-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UbZbplYXL1RETk3qCPAFg/OUDfaN6efQZCoOD41i4nZimxOKcXdRCky2OJXsnU9F YWgWGMUst9IGYATLiZhZHg== 0000930413-98-000685.txt : 19980708 0000930413-98-000685.hdr.sgml : 19980708 ACCESSION NUMBER: 0000930413-98-000685 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980430 FILED AS OF DATE: 19980707 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALGER FUND CENTRAL INDEX KEY: 0000003521 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-01355 FILM NUMBER: 98661205 BUSINESS ADDRESS: STREET 1: 75 MAIDEN LN CITY: NEW YORK STATE: NY ZIP: 10038 BUSINESS PHONE: 2128068800 N-30D 1 SEMI-ANNUAL REPORT ================================================================================ [LOGO] THE | ALGER | Meeting the challenge FUND | of investing Alger Growth Portfolio Alger Small Capitalization Portfolio Alger Balanced Portfolio Alger MidCap Growth Portfolio Alger Capital Appreciation Portfolio Alger Money Market Portfolio | SEMI-ANNUAL | April 30, 1998 REPORT | (Unaudited) | ================================================================================ The Alger Fund 75 Maiden Lane New York, N.Y. 10038 (800) 992-3863 www.algerfund.com - -------------------------------------------------------------------------------- Board of Trustees Fred M. Alger, CHAIRMAN David D. Alger Arthur M. Dubow Stephen E. O'Neil Nathan E. Saint-Amand John T. Sargent - -------------------------------------------------------------------------------- Investment Manager Fred Alger Management, Inc. 75 Maiden Lane New York, N.Y. 10038 - -------------------------------------------------------------------------------- Distributor Fred Alger & Company, Incorporated 30 Montgomery Street Jersey City, N.J. 07302 - -------------------------------------------------------------------------------- Transfer Agent Alger Shareholder Services, Inc. 30 Montgomery Street Jersey City, N.J. 07302 - -------------------------------------------------------------------------------- This report is submitted for the general information of the shareholders of The Alger Fund. It is not authorized for distribution to prospective investors unless accompanied by an effective Prospectus for the Fund, which contains information concerning the Fund's investment policies, fees and expenses as well as other pertinent information. REP 4/8 FELLOW SHAREHOLDERS: May 29, 1998 A YEAR-TO-DATE REVIEW At the start of 1998, expectations that the turmoil in Asia would dampen economic growth in the U.S. led investors to conclude that inflationary pressures in the near term would remain muted and, therefore, the Federal Reserve would leave monetary policy unchanged. As a result, the fixed-income markets remained tranquil. Long-term interest rates during the first three months of the year remained in a narrow 5.75% to 6.00% trading range, following the gradual decline in long-term interest rates since April 1997. In addition to the positive backdrop of low inflation, stable interest rates, and a neutral monetary policy, signs of a resilient domestic economy and greater stability in overseas financial markets formed the foundation for continued gains in the stock market. Ironically, the financial crisis in Asia, which was supposed to slow the U.S. economy, contributed to the unexpected strength in the economy. The economic downturn in Asia was supposed to slow the American economy through reduced export demand and to curtail inflation through lower import prices. U.S. exports to Asian markets have been dropping and import prices have been falling, but the weakness in Asia also helped to keep American long-term interest rates at comparatively low levels. Low long-term interest rates, plus very good weather (there was a mild winter in the East due to El Nino), led to a boom in consumer spending in January and February. Housing sales remained brisk and massive mortgage refinancing occurred. The result was a 4.2% increase in GDP in the first quarter, twice the desired rate and even higher than the very high 3.7% in the fourth quarter of 1997. By the end of March, the monthly economic indicators were already signaling that the economy was growing too fast--above the 2.5% target the Fed outlined several years ago as the ideal non-inflationary growth rate. Worse yet, there were few signs of the impending slowdown that most forecasters had predicted. The economy continued to create new jobs, so an already tight labor market got even tighter. The rate of unemployment fell to 4.3% which is considered by many economists to be an unsustainable and inflationary level. These numbers led many to speculate that the Federal Reserve would raise rates at the May Federal Open-Market Committee meeting or this summer (probably July) to offset future inflation. This would be an obvious case for higher rates if there were any inflation. However, inflation continued to drop. At the same time, political uncertainty and social unrest in Indonesia renewed instability in the Asian financial markets. As a result, investors sought shelter in the relative safety of the U.S. Treasury market, and long-term interest rates, despite concerns of a Fed tightening, remained steady. The stock market entered a narrow trading range, roughly equivalent to 9,000 to 9,200 for the Dow Jones Industrial Average. The cessation of the strong upward movement also reflects the natural tendency of the market to consolidate its gains. As upcoming reports document slower growth and continued low inflation, fears of a Fed tightening should begin to recede. Continued reports of low inflation should also alleviate underlying worries about a possible acceleration in inflation and interest rates on bonds should decline as the economy slows. We expect the rate on the thirty-year bond to be below 5.50% by year-end, possibly as low as 5.25%. Under those circumstances, the stock market should continue to add to the gains of the first four months of 1998. Our models also show that growth stocks are selling with very little premium to the market. This should change as the market advances and the economy slows, which should make this year exceptionally good for growth stocks. Small and mid cap stocks should also benefit. Given this, we remain extremely optimistic about the prospects for all of The Alger Fund's Portfolios. Respectfully submitted, /s/ David D. Alger ------------------------ David D. Alger President - -------------------------------------------------------------------------------- TABLE OF CONTENTS - -------------------------------------------------------------------------------- Alger Growth Portfolio: Schedule of Investments.......................... 4-5 Financial Highlights............................. 6-7 Alger Small Capitalization Portfolio: Schedule of Investments.......................... 8-9 Financial Highlights............................. 10-11 Alger Balanced Portfolio: Schedule of Investments.......................... 12-13 Financial Highlights............................. 14-15 Alger MidCap Growth Portfolio: Schedule of Investments.......................... 16-17 Financial Highlights............................. 18-19 Alger Capital Appreciation Portfolio: Schedule of Investments.......................... 20-21 Financial Highlights............................. 22-23 Alger Money Market Portfolio: Schedule of Investments.......................... 24-25 Financial Highlights............................. 26 Statements of Assets and Liabilities................................... 27 Statements of Operations............................................... 28 Statement of Cash Flows (Alger Capital Appreciation Portfolio)......... 29 Statements of Changes in Net Assets.................................... 30-31 Notes to Financial Statements.......................................... 32-37 -4- THE ALGER FUND ALGER GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1998 COMMON STOCKS--95.0% SHARES VALUE ------ ----- APPLIANCES & TOOLS--.8% Black & Decker Corp.............. 62,500 $ 3,226,563 ----------- BROADCASTING--1.7% CBS Corp.........................201,000 7,160,625 ----------- BUILDING & CONSTRUCTION--2.5% Masco Corp.......................188,200 10,915,600 ----------- BUSINESS SERVICES--2.9% Cognizant Corp...................163,500 8,410,113 H&R Block Inc.................... 93,300 4,198,500 ----------- 12,608,613 ----------- COMMUNICATIONS--4.8% America Online Inc.*.............135,200 10,816,000 WorldCom Inc.*...................228,900 9,792,571 ----------- 20,608,571 ----------- COMMUNICATION EQUIPMENT--2.9% Ascend Communications, Inc.*.....115,700 5,040,239 Cisco Systems, Inc.*............. 99,650 7,299,362 ----------- 12,339,601 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--4.4% Compaq Computer Corp.............233,100 6,541,485 International Business Machines Corp. ................ 38,200 4,426,425 Xerox Corp....................... 70,300 7,979,050 ----------- 18,946,960 ----------- COMPUTER SERVICES--1.1% Network Associates Inc.*......... 68,500 4,692,250 ----------- COMPUTER SOFTWARE--4.9% Compuware Corp.*................. 84,800 4,144,600 HBO & Company.................... 94,500 5,652,329 Microsoft Corporation*...........124,700 11,238,588 ----------- 21,035,517 ----------- CONGLOMERATE--2.1% Tyco International Ltd...........162,094 8,834,123 ----------- CONTAINERS--.9% Owens-Illinois Inc.*............. 98,800 3,908,824 ----------- DRUG DISTRIBUTION--3.0% AmeriSource Health Corp. Cl.A*... 57,500 3,133,750 Cardinal Health, Inc............. 67,000 6,448,750 McKesson Corp.................... 45,000 3,180,960 ----------- 12,763,460 ----------- ENERGY & ENERGY SERVICES--1.0% AES Corp.*....................... 81,100 $ 4,475,747 ----------- FINANCIAL SERVICES--16.4% BankAmerica Corp................. 71,500 6,077,500 Bank of New York Inc.............188,100 11,109,750 Chase Manhattan Corp............. 46,000 6,373,898 Federal Home Loan Mortgage Corporation....................104,100 4,821,183 First Union Corp.................156,272 9,434,922 Household International Inc...... 64,100 8,425,176 Kansas City Southern Industries Inc. ............... 90,000 4,066,920 Morgan Stanley Dean Witter & Co..142,900 11,271,238 NationsBank Corp................. 80,300 6,082,725 Schwab (Charles) Corporation (The) ............. 73,600 2,576,000 ----------- 70,239,312 ----------- FOOD CHAINS--3.5% Kroger Co.*......................100,500 4,208,438 Safeway Inc.*....................284,400 10,878,300 ----------- 15,086,738 ----------- INSURANCE--6.2% American International Group, Inc. ................... 84,150 11,071,026 MGIC Investment Corp............. 66,500 4,189,500 Travelers Group Inc..............187,500 11,472,750 ----------- 26,733,276 ----------- LEISURE & ENTERTAINMENT--3.6% Carnival Corporation Cl. A.......137,000 9,530,131 International Game Technology....222,300 6,182,830 ----------- 15,712,961 ----------- MEDICAL DEVICES--1.8% Guidant Corp..................... 55,500 3,711,563 Medtronic, Inc................... 76,200 4,010,025 ----------- 7,721,588 ----------- PHARMACEUTICALS--11.2% Bristol Myers Squibb Co.......... 95,000 10,058,125 Eli Lilly & Company.............. 64,100 4,458,988 Pfizer Inc....................... 40,200 4,575,283 Schering-Plough Corporation......170,600 13,669,325 Warner-Lambert Co................ 80,900 15,305,309 ----------- 48,067,030 ----------- POLLUTION CONTROL--1.3% USA Waste Services, Inc.*........110,000 5,396,930 ----------- -5- THE ALGER FUND ALGER GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1998 COMMON STOCKS--(cont.) SHARES VALUE ------ ----- RETAILING--8.9% CVS Corp......................... 79,500 $ 5,863,125 Home Depot, Inc..................175,050 12,187,856 Kmart Corp.