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ITEM 1.
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REPORTS TO STOCKHOLDERS.
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Table of Contents
The Alger Institutional Funds
| Shareholders’ Letter (Unaudited) | October 31, 2023 |
Dear Shareholders,
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” – Albert Einstein
This principle resonates deeply with us at Alger, where we embrace the power of compound growth in corporate fundamentals, such as sales, earnings, and cash flow, as a cornerstone of long-term wealth creation. Our investment approach focuses on identifying companies with strong potential for sustained earnings growth over the long-term, avoiding those that we believe are “short duration” companies, or businesses with high current earnings and low potential for future long-term growth. In most instances, short duration companies, in our view, return most of their profits to shareholders because of a lack of compelling reinvestment opportunities. By investing in companies that we believe will gain market share and compound their earnings growth, we aim to position our portfolios to be resilient across varying economic conditions, thereby maximizing long-term value for our shareholders.
Reflecting on the fiscal year ended October 31, 2023, the narrative of the market was one of resilience and recovery. Following a turbulent 2022, where higher interest rates in response to elevated inflation reduced equity valuations, investor sentiment turned positive in 2023, driven by easing inflation, stabilizing corporate earnings, and the increasing likelihood of a soft-landing (i.e., an economic slowdown without a recession). Further, a surge of enthusiasm around Artificial Intelligence (AI) contributed to outsized returns for certain of the largest companies within the Information Technology and Communication Services sectors. Not all sectors shared in this rally, as the Energy and Health Care sectors underperformed the S&P 500 Index. While there were bumps along the way, from a regional banking crisis in March 2023 to a steady rise in interest rates, the S&P 500 Index finished up 10.14% during the fiscal twelve-month period ended October 31, 2023.
In the final two months of 2022, optimism grew as core Consumer Price Index (“CPI”) readings for November and December came in below expectations, suggesting the peak of the Federal Reserve’s (the “Fed”) tightening cycle. However, persistent wage inflation and an inverted yield curve raised concerns about potential policy errors and an impending economic downturn. In December, Fed Chairman Jerome Powell affirmed a “higher-for-longer” stance for interest rates and forecasted a terminal rate above 5.0%, casting doubts on the stock market’s recovery.
As we moved into 2023, however, the first quarter saw a reversal in the bearish sentiment that had marked much of the previous year. In February, the Fed slowed down its rate hikes to 25 basis points, a reduction from December’s 50 basis point hike. In March, concerns around bank funding and liquidity emerged following the collapse of two regional banks, leading to significant deposit outflows at the regional level. The Fed, U.S. Treasury, and Federal Deposit Insurance Corporation (FDIC) took steps to alleviate these market concerns, including announcing an emergency liquidity program, guaranteeing uninsured deposits, and allowing some bank mergers and acquisitions.
Transitioning into the second quarter, U.S. economic data released in June reinforced the soft-landing-narrative with signs of (1) disinflation, as evidenced by the May CPI report coming in softer than expected with headline CPI posting the lowest annual increase in more than two years, (2) resilient labor markets, as May payrolls beat estimates for a 14th straight month, and (3) a stronger housing market, with builder confidence at the highest in nearly a year, housing starts at the highest in over a year, and multi-unit starts at the highest in nearly four decades.
Despite the strong first half rally in 2023, U.S. equities fell during the third quarter. While investors initially embraced a continuation of prevailing narratives around AI and expectations of a soft-landing lifting equity markets in July, mounting concerns surrounding aggressive Fed policy and a sharp rise in interest rates led to declining equity prices in August and September. Moreover, the resumption of student loan payments, diminished savings from the pandemic, and higher energy prices reignited worries that a decline in U.S. consumer spending could lead to the possibility of an upcoming recession. Rising interest rates were seen as one of the largest headwinds to risk assets during the third quarter, where the yield of the U.S. 10-year note increased by 76 basis points to 4.57% and the yield on the two-year note increased nearly 20 basis points to 5.04%. While the rate of inflation decelerated meaningfully over the past year, the monthly CPI readings for July and August rose 0.2% and 0.6%, respectively. That said, the rise in interest rates was driven more by the term premium (i.e., the additional yield that investors demand for lending money for longer periods of time) and less so on rising inflation expectations during the third quarter.
On the monetary policy front, after a 25 basis point rate hike in July that met expectations, the Fed held rates steady at its September meeting, bringing the Federal Funds rate to 5.25-5.50%. In October, U.S. equities fell in large part due to rising interest rates, with the yield of the U.S. 10-year note increasing by approximately 30 basis points to 4.88%. Higher bond yields were driven by several factors, such as an increase in U.S. Treasury issuance and a reinforced stance on a higher-for-longer Fed policy, bolstered by a robust September retail sales report and better-than-expected U.S. GDP data for the third quarter. Further, the average 30-year fixed mortgage rate reached new multi decade highs of 8.06%, as of October 31, 2023, helping drive mortgage demand from homebuyers to the lowest level since 1995.
Among non-U.S. equities, developed markets saw strong performance during the fiscal twelve-month period ended October 31, 2023. Notable strength was driven by Europe avoiding an energy crisis due to a mild winter, and Japan’s economy being bolstered by well-received corporate reforms to improve governance. As such, the MSCI ACWI ex-USA Index rose 12.66% during the fiscal twelve-month period ended October 31, 2023, with the Financials and Consumer Discretionary sectors showing strong results, while the Real Estate and Utilities sectors saw weaker performance. Within Emerging Markets, encouraging market sentiment stemmed from Chinese officials abandoning their ‘Zero-Covid’ policy in late 2022, indicating an earlier-than-expected re-opening of the economy. While renewed concerns about China’s property sector and weaker-than-expected economic recovery data curtailed investor enthusiasm in the first half of 2023, better-than-feared third quarter GDP data emerged in October. As such, the MSCI Emerging Markets Index was up 11.26% during the fiscal twelve-month period ended October 31, 2023. Strong performance within the Consumer Discretionary and Information Technology sectors was partially offset by relative weakness in the Materials and Utilities sectors.
Going Forward
We continue to believe that an unprecedented level of innovation is creating compelling investment opportunities – corporations are digitizing their operations, cloud computing growth continues to support future innovation, and artificial intelligence, which is at an inflection point in our view, potentially enabling significant increases in productivity. In the Health Care sector, we believe that advances in surgical technologies and innovations within biotechnology offer attractive opportunities ahead. As such, we intend to continue to focus on conducting in-depth fundamental research as we seek leaders of innovation rather than taking short-term bets on market sentiment. We believe this strategy embodies Albert Einstein’s wisdom, harnessing the powerful force of compound interest to help our shareholders achieve their long-term investment goals.
Portfolio Matters
Alger Capital Appreciation Institutional Fund
The Alger Capital Appreciation Institutional Fund returned 17.01% for the fiscal twelve-month period ended October 31, 2023, compared to the 18.95% return of the Russell 1000 Growth Index. During the reporting period, the largest sector weightings were Information Technology and Consumer Discretionary. The largest sector overweight was Health Care and the largest sector underweight was Consumer Staples.
Contributors to Performance
The Consumer Discretionary and Industrials sectors provided the largest contributions to relative performance. Regarding individual positions, Microsoft Corp.; NVIDIA Corp.; Amazon.com, Inc.; TransDigm Group Inc.; and Meta Platforms Inc. were among the top contributors to absolute performance.
TransDigm specializes in the production of engineered aerospace components, systems and subsystems. Its core Power and Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of aircrafts utilizing electronic, fluid, power and mechanical motion control technologies. Shares contributed to performance during the period, as the company has reported solid operating results, driven by strength in all three of their major market channels – commercial original equipment manufacturing, commercial aftermarket, and defense. Moreover, strong order bookings have been aided by China’s easing COVID-19 mobility restrictions, which has increased air travel. Given the robust order bookings and favorable trends in the commercial aerospace market recovery, management raised their fiscal full year earnings guidance.
Detractors from Performance
The Health Care and Financials sectors were the largest detractors from relative performance. Regarding individual positions, Tesla, Inc.; Albemarle Corp.; UnitedHealth Group Inc.; Signature Bank; and Humana Inc. were among the top detractors from absolute performance.
UnitedHealth Group is an integrated healthcare benefits company uniquely positioned to address rising healthcare costs for its customers, due to its vertical integration, size, and scale. The Optum health benefits services unit, which accounts for approximately 45% of the company’s operating earnings, in our view, has the potential to grow even further as customers look for ways to manage rising healthcare costs. During the period, shares detracted from performance due to several factors: (1) many 2022 healthcare winners with shorter duration profiles and persistent earnings profiles, such as UnitedHealth Group, underperformed in the first quarter of 2023, (2) uncertainty surrounding Medicare Advantage reimbursement levels from the Federal government in 2023, which will be determined later in 2023, and (3) increased regulatory scrutiny in the form of potential Medicare Advantage audits across the industry. While these concerns have impacted UnitedHealth in the near-term, we believe company fundamentals remain intact given its large-scale business model, competitive advantages, and medium- to long-term growth prospects.
Alger Focus Equity Fund
The Alger Focus Equity Fund returned 17.64% for the fiscal twelve-month period ended October 31, 2023, compared to the 18.95% return of the Russell 1000 Growth Index. During the reporting period, the largest sector weightings were Information Technology and Consumer Discretionary. The largest sector overweight was Energy and the largest sector underweight was Information Technology.
Contributors to Performance
The Industrials and Consumer Discretionary sectors provided the largest contributions to relative performance. Regarding individual positions, NVIDIA Corp.; Microsoft Corp.; TransDigm Group Inc.; Amazon.com, Inc.; and Meta Platforms Inc. were among the top contributors to absolute performance.
NVIDIA is a leading supplier of graphics processing units for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put, NVIDIA’s computational power is a critical enabler of AI and therefore, in our view, critical to AI adoption. As such, we believe NVIDIA is a long-term high unit volume growth opportunity. During the period, shares contributed to performance as NVIDIA reported solid operating results well above analyst expectations, driven by strong demand from data centers. Growing AI data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.
Detractors from Performance
The Health Care and Information Technology sectors were the largest detractors from relative performance. Regarding individual positions, TransMedics Group, Inc.; Live Nation Entertainment, Inc.; UnitedHealth Group Incorporated; Tesla, Inc.; and GFL Environmental Inc were among the top detractors from absolute performance.
GFL Environmental is a leading solid waste and environmental services company with operations in the U.S. and Canada. GFL went through a period of M&A over the past few years, which included inheriting sizable debt. Since then, GFL has committed to reducing that high leverage by 2025 by selling off non-core assets and focusing on generating high free cash flow. During the period, shares detracted from performance, as investors viewed GFL as an inflation beneficiary whose earnings growth would slow as inflation moderates. Additionally, the company saw a moderate decline in volumes that some market participants viewed as potentially hindering GFL’s ability to raise prices as input costs increased. After speaking with the GFL management team, we believe the volume decline seen during the period was attributed to GFL exiting low profit margin businesses.
Alger Mid Cap Growth Institutional Fund
The Alger Mid Cap Growth Institutional Fund returned -0.17% for the fiscal twelve-month period ended October 31, 2023, compared to the 3.35% return of the Russell Midcap Growth Index. During the reporting period, the largest sector weightings were Information Technology and Health Care. The largest sector overweight was Real Estate and the largest sector underweight was Financials.
Contributors to Performance
The Energy and Communication Services sectors provided the largest contributions to relative performance. Regarding individual positions, Prometheus Biosciences, Inc.; Cadence Design Systems, Inc.; TransDigm Group Inc.; Constellation Software Inc.; and Manhattan Associates, Inc. were among the top contributors to absolute performance.
Prometheus Biosciences is a biotechnology company focused on developing precision-based medicines to treat autoimmune conditions, primarily those afflicting the intestines such as inflammatory bowel disease (IBD) indications like ulcerative colitis and Crohn’s disease by leveraging a proprietary bioinformatics database. Shares outperformed after the company announced in April 2023 that it would be acquired by Merck & Co.
Detractors from Performance
The Industrials and Consumer Discretionary sectors were the largest detractors from relative performance. Regarding individual positions, CrowdStrike Holdings, Inc.; Repligen Corp.; Paycom Software, Inc.; DexCom, Inc.; and TransUnion were among the top detractors from absolute performance.
Repligen is a life science organization committed to supplying tools, consumables, and data analytics to the bioprocessing industry. It functions via four divisions: Filtration, Chromatography, Proteins & Affinity Resins, and Process Analytics. Repligen’s offerings play a key role in the creation and production of biological therapeutics, such as monoclonal antibodies, recombinant proteins, viral vectors, and cell and gene therapies. While the company reported operating results that were roughly in-line with consensus estimates, management lowered their full year 2023 forward guidance for revenues and earnings. The downward revision was attributed to destocking pressures throughout the bioprocessing industry, as inventory levels built up during COVID-19 remain higher than expected, leading to irregular order patterns in the near-term. Further, during their fiscal first quarter, the company experienced a 40% drop in orders from China, approximately 10% of company sales, which raised concerns about China’s recovery from COVID-19 lockdowns.
