algerinstitfund_ncsr10312016.htm - Generated by SEC Publisher for SEC Filing

0000911415-17-000002.txt : 20170106 0000911415-17-000002.hdr.sgml : 20170106 20170106135640 ACCESSION NUMBER: 0000911415-17-000002 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 20161031 FILED AS OF DATE: 20170106 DATE AS OF CHANGE: 20170106 EFFECTIVENESS DATE: 20170106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALGER INSTITUTIONAL FUNDS CENTRAL INDEX KEY: 0000911415 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07986 FILM NUMBER: 17513763 BUSINESS ADDRESS: STREET 1: 360 PARK AVENUE SOUTH CITY: NEW YORK STATE: NY ZIP: 10010 BUSINESS PHONE: 212-806-8800 MAIL ADDRESS: STREET 1: 360 PARK AVENUE SOUTH CITY: NEW YORK STATE: NY ZIP: 10010 FORMER COMPANY: FORMER CONFORMED NAME: ALGER INSTITUTIONAL FUND DATE OF NAME CHANGE: 20020228 FORMER COMPANY: FORMER CONFORMED NAME: ALGER RETIREMENT FUND DATE OF NAME CHANGE: 19960515 FORMER COMPANY: FORMER CONFORMED NAME: ALGER DEFINED CONTRIBUTION TRUST DATE OF NAME CHANGE: 19930830

0000911415 S000009201 Alger Capital Appreciation Focus Fund

C000024998 Alger Capital Appreciation Focus Fund Class I ALGRX

C000122071 Alger Capital Appreciation Focus Fund Class A ALAFX

C000122072 Alger Capital Appreciation Focus Fund Class C ALCFX

C000122073 Alger Capital Appreciation Focus Fund Class Z ALZFX

0000911415 S000009202 Alger SmallCap Growth Institutional Fund

C000025000 Alger SmallCap Growth Institutional Fund Class I ALSRX

C000025001 Alger SmallCap Growth Institutional Fund Class R ASIRX

0000911415 S000009203 Alger MidCap Growth Institutional Fund

C000025002 Alger MidCap Growth Institutional Fund Class I ALMRX

C000025003 Alger MidCap Growth Institutional Fund Class R AGIRX

0000911415 S000009204 Alger Capital Appreciation Institutional Fund

C000025004 Alger Capital Appreciation Institutional Fund Class I ALARX

C000025005 Alger Capital Appreciation Institutional Fund Class R ACARX

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-07986

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

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

Mr. Hal Liebes

Fred Alger Management, Inc.

360 Park Avenue South

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

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

Date of fiscal year end: October 31

Date of reporting period: October 31, 2016

ITEM 1. REPORTS TO STOCKHOLDERS.

Table of Contents


The Alger Institutional Funds
Shareholders’ Letter (Unaudited)	1
Fund Highlights (Unaudited)	10
Portfolio Summary (Unaudited)	14
Schedules of Investments	15
Statements of Assets and Liabilities	35
Statements of Operations	39
Statements of Changes in Net Assets	41
Financial Highlights	45
Notes to Financial Statements	58
Report of Independent Registered Public Accounting Firm	88
Additional Information (Unaudited)	89

Go Paperless With Alger Electronic Delivery Service
Alger is pleased to provide you with the ability to access regulatory materials online.
When documents such as prospectuses and annual and semi-annual reports are
available, we’ll send you an e-mail notification with a convenient link that will take you
directly to the fund information on our website. To sign up for this free service, simply
enroll at www.icsdelivery.com/alger.

Shareholders' Letter (Unaudited)

October 31, 2016

Dear Shareholders,

Dangers of Bond-Like Equities Materialize
In our last shareholder letter, we discussed the risks of investors stampeding into bond-like
equities. In that letter, we noted that bond-like equities had outperformed the overall S&P
500 Index, but we urged investors to avoid joining the stampede because the category of
equities is highly vulnerable to rising interest rates and other risks. Due to the strong results
of bond-like stocks in the months leading up to July, U.S. equities as measured by the S&P
500 Index generated a 5.41% return for the one-year reporting period ended October 31,
2016, but the inherent risks that we had identified started to surface in a spectacular fashion.

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

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

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

• Bond-like equities are highly interest-rate sensitive so investors who stam-
peded into the category of stocks faced substantial interest rate risk. With
record-low interest rates, the risk of rising rates was considerable.
• Due to the stampede, valuations of sectors with companies that offer stable
earnings and high dividend yields such as Consumer Staples were historically
high, especially relative to growth sectors. At of the start of the 12-month
reporting period, for example, the P/E ratios for Consumer Staples and Util-
ities sectors traded at 20% and 12% premiums respectively, to their 20-year
medians while Information Technology and Health Care traded with P/E
ratios that were 7% and 3%, respectively, below their 20-year medians. The
large disparity in valuations implied that growth stocks were more attractive
than bond-like equities.

- 1 -

• Investors focused on bond-like equities could miss the potentially strong re-
turns that result when leading companies with attractive fundamentals gener-
ate earnings growth. Importantly, massive forms of innovation, such as inter-
net-related technologies and health care advancements, are creating attractive
opportunities for companies to grow their earnings and reward investors.

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

The Value of a Long-Term Perspective and Fundamental Research
Emotions can easily distort individuals’ views of reality, especially with investing. We believe
that the incorrect view that bond-like equities are the only way to generate yield during times
of low interest rates is an example of a distorted and potentially costly perspective. This
distorted view caused many investors to overlook growth stocks’ return of capital, which can
be measured by total yield. Total yield is dividend yield plus the share repurchase yield. As
an example, at the end of June, the Information Technology and Consumer Discretionary
sectors offered total yields of 6.5% and 6.0%, respectively, compared to the 4.7% total yield
of Telecommunication Services and the 4.3% total yield of Utilities.

In addition, performance of sectors is driven by three primary factors: dividends, earnings
growth, and changes to P/E ratios. During the reporting period, those three factors pointed
to growth sectors having strong potential for outperforming bond-like sectors. Data as of
June 30 illustrate this point, with consensus expectations having called for the bond-like
Utilities and Consumer Staples sectors to generate earnings growth per share of 4% and
7%, respectively, over the next three to five years. For this analysis, we reduced earnings
growth expectations by 20% simply to have a conservative outlook. For the Utilities and
Consumer Staples sectors, the dividend yield for the prior 12 months was 4% and 3%.
For both sectors, a reversion to the 20-year P/E median would imply a decline of 5%.

- 2 -

The potential changes in earnings and P/E ratios combined with dividend payments would
result in hypothetical returns of 3% for Utilities and 5% for Consumer Staples.

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

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

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

Reasons for Optimism
Rather than chasing dividend yields or making bets on potential policies of President-elect
Trump, we believe equity investors should assess the ongoing U.S. economic recovery, strong
corporate fundamentals, and the rapid pace of innovation. Those factors, we maintain, are
likely to support growth equities in the foreseeable future. The economy has benefited from
an expanding labor market that has created 15.5 million jobs since February of 2010. With
a strengthening job market, compensation as measured by hourly wages increased 2.8%
during the 12-month reporting period. Personal finances are also encouraging, with the
Household Debt Service Ratio, which is the ratio of total required household debt payments
to total disposable income, having improved substantially. After hitting a high of 13.20% in
the fourth quarter of 2007, the ratio has declined to an attractive level of only 9.98% as of
the second quarter of this year, according to the Federal Reserve.

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

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

- 3 -

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

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

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

Portfolio Matters
Alger Capital Appreciation Institutional Fund
The Alger Capital Appreciation Institutional Fund returned -0.08% for the fiscal year ended
October 31, 2016, compared to 2.28% return of the Russell 1000 Growth Index.

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

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

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

- 4 -

Alger Capital Appreciation Focus Fund
The Alger Capital Appreciation Focus Fund returned 0.36% for the fiscal year ended October
31, 2016, compared to the 2.28% return of its benchmark, the Russell 1000 Growth Index.

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

Amazon.com, Inc.; Microsoft Corp.; Alphabet, Inc., Cl. C; UnitedHealth Group, Inc.; and
Facebook, Inc., Cl. A were among the most important contributors to performance. The
performance of Facebook shares was supported by developments identified in the Alger
Capital Appreciation Institutional Fund discussion.

Conversely, Allergan PLC.; Vertex Pharmaceuticals, Inc.; Delphi Automotive PLC.; and
Delta Air Lines, Inc. were among top detractors from performance. Shares of Norwegian
Cruise Line Holdings Ltd. also detracted from results. The performance of Norwegian
Cruise Line Holdings stock was impacted by developments identified in the Alger Capital
Appreciation Institutional Fund discussion.

Alger Mid Cap Growth Institutional Fund
The Alger Mid Cap Growth Institutional Fund returned -4.21% for the fiscal year ended
October 31, 2016, compared to the 0.40% return of the Russell Midcap Growth Index.

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

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

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

Alger Small Cap Growth Institutional Fund
The Alger Small Cap Growth Institutional Fund returned -3.76% for the fiscal year ended
October 31, 2016, compared to the -0.49% return of the Russell 2000 Growth Index.

During the reporting period, the largest portfolio sector weightings were Information
Technology and Health Care. The largest sector overweight was Information Technology
and the largest underweight was Consumer Discretionary. The Health Care and Energy

- 5 -

sectors provided the largest contributions to relative performance while Information
Technology and Financials were among sectors that detracted from results.

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

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

I thank you for putting your trust in Alger.

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

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

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

This report and the financial statements contained herein are submitted for the general
information of shareholders of the funds. This report is not authorized for distribution to
prospective investors in a fund unless preceded or accompanied by an effective prospectus
for the fund. Fund returns represent the fiscal 12-month period return of Class I shares.

- 6 -

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

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

A Word about Risk
Growth stocks tend to be more volatile than other stocks as the price of growth stocks tends
to be higher in relation to their companies’ earnings and may be more sensitive to market,
political and economic developments. Investing in the stock market involves gains and
losses and may not be suitable for all investors. Stocks of small- and mid-sized companies
are subject to greater risk than stocks of larger, more established companies owing to such
factors as limited liquidity, inexperienced management, and limited financial resources.
Funds that participate in leveraging, such as the Capital Appreciation Institutional Fund, are
subject to the risk that the cost of borrowing money to leverage will exceed the returns for
securities purchased or that the securities purchased may actually go down in value; thus, a
fund’s net asset value can decrease more quickly than if the fund had not borrowed.

A small investment in derivatives could have a potentially large impact on a fund’s
performance. When purchasing options, a fund bears the risk that if the market value of
the underlying security does not move to a level that would make exercise of the option
profitable, the option will expire unexercised. When a call option written by a fund is
exercised, the fund will not participate in any increase in the underlying security’s value
above the exercise price. When a put option written by a fund is exercised, the fund will
be required to purchase the underlying security at a price in excess of its market value. Use
of options on securities indexes is subject to the risk that trading in the options may be
interrupted if trading in certain securities included in the index is interrupted, the risk that
price movements in a fund’s portfolio securities may not correlate precisely with movements

- 7 -

in the level of an index, and the risk that Fred Alger Management, Inc. may not predict
correctly movements in the direction of a particular market or of the stock market generally.
Because certain options may require settlement in cash, a fund may be forced to liquidate
portfolio securities to meet settlement obligations. For a more detailed discussion of the
risks associated with these funds, please see the prospectus

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

• S&P 500 index: An index of large company stocks considered representative
of the U.S. stock market.
• The Bloomberg Commodity Index reflects the performance of 20 commod-
ities, which are weighted to account for economic significance and market
liquidity.
• Russell 1000 Growth Index: An index of common stocks designed to track
performance of large-capitalization companies with greater than average
growth orientation.
• Russell Midcap Growth Index: An index of common stocks designed to
track performance of medium-capitalization companies with greater than
average growth orientation.
• Russell 2000 Growth Index: An index of common stocks designed to track
performance of small-capitalization companies with greater than average
growth orientation.
• FactSet Research Systems, Inc. is a multinational financial data and software
company.

- 8 -


FUND PERFORMANCE AS OF 9/30/16 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
	1		5		10		SINCE
	YEAR		YEARS		YEARS		INCEPTION
Alger Capital Appreciation Class I (Inception 11/8/93)	10.90	%	16.64	%	10.34	%	11.64	%
Alger Capital Appreciation Class R (Inception 1/27/03)^*	10.38	%	16.07	%	9.79	%	11.08	%
Alger Capital Appreciation Focus Class A (Inception
12/31/12)	5.93	%	n/a		n/a		13.46	%
Alger Capital Appreciation Focus Class C (Inception
12/31/12)	9.96	%	n/a		n/a		14.24	%
Alger Capital Appreciation Focus Class I (Inception
11/8/93	11.87	%	15.25	%	7.03	%	8.27	%
Alger Capital Appreciation Focus Class Z (Inception
12/31/12)	12.14	%	n/a		n/a		15.53	%
Alger Mid Cap Growth Class I (Inception 11/8/93)	5.85	%	13.92	%	5.91	%	11.31	%
Alger Mid Cap Growth Class R (Inception 1/27/03)^*	5.28	%	13.32	%	5.36	%	10.76	%
Alger Small Cap Growth Class I (Inception 11/8/93)	7.57	%	11.93	%	6.30	%	8.66	%
Alger Small Cap Growth Class R (Inception 1/27/03)^*	7.04	%	11.38	%	5.78	%	8.13	%
Alger Small Cap Growth Class Z-2 (Inception 8/1/16)	n/a		n/a		n/a		3.52	%

The performance data quoted represents past performance, which is not an indication or a guarantee of future
results. The Fund’s average annual total returns include changes in share price and reinvestment of dividends
and capital gains.
* Since inception performance is calculated from 11/08/93. Performance figures prior to 1/27/03, inception of Class R shares,
are those of the Fund's Class I Shares. The performance figures prior to 1/27/03 have been reduced to reflect the higher
operating expenses of Class R shares.

- 9 -

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

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Capital
Appreciation Institutional Fund Class I shares and the Russell 1000 Growth Index (an unmanaged index of common
stocks) for the ten years ended October 31, 2016. Figures for the Alger Capital Appreciation Institutional Fund Class
I shares and the Russell 1000 Growth Index include reinvestment of dividends. Performance for the Alger Capital
Appreciation Institutional Fund Class R and Z-2 shares may vary from the results shown above due to differences in
expenses the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction
for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		11/8/1993
Class I (Inception 11/8/93)	(0.08	)%	13.44	%	9.56	%	11.47	%
Class R (Inception 1/27/03)^*	(0.57	)%	12.89	%	9.02	%	10.91	%
Russell 1000 Growth Index	2.28	%	13.65	%	8.22	%	8.48	%


				Since
	1 YEAR	5 YEARS	10 YEARS	10/14/2016
Class Z-2 (Inception 10/14/16)	n/a	n/a	n/a	(0.86	)%
Russell 1000 Growth Index	n/a	n/a	n/a	(0.58	)%

The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s
average annual total returns include changes in share price and reinvestment of dividends and capital gains. The chart and table above
do not reflect the deduction of taxes that a shareholder would have paid on Fund distributions or on the redemption of Fund shares.
Investment return and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost.
Current performance may be higher or lower than the performance quoted. For updated performance, visit us at www.alger.com or call
us at (800) 992-3863.
* Since inception performance is calculated from 11/08/93. Performance figures prior to 1/27/03, inception of Class R
shares, are those of the Fund's Class I Shares. The performance figures prior to 1/27/03 have been reduced to reflect the
higher operating expenses of Class R shares.
- 10 -

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

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Capital
Appreciation Focus Fund Class I shares and the Russell 1000 Growth Index (an unmanaged index of common
stocks) for the ten years ended October 31, 2016. Beginning December 31, 2012 Alger Capital Appreciation Focus
Fund changed its investment strategy to invest a substantial portion of its assets in a small number of issuers. The
figures for the Alger Capital Appreciation Focus Fund Class I shares and the Russell 1000 Growth Index include
reinvestment of dividends. Performance for the Alger Capital Appreciation Focus Fund Class A, Class C and Class Z
shares may vary from the results shown above due to differences in expenses the class bears. Investors cannot invest
directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		11/8/1993
Class I (Inception 11/8/93)	0.40	%	12.09	%	6.38	%	8.10	%
Russell 1000 Growth Index	2.28	%	13.65	%	8.22	%	8.48	%


					Since
	1 YEAR		5 YEARS	10 YEARS	12/31/2012
Class A (Inception 12/31/12)	(4.92	)%	n/a	n/a	12.33	%
Class C (Inception 12/31/12)	(1.35	)%	n/a	n/a	13.06	%
Class Z (Inception 12/31/12)	0.64	%	n/a	n/a	14.34	%
Russell 1000 Growth Index	2.28	%	n/a	n/a	13.97	%

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

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Mid Cap
Growth Institutional Fund Class I shares and the Russell Midcap Growth Index (an unmanaged index of common
stocks) for the ten years ended October 31, 2016. Figures for the Alger Mid Cap Growth Institutional Fund Class
I shares and the Russell Midcap Growth Index include reinvestment of dividends. Performance for the Alger Mid
Cap Growth Institutional Fund Class R and Z-2 shares may vary from the results shown above due to differences in
expenses the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction
for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		11/8/1993
Class I (Inception 11/8/93)	(4.21	)%	9.88	%	4.94	%	11.04	%
Class R (Inception 1/27/03)^*	(4.82	)%	9.31	%	4.39	%	10.49	%
Russell Midcap Growth Index	0.40	%	12.02	%	7.65	%	9.00	%


				Since
	1 YEAR	5 YEARS	10 YEARS	10/14/2016
Class Z-2 (Inception 10/14/16)	n/a	n/a	n/a	(1.64	)%
Russell Midcap Growth Index	n/a	n/a	n/a	(1.12	)%

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

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Small Cap
Growth Institutional Fund Class I shares and the Russell 2000 Growth Index (an unmanaged index of common
stocks) for the ten years ended October 31, 2016. The figures for the Alger Small Cap Growth Institutional Fund
Class I shares and the Russell 2000 Growth Index include reinvestment of dividends. Performance for the Alger
Small Cap Growth Institutional Fund Class R and Z-2 shares may vary from the results shown above due to
differences in expenses the class bears. Investors cannot invest directly in any index. Index performance does not
reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		11/8/1993
Class I (Inception 11/8/93)	(3.76	)%	7.36	%	4.85	%	8.30	%
Class R (Inception 1/27/03)^*	(4.22	)%	6.84	%	4.34	%	7.78	%
Russell 2000 Growth Index	(0.49	)%	11.34	%	6.92	%	6.69	%


	1 YEAR	5 YEARS	10 YEARS	Since 8/1/2016
Class Z-2 (Inception 8/1/16)	n/a	n/a	n/a	(3.32	)%
Russell 2000 Growth Index	n/a	n/a	n/a	(4.09	)%

PORTFOLIO SUMMARY†
October 31, 2016 (Unaudited)



	Alger Capital
	Appreciation Institutional		Alger Capital			Alger Mid Cap Growth		Alger Small Cap Growth
SECTORS	Fund		Appreciation Focus Fund			Institutional Fund		Institutional Fund
Consumer Discretionary	16.8	%	16.2		%	19.4	%	8.5	%
Consumer Staples	6.7			5.3		4.8		2.7
Energy	1.7			2.1		1.1		1.3
Financials	3.0			2.9		5.6		4.4
Health Care	15.6		14.5			16.6		34.7
Industrials	7.5			6.9		12.4		7.9
Information Technology	41.9		44.3			25.0		36.8
Materials	1.3			0.7		4.8		2.5
Real Estate	0.7			1.9		2.9		1.8
Telecommunication Services	0.4			0.4		1.2		0.0
Short-Term Investments and
Net Other Assets	4.4			4.8		6.2		(0.6	)
	100.0	%	100.0		%	100.0	%	100.0	%

† Based on net assets for each Fund.

