N-30D 1 c24235.txt SEMI-ANNUAL REPORT DEAR SHAREHOLDERS, June 7, 2002 The six months ended April 30 were a roller-coaster in the markets. The Dow opened on November 1, 2001 at 9075 and closed on April 30, 2002 at 9946, while the Nasdaq began at 1690 and closed on April 30, 2002 at 1688. The Dow recovered from the lows it reached in the aftermath of September 11; the Nasdaq's performance was less impressive. Both indices are essentially flat since September, and are in fact largely where they stood in 1998. After a volatile run-up and an equally volatile decline, especially in the technology sector, we are now in a narrow trading range, and we expect that to continue for some time. The last quarter of 2001 was a difficult one for the economy and for the country. The economy had already entered a recession in the summer, but the events of September 11 pushed the markets far lower and raised serious concerns about the future. For much of the fall and into winter, people were focused on national security and the war on terrorism. While the markets staged a rally towards year end, the economy remained stagnant, saved only by a sudden influx of emergency federal spending, very low interest rates, and the stimulating effects of the tax cut. The first quarter of 2002 showed signs that the recession was coming to a swift end and that the economic downturn would be far less severe than some had feared. The recession was largely the result of a halt in business spending and the need for companies to eliminate excess inventories. Consumers, who make up more than two-thirds of America's $10 trillion economy, continued to spend during this period, with personal consumption expenditures growing steadily at a year-over-year rate of more than 3%. Consumers took advantage of low interest rates to purchase cars, refinance home mortgages, and buy consumer goods, which meant that the recession was never particularly steep. Housing starts and home sales remained high, and retail sales remained steady. As a result of the inventory draw-down and government spending, the economy actually grew at an annual rate of 5.6% in the first quarter of 2002, while productivity showed remarkable gains of 8.6%, in part due to increased efficiency brought about by the widespread integration of information technologies. Going forward, the economic outlook is positive. The overwhelming majority of economic data suggests that the recession is over, and that the economy is growing at an estimated rate of about 3% a year, which is less than the heady days of the late 1990s, but very healthy nonetheless. The equity markets and Wall Street in general, however, have been marching to the beat of a different drum and focusing instead on the negatives, which include an unstable international situation and less spectacular corporate earnings than in past years. While the Wall Street mentality and economic reality may diverge for a while, in the end the stock market is a reflection of the economy and what companies are doing. Corporate America has become more efficient and more productive and the overall economy is healthy; sooner rather than later, the stock market will reflect that fact. At Alger, we remain committed to identifying those companies that continue to carve out new markets and that innovatively recreate their businesses so that they can grow rapidly. This is a challenging market, no doubt, but one that can reward those who identify the best growth companies and invest in them. Respectfully submitted, /s/ Dan C. Chung ----------------------- Dan C. Chung Chief Investment Officer -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- Alger LargeCap Growth Portfolio: Schedule of Investments ................................. 4 Financial Highlights .................................... 6 Alger Small Capitalization Portfolio: Schedule of Investments ................................. 9 Financial Highlights .................................... 12 Alger Balanced Portfolio: Schedule of Investments ................................. 15 Financial Highlights .................................... 18 Alger MidCap Growth Portfolio: Schedule of Investments ................................. 21 Financial Highlights .................................... 23 Alger Capital Appreciation Portfolio: Schedule of Investments ................................. 26 Financial Highlights .................................... 28 Alger Money Market Portfolio: Schedule of Investments ................................. 31 Financial Highlights .................................... 32 Statements of Assets and Liabilities ...................................... 33 Statements of Operations .................................................. 34 Statements of Changes in Net Assets ....................................... 35 Notes to Financial Statements ............................................. 37 -4- THE ALGER FUND ALGER LARGECAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2002 Common Stocks--96.0% Shares Value ------ ----- AEROSPACE & DEFENSE--2.0% General Dynamics Corporation ............... 161,400 $ 15,670,326 ------------ AUTOMOTIVE--.8% General Motors Corporation ................. 91,955 5,898,913 ------------ BANKS--1.1% Fifth Third Bancorp ........................ 120,550 8,268,525 ------------ BEVERAGES--1.6% Anheuser-Busch Companies, Inc. ............. 236,400 12,529,200 ------------ BIOTECHNOLOGY--1.2% Immunex Corporation*+ ...................... 340,700 9,246,598 ------------ BUSINESS SERVICES--1.9% Siebel Systems, Inc.* ...................... 624,200 15,099,398 ------------ COMMERCIAL SERVICES & SUPPLIES--7.5% Cendant Corporation*+ ...................... 464,200 8,350,958 Concord EFS, Inc.* ......................... 423,695 13,808,220 eBay Inc.*+ ................................ 460,900 24,473,790 First Data Corporation ..................... 143,525 11,408,802 ------------ 58,041,770 ------------ COMMUNICATION EQUIPMENT--.4% Cisco Systems, Inc.* ....................... 234,500 3,435,425 ------------ COMPUTERS & PERIPHERALS--5.2% Dell Computer Corporation* ................. 748,875 19,725,368 Sun Microsystems, Inc.* .................... 2,551,650 20,872,497 ------------ 40,597,865 ------------ CONSUMER PRODUCTS--2.6% NIKE, Inc. Cl. B ........................... 73,510 3,920,288 Procter & Gamble Company (The) ............. 182,700 16,490,502 ------------ 20,410,790 ------------ DEFENSE--2.0% Lockheed Martin Corporation ................ 253,500 15,945,150 ------------ DIVERSIFIED FINANCIALS--4.1% Capital One Financial Corporation+ ......... 131,200 7,857,568 Citigroup Inc. ............................. 168,788 7,308,520 Federal Home Loan Mortgage Corporation .............................. 117,325 7,667,189 J.P. Morgan Chase & Co. .................... 265,740 9,327,474 ------------ 32,160,751 ------------ ELECTRIC UTILITIES--1.5% Duke Energy Corporation .................... 310,200 11,889,966 ------------ ENERGY EQUIPMENT & SERVICES--1.1% Nabors Industries, Inc.*+ .................. 180,045 $ 8,201,050 ------------ HEALTHCARE EQUIPMENT & SUPPLIES--5.4% Baxter International Inc. .................. 400,510 22,789,019 Medtronic, Inc. ............................ 430,300 19,230,107 ------------ 42,019,126 ------------ HEALTHCARE PROVIDERS & SERVICES--5.1% Tenet Healthcare Corporation* .............. 266,025 19,518,254 UnitedHealth Group Incorporated ............ 225,225 19,777,007 ------------ 39,295,261 ------------ HOTELS, RESTAURANTS & LEISURE--1.6% Carnival Corporation Cl. A ................. 363,700 12,114,847 ------------ INDUSTRIAL CONGLOMERATES--.5% 3M Co. ..................................... 33,500 4,214,300 ------------ INSURANCE--4.4% Chubb Corporation (The) .................... 152,275 11,679,492 Travelers Property Casualty Corp. Cl. A*+ ............................ 367,700 6,835,543 XL Capital Ltd. Cl. A ...................... 166,008 15,662,855 ------------ 34,177,890 ------------ MEDIA--3.4% AOL Time Warner Inc.* ...................... 488,950 9,299,829 Viacom Inc. Cl. B* ......................... 356,300 16,781,730 ------------ 26,081,559 ------------ MULTILINE RETAIL--5.0% Target Corporation ......................... 377,035 16,457,577 Wal-Mart Stores, Inc. ...................... 407,460 22,760,716 ------------ 39,218,293 ------------ OIL & GAS--4.7% Anadarko Petroleum Corporation ............. 289,890 15,601,880 ChevronTexaco Corporation .................. 237,554 20,598,307 ------------ 36,200,187 ------------ PHARMACEUTICALS--13.0% Abbott Laboratories ........................ 293,825 15,851,859 Johnson & Johnson .......................... 394,475 25,191,174 Pfizer Inc. ................................ 636,910 23,151,679 Pharmacia Corporation ...................... 543,125 22,393,044 Wyeth ...................................... 258,394 14,728,457 ------------ 101,316,213 ------------ RETAIL--.5% Walgreen Co. ............................... 103,900 3,924,303 ------------ -5- THE ALGER FUND ALGER LARGECAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2002 Common Stocks--(cont.) Shares Value ------ ----- SEMICONDUCTORS--11.9% Analog Devices, Inc.* ...................... 198,600 $ 7,340,256 Applied Materials, Inc.* ................... 909,625 22,122,080 Intel Corporation .......................... 865,275 24,755,518 Maxim Integrated Products, Inc.* ........... 208,450 10,380,810 Micron Technology, Inc.* ................... 282,375 6,692,287 Taiwan Semiconductor Manufacturing Company Ltd.* ............................ 1,218,900 21,574,530 ----------- 92,865,481 ----------- SOFTWARE--4.3% Microsoft Corporation* ..................... 505,960 26,441,470 VERITAS Software Corporation * ............. 251,200 7,119,008 ----------- 33,560,478 ----------- SPECIALTY RETAIL--3.2% Home Depot, Inc. ........................... 204,525 9,483,824 Lowe's Companies, Inc. ..................... 360,750 15,256,118 ----------- 24,739,942 ----------- Total Common Stocks (Cost $756,426,122) ...................... 747,123,607 ----------- Principal Short-Term Investments--3.0% Amount Value -------- ----- U.S. GOVERNMENT & AGENCY OBLIGATIONS--.1% Student Loan Marketing Association, 1.79%, 5/1/02 (Cost $400,000) .......................... $400,000 $ 400,000 ------------ OTHER SHORT-TERM INVESTMENTS--2.9% Shares -------- Securities Lending Quality Trust (Cost $23,032,831) (b) ................... 23,032,831 23,032,831 ------------ Total Short-Term Investments (Cost $23,432,831) ....................... 23,432,831 ------------ Total Investments (Cost $779,858,953)(a) ................... 99.0% 770,556,438 Other Assets in Excess of Liabilities ...... 1.0 7,519,258 ------ ------------ Net Assets ................................. 100.0% $778,075,696 ====== ============ * Non-income producing security. + Securities partially or fully on loan. (a) At April 30, 2002, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $779,858,953, amounted to $9,302,515 which consisted of aggregate gross unrealized appreciation of $36,519,582 and aggregate gross unrealized depreciation of $45,822,097. (b) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. -6- THE ALGER FUND ALGER LARGECAP GROWTH PORTFOLIO (i) Financial Highlights For a share outstanding throughout the period
CLASS A (ii) Six Months Ten Months ------------ Ended Year Ended October 31, Ended April 30, -------------------------------------------------- October 31, 2002(iii)(vi) 2001 2000 1999 1998 1997(iii) ------------ --------- --------- --------- --------- --------- Net asset value, beginning of period ... $ 9.47 $ 14.09 $ 15.47 $ 12.19 $ 11.58 $ 9.40 --------- --------- --------- --------- --------- --------- Net investment income (loss) ........... (.02)(iv) (.04)(iv) (.05)(iv) (.07)(iv) (.03)(iv) (.02) Net realized and unrealized gain (loss) on investments ....................... (.10) (3.64) 1.33 4.64 2.13 2.20 --------- --------- --------- --------- --------- --------- Total from investment operations ....... (.12) (3.68) 1.28 4.57 2.10 2.18 Distributions from net realized gains .. -- (.94) (2.66) (1.29) (1.49) -- --------- --------- --------- --------- --------- --------- Net asset value, end of period ......... $ 9.35 $ 9.47 $ 14.09 $ 15.47 $ 12.19 $ 11.58 ========= ========= ========= ========= ========= ========= Total Return (v) ....................... (1.3%) (27.4%) 8.0% 40.4% 21.4% 23.2% ========= ========= ========= ========= ========= ========= Ratios and Supplemental Data: Net assets, end of period (000's omitted) .................... $248,831 $230,637 $324,130 $228,896 $121,930 $ 52,307 ========= ========= ========= ========= ========= ========= Ratio of expenses to average net assets ......................... 1.31% 1.26% 1.20% 1.21% 1.25% 1.30% ========= ========= ========= ========= ========= ========= Ratio of net investment income (loss) to average net assets .............. (.46%) (.35%) (.32%) (.50%) (.23%) (.39%) ========= ========= ========= ========= ========= ========= Portfolio Turnover Rate .............. 106.92% 91.40% 96.13% 205.94% 146.64% 128.26% ========= ========= ========= ========= ========= =========
(i) Prior to September 29, 2000 the Alger LargeCap Growth Portfolio was the Alger Growth Portfolio. (ii) Initially offered January 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -7- THE ALGER FUND ALGER LARGECAP GROWTH PORTFOLIO (i) Financial Highlights For a share outstanding throughout the period
CLASS B Six Months ------- Ended Year Ended October 31, April 30, ------------------------------------------------------------------ 2002(ii) 2001 2000 1999 1998 1997 -------- -------- -------- -------- -------- -------- Net asset value, beginning of period ...... $ 9.02 $ 13.58 $ 15.09 $ 12.00 $ 11.50 $ 9.49 -------- -------- -------- -------- -------- -------- Net investment income (loss) .............. (.06)(iii) (.12)(iii) (.16)(iii) (.18)(iii) (.11)(iii) (.13) Net realized and unrealized gain (loss) on investments .......................... (.08) (3.50) 1.31 4.56 2.10 2.44 -------- -------- -------- -------- -------- -------- Total from investment operations .......... (.14) (3.62) 1.15 4.38 1.99 2.31 Distributions from net realized gains ..... -- (.94) (2.66) (1.29) (1.49) (.30) -------- -------- -------- -------- -------- -------- Net asset value, end of period ............ $ 8.88 $ 9.02 $ 13.58 $ 15.09 $ 12.00 $ 11.50 ======== ======== ======== ======== ======== ======== Total Return (iv) ......................... (1.6%) (28.1%) 7.2% 39.3% 20.5% 24.9% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ....................... $478,854 $581,770 $902,091 $770,311 $390,885 $304,984 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets ............................ 2.06% 2.01% 1.96% 1.96% 2.00% 2.08% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ................. (1.20%) (1.09%) (1.07%) (1.26%) (.98%) (1.13%) ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ................. 106.92% 91.40% 96.13% 205.94% 146.64% 128.26% ======== ======== ======== ======== ======== ========