*.....................148,500 2,589,543 Staples Inc.*....................238,800 5,895,494 Wal-Mart Stores Inc..............232,800 11,771,066 ----------- 38,307,084 ----------- SEMICONDUCTORS--2.7% Intel Corp.......................118,300 9,560,178 Micron Technology Inc.*.......... 68,400 2,124,709 ----------- 11,684,887 ----------- TOYS--2.1% Mattel Inc.......................238,200 9,126,157 ----------- TRANSPORTATION--4.3% AMR Corp.*....................... 78,200 11,915,725 Burlington Northern Santa Fe Co.. 65,600 6,494,400 ----------- 18,410,125 ----------- Total Common Stocks (Cost $315,876,086)............ 408,002,542 ----------- PREFERRED STOCK--1.1% COMMUNICATION EQUIPMENT Nokia Corporation, ADR (Cost $3,518,259).............. 73,000 4,881,875 ----------- SHORT-TERM CORPORATE PRINCIPAL NOTES--3.8% AMOUNT VALUE ---------- ------ Merrill Lynch & Co., Inc., 5.53%, 5/12/98.................$8,000,000 $ 7,986,482 Trident Capital Finance Inc., 5.54%, 5/15/98 (a)............. 8,300,000 8,282,118 ------------ Total Short-Term Corporate Notes (Cost $16,268,600)............. 16,268,600 ------------ Total Investments (Cost $335,662,945)(b)......... 99.9% 429,153,017 Other Assets In Excess of Liabilities ................... .1 264,850 ----- ------------ Net Assets....................... 100.0% $429,417,867 ===== ============ * Non-income producing security (a)Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. (b)At April 30, 1998, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $335,662,945 amounted to $93,490,072 which consisted of aggregate gross unrealized appreciation of $95,849,877 and aggregate gross unrealized depreciation of $2,359,805. See Notes to Financial Statements -6- THE ALGER FUND ALGER GROWTH PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS B(i) ------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------- 1998(vi)(vii) 1997 1996 1995 1994 1993 ------------- ---- ---- ---- ---- ---- Net asset value, beginning of period.......... $ 11.50 $ 9.49 $ 9.38 $ 6.97 $ 7.43 $ 5.76 Net investment income (loss).................. (.03) (.13) (.08)(ii) (.02) (.07)(ii) (.02) Net realized and unrealized gain (loss) on investments............................. 1.70 2.44 .78 2.59 .35 1.70 ------- ------ ------ ------ ------ ------ Total from investment operations.............. 1.67 2.31 .70 2.57 .28 1.68 Distributions from net realized gains......... (1.49) (.30) (.59) (.16) (.74) (.01) ------- ------ ------ ------ ------ ------ Net asset value, end of period................ $ 11.68 $ 11.50 $ 9.49 $ 9.38 $ 6.97 $ 7.43 ======= ======= ====== ====== ====== ====== Total Return (iii)............................ 17.3% 24.9% 8.1% 37.8% 4.1% 29.2% ======= ======= ====== ====== ====== ====== Ratios and Supplemental Data: Net assets, end of period (000's omitted)..........................$ 332,924 $304,984 $266,207 $154,284 $ 76,390 $ 37,988 ======= ======= ====== ====== ====== ====== Ratio of expenses to average net assets............................... 2.01% 2.08% 2.08% 2.09% 2.20% 2.20% ======= ======= ====== ====== ====== ====== Ratio of net investment income (loss) to average net assets.................... (1.01%) (1.13%) (.84%) (1.03%) (1.01%) (1.16%) ======= ======= ====== ====== ====== ====== Portfolio Turnover Rate..................... 60.77% 128.26% 94.91% 118.16% 103.86% 108.54% ======= ======= ====== ====== ====== ====== Average Commission Rate Paid................ $ .0727 $ .0699 $ .0715 ======= ======= ======
- ---------------- See footnotes on page 7. -7- THE ALGER FUND ALGER GROWTH PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS A (v)(vi) CLASS C (iv)(vi) -------------------------------- -------------------------------- SIX MONTHS TEN MONTHS SIX MONTHS THREE MONTHS ENDED ENDED ENDED ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 1998(vii) 1997 1998(vii) 1997 -------- ----------- ---------- ----------- Net asset value, beginning of period.......... $ 11.58 $ 9.40 $ 11.50 $ 11.98 ------- ------ ------- ------- Net investment income (loss).................. -- (.02) (.05) (.02) Net realized and unrealized gain (loss) on investments............................. 1.73 2.20 1.72 (.46) ------- ------ ------- ------- Total from investment operations.............. 1.73 2.18 1.67 (.48) Distributions from net realized gains......... (1.49) -- (1.49) -- ------- ------ ------- ------- Net asset value, end of period................ $ 11.82 $ 11.58 $ 11.68 $ 11.50 ======= ======= ======= ======= Total Return (iii)............................ 17.7% 23.2% 17.3% (4.0%) ======= ======= ======= ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted).......................... $ 95,118 $ 52,307 $ 1,376 $ 199 ======= ======= ======= ======= Ratio of expenses to average net assets............................... 1.26% 1.30% 2.02% 2.02% ======= ======= ======= ======= Ratio of net investment income (loss) to average net assets.................... (.27%) (.39%) (1.07%) (1.43%) ======= ======= ======= ======= Portfolio Turnover Rate..................... 60.77% 128.26% 60.77% 128.26% ======= ======= ======= ======= Average Commission Rate Paid................ $ .0727 $ .0699 $ .0727 $ .0699 ======= ======= ======= =======
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred September 27, 1995. (ii) Amount was computed based on average shares outstanding during the year. (iii) Does not reflect the effect of any sales charges. (iv) Initially offered August 1, 1997. (v) Initially offered January 1, 1997. (vi) Ratios have been annualized; total return has not been annualized. (vii) Unaudited. See Notes to Financial Statements. -8- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1998 COMMON STOCKS--89.7% SHARES VALUE ------ ----- AEROSPACE--1.4% Aviall Inc.*.................. 217,500 $ 3,045,000 Thiokol Corporation........... 74,000 3,986,750 TriStar Aerospace Co.*........ 120,000 1,980,000 ----------- 9,011,750 ----------- APPAREL--3.0% Brylane Inc.*................. 180,800 10,622,000 Dan River Inc. Cl. A*......... 265,300 5,123,739 St. John Knits Inc............ 65,000 2,900,625 ----------- 18,646,364 ----------- BIO-TECHNOLOGY--2.2% IDEC Pharmaceuticals Corporation*................ 145,500 5,238,000 INCYTE Pharmaceuticals, Inc.*. 192,700 8,671,500 ----------- 13,909,500 ----------- BUSINESS SERVICES--3.1% Cognizant Corp................ 146,500 7,535,667 Rent-Way Inc.*................ 192,000 6,024,000 United Stationers Inc.*....... 93,000 5,870,625 ----------- 19,430,292 ----------- COMMUNICATIONS--4.3% America Online Inc.*.......... 85,000 6,800,000 Jacor Communications Inc.*.... 180,500 10,265,938 Outdoor Systems, Inc.*........ 311,050 9,875,837 ----------- 26,941,775 ----------- COMMUNICATION EQUIPMENT--1.9% Ascend Communications, Inc.*.. 201,200 8,764,876 Visual Networks, Inc.*........ 91,500 3,030,938 ----------- 11,795,814 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--.9% Essex International Inc.*..... 162,400 5,826,100 ----------- COMPUTER SERVICES--4.1% Keane Inc.*................... 84,500 4,246,125 Network Associates Inc.*...... 100,000 6,850,000 QuickResponse Service Inc.*... 103,800 4,878,600 Technology Solutions Co.*..... 227,500 7,308,438 Transaction Network Services Inc.* ............. 139,800 2,848,425 ----------- 26,131,588 ----------- COMPUTER SOFTWARE--3.7% CBT Group PLC ADS*............ 169,500 8,623,312 Compuware Corp.*.............. 130,000 6,353,750 Saville Systems PLC ADR*...... 172,600 8,608,425 ----------- 23,585,487 ----------- CONSUMER PRODUCTS--2.0% Central Garden & Pet Co.*..... 117,400 4,020,950 Furniture Brands International Inc.* ........ 114,500 3,363,437 Pittway Corp. Cl. A........... 68,800 5,142,800 ----------- 12,527,187 ----------- CONTAINERS--.1% Owens-Illinois Inc.*.......... 20,000 791,260 ----------- DRUG DISTRIBUTION--4.1% AmeriSource Health Corp Cl. A* ................ 134,500 7,330,250 Bergen Brunswig Corp. Cl. A... 84,800 3,847,800 McKesson Corp................. 130,000 9,189,440 Omnicare, Inc................. 166,700 5,709,475 ----------- 26,076,965 ----------- FINANCIAL SERVICES--7.1% CMAC Investment Corp.......... 131,300 8,477,122 Commerce Bancshares Inc....... 69,652 3,412,947 Dime Community Bancorp, Inc... 103,100 3,163,933 Finova Group Inc.............. 73,000 4,275,099 Kansas City Southern Industries Inc.............. 159,000 7,184,892 National Commerce Bancorp..... 100,000 4,475,000 North Fork Bancorp Inc........ 133,100 4,941,338 Sovereign Bancorp Inc......... 206,400 3,895,800 Wilmington Trust Corp......... 81,000 5,234,625 ----------- 45,060,756 ----------- FOOD CHAINS--2.3% Fred Meyer, Inc.*............. 191,600 8,598,050 Whole Foods Market Inc.* ..... 93,000 5,754,375 ----------- 14,352,425 ----------- FOODS & BEVERAGES--6.6% CKE Restaurants Inc........... 175,480 6,075,995 Earthgrains Company........... 211,400 9,882,950 Flowers Industries Inc........ 297,000 6,348,375 Interstate Bakeries Corp...... 160,300 5,079,586 Keebler Foods Co.*............ 162,000 4,617,000 Suiza Foods Corp.*............ 67,000 3,969,750 U.S. Foodservice*............ 157,200 5,551,204 ----------- 41,524,860 ----------- INSURANCE--3.7% Enhance Financial Services Group Inc................... 86,000 5,901,750 Executive Risk Inc............ 95,100 6,342,029 Fremont General Corp.......... 52,200 2,910,150 Vesta Insurance Group Inc..... 146,000 8,267,250 ----------- 23,421,179 ----------- LEISURE & ENTERTAINMENT--2.4% Family Golf Centers Inc.*..... 188,000 7,919,500 International Game Technology. 132,000 3,671,315 Premier Parks Inc.*........... 70,000 3,893,750 ----------- 15,484,565 ----------- -9- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1998 SHARES VALUE ------ ----- MANUFACTURING--2.1% Knoll Inc.*................... 176,100 $ 6,130,569 Leggett & Platt Inc........... 77,100 4,004,420 Scotsman Industries Inc....... 100,000 2,862,500 ----------- 12,997,489 ----------- MEDICAL DEVICES--3.5% Biomet Inc.................... 240,000 7,200,000 ESC Medical Systems Ltd.*..... 170,900 5,554,250 Ocular Sciences Inc.*......... 141,200 3,953,600 Safeskin Corp.*............... 155,800 5,550,375 ----------- 22,258,225 ----------- MEDICAL SERVICES--5.2% Express Scripts Inc. Cl. A*... 70,000 5,600,000 Hooper Holmes Inc............. 205,200 4,835,127 Impath Inc.*.................. 85,000 3,166,250 Lincare Holdings Inc.*........ 100,000 8,112,500 MedQuist Inc.*................ 143,600 7,000,500 VWR Scientific Products Corp.* ............ 120,000 3,945,000 ----------- 32,659,377 ----------- OIL & GAS--.7% Varco International Inc.*..... 149,000 4,581,750 ----------- PHARMACEUTICALS--4.0% Alza Corp.*................... 124,400 5,963,487 Elan Corp PLC-ADR*............ 163,600 10,163,650 Forest Laboratories, Inc.*.... 262,200 9,488,494 ----------- 25,615,631 ----------- PUBLISHING--.8% Ziff-Davis Inc.*.............. 270,000 4,860,000 ----------- POLLUTION CONTROL--1.2% USA Waste Services, Inc.*..... 152,000 7,457,575 ----------- RESTAURANTS & LODGING--1.2% Outback Steakhouse, Inc.*..... 111,600 4,254,750 Showbiz Pizza Time, Inc.*..... 93,800 3,623,025 ----------- 7,877,775 ----------- RETAILING--13.9% BJ's Wholesale Club Inc.*..... 173,500 6,950,931 Bed Bath & Beyond Inc.*....... 134,400 6,619,200 Bon-Ton Stores Inc.*.......... 187,300 3,067,038 Borders Group Inc.*........... 238,600 7,665,025 Dress Barn Inc.*.............. 151,300 4,406,613 Elder-Beerman Stores Corp.*... 133,500 3,604,500 Family Dollar Stores Inc...... 174,400 5,929,600 Finish Line (The) Inc Cl. A*.. 