Alger Small Cap Growth Institutional Fund
The Alger Small Cap Growth Institutional Fund returned -11.52% for the fiscal twelve-month period ended October 31, 2023, compared to the -7.63% return of the Russell 2000 Growth Index. During the reporting period, the largest sector weightings were Health Care and Information Technology. The largest sector overweight was Information Technology and the largest sector underweight was Industrials.
Contributors to Performance
The Information Technology and Real Estate sectors provided the largest contributions to relative performance. Regarding individual positions, Manhattan Associates, Inc.; NeoGenomics, Inc.; Structure Therapeutics, Inc.; SPS Commerce, Inc.; and HubSpot, Inc. were among the top contributors to absolute performance.
Hubspot is a cloud-based marketing and sales platform for small- and medium-sized businesses (“SMBs”), focusing on inbound marketing strategies to attract, engage, and convert website visitors into customers. Its platform provides a comprehensive suite of applications including search engine optimization (SEO), blogging, marketing automation, customer relationship management (CRM), and analytics, utilizing a centralized database for personalized interactions. In our view, this approach fosters warmer prospect engagement compared to traditional methods like cold calling and email blasts. Over the years, the company has evolved from a small business CRM vendor to a comprehensive provider of marketing, sales and content management solutions for global SMBs. With an approximate 3% combined market share, a large customer base, robust partner network and extensive HubSpot suite, we believe the company is well positioned to capture additional market share in the large SMB front office applications industry, as well as expand in the upmarket segment (i.e., companies with 200 to 2,000 employees). Shares contributed to performance during the period, as the company reported strong operating results, noting better-than-expected revenues coupled with the highest number of new customer adds in two years. With the avid appetite to embrace generative AI technologies, we believe Hubspot has the potential to further its momentum with noteworthy architectural advantages tied to a unified data platform, broad distribution reach and a central role in front-office workflows.
Detractors from Performance
The Health Care and Industrials sectors were the largest detractors from relative performance. Regarding individual positions, Insulet Corp.; Xometry, Inc.; Magnolia Oil & Gas Corp.; Tandem Diabetes Care, Inc.; and QuidelOrtho Corp. were among the top detractors from absolute performance.
Insulet Corp. is a medical device company focused on commercializing its Omnipod portfolio of insulin delivery devices. The company’s Omnipod device is a tubeless insulin pump that is in the shape of a pod – this device is directly attached to a patient’s body. The key differentiator between Insulet’s insulin delivery devices and those of competitors is the tubeless feature – this enables a more discrete administration of insulin. Insulet’s Omnipod portfolio includes three key product lines: Classic Omnipod, Omnipod DASH, and Omnipod 5. The Omnipod technology is also used as a subcutaneous drug delivery system to deliver certain therapeutics. During the period, shares detracted from performance as investors became concerned about the long-term impact of GLP-1 drugs, a newer class of drugs that are highly effective in treating diabetes and obesity.
I thank you for putting your trust in Alger.
Sincerely,
Daniel C. Chung, CFA
Chief Executive Officer, Chief Investment Officer
Fred Alger Management, LLC
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. Performance of funds discussed above represents the twelve-month period return of Class I shares.
The performance data quoted in this material represents past performance, which is not an indication or a guarantee of future results.
Standard 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 Schedule of Investments for each fund which is included in this report for a complete list of fund holdings as of October 31, 2023. Securities mentioned in the Shareholders’ Letter, if not found in the Schedules of Investments, were held by the funds during the fiscal twelve-month period ended October 31, 2023.
Risk Disclosures
Alger Capital Appreciation Institutional Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities.
Alger Focus Equity Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities.
Alger Mid Cap Growth Institutional Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities.
Alger Small Cap Growth Institutional Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities.
For a more detailed discussion of the risks associated with a fund, please see the prospectus.
Before investing, carefully consider a fund’s investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for The Alger Institutional Funds’ most recent month-end performance data, visit www.alger.com, call (800) 992-3863 or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing.
Distributor: Fred Alger & Company, LLC
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
Definitions:
| ● | Earnings per share (EPS) is calculated as a company’s profit divided by the outstanding shares of its common stock. |
| ● | The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending. |
| ● | The MSCI ACWI ex USA Index captures large and mid cap representation across Developed Markets (DM) countries (excluding the U.S.) and Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the U.S. |
| ● | The MSCI Emerging Markets Index captures large-and mid-cap representation across Emerging Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country. |
| ● | The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. |
| ● | The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. |
| ● | The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 2000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the small-cap growth segment. |
| ● | The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is constructed to provide a comprehensive and unbiased barometer of the small-cap segment. |
| ● | The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies of the investable U.S. equity market. The Russell 3000 Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market |
| ● | The Russell Midcap Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell Midcap Growth Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. |
| ● | The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is constructed to provide a comprehensive and unbiased barometer for the mid-cap segment. |
| ● | The S&P 500 Index is an unmanaged index considered representative of large-cap growth stocks. |
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Fund Highlights Through October 31, 2023 (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, 2023. Figures for the Alger Capital Appreciation Institutional Fund Class I shares and the Russell 1000 Growth Index include reinvestment of dividends. Figures for the Alger Capital Appreciation Institutional Fund Class I shares also include reinvestment of capital gains. Performance for the Alger Capital Appreciation Institutional Fund Class R, Class Y and Class Z-2 shares may vary from the results shown above due to differences in expenses each class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Fund Highlights Through October 31, 2023 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/23
AVERAGE ANNUAL TOTAL RETURNS
| 1 YEAR | 5 YEARS | 10 YEARS | ||||
|
Class I
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17.01% | 9.89% | 11.16% | |||
|
Class R
|
16.53% | 9.41% | 10.65% | |||
|
Russell 1000 Growth Index
|
18.95% | 14.22% | 13.82% | |||
| Since | ||||||
| 1 YEAR | 5 YEARS | Inception | ||||
|
Class Y (Inception 2/28/17)
|
17.55% | 10.34% | 11.78% | |||
|
Russell 1000 Growth Index
|
18.95% | 14.22% | 14.77% | |||
| Since | ||||||
| 1 YEAR | 5 YEARS | Inception | ||||
|
Class Z-2 (Inception 10/14/16)
|
17.48% | 10.26% | 12.43% | |||
|
Russell 1000 Growth Index
|
18.95% | 14.22% | 15.60% | |||
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.
ALGER FOCUS EQUITY FUND
Fund Highlights Through October 31, 2023 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Focus Equity Fund Class I shares and the Russell 1000 Growth Index (an unmanaged index of common stocks) for the ten years ended October 31, 2023. On October 15, 2018, Alger Capital Appreciation Focus Fund changed its name to Alger Focus Equity Fund. Figures for Alger Focus Equity Fund Class I shares and the Russell 1000 Growth Index include reinvestment of dividends. Figures for the Alger Focus Equity Fund Class I shares also include reinvestment of capital gains. Performance for Alger Focus Equity Fund Class A, Class C, Class Y and Class Z shares may vary from the results shown above due to differences in expenses and sales charges that those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER FOCUS EQUITY FUND
Fund Highlights Through October 31, 2023 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/23
AVERAGE ANNUAL TOTAL RETURNS
| 1 YEAR | 5 YEARS | 10 YEARS | ||||
| Class A | 11.43% | 10.18% | 12.00% | |||
| Class C | 15.71% | 10.54% | 11.76% | |||
| Class I | 17.64% | 11.43% | 12.68% | |||
| Class Z | 18.00% | 11.74% | 12.99% | |||
| Russell 1000 Growth Index | 18.95% | 14.22% | 13.82% | |||
| 1 YEAR | 5 YEARS |
Since Inception |
||||
| Class Y (Inception 2/28/17) | 18.05% | 11.77% | 13.65% | |||
| Russell 1000 Growth Index | 18.95% | 14.22% | 14.77% | |||
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. Class A returns reflect the maximum initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. 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. On October 15, 2018, the Fund changed its name from Alger Capital Appreciation Focus Fund to Alger Focus Equity Fund. 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.
ALGER MID CAP GROWTH INSTITUTIONAL FUND
Fund Highlights Through October 31, 2023 (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, 2023. Figures for Alger Mid Cap Growth Institutional Fund Class I shares and the Russell Midcap Growth Index include reinvestment of dividends. Figures for the Alger Mid Cap Growth Institutional Fund Class I shares also include reinvestment of capital gains. Performance for the Alger Mid Cap Growth Institutional Fund Class R and Class Z-2 shares may vary from the results shown above due to differences in expenses each class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER MID CAP GROWTH INSTITUTIONAL FUND
Fund Highlights Through October 31, 2023 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/23
AVERAGE ANNUAL TOTAL RETURNS
| 1 YEAR | 5 YEARS | 10 YEARS | ||||
| Class I | (0.17)% | 5.98% | 7.59% | |||
| Class R | (0.68)% | 5.48% | 7.05% | |||
| Russell Midcap Growth Index | 3.35% | 8.09% | 9.09% | |||
| 1 YEAR | 5 YEARS |
Since Inception |
||||
| Class Z-2 (Inception 10/14/16) | 0.28% | 6.37% | 9.41% | |||
| Russell Midcap Growth Index | 3.35% | 8.09% | 9.99% | |||
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.
ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Fund Highlights Through October 31, 2023 (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, 2023. Figures for the Alger Small Cap Growth Institutional Fund Class I shares and the Russell 2000 Growth Index include reinvestment of dividends. Figures for the Alger Small Cap Growth Institutional Fund Class I shares also include reinvestment of capital gains. Performance for the Alger Small Cap Growth Institutional Fund Class R and Class Z-2 shares may vary from the results shown above due to differences in expenses each class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Fund Highlights Through October 31, 2023 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/23
AVERAGE ANNUAL TOTAL RETURNS
| 1 YEAR | 5 YEARS | 10 YEARS | ||||
| Class I | (11.52)% | 1.50% | 5.13% | |||
| Class R | (12.00)% | 1.01% | 4.62% | |||
| Russell 2000 Growth Index | (7.63)% | 2.68% | 5.67% | |||
| 1 YEAR | 5 YEARS |
Since Inception |
||||
| Class Z-2 (Inception 8/1/16) | (11.25)% | 1.84% | 7.30% | |||
| Russell 2000 Growth Index | (7.63)% | 2.68% | 5.69% | |||
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.
October 31, 2023 (Unaudited)
| SECTORS | Alger Capital Appreciation Institutional Fund |
Alger Focus Equity Fund |
Alger Mid Cap Growth Institutional Fund | Alger Small Cap Growth Institutional Fund | ||||||||||||
| Communication Services | 15.0 | % | 16.0 | % | 6.7 | % | 4.7 | % | ||||||||
| Consumer Discretionary | 12.6 | 12.6 | 11.3 | 11.1 | ||||||||||||
| Consumer Staples | 0.0 | 0.0 | 1.5 | 3.6 | ||||||||||||
| Energy | 3.3 | 3.1 | 3.6 | 4.4 | ||||||||||||
| Financials | 5.4 | 6.5 | 8.4 | 3.5 | ||||||||||||
| Healthcare | 13.1 | 13.0 | 15.7 | 30.6 | ||||||||||||
| Industrials | 6.9 | 6.2 | 17.7 | 8.4 | ||||||||||||
| Information Technology | 41.5 | 38.0 | 27.5 | 32.2 | ||||||||||||
| Materials | 1.4 | 1.8 | 2.1 | 0.6 | ||||||||||||
| Real Estate | 0.0 | 0.0 | 4.9 | 0.0 | ||||||||||||
| Short-Term Investments and Net Other Assets | 0.8 | 2.8 | 0.6 | 0.9 | ||||||||||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
† Based on net assets for each Fund.