(i) Prior to September 29, 2000 the Alger LargeCap Growth Portfolio was the Alger Growth Portfolio. (ii) Unaudited. Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect the effect of any sales charges. See Notes to Financial Statements. -8- THE ALGER FUND ALGER LARGECAP GROWTH PORTFOLIO (i) Financial Highlights For a share outstanding throughout the period
CLASS C (ii) Six Months Three Months ------------ Ended Year Ended October 31, Ended April 30, ------------------------------------------- October 31, 2002 (iii)(vi) 2001 2000 1999 1998 1997(iii) ------------- -------- -------- -------- -------- ------- Net asset value, beginning of period ..... $ 9.02 $ 13.57 $ 15.08 $ 12.00 $ 11.50 $ 11.98 -------- -------- -------- -------- -------- ------- Net investment income (loss) ............. (.06)(iv) (.12)(iv) (.16)(iv) (.18)(iv) (.11)(iv) (.02) Net realized and unrealized gain (loss) on investments ......................... (.08) (3.49) 1.31 4.55 2.10 (.46) -------- -------- -------- -------- -------- ------- Total from investment operations ......... (.14) (3.61) 1.15 4.37 1.99 (.48) Distributions from net realized gains .... -- (.94) (2.66) (1.29) (1.49) -- -------- -------- -------- -------- -------- ------- Net asset value, end of period ........... $ 8.88 $ 9.02 $ 13.57 $ 15.08 $ 12.00 $ 11.50 ======== ======== ======== ======== ======== ======= Total Return (v) ......................... (1.6%) (28.0%) 7.2% 39.2% 20.5% (4.0%) ======== ======== ======== ======== ======== ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted) ...................... $ 50,391 $ 48,918 $ 65,893 $ 31,500 $ 3,312 $ 199 ======== ======== ======== ======== ======== ======= Ratio of expenses to average net assets ........................... 2.06% 2.01% 1.95% 1.97% 2.00% 2.02% ======== ======== ======== ======== ======== ======= Ratio of net investment income (loss) to average net assets ................ (1.22%) (1.10%) (1.08%) (1.30%) (.97%) (1.43%) ======== ======== ======== ======== ======== ======= Portfolio Turnover Rate ................ 106.92% 91.40% 96.13% 205.94% 146.64% 128.26% ======== ======== ======== ======== ======== =======
(i) Prior to September 29, 2000 the Alger LargeCap Growth Portfolio was the Alger Growth Portfolio. (ii) Initially offered August 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -9- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2002 Common Stocks--96.7% Shares Value ------ ----- AEROSPACE & DEFENSE--.9% EDO Corporation ............................ 57,400 $ 1,776,530 ----------- AIRLINES--.5% ExpressJet Holdings, Inc.* ................. 65,600 941,360 ----------- AUTOMOTIVE EQUIPMENT & SERVICES--.9% Advance Auto Parts, Inc.* .................. 28,550 1,690,160 ----------- BANKS--3.1% IndyMac Bancorp, Inc.* ..................... 51,000 1,287,750 Investors Financial Services Corp. ......... 20,250 1,491,210 UCBH Holdings, Inc. ........................ 57,700 2,276,265 Webster Financial Corporation .............. 26,000 1,030,380 ----------- 6,085,605 ----------- BEVERAGES--1.6% Constellation Brands, Inc. Cl. A* .......... 52,650 3,180,060 ----------- BIOTECHNOLOGY--6.7% Alkermes, Inc. * ........................... 32,450 653,543 ArQule Inc.* ............................... 60,850 578,075 Charles River Laboratories International, Inc.* ..................... 115,950 3,472,703 Exelixis, Inc.* ............................ 90,350 894,465 InterMune Inc.*+ ........................... 32,000 856,000 Isis Pharmaceuticals, Inc.* ................ 59,600 754,535 Neurocrine Biosciences, Inc.* .............. 28,000 920,920 NPS Pharmaceuticals, Inc.* ................. 87,850 2,618,809 OSI Pharmaceuticals, Inc.* ................. 34,700 1,109,359 Regeneron Pharmaceuticals, Inc.*+ .......... 52,100 1,075,865 ----------- 12,934,274 ----------- BROADCASTING--2.3% Cumulus Media Inc., Cl. A * ................ 152,400 2,854,452 Entercom Communications Corp. .............. 30,600 1,598,850 ----------- 4,453,302 ----------- BUSINESS SERVICES--.4% Administaff, Inc.* ......................... 37,820 867,969 ----------- CHEMICALS--1.1% Crompton Corporation ....................... 174,550 2,103,327 ----------- COMMERCIAL SERVICES & SUPPLIES--5.9% BISYS Group, Inc. (The)* ................... 91,760 3,138,192 Career Education Corporation* .............. 28,350 1,274,332 ChoicePoint Inc.* .......................... 50,600 2,805,264 Corporate Executive Board Company (The)* ........................... 29,200 1,109,600 Education Management Corporation* ............................. 43,750 1,886,500 FreeMarkets Inc.*+ ......................... 70,875 1,258,740 ----------- 11,472,628 ----------- COMMUNICATION EQUIPMENT--2.8% Adaptec, Inc.* ............................. 107,850 1,585,395 Alpha Industries, Inc. ..................... 79,450 973,263 Finisar Corporation*+ ...................... 300,200 1,918,278 Powerwave Technologies, Inc.* .............. 80,550 961,766 ----------- 5,438,702 ----------- COMPUTER SOFTWARE--1.8% J. D. Edwards & Company* ................... 62,250 690,975 Manugistics Group, Inc.* ................... 110,450 1,740,692 Peregrine Systems, Inc.* ................... 162,150 1,110,728 ----------- 3,542,395 ----------- COMPUTERS & PERIPHERALS--.7% Synaptics Incorporated* .................... 80,600 1,356,498 ----------- DIVERSIFIED FINANCIALS--2.1% Affiliated Managers Group, Inc.* ........... 37,050 2,356,380 LaBranche & Co. Inc.* ...................... 62,030 1,699,622 ----------- 4,056,002 ----------- EDUCATION--1.3% Corinthian Colleges, Inc.* ................. 43,750 2,576,438 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS--2.7% AMETEK, Inc. ............................... 35,225 1,364,264 Benchmark Electronics, Inc.* ............... 32,500 988,000 Kopin Corporation* ......................... 136,550 1,084,207 Technitrol, Inc. ........................... 68,200 1,732,280 ----------- 5,168,751 ----------- ENERGY EQUIPMENT & SERVICES--3.0% Cooper Cameron Corporation* ................ 49,550 2,717,322 Smith International, Inc.* ................. 43,050 3,015,653 ----------- 5,732,975 ----------- FINANCIAL SERVICES--.9% Doral Financial Corp. ...................... 47,300 1,652,662 ----------- FOOD & BEVERAGES--1.4% American Italian Pasta Company Cl. A* ........................... 53,750 2,673,525 ----------- FOOD & DRUG RETAILING--1.2% Duane Reade Inc.* .......................... 71,300 2,263,775 ----------- HEALTHCARE EQUIPMENT & SUPPLIES--3.1% ArthroCare Corporation* .................... 62,150 995,643 Cerus Corporation*+ ........................ 16,800 860,328 Endocare, Inc.* ............................ 44,000 844,360 Haemonetics Corporation* ................... 29,580 980,281 Integra LifeSciences Holdings* ............. 49,950 974,025 -10- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2002 Common Stocks--(cont.) Shares Value ------ ----- HEALTHCARE EQUIPMENT & SUPPLIES--(cont.) STERIS Corporation* .......................... 43,350 $ 960,203 Urologix, Inc.* .............................. 28,500 393,015 ------------ 6,007,855 ------------ HEALTHCARE PROVIDERS & SERVICES--9.3% Accredo Health, Incorporated* ................ 65,400 4,233,342 AMN Healthcare Services, Inc.* ............... 38,000 1,170,780 Covance Inc.* ................................ 139,500 2,799,765 Cross Country, Inc.* ......................... 48,100 1,455,506 Eclipsys Corporation* ........................ 160,650 2,572,166 LifePoint Hospitals, Inc.* ................... 33,200 1,394,400 Triad Hospitals, Inc.* ....................... 40,500 1,701,000 Unilab Corporation* .......................... 88,200 2,643,354 ------------ 17,970,313 ------------ HOTELS, RESTAURANTS & LEISURE--3.7% AFC Enterprises, Inc.* ....................... 59,875 2,013,596 Alliance Gaming Corporation* ................. 67,400 1,002,912 Applebee's International, Inc. ............... 55,850 2,180,384 Panera Bread Company Cl. A* .................. 28,850 1,934,970 ------------ 7,131,862 ------------ HOUSEHOLD DURABLES--1.3% Mohawk Industries, Inc.* ..................... 39,289 2,527,461 ------------ INFORMATION TECHNOLOGY CONSULTING & SERVICES--1.3% Caminus Corporation* ......................... 89,000 1,661,630 Documentum, Inc.* ............................ 48,000 932,160 ------------ 2,593,790 ------------ INSURANCE--3.7% Arch Capital Group Ltd.* ..................... 53,400 1,558,212 HCC Insurance Holdings, Inc. ................. 70,800 1,840,800 RenaissanceRe Holdings Ltd. .................. 21,220 2,486,984 W. R. Berkley Corporation .................... 21,940 1,327,370 ------------ 7,213,366 ------------ INTERNET SOFTWARE & SERVICES--1.0% Internet Security Systems, Inc.* ............. 18,500 362,600 Netegrity, Inc.* ............................. 36,050 275,782 Overture Services, Inc.* ..................... 38,750 1,324,863 ------------ 1,963,245 ------------ LEISURE & ENTERTAINMENT--.7% Hollywood Entertainment Corporation* ............................... 60,700 1,252,848 ------------ LEISURE EQUIPMENT & PRODUCTS--2.1% Action Performance Companies, Inc.* ........................... 60,550 2,848,878 Activision, Inc* ............................. 36,150 1,138,002 ------------ 3,986,880 ------------ MACHINERY--2.4% Flowserve Corporation* ....................... 71,700 2,473,650 Pentair, Inc. ................................ 45,460 2,207,538 ------------ 4,681,188 ------------ MEDIA--1.0% Radio One, Inc. Cl. A* ....................... 65,500 1,467,200 Radio One, Inc. Cl. D* ....................... 21,300 455,820 ------------ 1,923,020 ------------ MEDICAL DEVICES--.8% Wright Medical Group, Inc.* .................. 79,110 1,499,926 ------------ OIL & GAS--1.6% Spinnaker Exploration Company* ............... 70,600 3,025,210 ------------ PERSONAL PRODUCTS--.8% Yankee Candle Company, Inc. (The)* ................................ 70,565 1,548,196 ------------ PHARMACEUTICALS--1.8% Angiotech Pharmaceuticals, Inc.* ............. 24,485 941,692 Barr Laboratories, Inc.* ..................... 12,500 833,125 Kos Pharmaceuticals, Inc.*+ .................. 29,800 774,800 Ligand Pharmaceuticals Incorporated Cl. B* ........................ 58,900 917,073 ------------ 3,466,690 ------------ RETAIL--1.3% Michaels Stores, Inc.* ....................... 64,350 2,602,958 ------------ SEMICONDUCTORS--7.9% Cirrus Logic, Inc.* .......................... 130,850 1,589,828 Integrated Circuit Systems, Inc.* ............ 98,100 1,952,190 International Rectifier Corporation* ......... 45,350 2,091,542 Microsemi Corporation* ....................... 8,090 107,193 Microtune, Inc.* ............................. 108,100 1,205,315 MKS Instruments, Inc.* ....................... 56,500 1,914,785 Photronics, Inc.* ............................ 61,100 2,013,245 Power Integrations, Inc.* .................... 79,650 1,684,598 Semtech Corp. ................................ 29,000 927,420 Zoran Corporation* ........................... 49,500 1,792,395 ------------ 15,278,511 ------------ -11- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2002 Common Stocks--(cont.) Shares Value ------ ----- SOFTWARE--4.9% Borland Software Corporation* ............... 155,300 $ 1,692,770 Fair, Isaac and Company, Incorporated .............................. 62,200 3,467,027 NetIQ Corporation* .......................... 45,450 1,019,444 Synopsys, Inc.* ............................. 30,675 1,383,749 THQ Inc. * .................................. 54,750 1,919,535 ------------ 9,482,525 ------------ SPECIALTY RETAIL--5.1% AnnTaylor Stores Corporation* ............... 43,650 1,897,466 Barnes & Noble, Inc.* ....................... 47,800 1,444,516 Chico's FAS, Inc.* .......................... 48,525 1,750,782 Christopher & Banks Corporation* ............ 30,250 1,124,393 Circuit City Stores, Inc. - CarMax Group*+ ................................... 64,000 1,888,000 Copart, Inc.* ............................... 27,700 426,302 Electronics Boutique Holdings Corp.* .................................... 48,250 1,372,230 ------------ 9,903,689 ------------ TEXTILES & APPAREL--1.2% Coach, Inc.* ................................ 42,200 2,363,200 ------------ TRANSPORTATION--.4% Swift Transportation Co. Inc.* .............. 43,550 $ 847,047 ------------ Total Common Stocks (Cost $171,507,587) ....................... 187,236,718 ------------ Principal Short-Term Investments--3.3% Amount ------ U.S. GOVERNMENT & AGENCY OBLIGATIONS Federal Home Loan Mortgage Corporation, 1.79%, 5/1/02 ................ $2,300,000 2,300,000 Student Loan Marketing Association, 1.79%, 5/1/02 ................ 4,000,000 4,000,000 ------------ Total U.S. Government & Agency Obligations (Cost $6,300,000) ............. 6,300,000 ------------ Total Investments (Cost $177,807,587)(a) .................... 100.0% 193,536,718 Other Assets in Excess of Liabilities ....... 0.0 93,279 ------ ------------ Net Assets .................................. 100.0% $193,629,997 ====== ============ * Non-income producing security. + Securities partially or fully on loan. (a) At April 30, 2002, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $177,807,587, amounted to $15,729,131 which consisted of aggregate gross unrealized appreciation of $28,213,403 and aggregate gross unrealized depreciation of $12,484,272. See Notes to Financial Statements. -12- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS A (i) Six Months Ten Months ----------- Ended Year Ended October 31, Ended April 30, ---------------------------------------------------- October 31, 2002(ii)(v) 2001 2000 1999 1998 1997(ii) ----------- -------- -------- --------- -------- -------- Net asset value, beginning of period ..... $ 3.54 $ 8.81 $ 10.35 $ 8.74 $ 10.35 $ 9.21 -------- -------- -------- --------- -------- -------- Net investment income (loss) ............. (.03)(iii) (.04)(iii) (.08)(iii) (.08)(iii) (.06)(iii) (.04) Net realized and unrealized gain (loss) on investments ........................... .27 (3.41) .35 2.71 (1.04) 1.18 -------- -------- -------- --------- -------- -------- Total from investment operations ......... .24 (3.45) .27 2.63 (1.10) 1.14 Distributions from net realized gains .... -- (1.82) (1.81) (1.02) (.51) -- -------- -------- -------- --------- -------- -------- Net asset value, end of period ........... $ 3.78 $ 3.54 $ 8.81 $ 10.35 $ 8.74 $ 10.35 ======== ======== ======== ======== ======== ======== Total Return (iv) ........................ 6.8% (46.6%) .4% 32.7% (10.9%) 12.4% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ...................... $ 67,371 $ 64,164 $111,665 $ 69,986 $ 59,516 $ 25,996 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets ........................... 1.66% 1.54% 1.41% 1.38% 1.37% 1.38% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ................ (1.46%) (.95%) (.81%) (.79%) (.71%) (.93%) ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ................ 78.72% 195.72% 207.19% 110.92% 157.26% 120.27% ======== ======== ======== ======== ======== ========
