-----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, PZvC4aUvYf+zoXvZM9opUK9uYXRl2a5o2pLjA5uyWDe9//z2Q4cbKLv61BtLBueN 9RauEix1IFRN49offeSDDA== 0000930413-96-000207.txt : 19960710 0000930413-96-000207.hdr.sgml : 19960710 ACCESSION NUMBER: 0000930413-96-000207 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960709 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALGER FUND CENTRAL INDEX KEY: 0000003521 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01355 FILM NUMBER: 96592217 BUSINESS ADDRESS: STREET 1: 75 MAIDEN LN CITY: NEW YORK STATE: NY ZIP: 10038 BUSINESS PHONE: 2128068800 N-30D 1 SEMI-ANNUAL REPORT THE | ALGER | MEETING THE CHALLENGE FUND | OF INVESTING ALGER GROWTH PORTFOLIO ALGER SMALL CAPITALIZATION PORTFOLIO ALGER BALANCED PORTFOLIO ALGER MIDCAP GROWTH PORTFOLIO ALGER CAPITAL APPRECIATION PORTFOLIO ALGER MONEY MARKET PORTFOLIO SEMI-ANNUAL | April 30, 1996 REPORT | (Unaudited) FELLOW SHAREHOLDERS: June 18, 1996 A YEAR-TO-DATE REVIEW The first six months of the fiscal year have been extremely challenging and volatile. On more than one occasion, we have experienced the financial markets' equivalent of wind-shear. Despite the volatility, most of the major market indices are significantly higher than they were at the beginning of the year with NASDAQ leading the way, up 13.2% through the end of April. On the other hand, the bond market has been exceedingly weak. The reason for market conditions so far this year has been a dramatic change in perception about the nature of the economy and a variety of unrelated, but perplexing economic events. As 1996 began, the conventional wisdom in the market was that the economy was extremely weak, and consequently would require a series of Federal Reserve actions to lower short-term rates in order to avoid a possible recession. This view was predicated on the extremely lackluster economic conditions that existed during the Christmas sale season. Retail sales, by all accounts, were anywhere from slow to abysmal. As a result, the GDP, calculated by the new chain-linked method, grew only 0.5% in the fourth quarter. The Federal Reserve responded aggressively by lowering both the Fed Funds rate and the discount rate in February, after having lowered rates 1/4 of one point on December 19. On January 1, the thirty-year long-bond was trading at 5.96% and the stock market's concern was that earnings would be lower than expected. To a certain degree this forecast proved accurate. Certain parts of the economy, specifically semiconductors and other technology products, did pre-announce disappointing results for the first quarter, continuing a trend which began in the fourth quarter of 1995. Consequently, many stocks performed very poorly at the end of the first quarter. Interestingly, the first quarter began with a surge in the Dow and a lag in the smaller companies, presumably because the larger companies represented a safe haven against weak economic conditions. Whatever weakness existed in the economy when the year began was further exacerbated by severe snow storms in January and a partial shutdown of the Federal Government. Along the way, several events occurred that radically altered the investment landscape. First, two key commodities - grains and petroleum products - experienced accelerating price increases due in large part to the weather which prevailed at the beginning of the year. Secondly, on March 10 the Labor Department announced that the economy created 705,000 new jobs in February, a dramatic and unexpected surge in new job formation. This was an enormous increase, even netted against the drop of 188,000 in January. These data have been subsequently restated, but the net gain for the two months is about the same. These changes threw the bond market into a panic and temporarily altered the outlook of the stock market. The view about economic events began to shift at this point and people began to consider that: a) The economy was stronger than they originally thought; b) Inflation was becoming a problem; and c) The Fed would no longer lower rates. In early May, it was announced that the GDP in the first quarter had grown 2.8% (since restated to 2.3%). This completed the 180-degree turn in investors' perception. By this time the bond market had dropped dramatically. LOOKING AHEAD Throughout this period, we have been unwilling to accept the view, prevalent in January and February, that the economy was heading toward a recession. We are also not willing to accept the currently prevailing view that the economy is extremely robust and will lead to exaggerated inflation followed by increases in short-term interest rates sometime this summer. There is, admittedly, some evidence to point to a stronger economy than we had anticipated. Housing data, for example, remains robust despite the increase in mortgage rates. Additionally, consumer spending and average income figures were both up in April. Despite this strong economic data, there are still plenty of signs that the economy is not on a tear. Durable goods, for example, fell in April and gold, a good indicator of inflation, is flat on the year, having been up over $400 an ounce earlier. We also do not see any data which would lead to concerns of a higher level of inflation. If anything, there has been a drop in commodity prices recently, and other industrial measures do not show much stress in the economy. It is important to note, however, that when the bond market was at its worst, the stock market remained undervalued relative to the bond market. At the same time, the stock market has also remained undervalued relative to short-term interest rates. In all likelihood, this is why the stock market has remained relatively strong and did not respond to the rapid rise in rates. In conclusion, although the economy looks confusing, we see no reason to be less than optimistic about the financial markets. We believe that the market is going to remain challenging for the rest of the year, oscillating between fear of recession and fear of inflation, with periods of intense sector rotations. Against this background, we expect that fundamental analysis will win out. Respectfully submitted, /s/David D. Alger David D. Alger President - -------------------------------------------------------------------------------- TABLE OF CONTENTS - -------------------------------------------------------------------------------- Alger Growth Portfolio: Schedule of Investments..............................4-5 Financial Highlights.................................6 Alger Small Capitalization Portfolio: Schedule of Investments..............................7-8 Financial Highlights.................................9 Alger Balanced Portfolio: Schedule of Investments..............................10-11 Financial Highlights.................................12 Alger MidCap Growth Portfolio: Schedule of Investments..............................13-14 Financial Highlights.................................15 Alger Capital Appreciation Portfolio: Schedule of Investments..............................16-17 Financial Highlights.................................18 Alger Money Market Portfolio: Schedule of Investments..............................19-20 Financial Highlights.................................21 Statements of Assets and Liabilities.......................................22 Statements of Operations...................................................23 Statement of Cash Flows (Alger Capital Appreciation Portfolio).............24 Statements of Changes in Net Assets........................................25 Notes to Financial Statements..............................................26-29 THE ALGER FUND -4- ALGER GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1996 COMMON STOCKS--91.6% SHARES VALUE ------ ----- AEROSPACE--2.0% The Boeing Company ............................. 40,500 $ 3,326,063 Sundstrand Corp. ............................... 37,500 1,378,125 ----------- 4,704,188 ----------- ALUMINUM--.5% Aluminum Co. of America ........................ 18,500 1,153,937 ----------- APPAREL--1.1% Tommy Hilfiger Corporation* .................... 57,000 2,593,500 ----------- BIO-TECHNOLOGY--3.0% Amgen Inc.* .................................... 36,300 2,087,250 Biochem Pharma Inc.*............................ 108,200 4,923,100 ----------- 7,010,350 ----------- BUILDING & CONSTRUCTION--1.3% Clayton Homes, Inc.............................. 161,625 2,990,063 ----------- CHEMICALS--1.0% Monsanto Co. ................................... 16,100 2,439,150 ----------- COMMUNICATIONS--8.3% America Online Inc.* ........................... 50,000 3,200,000 Cascade Communications Corp.* .................. 12,300 1,233,075 Glenayre Technologies Inc.* .................... 62,000 2,883,000 LCI International Inc.* ........................ 25,000 650,000 Tellabs, Inc.* ................................. 53,500 2,955,875 U.S. Robotics Corp.* ........................... 23,000 3,599,500 WorldCom Inc.*.................................. 110,800 5,207,600 ----------- 19,729,050 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--9.9% Bay Networks Inc.* ............................. 91,500 2,882,250 Cabletron Systems, Inc.* ....................... 15,800 1,190,925 Cisco Systems, Inc.*............................ 137,800 7,148,375 Digital Equipment Corporation* ................. 66,500 3,973,375 Seagate Technology* ............................ 61,500 3,567,000 3 Com Corp.* ................................... 99,200 4,575,600 ----------- 23,337,525 ----------- COMPUTER SOFTWARE--1.5% Informix Corporation*........................... 135,500 3,573,813 ----------- COMPUTER TECHNOLOGY--1.2% Adaptec, Inc.* ................................. 48,700 2,800,250 ----------- CONSUMER PRODUCTS--1.0% Colgate Palmolive Co. .......................... 28,700 2,199,138 Nike, Inc., Cl. B .............................. 2,400 210,000 ----------- 2,409,138 ----------- DEFENSE--3.5% Lockheed Martin Corp. .......................... 28,789 2,321,113 McDonnell Douglas Corporation .................. 62,000 5,983,000 ----------- 8,304,113 ----------- FINANCIAL SERVICES--11.8% Chase Manhattan Corp. .......................... 88,000 6,061,000 First Data Corporation ......................... 91,412 6,947,312 GreenTree Financial Corp........................ 100,000 3,375,000 MBNA Corp....................................... 115,500 3,277,312 Merrill Lynch & Co., Inc. ...................... 65,000 3,924,375 Money Store, Inc. .............................. 85,200 2,151,300 Schwab (Charles) Corporation (The) ............. 90,600 2,219,700 ----------- 27,955,999 ----------- HEALTHCARE--9.1% Boston Scientific Corporation* ................. 42,000 1,811,250 Columbia/HCA Healthcare Corporation................................... 100,500 5,339,063 Guidant Corp. .................................. 42,300 2,374,088 Johnson & Johnson .............................. 11,404 1,054,870 Lilly (Eli) Co. ................................ 56,400 3,327,600 Merck & Co., Inc. .............................. 67,000 4,053,500 SmithKline Beecham PLC ADS ..................... 67,000 3,618,000 ----------- 21,578,371 ----------- HEALTH MAINTENANCE ORGANIZATIONS--6.0% Healthsource, Inc.*............................. 129,400 4,415,775 Oxford Health Plans, Inc.*...................... 134,000 6,767,000 United Healthcare Corporation .................. 51,500 3,012,750 ----------- 14,195,525 ----------- INSURANCE--5.1% American International Group, Inc. ............. 63,100 5,765,762 Travelers/Aetna Property Casualty Corp., Cl. A.* ............................... 60,000 1,657,500 Travelers Group Inc. ........................... 74,900 4,606,350 ----------- 12,029,612 ----------- LEISURE & ENTERTAINMENT--.8% Mirage Resorts, Incorporated* .................. 38,000 1,990,250 ----------- MACHINERY--.9% Case Corp. ..................................... 43,800 2,211,900 ----------- MEDICAL DEVICES--.2% Summit Technology Inc.* ........................ 