-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AarvovUfigY+I1cZgxHP+XLpVrmRk+25GIRsN01q7xU9sEX5PMBi/RRcfWlYZl/M MjRVkxAR+mceE75O4SEEbg== 0000930413-03-002169.txt : 20030709 0000930413-03-002169.hdr.sgml : 20030709 20030709161425 ACCESSION NUMBER: 0000930413-03-002169 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030709 EFFECTIVENESS DATE: 20030709 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALGER FUND CENTRAL INDEX KEY: 0000003521 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-01355 FILM NUMBER: 03780252 BUSINESS ADDRESS: STREET 1: 111 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10003 BUSINESS PHONE: 2128068800 MAIL ADDRESS: STREET 1: 30 MONTGOMERY STREET STREET 2: 13TH FLOOR CITY: JERSEY CITY STATE: NJ ZIP: 07302 N-CSR 1 c28185_ncsr.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-1355 The Alger Fund -------------------------------------------------- (Exact name of registrant as specified in charter) 111 Fifth Avenue, New York, New York 10003 --------------------------------------------------- (Address of principal executive offices) (Zip code) MR. GREGORY S. DUCH FRED ALGER MANAGEMENT, INC. 111 FIFTH AVENUE NEW YORK, NY 10003 --------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 212-806-8800 Date of fiscal year end: October 31 Date of reporting period: April 30, 2003 Item 1. REPORTS TO STOCKHOLDERS THE ALGER FUND ALGER LARGECAP GROWTH PORTFOLIO ALGER SMALL CAPITALIZATION PORTFOLIO ALGER BALANCED PORTFOLIO ALGER MIDCAP GROWTH PORTFOLIO ALGER CAPITAL APPRECIATION PORTFOLIO ALGER HEALTH SCIENCES PORTFOLIO ALGER SMALLCAP AND MIDCAP PORTFOLIO ALGER MONEY MARKET PORTFOLIO SEMI-ANNUAL REPORT APRIL 30, 2003 (UNAUDITED) [LOGO] TABLE OF CONTENTS THE ALGER FUND Letter to Our Shareholders............................................... 1 Schedules of Investments................................................. 3 Financial Highlights..................................................... 30 Statements of Assets and Liabilities..................................... 40 Statements of Operations................................................. 42 Statements of Changes in Net Assets...................................... 44 Notes to Financial Statements............................................ 48 Dear Shareholders, June 16, 2003 Slow, steady economic growth; reliable consumers; tentative corporations; and war. That is the short answer to the question: what happened during the six months ended April 30? The last two months of 2002 saw the equity markets recover from their lows of October 9, though a significant portion of those gains were in technology stocks and were then given up in the first weeks of 2003 because the fundamentals had not yet improved. However, throughout this period, the economy remained in a steady growth pattern. It was not a dramatic period. Consumer spending accounted for most of the economic growth. Consumers were aided by historically low interest rates, already well below 4% on the 10-year note by April and continually decreasing thereafter. Low rates led to another wave of mortgage refinancing, which put more money in people's pockets. That refinancing boom, combined with increased federal spending, tax cuts, and a Federal Reserve that has kept short-term rates very low, buoyed consumer spending during a time of weak employment, tentative companies, and tumultuous international affairs. A cold and snowy February of 2003 combined with rising tension and concern about Iraq dampened economic activity across the board. Consumers pared back purchases on certain items, and companies were loathe to undertake capital expenditures ahead of the war. As a result, the economy grew at an annual rate of less than 2% for the first quarter of 2003. However, when it became clear in early March that war was inevitable, the markets rallied. It is often said that the markets hate uncertainty. The rally that began in March was certainly a testament to that notion. The markets seesawed during the uncertain first days of the war, but then resumed their upward movement as Saddam Hussein's regime crumbled. The result was that from November 1, 2002 through April 30, 2003, the Dow rose 2.1%, the S&P 500 was up 4.5%, and the NASDAQ gained 10.1%. Now, for the first time in over two years, Wall Street has begun to look to the future. Companies that can show healthy balance sheets and an ability to improve productivity and expand their businesses are becoming attractive to investors. That is as it should be, but it has not been the case for quite a while. The markets and the country in general are beginning to emerge from two years that included a recession, terrorism, war, and corporate scandals. Sentiment has slowly been shifting away from fear and toward guarded hope. That shift should lead to support for higher levels for the equity markets. That does not mean a return to irrational exuberance, but it does mean a more balanced market where good companies and good stock picking are rewarded. Respectfully submitted, /s/ Dan C. Chung ---------------- Dan C. Chung Chief Investment Officer [This page intentionally left blank] THE ALGER FUND -3- ALGER LARGECAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 COMMON STOCKS--98.2% SHARES VALUE ------- ----- AUTOMOTIVE--1.6% Harley-Davidson, Inc. .......................... 181,100 $ 8,048,084 ----------- BANKS--1.6% Mellon Financial Corporation ................... 312,700 8,270,915 ----------- BIOTECHNOLOGY--4.0% Amgen Inc.* .................................... 116,441 7,138,998 Biogen, Inc.* .................................. 208,900 7,936,111 Genzyme Corp.-General Division* ................ 121,900 4,910,132 ----------- 19,985,241 ----------- COMMERCIAL SERVICES & SUPPLIES--2.3% Concord EFS, Inc.* ............................. 824,550 11,403,526 ----------- COMMUNICATION EQUIPMENT--5.2% Cisco Systems, Inc.* ........................... 882,320 13,270,093 Nokia Corporation, ADR ......................... 774,875 12,839,679 ----------- 26,109,772 ----------- COMPUTERS & PERIPHERALS--5.1% Dell Computer Corporation* ..................... 335,715 9,705,521 EMC Corporation* ............................... 895,450 8,139,640 Sun Microsystems, Inc.* ........................ 2,206,850 7,282,605 ----------- 25,127,766 ----------- DIVERSIFIED FINANCIALS--4.1% Affiliated Managers Group, Inc.*+ .............. 110,000 5,094,100 Citigroup Inc. ................................. 260,470 10,223,447 Merrill Lynch & Co., Inc. ...................... 130,600 5,361,130 ----------- 20,678,677 ----------- ENERGY EQUIPMENT & SERVICES--.5% BJ Services Company* ........................... 71,250 2,601,337 ----------- FREIGHT & LOGISTICS--2.1% FedEx Corp. .................................... 178,120 10,665,826 ----------- HEALTH CARE EQUIPMENT & SUPPLIES--4.8% Alcon, Inc.*+ .................................. 188,900 8,321,045 Boston Scientific Corporation* ................. 194,700 8,381,835 Zimmer Holdings, Inc.* ......................... 147,450 6,915,405 ----------- 23,618,285 ----------- HEALTH CARE PROVIDERS & SERVICES--3.1% HCA Inc. ....................................... 264,150 8,479,215 UnitedHealth Group Incorporated ................ 74,550 6,868,292 ----------- 15,347,507 ----------- INDUSTRIAL CONGLOMERATES--6.2% General Electric Company ....................... 546,350 16,090,007 Tyco International Ltd. ........................ 931,000 14,523,600 ----------- 30,613,607 ----------- THE ALGER FUND -4- ALGER LARGECAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------- ----- INSURANCE--3.6% AFLAC Incorporated ............................. 109,250 $ 3,573,567 American International Group, Inc. ............. 187,440 10,862,148 Travelers Property Casualty Corp. Cl. A ........ 230,650 3,743,450 ----------- 18,179,165 ----------- INTERNET & CATALOG RETAIL--4.5% Amazon.com, Inc.* .............................. 97,800 2,803,926 eBay Inc.*+ .................................... 156,080 14,479,542 USA Interactive*+ .............................. 187,000 5,600,650 ----------- 22,884,118 ----------- INTERNET SOFTWARE & SERVICES--1.6% Yahoo! Inc.* ................................... 313,000 7,756,140 ----------- MEDIA--3.6% Disney (Walt) Company .......................... 328,650 6,132,609 Viacom Inc. Cl. B* ............................. 270,515 11,743,056 ----------- 17,875,665 ----------- MULTILINE RETAIL--2.8% Wal-Mart Stores, Inc. .......................... 248,250 13,981,440 ----------- OIL & GAS--1.8% Devon Energy Corporation ....................... 186,420 8,808,345 ----------- PERSONAL PRODUCTS--1.0% Avon Products, Inc. ............................ 85,000 4,944,450 ----------- PHARMACEUTICALS--13.3% Abbott Laboratories ............................ 235,110 9,552,519 Bristol-Myers Squibb Company ................... 372,450 9,512,373 Johnson & Johnson .............................. 236,730 13,342,103 Merck & Co., Inc. .............................. 164,650 9,579,337 Pfizer Inc. .................................... 415,037 12,762,388 Teva Pharmaceutical Industries Ltd. ADR+ ....... 88,000 4,109,600 Wyeth .......................................... 175,930 7,658,233 ----------- 66,516,553 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS--6.1% Applied Materials, Inc.* ....................... 160,900 2,349,140 Intel Corporation .............................. 667,000 12,272,800 Linear Technology Corporation .................. 218,980 7,548,241 Taiwan Semiconductor Manufacturing Company Ltd. ADR* ............................ 1,006,250 8,422,312 ----------- 30,592,493 ----------- SOFTWARE--9.6% Microsoft Corporation .......................... 636,080 16,264,566 Oracle Corporation* ............................ 1,058,900 12,579,732 Synopsys, Inc.* ................................ 161,700 7,865,088 VERITAS Software Corporation* .................. 515,600 11,348,356 ----------- 48,057,742 ----------- THE ALGER FUND -5- ALGER LARGECAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------- ----- SPECIALTY RETAIL--7.1% Best Buy Co., Inc.* ............................ 318,200 $ 11,003,356 Gap, Inc. ...................................... 738,000 12,272,940 Home Depot, Inc. ............................... 272,200 7,656,986 Lowe's Companies, Inc. ......................... 107,615 4,723,222 ------------ 35,656,504 ------------ WIRELESS TELECOMMUNICATION SERVICES--2.6% Vodafone Group PLC Sponsored ADR+ ............................... 665,000 13,140,400 ------------ Total Common Stocks (Cost $450,566,433) .......................... 490,863,558 ------------ PRINCIPAL SHORT-TERM INVESTMENTS--11.5% AMOUNT --------- U.S. GOVERNMENT & AGENCY OBLIGATIONS--3.3% Federal National Mortgage Association, 1.25%, 5/1/03 (Cost $16,400,000) .................... $16,400,000 16,400,000 ------------ OTHER SHORT-TERM INVESTMENTS--8.2% SHARES -------- Security Lending Quality Trust (Cost $40,875,561)(b) ........................ 40,875,561 40,875,561 ------------ Total Short-Term Investments (Cost $57,275,561) ........................... 57,275,561 ------------ Total Investments (Cost $507,841,994)(a) ....................... 109.7% 548,139,119 Liabilities in Excess of Other Assets ................................. (9.7) (48,407,265) ------ ------------ Net Assets ..................................... 100.0% $499,731,854 ====== ============ - ---------- * Non-income producing security. + Securities Partially or Fully on Loan. (a) At April 30, 2003, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $556,272,116, amounted to $8,132,997 which consisted of aggregate gross unrealized appreciation of $33,498,030 and aggregate gross unrealized depreciation of $41,631,027. (b) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. THE ALGER FUND -6- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 COMMON STOCKS--96.6% SHARES VALUE ------- ----- AEROSPACE & DEFENSE--2.4% Alliant Techsystems Inc.* ........................ 37,900 $ 2,035,988 Veridian Corporation* ............................ 97,000 1,842,030 ------------ 3,878,018 ------------ AIR FREIGHT & LOGISTICS--2.6% J.B. Hunt Transport Services, Inc.* .............. 62,200 2,149,010 Pacer International, Inc.* ....................... 132,910 2,113,269 ------------ 4,262,279 ------------ AUTO COMPONENTS--.4% BorgWarner, Inc. ................................. 12,650 742,175 ------------ BANKS--5.5% BankAtlantic Bancorp, Inc. Cl. A ................. 70,600 813,312 Brookline Bancorp, Inc. .......................... 97,550 1,304,244 City National Corporation ........................ 22,710 934,971 Independence Community Bank Corp. ................ 73,550 1,923,332 Southwest Bancorporation of Texas, Inc.* ......... 37,550 1,275,949 UCBH Holdings, Inc. .............................. 107,900 2,744,976 ------------ 8,996,784 ------------ BEVERAGES--1.2% Constellation Brands, Inc. Cl. A* ................ 76,650 2,054,986 ------------ BIOTECHNOLOGY--4.2% Affymetrix Inc.* ................................. 43,900 814,345 Alkermes, Inc.* .................................. 103,350 1,031,433 BioMarin Pharmaceutical Inc.* .................... 71,400 783,972 Charles River Laboratories International, Inc.* .. 36,200 982,830 Millennium Pharmaceuticals, Inc.* ................ 154,800 1,702,800 Neurocrine Biosciences, Inc.* .................... 17,350 785,088 QLT Inc.* ........................................ 30,400 353,856 Trimeris, Inc.* .................................. 9,350 415,046 ------------ 6,869,370 ------------ COMMERCIAL SERVICES & SUPPLIES--10.5% Alliance Data Systems Corporation* ............... 67,200 1,411,200 Amdocs Limited* .................................. 157,200 2,776,152 BISYS Group, Inc. (The)* ......................... 149,160 2,517,821 Career Education Corporation* .................... 28,750 1,728,738 ChoicePoint Inc.* ................................ 42,316 1,492,908 Corinthian Colleges, Inc.* ....................... 58,550 2,681,005 Education Management Corporation* ................ 44,800 2,187,136 FTI Consulting, Inc.* ............................ 37,200 1,683,300 Hewitt Associates, Inc.* ......................... 29,750 824,373 ------------ 17,302,633 ------------ THE ALGER FUND -7- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------- ----- COMMUNICATION EQUIPMENT--1.5% Emulex Corporation* .......................... 60,200 $ 1,233,498 Foundry Networks, Inc.* ...................... 30,000 326,400 NetScreen Technologies, Inc.* ................ 47,300 959,244 ------------ 2,519,142 ------------ COMPUTERS & PERIPHERALS--.6% Western Digital Corporation* ................. 102,700 958,191 ------------ DIVERSIFIED FINANCIALS--3.6% Affiliated Managers Group, Inc.* ............. 44,950 2,081,635 Doral Financial Corp. ........................ 65,550 2,622,656 First Niagara Financial Group Inc. ........... 101,550 1,233,832 ------------ 5,938,123 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES--1.0% Commonwealth Telephone Enterprises, Inc.* .... 41,725 1,658,569 ------------ ELECTRICAL EQUIPMENT--1.3% AMETEK, Inc. ................................. 