(i) Initially offered January 1, 1997. (ii) Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect the effect of any sales charges. (v) Unaudited. See Notes to Financial Statements. -13- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO Financial Highlights For a share outstanding throughout the period
Class B Six Months ------- Ended Year Ended October 31, April 30, ------------------------------------------------------------------- 2002(i) 2001 2000 1999 1998 1997 --------- -------- -------- -------- -------- -------- Net asset value, beginning of period ..... $ 3.36 $ 8.52 $ 10.13 $ 8.61 $ 10.29 $ 10.86 -------- -------- -------- -------- -------- -------- Net investment income (loss) ............. (.04)(ii) (.08)(ii) (.16)(ii) (.15)(ii) (.14)(ii) (.11) Net realized and unrealized gain (loss) on investments ........................... .26 (3.26) .36 2.69 (1.03) 1.28 -------- -------- -------- -------- -------- -------- Total from investment operations ......... .22 (3.34) .20 2.54 (1.17) 1.17 Distributions from net realized gains .... -- (1.82) (1.81) (1.02) (.51) (1.74) -------- -------- -------- -------- -------- -------- Net asset value, end of period ........... $ 3.58 $ 3.36 $ 8.52 $ 10.13 $ 8.61 $ 10.29 ======== ======== ======== ========= ======== ======== Total Return (iii) ....................... 6.6% (47.0%) (.4%) 32.1% (11.6%) 12.9% ======== ======== ======== ========= ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ...................... $121,375 $130,559 $325,382 $ 419,842 $460,788 $580,651 ======== ======== ======== ========= ======== ======== Ratio of expenses to average net assets ........................... 2.41% 2.28% 2.14% 2.14% 2.12% 2.14% ======== ======== ======== ========= ======== ======== Ratio of net investment income (loss) to average net assets ................ (2.22%) (1.66%) (1.58%) (1.58%) (1.51%) (1.67%) ======== ======== ======== ========= ======== ======== Portfolio Turnover Rate ................ 78.72% 195.72% 207.19% 110.92% 157.26% 120.27% ======== ======== ======== ========= ======== ========
(i) Unaudited. 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. See Notes to Financial Statements. -14- THE ALGER FUND ALGER SMALL CAPITALIZATION PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS C (i) Six Months Three Months ----------- Ended Year Ended October 31, Ended April 30, ---------------------------------------------------- October 31, 2002(ii)(v) 2001 2000 1999 1998 1997(ii) ----------- -------- --------- -------- -------- ------- Net asset value, beginning of period .... $ 3.36 $ 8.53 $ 10.13 $ 8.59 $ 10.29 $ 10.38 -------- -------- --------- -------- -------- ------- Net investment income (loss) ............ (.04)(iii) (.08)(iii) (.16)(iii) (.16)(iii) (.10)(iii) (.03) Net realized and unrealized gain (loss) on investments ........................ .26 (3.27) .37 2.72 (1.09) (.06) -------- -------- --------- -------- -------- ------- Total from investment operations ........ .22 (3.35) .21 2.56 (1.19) (.09) Distributions from net realized gains ... -- (1.82) (1.81) (1.02) (.51) -- -------- -------- --------- -------- -------- ------- Net asset value, end of period .......... $ 3.58 $ 3.36 $ 8.53 $ 10.13 $ 8.59 $ 10.29 ======== ======== ========= ======== ======== ======= Total Return (iv) ....................... 6.6% (47.0%) (.3%) 32.4% (11.8%) (.9%) ======== ======== ========= ======== ======== ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted) ..................... $ 4,884 $ 4,234 $ 11,103 $ 7,659 $ 4,838 $ 338 ======== ======== ========= ======== ======== ======= Ratio of expenses to average net assets .......................... 2.40% 2.28% 2.15% 2.13% 2.11% 2.09% ======== ======== ========= ======== ======== ======= Ratio of net investment income (loss) to average net assets ............... (2.22%) (1.66%) (1.57%) (1.55%) (1.36%) (1.71%) ======== ======== ========= ======== ======== ======= Portfolio Turnover Rate ............... 78.72% 195.72% 207.19% 110.92% 157.26% 120.27% ======== ======== ========= ======== ======== =======
(i) Initially offered August 1, 1997. (ii) Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect the effect of any sales charges. (v) Unaudited. See Notes to Financial Statements. -15- THE ALGER FUND ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2002 Common Stocks--58.4% Shares Value ------ ----- AEROSPACE & DEFENSE--1.2% General Dynamics Corporation .... 41,325 $ 4,012,244 ------------ AUTOMOTIVE--.4% General Motors Corporation ...... 22,425 1,438,564 ------------ BANKS--.6% Fifth Third Bancorp ............. 29,600 2,030,264 ------------ BEVERAGES--1.0% Anheuser-Busch Companies, Inc. .. 59,600 3,158,800 ------------ BIOTECHNOLOGY--1.1% Genzyme Corp.-General Division* . 24,050 984,607 Immunex Corporation* ............ 91,150 2,473,811 ------------ 3,458,418 ------------ BUSINESS SERVICES--1.1% Siebel Systems, Inc.* ........... 152,925 3,699,256 ------------ COMMERCIAL SERVICES & SUPPLIES--4.5% Cendant Corporation* ............ 111,000 1,996,890 Concord EFS, Inc.* .............. 108,550 3,537,645 eBay Inc.*+ ..................... 115,350 6,125,085 First Data Corporation .......... 36,650 2,913,308 ------------ 14,572,928 ------------ COMMUNICATION EQUIPMENT--.3% Cisco Systems, Inc.* ............ 62,400 914,160 ------------ COMPUTERS & PERIPHERALS--3.2% Dell Computer Corporation* ...... 192,050 5,058,597 Sun Microsystems, Inc.* ......... 638,450 5,222,521 ------------ 10,281,118 ------------ CONSUMER PRODUCTS--1.6% NIKE, Inc. Cl. B ................ 18,380 980,205 Procter & Gamble Company (The) .. 46,100 4,160,985 ------------ 5,141,190 ------------ DEFENSE--1.3% Lockheed Martin Corporation ..... 64,900 4,082,210 ------------ DIVERSIFIED FINANCIALS--2.6% Capital One Financial Corporation 38,725 2,319,240 Citigroup Inc. .................. 43,291 1,874,500 Federal Home Loan Mortgage Corporation ................... 30,050 1,963,768 J.P. Morgan Chase & Co. ......... 68,700 2,411,370 ------------ 8,568,878 ------------ ELECTRIC UTILITIES--1.0% Duke Energy Corporation ......... 83,300 3,192,889 ------------ ENERGY EQUIPMENT & SERVICES--.6% Nabors Industries, Inc.*+ ....... 46,025 $ 2,096,439 ------------ HEALTHCARE EQUIPMENT & SUPPLIES--3.3% Baxter International Inc. ....... 104,900 5,968,810 Medtronic, Inc. ................. 106,750 4,770,658 ------------ 10,739,468 ------------ HEALTHCARE PROVIDERS & SERVICES--3.1% Tenet Healthcare Corporation* ... 68,100 4,996,497 UnitedHealth Group Incorporated . 57,675 5,064,442 ------------ 10,060,939 ------------ HOTELS, RESTAURANTS & LEISURE--1.0% Carnival Corporation Cl. A ...... 93,100 3,101,161 ------------ INDUSTRIAL CONGLOMERATES--.3% 3M Co. .......................... 8,500 1,069,300 ------------ INSURANCE--2.7% Chubb Corporation (The) ......... 38,900 2,983,630 Travelers Property Casualty Corp. Cl. A* .................. 100,080 1,860,487 XL Capital Ltd. Cl. A ........... 42,425 4,002,799 ------------ 8,846,916 ------------ MEDIA--2.1% AOL Time Warner Inc.* ........... 138,975 2,643,305 Viacom Inc. Cl. B* .............. 87,425 4,117,716 ------------ 6,761,021 ------------ MULTILINE RETAIL--3.0% Target Corporation .............. 92,250 4,026,713 Wal-Mart Stores, Inc. ........... 104,100 5,815,026 ------------ 9,841,739 ------------ OIL & GAS--2.8% Anadarko Petroleum Corporation .. 74,200 3,993,444 ChevronTexaco Corporation ....... 60,742 5,266,939 ------------ 9,260,383 ------------ PHARMACEUTICALS--7.8% Abbott Laboratories ............. 76,875 4,147,406 Johnson & Johnson ............... 96,225 6,144,929 Pfizer Inc. ..................... 163,050 5,926,868 Pharmacia Corporation ........... 133,250 5,493,897 Wyeth ........................... 66,141 3,770,037 ------------ 25,483,137 ------------ RETAIL--.3% Walgreen Co. .................... 26,150 987,685 ------------ -16- THE ALGER FUND ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2002 Common Stocks--(cont.) Shares Value ------ ----- SEMICONDUCTORS--7.1% Analog Devices, Inc.* ............ 48,450 $ 1,790,712 Applied Materials, Inc.* ......... 237,975 5,787,552 Intel Corporation ................ 211,025 6,037,425 Maxim Integrated Products, Inc.* . 53,600 2,669,280 Micron Technology, Inc.* ......... 68,875 1,632,338 Taiwan Semiconductor Manufacturing Company Ltd.* .................. 303,950 5,379,915 ------------ 23,297,222 ------------ SOFTWARE--2.6% Microsoft Corporation* ........... 126,700 6,621,342 VERITAS Software Corporation * ... 66,700 1,890,278 ------------ 8,511,620 ------------ SPECIALTY RETAIL--1.8% Home Depot, Inc. ................. 51,575 2,391,533 Lowe's Companies, Inc. ........... 78,900 3,336,681 ------------ 5,728,214 ------------ Total Common Stocks (Cost $191,818,302) ............ 190,336,163 ------------ Principal Corporate Bonds--17.9% Amount ---------- AEROSPACE & DEFENSE--1.1% Boeing Capital Corp., 7.375%, 9/27/10 ................ $1,500,000 1,613,235 United Technologies Corporation, 6.10%, 5/15/12 ................. 2,000,000 1,988,940 ------------ 3,602,175 ------------ AUTOMOTIVE--1.2% Ford Motor Credit Company, 6.50%, 1/25/07 ................. 2,000,000 1,981,320 General Motors Acceptance Corp., 6.125%, 2/1/07+ ................ 2,000,000 1,989,800 ------------ 3,971,120 ------------ BANKS--3.0% Associates Corp., North America, 6.95%, 11/1/18 ................. 1,000,000 1,047,030 Bank of America Corp., 7.125%, 9/15/06 ................ 2,000,000 2,147,700 FleetBoston Financial Corp., 7.25%, 9/15/05 ................. 2,000,000 2,144,280 Signet Bank, 7.80%, 9/15/06 ................. 2,000,000 2,177,780 Wells Fargo Bank, 7.55%, 6/21/10 ................. 2,000,000 2,186,940 ------------ 9,703,730 ------------ BEVERAGES--.6% Anheuser-Busch Companies, Inc., 7.00%, 12/1/25+ ..................... 2,000,000 2,028,660 ------------ Principal Corporate Bonds--(cont.) Amount Value ---------- ----- CHEMICALS--.5% Du Pont E.I. De Nemours & Co., 6.50%, 9/1/02 .................. $1,500,000 $ 1,520,445 ------------ COMMUNICATION TECHNOLOGY--.6% AT&T Corp., 6.50%, 11/15/06 (a) .. 2,000,000 1,933,840 ------------ COMPUTERS & PERIPHERALS--.3% IBM Corp., 5.50%, 1/15/09 ........ 1,000,000 980,960 ------------ DIVERSIFIED FINANCIALS--2.0% Block Financial Corp., 8.50%, 4/15/07 ................. 500,000 537,485 Citigroup Inc., 6.00%, 2/21/12 2,000,000 1,976,060 Household Finance Corp., 7.20%, 7/15/06 ................. 2,000,000 2,096,640 J.P. Morgan Chase & Co., 7.625%, 9/15/04 ................ 1,000,000 1,075,660 J.P. Morgan Chase & Co., 5.35%, 3/1/07 .................. 1,000,000 1,000,040 ------------ 6,685,885 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES--.9% SBC Communications Inc., 6.25%, 3/15/11 ................. 2,750,000 2,780,690 ------------ ELECTRIC UTILITIES--.4% Duke Energy Corporation, 7.375%, 3/1/10 ................. 750,000 781,410 Potomac Electric Power Co., 7.00%, 1/15/24 ................. 200,000 197,096 Washington Gas Light Co., 6.51%, 8/18/08 ................. 500,000 515,990 ------------ 1,494,496 ------------ FINANCIAL SERVICES--.6% Goldman Sachs Group, Inc. (The), 6.60%, 1/15/12 ................. 2,000,000 1,993,620 ------------ FOOD & BEVERAGES--1.8% Coca-Cola Company (The), 4.00%, 6/1/05 .................. 2,000,000 1,966,180 Kraft Foods Inc., 5.625%, 11/1/11 2,000,000 1,957,900 Sara Lee Corp., 6.25%, 9/15/11 2,000,000 2,003,860 ------------ 5,927,940 ------------ -17- THE ALGER FUND ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2002 Corporate Bonds (cont.) Principal Amount Value ---------- ----- FOOD PRODUCTS--.6% Archer-Daniels-Midland Co., 8.375%, 4/15/17 ................ $1,600,000 $ 1,882,704 ------------ INSURANCE--.1% Loews Corp., 7.625%, 6/1/23 ................. 500,000 481,370 ------------ LEASING--.6% International Lease Finance Corp., 5.80%, 8/15/07 ................. 2,100,000 2,073,729 ------------ MULTILINE RETAIL--.7% Target Corporation, 7.50%, 8/15/10 ................. 2,000,000 2,200,520 ------------ OIL & GAS--1.3% Baker Hughes Inc., 6.25%, 1/15/09 ................. 2,000,000 2,034,040 Chevron Corp., 6.625%, 10/1/04 ................ 2,000,000 2,123,540 ------------ 4,157,580 ------------ PHARMACEUTICALS--.3% Pharmacia Corporation, 6.50%, 12/1/18 ................. 1,000,000 1,024,030 ------------ TELEPHONES--.6% Verizon Wireless Inc., 5.375%, 12/15/06 (a) ........... 2,000,000 1,919,740 ------------ WIRELESS TELECOMMUNICATION SERVICES--.7% Vodafone Group PLC, 7.625%, 2/15/05 ................ 2,000,000 2,142,340 ------------ Total Corporate Bonds (Cost $58,007,018) ............. 58,505,574 ------------ U.S. Government & Agency Obligations--21.0% Federal Farm Credit Banks, 5.75%, 1/18/11 ................. 3,000,000 3,016,170 Federal Home Loan Banks, 5.875%, 11/15/07 ............... 3,000,000 3,122,460 5.89%, 6/30/08 ................. 3,000,000 3,109,410 6.12%, 8/26/08 ................. 1,000,000 1,021,560 6.73%, 6/22/09 ................. 9,000,000 9,693,000 7.625%, 5/14/10 ................ 2,000,000 2,272,560 Federal Home Loan Mortgage Corporation, 6.625%, 9/15/09 ................ 1,200,000 1,287,756 6.875%, 9/15/10 ................ 2,000,000 2,171,260 Principal U.S. Government Amount Value & Agency Obligations--(cont.) ---------- ----- 6.75%, 3/15/31 ................. $1,083,000 $1,146,291 6.25%, 7/15/32 ................. 457,000 453,289 Federal National Mortgage Association, 6.75%, 2/4/28 .................. 400,000 389,084 U.S. Treasury Notes, 7.50%, 5/15/02 ................. 100,000 100,219 6.25%, 7/31/02 ................. 3,500,000 3,539,375 6.25%, 2/15/03 ................. 1,750,000 1,805,510 6.00%, 8/15/04 ................. 1,500,000 1,584,375 5.875%, 11/15/04 ............... 4,000,000 4,218,760 5.625%, 2/15/06 ................ 9,000,000 9,455,670 4.625%, 5/15/06 ................ 3,000,000 3,038,430 6.50%, 10/15/06 ................ 1,500,000 1,625,625 3.50%, 11/15/06 ................ 1,000,000 962,500 6.25%, 2/15/07 ................. 2,000,000 2,150,620 6.00%, 8/15/09 ................. 2,000,000 2,127,820 5.00%, 2/15/11 ................. 1,000,000 993,750 5.00%, 8/15/11 ................. 