24,150 431,680 ----------- MEDICAL SERVICES--.8% Cardinal Health, Inc. .......................... 5,700 357,675 Medtronic, Inc. ................................ 27,000 1,434,375 ----------- 1,792,050 ----------- THE ALGER FUND -5- ALGER GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1996 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- PHARMACEUTICALS--1.0% Pfizer Inc. .................................... 33,500 $ 2,307,313 ----------- RESTAURANTS & LODGING--4.8% Boston Chicken, Inc.* .......................... 30,000 960,000 Lone Star Steakhouse & Saloon, Inc.* 173,900 7,195,112 Outback Steakhouse, Inc.* ...................... 77,500 3,109,688 ----------- 11,264,800 ----------- RETAILING--8.6% Cintas Corp. ................................... 15,000 806,250 The Gap, Inc.................................... 163,000 4,910,375 General Nutrition Companies, Inc.* ............. 100,000 1,950,000 Gucci Group N.V.* .............................. 70,500 3,833,437 OfficeMax, Inc.*................................ 247,700 6,502,125 Viking Office Products, Inc.* .................. 39,000 2,315,625 ----------- 20,317,812 ----------- SEMI-CONDUCTORS--5.5% Altera Corporation* ............................ 56,900 3,001,475 Linear Technology Corporation .................. 75,000 2,578,125 Maxim Integrated Products, Inc.*. 107,600 3,685,300 Xilinx, Inc.*................................... 105,000 3,871,875 ----------- 13,136,775 ----------- MISCELLANEOUS--2.7% Planning Sciences International Corp.* ......... 6,000 144,750 Service Corporation International .............. 116,300 6,178,437 ----------- 6,323,187 ----------- Total Common Stocks (Cost $179,274,896) .......................... 216,580,351 ----------- WARRANTS WARRANTS VALUE -------- ----- MANUFACTURING Windmere Corp., expires 1/19/98 (Cost $61) ................... 81 $ 243 ----------- SHORT-TERM CORPORATE PRINCIPAL NOTES--8.1% AMOUNT --------- Ameritech Corp., 5.22%, 5/7/96................................. $8,500,000 8,492,606 Bridgestone/Firestone, Inc., 5.35%, 5/2/96 ................................ 700,000 699,895 Dynamic Funding, Corp., 5.35%, 5/7/96 ................................ 1,500,000 1,498,662 Lucent Technologies, Inc., 5.27%, 5/9/96 ................................ 750,000 749,121 Philip Morris Cos, Inc., 5.20%, 5/7/96 ................................ 6,350,000 6,344,495 Triple-A One Funding, Corp., 5.33%, 5/1/96(a) ............................. 1,300,000 1,300,000 ------------ Total Short-Term Corporate Notes (Cost $19,084,779) ........................... 19,084,779 ------------ Total Investments (Cost $198,359,736)(b) ....................... 99.7% 235,665,373 Other Assets in Excess of Liabilities ........................ .3 744,980 ----- ------------ Net Assets ..................................... 100.0% $236,410,353 ===== ============ *Non-income producing security. (a)Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. (b)At April 30, 1996, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $198,359,736, amounted to $37,305,637 which consisted of aggregate gross unrealized appreciation of $40,147,784 and aggregate gross unrealized depreciation of $2,842,147. See Notes to Financial Statements. THE ALGER FUND -6- ALGER GROWTH PORTFOLIO Financial Highlights For a share outstanding throughout the period (i)
SIX MONTHS YEAR ENDED OCTOBER 31, ENDED ------------------------------------------------------------- APRIL 30, 1996(II) 1995 1994 1993 1992 1991 ------------------ ---- ---- ---- ---- ---- Net asset value, beginning of period....................... $ 9.38 $ 6.97 $ 7.43 $ 5.76 $ 5.77 $ 4.25 -------- -------- -------- -------- ------- ------- Net investment income (loss)....... (.04)(iii) (.02) (.07)(iii) (.02) (.06)(iii) (.02) Net realized and unrealized gain (loss) on investments...... .58 2.59 .35 1.70 .61 1.86 -------- -------- -------- -------- ------- ------- Total from investment operations...................... .54 2.57 .28 1.68 .55 1.84 Distributions from net realized gains........................... (.59) (.16) (.74) (.01) (.56) (.32) -------- -------- -------- -------- ------- ------- Net asset value, end of period..... $ 9.33 $ 9.38 $ 6.97 $ 7.43 $ 5.76 $ 5.77 Total Return (iv).................. 6.3% 37.8% 4.1% 29.2% 9.7% 45.8% ======== ======== ======== ======== ======= ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted)............... $236,410 $154,284 $ 76,390 $ 37,988 $19,379 $10,213 ======== ======== ======== ======== ======= ======= Ratio of expenses to average net assets.................... 2.08%(v) 2.09%(v) 2.20% 2.20% 2.32% 2.70% ======== ======== ======== ======== ======= ======= Ratio of net investment income (loss) to average net assets.. (.91%) (1.03%) (1.01%) (1.16%) (1.07%) (1.06%) ======== ======== ======== ======== ======= ======= Portfolio Turnover Rate......... 48.80% 118.16% 103.86% 108.54% 69.28% 76.06% ======== ======== ======== ======== ======= ======= Average Commission Rate Paid..................... $ .0731 ========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred September 27, 1995. (ii) Unaudited. Ratios have been annualized; total return has not been annualized. (iii) Amount was computed based on average shares outstanding during the period. (iv) Does not reflect contingent deferred sales charge. (v) Reflects total expenses, including fees offset by earnings credits. The expense ratio net of earnings credits would have been 2.07% for both the six months ended April 30, 1996 and for the year ended October 31, 1995. See Notes to Financial Statements. THE ALGER FUND -7- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1996 COMMON STOCKS--96.9% SHARES VALUE ------ ----- AGRICULTURE--.7% Delta & Pine Land Co. .......................... 83,850 $ 3,741,806 ----------- ALUMINUM--.5% Reynolds Metals Co. ............................ 47,100 2,531,625 ----------- APPAREL--2.9% Gymboree Corp.* ................................ 110,000 2,846,250 Nautica Enterprises, Inc.* ..................... 89,500 4,161,750 St. John Knits, Inc. ........................... 61,800 3,669,375 Tommy Hilfiger Corporation* .................... 117,700 5,355,350 ----------- 16,032,725 ----------- BIO-TECHNOLOGY--8.9% Biochem Pharma Inc.* ........................... 290,300 13,208,650 CellPro Incorporated* .......................... 178,700 2,903,875 Centocor, Inc.* ................................ 112,100 4,484,000 Cygnus, Inc.* .................................. 148,000 3,163,500 Cytotherapeutics, Inc.* ........................ 169,800 2,504,550 Ergo Science Corp.* ............................ 185,500 3,849,125 Genome Therapeutics Corp.* ..................... 18,000 177,750 Genzyme Corp.-- Tissue Repair Division* ...................... 117,500 1,615,625 Guilford Pharmaceuticals Inc.* ................. 182,200 4,646,100 IDEC Pharmaceuticals Corp.* .................... 161,500 4,663,313 INCYTE Pharmaceuticals, Inc.* ................. 85,000 2,730,625 Liposome Company Inc.* ......................... 77,000 1,886,500 Oncogene Science, Inc.* ........................ 100,000 1,012,500 Sepracor Inc.* ................................. 170,000 2,380,000 ----------- 49,226,113 ----------- COMMUNICATIONS--12.6% America Online Inc.* ........................... 108,700 6,956,800 Ascend Communications, Inc.* ................... 281,800 17,330,700 Chancellor Broadcasting Co. Cl. A.* 61,500 1,568,250 Clear Channel Communications Inc.* ......................... 50,000 3,387,500 CompuServe Corp.* .............................. 105,000 2,992,500 DSP Communications, Inc.* ...................... 50,000 1,987,500 Glenayre Technologies Inc.* .................... 292,225 13,588,462 LCI International Inc.* ........................ 50,000 1,300,000 Tellabs, Inc.* ................................. 200,300 11,066,575 U.S. Robotics Corp.* ........................... 58,500 9,155,250 ----------- 69,333,537 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--9.1% Bay Networks Inc.* ............................. 335,300 10,561,950 Cisco Systems, Inc.* ........................... 50,000 2,593,750 Digital Equipment Corporation* ................. 120,000 7,170,000 Network Appliance Inc.* ........................ 228,500 7,312,000 Seagate Technology* ............................ 135,300 7,847,400 Teltrend, Inc.* ................................ 45,000 2,221,875 3 Com Corp.* ................................... 280,000 12,915,000 ----------- 50,621,975 ----------- COMPUTER SERVICES--1.6% HBO & Company .................................. 74,000 8,787,500 ----------- COMPUTER SOFTWARE--7.1% Compuware Corp.* ............................... 140,000 3,990,000 Electronics For Imaging Inc.* ................. 205,000 12,505,000 EPIC Design Technology, Inc.* ................. 71,000 2,431,750 Inference Corp. Cl. A.* ........................ 156,000 2,827,500 Informix Corporation* .......................... 250,400 6,604,300 INSO Corp.* .................................... 40,000 2,170,000 PeopleSoft Inc.* ............................... 72,500 4,567,500 Softkey International Inc.* .................... 140,700 3,939,600 ----------- 39,035,650 ----------- COMPUTER TECHNOLOGY--3.6% Adaptec, Inc.* ................................. 131,100 7,538,250 C.P. Clare Corporation* ........................ 156,900 3,314,512 Citrix Systems, Inc.* .......................... 50,000 3,900,000 FORE Systems, Inc.* ............................ 45,000 3,555,000 Verity Inc.* ................................... 25,000 859,375 VideoServer, Inc.* ............................. 23,500 787,250 ----------- 19,954,387 ----------- CONSUMER PRODUCTS--.5% Oakley, Inc.* .................................. 70,000 3,220,000 ----------- FINANCIAL SERVICES--3.9% Advanta Corp., Class B ......................... 46,100 2,310,763 Money Store, Inc. .............................. 345,000 8,711,250 Oxford Resources Corp. Cl. A.* ................. 85,000 2,507,500 Schwab (Charles) Corporation (The) ............................ 331,100 8,111,950 ----------- 21,641,463 ----------- HEALTHCARE--1.5% Access Health, Inc.* ........................... 37,500 2,076,563 CNS Inc.* ...................................... 99,000 1,955,250 Orthodontic Centers Of America Inc.* ................................ 20,000 790,000 Pharmacopeia Inc.* ............................. 10,000 268,750 Physicians Sales & Service, Inc.* .............. 110,000 2,970,000 ----------- 8,060,563 ----------- HEALTH MAINTENANCE ORGANIZATIONS--4.7% Healthsource, Inc.* ............................ 347,600 11,861,850 Oxford Health Plans, Inc.* ..................... 276,400 13,958,200 ----------- 25,820,050 ----------- INDUSTRIAL EQUIPMENT--.2% Waters Corp.* .................................. 30,000 836,250 ----------- LEISURE & ENTERTAINMENT--.1% Cinar Films, Inc. Cl. B.* ...................... 10,000 172,500 ----------- THE ALGER FUND -8- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1996 COMMON STOCKS--(CONT.) ......................... SHARES VALUE ------ ----- MANUFACTURING--.3% Landec Corporation* ............................ 100,000 $ 1,900,000 ----------- MEDICAL DEVICES--10.4% Conceptus, Inc.* ............................... 133,000 2,626,750 ESC Medical Systems Ltd.* ...................... 100,000 4,400,000 Fuisz Technologies Ltd.* ....................... 195,500 4,985,250 Heartport, Inc.* ............................... 79,500 2,842,125 Hologic, Inc.* ................................. 218,400 6,442,800 IDEXX Laboratories Inc.* ....................... 70,000 3,115,000 Intercardia, Inc.* ............................. 50,000 1,125,000 Metra Biosystems, Inc.* ........................ 105,000 1,417,500 Neuromedical Systems, Inc.* .................... 389,400 8,518,125 Perclose, Inc.* ................................ 75,000 1,537,500 STERIS Corp.* .................................. 157,000 5,102,500 Summit Technology Inc.* ........................ 53,850 962,569 Target Therapeutics, Inc.* ..................... 