55,525 2,093,293 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS--1.5% Benchmark Electronics, Inc.* ................. 42,290 1,097,426 FLIR Systems, Inc.* .......................... 25,900 1,348,872 ------------ 2,446,298 ------------ ENERGY EQUIPMENT & SERVICES--2.6% Cooper Cameron Corporation* .................. 41,750 1,998,155 Smith International, Inc.* ................... 62,900 2,236,724 ------------ 4,234,879 ------------ FOOD PRODUCTS--1.2% American Italian Pasta Company Cl. A* ........ 44,480 1,961,568 ------------ HEALTH CARE EQUIPMENT & SUPPLIES--4.9% CTI Molecular Imaging, Inc.*+ ................ 75,100 1,378,836 Edwards Lifesciences Corporation* ............ 46,800 1,351,116 Respironics, Inc.* ........................... 56,250 2,161,125 STERIS Corporation* .......................... 84,780 1,924,506 Wright Medical Group, Inc.* .................. 63,310 1,201,624 ------------ 8,017,207 ------------ HEALTH CARE PROVIDERS & SERVICES--4.0% Covance Inc.* ................................ 76,080 1,348,898 LifePoint Hospitals, Inc.* ................... 82,800 1,616,256 Mid Atlantic Medical Services, Inc.* ......... 54,200 2,360,410 VCA Antech, Inc.* ............................ 78,000 1,309,542 ------------ 6,635,106 ------------ THE ALGER FUND -8- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------- ----- HOTELS, RESTAURANTS & LEISURE--4.7% Alliance Gaming Corporation* ..................... 143,350 $ 2,289,300 Applebee's International, Inc. ................... 72,975 1,999,515 California Pizza Kitchen, Inc.* .................. 74,900 1,509,984 Station Casinos, Inc.* ........................... 90,800 1,962,188 ------------ 7,760,987 ------------ INFORMATION TECHNOLOGY CONSULTING & SERVICES--3.3% Acxiom Corporation* .............................. 82,800 1,155,888 CACI International Inc. Cl. A* ................... 49,000 1,711,570 Cognizant Technology Solutions Corporation Cl. A* 36,240 650,870 Manhattan Associates, Inc.* ...................... 80,450 1,946,085 ------------ 5,464,413 ------------ INSURANCE--3.8% Arch Capital Group Ltd.* ......................... 64,800 2,255,688 RenaissanceRe Holdings Ltd. ...................... 52,580 2,328,768 W. R. Berkley Corporation ........................ 37,660 1,748,930 ------------ 6,333,386 ------------ INTERNET SOFTWARE & SERVICES--.8% Digital Insight Corporation* ..................... 84,100 1,359,056 ------------ LEISURE EQUIPMENT & PRODUCTS--1.1% Leapfrog Enterprises, Inc.* ...................... 67,200 1,794,240 ------------ MACHINERY--2.8% Actuant Corporation Cl. A* ....................... 54,400 2,018,240 AGCO Corporation* ................................ 47,950 873,169 Pentair, Inc. .................................... 43,410 1,673,021 ------------ 4,564,430 ------------ MEDIA--3.6% Entercom Communications Corp.* ................... 29,350 1,426,117 Media General, Inc. Cl. A ........................ 38,220 2,100,571 Radio One, Inc. Cl. A* ........................... 71,600 1,111,948 TMP Worldwide, Inc.* ............................. 81,750 1,370,947 ------------ 6,009,583 ------------ MULTILINE RETAIL--.5% Nordstrom, Inc. .................................. 47,600 824,908 ------------ OIL & GAS--2.5% Noble Energy, Inc. ............................... 57,800 1,918,960 Pogo Producing Company ........................... 56,850 2,251,260 ------------ 4,170,220 ------------ THE ALGER FUND -9- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------- ----- PHARMACEUTICALS--5.7% IVAX Corporation* ................................ 138,100 $ 2,219,267 NPS Pharmaceuticals, Inc.* ....................... 61,500 1,171,575 Pharmaceutical Resources, Inc.* .................. 44,550 1,957,972 Sepracor Inc.* ................................... 40,800 781,320 SICOR Inc.* ...................................... 89,800 1,610,114 Taro Pharmaceutical Industries Ltd.* ............. 38,150 1,745,744 ------------ 9,485,992 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--6.6% Cymer, Inc.* ..................................... 48,250 1,377,538 Fairchild Semiconductor International, Inc. Cl. A* 132,250 1,569,807 Integrated Circuit Systems, Inc.* ................ 54,850 1,191,342 International Rectifier Corporation* ............. 69,900 1,581,138 Marvell Technology Group Ltd.* ................... 79,650 1,838,242 Power Integrations, Inc.* ........................ 37,480 829,507 Semtech Corporation* ............................. 83,650 1,330,035 Varian Semiconductor Equipment Associates, Inc.* . 50,970 1,174,858 ------------ 10,892,467 ------------ SOFTWARE--6.2% Borland Software Corporation* .................... 174,300 1,580,901 Business Objects S.A. Sponsored ADR* ............. 98,250 2,134,973 Documentum, Inc.* ................................ 56,700 1,042,713 Fair Isaac Corporation ........................... 47,270 2,461,822 J. D. Edwards & Company* ......................... 134,700 1,613,706 Synopsys, Inc.* .................................. 27,725 1,348,544 ------------ 10,182,659 ------------ SPECIALTY RETAIL--4.6% AnnTaylor Stores Corporation* .................... 91,075 2,154,835 Chico's FAS, Inc.* ............................... 79,000 1,922,860 Hollywood Entertainment Corporation* ............. 53,350 946,963 Rent-A-Center, Inc.* ............................. 25,840 1,658,928 Urban Outfitters, Inc.* .......................... 30,300 903,546 ------------ 7,587,132 ------------ TEXTILES, APPAREL & LUXURY GOODS--1.4% Coach, Inc.* ..................................... 51,290 2,231,628 ------------ Total Common Stocks (Cost $143,874,266) ............................ 159,229,722 ------------ THE ALGER FUND -10- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 PRINCIPAL SHORT-TERM INVESTMENTS--3.1% AMOUNT VALUE --------- ----- U.S. GOVERNMENT & AGENCY OBLIGATIONS Federal National Mortgage Association 1.25%, 5/1/03 (Cost $5,150,000) ................................ $5,150,000 $ 5,150,000 ------------ Total Investments (Cost $149,024,266)(a) ........................... 99.7% 164,379,722 Other Assets in Excess of Liabilities .............. 0.3 464,418 ----- ------------ Net Assets ......................................... 100.0% $164,844,140 ===== ============ - ---------- * Non-income producing security. + Securities Partially or Fully on Loan. (a) At April 30, 2003, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $149,845,202, amounted to $14,534,520 which consisted of aggregate gross unrealized appreciation of $22,115,633 and aggregate gross unrealized depreciation of $7,581,113. See Notes to Financial Statements. THE ALGER FUND -11- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 COMMON STOCKS--60.0% SHARES VALUE ------ ----- AUTOMOTIVE--1.0% Harley-Davidson, Inc. ........................ 56,700 $ 2,519,747 ------------ BANKS--.7% Mellon Financial Corporation ................. 68,950 1,823,728 ------------ BIOTECHNOLOGY--2.5% Amgen Inc.* .................................. 37,926 2,325,243 Biogen, Inc.* ................................ 66,100 2,511,139 Genzyme Corp.-General Division* .............. 39,700 1,599,116 ------------ 6,435,498 ------------ COMMERCIAL SERVICES & SUPPLIES--1.2% Concord EFS, Inc.* ........................... 219,200 3,031,536 ------------ COMMUNICATION EQUIPMENT--3.3% Cisco Systems, Inc.* ......................... 282,400 4,247,296 Nokia Corporation, ADR ....................... 253,350 4,198,010 ------------ 8,445,306 ------------ COMPUTERS & PERIPHERALS--3.2% Dell Computer Corporation* ................... 109,200 3,156,972 EMC Corporation * ............................ 294,200 2,674,278 Sun Microsystems, Inc.* ...................... 675,600 2,229,480 ------------ 8,060,730 ------------ DIVERSIFIED FINANCIALS--2.5% Affiliated Managers Group, Inc.*+ ............ 33,400 1,546,754 Citigroup Inc. ............................... 79,950 3,138,038 Merrill Lynch & Co., Inc. .................... 41,300 1,695,365 ------------ 6,380,157 ------------ ENERGY EQUIPMENT & SERVICES--.3% BJ Services Company* ......................... 21,850 797,744 ------------ FREIGHT & LOGISTICS--1.1% FedEx Corp. .................................. 47,275 2,830,827 ------------ HEALTH CARE EQUIPMENT & SUPPLIES--2.9% Alcon, Inc.* ................................. 59,100 2,603,355 Boston Scientific Corporation* ............... 61,550 2,649,728 Zimmer Holdings, Inc.* ....................... 45,175 2,118,707 ------------ 7,371,790 ------------ HEALTH CARE PROVIDERS & SERVICES--1.9% HCA Inc. ..................................... 80,300 2,577,630 UnitedHealth Group Incorporated .............. 24,425 2,250,275 ------------ 4,827,905 ------------ INDUSTRIAL CONGLOMERATES--3.6% General Electric Company ..................... 161,100 4,744,395 Tyco International Ltd. ...................... 284,950 4,445,220 ------------ 9,189,615 ------------ THE ALGER FUND -12- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------- ----- INSURANCE--2.4% AFLAC Incorporated ........................... 34,500 $ 1,128,495 American International Group, Inc. ........... 65,100 3,772,545 Travelers Property Casualty Corp. Cl. A ...... 69,950 1,135,288 ------------ 6,036,328 ------------ INTERNET & CATALOG RETAIL--2.8% Amazon.com, Inc.* ............................ 29,900 857,233 eBay Inc.*+ .................................. 50,025 4,640,819 USA Interactive *+ ........................... 51,000 1,527,450 ------------ 7,025,502 ------------ INTERNET SOFTWARE & SERVICES--.6% Yahoo! Inc.*+ ................................ 62,250 1,542,555 ------------ MEDIA--2.3% Disney (Walt) Company ........................ 103,950 1,939,707 Viacom Inc. Cl. B* ........................... 87,125 3,782,096 ------------ 5,721,803 ------------ MULTILINE RETAIL--1.7% Wal-Mart Stores, Inc. ........................ 76,300 4,297,216 ------------ OIL & GAS--1.1% Devon Energy Corporation+ .................... 61,050 2,884,613 ------------ PERSONAL PRODUCTS--.6% Avon Products, Inc. .......................... 28,000 1,628,760 ------------ PHARMACEUTICALS--8.4% Abbott Laboratories .......................... 75,260 3,057,814 Bristol-Myers Squibb Company ................. 121,400 3,100,556 Johnson & Johnson ............................ 77,400 4,362,264 Merck & Co., Inc. ............................ 53,650 3,121,357 Pfizer Inc. .................................. 141,505 4,351,279 Teva Pharmaceutical Industries Ltd. ADR ...... 20,500 957,350 Wyeth ........................................ 53,835 2,343,438 ------------ 21,294,058 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--3.7% Applied Materials, Inc.* ..................... 52,800 770,880 Intel Corporation ............................ 217,400 4,000,160 Linear Technology Corporation ................ 70,200 2,419,794 Taiwan Semiconductor Manufacturing Company Ltd. ADR* .......................... 250,390 2,095,764 ------------ 9,286,598 ------------ SOFTWARE--5.9% Microsoft Corporation ........................ 207,300 5,300,661 Oracle Corporation* .......................... 325,500 3,866,940 Synopsys, Inc.* .............................. 49,680 2,416,435 VERITAS Software Corporation* ................ 158,500 3,488,585 ------------ 15,072,621 ------------ THE ALGER FUND -13- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- SPECIALTY RETAIL--4.4% Best Buy Co., Inc.* ............................... 97,800 $ 3,381,924 Gap, Inc.+ ........................................ 226,900 3,773,347 Home Depot, Inc. .................................. 85,200 2,396,676 Lowe's Companies, Inc. ............................ 35,050 1,538,344 ------------ 11,090,291 ------------ WIRELESS TELECOMMUNICATION SERVICES--1.9% Vodafone Group PLC Sponsored ADR+ ................. 243,850 4,818,476 ------------ Total Common Stocks (Cost $139,105,264) ........... 152,413,404 ------------ PRINCIPAL CORPORATE BONDS--16.2% AMOUNT --------- AEROSPACE & DEFENSE--.4% Boeing Capital Corp.,6.50%, 2/15/12+ .............. $ 425,000 454,742 Northrop Grumman Corporation,7.125%, 2/15/11 ...... 435,000 491,067 ------------ 945,809 ------------ AUTOMOTIVE--.9% Daimler Chrysler N.A. Holding Corp., 4.75%, 1/15/08 425,000 437,036 Ford Motor Credit Company, 7.375%, 2/1/11 ......... 1,181,000 1,111,793 General Motors Acceptance Corp., 6.125%, 1/22/08 .. 834,000 836,685 ------------ 2,385,514 ------------ BANKS--1.5% Associates Corp. of North America, 6.95%, 11/1/18 . 2,000,000 2,204,940 US Bancorp National Association, Minneapolis, 6.50%, 2/1/08 ................................... 400,000 449,776 Washington Mutual, Inc., 4.375%, 1/15/08 .......... 1,050,000 1,089,701 ------------ 3,744,417 ------------ BEVERAGES--.9% Anheuser-Busch Companies, Inc., 7.00%, 12/1/25 .... 650,000 703,547 Coca-Cola Enterprises Inc., 5.25%, 5/15/07 ........ 1,500,000 1,602,435 ------------ 2,305,982 ------------ CABLE--.2% Cox Communications, Inc., 7.125%, 10/1/12 ......... 550,000 635,981 ------------ COMMUNICATION SERVICES--.2% AT&T Wireless Services Inc., 7.50%, 5/1/07 ........ 520,000 582,364 ------------ COMPUTERS & PERIPHERALS--.5% IBM Corp., 6.22%, 8/1/27 .......................... 1,150,000 1,265,046 ------------ DIVERSIFIED FINANCIALS--2.2% Block Financial Corp., 8.50%, 4/15/07 ............. 500,000 582,905 Goldman Sachs Group, Inc., 6.60%, 1/15/12 ......... 2,000,000 2,268,340 Household Finance Corp., 4.625%, 1/15/08 .......... 275,000 283,569 J.P. Morgan Chase & Co., 6.625%, 3/15/12 .......... 750,000 845,115 Morgan Stanley Dean Witter, 6.75%, 4/15/11 ........ 1,500,000 1,692,390 ------------ 5,672,319 ------------ THE ALGER FUND -14- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 PRINCIPAL CORPORATE BONDS--(CONT.) AMOUNT VALUE --------- ----- DIVERSIFIED TELECOMMUNICATION SERVICES--1.3% Verizon Global Funding Corp., 7.375%, 9/1/12 ...... $ 750,000 $ 886,792 Verizon Wireless Capital LLC Note, 5.375%, 12/15/06 1,250,000 1,334,013 Verizon Wireless Capital Floating Rate Note, 1.66%, 12/17/03 ................................. 1,000,000 1,005,960 ------------ 3,226,765 ------------ ELECTRIC UTILITIES--1.6% AEP Texas North Co. Sr. Note Series A 5.50%, 3/1/13(a) ................................ 523,000 541,002 Con Edison Company of New York, 5.625%, 7/1/12 .... 1,500,000 1,610,730 Dominion Resources Inc., 5.00%, 3/15/13 ........... 690,000 697,493 Potomac Electric Power Co., 7.00%, 1/15/24 ........ 200,000 208,124 PSEG Power LLC Senior Note, 6.95%, 6/1/12 ......... 435,000 480,423 Washington Gas Light Co., 6.51%, 8/18/08 .......... 500,000 553,415 ------------ 4,091,187 ------------ ENERGY EQUIPMENT & SERVICES--.9% Baker Hughes Inc., 6.25%, 1/15/09 ................. 2,000,000 2,208,300 ------------ FOOD PRODUCTS--.5% Archer-Daniels-Midland Co., 8.875%, 4/15/11 ....... 1,000,000 1,316,380 ------------ INDUSTRIAL CONGLOMERATES--.8% General Electric Company, 5.00%, 2/1/13 ........... 1,360,000 1,399,236 Tyco International Group SA, 5.80%, 8/1/06 ........ 615,000 611,925 ------------ 2,011,161 ------------ INSURANCE--.5% Loews Corp., 7.625%, 6/1/23 ....................... 500,000 519,345 Safeco Corporation, 7.25%, 9/1/12 ................. 