150,000 3,712,500 Kmart Corp.*.................. 310,000 5,405,780 Linens'n Things Inc.*......... 102,500 6,175,625 Michaels Stores Inc.*......... 276,800 8,373,200 Pacific Sunwear of California Inc.* ........... 80,000 3,530,000 Proffitt's Inc.*.............. 160,000 6,360,000 Stage Stores, Inc.*........... 145,300 7,473,941 Sunglass Hut International Inc.* ........ 290,500 2,778,052 WestPoint Stevens Inc.*....... 180,600 6,050,100 ----------- 88,102,105 ----------- SEMICONDUCTORS--.5% Micron Technology Inc.*....... 101,600 3,156,001 ----------- TRANSPORATION--3.7% Coach USA Inc.*............... 200,900 9,530,294 Continental Airlines Inc. Cl. B* ....... 124,000 7,300,500 SkyWest Inc................... 157,800 6,390,900 ----------- 23,221,694 ----------- Total Common Stocks (Cost $443,646,444)......... 567,305,489 ----------- SHORT-TERM CORPORATE PRINCIPAL NOTES--10.9% AMOUNT --------- Merrill Lynch & Co., Inc.,.... 5.53%, 5/12/98..............$23,000,000 22,961,136 Three Rivers Funding Corp., 5.55%, 5/14/98 (a).......... 23,000,000 22,953,904 Trident Capital Finance Inc., 5.54%, 5/15/98 (a).......... 23,100,000 23,050,233 ----------- Total Short-Term Corporate Notes (Cost $68,965,273).......... 68,965,273 ----------- Total Investments (Cost $512,611,717) (b)..... 100.6% 636,270,762 Liabilities in Excess of Other Assets (.6) (3,629,620) ----- ----------- Net Assets.................... 100.0% $632,641,142 ----- ------------ * Non-income producing security. (a) Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. (b) At April 30 1998, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $512,611,717, amounted to $ 123,659,045 which consisted of aggregate gross unrealized appreciation of $126,933,524 and aggregate gross unrealized depreciation of $ 3,274,479. See Notes to Financial Statements. -10- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS B(i) ---------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ---------------------------------------------------- 1998(v)(vi) 1997 1996 1995 1994 1993 ----------- ---- ---- ---- ---- ---- Net asset value, beginning of period ......... $ 10.29 $ 10.86 $ 11.13 $ 7.62 $ 8.65 $ 6.88 -------- -------- -------- -------- -------- ------ Net investment income (loss).................. (.09) (.11) (.09) (.13) (.09) (.08) Net realized and unrealized gain (loss) on investments............................. .76 1.28 .42 3.64 (.02) 1.85 -------- -------- -------- -------- -------- ------ Total from investment operations.............. .67 1.17 .33 3.51 (.11) 1.77 Distributions from net realized gains......... (.51) (1.74) (.60) -- (.92) -- -------- -------- -------- -------- -------- ------ Net asset value, end of period................ $ 10.45 $ 10.29 $ 10.86 $ 11.13 $ 7.62 $ 8.65 ======== ======== ======== ======== ======== ======== Total Return (ii)............................. 7.3% 12.9% 3.2% 46.2% (1.1%) 25.8% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted).......................... $577,316 $580,651 $553,872 $463,718 $294,890 $300,108 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets............................... 2.11% 2.14% 2.13% 2.11% 2.18% 2.13% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets............. (1.58%) (1.67%) (1.59%) (1.75%) (1.51%) (1.52%) ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate..................... 88.19% 120.27% 153.35% 97.37% 131.86% 148.49% ======== ======== ======== ======== ======== ======== Average Commission Rate Paid................ $ .0671 $ .0652 $ .0611 ======== ======== ========
- ------------------- See footnotes on page 11. -11- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS A (iv)(v) CLASS C (iii)(v) -------------------------------- -------------------------------- SIX MONTHS TEN MONTHS SIX MONTHS THREE MONTHS ENDED ENDED ENDED ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 1998(vi) 1997 1998(vi) 1997 Net asset value, beginning of period.......... $ 10.35 $ 9.21 $ 10.29 $ 10.38 -------- -------- ------- -------- Net investment income (loss).................. (.01) (.04) (.01) (.03) Net realized and unrealized gain (loss) on investments............................. .74 1.18 .68 (.06) -------- -------- ------- -------- Total from investment operations.............. .73 1.14 .67 (.09) Distributions from net realized gains......... (.51) -- (.51) -- -------- -------- ------- -------- Net asset value, end of period................ $ 10.57 $ 10.35 $ 10.45 $ 10.29 ======== ======== ======= ======== Total Return (ii)............................. 7.8% 12.4% 7.3% (.9%) ======== ======== ======= ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted).......................... $ 52,650 $ 25,996 $ 2,675 $ 338 ======== ======== ======= ======== Ratio of expenses to average net assets............................... 1.36% 1.38% 2.11% 2.09% ======== ======== ======= ======== Ratio of net investment income (loss) to average net assets.................... (.81%) (.93%) (1.55%) (1.71%) ======== ======== ======= ======== Portfolio Turnover Rate..................... 88.19% 120.27% 88.19% 120.27% ======== ======== ======= ======== Average Commission Rate Paid................ $ .0671 $ .0652 $ .0671 $ .0652 ======== ======== ======= ========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred September 27, 1995. (ii) Does not reflect the effect of any sales charges. (iii) Initially offered August 1, 1997. (iv) Initially offered January 1, 1997. (v) Ratios have been annualized; total return has not been annualized. (vi) Unaudited. -12- THE ALGER FUND ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1998 COMMON STOCKS--67.3% SHARES VALUE ------ ----- APPLIANCES & TOOLS--1.0% Black & Decker Corp.............. 3,500 $ 180,687 --------- BROADCASTING--1.4% CBS Corp. ....................... 7,000 249,375 --------- BUILDING & CONSTRUCTION--1.7% Masco Corp....................... 5,000 290,000 --------- BUSINESS SERVICES--2.0% H&R Block Inc.................... 2,600 117,000 Cognizant Corp................... 4,400 226,327 --------- 343,327 --------- COMMUNICATIONS--3.4% America Online Inc.*............. 3,800 304,000 WorldCom Inc.*................... 6,300 269,520 --------- 573,520 --------- COMMUNICATION EQUIPMENT--2.4% Ascend Communications, Inc.*..... 3,300 143,758 Cisco Systems, Inc.*............. 3,550 260,038 --------- 403,796 COMPUTER RELATED & BUSINESS EQUIPMENT--2.9% Compaq Computer Corp............. 6,500 182,410 International Business Machines Corp. 1,100 127,462 Xerox Corp....................... 1,700 192,950 --------- 502,822 --------- COMPUTER SERVICES--.6% Network Associates Inc.*......... 1,400 95,900 --------- COMPUTER SOFTWARE--3.4% Compuware Corp.*................. 2,800 136,850 HBO & Company.................... 3,100 185,420 Microsoft Corporation*........... 2,900 261,362 --------- 583,632 --------- CONGLOMERATE--1.4% Tyco International Ltd........... 4,546 247,756 --------- DRUG DISTRIBUTION--1.8% AmeriSource Health Corp Cl. A*... 1,500 81,750 McKesson Corp.................... 3,200 226,202 --------- 307,952 --------- ENERGY & ENERGY SERVICES--.7% AES Corp.*....................... 2,200 121,414 --------- FINANCIAL SERVICES--12.4% Banc One Corp.................... 2,530 148,797 BankAmerica Corp................. 2,000 170,000 Bank of New York Inc............. 5,200 307,128 Chase Manhattan Corp............. 500 69,282 Federal Home Loan Mortgage Corporation.................... 3,700 171,357 First Union Corp................. 2,772 167,360 Household International Inc...... 1,700 223,445 Kansas City Southern Industries Inc. ............... 3,000 135,564 Morgan Stanley Dean Witter & Co.. 4,635 365,586 NationsBank Corp................. 2,300 174,225 Paine Webber Group Inc........... 2,450 109,792 Schwab (Charles) Corporation (The) ............. 2,050 71,750 --------- 2,114,286 --------- FOOD CHAINS--2.5% Kroger Co.*...................... 2,700 113,062 Safeway Inc.*.................... 8,000 306,000 --------- 419,062 --------- INSURANCE--4.3% American International Group, Inc. ................... 2,050 269,704 MGIC Investment Corp............. 1,900 119,700 Travelers Group Inc.............. 5,500 336,534 --------- 725,938 --------- LEISURE & ENTERTAINMENT--2.7% Carnival Corporation Cl. A....... 4,200 292,165 International Game Technology.... 6,200 172,441 --------- 464,606 --------- MEDICAL DEVICES--1.6% Guidant Corp..................... 2,400 160,500 Medtronic, Inc................... 2,000 105,250 --------- 265,750 --------- PHARMACEUTICALS--7.9% Bristol Myers Squibb Co.......... 3,100 328,212 Eli Lilly & Company.............. 1,700 118,257 Forest Laboratories, Inc.*....... 1,600 57,901 Pfizer Inc....................... 1,000 113,813 Schering-Plough Corporation...... 4,300 344,538 Warner-Lambert Co................ 2,000 378,376 --------- 1,341,097 --------- POLLUTION CONTROL--.9% USA Waste Services, Inc.*........ 3,000 147,188 --------- RETAILING--7.0% CVS Corp......................... 3,000 221,250 Home Depot, Inc.................. 5,000 348,125 Kmart Corp.*..................... 4,200 73,240 Staples Inc.*.................... 8,100 199,973 Wal-Mart Stores Inc.............. 6,800 343,828 --------- 1,186,416 --------- SEMICONDUCTORS--1.5% Intel Corp....................... 2,500 202,032 Micron Technology Inc.*.......... 1,900 59,020 --------- 261,052 --------- TOYS--1.5% Mattel Inc....................... 6,700 256,697 --------- -13- THE ALGER FUND ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1998 COMMON STOCKS--(cont.) SHARES VALUE ------ ----- TRANSPORTATION--2.3% AMR Corp.*....................... 1,600 $ 243,800 Burlington Northern Santa Fe Co.. 1,500 148,500 ----------- 392,300 ----------- Total Common Stocks (Cost $8,717,429).............. 11,474,573 ----------- PREFERRED STOCK--1.0% COMMUNICATION EQUIPMENT Nokia Corporation, ADR (Cost $125,202)................ 2,600 173,875 ----------- CORPORATE BONDS--13.4% PRINCIPAL AMOUNT --------- AUTOMOTIVE--3.4% Ford Motor Capital B.V., 9.50%, 6/1/10.................$300,000 366,654 General Motors Acceptance Corp., 7.125%, 6/1/99................ 200,000 202,254 ----------- 568,908 ----------- CONGLOMERATE--1.8% GE Capital Corp., 7.25%, 6/5/12..................300,000 301,101 ----------- ELECTRIC & GAS COMPANIES--2.8% Cincinnati Gas & Electric Co., 7.20%, 10/1/23.................100,000 99,320 Pacific Gas & Electric Co., 7.25%, 3/1/26..................182,000 185,216 Potomac Electric Power Co., 7.00%, 1/15/24.................200,000 201,162 ----------- 485,698 ----------- FINANCIAL SERVICES--4.2% BankAmerica Corp., 6.625%, 10/15/07...............200,000 201,072 Bankers Trust Corp., 7.00%, 3/13/18.................300,000 305,250 Citicorp., 7.125%, 6/1/03.................200,000 205,618 ----------- 711,940 ----------- POLLUTION CONTROL--1.2% Waste Management Inc., 8.25%, 11/15/99................200,000 205,908 ----------- Total Corporate Bonds (Cost $2,308,102) ............. 2,273,555 ----------- U.S. GOVERMENT & AGENCY OBLIGATIONS--15.7% U.S. Treasury Notes, 6.375%, 1/15/00............... 100,000 101,234 U.S. Treasury Notes, 7.50%, 5/15/02.................100,000 106,500 U.S. Treasury Notes, 6.25%, 2/15/03.................250,000 255,938 Federal Home Loan Bank Corp., 6.00%, 1/27/03.................250,000 247,033 Federal Home Loan Bank Corp., 7.58%, 7/9/12..................200,000 199,960 Federal Home Loan Bank Corp., 7.30%, 12/24/12................300,000 298,359 Federal Home Loan Mortgage Corp., 6.50%, 6/10/03.................150,000 149,016 Federal National Mortgage Assoc., 8.50%, 2/1/05..................100,000 103,813 Federal National Mortgage Assoc., 7.49%, 5/22/07.................250,000 253,868 Federal National Mortgage Assoc., 7.00%, 3/14/13.................600,000 586,500 Federal National Mortgage Assoc., 6.75%, 2/4/28..................400,000 381,876 ---------- Total U.S. Goverment & Agency Obligations (Cost $2,731,195).. 