- 14 -

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


COMMON STOCKS—93.0%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc.*^,@,(a)	124,658	$		–
AEROSPACE & DEFENSE—0.8%
Lockheed Martin Corp.	114,634		28,243,525
AIRLINES—0.4%
Southwest Airlines Co.	320,358		12,830,338
ALTERNATIVE CARRIERS—0.4%
Level 3 Communications, Inc.*	232,829		13,073,348
APPAREL ACCESSORIES & LUXURY GOODS—0.8%
Hanesbrands, Inc.	285,405			7,334,909
PVH Corp.	200,042			21,400,493
			28,735,402
APPAREL RETAIL—0.2%
The TJX Cos., Inc.	118,660			8,751,175
APPLICATION SOFTWARE—2.3%
Adobe Systems, Inc.*	321,681			34,583,924
salesforce.com, Inc.*	641,241			48,195,674
			82,779,598
AUTO PARTS & EQUIPMENT—1.1%
Delphi Automotive PLC.	323,289			21,036,415
Johnson Controls International PLC.	473,712			19,100,068
			40,136,483
BIOTECHNOLOGY—4.2%
ACADIA Pharmaceuticals, Inc.*	340,700			7,941,717
Biogen, Inc.*	79,515			22,278,513
BioMarin Pharmaceutical, Inc.*	300,930			24,230,884
Celgene Corp.*	463,781			47,389,142
Incyte Corp.*	250,981			21,827,817
Vertex Pharmaceuticals, Inc.*	317,757			24,105,046
			147,773,119
BREWERS—1.6%
Molson Coors Brewing Co., Cl. B	559,893		58,122,492
BROADCASTING—1.3%
CBS Corp., Cl. B	800,987		45,351,884
BUILDING PRODUCTS—0.1%
Fortune Brands Home & Security, Inc.	89,268			4,876,711
CABLE & SATELLITE—2.3%
Comcast Corporation, Cl. A	1,294,575		80,030,626
COMMUNICATIONS EQUIPMENT—0.1%
Palo Alto Networks, Inc.*	25,459			3,916,358
DATA PROCESSING & OUTSOURCED SERVICES—3.9%
Sabre Corp.	372,110			9,611,602
Visa, Inc., Cl. A	1,538,675		126,956,074
			136,567,676
DRUG RETAIL—0.4%
CVS Caremark Corp.	176,808		14,869,553
ELECTRICAL COMPONENTS & EQUIPMENT—0.2%
Eaton Corp., PLC.	100,316			6,397,151

- 15 -

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


COMMON STOCKS—(CONT.)	SHARES			VALUE
FERTILIZERS & AGRICULTURAL CHEMICALS—0.2%
Monsanto Co.	85,800	$		8,646,066
FINANCIAL EXCHANGES & DATA—0.5%
IntercontinentalExchange Group, Inc.	45,197			12,220,817
S&P Global, Inc.	53,859			6,562,719
			18,783,536
FOOD DISTRIBUTORS—0.2%
US Foods Holding Corp.*	253,900			5,738,140
GENERAL MERCHANDISE STORES—0.3%
Dollar Tree, Inc.*	122,776			9,275,727
HEALTH CARE EQUIPMENT—2.8%
Boston Scientific Corp.*	857,935			18,874,570
DexCom, Inc.*	347,198			27,164,771
Edwards Lifesciences Corp.*	271,635			25,865,085
Medtronic PLC.	234,627			19,244,107
STERIS PLC.	128,995			8,619,446
			99,767,979
HEALTH CARE FACILITIES—0.6%
Amsurg Corp.*	246,606			14,734,709
HCA Holdings, Inc.*	90,689			6,940,429
			21,675,138
HOME ENTERTAINMENT SOFTWARE—2.3%
Activision Blizzard, Inc.	613,536			26,486,349
Electronic Arts, Inc.*	683,569			53,673,838
			80,160,187
HOME IMPROVEMENT RETAIL—1.6%
The Home Depot, Inc.	473,320		57,749,773
HOTELS RESORTS & CRUISE LINES—0.4%
Ctrip.com International Ltd.#*	256,535			11,326,020
Royal Caribbean Cruises Ltd.	49,019			3,768,091
				15,094,111
HOUSEWARES & SPECIALTIES—1.8%
Newell Brands, Inc.	1,323,826		63,570,125
HYPERMARKETS & SUPER CENTERS—0.5%
Costco Wholesale Corp.	120,354		17,796,746
INDUSTRIAL CONGLOMERATES—4.2%
3M Co.	31,300			5,173,890
Danaher Corp.	148,605			11,672,923
General Electric Co.	190,116			5,532,376
Honeywell International, Inc.	1,162,112		127,460,444
			149,839,633
INDUSTRIAL GASES—0.8%
Air Products & Chemicals, Inc.	220,862		29,467,408
INTERNET RETAIL—5.7%
Amazon.com, Inc.*	252,913		199,755,746
NetFlix, Inc.*	21,596			2,696,692
			202,452,438

- 16 -

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


COMMON STOCKS—(CONT.)	SHARES			VALUE
INTERNET SOFTWARE & SERVICES—15.8%
Alibaba Group Holding Ltd.#*	306,457	$		31,163,612
Alphabet, Inc., Cl. C*	371,644		291,569,584
comScore, Inc.*	187,600			5,401,004
eBay, Inc.*	560,805			15,988,551
Facebook, Inc., Cl. A*	1,373,946		179,973,186
Palantir Technologies, Inc., Cl. A*^,@	239,030			1,828,579
Yahoo! Inc.*	866,094			35,986,206
			561,910,722
INVESTMENT BANKING & BROKERAGE—1.1%
Morgan Stanley	816,803			27,420,077
The Goldman Sachs Group, Inc.	59,100			10,533,984
			37,954,061
IT CONSULTING & OTHER SERVICES—0.3%
Cognizant Technology Solutions Corp., Cl. A*	193,726			9,947,830
LIFE SCIENCES TOOLS & SERVICES—1.5%
Thermo Fisher Scientific, Inc.	355,835		52,318,420
MANAGED HEALTH CARE—3.1%
Aetna, Inc.	57,257			6,146,539
Centene Corp.*	304,365			19,016,725
Humana, Inc.	39,415			6,760,855
UnitedHealth Group, Inc.	554,902			78,424,300
			110,348,419
MOVIES & ENTERTAINMENT—0.4%
Time Warner, Inc.	150,986		13,436,244
OIL & GAS EQUIPMENT & SERVICES—0.5%
Halliburton Company	420,920		19,362,320
OIL & GAS EXPLORATION & PRODUCTION—1.2%
Anadarko Petroleum Corp.	407,185			24,203,076
EOG Resources, Inc.	81,931			7,408,201
Pioneer Natural Resources Co.	53,900			9,649,178
			41,260,455
PHARMACEUTICALS—3.2%
Allergan PLC.*	378,968			79,181,574
Eli Lilly & Co.	455,385			33,625,628
			112,807,202
RAILROADS—0.5%
Union Pacific Corp.	191,317		16,870,333
RESEARCH & CONSULTING SERVICES—0.4%
Verisk Analytics, Inc., Cl. A*	163,000		13,292,650
RESTAURANTS—0.4%
Starbucks Corp.	243,324		12,913,205
SEMICONDUCTOR EQUIPMENT—0.2%
ASML Holding NV#	69,548			7,345,660
SEMICONDUCTORS—4.6%
Broadcom Ltd.	486,077			82,769,192
Microsemi Corp.*	285,211			12,015,939
NXP Semiconductors NV*	443,052			44,305,200

- 17 -

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


COMMON STOCKS—(CONT.)	SHARES			VALUE
SEMICONDUCTORS—(CONT.)
QUALCOMM, Inc.	348,759	$		23,966,718
			163,057,049
SOFT DRINKS—1.9%
PepsiCo, Inc.	611,970		65,603,184
SPECIALIZED CONSUMER SERVICES—0.4%
ServiceMaster Global Holdings, Inc.*	413,286		14,791,506
SPECIALTY CHEMICALS—0.3%
The Sherwin-Williams Co.	50,197		12,291,237
SYSTEMS SOFTWARE—6.3%
Microsoft Corp.	3,217,080		192,767,434
Red Hat, Inc.*	69,219			5,361,011
ServiceNow, Inc.*	290,530			25,540,492
			223,668,937
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—5.9%
Apple, Inc.	1,748,967		198,577,713
Western Digital Corp.	202,351			11,825,393
			210,403,106
TOBACCO—2.1%
Altria Group, Inc.	408,058			26,980,795
Philip Morris International, Inc.	490,433			47,297,358
			74,278,153
TRADING COMPANIES & DISTRIBUTORS—0.9%
HD Supply Holdings, Inc.*	984,745		32,496,585
TOTAL COMMON STOCKS
(Cost $2,868,989,189)			3,298,829,724
PREFERRED STOCKS—0.5%	SHARES			VALUE
ADVERTISING—0.1%
Choicestream, Inc., Series A*^,@,(a)	1,074,935			–
Choicestream, Inc., Series B*^,@,(a)	2,500,538			1,475,318
				1,475,318
INTERNET SOFTWARE & SERVICES—0.2%
Palantir Technologies, Inc., Cl. B*^,@	974,841			7,457,534
Palantir Technologies, Inc., Cl. D*^,@	127,007			971,603
				8,429,137
PHARMACEUTICALS—0.2%
Intarcia Therapeutics, Inc., Series DD*^,@	111,655			6,368,801
TOTAL PREFERRED STOCKS
(Cost $13,252,335)				16,273,256
WARRANTS—0.0%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 6/22/26^@,(a)	574,662			563,169
(Cost $574,087)				563,169
MASTER LIMITED PARTNERSHIP—0.9%	SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—0.9%
The Blackstone Group LP.	1,258,992		31,512,570
(Cost $37,506,830)				31,512,570

- 18 -

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


REAL ESTATE INVESTMENT TRUST—1.2%	SHARES				VALUE
MORTGAGE—0.5%
Blackstone Mortgage Trust, Inc., Cl. A	592,913		$	17,905,972
SPECIALIZED—0.7%
Crown Castle International Corp.	265,027				24,114,807
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $40,798,316)					42,020,779
	PRINCIPAL
CORPORATE BONDS—0.0%	AMOUNT				VALUE
ADVERTISING—0.0%
Choicestream, Inc., 11.00%, 8/05/18^@,(a)	574,662				574,662
(Cost $69,780)					574,662
Total Investments
(Cost $2,961,190,537)^(b)	95.6	%		3,389,774,160
Other Assets in Excess of Liabilities	4.4	%		156,237,412
NET ASSETS	100.0	%	$	3,546,011,572

# American Depositary Receipts.
^(a)Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities Note 11.
^(b)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $3,010,960,413, amounted to $378,813,747 which consisted of aggregate gross unrealized appreciation of
$492,923,040 and aggregate gross unrealized depreciation of $114,109,293.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Choicestream, Inc.	03/14/14	$	36,151	0.00	%	$	0	0.00	%
Choicestream, Inc., 11.00%,
8/05/18	08/04/16		575	0.00	%		574,662	0.02	%
Choicestream, Inc., 6/22/26	08/04/16		574,087	0.02	%		563,169	0.01	%
Choicestream, Inc., Cl. A	12/17/13		859,605	0.03	%		0	0.00	%
Choicestream, Inc., Cl. B	07/10/14		1,500,323	0.05	%		1,475,318	0.04	%
Intarcia Therapeutics, Inc., Series
DD	03/27/14		3,616,505	0.14	%		6,368,801	0.18	%
Palantir Technologies, Inc., Cl. A	10/07/14		1,555,368	0.05	%		1,828,579	0.05	%
Palantir Technologies, Inc., Cl. B	10/07/14		6,437,297	0.22	%		7,457,534	0.21	%
Palantir Technologies, Inc., Cl. D	10/14/14		838,605	0.03	%		971,603	0.03	%
Total						$	19,239,666	0.54	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 19 -

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


COMMON STOCKS—91.7%	SHARES		VALUE
ALTERNATIVE CARRIERS—0.4%
Level 3 Communications, Inc.*	4,955	$	278,223
APPAREL ACCESSORIES & LUXURY GOODS—0.8%
PVH Corp.	5,696		609,358
APPLICATION SOFTWARE—2.7%
Adobe Systems, Inc.*	8,888		955,549
salesforce.com, Inc.*	15,020		1,128,903
			2,084,452
AUTO PARTS & EQUIPMENT—1.4%
Delphi Automotive PLC.	8,405		546,914
Johnson Controls International PLC.	12,682		511,338
			1,058,252
BIOTECHNOLOGY—3.3%
Biogen, Inc.*	1,662		465,659
BioMarin Pharmaceutical, Inc.*	6,920		557,199
Celgene Corp.*	9,396		960,083
Vertex Pharmaceuticals, Inc.*	6,994		530,565
			2,513,506
BREWERS—2.1%
Molson Coors Brewing Co., Cl. B	15,218		1,579,781
BROADCASTING—1.6%
CBS Corp., Cl. B	21,589		1,222,369
CABLE & SATELLITE—2.7%
Comcast Corporation, Cl. A	33,592		2,076,657
CONSUMER FINANCE—0.7%
LendingClub Corp.*	102,516		505,404
DATA PROCESSING & OUTSOURCED SERVICES—3.9%
Visa, Inc., Cl. A	35,604		2,937,686
DRUG RETAIL—0.6%
CVS Caremark Corp.	5,615		472,222
HEALTH CARE EQUIPMENT—2.1%
DexCom, Inc.*	12,926		1,011,330
Edwards Lifesciences Corp.*	6,395		608,932
			1,620,262
HOME ENTERTAINMENT SOFTWARE—2.3%
Electronic Arts, Inc.*	21,887		1,718,567
HOME IMPROVEMENT RETAIL—1.7%
The Home Depot, Inc.	10,366		1,264,756
HOUSEWARES & SPECIALTIES—2.1%
Newell Brands, Inc.	32,785		1,574,336
INDUSTRIAL CONGLOMERATES—5.0%
Honeywell International, Inc.	34,656		3,801,070
INDUSTRIAL GASES—0.7%
Air Products & Chemicals, Inc.	4,090		545,688

- 20 -

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


COMMON STOCKS—(CONT.)	SHARES		VALUE
INTERNET RETAIL—5.9%
Amazon.com, Inc.*	5,683	$	4,488,547
INTERNET SOFTWARE & SERVICES—16.2%
Alphabet, Inc., Cl. C*	7,470		5,860,514
eBay, Inc.*	15,242		434,549
Facebook, Inc., Cl. A*	29,092		3,810,761
GrubHub, Inc.*	18,020		686,742
Stamps.com, Inc.*	3,694		360,350
Yahoo! Inc.*	27,881		1,158,456
			12,311,372
INVESTMENT BANKING & BROKERAGE—1.0%
Morgan Stanley	22,674		761,166
LIFE SCIENCES TOOLS & SERVICES—1.4%
Thermo Fisher Scientific, Inc.	6,984		1,026,858
MANAGED HEALTH CARE—3.5%
UnitedHealth Group, Inc.	18,690		2,641,458
OIL & GAS EQUIPMENT & SERVICES—0.6%
Halliburton Company	10,438		480,148
OIL & GAS EXPLORATION & PRODUCTION—1.5%
Anadarko Petroleum Corp.	18,871		1,121,692
PACKAGED FOODS & MEATS—1.1%
Pinnacle Foods, Inc.	15,911		818,144
PHARMACEUTICALS—3.8%
Allergan PLC.*	9,339		1,951,290
Eli Lilly & Co.	12,708		938,359
			2,889,649
SEMICONDUCTORS—5.4%
Broadcom Ltd.	11,784		2,006,579
Cavium Networks, Inc.*	17,624		994,875
NXP Semiconductors NV*	10,948		1,094,800
			4,096,254
SYSTEMS SOFTWARE—7.9%
Microsoft Corp.	68,552		4,107,636
ServiceNow, Inc.*	7,983		701,785
TubeMogul, Inc.*	162,073		1,183,133
			5,992,554
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—5.9%
Apple, Inc.	39,106		4,440,095
TOBACCO—1.5%
Philip Morris International, Inc.	12,121		1,168,949
TRADING COMPANIES & DISTRIBUTORS—1.9%
HD Supply Holdings, Inc.*	42,749		1,410,717
TOTAL COMMON STOCKS
(Cost $62,995,999)			69,510,192

- 21 -

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


PREFERRED STOCKS—0.4%	SHARES			VALUE
BIOTECHNOLOGY—0.4%
Prosetta Biosciences, Inc., Series D*^,@,(a)	76,825		$	310,373
(Cost $345,712)				310,373
MASTER LIMITED PARTNERSHIP—1.2%	SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.2%
The Blackstone Group LP.	35,434			886,913
(Cost $987,163)				886,913
REAL ESTATE INVESTMENT TRUST—1.9%	SHARES			VALUE
SPECIALIZED—1.9%
Crown Castle International Corp.	15,780			1,435,822
(Cost $1,377,384)				1,435,822
Total Investments
(Cost $65,706,258)^(b)	95.2	%		72,143,300
Other Assets in Excess of Liabilities	4.8	%		3,621,750
NET ASSETS	100.0	%	$	75,765,050

^(a)Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities Note 11.
^(b)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax
purposes of $67,907,421, amounted to $4,235,879 which consisted of aggregate gross unrealized appreciation of
$7,708,921 and aggregate gross unrealized depreciation of $3,473,042.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Prosetta Biosciences, Inc., Series D	02/06/15	$	345,712	0.80	%	$	310,373	0.41	%
Total						$	310,373	0.41	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 22 -

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


COMMON STOCKS—87.9%	SHARES		VALUE
ADVERTISING—0.0%
Choicestream, Inc.*^,@,(a)	8,930	$	–
AEROSPACE & DEFENSE—2.3%
Hexcel Corp.	16,048		730,023
TransDigm Group, Inc.	5,269		1,435,592
			2,165,615
AIRLINES—0.9%
Southwest Airlines Co.	21,811		873,531
ALTERNATIVE CARRIERS—1.2%
Level 3 Communications, Inc.*	8,819		495,187
Zayo Group Holdings, Inc.*	18,965		610,294
			1,105,481
APPAREL ACCESSORIES & LUXURY GOODS—3.7%
Hanesbrands, Inc.	23,873		613,536
lululemon athletica, Inc.*	11,038		631,926
Michael Kors Holdings Ltd.*	10,435		529,889
PVH Corp.	10,703		1,145,007
Under Armour, Inc., Cl. A*	11,231		349,284
Under Armour, Inc., Cl. C*	9,137		236,283
			3,505,925
APPAREL RETAIL—1.8%
Burlington Stores, Inc.*	9,708		727,518
Ross Stores, Inc.	15,989		999,952
			1,727,470
APPLICATION SOFTWARE—2.1%
Autodesk, Inc.*	4,126		298,227
Gridsum Holding, Inc.#*	11,836		166,533
Manhattan Associates, Inc.*	9,089		460,267
Mobileye NV*	12,959		481,816
Splunk, Inc.*	10,150		610,928
			2,017,771
AUTO PARTS & EQUIPMENT—2.8%
Delphi Automotive PLC.	16,650		1,083,416
Johnson Controls International PLC.	22,464		905,748
WABCO Holdings, Inc.*	6,680		657,713
			2,646,877
AUTOMOTIVE RETAIL—1.1%
O'Reilly Automotive, Inc.*	4,008		1,059,876
BIOTECHNOLOGY—4.0%
ARIAD Pharmaceuticals, Inc.*	32,613		284,385
BioMarin Pharmaceutical, Inc.*	9,113		733,779
Bluebird Bio, Inc.*	6,899		329,427
Incyte Corp.*	8,155		709,240
Sarepta Therapeutics, Inc.*	8,986		352,611
TESARO, Inc.*	6,099		737,247
Ultragenyx Pharmaceutical, Inc.*	3,267		192,720