600,000 694,092 ------------ 1,213,437 ------------ MEDIA--1.3% AOL Time Warner Inc., 6.875%, 5/1/12 .............. 700,000 749,868 Comcast Corporation Cl. A, 6.50%, 1/15/15 ......... 765,000 818,167 Liberty Media Corporation, 5.70%, 5/15/13 ......... 430,000 428,400 News America Inc., 6.625%, 1/9/08 ................. 435,000 480,775 Viacom Inc., 7.875%, 7/30/30 ...................... 750,000 964,823 ------------ 3,442,033 ------------ MULTILINE RETAIL--.4% Wal-Mart Stores, Inc., 4.55%, 5/1/13 .............. 1,000,000 1,008,710 ------------ OIL & GAS--.7% Conoco Funding Co., 6.35%, 10/15/11 ............... 1,500,000 1,660,335 ------------ PHARMACEUTICALS--.4% Pharmacia Corporation, 6.50%, 12/1/18 ............. 1,000,000 1,120,340 ------------ TELEPHONES--.5% Deutsche Telek International Fin B V Gtd Notes, 8.50%, 6/15/10 .................................. 1,000,000 1,180,860 ------------ THE ALGER FUND -15- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 PRINCIPAL CORPORATE BONDS--(CONT.) AMOUNT VALUE --------- ----- WIRELESS TELECOMMUNICATION SERVICES--.5% Vodafone Airtouch PLC, 7.75%, 2/15/10 ............ $1,000,000 $ 1,207,680 ------------ Total Corporate Bonds (Cost $39,351,585) ......... 41,224,620 ------------ CORPORATE INVESTMENT GRADE TRUST--.7% Core Investment Grade Bond Trust I, 4.727%, 11/30/07+ (Cost $1,750,000) .................... 1,750,000 1,818,933 ------------ U.S. GOVERNMENT & AGENCY OBLIGATIONS--18.8% Federal Home Loan Banks, 5.77%, 2/3/04 .................................. 200,000 206,868 5.125%, 3/6/06 ................................. 1,500,000 1,628,460 6.12%, 8/26/08 ................................. 1,000,000 1,015,470 Federal Home Loan Mortgage Corporation, 3.25%, 11/15/04 ................................ 3,000,000 3,089,250 4.70%, 11/1/05 ................................. 2,000,000 2,000,380 Federal National Mortgage Association, 5.50%, 2/15/06 ................................. 3,000,000 3,302,430 4.375%, 10/15/06 ............................... 4,500,000 4,793,895 U.S. Treasury Bonds, 6.25%, 8/15/23 ................................. 3,148,000 3,728,900 6.00%, 2/15/26 ................................. 3,831,000 4,421,817 5.50%, 8/15/28 ................................. 2,000,000 2,172,820 5.25%, 11/15/28 ................................ 2,000,000 2,101,880 5.375%, 2/15/31 ................................ 1,050,000 1,145,319 U.S. Treasury Notes, 1.875%, 9/30/04 ................................ 5,611,000 5,657,459 5.875% 11/15/04 ................................ 1,000,000 1,069,060 2.00%, 11/30/04 ................................ 2,300,000 2,323,713 5.625%, 2/15/06 ................................ 2,000,000 2,204,680 4.625%, 5/15/06 ................................ 3,000,000 3,231,570 6.50%, 10/15/06 ................................ 1,500,000 1,712,820 3.50%, 11/15/06 ................................ 2,006,000 2,090,633 ------------ Total U.S. Government & Agency Obligations (Cost $46,204,796) ............................. 47,897,424 ------------ THE ALGER FUND -16- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 PRINCIPAL SHORT-TERM INVESTMENTS--10.0% AMOUNT VALUE --------- ----- U.S. GOVERNMENT & AGENCY OBLIGATIONS--4.1% Federal National Mortgage Association,1.25%, 5/1/03 (Cost $10,300,000) ....................... $10,300,000 $ 10,300,000 ------------ OTHER SHORT-TERM INVESTMENTS--5.9% SHARES ------- Securities Lending Quality Trust (Cost $15,078,153)(c) ........................... 15,078,153 15,078,153 ------------ Total Short-Term Investments (Cost $25,378,153) .............................. 25,378,153 ------------ Total Investments (Cost $251,789,798)(b) .......................... 105.7% 268,732,534 Liabilities In Excess of Other Assets ............ (5.7) (14,601,585) ----- ------------ Net Assets ........................................ 100.0% $254,130,949 ===== ============ - ---------- * 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, 2003, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $266,105,830, amounted to $2,626,704 which consisted of aggregate gross unrealized appreciation of $14,598,813 and aggregate gross unrealized depreciation of $11,972,109. (c) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. THE ALGER FUND -17- ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 COMMON STOCKS--95.3% SHARES VALUE ------ ----- AEROSPACE & DEFENSE--1.9% L-3 Communications Holdings, Inc.* ............... 199,180 $ 8,843,592 ------------ BANKS--1.0% Synovus Financial Corp. .......................... 228,900 4,456,683 ------------ BEVERAGES--.5% Constellation Brands, Inc. Cl. A* ................ 83,450 2,237,294 ------------ BIOTECHNOLOGY--5.3% Biogen, Inc.* .................................... 122,215 4,642,948 Genzyme Corp.-General Division* .................. 124,500 5,014,860 Gilead Sciences, Inc.* ........................... 161,000 7,428,540 IDEC Pharmaceuticals Corporation* ................ 220,550 7,223,012 ------------ 24,309,360 ------------ COMMERCIAL SERVICES & SUPPLIES--8.7% Amdocs Limited* .................................. 770,100 13,599,966 BISYS Group, Inc. (The)* ......................... 838,005 14,145,524 Corinthian Colleges, Inc.* ....................... 266,750 12,214,483 ------------ 39,959,973 ------------ COMMUNICATION EQUIPMENT--4.6% Comverse Technology, Inc.* ....................... 902,900 11,800,903 Foundry Networks, Inc.* .......................... 176,500 1,920,320 Tellabs, Inc.* ................................... 1,229,000 7,595,220 ------------ 21,316,443 ------------ COMPUTER SOFTWARE--.5% Legato Systems, Inc.* ............................ 391,000 2,314,720 ------------ COMPUTERS & PERIPHERALS--2.2% Lexmark International, Inc. Cl. A* ............... 91,810 6,840,763 Network Appliance, Inc.* ......................... 236,000 3,134,080 ------------ 9,974,843 ------------ DIVERSIFIED FINANCIALS--2.4% Affiliated Managers Group, Inc.* ................. 236,448 10,949,907 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS--2.4% Flextronics International Ltd.* .................. 1,282,550 11,222,312 ------------ ENERGY EQUIPMENT & SERVICES--1.8% BJ Services Company* ............................. 117,095 4,275,138 Cooper Cameron Corporation* ...................... 85,200 4,077,672 ------------ 8,352,810 ------------ HEALTH CARE EQUIPMENT & SUPPLIES--3.3% Varian Medical Systems, Inc.* .................... 117,400 6,323,164 Zimmer Holdings, Inc.* ........................... 187,865 8,810,869 ------------ 15,134,033 ------------ THE ALGER FUND -18- ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- HEALTH CARE PROVIDERS & SERVICES--7.6% Aetna Inc. ....................................... 234,250 $ 11,665,650 Anthem, Inc.* .................................... 130,750 8,974,680 Laboratory Corporation of America Holdings* ...... 240,300 7,079,238 Omnicare, Inc. ................................... 261,950 6,946,914 ------------ 34,666,482 ------------ HOTELS, RESTAURANTS & LEISURE--2.9% Alliance Gaming Corporation* ..................... 278,700 4,450,839 MGM MIRAGE* ...................................... 117,600 3,342,192 Starbucks Corporation* ........................... 241,800 5,679,882 ------------ 13,472,913 ------------ INSURANCE--4.0% Lincoln National Corporation ..................... 144,450 4,616,622 Willis Group Holdings Limited .................... 288,780 9,007,048 W. R. Berkley Corporation ........................ 98,500 4,574,340 ------------ 18,198,010 ------------ INTERNET & CATALOG RETAIL--5.2% Amazon.com, Inc.* ................................ 426,800 12,236,356 NetFlix Inc.*+ ................................... 499,300 11,433,970 ------------ 23,670,326 ------------ INTERNET SOFTWARE & SERVICES--3.7% VeriSign, Inc.* .................................. 660,000 8,197,200 Yahoo! Inc.* ..................................... 350,460 8,684,399 ------------ 16,881,599 ------------ LEISURE EQUIPMENT & PRODUCTS--2.3% Leapfrog Enterprises, Inc.* ...................... 398,850 10,649,295 ------------ MEDIA--6.0% Entercom Communications Corp.* ................... 180,530 8,771,953 McClatchy Company Cl. A .......................... 122,750 7,193,150 XM Satellite Radio Holdings Inc. Cl. A*+ ......... 1,173,300 11,345,811 ------------ 27,310,914 ------------ OIL & GAS--3.6% EOG Resources, Inc. .............................. 224,950 8,408,631 Valero Energy Corporation ........................ 224,700 8,257,725 ------------ 16,666,356 ------------ PHARMACEUTICALS--4.2% Allergan, Inc. ................................... 57,800 4,060,450 Mylan Laboratories Inc. .......................... 180,125 5,092,134 Teva Pharmaceutical Industries Ltd. ADR .......... 136,400 6,369,880 Watson Pharmaceuticals Inc.* ..................... 129,250 3,757,298 ------------ 19,279,762 ------------ THE ALGER FUND -19- ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- SEMICONDUCTOR EQUIPMENT & PRODUCTS--5.9% Altera Corporation * ............................. 208,900 $ 3,302,709 Fairchild Semiconductor International, Inc. Cl. A* 553,700 6,572,419 International Rectifier Corporation* ............. 123,625 2,796,398 Intersil Corporation Cl. A* ...................... 283,100 5,237,350 Novellus Systems, Inc.* .......................... 75,450 2,115,618 Photronics, Inc.* ................................ 562,000 7,064,340 ------------ 27,088,834 ------------ SOFTWARE--6.7% BEA Systems, Inc.* ............................... 396,400 4,245,444 BMC Software, Inc.* .............................. 278,850 4,160,442 Fair Isaac Corporation ........................... 160,800 8,374,464 Intuit Inc.* ..................................... 107,600 4,172,728 Synopsys, Inc.* .................................. 116,900 5,686,016 Take-Two Interactive Software, Inc.* ............. 189,900 4,272,750 ------------ 30,911,844 ------------ SPECIALTY RETAIL--7.2% AnnTaylor Stores Corporation* .................... 238,900 5,652,374 Best Buy Co., Inc.* .............................. 280,100 9,685,858 Chico's FAS, Inc.* ............................... 244,400 5,948,696 PETsMART, Inc.* .................................. 468,385 7,086,665 Urban Outfitters, Inc.* .......................... 164,900 4,917,318 ------------ 33,290,911 ------------ TRADING COMPANIES & DISTRIBUTORS--1.4% W.W. Grainger, Inc. .............................. 140,540 6,485,921 ------------ Total Common Stocks (Cost $400,002,070) ............................ 437,645,137 ------------ PRINCIPAL SHORT-TERM INVESTMENTS--5.0% AMOUNT --------- U.S. GOVERNMENT & AGENCY OBLIGATIONS Federal National Mortgage Association, 1.25%, 5/1/03 (Cost $23,000,000) ............... $23,000,000 23,000,000 ------------ Total Investments (Cost $423,002,070)(a) ......................... 100.3% 460,645,137 Liabilities in Excess of Other Assets ............ (0.3) (1,262,002) ----- ------------ Net Assets ....................................... 100.0% $459,383,135 ===== ============ - ---------- * Non-income producing security. + Securities Partially or Fully on Loan. (a) At April 30, 2003, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $457,278,753, amounted to $3,366,384 which consisted of aggregate gross unrealized appreciation of $39,891,978 and aggregate gross unrealized depreciation of $36,525,594. See Notes to Financial Statements. THE ALGER FUND -20- ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 COMMON STOCKS--95.4% SHARES VALUE ------ ----- BANKS--1.7% Mellon Financial Corporation ..................... 286,600 $ 7,580,570 ------------ BIOTECHNOLOGY--7.3% Amgen Inc.* ...................................... 304,000 18,638,240 Genzyme Corp.--General Division* ................. 189,600 7,637,088 Gilead Sciences, Inc.* ........................... 144,300 6,658,002 ------------ 32,933,330 ------------ COMMERCIAL SERVICES & SUPPLIES--1.1% Apollo Group, Inc. Cl. A* ........................ 86,750 4,701,763 ------------ COMMUNICATION EQUIPMENT--4.6% CIENA Corporation* ............................... 746,400 3,634,968 Cisco Systems, Inc.* ............................. 675,600 10,161,024 Juniper Networks, Inc.*+ ......................... 688,100 7,032,382 ------------ 20,828,374 ------------ COMPUTERS & PERIPHERALS--3.5% EMC Corporation * ................................ 1,024,800 9,315,432 Network Appliance, Inc.*+ ........................ 493,100 6,548,368 ------------ 15,863,800 ------------ DIVERSIFIED FINANCIALS--6.2% Citigroup Inc. ................................... 398,500 15,641,125 Merrill Lynch & Co., Inc. ........................ 224,900 9,232,145 SLM Corporation .................................. 29,755 3,332,560 ------------ 28,205,830 ------------ ENERGY EQUIPMENT & SERVICES--1.7% Halliburton Company .............................. 362,500 7,761,125 ------------ HEALTH CARE EQUIPMENT & SUPPLIES--4.7% Alcon, Inc.*+ .................................... 93,245 4,107,442 Boston Scientific Corporation* ................... 79,635 3,428,287 Guidant Corporation* ............................. 156,650 6,107,783 Zimmer Holdings, Inc.*+ .......................... 168,240 7,890,456 ------------ 21,533,968 ------------ HOTELS, RESTAURANTS & LEISURE--.8% Starbucks Corporation* ........................... 159,300 3,741,957 ------------ INDUSTRIAL CONGLOMERATES--4.2% General Electric Company ......................... 639,800 18,842,110 ------------ INSURANCE--2.5% AFLAC Incorporated ............................... 99,145 3,243,033 American International Group, Inc. ............... 142,500 8,257,875 ------------ 11,500,908 ------------ INTERNET & CATALOG RETAIL--3.7% Amazon.com, Inc.* ................................ 84,100 2,411,147 eBay Inc.*+ ...................................... 152,680 14,164,124 ------------ 16,575,271 ------------ THE ALGER FUND -21- ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- INTERNET SOFTWARE & SERVICES--1.8% Yahoo! Inc.*+ .................................... 327,900 $ 8,125,362 ------------ MACHINERY--.7% Danaher Corporation .............................. 48,500 3,345,530 ------------ MEDIA--5.5% AOL Time Warner Inc.* ............................ 547,800 7,493,904 Comcast Corporation Cl. A* ....................... 189,250 6,038,967 Liberty Media Corporation Series A* .............. 589,100 6,480,100 Viacom Inc. Cl. B* ............................... 115,935 5,032,738 ------------ 25,045,709 ------------ MULTILINE RETAIL--1.8% Wal-Mart Stores, Inc. ............................ 141,500 7,969,280 ------------ PERSONAL PRODUCTS--1.3% Gillette Company ................................. 189,800 5,779,410 ------------ PHARMACEUTICALS--13.0% Allergan, Inc. ................................... 134,650 9,459,163 Barr Laboratories, Inc.*+ ........................ 163,550 9,093,380 Johnson & Johnson ................................ 80,055 4,511,900 Merck & Co., Inc. ................................ 255,500 14,864,990 Pfizer Inc. ...................................... 299,910 9,222,233 Teva Pharmaceutical Industries Ltd. ADR+ ......... 135,300 6,318,510 Wyeth ............................................ 128,995 5,615,152 ------------ 59,085,328 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--8.2% Broadcom Corporation Cl. A*+ ..................... 