173,400 9,406,950 VISX, Incorporated* ............................ 143,500 4,914,875 ----------- 57,396,944 ----------- MEDICAL SERVICES--4.7% CompDent Corp.* ................................ 70,000 3,097,500 Health Management Associates, Inc. Cl. A.* ..................... 58,900 1,884,800 Lincare Holdings, Inc.* ........................ 148,200 5,752,087 Omnicare, Inc. ................................. 111.800 6,708,000 PhyCor Inc.* ................................... 126,125 6,211,656 Quintiles Transnational Corp.* ................. 33,500 2,453,875 ----------- 26,107,918 ----------- PAPER PACKAGING & FOREST PRODUCTS--.2% Sealed Air Corp.* .............................. 33,500 1,185,063 ----------- POLLUTION CONTROL--2.9% United Waste Systems, Inc.* .................... 159,000 8,745,000 USA Waste Service, Inc.* ....................... 275,100 7,152,600 ----------- 15,897,600 ----------- RESTAURANTS & LODGING--3.9% Boston Chicken, Inc.* .......................... 150,000 4,800,000 Lone Star Steakhouse & Saloon, Inc.* ................................ 303,400 12,553,175 Outback Steakhouse, Inc.* ...................... 109,400 4,389,675 ----------- 21,742,850 ----------- RETAILING--7.6% The Gap, Inc. .................................. 160,000 4,820,000 Garden Ridge Corp.* ............................ 43,500 2,414,250 General Nutrition Companies, Inc.* ............. 327,700 6,390,150 Gucci Group N.V.* .............................. 133,000 7,231,875 Home Shopping Network Inc.* .................... 133,000 1,562,750 OfficeMax, Inc.* ............................... 262,500 6,890,625 Tiffany & Co. .................................. 30,000 1,957,500 Viking Office Products, Inc.* .................. 179,200 10,640,000 ----------- 41,907,150 ----------- SEMI-CONDUCTORS--8.2% Altera Corporation* ............................ 153,900 8,118,225 Linear Technology Corporation .................. 190,500 6,548,437 Maxim Integrated Products, Inc.* .............................. 290,200 9,939,350 Microchip Technology Incorporated* ................................ 301,500 7,688,250 Xilinx, Inc.* .................................. 353,400 13,031,625 ----------- 45,325,887 ----------- MISCELLANEOUS--.8% Loewen Group Inc. .............................. 30,000 896,250 Rural/Metro Corporation* ....................... 112,500 3,332,813 ----------- 4,229,063 ----------- Total Common Stocks (Cost $368,855,720) .......................... 534,708,619 ----------- SHORT-TERM PRINCIPAL CORPORATE NOTES--2.8% AMOUNT ----------- Dynamic Funding Corp., 5.35%, 5/7/96................................. $1,900,000 1,898,305 Industrial Funding Corp., 5.30%, 5/6/96(a) ............................. 900,000 899,337 Lucent Technologies, Inc., 5.27%, 5/9/96 ................................ 3,900,000 3,895,433 Pepsico Inc., 5.25%, 5/8/96 ................................ 5,900,000 5,893,977 Philip Morris Cos. Inc., 5.20%, 5/7/96 ................................ 3,000,000 2,997,400 ----------- Total Short-Term Corporate Notes (Cost $15,584,452) ........................... 15,584,452 ----------- Total Investments (Cost $384,440,172)(a) ....................... 99.7% 550,293,071 Other Assets in Excess of Liabilities ............................... .3 1,536,908 ----- ------------ Net Assets ..................................... 100.0% $551,829,979 ===== ============ *Non-income producing security. (a)At April 30, 1996, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $384,440,172, amounted to $165,852,899 which consisted of aggregate gross unrealized appreciation of $170,331,910 and aggregate gross unrealized depreciation of $4,479,011. See Notes to Financial Statements. THE ALGER FUND -9- ALGER SMALL CAPITALIZATION PORTFOLIO Financial Highlights For a share outstanding throughout the period (i)
SIX MONTHS YEAR ENDED OCTOBER 31, ENDED --------------------------------------------------------------- APRIL 30, 1996(II) 1995 1994 1993 1992 1991 ------------------ ---- ---- ---- ---- ---- Net asset value, beginning of period....................... $ 11.13 $ 7.62 $ 8.65 $ 6.88 $ 6.97 $ 4.33 -------- -------- -------- -------- -------- --------- Net investment income (loss)....... (.05) (.13) (.09) (.08) (.11)(iii) (.03) -------- -------- -------- -------- -------- --------- Net realized and unrealized gain( loss) on investments...... 1.20 3.64 (.02) 1.85 .37 2.76 -------- -------- -------- -------- -------- --------- Total from investment operations...................... 1.15 3.51 (.11) 1.77 .26 2.73 Distributions from net realized gains........................... (.60) -- (.92) -- (.35) (.09) -------- -------- -------- -------- -------- --------- Net asset value, end of period..... $ 11.68 $ 11.13 $ 7.62 $ 8.65 $ 6.88 $ 6.97 ======== ======== ======== ======== ======== ========= Total Return (iv).................. 11.0% 46.2% (1.1%) 25.8% 3.4% 63.7% ======== ======== ======== ======== ======== ========= Ratios and Supplemental Data: Net assets, end of period (000's omitted)............... $551,830 $463,718 $294,890 $300,108 $182,432 $ 61,273 ======== ======== ======== ======== ======== ========= Ratio of expenses to average net assets.................... 2.13%(v) 2.11%(v) 2.18% 2.13% 2.17% 2.23% ======== ======== ======== ======== ======== ========= Ratio of net investment income (loss) to average net assets.. (1.79%) (1.75%) (1.51%) (1.52%) (1.64%) (1.37%) ======== ======== ======== ======== ======== ========= Portfolio Turnover Rate.......... 68.54% 97.37% 131.86% 148.49% 121.00% 171.04% ======== ======== ======== ======== ======== ========= Average Commission Rate Paid..................... $ .0665 ========
(i)Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred September 27, 1995. (ii) Unaudited. Ratios have been annualized; total return has not been annualized. (iii)Amount was computed based on average shares outstanding during the period. (iv)Does not reflect contingent deferred sales charge. (v)Reflects total expenses, including fees offset by earnings credits. The expense ratio net of earnings credits would have been 2.12% for the six months ended April 30, 1996 and 2.11% for the year ended October 31, 1995. See Notes to Financial Statements. THE ALGER FUND -10- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1996 COMMON STOCKS--57.3% SHARES VALUE ------ ----- AEROSPACE--1.5% The Boeing Company ............................. 1,300 $ 106,763 Sundstrand Corp. ............................... 2,100 77,175 ----------- 183,938 ----------- ALUMINUM--.5% Aluminum Co. of America ........................ 500 31,187 Reynolds Metals Co. ............................ 600 32,250 ----------- 63,437 ----------- APPAREL--.7% Tommy Hilfiger Corporation* .................... 1,800 81,900 ----------- BIO-TECHNOLOGY--2.6% Amgen Inc.* .................................... 1,100 63,250 Biochem Pharma Inc.* ........................... 4,300 195,650 Liposome Company Inc.* ......................... 2,400 58,800 ----------- 317,700 ----------- BUILDING AND CONSTRUCTION--.8% Clayton Homes, Inc. ............................ 5,125 94,813 ----------- CHEMICALS--.4% Monsanto Co. ................................... 300 45,450 ----------- COMMUNICATIONS--5.0% America Online Inc.* ........................... 1,400 89,600 Glenayre Technologies Inc.* .................... 3,037 141,221 LCI International, Inc.* ....................... 1,500 39,000 Tellabs, Inc. * ................................ 1,800 99,450 U.S. Robotics Corp* ............................ 700 109,550 WorldCom, Inc.* ................................ 2,700 126,900 ----------- 605,721 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--6.3% Bay Networks Inc.* ............................. 3,250 102,375 Cabletron Systems, Inc.* ....................... 500 37,688 Cisco Systems, Inc.* ........................... 4,600 238,625 Digital Equipment Corporation* ................. 1,500 89,625 Seagate Technology* ............................ 2,000 116,000 3 Com Corp.* ................................... 4,100 189,112 ----------- 773,425 ----------- COMPUTER SOFTWARE--1.6% Informix Corporation* .......................... 4,700 123,962 Softkey International Inc.* .................... 2,600 72,800 ----------- 196,762 ----------- COMPUTER TECHNOLOGY--.7% Adaptec, Inc.* ................................. 1,600 92,000 ----------- CONSUMER PRODUCTS--.4% Colgate Palmolive Co. .......................... 700 53,638 ----------- DEFENSE--2.1% Lockheed Martin Corp. .......................... 652 52,567 McDonnell Douglas Corporation .................. 2,100 202,650 ----------- 255,217 ----------- FINANCIAL SERVICES--7.5% Chase Manhattan Corp. .......................... 2,700 185,963 First Data Corporation ......................... 2,968 225,567 Green Tree Financial Corp. ..................... 4,100 138,375 MBNA Corp. ..................................... 3,900 110,662 Merrill Lynch & Co., Inc. ...................... 1,200 72,450 Money Store, Inc. .............................. 6,000 151,500 Schwab (Charles) Corporation (The) ............. 1,500 36,750 ----------- 921,267 ----------- HEALTHCARE--5.5% Boston Scientific Corporation* ................. 1,200 51,750 Columbia/HCA Healthcare Corporation ............ 4,000 212,500 Guidant Corp. .................................. 1,400 78,575 Johnson & Johnson .............................. 338 31,265 Lilly (Eli) Co. ................................ 1,700 100,300 Merck & Co., Inc. .............................. 1,600 96,800 Smithkline Beecham PLC ADS ..................... 2,000 108,000 ----------- 679,190 ----------- HEALTH MAINTENANCE ORGANIZATIONS--3.2% Healthsource, Inc.* ............................ 4,000 136,500 Oxford Health Plans, Inc.* ..................... 3,400 171,700 United Healthcare Corporation .................. 1,500 87,750 ----------- 395,950 ----------- INSURANCE--2.8% American International Group, Inc. ............. 2,000 182,750 Travelers Group Inc. ........................... 2,500 153,750 ----------- 336,500 ----------- LEISURE & ENTERTAINMENT--1.8% Caribiner International Inc.* .................. 2,000 57,000 Mirage Resorts, Incorporated* .................. 3,000 157,125 ----------- 214,125 ----------- MACHINERY--.5% Case Corp. ..................................... 1,300 65,650 ----------- MEDICAL SERVICES--.7% Medtronic, Inc, ................................ 500 26,563 Omnicare, Inc. ................................. 1,000 60,000 ----------- 86,563 ----------- PHARMACEUTICALS--.6% Pfizer Inc. .................................... 1,000 68,875 ----------- RESTAURANTS & LODGING--2.4% Lone Star Steakhouse & Saloon, Inc.* ........... 5,300 219,288 Outback Steakhouse, Inc.* ...................... 2,000 80,250 ----------- 299,538 ----------- RETAILING--4.1% The Gap, Inc. .................................. 4,200 126,525 General Nutrition Companies, Inc.* ............. 4,000 78,000 Gucci Group N.V.* .............................. 2,000 108,750 OfficeMax, Inc.* ............................... 7,250 190,312 ----------- 503,587 ------------ THE ALGER FUND -11- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1996 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- SEMI-CONDUCTORS--3.8% Altera Corporation* ............................ 2,200 $ 116,050 Maxim Integrated Products, Inc.* .............. 3,500 119,875 Microchip Technology Incorporated* ............. 2,000 51,000 Xilinx, Inc. * ................................. 4,900 180,688 ----------- 467,613 ----------- MISCELLANEOUS--1.8% Loewen Group Inc. .............................. 1,300 38,837 Service Corporation International .............. 3,500 185,938 ----------- 224,775 ----------- Total Common Stock (Cost $5,841,227) ........... 7,027,634 ----------- PRINCIPAL CORPORATE BONDS--7.4% .......................... AMOUNT ----------- AUTOMOTIVE--2.8% Ford Motor Credit Corp., 9.50%, 6/1/10 ................................ $ 300,000 348,390 ----------- BROKERAGE--.8% Merrill Lynch & Co., Inc., 6.375%, 9/8/06 ............................... 