2,684,097 ---------- SHORT-TERM CORPORATE NOTES--3.5% Countrywide Home Loans Inc., 5.57%, 5/7/98..................150,000 149,861 OGE Energy Corp., 5.51%, 5/1/98..................200,000 200,000 Trident Capital Finance Inc., 5.54%, 5/15/98 (a).............250,000 249,461 ----------- Total Short-Term Corporate Notes (Cost $599,322)................ 599,322 ----------- Total Investments (Cost $14,481,250)(b).......... 100.9% 17,205,422 Liabilities in Excess of Other Assets .................. (.9) (159,788) ----------- Net Assets....................... 100.0% $17,045,634 ===== =========== * Non-income producing security. (a)Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. (b)At April 30, 1998, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $14,481,250, amounted to $2,724,172 which consisted of aggregate gross unrealized appreciation of $ 2,879,942 and aggregate gross unrealized depreciation of $155,770. See Notes to Financial Statements -14- THE ALGER FUND ALGER BALANCED PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS B --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------- 1998(iii)(vii) 1997 1996 1995 1994 1993 -------------- ---- ---- ---- ---- ---- Net asset value, beginning of period ......... $ 16.48 $ 14.21 $ 13.59 $ 10.65 $ 11.18 $ 9.95 ------- ------- ------- ------- ------- ------- Net investment income (loss).................. .03 -- .12 (.02)(i) (.05) (.01) Net realized and unrealized gain (loss) on investments............................. 1.68 2.67 .72 2.96 (.39) 1.24 ------- ------- ------- ------- ------- ------- Total from investment operations.............. 1.71 2.67 .84 2.94 (.44) 1.23 Dividends from net investment income.......... (.01) (.06) (.01) -- -- -- Distributions from net realized gains......... (2.20) (.34) (.21) -- (.09) -- ------- ------- ------- ------- ------- ------- Total distributions........................... (2.21) (.40) (.22) -- (.09) -- ------- ------- ------- ------- ------- ------- Net asset value, end of period................ $ 15.98 $ 16.48 $ 14.21 $ 13.59 $ 10.65 $ 11.18 ======== ======== ======== ======= ======= ======= Total Return (ii)............................. 12.2% 19.3% 6.3% 27.6% (4.0%) 12.4% ======== ======== ======== ======= ======= ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted).......................... $ 16,218 $ 12,653 $ 13,492 $ 6,214 $ 3,073 $ 3,125 ======== ======== ======== ======= ======= ======= Ratio of expenses to average net assets............................... 2.66% 2.89% 2.70% 3.34% 3.18% 3.82% ======== ======== ======== ======= ======= ======= Decrease reflected in above expense ratios due to expense reimbursements (iv).............. -- -- -- .24% -- .75% ======== ======== ======== ======= ======= ======= Ratio of net investment income (loss) to average net assets............. .21% .04% .47% (.13%) (.41%) (.97%) ======== ======== ======== ======= ======= ======= Portfolio Turnover Rate..................... 35.60% 109.26% 85.51% 84.06% 84.88% 115.17% ======== ======== ======== ======= ======= ======= Average Commission Rate Paid................ $ .0737 $ .0709 $ .0700 ======== ======== ========
- ------------------ See footnotes on page 15. -15- THE ALGER FUND ALGER BALANCED PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS A (iii)(vi) CLASS C (iii)(v) -------------------------------- -------------------------------- SIX MONTHS TEN MONTHS SIX MONTHS THREE MONTHS ENDED ENDED ENDED ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 1998(vii) 1997 1998(vii) 1997 ---------- ----------- ---------- ------------ Net asset value, beginning of period.......... $ 16.58 $ 13.99 $ 16.49 $ 16.88 ------- ------- ------- ------- Net investment income (loss).................. .07 .05 .02 (.01) Net realized and unrealized gain (loss) on investments............................. 1.72 2.54 1.70 (.38) ------- ------- ------- ------- Total from investment operations.............. 1.79 2.59 1.72 (.39) ------- ------- ------- ------- Dividends from net investment income.......... (.06) -- -- -- Distributions from net realized gains......... (2.20) -- (2.20) -- ------- ------- ------- ------- Total distributions........................... (2.26) -- (2.20) -- ------- ------- ------- ------- Net asset value, end of period................ $ 16.11 $ 16.58 $ 16.01 $ 16.49 ======= ======= ======= ======= Total Return (ii)............................. 12.7% 18.5% 12.3% (2.31)% ======= ======= ======= ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted).......................... $ 681 $ 459 $ 147 $ 48 ======= ======= ======= ======= Ratio of expenses to average net assets............................... 1.89% 2.10% 2.62% 2.77% ======= ======= ======= ======= Ratio of net investment income (loss) to average net assets.................... .96% .72% .21% (.84)% ======= ======= ======= ======= Portfolio Turnover Rate..................... 35.60% 109.26% 35.60% 109.26% ======= ======= ======= ======= Average Commission Rate Paid................ $ .0737 $ .0709 $ .0737 $ .0709 ======= ======= ======= =======
(i) Amount was computed based on average shares outstanding during the period. (ii) Does not reflect the effect of any sales charges. (iii) Ratios have been annualized; total return has not been annualized. (iv) Represents expense reimbursements made pursuant to applicable state expense limits. (v) Initially offered August 1, 1997. (vi) Initially offered January 1, 1997. (vii) Unaudited. -16- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1998 COMMON STOCKS--94.0% SHARES VALUE ------ ----- APPAREL--.5% Tommy Hilfiger Corporation*...... 16,700 $ 1,018,700 ----------- APPLIANCES & TOOLS--1.0% Black & Decker Corp.............. 39,100 2,018,538 ----------- BUILDING & CONSTRUCTION--4.1% Champion Enterprises Inc.*....... 52,200 1,298,475 Masco Corp....................... 83,600 4,848,800 Royal Group Technologies Ltd.*... 69,800 2,168,197 ----------- 8,315,472 ----------- BUSINESS SERVICES--6.2% Cognizant Corp...................112,700 5,797,063 Consolidation Capital Corp.*..... 43,100 950,915 H&R Block Inc.................... 65,000 2,925,000 Paychex, Inc..................... 51,400 2,791,688 ----------- 12,464,666 ----------- COMMUNICATIONS--2.8% America Online Inc.*............. 69,300 5,544,000 ----------- COMMUNICATION EQUIPMENT--1.0% Ascend Communications, Inc.*..... 45,700 1,990,828 ----------- COMPUTER SERVICES--3.2% Network Associates Inc.*......... 67,200 4,603,200 Sterling Commerce, Inc.*......... 44,500 1,894,054 ----------- 6,497,254 ----------- COMPUTER SOFTWARE--4.1% Compuware Corp.*................. 92,100 4,501,388 HBO & Company.................... 62,400 3,732,330 ----------- 8,233,718 ----------- CONSUMER PRODUCTS--2.1% Furniture Brands International Inc.* ........... 98,500 2,893,438 Newell Co........................ 25,500 1,231,982 ----------- 4,125,420 ----------- CONTAINERS--1.3% Owens-Illinois Inc.*............. 67,000 2,650,720 ----------- DRUG DISTRIBUTION--8.8% AmeriSource Health Corp. Cl. A*.. 77,800 4,240,100 Bergen Brunswig Corp. Cl. A...... 23,800 1,079,925 Cardinal Health, Inc............. 42,900 4,129,125 McKesson Corp.................... 75,600 5,344,012 Omnicare, Inc.................... 84,100 2,880,425 ----------- 17,673,587 ----------- ENERGY & ENERGY SERVICES--2.6% AES Corp.*....................... 95,500 5,270,454 ----------- FINANCIAL SERVICES--9.2% Dime Community Bancorp, Inc...... 71,500 2,194,192 Finova Group Inc................. 21,000 1,229,823 Kansas City Southern Industries Inc. ............... 46,600 2,105,761 Paine Webber Group Inc........... 51,550 2,310,110 Schwab (Charles) Corporation (The) ............. 35,600 1,246,000 Sovereign Bancorp Inc............121,200 2,287,650 Star Banc Corp................... 18,400 1,162,659 State Street Corp................ 56,000 4,004,000 SunAmerica Inc................... 36,000 1,797,768 ----------- 18,337,963 ----------- FOOD CHAINS--1.5% Fred Meyer, Inc.*................ 67,000 3,006,625 ----------- FOODS & BEVERAGES--2.4% Suiza Foods Corp.*............... 82,700 4,899,975 ----------- INSURANCE--1.9% MGIC Investment Corp............. 60,500 3,811,500 ----------- LEISURE & ENTERTAINMENT--5.6% Carnival Corporation Cl. A....... 43,100 2,998,165 International Game Technology....225,500 6,271,832 Premier Parks Inc.*.............. 34,500 1,919,063 ----------- 11,189,060 ----------- MANUFACTURING--2.3% Leggett & Platt Inc.............. 50,900 2,643,644 Wabash National Corp............. 62,100 1,917,338 ----------- 4,560,982 ----------- MEDICAL DEVICES--3.1% Biomatrix Inc.*.................. 35,000 1,111,250 Biomet Inc....................... 93,700 2,811,000 Guidant Corp..................... 19,400 1,297,375 Safeskin Corp.*.................. 30,400 1,083,000 ----------- 6,302,625 ----------- MEDICAL SERVICES--1.8% Quorum Health Group Inc.*........114,950 3,692,769 ----------- PHARMACEUTICALS--4.4% Alza Corp.*...................... 39,200 1,879,170 Elan Corp PLC-ADR*............... 47,300 2,938,513 Forest Laboratories, Inc.*.......111,100 4,020,487 ----------- 8,838,170 ----------- -17- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1998 COMMON STOCKS--94.0% SHARES VALUE ------ ----- POLLUTION CONTROL--3.6% USA Waste Services, Inc.*........145,900 $ 7,158,292 ----------- RESTAURANTS & LODGING--2.8% Outback Steakhouse, Inc.*........ 86,000 3,278,750 Showbiz Pizza Time, Inc.*........ 59,000 2,278,875 ----------- 5,557,625 ----------- RETAILING--6.9% Borders Group Inc.*.............. 56,000 1,799,000 CVS Corp......................... 45,400 3,348,250 General Nutrition Companies, Inc.* .............. 91,100 3,268,213 Kmart Corp.*..................... 67,400 1,175,321 Staples Inc.*....................170,850 4,217,944 ----------- 13,808,728 ----------- SEMICONDUCTORS--.5% Micron Technology Inc.*.......... 32,500 1,009,548 ----------- TEXTILES--.5% Pillowtex Corp................... 19,700 988,704 ----------- TOYS--2.5% Mattel Inc.......................131,000 5,019,003 ----------- TRANSPORTATION--7.3% Alaska Air Group Inc.*........... 41,600 2,334,800 AMR Corp.*....................... 27,400 4,175,075 Coach USA Inc.*.................. 56,300 2,670,758 Continental Airlines Inc. Cl. B*. 92,500 5,445,938 ----------- 14,626,571 ----------- Total Common Stocks (Cost $157,470,670)............ 188,611,497 ----------- SHORT-TERM CORPORATE PRINCIPAL NOTES--8.2% AMOUNT VALUE ---------- ------- APC Funding Corp., 5.55%, 5/12/98................. $5,200,000 $ 5,191,182 Merrill Lynch & Co., Inc., 5.53%, 5/12/98................. 5,600,000 5,590,538 Trident Capital Finance Inc., 5.54%, 5/15/98(a).............. 5,700,000 5,687,720 ------------ Total Short-Term Corporate Notes (Cost $16,469,440)............. 16,469,440 ------------ Total Investments (Cost $173,940,110)(b)......... 102.2% 205,080,937 Liabilities in Excess of Other Assets .................. (2.2) (4,460,259) ----- ------------ Net Assets....................... 