Class I		—			138,740
Shareholder administrative fees — Note 3(f)		20,560			14,018
Administration fees — Note 3(b)		36,392			33,213
Custodian fees		38,921			37,530
Interest expenses		45			64
Transfer agent fees and expenses — Note 3(f)		146,700			93,776
Printing fees		24,354			27,576
Professional fees		49,385			33,637
Registration fees		65,395			103,298
Trustee fees — Note 3(g)		5,294			5,289
Fund accounting fees		20,765			20,706
Miscellaneous		16,073			8,780
Total Expenses		1,898,339			1,591,501
Less, expense reimbursements/waivers — Note 3(a)		(13,131	)		(85,664	)
Net Expenses		1,885,208			1,505,837
NET INVESTMENT LOSS		(1,101,962	)		(1,000,896	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized (loss) on investments		(4,991,988	)		(4,992,344	)
Net realized (loss) on foreign currency transactions		(15	)		—
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		(1,014,375	)		8,560,677
Net realized and unrealized gain (loss) on investments and
foreign currency		(6,006,378	)		3,568,333
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS	$	(7,108,340	)	$	2,567,437
* Foreign withholding taxes	$	600		$	—
*See Notes to Financial Statements.*

- 81 -

THE ALGER FUNDS
Statement of Operations For the year ended October 31, 2016 (Continued)


	Alger Health Sciences				Alger Growth &
		Fund			Income Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	762,421		$	2,896,609
Interest from affiliated securities - Note 11		—			138
Interest		2,420			9,419
Total Income		764,841			2,906,166

EXPENSES:
Advisory fees — Note 3(a)		1,146,641			570,407
Distribution fees — Note 3(c)
Class A		228,350			162,735
Class B		34,202			—
Class C		393,459			215,088
Shareholder administrative fees — Note 3(f)		22,872			15,380
Administration fees — Note 3(b)		38,930			26,814
Custodian fees		55,597			29,844
Interest expenses		947			—
Transfer agent fees and expenses — Note 3(f)		190,075			92,947
Printing fees		32,770			20,399
Professional fees		42,488			32,418
Registration fees		69,205			48,974
Trustee fees — Note 3(g)		5,582			4,187
Fund accounting fees		21,355			14,967
Miscellaneous		30,964			6,047
Total Expenses		2,313,437			1,240,207
Less, expense reimbursements/waivers — Note 3(a)		(12,617	)		—
Net Expenses		2,300,820			1,240,207
NET INVESTMENT INCOME (LOSS)		(1,535,979	)		1,665,959

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized (loss) on investments		(6,988,062	)		(174,273	)
Net realized (loss) on foreign currency transactions		(432	)		—
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		(14,207,120	)		832,293
Net realized and unrealized gain (loss) on investments and
foreign currency		(21,195,614	)		658,020
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS	$	(22,731,593	)	$	2,323,979
* Foreign withholding taxes	$	5,457		$	29,078
*See Notes to Financial Statements.*

- 82 -

THE ALGER FUNDS
Statements of Changes in Net Assets


		Alger Capital Appreciation Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(1,011,068	)	$	(5,068,995	)
Net realized gain on investments and foreign currency		29,512,427			175,487,453
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		(39,911,973	)		5,671,377
Net increase (decrease) in net assets resulting from operations		(11,410,614	)		176,089,835

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(123,485,355	)		(194,964,620	)
Class B		(2,118,475	)		(4,786,430	)
Class C		(29,213,787	)		(39,410,575	)
Class Z		(47,387,508	)		(41,877,560	)
Total dividends and distributions to shareholders		(202,205,125	)		(281,039,185	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(101,382,281	)		269,268,157
Class B		(5,225,908	)		(3,509,729	)
Class C		27,049,897			95,954,673
Class Z		163,806,675			352,682,737
Net increase from shares of beneficial interest transactions —
Note 6(a)		84,248,383			714,395,838

Redemption Fees:
Class A		—			10,598
Class C		—			1,094
Total Redemption Fees — Note 6(b)		—			11,692
Total increase (decrease)		(129,367,356	)		609,458,180

Net Assets:
Beginning of period		2,552,015,041			1,942,556,861
END OF PERIOD	$	2,422,647,685		$	2,552,015,041
Undistributed net investment income (accumulated loss)	$	(2,163,396	)	$	(6,987,556	)
*See Notes to Financial Statements.*

- 83 -

THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)


		Alger International Growth Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment income	$	2,038,922		$	76,153
Net realized gain (loss) on investments and foreign currency		(10,851,978	)		5,130,975
Net change in unrealized depreciation on investments and
foreign currency		(5,746,664	)		(1,406,244	)
Net increase (decrease) in net assets resulting from operations		(14,559,720	)		3,800,884

Dividends and distributions to shareholders from:
Net investment income:
Class A		(52,326	)		(1,271,849	)
Class B		—			(11,264	)
Class C		(295,560	)		(98,277	)
Class I		(52,328	)		(37,199	)
Class Z		(133,058	)		(130,363	)
Total dividends and distributions to shareholders		(533,272	)		(1,548,952	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(21,592,184	)		4,373,732
Class B		(4,217,189	)		(8,017,758	)
Class C		(4,666,312	)		1,027,255
Class I		692,918			10,912,008
Class Z		1,154,193			11,136,307
Net increase (decrease) from shares of beneficial interest
transactions — Note 6(a)		(28,628,574	)		19,431,544

Redemption Fees:
Class A		—			16
Class C		—			188
Total Redemption Fees — Note 6(b)		—			204
Total increase (decrease)		(43,721,566	)		21,683,680

Net Assets:
Beginning of period		224,021,711			202,338,031
END OF PERIOD	$	180,300,145		$	224,021,711
Undistributed net investment income (accumulated loss)	$	1,967,138		$	(549,513	)
*See Notes to Financial Statements.*

- 84 -

THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)


		Alger Mid Cap Growth Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(842,010	)	$	(1,744,547	)
Net realized gain (loss) on investments, options and foreign
currency		(3,808,585	)		5,519,863
Net change in unrealized depreciation on investments, options
and foreign currency		(3,841,136	)		(1,230,895	)
Net increase (decrease) in net assets resulting from operations		(8,491,731	)		2,544,421

Increase (decrease) from shares of beneficial interest transactions:
Class A		(14,563,303	)		(13,488,557	)
Class B		(5,810,000	)		(7,627,468	)
Class C		(3,881,940	)		(2,461,723	)
Class Z		5,393,922			2,531,432
Net decrease from shares of beneficial interest transactions
— Note 6(a)		(18,861,321	)		(21,046,316	)

Redemption Fees:
Class A		—			45
Class C		—			10
Total Redemption Fees — Note 6(b)		—			55
Total decrease		(27,353,052	)		(18,501,840	)

Net Assets:
Beginning of period		183,784,168			202,286,008
END OF PERIOD	$	156,431,116		$	183,784,168
Undistributed net investment income (accumulated loss)	$	(656,460	)	$	(1,738,585	)
*See Notes to Financial Statements.*

- 85 -

THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)


		Alger SMid Cap Growth Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(1,987,619	)	$	(5,255,899	)
Net realized gain on investments and foreign currency		17,529,616			195,242,041
Net change in unrealized depreciation on investments and
foreign currency		(24,476,457	)		(147,803,282	)
Net increase (decrease) in net assets resulting from operations		(8,934,460	)		42,182,860

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(48,219,809	)		(31,265,366	)
Class B		(1,548,623	)		(1,043,101	)
Class C		(21,021,697	)		(9,340,509	)
Class I		(19,821,414	)		(92,147,031	)
Class Z		(50,943,545	)		(5,749,475	)
Total dividends and distributions to shareholders		(141,555,088	)		(139,545,482	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(24,776,293	)		(54,803,635	)
Class B		(866,833	)		(2,083,473	)
Class C		(414,663	)		952,259
Class I		(17,203,713	)		(574,202,182	)
Class Z		(50,359,541	)		86,558,448
Net decrease from shares of beneficial interest transactions
— Note 6(a)		(93,621,043	)		(543,578,583	)

Redemption Fees:
Class A		—			3,058
Class C		—			78
Total Redemption Fees — Note 6(b)		—			3,136
Total decrease		(244,110,591	)		(640,938,069	)

Net Assets:
Beginning of period		422,723,612			1,063,661,681
END OF PERIOD	$	178,613,021		$	422,723,612
Undistributed net investment income (accumulated loss)	$	(1,451,230	)	$	(2,956,550	)
*See Notes to Financial Statements.*

- 86 -

THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)


		Alger Small Cap Growth Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(1,101,962		$	(1,922,582	)
Net realized gain (loss) on investments and foreign currency		(4,992,003	)		30,403,103
Net change in unrealized depreciation on investments and
foreign currency		(1,014,375	)		(22,120,661	)
Net increase (decrease) in net assets resulting from operations		(7,108,340	)		6,359,860

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(22,341,073	)		(15,277,775	)
Class B		(1,545,156	)		(1,086,069	)
Class C		(3,286,045	)		(2,082,876	)
Class Z		(4,367,677	)		(6,929,069	)
Total dividends and distributions to shareholders		(31,539,951	)		(25,375,789	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(2,961,323	)		(10,653,267	)
Class B		293,755			(1,268,060	)
Class C		(1,013,586	)		(318,934	)
Class Z		5,064,750			(40,040,660	)
Net increase (decrease) from shares of beneficial interest
transactions — Note 6(a)		1,383,596			(52,280,921	)

Redemption Fees:
Class A		—			8,079
Class B		—			3
Total Redemption Fees — Note 6(b)		—			8,082
Total decrease		(37,264,695	)		(71,288,768	)

Net Assets:
Beginning of period		157,884,037			229,172,805
END OF PERIOD	$	120,619,342		$	157,884,037
Undistributed net investment income (accumulated loss)	$	(867,784	)	$	(1,671,771	)
*See Notes to Financial Statements.*

- 87 -

THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)


		Alger Small Cap Focus Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(1,000,896	)	$	(404,317	)
Net realized loss on investments and foreign currency		(4,992,344	)		(1,057,718	)
Net change in unrealized appreciation on investments and
foreign currency		8,560,677			217,460
Net increase (decrease) in net assets resulting from operations		2,567,437			(1,244,575	)

Dividends and distributions to shareholders from:
Net realized gains:
Class A		—			(589,965	)
Class C		—			(236,774	)
Class I		—			(149,175	)
Class Z		—			(277,428	)
Total dividends and distributions to shareholders		—			(1,253,342	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		8,957,748			7,653,562
Class C		7,769,087			5,795,542
Class I		32,766,158			39,972,575
Class Z		50,888,678			14,028,865
Net increase from shares of beneficial interest transactions —
Note 6(a)		100,381,671			67,450,544

Redemption Fees:
Class A		—			53
Class C		—			1
Total Redemption Fees — Note 6(b)		—			54
Total increase		102,949,108			64,952,681

Net Assets:
Beginning of period		80,532,788			15,580,107
END OF PERIOD	$	183,481,896		$	80,532,788
Undistributed net investment income (accumulated loss)	$	(860,396	)	$	(388,941	)
*See Notes to Financial Statements.*

- 88 -

THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)


		Alger Health Sciences Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(1,535,979	)	$	(2,756,239	)
Net realized gain (loss) on investments and foreign currency		(6,988,494	)		34,970,074
Net change in unrealized depreciation on investments and
foreign currency		(14,207,120	)		(29,480,280	)
Net increase (decrease) in net assets resulting from operations		(22,731,593	)		2,733,555

Dividends and distributions to shareholders from:
Net investment income:
Class A		—			(794,186	)
Class C		—			(1,266	)
Net realized gains:
Class A		(17,874,985	)		(27,298,213	)
Class B		(956,709	)		(2,021,660	)
Class C		(9,452,994	)		(13,763,765	)
Class Z		(1,581,486	)		—
Total dividends and distributions to shareholders		(29,866,174	)		(43,879,090	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(21,876,355	)		9,777,177
Class B		(2,296,932	)		(1,600,558	)
Class C		(9,242,011	)		5,708,604
Class Z		1,257,746			6,911,105
Net increase (decrease) from shares of beneficial interest
transactions — Note 6(a)		(32,157,552	)		20,796,328

Redemption Fees:
Class A		—			230
Class C		—			126
Total Redemption Fees — Note 6(b)		—			356
Total decrease		(84,755,319	)		(20,348,851	)

Net Assets:
Beginning of period		188,614,972			208,963,823
END OF PERIOD	$	103,859,653		$	188,614,972
Undistributed net investment income (accumulated loss)	$	(1,200,678	)	$	—
*See Notes to Financial Statements.*

- 89 -

THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)


		Alger Growth & Income Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment income	$	1,665,959		$	1,687,315
Net realized gain (loss) on investments and foreign currency		(174,273	)		3,092,404
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		832,293			(794,071	)
Net increase in net assets resulting from operations		2,323,979			3,985,648

Dividends and distributions to shareholders from:
Net investment income:
Class A		(1,014,431	)		(1,132,813	)
Class C		(182,538	)		(176,746	)
Class Z		(202,816	)		(153,455	)
Net realized gains:
Class A		(2,110,139	)		(2,392,561	)
Class C		(668,401	)		(661,139	)
Class Z		(373,315	)		(276,636	)
Total dividends and distributions to shareholders		(4,551,640	)		(4,793,350	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(5,271,860	)		(2,119,880	)
Class C		36,281			1,294,549
Class Z		2,956,823			359,072
Net decrease from shares of beneficial interest transactions
— Note 6(a)		(2,278,756	)		(466,259	)

Redemption Fees:
Class A		—			667
Class C		—			10
Total Redemption Fees — Note 6(b)		—			677
Total decrease		(4,506,417	)		(1,273,284	)

Net Assets:
Beginning of period		100,841,334			102,114,618
END OF PERIOD	$	96,334,917		$	100,841,334
Undistributed net investment income	$	360,022		$	290,468
*See Notes to Financial Statements.*

- 90 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Capital Appreciation Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	21.83			$	23.13			$	21.18			$	16.59			$	14.64
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			–				(0.04	)			(0.03	)			0.11				0.05
Net realized and unrealized gain (loss)
on investments			(0.07	)			1.97				3.51				4.67				1.90
Total from investment operations			(0.07	)			1.93				3.48				4.78				1.95
Dividends from net investment income			–				–				–				(0.12	)			–
Distributions from net realized gains			(1.67	)			(3.23	)			(1.53	)			(0.07	)			–
Net asset value, end of period		$	20.09			$	21.83			$	23.13			$	21.18			$	16.59
Total return⁽ⁱⁱ⁾			(0.42	)%			9.15	%			17.35	%			29.11	%			13.32	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,360,963			$	1,592,859			$	1,389,005			$	1,217,389			$	952,955
Ratio of gross expenses to average
net assets			1.22	%			1.23	%			1.24	%			1.26	%			1.29	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.22	%			1.23	%			1.24	%			1.26	%			1.29	%
Ratio of net investment income (loss) to
average net assets			(0.02	)%			(0.18	)%			(0.14	)%			0.58	%			0.30	%
Portfolio turnover rate			103.80	%			141.43	%			147.78	%			123.81	%			142.32	%
*See Notes to Financial Statements.*

(i)Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 91 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Capital Appreciation Fund											Class B
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	18.17			$	19.91			$	18.58			$	14.57			$	12.96
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.14	)			(0.17	)			(0.17	)			(0.02	)			(0.07	)
Net realized and unrealized gain (loss)
on investments			(0.04	)			1.66				3.03				4.10				1.68
Total from investment operations			(0.18	)			1.49				2.86				4.08				1.61
Distributions from net realized gains			(1.67	)			(3.23	)			(1.53	)			(0.07	)			–
Net asset value, end of period		$	16.32			$	18.17			$	19.91			$	18.58			$	14.57
Total return⁽ⁱⁱ⁾			(1.18	)%			8.30	%			16.37	%			28.13	%			12.42	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	16,682			$	24,399			$	30,382			$	33,068			$	31,965
Ratio of gross expenses to average
net assets			2.04	%			2.01	%			2.03	%			2.05	%			2.11	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.04	%			2.01	%			2.03	%			2.05	%			2.11	%
Ratio of net investment income (loss) to
average net assets			(0.84	)%			(0.95	)%			(0.93	)%			(0.15	)%			(0.52	)%
Portfolio turnover rate			103.80	%			141.43	%			147.78	%			123.81	%			142.32	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 92 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Capital Appreciation Fund											Class C
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	18.24			$	19.97			$	18.62			$	14.62			$	13.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.13	)			(0.17	)			(0.17	)			(0.03	)			(0.07	)
Net realized and unrealized gain (loss)
on investments			(0.05	)			1.67				3.05				4.12				1.69
Total from investment operations			(0.18	)			1.50				2.88				4.09				1.62
Dividends from net investment income			–				–				–				(0.02	)			–
Distributions from net realized gains			(1.67	)			(3.23	)			(1.53	)			(0.07	)			–
Net asset value, end of period		$	16.39			$	18.24			$	19.97			$	18.62			$	14.62
Total return⁽ⁱⁱ⁾			(1.17	)%			8.33	%			16.44	%			28.14	%			12.46	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	309,114			$	314,402			$	236,985			$	198,377			$	149,400
Ratio of gross expenses to average
net assets			1.98	%			1.99	%			2.00	%			2.02	%			2.07	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.98	%			1.99	%			2.00	%			2.02	%			2.07	%
Ratio of net investment income (loss) to
average net assets			(0.78	)%			(0.94	)%			(0.90	)%			(0.20	)%			(0.47	)%
Portfolio turnover rate			103.80	%			141.43	%			147.78	%			123.81	%			142.32	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 93 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Capital Appreciation Fund											Class Z
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	22.15			$	23.35			$	21.31			$	16.68			$	14.68
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱ⁾			0.06				0.03				0.04				0.11				0.12
Net realized and unrealized gain (loss)
on investments			(0.06	)			2.00				3.53				4.76				1.88
Total from investment operations			–				2.03				3.57				4.87				2.00
Dividends from net investment income			–				–				–				(0.17	)			–
Distributions from net realized gains			(1.67	)			(3.23	)			(1.53	)			(0.07	)			–
Net asset value, end of period		$	20.48			$	22.15			$	23.35			$	21.31			$	16.68
Total return⁽ⁱⁱ⁾			(0.08	)%			9.54	%			17.68	%			29.58	%			13.62	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	735,889			$	620,355			$	286,186			$	183,790			$	37,956
Ratio of gross expenses to average
net assets			0.89	%			0.90	%			0.93	%			0.93	%			1.01	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				(0.04	)%
Ratio of net expenses to average net
assets			0.89	%			0.90	%			0.93	%			0.93	%			0.97	%
Ratio of net investment income (loss) to
average net assets			0.30	%			0.12	%			0.16	%			0.58	%			0.73	%
Portfolio turnover rate			103.80	%			141.43	%			147.78	%			123.81	%			142.32	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 94 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger International Growth Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	15.57			$	15.29			$	15.27			$	12.61			$	11.91
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱ⁾			0.16				0.03				0.04				0.11				0.04
Net realized and unrealized gain (loss)
on investments			(1.14	)			0.40				(0.02	)			2.64				0.66
Total from investment operations			(0.98	)			0.43				0.02				2.75				0.70
Dividends from net investment income			(0.01	)			(0.15	)			–				(0.09	)			–
Net asset value, end of period		$	14.58			$	15.57			$	15.29			$	15.27			$	12.61
Total return⁽ⁱⁱⁱ⁾			(6.32	)%			2.85	%			0.15	%			21.98	%			5.88	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	107,398			$	137,207			$	130,957			$	145,096			$	139,693
Ratio of gross expenses to average
net assets			1.35	%			1.32	%			1.32	%			1.37	%			1.33	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.35	%			1.32	%			1.32	%			1.37	%			1.33	%
Ratio of net investment income (loss) to
average net assets			1.08	%			0.18	%			0.25	%			0.79	%			0.32	%
Portfolio turnover rate			134.84	%			114.81	%			97.50	%			217.57	%			148.66	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 95 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger International Growth Fund											Class B
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	13.71			$	13.44			$	13.51			$	11.18			$	10.64
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			0.05				(0.07	)			(0.06	)			0.02				(0.04	)
Net realized and unrealized gain (loss)
on investments			(1.00	)			0.34				(0.01	)			2.33				0.58
Total from investment operations			(0.95	)			0.27				(0.07	)			2.35				0.54
Dividends from net investment income			–				–⁽ⁱⁱ⁾				–				(0.02	)			–
Net asset value, end of period		$	12.76			$	13.71			$	13.44			$	13.51			$	11.18
Total return⁽ⁱⁱⁱ⁾			(6.86	)%			2.04	%			(0.52	)%			21.07	%			5.08	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	25,033			$	31,357			$	38,520			$	63,826			$	77,408
Ratio of gross expenses to average
net assets			2.06	%			2.04	%			2.02	%			2.04	%			1.97	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.06	%			2.04	%			2.02	%			2.04	%			1.97	%
Ratio of net investment income (loss) to
average net assets			0.37	%			(0.53	)%			(0.47	)%			0.17	%			(0.36	)%
Portfolio turnover rate			134.84	%			114.81	%			97.50	%			217.57	%			148.66	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Amount was less than $0.005 per share.
⁽ⁱⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 96 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger International Growth Fund											Class C
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	13.57			$	13.36			$	13.44			$	11.12			$	10.60
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			0.04				(0.08	)			(0.07	)			–				(0.05	)
Net realized and unrealized gain (loss)
on investments			(0.99	)			0.36				(0.01	)			2.33				0.57
Total from investment operations			(0.95	)			0.28				(0.08	)			2.33				0.52
Dividends from net investment income			(0.18	)			(0.07	)			–				(0.01	)			–
Net asset value, end of period		$	12.44			$	13.57			$	13.36			$	13.44			$	11.12
Total return⁽ⁱⁱ⁾			(7.04	)%			1.99	%			(0.60	)%			20.94	%			4.91	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	15,190			$	21,697			$	20,567			$	17,786			$	17,305
Ratio of gross expenses to average
net assets			2.14	%			2.09	%			2.08	%			2.15	%			2.08	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.14	%			2.09	%			2.08	%			2.15	%			2.08	%
Ratio of net investment income (loss) to
average net assets			0.29	%			(0.60	)%			(0.49	)%			0.03	%			(0.47	)%
Portfolio turnover rate			134.84	%			114.81	%			97.50	%			217.57	%			148.66	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 97 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period