1,500,000 1,487,340 6.00%, 2/15/26 ................. 2,000,000 2,063,120 5.50%, 8/15/28 ................. 2,000,000 1,934,060 5.25%, 11/15/28 ................ 2,000,000 1,865,620 5.25%, 2/15/29 ................. 2,000,000 1,866,260 ------------ Total U.S. Government & Agency Obligations (Cost $67,237,836).. 68,501,894 ------------ Short-Term Investments--4.8% U.S. GOVERNMENT & AGENCY OBLIGATIONS--2.6% Federal Home Loan Mortgage Corporation, 1.79%, 5/1/02 (Cost $8,600,000) .............. 8,600,000 8,600,000 ------------ OTHER SHORT-TERM INVESTMENTS--2.2% Shares ------ Securities Lending Quality Trust (Cost $7,077,232)(c) ........... 7,077,232 7,077,232 ------------ Total Short-Term Investments (Cost $15,677,232)(b) .......... 15,677,232 ------------ Total Investments (Cost $332,740,388) ............ 102.1% 333,020,863 Liabilities in Excess of Other Assets ................ (2.1) (6,943,202) ----- ------------ Net Assets ....................... 100.0% $326,077,661 ===== ============ * Non-income producing security. + Securities partially or fully on loan. (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, 2002, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $332,740,388, amounted to $280,475 which consisted of aggregate gross unrealized appreciation of $11,757,714 and aggregate gross unrealized depreciation of $11,477,239. (c) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. -18- THE ALGER FUND ALGER BALANCED PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS A (i) Six Months Ten Months ----------- Ended Year Ended October 31, Ended April 30, ----------------------------------------------------- October 31, 2002(ii)(v) 2001 2000 1999 1998 1997(ii) ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period .... $ 18.67 $ 21.29 $ 20.95 $ 16.83 $ 16.58 $ 13.99 -------- -------- -------- -------- -------- -------- Net investment income (loss) ............ .14(iii) .43(iii) .39(iii) .25(iii) .16(iii) .05 Net realized and unrealized gain (loss) on investments ........................ (.37) (2.83) 1.68 4.97 2.35 2.54 -------- -------- -------- -------- -------- -------- Total from investment operations ........ (.23) (2.40) 2.07 5.22 2.51 2.59 -------- -------- -------- -------- -------- -------- Dividends from net investment income .... (.44) (.22) (.13) (.08) (.06) -- Distributions from net realized gains ... -- -- (1.60) (1.02) (2.20) -- -------- -------- -------- -------- -------- -------- Total distributions ..................... (.44) (.22) (1.73) (1.10) (2.26) -- -------- -------- -------- -------- -------- -------- Net asset value, end of period .......... $ 18.00 $ 18.67 $ 21.29 $ 20.95 $ 16.83 $ 16.58 ======== ======== ======== ======== ======== ======== Total Return (iv) ....................... (1.3%) (11.3%) 10.2% 32.5% 17.7% 18.5% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ..................... $101,710 $101,440 $ 93,671 $ 12,488 $ 1,354 $ 459 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets .......................... 1.25% 1.20% 1.29% 1.40% 1.79% 2.10% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ............... 1.54% 2.15% 1.80% 1.15% .98% .72% ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ............... 80.89% 74.15% 63.50% 126.01% 93.23% 109.26% ======== ======== ======== ======== ======== ========
(i) Initially offered January 1, 1997. (ii) Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect the effect of any sales charges. (v) Unaudited. See Notes to Financial Statements. -19- 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, -------------------------------------------------------- 2002(i) 2001 2000 1999 1998 1997 --------- -------- -------- -------- -------- --------- Net asset value, beginning of period ..... $ 18.17 $ 20.83 $ 20.59 $ 16.64 $ 16.48 $ 14.21 -------- -------- -------- -------- -------- ------- Net investment income (loss) ............. .07(ii) .27(ii) .17(ii) .07(ii) .03(ii) -- Net realized and unrealized gain (loss) on investments ......................... (.37) (2.75) 1.71 4.93 2.34 2.67 -------- -------- -------- -------- -------- --------- Total from investment operations ......... (.30) (2.48) 1.88 5.00 2.37 2.67 -------- -------- -------- -------- -------- --------- Dividends from net investment income ..... (.25) (.18) (.04) (.03) (.01) (.06) Distributions from net realized gains .... -- -- (1.60) (1.02) (2.20) (.34) -------- -------- -------- -------- -------- --------- Total distributions ...................... (.25) (.18) (1.64) (1.05) (2.21) (.40) -------- -------- -------- -------- -------- --------- Net asset value, end of period ........... $ 17.62 $ 18.17 $ 20.83 $ 20.59 $ 16.64 $ 16.48 ======== ======== ======== ======== ======== ======== Total Return (iii) ....................... (1.7%) (12.0%) 9.4% 31.5% 16.9% 19.3% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ...................... $165,469 $158,766 $132,123 $ 52,607 $ 19,282 $ 12,653 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets ........................... 2.00% 1.95% 2.04% 2.18% 2.58% 2.89% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ................ .79% 1.40% .98% .36% .19% .04% ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ................ 80.89% 74.15% 63.50% 126.01% 93.23% 109.26% ======== ======== ======== ======== ======== ========
(i) Unaudited. 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. See Notes to Financial Statements. -20- THE ALGER FUND ALGER BALANCED PORTFOLIO Financial Highlights For a share outstanding throughout the period
CLASS C (i) Six Months Three Months ----------- Ended Year Ended October 31, Ended April 30, ---------------------------------------------- October 31, 2002(ii)(v) 2001 2000 1999 1998 1997(ii) ---------- -------- -------- -------- ------- ------- Net asset value, beginning of period ...... $ 18.24 $ 20.90 $ 20.65 $ 16.66 $ 16.49 $ 16.88 -------- -------- -------- -------- ------- ------- Net investment income (loss) .............. .07(iii) .27(iii) .21(iii) .07(iii) .04(iii) (.01) Net realized and unrealized gain (loss) on investments .......................... (.37) (2.75) 1.67 4.95 2.33 (.38) -------- -------- -------- -------- ------- ------- Total from investment operations .......... (.30) (2.48) 1.88 5.02 2.37 (.39) -------- -------- -------- -------- ------- ------- Dividends from net investment income ...... (.25) (.18) (.03) (0.01) -- -- Distributions from net realized gains ..... -- -- (1.60) (1.02) (2.20) -- -------- -------- -------- -------- ------- ------- Total distributions ....................... (.25) (.18) (1.63) (1.03) (2.20) -- -------- -------- -------- -------- ------- ------- Net asset value, end of period ............ $ 17.69 $ 18.24 $ 20.90 $ 20.65 $ 16.66 $ 16.49 ======== ======== ======== ======== ======= ======= Total Return (iv) ......................... (1.7%) (12.0%) 9.3% 31.6% 16.8% (2.3%) ======== ======== ======== ======== ======= ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted) ....................... $ 58,899 $ 57,193 $ 49,592 $ 14,626 $ 334 $ 48 ======== ======== ======== ======== ======= ======= Ratio of expenses to average net assets ............................ 2.00% 1.95% 2.04% 2.16% 2.53% 2.77% ======== ======== ======== ======== ======= ======= Ratio of net investment income (loss) to average net assets ................. .79% 1.40% . 99% .38% .23% (.84%) ======== ======== ======== ======== ======= ======= Portfolio Turnover Rate ................. 80.89% 74.15% 63.50% 126.01% 93.23% 109.26% ======== ======== ======== ======== ======= =======
(i) Initially offered August 1, 1997. (ii) Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect the effect of any sales charges. (v) Unaudited. See Notes to Financial Statements. -21- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2002 Common Stocks--90.6% Shares Value ------ ----- ADVERTISING--.9% Lamar Advertising Company, Cl. A* ............... 140,840 $ 6,046,261 ------------ AEROSPACE & DEFENSE--2.0% L-3 Communications Holdings, Inc.* ............... 97,600 12,471,328 ------------ BANKS--2.2% Associated Banc-Corp ............ 88,963 3,332,535 Compass Bancshares, Inc. ........ 130,945 4,683,903 GreenPoint Financial Corp. ...... 59,920 2,963,044 National Commerce Financial Corporation ................... 108,725 3,043,213 ------------ 14,022,695 ------------ BIOTECHNOLOGY--3.5% Cephalon, Inc.* ................. 108,350 6,353,644 Gilead Sciences Inc. * .......... 213,450 6,642,564 IDEC Pharmaceuticals Corporation* .................. 144,100 7,918,295 Protein Design Labs, Inc.* ...... 87,070 1,563,777 ------------ 22,478,280 ------------ BROADCASTING--2.9% Entercom Communications Corp. ... 166,800 8,715,300 Univision Communications Inc. Cl. A* ................... 237,435 9,487,903 ------------ 18,203,203 ------------ BUILDING & CONSTRUCTION--2.2% Lennar Corporation .............. 86,010 4,776,995 Masco Corporation ............... 320,830 9,015,323 ------------ 13,792,318 ------------ COMMERCIAL SERVICES & SUPPLIES--5.9% Avery Dennison Corporation ...... 184,565 11,821,387 BISYS Group, Inc. (The)* ........ 218,135 7,460,217 eBay Inc.* ...................... 267,350 14,196,285 Sabre Holdings Corporation Cl. A* 83,500 3,882,750 ------------ 37,360,639 ------------ COMMUNICATION EQUIPMENT--1.9% Brocade Communications Systems, Inc.* ................ 239,000 6,116,010 UTStarcom, Inc.* ................ 250,200 6,129,900 ------------ 12,245,910 ------------ COMPUTERS & PERIPHERALS--1.0% Apple Computer, Inc.* ........... 254,190 6,169,191 ------------ Common Stocks--(cont.) Shares Value ------ ----- CONTAINERS & PACKAGING--.2% Bemis Company, Inc. ............. 21,350 $ 1,136,461 ------------ DIVERSIFIED FINANCIALS--3.3% Capital One Financial Corporation ................... 116,165 6,957,122 Franklin Resources, Inc. ........ 200,500 8,400,950 LaBranche & Co. Inc.* ........... 196,425 5,382,045 ------------ 20,740,117 ------------ ELECTRONICS--3.8% KLA-Tencor Corporation* ......... 153,675 9,062,215 National Semiconductor Corporation* .................. 471,625 14,865,620 ------------ 23,927,835 ------------ ENERGY EQUIPMENT & SERVICES--4.2% BJ Services Company ............. 176,150 6,471,751 Cooper Cameron Corporation* ..... 109,850 6,024,174 Dynegy Inc. Cl. A ............... 144,025 2,592,450 Noble Drilling Corporation* ..... 105,015 4,552,400 Smith International, Inc.* ...... 104,725 7,335,986 ------------ 26,976,761 ------------ FINANCIAL SERVICES--1.3% Mercantile Bankshares Corporation 50,310 2,070,760 North Fork Bancorporation, Inc. . 153,550 5,930,101 ------------ 8,000,861 ------------ HEALTHCARE EQUIPMENT & SUPPLIES--6.6% Alcon, Inc.* .................... 421,375 14,600,644 St. Jude Medical, Inc.* ......... 180,655 15,032,303 Zimmer Holdings, Inc.* .......... 347,095 12,047,666 ------------ 41,680,613 ------------ HEALTHCARE PROVIDERS & SERVICES--8.4% AmerisourceBergen Corporation ... 150,080 11,631,200 Anthem, Inc.* ................... 171,500 11,696,300 DaVita, Inc.* ................... 113,945 2,953,454 Express Scripts, Inc.* .......... 153,730 9,717,273 Quest Diagnostics Incorporated* . 122,700 11,279,811 Triad Hospitals, Inc.* .......... 146,375 6,147,750 ------------ 53,425,788 ------------ HOTELS, RESTAURANTS & LEISURE--5.9% Brinker International, Inc.* .... 232,400 8,003,856 Harrah's Entertainment, Inc. .... 121,270 5,961,633 Hilton Hotels Corporation ....... 395,750 6,474,470 MGM MIRAGE* ..................... 314,000 12,607,100 Royal Caribbean Cruises Ltd. .... 195,805 4,619,040 ------------ 37,666,099 ------------ -22- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2002 Common Stocks--(cont.) Shares Value ------ ----- Insurance--5.3% Chubb Corporation (The) ...... 118,305 $ 9,073,994 Radian Group Inc. ............ 110,900 5,755,710 W. R. Berkley Corporation .... 104,010 6,292,605 XL Capital Ltd. Cl. A ........ 128,400 12,114,540 ------------ 33,236,849 ------------ LEISURE & ENTERTAINMENT--.8% International Game Technology* 76,325 4,804,659 ----------- LEISURE EQUIPMENT & PRODUCTS--.5% Activision, Inc.* ............ 100,125 3,151,935 ------------ MACHINERY--1.4% Danaher Corporation .......... 80,500 5,762,190 SPX Corporation* ............. 21,200 2,854,580 ------------ 8,616,770 ------------ OIL & GAS--1.5% Apache Corporation ........... 84,200 4,911,386 Spinnaker Exploration Company* 108,300 4,640,655 ------------ 9,552,041 ------------ PHARMACEUTICALS--1.0% Allergan, Inc. ............... 91,435 6,026,481 ------------ RETAIL--2.3% Expedia, Inc. Cl. A * ........ 70,710 5,715,914 Michaels Stores, Inc.* ....... 76,625 3,099,481 TJX Companies, Inc. (The) .... 135,115 5,888,312 ------------ 14,703,707 ------------ SEMICONDUCTORS--8.5% Altera Corporation * ......... 264,675 5,441,717 Amkor Technology, Inc.* ...... 214,600 4,313,460 Conexant Systems, Inc.* ...... 234,925 2,396,235 Fairchild Semiconductor Corporation* ............... 428,525 11,544,464 Microchip Technology Incorporated* .............. 342,275 15,231,238 Novellus Systems, Inc. * ..... 314,175 14,891,895 ------------ 53,819,009 ------------ SOFTWARE--5.7% BMC Software, Inc.* .......... 666,975 9,644,459 Intuit Inc.* ................. 152,470 5,973,775 PeopleSoft, Inc.* ............ 318,525 7,380,224 Rational Software Corporation* 606,505 8,836,778 Synopsys, Inc.* .............. 98,800 4,456,867 ------------ 36,292,103 ------------ SPECIALTY RETAIL--6.0% Abercrombie & Fitch Co. Cl. A* 196,255 5,887,650 AutoZone, Inc.* .............. 82,450 6,266,200 Bed Bath & Beyond Inc.* ...... 169,400 6,296,598 Blockbuster Inc. Cl. A ....... 125,265 3,582,579 Office Depot, Inc.* .......... 650,400 12,448,656 Tiffany & Co. ................ 95,750 3,806,063 ------------ 38,287,746 ------------ TEXTILES & APPAREL--.9% Jones Apparel Group, Inc.* ... 152,470 5,938,707 ------------ TRANSPORTATION--.5% Swift Transportation Co. Inc.* 156,535 3,044,606 ------------ Total Common Stocks (Cost $546,424,419) ........ 573,818,973 ------------ Principal Short-Term Investments--1.4% Amount --------- U.S. GOVERNMENT & AGENCY OBLIGATIONS Federal Home Loan Mortgage Corporation, 1.79%, 5/1/02 (Cost $9,100,000) .......... $9,100,000 9,100,000 ------------ Total Investments (Cost $555,524,419)(a) ..... 92.0% 582,918,973 Other Assets in Excess of Liabilities ................ 8.0 50,608,805 ----- ------------ Net Assets ................... 100.0% $633,527,778 ===== ============ * Non-income producing security. (a) At April 30, 2002, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $555,524,419, amounted to $27,394,554 which consisted of aggregate gross unrealized appreciation of $44,094,278 and aggregate gross unrealized depreciation of $16,699,724. See Notes to Financial Statements. -23- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO(i) Financial Highlights For a share outstanding throughout the period