- 23 -

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


COMMON STOCKS—(CONT.)	SHARES		VALUE
BIOTECHNOLOGY—(CONT.)
Vertex Pharmaceuticals, Inc.*	6,504	$	493,394
			3,832,803
BROADCASTING—0.8%
CBS Corp., Cl. B	13,279		751,857
BUILDING PRODUCTS—2.0%
Allegion PLC.	17,724		1,131,500
Fortune Brands Home & Security, Inc.	14,778		807,322
			1,938,822
COMMUNICATIONS EQUIPMENT—2.2%
F5 Networks, Inc.*	7,163		989,998
Finisar Corp.*	22,783		623,799
Palo Alto Networks, Inc.*	2,530		389,190
Quantenna Communications, Inc.*	8,543		127,974
			2,130,961
CONSTRUCTION & FARM MACHINERY & HEAVY
TRUCKS—1.1%
Wabtec Corp.	12,975		1,003,097
CONSUMER FINANCE—0.3%
LendingClub Corp.*	63,731		314,194
DATA PROCESSING & OUTSOURCED SERVICES—4.5%
Euronet Worldwide, Inc.*	7,516		597,898
Fiserv, Inc.*	11,852		1,167,185
FleetCor Technologies, Inc.*	2,352		412,306
MAXIMUS, Inc.	12,975		675,478
Sabre Corp.	27,685		715,103
WNS Holdings Ltd.#*	25,504		701,360
			4,269,330
DISTILLERS & VINTNERS—0.4%
Constellation Brands Inc., Cl. A	2,359		394,236
ELECTRICAL COMPONENTS & EQUIPMENT—0.8%
Acuity Brands, Inc.	998		223,123
AMETEK, Inc.	12,453		549,177
			772,300
FINANCIAL EXCHANGES & DATA—3.1%
IntercontinentalExchange Group, Inc.	2,987		807,655
MarketAxess Holdings, Inc.	3,895		587,210
MSCI, Inc.	5,978		479,376
S&P Global, Inc.	8,595		1,047,301
			2,921,542
FOOD DISTRIBUTORS—1.1%
Performance Food Group Co.*	43,552		1,045,248
GENERAL MERCHANDISE STORES—1.6%
Dollar General Corp.	6,991		483,008
Dollar Tree, Inc.*	14,211		1,073,641
			1,556,649

- 24 -

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


COMMON STOCKS—(CONT.)	SHARES		VALUE
HEALTH CARE EQUIPMENT—6.7%
ABIOMED, Inc.*	9,690	$	1,017,353
Baxter International, Inc.	8,208		390,619
DexCom, Inc.*	17,370		1,359,029
Edwards Lifesciences Corp.*	12,158		1,157,685
IDEXX Laboratories, Inc.*	10,295		1,103,006
Insulet Corp.*	8,542		317,079
Masimo Corp.*	7,309		401,995
Nevro Corp.*	3,445		316,664
Obalon Therapeutics, Inc.*	19,939		257,811
			6,321,241
HEALTH CARE FACILITIES—1.8%
Amsurg Corp.*	9,255		552,986
Universal Health Services, Inc., Cl. B	2,400		289,704
VCA Antech, Inc.*	14,118		867,693
			1,710,383
HEALTH CARE TECHNOLOGY—0.8%
Medidata Solutions, Inc.*	16,013		768,464
HOME ENTERTAINMENT SOFTWARE—1.7%
Electronic Arts, Inc.*	20,208		1,586,732
HOTELS RESORTS & CRUISE LINES—3.0%
Carnival Corp.	18,441		905,453
Royal Caribbean Cruises Ltd.	25,621		1,969,486
			2,874,939
HOUSEHOLD PRODUCTS—1.1%
Church & Dwight Co., Inc.	22,141		1,068,525
HOUSEWARES & SPECIALTIES—2.4%
Newell Brands, Inc.	47,449		2,278,501
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.3%
WageWorks, Inc.*	4,446		262,092
INDUSTRIAL GASES—1.0%
Air Products & Chemicals, Inc.	6,923		923,667
INDUSTRIAL MACHINERY—0.5%
Colfax Corp.*	15,109		480,315
INTERNET SOFTWARE & SERVICES—3.4%
comScore, Inc.*	16,785		483,240
Cornerstone OnDemand, Inc.*	9,416		388,881
eBay, Inc.*	11,484		327,409
GrubHub, Inc.*	20,424		778,358
LogMeIn, Inc.	2,703		256,785
Palantir Technologies, Inc., Cl. A*^,@	12,426		95,059
Q2 Holdings, Inc.*	18,739		526,566
Stamps.com, Inc.*	3,695		360,447
			3,216,745
INVESTMENT BANKING & BROKERAGE—0.8%
TD Ameritrade Holding Corp.	21,051		720,155

- 25 -

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


COMMON STOCKS—(CONT.)	SHARES		VALUE
IT CONSULTING & OTHER SERVICES—1.0%
InterXion Holding NV*	24,285	$	904,131
LEISURE PRODUCTS—0.5%
Coach, Inc.	12,660		454,367
LIFE SCIENCES TOOLS & SERVICES—0.9%
Charles River Laboratories International, Inc.*	4,628		351,173
NanoString Technologies, Inc.*	14,111		274,459
Patheon NV*	10,616		269,540
			895,172
METAL & GLASS CONTAINERS—0.9%
Ball Corp.	11,614		895,091
OIL & GAS DRILLING—0.2%
Patterson-UTI Energy, Inc.	9,950		223,676
OIL & GAS EQUIPMENT & SERVICES—0.1%
Weatherford International PLC.*	23,411		112,841
OIL & GAS EXPLORATION & PRODUCTION—0.8%
PDC Energy, Inc.*	3,902		239,309
Pioneer Natural Resources Co.	2,642		472,971
			712,280
PACKAGED FOODS & MEATS—2.2%
ConAgra Foods, Inc.	10,907		525,499
Pinnacle Foods, Inc.	15,659		805,186
TreeHouse Foods, Inc.*	8,885		777,260
			2,107,945
PHARMACEUTICALS—0.8%
Aerie Pharmaceuticals, Inc.*	12,944		430,388
Akorn, Inc.*	6,624		158,645
Dermira, Inc.*	4,325		135,589
			724,622
REGIONAL BANKS—0.6%
Citizens Financial Group, Inc.	19,780		521,005
RESEARCH & CONSULTING SERVICES—1.5%
Verisk Analytics, Inc., Cl. A*	17,239		1,405,840
SEMICONDUCTOR EQUIPMENT—0.8%
Lam Research Corp.	7,547		731,002
SEMICONDUCTORS—5.2%
Broadcom Ltd.	9,873		1,681,174
Cavium Networks, Inc.*	11,467		647,312
Microsemi Corp.*	11,213		472,404
NXP Semiconductors NV*	9,556		955,600
Skyworks Solutions, Inc.	15,180		1,167,949
			4,924,439
SPECIALIZED CONSUMER SERVICES—1.1%
ServiceMaster Global Holdings, Inc.*	30,329		1,085,475

- 26 -

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


COMMON STOCKS—(CONT.)	SHARES		VALUE
SPECIALTY CHEMICALS—2.9%
Axalta Coating Systems Ltd.*	10,600	$	266,272
Balchem Corp.	7,756		588,680
International Flavors & Fragrances, Inc.	2,983		390,117
The Sherwin-Williams Co.	2,238		547,997
WR Grace & Co.	13,956		934,494
			2,727,560
SPECIALTY STORES—1.2%
Tractor Supply Co.	8,873		555,716
Ulta Salon, Cosmetics & Fragrance, Inc.*	2,450		596,183
			1,151,899
SYSTEMS SOFTWARE—3.1%
Fortinet, Inc.*	24,278		778,353
Proofpoint, Inc.*	5,632		441,436
ServiceNow, Inc.*	14,664		1,289,112
TubeMogul, Inc.*	58,160		424,568
			2,933,469
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—0.5%
Western Digital Corp.	8,717		509,421
TRADING COMPANIES & DISTRIBUTORS—1.5%
HD Supply Holdings, Inc.*	43,118		1,422,894
TRUCKING—0.8%
Old Dominion Freight Line, Inc.*	10,434		779,211
TOTAL COMMON STOCKS
(Cost $80,981,971)			83,467,684
PREFERRED STOCKS—2.2%	SHARES		VALUE
ADVERTISING—0.1%
Choicestream, Inc., Series A*^,@,(a)	77,008		–
Choicestream, Inc., Series B*^,@,(a)	144,793		85,428
			85,428
BIOTECHNOLOGY—1.2%
Prosetta Biosciences, Inc., Series D*^,@,(a)	166,009		670,677
Tolero Pharmaceuticals, Inc. Series B*^,@,(a)	354,870		457,782
			1,128,459
INTERNET SOFTWARE & SERVICES—0.5%
Palantir Technologies, Inc., Cl. B*^,@	50,675		387,664
Palantir Technologies, Inc., Cl. D*^,@	6,602		50,505
			438,169
PHARMACEUTICALS—0.4%
Intarcia Therapeutics, Inc., Series DD*^,@	7,588		432,819
TOTAL PREFERRED STOCKS
(Cost $2,589,818)			2,084,875

- 27 -

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


WARRANTS—0.0%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 6/22/26^@,(a)	17,128		$	16,785
(Cost $17,111)				16,785
REAL ESTATE INVESTMENT TRUST—3.4%	SHARES			VALUE
HEALTH CARE—0.5%
Omega Healthcare Investors, Inc.	13,610			433,206
MORTGAGE—0.5%
Blackstone Mortgage Trust, Inc., Cl. A	15,652			472,691
SPECIALIZED—2.4%
Crown Castle International Corp.	10,519			957,124
Lamar Advertising Co., Cl. A	21,427			1,359,543
				2,316,667
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $3,401,579)				3,222,564
	PRINCIPAL
CORPORATE BONDS—0.0%	AMOUNT			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 11.00%, 8/05/18^@,(a)	17,128			17,128
(Cost $2,080)				17,128
SPECIAL PURPOSE VEHICLE—0.3%	SHARES			VALUE
CONSUMER FINANCE—0.3%
JS Kred SPV I, LLC.^@	240,362			249,760
(Cost $240,362)				249,760
Total Investments
(Cost $87,232,921)^(b)	93.8	%		89,058,796
Other Assets in Excess of Liabilities	6.2	%		5,928,746
NET ASSETS	100.0	%	$	94,987,542

# American Depositary Receipts.
(a) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities Note 11.
^(b)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax
purposes of $87,213,641, amounted to $1,845,155 which consisted of aggregate gross unrealized appreciation of
$7,560,789 and aggregate gross unrealized depreciation of $5,715,634.
* Non-income producing security.

- 28 -

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

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


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Choicestream, Inc.	03/14/14	$	2,590	0.00	%	$	0	0.00	%
Choicestream, Inc., 11.00%,
8/05/18	08/04/16		2,080	0.00	%		17,128	0.02	%
Choicestream, Inc., 6/22/26	08/04/16		17,111	0.02	%		16,785	0.02	%
Choicestream, Inc., Cl. A	12/17/13		61,582	0.03	%		0	0.00	%
Choicestream, Inc., Cl. B	07/10/14		86,876	0.05	%		85,428	0.09	%
Intarcia Therapeutics, Inc., Series
DD	03/27/14		245,775	0.14	%		432,819	0.46	%
JS Kred SPV I, LLC.	06/26/15		240,362	0.15	%		249,760	0.26	%
Palantir Technologies, Inc., Cl. A	10/07/14		80,856	0.05	%		95,059	0.10	%
Palantir Technologies, Inc., Cl. B	10/07/14		334,629	0.22	%		387,664	0.41	%
Palantir Technologies, Inc., Cl. D	10/14/14		43,592	0.03	%		50,505	0.05	%
Prosetta Biosciences, Inc., Series D	02/06/15		747,041	0.50	%		670,677	0.71	%
Tolero Pharmaceuticals, Inc.	08/01/14		705,514	0.45	%		301,752	0.32	%
Tolero Pharmaceuticals, Inc.	10/31/14		364,809	0.23	%		156,030	0.16	%
Total						$	2,463,607	2.60	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 29 -

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


COMMON STOCKS—96.4%	SHARES			VALUE
AEROSPACE & DEFENSE—0.9%
Hexcel Corp.	34,962	$		1,590,421
APPAREL RETAIL—2.6%
American Eagle Outfitters, Inc.	119,160			2,030,487
Burlington Stores, Inc.*	37,311			2,796,086
				4,826,573
APPLICATION SOFTWARE—13.2%
American Software, Inc., Cl. A	357,665			3,730,446
Blackbaud, Inc.	59,880			3,676,632
Ellie Mae, Inc.*	19,807			2,097,363
Everbridge, Inc.*	55,347			814,708
Fair Isaac Corp.	12,344			1,489,674
Guidewire Software, Inc.*	34,915			2,005,867
HubSpot, Inc.*	34,870			1,828,932
Manhattan Associates, Inc.*	62,782			3,179,280
Tyler Technologies, Inc.*	34,178			5,482,151
			24,305,053
ASSET MANAGEMENT & CUSTODY BANKS—1.9%
WisdomTree Investments, Inc.	403,498			3,462,013
AUTOMOTIVE RETAIL—0.6%
Lithia Motors, Inc., Cl. A	11,904			1,021,125
BIOTECHNOLOGY—3.3%
ACADIA Pharmaceuticals, Inc.*	79,686			1,857,481
Halozyme Therapeutics, Inc.*	57,439			495,698
Heron Therapeutics, Inc.*	29,894			443,926
Ra Pharmaceuticals, Inc.*	14,069			180,787
TESARO, Inc.*	20,036			2,421,952
Ultragenyx Pharmaceutical, Inc.*	11,147			657,561
				6,057,405
BREWERS—0.4%
Craft Brew Alliance, Inc.*	48,181			773,305
BUILDING PRODUCTS—1.6%
Masonite International Corp.*	52,510			2,987,819
COMMUNICATIONS EQUIPMENT—1.4%
NetScout Systems, Inc.*	84,347			2,315,325
Quantenna Communications, Inc.*	16,594			248,578
				2,563,903
CONSUMER FINANCE—2.0%
LendingClub Corp.*	742,097			3,658,538
DATA PROCESSING & OUTSOURCED SERVICES—2.0%
Euronet Worldwide, Inc.*	26,716			2,125,258
MAXIMUS, Inc.	30,125			1,568,307
				3,693,565
ELECTRONIC COMPONENTS—0.6%
Dolby Laboratories Inc., Cl. A	21,512			1,023,756

- 30 -

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


COMMON STOCKS—(CONT.)	SHARES			VALUE
ELECTRONIC EQUIPMENT & INSTRUMENTS—3.6%
Cognex Corp.	92,810	$		4,788,996
FLIR Systems, Inc.	56,533			1,861,066
				6,650,062
FOOD DISTRIBUTORS—1.4%
Performance Food Group Co.*	105,742			2,537,808
HEALTH CARE EQUIPMENT—8.9%
Abaxis, Inc.	67,112			3,203,927
ABIOMED, Inc.*	31,552			3,312,645
Cantel Medical Corp.	64,117			4,567,054
Inogen, Inc.*	33,152			1,779,268
Obalon Therapeutics, Inc.*	38,956			503,701
STERIS PLC.	22,110			1,477,390
Tactile Systems Technology, Inc.*	88,991			1,580,925
			16,424,910
HEALTH CARE FACILITIES—2.9%
Amsurg Corp.*	25,795			1,541,251
Surgery Partners, Inc.*	64,855			1,044,166
VCA Antech, Inc.*	45,463			2,794,156
				5,379,573
HEALTH CARE SUPPLIES—5.6%
Endologix, Inc.*	77,345			809,029
Meridian Bioscience, Inc.	72,459			1,191,950
Neogen Corp.*	100,182			5,278,590
Quidel Corp.*	155,826			3,007,442
				10,287,011
HEALTH CARE TECHNOLOGY—5.9%
Medidata Solutions, Inc.*	75,356			3,616,334
Quality Systems, Inc.	92,412			1,191,191
Veeva Systems, Inc., Cl. A*	81,758			3,176,298
Vocera Communications, Inc.*	151,542			2,788,373
			10,772,196
HOME ENTERTAINMENT SOFTWARE—1.7%
Take-Two Interactive Software, Inc.*	70,474			3,128,341
HUMAN RESOURCE & EMPLOYMENT SERVICES—2.7%
On Assignment, Inc.*	49,056			1,688,017
WageWorks, Inc.*	54,675			3,223,091
				4,911,108
INDUSTRIAL MACHINERY—2.7%
Proto Labs, Inc.*	52,419			2,343,129
Sun Hydraulics Corp.	86,038			2,532,099
				4,875,228
INTERNET SOFTWARE & SERVICES—6.6%
GrubHub, Inc.*	112,712			4,295,454
NIC, Inc.	94,102			2,159,641
Nutanix, Inc., Cl. A*	1,651			40,449
Shopify, Inc., Cl. A*	12,851			532,674

- 31 -

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


COMMON STOCKS—(CONT.)	SHARES			VALUE
INTERNET SOFTWARE & SERVICES—(CONT.)
SPS Commerce, Inc.*	26,855	$		1,675,215
Stamps.com, Inc.*	35,801			3,492,388
			12,195,821
IT CONSULTING & OTHER SERVICES—1.1%
InterXion Holding NV*	54,261			2,020,137
LEISURE FACILITIES—0.7%
Planet Fitness, Inc., Cl. A*	60,939			1,291,907
LIFE SCIENCES TOOLS & SERVICES—4.5%
Bio-Techne Corp.	43,575			4,531,364
Luminex Corp.*	128,741			2,681,675
PRA Health Sciences, Inc.*	21,373			1,137,471
				8,350,510
MOVIES & ENTERTAINMENT—0.8%
Lions Gate Entertainment Corp.	72,915			1,484,549
OIL & GAS EQUIPMENT & SERVICES—0.7%
RPC, Inc.*	75,356			1,301,398
OIL & GAS EXPLORATION & PRODUCTION—0.6%
Parsley Energy, Inc., Cl. A*	33,579			1,104,749
PACKAGED FOODS & MEATS—0.9%
TreeHouse Foods, Inc.*	18,876			1,651,273
PHARMACEUTICALS—1.7%
Aerie Pharmaceuticals, Inc.*	25,771			856,886
Pacira Pharmaceuticals, Inc.*	40,028			1,272,890
The Medicines Co.*	29,249			963,755
				3,093,531
RESTAURANTS—3.0%
Shake Shack, Inc., Cl. A*	113,817			3,629,624
Wingstop, Inc.	68,125			1,823,025
				5,452,649
SEMICONDUCTORS—3.5%
Cavium Networks, Inc.*	30,125			1,700,556
Microsemi Corp.*	51,405			2,165,693
Monolithic Power Systems, Inc.	32,013			2,522,945
				6,389,194
SPECIALTY CHEMICALS—2.5%
Balchem Corp.	59,631			4,525,993
SPECIALTY STORES—0.8%
Five Below, Inc.*	41,538			1,560,998
SYSTEMS SOFTWARE—3.1%
Proofpoint, Inc.*	47,347			3,711,058
TubeMogul, Inc.*	279,245			2,038,488
				5,749,546
TOTAL COMMON STOCKS
(Cost $160,208,023)			177,101,968