100.0% $200,620,678 ===== ============ * Non-income producing security. (a) Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. (b) At April 30 1998, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $173,940,110, amounted to $31,140,827 which consisted of aggregate gross unrealized appreciation of $32,886,560 and aggregate gross unrealized depreciation of $ 1,745,733. See Notes to Financial Statements. -18- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS B ------------------------------------------------------------------------------------- FROM MAY 24, 1993 SIX MONTHS (COMMENCEMENT ENDED YEAR ENDED OCTOBER 31, OF OPERATIONS) TO APRIL 30, ---------------------------------------- OCTOBER 31, 1998(i)(vii) 1997 1996 1995 1994 1993(i) ------------ ---- ---- ---- ---- ---------------- Net asset value, beginning of period.... $ 22.33 $ 18.87 $ 18.94 $ 12.77 $ 12.48 $ 10.00 -------- -------- --------- --------- --------- ------- Net investment income (loss)............ (.16)(ii) (.29) (.25)(ii) (.08) (.11) (.09) Net realized and unrealized gain (loss) on investments....................... 2.44 4.23 1.35 6.25 .68 2.57 -------- -------- --------- --------- --------- ------- Total from investment operations........ 2.28 3.94 1.10 6.17 .57 2.48 Distributions from net realized gains... (2.46) (.48) (1.17) -- (.28) -- -------- -------- --------- --------- --------- ------- Net asset value, end of period.......... $ 22.15 $ 22.33 $ 18.87 $ 18.94 $ 12.77 $ 12.48 -------- -------- --------- --------- --------- ------- Total Return (iii)...................... 12.7% 21.4% 6.4% 48.3% 4.7% 24.8% ======== ======== ======== ======== ======== ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted).................... $185,814 $166,475 $125,686 $ 54,016 $ 18,516 $ 3,836 ======== ======== ======== ======== ======== ======= Ratio of expenses to average net assets......................... 2.13% 2.19% 2.27% 2.39% 3.20% 3.73% ======== ======== ======== ======== ======== ======= Decrease reflected in above expense ratios due to expense reimbursements (iv)........ -- -- -- -- .07% .80% ======== ======== ======== ======== ======== ======= Ratio of net investment income (loss) to average net assets....... (1.50%) (1.58%) (1.33%) (1.71%) (2.32%) (2.86%) ======== ======== ======== ======== ======== ======= Portfolio Turnover Rate............... 96.96% 160.09% 113.95% 121.60% 127.40% 57.64% ======== ======== ======== ======== ======== ======= Average Commission Rate Paid.......... $ .0711 $ .0680 $ .0690 ======== ======== ========
- ------------------- See footnotes on page 19. -19- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS A (i)(vi) CLASS C (i)(v) -------------------------------- -------------------------------- SIX MONTHS TEN MONTHS SIX MONTHS THREE MONTHS ENDED ENDED ENDED ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 1998(vii) 1997 1998(vii) 1997 ---------- ----------- ---------- ------------ Net asset value, beginning of period.......... $ 22.46 $ 18.92 $ 22.33 $ 22.49 -------- -------- ------- ------- Net investment income (loss).................. (.07)(ii) (.10) (.18)(ii) (.03) Net realized and unrealized gain (loss) on investments............................. 2.46 3.64 2.43 (.13) -------- -------- ------- ------- Total from investment operations.............. 2.39 3.54 2.25 (.16) Distributions from net realized gains......... (2.46) -- (2.46) -- -------- -------- ------- ------- Net asset value, end of period................ $ 22.39 $ 22.46 $ 22.12 $ 22.33 ======== ======== ======= ======= Total Return (iii)............................ 13.1% 18.7% 12.5% (.7%) ======== ======== ======= ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted).......................... $ 14,137 $ 5,436 $ 670 $ 84 ======== ======== ======= ======= Ratio of expenses to average net assets............................... 1.37% 1.40% 2.12% 1.97% ======== ======== ======= ======= Ratio of net investment income (loss) to average net assets.................... (.72%) (.83%) (1.38%) (1.55%) ======== ======== ======= ======= Portfolio Turnover Rate..................... 96.96% 160.09% 96.96% 160.09% ======== ======== ======= ======= Average Commission Rate Paid................ $ .0711 $ .0680 $ .0711 $ .0680 ======== ======== ======= =======
(i) Ratios have been annualized; total return has not been annualized. (ii) Amount was computed based on average shares outstanding during the period. (iii)Does not reflect the effect of any sales charges. (iv) Represents expense reimbursements made pursuant to applicable state expense limits. (v) Initially offered August 1, 1997. (vi) Initially offered January 1, 1997. (vii)Unaudited. -20- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1998 Common Stocks--89.9% Shares Value ------ ------------ APPAREL--1.0% Brylane Inc.* ................................... 48,700 $ 2,861,125 ------------ BIO-TECHNOLOGY--.9% INCYTE Pharmaceuticals, Inc.* ................... 55,000 2,475,000 ------------ BROADCASTING--1.6% CBS Corp. ....................................... 123,600 4,403,250 ------------ BUILDING & CONSTRUCTION--1.0% Masco Corp. ..................................... 50,000 2,900,000 ------------ BUSINESS SERVICES--1.9% Cognizant Corp. ................................. 101,700 5,231,245 ------------ COMMUNICATIONS--6.5% America Online Inc.* ............................ 92,600 7,408,000 Clear Channel Communications, Inc.* ......................... 14,000 1,319,500 Jacor Communications Inc.* ...................... 48,000 2,730,000 Outdoor Systems, Inc.* .......................... 50,000 1,587,500 WorldCom Inc.* .................................. 113,700 4,864,200 ------------ 17,909,200 ------------ COMMUNICATION EQUIPMENT--5.4% Ascend Communications, Inc.* .................... 83,000 3,615,729 Cisco Systems, Inc.* ............................ 102,000 7,471,500 Tellabs, Inc.* .................................. 54,400 3,855,600 ------------ 14,942,829 ------------ COMPUTER RELATED & BUSINESS EQUIPMENT--1.0% International Business Machines Corp. ........... 23,900 2,769,412 ------------ COMPUTER SERVICES--1.5% Network Associates Inc.* ........................ 60,000 4,110,000 ------------ COMPUTER SOFTWARE--7.4% Compuware Corp.* ................................ 110,000 5,376,250 HBO & Company ................................... 49,800 2,978,687 Microsoft Corporation* .......................... 96,500 8,697,063 Saville Systems PLC ADR* ........................ 70,000 3,491,250 ------------ 20,543,250 ------------ CONGLOMERATE--1.9% Tyco International Ltd. ......................... 97,434 5,310,152 ------------ DRUG DISTRIBUTION--3.6% AmeriSource Health Corp Cl. A* .................. 50,000 2,725,000 Bergen Brunswig Corp. Cl. A ..................... 32,600 1,479,225 McKesson Corp. .................................. 83,700 5,916,585 ------------ 10,120,810 ------------ ENERGRY & ENERGY SERVICES--.8% AES Corp.* ...................................... 40,000 2,207,520 ------------ FINANCIAL SERVICES--9.6% BankAmerica Corp. ............................... 45,900 3,901,500 Bank of New York Inc. ........................... 110,000 6,496,930 Chase Manhattan Corp. ........................... 10,600 1,468,768 Federal Home Loan Mortgage Corporation ................................... 59,500 2,755,624 Kansas City Southern Industries, Inc. .............................. 92,500 4,179,890 Morgan Stanley Dean Witter & Co. ................ 36,180 2,853,698 NationsBank Corp. ............................... 34,900 2,643,675 State Street Corp. .............................. 33,800 2,416,700 ------------ 26,716,785 ------------ FOODS & BEVERAGES--1.0% Earthgrains Company ............................. 61,500 2,875,125 ------------ FOOD CHAINS--2.7% Fred Meyer, Inc.* ............................... 30,000 1,346,250 Kroger Co.* ..................................... 65,900 2,759,562 Safeway Inc.* ................................... 89,400 3,419,550 ------------ 7,525,362 ------------ INSURANCE--5.4% American International Group, Inc. .............. 27,100 3,565,357 Executive Risk Inc. ............................. 25,300 1,687,206 MGIC Investment Corp. ........................... 25,700 1,619,100 Travelers Group Inc. ............................ 89,100 5,451,850 Vesta Insurance Group Inc. ...................... 48,600 2,751,975 ------------ 15,075,488 ------------ LEISURE & ENTERTAINMENT--2.3% Carnival Corporation Cl. A ...................... 40,000 2,782,520 International Game Technology ................... 41,100 1,143,114 Premier Parks Inc.* ............................. 42,000 2,336,250 ------------ 6,261,884 ------------ PHARMACEUTICALS--12.6% Bristol Myers Squibb Co. ........................ 57,300 6,066,638 Elan Corp PLC-ADR* .............................. 84,400 5,243,350 Forest Laboratories, Inc.* ...................... 114,200 4,132,670 Pfizer Inc. ..................................... 74,200 8,444,925 Schering-Plough Corporation ..................... 76,500 6,129,563 Warner-Lambert Co. .............................. 26,300 4,975,644 ------------ 34,992,790 ------------ POLLUTION CONTROL--3.5% USA Waste Services, Inc.* ....................... 200,100 9,817,506 ------------ -21- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1998 COMMON STOCKS--(CONT.) SHARES VALUE ------ ------------ RETAILING--13.7% Bed Bath & Beyond Inc.* ......................... 35,000 $ 1,723,750 CVS Corp. ....................................... 67,000 4,941,250 Home Depot, Inc. ................................ 133,850 9,319,306 Kmart Corp.* .................................... 203,300 3,545,145 Michaels Stores Inc.* ........................... 78,600 2,377,650 Rite Aid Corp. .................................. 147,800 4,748,075 Staples Inc.* ................................... 190,650 4,706,767 Wal-Mart Stores Inc. ............................ 134,500 6,800,724 ------------ 38,162,667 ------------ SEMICONDUCTORS--2.1% Intel Corp. ..................................... 44,600 3,604,260 Micron Technology Inc.* ......................... 68,900 2,140,241 ------------ 5,744,501 ------------ TRANSPORTATION--2.5% AMR Corp.* ...................................... 28,100 4,281,738 SkyWest Inc. .................................... 66,000 2,673,000 ------------ 6,954,738 ------------ Total Common Stocks (Cost $202,686,869) ........................... 249,910,639 ------------ Preferred Stock--1.0% COMMUNICATION EQUIPMENT Nokia Corporation, ADR (Cost $2,069,672) ............................. 43,000 $ 2,875,625 ------------ SHORT-TERM CORPORATE PRINCIPAL NOTES--9.5% AMOUNT --------- Quincy Capital Corporation., 5.55%, 5/15/98 ................................ $ 9,000,000 8,980,575 Three Rivers Funding Corp., 5.55%, 5/13/98 (a) ............................ 8,500,000 8,484,180 Trident Capital Finance Inc., 5.54%, 5/15/98 (a) ............................ 9,000,000 8,980,610 ------------ Total Short-Term Corporate Notes (Cost 26,445,365) ............................. 26,445,365 ------------ Total Investments (Cost 231,201,906) (b) ........................ 100.4% 279,231,629 Liabilities in Excess of Other Assets ........... (.4) (1,182,657) ----- ------------ Net Assets ...................................... 100.0% $278,048,972 ===== ============ * Non-income producing security. (a) Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. (b) At April 30, 1998, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $231,201,906, amounted to $48,029,723 which consisted of aggregate gross unrealized appreciation of $49,270,331 and aggregate gross unrealized depreciation of $1,240,608. See Notes to Financial Statements. -22- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO (i) Financial Highlights For a share outstanding throughout the period