252,400 4,515,436 Intersil Corporation Cl. A*+ ..................... 608,750 11,261,875 KLA-Tencor Corporation*+ ......................... 142,650 5,848,650 Maxim Integrated Products, Inc. .................. 165,095 6,486,583 Micron Technology, Inc.* ......................... 328,400 2,791,400 National Semiconductor Corporation* .............. 333,300 6,242,709 ------------ 37,146,653 ------------ SOFTWARE--9.8% Microsoft Corporation ............................ 813,000 20,788,410 Oracle Corporation* .............................. 1,527,100 18,141,948 VERITAS Software Corporation * ................... 250,900 5,522,309 ------------ 44,452,667 ------------ SPECIALTY RETAIL--8.8% Abercrombie & Fitch Co. Cl. A*+ .................. 453,500 14,911,080 Best Buy Co., Inc.*+ ............................. 245,700 8,496,306 Gap, Inc. ........................................ 854,550 14,211,166 Home Depot, Inc. ................................. 84,900 2,388,237 ------------ 40,006,789 ------------ THE ALGER FUND -22- ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- TEXTILES, APPAREL & LUXURY GOODS--1.2% NIKE, Inc. Cl. B ................................. 103,850 $ 5,559,091 ------------ WIRELESS TELECOMMUNICATION SERVICES--1.3% Vodafone Group PLC Sponsored ADR+ ................ 300,900 5,945,784 ------------ Total Common Stocks (Cost $394,516,945) .......... 432,530,609 ------------ PRINCIPAL SHORT-TERM INVESTMENTS--21.1% AMOUNT --------- U.S. GOVERNMENT & AGENCY OBLIGATIONS--5.9% Federal National Mortgage Association, 1.25%, 5/1/03 (Cost $27,100,000) ...................... $27,100,000 27,100,000 ------------ SHARES ------ OTHER SHORT-TERM INVESTMENTS--15.2% Security Lending Quality Trust (Cost $68,842,368)(b) .......................... 68,842,368 68,842,368 ------------ Total Short-Term Investments (Cost $95,942,368) ............................. 95,942,368 ------------ Total Investments (Cost $490,459,313)(a) ......................... 116.5% 528,472,977 Liabilities in Excess of Other Assets ............ (16.5) (75,033,327) ----- ------------ Net Assets ....................................... 100.0% $453,439,650 ===== ============ - ---------- * Non-income producing security. + Securities Partially or Fully on Loan. (a) At April 30, 2003, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $497,167,769, amounted to $31,305,208 which consisted of aggregate gross unrealized appreciation of $42,151,240 and aggregate gross unrealized depreciation of $10,846,032. (b) Represents investments of cash collateral received for securities on loan. See Notes to Financial Statements. THE ALGER FUND -23- ALGER HEALTH SCIENCES PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 COMMON STOCKS--81.8% SHARES VALUE ------ ----- BIOTECHNOLOGY--18.7% Alkermes, Inc.* ................................... 3,200 $ 31,936 Amgen Inc.* ....................................... 1,404 86,079 Biogen, Inc.* ..................................... 1,200 45,588 BioMarin Pharmaceutical Inc.* ..................... 2,600 28,548 Celgene Corporation* .............................. 1,000 26,610 Genzyme Corp.--General Division* .................. 1,400 56,392 Gilead Sciences, Inc.* ............................ 1,030 47,524 Human Gemone Sciences, Inc.* ...................... 1,000 11,690 IDEC Pharmaceuticals Corporation* ................. 1,700 55,675 Millennium Pharmaceuticals, Inc.* ................. 6,000 66,000 OSI Pharmaceuticals, Inc.* ........................ 1,500 31,500 Protein Design Labs, Inc.* ........................ 1,700 16,881 QLT Inc.* ......................................... 2,400 27,936 Telik, Inc.* ...................................... 2,200 28,930 ----------- 561,289 ----------- HEALTH CARE EQUIPMENT & SUPPLIES--6.7% Alcon, Inc.* ...................................... 915 40,306 Becton, Dickinson and Company ..................... 800 28,320 Centerpulse ADR ................................... 1,950 43,251 Illumina, Inc.* ................................... 8,000 15,920 Therasense, Inc.* ................................. 3,000 23,730 Wright Medical Group, Inc.* ....................... 1,150 21,827 Zimmer Holdings, Inc.* ............................ 600 28,140 ----------- 201,494 ----------- HEALTH CARE PROVIDERS & SERVICES--15.2% Aetna Inc. ........................................ 1,800 89,640 Anthem, Inc.* ..................................... 768 52,715 Caremark Rx, Inc.* ................................ 3,000 59,730 First Horizon Pharmaceutical Corporation* ......... 4,500 12,186 HCA Inc. .......................................... 2,279 73,156 Health Management Associates, Inc. Cl. A .......... 1,600 27,296 Mid Atlantic Medical Services, Inc.* .............. 1,300 56,615 UnitedHealth Group Incorporated ................... 700 64,491 WebMD Corporation* ................................ 2,200 21,208 ----------- 457,037 ----------- PHARMACEUTICALS--40.0% Abbott Laboratories ............................... 1,700 69,071 Allergan, Inc. .................................... 1,300 91,325 Alpharma Inc., Cl. A .............................. 2,400 44,760 Andrx Corp.* ...................................... 2,000 32,280 AstraZeneca PLC Sponsored ADR ..................... 750 29,903 Barr Laboratories, Inc.* .......................... 1,250 69,500 Bristol-Myers Squibb Company ...................... 2,300 58,742 Dr. Reddy's Laboratories Limited .................. 1,300 24,570 Forest Laboratories, Inc.* ........................ 800 41,376 Inspire Pharmaceuticals, Inc.* .................... 4,500 65,700 IVAX Corporation* ................................. 1,600 25,712 Johnson & Johnson ................................. 1,800 101,448 Mylan Laboratories Inc. ........................... 875 24,736 Novartis AG ADR ................................... 1,700 67,116 THE ALGER FUND -24- ALGER HEALTH SCIENCES PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- PHARMACEUTICALS--(CONT.) NPS Pharmaceuticals, Inc.* ........................ 1,500 $ 28,575 Pfizer Inc. ....................................... 2,210 67,957 Pharmaceutical Resources, Inc.* ................... 1,850 81,308 Schering-Plough Corporation ....................... 2,700 48,870 Sepracor Inc.* .................................... 1,600 30,640 SICOR Inc.* ....................................... 1,500 26,895 Taro Pharmaceutical Industries Ltd.* .............. 600 27,456 Teva Pharmaceutical Industries Ltd. ADR ........... 1,100 51,370 Wyeth ............................................. 2,071 90,150 ----------- 1,199,460 ----------- REAL ESTATE--1.2% Health Care Property Investors, Inc. 935 34,801 ----------- Total Common Stocks (Cost $2,241,619 ) 2,454,081 ----------- PRINCIPAL SHORT-TERM INVESTMENTS--13.3% AMOUNT --------- U.S. GOVERNMENT OBLIGATIONS U.S. Treasury Bills, 1.12%, 5/1/03 ................................... $100,000 100,000 1.13%, 5/1/03 ................................... 300,000 300,000 ----------- Total U.S. Government Obligations (Cost $400,000) ................................. 400,000 ----------- Total Investments (Cost $2,641,619)(a) ............................ 95.1% 2,854,081 Other Assets in Excess of Liabilities ............. 4.9 147,565 ----- ----------- Net Assets ........................................ 100.0% $ 3,001,646 ===== =========== - ---------- * Non-income producing security. (a) At April 30, 2003, the net unrealized appreciation on investments based on cost for federal income tax purposes of $2,651,122, amounted to $202,959 which consisted of aggregate gross appreciation of $255,042 and aggregate gross unrealized depreciation of $52,083. See Notes to Financial Statements. THE ALGER FUND -25- ALGER SMALLCAP AND MIDCAP PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 COMMON STOCKS--95.7% SHARES VALUE ------ ----- AEROSPACE & DEFENSE--2.4% Alliant Techsystems Inc.* ........................ 2,150 $ 115,498 L-3 Communications Holdings, Inc.* ............... 1,800 79,920 ------------ 195,418 ------------ AIR FREIGHT & LOGISTICS--1.2% J.B. Hunt Transport Services, Inc.* .............. 2,950 101,922 ------------ BANKS--3.2% BankAtlantic Bancorp, Inc. Cl. A ................. 3,600 41,472 City National Corporation ........................ 850 34,995 Compass Bancshares, Inc. ......................... 3,750 126,450 GreenPoint Financial Corp. ....................... 1,200 57,312 ------------ 260,229 ------------ BEVERAGES--1.1% Constellation Brands, Inc. Cl. A* ................ 3,350 89,814 ------------ BIOTECHNOLOGY--5.1% Affymetrix Inc.* ................................. 2,400 44,520 Alkermes, Inc.* .................................. 5,350 53,393 BioMarin Pharmaceutical Inc.* .................... 3,300 36,234 Charles River Laboratories International, Inc.* .. 3,000 81,450 Millennium Pharmaceuticals, Inc.* ................ 9,900 108,900 QLT Inc.* ........................................ 1,500 17,460 Trimeris, Inc.* .................................. 1,800 79,902 ------------ 421,859 ------------ COMMERCIAL SERVICES & SUPPLIES--7.9% Alliance Data Systems Corporation* ............... 2,300 48,300 Amdocs Limited* .................................. 4,750 83,885 BISYS Group, Inc. (The)* ......................... 6,850 115,628 Career Education Corporation* .................... 1,500 90,195 ChoicePoint Inc.* ................................ 2,266 79,944 Corinthian Colleges, Inc.* ....................... 1,650 75,554 FTI Consulting, Inc.* ............................ 1,800 81,450 Hewitt Associates, Inc.* ......................... 2,600 72,046 ------------ 647,002 ------------ COMMUNICATION EQUIPMENT--1.1% Emulex Corporation* .............................. 4,300 88,107 ------------ COMPUTERS & PERIPHERALS--1.4% Network Appliance, Inc.* ......................... 8,900 118,192 ------------ DIVERSIFIED FINANCIALS--1.8% Affiliated Managers Group, Inc.* ................. 2,275 105,355 First Niagara Financial Group Inc. ............... 3,300 40,095 ------------ 145,450 ------------ THE ALGER FUND -26- ALGER SMALLCAP AND MIDCAP PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- DIVERSIFIED TELECOMMUNICATION SERVICES--.8% Commonwealth Telephone Enterprises, Inc.* ........ 1,600 $ 63,600 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS--1.2% Jabil Circuit, Inc.* ............................. 5,400 100,980 ------------ ENERGY EQUIPMENT & SERVICES--2.0% Cooper Cameron Corporation* ...................... 3,450 165,117 ------------ FOOD PRODUCTS--1.5% American Italian Pasta Company Cl. A* ............ 2,750 121,275 ------------ HEALTH CARE EQUIPMENT & SUPPLIES--6.8% CTI Molecular Imaging, Inc.* ..................... 4,050 74,358 Edwards Lifesciences Corporation* ................ 3,200 92,384 Respironics, Inc.* ............................... 2,850 109,497 STERIS Corporation* .............................. 3,950 89,665 Therasense, Inc.* ................................ 12,100 95,711 Wright Medical Group, Inc.* ...................... 5,100 96,798 ------------ 558,413 ------------ HEALTH CARE PROVIDERS & SERVICES--5.2% LifePoint Hospitals, Inc.* ....................... 2,500 48,800 Mid Atlantic Medical Services, Inc.* ............. 3,200 139,360 Triad Hospitals, Inc.* ........................... 2,300 50,623 VCA Antech, Inc.* ................................ 4,900 82,266 WebMD Corporation* ............................... 10,700 103,148 ------------ 424,197 ------------ HOTELS, RESTAURANTS & LEISURE--4.0% Alliance Gaming Corporation* ..................... 7,600 121,372 Brinker International, Inc.* ..................... 4,300 136,525 California Pizza Kitchen, Inc.* .................. 3,600 72,576 ------------ 330,473 ------------ HOUSEHOLD DURABLES--1.6% D.R. Horton, Inc. ................................ 5,650 133,905 ------------ INFORMATION TECHNOLOGY CONSULTING & SERVICES--2.1% CACI International Inc. Cl. A* ................... 2,550 89,072 Manhattan Associates, Inc.* ...................... 3,600 87,084 ------------ 176,156 ------------ INSURANCE--3.3% Arch Capital Group Ltd.* ......................... 2,300 80,063 Willis Group Holdings Limited .................... 2,700 84,213 W.R. Berkley Corporation ......................... 2,225 103,329 ------------ 267,605 ------------ THE ALGER FUND -27- ALGER SMALLCAP AND MIDCAP PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- INTERNET SOFTWARE & SERVICES--.9% Hotels.com Cl. A* ................................ 1,050 $ 75,180 ------------ MACHINERY--2.6% Actuant Corporation Cl. A* ....................... 2,600 96,460 AGCO Corporation* ................................ 2,550 46,436 Pentair, Inc. .................................... 1,900 73,226 ------------ 216,122 ------------ MEDIA--2.0% Entercom Communications Corp.* ................... 1,700 82,603 McClatchy Company Cl. A .......................... 1,400 82,040 ------------ 164,643 ------------ MULTILINE RETAIL--.5% Nordstrom, Inc. .................................. 2,300 39,859 ------------ OIL & GAS--3.8% EOG Resources, Inc. .............................. 4,450 166,341 Noble Energy, Inc. ............................... 4,500 149,400 ------------ 315,741 ------------ PHARMACEUTICALS--5.4% Barr Laboratories, Inc.* ......................... 2,725 151,510 IVAX Corporation* ................................ 9,000 144,630 Pharmaceutical Resources, Inc.* .................. 2,000 87,900 SICOR Inc.* ...................................... 3,100 55,583 ------------ 439,623 ------------ REAL ESTATE--3.1% Health Care Property Investors, Inc. ............. 3,300 122,826 iStar Financial Inc. ............................. 4,450 133,189 ------------ 256,015 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--9.0% Cymer, Inc.* ..................................... 3,050 87,077 Fairchild Semiconductor International, Inc. Cl. A* 6,500 77,155 International Rectifier Corporation* ............. 4,500 101,790 Intersil Corporation Cl. A* ...................... 4,900 90,650 Marvell Technology Group Ltd.* ................... 4,950 114,241 Microchip Technology Incorporated ................ 3,400 70,686 Power Integrations, Inc.* ........................ 2,450 54,223 Semtech Corporation* ............................. 4,350 69,165 Varian Semiconductor Equipment Associates, Inc.* . 3,350 77,217 ------------ 742,204 ------------ SOFTWARE--5.4% Borland Software Corporation* .................... 8,300 75,281 Business Objects S.A. Sponsored ADR* ............. 4,000 86,920 Fair Isaac Corporation ........................... 2,675 139,314 Mercury Interactive Corporation* ................. 1,800 61,092 Synopsys, Inc.* .................................. 1,600 77,824 ------------ 440,431 ------------ THE ALGER FUND -28- ALGER SMALLCAP AND MIDCAP PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2003 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- SPECIALTY RETAIL--6.9% Abercrombie & Fitch Co. Cl. A* ..................... 3,950 $ 129,876 Advance Auto Parts, Inc.* .......................... 1,600 79,584 AnnTaylor Stores Corporation* ...................... 3,500 82,810 Chico's FAS, Inc.