Alger International Growth Fund							Class I
													From 5/31/2013
												(commencement
			Year ended				Year ended			Year ended			of operations) to
		10/31/2016					10/31/2015			10/31/2014			10/31/2013⁽ⁱ⁾
Net asset value, beginning of period		$	15.55			$	15.27		$	15.29		$	13.94
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾			0.21				0.05			0.12			0.03
Net realized and unrealized gain (loss)
on investments			(1.16	)			0.41			(0.07	)		1.32
Total from investment operations			(0.95	)			0.46			0.05			1.35
Dividends from net investment income			(0.05	)			(0.18	)		(0.07	)		–
Net asset value, end of period		$	14.55			$	15.55		$	15.27		$	15.29
Total return⁽ⁱⁱⁱ⁾			(6.12	)%			3.04	%		0.31	%		9.68	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	14,202			$	14,435			$	3,722		$	157
Ratio of gross expenses to average
net assets			1.33	%			1.30	%		1.27	%		15.73	%
Ratio of expense reimbursements to
average net assets			(0.18	)%			(0.15	)%		(0.12	)%		(14.58	)%
Ratio of net expenses to average net
assets			1.15	%			1.15	%		1.15	%		1.15	%
Ratio of net investment income (loss) to
average net assets			1.43	%			0.34	%		0.76	%		0.44	%
Portfolio turnover rate			134.84	%			114.81	%		97.50	%		217.57	%
*See Notes to Financial Statements.*

⁽ⁱ⁾Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
⁽ⁱⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 98 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger International Growth Fund										Class Z
		Year ended				Year ended			Year ended			Year ended				Year ended
		10/31/2016				10/31/2015			10/31/2014			10/31/2013				10/31/2012
Net asset value, beginning of period		$	15.73			$	15.44		$	15.35		$	12.66			$	11.94
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱ⁾			0.23				0.12			0.13			0.33				0.08
Net realized and unrealized gain (loss)
on investments			(1.15	)			0.39			(0.04	)		2.50				0.64
Total from investment operations			(0.92	)			0.51			0.09			2.83				0.72
Dividends from net investment income			(0.07	)			(0.22	)		–			(0.14	)			–
Net asset value, end of period		$	14.74			$	15.73		$	15.44		$	15.35			$	12.66
Total return⁽ⁱⁱ⁾			(5.88	)%			3.27	%		0.59	%		22.56	%			6.03	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	18,477			$	19,326			$	8,573		$	2,277		$	20,217
Ratio of gross expenses to average
net assets			1.04	%			1.03	%		1.04	%		1.12	%			0.96	%
Ratio of expense reimbursements to
average net assets			(0.15	)%			(0.14	)%		(0.15	)%		(0.13	)%			–
Ratio of net expenses to average net
assets			0.89	%			0.89	%		0.89	%		0.99	%			0.96	%
Ratio of net investment income (loss) to
average net assets			1.57	%			0.73	%		0.82	%		2.50	%			0.65	%
Portfolio turnover rate			134.84	%			114.81	%		97.50	%		217.57	%			148.66	%
*See Notes to Financial Statements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 99 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Mid Cap Growth Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	10.66			$	10.54			$	9.38			$	7.05			$	6.51
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.03	)			(0.07	)			(0.04	)			(0.03	)			(0.02	)
Net realized and unrealized gain (loss)
on investments			(0.43	)			0.19				1.20				2.36				0.56
Total from investment operations			(0.46	)			0.12				1.16				2.33				0.54
Net asset value, end of period		$	10.20			$	10.66			$	10.54			$	9.38			$	7.05
Total return⁽ⁱⁱ⁾			(4.32	)%			1.23	%			12.37	%			33.05	%			8.29	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	111,423			$	131,592			$	142,977			$	143,231			$	131,454
Ratio of gross expenses to average
net assets			1.33	%			1.32	%			1.35	%			1.39	%			1.40	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.33	%			1.32	%			1.35	%			1.39	%			1.40	%
Ratio of net investment income (loss) to
average net assets			(0.32	)%			(0.67	)%			(0.38	)%			(0.31	)%			(0.25	)%
Portfolio turnover rate			99.42	%			122.05	%			194.81	%			156.98	%			234.91	%
*See Notes to Financial Statements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 100 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Mid Cap Growth Fund											Class B
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	8.67			$	8.63			$	7.73			$	5.86			$	5.46
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.09	)			(0.12	)			(0.09	)			(0.07	)			(0.05	)
Net realized and unrealized gain (loss)
on investments			(0.35	)			0.16				0.99				1.94				0.45
Total from investment operations			(0.44	)			0.04				0.90				1.87				0.40
Net asset value, end of period		$	8.23			$	8.67			$	8.63			$	7.73			$	5.86
Total return⁽ⁱⁱ⁾			(5.07	)%			0.46	%			11.64	%			31.91	%			7.33	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	19,005			$	26,151			$	33,377			$	50,341			$	45,501
Ratio of gross expenses to average
net assets			2.05	%			2.02	%			2.04	%			2.10	%			2.08	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.05	%			2.02	%			2.04	%			2.10	%			2.08	%
Ratio of net investment income (loss) to
average net assets			(1.05	)%			(1.36	)%			(1.05	)%			(1.02	)%			(0.92	)%
Portfolio turnover rate			99.42	%			122.05	%			194.81	%			156.98	%			234.91	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 101 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Mid Cap Growth Fund											Class C
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	8.58			$	8.56			$	7.68			$	5.82			$	5.43
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.09	)			(0.13	)			(0.10	)			(0.08	)			(0.06	)
Net realized and unrealized gain (loss)
on investments			(0.34	)			0.15				0.98				1.94				0.45
Total from investment operations			(0.43	)			0.02				0.88				1.86				0.39
Net asset value, end of period		$	8.15			$	8.58			$	8.56			$	7.68			$	5.82
Total return⁽ⁱⁱ⁾			(5.01	)%			0.35	%			11.46	%			31.96	%			7.18	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	18,495			$	23,628			$	25,932			$	26,320			$	22,812
Ratio of gross expenses to average
net assets			2.16	%			2.12	%			2.16	%			2.21	%			2.22	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.16	%			2.12	%			2.16	%			2.21	%			2.22	%
Ratio of net investment income (loss) to
average net assets			(1.16	)%			(1.47	)%			(1.19	)%			(1.13	)%			(1.06	)%
Portfolio turnover rate			99.42	%			122.05	%			194.81	%			156.98	%			234.91	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 102 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period

				Class Z
Alger Mid Cap Growth Fund		From 5/28/2015
				(commencement
		Year ended			of operations to
	10/31/2016			10/31/2015 ⁽ⁱ⁾
Net asset value, beginning of period	$	10.67		$	11.70
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱⁱ⁾		0.04			(0.02	)
Net realized and unrealized loss on
investments		(0.47	)		(1.01	)
Total from investment operations		(0.43	)		(1.03	)
Net asset value, end of period	$	10.24		$	10.67
Total return⁽ⁱⁱⁱ⁾		(4.03	)%		(8.80	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	7,508		$	2,413
Ratio of gross expenses to average
net assets		1.23	%		1.76	%
Ratio of expense reimbursements to
average net assets		(0.21	)%		(0.77	)%
Ratio of net expenses to average net
assets		1.02	%		0.99	%
Ratio of net investment income (loss) to
average net assets		0.40	%		(0.49	)%
Portfolio turnover rate		99.42	%		122.05	%
*See Notes to Financial Statements.*

(i) Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.

- 103 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger SMid Cap Growth Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	16.72			$	19.32			$	20.89			$	16.72			$	15.22
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.08	)			(0.12	)			(0.09	)			(0.03	)			(0.09	)
Net realized and unrealized gain (loss)
on investments			(0.04	)			0.09				1.53				4.92				1.59
Total from investment operations			(0.12	)			(0.03	)			1.44				4.89				1.50
Distributions from net realized gains			(5.96	)			(2.57	)			(3.01	)			(0.72	)			–
Net asset value, end of period		$	10.64			$	16.72			$	19.32			$	20.89			$	16.72
Total return⁽ⁱⁱ⁾			(0.92	)%			(0.31	)%			7.68	%			30.39	%			9.86	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	82,618			$	159,061			$	241,510			$	294,846			$	299,934
Ratio of gross expenses to average
net assets			1.35	%			1.30	%			1.27	%			1.29	%			1.29	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.35	%			1.30	%			1.27	%			1.29	%			1.29	%
Ratio of net investment income (loss) to
average net assets			(0.69	)%			(0.65	)%			(0.45	)%			(0.19	)%			(0.54	)%
Portfolio turnover rate			164.36	%			110.40	%			91.59	%			95.67	%			81.09	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 104 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger SMid Cap Growth Fund								Class B
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	14.39		$	17.11		$	18.96		$	15.36		$	14.09
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.15	)		(0.22	)		(0.21	)		(0.16	)		(0.20	)
Net realized and unrealized gain (loss)
on investments		(0.05	)		0.07			1.37			4.48			1.47
Total from investment operations		(0.20	)		(0.15	)		1.16			4.32			1.27
Distributions from net realized gains		(5.96	)		(2.57	)		(3.01	)		(0.72	)		–
Net asset value, end of period	$	8.23		$	14.39		$	17.11		$	18.96		$	15.36
Total return⁽ⁱⁱ⁾		(2.04	)%		(1.16	)%		6.87	%		29.33	%		9.01	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,641		$	4,167		$	7,252		$	9,413		$	9,448
Ratio of gross expenses to average
net assets		2.35	%		2.10	%		2.06	%		2.07	%		2.10	%
Ratio of expense reimbursements to
average net assets		–			–			–			–			–
Ratio of net expenses to average net
assets		2.35	%		2.10	%		2.06	%		2.07	%		2.10	%
Ratio of net investment income (loss) to
average net assets		(1.70	)%		(1.44	)%		(1.24	)%		(0.97	)%		(1.34	)%
Portfolio turnover rate		164.36	%		110.40	%		91.59	%		95.67	%		81.09	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 105 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger SMid Cap Growth Fund											Class C
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	14.45			$	17.16			$	19.00			$	15.39			$	14.12
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.13	)			(0.22	)			(0.21	)			(0.16	)			(0.20	)
Net realized and unrealized gain (loss)
on investments			(0.04	)			0.08				1.38				4.49				1.47
Total from investment operations			(0.17	)			(0.14	)			1.17				4.33				1.27
Distributions from net realized gains			(5.96	)			(2.57	)			(3.01	)			(0.72	)			–
Net asset value, end of period		$	8.32			$	14.45			$	17.16			$	19.00			$	15.39
Total return⁽ⁱⁱ⁾			(1.72	)%			(1.09	)%			6.92	%			29.34	%			9.00	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	32,183			$	54,768			$	63,572			$	68,161			$	59,063
Ratio of gross expenses to average
net assets			2.15	%			2.07	%			2.03	%			2.06	%			2.09	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.15	%			2.07	%			2.03	%			2.06	%			2.09	%
Ratio of net investment income (loss) to
average net assets			(1.49	)%			(1.43	)%			(1.21	)%			(0.96	)%			(1.33	)%
Portfolio turnover rate			164.36	%			110.40	%			91.59	%			95.67	%			81.09	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 106 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger SMid Cap Growth Fund											Class I
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	16.91			$	19.54			$	21.09			$	16.88			$	15.35
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.07	)			(0.11	)			(0.09	)			(0.04	)			(0.08	)
Net realized and unrealized gain (loss)
on investments			(0.04	)			0.05				1.55				4.97				1.61
Total from investment operations			(0.11	)			(0.06	)			1.46				4.93				1.53
Distributions from net realized gains			(5.96	)			(2.57	)			(3.01	)			(0.72	)			–
Net asset value, end of period		$	10.84			$	16.91			$	19.54			$	21.09			$	16.88
Total return⁽ⁱⁱ⁾			(0.79	)%			(0.48	)%			7.70	%			30.34	%			10.00	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	32,606			$	70,677			$	699,237			$	692,445			$	545,397
Ratio of gross expenses to average
net assets			1.25	%			1.31	%			1.27	%			1.31	%			1.23	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.25	%			1.31	%			1.27	%			1.31	%			1.23	%
Ratio of net investment income (loss) to
average net assets			(0.58	)%			(0.62	)%			(0.45	)%			(0.22	)%			(0.45	)%
Portfolio turnover rate			164.36	%			110.40	%			91.59	%			95.67	%			81.09	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 107 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger SMid Cap Growth Fund											Class Z
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	17.08			$	19.63			$	21.11			$	16.84			$	15.28
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.05	)			(0.06	)			(0.02	)			0.02				(0.02	)
Net realized and unrealized gain (loss)
on investments			(0.03	)			0.08				1.55				4.97				1.58
Total from investment operations			(0.08	)			0.02				1.53				4.99				1.56
Distributions from net realized gains			(5.96	)			(2.57	)			(3.01	)			(0.72	)			–
Net asset value, end of period		$	11.04			$	17.08			$	19.63			$	21.11			$	16.84
Total return⁽ⁱⁱ⁾			(0.57	)%			(0.02	)%			8.07	%			30.78	%			10.21	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	29,565			$	134,051			$	52,091			$	67,852			$	54,965
Ratio of gross expenses to average
net assets			1.01	%			0.99	%			0.95	%			0.96	%			0.97	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.01	%			0.99	%			0.95	%			0.96	%			0.97	%
Ratio of net investment income (loss) to
average net assets			(0.40	)%			(0.33	)%			(0.13	)%			0.13	%			(0.14	)%
Portfolio turnover rate			164.36	%			110.40	%			91.59	%			95.67	%			81.09	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 108 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Growth Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	8.00			$	8.96			$	9.97			$	7.79			$	7.12
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.05	)			(0.08	)			(0.07	)			(0.04	)			(0.05	)
Net realized and unrealized gain (loss)
on investments			(0.21	)			0.11				0.19				2.53				0.72
Total from investment operations			(0.26	)			0.03				0.12				2.49				0.67
Distributions from net realized gains			(1.59	)			(0.99	)			(1.13	)			(0.31	)			–
Net asset value, end of period		$	6.15			$	8.00			$	8.96			$	9.97			$	7.79
Total return⁽ⁱⁱ⁾			(3.92	)%			0.16	%			1.30	%			33.15	%			9.41	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	85,556			$	115,594			$	139,497			$	175,214			$	172,202
Ratio of gross expenses to average
net assets			1.38	%			1.35	%			1.35	%			1.38	%			1.40	%
Ratio of expense reimbursements to
average net assets			–				–				–				(0.02	)%			–
Ratio of net expenses to average net
assets			1.38	%			1.35	%			1.35	%			1.36	%			1.40	%
Ratio of net investment income (loss) to
average net assets			(0.79	)%			(0.92	)%			(0.81	)%			(0.49	)%			(0.71	)%
Portfolio turnover rate			55.25	%			131.72	%			88.98	%			93.97	%			72.59	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 109 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Growth Fund								Class B
	Year ended			Year ended			Year ended				Year ended				Year ended
	10/31/2016			10/31/2015			10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period	$	6.57		$	7.59		$	8.67			$	6.86			$	6.27
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.08	)		(0.12	)		(0.12	)			(0.09	)			(0.10	)
Net realized and unrealized gain (loss)
on investments		(0.17	)		0.09			0.17				2.21				0.69
Total from investment operations		(0.25	)		(0.03	)		0.05				2.12				0.59
Distributions from net realized gains		(1.59	)		(0.99	)		(1.13	)			(0.31	)			–
Net asset value, end of period	$	4.73		$	6.57		$	7.59			$	8.67			$	6.86
Total return⁽ⁱⁱ⁾		(4.80	)%		(0.55	)%		0.61	%			32.21	%			9.41	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	4,998		$	6,564		$	8,874		$	13,626			$	13,389
Ratio of gross expenses to average
net assets		2.18	%		2.16	%		2.11	%			2.13	%			2.16	%
Ratio of expense reimbursements to
average net assets		–			–			–				(0.02	)%			–
Ratio of net expenses to average net
assets		2.18	%		2.16	%		2.11	%			2.11	%			2.16	%
Ratio of net investment income (loss) to
average net assets		(1.59	)%		(1.73	)%		(1.56	)%			(1.24	)%			(1.47	)%
Portfolio turnover rate		55.25	%		131.72	%		88.98	%			93.97	%			72.59	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 110 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Growth Fund										Class C
	Year ended				Year ended				Year ended				Year ended				Year ended
	10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period	$	6.42			$	7.44			$	8.52			$	6.76			$	6.27
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.08	)			(0.12	)			(0.12	)			(0.10	)			(0.10	)
Net realized and unrealized gain (loss)
on investments		(0.16	)			0.09				0.17				2.17				0.59
Total from investment operations		(0.24	)			(0.03	)			0.05				2.07				0.49
Distributions from net realized gains		(1.59	)			(0.99	)			(1.13	)			(0.31	)			–
Net asset value, end of period	$	4.59			$	6.42			$	7.44			$	8.52			$	6.76
Total return⁽ⁱⁱ⁾		(4.79	)%			(0.70	)%			0.61	%			31.94	%			7.81	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	8,708		$	13,724			$	16,119			$	19,461			$	17,091
Ratio of gross expenses to average
net assets		2.22	%			2.16	%			2.15	%			2.18	%			2.19	%
Ratio of expense reimbursements to
average net assets		–				–				–				(0.02	)%			–
Ratio of net expenses to average net
assets		2.22	%			2.16	%			2.15	%			2.16	%			2.19	%
Ratio of net investment income (loss) to
average net assets		(1.64	)%			(1.73	)%			(1.61	)%			(1.31	)%			(1.50	)%
Portfolio turnover rate		55.25	%			131.72	%			88.98	%			93.97	%			72.59	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 111 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Growth Fund											Class Z
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	8.10			$	9.04			$	10.01			$	7.79			$	7.14
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.03	)			(0.05	)			(0.04	)			(0.02	)			(0.02	)
Net realized and unrealized gain (loss)
on investments			(0.21	)			0.10				0.20				2.55				0.67
Total from investment operations			(0.24	)			0.05				0.16				2.53				0.65
Distributions from net realized gains			(1.59	)			(0.99	)			(1.13	)			(0.31	)			–
Net asset value, end of period		$	6.27			$	8.10			$	9.04			$	10.01			$	7.79
Total return⁽ⁱⁱ⁾			(3.55	)%			0.52	%			1.73	%			33.67	%			9.10	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	21,357			$	22,002			$	64,684			$	79,723			$	29,264
Ratio of gross expenses to average
net assets			1.06	%			1.04	%			1.03	%			1.05	%			1.04	%
Ratio of expense reimbursements to
average net assets			(0.07	)%			(0.05	)%			(0.04	)%			(0.06	)%			(0.05	)%
Ratio of net expenses to average net
assets			0.99	%			0.99	%			0.99	%			0.99	%			0.99	%
Ratio of net investment income (loss) to
average net assets			(0.41	)%			(0.55	)%			(0.45	)%			(0.18	)%			(0.28	)%
Portfolio turnover rate			55.25	%			131.72	%			88.98	%			93.97	%			72.59	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 112 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Focus Fund										Class A
		Year ended				Year ended			Year ended			Year ended			Year ended
		10/31/2016				10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period		$	10.95			$	11.52		$	12.98		$	10.88		$	10.82
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.09	)			(0.14	)		(0.11	)		(0.08	)		(0.09	)
Net realized and unrealized gain on
investments			0.30				0.55			0.60			3.55			1.03
Total from investment operations			0.21				0.41			0.49			3.47			0.94
Distributions from net realized gains			–				(0.98	)		(1.95	)		(1.37	)		(0.88	)
Net asset value, end of period		$	11.16			$	10.95		$	11.52		$	12.98		$	10.88
Total return⁽ⁱⁱ⁾			1.92	%			3.78	%		4.23	%		36.03	%		9.60	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	23,653			$	14,480			$	7,241		$	7,563		$	6,464
Ratio of gross expenses to average
net assets			1.36	%			1.82	%		2.22	%		2.45	%		2.60	%
Ratio of expense reimbursements to
average net assets			(0.11	)%			(0.22	)%		(0.62	)%		(0.85	)%		(1.04	)%
Ratio of net expenses to average net
assets			1.25	%			1.60	%		1.60	%		1.60	%		1.56	%
Ratio of net investment income (loss) to
average net assets			(0.84	)%			(1.24	)%		(0.95	)%		(0.69	)%		(0.86	)%
Portfolio turnover rate			75.50	%			162.44	%		91.91	%		92.82	%		63.81	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 113 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Focus Fund									Class C
		Year ended			Year ended			Year ended			Year ended			Year ended
		10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period		$	10.12		$	10.79		$	12.34		$	10.48		$	10.52
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.15	)		(0.20	)		(0.17	)		(0.15	)		(0.16	)
Net realized and unrealized gain on
investments			0.28			0.51			0.57			3.38			1.00
Total from investment operations			0.13			0.31			0.40			3.23			0.84
Distributions from net realized gains			–			(0.98	)		(1.95	)		(1.37	)		(0.88	)
Net asset value, end of period		$	10.25		$	10.12		$	10.79		$	12.34		$	10.48
Total return⁽ⁱⁱ⁾			1.28	%		3.06	%		3.65	%		35.00	%		8.90	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	15,928			$	8,020		$	2,612		$	2,636		$	1,956
Ratio of gross expenses to average
net assets			2.12	%		2.53	%		2.99	%		3.23	%		3.33	%
Ratio of expense reimbursements to
average net assets			(0.13	)%		(0.28	)%		(0.74	)%		(0.98	)%		(1.08	)%
Ratio of net expenses to average net
assets			1.99	%		2.25	%		2.25	%		2.25	%		2.25	%
Ratio of net investment income (loss) to
average net assets			(1.57	)%		(1.91	)%		(1.60	)%		(1.34	)%		(1.54	)%
Portfolio turnover rate			75.50	%		162.44	%		91.91	%		92.82	%		63.81	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 114 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Focus Fund										Class I
		Year ended				Year ended			Year ended			Year ended			Year ended
		10/31/2016				10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period		$	11.22			$	11.75		$	13.17		$	11.00		$	10.90
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.09	)			(0.12	)		(0.08	)		(0.05	)		(0.07	)
Net realized and unrealized gain on
investments			0.31				0.57			0.61			3.59			1.05
Total from investment operations			0.22				0.45			0.53			3.54			0.98
Distributions from net realized gains			–				(0.98	)		(1.95	)		(1.37	)		(0.88	)
Net asset value, end of period		$	11.44			$	11.22		$	11.75		$	13.17		$	11.00
Total return⁽ⁱⁱ⁾			1.96	%			4.07	%		4.50	%		36.31	%		9.90	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	75,648			$	40,924			$	2,359		$	2,034		$	1,349
Ratio of gross expenses to average
net assets			1.32	%			1.56	%		2.19	%		2.43	%		3.20	%
Ratio of expense reimbursements to
average net assets			(0.09	)%			(0.21	)%		(0.84	)%		(1.08	)%		(1.89	)%
Ratio of net expenses to average net
assets			1.23	%			1.35	%		1.35	%		1.35	%		1.31	%
Ratio of net investment income (loss) to
average net assets			(0.81	)%			(1.07	)%		(0.70	)%		(0.46	)%		(0.62	)%
Portfolio turnover rate			75.50	%			162.44	%		91.91	%		92.82	%		63.81	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 115 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Small Cap Focus Fund										Class Z
		Year ended				Year ended			Year ended			Year ended			Year ended
		10/31/2016				10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period		$	11.28			$	11.77		$	13.16		$	10.97		$	10.85
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.07	)			(0.08	)		(0.05	)		(0.02	)		(0.04	)
Net realized and unrealized gain on
investments			0.32				0.57			0.61			3.58			1.04
Total from investment operations			0.25				0.49			0.56			3.56			1.00
Distributions from net realized gains			–				(0.98	)		(1.95	)		(1.37	)		(0.88	)
Net asset value, end of period		$	11.53			$	11.28		$	11.77		$	13.16		$	10.97
Total return⁽ⁱⁱ⁾			2.22	%			4.43	%		4.78	%		36.61	%		10.15	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	68,253			$	17,109			$	3,368		$	3,202		$	2,426
Ratio of gross expenses to average
net assets			1.01	%			1.56	%		2.11	%		2.38	%		2.69	%
Ratio of expense reimbursements to
average net assets			–				(0.55	)%		(1.01	)%		(1.28	)%		(1.59	)%
Ratio of net expenses to average net
assets			1.01	%			1.01	%		1.10	%		1.10	%		1.10	%
Ratio of net investment income (loss) to
average net assets			(0.58	)%			(0.68	)%		(0.45	)%		(0.20	)%		(0.38	)%
Portfolio turnover rate			75.50	%			162.44	%		91.91	%		92.82	%		63.81	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 116 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Health Sciences Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	21.94			$	26.96			$	25.35			$	21.75			$	19.34
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.15	)			(0.25	)			(0.14	)			(0.05	)			0.02
Net realized and unrealized gain (loss)
on investments			(2.39	)			0.82				5.89				6.11				2.39
Total from investment operations			(2.54	)			0.57				5.75				6.06				2.41
Dividends from net investment income			–				(0.16	)			–				(0.01	)			–
Distributions from net realized gains			(3.39	)			(5.43	)			(4.14	)			(2.45	)			–
Net asset value, end of period		$	16.01			$	21.94			$	26.96			$	25.35			$	21.75
Total return⁽ⁱⁱ⁾			(14.06	)%			1.72	%			26.29	%			30.81	%			12.46	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	68,686			$	122,814			$	139,306			$	129,870			$	120,490
Ratio of gross expenses to average
net assets			1.41	%			1.31	%			1.31	%			1.35	%			1.37	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.41	%			1.31	%			1.31	%			1.35	%			1.37	%
Ratio of net investment income (loss) to
average net assets			(0.87	)%			(1.05	)%			(0.59	)%			(0.21	)%			0.11	%
Portfolio turnover rate			93.49	%			133.92	%			167.94	%			115.08	%			110.37	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 117 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Health Sciences Fund								Class B
	Year ended			Year ended			Year ended				Year ended				Year ended
	10/31/2016			10/31/2015			10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period	$	18.46		$	23.53		$	22.78			$	19.91			$	17.85
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.25	)		(0.38	)		(0.29	)			(0.20	)			(0.13	)
Net realized and unrealized gain (loss)
on investments		(1.91	)		0.74			5.18				5.52				2.19
Total from investment operations		(2.16	)		0.36			4.89				5.32				2.06
Distributions from net realized gains		(3.39	)		(5.43	)		(4.14	)			(2.45	)			–
Net asset value, end of period	$	12.91		$	18.46		$	23.53			$	22.78			$	19.91
Total return⁽ⁱⁱ⁾		(14.76	)%		0.95	%		25.33	%			29.82	%			11.54	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,952		$	5,797		$	9,030		$	11,767			$	11,879
Ratio of gross expenses to average
net assets		2.29	%		2.09	%		2.10	%			2.12	%			2.16	%
Ratio of expense reimbursements to
average net assets		–			–			–				–				–
Ratio of net expenses to average net
assets		2.29	%		2.09	%		2.10	%			2.12	%			2.16	%
Ratio of net investment income (loss) to
average net assets		(1.76	)%		(1.83	)%		(1.37	)%			(0.99	)%			(0.68	)%
Portfolio turnover rate		93.49	%		133.92	%		167.94	%			115.08	%			110.37	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