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments October 31, 2023
| COMMON STOCKS—98.9% | SHARES | VALUE | ||||||
| ADVERTISING—0.7% | | | ||||||
| The Trade Desk, Inc., Cl. A* | 166,439 | $ | 11,810,511 | |||||
| AEROSPACE & DEFENSE—2.7% | | | ||||||
| HEICO Corp. | 102,515 | 16,239,401 | ||||||
| TransDigm Group, Inc.* | 40,698 | 33,701,607 | ||||||
| 49,941,008 | ||||||||
| APPLICATION SOFTWARE—4.0% | | | ||||||
| Adobe, Inc.* | 76,339 | 40,616,928 | ||||||
| Cadence Design Systems, Inc.* | 62,914 | 15,089,923 | ||||||
| Intuit, Inc. | 35,064 | 17,354,927 | ||||||
| 73,061,778 | ||||||||
| AUTOMOBILE MANUFACTURERS—1.4% | | | ||||||
| Rivian Automotive, Inc., Cl. A* | 77,769 | 1,261,413 | ||||||
| Tesla, Inc.* | 122,034 | 24,509,309 | ||||||
| 25,770,722 | ||||||||
| AUTOMOTIVE PARTS & EQUIPMENT—0.3% | | | ||||||
| Mobileye Global, Inc., Cl. A* | 160,473 | 5,724,072 | ||||||
| BIOTECHNOLOGY—4.0% | | | ||||||
| Amgen, Inc. | 59,459 | 15,203,666 | ||||||
| Natera, Inc.* | 522,660 | 20,629,390 | ||||||
| Regeneron Pharmaceuticals, Inc.* | 11,152 | 8,697,333 | ||||||
| Vaxcyte, Inc.* | 306,406 | 14,738,129 | ||||||
| Vertex Pharmaceuticals, Inc.* | 38,086 | 13,791,322 | ||||||
| 73,059,840 | ||||||||
| BROADLINE RETAIL—9.0% | | | ||||||
| Amazon.com, Inc.* | 1,006,637 | 133,973,319 | ||||||
| MercadoLibre, Inc.* | 23,827 | 29,563,112 | ||||||
| 163,536,431 | ||||||||
| CARGO GROUND TRANSPORTATION—0.4% | | | ||||||
| Old Dominion Freight Line, Inc. | 20,135 | 7,584,049 | ||||||
| CASINOS & GAMING—1.2% | | | ||||||
| DraftKings, Inc., Cl. A* | 425,811 | 11,760,900 | ||||||
| Flutter Entertainment PLC* | 67,000 | 10,523,831 | ||||||
| 22,284,731 | ||||||||
| CONSTRUCTION & ENGINEERING—0.5% | | | ||||||
| Quanta Services, Inc. | 59,653 | 9,969,209 | ||||||
| CONSTRUCTION MACHINERY & HEAVY TRANSPORTATION EQUIPMENT—0.5% | | |||||||
| Wabtec Corp. | 87,931 | 9,322,445 | ||||||
| CONSTRUCTION MATERIALS—1.1% | | | ||||||
| Martin Marietta Materials, Inc. | 48,792 | 19,953,000 | ||||||
| ELECTRICAL COMPONENTS & EQUIPMENT—1.2% | | | ||||||
| Eaton Corp., PLC | 35,096 | 7,296,810 | ||||||
| Vertiv Holdings Co., Cl. A | 369,708 | 14,518,433 | ||||||
| 21,815,243 | ||||||||
| ENVIRONMENTAL & FACILITIES SERVICES—1.1% | | | ||||||
| GFL Environmental, Inc. | 596,653 | 17,195,539 | ||||||
| Veralto Corp.* | 28,729 | 1,982,301 | ||||||
| | 19,177,840 | |||||||
THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—98.9% (CONT.) | SHARES | VALUE | ||||||
| FINANCIAL EXCHANGES & DATA—2.2% | | | ||||||
| CME Group, Inc., Cl. A | 71,697 | $ | 15,304,442 | |||||
| S&P Global, Inc. | 69,243 | 24,187,272 | ||||||
| 39,491,714 | ||||||||
| HEALTHCARE DISTRIBUTORS—1.1% | | | ||||||
| McKesson Corp. | 42,760 | 19,471,194 | ||||||
| HEALTHCARE EQUIPMENT—2.8% | | | ||||||
| Boston Scientific Corp.* | 396,096 | 20,276,154 | ||||||
| Dexcom, Inc.* | 171,988 | 15,277,694 | ||||||
| Intuitive Surgical, Inc.* | 51,369 | 13,469,979 | ||||||
| TransMedics Group, Inc.* | 33,973 | 1,273,308 | ||||||
| 50,297,135 | ||||||||
| HEALTHCARE FACILITIES—0.8% | | | ||||||
| Acadia Healthcare Co., Inc.* | 204,460 | 15,029,855 | ||||||
| HOTELS RESORTS & CRUISE LINES—0.7% | | | ||||||
| Booking Holdings, Inc.* | 2,092 | 5,835,760 | ||||||
| Trip.com Group Ltd.#,* | 214,519 | 7,293,646 | ||||||
| 13,129,406 | ||||||||
| INDUSTRIAL GASES—0.3% | | | ||||||
| Air Products & Chemicals, Inc. | 21,869 | 6,176,680 | ||||||
| INTERACTIVE MEDIA & SERVICES—11.6% | | | ||||||
| Alphabet, Inc., Cl. C* | 721,990 | 90,465,347 | ||||||
| Meta Platforms, Inc., Cl. A* | 333,652 | 100,519,338 | ||||||
| Pinterest, Inc., Cl. A* | 671,883 | 20,075,864 | ||||||
| 211,060,549 | ||||||||
| INTERNET SERVICES & INFRASTRUCTURE—0.6% | | | ||||||
| MongoDB, Inc., Cl. A* | 30,027 | 10,347,004 | ||||||
| LIFE SCIENCES TOOLS & SERVICES—0.9% | | | ||||||
| Danaher Corp. | 86,188 | 16,549,820 | ||||||
| MANAGED HEALTHCARE—2.3% | | | ||||||
| Humana, Inc. | 37,643 | 19,713,263 | ||||||
| UnitedHealth Group, Inc. | 43,099 | 23,082,100 | ||||||
| 42,795,363 | ||||||||
| MOVIES & ENTERTAINMENT—2.7% | | | ||||||
| Liberty Media Corp. Series C Liberty Formula One* | 214,654 | 13,885,967 | ||||||
| Netflix, Inc.* | 75,014 | 30,882,514 | ||||||
| Spotify Technology SA* | 29,275 | 4,823,349 | ||||||
| 49,591,830 | ||||||||
| OIL & GAS EQUIPMENT & SERVICES—1.0% | | | ||||||
| Schlumberger NV | 316,831 | 17,634,813 | ||||||
| OIL & GAS EXPLORATION & PRODUCTION—1.7% | | | ||||||
| Diamondback Energy, Inc. | 59,814 | 9,589,381 | ||||||
| Hess Corp. | 62,681 | 9,051,136 | ||||||
| Pioneer Natural Resources Co. | 49,851 | 11,914,389 | ||||||
| 30,554,906 | ||||||||
| OIL & GAS STORAGE & TRANSPORTATION—0.6% | | | ||||||
| Cheniere Energy, Inc. | 70,692 | 11,764,563 | ||||||
| PASSENGER GROUND TRANSPORTATION—0.5% | | | ||||||
| Uber Technologies, Inc.* | 215,915 | 9,344,801 | ||||||
THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—98.9% (CONT.) | SHARES | VALUE | ||||||
| PHARMACEUTICALS—1.2% | | | ||||||
| Eli Lilly & Co. | 40,373 | $ | 22,363,816 | |||||
| SEMICONDUCTORS—12.0% | | | ||||||
| Advanced Micro Devices, Inc.* | 150,331 | 14,807,603 | ||||||
| Broadcom, Inc. | 21,643 | 18,209,771 | ||||||
| Marvell Technology, Inc. | 616,277 | 29,100,600 | ||||||
| NVIDIA Corp. | 338,681 | 138,114,112 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd.# | 215,865 | 18,631,308 | ||||||
| 218,863,394 | ||||||||
| SYSTEMS SOFTWARE—16.9% | | | ||||||
| Microsoft Corp. | 833,706 | 281,884,336 | ||||||
| Oracle Corp. | 36,711 | 3,795,917 | ||||||
| Palo Alto Networks, Inc.* | 6,127 | 1,488,984 | ||||||
| ServiceNow, Inc.* | 36,470 | 21,220,069 | ||||||
| 308,389,306 | ||||||||
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.7% | | | ||||||
| Apple, Inc. | 764,965 | 130,633,073 | ||||||
| Dell Technologies, Inc., Cl. C | 139,448 | 9,330,466 | ||||||
| 139,963,539 | ||||||||
| TRANSACTION & PAYMENT PROCESSING SERVICES—3.2% | | | ||||||
| Visa, Inc., Cl. A | 246,200 | 57,881,620 | ||||||
| TOTAL COMMON STOCKS | ||||||||
| (Cost $1,025,548,058) | 1,803,712,187 | |||||||
| PREFERRED STOCKS—0.1% | SHARES | VALUE | ||||||
| DATA PROCESSING & OUTSOURCED SERVICES—0.1% | | | ||||||
| Chime Financial, Inc., Series G*,@,(a) | 38,919 | 1,467,635 | ||||||
| (Cost $2,688,128) | 1,467,635 | |||||||
| SPECIAL PURPOSE VEHICLE—0.2% | VALUE | |||||||
| DATA PROCESSING & OUTSOURCED SERVICES—0.2% | | | ||||||
| Crosslink Ventures C, LLC, Cl. A*,@,(a),(b) | 2,831,337 | |||||||
| (Cost $3,075,000) | 2,831,337 | |||||||
| Total Investments | ||||||||
| (Cost $1,031,311,186) | 99.2 | % | $ | 1,808,011,159 | ||||
| Affiliated Securities (Cost $3,075,000) | 2,831,337 | |||||||
| Unaffiliated Securities (Cost $1,028,236,186) | 1,805,179,822 | |||||||
| Other Assets in Excess of Liabilities | 0.8 | % | 15,418,116 | |||||
| NET ASSETS | 100.0 | % | $ | 1,823,429,275 | ||||
| # | American Depositary Receipts. |
| (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Valuation Designee (as defined in Note 2). |
| (b) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| * | Non-income producing security. |
THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| Security | Acquisition Date(s) |
Acquisition Cost |
% of net assets (Acquisition Date) |
Market Value |
% of net assets as of 10/31/2023 |
|||||||||||||||
| Chime Financial, Inc., Series G | 8/24/21 | $ | 2,688,128 | 0.06 | % | $ | 1,467,635 | 0.08 | % | |||||||||||
| Crosslink Ventures C, LLC, Cl. A | 10/2/20 | 3,075,000 | 0.08 | % | 2,831,337 | 0.16 | % | |||||||||||||
| Total | $ | 4,298,972 | 0.24 | % | ||||||||||||||||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS | ALGER FOCUS EQUITY FUND
Schedule of Investments October 31, 2023
| COMMON STOCKS—97.2% | SHARES | VALUE | ||||||
| ADVERTISING—0.7% | | | ||||||
| The Trade Desk, Inc., Cl. A* | 106,802 | $ | 7,578,670 | |||||
| AEROSPACE & DEFENSE—1.7% | | | ||||||
| TransDigm Group, Inc.* | 23,236 | 19,241,499 | ||||||
| APPLICATION SOFTWARE—3.9% | | | ||||||
| Adobe, Inc.* | 55,675 | 29,622,441 | ||||||
| Cadence Design Systems, Inc.* | 15,894 | 3,812,176 | ||||||
| Intuit, Inc. | 20,453 | 10,123,212 | ||||||
| 43,557,829 | ||||||||
| ASSET MANAGEMENT & CUSTODY BANKS—0.5% | | | ||||||
| Ares Management Corp., Cl. A | 59,456 | 5,861,767 | ||||||
| AUTOMOBILE MANUFACTURERS—1.4% | | | ||||||
| Tesla, Inc.* | 78,312 | 15,728,182 | ||||||
| AUTOMOTIVE PARTS & EQUIPMENT—0.7% | | | ||||||
| Mobileye Global, Inc., Cl. A* | 214,455 | 7,649,610 | ||||||
| BIOTECHNOLOGY—3.3% | | | ||||||
| Amgen, Inc. | 40,568 | 10,373,238 | ||||||
| Natera, Inc.* | 439,533 | 17,348,368 | ||||||
| Vaxcyte, Inc.* | 187,725 | 9,029,572 | ||||||
| 36,751,178 | ||||||||
| BROADLINE RETAIL—8.5% | | | ||||||
| Amazon.com, Inc.* | 545,373 | 72,583,692 | ||||||
| MercadoLibre, Inc.* | 17,959 | 22,282,450 | ||||||
| 94,866,142 | ||||||||
| CASINOS & GAMING—1.4% | | | ||||||
| DraftKings, Inc., Cl. A* | 273,216 | 7,546,226 | ||||||
| Flutter Entertainment PLC* | 39,384 | 6,186,128 | ||||||
| MGM Resorts International | 46,907 | 1,637,992 | ||||||
| 15,370,346 | ||||||||
| CONSTRUCTION MACHINERY & HEAVY TRANSPORTATION EQUIPMENT—0.7% | | |||||||
| Wabtec Corp. | 73,587 | 7,801,694 | ||||||
| CONSTRUCTION MATERIALS—1.3% | | | ||||||
| Martin Marietta Materials, Inc. | 35,599 | 14,557,855 | ||||||
| ELECTRICAL COMPONENTS & EQUIPMENT—1.4% | | | ||||||
| Eaton Corp., PLC | 13,658 | 2,839,635 | ||||||
| Vertiv Holdings Co., Cl. A | 328,628 | 12,905,221 | ||||||
| 15,744,856 | ||||||||
| ENVIRONMENTAL & FACILITIES SERVICES—2.4% | | | ||||||
| GFL Environmental, Inc. | 926,520 | 26,702,306 | ||||||
| FINANCIAL EXCHANGES & DATA—3.0% | | | ||||||
| CME Group, Inc., Cl. A | 74,171 | 15,832,541 | ||||||