CLASS B ------------------------------------------------------------------------------ SIX MONTHS YEAR ENDED OCTOBER 31, ENDED ---------------------------------------------------------- APRIL 30, 1998(vii)(viii) 1997 1996 1995 1994 --------------- ---- ---- ---- ---- Net asset value, beginning of period ............ $26.00 $21.62 $18.62 $11.11 $10.00 ---------- ---------- ---------- -------- -------- Net investment income (loss) .................... (.14) (.33) (.34)(ii) (0.47)(ii) (0.47) Net realized and unrealized gain (loss) on investments ............................... 3.39 4.85 3.88 7.98 1.58 ---------- ---------- ---------- -------- -------- Total from investment operations ................ 3.25 4.52 3.54 7.51 1.11 Distributions from net realized gains ........... (1.61) (.14) (.54) -- -- ---------- ---------- ---------- -------- -------- Net asset value, end of period .................. $27.64 $26.00 $21.62 $18.62 $11.11 ========== ========== ========== ======== ======== Total Return (iii) .............................. 13.8% 21.0% 19.5% 67.6% 11.1% ========== ========== ========== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ..... $246,968 $212,895 $150,258 $33,640 $2,369 ========== ========== ========== ======== ======== Ratio of expenses excluding interest to average net assets ...................... 2.21% 2.27% 2.44% 3.26% 4.13% ========== ========== ========== ======== ======== Ratio of expenses including interest to average net assets ...................... 2.28% 2.38% 2.46% 3.54% 5.53% ========== ========== ========== ======== ======== Decrease reflected in above expense ratios due to expense reimbursements (iv) ......... -- -- -- -- .85% ========== ========== ========== ======== ======== Ratio of net investment income (loss) to average net assets ............... (1.51%) (1.72%) (1.61%) (3.02%) (5.12%) ========== ========== ========== ======== ======== Portfolio Turnover Rate ....................... 95.93% 157.63% 162.37% 197.65% 231.99% ========== ========== ========== ======== ======== Average Commission Rate Paid .................. $.0708 $.0702 $.0647 ========== ========== ========== ======== ======== Amount of debt outstanding at end of period ... -- -- $7,700,000 -- $651,000 ========== ========== ========== ======== ======== Average amount of debt outstanding during the period .......................... $2,656,354 $2,940,097 $239,966 $293,153 $406,864 ========== ========== ========== ======== ======== Average daily number of portfolio shares outstanding during the period .............. 9,536,041 7,739,199 4,852,286 543,270 191,676 ========== ========== ========== ======== ======== Average amount of debt per share during the period .......................... $0.28 $0.38 $0.05 $0.54 $2.12 ========== ========== ========== ======== ========
See footnotes on page 23. -23- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO (i) Financial Highlights For a share outstanding throughout the period
CLASS A (vi)(vii) CLASS C (v)(vii) ------------------------ ------------------------- SIX MONTHS TEN MONTHS SIX MONTHS THREE MONTHS ENDED ENDED ENDED ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 1998(viii) 1997 1998(viii) 1997 ----------- ---------- ---------- ----------- Net asset value, beginning of period.......... $26.17 $21.59 $26.00 $27.67 ---------- ---------- ---------- ---------- Net investment income (loss).................. (.03) (.09) (.11) (.05) Net realized and unrealized gain (loss) on investments............................. 3.40 4.67 3.35 (1.62) ---------- ---------- ---------- ---------- Total from investment operations.............. 3.37 4.58 3.24 (1.67) Distributions from net realized gains......... (1.61) -- (1.61) -- ---------- ---------- ---------- ---------- Net asset value, end of period................ $27.93 $26.17 $27.63 $26.00 ========== ========== ========== ========== Total Return (iii)............................ 14.2% 21.2% 13.7% (6.0%) ========== ========== ========== ========== Ratios and Supplemental Data: Net assets, end of period (000's omitted)... $29,189 $15,572 $1,892 $631 ========== ========== ========== ========== Ratio of expenses excluding interest to average net assets.................... 1.46% 1.45% 2.22% 2.18% ========== ========== ========== ========== Ratio of expenses including interest to average net assets.................... 1.53% 1.53% 2.29% (2.25)% ========== ========== ========== ========== Ratio of net investment income (loss) to average net assets.................... (.73%) (.85%) (1.55%) (1.80%) ========== ========== ========== ========== Portfolio Turnover Rate..................... 95.93% 157.63% 95.93% 157.63% ========== ========== ========== ========== Average Commission Rate Paid................ $.0708 $.0702 $.0708 $.0702 ========== ========== ========== ========== Amount of debt oustanding at end of period.. -- -- -- -- ========== ========== ========== ========== Average amount of debt oustanding during the period........................ $2,656,354 $2,940,097 $2,656,354 $2,940,097 ========== ========== ========== ========== Average daily number of portfolio shares outstanding during the period............ 9,536,041 7,739,199 9,536,041 7,739,199 ========== ========== ========== ========== Average amount of debt per share during the period........................ $0.28 $0.38 $0.28 $0.38 ========== ========== ========== ==========
(i) Prior to March 27, 1995, the Alger Capital Appreciation Portfolio was the Alger Leveraged AllCap Portfolio. (ii) Amount was computed based on average shares outstanding during the year. (iii) Does not reflect the effect of any sales charges. (iv) Represents expense reimbursements made pursuant to applicable state expense limits. (v) Initially offered August 1, 1997. (vi) Initially offered January 1, 1997. (vii) Ratios have been annualized; total return has not been annualized. (viii) Unaudited. -24- THE ALGER FUND ALGER MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1998 SHORT-TERM CORPORATE PRINCIPAL NOTES--97.9% AMOUNT VALUE --------- ------------ BANKS--10.1% Banque Generale Du Luxembourg S.A., 5.47%, 6/16/98 ................................ $ 8,000,000 $ 7,944,084 Corporacion Andina De Fomento, 5.51%, 6/25/98 ................................ 8,000,000 7,932,656 ------------ 15,876,740 ------------ BROKERAGE--1.1% Merrill Lynch & Co., Inc., 5.51%, 5/7/98 ................................. 1,700,000 1,698,439 ------------ CHEMICALS--4.1% PHH Corporation, 5.53%, 5/7/98 ................................. 6,500,000 6,494,009 ------------ COMMUNICATIONS--12.7% Ameritech Corporation, 5.50%, 5/13/98 ................................ 6,000,000 5,989,000 Bell Atlantic Network Funding Corporation, 5.49%, 5/22/98 ................................ 8,000,000 7,974,380 Telstra Corporation Limited, 5.50%, 5/22/98 ................................ 6,000,000 5,980,750 ------------ 19,944,130 ------------ ELECTRONICS--2.4% Avnet, Inc., 5.51%, 5/15/98 ................................ 3,800,000 3,791,857 ------------ ENERGY & ENERGY SERVICES--12.1% Georgia Power Company, 5.50%, 5/12/98 ................................ 1,000,000 998,320 Midamerican Energy Co., 5.52%, 5/15/98 ................................ 6,000,000 5,987,120 New England Power Company, 5.50%, 5/7/98 ................................. 6,000,000 5,994,500 OGE Energy Corp., 5.51%, 5/1/98 ................................. 6,000,000 6,000,000 ------------ 18,979,940 ------------ ELECTRIC UTILITIES--1.7% Potomac Electric Power Company, 5.50%, 5/4/98 ................................. 2,700,000 2,698,763 ------------ FINANCE--10.0% BCI Funding Corporation, 5.49%, 5/26/98 ................................ 8,000,000 7,969,500 Lexington Parker Capital Co. LLC., 5.53%, 5/1/98(a) .............................. 1,700,000 1,700,000 USAA Capital Corporation, 5.52%, 5/5/98 ................................. 6,000,000 5,996,320 ------------ 15,665,820 ------------ INSURANCE--8.8% Safeco Credit Company, Incorporated, 5.53%, 7/23/98 ................................ 8,000,000 7,898,002 Sunamerica Life Insurance Company, 5.50%, 5/5/98 ................................. 6,000,000 5,996,333 ------------ 13,894,335 ------------ LEASING--3.3% Mitsubishi International Corporation, 5.51%, 5/6/98 ................................. 5,300,000 5,295,944 ------------ MACHINERY & EQUIPMENT--3.8% Cooperative Association of Tractor Dealers Inc., 5.53%, 5/8/98 ................................. 6,000,000 5,993,548 ------------ MORTGAGE COMPANIES--7.6% Countrywide Home Loans, Inc., 5.57%, 5/7/98 ................................. 6,000,000 5,994,430 Reliastar Mortgage Corporation, 5.52%, 5/15/98 ................................ 6,000,000 5,987,120 ------------ 11,981,550 ------------ OIL--3.8% Petrofina Delaware, Inc., 5.46%, 5/7/98 ................................. 6,000,000 5,994,540 ------------ REAL ESTATE--3.8% Northern Rock PLC, 5.50%, 5/7/98 ................................. 6,000,000 5,994,500 ------------ -25- THE ALGER FUND ALGER MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1998 SHORT-TERM CORPORATE PRINCIPAL NOTES--(CONT.) AMOUNT VALUE --------- ------------ UTILITIES--12.6% Consolidated Natural Gas Company, 5.52%, 5/11/98 ................................ $ 6,000,000 $ 5,990,800 GTE Corporation, 5.51%, 5/11/98 ................................ 6,000,000 5,990,817 Transportadora De Gas Del Sur S.A., 5.52%, 7/23/98 ................................ 8,000,000 7,898,187 ------------ 19,879,804 ------------ Total Short-Term Corporate Notes (Cost $154,183,919) ........................... 154,183,919 ------------ Certificates of Deposit--3.2% Banco Espirito Santo E Commercial, 5.51%, 5/21/98 (Cost $4,984,694) ............................. 5,000,000 4,984,694 ------------ Total Investments (Cost $159,168,613)(b) ........................ 101.1% 159,168,613 Liabilities In Excess of Other Assets ........... (1.1) (1,738,785) ----- ------------ Net Assets ...................................... 100.0% $157,429,828 ===== ============ (a) Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. (b) At April 30,1998, the cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes. See Notes to Financial Statements. -26- THE ALGER FUND ALGER MONEY MARKET PORTFOLIO Financial Highlights For a share outstanding throughout the period
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------- 1998(i) 1997 1996 1995 1994 1993 -------- -------- -------- -------- -------- -------- Net asset value, beginning of period ... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 -------- -------- -------- -------- -------- -------- Net investment income................... .0236 .0479 .0521 .0573 .0374 .0304 Dividends from net investment income ... (.0236) (.0479) (.0521) (.0573) (.0374) (.0304) -------- -------- -------- -------- -------- -------- Net asset value, end of period.......... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 ======== ======== ======== ======== ======== ======== Total Return............................ 2.4% 4.9% 5.3% 5.9% 3.8% 3.1% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted)...................... $157,430 $179,407 $285,702 $185,822 $163,170 $126,567 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets. .80% .81% .41% .29% .27% .41% ======== ======== ======== ======== ======== ======== Decrease reflected in above expense ratios due to expense reimbursements and management fee waivers........... -- -- .38% .50% .50% .50% ======== ======== ======== ======== ======== ======== Ratio of net investment income to average net assets................ 4.88% 4.76% 5.18% 5.73% 3.78% 3.04% ======== ======== ======== ======== ======== ======== (i) Unaudited. Ratios have been annualized; total return has not been annualized.