* ................................. 3,150 76,671 PETsMART, Inc.* .................................... 7,050 106,666 Urban Outfitters, Inc.* ............................ 3,200 95,424 ----------- 571,031 ----------- TEXTILES, APPAREL & LUXURY GOODS--1.4% Coach, Inc.* ....................................... 2,700 117,477 ----------- TRADING COMPANIES & DISTRIBUTORS--1.0% Fastenal Company ................................... 2,450 84,746 ----------- Total Common Stocks (Cost $7,617,943) ................................ 7,872,786 ----------- PRINCIPAL SHORT-TERM INVESTMENTS--2.4% AMOUNT --------- U.S. GOVERNMENT OBLIGATIONS U.S. Treasury Bills, 1.13%, 5/1/03 .................................... $100,000 100,000 1.13%, 5/22/03 ................................... 100,000 99,934 ----------- Total U.S. Government Obligations (Cost $199,934) 199,934 ----------- Total Investments (Cost $7,817,877)(a) ............................. 98.1% 8,072,720 Other Assets in Excess of Liabilities .............. 1.9 156,995 ----- ----------- Net Assets ......................................... 100.0% $ 8,229,715 ===== =========== - ---------- * Non-income producing security. (a) At April 30, 2003, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $7,819,853 amounted to $252,867 which consisted of aggregate gross unrealized appreciation of $704,115 and aggregate gross unrealized depreciation of $451,248. See Notes to Financial Statements. THE ALGER FUND -29- ALGER MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2003 PRINCIPAL AMOUNT VALUE --------- ----- U.S. GOVERNMENT & AGENCY OBLIGATIONS--92.4% Federal Farm Credit Banks, 1.20%, 5/19/03 .................................. $10,000,000 $ 9,994,000 Federal Home Loan Banks, 1.22%, 5/2/03 ................................... 10,000,000 9,999,661 1.22%, 5/9/03 ................................... 10,000,000 9,997,289 1.23%, 5/23/03 .................................. 10,000,000 9,992,483 1.23%, 5/30/03 .................................. 10,000,000 9,990,092 1.175%, 7/25/03 ................................. 10,000,000 9,972,257 Federal Home Loan Mortgage Corp., 1.22%, 6/13/03 .................................. 10,000,000 9,985,428 1.22%, 6/27/03 .................................. 10,000,000 9,980,683 Federal National Mortgage Assoc., 1.25%, 5/1/03 ................................... 94,100,000 94,100,000 1.18%, 7/9/03 ................................... 10,000,000 9,977,383 1.18%, 7/23/03 .................................. 10,000,000 9,972,795 1.19%, 8/18/03 .................................. 10,000,000 9,963,969 U.S. Treasury Bills 1.085%, 6/5/03 .................................. 10,000,000 9,989,451 1.085%, 6/12/03 ................................. 10,000,000 9,987,342 1.08%, 6/26/03 .................................. 10,000,000 9,983,200 1.07%, 10/2/03 .................................. 10,000,000 9,954,228 ------------ Total Investments (Cost $243,840,261)(a) .......................... 92.4% 243,840,261 Other Assets in Excess of Liabilities ............. 7.6 20,033,302 ----- ------------ Net Assets ........................................ 100.0% $263,873,563 ===== ============ - ---------- (a) At April 30, 2003, the cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes. See Notes to Financial Statements. ALGER FUND -30- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from Investment Operations --------------------------------------------------- Net Realized and Net Asset Net Unrealized Total Value, Investment Gain from Beginning Income (Loss) on Investment of Period (Loss) (ii) Investments Operations ---------- ----------- ----------- ---------- ALGER LARGECAP GROWTH PORTFOLIO (I) CLASS A Six Months Ended 04/30/03 (iv) .. $ 7.16 $(0.02) $0.33 $0.31 Year ended 10/31/02 ............. 9.47 (0.04) (2.27) (2.31) Year ended 10/31/01 ............. 14.09 (0.04) (3.64) (3.68) Year ended 10/31/00 ............. 15.47 (0.05) 1.33 1.28 Year ended 10/31/99 ............. 12.19 (0.07) 4.64 4.57 Year ended 10/31/98 ............. 11.58 (0.03) 2.13 2.10 CLASS B Six Months Ended 04/30/03 (iv) .. $ 6.76 $(0.04) $0.32 $0.28 Year ended 10/31/02 ............. 9.02 (0.10) (2.16) (2.26) Year ended 10/31/01 ............. 13.58 (0.12) (3.50) (3.62) Year ended 10/31/00 ............. 15.09 (0.16) 1.31 1.15 Year ended 10/31/99 ............. 12.00 (0.18) 4.56 4.38 Year ended 10/31/98 ............. 11.50 (0.11) 2.10 1.99 CLASS C Six Months Ended 04/30/03 (iv) .. $ 6.76 $(0.04) $0.32 $0.28 Year ended 10/31/02 ............. 9.02 (0.10) (2.16) (2.26) Year ended 10/31/01 ............. 13.57 (0.12) (3.49) (3.61) Year ended 10/31/00 ............. 15.08 (0.16) 1.31 1.15 Year ended 10/31/99 ............. 12.00 (0.18) 4.55 4.37 Year ended 10/31/98 ............. 11.50 (0.11) 2.10 1.99 ALGER SMALL CAPITALIZATION PORTFOLIO CLASS A Six Months Ended 04/30/03 (iv) .. $ 2.85 $(0.02) $0.17 $0.15 Year ended 10/31/02 ............. 3.54 (0.05) (0.64) (0.69) Year ended 10/31/01 ............. 8.81 (0.04) (3.41) (3.45) Year ended 10/31/00 ............. 10.35 (0.08) 0.35 0.27 Year ended 10/31/99 ............. 8.74 (0.08) 2.71 2.63 Year ended 10/31/98 ............. 10.35 (0.06) (1.04) (1.10)
- ---------- (i) Prior to September 29, 2000 the Alger LargeCap Growth Portfolio was the Alger Growth Portfolio (ii) Amount was computed based on average shares outstanding during the period. (iii) Does not reflect the effect of any sales charges. (iv) Unaudited. Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -31-
Ratios/Supplemental Data --------------------------------------------- Ratio of Net Ratio of Net Net Assets, Expenses Investment Distributions Asset End of to Income from Value, Period Average (Loss) to Portfolio Net Realized End of Total (000's Net Average Turnover Gains Period Return (iii) omitted) Assets Net Assets Rate - ------------- ------ ------------ -------- -------- ---------- --------- $ -- $ 7.47 4.3% $152,985 1.51% (0.61)% 123.50% -- 7.16 (24.4) 130,464 1.36 (0.47) 213.97 (0.94) 9.47 (27.4) 230,637 1.26 (0.35) 91.40 (2.66) 14.09 8.0 324,130 1.20 (0.32) 96.13 (1.29) 15.47 40.4 228,896 1.21 (0.50) 205.94 (1.49) 12.19 21.4 121,930 1.25 (0.23) 146.64 $ -- $ 7.04 4.1% $313,140 2.26% (1.36)% 123.50% -- 6.76 (25.1) 323,809 2.11 (1.21) 213.97 (0.94) 9.02 (28.1) 581,770 2.01 (1.09) 91.40 (2.66) 13.58 7.2 902,091 1.96 (1.07) 96.13 (1.29) 15.09 39.3 770,311 1.96 (1.26) 205.94 (1.49) 12.00 20.5 390,885 2.00 (0.98) 146.64 $ -- $ 7.04 4.1% $ 33,607 2.26% (1.35)% 123.50% -- 6.76 (25.1) 34,813 2.11 (1.22) 213.97 (0.94) 9.02 (28.0) 48,918 2.01 (1.10) 91.40 (2.66) 13.57 7.2 65,893 1.95 (1.08) 96.13 (1.29) 15.08 39.2 31,500 1.97 (1.30) 205.94 (1.49) 12.00 20.5 3,312 2.00 (0.97) 146.64 $ -- $ 3.00 5.3% $ 83,119 1.92% (1.63)% 40.74% -- 2.85 (19.5) 46,143 1.75 (1.52) 132.35 (1.82) 3.54 (46.6) 64,164 1.54 (0.95) 195.72 (1.81) 8.81 0.4 111,665 1.41 (0.81) 207.19 (1.02) 10.35 32.7 69,986 1.38 (0.79) 110.92 (0.51) 8.74 (10.9) 59,516 1.37 (0.71) 157.26
ALGER FUND -32- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from Investment Operations ----------------------- Net Realized and Net Asset Net Unrealized Total Dividends Distributions Value, Investment Gain from from Net from Beginning Income (Loss) on Investment Investment Net Realized of Period (Loss) (i) Investments Operations Income Gains --------- ---------- ----------- ---------- ---------- ------------- ALGER SMALL CAPITALIZATION PORTFOLIO (CONTINUED) CLASS B Six Months Ended 04/30/03 (iii) $ 2.68 $(0.03) $0.17 $0.14 -- $ -- Year ended 10/31/02 ........... 3.36 (0.07) (0.61) (0.68) -- -- Year ended 10/31/01 ........... 8.52 (0.08) (3.26) (3.34) -- (1.82) Year ended 10/31/00 ........... 10.13 (0.16) 0.36 0.20 -- (1.81) Year ended 10/31/99 ........... 8.61 (0.15) 2.69 2.54 -- (1.02) Year ended 10/31/98 ........... 10.29 (0.14) (1.03) (1.17) -- (0.51) CLASS C Six Months Ended 04/30/03 (iii) $ 2.68 $(0.03) $0.17 $0.14 -- $ -- Year ended 10/31/02 ........... 3.36 (0.07) (0.61) (0.68) -- -- Year ended 10/31/01 ........... 8.53 (0.08) (3.27) (3.35) -- (1.82) Year ended 10/31/00 ........... 10.13 (0.16) 0.37 0.21 -- (1.81) Year ended 10/31/99 ........... 8.59 (0.16) 2.72 2.56 -- (1.02) Year ended 10/31/98 ........... 10.29 (0.10) (1.09) (1.19) -- (0.51) ALGER BALANCED PORTFOLIO CLASS A Six Months Ended 04/30/03 (iii) $16.02 $0.07 $0.57 $0.64 (0.29) $ -- Year ended 10/31/02 ........... 18.67 0.27 (2.48) (2.21) (0.44) -- Year ended 10/31/01 ........... 21.29 0.43 (2.83) (2.40) (0.22) -- Year ended 10/31/00 ........... 20.95 0.39 1.68 2.07 (0.13) (1.60) Year ended 10/31/99 ........... 16.83 0.25 4.97 5.22 (0.08) (1.02) Year ended 10/31/98 ........... 16.58 0.16 2.35 2.51 (0.06) (2.20) CLASS B Six Months Ended 04/30/03 (iii) $15.62 $0.01 $0.56 $0.57 (0.16) $ -- Year ended 10/31/02 ........... 18.17 0.14 (2.44) (2.30) (0.25) -- Year ended 10/31/01 ........... 20.83 0.27 (2.75) (2.48) (0.18) -- Year ended 10/31/00 ........... 20.59 0.17 1.71 1.88 (0.04) (1.60) Year ended 10/31/99 ........... 16.64 0.07 4.93 5.00 (0.03) (1.02) Year ended 10/31/98 ........... 16.48 0.03 2.34 2.37 (0.01) (2.20)
- ---------- (i) Amount was computed based on average shares outstanding during the period. (ii) Does not reflect the effect of any sales charges. (iii) Unaudited. Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -33-
Ratios/Supplemental Data ------------------------------------------------ Ratio of Net Ratio of Net Net Assets, Expenses Investment Asset End of to Income Value, Period Average (Loss) to Portfolio Total End of Total (000's Net Average Turnover Distributions Period Return (ii) omitted) Assets Net Assets Rate ------------- ------ --------- -------- -------- ---------- --------- $ -- $ 2.82 5.2% $ 78,417 2.69% (2.39)% 40.74% -- 2.68 (20.2) 81,758 2.49 (2.27) 132.35 (1.82) 3.36 (47.0) 130,559 2.28 (1.66) 195.72 (1.81) 8.52 (0.4) 325,382 2.14 (1.58) 207.19 (1.02) 10.13 32.1 419,842 2.14 (1.58) 110.92 (0.51) 8.61 (11.6) 460,788 2.12 (1.51) 157.26 $ -- $ 2.82 5.2% $ 3,308 2.69% (2.39)% 40.74% -- 2.68 (20.2) 3,209 2.49 (2.27) 132.35 (1.82) 3.36 (47.0) 4,234 2.28 (1.66) 195.72 (1.81) 8.53 (0.3) 11,103 2.15 (1.57) 207.19 (1.02) 10.13 32.4 7,659 2.13 (1.55) 110.92 (0.51) 8.59 (11.8) 4,838 2.11 (1.36) 157.26 $(0.29) $16.37 4.1% $ 76,301 1.36% 0.92% 93.18% (0.44) 16.02 (12.2) 78,167 1.28 1.53 203.96 (0.22) 18.67 (11.3) 101,440 1.20 2.15 74.15 (1.73) 21.29 10.2 93,671 1.29 1.80 63.50 (1.10) 20.95 32.5 12,488 1.40 1.15 126.01 (2.26) 16.83 17.7 1,354 1.79 0.98 93.23 $(0.16) $16.03 3.7% $136,719 2.11% 0.17% 93.18% (0.25) 15.62 (12.9) 137,070 2.03 0.78 203.96 (0.18) 18.17 (12.0) 158,766 1.95 1.40 74.15 (1.64) 20.83 9.4 132,123 2.04 0.98 63.50 (1.05) 20.59 31.5 52,607 2.18 0.36 126.01 (2.21) 16.64 16.9 19,282 2.58 0.19 93.23
ALGER FUND -34- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from Investment Operations ----------------------- Net Realized and Net Asset Net Unrealized Total Dividends Distributions Value, Investment Gain from from Net from Beginning Income (Loss) on Investment Investment Net Realized of Period (Loss) (i) Investments Operations Income Gains --------- ---------- ----------- ---------- ---------- ------------- ALGER BALANCED PORTFOLIO (CONTINUED) CLASS C Six Months Ended 04/30/03 (iv) ........ $15.68 $0.01 $0.56 $0.57 $(0.15) $ -- Year ended 10/31/02 ................... 18.24 0.14 (2.45) (2.31) (0.25) -- Year ended 10/31/01 ................... 20.90 0.27 (2.75) (2.48) (0.18) -- Year ended 10/31/00 ................... 20.65 0.21 1.67 1.88 (0.03) (1.60) Year ended 10/31/99 ................... 16.66 0.07 4.95 5.02 (0.01) (1.02) Year ended 10/31/98 ................... 16.49 0.04 2.33 2.37 -- (2.20) ALGER MIDCAP GROWTH PORTFOLIO (III) CLASS A Six Months Ended 04/30/03 (iv) ........ $ 5.48 $(0.03) $0.37 $0.34 -- $ -- Year ended 10/31/02 ................... 6.92 (0.07) (1.37) (1.44) -- -- Year ended 10/31/01 ................... 10.17 (0.06) (2.01) (2.07) -- (1.18) Year ended 10/31/00 ................... 8.20 (0.04) 3.51 3.47 -- (1.50) Year ended 10/31/99 ................... 7.07 (0.05) 2.16 2.11 -- (0.98) Year ended 10/31/98 ................... 7.49 (0.03) 0.43 0.40 -- (0.82) CLASS B Six Months Ended 04/30/03 (iv) ........ $5.17 $(0.05) $0.35 $0.30 -- $ -- Year ended 10/31/02 ................... 6.58 (0.11) (1.30) (1.41) -- -- Year ended 10/31/01 ................... 9.79 (0.11) (1.92) (2.03) -- (1.18) Year ended 10/31/00 ................... 8.00 (0.12) 3.41 3.29 -- (1.50) Year ended 10/31/99 ................... 6.96 (0.11) 2.13 2.02 -- (0.98) Year ended 10/31/98 ................... 7.44 (0.10) 0.44 0.34 -- (0.82) CLASS C Six Months Ended 04/30/03 (iv) ........ $5.16 $(0.05) $0.35 $0.30 -- $ -- Year ended 10/31/02 ................... 6.56 (0.11) (1.29) (1.40) -- -- Year ended 10/31/01 ................... 9.77 (0.11) (1.92) (2.03) -- (1.18) Year ended 10/31/00 ................... 7.99 (0.11) 3.39 3.28 -- (1.50) Year ended 10/31/99 ................... 6.95 (0.11) 2.13 2.02 -- (0.98) Year ended 10/31/98 ................... 7.44 (0.09) 0.42 0.33 -- (0.82)
- -------------- (i) Amount was computed based on average shares outstanding during the period. (ii) Does not reflect the effect of any sales charges. (iii) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred April 20, 2000. (iv) Unaudited. Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -35-
Ratios/Supplemental Data ------------------------------------------------ Ratio of Net Ratio of Net Net Assets, Expenses Investment Asset End of to Income Value, Period Average (Loss) to Portfolio Total End of Total (000's Net Average Turnover Distributions Period Return (ii) omitted) Assets Net Assets Rate ------------- ------ --------- -------- -------- ---------- --------- $(0.15) $16.10 3.6% $41,111 2.11% 0.17% 93.18% (0.25) 15.68 (12.9) 45,516 2.03 0.78 203.96 (0.18) 18.24 (12.0) 57,193 1.95 1.40 74.15 (1.63) 20.90 9.3 49,592 2.04 0.99 63.50 (1.03) 20.65 31.6 14,626 2.16 0.38 126.01 (2.20) 16.66 16.8 334 2.53 0.23 93.23 $ -- $ 5.82 6.0% $164,443 1.54% (1.23)% 134.55% -- 5.48 (20.8) 133,113 1.41 (1.05) 324.69 (1.18) 6.92 (21.9) 154,412 1.31 (0.77) 115.45 (1.50) 10.17 47.7 141,558 1.29 (0.46) 97.11 (0.98) 8.20 33.3 49,246 1.31 (0.58) 203.86 (0.82) 7.07 7.2 32,447 1.34 (0.53) 180.98 $ -- $ 5.47 5.8% $249,561 2.29% (1.98)% 134.55% -- 5.17 (21.4) 247,201 2.15 (1.80) 324.69 (1.18) 6.58 (22.4) 426,699 2.06 (1.49) 115.45 (1.50) 9.79 46.4 532,476 2.04 (1.23) 97.11 (0.98) 8.00 32.3 248,139 2.07 (1.39) 203.86 (0.82) 6.96 6.2 191,934 2.10 (1.38) 180.98 $ -- $ 5.46 5.8% $ 45,379 2.29% (1.98)% 134.55% -- 5.16 (21.3) 46,238 2.16 (1.80) 324.69 (1.18) 6.56 (22.4) 53,592 2.06 (1.51) 115.45 (1.50) 9.77 46.4 51,335 2.04 (1.22) 97.11 (0.98) 7.99 32.4 10,827 2.08 (1.40) 203.86 (0.82) 6.95 6.1 1,759 2.08 (1.26) 180.98