CLASS A (ii) Six Months Ten Months ------------ Ended Year Ended October 31, Ended April 30, -------------------------------------------------- October 31, 2002(iii)(vi) 2001 2000 1999 1998 1997(iii) ------------ -------- -------- -------- -------- ---------- Net asset value, beginning of period .... $ 6.92 $ 10.17 $ 8.20 $ 7.07 $ 7.49 $ 6.31 -------- -------- -------- -------- -------- -------- Net investment income (loss) ............ (.04)(iv) (.06)(iv) (.04)(iv) (.05)(iv) (.03)(iv) (.03) Net realized and unrealized gain (loss) on investments ........................ .31 (2.01) 3.51 2.16 .43 1.21 -------- -------- -------- -------- -------- -------- Total from investment operations ........ .27 (2.07) 3.47 2.11 .40 1.18 Distributions from net realized gains ... -- (1.18) (1.50) (.98) (.82) -- -------- -------- -------- -------- -------- -------- Net asset value, end of period .......... $ 7.19 $ 6.92 $ 10.17 $ 8.20 $ 7.07 $ 7.49 ======== ======== ======== ======== ======== ======== Total Return (v) ........................ 3.9% (21.9%) 47.7% 33.3% 7.2% 18.7% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ..................... $213,170 $154,412 $141,558 $ 49,246 $ 32,447 $ 5,436 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets .......................... 1.36% 1.31% 1.29% 1.31% 1.34% 1.40% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ............... (1.08%) (.77%) (.46%) (.58%) (.53%) (.83%) ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ............... 162.99% 115.45% 97.11% 203.86% 180.98% 160.09% ======== ======== ======== ======== ======== ========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred April 20, 2000. (ii) Initially offered January 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -24- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO(i) Financial Highlights For a share outstanding throughout the period
CLASS B Six Months ------- Ended Year Ended October 31, April 30, ----------------------------------------------------------------- 2002(ii) 2001 2000 1999 1998 1997 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period ..... $ 6.58 $ 9.79 $ 8.00 $ 6.96 $ 7.44 $ 6.29 -------- -------- -------- -------- -------- -------- Net investment income (loss) ............. (.06)(iii) (.11)(iii) (.12)(iii) (.11)(iii) (.10) (.10) Net realized and unrealized gain (loss) on investments ......................... .28 (1.92) 3.41 2.13 .44 1.41 -------- -------- -------- -------- -------- -------- Total from investment operations ......... .22 (2.03) 3.29 2.02 .34 1.31 Distributions from net realized gains .... -- (1.18) (1.50) (.98) (.82) (.16) -------- -------- -------- -------- -------- -------- Net asset value, end of period ........... $ 6.80 $ 6.58 $ 9.79 $ 8.00 $ 6.96 $ 7.44 ======== ======== ======== ======== ======== ======== Total Return (iv) ........................ 3.3% (22.4%) 46.4% 32.3% 6.2% 21.4% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ...................... $357,851 $426,699 $532,476 $248,139 $191,934 $166,475 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets ........................... 2.11% 2.06% 2.04% 2.07% 2.10% 2.19% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ................ (1.84%) (1.49%) (1.23%) (1.39%) (1.38%) (1.58%) ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ................ 162.99% 115.45% 97.11% 203.86% 180.98% 160.09% ======== ======== ======== ======== ======== ========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred April 20, 2000. (ii) Unaudited. Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect the effect of any sales charges. See Notes to Financial Statements. -25- THE ALGER FUND ALGER MIDCAP GROWTH PORTFOLIO(i) Financial Highlights For a share outstanding throughout the period
CLASS C (ii) Six Months Three Months ------------ Ended Year Ended October 31, Ended April 30, -------------------------------------------------- October 31, 2002(iii)(vi) 2001 2000 1999 1998 1997(iii) ------------- -------- -------- -------- -------- ------- Net asset value, beginning of period ...... $ 6.56 $ 9.77 $ 7.99 $ 6.95 $ 7.44 $ 7.50 -------- -------- -------- -------- -------- ------- Net investment income (loss) .............. (.06)(iv) (.11)(iv) (.11)(iv) (.11)(iv) (.09)(iv) (.01) Net realized and unrealized gain (loss) on investments .......................... .29 (1.92) 3.39 2.13 .42 (.05) -------- -------- -------- -------- -------- ------- Total from investment operations .......... .23 (2.03) 3.28 2.02 .33 (.06) Distributions from net realized gains ..... -- (1.18) (1.50) (.98) (.82) -- -------- -------- -------- -------- -------- ------- Net asset value, end of period ............ $ 6.79 $ 6.56 $ 9.77 $ 7.99 $ 6.95 $ 7.44 ======== ======== ======== ======== ======== ======= Total Return (v) .......................... 3.5% (22.4%) 46.4% 32.4% 6.1% (.7%) ======== ======== ======== ======== ======== ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted) ....................... $ 62,507 $ 53,592 $ 51,335 $ 10,827 $ 1,759 $ 84 ======== ======== ======== ======== ======== ======= Ratio of expenses to average net assets ............................ 2.11% 2.06% 2.04% 2.08% 2.08% 1.97% ======== ======== ======== ======== ======== ======= Ratio of net investment income (loss) to average net assets ................. (1.84%) (1.51%) (1.22%) (1.40%) (1.26%) (1.55%) ======== ======== ======== ======== ======== ======= Portfolio Turnover Rate ................. 162.99% 115.45% 97.11% 203.86% 180.98% 160.09% ======== ======== ======== ======== ======== =======
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred April 20, 2000. (ii) Initially offered August 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -26- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2002 Common Stocks--98.3% Shares Value ------ ----- AEROSPACE & DEFENSE--1.1% Alliant Techsystems Inc.* ....... 37,950 $ 4,087,215 L-3 Communications Holdings, Inc.*+ .............. 33,950 4,338,131 ------------ 8,425,346 ------------ BANKS--2.6% Commerce Bancorp, Inc.+ ......... 92,300 4,558,697 Fifth Third Bancorp ............. 115,595 7,928,661 Mellon Financial Corporation .... 206,900 7,812,544 ------------ 20,299,902 ------------ BIOTECHNOLOGY--8.4% Cephalon, Inc.*+ ................ 131,400 7,705,296 Gilead Sciences Inc.* ........... 455,600 14,178,272 IDEC Pharmaceuticals Corporation*+ ................. 435,495 23,930,450 Immunex Corporation* ............ 571,900 15,521,366 Millennium Pharmaceuticals, Inc.*+ 216,600 4,323,336 ------------ 65,658,720 ------------ BUILDING & CONSTRUCTION--1.6% D.R. Horton, Inc.+ .............. 278,160 7,176,528 Masco Corporation ............... 184,100 5,173,210 ------------ 12,349,738 ------------ BUSINESS SERVICES--1.3% Siebel Systems, Inc.* ........... 415,200 10,043,688 ------------ COMMERCIAL SERVICES & SUPPLIES--9.1% Apollo Group, Inc. Cl. A* ....... 119,550 4,583,547 Avery Dennison Corporation ...... 58,800 3,766,140 BISYS Group, Inc. (The)* ........ 230,500 7,883,100 Career Education Corporation* ... 104,400 4,692,780 Concord EFS, Inc.* .............. 296,200 9,653,157 eBay Inc.* ...................... 311,300 16,530,030 First Data Corporation .......... 233,500 18,560,915 Sabre Holdings Corporation Cl. A* 109,000 5,068,500 ------------ 70,738,169 ------------ COMMUNICATION EQUIPMENT--3.8% Brocade Communications Systems, Inc.* ................ 479,735 12,276,419 Emulex Corporation*+ ............ 225,600 6,540,144 UTStarcom, Inc.*+ ............... 425,100 10,414,950 ------------ 29,231,513 ------------ COMPUTERS & PERIPHERALS--.9% Agilent Technologies, Inc.* ..... 244,900 7,359,245 ------------ CONSUMER PRODUCTS--1.7% NIKE, Inc. Cl. B ................ 60,440 $ 3,223,265 Procter & Gamble Company (The) .. 108,300 9,775,158 ------------ 12,998,423 ------------ DIVERSIFIED FINANCIALS--3.4% Capital One Financial Corporation 225,700 13,517,173 Citigroup Inc. .................. 95,600 4,139,480 USA Education Inc. .............. 94,700 9,076,995 ------------ 26,733,648 ------------ ENERGY EQUIPMENT & SERVICES--3.3% BJ Services Company ............. 202,900 7,454,546 Cooper Cameron Corporation* ..... 193,900 10,633,476 Nabors Industries, Inc.* ........ 163,800 7,461,090 ------------ 25,549,112 ------------ FOOD & BEVERAGES--.6% Dean Foods Company*+ ............ 118,200 4,375,764 ------------ HEALTHCARE EQUIPMENT & SUPPLIES--4.6% Alcon, Inc.* .................... 155,195 5,377,507 Baxter International Inc. ....... 204,400 11,630,360 Guidant Corporation* ............ 200,400 7,535,040 St. Jude Medical, Inc.* ......... 136,760 11,379,800 ------------ 35,922,707 ------------ HEALTHCARE PROVIDERS & SERVICES--5.8% AmerisourceBergen Corporation ... 215,110 16,671,025 Anthem, Inc.* ................... 149,300 10,182,260 Express Scripts, Inc.* .......... 74,045 4,680,384 Quest Diagnostics Incorporated* . 143,100 13,155,182 ------------ 44,688,851 ------------ HOTELS, RESTAURANTS & LEISURE--3.4% Brinker International, Inc.* .... 270,150 9,303,966 MGM MIRAGE*+ .................... 200,950 8,068,143 Starwood Hotels & Resorts Worldwide, Inc. ............... 244,000 9,223,200 ------------ 26,595,309 ------------ HOUSEHOLD DURABLES--.4% Stanley Works (The) ............. 59,800 2,779,504 ------------ INFORMATION TECHNOLOGY CONSULTING & SERVICES--1.5% Affiliated Computer Services, Inc. Cl. A*+ .................. 221,200 11,960,284 ------------ -27- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2002 Common Stocks--(cont.) Shares Value ------ ----- INSURANCE--1.9% Radian Group Inc. ................ 155,980 $ 8,095,362 XL Capital Ltd. Cl. A ............ 71,300 6,727,155 ------------ 14,822,517 ------------ LEISURE EQUIPMENT & PRODUCTS--.6% Activision, Inc.*+ ............... 156,400 4,923,472 ------------ MACHINERY--.7% Danaher Corporation .............. 75,000 5,368,500 ------------ MEDIA--4.4% Clear Channel Communications, Inc. 206,790 9,708,791 TMP Worldwide Inc.* .............. 238,300 7,189,511 Tribune Company .................. 140,100 6,188,216 Viacom Inc. Cl. B* ............... 230,300 10,847,130 ------------ 33,933,648 ------------ MULTILINE RETAIL--2.4% Wal-Mart Stores, Inc. ............ 340,050 18,995,193 ------------ PHARMACEUTICALS--6.5% Abbott Laboratories .............. 158,300 8,540,285 Forest Laboratories, Inc.* ....... 101,000 7,791,140 Johnson & Johnson ................ 277,000 17,689,220 Pfizer Inc. ...................... 227,822 8,281,330 Wyeth ............................ 141,330 8,055,810 ------------ 50,357,785 ------------ RETAIL--3.9% Expedia, Inc. Cl. A*+ ............ 161,125 13,024,701 Michaels Stores, Inc.*+ .......... 223,600 9,044,620 Walgreen Co. ..................... 222,700 8,411,379 ------------ 30,480,700 ------------ SEMICONDUCTORS--9.9% Applied Materials, Inc.* ......... 625,690 15,216,781 Intel Corporation ................ 341,180 9,761,160 Intersil Corporation Cl. A*+ ..... 305,500 8,202,675 Marvell Technology Group Ltd.*+ .. 171,800 6,184,800 Maxim Integrated Products, Inc.* . 398,795 19,859,991 Micron Technology, Inc.* ......... 383,700 9,093,690 Teradyne, Inc.* .................. 256,490 8,451,346 ------------ 76,770,443 ------------ SOFTWARE--4.8% Adobe Systems Incorporated ....... 112,500 4,495,500 Microsoft Corporation* ........... 389,600 20,360,496 THQ Inc.*+ ....................... 147,443 5,169,334 VERITAS Software Corporation* .... 269,500 7,637,630 ------------ 37,662,960 ------------ SPECIALTY RETAIL--8.8% Abercrombie & Fitch Co. Cl. A*+ .. 393,800 11,814,000 AutoZone, Inc.* .................. 62,700 4,765,200 Barnes & Noble, Inc.*+ ........... 218,900 6,615,158 Bed Bath & Beyond Inc.* .......... 172,000 6,393,240 Chico's FAS, Inc.*+ .............. 177,450 6,402,396 Home Depot, Inc. ................. 186,675 8,656,120 Lowe's Companies, Inc. ........... 280,010 11,841,623 Office Depot, Inc.* .............. 427,400 8,180,436 Pier 1 Imports, Inc. ............. 161,900 3,877,505 ------------ 68,545,678 ------------ TOYS--.9% Mattel, Inc. ..................... 323,400 6,674,976 ------------ Total Common Stocks (Cost $744,178,563) ............ 764,245,795 ------------ OTHER SHORT-TERM INVESTMENTS--12.7% Securities Lending Quality Trust (Cost $98,673,142)(b) .......... 98,673,142 98,673,142 ------------ Total Investments (Cost $842,851,705)(a) ......... 111.0% 862,918,937 Liabilities in Excess of Other Assets ......................... (11.0) (85,818,442) ------ ------------ Net Assets ....................... 100.0% $777,100,495 ====== ============ * Non-income producing security. + Securities partially or fully on loan. (a) At April 30, 2002, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $842,851,705, amounted to $20,067,232 which consisted of aggregate gross unrealized appreciation of $62,576,176 and aggregate gross unrealized depreciation of $42,508,944. (b) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. -28- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO(i) Financial Highlights For a share outstanding throughout the period
CLASS A (ii) Six Months Ten Months ------------ Ended Year Ended October 31, Ended April 30, ------------------------------------------------------- October 31, 2002(iii)(vi) 2001 2000 1999 1998 1997(iii) ------------ ----------- ----------- ---------- ---------- ---------- Net asset value, beginning of period ... $ 8.21 $ 13.54 $ 13.57 $ 9.03 $ 8.72 $ 7.20 ----------- ----------- ----------- ---------- ---------- ---------- Net investment income (loss) ........... (.04)(iv) (.05)(iv) (.11)(iv) (.12)(iv) (.05)(iv) (.03) Net realized and unrealized gain (loss) on investments ....................... (.01) (4.80) 2.01 5.50 .90 1.55 ----------- ----------- ----------- ---------- ---------- ---------- Total from investment operations ....... (.05) (4.85) 1.90 5.38 .85 1.52 Distributions from net realized gains .. -- (.48) (1.93) (.84) (.54) -- ----------- ----------- ----------- ---------- ---------- ---------- Net asset value, end of period ......... $ 8.16 $ 8.21 $ 13.54 $ 13.57 $ 9.03 $ 8.72 =========== =========== =========== ========== ========== ========== Total Return (v) ....................... (0.6%) (36.8%) 12.6% 63.9% 10.7% 21.2% =========== =========== =========== ========== ========== ========== Ratios and Supplemental Data: Net assets, end of period (000's omitted) .................... $ 166,289 $ 179,365 $ 366,296 $ 147,929 $ 54,415 $ 15,572 =========== =========== =========== ========== ========== ========== Ratio of expenses to average net assets ......................... 1.47% 1.40% 1.36% 1.44% 1.49% 1.53% =========== =========== =========== ========== ========== ========== Ratio of net investment income (loss) to average net assets .............. (.99%) (.46%) (.66%) (.98%) (.67%) (.85%) =========== =========== =========== ========== ========== ========== Portfolio Turnover Rate .............. 101.54% 102.58% 132.37% 186.93% 184.07% 157.63% =========== =========== =========== ========== ========== ==========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred January 8, 1998. (ii) Initially offered January 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -29- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO(i) Financial Highlights For a share outstanding throughout the period