- 118 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Health Sciences Fund											Class C
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	18.53			$	23.60			$	22.83			$	19.95			$	17.88
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.24	)			(0.37	)			(0.29	)			(0.20	)			(0.13	)
Net realized and unrealized gain (loss)
on investments			(1.92	)			0.73				5.20				5.53				2.20
Total from investment operations			(2.16	)			0.36				4.91				5.33				2.07
Dividends from net investment income			–				–⁽ⁱⁱ⁾				–				–				–
Distributions from net realized gains			(3.39	)			(5.43	)			(4.14	)			(2.45	)			–
Net asset value, end of period		$	12.98			$	18.53			$	23.60			$	22.83			$	19.95
Total return⁽ⁱⁱⁱ⁾			(14.70	)%			0.95	%			25.37	%			29.81	%			11.58	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	28,242			$	53,487			$	60,628			$	56,717			$	50,049
Ratio of gross expenses to average
net assets			2.18	%			2.08	%			2.06	%			2.10	%			2.14	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.18	%			2.08	%			2.06	%			2.10	%			2.14	%
Ratio of net investment income (loss) to
average net assets			(1.65	)%			(1.81	)%			(1.34	)%			(0.98	)%			(0.67	)%
Portfolio turnover rate			93.49	%			133.92	%			167.94	%			115.08	%			110.37	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Amount was less than $0.005 per share.
(iii) Does not reflect the effect of sales charges, if applicable.
- 119 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period

Alger Health Sciences Fund						Class Z
			From 5/28/2015
					(commencement
Year ended								of operations) to
		10/31/2016			10/31/2015 ⁽ⁱ⁾
Net asset value, beginning of period	$		21.76		$			25.03
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱⁱ⁾			(0.08	)				(0.05	)
Net realized and unrealized loss on
investments			(2.37	)				(3.22	)
Total from investment operations			(2.45	)				(3.27	)
Distributions from net realized gains			(3.39	)				–
Net asset value, end of period	$		15.92		$			21.76
Total return⁽ⁱⁱⁱ⁾			(13.63	)%				(13.06	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$		4,980				$	6,517
Ratio of gross expenses to average
net assets			1.16	%				1.36	%
Ratio of expense reimbursements to
average net assets			(0.17	)%				(0.28	)%
Ratio of net expenses to average net
assets			0.99	%				1.08	%
Ratio of net investment income (loss) to
average net assets			(0.45	)%				(0.47	)%
Portfolio turnover rate			93.49	%				133.92	%
*See Notes to Financial Statements.*

- 120 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Growth & Income Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	33.37			$	33.56			$	29.63			$	24.43			$	21.74
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱ⁾			0.59				0.59				0.63				0.56				0.44
Net realized and unrealized gain on
investments			0.24				0.81				3.92				5.11				2.60
Total from investment operations			0.83				1.40				4.55				5.67				3.04
Dividends from net investment income			(0.50	)			(0.51	)			(0.62	)			(0.47	)			(0.35	)
Distributions from net realized gains			(1.04	)			(1.08	)			–				–				–
Net asset value, end of period		$	32.66			$	33.37			$	33.56			$	29.63			$	24.43
Total return⁽ⁱⁱ⁾			2.62	%			4.26	%			15.53	%			23.45	%			14.02	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	64,123			$	70,933			$	73,674			$	80,832			$	73,050
Ratio of gross expenses to average
net assets			1.14	%			1.15	%			1.18	%			1.19	%			1.25	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.14	%			1.15	%			1.18	%			1.19	%			1.25	%
Ratio of net investment income (loss) to
average net assets			1.85	%			1.76	%			2.00	%			2.07	%			1.87	%
Portfolio turnover rate			5.36	%			15.83	%			21.20	%			29.27	%			45.36	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
- 121 -

THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period


Alger Growth & Income Fund											Class C
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	32.95			$	33.18			$	29.33			$	24.22			$	21.54
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱ⁾			0.35				0.33				0.38				0.34				0.26
Net realized and unrealized gain on
investments			0.24				0.80				3.89				5.08				2.58
Total from investment operations			0.59				1.13				4.27				5.42				2.84
Dividends from net investment income			(0.27	)			(0.28	)			(0.42	)			(0.31	)			(0.16	)
Distributions from net realized gains			(1.04	)			(1.08	)			–				–				–
Net asset value, end of period		$	32.23			$	32.95			$	33.18			$	29.33			$	24.22
Total return⁽ⁱⁱ⁾			1.87	%			3.47	%			14.65	%			22.53	%			13.20	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	20,790			$	21,156			$	19,999			$	17,173			$	13,121
Ratio of gross expenses to average
net assets			1.88	%			1.90	%			1.93	%			1.96	%			2.01	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.88	%			1.90	%			1.93	%			1.96	%			2.01	%
Ratio of net investment income (loss) to
average net assets			1.09	%			0.99	%			1.22	%			1.27	%			1.11	%
Portfolio turnover rate			5.36	%			15.83	%			21.20	%			29.27	%			45.36	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.

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THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period

Alger Growth & Income Fund									Class Z
															From 3/1/2012
														(commencement
			Year ended			Year ended			Year ended			Year ended		of operations) to
		10/31/2016				10/31/2015			10/31/2014			10/31/2013			10/31/2012⁽ⁱ⁾
Net asset value, beginning of period		$	33.39		$	33.57		$	29.64		$	24.43		$	23.83
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾			0.67			0.66			0.63			0.59			0.34
Net realized and unrealized gain on
investments			0.26			0.82			4.00			5.14			0.59
Total from investment operations			0.93			1.48			4.63			5.73			0.93
Dividends from net investment income			(0.59	)		(0.58	)		(0.70	)		(0.52	)		(0.33	)
Distributions from net realized gains			(1.04	)		(1.08	)		–			–			–
Net asset value, end of period		$	32.69		$	33.39		$	33.57		$	29.64		$	24.43
Total return⁽ⁱⁱⁱ⁾			2.91	%		4.53	%		15.78	%		23.74	%		3.90	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	11,422			$	8,752		$	8,441		$	2,306		$	1,087
Ratio of gross expenses to average
net assets			0.87	%		0.91	%		1.05	%		1.36	%		2.92	%
Ratio of expense reimbursements to
average net assets			–			–			(0.10	)%		(0.41	)%		(1.97	)%
Ratio of net expenses to average net
assets			0.87	%		0.91	%		0.95	%		0.95	%		0.95	%
Ratio of net investment income (loss) to
average net assets			2.09	%		1.99	%		1.98	%		2.18	%		2.14	%
Portfolio turnover rate			5.36	%		15.83	%		21.20	%		29.27	%		45.36	%
*See Notes to Financial Statements.*

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS

NOTE 1 — General:

The Alger Funds (the “Trust”) is a diversified, open-end registered investment company
organized as a business trust under the laws of the Commonwealth of Massachusetts. The
Trust qualifies as an investment company as defined in the Financial Accounting Standards
Board Accounting Standards Codification 946-Financial Services – Investment Companies.
The Trust operates as a series company currently offering an unlimited number of shares
of beneficial interest in eight funds — Alger Capital Appreciation Fund, Alger International
Growth Fund, Alger Mid Cap Growth Fund, Alger SMid Cap Growth Fund, Alger Small
Cap Growth Fund, Alger Small Cap Focus Fund, Alger Health Sciences Fund and Alger
Growth & Income Fund (collectively, the “Funds” or individually, each a “Fund”). The
Alger Capital Appreciation Fund, Alger International Growth Fund, Alger Mid Cap Growth
Fund, Alger SMid Cap Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap
Focus Fund and Alger Health Sciences Fund normally invest primarily in equity securities
and each has an investment objective of long-term capital appreciation. The Alger Growth
& Income Fund also normally invests primarily in equity securities but has an investment
objective of both capital appreciation and current income.

Each Fund offers one or more of the following share classes: Class A, B, C, I and Z. Class A
shares are generally subject to an initial sales charge while Class B and C shares are generally
subject to a deferred sales charge. Class B shares will automatically convert to Class A
shares eight years after the end of the calendar month in which the order to purchase was
accepted. The conversion is completed without the imposition of any sales charges or other
fees. Class I and Z shares are sold to institutional investors without an initial or deferred
sales charge. Each class has identical rights to assets and earnings, except that each share
class bears the pro rata allocation of the Fund’s expense other than a Class Expense (not
including advisory or custodial fees or other expenses related to the management of the
Fund’s assets) to a share class.

NOTE 2 — Significant Accounting Policies:
(a) Investment Valuation: The Funds value their financial instruments at fair value using
independent dealers or pricing services under policies approved by the Trust’s Board of
Trustees (“Board”). Investments are valued on each day the New York Stock Exchange (the
“NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern Standard Time).
Equity securities and option contracts for which valuation information is readily available are
valued at the last quoted sales price or official closing price as reported by an independent
pricing service on the primary market or exchange on which they are traded. In the absence
of quoted sales, such securities are valued at the bid price or, in the absence of a recent
bid price, the equivalent as obtained from one or more of the major market makers for the
securities to be valued.

The industry classifications of the Funds’ investments, as presented in the accompanying
Schedules of Investments, represent management’s belief as to the most meaningful
presentation of the classification of such investments. For Fund compliance purposes, the
Funds’ industry classifications refer to any one or more of the industry sub-classifications

- 124 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

used by one or more widely recognized market indexes or rating group indexes, with the
primary source being Global Industry Classification Standard (GICS).

Debt securities generally trade in the over-the-counter market. Debt securities with
remaining maturities of more than sixty days at the time of acquisition are valued on
the basis of last available bid prices or current market quotations provided by dealers
or pricing services. In determining the value of a particular investment, pricing services
may use certain information with respect to transactions in such investments, quotations
from dealers, pricing matrixes, market transactions in comparable investments, various
relationships observed in the market between investments and calculated yield measures
based on valuation technology commonly employed in the market for such investments.
Asset-backed and mortgage-backed securities are valued by independent pricing services
using models that consider estimated cash flows of each tranche of the security, establish a
benchmark yield and develop an estimated tranche-specific spread to the benchmark yield
based on the unique attributes of the tranche. Debt securities with a remaining maturity of
sixty days or less are valued at amortized cost which approximates market value.

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.

Securities in which the Funds invest may be traded in foreign markets that close before the
close of the NYSE. Developments that occur between the close of the foreign markets
and the close of the NYSE may result in adjustments to the closing foreign prices to reflect
what the investment manager, pursuant to policies established by the Board, believes to be
the fair value of these securities as of the close of the NYSE. The Funds may also fair value
securities in other situations, for example, when a particular foreign market is closed but the
Funds are open.

Financial Accounting Standards Board Accounting Standards Codification 820 – Fair Value
Measurements and Disclosures (“ASC 820”) defines fair value as the price that the Funds
would receive upon selling an investment in a timely transaction to an independent buyer
in the principal or most advantageous market of the investment. ASC 820 established a
three-tier hierarchy to maximize the use of observable market data and minimize the use of
unobservable inputs and to establish classification of fair value measurements for disclosure
purposes. Inputs refer broadly to the assumptions that market participants would use in
pricing the asset or liability and may be observable or unobservable. Observable inputs
are based on market data obtained from sources independent of the Funds. Unobservable
inputs are inputs that reflect the Funds’ own assumptions based on the best information
available in the circumstances. The three-tier hierarchy of inputs is summarized in the three
broad Levels listed below.

• Level 1 – quoted prices in active markets for identical investments
• Level 2 – significant other observable inputs (including quoted prices for similar
investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Funds’ own assumptions in
determining the fair value of investments)

- 125 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

The Funds’ valuation techniques are generally consistent with either the market or the
income approach to fair value. The market approach considers prices and other relevant
information generated by market transactions involving identical or comparable assets
to measure fair value. The income approach converts future amounts to a current, or
discounted, single amount. These fair value measurements are determined on the basis
of the value indicated by current market expectations about such future events. Inputs
for Level 1 include exchange-listed prices and broker quotes in an active market. Inputs
for Level 2 include the last trade price in the case of a halted security, an exchange-listed
price which has been adjusted for fair value factors, and prices of closely related securities.
Additional Level 2 inputs include an evaluated price which is based upon a compilation of
observable market information such as spreads for fixed income and preferred securities.
Inputs for Level 3 include revenue multiples, earnings before interest, taxes, depreciation
and amortization (“EBITDA”) multiples, discount rates, time to exit and the probabilities
of success of certain outcomes. Such unobservable market information may be obtained
from a company’s financial statements and from industry studies, market data, and market
indicators such as benchmarks and indices. Because of the inherent uncertainty and often
limited markets for restricted securities, the values may significantly differ from the values
if there was an active market.

Valuation processes are determined by a Valuation Committee (“Committee”) established
by the Board and comprised of representatives of the Trust’s investment adviser. The
Committee reports its fair valuation determinations to the Board which is responsible for
approving valuation policy and procedures.