ALGER FUND -36- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from Investment Operations ----------------------------- Net Realized and Net Asset Net Unrealized Total Value, Investment Gain from Beginning Income (Loss) on Investment of Period (Loss) (i) Investments Operations --------- ----------- ------------- ----------- ALGER CAPITAL APPRECIATION PORTFOLIO (III) CLASS A Six Months Ended 04/30/03 (iv)(v) $ 6.23 $(0.04) $0.35 $0.31 Year ended 10/31/02 ............... 8.21 (0.08) (1.90) (1.98) Year ended 10/31/01 ............... 13.54 (0.05) (4.80) (4.85) Year ended 10/31/00 ............... 13.57 (0.11) 2.01 1.90 Year ended 10/31/99 ............... 9.03 (0.12) 5.50 5.38 Year ended 10/31/98 ............... 8.72 (0.05) 0.90 0.85 CLASS B Six Months Ended 04/30/03 (iv)(v) $ 5.93 $(0.06) $0.33 $0.27 Year ended 10/31/02 ............... 7.88 (0.14) (1.81) (1.95) Year ended 10/31/01 ............... 13.09 (0.12) (4.61) (4.73) Year ended 10/31/00 ............... 13.28 (0.22) 1.96 1.74 Year ended 10/31/99 ............... 8.90 (0.21) 5.43 5.22 Year ended 10/31/98 ............... 8.67 (0.13) 0.90 0.77 CLASS C Six Months Ended 04/30/03 (iv)(v) $ 5.93 $(0.06) $0.33 $0.27 Year ended 10/31/02 ............... 7.87 (0.14) (1.80) (1.94) Year ended 10/31/01 ............... 13.09 (0.12) (4.62) (4.74) Year ended 10/31/00 ............... 13.27 (0.22) 1.97 1.75 Year ended 10/31/99 ............... 8.90 (0.22) 5.43 5.21 Year ended 10/31/98 ............... 8.67 (0.12) 0.89 0.77 ALGER HEALTH SCIENCES PORTFOLIO CLASS A Six Months Ended 04/30/03 (iv)(v) . $9.29 $(0.12) $0.80 $0.68 From 5/1/02 (commencement of operations) to 10/31/2002 (v) ... 10.00 (0.06) (0.65) (0.71)
- ------------ (i) Amount was computed based on average shares outstanding during the period. (ii) Does not reflect the effect of any sales charges. (iii) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred January 8, 1999. (iv) Unaudited. (v) Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -37-
Ratios/Supplemental Data ---------------------------------------------- Ratio of Net Ratio of Net Net Assets, Expenses Investment Distributions Asset End of to Income from Value, Period Average (Loss) to Portfolio Net Realized End of Total (000's Net Average Turnover Gains Period Return (ii) omitted) Assets Net Assets Rate ------------ --------- ------------ --------- -------- ---------- --------- $ -- $ 6.54 5.0% $ 115,274 1.75% (1.22)% 101.12% -- 6.23 (24.1) 97,962 1.53 (1.06) 174.83 (0.48) 8.21 (36.8) 179,365 1.40 (0.46) 102.58 (1.93) 13.54 12.6 366,296 1.36 (0.66) 132.37 (0.84) 13.57 63.9 147,929 1.44 (0.98) 186.93 (0.54) 9.03 10.7 54,415 1.49 (0.67) 184.07 $ -- $ 6.20 4.6% $ 290,833 2.50% (1.95)% 101.12% -- 5.93 (24.8) 342,592 2.28 (1.82) 174.83 (0.48) 7.88 (37.2) 572,068 2.15 (1.20) 102.58 (1.93) 13.09 11.6 1,056,831 2.11 (1.41) 132.37 (0.84) 13.28 63.0 594,971 2.21 (1.77) 186.93 (0.54) 8.90 9.9 242,941 2.26 (1.48) 184.07 $ -- $ 6.20 4.6% $ 47,333 2.50% (1.94)% 101.12% -- 5.93 (24.7) 53,936 2.28 (1.82) 174.83 (0.48) 7.87 (37.2) 96,451 2.15 (1.20) 102.58 (1.93) 13.09 11.7 180,663 2.12 (1.42) 132.37 (0.84) 13.27 62.9 43,789 2.21 (1.80) 186.93 (0.54) 8.90 9.9 2,967 2.25 (1.46) 184.07 -- $ 9.97 7.3% $ 1,472 3.35% (2.55)% 111.54% -- 9.29 (7.1) 712 2.15 (1.43) 135.82
ALGER FUND -38- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from Investment Operations ----------------------------- Net Realized and Net Asset Net Unrealized Total Value, Investment Gain from Beginning Income (Loss) on Investment of Period (Loss) (i) Investments Operations --------- ----------- ----------- ----------- ALGER HEALTH SCIENCES PORTFOLIO (CONTINUED) CLASS B Six Months Ended 04/30/03 (iii)(iv) ......... $ 9.26 $(0.14) $0.78 $0.64 From 5/1/02 (commencement of operations) to 10/31/2002 (iv) ............ 10.00 (0.10) (0.64) (0.74) CLASS C Six Months Ended 04/30/03 (iii)(iv) ......... $ 9.26 $(0.15) $0.79 $0.64 From 5/1/02 (commencement of operations) to 10/31/2002 (iv) ............ 10.00 (0.10) (0.64) (0.74) ALGER SMALLCAP AND MIDCAP PORTFOLIO CLASS A Six Months Ended 04/30/03 (iii)(iv) ......... $ 7.65 $(0.03) $0.17 $0.14 From 5/8/02 (commencement of operations) to 10/31/2002 (iv) ............ 10.00 (0.01) (2.34) (2.35) CLASS B Six Months Ended 04/30/03 (iii)(iv) ......... $ 7.63 $(0.06) $0.17 $0.11 From 5/8/02 (commencement of operations) to 10/31/2002 (iv) ............ 10.00 (0.09) (2.28) (2.37) CLASS C Six Months Ended 04/30/03 (iii)(iv) ......... $ 7.63 $(0.06) $0.17 $0.11 From 5/8/02 (commencement of operations) to 10/31/2002 (iv) ............ 10.00 (0.09) (2.28) (2.37) ALGER MONEY MARKET PORTFOLIO Six Months Ended 04/30/03 (iii)(iv) ......... $1.0000 $0.0021 -- -- Year ended 10/31/02 ......................... 1.0000 0.0097 -- -- Year ended 10/31/01 ......................... 1.0000 0.0387 -- -- Year ended 10/31/00 ......................... 1.0000 0.0527 -- -- Year ended 10/31/99 ......................... 1.0000 0.0423 -- -- Year ended 10/31/98 ......................... 1.0000 0.0476 -- --
- ---------------- (i) Amount was computed based on average shares outstanding during the period. (ii) Does not reflect the effect of any sales charges. (iii) Unaudited. (iv) Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -39-
Ratios/Supplemental Data --------------------------------------------------- Ratio of Net Ratio of Net Net Assets, Expenses Investment Dividends Asset End of to Income from Net Value, Period Average (Loss) to Portfolio Investment End of Total (000's Net Average Turnover Income Period Return (ii) omitted) Assets Net Assets Rate ----------- -------- ------------ -------- -------- ---------- ----------- -- $9.90 6.9% $1,098 4.10% (3.31)% 111.54% -- 9.26 (7.4) 325 2.91 (2.18) 135.82 -- $9.90 6.9% $ 432 4.11% (3.31)% 111.54% -- 9.26 (7.4) 309 2.90 (2.17) 135.82 -- $7.79 1.8% $7,351 1.48% (0.93)% 28.84% -- 7.65 (23.5) 7,775 1.89 (1.57) 34.09 -- $7.74 1.4% $ 506 2.24% (1.71)% 28.84% -- 7.63 (23.7) 269 2.64 (2.32) 34.09 -- $7.74 1.4% $ 373 2.24% (1.69)% 28.84% -- $7.63 (23.7) 254 2.64 (2.32) 34.09 $(0.0021) $1.0000 0.2% $263,874 0.84% 0.42% -- (0.0097) 1.0000 1.0 330,213 0.79 0.99 -- (0.0387) 1.0000 3.9 402,515 0.71 3.88 -- (0.0527) 1.0000 5.4 233,526 0.78 5.14 -- (0.0423) 1.0000 4.3 241,310 0.72 4.37 -- (0.0476) 1.0000 4.9 172,862 0.76 4.84 --
THE ALGER FUND -40- STATEMENTS OF ASSETS AND LIABILITIES (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) April 30, 2003
Small LargeCap Capital- Growth ization Portfolio Portfolio --------- --------- ASSETS: Investments in securities, at value (identified cost*)-- see accompanying schedules of investments ................. $ 548,139 $ 164,379 Cash ....................................................... 73 55 Receivable for investment securities sold .................. -- 2,221 Receivable for shares of beneficial interest sold .......... 359 93 Dividends and interest receivable .......................... 236 25 Prepaid expenses ........................................... 118 54 --------- --------- Total Assets ............................................. 548,925 166,827 --------- --------- LIABILITIES: Payable for securities loaned .............................. 40,876 -- Payable for investment securities purchased ................ -- 1,451 Payable for shares of beneficial interest redeemed ......... 7,188 101 Accrued investment management fees ......................... 299 112 Accrued transfer agent fees ................................ 418 180 Accrued distribution fees .................................. 206 48 Accrued shareholder servicing fees ......................... 100 33 Accrued expenses ........................................... 106 58 --------- --------- Total Liabilities ........................................ 49,193 1,983 --------- --------- NET ASSETS ................................................. $ 499,732 $ 164,844 ========= ========= Net Assets Consist of: Paid-in capital .......................................... $ 883,366 $ 351,375 Undistributed net investment income (accumulated loss) ... (2,740) (1,445) Undistributed net realized gain (accumulated loss) ....... (421,191) (200,441) Net unrealized appreciation (depreciation) of investments 40,297 15,355 --------- --------- NET ASSETS ................................................. $ 499,732 $ 164,844 ========= ========= Class A Net Asset Value Per Share ................................ $ 7.47 $ 3.00 ========= ========= Offering Price Per Share ................................. $ 7.88 $ 3.17 ========= ========= Class B Net Asset Value and Offering Price Per Share ............. $ 7.04 $ 2.82 ========= ========= Class C Net Asset Value Per Share ................................ $ 7.04 $ 2.82 ========= ========= Offering Price Per Share ................................. $ 7.11 $ 2.85 ========= ========= Shares of beneficial interest outstanding--Note 6 Class A .................................................. 20,476 27,669 ========= ========= Class B .................................................. 44,473 27,822 ========= ========= Class C .................................................. 4,776 1,173 ========= ========= *Identified cost .......................................... $ 507,842 $ 149,024 ========= =========
See Notes to Financial Statements. -41-
SmallCap MidCap Capital Health and Money Balanced Growth Appreciation Sciences MidCap Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio --------- --------- --------- --------- --------- --------- $ 268,733 $ 460,645 $ 528,473 $ 2,854 $ 8,073 $ 243,840 34 84 42 53 47 330 1,649 897 41,397 137 241 -- 275 3,501 504 20 -- 21,173 1,251 24 74 2 1 -- 49 96 120 22 20 53 --------- --------- ---------- ---------- --------- --------- 271,991 465,247 570,610 3,088 8,382 265,396 --------- --------- ---------- ---------- --------- --------- 15,078 -- 68,842 -- -- -- 830 -- 3,968 79 141 -- 1,431 4,866 43,154 -- -- 1,150 153 280 336 2 5 108 148 330 473 2 1 169 107 173 225 1 1 -- 51 87 99 1 2 -- 62 128 73 1 2 95 --------- --------- ---------- ---------- --------- --------- 17,860 5,864 117,170 86 152 1,522 --------- --------- ---------- ---------- --------- --------- $ 254,131 $ 459,383 $ 453,440 $ 3,002 $ 8,230 $ 263,874 ========= ========= ========== ========== ========= ========= $ 329,163 $625,270 $1,110,882 $ 2,929 $ 8,340 $264,091 231 (3,678) (4,171) (26) (39) -- (92,206) (199,852) (691,285) (113) (326) (217) 16,943 37,643 38,014 212 255 -- --------- --------- ---------- ---------- --------- --------- $ 254,131 $ 459,383 $ 453,440 $ 3,002 $ 8,230 $ 263,874 ========= ========= ========== ========== ========= ========= $ 16.37 $ 5.82 $ 6.54 $ 9.97 $ 7.79 -- ========= ========= ========== ========== ========= ========= $ 17.28 $ 6.14 $ 6.90 $ 10.52 $ 8.22 -- ========= ========= ========== ========== ========= ========= $ 16.03 $ 5.47 $ 6.20 $ 9.90 $ 7.74 $ 1.00 ========= ========= ========== ========== ========= ========= $ 16.10 $ 5.46 $ 6.20 $ 9.90 $ 7.74 -- ========= ========= ========== ========== ========= ========= $ 16.26 $ 5.52 $ 6.26 $ 10.00 $ 7.82 -- ========= ========= ========== ========== ========= ========= 4,662 28,248 17,617 148 943 -- ========= ========= ========== ========== ========= ========= 8,527 45,646 46,902 111 65 264,116 ========= ========= ========== ========== ========= ========= 2,553 8,315 7,636 44 48 -- ========= ========= ========== ========== ========= ========= $ 251,790 $ 423,002 $ 490,459 $ 2,642 $ 7,818 $ 243,840 ========= ========= ========== ========== ========= =========
THE ALGER FUND -42- STATEMENTS OF OPERATIONS (IN THOUSANDS) (UNAUDITED) FOR THE SIX MONTHS ENDED APRIL 30, 2003
Small LargeCap Capital- Growth ization Portfolio Portfolio -------- -------- Income: Dividends ............................................. $ 2,092 $ 145 Interest .............................................. 95 60 -------- ------- Total Income .......................................... 2,187 205 -------- ------- Expenses: Management fees--Note 3(a) ............................ 1,812 592 Distribution fees--Note 3(b): Class B ............................................. 1,150 293 Class C ............................................. 123 12 Shareholder servicing fees--Note 3(f) ................. 604 174 Interest on line of credit utilized--Note 5 ........... 41 -- Custodian fees ........................................ 34 13 Transfer agent fees and expenses--Note 3(e) ........... 1,000 489 Registration fees ..................................... 13 36 Miscellaneous ......................................... 150 41 -------- ------- Total Expenses ........................................ 4,927 1,650 -------- ------- NET INVESTMENT INCOME (LOSS) ........................... (2,740) (1,445) -------- ------- REALIZED AND UNREALIZED GAIN(LOSS) ON INVESTMENTS AND WRITTEN OPTIONS Net realized gain (loss) on investments and written .... (41,827) (7,250) Net change in unrealized appreciation (depreciation) options on investments and written options ........... 64,751 18,182 -------- ------- Net realized and unrealized gain on investments and written options .................................... 22,924 10,932 -------- ------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................................... $ 20,184 $ 9,487 ======== =======
See Notes to Financial Statements. -43-
SmallCap MidCap Capital Health and Money Balanced Growth Appreciation Sciences MidCap Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio --------- --------- --------- --------- --------- --------- $ 651 $ 506 $ 1,103 $ 7 $ 17 $ -- 2,199 164 178 -- 5 1,731 ------- -------- -------- -------- -------- -------- 2,850 670 1,281 7 22 1,731 ------- -------- -------- -------- -------- -------- 938 1,704 1,985 8 34 686 497 894 1,185 2 1 -- 160 165 179 1 1 -- 313 533 584 2 10 -- -- 13 8 -- -- -- 25 35 39 6 4 23 339 804 1,337 5 3 332 28 66 31 8 6 53 56 134 104 1 2 55 ------- -------- -------- -------- -------- -------- 2,356 4,348 5,452 33 61 1,149 ------- -------- -------- -------- -------- -------- 494 (3,678) (4,171) (26) (39) 582 ------- -------- -------- -------- -------- -------- (8,441) (10,623) (29,169) (17) (241) 56 16,904 38,116 53,474 217 398 -- ------- -------- -------- -------- -------- -------- 8,463 27,493 24,305 200 157 56 ------- -------- -------- -------- -------- -------- $ 8,957 $ 23,815 $ 20,134 $ 174 $ 118 $ 638 ======= ======== ======== ======== ======== ========
THE ALGER FUND -44- STATEMENTS OF CHANGES IN NET ASSETS (IN THOUSANDS)
LargeCap Growth Portfolio ---------------------------- For the Six Months For the Ended Year Ended April 30, 2003 October 31, (Unaudited) 2002 ----------- ------------ Net investment income (loss) ............................. $ (2,740) $ (7,301) Net realized gain (loss) on investments and written options ...................................... (41,827) (194,809) Net change in unrealized appreciation (depreciation) on investments and written options ..................... 64,751 19,221 --------- --------- Net increase (decrease) in net assets resulting from operations .............................. 20,184 (182,889) --------- --------- Dividends to shareholders from: Net investment income Class A ................................................ -- -- Class B ................................................ -- -- Class C ................................................ -- -- --------- --------- Total dividends to shareholders .......................... -- -- --------- --------- Increase (decrease) from shares of beneficial interest transactions: Class A ................................................ 14,692 (40,996) Class B ................................................ (21,823) (146,914) Class C ................................................ (2,407) (1,440) --------- --------- Net increase (decrease) from shares of beneficial interest transactions--Note 6 ................. (9,538) (189,350) --------- --------- Total increase (decrease) ............................... 10,646 (372,239) Net Assets: Beginning of period ..................................... 489,086 861,325 --------- --------- End of period ........................................... $ 499,732 $ 489,086 ========= ========= Undistributed net investment income (accumulated loss) ... $ (2,740) $ -- ========= =========