- 32 -

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


PREFERRED STOCKS—1.9%	SHARES			VALUE
BIOTECHNOLOGY—0.6%
Prosetta Biosciences, Inc., Series D*^,@,(a)	133,263		$	538,383
Tolero Pharmaceuticals, Inc. Series B*^,@,(a)	448,284			578,286
				1,116,669
PHARMACEUTICALS—1.3%
Intarcia Therapeutics, Inc., Series DD*^,@	41,238			2,352,215
TOTAL PREFERRED STOCKS
(Cost $3,287,452)				3,468,884
RIGHTS—0.0%	SHARES			VALUE
BIOTECHNOLOGY—0%
Dyax Corp.* ^,@	21,650			–
Neuralstem, Inc., 1/8/2019*^,@	250,375			–
				–
TOTAL RIGHTS
(Cost $0)				–
REAL ESTATE INVESTMENT TRUST—1.8%	SHARES			VALUE
SPECIALIZED—1.8%
CyrusOne, Inc.	74,342			3,316,397
(Cost $2,511,768)				3,316,397
SPECIAL PURPOSE VEHICLE—0.5%	SHARES			VALUE
CONSUMER FINANCE—0.5%
JS Kred SPV I, LLC.^@	775,134			805,442
(Cost $775,134)				805,442
Total Investments
(Cost $166,782,377)^(b)	100.6	%	184,692,691
Liabilities in Excess of Other Assets	(0.6	)%		(1,042,289	)
NET ASSETS	100.0	%	$	183,650,402

- 33 -

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

^(a)Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities Note 11.
^(b)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $171,062,766, amounted to $13,629,925 which consisted of aggregate gross unrealized appreciation of
$30,438,843 and aggregate gross unrealized depreciation of $16,808,918.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition		Acquisition	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Intarcia Therapeutics, Inc., Series
DD	03/27/14	$	1,335,699	0.15	%	$	2,352,215	1.28	%
JS Kred SPV I, LLC.	06/26/15		775,134	0.15	%		805,442	0.44	%
Neuralstem, Inc.	01/03/14		0	0.00	%		0	0.00	%
Dyax Corp.	05/01/15		0	0.00	%		0	0.00	%
Dyax Corp.	08/14/15		0	0.00	%		0	0.00	%
Prosetta Biosciences, Inc., Series D	02/06/15		599,684	0.10	%		538,383	0.29	%
Tolero Pharmaceuticals, Inc.	10/31/14		1,352,069	0.20	%		578,286	0.32	%
Total						$	4,274,326	2.33	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 34 -

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


		Alger Capital			Alger Capital
		Appreciation		Appreciation Focus
	Institutional Fund				Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	3,387,161,011		$	71,832,927
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		2,613,149			310,373
Cash and cash equivalents		162,734,007			5,066,576
Receivable for investment securities sold		55,726,010			1,493,726
Receivable for shares of beneficial interest sold		6,912,710			148,749
Dividends and interest receivable		808,711			10,660
Receivable from Investment Manager		1,498			334
Prepaid expenses		378,152			54,752
Total Assets		3,616,335,248			78,918,097

LIABILITIES:
Payable for investment securities purchased		53,155,439			2,994,347
Payable for shares of beneficial interest redeemed		12,589,659			37,355
Accrued investment advisory fees		2,241,953			35,178
Accrued transfer agent fees		928,415			24,079
Accrued distribution fees		250,664			15,717
Accrued administrative fees		84,511			1,759
Accrued shareholder servicing fees		768,106			4,763
Accrued shareholder administrative fees		30,731			848
Accrued other expenses		274,198			39,001
Total Liabilities		70,323,676			3,153,047
NET ASSETS	$	3,546,011,572		$	75,765,050

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		3,142,903,083			73,576,008
Undistributed net investment income (accumulated loss)		(1,995,590	)		(201,584	)
Undistributed net realized gain (accumulated realized loss)		(23,479,544	)		(4,046,416	)
Net unrealized appreciation on investments		428,583,623			6,437,042
NET ASSETS	$	3,546,011,572		$	75,765,050
* Identified cost	$	2,958,150,591		$	65,360,546
** Identified cost	$	3,039,946		$	345,712
*See Notes to Financial Statements.*

- 35 -

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


		Alger Capital		Alger Capital
		Appreciation	Appreciation Focus
	Institutional Fund			Fund

NET ASSETS BY CLASS:
Class A	$	—	$	25,523,976
Class C	$	—	$	12,021,213
Class I	$	2,965,503,229	$	22,527,376
Class R	$	578,296,365	$	—
Class Z	$	—	$	15,692,485
Class Z-2	$	2,211,978	$	—

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		—		1,065,601
Class C		—		516,583
Class I		112,165,019		936,168
Class R		24,065,775		—
Class Z		—		645,751
Class Z-2		83,652		—

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	—	$	23.95
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	—	$	25.28
Class C — Net Asset Value Per Share Class C	$	—	$	23.27
Class I — Net Asset Value Per Share Class I	$	26.44	$	24.06
Class R — Net Asset Value Per Share Class R	$	24.03	$	—
Class Z — Net Asset Value Per Share Class Z	$	—	$	24.30
Class Z-2 — Net Asset Value Per Share Class Z-2	$	26.44	$	—
*See Notes to Financial Statements.*

- 36 -

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


					Alger Small Cap
	Alger Mid Cap Growth			Growth Institutional
	Institutional Fund				Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	87,810,989		$	183,576,022
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		1,247,807			1,116,669
Cash and cash equivalents		4,523,077			1,095,419
Receivable for investment securities sold		3,469,208			219,151
Receivable for shares of beneficial interest sold		179,518			243,584
Dividends and interest receivable		142,389			3,846
Receivable from Investment Manager		1,505			2,472
Prepaid expenses		25,076			83,192
Total Assets		97,399,569			186,340,355

LIABILITIES:
Payable for investment securities purchased		1,655,284			417,671
Payable for shares of beneficial interest redeemed		558,300			1,879,837
Accrued investment advisory fees		64,180			135,042
Accrued transfer agent fees		54,664			123,926
Accrued distribution fees		5,762			5,606
Accrued administrative fees		2,322			4,585
Accrued shareholder servicing fees		21,102			32,344
Accrued shareholder administrative fees		844			1,667
Accrued other expenses		49,569			89,275
Total Liabilities		2,412,027			2,689,953
NET ASSETS	$	94,987,542		$	183,650,402

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		374,764,657			177,926,129
Undistributed net investment income (accumulated loss)		(414,655	)		(1,414,336	)
Undistributed net realized gain (accumulated realized loss)		(281,188,335	)		(10,771,705	)
Net unrealized appreciation on investments		1,825,875			17,910,314
NET ASSETS	$	94,987,542		$	183,650,402
* Identified cost	$	85,245,318		$	164,830,624
** Identified cost	$	1,987,603		$	1,951,753
*See Notes to Financial Statements.*

- 37 -

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


				Alger Small Cap
	Alger Mid Cap Growth		Growth Institutional
	Institutional Fund			Fund

NET ASSETS BY CLASS:
Class I	$	81,781,953	$	129,187,966
Class R	$	13,092,442	$	12,674,748
Class Z-2	$	113,147	$	41,787,688

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class I		3,788,382		8,712,403
Class R		655,951		1,000,746
Class Z-2		5,241		2,816,009

NET ASSET VALUE PER SHARE:
Class I — Net Asset Value Per Share Class I	$	21.59	$	14.83
Class R — Net Asset Value Per Share Class R	$	19.96	$	12.67
Class Z-2 — Net Asset Value Per Share Class Z-2	$	21.59	$	14.84
*See Notes to Financial Statements.*

- 38 -

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


			Alger Capital			Alger Capital
			Appreciation		Appreciation Focus
		Institutional Fund				Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$		43,927,011		$	746,400
Interest from affiliated securities – Note 11			5,195			—
Interest			253,531			4,746
Total Income			44,185,737			751,146

EXPENSES:
Advisory fees — Note 3(a)			27,007,429			454,860
Distribution fees — Note 3(c)
Class A			—			65,508
Class C			—			94,942
Class R			3,019,847			—
Shareholder servicing fees — Note 3(k)			9,211,226			60,558
Shareholder administrative fees — Note 3(f)			368,456			9,429
Administration fees — Note 3(b)			1,013,254			19,549
Custodian fees			215,086			53,681
Transfer agent fees and expenses — Note 3(f)			2,126,664			59,461
Printing fees			269,032			12,122
Professional fees			228,993			31,489
Registration fees			129,550			69,867
Trustee fees — Note 3(g)			149,954			3,044
Fund accounting fees			484,583			13,419
Miscellaneous			164,215			6,957
Total Expenses			44,388,289			954,886
Less, expense reimbursements/waivers — Note 3(a)			(1,497	)		(77,154	)
Net Expenses			44,386,792			877,732
NET INVESTMENT LOSS			(201,055	)		(126,586	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on investments			37,369,675			(2,931,971	)
Net realized (loss) on foreign currency transactions			(26,235	)		—
Net change in unrealized appreciation (depreciation) on
investments and foreign currency			(44,333,940	)		3,016,621
Net realized and unrealized gain (loss) on investments and
foreign currency			(6,990,500	)		84,650
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$		(7,191,555	)	$	(41,936	)
* Foreign withholding taxes	$		185,581		$	(—)
*See Notes to Financial Statements.*

- 39 -

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


						Alger Small Cap
	Alger Mid Cap Growth				Growth Institutional
		Institutional Fund				Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$		1,142,966		$	1,543,832
Interest from affiliated securities – Note 11			177			—
Interest			6,709			2,892
Total Income			1,149,852			1,546,724

EXPENSES:
Advisory fees — Note 3(a)			867,237			2,100,027
Distribution fees — Note 3(c)
Class R			74,682			73,410
Shareholder servicing fees — Note 3(k)			285,265			632,243
Shareholder administrative fees — Note 3(f)			11,411			25,926
Administration fees — Note 3(b)			31,380			71,297
Custodian fees			48,926			57,233
Interest expenses			422			7,633
Transfer agent fees and expenses — Note 3(f)			104,328			184,077
Printing fees			8,400			31,640
Professional fees			41,944			50,169
Registration fees			4,624			78,999
Trustee fees — Note 3(g)			4,555			9,939
Fund accounting fees			15,985			33,021
Miscellaneous			10,416			19,649
Total Expenses			1,509,575			3,375,263
Less, expense reimbursements/waivers — Note 3(a)			(1,505	)		(5,044	)
Net Expenses			1,508,070			3,370,219
NET INVESTMENT LOSS			(358,218	)		(1,823,495	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized (loss) on investments			(1,167,951	)		(4,997,816	)
Net change in unrealized (depreciation) on investments and
foreign currency			(3,985,970	)		(11,918,205	)
Net realized and unrealized (loss) on investments and foreign
currency			(5,153,921	)		(16,916,021	)
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$		(5,512,139	)	$	(18,739,516	)
* Foreign withholding taxes	$		—		$	1,093
*See Notes to Financial Statements.*

- 40 -

THE ALGER INSTITUTIONAL FUNDS
Statements of Changes in Net Assets


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

Net investment loss	$	(201,055	)	$	(5,661,878	)
Net realized gain on investments and foreign currency		37,343,440			293,239,703
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		(44,333,940	)		25,070,288
Net increase (decrease) in net assets resulting from operations		(7,191,555	)		312,648,113

Dividends and distributions to shareholders from:
Net realized gains:
Class I		(229,560,756	)		(321,833,735	)
Class R		(50,476,174	)		(64,146,416	)
Total dividends and distributions to shareholders		(280,036,930	)		(385,980,151	)

Increase (decrease) from shares of beneficial interest transactions:
Class I		2,523,291			693,918,464
Class R		(22,254,736	)		144,649,699
Class Z-2		2,241,803			—
Net increase (decrease) from shares of beneficial interest
transactions — Note 6(a)		(17,489,642	)		838,568,163
Total increase (decrease)		(304,718,127	)		765,236,125

Net Assets:
Beginning of period		3,850,729,699			3,085,493,574
END OF PERIOD	$	3,546,011,572		$	3,850,729,699
Undistributed net investment income (accumulated loss)	$	(1,995,590	)	$	(9,105,013	)
*See Notes to Financial Statements.*

- 41 -

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


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

Net investment loss	$	(126,586	)	$	(42,037	)
Net realized gain (loss) on investments and foreign currency		(2,931,971	)		2,309,907
Net change in unrealized appreciation on investments and
foreign currency		3,016,621			1,268,548
Net increase (decrease) in net assets resulting from operations		(41,936	)		3,536,418

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(316,452	)		—
Class C		(87,313	)		—
Class I		(274,831	)		—
Class Z		(120,412	)		—
Total dividends and distributions to shareholders		(799,008	)		—

Increase (decrease) from shares of beneficial interest transactions:
Class A		1,889,920			16,877,719
Class C		5,527,847			3,632,471
Class I		(1,671,101	)		10,433,186
Class Z		12,186,549			2,241,175
Net increase from shares of beneficial interest transactions —
Note 6(a)		17,933,215			33,184,551

Redemption Fees:
Class A		—			180
Total Redemption Fees — Note 6(b)		—			180
Total increase		17,092,271			36,721,149

Net Assets:
Beginning of period		58,672,779			21,951,630
END OF PERIOD	$	75,765,050		$	58,672,779
Undistributed net investment income (accumulated loss)	$	(201,584	)	$	(164,935	)
*See Notes to Financial Statements.*

- 42 -

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


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

Net investment loss	$		(358,218	)	$	(930,358	)
Net realized gain (loss) on investments, options and foreign
currency			(1,167,951	)		6,170,964
Net change in unrealized depreciation on investments, options
and foreign currency			(3,985,970	)		(2,145,464	)
Net increase (decrease) in net assets resulting from operations			(5,512,139	)		3,095,142

Increase (decrease) from shares of beneficial interest transactions:
Class I			(28,525,268	)		(20,175,331	)
Class R			(3,868,604	)		(4,520,619	)
Class Z-2			115,000			—
Net decrease from shares of beneficial interest transactions
— Note 6(a)			(32,278,872	)		(24,695,950	)
Total decrease			(37,791,011	)		(21,600,808	)

Net Assets:
Beginning of period			132,778,553			154,379,361
END OF PERIOD	$		94,987,542		$	132,778,553
Undistributed net investment income (accumulated loss)	$		(414,655	)	$	(1,080,394	)
*See Notes to Financial Statements.*

- 43 -

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


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

Net investment loss	$		(1,823,495	)	$	(4,446,611	)
Net realized gain (loss) on investments and foreign currency			(4,997,816	)		116,168,863
Net change in unrealized depreciation on investments and
foreign currency			(11,918,205	)		(95,572,078	)
Net increase (decrease) in net assets resulting from operations			(18,739,516	)		16,150,174

Dividends and distributions to shareholders from:
Net realized gains:
Class I			(112,158,310	)		(115,227,005	)
Class R			(6,331,284	)		(5,978,217	)
Total dividends and distributions to shareholders			(118,489,594	)		(121,205,222	)

Increase (decrease) from shares of beneficial interest transactions:
Class I			(100,429,539	)		(202,968,640	)
Class R			1,229,629			(6,964,356	)
Class Z-2			44,313,480			—
Net decrease from shares of beneficial interest transactions
— Note 6(a)			(54,886,430	)		(209,932,996	)
Total decrease			(192,115,540	)		(314,988,044	)

Net Assets:
Beginning of period			375,765,942			690,753,986
END OF PERIOD	$		183,650,402		$	375,765,942
Undistributed net investment income (accumulated loss)	$		(1,414,336	)	$	(3,790,706	)
*See Notes to Financial Statements.*

- 44 -

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


Alger Capital Appreciation
Institutional Fund											Class I
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	28.48			$	29.34			$	28.21			$	22.85			$	20.88
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			0.02				(0.02	)			(0.02	)			0.16				0.09
Net realized and unrealized gain (loss)
on investments			(0.02	)			2.46				4.57				6.21				2.64
Total from investment operations			–				2.44				4.55				6.37				2.73
Dividends from net investment income			–				–				(0.01	)			(0.17	)			–
Distributions from net realized gains			(2.04	)			(3.30	)			(3.41	)			(0.84	)			(0.76	)
Net asset value, end of period		$	26.44			$	28.48			$	29.34			$	28.21			$	22.85
Total return			(0.08	)%			8.96	%			17.63	%			29.02	%			13.70	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	2,965,503			$	3,194,261			$	2,555,737			$	1,958,405			$	1,470,078
Ratio of gross expenses to average
net assets			1.12	%			1.12	%			1.16	%			1.19	%			1.19	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.12	%			1.12	%			1.16	%			1.19	%			1.19	%
Ratio of net investment income (loss) to
average net assets			0.07	%			(0.07	)%			(0.07	)%			0.65	%			0.41	%

Portfolio turnover rate			94.56	%		136.03		%(ii)		136.20%(iii)					124.43	%			137.16	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Amount excludes redemption in kind transaction of $294,638,130. Please see note 6 to the financial statements.
(iii) Amount excludes redemption in kind transaction of $71,436,408.
- 45 -

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


Alger Capital Appreciation
Institutional Fund											Class R
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	26.19			$	27.35			$	26.63			$	21.76			$	20.01
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.10	)			(0.15	)			(0.14	)			0.04				(0.02	)
Net realized and unrealized gain (loss)
on investments			(0.02	)			2.29				4.27				5.87				2.53
Total from investment operations			(0.12	)			2.14				4.13				5.91				2.51
Dividends from net investment income			–				–				–				(0.20	)			–
Distributions from net realized gains			(2.04	)			(3.30	)			(3.41	)			(0.84	)			(0.76	)
Net asset value, end of period		$	24.03			$	26.19			$	27.35			$	26.63			$	21.76
Total return			(0.57	)%			8.46	%			17.04	%			28.35	%			13.20	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	578,297			$	656,469			$	529,757			$	442,449			$	347,634
Ratio of gross expenses to average
net assets			1.61	%			1.61	%			1.64	%			1.69	%			1.69	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.61	%			1.61	%			1.64	%			1.69	%			1.69	%
Ratio of net investment income (loss) to
average net assets			(0.41	)%			(0.57	)%			(0.55	)%			0.17	%			(0.09	)%

Portfolio turnover rate			94.56	%		136.03		%(ii)		136.20%(iii)					124.43	%			137.16	%
*See Notes to Financial Statements.*

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


Alger Capital Appreciation
Institutional Fund	Class Z-2
	From 10/14/2016
	(commencement
	of operations) to
	10/31/2016		⁽ⁱ⁾
Net asset value, beginning of period	$	26.67
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾		0.01
Net realized and unrealized loss on
investments		(0.24	)
Total from investment operations		(0.23	)
Net asset value, end of period	$	26.44
Total return		(0.86	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	2,212
Ratio of gross expenses to average
net assets		3.11	%
Ratio of expense reimbursements to
average net assets		(2.16	)%
Ratio of net expenses to average net
assets		0.95	%
Ratio of net investment income (loss) to
average net assets		1.29	%
Portfolio turnover rate		94.56	%
*See Notes to Financial Statements.*

(i) Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
(ii) Amount was computed based on average shares outstanding during the period.
- 47 -