100,000 91,642 ----------- MANUFACTURING--2.4% Allied Signal Inc., 6.75%, 8/15/00 ............................... 300,000 299,850 ----------- UTILITIES--1.4% Pacific Gas & Electric Co. 7.25%, 3/1/26 ................................ 182,000 166,005 ----------- Total Corporate Bonds (Cost $960,807) .............................. 905,887 ----------- U.S. Government and Agency Obligations--19.5% U.S. Treasury Notes, 5.75%, 9/30/97 ............................... 250,000 249,452 U.S. Treasury Notes, 7.50%, 10/31/99 .............................. 100,000 103,625 U.S. Treasury Notes, 6.375%, 1/15/00 .............................. 100,000 100,140 U.S. Treasury Notes, 7.50%, 5/15/02 ............................... 100,000 104,953 U.S. Treasury Notes, 6.25%, 2/15/03 ............................... 250,000 245,585 U.S. Treasury Notes, 6.50%, 8/15/05................................ 300,000 295,782 U.S. Treasury Bonds, 7.625%, 11/15/22 ............................. 100,000 106,375 Federal Farm Credit Bank Corp., 4.95%, 3/3/97 ................................ 250,000 246,368 Federal Home Loan Bank Corp., 6.683%, 10/16/00 ............................. 250,000 247,853 Federal Home Loan Mortgage Corp., 6.50%, 6/10/03 ............................... 150,000 143,672 Federal Home Loan Mortgage Corp., 8.20%, 1/16/98 ............................... 100,000 101,797 Federal National Mortgage Assoc., 7.39%, 7/15/99 ............................... 100,000 100,281 Federal National Mortgage Assoc., 8.50%, 02/1/05 ............................... 100,000 104,531 Federal National Mortgage Assoc., 7.11%, 04/16/01 .............................. 250,000 249,735 ----------- Total U.S. Government & Agency Obligations (Cost $2,427,879) ............................ 2,400,149 ----------- Short-Term Corporate Notes--11.4% Ameritech Corp., 5.22%, 5/7/96 ................................ 150,000 149,870 Dynamic Funding Corp., 5.35%, 5/7/96 ................................ 300,000 299,733 Pepsico Inc., 5.25%, 5/8/96 ................................ 600,000 599,388 Philip Morris Cos. Inc., 5.20%, 5/7/96 ................................ 350,000 349,695 ----------- Total Short-Term Corporate Notes (Cost $1,398,686) ............................ 1,398,686 ----------- Short-Term U.S. Government Obligations--2.3% U.S. Treasury Bill, 5.29%, 10/17/96 (Cost $273,047) .............................. 280,000 281,128 ----------- Total Investments (Cost $10,901,646)(a) ........................ 97.9% 12,013,484 Other Assets in Excess of Liabilities .......... 2.1 254,095 ----- ----------- Net Assets ..................................... 100.0% $12,267,579 ===== =========== *Non-income producing security. (a)At April 30, 1996, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $10,901,646, amounted to $1,111,838 which consisted of aggregate gross unrealized appreciation of $1,353,457 and aggregate gross unrealized depreciation of $241,619. See Notes to Financial Statements. THE ALGER FUND -12- ALGER BALANCED PORTFOLIO Financial Highlights For a share outstanding throughout the period
FROM JUNE 1, 1992 SIX MONTHS YEAR ENDED OCTOBER 31, (COMMENCEMENT OF ENDED ---------------------------------- OPERATIONS) APRIL 30, 1996(I)(IV) 1995 1994 1993 TO OCTOBER 31, 1992(IV) --------------------- ----- ----- ----- ---------------------- Net asset value, beginning of period......................... $ 13.59 $ 10.65 $ 11.18 $ 9.95 $ 10.00 -------- -------- -------- ------- -------- Net investment income (loss)......... .08 (.02)(ii) (.05) (.01) (.12) Net realized and unrealized gain (loss) on investments........ .69 2.96 (.39) 1.24 .07 -------- -------- -------- ------- -------- Total from investment operations........................ .77 2.94 (.44) 1.23 (.05) -------- -------- -------- ------- -------- Dividends from net investment Income............................ (.01) -- -- -- -- Distributions from net realized gains............................. (.21) -- (.09) -- -- -------- -------- -------- ------- -------- Total Distributions.................. (.22) -- (.09) -- -- -------- -------- -------- ------- -------- Net asset value, end of period....... $ 14.14 $ 13.59 $ 10.65 $ 11.18 $ 9.95 ======== ======== ======== ======== ======== Total Return (iii)................... 5.7% 27.6% (4.0%) 12.4% (0.5%) ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted)................. $ 12,268 $ 6,214 $ 3,073 $ 3,125 $ 1,370 ======== ======== ======== ======== ======== Ratio of expenses to average net assets...................... 2.64%(v) 3.34%(v) 3.18% 3.82% 5.62% ======== ======== ======== ======== ======== Decrease reflected in above expense ratios due to expense reimbursements--Note 3(a)........ -- .24% -- .75% 75% ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets.... .47% (.13%) (.41%) (.97%) (3.07%) ======== ======== ======== ======== ======== Portfolio Turnover Rate............ 47.04% 84.06% 84.88% 115.17% 17.07% ======== ======== ======== ======== ======== Average Commission Rate Paid....................... $ .0725 =======
(i) Unaudited. (ii) Amount was computed based on average shares outstanding during the period. (iii)Does not reflect contingent deferred sales charge. (iv) Ratios have been annualized; total return has not been annualized. (v) Reflects total expenses, including fees offset by earnings credits. The expense ratio net of earnings credits would have been 2.60% for the six months ended April 30, 1996 and 3.25% for the year ended October 31, 1995. See Notes to Financial Statements. THE ALGER FUND -13- ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1996 COMMON STOCKS--87.1% SHARES VALUE ------ ----- AEROSPACE--1.3% Sundstrand Corp. ............................... 34,200 $ 1,256,850 ----------- ALUMINUM--.7% Reynolds Metals Co. ............................ 12,100 650,375 ----------- APPAREL--1.7% Gymboree Corp.* ................................ 20,000 517,500 Tommy Hilfiger Corporation* .................... 25,000 1,137,500 ----------- 1,655,000 ----------- BIO-TECHNOLOGY--4.2% Biochem Pharma Inc.* ........................... 61,000 2,775,500 Centocor, Inc.* ................................ 22,700 908,000 Liposome Company Inc.* ......................... 18,000 441,000 ----------- 4,124,500 ----------- BUILDING & CONSTRUCTION--1.3% Clayton Homes, Inc. ............................ 70,250 1,299,625 ----------- COMMUNICATIONS--11.7% America Online Inc.* ........................... 16,000 1,024,000 Ascend Communications, Inc.* ................... 28,000 1,722,000 Cascade Communications, Corp.* ................. 4,900 491,225 CompuServe Corp.* .............................. 16,000 456,000 Evergreen Media Corp. Cl. A.* .................. 11,100 435,675 Glenayre Technologies Inc.* .................... 41,725 1,940,213 LCI International Inc.* ........................ 18,000 468,000 Tellabs, Inc.* ................................. 21,500 1,187,875 U.S. Robotics Corp.* ........................... 8,900 1,392,850 WorldCom Inc.* ................................. 47,700 2,241,900 ----------- 11,359,738 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--6.5% Bay Networks Inc.* ............................. 33,600 1,058,400 Digital Equipment Corporation* ................. 26,000 1,553,500 Seagate Technology* ............................ 24,500 1,421,000 3 Com Corp.* ................................... 50,600 2,333,925 ----------- 6,366,825 ----------- COMPUTER SOFTWARE--3.4% Compuware Corp.* ............................... 32,800 934,800 Informix Corporation* .......................... 55,400 1,461,175 Softkey International Inc.* .................... 33,400 935,200 ----------- 3,331,175 ----------- COMPUTER TECHNOLOGY--1.1% Adaptec, Inc.* ................................. 19,500 1,121,250 ----------- CONSUMER PRODUCTS--1.4% CUC International Inc.* ........................ 29,000 953,375 Oakley, Inc.* .................................. 11,000 506,000 ----------- 1,459,375 ----------- FINANCIAL SERVICES--7.6% Advanta Corp., Class B ......................... 7,250 363,406 First Data Corporation ......................... 19,644 1,492,944 Green Tree Financial Corp. ..................... 37,000 1,248,750 MBNA Corp. ..................................... 62,550 1,774,856 Money Store, Inc. .............................. 90,500 2,285,125 Schwab (Charles) Corporation (The) ............. 10,900 267,050 ----------- 7,432,131 ----------- HEALTHCARE--1.9% Boston Scientific Corporation* ................. 20,000 862,500 Guidant Corp. .................................. 17,000 954,125 ----------- 1,816,625 ----------- HEALTH MAINTENANCE ORGANIZATIONS--6.5% Healthsource, Inc.* ............................ 69,600 2,375,100 Oxford Health Plans, Inc.* ..................... 57,000 2,878,500 United Healthcare Corporation .................. 18,700 1,093,950 ----------- 6,347,550 ----------- LEISURE & ENTERTAINMENT--.5% Mirage Resorts, Incorporated* .................. 9,200 481,850 ----------- MACHINERY--1.1% Case Corp. ..................................... 20,000 1,010,000 ----------- MEDICAL DEVICES--2.0% Fuisz Technologies Ltd.* ....................... 20,000 510,000 Heartport, Inc.* ............................... 12,700 454,025 VISX, Inc.* .................................... 28,900 989,825 ----------- 1,953,850 ----------- MEDICAL SERVICES--2.9% American Oncology Resources, Inc.* ............. 26,500 1,265,375 Cardinal Health, Inc. .......................... 2,000 125,500 PhyCor Inc.* ................................... 15,000 738,750 Transition Systems Inc.* ....................... 30,000 727,500 ----------- 2,857,125 ----------- PAPER PACKAGING & FOREST PRODUCTS--.9% Sealed Air Corp.* .............................. 23,500 831,312 ----------- THE ALGER FUND -14- ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1996 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- POLLUTION CONTROL--3.1% United Waste Systems, Inc.* .................... 25,000 $ 1,375,000 USA Waste Service, Inc.* ....................... 65,200 1,695,200 ----------- 3,070,200 ----------- RESTAURANTS & LODGING--6.4% Boston Chicken, Inc.* .......................... 57,200 1,830,400 Lone Star Steakhouse & Saloon, Inc.* ........... 69,300 2,867,288 Outback Steakhouse, Inc.* ...................... 38,500 1,544,813 ----------- 6,242,501 ----------- RETAILING--9.8% Cintas Corp. ................................... 13,200 709,500 The Gap, Inc. .................................. 50,000 1,506,250 General Nutrition Companies, Inc.* ............. 81,800 1,595,100 Gucci Group N.V.* .............................. 26,500 1,440,938 Nordstrom, Inc. ................................ 10,000 508,750 OfficeMax, Inc.*.................103,500 ....... . 2,716,875 Viking Office Products, Inc.* .................. 18,200 1,080,625 ----------- 9,558,038 ----------- SEMI-CONDUCTORS--8.1% Altera Corporation* ............................ 38,400 2,025,600 Linear Technology Corporation .................. 29,900 1,027,812 Maxim Integrated Products, Inc.*. .............. 42,300 1,448,775 Microchip Technology Incorporated* ............. 30,000 765,000 Xilinx, Inc.* .................................. 70,400 2,596,000 ----------- 7,863,187 ----------- MISCELLANEOUS--3.0% Loewen Group Inc. .............................. 14,000 418,250 Service Corporation International .............. 46,600 2,475,625 ----------- 2,893,875 ----------- Total Common Stocks (Cost $69,046,002) ........................... 84,982,957 ----------- SHORT-TERM CORPORATE ........................... PRINCIPAL NOTES--12.5% ................................. AMOUNT VALUE ---------- ----- Ameritech Corp., 5.22%, 5/7/96 ................................ $1,000,000 $ 999,130 Bridgestone/Firestone, Inc., 5.35%, 5/2/96 ................................ 749,000 748,889 Dynamic Funding Corp., 5.35%, 5/7/96 ................................ 1,000,000 999,109 Lucent Technologies, Inc., 5.27%, 5/9/96 ................................ 500,000 499,414 Merrill Lynch & Co., 5.30%-5.31%, 5/2/96-5/9/96 ................... 2,051,000 2,049,050 Pepsico Inc., 5.25%, 5/8/96 ................................ 2,600,000 2,597,345 Philip Morris Cos. Inc., 5.20%, 5/7/96 ................................ 4,250,000 4,246,316 ----------- Total Short-Term Corporate Notes (Cost $12,139,253) ........................... 12,139,253 ----------- Total Investments (Cost $81,185,255)(a) ........................ 99.6% 97,122,210 Other Assets In Excess of Liabilities ............................... .4 405,812 ----- ----------- Net Assets ..................................... 100.0% $97,528,022 ===== =========== * Non-income producing security. (a)At April 30, 1996, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $81,185,255, amounted to $15,936,955 which consisted of aggregate gross unrealized appreciation of $17,327,529 and aggregate gross unrealized depreciation of $1,390,574. See Notes to Financial Statements. THE ALGER FUND -15- ALGER MIDCAP GROWTH PORTFOLIO Financial Highlights For a share outstanding throughout the period