See Notes to Financial Statements. -45-
Small MidCap Capitalization Balanced Growth Portfolio Portfolio Portfolio ----------------------------- ---------------------------- --------------------------- For the For the For the Six Months For the Six Months For the Six Months For the Ended Year Ended Ended Year Ended Ended Year Ended April 30, 2003 October 31, April 30, 2003 October 31, April 30, 2003 October 31, (Unaudited) 2002 (Unaudited) 2002 (Unaudited) 2002 ----------- ----------- ----------- ----------- ----------- ----------- $ (1,445) $ (3,564) $ 494 $ 3,133 $ (3,678) $ (8,963) (7,250) (25,959) (8,441) (45,399) (10,623) (111,133) 18,182 (2,977) 16,904 617 38,116 6,689 --------- --------- --------- -------- --------- -------- 9,487 (32,500) 8,957 (41,649) 23,815 (113,407) --------- --------- --------- -------- --------- -------- -- -- (1,359) (2,370) -- -- -- -- (1,356) (2,209) -- -- -- -- (407) (811) -- -- --------- --------- --------- -------- --------- -------- -- -- (3,122) (5,390) -- -- --------- --------- --------- -------- --------- -------- 31,345 (7,328) (3,345) (8,498) 22,855 13,550 (7,045) (27,917) (3,723) 2,130 (10,665) (114,847) (53) (102) (5,389) (3,239) (3,174) 6,553 --------- --------- --------- -------- --------- -------- 24,247 (35,347) (12,457) (9,607) 9,016 (94,744) --------- --------- --------- -------- --------- -------- 33,734 (67,847) (6,622) (56,646) 32,831 (208,151) 131,110 198,957 260,753 317,399 426,552 634,703 --------- --------- --------- -------- --------- -------- $ 164,844 $ 131,110 $ 254,131 $260,753 $ 459,383 $426,552 ========= ========= ========= ======== ========= ======== $ (1,445) $ -- $ 231 $ 2,859 $ (3,678) $ -- ========= ========= ========= ======== ========= ========
THE ALGER FUND -46- STATEMENTS OF CHANGES IN NET ASSETS (IN THOUSANDS)
Capital Appreciation Portfolio -------------------------- For the Six Months For the Ended Year Ended April 30, 2003 October 31, (Unaudited) 2002 ----------- ----------- Net investment income (loss) ........................... $ (4,171) $ (12,119) Net realized gain (loss) on investments and written options .................................... (29,169) (209,158) Net change in unrealized appreciation (depreciation) on investments and written options ..................... 53,474 38,808 --------- --------- Net increase (decrease) in net assets resulting from operations ............................ 20,134 (182,469) --------- --------- Dividends to shareholders from: Net investment income Class A .............................................. -- -- Class B .............................................. -- -- Class C .............................................. -- -- --------- --------- Total dividends to shareholders ........................ -- -- --------- --------- Increase (decrease) from shares of beneficial interest transactions: Class A .............................................. 11,986 (41,859) Class B .............................................. (64,776) (105,997) Class C .............................................. (8,394) (23,069) --------- --------- Net increase (decrease) from shares of beneficial interest transactions--Note 6 ............... (61,184) (170,925) --------- --------- Total increase (decrease) ............................. (41,050) (353,394) Net Assets: Beginning of period ................................... 494,490 847,884 --------- --------- End of period ......................................... $ 453,440 $494,490 ========= ========= Undistributed net investment income (accumulated loss) . $ (4,171) $ -- ========= =========
* Commenced operations May 1, 2002. ** Commenced operations May 8, 2002. See Notes to Financial Statements. -47-
SmallCap Health and Money Sciences MidCap Market Portfolio Portfolio Portfolio ------------------------ --------------------------- -------------------------- For the For the For the For the For the Six Months Period Six Months Period Six Months For the Ended Ended Ended Ended Ended Year Ended April 30, 2003 October 31, April 30, 2003 October 31, April 30, 2003 October 31, (Unaudited) 2002* (Unaudited) 2002** (Unaudited) 2002 ----------- ----------- ----------- ----------- ----------- ---------- $ (26) $ (11) $ (39) $ (8) $ 582 $ 2,939 (17) (96) (241) (85) 56 -- 217 (5) 398 (143) -- -- ------ ------ ------ ------- -------- --------- 174 (112) 118 (236) 638 2,939 ------ ------ ------ ------- -------- --------- -- -- -- -- -- -- -- -- -- -- (582) (2,939) -- -- -- -- -- -- ------ ------ ------ ------- -------- --------- -- -- -- -- (582) (2,939) ------ ------ ------ ------- -------- --------- 673 773 (520) 7,853 -- -- 714 351 225 348 (66,395) (72,302) 95 334 109 333 -- -- ------ ------ ------ ------- -------- --------- 1,482 1,458 (186) 8,534 (66,395) (72,302) ------ ------ ------ ------- -------- --------- 1,656 1,346 (68) 8,298 (66,339) (72,302) 1,346 -- 8,298 -- 330,213 402,515 ------ ------ ------ ------- -------- --------- $3,002 $1,346 8,230 $ 8,298 $263,874 $330,213 ====== ====== ====== ======= ======== ========= $ (26) $ -- $ (39) $ -- $ -- $ -- ====== ====== ====== ======= ======== =========
THE ALGER FUND -48- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 -- GENERAL: The Alger Fund (the "Fund") 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 eight portfolios--LargeCap Growth Portfolio, Small Capitalization Portfolio, Balanced Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio, Health Sciences Portfolio, SmallCap and MidCap Portfolio and Money Market Portfolio (the "Portfolios"). The LargeCap Growth Portfolio, Small Capitalization Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio, Health Sciences Portfolio and SmallCap and MidCap 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 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 "NYSE") is open as of the close of the NYSE (normally 4:00 p.m. Eastern time). Listed and unlisted securities for which such information is regularly reported are valued at the last reported sales price or, in the absence of reported sales, at the mean between the bid and asked price or, in the absence of a recent bid or asked price, the equivalent as obtained from one or more of the major market makers for the securities to be valued. Securities for which market quotations are not readily available are valued at fair value, as determined in good faith pursuant to procedures established by the Board of Trustees. THE ALGER FUND -49- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 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. Premiums and discounts on debt securities purchased are amortized or accreted over the lives of the respective securities. (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-upon repurchase price to be repaid to the Portfolio. Additional collateral is obtained when necessary. (D) OPTION WRITING: When a Portfolio writes an option, an amount equal to the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Portfolio on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Portfolio has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Portfolio. The Portfolio as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. (E) 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 THE ALGER FUND -50- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 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, 2003, the value of securities loaned and collateral received thereon were as follows: VALUE OF SECURITIES VALUE OF LOANED COLLATERAL --------- --------- LargeCap Growth Portfolio .................... $39,448,235 $40,875,561 Small Capitalization Portfolio ............... 1,242,972 1,366,758 Balanced Portfolio ........................... 14,474,997 15,078,153 MidCap Growth Portfolio ...................... 21,377,950 22,730,502 Capital Appreciation Portfolio ............... 65,943,967 68,842,368 Health Sciences Portfolio .................... -- -- SmallCap and MidCap Portfolio ................ -- -- Money Market Portfolio ....................... -- -- (F) 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 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, 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, 2002, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the Health Sciences Portfolio, the SmallCap and MidCap Portfolio and the Money Market Portfolio reclassified approximately $17,004,000, $7,750,000, $605,000, $18,318,000, $23,996,000, $11,000, $7,000 and $0 respectively, from undistributed net investment income (accumulated loss) and $688,000, $668,000, $195,000, $4,697,000, $40,000, $0, $0 and $24,000, respectively, from undistributed net realized gain (accumulated loss) to paid-in capital. THE ALGER FUND -51- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Reclassifications result primarily from the difference in tax treatment of net operating losses. 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. (G) 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, 2002, 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, the Health Sciences Portfolio, the SmallCap and MidCap Portfolio and the Money Market Portfolio, which may be used to offset future net realized gains, were approximately $330,933,994, $192,370,254, $69,449,085, $154,952,867, $655,407,889, $86,171, $82,866 and $273,000, respectively, and expire between 2003 and 2010. (H) 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 based on net assets. 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. (I) OTHER: These financial statements have been prepared using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates. NOTE 3 -- INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES: (A) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the provisions of its Investment Management Agreement with Fred Alger Management, Inc. ("Alger Management"), are payable monthly and are computed based on the value of the average daily net assets of each Portfolio at the following annual rates: THE ALGER FUND -52- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) LargeCap Growth Portfolio ......................... .75% Small Capitalization Portfolio .................... .85 Balanced Portfolio ................................ .75 MidCap Growth Portfolio ........................... .80 Capital Appreciation Portfolio .................... .85 Health Sciences Portfolio ......................... .85 SmallCap and MidCap 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 and an affiliate of Alger Management (the "Distributor"), 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, 2003, such excess carried forward was approximately $18,932,000, $16,248,000, $4,901,000, $7,212,000, $24,440,000, $13,000 and $12,000 for Class B shares of the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the Health Sciences Portfolio and the SmallCap and MidCap 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, 2003, the initial sales charges and contingent deferred sales charges retained by the Distributor were approximately $24,000 and $2,067,000, 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. THE ALGER FUND -53- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) (D) BROKERAGE COMMISSIONS: During the six months ended April 30, 2003, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the Health Sciences Portfolio and the SmallCap and MidCap Portfolio paid the Distributor commissions of $1,783,846, $132,624, $530,350, $1,392,928, $1,007,132, $4,333, and $13,113, respectively, in connection with securities transactions. (E) TRANSFER AGENT FEES AND EXPENSES: Alger Shareholder Services, Inc. ("Alger Services"), an affiliate of Alger Management, serves as transfer agent for the Fund. During the six months ended April 30, 2003, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the Health Sciences Portfolio, the SmallCap and MidCap Portfolio and the Money Market Portfolio incurred fees of $748,050, $406,750, $211,375, $564,850, $1,045,900, $5,342, $3,285 and $218,900, respectively, for services provided by Alger Services. In addition, during the six months ended April 30, 2003, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the Health Sciences Portfolio, the SmallCap and MidCap Portfolio and the Money Market Portfolio reimbursed Alger Services $252,111, $82,187, $127,713, $238,774, $291,202, $26, $12 and $113,593, 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. THE ALGER FUND -54- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 4 -- SECURITIES TRANSACTIONS: (a) The following summarizes the securities transactions by the Fund, other than short-term securities, for the six months ended April 30, 2003: PURCHASES SALES ----------- ----- LargeCap Growth Portfolio .................. $594,344,527 $667,880,961 Small Capitalization Portfolio ............. 75,706,241 54,813,792 Balanced Portfolio ......................... 228,130,154 247,275,358 MidCap Growth Portfolio .................... 558,842,490 598,127,475 Capital Appreciation Portfolio ............. 452,725,975 499,461,276 Health Sciences Portfolio .................. 2,824,587 1,900,444 SmallCap and MidCap Portfolio .............. 8,870,133 1,908,598 Transactions in options for the Capital Appreciation Portfolio during the six months ended April 30, 2003, were as follows: NUMBER OF PREMIUMS CONTRACTS RECEIVED --------- ---------- Call options outstanding at October 31, 2002 ......................... 1,500 $ 331,990 Call options written ......................... 500 78,498 Call options exercised ....................... (2,000) (410,488) ------ --------- Call options outstanding at April 30, 2003 ........................... -- $ -- ====== ========= 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. 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. THE ALGER FUND -55- 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 eight 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, 2003 OCTOBER 31, 2002 SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ Alger LargeCap Growth Portfolio Class A: Shares sold ...................... 150,679,277 $1,063,019,087 276,614,134 $2,387,509,535 Shares converted from Class B .... 469,026 3,323,542 1,749,698 15,696,030 Shares redeemed .................. (148,901,356) (1,051,650,787) (284,490,956) (2,444,201,552) ------------ -------------- ------------- -------------- Net increase (decrease) .......... 