See Notes to Financial Statements. -27- THE ALGER FUND STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share amounts) (Unaudited) April 30, 1998
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET ASSETS: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO -------- -------- ------- -------- -------- -------- Investments in securities, at value (identified cost*)-see accompany- ing schedules of investments ......... $429,153 $636,271 $17,205 $205,081 $279,232 $159,169 Cash .................................... 47 205 54 47 86 1,239 Receivable for investment securities sold 1,698 4,580 87 1,225 673 -- Receivable for shares of beneficial interest sold......................... 1,016 5,073 49 482 1,272 1,190 Dividends and interest receivable............................ 203 92 111 40 120 -- Prepaid expenses......................... 29 36 14 14 39 15 -------- -------- ------- -------- -------- -------- Total Assets....................... 432,146 646,257 17,520 206,889 281,422 161,613 -------- -------- ------- -------- -------- -------- LIABILITIES: Payable for investment securities purchased.................. 1,063 9,488 120 5,602 2,048 -- Payable for shares of beneficial interest redeemed..................... 726 2,679 297 221 607 3,832 Interest payable......................... -- -- -- -- 79 -- Accrued investment management fees....... 266 430 11 131 189 75 Accrued distribution fees ............... 207 355 10 116 152 -- Accrued shareholder servicing fees....... 89 126 4 41 56 -- Dividends payable-Note 2(c).............. -- -- -- -- -- 27 Accrued expenses......................... 377 538 32 157 242 249 -------- -------- ------- -------- -------- -------- Total Liabilities.................. 2,728 13,616 474 6,268 3,373 4,183 -------- -------- ------- -------- -------- -------- NET ASSETS .............................. $429,418 $632,641 $17,046 $200,621 $278,049 $157,430 ======== ======== ======= ======== ======== ======== Net Assets Consist of: Paid-in capital....................... $309,065 $476,105 $13,657 $155,260 $213,912 $157,504 Undistributed net investment income (accumulated loss).......... (9,305) (39,500) (48) (5,734) (6,923) -- Undistributed net realized gain (accumulated loss)............ 36,168 72,377 713 19,954 23,030 (74) Net unrealized appreciation........... 93,490 123,659 2,724 31,141 48,030 -- -------- -------- ------- -------- -------- -------- NET ASSETS .............................. $429,418 $632,641 $17,046 $200,621 $278,049 $157,430 ======== ======== ======= ======== ======== ======== Class A Net Asset Value Per Share............. $11.82 $10.57 $16.11 $22.39 $27.93 -- ======== ======== ======= ======== ======== ======== Offering Price Per Share.............. $12.41 $11.10 $16.91 $23.51 $29.32 -- ======== ======== ======= ======== ======== ======== Class B Net Asset Value and Offering Price Per Share ......................... $11.68 $10.45 $15.98 $22.15 $27.64 $1.00 ======== ======== ======= ======== ======== ======== Class C Net Asset Value and Offering Price Per Share ......................... $11.68 $10.45 $16.01 $22.12 $27.63 -- ======== ======== ======= ======== ======== ======== Shares of beneficial interest outstanding-Note 6 Class A............................... 8,046 4,977 42 631 1,045 -- ======== ======== ======= ======== ======== ======== Class B............................... 28,498 55,237 1,015 8,390 8,937 157,504 ======== ======== ======= ======== ======== ======== Class C............................... 118 256 9 30 68 -- ======== ======== ======= ======== ======== ======== *Identified cost......................... $335,663 $512,612 $14,481 $173,940 $231,202 $159,169 ======== ======== ======= ======== ======== ========
See Notes to Financial Statements. -28- THE ALGER FUND STATEMENTS OF OPERATIONS (in thousands) (Unaudited) For the six months ended April 30, 1998
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET INVESTMENT INCOME: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------- ------- ------ ------- ------- ------ Income: Dividends ............................. $1,262 $769 $37 $307 $705 $5,223 Interest .............................. 647 790 182 263 243 -- ------- ------- ------ ------- ------- ------ Total Income........................... 1,909 1,559 219 570 948 5,223 Expenses: Management fees-Note 3(a).............. 1,432 2,476 57 716 1,038 460 Distribution fees-Note 3(b): Class B.............................. 1,140 2,064 55 640 836 -- Class C.............................. 3 4 -- 2 5 -- Shareholder servicing fees-Note 3(f)... 477 728 19 224 305 -- Interest on line of credit utilized -Note 5 ............................. -- -- -- -- 87 -- Custodian fees......................... 30 47 5 18 22 22 Transfer agent fees and expenses-Note 3(e)................... 372 603 32 208 349 205 Professional fees...................... 6 6 8 8 8 8 Trustees' fees......................... 3 3 3 3 3 3 Registration fees...................... 48 41 19 37 39 33 Miscellaneous.......................... 41 68 3 22 21 6 ------- ------- ------ ------- ------- ------ Total Expenses......................... 3,552 6,040 201 1,878 2,713 737 ------- ------- ------ ------- ------- ------ NET INVESTMENT INCOME (LOSS).......................... (1,643) (4,481) 18 (1,308) (1,765) 4,486 ------- ------- ------ ------- ------- ------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on investments......... 32,510 59,983 711 16,750 18,075 6 Net change in unrealized appreciation (depreciation) on investments.......... 32,236 (6,098) 1,154 6,981 17,827 -- ------- ------- ------ ------- ------- ------ Net realized and unrealized gain (loss) on investments............. 64,746 53,885 1,865 23,731 35,902 6 ------- ------- ------ ------- ------- ------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. $63,103 $49,404 $1,883 $22,423 $34,137 $4,492 ======= ======= ====== ======= ======= ======
See Notes to Financial Statements. -29- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO STATEMENT OF CASH FLOWS (in thousands) (Unaudited) For the six months ended April 30, 1998
Increase (decrease) in cash: Cash flows from operating activities: Dividends received ........................................................ $629 Interest received ......................................................... 243 Interest paid ............................................................. (95) Operating expenses paid ................................................... (2,527) Purchase of investment securities ......................................... (240,345) Purchase of short-term securities, net .................................... (15,855) Proceeds from disposition of investment securities ........................ 237,199 Other ..................................................................... (3) -------- Net cash used in operating activities ................................. (20,754) -------- Cash flows from financing activities: Dividends paid ............................................................ (14,120) Proceeds from shares sold and dividends reinvested ........................ 434,004 Payments on shares redeemed ............................................... (399,103) -------- Net cash provided by financing activities ............................. 20,781 -------- Net increase in cash .......................................................... 27 Cash--beginning of period ..................................................... 59 -------- Cash--end of period ........................................................... $86 ======== Reconciliation of net increase in net assets to net cash used in operating activities: Net increase in net assets resulting from operations ...................... $34,137 Increase in investments ................................................... (15,261) Increase in interest and dividends receivable ............................. (76) Decrease in receivable for investment securities sold ..................... 6,840 Decrease in payable for investment securities purchased ................... (10,581) Net realized gain ......................................................... (18,075) Net increase in unrealized appreciation ................................... (17,827) Increase in accrued expenses and other liabilities ........................ 91 Net increase in other assets .............................................. (2) -------- Net cash used in operating activities ................................. $(20,754) ========
See Notes to Financial Statements. -30- THE ALGER FUND STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited) For the six months ended April 30, 1998
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO -------- -------- ------- -------- -------- -------- Net investment income (loss)............. $ (1,643) $ (4,481) $ 18 $ (1,308) $ (1,765) $ 4,486 Net realized gain on investments......... 32,510 59,983 711 16,750 18,075 6 Net change in unrealized appreciation (depreciation) on investments.......... 32,236 (6,098) 1,154 6,981 17,827 -- -------- -------- ------- -------- -------- -------- Net increase in net assets resulting from operations.......... 63,103 49,404 1,883 22,423 34,137 4,492 -------- -------- ------- -------- -------- -------- Dividends and distributions to shareholders from: Net investment income Class A.............................. -- -- (2) -- -- -- Class B.............................. -- -- (9) -- -- (4,486) Net realized gains Class A.............................. (10,089) (1,188) (64) (574) (880) -- Class B.............................. (36,412) (27,136) (1,780) (18,402) (13,178) -- Class C.............................. (54) (25) (7) (19) (62) -- -------- -------- ------- -------- -------- -------- Total distributions to shareholders...... (46,555) (28,349) (1,862) (18,995) (14,120) (4,486) -------- -------- ------- -------- -------- -------- Increase (Decrease) from shares of beneficial interest transactions: Class A.............................. 38,513 23,935 219 7,754 10,794 -- Class B.............................. 15,768 (21,432) 3,551 16,897 16,986 (21,983) Class C.............................. 1,099 2,098 95 547 1,154 -- -------- -------- ------- -------- -------- -------- Net increase (decrease) from shares of beneficial interest transactions -Note 6........... .................... 55,380 4,601 3,865 25,198 28,934 (21,983) -------- -------- ------- -------- -------- -------- Total increase (decrease).......... 71,928 25,656 3,886 28,626 48,951 (21,977) Net Assets: Beginning of period.................... 357,490 606,985 13,160 171,995 229,098 179,407 -------- -------- ------- -------- -------- -------- End of period.......................... $429,418 $632,641 $17,046 $200,621 $278,049 $157,430 ======== ======== ======= ======== ======== ======== Undistributed net investment income (accumulated loss).............. $ (9,305) $(39,500) $ (48) $ (5,734) $ (6,923) -- ======== ======== ======= ======== ======== ========
See Notes to Financial Statements. -31- THE ALGER FUND STATEMENTS OF CHANGES IN NET ASSETS (in thousands) For the year ended October 31, 1997
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO -------- -------- ------- -------- -------- -------- Net investment income (loss)............ $ (3,399) $ (9,189) $ 6 $ (2,412) $ (3,154) $ 10,506 Net realized gain (loss) on investments........................ 48,794 28,698 1,856 21,535 17,357 (16) Net change in unrealized appreciation on investments........................ 21,432 42,118 316 10,912 18,233 -- -------- -------- ------- -------- -------- -------- Net increase in net assets resulting from operations........ 66,827 61,627 2,178 30,035 32,436 10,490 -------- -------- ------- -------- -------- -------- Dividends and distributions to shareholders-Class B: Net investment income................. -- -- (50) -- -- (10,506) Net realized gains.................... (8,740) (93,115) (288) (3,458) (970) -- -------- -------- ------- -------- -------- -------- Total distributions to shareholders..... (8,740) (93,115) (338) (3,458) (970) (10,506) -------- -------- ------- -------- -------- -------- Additional paid-in capital.............. -- 578 -- -- -- -- -------- -------- ------- -------- -------- -------- Increase (Decrease) from shares of beneficial interest transactions: Class A............................... 45,431 23,494 417 4,665 14,238 -- Class B............................... (12,447) 60,181 (2,639) 14,976 32,464 (106,279) Class C............................... 212 348 50 91 672 -- -------- -------- ------- -------- -------- -------- Net increase (decrease) from shares of beneficial interest transactions -Note 6............................... 33,196 84,023 (2,172) 19,732 47,374 (106,279) -------- -------- ------- -------- -------- -------- Total increase (decrease)........ 91,283 53,113 (332) 46,309 78,840 (106,295) Net Assets: Beginning of year..................... 266,207 553,872 13,492 125,686 150,258 285,702 -------- -------- ------- -------- -------- -------- End of year........................... $357,490 $606,985 $13,160 $171,995 $229,098 $179,407 ======== ======== ======= ======== ======== ======== Undistributed net investment income (accumulated loss).......... $ (7,662) $(35,019) $ (55) $ (4,426) $ (5,158) -- ======== ======== ======= ======== ======== ========
See Notes to Financial Statements. -32- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1- General: The Alger Fund (the "Fund") is a diversified, open-end registered investment company organized as an unincorporated business trust under the laws of the Commonwealth of Massachusetts. The Fund operates as a series company currently issuing an unlimited number of shares of beneficial interest in six portfolios--Growth Portfolio, Small Capitalization Portfolio, Balanced Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio and Money Market Portfolio (the "Portfolios"). The Growth Portfolio, Small Capitalization Portfolio, MidCap Growth Portfolio and Capital Appreciation Portfolio normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation. The Balanced Portfolio's investment objectives are current income and long-term capital appreciation which it seeks to achieve through investing in equity and fixed income securities. Each Portfolio, other than the Money Market Portfolio, offers Class A, Class B and Class C shares. Class A and Class C shares were first offered on January 1, 1997 and August 1, 1997, respectively. Class A shares are generally subject to an initial sales charge while Class B and Class C shares are generally subject to a deferred sales charge. Class B and Class C shares held for eight and twelve years, respectively, after the end of the calendar month in which the order to purchase was accepted, convert to Class A shares. The conversion is completed without the imposition of any sales charges or other fees. Each class has identical rights to assets and earnings except that only Class B and Class C shares have plans of distribution and bear the related expenses. NOTE 2- Significant Accounting Policies: (a) INVESTMENT VALUATION: Investments of the Portfolios, other than the Money Market Portfolio, 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 time). Listed and unlisted securities for which such information is regularly reported are valued at the last reported sales price or, in the absence of reported sales, at the mean between the bid and asked price or, in the absence of a recent bid or asked price, the equivalent as obtained from one or more of the major market makers for the securities to be valued. Securities for which market quotations are not readily available are valued at fair value, as determined in good faith pursuant to procedures established by the Board of Trustees. The investments of the Money Market Portfolio, and short-term securities held by the other Portfolios having a remaining maturity of sixty days or less, are valued at amortized cost which approximates market value. (b) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income is recognized on the accrual basis. (c) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on the ex-dividend date. The Money Market Portfolio declares dividends daily from net investment income; such dividends are paid monthly. The dividends from net investment income of the other Portfolios are declared and paid annually. With respect to all Portfolios, 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 of net investment income and distributions of capital gains payable to holders of its shares. (d) FEDERAL INCOME TAXES: It is each Portfolio's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its share- -33- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) holders. Provided a Portfolio maintains such compliance, no federal income tax provision is required. Each Portfolio is treated as a separate entity for the purpose of determining such compliance. At October 31, 1997, the net capital loss carryforwards of the Money Market Portfolio which may be used to offset future net realized gains were approximately $78,000, and expire between 1998 and 2005. (e) ALLOCATION METHODS: The Fund accounts separately for the assets, liabilities and operations of each Portfolio. Expenses directly attributable to each Portfolio are charged to that Portfolio's operations; expenses which are applicable to all Portfolios are allocated among them. Income, realized and unrealized gains and losses, and expenses of each Portfolio, other than the Money Market Portfolio, are allocated among the Portfolio's classes based on relative net assets, with the exception of distribution fees which are only applicable to Class B and Class C shares. (f) OTHER: These financial statements have been prepared using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates. NOTE 3- Investment Management Fees and Other Transactions with Affiliates: (a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the provisions of its Investment Management Agreement with Fred Alger Management, Inc. ("Alger Management"), are payable monthly and are computed based on the value of the average daily net assets of each Portfolio at the following annual rates: Growth Portfolio............................ .75% Small Capitalization Portfolio.............. .85 Balanced Portfolio.......................... .75 MidCap Growth Portfolio..................... .80 Capital Appreciation Portfolio.............. .85 Money Market Portfolio...................... .50 (b) DISTRIBUTION FEES: Class B Shares--The Fund has adopted an Amended and Restated Plan of Distribution (the "Plan") pursuant to which Class B shares of each Portfolio, other than the Money Market Portfolio, reimburse Fred Alger & Company, Incorporated, the Fund's distributor (the "Distributor"), for costs and expenses incurred by the Distributor in connection with advertising and marketing Class B shares of the Fund's Portfolios. The distribution fee is not to exceed an annual rate of .75% of the respective average daily net assets of the Class B shares of the designated Portfolios. If in any month, the costs incurred by the Distributor relating to the Class B shares are in excess of the distribution fees charged to the Portfolios, the excess may be carried forward, with interest, and sought to be reimbursed in future periods. As of April 30, 1998, such excess carried forward was approximately $7,660,000, $16,241,000, $216,000, $3,276,000 and $2,044,000 for Class B shares of the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, and the Capital Appreciation Portfolio, respectively. Contingent 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(c) below. Class C Shares--The Fund has adopted a Distribution Plan pursuant to which Class C shares of each Portfolio, other than the Money Market Portfolio, pay the Distributor a fee at the annual rate of .75% of the respective average daily net assets of the Class C shares of the designated Portfolios to compensate the Distributor for its activities and expenses in distributing the Class C shares. The fees charged may be more or less than the expenses incurred by the Distributor. The Distributor has entered into arrangements with broker/dealers for the sale of Class B shares and Class C shares of certain of the Fund's Portfolios. In connec- -34- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) tion with these arrangements, the Distributor has agreed to make payments to these broker/dealers with respect to the Class B shares and Class C shares sold. (c) SALES CHARGES: The purchases and sales of shares of the Portfolios, other than the Money Market Portfolio, may be subject to initial sales charges or contingent deferred sales charges. For the six months ended April 30, 1998, the initial sales charges and contingent deferred sales charges retained by the Distributor were approximately $31,500 and $1,727,734, respectively. The contingent deferred sales charges are used by the Distributor to offset distribution expenses previously incurred. Sales charges do not represent expenses of the Fund. (d) BROKERAGE COMMISSIONS: During the six months ended April 30, 1998, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the Distributor commissions of $528,317, $988,889, $13,401, $378,059 and $448,165, respectively, in connection with securities transactions. (e) TRANSFER AGENT FEES AND EXPENSES: Alger Shareholder Services, Inc. ("Alger Services"), an affiliate of Alger Management, serves as transfer agent for the Fund. During the six months ended April 30, 1998, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio incurred fees of $273,060, $435,150, $26,665, $168,370, $293,660 and $153,375, respectively, for services provided by Alger Services. In addition, during the six months ended April 30, 1998, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio reimbursed Alger Services $98,980, $167,640, $5,120, $39,660, $54,880 and $51,310, respectively, for transfer agent related expenses paid by Alger Services on behalf of the Portfolios. (f) SHAREHOLDER SERVICING FEES: The Fund has entered into a shareholder servicing agreement with the Distributor whereby the Distributor provides each Portfolio, other than the Money Market Portfolio, with ongoing servicing of shareholder accounts. As compensation for such services, each designated Portfolio pays the Distributor a monthly fee at an annual rate equal to .25% of each Portfolio's average daily net assets. (g) Certain trustees and officers of the Fund are directors and officers of Alger Management, the Distributor and Alger Services. NOTE 4- Securities Transactions: The following summarizes the securities transactions by the Fund, other than short-term securities, for the six months ended April 30, 1998 (in thousands): PURCHASES SALES --------- ----- Growth Portfolio......... $242,937 $221,965 Small Capitalization Portfolio.............. 491,319 536,412 Balanced Portfolio....... 8,545 4,990 MidCap Growth Portfolio.............. 169,633 169,553 Capital Appreciation Portfolio.............. 229,764 230,364 NOTE 5- Lines of Credit: The Capital Appreciation Portfolio has lines of credit with banks whereby it may borrow up to 1/3 of the value of its assets, as defined, up to a maximum of $45,000,000. Such borrowings have variable interest rates and are payable on demand. For the six months ended April 30, 1998, the Portfolio had borrowings which averaged $2,656,354 at a weighted average interest rate of 6.48%. -35- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) NOTE 6- Share Capital: The Fund has an unlimited number of authorized shares of beneficial interest of $.001 par value which are presently divided into six series. Each series, other than the Money Market Portfolio, is divided into three separate classes. During the six months ended April 30, 1998, transactions of shares of beneficial interest were as follows:
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 1998 OCTOBER 31, 1997 SHARES AMOUNT SHARES AMOUNT ----------- ------------ ------------ -------------- Alger Growth Portfolio Class A:* Shares sold..................... 4,747,559 $ 53,761,355 5,044,972 $ 51,947,397 Shares converted from Class B... 209,886 2,345,418 2,227,219 22,695,978 Dividends reinvested............ 1,012,458 9,861,339 -- -- Shares redeemed................. (2,439,729) (27,455,302) (2,756,124) (29,211,908) ----------- ------------ ------------ -------------- Net increase.................... 3,530,174 $ 38,512,810 4,516,067 $ 45,431,467 =========== ============ ============ ============== Class B: Shares sold..................... 9,721,572 $107,407,728 19,936,199 $ 209,548,326 Dividends reinvested............ 3,613,386 34,869,174 887,671 8,477,253 Shares converted to Class A..... (212,025) (2,345,418) (2,233,829) (22,695,978) Shares redeemed................. (11,135,348) (124,163,032) (20,141,745) (207,776,866) ----------- ------------ ------------ -------------- Net increase (decrease)......... 1,987,585 $ 15,768,452 (1,551,704) $ (12,447,265) =========== ============ ============ ============== Class C:** Shares sold..................... 114,903 $ 1,245,681 22,512 $ 273,258 Dividends reinvested............ 5,128 49,487 -- -- Shares redeemed................. (19,569) (196,387) (5,189) (61,432) ----------- ------------ ------------ -------------- Net increase.................... 100,462 $ 1,098,781 17,323 $ 211,826 =========== ============ ============ ============== Alger Small Capitalization Portfolio Class A:* Shares sold..................... 20,863,924 $210,601,898 7,681,584 $ 75,848,391 Shares converted from Class B... 671,401 6,741,262 1,829,173 17,139,109 Dividends reinvested............ 120,213 1,097,543 -- -- Shares redeemed................. (19,190,049) (194,506,118) (6,999,709) (69,493,610) ----------- ------------ ------------ -------------- Net increase.................... 2,465,489 $ 23,934,585 2,511,048 $ 23,493,890 =========== ============ ============ ============== Class B: Shares sold..................... 66,769,928 $661,910,315 106,288,557 $1,038,455,771 Dividends reinvested............ 2,899,072 26,265,587 9,868,408 89,901,198 Shares converted to Class A..... (678,153) (6,741,262) (1,835,958) (17,139,109) Shares redeemed................. (70,202,061) (702,866,338) (108,877,400) (1,051,036,361) ----------- ------------ ------------ -------------- Net increase (decrease)......... (1,211,214) $(21,431,698) 5,443,607 $ 60,181,499 =========== ============ ============ ============== Class C:** Shares sold..................... 913,359 $ 9,086,237 42,583 $ 451,031 Dividends reinvested............ 2,485 22,515 -- -- Shares redeemed................. (692,603) (7,010,566) (9,782) (102,933) ----------- ------------ ------------ -------------- Net increase.................... 223,241 $ 2,098,186 32,801 $ 348,098 =========== ============ ============ ==============
-36- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 1998 OCTOBER 31, 1997 SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ Alger Balanced Portfolio Class A:* Shares sold..................... 31,842 $ 502,952 19,407 $ 305,198 Shares converted from Class B... 4,956 72,214 13,383 192,101 Dividends reinvested............ 4,622 65,126 -- -- Shares redeemed................. (26,842) (421,288) (5,110) (80,451) ---------- ------------ ---------- ------------ Net increase.................... 14,578 $ 219,004 27,680 $ 416,848 ========== ============ ========== ============ Class B: Shares sold..................... 283,451 $ 4,268,708 626,022 $ 9,511,649 Dividends reinvested............ 122,289 1,714,490 23,152 328,056 Shares converted to Class A..... (4,985) (72,214) (13,405) (192,101) Shares redeemed................. (153,941) (2,359,724) (817,576) (12,286,748) ---------- ------------ ---------- ------------ Net increase (decrease)......... 246,814 $ 3,551,260 (181,807) $ (2,639,144) ========== ============ ========== ============ Class C:** Shares sold..................... 8,267 $ 126,196 3,179 $ 54,326 Dividends reinvested............ 473 6,646 -- -- Shares redeemed................. (2,472) (38,059) (259) (4,321) ---------- ------------ ---------- ------------ Net increase.................... 6,268 $ 94,783 2,920 $ 50,005 ========== ============ ========== ============ Alger MidCapGrowth Portfolio Class A:* Shares sold..................... 3,728,309 $ 79,986,763 1,533,288 $ 31,807,270 Shares converted from Class B... 18,944 397,365 148,365 2,732,385 Dividends reinvested............ 28,826 526,934 -- -- Shares redeemed................. (3,386,782) (73,157,220) (1,439,653) (29,874,723) ---------- ------------ ---------- ------------ Net increase.................... 389,297 $ 7,753,842 242,000 $ 4,664,932 ========== ============ ========== ============ Class B: Shares sold..................... 5,056,783 $107,443,359 6,111,087 $124,416,537 Dividends reinvested............ 952,240 17,273,632 176,660 3,335,332 Shares converted to Class A..... (19,129) (397,365) (148,651) (2,732,385) Shares redeemed................. (5,053,433) (107,422,769) (5,345,132) (110,043,722) ---------- ------------ ---------- ------------ Net increase.................... 936,461 $ 16,896,857 793,964 $ 14,975,762 ========== ============ ========== ============ Class C:** Shares sold..................... 186,605 $ 3,807,186 5,118 $ 120,922 Dividends reinvested............ 761 13,810 -- -- Shares redeemed................. (160,871) (3,273,557) (1,348) (29,837) ---------- ------------ ---------- ------------ Net increase.................... 26,495 $ 547,439 3,770 $ 91,085 ========== ============ ========== ============
-37- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 1998 OCTOBER 31, 1997 SHARES AMOUNT SHARES AMOUNT -------------- -------------- -------------- -------------- Alger Capital Appreciation Portfolio Class A:* Shares sold..................... 5,777,211 $ 151,368,813 3,241,124 $ 82,052,318 Shares converted from Class B... 33,117 869,006 233,151 5,186,684 Dividends reinvested............ 36,380 843,296 -- -- Shares redeemed................. (5,397,094) (142,286,762) (2,879,210) (73,001,214) -------------- -------------- -------------- -------------- Net increase.................... 449,614 $ 10,794,353 595,065 $ 14,237,788 ============== ============== ============== ============== Class B: Shares sold..................... 9,833,041 $ 253,083,595 12,410,336 $ 304,603,104 Dividends reinvested............ 541,761 12,460,510 43,004 941,804 Shares converted to Class A..... (33,443) (869,006) (233,764) (5,186,684) Shares redeemed................. (9,593,592) (247,689,081) (10,979,223) (267,894,646) -------------- -------------- -------------- -------------- Net increase.................... 747,767 $ 16,986,018 1,240,353 $ 32,463,578 ============== ============== ============== ============== Class C:** Shares sold..................... 379,978 $ 9,741,964 36,710 $ 1,019,125 Dividends reinvested............ 2,031 46,713 -- -- Shares redeemed................. (337,805) (8,634,743) (12,451) (346,883) -------------- -------------- -------------- -------------- Net increase.................... 44,204 $ 1,153,934 24,259 $ 672,242 ============== ============== ============== ============== Alger Money Market Portfolio Shares sold..................... 1,312,044,916 $1,312,044,916 1,583,643,437 $1,583,643,437 Dividends reinvested............ 3,744,393 3,744,393 9,418,392 9,418,392 Shares redeemed................. (1,337,772,094) (1,337,772,094) (1,699,340,499) (1,699,340,499) -------------- -------------- -------------- -------------- Net decrease.................... (21,982,785) $ (21,982,785) (106,278,670) $ (106,278,670) ============== ============== ============== ==============
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