While the Committee meets on an as-needed basis, the Committee generally meets
quarterly to review and evaluate the effectiveness of the procedures for making fair value
determinations. The Committee considers, among other things, the results of quarterly
back testing of the fair value model for foreign securities, pricing comparisons between
primary and secondary price sources, the outcome of price challenges put to the Funds’
pricing vendor, and variances between transactional prices and previous mark-to-markets.

The Funds will record a change to a security’s fair value level if new inputs are available
or it becomes evident that inputs previously considered for leveling have changed or are
no longer relevant. Transfers between Levels 1, 2 and 3 are recognized at the end of the
reporting period.

(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars, foreign cash,
overnight time deposits and money market funds.
(c) 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
identified cost basis. Dividend income is recognized on the ex-dividend date and interest
income is recognized on the accrual basis.
Premiums and discounts on debt securities purchased are amortized or accreted over the
lives of the respective securities.

- 126 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

(d) Foreign Currency Translations: The books and records of the Funds are maintained in U.S.
dollars. Foreign currencies, investments and other assets and liabilities are translated into
U.S. dollars at the prevailing rates of exchange on the valuation date. Purchases and sales
of investment securities and income and expenses are translated into U.S. dollars at the
prevailing exchange rates on the respective dates of such transactions.
Net realized gains and losses on foreign currency transactions represent net gains and losses
from the disposition of foreign currencies, currency gains and losses realized between the
trade dates and settlement dates of security transactions, and the difference between the
amount of net investment income accrued and the U.S. dollar amount actually received.
The effects of changes in foreign currency exchange rates on investments in securities
are included in realized and unrealized gain or loss on investments in the accompanying
Statements of Operations.

(e) Option Contracts: When a Fund writes an option, an amount equal to the premium received
by the Fund is recorded as a liability and is subsequently adjusted to the current fair value
of the option written. Premiums received from writing options that expire unexercised are
treated by the Fund on the expiration date as realized gains from investments. The difference
between the premium and the amount paid on effecting a closing purchase transaction,
including brokerage commissions, is also treated as a realized gain, or, if the premium is less
than the amount paid for the closing purchase transaction, as a realized loss. If a call option
is exercised, the premium is added to the proceeds from the sale of the underlying security
in determining whether the Fund has realized a gain or loss. If a put option is exercised, the
premium reduces the cost basis of the securities purchased by the Fund. The Fund as writer
of an option bears the market risk of an unfavorable change in the price of the security
underlying the written option.
The Funds may also purchase put and call options. Each Fund pays a premium which is
included in the Fund’s accompanying Statement of Assets and Liabilities as an investment
and subsequently marked to market to reflect the current value of the option. Premiums
paid for purchasing options which expire are treated as realized losses. The risk associated
with purchasing put and call options is limited to the premium paid. Premiums paid for
purchasing options which are exercised or closed are added to the amounts paid or offset
against the proceeds on the underlying security to determine the realized gain or loss.

(f) Lending of Fund Securities: The Funds may lend their securities to financial institutions,
provided that the market value of the securities loaned will not at any time exceed one
third of a Fund’s total assets, as defined in its prospectuses. The Funds earn fees on the
securities loaned, which are included in interest income in the accompanying Statements
of Operations. In order to protect against the risk of failure by the borrower to return the
securities loaned or any delay in the delivery of such securities, the loan is collateralized by
cash or securities that are maintained with the Custodian in an amount equal to at least 102
percent of the current market value of U.S. loaned securities or 105 percent for non-U.S.
loaned securities. The market value of the loaned securities is determined at the close of
business of the Funds. Any required additional collateral is delivered to the Custodian and
any excess collateral is returned to the borrower on the next business day. In the event the

- 127 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

borrower fails to return the loaned securities when due, the Funds may take the collateral
to replace the securities. If the value of the collateral is less than the purchase cost of
replacement securities, the Custodian shall be responsible for any shortfall, but only to
the extent that the shortfall is not due to any diminution in collateral value, as defined in
the securities lending agreement. The Funds are required to maintain the collateral in a
segregated account and determine its value each day until the loaned securities are returned.
Cash collateral may be invested as determined by the Funds. Collateral is returned to the
borrower upon settlement of the loan.
(g) Dividends to Shareholders: Dividends payable to shareholders are recorded on the ex-
dividend date. The Funds declare and pay dividends from net investment income annually
except that the Alger Growth & Income Fund declares and pays such dividends quarterly.
With respect to all Funds, dividends from net realized gains, offset by any loss carryforward,
are declared and paid annually after the end of the fiscal year in which earned.
Each class is treated separately in determining the amounts of dividends from net investment
income payable to holders of its shares.

The characterization of distributions to shareholders for financial reporting purposes is
determined in accordance with federal income tax rules. Therefore, the source of a Fund’s
distributions may be shown in the accompanying financial statements as either from, or in
excess of, net investment income, net realized gain on investment transactions, or return of
capital, depending on the type of book/tax differences that may exist. Capital accounts within
the financial statements are adjusted for permanent book/tax differences. Reclassifications
result primarily from the differences in tax treatment of net operating losses, foreign
currency transactions and premium/discount of debt securities. The reclassifications are
done annually at fiscal year end and have no impact on the net asset values of the Funds and
are designed to present each Fund’s capital accounts on a tax basis.

(h) Federal Income Taxes: It is each Fund’s policy to comply with the requirements of the
Internal Revenue Code Subchapter M applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Provided the Funds maintain such
compliance, no federal income tax provision is required. Each Fund is treated as a separate
entity for the purpose of determining such compliance.
Financial Accounting Standards Board Accounting Standards Codification 740 – Income
Taxes (“ASC 740”) requires the Funds to measure and recognize in their financial statements
the benefit of a tax position taken (or expected to be taken) on an income tax return
if such position will more likely than not be sustained upon examination based on the
technical merits of the position. No tax years are currently under investigation. The Funds
file income tax returns in the U.S., as well as New York State and New York City. The
statute of limitations on the Funds’ tax returns remains open for the tax years 2013-2016.
Management does not believe there are any uncertain tax positions that require recognition
of a tax liability.

(i) Allocation Methods: The Trust accounts separately for the assets, liabilities and operations
of each Fund. Expenses directly attributable to each Fund are charged to that Fund’s

- 128 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

operations; expenses which are applicable to all Funds are allocated among them based on
net assets. Income, realized and unrealized gains and losses, and expenses of each Fund
are allocated among the Fund’s classes based on relative net assets, with the exception of
distribution fees, transfer agency fees, and shareholder servicing and related fees.
(j) Estimates: These financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America, which require using estimates
and assumptions that affect the reported amounts therein. Actual results may differ from
those estimates. All such estimates are of normal recurring nature.
NOTE 3 — Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory Fees: Fees incurred by each Fund, pursuant to the provisions of
the Trust’s Investment Advisory Agreement with Fred Alger Management, Inc. (“Alger
Management” or the “Manager”), are payable monthly and computed based on the following
rates. The actual rate paid as a percentage of average daily net assets, for the year ended
October 31, 2016, is set forth below under the heading “Actual Rate.”


	Tier 1		Tier 2		Tier 3		Tier 4		Tier 5		Actual Rate
Alger Capital
Appreciation
Fund^(a)	0.810	%	0.650	%	0.600	%	0.550	%	0.450	%	0.779	%
Alger International
Growth Fund^(b)	0.710		0.600		—		—		—		0.710
Alger Mid Cap
Growth Fund^(b)	0.760		0.700		—		—		—		0.760
Alger SMid Cap
Growth Fund^(b)	0.810		0.750		—		—		—		0.810
Alger Small Cap
Growth Fund^(b)	0.810		0.750		—		—		—		0.810
Alger Small Cap
Focus Fund^(d)	0.750		—		—		—		—		0.750
Alger Health
Sciences Fund^(c)	0.810		0.650		—		—		—		0.810
Alger Growth &
Income Fund^(b)	0.585		0.550		—		—		—		0.585

(a) Tier 1 rate is paid on assets up to $2 billion, Tier 2 rate is paid on assets between $2 and
$3 billion, Tier 3 rate is paid on assets between $3 and $4 billion, Tier 4 rate is paid on assets
between $4 and $5 billion, and Tier 5 rate is paid on assets in excess of $5 billion.

(b) Tier 1 rate is paid on assets up to $1 billion and Tier 2 rate is paid on assets in excess of
$1 billion.

(c) Tier 1 rate is paid on assets up to $500 million and Tier 2 rate is paid on assets in excess
of $500 million.

(d) Tier 1 is based on all assets.

Alger Management has established expense caps for several share classes, effective through
February 28, 2017, whereby it reimburses the share classes if annualized operating expenses

- 129 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

(excluding interest, taxes, brokerage, dividend expense and extraordinary expenses) exceed
the rates, based on average daily net assets, listed below:


								FEES WAIVED /
								REIMBURSED FOR
				CLASS				THE YEAR ENDED
								OCTOBER 31,
	A		B	C		I	Z		2016
Alger International Growth Fund	–		–	–		1.15%	1.15%	$		69,450
Alger Mid Cap Growth Fund^*	–		–	–		–	1.05			6,943
Alger Small Cap Growth Fund	–		–	–		–	0.99			13,131
Alger Small Cap Focus Fund^**	1.20	%	–	1.95	%	1.20	1.10			85,664
Alger Health Sciences Fund	–		–	–		–	0.99			12,617

* Prior to June 1, 2016, the expense cap for the Alger Mid Cap Growth Fund Class Z was
0.99%

** Prior to March 1, 2016, the expense cap for the Alger Small Cap Focus Fund Class A was
1.60%, Class C was 2.25%, Class I was 1.35% and Class Z was 0.99%.

Fred Alger Management Inc. may recoup reimbursed expenses during the one-year term of
the expense reimbursement contract if the expense ratio falls below the stated limitation.

(b) Administration Fees: Fees incurred by each Fund, pursuant to the provisions of the Trust’s
Administration Agreement with Fred Alger Management, Inc., are payable monthly and
computed based on the average daily net assets of each Fund at the annual rate of 0.0275%.
(c) Distribution Fees:
Class A Shares: The Trust has adopted a Plan of Distribution pursuant to which each Fund
pays Fred Alger & Company, Incorporated, the Fund’s distributor (the “Distributor” or
“Alger Inc.”) and an affiliate of Alger Management, a fee at the annual rate of 0.25% of
the respective average daily net assets of the Class A shares of the designated Fund to
compensate Alger Inc. for its activities and expenses incurred in distributing the Class A
shares and shareholder servicing. Fees paid may be more or less than the expenses incurred
by Alger Inc.

Class B Shares: The Trust has adopted an Amended and Restated Plan of Distribution
pursuant to which Class B shares of each Fund issuing such shares reimburse Alger Inc.
for costs and expenses incurred by Alger Inc. in connection with advertising, marketing and
selling the Class B shares, and shareholder servicing, not to exceed an annual rate of 1% of
the respective average daily net assets of the Class B shares of the designated Fund. If in
any month, the costs incurred by Alger Inc. relating to the Class B shares are in excess of
the distribution fees charged to the Class B shares of the Fund, the excess may be carried
forward, with interest, and sought to be reimbursed in future periods. As of October 31,
2016, such excess carried forward was $21,853,730, $16,303,762, $10,713,059, $272,991,
$16,490,766 and $996,975, for Class B shares of the Alger Capital Appreciation Fund, Alger
International Growth Fund, Alger Mid Cap Growth Fund, Alger SMid Cap Growth Fund,
Alger Small Cap Growth Fund and Alger Health Sciences Fund, respectively. Contingent

- 130 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

deferred sales charges imposed on redemptions of Class B shares will reduce the amount of
distribution expenses for which reimbursement may be sought. See Note 3(d) below.

Class C Shares: The Trust has adopted a Distribution Plan pursuant to which Class C shares
of each Fund pay Alger Inc. a fee at the annual rate of 1% of the respective average daily
net assets of the Class C shares of the designated Fund to compensate Alger Inc. for its
activities and expenses incurred in distributing the Class C shares and shareholder servicing.
The fees paid may be more or less than the expenses incurred by Alger Inc.

Class I Shares: The Trust has adopted a Distribution Plan pursuant to which Class I shares of
the Alger International Growth Fund, Alger SMid Cap Growth Fund and Alger Small Cap
Focus Fund each pay Alger Inc. a fee at the annual rate of 0.25% of the average daily net
assets of the Fund’s Class I shares to compensate Alger Inc. for its activities and expenses
incurred in distributing the Class I shares and shareholder servicing. The fees paid may be
more or less than the expenses incurred by Alger Inc.

(d) Sales Charges: Purchases and sales of shares of the Funds may be subject to initial sales
charges or contingent deferred sales charges. The contingent deferred sales charges are
used by Alger Inc. to offset distribution expenses previously incurred. Sales charges do
not represent expenses of the Trust. For the year ended October 31, 2016, the initial sales
charges and contingent deferred sales charges imposed, all of which were retained by Alger
Inc., were as follows:


				CONTINGENT
	INITIAL SALES		DEFERRED SALES
		CHARGES		CHARGES
Alger Capital Appreciation Fund	$	8,427	$	64,521
Alger International Growth Fund		2,796		19,997
Alger Mid Cap Growth Fund		3,217		31,320
Alger SMid Cap Growth Fund		457		5,775
Alger Small Cap Growth Fund		2,093		3,968
Alger Small Cap Focus Fund		565		4,619
Alger Health Sciences Fund		984		7,032
Alger Growth & Income Fund		2,216		2,512

(e) Brokerage Commissions: During the year ended October 31, 2016, the Alger Capital
Appreciation Fund, Alger International Growth Fund, Alger Mid Cap Growth Fund, Alger
SMid Cap Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger
Health Sciences Fund and Alger Growth & Income Fund paid Alger Inc. commissions of
$708,048, $6,171, $35,003, $180,340, $22,242, $15,982, $29,465 and $2,392 respectively, in
connection with securities transactions.
(f) Shareholder Administrative Fees: The Trust has entered into a shareholder administrative
services agreement with Alger Management to compensate Alger Management for its
liaison and administrative oversight of Boston Financial Data Services, Inc., the transfer
agent, and other related services. The Funds compensate Alger Management at the annual
rate of 0.0165% of their respective average daily net assets for the Class A, Class B and
Class C shares and 0.01% of their respective average daily net assets of the Class I and Class
Z shares for these services.
- 131 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

Alger Management makes payments to intermediaries that provide sub-accounting
services to omnibus accounts invested in the Funds. A portion of the fees paid by Alger
Management to intermediaries that provide sub-accounting services are charged back to
the appropriate Fund, subject to certain limitations, as approved by the Board. For the year
ended October 31, 2016, Alger Management charged back to the Alger Capital Appreciation
Fund, Alger International Growth Fund, Alger Mid Cap Growth Fund, Alger SMid Cap
Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger Health
Sciences Fund and Alger Growth & Income Fund, $1,119,553, $74,166, $86,058, $181,111,
$55,205, $53,902, $93,815 and $39,935, respectively, for these services, which are included in
transfer agent fees and expenses in the accompanying Statements of Operations.

(g) Trustees’ Fees: From November 1, 2015 through February 29, 2016, each trustee who
is not affiliated with Alger Management or its affiliates (each, an “Independent Trustee”)
received a fee of $25,875 for each board meeting attended, to a maximum of $103,500
per annum, paid pro rata by each fund in the Alger Fund Complex, plus travel expenses
incurred for attending the meeting. The Independent Trustee appointed as Chairman of the
Board of Trustees received additional compensation of $24,300 per annum paid pro rata by
each fund in the Alger Fund Complex. Additionally, each member of the Audit Committee
received a fee of $2,500 for each Audit Committee meeting attended to a maximum of
$10,000 per annum, paid pro rata by each fund in the Alger Fund Complex.
Effective March 1, 2016, each Independent Trustee receives a fee of $27,250 for each board
meeting attended, to a maximum of $109,000 per annum, paid pro rata by each fund in
the Alger Fund Complex, plus travel expenses incurred for attending the meeting. The
Independent Trustee appointed as Chairman of the Board of Trustees receives additional
compensation of $26,000 per annum paid pro rata by each fund in the Alger Fund Complex.
Additionally, each member of the Audit Committee receives a fee of $2,500 for each Audit
Committee meeting attended to a maximum of $10,000 per annum, paid pro rata by each
fund in the Alger Fund Complex.

(h) Interfund Trades: The Funds engaged in purchase and sale transactions with funds that
have a common investment adviser. For the year ended October 31, 2016, these purchases
and sales were as follows:


	Purchases			Sales	Realized loss
Alger Capital Appreciation
Fund	$	1,249,200	$	–	$	–
Alger Mid Cap Fund		136,250		–		–
Alger SMid Cap Growth Fund		–		1,027,870		(86,839	)
Alger Small Cap Growth
Fund		–		278,525		(48,113	)
Alger Small Cap Focus Fund		196,014		291,380		(47,298	)

Interfund Loans: The Funds, along with other funds advised by Alger Management, may
borrow money from and lend money to each other for temporary or emergency purposes
with the exception of the Alger International Growth Fund which can only borrow for
temporary or emergency purposes. To the extent permitted under its investment restrictions,
each fund may lend uninvested cash in an amount up to 15% of its net assets to other funds.
- 132 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

If a fund has borrowed from other funds and has aggregate borrowings from all sources
that exceed 10% of the fund’s total assets, such fund will secure all of its loans from other
funds. The interest rate charged on interfund loans is equal to the average of the overnight
time deposit rate and bank loan rate available to the funds. As of October 31, 2016, Alger
SMid Cap Growth Fund borrowed $1,198,235, and Alger Large Cap Growth Portfolio
borrowed $599,022 including interest, from Alger Capital Appreciation Fund at a rate of
1.34%, which was callable within seven calendar days.
During the year ended October 31, 2016, Alger International Fund, Alger SMid Cap
Growth Fund, Alger Small Cap Growth Fund and Alger Health Sciences Fund incurred
interfund loan interest expense of $588, $4,389, $23 and $543, respectively and Alger Capital
Appreciation Fund earned interfund loan interest income of $21,097.

(j) Other Transactions With Affiliates: Certain officers of the Trust are directors and officers
of Alger Management and the Distributor. At October 31, 2016, Alger Management and its
affiliated entities owned the following shares:


				SHARE CLASS
		A		C	I	Z
Alger Capital Appreciation Fund	61,690			—	—	24,202
Alger International Growth Fund		—		—	7,315	108,897
Alger Mid Cap Growth Fund		—		—	—	85,681
Alger SMid Cap Growth Fund	141,718		82,885		—	69,272
Alger Small Cap Growth Fund	62,507			—	—	78,354
Alger Small Cap Focus Fund		—		—	—	286,570
Alger Health Sciences Fund		—		—	—	4,712
Alger Growth & Income Fund		—		—	—	28,794

NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by the Trust, other than U.S.
Government securities, short-term securities, purchased options and short sales, for the
year ended October 31, 2016:


		PURCHASES		SALES
Alger Capital Appreciation Fund	$	2,497,640,586	$	2,553,168,237
Alger International Growth Fund		263,946,589		290,392,295
Alger Mid Cap Growth Fund		155,830,287		176,603,266
Alger SMid Cap Growth Fund		475,879,765		704,578,748
Alger Small Cap Growth Fund		71,936,526		99,650,697
Alger Small Cap Focus Fund		194,330,876		88,062,737
Alger Health Sciences Fund		130,228,142		184,809,747
Alger Growth & Income Fund		5,137,488		10,378,483

Transactions in foreign securities may involve certain considerations and risks not typically
associated with those of U.S. companies because of, among other factors, the level of
governmental supervision and regulation of foreign security markets, and the possibility of
political or economic instability. Additional risks associated with investing in the emerging
markets include increased volatility, limited liquidity, and less stringent regulatory and legal
system.
- 133 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

The following table summarizes the Fund’s securities lending agreements by counterparty
which are subject to rights of offset as of October 31, 2016.


Alger Growth & Income Fund
					Fair Value
		Securities		Cash	on Non-
		Loaned at		Collateral	Cash Collateral	Net
Counterparty		Value		Received(a)	Received	Amount(b)

Citigroup Global Markets	$	332,276	$	332,276	—	—

(a) Collateral with a value of $339,244 has been received in connection with securities
lending agreements.

(b) The Market value of loaned securities is determined as of October 31, 2016. The net
amount would be subject to the borrower default indemnity in the event of default by the
counterparty.