2,246,947 $ 14,691,842 (6,127,124) $ (40,995,987) ============ ============== ============= ============== Class B: Shares sold ...................... 8,618,338 $ 58,549,951 35,159,786 $ 310,215,398 Shares converted to Class A ...... (497,356) (3,323,542) (1,843,078) (15,696,030) Shares redeemed .................. (11,528,951) (77,049,301) (49,901,424) (441,432,982) ------------ -------------- ------------- -------------- Net decrease ..................... (3,407,969) $ (21,822,892) (16,584,716) $ (146,913,614) ============ ============== ============= ============== Class C: Shares sold ...................... 957,099 $ 6,443,314 2,776,017 $ 23,550,591 Shares redeemed .................. (1,332,217) (8,851,038) (3,049,262) (24,990,877) ------------ -------------- ------------- -------------- Net decrease ..................... (375,118) $ (2,407,724) (273,245) $ (1,440,286) ============ ============== ============= ============== Alger Small Capitalization Portfolio Class A: Shares sold ...................... 20,323,860 $ 56,578,602 94,504,077 $ 341,706,969 Shares converted from Class B .... 1,325,788 3,808,613 2,986,009 10,407,905 Shares redeemed .................. (10,177,486) (29,042,773) (99,421,127) (359,443,070) ------------ -------------- ------------- -------------- Net increase (decrease) .......... 11,472,162 $ 31,344,442 (1,931,041) $ (7,328,196) ============ ============== ============= ============== Class B: Shares sold ...................... 1,953,629 $ 5,290,570 9,414,875 $ 32,100,768 Shares converted to Class A ...... (1,410,657) (3,808,613) (3,159,766) (10,407,905) Shares redeemed .................. (3,210,983) (8,526,620) (14,656,966) (49,609,672) ------------ -------------- ------------- -------------- Net decrease ..................... (2,668,011) $ (7,044,663) (8,401,857) $ (27,916,809) ============ ============== ============= ============== Class C: Shares sold ...................... 130,211 $ 353,743 488,977 $ 1,667,217 Shares redeemed .................. (153,489) (406,288) (553,280) (1,768,580) ------------ -------------- ------------- -------------- Net decrease ..................... (23,278) $ (52,545) (64,303) $ (101,363) ============ ============== ============= ==============
THE ALGER FUND -56- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ Alger Balanced Portfolio Class A: Shares sold ................. 6,628,753 $ 103,619,780 9,842,769 $ 174,336,003 Shares converted from Class B 17,193 273,394 59,378 1,057,572 Dividends reinvested ........ 81,529 1,277,555 119,803 2,245,114 Shares redeemed ............. (6,945,486) (108,515,529) (10,574,844) (186,136,914) --------------- --------------- --------------- --------------- Net decrease ................ (218,011) $ (3,344,800) (552,894) $ (8,498,225) =============== =============== =============== =============== Class B: Shares sold ................. 968,360 $ 14,623,768 3,213,303 $ 56,372,933 Dividends reinvested ........ 80,559 1,238,989 110,294 2,028,302 Shares converted to Class A . (17,548) (273,394) (60,686) (1,057,572) Shares redeemed ............. (1,279,529) (19,312,408) (3,227,636) (55,213,659) --------------- --------------- --------------- --------------- Net increase (decrease) ..... (248,158) $ (3,723,045) 35,275 $ 2,130,004 =============== =============== =============== =============== Class C: Shares sold ................. 667,786 $ 10,275,822 999,848 $ 17,816,624 Dividends reinvested ........ 24,499 378,516 39,698 732,826 Shares redeemed ............. (1,042,652) (16,042,948) (1,272,643) (21,788,159) --------------- --------------- --------------- --------------- Net decrease ................ (350,367) $ (5,388,610) (233,097) $ (3,238,709) =============== =============== =============== =============== Alger MidCap Growth Portfolio Class A: Shares sold ................. 217,779,233 $ 1,192,782,673 484,600,552 $ 3,169,121,933 Shares converted from Class B 417,305 2,613,037 2,030,059 13,970,774 Shares redeemed ............. (214,222,850) (1,172,540,916) (484,654,290) (3,169,542,793) --------------- --------------- --------------- --------------- Net increase ................ 3,973,688 $ 22,854,794 1,976,321 $ 13,549,914 =============== =============== =============== =============== Class B: Shares sold ................. 10,041,363 $ 52,615,576 46,342,558 $ 308,895,344 Shares converted to Class A . (500,931) (2,613,037) (2,145,231) (13,970,774) Shares redeemed ............. (11,685,526) (60,666,943) (61,286,740) (409,771,776) --------------- --------------- --------------- --------------- Net decrease ................ (2,145,094) $ (10,664,404) (17,089,413) $ (114,847,206) =============== =============== =============== =============== Class C: Shares sold ................. 2,325,368 $ 11,942,188 4,806,051 $ 31,510,115 Shares redeemed ............. (2,964,956) (15,116,285) (4,016,802) (24,957,532) --------------- --------------- --------------- --------------- Net increase (decrease) ..... (639,588) $ (3,174,097) 789,249 $ 6,552,583 =============== =============== =============== ===============
THE ALGER FUND -57- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ Alger Capital Appreciation Portfolio Class A: Shares sold ..................... 130,545,163 $ 800,825,533 220,578,172 $ 1,757,855,537 Shares converted from Class B ... 132,100 816,092 574,232 4,710,417 Shares redeemed ................. (128,776,340) (789,655,319) (227,273,301) (1,804,425,219) ------------ ------------- ------------ --------------- Net increase (decrease) .......... 1,900,923 $ 11,986,306 (6,120,897) $ (41,859,265) ============ ============= ============ =============== Class B: Shares sold ..................... 3,421,180 $ 20,055,010 21,486,880 $ 169,888,476 Shares converted to Class A ..... (139,177) (816,092) (600,311) (4,710,417) Shares redeemed ................. (14,133,640) (84,014,731) (35,756,828) (271,175,148) ------------ ------------- ------------ --------------- Net decrease .................... (10,851,637) $ (64,775,813) (14,870,259) $ (105,997,089) ============ ============= ============ =============== Class C: Shares sold ...................... 1,637,216 $ 9,372,670 5,096,484 $ 38,764,304 Shares redeemed .................. (3,097,110) (17,767,193) (8,250,993) (61,833,849) ------------ ------------- ------------ --------------- Net decrease ..................... (1,459,894) $ (8,394,523) (3,154,509) $ (23,069,545) ============ ============= ============ =============== Alger Health Sciences Portfolio* Class A: Shares sold ...................... 71,102 $ 673,637 89,151 $ 887,740 Shares converted from Class B .... 639 6,290 -- -- Shares redeemed .................. (774) (7,251) (12,494) (114,207) ------------ ------------- ------------ --------------- Net increase ..................... 70,967 $ 672,676 76,657 $ 773,533 ============ ============= ============ =============== Class B: Shares sold ...................... 89,395 $ 835,710 38,742 $ 385,314 Shares converted to Class A ...... (634) (6,290) -- -- Shares redeemed .................. (12,902) (115,645) (3,665) (34,641) ------------ ------------- ------------ --------------- Net increase ..................... 75,859 $ 713,775 35,077 $ 350,673 ============ ============= ============ =============== Class C: Shares sold ...................... 10,265 $ 95,771 33,383 $ 333,804 Shares redeemed .................. (26) (244) -- -- ------------ ------------- ------------ --------------- Net increase ..................... 10,239 $ 95,527 33,383 $ 333,804 ============ ============= ============ ===============
*Initially offered May 1, 2002. THE ALGER FUND -58- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ Alger SmallCap and MidCap Portfolio** Class A: Shares sold ....................... 20,563 $ 154,134 1,016,307 $ 7,853,142 Shares redeemed ................... (93,672) (673,739) -- -- --------------- --------------- --------------- --------------- Net increase (decrease) ........... (73,109) $ (519,605) 1,016,307 $ 7,853,142 --------------- --------------- --------------- --------------- Class B: Shares sold ....................... 31,123 $ 232,942 35,306 $ 347,740 Shares redeemed ................... (1,115) (8,189) -- -- --------------- --------------- --------------- --------------- Net increase ...................... 30,008 $ 224,753 35,306 $ 347,740 =============== =============== =============== =============== Class C: Shares sold ....................... 15,820 $ 115,921 33,370 $ 333,611 Shares redeemed ................... (1,040) (7,398) -- -- --------------- --------------- --------------- --------------- Net increase ...................... 14,780 $ 108,523 33,370 $ 333,611 =============== =============== =============== =============== Alger Money Market Portfolio Shares sold ....................... 3,295,952,057 $ 3,295,952,057 7,873,620,498 $ 7,873,620,498 Dividends reinvested .............. 459,124 459,124 2,277,848 2,277,848 Shares redeemed ................... (3,362,806,007) (3,362,806,007) (7,948,200,446) (7,948,200,446) --------------- --------------- --------------- --------------- Net decrease ...................... (66,394,826) $ (66,394,826) (72,302,100) $ (72,302,100) =============== =============== =============== ===============
**Initially offered May 8, 2002. NOTE 7 -- TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS: Distributions paid by the Portfolios during the six months ended April 30, 2003,and the year ended October 31, 2002, consisted entirely of ordinary income. As of October 31, 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 ..................................... $330,933,994 Unrealized appreciation (depreciation) ........................ (72,884,137) Small Capitalization Portfolio Undistributed ordinary income ................................. -- Undistributed long-term gain .................................. -- Capital loss carryforward ..................................... $192,370,254 Unrealized appreciation (depreciation) ........................ (3,647,895) Balanced Portfolio Undistributed ordinary income ................................. $ 3,133,079 Undistributed long-term gain .................................. -- Capital loss carryforward ..................................... 69,449,085 Unrealized appreciation (depreciation) ........................ (14,276,570) MidCap Growth Portfolio Undistributed ordinary income ................................. -- Undistributed long-term gain .................................. -- Capital loss carryforward ..................................... $154,952,867 Unrealized appreciation (depreciation) ........................ (34,749,383) THE ALGER FUND -59- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Capital Appreciation Portfolio Undistributed ordinary income .............................. -- Undistributed long-term gain ............................... -- Capital loss carryforward .................................. $655,407,889 Unrealized appreciation (depreciation) ..................... (22,168,186) Health Sciences Portfolio Undistributed ordinary income .............................. -- Undistributed long-term gain ............................... -- Capital loss carryforward .................................. $ 86,171 Unrealized appreciation (depreciation) ..................... (14,016) SmallCap and MidCap Portfolio Undistributed ordinary income .............................. -- Undistributed long-term gain ............................... -- Capital loss carryforward .................................. $ 82,866 Unrealized appreciation (depreciation) ..................... (145,180) Money Market Portfolio Undistributed ordinary income .............................. -- Undistributed long-term gain ............................... -- Capital loss carryforward .................................. $ 273,131 Unrealized appreciation (depreciation) -- The difference between book basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales. [This Page Intentionally Left Blank] THE ALGER FUND 111 Fifth Avenue New York, NY 10003 (800) 992-3863 www.alger.com INVESTMENT MANAGER Fred Alger Management, Inc. 111 Fifth Avenue New York, NY 10003 DISTRIBUTOR Fred Alger & Company, Incorporated 30 Montgomery Street Jersey City, NJ 07302 TRANSFER AGENT Alger Shareholder Services, Inc. 30 Montgomery Street Jersey City, NJ 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. PRESORTED STANDARD US POSTAGE PAID FARMINGDALE, NY PERMIT NO. 225 SAA L1 Item 2. CODE OF ETHICS Not applicable. Item 3. AUDIT COMMITTEE FINANCIAL EXPERT Not applicable. Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not applicable. Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable. Item 6. Reserved Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable. Item 8. Reserved Item 9. CONTROLS AND PROCEDURES (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this document. (b) In the last 90 days, there have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls. Item 10. EXHIBITS (a) Not applicable. (b) Attached hereto Exhibit 99.CERT Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Exhibit 99.906CERT Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. The Alger Fund By: /s/ Fred M. Alger ---------------------- Fred M. Alger Chairman and President Date: July 8, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Fred M. Alger --------------------- Fred M. Alger Chairman and President Date: July 8, 2003 By: /s/ Gregory S. Duch --------------------- Gregory S. Duch Treasurer Date: July 8, 2003 EX-99.CERT 3 c28185_ex99cert.txt EX-99CERT CERTIFICATIONS I, Fred M. Alger, certify that: 1. I have reviewed this report on Form N-CSR of The Alger Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c. presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 8, 2003 /s/ Fred M. Alger - ---------------------- Fred M. Alger Chairman and President I, Gregory S. Duch, certify that: 1. I have reviewed this report on Form N-CSR of The Alger Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c. presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 8, 2003 /s/ Gregory S. Duch - ---------------------- Gregory S. Duch Treasurer EX-99.906CERT 4 c28185_ex99-906cert.txt EX-99.906CERT CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of The Alger Fund does hereby certify, to such officer's knowledge, that: The semi-annual report on Form N-CSR of The Alger Fund for the period ended April 30, 2003 (the "Form N-CSR") fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of The Alger Fund. Dated: July 8, 2003 /s/ Fred M. Alger - ---------------------- Fred M. Alger Chairman and President THE ALGER FUND Dated: July 8, 2003 /s/ Gregory S. Duch - ---------------------- Gregory S. Duch Treasurer THE ALGER FUND A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The Alger Fund and will be retained by The Alger Fund and furnished to the Securities and Exchange Commission or its staff upon request. This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or as a separate disclosure document. -----END PRIVACY-ENHANCED MESSAGE-----