FROM MAY 24, 1993 SIX MONTHS (COMMENCEMENT OF ENDED YEAR ENDED OCTOBER 31, OPERATIONS) APRIL 30, 1996(I)(II) 1995 1994 TO OCTOBER 31, 1993(II) --------------------- -------- --------- ------------------------ Net asset value, beginning of period......................... $ 18.94 $ 12.77 $ 12.48 $ 10.00 -------- ------- -------- ------- Net investment income (loss)......... (.14)(v) (.08) (.11) (.09) Net realized and unrealized gain (loss) on investments........ 1.85 6.25 .68 2.57 -------- -------- -------- ------- Total from investment operations........................ 1.71 6.17 .57 2.48 Distributions from net realized gains............................. (1.17) -- (.28) -- -------- -------- -------- ------- Net asset value, end of period....... $ 19.48 $ 18.94 $ 12.77 $ 12.48 ======== ======== ======== ======= Total Return (iii)................... 9.9% 48.3% 4.7% 24.8% ======== ======== ======== ======= Ratios and Supplemental Data: Net assets, end of period (000's omitted)................. $ 97,528 $ 54,016 $ 18,516 $ 3,836 ======== ======== ======== ======= Ratio of expenses to average net assets...................... 2.32%(iv) 2.39% (iv) 3.20% 3.73% ======== ======== ======== ======= Decrease reflected in above expense ratio due to expense reimbursements--Note 3(a)........ -- -- .07% .80% ======== ======== ======== ======= Ratio of net investment income (loss) to average net assets.... (1.57%) (1.71%) (2.32%) (2.86%) ======== ======== ======== ======= Portfolio Turnover Rate............ 61.58% 121.60% 127.40% 57.64% ======== ======== ======== ======= Average Commission Rate Paid....................... $ .0716 =======
(i) Unaudited. (ii) Ratios have been annualized; total return has not been annualized. (iii)Does not reflect contingent deferred sales charge. (iv) Reflects total expenses, including fees offset by earnings credits. The expense ratio net of earnings credits would have been 2.30% for the six months ended April 30, 1996 and 2.34% for the year ended October 31, 1995. (v) Amount was computed based on average shares outstanding during the period. See Notes to Financial Statements. THE ALGER FUND -16- ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1996 COMMON STOCKS--91.6% SHARES VALUE ------ ----- AEROSPACE--.7% The Boeing Company ............................. 10,100 $ 829,463 ----------- ALUMINUM--1.5% Aluminum Co. of America ........................ 14,500 904,438 Reynolds Metals Co. ............................ 15,000 806,250 ----------- 1,710,688 ----------- APPAREL--.9% Nautica Enterprises Inc.* ...................... 7,000 325,500 Tommy Hilfiger Corporation* .................... 16,000 728,000 ----------- 1,053,500 ----------- BIO-TECHNOLOGY--6.4% Amgen Inc.* .................................... 15,000 862,500 Biochem Pharma Inc.* ........................... 49,600 2,256,800 CellPro Incorporated* .......................... 50,000 812,500 Centocor, Inc.* ................................ 9,400 376,000 Cygnus Inc.* ................................... 25,000 534,375 Cytotherapeutics, Inc.* ........................ 39,600 584,100 Ergo Science Corp.* ............................ 25,000 518,750 Gliatech Inc.* ................................. 10,000 133,750 Guilford Pharmaceuticals Inc.* ................. 17,500 446,250 Liposome Company Inc.* ......................... 10,000 245,000 Sepracor Inc.* ................................. 34,000 476,000 ----------- 7,246,025 ----------- CHEMICALS--.8% Monsanto Co. ................................... 5,500 833,250 ----------- COMMUNICATIONS--11.2% America Online Inc.* ........................... 23,000 1,472,000 Ascend Communications, Inc.* ................... 35,300 2,170,950 Cascade Communications Corp.* .................. 5,400 541,350 Chancellor Broadcasting Co. .................... Class A* ..................................... 50,000 1,275,000 Glenayre Technologies Inc.* .................... 55,450 2,578,425 LCI International Inc.* ........................ 19,000 494,000 Tellabs, Inc.* ................................. 20,000 1,105,000 U.S. Robotics Corp.* ........................... 10,000 1,565,000 WorldCom Inc.* ................................. 33,300 1,565,100 ----------- 12,766,825 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--9.2% Bay Networks Inc.* ............................. 39,000 1,228,500 Cabletron Systems, Inc.* ....................... 6,000 452,250 Cisco Systems, Inc.* ........................... 40,000 2,075,000 Digital Equipment Corporation* ................. 29,000 1,732,750 Network Appliance, Inc.* ....................... 22,500 720,000 Seagate Technology* ............................ 27,400 1,589,200 Teltrend, Inc.* ................................ 16,000 790,000 3 Com Corp.* ................................... 40,500 1,868,062 ----------- 10,455,762 ----------- COMPUTER SERVICES--.7% HBO & Company .................................. 7,000 831,250 ----------- COMPUTER SOFTWARE--5.9% Electronics For Imaging Inc.* .................. 8,000 488,000 EPIC Design Technology, Inc.* .................. 19,000 650,750 Inference Corp. Cl. A* ......................... 57,000 1,033,125 Informix Corporation* .......................... 62,500 1,648,437 Objective Systems Integrators* ................. 15,500 689,750 PeopleSoft Inc.* ............................... 18,300 1,152,900 Softkey International Inc.* .................... 38,300 1,072,400 ----------- 6,735,362 ----------- COMPUTER TECHNOLOGY--3.4% Adaptec, Inc.* ................................. 17,400 1,000,500 C.P. Clare Corporation* ........................ 33,000 697,125 Citrix Systems, Inc.* .......................... 17,500 1,365,000 Kurzweil Applied Intelligence Inc.* ............ 144 621 Security Dynamics Technologies* ................ 10,000 845,000 ----------- 3,908,246 ----------- CONSUMER PRODUCTS--1.1% Colgate Palmolive Co. .......................... 9,500 727,938 Oakley, Inc.* .................................. 12,000 552,000 ----------- 1,279,938 ----------- FINANCIAL SERVICES--6.2% AMRESCO Inc. ................................... 20,000 342,500 Chase Manhattan Corp. .......................... 31,000 2,135,125 First Data Corporation ......................... 29,600 2,249,600 Green Tree Financial Corp. ..................... 11,000 371,250 Money Store, Inc. .............................. 57,200 1,444,300 RAC Financial Group, Inc.* ..................... 15,000 463,125 ----------- 7,005,900 ----------- HEALTHCARE--6.7% ArthroCare Corporation* ........................ 19,000 479,750 Guidant Corp. .................................. 20,900 1,173,013 Impath Inc.* ................................... 20,000 350,000 Integra LifeSciences Corp.* .................... 32,000 408,000 Lilly (Eli) Co. ................................ 7,600 448,400 Lunar Corp.* ................................... 14,500 612,625 Merck & Co., Inc. .............................. 15,000 907,500 NCS Healthcare, Inc. Class A.* ................. 40,000 1,340,000 Orthologic Corp.* .............................. 5,000 174,375 Pharmaceutical Product Development Corp.* ........................... 15,200 642,200 Smithkline Beecham PLC ADS ..................... 20,000 1,080,000 ----------- 7,615,863 ----------- THE ALGER FUND -17- ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 1996 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- HEALTH MAINTENANCE ORGANIZATIONS--5.5% Healthsource, Inc.* ............................ 55,600 $ 1,897,350 Oxford Health Plans, Inc.* ..................... 50,000 2,525,000 United Healthcare Corporation .................. 31,000 1,813,500 ----------- 6,235,850 ----------- INSURANCE--2.5% American International Group, Inc. ............. 15,700 1,434,587 Travelers Group Inc. ........................... 23,000 1,414,500 ----------- 2,849,087 ----------- LEISURE & ENTERTAINMENT--.9% Mirage Resorts Incorporated* ................... 20,000 1,047,500 ----------- MACHINERY--.7% Case Corp. ..................................... 16,500 833,250 ----------- MEDICAL DEVICES--9.6% Arterial Vascular Engineering Corp.* ........... 22,000 968,000 Conceptus, Inc.* ............................... 50,000 987,500 ESC Medical Systems Ltd.* ...................... 30,000 1,320,000 Heartport, Inc.* ............................... 40,000 1,430,000 Hologic, Inc.* ................................. 65,500 1,932,250 IDEXX Laboratories Inc.* ....................... 15,000 667,500 Intercardia, Inc.* ............................. 18,500 416,250 Neuromedical Systems, Inc.* .................... 77,000 1,684,375 Target Therapeutics, Inc.* ..................... 20,000 1,085,000 VISX Inc.* ..................................... 14,000 479,500 ----------- 10,970,375 ----------- MEDICAL SERVICES--1.8% American Onocology Resources, Inc.* ............ 20,000 955,000 PhyCor Inc.* ................................... 23,000 1,132,750 ----------- 2,087,750 ----------- PHARMACEUTICALS--.8% Pfizer Inc. .................................... 13,200 909,150 ----------- POLLUTION CONTROL--.9% USA Waste Service, Inc.* ....................... 40,000 1,040,000 ----------- RESTAURANTS & LODGING--1.1% Lone Star Steakhouse & Saloon, Inc.* ................................ 30,300 1,253,663 ----------- RETAILING--5.1% The Gap, Inc. .................................. 50,000 1,506,250 General Nutrition Companies, Inc.* ............. 37,000 721,500 Gucci Group N.V.* .............................. 28,500 1,549,688 Mossimo, Inc.* ................................. 10,000 380,000 OfficeMax, Inc.* ............................... 28,300 742,875 Viking Office Products, Inc.* .................. 15,000 890,625 ----------- 5,790,938 ----------- SEMI-CONDUCTORS--6.6% Altera Corporation* ............................ 19,600 1,033,900 Linear Technology Corporation .................. 17,500 601,562 Maxim Integrated Products, Inc.* ............... 32,000 1,096,000 Microchip Technology Incorporated* ............. 17,400 443,700 Xilinx, Inc.* .................................. 70,000 2,581,250 Xylan Corporation* ............................. 28,000 1,793,763 ----------- 7,550,175 ----------- MISCELLANEOUS--1.4% Service Corporation International .............. 31,000 1,646,875 ----------- Total Common Stocks (Cost $90,481,480) ........................... 104,486,685 ----------- SHORT-TERM CORPORATE PRINCIPAL NOTES--7.0% AMOUNT --------- Ameritech Corp., 5.22%, 5/7/96 ................................ $1,600,000 1,598,608 Bridgestone/Firestone, Inc., 5.35%, 5/2/96 ................................ 700,000 699,896 Dynamic Funding, Corp., 5.35%, 5/7/96 ................................ 3,700,000 3,696,701 Lucent Technologies, Inc., 5.27%, 5/9/96 ................................ 150,000 149,825 Merrill Lynch & Co., 5.30%, 5/9/96 ................................ 100,000 99,881 Pepisco Inc., 5.25%, 5/8/96 ................................ 1,700,000 1,698,265 ----------- Total Short-Term Investments (Cost $7,943,176) ............................ 7,943,176 ----------- Total Investments (Cost $98,424,656)(a) ........................ 98.6% 112,429,861 Other Assets in Excess of Liabilities ........................ 1.4 1,568,226 --- ----------- Net Assets ..................................... 100.0% $113,998,087 ===== ============ * Non-income producing security. (a)At April 30, 1996, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $98,424,656 amounted to $14,005,205 which consisted of aggregate gross unrealized appreciation of $16,514,941 and aggregate gross unrealized depreciation of $2,509,736. See Notes to Financial Statements. THE ALGER FUND -18- ALGER CAPITAL APPRECIATION PORTFOLIO (i) Financial Highlights For a share outstanding throughout the period