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

Alger Capital Appreciation Focus							Class A
Fund
													From 12/31/2012
												(commencement
			Year ended				Year ended			Year ended			of operations) to
		10/31/2016					10/31/2015			10/31/2014			10/31/2013⁽ⁱ⁾
Net asset value, beginning of period		$	24.13			$	22.01		$	18.69		$	14.70
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱⁱ⁾			(0.03	)			(0.02	)		(0.04	)		(0.01	)
Net realized and unrealized gain on
investments			0.12				2.14			3.36			4.00
Total from investment operations			0.09				2.12			3.32			3.99
Distributions from net realized gains			(0.27	)			–			–			–
Net asset value, end of period		$	23.95			$	24.13		$	22.01		$	18.69
Total return⁽ⁱⁱⁱ⁾			0.36	%			9.63	%		17.76	%		27.14	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	25,524			$	23,961			$	5,158		$	3,496
Ratio of gross expenses to average
net assets			1.26	%			1.48	%		2.38	%		2.49	%
Ratio of expense reimbursements to
average net assets			(0.07	)%			(0.18	)%		(1.08	)%		(1.19	)%
Ratio of net expenses to average net
assets			1.19	%			1.30	%		1.30	%		1.30	%
Ratio of net investment income (loss) to
average net assets			(0.13	)%			(0.08	)%		(0.19	)%		(0.09	)%
Portfolio turnover rate			127.40	%			182.58	%		153.69	%		166.61	%
*See Notes to Financial Statements.*

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


Alger Capital Appreciation Focus							Class C
Fund												From 12/31/2012
											(commencement
			Year ended			Year ended			Year ended			of operations) to
		10/31/2016				10/31/2015			10/31/2014			10/31/2013⁽ⁱ⁾
Net asset value, beginning of period		$	23.62		$	21.71		$	18.58		$	14.70
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱⁱ⁾			(0.20	)		(0.20	)		(0.19	)		(0.11	)
Net realized and unrealized gain on
investments			0.12			2.11			3.32			3.99
Total from investment operations			(0.08	)		1.91			3.13			3.88
Distributions from net realized gains			(0.27	)		–			–			–
Net asset value, end of period		$	23.27		$	23.62		$	21.71		$	18.58
Total return⁽ⁱⁱⁱ⁾			(0.36	)%		8.80	%		16.85	%		26.39	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	12,021			$	6,542		$	2,635		$	1,913
Ratio of gross expenses to average
net assets			2.03	%		2.25	%		3.14	%		3.27	%
Ratio of expense reimbursements to
average net assets			(0.10	)%		(0.20	)%		(1.09	)%		(1.22	)%
Ratio of net expenses to average net
assets			1.93	%		2.05	%		2.05	%		2.05	%
Ratio of net investment income (loss) to
average net assets			(0.87	)%		(0.85	)%		(0.94	)%		(0.83	)%
Portfolio turnover rate			127.40	%		182.58	%		153.69	%		166.61	%
*See Notes to Financial Statements.*

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


Alger Capital Appreciation Focus
Fund											Class I
		Year ended				Year ended				Year ended			Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014			10/31/2013				10/31/2012
Net asset value, beginning of period		$	24.23			$	22.07			$	18.72		$	14.53			$	13.75
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.02	)			0.01				(0.01	)		0.15				(0.03	)
Net realized and unrealized gain on
investments			0.12				2.15				3.36			4.04				0.81
Total from investment operations			0.10				2.16				3.35			4.19				0.78
Distributions from net realized gains			(0.27	)			–				–			–				–
Net asset value, end of period		$	24.06			$	24.23			$	22.07		$	18.72			$	14.53
Total return⁽ⁱⁱ⁾			0.40	%			9.79	%			17.90	%		28.84	%			5.70	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	22,527			$	24,487			$	12,897			$	8,684		$	15,101
Ratio of gross expenses to average
net assets			1.30	%			1.49	%			2.36	%		2.32	%			1.83	%
Ratio of expense reimbursements to
average net assets			(0.15	)%			(0.34	)%			(1.21	)%		(0.94	)%			–
Ratio of net expenses to average net
assets			1.15	%			1.15	%			1.15	%		1.38	%			1.83	%
Ratio of net investment income (loss) to
average net assets			(0.09	)%			0.03	%			(0.04	)%		0.95	%			(0.22	)%
Portfolio turnover rate			127.40	%			182.58	%			153.69	%		166.61	%			153.72	%
*See Notes to Financial Statements.*

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

- 50 -

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


Alger Capital Appreciation Focus							Class Z
Fund												From 12/31/2012
											(commencement
			Year ended			Year ended						of operations) to
		10/31/2016				10/31/2015			10/31/2014			10/31/2013 ⁽ⁱ⁾
Net asset value, beginning of period		$	24.41		$	22.17		$	18.75		$	14.70
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾			0.03			0.07			0.05			0.04
Net realized and unrealized gain on
investments			0.13			2.17			3.37			4.01
Total from investment operations			0.16			2.24			3.42			4.05
Distributions from net realized gains			(0.27	)		–			–			–
Net asset value, end of period		$	24.30		$	24.41		$	22.17		$	18.75
Total return⁽ⁱⁱⁱ⁾			0.64	%		10.10	%		18.24	%		27.55	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	15,693			$	3,683		$	1,262		$	128
Ratio of gross expenses to average
net assets			1.05	%		1.50	%		4.78	%		10.11	%
Ratio of expense reimbursements to
average net assets			(0.12	)%		(0.61	)%		(3.89	)%		(9.22	)%
Ratio of net expenses to average net
assets			0.93	%		0.89	%		0.89	%		0.89	%
Ratio of net investment income (loss) to
average net assets			0.12	%		0.30	%		0.23	%		0.32	%
Portfolio turnover rate			127.40	%		182.58	%		153.69	%		166.61	%
*See Notes to Financial Statements.*

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


Alger Mid Cap Growth Institutional
Fund											Class I
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	22.54			$	22.18			$	19.43			$	14.59			$	13.50
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.05	)			(0.13	)			(0.07	)			(0.03	)			–
Net realized and unrealized gain (loss)
on investments			(0.90	)			0.49				2.82				4.91				1.09
Total from investment operations			(0.95	)			0.36				2.75				4.88				1.09
Dividends from net investment income			–				–				–				(0.04	)			–
Net asset value, end of period		$	21.59			$	22.54			$	22.18			$	19.43			$	14.59
Total return			(4.21	)%			1.62	%			14.15	%			33.41	%			8.10	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	81,782			$	114,984			$	132,426			$	157,391			$	182,087
Ratio of gross expenses to average
net assets			1.25	%			1.20	%			1.30	%			1.29	%			1.23	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.25	%			1.20	%			1.30	%			1.29	%			1.23	%
Ratio of net investment income (loss) to
average net assets			(0.24	)%			(0.55	)%			(0.32	)%			(0.19	)%			0.02	%
Portfolio turnover rate			95.75	%			120.97	%			192.15	%			153.89	%			232.99	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.

- 52 -

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


Alger Mid Cap Growth Institutional
Fund											Class R
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	20.96			$	20.74			$	18.26			$	13.81			$	12.85
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.16	)			(0.23	)			(0.16	)			(0.11	)			(0.07	)
Net realized and unrealized gain (loss)
on investments			(0.84	)			0.45				2.64				4.63				1.03
Total from investment operations			(1.00	)			0.22				2.48				4.52				0.96
Dividends from net investment income			–				–				–				(0.07	)			–
Net asset value, end of period		$	19.96			$	20.96			$	20.74			$	18.26			$	13.81
Total return			(4.82	)%			1.11	%			13.58	%			32.83	%			7.50	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	13,093			$	17,795			$	21,953			$	23,599			$	26,661
Ratio of gross expenses to average
net assets			1.82	%			1.74	%			1.80	%			1.79	%			1.76	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.82	%			1.74	%			1.80	%			1.79	%			1.76	%
Ratio of net investment income (loss) to
average net assets			(0.81	)%			(1.08	)%			(0.82	)%			(0.69	)%			(0.50	)%
Portfolio turnover rate			95.75	%			120.97	%			192.15	%			153.89	%			232.99	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
- 53 -

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


Alger Mid Cap Growth Institutional
Fund	Class Z-2
	From 10/14/2016
	(commencement
	of operations) to
	10/31/2016		⁽ⁱ⁾
Net asset value, beginning of period	$	21.95
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾		0.04
Net realized and unrealized loss on
investments		(0.40	)
Total from investment operations		(0.36	)
Net asset value, end of period	$	21.59
Total return		(1.64	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	113
Ratio of gross expenses to average
net assets		32.21	%
Ratio of expense reimbursements to
average net assets		(31.16	)%
Ratio of net expenses to average net
assets		1.05	%
Ratio of net investment income (loss) to
average net assets		4.35	%
Portfolio turnover rate		95.75	%
*See Notes to Financial Statements.*

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


Alger Small Cap Growth
Institutional Fund											Class I
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	23.10			$	28.14			$	33.48			$	28.16			$	26.99
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.10	)			(0.20	)			(0.20	)			(0.11	)			(0.15	)
Net realized and unrealized gain (loss)
on investments			(0.54	)			0.42				0.60				8.66				2.45
Total from investment operations			(0.64	)			0.22				0.40				8.55				2.30
Distributions from net realized gains			(7.63	)			(5.26	)			(5.74	)			(3.23	)			(1.13	)
Net asset value, end of period		$	14.83			$	23.10			$	28.14			$	33.48			$	28.16
Total return			(3.76	)%			0.53	%			1.21	%			33.71	%			8.93	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	129,188			$	357,189			$	659,692			$	936,554			$	929,237
Ratio of gross expenses to average
net assets			1.28	%			1.25	%			1.24	%			1.25	%			1.23	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.28	%			1.25	%			1.24	%			1.25	%			1.23	%
Ratio of net investment income (loss) to
average net assets			(0.67	)%			(0.80	)%			(0.70	)%			(0.38	)%			(0.54	)%
Portfolio turnover rate			55.08	%			125.72	%			84.10	%			77.38	%			72.43	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
- 55 -

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


Alger Small Cap Growth
Institutional Fund											Class R
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	20.92			$	26.08			$	31.58			$	26.85			$	25.91
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.16	)			(0.29	)			(0.32	)			(0.23	)			(0.28	)
Net realized and unrealized gain (loss)
on investments			(0.46	)			0.39				0.56				8.19				2.35
Total from investment operations			(0.62	)			0.10				0.24				7.96				2.07
Distributions from net realized gains			(7.63	)			(5.26	)			(5.74	)			(3.23	)			(1.13	)
Net asset value, end of period		$	12.67			$	20.92			$	26.08			$	31.58			$	26.85
Total return			(4.22	)%			0.02	%			0.74	%			33.05	%			8.40	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	12,675			$	18,577			$	31,062			$	41,022			$	47,507
Ratio of gross expenses to average
net assets			1.80	%			1.74	%			1.72	%			1.73	%			1.73	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.80	%			1.74	%			1.72	%			1.73	%			1.73	%
Ratio of net investment income (loss) to
average net assets			(1.20	)%			(1.30	)%			(1.18	)%			(0.83	)%			(1.05	)%
Portfolio turnover rate			55.08	%			125.72	%			84.10	%			77.38	%			72.43	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.

- 56 -

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


Alger Small Cap Growth
Institutional Fund		Class Z-2
		From 8/1/2016
		(commencement
		of operations) to
		10/31/2016		⁽ⁱ⁾
Net asset value, beginning of period		$	15.35
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱⁱ⁾			(0.03	)
Net realized and unrealized loss on
investments			(0.48	)
Total from investment operations			(0.51	)
Net asset value, end of period		$	14.84
Total return			(3.32	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	41,787
Ratio of gross expenses to average
net assets			1.07	%
Ratio of expense reimbursements to
average net assets			(0.08	)%
Ratio of net expenses to average net
assets			0.99	%
Ratio of net investment income (loss) to
average net assets			(0.76	)%
Portfolio turnover rate			55.08	%

See Notes to Financial Statements.

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS

NOTE 1 — General:

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

Each Fund offers one or more of the following share classes: Class A, C, I, R, Z and
Z-2. Class A shares are generally subject to an initial sales charge while Class C shares
are generally subject to a deferred sales charge. Class I, R, Z and Z-2 shares are sold to
institutional investors without an initial or deferred sales charge. Each class has identical
rights to assets and earnings except that each share class bears the pro rata allocation of the
Fund’s expense other than a Class Expense (not including advisory or custodial fees or other
expenses related to the management of the Fund’s assets) to a share class.

The Alger Capital Appreciation Institutional Fund and Alger Mid Cap Growth Institutional
Fund started offering Class Z-2 shares on October 14, 2016 and Alger Small Cap Growth
Institutional Fund started offering Class Z-2 shares on August 1, 2016.

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

The industry classifications of the Funds’ investments, as presented in the accompanying
Schedules of Investments, represent management’s belief as to the most meaningful
presentation of the classification of such investments. For Fund compliance purposes, the
Funds’ industry classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or rating group indexes, with the
primary source being Global Industry Classification Standard (GICS).

Debt securities generally trade in the over-the-counter market. Debt securities with
remaining maturities of more than sixty days at the time of acquisition are valued on

- 58 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

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

Securities for which market quotations are not readily available are valued at fair value, as
determined in good faith pursuant to procedures established by the Board.

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

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

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

The Funds’ valuation techniques are generally consistent with either the market or the
income approach to fair value. The market approach considers prices and other relevant
information generated by market transactions involving identical or comparable assets
to measure fair value. The income approach converts future amounts to a current, or
- 59 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

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

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

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

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

(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars and overnight
time deposits.
(c) Securities Transactions and Investment Income: Securities transactions are recorded on a
trade date basis. Realized gains and losses from securities transactions are recorded on the
identified cost basis. Dividend income is recognized on the ex-dividend date and interest
income is recognized on the accrual basis.
Premiums and discounts on debt securities purchased are amortized or accreted over the
lives of the respective securities.

(d) Foreign Currency Translations: The books and records of the Funds are maintained in U.S.
dollars. Foreign currencies, investments and other assets and liabilities are translated into
U.S. dollars at the prevailing rates of exchange on the valuation date. Purchases and sales
of investment securities and income and expenses are translated into U.S. dollars at the
prevailing exchange rates on the respective dates of such transactions.

- 60 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

Net realized gains and losses on foreign currency transactions represent net gains and losses
from the disposition of foreign currencies, currency gains and losses realized between the
trade dates and settlement dates of security transactions, and the difference between the
amount of net investment income accrued and the U.S. dollar amount actually received.
The effects of changes in foreign currency exchange rates on investments in securities
are included in realized and unrealized gain or loss on investments in the accompanying
Statements of Operations.

(e) Lending of Fund Securities: The Funds may lend their securities to financial institutions,
provided that the market value of the securities loaned will not at any time exceed one
third of a Fund’s total assets, as defined in its prospectuses. The Funds earn fees on the
securities loaned, which are included in interest income in the accompanying Statements
of Operations. In order to protect against the risk of failure by the borrower to return the
securities loaned or any delay in the delivery of such securities, the loan is collateralized by
cash or securities that are maintained with the Custodian in an amount equal to at least 102
percent of the current market value of U.S. loaned securities or 105 percent for non-U.S.
loaned securities. The market value of the loaned securities is determined at the close of
business of the Fund. Any required additional collateral is delivered to the Custodian and
any excess collateral is returned to the borrower on the next business day. In the event the
borrower fails to return the loaned securities when due, the Funds may take the collateral
to replace the securities. If the value of the collateral is less than the purchase cost of
replacement securities, the Custodian shall be responsible for any shortfall, but only to
the extent that the shortfall is not due to any diminution in collateral value, as defined in
the securities lending agreement. The Funds are required to maintain the collateral in a
segregated account and determine its value each day until the loaned securities are returned.
Cash collateral may be invested as determined by the Funds. Collateral is returned to the
borrower upon settlement of the loan. There were no securities loaned as of October 31,
2016.
(f) Dividends to Shareholders: Dividends and distributions payable to shareholders are
recorded by the Funds on the ex-dividend date. Dividends from net investment income and
distributions from net realized gains are declared and paid annually after the end of the fiscal
year in which earned.
Each class is treated separately in determining the amounts of dividends from net investment
income payable to holders of its shares.

The characterization of distributions to shareholders for financial reporting purposes is
determined in accordance with federal income tax rules. Therefore, the source of a Fund’s
distributions may be shown in the accompanying financial statements as either from, or in
excess of, net investment income, net realized gain on investment transactions or return of
capital, depending on the type of book/tax differences that may exist. Capital accounts within
the financial statements are adjusted for permanent book/tax differences. Reclassifications
result primarily from the difference in tax treatment of net operating losses, passive foreign
investment companies, and foreign currency transactions. The reclassifications are done

- 61 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

annually at fiscal year end and have no impact on the net asset values of the Funds and are
designed to present each Fund’s capital accounts on a tax basis.

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

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


	Tier 1		Tier 2		Tier 3		Tier 4		Tier 5		Actual Rate
Alger Capital
Appreciation
Institutional
Fund^(a)	0.810	%	0.650	%	0.600	%	0.550	%	0.450	%	0.730	%
Alger Capital
Appreciation
Focus Fund^(b)	0.710		0.600		—		—		—		0.710

- 62 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	Tier 1	Tier 2	Tier 3	Tier 4	Tier 5	Actual Rate
Alger Mid Cap
Growth
Institutional
Fund^(b)	0.760	0.700	—	—	—	0.760
Alger Small
Cap Growth
Institutional
Fund^(b)	0.810	0.750	—	—	—	0.810

(a) Tier 1 rate is paid on assets up to $2 billion, Tier 2 rate is paid on assets between $2 to
$3 billion, Tier 3 rate is paid on assets in between $3 to $4 billion, Tier 4 rate is paid on
assets between $4 to $5 billion, and Tier 5 rate is paid on assets in excess of $5 billion.
(b) Tier 1 rate is paid on assets up to $1 billion and Tier 2 rate is paid on assets in excess of $1 billion.
Alger Management has established expense caps for several shares classes, effective through
May 31, 2017, for the Alger Capital Appreciation Focus Fund and October 13, 2017, for the
Alger Capital Appreciation Institutional Fund, Alger Mid Cap Growth Institutional Fund
and Alger Small Cap Growth Institutional Fund, whereby it reimburses the share classes if
annualized operating expenses (excluding interest, taxes, brokerage, dividend expenses and
extraordinary expenses) exceed the rates, based on average daily net assets, listed below:

FEES WAIVED /

REIMBURSED

FOR THE YEAR

CLASS

ENDED

OCTOBER 31,

Z-2

2016

Alger Capital Appreciation Institutional Fund

–

0.95

1,497

Alger Capital Appreciation Focus Fund*

1.15%

1.90%

1.15%

–

0.95

–

77,154

Alger Mid Cap Growth Institutional Fund

–

1.05

1,505

Alger Small Cap Growth Institutional Fund

–

0.99

5,044

*Prior to March 1, 2016, the expense cap for the Alger Capital Appreciation Focus Fund
Class A was 1.30%, Class C was 2.05% Class I was 1.15% and Class Z was 0.89%.

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

(b) Administration Fees: Fees incurred by each Fund, pursuant to the provisions of the Trust’s
Administration Agreement with Fred Alger Management, Inc., are payable monthly and
computed based on the average daily net assets of each Fund at the annual rate of 0.0275%.
(c) Distribution Fees:
Class A Shares: The Trust has adopted a Distribution Plan pursuant to which Class A shares
of Alger Capital Appreciation Focus Fund pay Fred Alger & Company, Incorporated, the
Fund’s distributor (the “Distributor” or “Alger Inc.”) and an affiliate of Alger Management,
a fee at the annual rate of 0.25% of the respective average daily net assets of the Class A
shares of the Fund to compensate Alger Inc. for its activities and expenses incurred in
- 63 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

distributing and servicing the Class A shares. The fees paid may be more or less than the
expenses incurred by Alger Inc.

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

Class R Shares: The Trust has adopted a Distribution Plan pursuant to which Class R
shares of each Fund issuing such shares pay Alger Inc. a fee at the annual rate of 0.50%
of the respective average daily net assets of the Class R shares of the designated Fund to
compensate Alger Inc. for its activities and expenses incurred in distributing and servicing
the Class R shares. The fees paid may be more or less than the expenses incurred by the
Distributor.