NOTE 5 — Borrowing:
The Funds may borrow from their custodian on an uncommitted basis. Each Fund pays the
custodian a market rate of interest, generally based upon the London Interbank Offered
Rate. The Funds may also borrow from other funds advised by Alger Management, as
discussed in Note 3(i). For the year ended October 31, 2016, the Funds had the following
borrowings:


	AVERAGE DAILY		WEIGHTED AVERAGE
		BORROWING		INTEREST RATE
Alger International Growth Fund	$	55,744		1.58	%
Alger SMid Cap Growth Fund		379,839		1.41
Alger Small Cap Growth Fund		2,679		1.68
Alger Small Cap Focus Fund		2,583		2.47
Alger Health Sciences Fund		58,369		1.69

The highest amount borrowed during the year ended October 31, 2016, for each Fund was
as follows:


	HIGHEST BORROWING
Alger International Growth Fund	$	2,390,030
Alger SMid Cap Growth Fund		13,745,000
Alger Small Cap Growth Fund		652,000
Alger Small Cap Focus Fund		287,343
Alger Health Sciences Fund		751,218

- 134 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 6 — Share Capital:
(a) The Trust has an unlimited number of authorized shares of beneficial interest of $.001
par value which are presently divided into eight series. Each series is divided into separate
classes. The transactions of shares of beneficial interest were as follows:


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Capital Appreciation Fund
Class A:
Shares sold	15,687,296		$	312,919,378		19,941,463		$	429,216,453
Shares converted from Class B	138,345			2,805,840		173,220			3,729,703
Shares converted from Class C	1,881			36,969		176			3,894
Dividends reinvested	5,111,190			104,063,825		7,954,361			164,180,132
Shares redeemed	(26,172,211	)	(521,208,293		)	(15,164,333	)	(327,851,427		)
Net increase (decrease)	(5,233,499)		$	(101,382,281)		12,904,887		$	269,278,755
Class B:
Shares sold	71,059		$	1,160,531		80,825		$	1,449,684
Shares converted to Class A	(168,903	)		(2,805,840	)	(206,707	)		(3,729,703	)
Dividends reinvested	114,399			1,904,747		239,941			4,150,980
Shares redeemed	(336,950	)		(5,485,346	)	(297,342	)		(5,380,690	)
Net decrease	(320,395	)	$	(5,225,908	)	(183,283	)	$	(3,509,729	)
Class C:
Shares sold	4,518,897		$	73,901,380		6,139,982		$	111,154,806
Shares converted to Class A	(2,296	)		(36,969	)	(210	)		(3,894	)
Dividends reinvested	1,219,048			20,382,484		1,510,451			26,218,831
Shares redeemed	(4,114,364	)		(67,196,998	)	(2,283,166	)		(41,413,976	)
Net increase	1,621,285		$	27,049,897		5,367,057		$	95,955,767
Class Z:
Shares sold	12,133,141		$	247,827,394		18,379,428		$	409,588,134
Dividends reinvested	2,060,384			42,629,342		1,662,259			34,707,970
Shares redeemed	(6,268,239	)	(126,650,061		)	(4,287,362	)		(91,613,367	)
Net increase	7,925,286		$	163,806,675		15,754,325		$	352,682,737

- 135 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger International Growth Fund
Class A:
Shares sold	428,060		$	6,288,824		1,318,497		$	21,202,489
Shares converted from Class B	57,050			839,382		72,646			1,155,119
Shares converted from Class C	404			5,744		837			13,494
Dividends reinvested	3,042			46,449		75,380			1,141,318
Shares redeemed	(1,938,462	)		(28,772,583	)	(1,218,713	)		(19,138,672	)
Net increase (decrease)	(1,449,906	)	$	(21,592,184	)	248,647		$	4,373,748
Class B:
Shares sold	27,149		$	347,798		30,301		$	420,627
Shares converted to Class A	(64,930	)		(839,382	)	(82,241	)		(1,155,119	)
Dividends reinvested	—			—		727			9,757
Shares redeemed	(287,366	)		(3,725,605	)	(529,374	)		(7,293,023	)
Net decrease	(325,147	)	$	(4,217,189	)	(580,587	)	$	(8,017,758	)
Class C:
Shares sold	153,803		$	1,968,937		376,012		$	5,352,938
Shares converted to Class A	(472	)		(5,744	)	(956	)		(13,494	)
Dividends reinvested	16,873			221,367		5,186			68,915
Shares redeemed	(548,419	)		(6,850,872	)	(320,301	)		(4,380,916	)
Net increase (decrease)	(378,215	)	$	(4,666,312	)	59,941		$	1,027,443
Class I:
Shares sold	863,053		$	12,503,069		799,096		$	12,669,754
Dividends reinvested	3,430			52,174		2,439			36,830
Shares redeemed	(819,147	)		(11,862,325	)	(116,718	)		(1,794,576	)
Net increase	47,336		$	692,918		684,817		$	10,912,008
Class Z:
Shares sold	1,891,889		$	28,235,200		1,181,195		$	19,140,824
Dividends reinvested	5,881			90,447		5,490			83,664
Shares redeemed	(1,873,345	)		(27,171,454	)	(512,859	)		(8,088,181	)
Net increase	24,425		$	1,154,193		673,826		$	11,136,307

- 136 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Mid Cap Growth Fund
Class A:
Shares sold	1,084,526		$	10,979,693		858,755		$	9,544,674
Shares converted from Class B	121,289			1,246,159		113,448			1,246,215
Shares converted from Class C	—			—		58			641
Shares redeemed	(2,629,068	)		(26,789,155	)	(2,193,763	)		(24,280,042	)
Net decrease	(1,423,253	)	$	(14,563,303	)	(1,221,502	)	$	(13,488,512	)
Class B:
Shares sold	46,923		$	386,839		45,346		$	405,449
Shares converted to Class A	(149,628	)		(1,246,159	)	(138,955	)		(1,246,215	)
Shares redeemed	(606,867	)		(4,950,680	)	(756,856	)		(6,786,702	)
Net decrease	(709,572	)	$	(5,810,000	)	(850,465	)	$	(7,627,468	)
Class C:
Shares sold	326,217		$	2,736,652		270,110		$	2,438,597
Shares converted to Class A	—			—		(72	)		(641	)
Shares redeemed	(808,642	)		(6,618,592	)	(548,366	)		(4,899,669	)
Net decrease	(482,425	)	$	(3,881,940	)	(278,328	)	$	(2,461,713	)
Class Z:
Shares sold	574,450		$	6,081,886		230,040		$	2,574,944
Shares redeemed	(67,553	)		(687,964	)	(3,854	)		(43,512	)
Net increase	506,897		$	5,393,922		226,186		$	2,531,432

- 137 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger SMid Cap Growth Fund
Class A:
Shares sold	1,457,730		$	16,428,330		2,515,669		$	44,770,555
Shares converted from Class B	39,432			431,408		26,382			469,683
Dividends reinvested	4,172,831			44,649,289		1,756,178			29,697,232
Shares redeemed	(7,414,974	)		(86,285,320	)	(7,282,943	)	(129,738,047		)
Net decrease	(1,744,981	)	$	(24,776,293	)	(2,984,714	)	$	(54,800,577	)
Class B:
Shares sold	15,952		$	133,355		12,637		$	185,261
Shares converted to Class A	(50,211	)		(431,408	)	(30,450	)		(469,683	)
Dividends reinvested	165,010			1,379,484		56,485			828,071
Shares redeemed	(220,953	)		(1,948,264	)	(173,061	)		(2,627,122	)
Net decrease	(90,202	)	$	(866,833	)	(134,389	)	$	(2,083,473	)
Class C:
Shares sold	642,040		$	5,413,882		326,733		$	4,980,075
Dividends reinvested	1,957,334			16,500,322		503,010			7,399,281
Shares redeemed	(2,519,607	)		(22,328,867	)	(743,932	)		(11,427,019	)
Net increase (decrease)	79,767		$	(414,663	)	85,811		$	952,337
Class I:
Shares sold	392,587		$	4,352,261		4,562,014		$	82,321,216
Dividends reinvested	1,747,857			19,016,684		5,334,507			91,380,102
Shares redeemed	(3,310,494	)		(40,572,658	)	(41,500,869	)	(747,903,500		)
Net decrease	(1,170,050	)	$	(17,203,713	)	(31,604,348)		$	(574,202,182)
Class Z:
Shares sold	3,415,585		$	45,335,807		6,632,842		$	113,310,928
Dividends reinvested	4,220,629			46,722,362		188,649			3,250,429
Shares redeemed	(12,804,443	)	(142,417,710		)	(1,628,271	)		(30,002,909	)
Net increase (decrease)	(5,168,229	)	$	(50,359,541	)	5,193,220		$	86,558,448

- 138 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Small Cap Growth Fund
Class A:
Shares sold	727,901		$	4,433,041		1,580,029		$	13,419,571
Shares converted from Class B	89,271			556,042		94,284			800,038
Dividends reinvested	3,299,670			20,986,414		1,746,872			14,202,069
Shares redeemed	(4,640,378	)		(28,936,820	)	(4,548,661	)		(39,066,866	)
Net decrease	(523,536	)	$	(2,961,323	)	(1,127,476	)	$	(10,645,188	)
Class B:
Shares sold	25,632		$	122,745		91,268		$	614,597
Shares converted to Class A	(114,838	)		(556,042	)	(113,836	)		(800,038	)
Dividends reinvested	310,086			1,528,725		153,462			1,031,264
Shares redeemed	(163,578	)		(801,673	)	(301,914	)		(2,113,880	)
Net increase (decrease)	57,302		$	293,755		(171,020	)	$	(1,268,057	)
Class C:
Shares sold	220,860		$	1,051,271		171,469		$	1,158,931
Dividends reinvested	549,988			2,634,442		254,757			1,673,757
Shares redeemed	(1,010,403	)		(4,699,299	)	(457,300	)		(3,151,622	)
Net decrease	(239,555	)	$	(1,013,586	)	(31,074	)	$	(318,934	)
Class Z:
Shares sold	983,036		$	6,487,482		1,029,786		$	8,766,273
Dividends reinvested	587,321			3,794,092		819,654			6,729,363
Shares redeemed	(877,811	)		(5,216,824	)	(6,292,720	)		(55,536,296	)
Net increase (decrease)	692,546		$	5,064,750		(4,443,280	)	$	(40,040,660	)

- 139 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Small Cap Focus Fund
Class A:
Shares sold	1,580,972		$	17,237,961		1,654,205		$	18,594,316
Dividends reinvested	—			—		45,119			481,873
Shares redeemed	(784,484	)		(8,280,213	)	(1,005,502	)		(11,422,574	)
Net increase	796,488		$	8,957,748		693,822		$	7,653,615
Class C:
Shares sold	1,016,020		$	10,265,323		590,280		$	6,221,786
Dividends reinvested	—			—		21,518			213,678
Shares redeemed	(253,728	)		(2,496,236	)	(61,705	)		(639,921	)
Net increase	762,292		$	7,769,087		550,093		$	5,795,543
Class I:
Shares sold	4,555,749		$	50,270,692		3,642,592		$	42,213,625
Dividends reinvested	—			—		9,345			102,042
Shares redeemed	(1,592,057	)		(17,504,534	)	(205,350	)		(2,343,092	)
Net increase	2,963,692		$	32,766,158		3,446,587		$	39,972,575
Class Z:
Shares sold	5,872,255		$	65,862,734		1,261,095		$	14,388,178
Dividends reinvested	—			—		23,909			261,562
Shares redeemed	(1,467,281	)		(14,974,056	)	(54,143	)		(620,875	)
Net increase	4,404,974		$	50,888,678		1,230,861		$	14,028,865

- 140 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Health Sciences Fund
Class A:
Shares sold	570,670		$	9,965,192		1,398,761		$	34,246,474
Shares converted from Class B	39,317			680,424		40,286			984,600
Shares converted from Class C	6,096			113,325		—			—
Dividends reinvested	812,450			15,501,550		1,035,935			23,173,875
Shares redeemed	(2,736,188	)		(48,136,846	)	(2,045,448	)		(48,627,542	)
Net increase (decrease)	(1,307,655	)	$	(21,876,355	)	429,534		$	9,777,407
Class B:
Shares sold	11,426		$	176,984		19,505		$	372,914
Shares converted to Class A	(48,364	)		(680,424	)	(47,600	)		(984,600	)
Dividends reinvested	48,679			754,035		84,278			1,597,068
Shares redeemed	(174,636	)		(2,547,527	)	(125,898	)		(2,585,940	)
Net decrease	(162,895	)	$	(2,296,932	)	(69,715	)	$	(1,600,558	)
Class C:
Shares sold	230,392		$	3,501,663		409,745		$	8,190,033
Shares converted to Class A	(7,475	)		(113,325	)	—			—
Dividends reinvested	423,918			6,600,406		494,274			9,401,097
Shares redeemed	(1,356,871	)		(19,230,755	)	(586,919	)		(11,882,400	)
Net increase (decrease)	(710,036	)	$	(9,242,011	)	317,100		$	5,708,730
Class Z:
Shares sold	311,511		$	6,202,443		308,872		$	7,123,472
Dividends reinvested	51,369			970,367		—			—
Shares redeemed	(349,534	)		(5,915,064	)	(9,344	)		(212,367	)
Net increase	13,346		$	1,257,746		299,528		$	6,911,105

Alger Growth & Income Fund
Class A:
Shares sold	238,516		$	7,617,466		230,587		$	7,699,744
Shares converted from Class C	98			3,268		180			6,135
Dividends reinvested	84,971			2,728,977		90,408			2,991,002
Shares redeemed	(486,173	)		(15,621,571	)	(390,788	)		(12,816,094	)
Net decrease	(162,588	)	$	(5,271,860	)	(69,613	)	$	(2,119,213	)
Class C:
Shares sold	153,477		$	4,821,344		110,995		$	3,655,182
Shares converted to Class A	(99	)		(3,268	)	(182	)		(6,135	)
Dividends reinvested	22,681			720,305		21,539			705,009
Shares redeemed	(173,057	)		(5,502,100	)	(93,083	)		(3,059,497	)
Net increase	3,002		$	36,281		39,269		$	1,294,559
Class Z:
Shares sold	261,707		$	8,515,819		48,152		$	1,602,084
Dividends reinvested	12,088			388,529		8,482			280,555
Shares redeemed	(186,481	)		(5,947,525	)	(45,944	)		(1,523,567	)
Net increase	87,314		$	2,956,823		10,690		$	359,072

- 141 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

(b) Redemption Fee: Prior to March 1, 2015, the Funds imposed a 2.00% redemption fee
on certain Class A, Class B and Class C shares redeemed (including shares redeemed
by exchange) within 30 days after such shares were acquired. Since March 1, 2015, the
redemption fee is no longer imposed.
NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2016 and the year
ended October 31, 2015 were as follows:


	FOR THE YEAR ENDED		FOR THE YEAR ENDED
	OCTOBER 31, 2016		OCTOBER 31, 2015
Alger Capital Appreciation Fund
Distributions paid from:
Ordinary Income		—	$	47,530,093
Long-term capital gain	$	202,205,125		233,509,092
Total distributions paid	$	202,205,125	$	281,039,185

Alger International Growth Fund
Distributions paid from:
Ordinary Income		533,272		1,548,952
Long-term capital gain		—		—
Total distributions paid	$	533,272	$	1,548,952

Alger Mid Cap Growth Fund
Distributions paid from:
Ordinary Income		—		—
Long-term capital gain		—		—
Total distributions paid		—		—

Alger SMid Cap Growth Fund
Distributions paid from:
Ordinary Income		—		10,570,820
Long-term capital gain		141,555,088		128,974,662
Total distributions paid	$	141,555,088	$	139,545,482

Alger Small Cap Growth Fund
Distributions paid from:
Ordinary Income		—		—
Long-term capital gain		31,539,951		25,375,789
Total distributions paid	$	31,539,951	$	25,375,789

- 142 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED		FOR THE YEAR ENDED
	OCTOBER 31, 2016		OCTOBER 31, 2015
Alger Small Cap Focus Fund
Distributions paid from:
Ordinary Income		—		—
Long-term capital gain		—		1,253,342
Total distributions paid		—	$	1,253,342

Alger Health Sciences Fund
Distributions paid from:
Ordinary Income		6,883,316		12,851,704
Long-term capital gain		22,982,858		31,027,386
Total distributions paid	$	29,866,174	$	43,879,090

Alger Growth & Income Fund
Distributions paid from:
Ordinary Income		1,399,785		1,463,014
Long-term capital gain		3,151,855		3,330,336
Total distributions paid	$	4,551,640	$	4,793,350

As of October 31, 2016 the components of accumulated gains (losses) on a tax basis were
as follows:


Alger Capital Appreciation Fund
Undistributed ordinary income		—
Undistributed long-term gains	$	20,503,027
Net accumulated earnings		20,503,027
Capital loss carryforwards		—
Late year ordinary income losses		(1,776,846	)
Net unrealized appreciation		251,629,178
Total accumulated earnings	$	270,355,359

Alger International Growth Fund
Undistributed ordinary income	$	2,357,290
Undistributed long-term gains		—
Net accumulated earnings		2,357,290
Capital loss carryforwards		(20,329,784	)
Net unrealized depreciation		(6,649	)
Total accumulated losses	$	(17,979,143	)

- 143 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Mid Cap Growth Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(38,311,345	)
Late year ordinary income losses		(833,204	)
Net unrealized appreciation		4,171,517
Total accumulated losses	$	(34,973,032	)

Alger SMid Cap Growth Fund
Undistributed ordinary income		—
Undistributed long-term gains		19,415,468
Net accumulated earnings		19,415,468
Capital loss carryforwards		—
Late year ordinary income losses		(1,451,230	)
Net unrealized appreciation		7,292,250
Total accumulated earnings	$	25,256,488

Alger Small Cap Growth Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(5,535,262	)
Late year ordinary income losses		(959,059	)
Net unrealized appreciation		9,547,372
Total accumulated earnings	$	3,053,051

Alger Small Cap Focus Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(5,002,500	)
Late year ordinary income losses		(864,205	)
Net unrealized appreciation		10,568,795
Total accumulated earnings	$	4,702,090

- 144 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Health Sciences Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(6,689,167	)
Late year ordinary income losses		(1,049,456	)
Net unrealized depreciation		(5,568,603	)
Total accumulated losses	$	(13,307,226	)

Alger Growth & Income Fund
Undistributed ordinary income	$	134,696
Undistributed long-term gains		31,502
Net accumulated earnings		166,198
Capital loss carryforwards		—
Net unrealized appreciation		27,308,912
Total accumulated earnings	$	27,475,110

At October 31, 2016, the Funds, for federal income tax purposes, had capital loss
carryforwards as set forth in the table below. These amounts may be applied against future
net realized gains until the earlier of their utilization or expiration.


	Alger Capital		Alger International		Alger Mid Cap		Alger SMid Cap
Expiration Dates	Appreciation Fund		Growth Fund		Growth Fund		Growth Fund
POST ACT		—	$	11,871,085	$	3,690,505		—
2017		—		8,458,699		34,620,840		—
Total		—		20,329,784		38,311,345		—


	Alger Small Cap		Alger Small Cap			Alger Health	Alger Growth &
Expiration Dates	Growth Fund			Focus Fund	Sciences Fund		Income Fund
POST ACT	$	5,535,262	$	5,002,500	$	6,689,167		—
Total		5,535,262		5,002,500		6,689,167		—

Under the Regulated Investment Company Modernization Act of 2010, capital losses
incurred by the Funds after October 31, 2011 will not be subject to expiration. In addition,
losses incurred after October 31, 2011 must be utilized prior to the utilization of capital loss
carryforwards above.

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is
determined annually and is attributable primarily to the tax deferral of losses on wash sales,
U.S. Internal Revenue Code Section 988 currency transactions, nondeductible expenses
on dividends sold short, the tax treatment of partnerships investments, the realization of
unrealized appreciation of passive foreign investment companies, and return of capital from
real estate investment trust investments.
- 145 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

Permanent differences, primarily from net operating losses and real estate investment trusts
and partnership investments sold by the Funds, resulted in the following reclassifications
among the Funds’ components of net assets at October 31, 2016.

The Funds accrue tax on unrealized gains in foreign jurisdictions that impose a foreign
capital tax.