| S&P Global, Inc. | 50,567 | 17,663,559 | ||||||
| 33,496,100 | ||||||||
| HEALTHCARE DISTRIBUTORS—1.4% | | | ||||||
| McKesson Corp. | 34,187 | 15,567,392 | ||||||
| HEALTHCARE EQUIPMENT—2.6% | | | ||||||
| Boston Scientific Corp.* | 306,032 | 15,665,778 | ||||||
| TransMedics Group, Inc.* | 352,889 | 13,226,280 | ||||||
| | 28,892,058 | |||||||
THE ALGER INSTITUTIONAL FUNDS | ALGER FOCUS EQUITY FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—97.2% (CONT.) | SHARES | VALUE | ||||||
| HEALTHCARE FACILITIES—1.0% | | | ||||||
| Acadia Healthcare Co., Inc.* | 155,709 | $ | 11,446,169 | |||||
| HOTELS RESORTS & CRUISE LINES—0.6% | | | ||||||
| Trip.com Group Ltd.#,* | 194,032 | 6,597,088 | ||||||
| INDUSTRIAL GASES—0.5% | | | ||||||
| Air Products & Chemicals, Inc. | 20,696 | 5,845,378 | ||||||
| INTERACTIVE MEDIA & SERVICES—11.9% | | | ||||||
| Alphabet, Inc., Cl. C* | 452,037 | 56,640,236 | ||||||
| Meta Platforms, Inc., Cl. A* | 210,387 | 63,383,291 | ||||||
| Pinterest, Inc., Cl. A* | 421,761 | 12,602,219 | ||||||
| 132,625,746 | ||||||||
| LIFE SCIENCES TOOLS & SERVICES—0.6% | | | ||||||
| Danaher Corp. | 35,403 | 6,798,084 | ||||||
| MANAGED HEALTHCARE—2.2% | | | ||||||
| UnitedHealth Group, Inc. | 46,395 | 24,847,306 | ||||||
| MOVIES & ENTERTAINMENT—3.4% | | | ||||||
| Liberty Media Corp. Series C Liberty Formula One* | 255,087 | 16,501,578 | ||||||
| Netflix, Inc.* | 50,552 | 20,811,753 | ||||||
| 37,313,331 | ||||||||
| OIL & GAS EQUIPMENT & SERVICES—1.4% | | | ||||||
| Schlumberger NV | 267,880 | 14,910,201 | ||||||
| OIL & GAS EXPLORATION & PRODUCTION—1.7% | | | ||||||
| EOG Resources, Inc. | 146,727 | 18,524,284 | ||||||
| PHARMACEUTICALS—1.9% | | | ||||||
| AstraZeneca PLC# | 119,052 | 7,527,658 | ||||||
| Eli Lilly & Co. | 24,488 | 13,564,638 | ||||||
| 21,092,296 | ||||||||
| SEMICONDUCTORS—11.0% | | | ||||||
| Advanced Micro Devices, Inc.* | 91,093 | 8,972,661 | ||||||
| Marvell Technology, Inc. | 406,697 | 19,204,232 | ||||||
| NVIDIA Corp. | 205,005 | 83,601,039 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd.# | 130,199 | 11,237,476 | ||||||
| 123,015,408 | ||||||||
| SYSTEMS SOFTWARE—16.0% | | | ||||||
| Microsoft Corp. | 485,324 | 164,092,898 | ||||||
| ServiceNow, Inc.* | 24,703 | 14,373,440 | ||||||
| 178,466,338 | ||||||||
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.1% | | | ||||||
| Apple, Inc. | 464,699 | 79,356,648 | ||||||
| TRANSACTION & PAYMENT PROCESSING SERVICES—3.0% | | | ||||||
| Visa, Inc., Cl. A | 143,705 | 33,785,046 | ||||||
| TOTAL COMMON STOCKS | ||||||||
| (Cost $796,152,732) | 1,083,990,807 | |||||||
| PREFERRED STOCKS—0.0% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.0% | | | ||||||
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | 76,825 | — | ||||||
| (Cost $345,713) | | — | ||||||
THE ALGER INSTITUTIONAL FUNDS | ALGER FOCUS EQUITY FUND
Schedule of Investments October 31, 2023 (Continued)
| SHORT-TERM INVESTMENTS—0.4% | SHARES | VALUE | ||||||
| U.S. GOVERNMENT—0.4% | ||||||||
| U.S. Treasury Bill, 0.0%, 11/2/23 | 5,000,000 | $ | 4,999,278 | |||||
| (Cost $4,999,278) | 4,999,278 | |||||||
| Total Investments | ||||||||
| (Cost $801,497,723) | 97.6 | % | $ | 1,088,990,085 | ||||
| Affiliated Securities (Cost $345,713) | — | |||||||
| Unaffiliated Securities (Cost $801,152,010) | 1,088,990,085 | |||||||
| Other Assets in Excess of Liabilities | 2.4 | % | 26,502,522 | |||||
| NET ASSETS | 100.0 | % | $ | 1,115,492,607 | ||||
| # | American Depositary Receipts. |
| (a) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Valuation Designee (as defined in Note 2). |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| Security | Acquisition Date(s) |
Acquisition Cost |
% of net assets (Acquisition Date) |
Market Value |
% of net assets as of 10/31/2023 |
|||||||||||||||
| Prosetta Biosciences, Inc., Series D | 2/6/15 | $ | 345,713 | 0.80 | % | $ | 0 | 0.00 | % | |||||||||||
| Total | $ | 0 | 0.00 | % | ||||||||||||||||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023
| COMMON STOCKS—97.6% | SHARES | VALUE | ||||||
| ADVERTISING—2.4% | | | ||||||
| The Trade Desk, Inc., Cl. A* | 17,874 | $ | 1,268,339 | |||||
| AEROSPACE & DEFENSE—4.4% | | | ||||||
| HEICO Corp. | 7,866 | 1,246,053 | ||||||
| TransDigm Group, Inc.* | 1,365 | 1,130,343 | ||||||
| 2,376,396 | ||||||||
| APPLICATION SOFTWARE—14.2% | | | ||||||
| Bill.com Holdings, Inc.* | 2,041 | 186,323 | ||||||
| Cadence Design Systems, Inc.* | 5,875 | 1,409,119 | ||||||
| Constellation Software, Inc. | 887 | 1,778,292 | ||||||
| Datadog, Inc., Cl. A* | 12,226 | 996,052 | ||||||
| Guidewire Software, Inc.* | 10,664 | 961,146 | ||||||
| Manhattan Associates, Inc.* | 4,680 | 912,507 | ||||||
| Procore Technologies, Inc.* | 9,848 | 601,614 | ||||||
| The Descartes Systems Group, Inc.* | 11,763 | 850,255 | ||||||
| 7,695,308 | ||||||||
| ASSET MANAGEMENT & CUSTODY BANKS—2.2% | | | ||||||
| Ares Management Corp., Cl. A | 12,097 | 1,192,643 | ||||||
| AUTOMOTIVE PARTS & EQUIPMENT—0.5% | | | ||||||
| Mobileye Global, Inc., Cl. A* | 7,933 | 282,970 | ||||||
| AUTOMOTIVE RETAIL—1.7% | | | ||||||
| AutoZone, Inc.* | 364 | 901,675 | ||||||
| BIOTECHNOLOGY—2.6% | | | ||||||
| Natera, Inc.* | 26,267 | 1,036,758 | ||||||
| Vaxcyte, Inc.* | 8,096 | 389,418 | ||||||
| 1,426,176 | ||||||||
| BUILDING PRODUCTS—0.5% | | | ||||||
| Trex Co., Inc.* | 5,005 | 281,331 | ||||||
| CARGO GROUND TRANSPORTATION—2.4% | | | ||||||
| Old Dominion Freight Line, Inc. | 3,477 | 1,309,647 | ||||||
| CONSTRUCTION & ENGINEERING—0.8% | | | ||||||
| WillScot Mobile Mini Holdings Corp.* | 10,373 | 408,800 | ||||||
| CONSTRUCTION MACHINERY & HEAVY TRANSPORTATION EQUIPMENT—1.8% | | |||||||
| Wabtec Corp. | 9,074 | 962,025 | ||||||
| CONSTRUCTION MATERIALS—2.1% | | | ||||||
| Martin Marietta Materials, Inc. | 2,800 | 1,145,032 | ||||||
| CONSUMER STAPLES MERCHANDISE RETAIL—1.0% | | | ||||||
| BJ’s Wholesale Club Holdings, Inc.* | 8,182 | 557,358 | ||||||
| ELECTRICAL COMPONENTS & EQUIPMENT—1.1% | | | ||||||
| Vertiv Holdings Co., Cl. A | 14,546 | 571,221 | ||||||
| ELECTRONIC COMPONENTS—2.4% | | | ||||||
| Amphenol Corp., Cl. A | 16,284 | 1,311,676 | ||||||
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.0% | | | ||||||
| Novanta, Inc.* | 4,265 | 563,236 | ||||||
| ENVIRONMENTAL & FACILITIES SERVICES—3.0% | | | ||||||
| GFL Environmental, Inc. | 56,610 | 1,631,500 | ||||||
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—97.6% (CONT.) | SHARES | VALUE | ||||||
| FINANCIAL EXCHANGES & DATA—2.8% | | | ||||||
| MarketAxess Holdings, Inc. | 1,295 | $ | 276,806 | |||||
| MSCI, Inc., Cl. A | 2,659 | 1,253,852 | ||||||
| 1,530,658 | ||||||||
| HEALTHCARE EQUIPMENT—3.8% | | | ||||||
| Dexcom, Inc.* | 7,528 | 668,712 | ||||||
| IDEXX Laboratories, Inc.* | 2,941 | 1,174,841 | ||||||
| Insulet Corp.* | 1,503 | 199,253 | ||||||
| 2,042,806 | ||||||||
| HEALTHCARE FACILITIES—1.8% | | | ||||||
| Acadia Healthcare Co., Inc.* | 12,858 | 945,192 | ||||||
| HEALTHCARE TECHNOLOGY—1.9% | | | ||||||
| Veeva Systems, Inc., Cl. A* | 5,222 | 1,006,332 | ||||||
| HOME IMPROVEMENT RETAIL—1.0% | | | ||||||
| Floor & Decor Holdings, Inc., Cl. A* | 6,812 | 561,309 | ||||||
| HOMEBUILDING—1.7% | | | ||||||
| NVR, Inc.* | 173 | 936,383 | ||||||
| HOTELS RESORTS & CRUISE LINES—2.0% | | | ||||||
| Hilton Worldwide Holdings, Inc. | 7,241 | 1,097,229 | ||||||
| HUMAN RESOURCE & EMPLOYMENT SERVICES—1.3% | | | ||||||
| Paycom Software, Inc. | 1,831 | 448,540 | ||||||
| Paylocity Holding Corp.* | 1,527 | 273,944 | ||||||
| 722,484 | ||||||||
| INSURANCE BROKERS—1.5% | | | ||||||
| Ryan Specialty Holdings, Inc., Cl. A* | 18,365 | 793,368 | ||||||
| INTERACTIVE MEDIA & SERVICES—1.7% | | | ||||||
| Pinterest, Inc., Cl. A* | 29,667 | 886,450 | ||||||
| INTERNET SERVICES & INFRASTRUCTURE—2.3% | | | ||||||
| MongoDB, Inc., Cl. A* | 3,526 | 1,215,024 | ||||||
| IT CONSULTING & OTHER SERVICES—2.0% | | | ||||||
| Globant SA* | 6,268 | 1,067,378 | ||||||
| LIFE SCIENCES TOOLS & SERVICES—5.1% | | | ||||||
| Mettler-Toledo International, Inc.* | 403 | 397,035 | ||||||
| Repligen Corp.* | 7,934 | 1,067,599 | ||||||
| West Pharmaceutical Services, Inc. | 4,065 | 1,293,849 | ||||||
| 2,758,483 | ||||||||
| MOVIES & ENTERTAINMENT—2.6% | | | ||||||
| Liberty Media Corp. Series C Liberty Formula One* | 13,509 | 873,897 | ||||||
| Spotify Technology SA* | 3,300 | 543,708 | ||||||
| 1,417,605 | ||||||||
| OIL & GAS EXPLORATION & PRODUCTION—3.6% | | | ||||||
| Diamondback Energy, Inc. | 12,169 | 1,950,934 | ||||||
| OTHER SPECIALTY RETAIL—0.7% | | | ||||||
| Five Below, Inc.* | 2,182 | 379,624 | ||||||
| PROPERTY & CASUALTY INSURANCE—1.9% | | | ||||||
| Intact Financial Corp. | 7,115 | 999,738 | ||||||
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—97.6% (CONT.) | SHARES | VALUE | ||||||
| REAL ESTATE SERVICES—4.9% | | | ||||||
| CoStar Group, Inc.* | 13,496 | $ | 990,742 | |||||
| FirstService Corp. | 11,888 | 1,681,795 | ||||||
| 2,672,537 | ||||||||
| RESEARCH & CONSULTING SERVICES—2.4% | | | ||||||
| TransUnion | 2,911 | 127,735 | ||||||
| Verisk Analytics, Inc., Cl. A | 5,029 | 1,143,393 | ||||||
| 1,271,128 | ||||||||
| RESTAURANTS—3.7% | | | ||||||
| Chipotle Mexican Grill, Inc., Cl. A* | 533 | 1,035,193 | ||||||
| Domino’s Pizza, Inc. | 2,887 | 978,664 | ||||||
| 2,013,857 | ||||||||
| SEMICONDUCTORS—4.3% | | | ||||||
| Lattice Semiconductor Corp.* | 6,938 | 385,822 | ||||||
| Marvell Technology, Inc. | 24,192 | 1,142,346 | ||||||
| ON Semiconductor Corp.* | 12,227 | 765,900 | ||||||
| 2,294,068 | ||||||||
| SOFT DRINKS & NON-ALCOHOLIC BEVERAGES—0.5% | | | ||||||
| Celsius Holdings, Inc.* | 1,817 | 276,348 | ||||||
| TOTAL COMMON STOCKS | ||||||||
| (Cost $50,439,011) | 52,724,268 | |||||||