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


				CONTINGENT
	INITIAL SALES		DEFERRED SALES
		CHARGES		CHARGES
Alger Capital Appreciation Focus Fund	$	–	$	1,269

(e) Brokerage Commissions: During the year ended October 31, 2016, the Alger Capital
Appreciation Institutional Fund, Alger Capital Appreciation Focus Fund, Alger Mid Cap
Growth Institutional Fund and Alger Small Cap Growth Institutional Fund paid Alger Inc.
commissions of $1,032,491, $21,114, $27,919 and $68,965, respectively, in connection with
securities transactions.
(f) Shareholder Administrative Fees: The Trust has entered into a shareholder administrative
services agreement with Alger Management to compensate Alger Management for its liaison
and administrative oversight of Boston Financial Data Services, Inc., the transfer agent, and
other related services. The Funds compensate Alger Management at the annual rate of
0.0165% of their respective average daily net assets for the Class A and Class C shares and
0.01% of their respective average daily net assets of the Class I, Class R, Class Z and Class
Z-2 shares for these services.
Alger Management makes payments to intermediaries that provide sub-accounting services
to omnibus accounts invested in the Funds. A portion of the fees paid by Alger Management
to intermediaries that provide sub-accounting services are charged back to the appropriate
Fund, subject to certain limitations, as approved by the Trust’s Board of Trustees. For
the year ended October 31, 2016, Alger Management charged back to the Alger Capital
Appreciation Institutional Fund, Alger Capital Appreciation Focus Fund, Alger Mid Cap

- 64 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

Growth Institutional Fund, and Alger Small Cap Growth Institutional Fund, $1,325,403,
$23,932, $65,932 and $150,291, respectively, for these services, which are included in the
transfer agent fees and expenses in the accompanying Statements of Operations.

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

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


								Realized
	Purchases				Sales	Gain/(loss)
Alger Capital Appreciation
Institutional Fund		$	899,850		–			–
Alger Mid Cap Growth
Institutional Fund			94,830		–			–
Alger Small Cap Growth
Institutional Fund			–	$	608,470		$	(93,625	)

(i) Interfund Loans: The Funds, may borrow money from other Funds advised by Alger
Management for temporary or emergency purposes. If a fund has borrowed from other
funds and has aggregate borrowings from all sources that exceed 10% of the fund’s total
assets, such fund will secure all of its loans from other funds. The interest rate charged on
interfund loans is equal to the average of the overnight time deposit rate and bank loan rate
available to the funds. There were no interfund loans outstanding as of October 31, 2016.
During the year ended October 31, 2016, Alger Institutional Mid Cap Growth Fund and
Alger Small Cap Growth Institutional Fund incurred interest expense of $269 and $7,054,
respectively, in connection with interfund loans.

- 65 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

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


		SHARE CLASS
	A	C	Z	Z-2
Alger Capital Appreciation Institutional Fund	—	—	—	3,750
Alger Capital Appreciation Focus Fund	6,878	6,880	35,366	—
Alger Mid Cap Growth Institutional Fund	—	—	—	4,556
Alger Small Cap Growth Institutional Fund	—	—	—	6,515

with Alger Inc. whereby Alger Inc. provides Class I shares and Class R shares of the Trust
with ongoing servicing of shareholder accounts. As compensation for such services, the
Class I shares and Class R shares of each Fund pay Alger Inc. a monthly fee at an annual
rate of 0.25% of the value of the average daily net assets of those classes. The fees paid
may be more or less than the expenses incurred by the Distributor.
NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by the Funds other than short-term
securities for the year ended October 31, 2016:


		PURCHASES		SALES
Alger Capital Appreciation Institutional Fund	$	3,363,419,040	$	3,572,404,147
Alger Capital Appreciation Focus Fund		101,644,372		86,070,180
Alger Mid Cap Growth Institutional Fund		106,510,587		137,774,984
Alger Small Cap Growth Institutional Fund		143,761,490		311,760,845

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

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


	AVERAGE DAILY		WEIGHTED AVERAGE
		BORROWING		INTEREST RATE
Alger Mid Cap Growth Institutional Fund	$	28,397		1.65	%
Alger Small Cap Growth Institutional Fund		581,933		1.33

- 66 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

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


	HIGHEST BORROWING
Alger Mid Cap Growth Institutional Fund	$	1,111,000
Alger Small Cap Growth Institutional Fund		14,611,000

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


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES				AMOUNT
Alger Capital Appreciation Institutional Fund
Class I:
Shares sold	31,404,149		$	813,769,276		50,542,053		$	1,431,830,828
Dividends reinvested	8,328,490			222,703,812		11,586,846				312,381,372
Shares redeemed	(39,710,653	)	(1,033,949,797		)	(37,104,435	)		(1,050,293,736		)
Net increase	21,986		$	2,523,291		25,024,464			$	693,918,464
Class R:
Shares sold	4,897,737		$	116,200,047		9,057,734			$	233,025,489
Dividends reinvested	1,958,801			47,814,339		2,422,309				60,291,275
Shares redeemed	(7,855,308	)	(186,269,122		)	(5,783,826	)		(148,667,065		)
Net increase (decrease)	(998,770	)	$	(22,254,736	)	5,696,217			$	144,649,699
Class Z-2:
Shares sold	83,652		$	2,241,803		—			$	—
Net increase	83,652		$	2,241,803		—			$	—

- 67 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Capital Appreciation Focus Fund
Class A:
Shares sold	739,124		$	17,427,842		1,183,661		$	26,976,396
Dividends reinvested	12,944			312,984		—			—
Shares redeemed	(679,452	)		(15,850,906	)	(425,035	)		(10,098,497	)
Net increase	72,616		$	1,889,920		758,626		$	16,877,899
Class C:
Shares sold	319,341		$	7,354,428		178,046		$	4,152,257
Dividends reinvested	3,659			86,524		—			—
Shares redeemed	(83,332	)		(1,913,105	)	(22,530	)		(519,786	)
Net increase	239,668		$	5,527,847		155,516		$	3,632,471
Class I:
Shares sold	477,738		$	11,361,669		827,893		$	19,755,163
Dividends reinvested	9,363			227,418		—			—
Shares redeemed	(561,466	)		(13,260,188	)	(401,861	)		(9,321,977	)
Net increase (decrease)	(74,365	)	$	(1,671,101	)	426,032		$	10,433,186
Class Z:
Shares sold	787,965		$	19,023,071		119,545		$	2,843,126
Dividends reinvested	4,919			120,412		—			—
Shares redeemed	(298,013	)		(6,956,934	)	(25,582	)		(601,951	)
Net increase	494,871		$	12,186,549		93,963		$	2,241,175

Alger Mid Cap Growth Institutional Fund
Class I:
Shares sold	468,253		$	10,046,363		902,649		$	21,241,975
Shares redeemed	(1,780,941	)		(38,571,631	)	(1,770,784	)		(41,417,306	)
Net decrease	(1,312,688	)	$	(28,525,268	)	(868,135	)	$	(20,175,331	)
Class R:
Shares sold	134,848		$	2,706,730		203,467		$	4,468,737
Shares redeemed	(327,778	)		(6,575,334	)	(412,966	)		(8,989,356	)
Net decrease	(192,930	)	$	(3,868,604	)	(209,499	)	$	(4,520,619	)
Class Z-2:
Shares sold	5,241		$	115,000		—		$	—
Net increase	5,241		$	115,000		—		$	—

- 68 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Small Cap Growth Institutional Fund
Class I:
Shares sold	2,557,038		$	40,363,890		2,831,473		$	69,667,841
Dividends reinvested	7,154,149			109,458,479		4,775,991			111,758,197
Shares redeemed	(16,460,370	)	(250,251,908		)	(15,587,700	)	(384,394,678		)
Net decrease	(6,749,183)		$	(100,429,539)		(7,980,236)		$	(202,968,640)
Class R:
Shares sold	182,259		$	2,391,486		227,162		$	5,071,784
Dividends reinvested	449,925			5,907,509		259,849			5,532,180
Shares redeemed	(519,276	)		(7,069,366	)	(790,204	)		(17,568,320	)
Net increase (decrease)	112,908		$	1,229,629		(303,193)		$	(6,964,356	)
Class Z-2:
Shares sold	2,959,159		$	46,531,746		—		$	—
Shares redeemed	(143,150	)		(2,218,266	)	—			—
Net increase	2,816,009		$	44,313,480		—		$	—

(b) Redemption Fee: Prior to March 1, 2015, the Alger Capital Appreciation Focus Fund
imposed a 2.00% redemption fee on certain Class A and Class C Fund shares redeemed
(including shares redeemed by exchange) within 30 days after such shares were acquired.
Since March 1, 2015, the redemption fee is no longer imposed.
During the year ended October 31, 2015, shares redeemed for the Class I shares of Alger
Capital Appreciation Institutional Fund include redemption-in-kind transactions of
10,621,246 shares valued at $307,755,100. The Fund had realized gains on these transactions
of $47,725,674.

NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2016 and the year
ended October 31, 2015 were as follows:


	FOR THE YEAR ENDED		FOR THE YEAR ENDED
	OCTOBER 31, 2016		OCTOBER 31, 2015
Alger Capital Appreciation Institutional Fund
Distributions paid from:
Ordinary Income		—	$	63,722,024
Long-term capital gain	$	280,036,930		322,258,127
Total distributions paid	$	280,036,930	$	385,980,151

- 69 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED		FOR THE YEAR ENDED
	OCTOBER 31, 2016		OCTOBER 31, 2015
Alger Capital Appreciation Focus Fund
Distributions paid from:
Ordinary Income		—		—
Long-term capital gain		799,008		—
Total distributions paid	$	799,008		—

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

Alger Small Cap Growth Institutional Fund
Distributions paid from:
Ordinary Income		—		—
Long-term capital gain		118,489,594		121,205,222
Total distributions paid	$	118,489,594	$	121,205,222

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


Alger Capital Appreciation Institutional Fund
Undistributed ordinary income		—
Undistributed long-term gains	$	25,628,298
Net accumulated earnings		25,628,298
Capital loss carryforwards		—
Late year ordinary income losses		(1,333,556	)
Net unrealized appreciation		378,813,747
Total accumulated earnings	$	403,108,489

Alger Capital Appreciation Focus Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(1,858,285	)
Late year ordinary income losses		(188,552	)
Net unrealized appreciation		4,235,878
Total accumulated earnings	$	2,189,041

- 70 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Mid Cap Growth Institutional Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(281,207,615	)
Late year ordinary income losses		(414,655	)
Net unrealized appreciation		1,845,156
Total accumulated losses	$	(279,777,114	)

Alger Small Cap Growth Institutional Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(6,331,009	)
Late year ordinary income losses		(1,574,643	)
Net unrealized appreciation		13,629,925
Total accumulated earnings	$	5,724,273

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


	Alger Capital		Alger Capital			Alger Mid		Alger Small
	Appreciation		Appreciation Focus			Cap Growth		Cap Growth
Expiration Dates	Institutional Fund			Fund	Institutional Fund		Institutional Fund
POST ACT		—	$	1,858,285	$	1,083,689	$	6,331,009
2017		—		—		280,123,926		—
Total		—		1,858,285		281,207,615		6,331,009

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

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

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

- 71 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

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


Alger Capital Appreciation Institutional Fund
Accumulated undistributed net investment income (accumulated loss)	$	7,310,478
Accumulated net realized gain (accumulated realized loss)	$	3,019,783
Paid-in Capital	$	(10,330,261	)

Alger Capital Appreciation Focus Fund
Accumulated undistributed net investment income (accumulated loss)	$	89,937
Accumulated net realized gain (accumulated realized loss)	$	113,663
Paid-in Capital	$	(203,600	)

Alger Mid Cap Growth Institutional Fund
Accumulated undistributed net investment income (accumulated loss)	$	1,023,957
Accumulated net realized gain (accumulated realized loss)	$	168,771
Paid-in Capital	$	(1,192,728	)

Alger Small Cap Growth Institutional Fund
Accumulated undistributed net investment income (accumulated loss)	$	4,199,865
Accumulated net realized gain (accumulated realized loss)	$	105,948
Paid-in Capital	$	(4,305,813	)

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


Alger Capital Appreciation
Institutional Fund		TOTAL FUND		LEVEL 1	LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	$	592,288,699	$	592,288,699	—		—*
Consumer Staples		236,408,268		236,408,268	—		—
Energy		60,622,775		60,622,775	—		—
Financials		56,737,597		56,737,597	—		—
Health Care		544,690,277		544,690,277	—		—
Industrials		264,846,926		264,846,926	—		—
Information Technology		1,479,757,123		1,477,928,544	—		1,828,579
Materials		50,404,711		50,404,711	—		—
Telecommunication Services		13,073,348		13,073,348	—		—
TOTAL COMMON STOCKS	$	3,298,829,724	$	3,297,001,145	—	$	1,828,579

- 72 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Capital Appreciation
Institutional Fund			TOTAL FUND				LEVEL 1	LEVEL 2			LEVEL 3
CORPORATE BONDS
Consumer Discretionary				574,662			—		—		574,662
MASTER LIMITED PARTNERSHIP
Financials			31,512,570			31,512,570			—		—
PREFERRED STOCKS
Consumer Discretionary				1,475,318			—		—		1,475,318	*
Health Care				6,368,801			—		—		6,368,801
Information Technology				8,429,137			—		—		8,429,137
TOTAL PREFERRED STOCKS		$		16,273,256			—		—	$	16,273,256
REAL ESTATE INVESTMENT TRUST
Financials			17,905,972			17,905,972			—		—
Real Estate			24,114,807			24,114,807			—		—
TOTAL REAL ESTATE
INVESTMENT TRUST		$		42,020,779		$	42,020,779		—		—
WARRANTS
Consumer Discretionary				563,169			—		—		563,169
TOTAL INVESTMENTS IN
SECURITIES	$	3,389,774,160			$	3,370,534,494			—	$	19,239,666

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


Alger Capital Appreciation Focus
Fund		TOTAL FUND				LEVEL 1	LEVEL 2			LEVEL 3
COMMON STOCKS
Consumer Discretionary	$		12,294,275	$	12,294,275			—		—
Consumer Staples			4,039,096			4,039,096		—		—
Energy			1,601,840			1,601,840		—		—
Financials			1,266,570			1,266,570		—		—
Health Care		10,691,733			10,691,733			—		—
Industrials			5,211,787			5,211,787		—		—
Information Technology		33,580,980			33,580,980			—		—
Materials			545,688			545,688		—		—
Telecommunication Services			278,223			278,223		—		—
TOTAL COMMON STOCKS	$		69,510,192		$	69,510,192		—		—
MASTER LIMITED PARTNERSHIP
Financials			886,913			886,913		—		—
PREFERRED STOCKS
Health Care			310,373			—		—		310,373
REAL ESTATE INVESTMENT TRUST
Real Estate			1,435,822			1,435,822		—		—
TOTAL INVESTMENTS IN
SECURITIES	$		72,143,300		$	71,832,927		—	$	310,373

- 73 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Mid Cap Growth Institutional
Fund		TOTAL FUND				LEVEL 1	LEVEL 2			LEVEL 3
COMMON STOCKS
Consumer Discretionary	$		18,436,122	$	18,436,122			—		—*
Consumer Staples			4,615,954			4,615,954		—		—
Energy			1,048,797			1,048,797		—		—
Financials			4,476,896			4,476,896		—		—
Health Care		14,252,685			14,252,685			—		—
Industrials		11,761,430			11,761,430			—		—
Information Technology		23,224,001			23,128,942			—		95,059
Materials			4,546,318			4,546,318		—		—
Telecommunication Services			1,105,481			1,105,481		—		—
TOTAL COMMON STOCKS	$		83,467,684		$	83,372,625		—	$	95,059
CORPORATE BONDS
Consumer Discretionary			17,128			—		—		17,128
PREFERRED STOCKS
Consumer Discretionary			85,428			—		—		85,428	*
Health Care			1,561,278			—		—		1,561,278
Information Technology			438,169			—		—		438,169
TOTAL PREFERRED STOCKS	$		2,084,875			—		—	$	2,084,875
REAL ESTATE INVESTMENT TRUST
Financials			472,691			472,691		—		—
Real Estate			2,749,873			2,749,873		—		—
TOTAL REAL ESTATE
INVESTMENT TRUST	$		3,222,564		$	3,222,564		—		—
SPECIAL PURPOSE VEHICLE
Financials			249,760			—		—		249,760
WARRANTS
Consumer Discretionary			16,785			—		—		16,785
TOTAL INVESTMENTS IN
SECURITIES	$		89,058,796		$	86,595,189		—	$	2,463,607

* Alger Mid Cap Growth Institutional Fund’s shares of Choicestream Inc. common stock
and preferred stock are classified as a Level 3 investment and are fair valued at zero as of
October 31, 2016


Alger Small Cap Growth Institutional
Fund		TOTAL FUND				LEVEL 1	LEVEL 2	LEVEL 3
COMMON STOCKS
Consumer Discretionary	$	15,637,801		$	15,637,801		—	—
Consumer Staples			4,962,386			4,962,386	—	—
Energy			2,406,147			2,406,147	—	—
Financials			7,120,551			7,120,551	—	—
Health Care		60,365,136			60,365,136		—	—
Industrials		14,364,576			14,364,576		—	—
Information Technology		67,719,378			67,719,378		—	—
Materials			4,525,993			4,525,993	—	—
TOTAL COMMON STOCKS		$	177,101,968		$	177,101,968	—	—

- 74 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Small Cap Growth Institutional
Fund		TOTAL FUND			LEVEL 1	LEVEL 2		LEVEL 3
PREFERRED STOCKS
Health Care			3,468,884		—	—		3,468,884
REAL ESTATE INVESTMENT TRUST
Real Estate			3,316,397		3,316,397	—		—
RIGHTS
Health Care			—		—	—*		—**
SPECIAL PURPOSE VEHICLE
Financials			805,442		—	—		805,442
TOTAL INVESTMENTS IN
SECURITIES	$		184,692,691	$	180,418,365	—	$	4,274,326

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

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


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Capital Appreciation Institutional Fund	Common Stocks
Opening balance at November 1, 2015	$	2,203,626
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		(375,047	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		1,828,579
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	(375,047	)

- 75 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Capital Appreciation Institutional Fund	Corporate Bonds
Opening balance at November 1, 2015	$	–
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		574,087
Purchases and sales		–
Purchases		575
Sales		–
Closing balance at October 31, 2016		574,662
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	574,087

Alger Capital Appreciation Institutional Fund	Preferred Stocks
Opening balance at November 1, 2015	$	15,625,491
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		647,765
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		16,273,256
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	647,765

- 76 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Capital Appreciation Institutional Fund		Warrants
Opening balance at November 1, 2015	$	–
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		(10,918	)
Purchases and sales		–
Purchases		574,087
Sales		–
Closing balance at October 31, 2016		563,169
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	(10,918	)

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Capital Appreciation Focus Fund	Preferred Stocks
Opening balance at November 1, 2015	$	345,713
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		(35,340	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		310,373
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	(35,340	)

- 77 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Mid Cap Growth Institutional Fund	Common Stocks
Opening balance at November 1, 2015	$	115,585
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		(20,526	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		95,059
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	(20,526	)

Alger Mid Cap Growth Institutional Fund	Corporate Bonds
Opening balance at November 1, 2015	$	–
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		17,111
Purchases and sales		–
Purchases		17
Sales		–
Closing balance at October 31, 2016		17,128
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	17,111