CLASS B Six Months ------- Ended Year Ended October 31, April 30, ------------------------------------------------------------------------ 2002(ii) 2001 2000 1999 1998 1997 ----------- ---------- ---------- ----------- ----------- ---------- Net asset value, beginning of period .. $ 7.88 $ 13.09 $ 13.28 $ 8.90 $ 8.67 $ 7.21 ---------- ---------- ---------- ----------- ---------- ---------- Net investment income (loss) .......... (.07)(iii) (.12)(iii) (.22)(iii) (.21)(iii) (.13)(iii) (.11) Net realized and unrealized gain (loss) on investments ...................... (.01) (4.61) 1.96 5.43 .90 1.62 ---------- ---------- ---------- ----------- ---------- ---------- Total from investment operations ...... (.08) (4.73) 1.74 5.22 .77 1.51 Distributions from net realized gains . -- (.48) (1.93) (.84) (.54) (.05) ---------- ---------- ---------- ----------- ---------- ---------- Net asset value, end of period ........ $ 7.80 $ 7.88 $ 13.09 $ 13.28 $ 8.90 $ 8.67 ========== ========== ========== =========== ========== ========== Total Return (iv) ..................... (1.0%) (37.2%) 11.6% 63.0% 9.9% 21.0% ========== ========== ========== =========== ========== ========== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ................... $ 524,937 $ 572,068 $1,056,831 $ 594,971 $ 242,941 $ 212,895 ========== ========== ========== =========== ========== ========== Ratio of expenses to average net assets ........................ 2.23% 2.15% 2.11% 2.21% 2.26% 2.38% ========== ========== ========== =========== ========== ========== Ratio of net investment income (loss) to average net assets ............. (1.74%) (1.20%) (1.41%) (1.77%) (1.48%) (1.72%) ========== ========== ========== =========== ========== ========== Portfolio Turnover Rate ............. 101.54% 102.58% 132.37% 186.93% 184.07% 157.63% ========== ========== ========== =========== ========== ==========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred January 8, 1998. (ii) Unaudited. Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect the effect of any sales charges. See Notes to Financial Statements. -30- THE ALGER FUND ALGER CAPITAL APPRECIATION PORTFOLIO(i) Financial Highlights For a share outstanding throughout the period
CLASS C (ii) Six Months Three Months ------------ Ended Year Ended October 31, Ended April 30, ----------------------------------------------------------- October 31, 2002(iii)(vi) 2001 2000 1999 1998 1977(iii) ------------- ---------- ----------- ----------- ----------- ---------- Net asset value, beginning of period .. $ 7.87 $ 13.09 $ 13.27 $ 8.90 $ 8.67 $ 9.22 ---------- ---------- ----------- ----------- ----------- ---------- Net investment income (loss) .......... (.07)(iv) (.12)(iv) (.22)(iv) (.22)(iv) (.12)(iv) (.02) Net realized and unrealized gain (loss) on investments ...................... .00 (4.62) 1.97 5.43 .89 (.53) ---------- ---------- ----------- ----------- ----------- ---------- Total from investment operations ...... (.07) (4.74) 1.75 5.21 .77 (.55) Distributions from net realized gains . -- (.48) (1.93) (.84) (.54) -- ---------- ---------- ----------- ----------- ----------- ---------- Net asset value, end of period ........ $ 7.80 $ 7.87 $ 13.09 $ 13.27 $ 8.90 $ 8.67 ========== ========== =========== =========== =========== ========== Total Return (v) ...................... (0.9%) (37.2%) 11.7% 62.9% 9.9% (6.0%) ========== ========== =========== =========== =========== ========== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ................... $ 85,875 $ 96,451 $ 180,663 $ 43,789 $ 2,967 $ 631 ========== ========== =========== =========== =========== ========== Ratio of expenses to average net assets ........................ 2.23% 2.15% 2.12% 2.21% 2.25% 2.25% ========== ========== =========== =========== =========== ========== Ratio of net investment income (loss) to average net assets ............. (1.74%) (1.20%) (1.42%) (1.80%) (1.46%) (1.80%) ========== ========== =========== =========== =========== ========== Portfolio Turnover Rate ............. 101.54% 102.58% 132.37% 186.93% 184.07% 157.63% ========== ========== =========== =========== =========== ==========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred January 8, 1998. (ii) Initially offered August 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -31- THE ALGER FUND ALGER MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2002 U.S. GOVERNMENT & PRINCIPAL AGENCY OBLIGATIONS--134.0% AMOUNT VALUE ------ ------ Federal Agricultural Mortgage Corp., 1.79%, 5/1/02 ............. $30,000,000 $ 30,000,000 Federal Home Loan Banks, 1.79%, 5/1/02 ............. 30,000,000 30,000,000 1.72%, 5/6/02 ............. 10,000,000 9,997,611 1.70%, 5/15/02 ............ 10,000,000 9,993,389 1.67%, 5/22/02 ............ 10,000,000 9,990,258 1.72%, 5/29/02 ............ 10,000,000 9,986,622 1.75%, 6/7/02 ............. 10,000,000 9,982,014 Federal Home Loan Mortgage Corp., 1.79%, 5/1/02 ............. 30,000,000 30,000,000 1.73%, 5/2/02 ............. 10,000,000 9,999,519 1.74%, 6/28/02 ............ 10,000,000 9,971,967 1.88%, 8/9/02 ............. 10,000,000 9,947,778 1.80%, 8/15/02 ............ 10,000,000 9,947,000 Federal National Mortgage Assoc., 1.79%, 5/1/02 ............. 30,000,000 30,000,000 1.74%, 6/21/02 ............ 10,000,000 9,975,350 1.78%, 7/8/02 ............. 10,000,000 9,966,378 1.87%, 7/15/02 ............ 10,000,000 9,961,042 1.90%, 7/24/02 ............ 10,000,000 9,955,667 1.94%, 8/1/02 ............. 10,000,000 9,950,422 1.85%, 9/16/02 ............ 10,000,000 9,929,083 Student Loan Marketing Assoc., 1.79%, 5/1/02 ............. 48,500,000 48,500,000 ------------ Total Investments (Cost $318,054,100)(a) .... 134.0% 318,054,100 Liabilities in Excess of Other Assets .................... (34.0) (80,650,282) ----- ------------ Net Assets 100.0% $237,403,818 ===== ============ (a) At April 30, 2002, the cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes. See Notes to Financial Statements. -32- 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, -------------------------------------------------------- 2002(i) 2001 2000 1999 1998 1997 --------- --------- --------- --------- --------- --------- Net asset value, beginning of period ..... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 --------- --------- --------- --------- --------- --------- Net investment income .................... .0052 .0387 .0527 .0423 .0476 .0479 Dividends from net investment income ..... (.0052) (.0387) (.0527) (.0423) (.0476) (.0479) --------- --------- --------- --------- --------- --------- Net asset value, end of period ........... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ========= ========= ========= ========= ========= ========= Total Return ............................. 0.5% 3.9% 5.4% 4.3% 4.9% 4.9% ========= ========= ========= ========= ========= ========= Ratios and Supplemental Data: Net assets, end of period (000's omitted) ........................ $ 237,404 $402,515 $233,526 $241,310 $172,862 $179,407 ========= ========= ========= ========= ========= ========= Ratio of expenses to average net assets .. .75% .71% .78% .72% .76% .81% ========= ========= ========= ========= ========= ========= Ratio of net investment income to average net assets .................. 1.06% 3.88% 5.14% 4.37% 4.84% 4.76% ========= ========= ========= ========= ========= =========
(i) Unaudited. Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -33- THE ALGER FUND STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share amounts) (Unaudited) April 30, 2002
Small Capital LargeCap 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 accompanying schedules of investments ........................... $ 770,557 $ 193,537 $ 333,021 $ 582,919 $ 862,919 $ 318,054 Cash ................................................. 94 111 67 554 26 267 Receivable for investment securities sold ............ 2,248 2,953 3,072 47,221 18,070 -- Receivable for shares of beneficial interest sold ...................................... 31,780 2,840 831 42,875 17,335 7,827 Dividends and interest receivable .................... 262 9 2,019 69 146 -- Prepaid expenses ..................................... 72 43 39 -- 88 51 ---------- ---------- ---------- ---------- ---------- ---------- Total Assets ......................................... 805,013 199,493 339,049 673,638 898,584 326,199 ---------- ---------- ---------- ---------- ---------- ---------- LIABILITIES: Payable for securities loaned ........................ 23,033 -- 7,077 -- 98,673 -- Bank loan payable .................................... -- -- -- -- 1,550 -- Payable for investment securities purchased ............................... -- 3,773 -- 29,281 16,395 -- Payable for shares of beneficial interest redeemed .................................. 2,189 1,532 5,237 9,482 2,940 88,420 Interest payable ..................................... 10 -- -- 5 13 -- Accrued investment management fees ................... 490 137 206 401 561 121 Accrued transfer agent fees .......................... 580 232 164 418 709 131 Accrued distribution fees ............................ 343 80 141 263 391 -- Accrued shareholder servicing fees ................... 163 40 69 125 165 -- Dividends payable--Note 2(e) ......................... -- -- -- -- -- 47 Accrued expenses ..................................... 129 69 77 135 87 76 ---------- ---------- ---------- ---------- ---------- ---------- Total Liabilities .................................. 26,937 5,863 12,971 40,110 121,484 88,795 ---------- ---------- ---------- ---------- ---------- ---------- NET ASSETS ........................................... $ 778,076 $ 193,630 $ 326,078 $ 633,528 $ 777,100 $ 237,404 ========== ========== ========== ========== ========== ========== Net Assets Consist of: Paid-in capital .................................... $1,022,012 $ 350,271 $ 371,170 $ 693,692 $1,302,322 $ 237,701 Undistributed net investment income (accumulated loss) ........................ (13,918) (6,152) 823 (14,520) (18,676) -- Undistributed net realized gain (accumulated loss) .......................... (220,716) (166,218) (46,196) (73,039) (526,613) (297) Net unrealized appreciation (depreciation) ......... (9,302) 15,729 281 27,395 20,067 -- ---------- ---------- ---------- ---------- ---------- ---------- NET ASSETS ........................................... $ 778,076 $ 193,630 $ 326,078 $ 633,528 $ 777,100 $ 237,404 ========== ========== ========== ========== ========== ========== Class A Net Asset Value Per Share ......................... $ 9.35 $ 3.78 $ 18.00 $ 7.19 $ 8.16 -- ========== ========== ========== ========== ========== ========== Offering Price Per Share .......................... $ 9.87 $ 3.99 $ 19.00 $ 7.59 $ 8.61 -- ========== ========== ========== ========== ========== ========== Class B Net Asset Value and Offering Price Per Share .......................... $ 8.88 $ 3.58 $ 17.62 $ 6.80 $ 7.80 $ 1.00 ========== ========== ========== ========== ========== ========== Class C Net Asset Value Per Share .......................... $ 8.88 $ 3.58 $ 17.69 $ 6.79 $ 7.80 -- ========== ========== ========== ========== ========== ========== Offering Price Per Share ........................... $ 8.97 $ 3.62 $ 17.87 $ 6.86 $ 7.88 -- ========== ========== ========== ========== ========== ========== Shares of beneficial interest outstanding--Note 6 Class A ............................................ 26,603 17,803 5,649 29,648 20,370 -- ========== ========== ========== ========== ========== ========== Class B ............................................ 53,919 33,942 9,389 52,625 67,297 237,702 ========== ========== ========== ========== ========== ========== Class C ............................................ 5,677 1,365 3,330 9,208 11,014 -- ========== ========== ========== ========== ========== ========== *Identified cost ..................................... $ 779,859 $ 177,808 $ 332,740 $ 555,524 $ 842,852 $ 318,054 ========== ========== ========== ========== ========== ==========
See Notes to Financial Statements. -34- THE ALGER FUND STATEMENTS OF OPERATIONS (in thousands) (Unaudited) For the six months ended April 30, 2002
Small Capital LargeCap Capital- MidCap Appre- Money Growth ization Balanced Growth ciation Market INVESTMENT INCOME: Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------- ---------- ---------- ---------- ---------- ---------- Income: Dividends .......................................... $ 3,258 $ 81 $ 765 $ 470 $ 1,497 $ -- Interest ........................................... 399 114 3,855 403 580 2,792 ---------- ---------- ---------- ---------- ---------- ---------- Total Income ....................................... 3,657 195 4,620 873 2,077 2,792 ---------- ---------- ---------- ---------- ---------- ---------- Expenses: Management fees--Note 3(a) ......................... 3,208 850 1,243 2,559 3,661 769 Distribution fees--Note 3(b): Class B .......................................... 2,069 483 623 1,463 2,167 -- Class C .......................................... 196 17 223 220 355 -- Shareholder servicing fees--Note 3(f) .............. 1,069 250 414 800 1,077 -- Interest on line of credit utilized--Note 5 ........ 14 -- -- 19 15 -- Custodian fees ..................................... 45 19 20 42 48 24 Transfer agent fees and expenses--Note 3(e) .............................. 1,117 465 329 786 1,432 279 Professional fees .................................. 20 14 8 18 15 7 Trustees' fees ..................................... 4 4 4 4 4 4 Registration fees .................................. 26 29 28 49 24 30 Miscellaneous ...................................... 104 30 27 78 77 47 ---------- ---------- ---------- ---------- ---------- ---------- Total Expenses ..................................... 7,872 2,161 2,919 6,038 8,875 1,160 ---------- ---------- ---------- ---------- ---------- ---------- NET INVESTMENT INCOME (LOSS) ...................................... (4,215) (1,966) 1,701 (5,165) (6,798) 1,632 ---------- ---------- ---------- ---------- ---------- ---------- Realized and Unrealized gain (loss) on Investments Net realized gain (loss) on investments .............. (36,849) 346 (8,025) 360 (73,615) -- Net change in unrealized appreciation (depreciation) on investments ...................... 34,373 15,579 859 34,557 74,335 -- ---------- ---------- ---------- ---------- ---------- ---------- Net realized and unrealized gain (loss) on investments ......................... (2,476) 15,925 (7,166) 34,917 720 -- ---------- ---------- ---------- ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......................................... $ (6,691) $ 13,959 $ (5,465) $ 29,752 $ (6,078) $ 1,632 ========== ========== ========== ========== ========== ==========