| PREFERRED STOCKS—0.0% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.0% | | | ||||||
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | 166,009 | — | ||||||
| (Cost $747,040) | — | |||||||
| WARRANTS—0.0% | SHARES | VALUE | ||||||
| APPLICATION SOFTWARE—0.0% | | | ||||||
| Constellation Software, Inc., 3/31/40*,(b) | 638 | — | ||||||
| (Cost $0) | — | |||||||
| RIGHTS—0.5% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.5% | | | ||||||
| Tolero CDR*,@,(b),(c) | 422,928 | 287,591 | ||||||
| (Cost $226,186) | 287,591 | |||||||
| SPECIAL PURPOSE VEHICLE—1.3% | VALUE | |||||||
| DATA PROCESSING & OUTSOURCED SERVICES—1.3% | | | ||||||
| Crosslink Ventures C, LLC, Cl. A*,@,(a),(b) | 506,418 | |||||||
| Crosslink Ventures C, LLC, Cl. B*,@,(a),(b) | 207,171 | |||||||
| 713,589 | ||||||||
| TOTAL SPECIAL PURPOSE VEHICLE | ||||||||
| (Cost $775,000) | 713,589 | |||||||
| Total Investments | ||||||||
| (Cost $52,187,237) | 99.4 | % | $ | 53,725,448 | ||||
| Affiliated Securities (Cost $1,522,040) | 713,589 | |||||||
| Unaffiliated Securities (Cost $50,665,197) | 53,011,859 | |||||||
| Other Assets in Excess of Liabilities | 0.6 | % | 345,784 | |||||
| NET ASSETS | 100.0 | % | $ | 54,071,232 | ||||
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| (a) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Valuation Designee (as defined in Note 2). |
| (c) | Contingent Deferred Rights. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| Security | Acquisition Date(s) |
Acquisition Cost |
% of net assets (Acquisition Date) |
Market Value |
% of net assets as of 10/31/2023 |
|||||||||||||||
| Crosslink Ventures C, LLC, Cl. A | 10/2/20 | $ | 550,000 | 0.50 | % | $ | 506,418 | 0.94 | % | |||||||||||
| Crosslink Ventures C, LLC, Cl. B | 12/16/20 | 225,000 | 0.19 | % | 207,171 | 0.38 | % | |||||||||||||
| Prosetta Biosciences, Inc., Series D | 2/6/15 | 747,040 | 0.50 | % | 0 | 0.00 | % | |||||||||||||
| Tolero CDR | 2/6/17 | 226,186 | 0.23 | % | 287,591 | 0.53 | % | |||||||||||||
| Total | $ | 1,001,180 | 1.85 | % | ||||||||||||||||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023
| COMMON STOCKS—93.3% | SHARES | VALUE | ||||||
| AEROSPACE & DEFENSE—4.5% | | | ||||||
| HEICO Corp. | 17,374 | $ | 2,752,215 | |||||
| Hexcel Corp. | 10,419 | 645,145 | ||||||
| Mercury Systems, Inc.* | 36,403 | 1,309,780 | ||||||
| 4,707,140 | ||||||||
| APPAREL ACCESSORIES & LUXURY GOODS—1.5% | | | ||||||
| Capri Holdings Ltd.* | 31,276 | 1,600,706 | ||||||
| APPAREL RETAIL—1.0% | | | ||||||
| Victoria’s Secret & Co.* | 59,084 | 1,056,422 | ||||||
| APPLICATION SOFTWARE—23.8% | | | ||||||
| ACI Worldwide, Inc.* | 22,028 | 448,710 | ||||||
| Alteryx, Inc., Cl. A* | 9,981 | 319,492 | ||||||
| AppFolio, Inc., Cl. A* | 10,065 | 1,887,892 | ||||||
| Bill.com Holdings, Inc.* | 11,877 | 1,084,251 | ||||||
| Blackbaud, Inc.* | 16,864 | 1,102,906 | ||||||
| Blackline, Inc.* | 26,519 | 1,302,083 | ||||||
| Everbridge, Inc.* | 40,138 | 827,244 | ||||||
| Guidewire Software, Inc.* | 16,253 | 1,464,883 | ||||||
| HubSpot, Inc.* | 3,961 | 1,678,553 | ||||||
| Manhattan Associates, Inc.* | 25,480 | 4,968,091 | ||||||
| Q2 Holdings, Inc.* | 46,342 | 1,391,650 | ||||||
| Smartsheet, Inc., Cl. A* | 30,478 | 1,205,100 | ||||||
| Sprout Social, Inc., Cl. A* | 29,462 | 1,275,115 | ||||||
| SPS Commerce, Inc.* | 26,513 | 4,251,095 | ||||||
| Vertex, Inc., Cl. A* | 78,638 | 1,903,826 | ||||||
| 25,110,891 | ||||||||
| ASSET MANAGEMENT & CUSTODY BANKS—0.9% | | | ||||||
| Affiliated Managers Group, Inc. | 7,532 | 924,628 | ||||||
| AUTOMOTIVE PARTS & EQUIPMENT—0.0% | | | ||||||
| Atmus Filtration Technologies, Inc.* | 1,762 | 33,055 | ||||||
| BIOTECHNOLOGY—10.2% | | | ||||||
| ACELYRIN, Inc.* | 10,798 | 109,978 | ||||||
| ADMA Biologics, Inc.* | 199,296 | 673,620 | ||||||
| Akero Therapeutics, Inc.* | 10,493 | 125,077 | ||||||
| Arcus Biosciences, Inc.* | 16,387 | 257,440 | ||||||
| Bridgebio Pharma, Inc.* | 20,438 | 532,206 | ||||||
| Cabaletta Bio, Inc.* | 109,132 | 1,556,222 | ||||||
| ImmunoGen, Inc.* | 37,049 | 550,548 | ||||||
| Immunovant, Inc.* | 38,620 | 1,276,391 | ||||||
| Karuna Therapeutics, Inc.* | 5,680 | 946,345 | ||||||
| Krystal Biotech, Inc.* | 4,836 | 565,183 | ||||||
| Mirati Therapeutics, Inc.* | 5,478 | 304,193 | ||||||
| MoonLake Immunotherapeutics, Cl. A* | 25,122 | 1,301,571 | ||||||
| Morphic Holding, Inc.* | 14,049 | 280,278 | ||||||
| Nuvalent, Inc., Cl. A* | 14,359 | 747,960 | ||||||
| Prothena Corp., PLC* | 6,845 | 249,569 | ||||||
| RAPT Therapeutics, Inc.* | 18,247 | 239,948 | ||||||
| Vaxcyte, Inc.* | 20,624 | 992,014 | ||||||
| 10,708,543 | ||||||||
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—93.3% (CONT.) | SHARES | VALUE | ||||||
| BUILDING PRODUCTS—0.3% | | | ||||||
| The AZEK Co., Inc., Cl. A* | 12,825 | $ | 336,015 | |||||
| CONSTRUCTION MATERIALS—0.5% | | | ||||||
| Summit Materials, Inc., Cl. A* | 16,997 | 559,201 | ||||||
| CONSUMER STAPLES MERCHANDISE RETAIL—1.3% | | | ||||||
| BJ’s Wholesale Club Holdings, Inc.* | 19,680 | 1,340,601 | ||||||
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.0% | | | ||||||
| 908 Devices, Inc.* | 179,361 | 1,063,611 | ||||||
| FOOTWEAR—0.7% | | | ||||||
| On Holding AG, Cl. A* | 27,618 | 708,954 | ||||||
| HEALTHCARE DISTRIBUTORS—0.4% | | | ||||||
| PetIQ, Inc., Cl. A* | 24,606 | 461,854 | ||||||
| HEALTHCARE EQUIPMENT—5.0% | | | ||||||
| Impulse Dynamics PLC, Class E*,@,(a) | 532,406 | 1,517,357 | ||||||
| Inmode Ltd.* | 35,640 | 680,724 | ||||||
| Insulet Corp.* | 6,477 | 858,656 | ||||||
| QuidelOrtho Corp.* | 22,164 | 1,353,777 | ||||||
| Shockwave Medical, Inc.* | 2,370 | 488,836 | ||||||
| Tandem Diabetes Care, Inc.* | 20,218 | 349,772 | ||||||
| 5,249,122 | ||||||||
| HEALTHCARE SERVICES—0.6% | | | ||||||
| Guardant Health, Inc.* | 10,661 | 275,907 | ||||||
| Privia Health Group, Inc.* | 19,151 | 402,554 | ||||||
| 678,461 | ||||||||
| HEALTHCARE SUPPLIES—0.8% | | | ||||||
| Neogen Corp.* | 58,266 | 867,581 | ||||||
| HEALTHCARE TECHNOLOGY—1.8% | | | ||||||
| Doximity, Inc., Cl. A* | 7,369 | 150,548 | ||||||
| Veeva Systems, Inc., Cl. A* | 9,277 | 1,787,771 | ||||||
| 1,938,319 | ||||||||
| HOMEBUILDING—1.0% | | | ||||||
| Skyline Champion Corp.* | 18,355 | 1,076,154 | ||||||
| HOMEFURNISHING RETAIL—0.6% | | | ||||||
| RH* | 2,749 | 599,172 | ||||||
| HOTELS RESORTS & CRUISE LINES—0.2% | | | ||||||
| MakeMyTrip Ltd.* | 5,677 | 219,870 | ||||||
| HUMAN RESOURCE & EMPLOYMENT SERVICES—0.1% | | | ||||||
| Paycom Software, Inc. | 334 | 81,820 | ||||||
| INDUSTRIAL MACHINERY & SUPPLIES & COMPONENTS—3.1% | | | ||||||
| Gates Industrial Corp., PLC* | 80,650 | 880,698 | ||||||
| RBC Bearings, Inc.* | 6,617 | 1,454,681 | ||||||
| The Middleby Corp.* | 8,550 | 965,039 | ||||||
| 3,300,418 | ||||||||
| INTERACTIVE HOME ENTERTAINMENT—1.8% | | | ||||||
| Take-Two Interactive Software, Inc.* | 13,859 | 1,853,641 | ||||||
| INTERACTIVE MEDIA & SERVICES—0.8% | | | ||||||
| Bumble, Inc., Cl. A* | 61,995 | 833,213 | ||||||
| LEISURE FACILITIES—1.1% | | | ||||||
| Planet Fitness, Inc., Cl. A* | 20,244 | 1,118,886 | ||||||
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—93.3% (CONT.) | SHARES | VALUE | ||||||
| LIFE SCIENCES TOOLS & SERVICES—6.3% | | | ||||||
| Bio-Techne Corp. | 44,158 | $ | 2,412,352 | |||||
| CryoPort, Inc.* | 49,023 | 475,523 | ||||||
| ICON PLC* | 7,436 | 1,814,087 | ||||||
| MaxCyte, Inc.* | 76,412 | 226,179 | ||||||
| Mesa Laboratories, Inc. | 3,596 | 337,413 | ||||||
| Quanterix Corp.* | 8,534 | 185,358 | ||||||
| Repligen Corp.* | 9,206 | 1,238,759 | ||||||
| 6,689,671 | ||||||||
| MANAGED HEALTHCARE—2.4% | | | ||||||
| HealthEquity, Inc.* | 35,812 | 2,567,004 | ||||||
| MOVIES & ENTERTAINMENT—2.1% | | | ||||||
| Live Nation Entertainment, Inc.* | 27,942 | 2,235,919 | ||||||
| OIL & GAS EQUIPMENT & SERVICES—1.1% | | | ||||||
| ChampionX Corp. | 37,900 | 1,167,320 | ||||||
| OIL & GAS EXPLORATION & PRODUCTION—3.3% | | | ||||||
| Magnolia Oil & Gas Corp., Cl. A | 155,412 | 3,488,999 | ||||||
| PERSONAL CARE PRODUCTS—1.0% | | | ||||||
| e.l.f. Beauty, Inc.* | 5,954 | 551,519 | ||||||
| Oddity Tech Ltd., Cl. A* | 18,151 | 463,758 | ||||||
| 1,015,277 | ||||||||
| PHARMACEUTICALS—2.8% | | | ||||||
| Cymabay Therapeutics, Inc.* | 61,525 | 1,007,780 | ||||||
| Pliant Therapeutics, Inc.* | 21,305 | 312,544 | ||||||
| Structure Therapeutics, Inc.#,* | 20,217 | 1,502,123 | ||||||
| Ventyx Biosciences, Inc.* | 9,985 | 143,984 | ||||||
| 2,966,431 | ||||||||
| REGIONAL BANKS—1.0% | | | ||||||
| Webster Financial Corp. | 26,511 | 1,006,623 | ||||||
| RESTAURANTS—5.0% | | | ||||||
| Cava Group, Inc.* | 7,795 | 246,244 | ||||||
| Kura Sushi USA, Inc., Cl. A* | 22,813 | 1,303,535 | ||||||
| Shake Shack, Inc., Cl. A* | 15,078 | 844,971 | ||||||
| Wingstop, Inc. | 15,712 | 2,871,682 | ||||||
| 5,266,432 | ||||||||
| SEMICONDUCTORS—1.4% | | | ||||||
| Rambus, Inc.* | 11,412 | 620,014 | ||||||
| Universal Display Corp. | 6,344 | 882,958 | ||||||
| 1,502,972 | ||||||||
| SOFT DRINKS & NON-ALCOHOLIC BEVERAGES—1.3% | | | ||||||
| Celsius Holdings, Inc.* | 9,009 | 1,370,179 | ||||||
| SPECIALTY CHEMICALS—0.1% | | | ||||||
| Balchem Corp. | 726 | 84,390 | ||||||
| SYSTEMS SOFTWARE—0.5% | | | ||||||
| Rapid7, Inc.* | 11,290 | 524,872 | ||||||
| TRADING COMPANIES & DISTRIBUTORS—0.4% | | | ||||||
| Xometry, Inc., Cl. A* | 25,951 | 377,587 | ||||||
| TRANSACTION & PAYMENT PROCESSING SERVICES—1.6% | | | ||||||
| DLocal Ltd., Cl. A* | 67,572 | 1,138,588 | ||||||
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments October 31, 2023 (Continued)
| COMMON STOCKS—93.3% (CONT.) | SHARES | VALUE | ||||||
| TRANSACTION & PAYMENT PROCESSING SERVICES—1.6% (CONT.) | ||||||||
| Marqeta, Inc., Cl. A* | 110,211 | $ | 569,791 | |||||
| 1,708,379 | ||||||||
| TOTAL COMMON STOCKS | ||||||||