Six Months Ended Year Ended October 31, --------------------------------- April 30, 1996(ii) 1995 1994 --------------- --------------- --------------- Net asset value, beginning of period ................. $ 18.62 $ 11.11 $ 10.00 ------------ ------------ ------------ Net investment income (loss) ......................... (.19)(iii) (0.47)(iii) (0.47) Net realized and unrealized gain (loss) on investments 4.33 7.98 1.58 ------------ ------------ ------------ Total from investment operations ..................... 4.14 7.51 1.11 Distributions from net realized gains ................ (.54) -- -- ------------ ------------ ------------ Net asset value, end of period ....................... $ 22.22 $ 18.62 $ 11.11 ============ ============ ============ Total Return (iv) .................................... 22.8% 67.6% 11.1% ============ ============ ============ Ratios and Supplemental Data: Net assets, end of period (000's omitted) ...... $ 113,998 $ 33,640 $ 2,369 ============ ============ ============ Ratio of expenses excluding interest to average net assets ........................... 2.52% 3.26% 4.13% ============ ============ ============ Ratio of expenses including interest to average net assets ........................... 2.54%(v) 3.54%(v) 5.53% ============ ============ ============ Decrease reflected in above expense ratios due to expense reimbursements--Note 3(a) ..... -- -- 0.85% ============ ============ ============ Ratio of net investment income (loss) to average net assets ........................... (1.93%) (3.02%) (5.12%) ============ ============ ============ Portfolio Turnover Rate ........................ 99.77% 197.65% 231.99% ============ ============ ============ Average Commission Rate Paid ................... $ .0664 ============ Debt outstanding at end of period .............. -- -- $ 651,000 ============ ============ ============ Average amount of debt outstanding during the period ................................... $ 121,154 $ 293,153 $ 406,864 ============ ============ ============ Average daily number of shares outstanding during the period ............................ $ 3,297,203 543,270 191,676 ============ ============ ============ Average amount of debt per share during the period ................................... $ 0.04 $ 0.54 $ 2.12 ============ ============ ============
(i) Prior to March 27, 1995, the Alger Capital Appreciation Portfolio was the Alger Leveraged AllCap Portfolio. (ii) Unaudited. Ratios have been annualized; total return has not been annualized. (iii)Amount was computed based on average shares outstanding during the period. (iv) Does not reflect contingent deferred sales charge. (v) Reflects total expenses, including fees offset by earnings credits. The expense ratio net of earnings credits would have been 2.50% for the six months ended April 30, 1996 and 3.43% for the year ended October 31, 1995. See Notes to Financial Statements. THE ALGER FUND -19- ALGER MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 1996 SHORT-TERM CORPORATE PRINCIPAL NOTES--90.0% AMOUNT VALUE --------- ----- AUTOMOBILES--9.2% American Honda Finance Corp., 5.35%, 6/24/96 ............................... $ 6,875,000 $ 6,819,828 Ford Motor Credit Corp., 5.28%, 5/9/96 ................................ 9,000,000 8,989,440 Renault Credit International, 5.30%, 7/31/96 ............................... 7,900,000 7,794,162 ----------- 23,603,430 ----------- BANKS--19.0% Banca CRT Financial Corp., 5.36%, 7/1/96 ................................ 4,757,000 4,713,796 Bank of America, 5.00%, 6/1/96 ................................ 3,000,000 2,997,831 Bankers Trust New York Corp., 5.16%, 7/9/96 ................................ 7,400,000 7,326,814 Caisse Centrale Desjardins Du Quebec, 5.36%, 7/8/96 ................................ 2,000,000 1,979,751 Fidelity Federal Bank FSB., 5.20-5.30%, 9/27/96-10/1/96 .................. 9,300,000 9,091,019 Korean Development Bank, 5.35%, 5/28/96 ............................... 5,800,000 5,776,727 National Australia Funding (DE) ................ Inc., 5.22%, 6/14/96 ............................... 9,700,000 9,638,114 Republic New York Corp., 5.26%, 5/2/96 ................................ 7,500,000 7,498,904 ----------- 49,022,956 ----------- BROKERAGE--1.9% Merrill Lynch & Co., Inc., 5.31%, 10/3/96 ............................... 5,000,000 4,885,688 ----------- COMMUNICATIONS--.5% Lucent Technologies Corp., 5.27%, 5/9/96 ................................ 1,300,000 1,298,478 ----------- COMPUTER TECHNOLOGY--.8% CSC Enterprises, 5.35%, 7/23/96 ............................... 2,200,000 2,172,864 ----------- ELECTRONICS--8.1% Hitachi, LTD, 5.25%-5.30%, 7/17/96-10/7/96 ................. 6,100,000 6,017,813 Sanyo Electric Finance (USA) Corp., 5.22-5.40%, 5/15/96-7/31/96 .................. 8,000,000 7,936,410 Toshiba America Inc., 5.23%, 7/1/96 ................................ 7,000,000 6,937,966 ----------- 20,892,189 ----------- FINANCE--17.9% First Almerica Co., 5.30%, 5/23/96 ............................... 8,500,000 8,472,469 Hanson Finance PLC, 5.35%, 6/26/96 ............................... 2,000,000 1,983,356 Industrial Funding Corp., 5.25%, 7/18/96 ............................... 9,000,000 8,897,625 Oak Funding Corp., 5.20-5.38%, 5/20/96-7/16/96(a) ............... 5,000,000 4,977,664 Sanwa Business Credit Corp., 5.35%, 7/23/96 ............................... 10,400,000 10,271,719 Unifunding Inc., 5.12%, 7/11/96 ............................... 6,800,000 6,731,335 Westpac Capital Corp., 4.84%, 8/12/96 ............................... 4,800,000 4,733,531 ----------- 46,067,699 ----------- IMPORT/EXPORT--1.2% Export Finance and Insurance Corp., 5.36%, 7/8/96 ................................ 3,100,000 3,068,614 ----------- INSURANCE--3.1% Anchor Funding Corp., 5.30-5.40%, 6/3/96-7/3/96(a) ................. 2,800,000 2,782,723 Great-West Life & Annuity Insurance Co. (U.S.), 5.33%, 6/6/96 ................................ 5,300,000 5,271,751 ----------- 8,054,474 ----------- LEASING--4.4% Japan Leasing Finance Corp., 5.40%-5.50%, 7/8/96-7/18/96 .................. 11,325,000 11,199,971 ----------- OIL--4.6% Fayette Funding Corp., 5.24-5.38%, 5/16/96-7/10/96 .................. 6,881,000 6,845,986 Shoseki International Corp., 5.43%, 6/11/96 ............................... 5,000,000 4,969,079 ----------- 11,815,065 ----------- REAL ESTATE--.4% Embarcadero Center Venture, 5.43%, 5/15/96 ............................... 1,000,000 997,888 ----------- RECEIVABLES CO.--6.2% Dynamic Funding Corp., 5.35-5.42%, 5/7/96-7/16/96 ................... 6,100,000 6,033,912 Omnibus Funding Corp., Series C, 5.25%, 6/14/96(a) ............................ 10,000,000 9,935,833 ----------- 15,969,745 ----------- THE ALGER FUND -20- ALGER MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 1996 SHORT-TERM CORPORATE PRINCIPAL NOTES--(CONT.) AMOUNT VALUE ------ ----- TRADING COMPANY--5.6% Mitsubishi International Corp., 5.23%, 6/28/96 ............................... $ 5,700,000 $ 5,651,971 Mitsui & Co., (USA) Inc., 5.32-5.37%, 7/2/96-8/5/96 .................... 8,878,000 8,772,500 ----------- 14,424,471 ----------- UTILITIES--7.1% France Telecom, 5.30%, 6/18/96 ............................... 9,400,000 9,333,573 Massachusetts Electric Co., 5.12%, 7/16/96 ............................... 5,000,000 4,945,956 Progress Funding Corp., Ser. A, 5.20%, 9/9/96(a) ............................. 4,200,000 4,120,527 ----------- 18,400,056 ----------- Total Short-Term Corporate Notes (Cost $231,873,588) .......................... 231,873,588 ----------- CERTIFICATES OF DEPOSIT--4.8% Banco Espirito Santo E Commercial, 5.375-5.4375%, 5/29/96-8/9/96 (Cost $12,500,000) ........................... 12,500,000 12,500,000 ------------ U.S. GOVERNMENT SECURITIES--3.1% Federal Farm Credit Bank, 4.95%, 3/3/97 (Cost $7,989,057) .............. 8,000,000 7,989,057 ------------ Total Investments (Cost $252,362,645)(b) ....................... 97.9% 252,362,645 Other Assets in Excess of Liabilities ..................... 2.1 5,370,068 ----- ------------ Net Assets ..................................... 100.0% $257,732,713 ===== ============ (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, 1996, the cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes. See Notes to Financial Statements. THE ALGER FUND -21- ALGER MONEY MARKET PORTFOLIO Financial Highlights For a share outstanding throughout the period
SIX MONTHS YEAR ENDED OCTOBER 31, ENDED -------------------------------------------------------- APRIL 30, 1996(i) 1995 1994 1993 1992 1991 ----------------- ---- ---- ---- ---- ---- Net asset value, beginning of period....................... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 -------- -------- -------- -------- -------- -------- Net investment income.............. .0268 .0573 .0374 .0304 .0424 .0671 Dividends from net investment income............... (.0268) (.0573) (.0374) (.0304) (.0424) (.0671) -------- -------- -------- -------- -------- -------- Net asset value, end of period..... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ======== ======== ======== ======== ======== ======== Total Return....................... 2.7% 5.9% 3.8% 3.1% 4.3% 6.9% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted)............... $257,733 185,822 $163,170 $126,567 $135,288 $160,898 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets.................... .29%(ii) .29%(ii) .27% .41% .25% .18% ======== ======== ======== ======== ======== ======== Decrease reflected in above expense ratios due to expense reimbursements and management fee waivers-Note 3(a)............. .50% .50% .50% .50% .60% .63% ======== ======== ======== ======== ======== ======== Ratio of net investment income to average net assets........................ 5.39% 5.73% 3.78% 3.04% 4.30% 6.76% ======== ======== ======== ======== ======== ========
(i) Unaudited. Ratios have been annualized; total return has not been annualized. (ii) Reflects total expenses, including fees offset by earnings credits. The expense ratio net of earnings credits would have been 0.28% for the six months ended April 30, 1996 and 0.27% for the year ended October 31, 1995. See Notes to Financial Statements. THE ALGER FUND -22- STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share amounts) (Unaudited) April 30, 1996