Alger Capital Appreciation Fund
Accumulated undistributed net investment income (accumulated loss)	$	5,835,228
Accumulated net realized gain (accumulated realized loss)	$	1,881,104
Paid-in Capital	$	(7,716,332	)

Alger International Growth Fund
Accumulated undistributed net investment income (accumulated loss)	$	1,011,001
Accumulated net realized gain (accumulated realized loss)	$	(1,011,001	)
Paid-in Capital	$	–

Alger Mid Cap Growth Fund
Accumulated undistributed net investment income (accumulated loss)	$	1,924,135
Accumulated net realized gain (accumulated realized loss)	$	197,624
Paid-in Capital	$	(2,121,759	)

Alger SMid Cap Growth Fund
Accumulated undistributed net investment income (accumulated loss)	$	3,492,939
Accumulated net realized gain (accumulated realized loss)	$	77,292
Paid-in Capital	$	(3,570,231	)

Alger Small Cap Growth Fund
Accumulated undistributed net investment income (accumulated loss)	$	1,905,949
Accumulated net realized gain (accumulated realized loss)	$	26,132
Paid-in Capital	$	(1,932,081	)

Alger Small Cap Focus Fund
Accumulated undistributed net investment income (accumulated loss)	$	529,441
Accumulated net realized gain (accumulated realized loss)	$	3,640
Paid-in Capital	$	(533,081	)

Alger Health Sciences Fund
Accumulated undistributed net investment income (accumulated loss)	$	335,301
Accumulated net realized gain (accumulated realized loss)	$	76,733
Paid-in Capital	$	(412,034	)

- 146 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Growth & Income Fund
Accumulated undistributed net investment income (accumulated loss)	$	(196,620	)
Accumulated net realized gain (accumulated realized loss)	$	196,621
Paid-in Capital	$	(1	)

NOTE 8 — Fair Value Measurements:
The following is a summary of the inputs used as of October 31, 2016 in valuing the Funds’
investments carried at fair value on a recurring basis. Based upon the nature, characteristics,
and risks associated with their investments, the Funds have determined that presenting them
by security type and sector is appropriate.


Alger Capital Appreciation Fund			TOTAL FUND				LEVEL 1	LEVEL 2			LEVEL 3
COMMON STOCKS
Consumer Discretionary	$	402,581,369			$	402,581,369			—		—ⁱ
Consumer Staples			163,443,298			163,443,298			—		—
Energy			42,241,406			42,241,406			—		—
Financials			39,200,978			39,200,978			—		—
Health Care			363,058,612			363,058,612			—		—
Industrials			179,049,786			179,049,786			—		—
Information Technology			1,026,447,173			1,025,274,566			—		1,172,607
Materials			39,658,477			39,658,477			—		—
Telecommunication Services			10,188,361			10,188,361			—		—
TOTAL COMMON STOCKS	$	2,265,869,460			$	2,264,696,853			—	$	1,172,607
CORPORATE BONDS
Consumer Discretionary				387,502			—		—		387,502
MASTER LIMITED PARTNERSHIP
Financials			21,560,617			21,560,617			—		—
PREFERRED STOCKS
Consumer Discretionary				973,474			—		—		973,474	ⁱ
Health Care				4,373,941			—		—		4,373,941
Information Technology				5,405,299			—		—		5,405,299
TOTAL PREFERRED STOCKS		$		10,752,714			—		—	$	10,752,714
REAL ESTATE INVESTMENT TRUST
Financials			10,103,108			10,103,108			—		—
Real Estate			17,213,215			17,213,215			—		—
TOTAL REAL ESTATE
INVESTMENT TRUST		$		27,316,323		$	27,316,323		—		—
WARRANTS
Consumer Discretionary				379,752			—		—		379,752
TOTAL INVESTMENTS IN
SECURITIES	$	2,326,266,368			$	2,313,573,793			—	$	12,692,575

- 147 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger International Growth Fund		TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary		12,600,480			1,538,692	11,061,788			—
Consumer Staples		22,822,376			2,337,059	20,485,317			—
Energy		17,196,301			6,638,163	10,558,138			—
Financials		30,810,337			5,037,916	25,772,421			—
Health Care		20,209,101			6,075,287	14,133,814			—
Industrials		15,262,306			905,534	14,356,772			—
Information Technology		28,729,522		12,605,980		16,123,542			—
Materials		10,291,462			1,183,547		9,107,915		—
Telecommunication Services			7,996,806		—		7,996,806		—
Utilities			6,459,473		3,058,159		3,401,314		—
TOTAL COMMON STOCKS	$		172,378,164	$	39,380,337	$	132,997,827		—
TOTAL INVESTMENTS IN
SECURITIES	$		172,378,164	$	39,380,337	$	132,997,827		—

Alger Mid Cap Growth Fund		TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary		29,422,878		29,422,878			—		—
Consumer Staples			7,508,213		7,508,213		—		—
Energy			1,702,587		1,702,587		—		—
Financials			7,234,212		7,234,212		—		—
Health Care		23,134,887		23,134,887			—		—
Industrials		18,859,689		18,859,689			—		—
Information Technology		37,487,023		37,361,747			—		125,276
Materials			7,439,414		7,439,414		—		—
Telecommunication Services			1,782,191		1,782,191		—		—
TOTAL COMMON STOCKS	$		134,571,094	$	134,445,818		—	$	125,276
PREFERRED STOCKS
Health Care			1,525,775		—		—		1,525,775
Information Technology			577,483		—		—		577,483
TOTAL PREFERRED STOCKS	$		2,103,258		—		—	$	2,103,258
REAL ESTATE INVESTMENT TRUST
Financials			765,329		765,329		—		—
Real Estate			4,479,790		4,479,790		—		—
TOTAL REAL ESTATE
INVESTMENT TRUST	$		5,245,119	$	5,245,119		—		—
SPECIAL PURPOSE VEHICLE
Financials			327,271		—		—		327,271
TOTAL INVESTMENTS IN
SECURITIES	$		142,246,742	$	139,690,937		—	$	2,555,805

- 148 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger SMid Cap Growth Fund		TOTAL FUND			LEVEL 1	LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary		13,228,627		13,228,627		—		—
Consumer Staples			4,409,126		4,409,126	—		—
Energy			3,259,288		3,259,288	—		—
Financials		17,331,267		17,331,267		—		—
Health Care		48,110,745		48,110,745		—		—
Industrials		15,248,158		15,248,158		—		—
Information Technology		61,592,523		60,970,502		—		622,021
Materials			872,690		872,690	—		—
TOTAL COMMON STOCKS	$		164,052,424	$	163,430,403	—	$	622,021
MASTER LIMITED PARTNERSHIP
Financials			1,924,807		1,924,807	—		—
PREFERRED STOCKS
Health Care			3,748,197		—	—		3,748,197
Information Technology			2,867,296		—	—		2,867,296
TOTAL PREFERRED STOCKS	$		6,615,493		—	—	$	6,615,493
REAL ESTATE INVESTMENT TRUST
Real Estate			6,156,933		6,156,933	—		—
RIGHTS
Health Care			—		—	—		—ⁱⁱ
TOTAL INVESTMENTS IN
SECURITIES	$		178,749,657	$	171,512,143	—	$	7,237,514

Alger Small Cap Growth Fund		TOTAL FUND			LEVEL 1	LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary			9,614,478		9,614,478	—		—
Consumer Staples			3,142,572		3,142,572	—		—
Energy			1,440,167		1,440,167	—		—
Financials			4,428,269		4,428,269	—		—
Health Care		38,212,527		38,212,527		—		—
Industrials			9,381,712		9,381,712	—		—
Information Technology		44,956,100		44,956,100		—		—
Materials			2,960,100		2,960,100	—		—
TOTAL COMMON STOCKS	$		114,135,925	$	114,135,925	—		—
PREFERRED STOCKS
Health Care			396,005		—	—		396,005
REAL ESTATE INVESTMENT TRUST
Real Estate			1,985,145		1,985,145	—		—
RIGHTS
Health Care			—		—	—ⁱⁱⁱ		—^iv
SPECIAL PURPOSE VEHICLE
Financials			301,420		—	—		301,420
TOTAL INVESTMENTS IN
SECURITIES	$		116,818,495	$	116,121,070	—	$	697,425

- 149 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Small Cap Focus Fund	TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary		4,795,706		4,795,706		—		—
Financials		1,803,693		1,803,693		—		—
Health Care	83,268,153		83,268,153			—		—
Industrials		9,200,940		9,200,940		—		—
Information Technology	73,479,326		73,479,326			—		—
Materials		6,090,064		6,090,064		—		—
TOTAL COMMON STOCKS	$	178,637,882	$	178,637,882		—		—
PREFERRED STOCKS
Health Care		56,319		—		—		56,319
TOTAL INVESTMENTS IN
SECURITIES	$	178,694,201	$	178,637,882		—	$	56,319

Alger Health Sciences Fund	TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Health Care	96,091,870		95,431,819			516,332		143,719
Industrials		117,825		117,825		—		—
TOTAL COMMON STOCKS	$	96,209,695	$	95,549,644	$	516,332	$	143,719
PREFERRED STOCKS
Health Care		6,250,448		—		—		6,250,448
RIGHTS
Health Care		—		—		—ⁱⁱⁱ		—^iv,v
TOTAL INVESTMENTS IN
SECURITIES	$	102,460,143	$	95,549,644	$	516,332	$	6,394,167

Alger Growth & Income Fund	TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	12,614,738		12,614,738			—		—ⁱ
Consumer Staples	11,474,205		11,474,205			—		—
Energy		5,529,528		5,529,528		—		—
Financials	12,001,400		12,001,400			—		—
Health Care	13,026,037		13,026,037			—		—
Industrials	10,237,511		10,237,511			—		—
Information Technology	19,566,102		19,566,102			—		—
Materials		887,865		887,865		—		—
Telecommunication Services		3,222,912		3,222,912		—		—
Utilities		696,150		696,150		—		—
TOTAL COMMON STOCKS	$	89,256,448	$	89,256,448		—		—
CONVERTIBLE PREFERRED STOCKS
Health Care		592,130		592,130		—		—
CORPORATE BONDS
Consumer Discretionary		15,285		—		—		15,285
MASTER LIMITED PARTNERSHIP
Energy		431,950		431,950		—		—
Financials		1,261,512		1,261,512		—		—
TOTAL MASTER LIMITED
PARTNERSHIP	$	1,693,462	$	1,693,462		—		—

- 150 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Growth & Income Fund		TOTAL FUND			LEVEL 1	LEVEL 2			LEVEL 3
PREFERRED STOCKS
Consumer Discretionary			52,648		—		—		52,648	ⁱ
REAL ESTATE INVESTMENT TRUST
Financials			670,440		670,440		—		—
Real Estate			2,324,469		2,324,469		—		—
TOTAL REAL ESTATE
INVESTMENT TRUST	$		2,994,909	$	2,994,909		—		—
WARRANTS
Consumer Discretionary			14,979		—		—		14,979
TOTAL INVESTMENTS IN
SECURITIES	$		94,619,861	$	94,536,949		—	$	82,912

i. Alger Capital Appreciation Fund’s and Alger Growth & Income Fund’s shares of
Choicestream Inc. common stock and preferred stock are classified as a Level 3 investment
and are fair valued at zero as of October 31, 2016.

ii. Alger SMid Cap Growth Fund’s holdings of Dyax Corp.’s rights are classified as a Level 3
investment and are fair valued at zero as of October 31, 2016.

iii. Alger Small Cap Growth Fund’s and Alger Health Sciences Fund’s holdings of
Neuralstem, Inc.’s rights are classified as a Level 2 investment and are fair valued at zero as
of October 31, 2016.

iv. Alger Small Cap Growth Fund’s and Alger Health Sciences Fund’s holdings of Dyax
Corp.’s rights are classified as a Level 3 investment and are fair valued at zero as of October
31, 2016.

v. Alger Health Sciences Fund’s holdings of Emmaus Life Sciences Inc.’s rights are classified
as a Level 3 investment and are fair valued at zero as of October 31, 2016.


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Capital Appreciation Fund	Common Stocks
Opening balance at November 1, 2015	$		1,414,379
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(241,772	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			1,172,607
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(241,772	)

- 151 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Capital Appreciation Fund	Corporate Bonds
Opening balance at November 1, 2015	$		–
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			387,114
Purchases and sales			–
Purchases			388
Sales			–
Closing balance at October 31, 2016			387,502
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		387,114

Alger Capital Appreciation Fund	Preferred Stocks
Opening balance at November 1, 2015	$		10,241,974
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			510,740
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			10,752,714
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		510,740

Alger Capital Appreciation Fund			Warrants
Opening balance at November 1, 2015	$		–
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(7,362	)
Purchases and sales			–
Purchases			387,114
Sales			–
Closing balance at October 31, 2016			379,752
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(7,362	)

- 152 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Mid Cap Growth Fund	Common Stocks
Opening balance at November 1, 2015	$		147,384
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(22,108	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			125,276
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(22,108	)

Alger Mid Cap Growth Fund	Preferred Stocks
Opening balance at November 1, 2015	$		3,160,606
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(1,057,348	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			2,103,258
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(1,057,348	)

- 153 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
	Special Purpose
Alger Mid Cap Growth Fund			Vehicle
Opening balance at November 1, 2015	$		314,956
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			12,315
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			327,271
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		12,315

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger SMid Cap Growth Fund	Common Stocks
Opening balance at November 1, 2015	$		731,790
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(109,769	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			622,021
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(109,769	)

- 154 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger SMid Cap Growth Fund	Preferred Stocks
Opening balance at November 1, 2015	$		6,273,187
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			342,306
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			6,615,493
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		342,306

Alger SMid Cap Growth Fund			Rights
Opening balance at November 1, 2015	$		–
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			–
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			–
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		—
*Alger SMid Cap Growth Fund’s Level 3 rights are fair valued at zero at the beginning and ending of
the period.

- 155 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Small Cap Growth Fund	Preferred Stocks
Opening balance at November 1, 2015	$		675,194
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(279,189	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			396,005
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(279,189	)

Alger Small Cap Growth Fund			Rights
Opening balance at November 1, 2015	$		–*
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			–
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			–
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		–*
*Alger Small Cap Growth Fund’s Level 3 rights are fair valued at zero at the beginning and ending of
the period.

- 156 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
	Special Purpose
Alger Small Cap Growth Fund			Vehicle
Opening balance at November 1, 2015	$		290,078
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			11,342
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			301,420
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		11,342

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Small Cap Focus Fund	Preferred Stocks
Opening balance at November 1, 2015	$		59,052
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(2,733	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			56,319
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(2,733	)

- 157 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Health Sciences Fund	Common Stocks
Opening balance at November 1, 2015	$		143,719
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			–
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			143,719
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		–

Alger Health Sciences Fund	Preferred Stocks
Opening balance at November 1, 2015	$		9,317,970
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(3,067,522	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			6,250,448
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(3,067,522	)

Alger Health Sciences Fund			Rights
Opening balance at November 1, 2015	$		–*
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			–
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		–*
*Alger Health Sciences Fund’s Level 3 rights are fair valued at zero at the beginning and ending of the
period.

- 158 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Growth & Income Fund	Common Stocks
Opening balance at November 1, 2015	$		2,127
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(2,127	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			–
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(2,127	)

Alger Growth & Income Fund	Corporate Bonds
Opening balance at November 1, 2015	$		–
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			15,270
Purchases and sales			–
Purchases			15
Sales			–
Closing balance at October 31, 2016			15,285
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		15,270

Alger Growth & Income Fund	Preferred Stocks
Opening balance at November 1, 2015	$		55,821
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(3,173	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2016			52,648
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(3,173	)

- 159 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Growth & Income Fund			Warrants
Opening balance at November 1, 2015	$		–
Transfers into Level 3			–
Transfers out of Level 3			–
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(290	)
Purchases and sales			–
Purchases			15,269
Sales			–
Closing balance at October 31, 2016			14,979
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$		(290	)

The following table provides quantitative information about our Level 3 fair value
measurements of our investments as of October 31, 2016. In addition to the techniques
and inputs noted in the table below, according to our valuation policy we may also use other
valuation techniques and methodologies when determining our fair value measurements.
The table below is not intended to be all-inclusive, but rather provides information on the
Level 3 inputs as they relate to our fair value measurements.

- 160 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		Fair Value	Valuation	Unobservable		Weighted
		October 31, 2016	Methodology	Input	Input/Range	Average Inputs
Alger Capital Appreciation Fund
Common Stocks	$	-	Income	Discount Rate	40%	N/A
			Approach
Common Stocks		1,172,607	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Preferred Stocks		973,474	Income	Discount Rate	40%	N/A
			Approach
Preferred Stocks		4,373,941	Market Approach	Scenario	80 to 100%	N/A
				Probability
				Time to Exit	1.0-2.5 Years
				Volatility	67.8%
Preferred Stocks		5,405,299	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Warrants		379,752	Income	Discount Rate	40%	N/A
			Approach
Corporate Bonds		387,502	Income	Discount Rate	40%	N/A
			Approach
Alger Mid Cap Growth Fund
Common Stocks		125,276	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Preferred Stocks		577,483	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Preferred Stocks		1,525,775	Income	Discount Rate	20.5-39.5%	30.57%
			Approach
Special Purpose Vehicle		327,271	Market Approach	Revenue Multiple	2.6x-3.1x	N/A

Alger SMid Cap Growth Fund
Common Stocks		622,021	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Preferred Stocks		2,867,296	Income	Revenue Multiple	10-18xx	N/A
			Approach	Discount Rate	20%

- 161 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


			Scenario	10-50%
			Probability
			Time to Exit	1.3-3.3 Years
Preferred Stocks	2,813,042	Market Approach	Scenario	80 to 100%	N/A
			Probability
			Time to Exit	1.0-2.5 Years
			Volatility	67.8%
Preferred Stocks	935,155	Income	Discount Rate	35.5-39.5%	N/A
		Approach
Alger Small Cap Growth Fund
Preferred Stocks	396,005	Income	Discount Rate	20.5-39.5%	29.58%
		Approach
Special Purpose Vehicle	301,420	Market Approach	Revenue Multiple	2.6x-3.1x	N/A

Alger Small Cap Focus Fund
Preferred Stocks	43,294	Market Approach	Scenario	80 to 100%	N/A
			Probability
			Time to Exit	1.0-2.5 Years
			Volatility	67.8%
Preferred Stocks	13,025	Income	Discount Rate	20.5-21.5%	N/A
		Approach
Alger Health Sciences Fund
Common Stocks	143,719	Income	Discount Rate	30%	N/A
		Approach
Preferred Stocks	5,739,084	Income	Discount Rate	20.5-39.5%	31.4%
		Approach
Preferred Stocks	511,364	Market Approach	Scenario	80 to 100%	N/A
			Probability
			Time to Exit	1.0-2.5 Years
			Volatility	67.8%
Rights	-	Income	Discount Rate	30%	N/A
		Approach
Alger Growth & Income Fund
Common Stocks	-	Income	Discount Rate	40%	N/A
		Approach
Preferred Stocks	52,648	Income	Discount Rate	40%	N/A
		Approach
Warrants	14,979	Income	Discount Rate	40%	N/A
		Approach
Corporate Bonds	15,285	Income	Discount Rate	40%	N/A
		Approach

The significant unobservable inputs used in the fair value measurement of the Fund’s
securities are revenue and EBITDA multiples, discount rates, and the probabilities of
success of certain outcomes. Significant increases and decreases in these inputs in isolation
and interrelationships between those inputs could result in significantly higher or lower fair
value measurements than those noted in the table above.

On October 31, 2016, there were no transfers of securities between Level 1 and Level 2.
- 162 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which
approximates fair value for financial statement purposes. As of October 31, 2016, such
assets are categorized within the disclosure hierarchy as follows:


		TOTAL FUND		LEVEL 1		LEVEL 2	LEVEL 3
Cash, Foreign cash and Cash equivalents:
Alger Capital Appreciation Fund	$	90,377,212		$	—	90,377,212		—
Alger International Growth Fund			6,280,099		899,742	5,380,357		—
Alger Mid Cap Growth Fund		11,757,523			—	11,757,523		—
Alger SMid Cap Growth Fund			650		—	650		—
Alger Small Cap Growth Fund			4,355,350		—	4,355,350		—
Alger Small Cap Focus Fund			2,348,224		—	2,348,224		—
Alger Health Sciences Fund			869,862		—	869,862		—
Alger Growth & Income Fund			2,127,842		339,244	1,788,598		—

NOTE 9 — Derivatives:
Financial Accounting Standards Board Accounting Standards Codification 815 – Derivatives
and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for
using derivatives, quantitative disclosures about fair value amounts of and gains and losses
on derivative instruments, and disclosures about credit-risk-related contingent features in
derivative agreements.

Options—The Funds seek to capture the majority of the returns associated with equity
market investments. To meet this investment goal, the Funds invest in a broadly diversified
portfolio of common stocks, while also buying and selling call and put options on equities
and equity indices. The Funds purchase call options to increase their exposure to the stock
market and also provide diversification of risk. The Funds purchase put options in order
to protect from significant market declines that may occur over a short period of time. The
Funds will write covered call and cash secured put options to generate cash flows while
reducing the volatility of the Funds’ portfolios. The cash flows may be an important source
of the Funds’ returns, although written call options may reduce the Funds’ ability to profit
from increases in the value of the underlying security or equity portfolio. The value of a
call option generally increases as the price of the underlying stock increases and decreases
as the stock decreases in price. Conversely, the value of a put option generally increases
as the price of the underlying stock decreases and decreases as the stock increases in price.
The combination of the diversified stock portfolio and the purchase and sale of options
is intended to provide the Funds with the majority of the returns associated with equity
market investments but with reduced volatility and returns that are augmented with the cash
flows from the sale of options. During the year ended October 31, 2016, options were used
in accordance with these objectives.