| (Cost $83,997,615) | 98,400,333 | |||||||
| PREFERRED STOCKS—4.1% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.0% | ||||||||
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | 133,263 | — | ||||||
| DATA PROCESSING & OUTSOURCED SERVICES—4.1% | ||||||||
| Chime Financial, Inc., Series G*,@,(a) | 114,399 | 4,313,986 | ||||||
| TOTAL PREFERRED STOCKS | ||||||||
| (Cost $8,501,200) | 4,313,986 | |||||||
| RIGHTS—0.3% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.3% | ||||||||
| Tolero CDR*,@,(a),(c) | 528,559 | 359,420 | ||||||
| (Cost $285,725) | 359,420 | |||||||
| SPECIAL PURPOSE VEHICLE—1.4% | VALUE | |||||||
| DATA PROCESSING & OUTSOURCED SERVICES—1.4% | ||||||||
| Crosslink Ventures C, LLC, Cl. A*,@,(a),(b) | 1,173,969 | |||||||
| Crosslink Ventures C, LLC, Cl. B*,@,(a),(b) | 299,247 | |||||||
| 1,473,216 | ||||||||
| TOTAL SPECIAL PURPOSE VEHICLE | ||||||||
| (Cost $1,600,000) | 1,473,216 | |||||||
| Total Investments | ||||||||
| (Cost $94,384,540) | 99.1 | % | $ | 104,546,955 | ||||
| Affiliated Securities (Cost $2,199,684) | 1,473,216 | |||||||
| Unaffiliated Securities (Cost $92,184,856) | 103,073,739 | |||||||
| Other Assets in Excess of Liabilities | 0.9 | % | 903,607 | |||||
| NET ASSETS | 100.0 | % | $ | 105,450,562 | ||||
| # | American Depositary Receipts. |
| (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Valuation Designee (as defined in Note 2). |
| (b) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (c) | Contingent Deferred Rights. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| Security | Acquisition Date(s) |
Acquisition Cost |
% of net assets (Acquisition Date) |
Market Value |
% of net assets as of 10/31/2023 |
||||||||||||||
| Chime Financial, Inc., Series G | 8/24/21 | $ | 7,901,516 | 2.12 | % | $ | 4,313,986 | 4.09 | % | ||||||||||
| Crosslink Ventures C, LLC, Cl. A | 10/2/20 | 1,275,000 | 0.49 | % | 1,173,969 | 1.11 | % | ||||||||||||
| Crosslink Ventures C, LLC, Cl. B | 12/16/20 | 325,000 | 0.11 | % | 299,247 | 0.29 | % | ||||||||||||
| Impulse Dynamics PLC, Class E | 2/11/22 | 1,756,940 | 0.71 | % | 1,517,357 | 1.44 | % | ||||||||||||
| Prosetta Biosciences, Inc., Series D | 2/6/15 | 599,684 | 0.10 | % | 0 | 0.00 | % | ||||||||||||
| Tolero CDR | 2/6/17 | 285,725 | 0.16 | % | 359,420 | 0.34 | % | ||||||||||||
| Total | $ | 7,663,979 | 7.27 | % | |||||||||||||||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS
Statements of Assets and Liabilities October 31, 2023
| Alger Capital Appreciation Institutional Fund |
Alger Focus Equity Fund |
|||||||
| ASSETS: | ||||||||
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | $ | 1,805,179,822 | $ | 1,088,990,085 | ||||
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | 2,831,337 | — | ||||||
| Cash and cash equivalents | 10,206,907 | 26,864,725 | ||||||
| Receivable for investment securities sold | 29,245,796 | 9,283,150 | ||||||
| Receivable for shares of beneficial interest sold | 1,247,074 | 617,879 | ||||||
| Dividends and interest receivable | 461,875 | 141,132 | ||||||
| Receivable from Investment Manager | 26,177 | 5,605 | ||||||
| Prepaid expenses | 62,121 | 98,480 | ||||||
| Total Assets | 1,849,261,109 | 1,126,001,056 | ||||||
| LIABILITIES: | ||||||||
| Payable for investment securities purchased | 15,752,534 | 8,849,401 | ||||||
| Payable for shares of beneficial interest redeemed | 7,580,075 | 864,665 | ||||||
| Accrued investment advisory fees | 1,331,154 | 521,261 | ||||||
| Accrued distribution fees | 139,050 | 65,718 | ||||||
| Accrued shareholder servicing fees | 290,902 | 10,307 | ||||||
| Accrued shareholder administrative fees | 16,434 | 10,842 | ||||||
| Accrued administrative fees | 45,193 | 27,567 | ||||||
| Accrued transfer agent fees | 521,176 | 31,065 | ||||||
| Accrued fund accounting fees | 53,156 | 32,961 | ||||||
| Accrued professional fees | 36,788 | 27,857 | ||||||
| Accrued printing fees | 35,952 | 45,802 | ||||||
| Accrued custodian fees | 16,836 | 12,792 | ||||||
| Accrued trustee fees | 9,337 | 4,500 | ||||||
| Accrued other expenses | 3,247 | 3,711 | ||||||
| Total Liabilities | 25,831,834 | 10,508,449 | ||||||
| NET ASSETS | $ | 1,823,429,275 | $ | 1,115,492,607 | ||||
| NET ASSETS CONSIST OF: | ||||||||
| Paid in capital (par value of $.001 per share) | 917,321,444 | 1,045,492,318 | ||||||
| Distributable earnings | 906,107,831 | 70,000,289 | ||||||
| NET ASSETS | $ | 1,823,429,275 | $ | 1,115,492,607 | ||||
| * Identified cost | $ | 1,028,236,186 | (a) | $ | 801,152,010 | (b) | ||
| ** Identified cost | $ | 3,075,000 | (a) | $ | 345,713 | (b) | ||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS
Statements of Assets and Liabilities October 31, 2023 (Continued)
| Alger Capital Appreciation Institutional Fund |
Alger Focus Equity Fund |
|||||||
| NET ASSETS BY CLASS: | ||||||||
| Class A | $ | — | $ | 88,975,001 | ||||
| Class C | $ | — | $ | 51,040,445 | ||||
| Class I | $ | 976,911,797 | $ | 46,035,109 | ||||
| Class R | $ | 310,295,685 | $ | — | ||||
| Class Y | $ | 327,806,690 | $ | 136,408,776 | ||||
| Class Z | $ | — | $ | 793,033,276 | ||||
| Class Z-2 | $ | 208,415,103 | $ | — | ||||
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | ||||||||
| Class A | — | 1,990,878 | ||||||
| Class C | — | 1,264,500 | ||||||
| Class I | 31,714,904 | 1,021,718 | ||||||
| Class R | 12,836,293 | — | ||||||
| Class Y | 10,244,297 | 2,925,711 | ||||||
| Class Z | — | 17,068,532 | ||||||
| Class Z-2 | 6,543,666 | — | ||||||
| NET ASSET VALUE PER SHARE: | ||||||||
| Class A — Net Asset Value Per Share Class A | $ | — | $ | 44.69 | ||||
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | $ | — | $ | 47.17 | ||||
| Class C — Net Asset Value Per Share Class C | $ | — | $ | 40.36 | ||||
| Class I — Net Asset Value Per Share Class I | $ | 30.80 | $ | 45.06 | ||||
| Class R — Net Asset Value Per Share Class R | $ | 24.17 | $ | — | ||||
| Class Y — Net Asset Value Per Share Class Y | $ | 32.00 | $ | 46.62 | ||||
| Class Z — Net Asset Value Per Share Class Z | $ | — | $ | 46.46 | ||||
| Class Z-2 — Net Asset Value Per Share Class Z-2 | $ | 31.85 | $ | — | ||||
See Notes to Financial Statements.
| (a) | At October 31, 2023, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,050,825,353, amounted to $757,185,806 which consisted of aggregate gross unrealized appreciation of $797,842,212 and aggregate gross unrealized depreciation of $40,656,406. |
| (b) | At October 31, 2023, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $820,321,481, amounted to $268,668,604 which consisted of aggregate gross unrealized appreciation of $308,687,519 and aggregate gross unrealized depreciation of $40,018,915. |
THE ALGER INSTITUTIONAL FUNDS
Statements of Assets and Liabilities October 31, 2023 (Continued)
| Alger Mid Cap Growth Institutional Fund |
Alger Small Cap Growth Institutional Fund |
|||||||
| ASSETS: | ||||||||
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | $ | 53,011,859 | $ | 103,073,739 | ||||
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | 713,589 | 1,473,216 | ||||||
| Cash and cash equivalents | 510,093 | 487,986 | ||||||
| Receivable for investment securities sold | 1,016,146 | 835,488 | ||||||
| Receivable for shares of beneficial interest sold | 4,235 | 5,975 | ||||||
| Dividends and interest receivable | 2,413 | — | ||||||
| Receivable from Investment Manager | 878 | 5,441 | ||||||
| Prepaid expenses | 13,533 | 41,193 | ||||||
| Total Assets | 55,272,746 | 105,923,038 | ||||||
| LIABILITIES: | ||||||||
| Payable for investment securities purchased | 936,171 | — | ||||||
| Payable for shares of beneficial interest redeemed | 143,535 | 266,658 | ||||||
| Accrued investment advisory fees | 37,997 | 81,154 | ||||||
| Accrued distribution fees | 1,884 | 1,665 | ||||||
| Accrued shareholder servicing fees | 9,977 | 13,569 | ||||||
| Accrued shareholder administrative fees | 500 | 1,002 | ||||||
| Accrued administrative fees | 1,375 | 2,755 | ||||||
| Accrued professional fees | 35,166 | 38,673 | ||||||
| Accrued transfer agent fees | 17,844 | 32,878 | ||||||
| Accrued fund accounting fees | 5,205 | 8,428 | ||||||
| Accrued custodian fees | 5,058 | 3,906 | ||||||
| Accrued printing fees | 4,491 | 18,018 | ||||||
| Accrued trustee fees | 246 | 1,001 | ||||||
| Accrued other expenses | 2,065 | 2,769 | ||||||
| Total Liabilities | 1,201,514 | 472,476 | ||||||
| NET ASSETS | $ | 54,071,232 | $ | 105,450,562 | ||||
| NET ASSETS CONSIST OF: | ||||||||
| Paid in capital (par value of $.001 per share) | 75,009,087 | 114,704,891 | ||||||
| Distributable earnings (Distributions in excess of earnings) | (20,937,855 | ) | (9,254,329 | ) | ||||
| NET ASSETS | $ | 54,071,232 | $ | 105,450,562 | ||||
| * Identified cost | $ | 50,665,197 | (a) | $ | 92,184,856 | (b) | ||
| ** Identified cost | $ | 1,522,040 | (a) | $ | 2,199,684 | (b) | ||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS
Statements of Assets and Liabilities October 31, 2023 (Continued)
| Alger Mid Cap Growth Institutional Fund |
Alger Small Cap Growth Institutional Fund |
|||||||
| NET ASSETS BY CLASS: | ||||||||
| Class I | $ | 39,102,278 | $ | 55,482,952 | ||||
| Class R | $ | 4,099,436 | $ | 3,459,196 | ||||
| Class Z-2 | $ | 10,869,518 | $ | 46,508,414 | ||||
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | ||||||||
| Class I | 2,285,306 | 4,153,759 | ||||||
| Class R | 312,861 | 374,208 | ||||||
| Class Z-2 | 610,418 | 3,386,954 | ||||||
| NET ASSET VALUE PER SHARE: | ||||||||
| Class I — Net Asset Value Per Share Class I | $ | 17.11 | $ | 13.36 | ||||
| Class R — Net Asset Value Per Share Class R | $ | 13.10 | $ | 9.24 | ||||
| Class Z-2 — Net Asset Value Per Share Class Z-2 | $ | 17.81 | $ | 13.73 | ||||
See Notes to Financial Statements.