See Notes to Financial Statements. -35- THE ALGER FUND STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited) For the six months ended April 30, 2002
Small Capital LargeCap Capital- MidCap Appre- Money Growth ization Balanced Growth ciation Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------- ---------- ---------- ---------- ---------- ---------- Net investment income (loss) ......................... $ (4,215) $ (1,966) $ 1,701 $ (5,165) $ (6,798) $ 1,632 Net realized gain (loss) on investments .............. (36,849) 346 (8,025) 360 (73,615) -- Net change in unrealized appreciation (depreciation) on investments ...................... 34,373 15,579 859 34,557 74,335 -- ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations ........................ (6,691) 13,959 (5,465) 29,752 (6,078) 1,632 ---------- ---------- ---------- ---------- ---------- ---------- Dividends to shareholders from: Net investment income Class A ............................................ -- -- (2,370) -- -- -- Class B ............................................ -- -- (2,209) -- -- (1,632) Class C ............................................ -- -- (811) -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total dividends to shareholders ...................... -- -- (5,390) -- -- (1,632) ---------- ---------- ---------- ---------- ---------- ---------- Increase (decrease) from shares of beneficial interest transactions: Class A ............................................ 22,593 (1,872) 3,956 49,940 (10,301) -- Class B ............................................ (101,590) (17,792) 11,961 (88,263) (44,086) (165,111) Class C ............................................ 2,439 378 3,617 7,396 (10,319) -- ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) from shares of beneficial interest transactions--Note 6 ........... (76,558) (19,286) 19,534 (30,927) (64,706) (165,111) ---------- ---------- ---------- ---------- ---------- ---------- Total increase (decrease) .......................... (83,249) (5,327) 8,679 (1,175) (70,784) (165,111) Net Assets: Beginning of period ................................ 861,325 198,957 317,399 634,703 847,884 402,515 ---------- ---------- ---------- ---------- ---------- ---------- End of period ...................................... $ 778,076 $ 193,630 $ 326,078 $ 633,528 $ 777,100 $ 237,404 ========== ========== ========== ========== ========== ========== Undistributed net investment income (accumulated loss) .......................... $ (13,918) $ (6,152) $ 823 $ (14,520) $ (18,676) $ -- ========== ========== ========== ========== ========== ==========
See Notes to Financial Statements. -36- THE ALGER FUND STATEMENTS OF CHANGES IN NET ASSETS (in thousands) For the year ended October 31, 2001
Small Capital LargeCap Capital- MidCap Appre- Money Growth ization Balanced Growth ciation Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------- ---------- ---------- ---------- ---------- ---------- Net investment income (loss) ......................... $ (9,703) $ (4,186) $ 5,264 $ (9,355) $ (11,878) $ 13,439 Net realized loss on investments ..................... (172,699) (166,193) (37,024) (64,016) (431,225) (218) Net change in unrealized appreciation (depreciation) on investments ...................... (169,262) (24,972) (7,862) (103,577) (121,549) -- ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations .......................... (351,664) (195,351) (39,622) (176,948) (564,652) 13,221 ---------- ---------- ---------- ---------- ---------- ---------- Dividends and distributions to shareholders from: Net investment income Class A .......................................... -- -- (1,065) -- -- -- Class B .......................................... -- -- (1,254) -- -- (13,439) Class C .......................................... -- -- (441) -- -- -- Net realized gains Class A .......................................... (18,355) (20,030) -- (14,320) (10,161) -- Class B .......................................... (60,776) (67,405) -- (64,744) (37,779) -- Class C .......................................... (4,659) (2,276) -- (6,442) (6,592) -- ---------- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to shareholders .... (83,790) (89,711) (2,760) (85,506) (54,532) (13,439) ---------- ---------- ---------- ---------- ---------- ---------- Increase (decrease) from shares of beneficial interest transactions: Class A .......................................... 7,650 22,542 21,325 60,822 (64,520) -- Class B .......................................... (10,769) 13,133 47,431 87,484 (61,794) 169,207 Class C .......................................... 7,784 194 15,639 23,482 (10,408) -- ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) from shares of beneficial interest transactions--Note 6 ........... 4,665 35,869 84,395 171,788 (136,722) 169,207 ---------- ---------- ---------- ---------- ---------- ---------- Total increase (decrease) ........................ (430,789) (249,193) 42,013 (90,666) (755,906) 168,989 Net Assets: Beginning of year ................................ 1,292,114 448,150 275,386 725,369 1,603,790 233,526 ---------- ---------- ---------- ---------- ---------- ---------- End of year .......................................... $ 861,325 $ 198,957 $ 317,399 $ 634,703 $ 847,884 $ 402,515 ========== ========== ========== ========== ========== ========== Undistributed net investment income (accumulated loss) .......................... $ (9,703) $ (4,186) $ 4,512 $ (9,355) $ (11,878) $ -- ========== ========== ========== ========== ========== ==========
See Notes to Financial Statements. -37- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1 -- General: The Alger Fund (the OFundO) is a diversified, open-end registered investment company organized as a 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--LargeCap Growth Portfolio, Small Capitalization Portfolio, Balanced Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio and Money Market Portfolio (the OPortfoliosO). The LargeCap 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. The Money Market Portfolio's investment objective is high current income which it seeks to achieve by investing in short-term instruments. 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 shares are generally subject to a deferred sales charge. Class C shares are generally subject to an initial sales charge and a deferred sales charge. Class B shares will automatically convert to Class A shares eight years after the end of the calendar month in which the order to purchase was accepted. The conversion is completed without the imposition of any sales charges or other fees. 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 NewYork Stock Exchange (the ONYSEO) 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. Shares of mutual funds are valued at the net asset value of the underlying mutual fund. (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. Effective November 1, 2000, premiums and discounts on debt securities purchased are amortized or accreted over the lives of the respective securities. This change in accounting policy which has been applied retroactively had no material effect on the accompanying financial statements. (c) REPURCHASE AGREEMENTS: The Portfolios enter into repurchase agreements with approved institutions. The repurchase agreements are collateralized by U.S. Government securities, which are either received and held in physical possession by the custodian or received by such custodian in book-entry form through the Federal Reserve book-entry system. The collateral is valued on a daily basis during the term of the agreement to ensure that its value equals or exceeds the agreed- -38- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) upon repurchase price to be repaid to the Portfolio. Additional collateral is obtained when necessary. (d) LENDING OF PORTFOLIO SECURITIES: The Portfolios lend their securities to financial institutions, provided that the market value of the securities loaned will not at any time exceed one third of the Portfolio's total assets, as defined. The Portfolios earn fees on the securities loaned, which are included in interest income in the accompanying Statements of Operations. In order to protect against the risk of failure by the borrower to return the securities loaned or any delay in the delivery of such securities, the loan is collateralized by cash, letters of credit or U.S. Government securities that are maintained in an amount equal to at least 100 percent of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Portfolios and any required additional collateral is delivered to the Portfolios on the next business day. At April 30, 2002, the value of securities loaned and collateral received thereon were as follows: Value of Securities Value of Loaned Collateral ----------- ----------- LargeCap Growth Portfolio .......................... $22,689,615 $23,032,831 Small Capitalization Portfolio ..................... 6,689,226 7,417,334 Balanced Portfolio ................................. 6,978,120 7,077,232 MidCap Growth Portfolio ............................ -- -- Capital Appreciation Portfolio ..................... 99,285,508 98,673,142 Money Market Portfolio ............................. -- -- (e) 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. The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules. Therefore, the source of the Portfolios' distributions, other than the Money Market Portfolio, may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain on investment transactions, or from paid-in capital, depending on the type of book/tax differences that may exist. At October 31, 2001, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio and the Capital Appreciation Portfolio reclassified $30,796,626, $58,952,361, $64,677, $16,040,977 and $35,548,213, respectively, from undistributed net investment loss to either accumulated undistributed net realized gain or paid-in capital. The reclassifications had no impact on the net asset values of the Portfolios and are designed to present the Portfolios' capital accounts on a tax basis. (f) 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 investment company taxable income to its shareholders. 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, 2001, the net capital loss carryforwards of the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio which may be used to offset future net realized gains were approximately -39- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) $164,971,000, $162,218,000, $35,419,000, $68,890,000, $450,587,000 and $296,000, respectively, and expire between 2002 and 2009. (g) 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. (h) 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. (OAlger ManagementO), are payable monthly and are computed based on the value of the average daily net assets of each Portfolio at the following annual rates: LargeCap 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 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 ODistributorO), for costs and expenses incurred by the Distributor in connection with advertising, marketing and selling the Class B shares. 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 Class B shares of the Portfolios, the excess may be carried forward, with interest, and sought to be reimbursed in future periods. As of April 30, 2002, such excess carried forward was approximately $19,521,000, $15,928,000, $5,526,000, $7,914,000 and $25,982,000 for Class B shares of the LargeCap 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 incurred in distributing the Class C shares. The fees charged may be more or less than the expenses incurred by the Distributor. (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, 2002, the initial sales charges and contingent deferred sales charges retained by the Distributor were approximately $240,000 and $2,794,455, 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. -40- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (d) BROKERAGE COMMISSIONS: During the six months ended April 30, 2002, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the Distributor commissions of $1,714,630, $250,609, $396,827, $1,700,627, and $1,497,756, respectively, in connection with securities transactions. (e) TRANSFER AGENT FEES AND EXPENSES: Alger Shareholder Services, Inc. (OAlger ServicesO), an affiliate of Alger Management, serves as transfer agent for the Fund. During the six months ended April 30, 2002, the LargeCap 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 $802,900, $434,500, $196,585, $553,424, $1,137,850 and $208,900, respectively, for services provided by Alger Services. In addition, during the six months ended April 30, 2002, the LargeCap 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 $314,145, $30,272, $132,611, $232,481, $294,032 and $70,345, 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) OTHER TRANSACTIONS WITH AFFILIATES: 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, 2002 : Purchases Sales ------------ -------------- LargeCap Growth Portfolio ...................... $862,912,420 $ 899,779,117 Small Capitalization Portfolio ................. 149,676,351 159,674,187 Balanced Portfolio ............................. 284,547,468 255,060,217 MidCap Growth Portfolio ........................ 984,154,460 1,051,339,560 Capital Appreciation Portfolio ................. 821,960,126 827,407,822 Options transactions were as follows: Capital Appreciation Portfolio Number of Amount of Contracts Premiums ------------ ------------ Call options written ........................... 500 $ 113,498 Call options exercised ......................... (500) (113,498) ------------ ------------ Call options outstanding at April 30, 2002 ..... 0 $ 0 ============ ============ NOTE 5 -- Lines of Credit: The Fund has both committed and uncommitted lines of credit with banks. All borrowings have variable interest rates and are payable on demand. With the exception of the Capital Appreciation Portfolio, the Fund borrows under such lines of credit exclusively for temporary or emergency purposes. Loans outstanding on April 30, 2002 had an interest rate of 2.44%. The Capital Appreciation Portfolio may borrow under these lines up to 1/3 of the value of its assets, as defined, to purchase additional securities. To the extent the Capital Appreciation Portfolio borrows under these lines, it must pledge securities with a total value of at least twice the amount borrowed. For the six months ended April 30, 2002, the Capital Appreciation Portfolio had borrowings which averaged $1,316,298 at a weighted average interest rate of 2.32%. -41- 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. The transactions of shares of beneficial interest were as follows:
For the six months ended For the year ended April 30, 2002 October 31, 2001 Shares Amount Shares Amount -------------- -------------- -------------- -------------- Alger LargeCap Growth Portfolio Class A: Shares sold .......................... 118,190,578 $1,179,234,714 162,527,138 $1,830,805,578 Shares converted from Class B ........ 969,427 9,465,459 1,744,902 19,313,841 Dividends reinvested ................. -- -- 1,455,788 17,178,299 Shares redeemed ...................... (116,913,258) (1,166,107,061) (164,368,986) (1,859,646,946) -------------- -------------- -------------- -------------- Net increase ......................... 2,246,747 $ 22,593,112 1,358,842 $ 7,650,772 ============== ============== ============== ============== Class B: Shares sold .......................... 23,320,934 $ 222,795,560 113,158,724 $1,222,173,474 Dividends reinvested ................. -- -- 5,101,144 57,744,954 Shares converted to Class A .......... (1,019,675) (9,465,459) (1,824,694) (19,313,841) Shares redeemed ...................... (32,848,101) (314,920,192) (118,417,762) (1,271,372,944) -------------- -------------- -------------- -------------- Net decrease ......................... (10,546,842) $ (101,590,091) (1,982,588) $ (10,768,357) ============== ============== ============== ============== Class C: Shares sold .......................... 1,406,068 $ 13,347,194 3,079,453 $ 33,423,162 Dividends reinvested ................. -- -- 395,810 4,476,606 Shares redeemed ...................... (1,152,861) (10,907,974) (2,907,126) (30,115,675) -------------- -------------- -------------- -------------- Net increase ......................... 253,207 $ 2,439,220 568,137 $ 7,784,093 ============== ============== ============== ============== Alger Small Capitalization Portfolio Class A: Shares sold .......................... 74,215,537 $ 277,325,605 198,728,297 $ 882,271,963 Shares converted from Class B ........ 1,798,857 6,792,512 5,644,043 27,015,364 Dividends reinvested ................. -- -- 3,184,639 17,611,053 Shares redeemed ...................... (76,339,076) (285,990,035) (202,098,063) (904,356,750) -------------- -------------- -------------- -------------- Net increase (decrease) .............. (324,682) $ (1,871,918) 5,458,916 $ 22,541,630 ============== ============== ============== ============== Class B: Shares sold .......................... 6,954,148 24,764,500 22,841,143 $ 95,596,070 Dividends reinvested ................. -- -- 12,370,011 65,313,656 Shares converted to Class A .......... (1,900,020) (6,792,512) (5,922,135) (27,015,364) Shares redeemed ...................... (10,004,796) (35,763,984) (28,588,548) (120,761,077) -------------- -------------- -------------- -------------- Net increase (decrease) .............. (4,950,668) $ (17,791,996) 700,471 $ 13,133,285 ============== ============== ============== ============== Class C: Shares sold .......................... 305,464 $ 1,100,841 240,494 $ 1,131,896 Dividends reinvested ................. -- -- 401,376 2,119,264 Shares redeemed ...................... (201,156) (722,772) (683,960) (3,057,492) -------------- -------------- -------------- -------------- Net increase (decrease) .............. 104,308 $ 378,069 (42,090) $ 193,668 ============== ============== ============== ==============
-42- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
For the six months ended For the year ended April 30, 2002 October 31, 2001 Shares Amount Shares Amount -------------- -------------- -------------- -------------- Alger Balanced Portfolio Class A: Shares sold .......................... 5,595,076 $ 104,279,511 6,768,510 $ 132,115,149 Shares converted from Class B ........ 42,043 772,232 89,153 1,743,871 Dividends reinvested ................. 119,803 2,245,115 50,567 1,011,849 Shares redeemed ...................... (5,540,539) (103,340,811) (5,876,424) (113,546,080) -------------- -------------- -------------- -------------- Net increase ......................... 216,383 $ 3,956,047 1,031,806 $ 21,324,789 ============== ============== ============== ============== Class B: Shares sold .......................... 1,964,575 $ 36,142,346 7,906,564 $ 152,560,732 Dividends reinvested ................. 110,294 2,028,302 59,494 1,166,087 Shares converted to Class A .......... (42,940) (772,232) (91,355) (1,743,871) Shares redeemed ...................... (1,382,885) (25,436,915) (5,478,908) (104,552,368) -------------- -------------- -------------- -------------- Net increase ......................... 649,044 $ 11,961,501 2,395,795 $ 47,430,580 ============== ============== ============== ============== Class C: Shares sold .......................... 690,983 $ 12,735,536 2,014,351 $ 39,232,676 Dividends reinvested ................. 39,698 732,826 20,669 406,567 Shares redeemed ...................... (537,289) (9,851,490) (1,271,687) (24,000,107) -------------- -------------- -------------- -------------- Net increase ......................... 193,392 $ 3,616,872 763,333 $ 15,639,136 ============== ============== ============== ============== Alger MidCap Growth Portfolio Class A: Shares sold .......................... 221,603,460 $1,625,679,215 270,656,811 $2,080,103,823 Shares converted from Class B ........ 1,299,261 9,637,120 1,583,901 12,360,222 Dividends reinvested ................. -- -- 1,711,048 13,585,724 Shares redeemed ...................... (215,552,636) (1,585,376,155) (265,578,828) (2,045,227,353) -------------- -------------- -------------- -------------- Net increase ......................... 7,350,085 $ 49,940,180 8,372,932 $ 60,822,416 ============== ============== ============== ============== Class B: Shares sold .......................... 33,658,687 $ 235,247,482 59,173,020 $ 453,904,946 Dividends reinvested ................. -- -- 7,947,406 60,320,808 Shares converted to Class A .......... (1,371,394) (9,637,120) (1,661,494) (12,360,222) Shares redeemed ...................... (44,543,460) (313,873,325) (54,994,107) (414,381,042) -------------- -------------- -------------- -------------- Net increase (decrease) .............. (12,256,167) $ (88,262,963) 10,464,825 $ 87,484,490 ============== ============== ============== ============== Class C: Shares sold .......................... 3,034,564 $ 21,166,936 6,129,849 $ 46,967,325 Dividends reinvested ................. -- -- 812,983 6,162,412 Shares redeemed ...................... (1,991,677) (13,771,295) (4,033,062) (29,647,378) -------------- -------------- -------------- -------------- Net increase ......................... 1,042,887 $ 7,395,641 2,909,770 $ 23,482,359 ============== ============== ============== ==============
-43- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
For the six months ended For the year ended April 30, 2002 October 31, 2001 Shares Amount Shares Amount -------------- -------------- -------------- -------------- Alger Capital Appreciation Portfolio Class A: Shares sold ......................... 142,875,688 $1,237,951,309 151,270,242 $1,527,584,316 Shares converted from Class B ....... 447,442 3,853,075 642,324 6,213,185 Dividends reinvested ................ -- -- 877,332 9,791,019 Shares redeemed ..................... (144,790,213) (1,252,105,042) (158,003,028) (1,608,108,893) -------------- -------------- -------------- -------------- Net decrease ......................... (1,467,083) $ (10,300,658) (5,213,130) $ (64,520,373) ============== ============== ============== ============== Class B: Shares sold ......................... 16,408,583 $ 136,153,913 59,832,435 $ 613,455,067 Dividends reinvested ................ -- -- 3,314,857 35,701,014 Shares converted to Class A ......... (467,392) (3,853,075) (667,378) (6,213,185) Shares redeemed ..................... (21,267,779) (176,386,725) (70,576,090) (704,737,305) -------------- -------------- -------------- -------------- Net decrease ........................ (5,326,588) $ (44,085,887) (8,096,176) $ (61,794,409) ============== ============== ============== ============== Class C: Shares sold .......................... 2,907,632 $ 24,125,408 10,635,925 $ 104,323,214 Dividends reinvested ................. -- -- 575,854 6,196,182 Shares redeemed ...................... (4,144,072) (34,444,094) (12,765,556) (120,927,216) -------------- -------------- -------------- -------------- Net decrease ........................ (1,236,440) $ (10,318,686) (1,553,777) $ (10,407,820) ============== ============== ============== ============== Alger Money Market Portfolio Shares sold .......................... 4,380,699,644 $4,380,699,644 7,934,516,620 $7,934,516,620 Dividends reinvested ................. 1,254,283 1,254,283 11,070,046 11,070,046 Shares redeemed ...................... (4,547,064,936) (4,547,064,936) (7,776,379,195) (7,776,379,195) -------------- -------------- -------------- -------------- Net increase (decrease) ............. (165,111,009) $ (165,111,009) 169,207,471 $ 169,207,471 ============== ============== ============== ==============
-44- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued) NOTE 7 -- Distributions to Shareholders: The tax character of distributions paid during the six months ended April 30, 2002 and the year ended October 31, 2001 was: Six Year Months Ended Ended April 30, October 31, 2002 2001 ----------- ----------- LargeCap Growth Portfolio Distributions paid from: Ordinary Income ................................ -- -- Long-term capital gain ......................... -- $83,789,906 ----------- ----------- Total distributions paid ....................... -- $83,789,906 =========== =========== Small Capitalization Portfolio Distributions paid from: Ordinary Income ................................ -- -- Long-term capital gain ......................... -- $89,710,890 ----------- ----------- Total distributions paid ....................... -- $89,710,890 =========== =========== Balanced Portfolio Distributions paid from: Ordinary Income ................................ $ 5,390,585 $ 2,759,406 Long-term capital gain ......................... -- -- ----------- ----------- Total distributions paid ....................... $ 5,390,585 $ 2,759,406 =========== =========== MidCap Growth Portfolio Distributions paid from: Ordinary Income ................................ -- $49,618,161 Long-term capital gain ......................... -- 35,887,806 ----------- ----------- Total distributions paid ....................... -- $85,505,967 =========== =========== Capital Appreciation Portfolio Distributions paid from: Ordinary Income ................................ -- -- Long-term capital gain ......................... -- $54,532,243 ----------- ----------- Total distributions paid ....................... -- $54,532,243 =========== =========== Money Market Portfolio Distributions paid from: Ordinary Income ................................ $ 1,632,322 $13,438,710 Long-term capital gain ......................... -- -- ----------- ----------- Total distributions paid ....................... $ 1,632,322 $13,438,710 =========== =========== As of April 30, 2002 the components of distributable earnings on a tax basis were as follows: LargeCap Growth Portfolio Undistributed ordinary income ................................ -- Undistributed long-term gain ................................. -- Capital loss carryforward .................................... $(201,820,000) Unrealized appreciation (depreciation) ....................... (9,302,515) Small Capitalization Portfolio Undistributed ordinary income ................................ -- Undistributed long-term gain ................................. -- Capital loss carryforward .................................... $(161,872,000) Unrealized appreciation (depreciation) ....................... 15,729,131 Balanced Portfolio Undistributed ordinary income ................................ $ 823,028 Undistributed long-term gain ................................. -- Capital loss carryforward .................................... (43,444,000) Unrealized appreciation (depreciation) ....................... 280,475 MidCap Growth Portfolio Undistributed ordinary income ................................ -- Undistributed long-term gain ................................. -- Capital loss carryforward .................................... $ (68,530,000) Unrealized appreciation (depreciation) ....................... 27,394,554 Capital Appreciation Portfolio Undistributed ordinary income ................................ -- Undistributed long-term gain ................................. -- Capital loss carryforward .................................... $(524,202,000) Unrealized appreciation (depreciation) ....................... 20,067,232 Money Market Portfolio Undistributed ordinary income ................................ -- Undistributed long-term gain ................................. -- Capital loss carryforward .................................... $ (296,000) Unrealized appreciation (depreciation) ....................... -- The difference between book basis and tax-basis undistributed long-term gain is attributable primarily to the tax deferral of losses on wash sales and net short-term capital gains taxed as ordinary income. THE ALGER FUND 111 Fifth Avenue 2nd Floor New York, NY 10003 (800) 992-3863 www.algerfund.com BOARD OF TRUSTEES Fred M. Alger, Chairman James P. Connelly, Jr., Vice Chairman Charles F. Baird, Jr. Roger P. Cheever Dan C. Chung Lester L. Colbert, Jr. Stephen E. O'Neil Nathan E. Saint-Amand B. Joseph White INVESTMENT MANAGER Fred Alger Management, Inc. 111 Fifth Avenue 2nd Floor New York, NY 10003 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. REP42 THE ALGER FUND ALGER LARGECAP GROWTH PORTFOLIO ALGER SMALL CAPITALIZATION PORTFOLIO ALGER BALANCED PORTFOLIO ALGER MIDCAP GROWTH PORTFOLIO ALGER CAPITAL APPRECIATION PORTFOLIO ALGER MONEY MARKET PORTFOLIO SEMI-ANNUAL REPORT APRIL 30, 2002 (UNAUDITED) [LOGO]