The Funds’ option contracts were not subject to any rights of offset with any counterparty.
All of the Funds’ options were exchange traded which utilize a clearing house that acts as an
intermediary between buyer and seller, receiving initial and maintenance margin from both,
and guaranteeing performance of the option contract.

- 163 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

There were no open derivative instruments as of October 31, 2016.

NOTE 10 — Principal Risks:
As of October 31, 2016, the Funds invested a significant portion of their assets in securities
in the health care and information technology sectors. Changes in economic conditions
affecting such sectors would have a greater impact on the Funds and could affect the value,
income and/or liquidity of positions in such securities.

In the normal course of business, the Funds invest in securities and enter into transactions
where risks exist due to fluctuations in the market (market risk) or failure of the issuer
of a security to meet all its obligations (issuer credit risk). The value of securities held by
the Funds may decline in response to certain events, including those directly involving the
issuers whose securities are owned by the Funds; conditions affecting the general economy;
overall market changes; local, regional or global political, social or economic instability; and
currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may
be exposed to counterparty credit risk, or the risk that an entity with which the Funds have
unsettled or open transactions may fail to or be unable to perform on its commitments. The
Funds manage counterparty credit risk by entering into transactions only with counterparties
that they believe have the financial resources to honor their obligations and by monitoring
the financial stability of those counterparties. Financial assets, which potentially expose
the Funds to market, issuer and counterparty credit risks, consist principally of financial
instruments and receivables due from counterparties. The extent of the Funds’ exposure to
market, issuer and counterparty credit risks with respect to these financial assets is generally
approximated by its value recorded in the Statement of Assets and Liabilities, less any
collateral held by the Funds.

The Funds invest in companies that are not yet available in the public markets and that are
accessible only through private equity investments. The Funds may also invest in venture
capital or private equity funds, direct private equity investments and other investments that
may have limited liquidity. There may be no trading market for these securities, and their sale
or transfer be limited or prohibited by contract or legal requirements, or may be dependent
on an exit strategy, such as an initial public offering or the sale of a business, which may
not occur, or may be dependent on managerial assistance provided by other investors and
their willingness to provide additional financial support. The securities may be able to be
liquidated, if at all, at disadvantageous prices. As a result, the Funds may be required to hold
these positions for several years, if not longer, regardless of adverse price movements. Such
positions may cause the Funds to be less liquid than would otherwise be the case.

NOTE 11 — Affiliated Securities:
The issuers of the securities listed below are deemed to be affiliates of the Funds because
the Funds or their affiliates owned 5% or more of the issuer’s voting securities during all
or part of the year ended October 31, 2016. Purchase and sale transactions and dividend
income earned during the period were as follows:

- 164 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	Shares/
	Par at			Shares/Par at		Realized		Value at
	October	Purchases/	Sales/	October 31,	Interest	Gain		October
Security	31, 2015	Conversion	Conversion	2016	Income (Loss)			31, 2016


Alger Capital Appreciation Fund
Common Stocks
Choicestream, Inc.*	82,955	—	—	82,955	—	—	$	0
Preferred Stocks
Choicestream, Inc., Series
A and B*	2,365,288	—	—	2,365,288	—	—		973,474
Corporate Bonds
Choicestream, Inc., 11.0%,
8/05/18	—	387,502	—	387,502	3,503	—		387,502
Warrants
Choicestream, Inc., 6/22/26*	—	387,502	—	387,502	—	—		379,752
Alger Mid Cap Growth Fund
Preferred Stocks
Prosetta Biosciences, Inc.,
Series D*	219,610	—	—	219,610	—	—		887,225
Tolero Pharmaceuticals, Inc,
Series B*	495,000	—	—	495,000	—	—		638,550
Alger SMid Cap Growth Fund
Preferred Stocks
Prosetta Biosciences, Inc.,
Series D *	231,474	—	—	231,474	—	—		935,155
Alger Small Cap Growth Fund
Preferred Stocks
Prosetta Biosciences, Inc.,
Series D *	50,688	—	—	50,688	—	—		204,779
Tolero Pharmaceuticals, Inc.,
Series B*	148,237	—	—	148,237	—	—		191,226
Alger Small Cap Focus Fund
Preferred Stocks
Tolero Pharmaceuticals, Inc.,
Series B*	10,097	—	—	10,097	—	—		13,025
Alger Health Sciences Fund
Preferred Stocks
Prosetta Biosciences, Inc.,
Series D *	897,366	—	—	897,366	—	—		3,625,359
Tolero Pharmaceuticals, Inc.,
Series B*	1,638,547	—	—	1,638,547	—	—		2,113,725


Alger Growth & Income Fund
Common Stocks
Choicestream, Inc.*	5,064	—	—	5,064	—	—		0
Preferred Stocks

- 165 -

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	Shares/
	Par at			Shares/Par at		Realized	Value at
	October	Purchases/	Sales/	October 31,	Interest	Gain	October
Security	31, 2015	Conversion	Conversion	2016	Income	(Loss)	31, 2016
Choicestream, Inc., Series
A and B*	132,906	—	—	132,906	—	—	52,648
Corporate Bonds
Choicestream, Inc., 11.0%,
8/05/18	—	15,285	—	15,285	138	—	15,285
Warrants
Choicestream, Inc., 6/22/26*	—	15,285	—	15,285	—	—	14,979

*Non-income producing security.

NOTE 12 — Subsequent Events:
Management of each Fund has evaluated events that have occurred subsequent to October
31, 2016 through the issuance date of the Financial Statements. No such events have been
identified which require recognition and/or disclosure other than the conversion of the
Alger Heath Sciences Fund Class B shares to Alger Health Sciences Class A shares and the
Alger SMid Cap Growth Fund Class B shares to Alger SMid Cap Growth Fund Class A
shares effective November 29, 2016.

- 166 -

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of The Alger Funds and Shareholders of Alger Capital
Appreciation Fund, Alger International Growth Fund, Alger Mid Cap Growth Fund, Alger
SMid Cap Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund,
Alger Health Sciences Fund, and Alger Growth & Income Fund:

We have audited the accompanying statements of assets and liabilities, including the
schedules of investments, of The Alger Funds, comprised of the Alger Capital Appreciation
Fund, Alger International Growth Fund, Alger Mid Cap Growth Fund, Alger SMid Cap
Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger Health
Sciences Fund, and Alger Growth & Income Fund (the “Funds”) as of October 31, 2016,
and the related statements of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended, and the financial highlights
for each of the periods presented. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. The Funds are not required to have,
nor were we engaged to perform, an audit of their internal control over financial reporting.
Our audits included consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Funds' internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2016, by correspondence with the
custodian and brokers; when replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present
fairly, in all material respects, the financial position of each of the portfolios constituting
The Alger Funds as of October 31, 2016, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America.

Deloitte & Touche LLP
New York, New York
December 29, 2016

- 167 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited)

Shareholder Expense Example

As a shareholder of a Fund, you incur two types of costs: transaction costs, if applicable,
including sales charges (loads) and redemption fees; and ongoing costs, including
management fees, distribution (12b-1) fees, if applicable, and other fund expenses. This
example is intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in other mutual
funds.

The example below is based on an investment of $1,000 invested at the beginning of the
six-month period starting May 1, 2016 and ending October 31, 2016.

Actual Expenses
The first line for each class of shares in the table below provides information about actual
account values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you would have paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first line under the
heading entitled “Expenses Paid during the Period” to estimate the expenses you paid on
your account during this period.

Hypothetical Example for Comparison Purposes
The second line for each class of shares in the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund’s actual expense
ratios for each class of shares and an assumed rate of return of 5% per year before expenses,
which is not the Fund’s actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs
only and do not reflect any transaction costs, such as sales charges (loads) and redemption
fees. Therefore, the second line under each class of shares in the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your costs would
have been higher.

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THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


									Annualized
						Expenses			Expense Ratio
						Paid During				For the
		Beginning			Ending	the Six Months			Six Months
			Account		Account		Ended			Ended
			Value		Value	October 31,			October 31,
		May 1, 2016			October 31, 2016		2016	^(a)		2016	^(b)
Alger Capital Appreciation Fund
Class A	Actual	$	1,000.00	$	1,042.01	$	6.26			1.22	%
	Hypothetical^(c)		1,000.00		1,019.00		6.19			1.22
Class B	Actual		1,000.00		1,038.17	10.45				2.04
	Hypothetical^(c)		1,000.00		1,014.88	10.33				2.04
Class C	Actual		1,000.00		1,038.00	10.14				1.98
	Hypothetical^(c)		1,000.00		1,015.18	10.03				1.98
Class Z	Actual		1,000.00		1,044.37		4.57			0.89
	Hypothetical^(c)		1,000.00		1,020.66		4.52			0.89

Alger International Growth Fund
Class A	Actual	$	1,000.00	$	991.16	$	6.81			1.35	%
	Hypothetical^(c)		1,000.00		1,018.30		6.90			1.35
Class B	Actual		1,000.00		988.39	10.30				2.06
	Hypothetical^(c)		1,000.00		1,014.78	10.43				2.06
Class C	Actual		1,000.00		987.30	10.74				2.14
	Hypothetical^(c)		1,000.00		1,014.33	10.89				2.14
Class I	Actual		1,000.00		991.82		5.76			1.15
	Hypothetical^(c)		1,000.00		1,019.36		5.84			1.15
Class Z	Actual		1,000.00		993.26		4.46			0.89
	Hypothetical^(c)		1,000.00		1,020.66		4.52			0.89

Alger Mid Cap Growth Fund
Class A	Actual	$	1,000.00	$	1,018.98	$	6.75			1.33	%
	Hypothetical^(c)		1,000.00		1,018.45		6.75			1.33
Class B	Actual		1,000.00		1,014.80	10.38				2.05
	Hypothetical^(c)		1,000.00		1,014.83	10.38				2.05
Class C	Actual		1,000.00		1,014.94	10.94				2.16
	Hypothetical^(c)		1,000.00		1,014.28	10.94				2.16
Class Z	Actual		1,000.00		1,019.92		5.13			1.02
	Hypothetical^(c)		1,000.00		1,020.06		5.13			1.02

- 169 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


									Annualized
						Expenses			Expense Ratio
						Paid During				For the
		Beginning			Ending	the Six Months			Six Months
			Account		Account		Ended			Ended
			Value		Value	October 31,			October 31,
		May 1, 2016			October 31, 2016		2016	^(a)		2016	^(b)
Alger SMid Cap Growth Fund
Class A	Actual	$	1,000.00	$	1,040.08	$	6.92			1.35	%
	Hypothetical^(c)		1,000.00		1,018.35		6.85			1.35
Class B	Actual		1,000.00		1,032.62	12.06				2.35
	Hypothetical^(c)		1,000.00		1,013.27		11.94			2.35
Class C	Actual		1,000.00		1,036.11		11.06			2.15
	Hypothetical^(c)		1,000.00		1,014.28	10.94				2.15
Class I	Actual		1,000.00		1,041.31		6.41			1.25
	Hypothetical^(c)		1,000.00		1,018.85		6.34			1.25
Class Z	Actual		1,000.00		1,042.49		5.24			1.01
	Hypothetical^(c)		1,000.00		1,020.01		5.18			1.01

Alger Small Cap Growth Fund
Class A	Actual	$	1,000.00	$	1,058.52	$	7.14			1.38	%
	Hypothetical^(c)		1,000.00		1,018.20		7.00			1.38
Class B	Actual		1,000.00		1,053.45		11.25			2.18
	Hypothetical^(c)		1,000.00		1,014.18		11.04			2.18
Class C	Actual		1,000.00		1,052.75		11.51			2.22
	Hypothetical^(c)		1,000.00		1,013.93		11.29			2.22
Class Z	Actual		1,000.00		1,060.91		5.13			0.99
	Hypothetical^(c)		1,000.00		1,020.16		5.03			0.99

Alger Small Cap Focus Fund
Class A	Actual	$	1,000.00	$	1,116.00	$	6.65			1.25	%
	Hypothetical^(c)		1,000.00		1,018.85		6.34			1.25
Class C	Actual		1,000.00		1,112.92	10.52				1.99
	Hypothetical^(c)		1,000.00		1,015.18	10.03				1.99
Class I	Actual		1,000.00		1,116.10		6.54			1.23
	Hypothetical^(c)		1,000.00		1,018.95		6.24			1.23
Class Z	Actual		1,000.00		1,118.33		5.38			1.01
	Hypothetical^(c)		1,000.00		1,020.06		5.13			1.01

- 170 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


										Annualized
							Expenses			Expense Ratio
							Paid During				For the
		Beginning				Ending	the Six Months			Six Months
			Account			Account		Ended			Ended
			Value			Value	October 31,			October 31,
		May 1, 2016			October 31, 2016			2016	^(a)		2016	^(b)
Alger Health Sciences Fund
Class A	Actual	$	1,000.00	$		987.05	$	7.04			1.41	%
	Hypothetical^(c)		1,000.00		1,018.05			7.15			1.41
Class B	Actual		1,000.00			983.24		11.47			2.29
	Hypothetical^(c)		1,000.00		1,013.57			11.64			2.29
Class C	Actual		1,000.00			983.33	10.92				2.18
	Hypothetical^(c)		1,000.00		1,014.13			11.09			2.18
Class Z	Actual		1,000.00			989.43		4.95			0.99
	Hypothetical^(c)		1,000.00		1,020.16			5.03			0.99

Alger Growth & Income Fund
Class A	Actual	$	1,000.00	$	1,033.39		$	5.83			1.14	%
	Hypothetical^(c)		1,000.00		1,019.41			5.79			1.14
Class C	Actual		1,000.00		1,029.71			9.59			1.88
	Hypothetical^(c)		1,000.00		1,015.69			9.53			1.88
Class Z	Actual		1,000.00		1,035.00			4.45			0.87
	Hypothetical^(c)		1,000.00		1,020.76			4.42			0.87

(a) Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account
value over the period, multiple by 184/366 (to reflect the one-half year period).
(b) Annualized.
(c) 5% annual return before expenses.
Tax Information
In accordance with subchapter M of the Internal Revenue Code of 1986, as amended, for
the year ended October 31, 2016, 8.42% of the Alger Health Sciences Fund, and 100.00%
of the Alger Growth & Income Fund’s dividends qualified for the dividends received
deduction for corporations. For the year ended October 31, 2016, certain dividends paid by
the Funds may be subject to a maximum rate of 15%, as provided by the Jobs and Growth
Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year,
100.00% of the Alger International Growth Fund, 8.15% of the Alger Health Sciences
Fund, and 100.00% of the Alger Growth & Income Fund’s dividends may be considered
qualified dividend income.

Shareholders should not use the above information to prepare their tax returns. Since the
Fund’s fiscal year is not the calendar year, another notification will be sent with respect to
calendar year 2016. Such notification, which will reflect the amount to be used by tax payers
on their federal income tax returns, will be made in conjunction with Form 1099 DIV and
will be mailed in January 2017. Shareholders are advised to consult their own tax advisers
with respect to the tax consequences of their investment in the Fund.

- 171 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Trustees and Officers of the Trust
Information about the trustees and officers of the Trust is set forth below. In the table the
term “Alger Fund Complex” refers to the Trust, The Alger Portfolios, The Alger Institutional
Funds, Alger Global Growth Fund and The Alger Funds II, each of which is a registered
investment company managed by Fred Alger Management, Inc. (“Alger Management”).
Each Trustee serves until an event of termination, such as death or resignation, or until his
or her successor is duly elected; each officer’s term of office is one year. Unless otherwise
noted, the address of each person named below is 360 Park Avenue South, New York, NY
10010.

- 172 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


			Number
			of Funds
			in the
			Alger Fund
		Trustee	Complex
		and/or	which are
Name, Age, Position with the		Officer	Overseen
Trust	Principal Occupations	Since	by Trustee
INTERESTED TRUSTEE

Hilary M. Alger (54)	Director of Development, Pennsylvania Ballet	2003	25
	2004-2013; Associate Director of Development,
	College of Arts and Sciences and Graduate School,
	University of Virginia 1999-2003.
NON-INTERESTED TRUSTEE

Charles F. Baird, Jr. (63)	Managing Partner of North Castle Partners, a	2000	25
	private equity securities group; Chairman of
	Elizabeth Arden Red Door Spas and Barry’s
	Bootcamp, former Chairman of Cascade Helmets,
	gloProfessional (makeup and skincare business),
	Contigo (manufacturer of mugs and water bottles),
	and International Fitness.
Roger P. Cheever (71)	Associate Vice President for Principal Gifts, and	2000	25
	Senior Associate Dean for Development in the
	Faculty of Arts and Sciences at Harvard University;
	Formerly Deputy Director of the Harvard College
	Fund.
Stephen E. O'Neil (83)	Attorney. Private Investor since 1981. Formerly of	1986	25
	Counsel to the law firm of Kohler & Barnes.
David Rosenberg (54)	Associate Professor of Law since January 2006	2007	25
	(Assistant Professor 2000-2005), Zicklin School of
	Business, Baruch College, City University of New
	York.
Nathan E. Saint-Amand	Medical doctor in private practice; Member of the	1986	25
M.D. (78)	Board of the Manhattan Institute (non-profit policy
	research) since 1988; Formerly Co-Chairman, Special
	Projects Committee, Memorial Sloan Kettering.

Ms. Alger is an “interested person” (as defined in the Investment Company Act) of the
Trust because of her affiliations with Alger Management. No Trustee is a director of any
public company except as indicated under “Principal Occupations”.

- 173 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


			Number
			of Funds
			in the
			Alger Fund
		Trustee	Complex
		and/or	which are
Name, Age, Position with the		Officer	Overseen
Trust	Principal Occupations	Since	by Trustee
OFFICERS

Hal Liebes (52)	Executive Vice President, Chief Operating Officer,	2005	N/A
President	Chief Legal Officer and Secretary of Alger
	Management and Alger Inc.; Director since 2006 of
	Alger Management, Alger Inc. and Resources.
Lisa A. Moss (51)	Senior Vice President since 2009, and Vice	2006	N/A
Secretary	President and Assistant General Counsel of Alger
	Management since June 2006.
Michael D. Martins (51)	Senior Vice President of Alger Management;	2005	N/A
Treasurer	Assistant Treasurer since 2004.
Anthony S. Caputo (61)	Employed by Alger Management since 1986,	2007	N/A
Assistant Treasurer	currently serving as Vice President.
Sergio M. Pavone (55)	Employed by Alger Management since 2002,	2007	N/A
Assistant Treasurer	currently serving as Vice President.
Patrick J. Murphy (46)	Senior Vice President of Alger Management since	2014	N/A
Chief Compliance Officer	2014. Formerly, Vice President of Compliance,
	Fidelity Investments from 2005 to 2014.
Christopher E. Ullman (31)	Associate Counsel of Alger Management since	2016	N/A
Assistant Secretary	2016. Formerly, Associate, Legal and Compliance,
	BlackRock from 2015 to 2016; Compliance
	Associate, Bridgewater Associates, from 2013 to
	2014; and full-time student fro m 2010 to 2013.

The Statement of Additional Information contains additional information about the Funds’
Trustees and is available without charge upon request by calling (800) 992-3863.

- 174 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Investment Management Agreement Renewal
At an in-person meeting held on September 27, 2016, the Trustees, including the Independent
Trustees, unanimously approved renewal of the Investment Advisory Agreement (the
“Agreement”) between the Trust and Fred Alger Management, Inc. (“Alger Management”).
The Independent Trustees were assisted in their review by independent legal counsel and met
with such counsel in executive session separate from representatives of Alger Management.

In evaluating the Agreement, the Trustees drew on materials that they had requested and
which were provided to them in advance of the meeting by Alger Management and by
counsel. The materials covered, among other matters, (i) the nature, extent and quality
of the services provided by Alger Management under the Agreement, (ii) the investment
performance of each of the Trust’s portfolios (each a “Fund”), (iii) the costs to Alger
Management of its services and the profits realized by Alger Management and Fred Alger
& Company, Incorporated (“Alger Inc.”), from their relationship with the Trust, and (iv)
the extent to which economies of scale would be realized if and as the Funds grow and
whether the fee levels in the Agreement reflected such economies of scale. These materials
included a presentation and analysis of the Funds and Alger Management’s services by
FUSE Research Network LLC (“FUSE”), an independent consulting firm selected by the
Trust’s Chief Compliance Officer and having no other material relationship with Alger
Management or its affiliates.

In deciding whether to approve renewal of the Agreement, the Trustees considered various
factors, including those enumerated above. They also considered other direct and indirect
benefits to Alger Management and its affiliates from their relationship with the Trust.