- 78 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Mid Cap Growth Institutional Fund	Preferred Stocks
Opening balance at November 1, 2015	$	2,711,929
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		(627,054	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		2,084,875
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	(627,054	)

	Special Purpose
Alger Mid Cap Growth Institutional Fund		Vehicle
Opening balance at November 1, 2015	$	240,362
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		9,398
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		249,760
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	9,398

- 79 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Mid Cap Growth Institutional Fund		Warrants
Opening balance at November 1, 2015	$	–
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		(326	)
Purchases and sales		–
Purchases		17,111
Sales		–
Closing balance at October 31, 2016		16,785
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	(326	)

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Small Cap Growth Institutional Fund	Preferred Stocks
Opening balance at November 1, 2015	$	3,505,601
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		(36,717	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		3,468,884
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	(36,717	)

- 80 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Small Cap Growth Institutional Fund		Rights
Opening balance at November 1, 2015	$	–*
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		–
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		–
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	–*
*Alger Small Cap Growth Institutional Fund’s Level 3 rights are fair valued at zero at the beginning
and ending of the period.
	Special Purpose
Alger Small Cap Growth Institutional Fund		Vehicle
Opening balance at November 1, 2015	$	775,134
Transfers into Level 3		–
Transfers out of Level 3		–
Total gains or losses
Included in net realized gain (loss) on investments		–
Included in net unrealized gain (loss) on investments		30,308
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		805,442
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2016	$	30,308

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

- 81 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


		Fair Value	Valuation	Unobservable		Weighted Average
		Methodology	October 31, 2016	Input	Input/Range	Inputs
Alger Capital Appreciation Institutional Fund
Common Stocks	$	-	Income	Discount Rate	40%	N/A
			Approach
Common Stocks		1,828,579	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Preferred Stocks		1,475,318	Income	Discount Rate	40%	N/A
			Approach
Preferred Stocks		6,368,801	Market	Scenario	80 to 100%	N/A
			Approach	Probability
				Time to Exit	1.0-2.5 Years
				Volatility	67.8%
Preferred Stocks		8,429,137	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Warrants		563,169	Income	Discount Rate	40%	N/A
			Approach
Corporate Bonds		574,662	Income	Discount Rate	40%	N/A
			Approach
Alger Capital Appreciation Focus Fund
Preferred Stocks	$	310,373	Income	Discount Rate	35.5-39.5%	N/A
			Approach

Alger Mid Cap Growth Institutional Fund
Common Stocks	$	-	Income	Discount Rate	40%	N/A
			Approach
Common Stocks		95,059	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Preferred Stocks		85,428	Income	Discount Rate	40%
			Approach
Preferred Stocks		1,128,459	Income	Discount Rate	20.5-39.5%	30.7	%
			Approach
Preferred Stocks		438,169	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3 Years
Preferred Stocks		432,819	Market	Scenario	80 to 100%	N/A
			Approach	Probability
				Time to Exit	1.0-2.5 Years

- 82 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


			Volatility	67.8%
Special Purpose Vehicle	249,760	Market	Revenue Multiple	2.6x-3.1x	N/A
		Approach
Warrants	16,785	Income	Discount Rate	40%	N/A
		Approach
Corporate Bonds	17,128	Income	Discount Rate	40%	N/A
		Approach
Alger Small Cap Growth Institutional Fund

Preferred Stocks	1,116,669	Income	Discount Rate	20.5-39.5%	28.9%
		Approach
Preferred Stocks	2,352,215	Market	Scenario	80 to 100%	N/A
		Approach	Probability
			Time to Exit	1.0-2.5 Years
			Volatility	67.8
Special Purpose Vehicle	805,442	Market	Revenue Multiple	2.6x-3.1x	N/A
		Approach

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

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

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


		TOTAL FUND		LEVEL 1			LEVEL 2	LEVEL 3
Cash, Foreign cash and Cash equivalents:
Alger Capital Appreciation Institutional Fund	$	162,734,006		—	$	162,734,006			—
Alger Capital Appreciation Focus Fund			5,066,576	—			5,066,576		—
Alger Mid Cap Growth Institutional Fund			4,523,077	—			4,523,077		—
Alger Small Cap Growth Institutional Fund			1,095,419	—			1,095,419		—

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

Options— The Funds seek to capture the majority of the returns associated with equity
market investments. To meet this investment goal, the Funds invest in a broadly diversified
portfolio of common stocks, while also buying and selling call and put options on equities

- 83 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

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

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

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

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

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

- 84 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

approximated by its value recorded in the Statement of Assets and Liabilities, less any
collateral held by the Funds.

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

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

- 85 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)

Shares/Par

Realized

Value at

October 31,

Purchases/

Sales/

October

Gain

October

Security

2015

Conversion

31, 2016

Interest Income

(Loss)

31, 2016

Alger Capital Appreciation Institutional Fund

Common Stocks

Choicestream, Inc.*

124,658

–

124,658

–

Preferred Stocks

Choicestream, Inc.

Series A and B*

3,575,473

–

– 3,575,473

–

1,475,318

Corporate Bonds

Choicestream, Inc.,

11.0%, 8/05/18

–

574,662

–

574,662

5,195

–

574,662

Warrants

Choicestream, Inc.,

6/22/26*

–

574,662

–

574,662

–

563,169

Alger Capital Appreciation Focus Fund

Preferred Stocks

Prosetta

Biosciences, Inc.,

Series D*

76,825

–

76,825

–

310,373

Shares/Par

Realized

Value at

October 31,

Purchases/

Sales/

October 31,

Interest

Gain

October 31,

Security

2015

Conversion

2016

Income

(Loss)

2016

Alger Mid Cap Growth Institutional Fund

Common Stocks

Choicestream, Inc.*

8,930

–

8,930

–

Preferred Stocks

Choicestream, Inc.

Series A and B*

221,801

–

221,801

–

85,428

Prosetta Biosciences,

Inc., Series D*

166,009

–

166,009

–

670,677

Tolero

Pharmaceuticals, Inc.

Series B*

354,870

–

354,870

–

457,782

Corporate Bonds

Choicestream, Inc.,

11.0%, 8/05/18

–

17,128

–

17,128

177

–

17,128

Warrants

Choicestream, Inc.,

6/22/26*

–

17,128

–

17,128

–

16,785

- 86 -

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Small Cap Growth Institutional Fund
Preferred Stocks
Prosetta Biosciences,
Inc., Series D*	133,263	–	–	133,263	–	–	538,383
Tolero
Pharmaceuticals, Inc.
Series B*	448,284	–	–	448,284	–	–	578,286
* *Non-income producing security.*

NOTE 12 — Subsequent Events:
Management of each Fund has evaluated events that have occurred subsequent to October
31, 2016 through the issuance date of the Financial Statements. No such events have been
identified which require recognition and/or disclosure.

- 87 -

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of The Alger Institutional Funds and the Shareholders of the
Alger Capital Appreciation Institutional Fund, Alger Capital Appreciation Focus Fund,
Alger Mid Cap Growth Institutional Fund, and Alger Small Cap Growth Institutional Fund:

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

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

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

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

- 88 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited)

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

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

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

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

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

- 89 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


									Annualized
						Expenses			Expense Ratio
						Paid During				For the
		Beginning			Ending	the Six Months			Six Months
			Account		Account		Ended			Ended
			Value		Value	October 31,			October 31,
		May 1, 2016			October 31, 2016		2016	^(a)		2016	^(b)
Alger Capital Appreciation Institutional Fund
Class I	Actual	$	1,000.00	$	1,042.17	$	5.80			1.12	%
	Hypothetical^(c)		1,000.00		1,019.46		5.74			1.12
Class R	Actual		1,000.00		1,039.81		8.26			1.61
	Hypothetical^(c)		1,000.00		1,017.04		8.16			1.61
Class Z-2	Actual		1,000.00		991.38		4.40			0.95
	Hypothetical^(c)		1,000.00		1,020.71		4.47			0.95

Alger Capital Appreciation Focus Fund
Class A	Actual	$	1,000.00	$	1,049.06	$	6.13			1.19	%
	Hypothetical^(c)		1,000.00		1,019.15		6.04			1.19
Class C	Actual		1,000.00		1,044.90		9.92			1.93
	Hypothetical^(c)		1,000.00		1,015.43		9.78			1.93
Class I	Actual		1,000.00		1,048.82		5.92			1.15
	Hypothetical^(c)		1,000.00		1,019.36		5.84			1.15
Class Z	Actual		1,000.00		1,050.13		4.74			0.93
	Hypothetical^(c)		1,000.00		1,020.51		4.67			0.93

Alger Mid Cap Growth Institutional Fund
Class I	Actual	$	1,000.00	$	1,020.32	$	6.35			1.25	%
	Hypothetical^(c)		1,000.00		1,018.85		6.34			1.25
Class R	Actual		1,000.00		1,016.81		9.28			1.82
	Hypothetical^(c)		1,000.00		1,015.94		9.27			1.82
Class Z-2	Actual		1,000.00		983.60		5.83			1.05
	Hypothetical^(c)		1,000.00		1,019.25		5.94			1.05

Alger Small Cap Growth Institutional Fund
Class I	Actual	$	1,000.00	$	1,063.84	$	6.64			1.28	%
	Hypothetical^(c)		1,000.00		1,018.70		6.50			1.28
Class R	Actual		1,000.00		1,061.14		9.33			1.80
	Hypothetical^(c)		1,000.00		1,016.09		9.12			1.80
Class Z-2	Actual		1,000.00		966.78		4.80			0.99
	Hypothetical^(c)		1,000.00		1,020.26		4.93			0.99

(a) Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account
value over the period, multiple by 184/366 (to reflect the one-half year period).
(b) Annualized.
(c) 5% annual return before expenses.

- 90 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

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

- 91 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


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

Hilary M. Alger (55)	Director of Development, Pennsylvania Ballet	2003	25
	2004-2013; Associate Director of Development,
	College of Arts and Sciences and Graduate School,
	University of Virginia 1999-2003.
NON-INTERESTED TRUSTEE

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

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

- 92 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


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

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

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

- 93 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

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

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

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

Nature, Extent and Quality of Services. In considering the nature, extent and quality of
the services provided by Alger Management pursuant to the Agreement, the Trustees relied
on their prior experience as Trustees of the Trust, their familiarity with the personnel and
resources of Alger Management and its affiliates (derived in part from quarterly meetings
with and presentations by Fund investment management and distribution personnel),
and the materials provided at the meeting. They noted that under the Agreement Alger
Management is responsible for managing the investment operations of the Funds. The
Trustees reviewed the background and experience of Alger Management's senior
investment management personnel, including the individuals currently responsible for
the investment operations of the Funds. They also considered the resources and practices
of Alger Management in managing each Fund's portfolio, as well as Alger Management's
overall investment management business. They noted especially Alger Management's
established expertise in managing portfolios of "growth" stocks and that, according to
an analysis provided by FUSE, the characteristics of each Fund had been consistent with
those of a growth-oriented fund. They also noted that during the year Alger Management
had continued its ongoing efforts to strengthen its investment management team through
strategic hires, realignment of portfolio management responsibilities, and similar measures.
The Trustees concluded that Alger Management's experience, resources and strength in the
areas of importance to the Funds are considerable. The Trustees considered the level and
depth of Alger Management's ability to execute portfolio transactions to effect investment
- 94 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

decisions, including those through Alger Inc. They also noted that certain administrative,
compliance, reporting and accounting services necessary for the conduct of the Trust's
affairs are provided separately under a Fund Administration Agreement and a Shareholder
Administrative Services Agreement with Alger Management. The Trustees also considered
the control and compliance environment at Alger Management and within the Trust.

Investment Performance of the Funds. Drawing upon information provided at the
meeting by Alger Management as well as FUSE and upon reports provided to the Trustees
by Alger Management throughout the preceding year, the Trustees reviewed each Fund’s
returns for the year-to-date (at 6/30/16), second-quarter of 2016, 1-, 3- and 5-year,
and longer periods to the extent available (and its year-by-year returns), together with
supplemental performance data through 8/31/16, and compared them with benchmark and
peer-group data for the same periods. They noted that the Capital Appreciation Institutional
Fund fell below its peer medians and benchmark for the recent periods from quarter-end
(at 6/30/16) through one year, although it still exhibited above-median performance against
its peers when calculated for the longer three- and five-year periods. The Mid Cap Growth
Institutional Fund showed enduring underperformance, falling below peer medians and
benchmark for every measured period from quarter-end through 5 years. Aside from a
promising 6/30/16 quarter, in which it surpassed peer median and benchmark, the Small
Cap Growth Institutional Fund’s performance was similar to that of the Mid Cap Fund.
The three-year-old Capital Appreciation Focus Fund fell short of its peers and benchmark
for the recent periods from quarter-end through one year; but its three-year record still
showed first-quartile performance overall against its peers. As had been the practice at every
quarterly meeting of the Trustees throughout the year, representatives of Alger Management
discussed with the Trustees this and other matters pertaining to the Funds’ performance,
including Alger Management’s plans for improving the performance of the chronically
underperforming Funds. Throughout, the Trustees were mindful of the point, alluded to in
the discussion, that the current market in equity securities favors dividend-paying equities
rather than pure growth stocks, a trend directly contrary to the Alger investment approach
and tending to depress the prices of growth stocks as compared with those of dividend
stocks. On the basis of their review and the discussions with Alger Management, the
Trustees determined that the performance of the Funds was acceptable.

Fund Fees and Expense Ratios; Profitability to Alger Management and its Affiliates.
The Trustees reviewed each Fund's management fee and expense ratio and compared
them with those of a group of comparable funds. In order to assist the Trustees in this
comparison, FUSE had provided the Trustees with comparative information with respect to
the advisory fees and expense ratios of relevantly similar funds. That information indicated
that the advisory fees of two of the Funds were below the median for their comparison
groups, while the fees of the Capital Appreciation Fund and Mid Cap Fund were above the
applicable median but less than halfway into the next higher quartile. Of the 10 expense
ratios for the Funds’ various share classes, three were below or just above their peer medians.
Three of the remaining seven were for share classes of small asset size that suffered thereby
in comparison with their peers. Only one share class of the remaining four placed in the
top quartile of the applicable reference group; This was the Capital Appreciation Fund
- 95 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Class R Shares, whose comparatively high 12b-1 and service fee charges exceeded those of
many funds in the class’s reference group, with the result that the class’s expenses were not
compared solely with those of true peers. The Trustees determined that such information
should be taken into account in weighing the size of the fee against the nature, extent and
quality of the services provided.

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

Economies of Scale. On the basis of their discussions with management and their
analysis of information provided at the meeting, the Trustees determined that the nature of
the Funds and their operations is such that Alger Management is likely to realize economies
of scale in the management of each Fund at some point as (and if) it grows in size. In
that connection, they noted that the advisory fee schedules in the Agreement include fee
reductions for each Fund at specified Fund asset levels (“breakpoints”), including additional
breakpoints added for the Capital Appreciation Fund on June 1, 2016; these have the effect
of lowering a Fund’s overall management fee as the Fund grows past a breakpoint, thus
sharing with the Fund’s shareholders economies of scale achieved by Alger Management in
managing the growing Fund.

Other Benefits to Alger Management. The Trustees considered whether Alger
Management benefits in other ways from its relationship with the Trust. They noted that
Alger Management maintains soft-dollar arrangements in connection with the Funds'
brokerage transactions, reports on which are regularly supplied to the Trustees at their
quarterly meetings and summaries of which, listing commissions by Fund for the twelve
months through June 30, 2016, had been included in the materials supplied prior to the
meeting. The Trustees also noted that Alger Management receives fees from the Funds
under the Fund Administration Agreement and the Shareholder Administrative Services
Agreement, and that Alger Inc. provides a considerable portion of the Funds' equity

- 96 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

brokerage and receives shareholder servicing fees from the Funds as well. The Trustees
had been provided with information regarding, and had considered, the administration fee,
shareholder administrative services fee, brokerage and shareholder servicing fee benefits in
connection with their review of the profitability to Alger Management and its affiliates of
their relationships with the Funds. As to other benefits received, the Trustees decided that
none were so significant as to render Alger Management's fees excessive.

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

• The Board concluded that the nature, extent and quality of the services provided
to the Fund by Alger Management are adequate and appropriate.
• The Board determined that the Fund’s performance was acceptable.
• The Board concluded that the advisory fee paid to Alger Management by the
Fund was reasonable in light of comparative performance and expense and advi-
sory fee information, costs of the services provided and profits to be realized and
benefits derived or to be derived by Alger Management and its affiliates from the
relationship with the Fund. In the case of the Capital Appreciation Focus Fund,
the Trustees noted that Alger Management had undertaken to cap Fund expenses
through expense reimbursements and fee waivers, thus in effect lowering the fees
it actually received from the Fund.
• The Board accepted Alger Management’s acknowledgement that economies of
scale were likely to be achieved in the management of the Fund as (and if) it grew
in size and determined that the fee breakpoints in the Agreement provided a
means by which Alger Management would share the benefits of such economies
with Fund shareholders.
The Board considered these conclusions and determinations and, without any one factor
being dispositive, determined with respect to each Fund that renewal of the Investment
Advisory Agreement was in the best interests of the Fund and its shareholders.

- 97 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

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


FACTS	WHAT DOES ALGER DO WITH YOUR PERSONAL INFORMATION?


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


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

- 98 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)


Who we are

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


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


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


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

- 99 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

Proxy Voting Policies
A description of the policies and procedures the Trust uses to determine how to vote
proxies relating to portfolio securities and information regarding how the Fund voted
proxies relating to portfolio securities during the most recent 12-month period ended June
30 are available, without charge, by calling (800) 992-3863 or online on the Funds’ website
at www.alger.com or on the SEC’s website at www.sec.gov.

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

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

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

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

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

- 100 -

THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)

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

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

- 101 -

THE ALGER INSTITUTIONAL FUNDS

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

Investment Manager

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

Distributor

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

Transfer Agent and Dividend Disbursing Agent

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

Custodian

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

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

- 102 -

ITEM 2. CODE OF ETHICS.

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

(b) Not applicable.

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

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

(e) Not applicable.

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

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.


a) Audit Fees:
October 31, 2016	$	134,000
October 31, 2015	$	131,000

b) Audit-Related Fees: NONE

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


October 31, 2016	$	24,050
October 31, 2015	$	18,800

d) All Other Fees:
October 31, 2016	$	7,680
October 31, 2015	$	10,100

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

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

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

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

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

f) Not Applicable

g) Non-Audit Fees:


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

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

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable

ITEM 6. INVESTMENTS.

Not applicable

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

Not applicable

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

Not applicable

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

Not applicable

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

None

ITEM 11. CONTROLS AND PROCEDURES.

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

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

ITEM 12. EXHIBITS.

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

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

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

SIGNATURES

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

The Alger Institutional Funds

By: /s/Hal Liebes

Hal Liebes

President

Date: December 21, 2016

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

By: /s/Hal Liebes

Hal Liebes

President

Date: December 21, 2016

By: /s/Michael D. Martins

Michael D. Martins

Treasurer

Date: December 21, 2016

EX-99.CERT 2 algerinstfundsex99cert.htm algerinstfundsex99cert.htm - Generated by SEC Publisher for SEC Filing

Rule 30a-2(a) CERTIFICATIONS

I, Hal Liebes, certify that:

1. I have reviewed this report on Form N-CSR of The Alger Institutional Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in
the case of an annual report) that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the registrant's ability to record,
process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.

Date: December 21, 2016

/s/ Hal Liebes

Hal Liebes

President

Rule 30a-2(a) CERTIFICATIONS

I, Michael D. Martins, certify that:

1. I have reviewed this report on Form N-CSR of The Alger Institutional Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in
the case of an annual report) that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the registrant's ability to record,
process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.