| (a) | At October 31, 2023, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $52,954,231, amounted to $771,217 which consisted of aggregate gross unrealized appreciation of $5,717,453 and aggregate gross unrealized depreciation of $4,946,236. |
| (b) | At October 31, 2023, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $97,053,593, amounted to $7,493,362 which consisted of aggregate gross unrealized appreciation of $28,748,571, and aggregate gross unrealized depreciation of $21,255,209. |
THE ALGER INSTITUTIONAL FUNDS
Statements of Operations for the year ended October 31, 2023
| Alger Capital Appreciation Institutional Fund |
Alger Focus Equity Fund |
|||||||
| INCOME: | ||||||||
| Dividends (net of foreign withholding taxes*) | $ | 12,238,508 | $ | 6,714,144 | ||||
| Interest | 894,067 | 1,587,537 | ||||||
| Total Income | 13,132,575 | 8,301,681 | ||||||
| EXPENSES: | ||||||||
| Investment advisory fees — Note 3(a) | 16,515,113 | 6,015,796 | ||||||
| Distribution fees — Note 3(c) | ||||||||
| Class A | — | 211,091 | ||||||
| Class C | — | 495,239 | ||||||
| Class R | 1,615,594 | — | ||||||
| Shareholder servicing fees — Note 3(k) | 3,623,361 | 115,199 | ||||||
| Shareholder administrative fees — Note 3(f) | 205,242 | 124,396 | ||||||
| Administration fees — Note 3(b) | 564,414 | 318,143 | ||||||
| Transfer agent fees — Note 3(f) | 1,249,073 | 235,102 | ||||||
| Fund accounting fees | 289,112 | 188,273 | ||||||
| Interest expenses | 133,698 | 5,057 | ||||||
| Professional fees | 127,786 | 77,371 | ||||||
| Printing fees | 112,488 | 103,481 | ||||||
| Registration fees | 108,520 | 108,512 | ||||||
| Trustee fees — Note 3(g) | 107,101 | 58,230 | ||||||
| Custodian fees | 88,194 | 63,450 | ||||||
| Other expenses | 287,874 | 144,168 | ||||||
| Total Expenses | 25,027,570 | 8,263,508 | ||||||
| Less, expense reimbursements/waivers — Note 3(a) | (474,944 | ) | (70,289 | ) | ||||
| Net Expenses | 24,552,626 | 8,193,219 | ||||||
| NET INVESTMENT INCOME (LOSS) | (11,420,051 | ) | 108,462 | |||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | ||||||||
| Net realized gain on unaffiliated investments | 192,128,193 | 4,034,792 | ||||||
| Net realized (loss) on foreign currency transactions | (18,020 | ) | (20,642 | ) | ||||
| Net change in unrealized appreciation on unaffiliated investments | 156,464,655 | 191,127,522 | ||||||
| Net change in unrealized (depreciation) on affiliated investments | (420,783 | ) | — | |||||
| Net change in unrealized appreciation on foreign currency | 19,051 | 6,213 | ||||||
| Net realized and unrealized gain on investments and foreign currency | 348,173,096 | 195,147,885 | ||||||
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 336,753,045 | $ | 195,256,347 | ||||
| * Foreign withholding taxes | $ | 146,530 | $ | 56,433 | ||||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS
Statements of Operations for the year ended October 31, 2023 (Continued)
| Alger Mid Cap Growth Institutional Fund |
Alger Small Cap Growth Institutional Fund |
|||||||
| INCOME: | ||||||||
| Dividends (net of foreign withholding taxes*) | $ | 285,232 | $ | 461,793 | ||||
| Interest | 51,848 | 112,508 | ||||||
| Total Income | 337,080 | 574,301 | ||||||
| EXPENSES: | ||||||||
| Investment advisory fees — Note 3(a) | 447,592 | 1,187,861 | ||||||
| Distribution fees — Note 3(c) | ||||||||
| Class R | 22,211 | 21,958 | ||||||
| Shareholder servicing fees — Note 3(k) | 118,934 | 188,218 | ||||||
| Shareholder administrative fees — Note 3(f) | 5,890 | 14,665 | ||||||
| Administration fees — Note 3(b) | 16,196 | 40,329 | ||||||
| Fund accounting fees | 57,414 | 68,142 | ||||||
| Professional fees | 55,270 | 61,624 | ||||||
| Transfer agent fees — Note 3(f) | 44,659 | 83,613 | ||||||
| Registration fees | 28,376 | 47,778 | ||||||
| Custodian fees | 13,725 | 11,985 | ||||||
| Printing fees | 5,365 | 32,054 | ||||||
| Trustee fees — Note 3(g) | 2,970 | 8,140 | ||||||
| Interest expenses | 360 | 3,811 | ||||||
| Other expenses | 18,658 | 34,100 | ||||||
| Total Expenses | 837,620 | 1,804,278 | ||||||
| Less, expense reimbursements/waivers — Note 3(a) | (12,352 | ) | (34,559 | ) | ||||
| Net Expenses | 825,268 | 1,769,719 | ||||||
| NET INVESTMENT LOSS | (488,188 | ) | (1,195,418 | ) | ||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | ||||||||
| Net realized (loss) on unaffiliated investments | (2,765,314 | ) | (15,274,150 | ) | ||||
| Net realized (loss) on foreign currency transactions | (1,365 | ) | (9,051 | ) | ||||
| Net change in unrealized appreciation on unaffiliated investments | 3,438,964 | 2,011,423 | ||||||
| Net change in unrealized (depreciation) on affiliated investments | (107,977 | ) | (221,726 | ) | ||||
| Net change in unrealized appreciation on foreign currency | 136 | — | ||||||
| Net realized and unrealized gain (loss) on investments and foreign currency | 564,444 | (13,493,504 | ) | |||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 76,256 | $ | (14,688,922 | ) | |||
| * Foreign withholding taxes | $ | 5,259 | $ | 2,555 | ||||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS
Statements of Changes in Net Assets
| Alger Capital Appreciation Institutional Fund | ||||||||
| For the Year Ended October 31, 2023 |
For the Year Ended October 31, 2022 |
|||||||
| Net investment loss | $ | (11,420,051 | ) | $ | (11,851,168 | ) | ||
| Net realized gain on investments and foreign currency | 192,110,173 | 65,530,517 | ||||||
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | 156,062,923 | (1,385,535,226 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | 336,753,045 | (1,331,855,877 | ) | |||||
| Dividends and distributions to shareholders: | ||||||||
| Class I | (42,396,053 | ) | (363,087,549 | ) | ||||
| Class R | (13,940,465 | ) | (104,193,164 | ) | ||||
| Class Y | (12,156,522 | ) | (107,008,462 | ) | ||||
| Class Z-2 | (8,874,519 | ) | (98,406,277 | ) | ||||
| Total dividends and distributions to shareholders | (77,367,559 | ) | (672,695,452 | ) | ||||
| Increase (decrease) from shares of beneficial interest transactions: | ||||||||
| Class I | (379,157,895 | ) | 14,863,696 | |||||
| Class R | (40,394,366 | ) | 47,593,993 | |||||
| Class Y | (97,016,451 | ) | 2,173,418 | |||||
| Class Z-2 | (112,806,983 | ) | (52,701,947 | ) | ||||
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | (629,375,695 | ) | 11,929,160 | |||||
| Total decrease | (369,990,209 | ) | (1,992,622,169 | ) | ||||
| Net Assets: | ||||||||
| Beginning of period | 2,193,419,484 | 4,186,041,653 | ||||||
| END OF PERIOD | $ | 1,823,429,275 | $ | 2,193,419,484 | ||||
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS
Statements of Changes in Net Assets (Continued)
| Alger Focus Equity Fund | ||||||||
| For the | For the | |||||||
| Year Ended | Year Ended | |||||||
| October 31, 2023 | October 31, 2022 | |||||||
| Net investment income | $ | 108,462 | $ | 597,130 | ||||
| Net realized gain (loss) on investments, redemption in-kind and foreign currency | 4,014,150 | (134,060,847) | ||||||
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | 191,133,735 | (402,438,177) | ||||||
| Net increase (decrease) in net assets resulting from operations | 195,256,347 | (535,901,894) | ||||||
| Dividends and distributions to shareholders: | ||||||||
| Class A | (46,071) | (14,410,192) | ||||||
| Class C | — | (9,232,177) | ||||||
| Class I | (25,869) | (9,193,544) | ||||||
| Class Y | (117,730) | (23,615,638) | ||||||
| Class Z | (715,778) | (141,604,729) | ||||||
| Total dividends and distributions to shareholders | (905,448) | (198,056,280) | ||||||
| Increase (decrease) from shares of beneficial interest transactions: | ||||||||
| Class A | 4,891,849 | 4,544,150 | ||||||
| Class C | (1,523,363) | 7,434,543 | ||||||
| Class I | (5,963,947) | (1,308,388) | ||||||
| Class Y | (12,635,079) | 20,978,234 | ||||||
| Class Z | (114,392,918) | 123,710,295 | ||||||
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | (129,623,458) | 155,358,834 | ||||||
| Total increase (decrease) | 64,727,441 | (578,599,340) | ||||||
| Net Assets: | ||||||||
| Beginning of period | 1,050,765,166 | 1,629,364,506 | ||||||
| END OF PERIOD | $ | 1,115,492,607 | $ | 1,050,765,166 | ||||
See Notes to Financial Statements.
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, 2023 | October 31, 2022 | |||||||
| Net investment loss | $ | (488,188 | ) | $ | (641,660 | ) | ||
| Net realized loss on investments and foreign currency | (2,766,679) | (18,406,649) | ||||||
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | 3,331,123 | (25,710,492) | ||||||
| Net increase (decrease) in net assets resulting from operations | 76,256 | (44,758,801) | ||||||
| Dividends and distributions to shareholders: | ||||||||
| Class I | — | (33,226,128) | ||||||
| Class R | — | (3,288,321) | ||||||
| Class Z-2 | — | (10,135,108) | ||||||
| Total dividends and distributions to shareholders | — | (46,649,557) | ||||||
| Increase (decrease) from shares of beneficial interest transactions: | ||||||||
| Class I | (3,541,219) | 22,295,011 | ||||||
| Class R | (160,540) | 3,055,134 | ||||||
| Class Z-2 | 241,829 | 5,321,195 | ||||||
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | (3,459,930) | 30,671,340 | ||||||
| Total decrease | (3,383,674) | (60,737,018) | ||||||
| Net Assets: | ||||||||
| Beginning of period | 57,454,906 | 118,191,924 | ||||||
| END OF PERIOD | $ | 54,071,232 | $ | 57,454,906 | ||||
See Notes to Financial Statements.
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, 2023 | October 31, 2022 | |||||||
| Net investment loss | $ | (1,195,418 | ) | $ | (1,984,300 | ) | ||
| Net realized loss on investments and foreign currency | (15,283,201) | (2,404,384) | ||||||
| Net change in unrealized appreciation (depreciation) on investments | 1,789,697 | (130,908,110) | ||||||
| Net decrease in net assets resulting from operations | (14,688,922) | (135,296,794) | ||||||
| Dividends and distributions to shareholders: | ||||||||
| Class I | — | (28,859,482) | ||||||
| Class R | — | (2,153,880) | ||||||
| Class Z-2 | — | (26,627,936) | ||||||
| Total dividends and distributions to shareholders | — | (57,641,298) | ||||||
| Increase (decrease) from shares of beneficial interest transactions: | ||||||||
| Class I | (18,054,126) | (5,332,357) | ||||||
| Class R | (822,075) | 1,128,070 | ||||||
| Class Z-2 | (32,747,332) | 8,441,346 | ||||||
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | (51,623,533) | 4,237,059 | ||||||
| Total decrease | (66,312,455) | (188,701,033) | ||||||
| Net Assets: | ||||||||
| Beginning of period | 171,763,017 | 360,464,050 | ||||||
| END OF PERIOD | $ | 105,450,562 | $ | 171,763,017 | ||||
See Notes to Financial Statements.