Nature, Extent and Quality of Services. In considering the nature, extent and quality of
the services provided by Alger Management pursuant to the Agreement, the Trustees relied
on their prior experience as Trustees of the Trust, their familiarity with the personnel and
resources of Alger Management and its affiliate (derived in part from quarterly meetings with
and presentations by Fund investment management and distribution personnel), and the
materials provided at the meeting. They noted that under the Agreement Alger Management
is responsible for managing the investment operations of the Funds. The Trustees reviewed
the background and experience of Alger Management's senior investment management
personnel, including the individuals currently responsible for the investment operations
of the Funds. They also considered the resources and practices of Alger Management
in managing each Fund's portfolio, as well as Alger Management's overall investment
management business. They noted especially Alger Management's history of expertise in
managing portfolios of "growth" stocks and that, according to an analysis provided by FUSE,
the characteristics of each Fund had been consistent with those of a growth-oriented fund. .
They further noted that Alger Management’s investment management team includes several
individuals with deep and successful backgrounds in international investing, a sector in
which the International Growth Fund is active, and that during the year Alger Management
had continued its ongoing efforts to strengthen its investment management team through
strategic hires, realignment of portfolio management responsibilities, and similar measures.
The Trustees concluded that Alger Management's experience, resources and strength in the
- 175 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

areas of importance to the Funds are considerable. The Trustees considered the level and
depth of Alger Management's ability to execute portfolio transactions to effect investment
decisions, including those through Alger Inc. They also noted that certain administrative,
compliance, reporting and accounting services necessary for the conduct of the Trust’s
affairs are provided separately under a Fund Administration Agreement and a Shareholder
Administrative Services Agreement with Alger Management. The Trustees also considered
the control and compliance environment at Alger Management and within the Trust.

Investment Performance of the Funds. Drawing upon information provided at the
meeting by Alger Management as well as FUSE and upon reports provided to the Trustees
by Alger Management throughout the preceding year, the Trustees reviewed each Fund’s
returns for the year-to-date (at 6/30/16), second-quarter of 2016, 1-, 3-, and 5-year and longer
periods to the extent available (and its year-by-year returns), together with supplemental
performance data through 8/31/16, and compared them with benchmark and peer-group
data for the same periods. They noted that several Funds – the Mid Cap, SMid Cap, Small
Cap, International Growth and Health Sciences Funds -- showed disappointing performance
against their peers and generally, with isolated exceptions, against their benchmarks from the
year-to-date (at 6/30/16) through 3-year periods, placing in the third or fourth quartile
against their peers and generally below their benchmarks. Of these, the Small Cap Fund
– possibly reflecting earlier changes of portfolio managers – and SMid Cap Fund, whose
performance had already shown signs of improvement as measured in the year-to-date, one-
year and three-year periods, surpassed their peer medians and benchmarks for the quarter
ended 6/30/16, raising hopes of continued improvement over their earlier shortfalls. The
Mid Cap, International Growth and Health Sciences Funds also showed modest, although
limited, improvement against peer medians and benchmarks for the quarter ended 6/30/16.
The Capital Appreciation Fund’s performance, while still enjoying first-quartile long-term
status against its peers for the 3- and 5-year periods, had fallen below its peer medians and
benchmark for all of the shorter (quarter-end through 1-year) periods. The Growth &
Income Fund had placed well within the second quartile or just above the median for its
peers for all periods through 5 years, albeit below its benchmarks in the same intervals. The
Small Cap Focus Fund, having been recently reconstituted from the Growth Opportunities
Fund on August 7, 2015, showed superior performance against peers and benchmark in its
only rated periods - year to date and quarter-end.

As had been the practice at every quarterly meeting of Trustees throughout the year,
representatives of Alger Management discussed with the Trustees the recent performance
of each Fund and the measures that the firm was in the process of instituting or had
instituted to improve the performance of Funds that had consistently underperformed.
In expanding orally on the written materials they had provided to the Trustees, the FUSE
representatives commented further on the performance of the various Funds, discussing,
among other things, how differences among funds in a peer group can distort the picture
that a fund’s performance ranking may suggest. Throughout, the Trustees were mindful of
the point, alluded to in the discussion, that the current market in equity securities favors
dividend-paying equities rather than pure growth stocks, a trend directly contrary to the
Alger investment approach and tending to depress the prices of growth stocks as compared

- 176 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

with those of dividend stocks. On the basis of their review and these discussions, including
especially a discussion of measures to address the underperformance of certain Funds and
signs that even some underperforming Funds were improving, the Trustees determined that
the performance of the Funds was acceptable.

Fund Fees and Expense Ratios; Profitability to Alger Management and its Affiliates.
The Trustees reviewed each Fund's management fee and expense ratio and compared them
with those of a group of comparable funds. In order to assist the Trustees in this comparison,
FUSE had provided the Trustees with comparative information with respect to the advisory
fees and expense ratios of similar funds. That information indicated that the advisory fees
of all but one of the Funds were below or close to the median for the applicable FUSE
reference group, with only the fee for the Capital Appreciation Fund significantly exceeding
the median of Fund’s reference group. The Trustees expected that that fee, just within the
threshold of the top quartile of peer-fund fees, would eventually be diminished somewhat
by operation of the Fund’s fee breakpoints, two of which had recently been added by Alger
Management and the Trustees on June 1, 2016. Of the 33 expense ratios for the Funds’
various share classes, 13 were below or virtually at their peer medians and six more were
just above the applicable median; of the remaining 14, all but nine (the Class A, B, and C
Shares of the Capital Appreciation Fund, the Class A and C Shares of the Mid Cap Fund,
the C Shares of the SMid Cap Fund, the A Shares of the Small Cap Fund, the Z Shares of
the Small Cap Focus Fund and the Class A Shares of the Growth & Income Fund) were
for Fund classes of small asset size that suffered thereby in comparison to their Funds’
peers. The Trustees noted that only one (the Mid Cap Fund C Shares, with only $22.7
million in assets) of the nine remaining expense ratios was in the top quartile. The Trustees
determined that the expense-ratio information should be taken into account in weighing the
size of the fee against the nature, extent and quality of the services provided.

The Trustees also considered fees paid to Alger Management by four other types of clients,
specifically mutual funds for which Alger Management acted as sub-adviser, separately
managed institutional accounts, “wrap programs,” and collective investment trusts. The
Trustees determined that in all four cases the fees were of doubtful relevance for purposes
of comparison with those of the Funds because of the differences in services provided
by Alger Management to those types of clients as opposed to the Funds, but that to the
extent that meaningful comparison was practicable, the differences in services adequately
explained the differences in the fees. The Trustees then considered the profitability
of the Investment Advisory Agreement to Alger Management and its affiliates, and the
methodology used by Alger Management in determining such profitability. The Trustees
reviewed previously-provided data on each Fund's profitability to Alger Management and
its affiliates for the year ended June 30, 2016. After discussing with representatives of Alger
Management and FUSE the expense-allocation practices, which FUSE reported to be
consistent with accepted industry practice, used in computing the costs that formed the
bases of the profitability calculations, the Trustees turned to the profitability data provided.
After analysis and discussion, they concluded in each case that, to the extent that Alger
Management’s and its affiliates’ relationships with the Fund had been profitable, the profit
margin was not unacceptable.
- 177 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Economies of Scale. On the basis of their discussions with management and their
analysis of information provided at the meeting, the Trustees determined that the nature of
the Funds and their operations is such that Alger Management is likely to realize economies
of scale in the management of each Fund at some point as (and if) it grows in size. In
that connection, they noted that the advisory fee schedules in the Agreement include fee
reductions for each Fund (other than the Alger Small Cap Focus Fund) at specified Fund asset
levels (“breakpoints”), including additional breakpoints added for the Capital Appreciation
Fund at June 1, 2016; these have the effect of lowering a Fund’s overall management fee
as the Fund grows past a breakpoint, thus sharing with the Fund’s shareholders economies
of scale achieved by Alger Management in managing the growing Fund. The Alger Small
Cap Focus Fund, with assets at 8/31/16 of less than $170 million, and for which Alger
Management was waiving some of its management fees, was deemed too small realistically
to merit the institution of fee breakpoints.

Other Benefits to Alger Management. The Trustees considered whether Alger
Management benefits in other ways from its relationship with the Trust. They noted that
Alger Management maintains soft-dollar arrangements in connection with the Funds'
brokerage transactions, reports on which are regularly supplied to the Trustees at their
quarterly meetings and summaries of which, listing commissions by Fund for the twelve
months through June 30, 2016, had been included in the materials supplied prior to the
meeting. The Trustees also noted that Alger Management receives fees from the Funds
under the Fund Administration Agreement and the Shareholder Administrative Services
Agreement, and that Alger Inc. provides a considerable portion of the Funds' equity
brokerage and receives shareholder servicing fees from the Funds as well. The Trustees
had been provided with information regarding, and had considered, the administration fee,
shareholder administrative services fee, brokerage and shareholder servicing fee benefits in
connection with their review of the profitability to Alger Management and its affiliates of
their relationships with the Funds. As to other benefits received, the Trustees decided that
none were so significant as to render Alger Management's fees excessive.

Conclusions and Determinations. At the conclusion of these discussions, each of the
Independent Trustees expressed the opinion that he had been furnished with sufficient
information to make an informed business decision with respect to renewal of the
Investment Advisory Agreement. Based on its discussions and considerations as described
above, the Board made the following conclusions and determinations in respect of each
Fund:

• The Board concluded that the nature, extent and quality of the services provided
to the Fund by Alger Management are adequate and appropriate.
• The Board determined that the Fund’s performance was acceptable.
• The Board concluded that the advisory fee paid to Alger Management by the
Fund was reasonable in light of comparative performance and expense and advi-
sory fee information, costs of the services provided and profits to be realized and
benefits derived or to be derived by Alger Management and its affiliates from the
relationship with the Fund. In the case of certain Funds, the Trustees noted that
- 178 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Alger Management had undertaken to cap Fund expenses through expense re-
imbursements and fee waivers, thus in effect lowering the fees it actually received
from the Fund.
• With respect to each Fund other than the small Alger Small Cap Focus Fund, the
Board accepted Alger Management’s acknowledgement that economies of scale
were likely to be achieved in the management of the Fund as (and if) it grew in
size and determined that the fee breakpoints in the Agreement provided a means
by which Alger Management would share the benefits of such economies with
Fund shareholders.

The Board considered these conclusions and determinations and, without any one factor
being dispositive, determined with respect to each Fund that renewal of the Investment
Advisory Agreement was in the best interests of the Fund and its shareholders.

- 179 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Privacy Policy
U.S. Consumer Privacy Notice Rev. 12/20/16


FACTS	WHAT DOES ALGER DO WITH YOUR PERSONAL INFORMATION?


Why?	Financial companies choose how they share your personal information. Federal law
	gives consumers the right to limit some but not all sharing. Federal law also requires us
	to tell you how we collect, share, and protect your personal information. Please read this
	notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service
	you have with us.
	This information can include:
	• Social Security number and
	• Account balances and
	• Transaction history and
	• Purchase history and
	• Assets
	When you are no longer our customer, we continue to share your information as
	described in this notice.
How?	All financial companies need to share personal information to run their everyday business.
	In the section below, we list the reasons financial companies can share personal
	information; the reasons Alger chooses to share; and whether you can limit this sharing.


Reasons we can share your personal	Does	Can you limit
information	Alger share?	this sharing?
For our everyday business purposes —	Yes	No
such as to process your transactions, maintain
your account(s), respond to court orders and
legal investigations, or report to credit bureaus
For our marketing purposes — to offer our	Yes	No
products and services to you
For joint marketing with other financial	No	We don’t share
companies
For our affiliates’ everyday business	Yes	No
purposes — information about your
transactions and experiences
For our affiliates’ everyday business	No	We don’t share
purposes — information about your
creditworthiness
For nonaffiliates to market to you	No	We don’t share
Questions? Call 1-800-342-2186

- 180 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


Who we are

Who is providing this notice?	Alger includes Fred Alger Management, Inc. and Fred
	Alger & Company, Incorporated as well as the following
	funds: The Alger Funds, The Alger Funds II, The Alger
	Institutional Funds, The Alger Portfolios, and Alger
	Global Growth Fund.


What we do
How does Alger	To protect your personal information from unauthorized
protect my personal	access and use, we use security measures that comply
information?	with federal law. These measures include computer
	safeguards and secured files and buildings.
How does Alger	We collect your personal information, for example,
collect my personal	when you:
information?	• Open an account or
	• Make deposits or withdrawals from your account or
	• Give us your contact information or
	• Provide account information or
	• Pay us by check.


Why can’t I limit all sharing?	Federal law gives you the right to limit
	• sharing for affiliates’ everyday business purposes
	information about your credit worthiness
	• affiliates from using your information to market to you
	• sharing for nonaffiliates to market to you
	State laws and individual companies may give you
	additional rights to limit sharing.


Definitions
Affiliates	Companies related by common ownership or control.
	They can be financial and nonfinancial companies.
	• Our affiliates include Fred Alger Management, Inc.
	and Fred Alger & Company, Incorporated as well as the
	following funds: The Alger Funds, The Alger Funds II,
	The Alger Institutional Funds, The Alger Portfolios, and
	Alger Global Growth Fund.
Nonaffiliates	Companies not related by common ownership or
	control. They can be financial and nonfinancial
	companies
Joint marketing	A formal agreement between nonaffiliated financial
	companies that together market financial products or
	services to you.
Other important information

- 181 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Proxy Voting Policies
A description of the policies and procedures the Fund uses to determine how to vote
proxies relating to portfolio securities and the proxy voting record is available, without
charge, by calling (800) 992-3863 or online on the Fund’s website at http://www.alger.com
or on the SEC’s website at http://www.sec.gov.

Fund Holdings
The Board of Trustees has adopted policies and procedures relating to disclosure of the
Funds’ portfolio securities. These policies and procedures recognize that there may be
legitimate business reasons for holdings to be disclosed and seek to balance those interests
to protect the proprietary nature of the trading strategies and implementation thereof by
the Funds.

Generally, the policies prohibit the release of information concerning portfolio holdings
which have not previously been made public to individual investors, institutional investors,
intermediaries that distribute the Funds’ shares and other parties which are not employed
by the Manager or its affiliates except when the legitimate business purposes for selective
disclosure and other conditions (designed to protect the Funds) are acceptable.

The Funds make their full holdings available semi-annually in shareholder reports filed on
Form N-CSR and after the first and third fiscal quarters in regulatory filings on Form N-Q.
These shareholder reports and regulatory filings are filed with the SEC, as required by federal
securities laws, and are generally available within sixty (60) days of the end of the Funds’
fiscal quarter. The Funds’ Forms N-Q are available online on the SEC’s website at www.
sec.gov or may be reviewed and copied at the SEC’s Public Reference Room in Washington,
D.C. Information regarding the operation of the SEC’s Public Reference Room may be
obtained by calling 1-800-SEC-0330.

In addition, the Funds make publicly available their respective month-end top 10 holdings
with a 15 day lag and their month-end full portfolios with a 60 day lag on their website www.
alger.com and through other marketing communications (including printed advertising/
sales literature and/or shareholder telephone customer service centers). No compensation
or other consideration is received for the non-public disclosure of portfolio holdings
information.

In accordance with the foregoing, the Funds provide portfolio holdings information to
service providers who provide necessary or beneficial services when such service providers
need access to this information in the performance of their services and are subject to
duties of confidentiality (1) imposed by law, including a duty not to trade on non-public
information, and/or (2) pursuant to an agreement that confidential information is not to be
disclosed or used (including trading on such information) other than as required by law. From
time to time, the Funds will communicate with these service providers to confirm that they
understand the Funds’ policies and procedures regarding such disclosure. This agreement
must be approved by the Funds’ Chief Compliance Officer, President or Secretary.

- 182 -

THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

The Board of Trustees periodically reviews a report disclosing the third parties to whom
each Fund’s holdings information has been disclosed and the purpose for such disclosure,
and it considers whether or not the release of information to such third parties is in the best
interest of the Fund and its shareholders.

In addition to material the Funds routinely provide to shareholders, the Manager may,
upon request, make additional statistical information available regarding the Funds. Such
information will include, but not be limited to, relative weightings and characteristics of a
Fund portfolios versus its peers or an index (such as P/E ratio, alpha, beta, capture ratio,
standard deviation, EPS forecasts, Sharpe ratio, information ratio, R-squared, and market
cap analysis), security specific impact on overall portfolio performance, month-end top
ten contributors to and detractors from performance, breakdown of High Unit Volume
Growth holdings vs. Positive Lifecycle Change holdings, portfolio turnover, and requests
of a similar nature. Please contact the Funds at (800) 992-3863 to obtain such information.

- 183 -

THE ALGER FUNDS

360 Park Avenue South
New York, NY 10010
(800) 992-3863
www.alger.com

Investment Manager

Fred Alger Management, Inc.
360 Park Avenue South
New York, NY 10010

Distributor

Fred Alger & Company, Incorporated
360 Park Avenue South
New York, NY 10010

Transfer Agent and Dividend Disbursing Agent

State Street Bank and Trust Company
c/o Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266-8480

Custodian

Brown Brothers Harriman & Company
50 Post Office Square
Boston, MA 02110

This report is submitted for the general information of the shareholders of The Alger
Funds. It is not authorized for distribution to prospective investors unless accompanied by
an effective Prospectus for the Trust, which contains information concerning the Trust’s
investment policies, fees and expenses as well as other pertinent information.

- 184 -

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its
principal executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended its Code of Ethics during the period covered by the
shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its
Code of Ethics during the period covered by the shareholder report presented in Item 1
hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as an Exhibit hereto.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the Registrant determined that Stephen E. O’Neil is an audit committee
financial expert (within the meaning of that phrase specified in the instructions to Form N-CSR)
on the Registrant’s audit committee. Mr. O’Neil is an “independent” trustee – i.e., he is not an
interested person of the Registrant as defined in the Investment Company Act of 1940, nor has
he accepted directly or indirectly any consulting, advisory or other compensatory fee from the
Registrant, other than in his capacity as Trustee.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.


a) Audit Fees:
October 31, 2016	$	273,600
October 31, 2015	$	268,000

b) Audit-Related Fees: NONE

c) Tax Fees for tax advice, tax compliance and tax planning:


October 31, 2016	$	61,539
October 31, 2015	$	55,439

d) All Other Fees:
October 31, 2016	$	15,360
October 31, 2015	$	10,100

Other fees include a review and consent for Registrants registration statement filing and
a review of the semi-annual financial statements.

e) 1) Audit Committee Pre-Approval Policies And Procedures:

Audit and non-audit services provided by the Registrant’s independent registered public
accounting firm (the “Auditors”) on behalf the Registrant must be pre-approved by the
Audit Committee. Non-audit services provided by the Auditors on behalf of the
Registrant’s Investment Adviser or any entity controlling, controlled by, or under

common control with the Investment Adviser must be pre-approved by the Audit
Committee if such non-audit services directly relate to the operations or financial
reporting of the Registrant.

2) All fees in item 4(b) through 4(d) above were approved by the Registrants’ Audit
Committee.

f) Not Applicable

g) Non-Audit Fees:


October 31, 2016	$	219,975	, €93,631
October 31, 2015	$	191,042	, €69,347

h) The audit committee of the board of trustees has considered whether the provision of the
non-audit services that were rendered to the registrant's investment adviser and any entity
controlling, controlled by, or under common control, with the adviser that provides ongoing
services to the registrant that were not approved pursuant to (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principle accountant's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable

ITEM 6. INVESTMENTS.

Not applicable

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.

Not applicable

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY
AND AFFILIATED PURCHASERS.

Not applicable

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

ITEM 11. CONTROLS AND PROCEDURES.

(a) The Registrant’s principal executive officer and principal financial officer have concluded
that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act of 1940, as amended) are effective based on their evaluation
of the disclosure controls and procedures as of a date within 90 days of the filing date of
this document.

(b) No changes in the Registrant’s internal control over financial reporting occurred during
the Registrant’s second fiscal half-year that materially affected, or are reasonably likely to
materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1) Code of Ethics as Exhibit 99.CODE ETH

(a) (2) Certifications of principal executive officer and principal financial officer as required by
rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT

(b) Certifications of principal executive officer and principal financial officer as required by rule
30a-2(b) under the Investment Company Act of 1940 are attached as Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

The Alger Funds

By: /s/Hal Liebes

Hal Liebes

President

Date: December 21, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.

By: /s/Hal Liebes

Hal Liebes

President

Date: December 21, 2016


	Alger International
COUNTRY	Growth Fund
Australia	3.5	%
Brazil	1.7
Canada	6.8
China	7.7
France	6.6
Germany	7.4
Hong Kong	3.6
India	2.1
Indonesia	1.5
Ireland	3.2
Israel	0.4
Italy	0.6
Japan	13.5
Mexico	0.5
Netherlands	4.7
Norway	0.8
South Korea	1.2
Spain	1.9
Sweden	1.3
Switzerland	6.2
Taiwan	2.8
United Kingdom	12.0
United States	5.6
Cash and Net Other Assets	4.4
	100.0	%