Date: December 21, 2016

/s/ Michael D. Martins

Michael D. Martins

Treasurer

EX-99.906 CERT 3 algerinstfundsex99906cert.htm algerinstfundsex99906cert.htm - Generated by SEC Publisher for SEC Filing

Rule 30a-2(b) CERTIFICATIONS

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b)
of section 1350, chapter 63 of title 18, United States Code), each of the undersigned
officers of The Alger Institutional Funds, do hereby certify, to such officer's
knowledge, that:

(1) The annual report on Form N-CSR of the Registrant for the year ended
October 31, 2016 (the "Form N-CSR") fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934;
and
(2) the information contained in the Form N-CSR fairly presents, in all
material respects, the financial condition and results of operations of
The Alger Institutional Funds.

Dated: December 21, 2016

/s/Hal Liebes

Hal Liebes
President
The Alger Institutional Funds

Dated: December 21, 2016

/s/ Michael D. Martins

Michael D. Martins
Treasurer
The Alger Institutional Funds

This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not
being filed as part of the Report or as a separate disclosure document.

EX-99.CODE ETH 4 codeofethics.htm codeofethics.htm - Generated by SEC Publisher for SEC Filing

Fred Alger Management, Inc. (“FAM”)
Fred Alger & Company, Incorporated (“FAC”)
Code of Ethics
Effective as of
June 1, 2016

Page 1 of 12


Table of Contents
OVERVIEW	3
Purpose and Construction	3
Definitions	3
GENERAL PRINCIPLES OF CONDUCT	5
PERSONAL SECURITIES TRANSACTIONS	6
Brokerage Accounts	6
Securities Not Held in a Brokerage Account	6
Private Placements	6
Prohibited Personal Securities Transactions	7
Pre-Clearance	7
Considerations for Approval of Personal Securities Transactions	7
Exceptions	8
REPORTING REQUIREMENTS	9
Brokerage Accounts	9
Securities Not Held in a Brokerage Account	9
Personal Securities Transactions	9
Discretionary Account	9
Private Placements	10
Current Directorships	10
Outside Activities	10
CONFIDENTIALITY	10
SANCTIONS	10
ADMINISTRATION OF THE CODE	11
Responsibilities of the Chief Compliance Officer	11
Maintenance of Records	11

Page 2 of 12

OVERVIEW

Purpose and Construction

This Code of Ethics (the “Code”) is adopted by Fred Alger Management, Inc. (“FAM”), Fred
Alger & Company, Incorporated (“FAC”) (collectively, “Alger”), and each investment company
for which FAM serves as investment adviser (each a “Fund” and collectively the “Alger Funds”)
in accordance with Rule 17j-1 under the Investment Company Act of 1940, as amended and Rule
204A-1 under the Investment Advisers Act of 1940 (“Advisers Act”), as amended.

The Code’s intent is to protect the fiduciary princ iples that govern the conduct of FAM and FAC
(collectively with their affiliates “Alger”) . Moreover, the purpose of the Code is to ensure that
all activities be in full compliance with the Federal securities laws as well as all other laws and
regulations that apply to Alger’s businesses. For purposes of this Code, the Federal securities
laws include (i) the Securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-
Oxley Act of 2002, the Investment Company Act of 1940, the Advisers Act and Title V of the
Gramm-Leach-Bliley Act and any rules adopted by the Securities and Exchange Commission
(“SEC”) under any of the foregoing statutes, and (ii) the Bank Secrecy Act (as it applies to Alger
and any investment companies (public or private) advised by it) and any rules adopted
thereunder by the SEC or the Department of the Treasury.

If you have reason to believe that certain acts, actions, or practices engaged in by an Alger
employee would constitute a violation of Federal or state securities laws to which Alger is
subject or would violate Alger’s policies or procedures inclusive of the Code, you must report it
to a member of the Compliance or Legal Departments.

All Access Persons (as defined below) are responsible, for, and have agreed as a requirement of
their employment, to review, be familiar with, and comply with the Code. Any questions with
respect to the Code should be directed to the Chief Compliance Officer (“CCO”) of FAM, FAC,
and/or the Funds.

Definitions

Access Person - An employee of any Alger entity, including full-time consultants or contractors,
and long-term temporary workers on more than a six (6) month assignment.

Analyst - A person employed by FAM as a Senior Analyst, Analyst, Associate Analyst, Research
Associate or in a comparable position whose function relates to providing information, advice or
recommendations to one or more Portfolio Managers.

Beneficial Owner - A person is considered to be the Beneficial Owner of the following securities
(which may be held in a Brokerage Account or otherwise):

· securities held in the person’s own name;
· securities held with another in joint tenancy, community property or other joint
ownership;

Page 3 of 12

· securities held by a bank or broker as nominee or custodian on behalf of an Access
Person or pledged as collateral for a loan;
· securities held by members of the Access Person’s immediate family sharing the same
household (“immediate family” means any child, stepc hild, grandchild, parent,
stepparent, grandparent, spouse, domestic partner, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, sister-in-law, including adoptive
relationships);
· securities held by a relative of an Access Person not residing in the person’s home if the
Access Person is a custodian, guardian, or otherwise has controlling influence over the
purchase, sale or voting of such securities;
· securities held by a trust of which the Access Person is a beneficiary and has or shares the
power to make purchase or sale decisions;
· securities held by a trust for which the Access Person serves as a trustee and in which the
person has a pecuniary interest (including pecuniary interests by virtue of performance
fees or by virtu e of holdings by the person’s immediate family);
· securities held by a general partnership or limited partnership in which the Access Person
is a general partner; or
· securities held by a corporation in which the Access Person has a control position or in
which the Access Person has or shares investment control over the portfolio securities
(other than a registered investment company).

Brokerage Account - An account which is an arrangement between an Access Person (or account
over which the Access Person has a beneficial interest) and a licensed brokerage firm that allows
the Access Person to deposit funds with the firm and place investment orders for securities
through the brokerage firm, which then carries out the transactions on the Access Person’s
behalf.

Client - Any person, entity or investment vehicle to which any Alger entity provides investment
advisory or other services.

Fund Trustee - A Fund trustee who is not an Officer, Director, or employee of FAM or FAC.

· Fund Trustees are only subject to the Code to the extent that a trustee knows, or, in the
ordinary course of fulfilling his/her duties as a trustee of a Fund, should know that during
the fifteen (15) day period immediately before or after the date of the transaction in a
Security by the trustee, a Fund has purchased or sold the Security or such purchase or
sale by a Fund was considered by the Fund or FAM. In such case, the Fund Trustee
should seek pre-clearance for the transaction with the CCO.

Portfolio Manager - A FAM employee with the responsibility, authority, and ability to make
investment decisions with respect to a Client.

Personal Security Transaction - A transaction in any Security in which an Access Person is or
will become a Beneficial Owner.

Page 4 of 12

Private Placement - A Private Placement is a passive investment, in any securities of issuing
entities that is exempt from registration under the Securities Act of 1933 pursuant to Section
4(a)(2) or Section 4(a)(5) or pursuant to Rule 504, Rule 505, or Rule 506 under, the Securities
Act of 1933, as amended.

Security - Any note, stock, treasury stock, security future, bond, debenture, evidence of
indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-
trust certificate, pre-organization certificate or subscription, transferable share, investment
contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest
in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security
(including a certificate of deposit), or on any group or index of securities (including any interest
therein or based on the value thereof), or relating to foreign currency, or, in general, any interest
or instrument commonly known as a “security” or any certificate of interest or participation in,
temporary or interim certificate of participation for, guarantee of, or warrant or right to subscribe
or to purchase, any of the foregoing.

Trader - Any person employed by FAM and/or FAC who is responsible for placing trades on
behalf of Clients.

GENERAL PRINCIPLES OF CONDUCT

An Access Person shall:

· act in the best interests of Clients;
· not consider their personal financial (or any other personal) situation in connection with
transactions for any Client;
· conduct themselves in a manner intended to avoid any actual, potential or perceived
conflict of interest;
· not abuse their position of trust and responsibility;
· not take inappropriate advantage of their position in relationship to Clients;
· not divulge to any person any information regarding transactions for any Client, except in
the performance of their duties;
· not transact in any securities that are restricted from purchase or sale by any Alger entity;
· not utilize an excess amount of their time, in the judgment of the CCO, for Personal
Securities Transactions or allow such transactions to otherwise interfere with their ability
to fulfill their responsibilities.

In consideration of these General Principles of Conduct, an Access Person may not recommend a
transaction in any Security for any Client unless they have first disclosed to the compliance
department their interest in such Security (or, if relevant, the issuer of such Security), including
without limitation:

· direct or indirect Beneficial Ownership of any Security;
· any position with the issuer of such Security or its affiliates;

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· any current or proposed business relationship with issuer of such Security, its affiliates,
or any party which has a significant interest in the Security or its issuer; or
· any ownership interest in a Security acquired through a Private Placement, where
transactions in securities of the same issuer are now being considered for any Client.

In such case, the decision to invest in the Securities of such an issuer on behalf of the Client shall
be subject to the review and approval of the CCO.

In furtherance of these principles, an Access Person must

· obtain prior written authorization of the CCO to serve on the board of directors (or
trustees) of any company. Such authorization will be based on a determination that the
board service would be consistent with the interests of the Funds and their shareholders
or would otherwise not conflict with FAM’s ability to provide services to its Clients.

· disclose all business, investment, or charity-related outside activities regardless of their
nature or scope (e.g. additional employment, volunteer work, investment in real estate).

· obtain prior written authorization of the CCO for any Private Placement investments.

PERSONAL SECURITIES TRANSACTIONS

Brokerage Accounts

No Access Person shall open or maintain a Brokerage Account that can hold Securities in which
they have a Beneficial Interest without the express prior written approval of the Compliance
Department.

An Access Person must report to the Compliance Department all Brokerage Account(s) in which
the Access Person has a Beneficial Interest, the name of the broker-dealer or bank with whom
the account was established and the date the account was established. An Access Person is
responsible for ensuring that the Compliance Department receives duplicate copies of all
confirmations and account statements prior to trading in any Brokerage Account.

Securities Not Held in a Brokerage Account

If an Access Person holds a Security in certificate or other form (and not in a Brokerage
Account), the Access Person shall provide the name of the Security (or Securities), the quantity
held, and the date the Security was acquired. This includes any 401(k) plans from prior
employment that allow the participant to hold individual security and not just mutual funds.

Private Placements

As noted above, an Access Person shall not make an investment in a Private Placement without
the express prior written approval of the CCO.

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Prohibited Personal Securities Transactions

An Access Person may not:

· acquire any Security in an initial public offering;
· engage in “short-selling”; or
· purchase or sell (write) options or futures.

Pre-Clearance

All Access Persons must pre-clear all Personal Securities Transactions with the Compliance
Department, except for:

· a transaction effected under an arrangement through which an Access Person has given a
third party full trading discretion over the Access Person’s account and, the Access
Person does not have any direct or indirect influence or control over the transaction. The
Access Person must have first provided the discretionary agreement with the third party
to the Compliance Department and have received the written approval of the CCO for
any such arrangement or relationship;
· purchases that are part of an automatic dividend reinvestment plan;
· purchases resulting from the exercise of rights acquired from an issuer as part of a pro-
rata distribution to all holders of a class of Securities of such issuer;
· sales pursuant to tender offers;
· transactions pursuant to stock splits and involuntary share buy-backs;
· gifts or bequests (either receiving or giving), although the sale of any Security received
as a gift or bequest must be pre-cleared;
· transactions in municipal securities;
· transactions in shares of investment companies(including those advised or sub-advised by
FAM);
· exchange traded funds (“ETFs”); ETF transactions will still require a pre-clearance form
to be completed.
· De minimis transactions at or below a value of $ 2,500.00; these transactions will still
require a pre-clearance form to be completed.
· direct obligations of the U.S. government; or
· bankers’ acceptances, bank certificates of deposit, commercial paper and high quality
short-term debt instruments, including repurchase agreements.

Considerations for Approval of Personal Securities Transactions

An Access Person will not be able to execute a Personal Securities Transaction if:

· there is a pending transaction in such Security for a Client;
· an Analyst (or the sector head if the Security in question is not covered by any Analyst),
currently intends to (or believes that there are circumstances about the Security which

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will may lead them to) issue a recommendation to transact in such Security within the
next seven (7) calendar days;
· any Portfolio Manager who owns such Security (or such Security is otherwise appropriate
for a Portfolio Manager to own) for a Client indicates their intent to purchase or sell the
Security for a Client within the next seven (7) calendar days
· any transaction in the security has occurred in the past seven (7) calendar days.

An Analyst will not be able to execute a Personal Securities Transaction in any Security in their
sector. For purposes of this Code, Traders and Analysts who are generalists are deemed to be in
all sectors.

An Access Person may not sell a Security that they have purchased within any sixty (60) day
period at a gain. An Access Person who sells a Security that they have purchased within sixty
(60) days at a gain may be required to make a donation to charity equivalent to the profit made
from the sale of the Security or face further sanctions. For clarity, ETFs are not subject to the 60
day holding period.

An Access Person may only make a request for a Personal Securities Transaction by submitting a
Pre-Clearance form. This form must be completed in its entirety, signed, and dated by the
Access Person. Once complete, the form must be submitted to the Compliance Department for
approval.

Any approval to place a Personal Security Transaction is valid only for the day on which it is
granted. The Compliance Department will communicate approval or denial of the trade via
email only. Please note all trades are considered denied until official approval is granted. If
approved, an Access Person may only transact in a Security between 3 p.m. and 4 p.m. EST. on
that date the approval is given (or during trading hours for foreign securities traded in foreign
markets). If the Access Person does not transact within this time period, they must re-submit
their request before placing the transition in the future.

Exceptions

Exceptions to the Code may be granted from time to time by the CCO. All exceptions, unless
otherwise stated below, shall be documented and shall provide the details of the transaction
including the name and title of the Access Person, the amount of shares, direction of the trade
(buy or sell), trade date, Security description, and rationale for the granting of the exception.

An example of an exception is a de minimis trade in a highly liquid Security, or an exception to
the seven (7) calendar day block where the execution of the transaction would not provide the
Access Person with better execution than a corresponding transaction for a Client.

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REPORTING REQUIREMENTS

No later than ten (10) calendar days after an Access Person becomes employed by an Alger
entity FAM or FAC and thereafter twenty (20) calendar days after the end of each calendar
quarter, each Access Person shall submit a report to the Compliance Department containing the
following information:

Brokerage Accounts

For all Brokerage Accounts for which the Access Person has a Beneficial Interest, the name of
the broker-dealer or bank with whom the account was established, and the date the account was
established.

Securities Not Held in a Brokerage Account

If an Access Person holds a Security in certificate or other form (and not in a Brokerage
Account), the Access Person shall provide:

· the name of the Security (or Securities),
· the quantity held, and
· the date the Security was acquired.

This includes 401(k) plans from prior employment that allow the participant to hold individual
Securities and not just mutual funds,

Personal Securities Transactions

With respect to all Personal Securities Transactions, (including those mentioned above):

· the date of the transaction;
· the title of the Security;
· the number of shares/units and the principal amount of each Security involved;
· the nature of the transaction (e.g., purchase, sale or any other type of acquisition or
disposition);
· the price at which the transaction was effected; and
· the name of the broker-dealer or bank with or through whom the transaction was effected.

Discretionary Account

With respect to an Access Person who has given discretion to have transactions placed by a third
party and for which the Access Person does not have any direct or indirect influence or control
over the transaction:

· a certification that the Access Person is not providing information or instructions to such
third party regarding the management of the account.

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Private Placements

With respect to all Private Placements:

· the date of the transaction;
· the title of the Security;
· the number of shares/units and the principal amount of each Security involved;
· the nature of the transaction (e.g., purchase, sale or any other type of acquisition or
disposition);
· the price at which the transaction was effected; and
· the Private Placement Memorandum Offering and any other relevant documents.

Current Directorships

An Access Persons must disclose if they serve on the board of directors (or trustees) of any
company.

Outside Activities

An Access Person must disclose all outside activities regardless of their nature or scope (e.g.
additional employment, volunteer work, investment in real estate).

If the information required to be reported in this section has already been provided through
another medium (such as information contained in broker trade confirmations or account
statements, or a personal trade pre-clearance form received by the Compliance Department),
that information does not need to be reported again, provided that a quarterly report is filed with
respect to any account established or closed during the quarter by the Access Person.
Additionally the Access Person is not relieved of reporting responsibilities with respect to any
information not reported through other mediums and required by the Code.

CONFIDENTIALITY

All information obtained from any Access Person hereunder shall be kept in strict confidence,
except that reports of Securities transactions hereunder will be made available to the SEC or any
other regulatory or self-regulatory organization to the extent required by law or regulation.

SANCTIONS

Upon discovering that an Access Person has not complied with the requirements of this Code,
the CCO, in consultation with other senior officers of FAM and FAC and/or the Trustees of the
Alger Funds, may impose on that person whatever sanctions they deem appropriate, including,
among other things, disgorgement of profits, fines, censure, suspension, or termination of
employment.

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ADMINISTRATION OF THE CODE

Responsibilities of the Chief Compliance Officer

The CCO is responsible for administration of the Code. In this connection, the duties of the
CCO or his and her designee include:

· trade pre-clearance;
· maintenance of a current list of all Access Persons with a description of their title or
employment;
· furnishing all Access Persons a copy of this Code and initially and periodically informing
them of their duties and obligations hereunder;
· reviewing transaction and holdings reports submitted by Access Persons;
· maintaining all records required by the Code;
· preparing listings of all transactions effected by Access Persons;
· interpreting of the Code;
· conducting such inspections or investigations, as shall reasonably be required to detect
and report any apparent or actual violations of this Code of Ethics to Alger and to the
Trustees of the Alger Funds; and
· submitting a quarterly report to the Board of Directors of each of FAM, FAC and to the
Trustees of the Alger Funds that
o certifies that the procedures to implement the Code are reasonably necessary to
prevent violations of the Code,
o summarizes the existing procedures to monitor the Code and any changes to the
Code,
o provides statistics regarding activity under the Code,
o describes any violation of the Code and any sanctions imposed as a result, and
summarizes any interpretations issued,
o details any exemptions granted,
o reports on any training provided, and
o reports any other significant information concerning the Code.

Maintenance of Records

FAM shall, on its own behalf and on the behalf of the Funds and FAC, maintain and make
available records with respect to the implementation of the Code in the manner and for the time
required by the Federal securities laws, including without limitation, Rule 17j-1(d) under the
Investment Company Act of 1940. Specifically, the CCO shall maintain the following for the
time and manner specified below:

· a copy of any Code that is in effect, or at any time within the past five (5) years was in
effect, must be maintained in an easily accessible place;

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· a record of any violation of any such Code, and of any action taken as a result of such
violation, must be maintained in an easily accessible place for at least five (5) years after
the end of the fiscal year in which the violation occurred;
· a copy of each report made by an Access Person, as well as trade confirmations and
account statements that contain information not duplicated in such reports, must be
maintained for at least five (5) years after the end of the fiscal year in which the report
was made or the information was provided, the first two (2) years in an easily accessible
place;
· A copy of each report made must be maintained for at least five (5) years after the end of
the fiscal year in which it was made, the first two (2) years in an easily accessible place;
· A list of all persons, currently or within the past five (5) years, who are or were required
to make reports pursuant to Rule 17j-1 and this Code, and a list of those persons
responsible for reviewing these reports must be maintained in an easily accessible place;
and
· A record of any decision, and the reasons supporting the decision, to permit an Access
Person to invest in a Private Placement, must be maintained for at least five years after
the end of the fiscal year in which the approval was granted.

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