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET ASSETS: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------- --------- ---------- --------- --------- --------- Investments in securities, at value (identified cost*)-see accompany- ing schedules of investments ......... $235,665 $550,293 $12,013 $97,122 $112,430 $252,363 Cash .................................... 44 -- 42 25 -- 4,884 Receivable for investment securities sold....................... 1,781 9,392 150 2,875 1,364 -- Receivable for shares of beneficial interest sold........................ 1,302 1,797 25 879 1,487 405 Dividends and interest receivable............................ 23 24 54 2 5 149 Prepaid expenses and other assets........ 35 48 24 24 24 57 -------- -------- ------- ------- -------- -------- Total Assets......................... 238,850 561,554 12,308 100,927 115,310 257,858 -------- -------- ------- ------- -------- -------- LIABILITIES: Payable for investment securities purchased.................. 1,788 8,331 -- 3,145 1,029 -- Bank overdraft........................... -- 144 -- -- 24 -- Payable for shares of beneficial interest redeemed..................... 175 181 1 43 20 22 Accrued investment management fees....... 149 395 8 62 74 -- Accrued distribution fees ............... 149 349 8 59 65 -- Accrued shareholder servicing fees....... 50 116 3 20 22 -- Dividends payable-Note 2(c).............. -- -- -- -- -- 20 Accrued expenses......................... 129 208 20 70 78 83 -------- -------- ------- ------- -------- -------- Total Liabilities.................... 2,440 9,724 40 3,399 1,312 125 -------- -------- ------- ------- -------- -------- NET ASSETS ............................. $236,410 $551,830 $12,268 $97,528 $113,998 $257,733 ======== ======== ======= ======= ======== ======== Net Assets Consist of: Paid-in capital....................... $195,420 $346,162 $10,866 $79,523 $96,924 $257,794 Undistributed net investment income (accumulated loss)........... (3,277) (21,961) (40) (1,362) (995) -- Undistributed net realized gain (accumulated loss)............. 6,962 61,776 330 3,430 4,064 (61) Net unrealized appreciation............ 37,305 165,853 1,112 15,937 14,005 -- -------- -------- ------- ------- -------- -------- NET ASSETS .............................. $236,410 $551,830 $12,268 $97,528 $113,998 $257,733 ======== ======== ======= ======= ======== ======== Shares of beneficial interest outstanding-Note 6.................... 25,337 47,227 868 5,006 5,131 257,794 ======== ======== ======= ======= ======== ======== NET ASSET VALUE PER SHARE................ $9.33 $11.68 $14.14 $19.48 $22.22 $1.00 ======== ======== ======= ======= ======== ======== *Identified cost........................ $198,360 $384,440 $10,901 $81,185 $98,425 $252,363 ======== ======== ======= ======= ======== ========
See Notes to Financial Statements. THE ALGER FUND -23- STATEMENTS OF OPERATIONS (in thousands) (Unaudited) For the six months ended April 30, 1996
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET INVESTMENT INCOME: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------- --------- --------- --------- --------- --------- Income: Dividends ............................. $ 532 $ 124 $ 14 $ 42 $ 116 $ -- Interest .............................. 580 719 132 213 69 5,628 ------ ------ ------ ------ ------ ------ Total Income........................... 1,112 843 146 255 185 5,628 Expenses: Management fees-Note 3(a).............. 720 2,136 36 278 274 496 Distribution fees-Note 3(b)............ 720 1,885 36 261 242 -- Shareholder servicing fees-Note 3(f)... 240 628 12 87 81 -- Interest on line of credit utilized-Note 5 -- -- -- -- 5 -- Custodian fees......................... 16 58 5 10 14 14 Transfer agent fees and expenses-Note 3(e).................. 223 509 17 116 157 219 Professional fees...................... 13 15 9 12 9 9 Trustees' fees......................... 3 3 3 3 3 3 Registration fees...................... 35 40 4 26 23 20 Miscellaneous.......................... 30 73 4 14 11 26 ------ ------ ------ ------ ------ ------ 2,000 5,347 126 807 819 787 Less, earnings credits-Note 2(e)....... (17) (14) (2) (7) (12) (11) Less, expense reimbursements and fee waivers-Note 3(a)................... -- -- -- -- -- (496) ------ ------ ------ ------ ------ ------ Total Expenses......................... 1,983 5,333 124 800 807 280 ------ ------ ------ ------ ------ ------ NET INVESTMENT INCOME (LOSS)......................... (871) (4,490) 22 (545) (622) 5,348 ------ ------ ------ ------ ------ ------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.. 5,769 50,773 325 2,683 3,914 (11) Net change in unrealized appreciation on investments......................... 7,996 8,424 257 6,223 12,848 -- ------ ------ ------ ------ ------ ------ Net realized and unrealized gain (loss) on investments............. 13,765 59,197 582 8,906 16,762 (11) ------- ------- ------ ------ ------- ------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $12,894 $ 54,707 $ 604 $8,361 $16,140 $5,337 ======= ======== ====== ====== ======= ======
See Notes to Financial Statements. THE ALGER FUND -24- ALGER CAPITAL APPRECIATION PORTFOLIO STATEMENT OF CASH FLOWS (in thousands) (Unaudited) For the six months ended April 30, 1996 Increase (decrease) in Cash: Cash flows from operating activities: Dividends received ............................................ $ 111 Interest received ............................................. 69 Interest paid ................................................. (9) Operating expenses paid ....................................... (660) Purchase of investment securities ............................. (120,536) Purchase of short-term securities, net ........................ (6,395) Proceeds from disposition of investment securities ............ 64,041 Other ......................................................... (18) -------- Net cash used in operating activities ..................... (63,397) -------- Cash flows from financing activities: Dividends paid .............................................. (1,330) Proceeds from shares sold and dividends reinvested ............ 85,345 Payments on shares redeemed ................................... (21,337) -------- Net cash provided by financing activities ................. 62,678 ======== Net increase in cash .............................................. (719) Cash--beginning of period ......................................... 695 -------- Cash--end of period ............................................... $ (24) ======== Reconciliation of net increase in net assets to net cash used in operating activities: Net increase in net assets resulting from operations ....... $ 16,140 Increase in investments .................................... (61,281) Increase in interest and dividends receivable .............. (5) Increase in receivable for investment securities sold ...... (843) Decrease in payable for investment securities purchased .... (766) Net realized gain .......................................... (3,914) Net increase in unrealized appreciation .................... (12,848) Increase in accrued expenses ............................... 138 Net increase in other assets ............................... (18) -------- Net cash provided by operating activities ................ $ (63,397) ======== See Notes to Financial Statements. THE ALGER FUND -25- STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited) For the six months ended April 30, 1996
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO --------- --------- ---------- --------- --------- ---------- Net investment income (loss)............ $ (871) $ (4,490) $ 22 $ (545) $ (622) $ 5,348 Net realized gain (loss) on investments........................ 5,769 50,773 325 2,683 3,914 (11) Net change in unrealized appreciation on investments........................ 7,996 8,424 257 6,223 12,848 -- -------- ------- ------- ------- -------- -------- Net increase in net assets resulting from operations......... 12,894 54,707 604 8,361 16,140 5,337 Dividends to shareholders: Net investment income.................. -- -- (7) -- -- (5,348) Net realized gains.................... (10,925) (26,253) (125) (3,809) (1,331) -- Net increase from shares of beneficial interest transactions-Note 6.......... 80,157 59,658 5,582 38,960 65,549 71,922 -------- ------- ------- ------- -------- -------- Total increase..................... 82,126 88,112 6,054 43,512 80,358 71,911 Net Assets: Beginning of period................... 154,284 463,718 6,214 54,016 33,640 185,822 -------- ------- ------- ------- -------- -------- End of period.......................... $236,410 $551,830 $12,268 $97,528 $113,998 $257,733 ======== ======== ======= ======= ======== ======== Undistributed net investment income (accumulated loss)............ $ (3,277) $(21,961) $ (40) $(1,362) $ (955) $ -- ======== ======== ======= ======= ======== ========
THE ALGER FUND STATEMENTS OF CHANGES IN NET ASSETS (in thousands) For the year ended October 31, 1995
SMALL CAPITAL CAPITAL- MIDCAP APPRE- MONEY GROWTH IZATION BALANCED GROWTH CIATION MARKET PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO --------- --------- --------- --------- --------- --------- Net investment income (loss)............ $ (1,047) $ (6,433) $ (5) $ (522) $ (273) $ 9,507 Net realized gain (loss) on investments........................ 11,826 32,765 215 4,286 1,551 (20) Net change in unrealized appreciation on investments........................ 22,002 114,070 644 8,407 826 -- -------- ------- ------- ------- ------- -------- Net increase in net assets resulting from operations................... 32,781 140,402 854 12,171 2,104 9,487 Dividends to shareholders: Net investment income.................. -- -- -- -- -- (9,507) Net realized gains.................... (1,768) (170) -- -- -- -- Net increase from shares of beneficial interest transactions-Note 6.......... 46,881 28,596 2,287 23,329 29,167 22,672 -------- ------- ------- ------- ------- -------- Total increase..................... 77,894 168,828 3,141 35,500 31,271 22,652 Net Assets: Beginning of year..................... 76,390 294,890 3,073 18,516 2,369 163,170 -------- ------- ------- ------- ------- -------- End of year............................ $154,284 $463,718 $ 6,214 $54,016 $33,640 $185,822 ======== ======== ======= ======= ======= ======== Undistributed net investment income (accumulated loss)............ $ (2,406) $(17,471) $ (55) $ (817) $ (373) $ -- ======== ======== ======= ======= ======= ========
*Prior to March 27, 1995, the Alger Capital Appreciation Portfolio was the Alger Leveraged AllCap Portfolio. See Notes to Financial Statements. THE ALGER FUND -26- NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1- General: The Alger Fund (the "Fund") is a diversified, open-end registered investment company organized as an unincorporated business trust under the laws of the Commonwealth of Massachusetts. The Fund operates as a series company currently issuing six classes of shares of beneficial interest--Growth Portfolio, Small Capitalization Portfolio, Balanced Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio and Money Market Portfolio (the "Portfolios"). Prior to March 27, 1995, the Capital Appreciation Portfolio was known as the Leveraged AllCap Portfolio. NOTE 2- Significant Accounting Policies: (a) INVESTMENT VALUATION: Investments of the Portfolios, other than the Money Market Portfolio, are valued on each day the New York Stock Exchange (the "NYSE") is open as of the close of the NYSE (currently 4:00 p.m. Eastern time). Listed and unlisted securities for which such information is regularly reported are valued at the last reported sales price or, in the absence of reported sales, at the mean between the bid and asked price or, in the absence of a recent bid or asked price, the equivalent as obtained from one or more of the major market makers for the securities to be valued. Securities for which market quotations are not readily available are valued at fair value, as determined in good faith pursuant to procedures established by the Board of Trustees. The investments of the Money Market Portfolio, and short-term securities held by the other Portfolios having a remaining maturity of sixty days or less, are valued at amortized cost which approximates market value. (b) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income is recognized on the accrual basis. (c) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on the ex-dividend date. The Money Market Portfolio declares dividends daily from net investment income; such dividends are paid monthly. The dividends from net investment income of the other Portfolios are declared and paid annually. With respect to all Portfolios, dividends from net realized gains, offset by any loss carryforward, are declared and paid annually after the end of the fiscal year in which earned. (d) FEDERAL INCOME TAXES: It is each Portfolio's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. To the extent 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, 1995, the net capital loss carryforwards of the Money Market Portfolio which may be used to offset future net realized gains were approximately $50,000, and expire between 1996 and 2003. (e) EXPENSES: 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. The Fund's custodian fees have been reduced as a result of earnings credits received on overnight cash balances. Balances left on deposit with the custodian preclude their use elsewhere. (f) OTHER: These financial statements have been prepared using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates. THE ALGER FUND -27- NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) NOTE 3- Investment Management Fees and Other Transactions with Affiliates: (a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the provisions of Investment Management Agreements (the "Agreements") with Fred Alger Management, Inc. ("Alger Management"), are payable monthly and computed based on the value of the average daily net assets of each Portfolio at the following annual rates: Growth Portfolio............................ .75% Small Capitalization Portfolio.............. .85 Balanced Portfolio.......................... .75 MidCap Growth Portfolio..................... .80 Capital Appreciation Portfolio.............. .85 Money Market Portfolio...................... .50 The Agreements further provide that if in any fiscal year the aggregate expenses of any Portfolio, excluding interest, taxes, brokerage commissions, distribution fees and extraorditnary expenses, exceed the expense limitation of any state securities laws having jurisdiction over a Portfolio, Alger Management will reimburse that Portfolio for the excess expense to the extent required by such state laws. With respect to the Money Market Portfolio, Alger Management undertook to waive its management fee of $495,837 for the six months ended April 30, 1996. Alger Management has undertaken to waive its fee through June 30, 1996 at which time Alger Management may extend this undertaking in whole or in part. (b) DISTRIBUTION FEES: The Fund has adopted an Amended and Restated Plan of Distribution pursuant to which each Portfolio, other than the Money Market Portfolio, has agreed to reimburse Fred Alger & Company, Incorporated, the Fund's distributor (the "Distributor"), for costs and expenses incurred by the Distributor in connection with advertising and marketing shares of the Fund's Portfolios. The distribution fee is not to exceed .75% of the average daily net assets of each of the designated Portfolios. If in any month, the costs incurred by the Distributor are in excess of the distribution fees charged to the Portfolios, the excess may be carried forward, with interest, and sought to be reimbursed in future periods. As of April 30, 1996, such excess carried forward was approximately $7,070,000, $14,039,000, $251,000, $1,959,000 and $1,382,000 for the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, and the Capital Appreciation Portfolio, respectively. Contingent deferred sales charges imposed on redemptions will reduce the amount of distribution expenses for which reimbursement may be sought. See Note 3(c) below. The Distributor has entered into arrangements with broker/dealers for the sale of shares of certain of the Fund's Portfolios. In connection with these arrangements, the Distributor has agreed to pay these broker/dealers, with respect to the shares sold, from its distribution fee received from the Portfolios. (c) CONTINGENT DEFERRED SALES CHARGE: A contingent deferred sales charge is imposed if an investor redeems an amount which causes the current value of the investor's account of any Portfolio to fall below the total dollar amount of investments made during the past six years, except that no sales charge is imposed on the amount of the investment redeemed which is attributable to reinvested dividends or capital gain distributions or is derived from increases in the value of the investor's account above the amount invested during the past six years. The amount of the charge is 5% of the purchase payment for redemptions made in the first year. For redemptions made in the second, third, fourth, fifth and sixth years, the amount of the charge is 4%, 3%, 2%, 2% and 1%, respectively. In addition, no charge is imposed on the redemption of shares of the Money Market Portfolio, except for redemptions of shares acquired in exchange for shares of the other Portfolios. Any sales charges imposed on redemptions are paid to the Distributor. During the six months ended April 30, 1996, such charges amounted to approximately $840,000. THE ALGER FUND -28- NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) (d) BROKERAGE COMMISSIONS: During the six months ended April 30, 1996, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the Distributor commissions of $198,269, $311,817, $6,921, $70,503 and $80,587, respectively, in connection with securities transactions. (e) TRANSFER AGENT FEES: 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, 1996, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio incurred fees of $186,100, $390,780, $13,865, $93,040, $134,980 and $148,560, respectively, for services provided by Alger Services. In addition, during the six months ended April 30, 1996, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio reimbursed Alger Services $36,470, $117,720, $3,344, $23,190, $22,045 and $70,170, 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 the Portfolios' 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. At April 30, 1996, Alger Management and its affiliates owned 743,347 shares, 770,412 shares, 103,282 shares, 226,117 shares, 102,899 shares and 2,206,404 shares of the Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio, respectively. NOTE 4- Securities Transactions: The following summarizes the securities transactions by the Fund, other than short-term securities, for the six months ended April 30, 1996: PURCHASES SALES --------- ----- Growth Portfolio......... $ 149,129,719 $ 85,700,455 Small Capitalization Portfolio.............. 364,336,711 334,014,396 Balanced Portfolio....... 8,689,840 3,841,877 MidCap Growth Portfolio.............. 67,544,950 39,399,995 Capital Appreciation Portfolio.............. 119,770,389 64,885,127 NOTE 5- Short-Term Borrowings: The Capital Appreciation Portfolio has a line of credit with a bank whereby it may borrow up to 1/3 of its assets, as defined, up to a maximum of $25,000,000. Such borrowings have a variable interest rate and are payable on demand. For the six months ended April 30, 1996, the Portfolio had borrowings which averaged $121,154 at a weighted average interest rate of 8.66%. THE ALGER FUND -29- 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 were divided into different classes of shares during the six months ended April 30, 1996. Transactions of shares of beneficial interest were as follows:
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 1996 OCTOBER 31, 1995 SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ Alger Growth Portfolio* Shares sold................. 12,225,658 $110,837,024 14,201,363 $ 76,768,669 Dividends reinvested........ 1,233,917 10,587,010 266,844 1,726,486 ------------ ------------ ------------ ------------ 13,459,575 121,424,034 14,468,207 78,495,155 Shares redeemed............. (4,563,994) (41,267,323) (1,678,400) (31,613,563) ------------ ------------ ------------ ------------ Net increase................ 8,895,581 $ 80,156,711 12,789,807 $ 46,881,592 ============ ============ ============ ============ Alger Small Capitalization Portfolio* Shares sold................. 26,451,140 $284,995,247 42,344,546 $322,359,498 Dividends reinvested........ 2,431,612 25,264,448 22,836 161,233 ------------ ------------ ------------ ------------ 28,882,752 310,259,695 42,367,382 322,520,731 Shares redeemed............. (23,330,346) (250,601,028) (13,590,168) (293,925,307) ------------ ------------ ------------ ------------ Net increase................ 5,552,406 $ 59,658,667 28,777,214 $ 28,595,424 ============ ============ ============ ============ Alger Balanced Portfolio Shares sold................. 694,296 $ 9,479,217 274,506 $ 3,523,634 Dividends reinvested........ 9,599 129,105 -- -- ------------ ------------ ------------ ------------ 703,895 9,608,322 274,506 3,523,634 Shares redeemed............. (293,397) (4,026,371) (105,829) (1,237,116) ------------ ------------ ------------ ------------ Net increase................ 410,498 $ 5,581,951 168,677 $ 2,286,518 ============ ============ ============ ============ Alger MidCap Growth Portfolio Shares sold................. 2,845,584 $ 51,872,684 2,932,971 $ 47,462,566 Dividends reinvested........ 208,813 3,587,405 -- -- ------------ ------------ ------------ ------------ 3,054,397 55,460,089 2,932,971 47,462,566 Shares redeemed............. (901,369) (16,501,020) (1,530,303) (24,133,228) ------------ ------------ ------------ ------------ Net increase................ 2,153,028 $ 38,959,069 1,402,668 $ 23,329,338 ============ ============ ============ ============ Alger Capital Appreciation Portfolio Shares sold................. 4,312,858 $ 84,740,202 2,155,985 $ 38,975,452 Dividends reinvested........ 69,287 1,293,585 -- -- ------------ ------------ ------------ ------------ 4,382,145 86,033,787 2,155,985 38,975,452 Shares redeemed............. (1,057,644) (20,484,912) (562,915) (9,808,970) ------------ ------------ ------------ ------------ Net increase................ 3,324,501 $ 65,548,875 1,593,070 $ 29,166,482 ============ ============ ============ ============ Alger Money Market Portfolio Shares sold................. 373,194,760 $373,194,760 354,232,048 $354,232,048 Dividends reinvested........ 5,061,792 5,061,792 9,136,546 9,136,546 ------------ ------------ ------------ ------------ 378,256,552 378,256,552 363,368,594 363,368,594 Shares redeemed............. (306,333,843) (306,333,843) (340,696,846) (340,696,846) ------------ ------------ ------------ ------------ Net increase................ 71,922,709 $ 71,922,709 22,671,748 $ 22,671,748 ============ ============ ============ ============
*Adjusted to reflect the effect of a 3 for 1 stock split which occurred on September 27, 1995. The Alger Fund 75 Maiden Lane New York, N.Y. 10038 (800) 992-3863 - -------------------------------------------------------------------------------- Board of Trustees Fred M. Alger, CHAIRMAN David D. Alger Arthur M. Dubow Stephen E. O'Neil Nathan E. Saint-Amand John T. Sargent - -------------------------------------------------------------------------------- Investment Manager Fred Alger Management, Inc. 75 Maiden Lane New York, N.Y. 10038 - -------------------------------------------------------------------------------- Distributor Fred Alger & Company, Incorporated 30 Montgomery Street Jersey City, N.J. 07302 - -------------------------------------------------------------------------------- Transfer Agent Alger Shareholder Services, Inc. 30 Montgomery Street Jersey City, N.J. 07302 - -------------------------------------------------------------------------------- This report was prepared for distribution to shareholders and to others who may be interested in current information concerning the Fund. It was not prepared for use, nor is it circulated in connection with any offer to sell, or solicitation of any offer to buy, any securities. For details thereof and other material information, see the Prospectus. Past performance does not guarantee future results. Investment return and principal will fluctuate, and the Portfolios' shares, when redeemed, may be worth more or less than the original cost. Maximum contingent deferred sales charge is 5% on redemptions during the first year, and declines to 0% after six years. This communication must be accompanied or preceded by a current Alger Fund Prospectus. A496 -----END PRIVACY-ENHANCED MESSAGE-----