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 | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 27.32 | $ | 50.16 | $ | 43.16 | $ | 35.43 | $ | 34.51 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.18 | ) | (0.15 | ) | (0.29 | ) | (0.14 | ) | (0.07 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 4.64 | (14.69 | ) | 14.23 | 11.44 | 4.54 | ||||||||||||||
| Total from investment operations | 4.46 | (14.84 | ) | 13.94 | 11.30 | 4.47 | ||||||||||||||
| Distributions from net realized gains | (0.98 | ) | (8.00 | ) | (6.94 | ) | (3.57 | ) | (3.55 | ) | ||||||||||
| Net asset value, end of period | $ | 30.80 | $ | 27.32 | $ | 50.16 | $ | 43.16 | $ | 35.43 | ||||||||||
| Total return(ii) | 17.01 | % | (34.91 | )% | 35.72 | % | 34.58 | % | 15.20 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 976,912 | $ | 1,213,736 | $ | 2,313,493 | $ | 2,105,435 | $ | 2,028,574 | ||||||||||
| Ratio of gross expenses to average net assets | 1.25 | % | 1.16 | % | 1.12 | % | 1.13 | % | 1.16 | % | ||||||||||
| Ratio of net expenses to average net assets | 1.25 | % | 1.16 | % | 1.12 | % | 1.13 | % | 1.16 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.61 | )% | (0.45 | )% | (0.63 | )% | (0.36 | )% | (0.21 | )% | ||||||||||
| Portfolio turnover rate | 86.08 | % | 106.51 | % | 78.70 | % | 83.95 | % | 80.36 | % | ||||||||||
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. |
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 | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 21.74 | $ | 41.74 | $ | 37.10 | $ | 31.05 | $ | 30.83 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.24 | ) | (0.24 | ) | (0.41 | ) | (0.26 | ) | (0.20 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 3.65 | (11.76 | ) | 11.99 | 9.88 | 3.97 | ||||||||||||||
| Total from investment operations | 3.41 | (12.00 | ) | 11.58 | 9.62 | 3.77 | ||||||||||||||
| Distributions from net realized gains | (0.98 | ) | (8.00 | ) | (6.94 | ) | (3.57 | ) | (3.55 | ) | ||||||||||
| Net asset value, end of period | $ | 24.17 | $ | 21.74 | $ | 41.74 | $ | 37.10 | $ | 31.05 | ||||||||||
| Total return(ii) | 16.53 | % | (35.20 | )% | 35.10 | % | 33.99 | % | 14.69 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 310,296 | $ | 314,106 | $ | 553,283 | $ | 520,172 | $ | 525,018 | ||||||||||
| Ratio of gross expenses to average net assets | 1.68 | % | 1.59 | % | 1.56 | % | 1.58 | % | 1.61 | % | ||||||||||
| Ratio of net expenses to average net assets | 1.68 | % | 1.59 | % | 1.56 | % | 1.58 | % | 1.61 | % | ||||||||||
| Ratio of net investment loss to average net assets | (1.05 | )% | (0.88 | )% | (1.07 | )% | (0.80 | )% | (0.67 | )% | ||||||||||
| Portfolio turnover rate | 86.08 | % | 106.51 | % | 78.70 | % | 83.95 | % | 80.36 | % | ||||||||||
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. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Capital Appreciation Institutional Fund | Class Y | |||||||||||||||||||
| Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 28.22 | $ | 51.36 | $ | 43.91 | $ | 35.86 | $ | 34.75 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment income (loss)(i) | (0.06 | ) | (0.01 | ) | (0.13 | ) | — | (ii) | 0.05 | |||||||||||
| Net realized and unrealized gain (loss) on investments | 4.82 | (15.13 | ) | 14.52 | 11.62 | 4.61 | ||||||||||||||
| Total from investment operations | 4.76 | (15.14 | ) | 14.39 | 11.62 | 4.66 | ||||||||||||||
| Distributions from net realized gains | (0.98 | ) | (8.00 | ) | (6.94 | ) | (3.57 | ) | (3.55 | ) | ||||||||||
| Net asset value, end of period | $ | 32.00 | $ | 28.22 | $ | 51.36 | $ | 43.91 | $ | 35.86 | ||||||||||
| Total return(iii) | 17.55 | % | (34.65 | )% | 36.19 | % | 35.10 | % | 15.69 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 327,807 | $ | 375,693 | $ | 678,853 | $ | 484,362 | $ | 337,299 | ||||||||||
| Ratio of gross expenses to average net assets | 0.91 | % | 0.84 | % | 0.79 | % | 0.82 | % | 0.84 | % | ||||||||||
| Ratio of expense reimbursements to average net assets | (0.10 | )% | (0.09 | )% | (0.04 | )% | (0.07 | )% | (0.09 | )% | ||||||||||
| Ratio of net expenses to average net assets | 0.81 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | (0.18 | )% | (0.04 | )% | (0.27 | )% | (0.01 | )% | 0.14 | % | ||||||||||
| Portfolio turnover rate | 86.08 | % | 106.51 | % | 78.70 | % | 83.95 | % | 80.36 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Amount was less than $0.005 per share. |
| (iii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Capital Appreciation Institutional Fund | Class Z-2 | |||||||||||||||||||
| Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 28.11 | $ | 51.23 | $ | 43.83 | $ | 35.82 | $ | 34.74 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment income (loss)(i) | (0.06 | ) | (0.05 | ) | (0.14 | ) | (0.02 | ) | 0.03 | |||||||||||
| Net realized and unrealized gain (loss) on investments | 4.78 | (15.07 | ) | 14.48 | 11.60 | 4.60 | ||||||||||||||
| Total from investment operations | 4.72 | (15.12 | ) | 14.34 | 11.58 | 4.63 | ||||||||||||||
| Distributions from net realized gains | (0.98 | ) | (8.00 | ) | (6.94 | ) | (3.57 | ) | (3.55 | ) | ||||||||||
| Net asset value, end of period | $ | 31.85 | $ | 28.11 | $ | 51.23 | $ | 43.83 | $ | 35.82 | ||||||||||
| Total return(ii) | 17.48 | % | (34.70 | )% | 36.13 | % | 35.02 | % | 15.56 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 208,415 | $ | 289,885 | $ | 640,412 | $ | 539,253 | $ | 464,636 | ||||||||||
| Ratio of gross expenses to average net assets | 0.92 | % | 0.84 | % | 0.79 | % | 0.82 | % | 0.83 | % | ||||||||||
| Ratio of expense reimbursements to average net assets | (0.05 | )% | — | — | — | — | ||||||||||||||
| Ratio of net expenses to average net assets | 0.87 | % | 0.84 | % | 0.79 | % | 0.82 | % | 0.83 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | (0.22 | )% | (0.13 | )% | (0.31 | )% | (0.05 | )% | 0.10 | % | ||||||||||
| Portfolio turnover rate | 86.08 | % | 106.51 | % | 78.70 | % | 83.95 | % | 80.36 | % | ||||||||||
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. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Focus Equity Fund | Class A | |||||||||||||||||||
| Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 38.02 | $ | 65.10 | $ | 50.77 | $ | 37.33 | $ | 34.00 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.10 | ) | (0.10 | ) | (0.25 | ) | (0.07 | ) | — | (ii) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 6.79 | (19.02 | ) | 17.97 | 14.29 | 4.95 | ||||||||||||||
| Total from investment operations | 6.69 | (19.12 | ) | 17.72 | 14.22 | 4.95 | ||||||||||||||
| Dividends from net investment income | (0.02 | ) | — | — | (0.02 | ) | — | |||||||||||||
| Distributions from net realized gains | — | (7.96 | ) | (3.39 | ) | (0.76 | ) | (1.62 | ) | |||||||||||
| Net asset value, end of period | $ | 44.69 | $ | 38.02 | $ | 65.10 | $ | 50.77 | $ | 37.33 | ||||||||||
| Total return | 17.62 | % | (33.34 | )% | 36.37 | % | 38.75 | % | 15.56 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 88,975 | $ | 70,778 | $ | 118,641 | $ | 89,028 | $ | 53,533 | ||||||||||
| Ratio of gross expenses to average net assets | 0.95 | % | 0.95 | % | 0.92 | % | 0.95 | % | 1.00 | % | ||||||||||
| Ratio of net expenses to average net assets | 0.95 | % | 0.95 | % | 0.92 | % | 0.95 | % | 1.00 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.24 | )% | (0.21 | )% | (0.43 | )% | (0.16 | )% | (0.01 | )% | ||||||||||
| Portfolio turnover rate | 99.51 | % | 126.01 | %(iii) | 107.82 | % | 99.52 | % | 134.50 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Amount was less than $0.005 per share. |
| (iii) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Focus Equity Fund | Class C | |||||||||||||||||||
| Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 34.58 | $ | 60.35 | $ | 47.63 | $ | 35.30 | $ | 32.47 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.39 | ) | (0.41 | ) | (0.65 | ) | (0.38 | ) | (0.26 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 6.17 | (17.40 | ) | 16.76 | 13.47 | 4.71 | ||||||||||||||
| Total from investment operations | 5.78 | (17.81 | ) | 16.11 | 13.09 | 4.45 | ||||||||||||||
| Distributions from net realized gains | — | (7.96 | ) | (3.39 | ) | (0.76 | ) | (1.62 | ) | |||||||||||
| Net asset value, end of period | $ | 40.36 | $ | 34.58 | $ | 60.35 | $ | 47.63 | $ | 35.30 | ||||||||||
| Total return | 16.71 | % | (33.85 | )% | 35.33 | % | 37.73 | % | 14.68 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 51,040 | $ | 45,186 | $ | 70,664 | $ | 57,067 | $ | 37,169 | ||||||||||
| Ratio of gross expenses to average net assets | 1.72 | % | 1.70 | % | 1.68 | % | 1.71 | % | 1.75 | % | ||||||||||
| Ratio of net expenses to average net assets | 1.72 | % | 1.70 | % | 1.68 | % | 1.71 | % | 1.75 | % | ||||||||||
| Ratio of net investment loss to average net assets | (1.01 | )% | (0.96 | )% | (1.19 | )% | (0.91 | )% | (0.77 | )% | ||||||||||
| Portfolio turnover rate | 99.51 | % | 126.01 | %(ii) | 107.82 | % | 99.52 | % | 134.50 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Focus Equity Fund | Class I | |||||||||||||||||||
| Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 38.32 | $ | 65.54 | $ | 51.07 | $ | 37.56 | $ | 34.17 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment income (loss)(i) | (0.09 | ) | (0.07 | ) | (0.23 | ) | (0.03 | ) | 0.01 | |||||||||||
| Net realized and unrealized gain (loss) on investments | 6.85 | (19.19 | ) | 18.09 | 14.37 | 5.00 | ||||||||||||||
| Total from investment operations | 6.76 | (19.26 | ) | 17.86 | 14.34 | 5.01 | ||||||||||||||
| Dividends from net investment income | (0.02 | ) | — | — | (ii) | (0.07 | ) | — | ||||||||||||
| Distributions from net realized gains | — | (7.96 | ) | (3.39 | ) | (0.76 | ) | (1.62 | ) | |||||||||||
| Net asset value, end of period | $ | 45.06 | $ | 38.32 | $ | 65.54 | $ | 51.07 | $ | 37.56 | ||||||||||
| Total return | 17.64 | % | (33.33 | )% | 36.44 | % | 38.81 | % | 15.66 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 46,035 | $ | 44,607 | $ | 77,895 | $ | 63,658 | $ | 68,705 | ||||||||||
| Ratio of gross expenses to average net assets | 0.93 | % | 0.91 | % | 0.89 | % | 0.93 | % | 0.96 | % | ||||||||||
| Ratio of expense reimbursements to average net assets | — | — | (0.01 | )% | (0.04 | )% | (0.04 | )% | ||||||||||||
| Ratio of net expenses to average net assets | 0.93 | % | 0.91 | % | 0.88 | % | 0.89 | % | 0.92 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | (0.21 | )% | (0.15 | )% | (0.39 | )% | (0.06 | )% | 0.04 | % | ||||||||||
| Portfolio turnover rate | 99.51 | % | 126.01 | %(iii) | 107.82 | % | 99.52 | % | 134.50 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Amount was less than $0.005 per share. |
| (iii) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Focus Equity Fund | Class Y | |||||||||||||||||||
| Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||
| 10/31/2023 | 10/31/2022 | 10/31/2021 | 10/31/2020 | 10/31/2019 | ||||||||||||||||
| Net asset value, beginning of period | $ | 39.53 | $ | 67.15 | $ | 52.12 | $ | 38.29 | $ | 34.79 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment income (loss)(i) | 0.06 | 0.08 | (0.06 | ) | 0.07 | 0.12 | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | 7.07 | (19.74 | ) | 18.50 | 14.65 | 5.08 | ||||||||||||||
| Total from investment operations | 7.13 | (19.66 | ) | 18.44 | 14.72 | 5.20 | ||||||||||||||
| Dividends from net investment income | (0.04 | ) | — | (0.02 | ) | (0.13 | ) | (0.08 | ) | |||||||||||
| Distributions from net realized gains | — | (7.96 | ) | (3.39 | ) | (0.76 | ) | (1.62 | ) | |||||||||||
| Net asset value, end of period | $ | 46.62 | $ | 39.53 | $ | 67.15 | $ | 52.12 | $ | 38.29 | ||||||||||
| Total return | 18.05 | % | (33.10 | )% | 36.84 | % | 39.17 | % | 15.97 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 136,409 | $ | 126,406 | $ | 194,908 | $ | 121,688 | $ | 69,175 | ||||||||||
| Ratio of gross expenses to average net assets | 0.64 | % | 0.62 | % | 0.61 | % | 0.63 | % | 0.66 | % | ||||||||||
| Ratio of expense reimbursements to average net assets | (0.05 | )% | (0.04 | )% | (0.03 | )% | — | (0.01 | )% | |||||||||||
| Ratio of net expenses to average net assets | 0.59 | % | 0.58 | % | 0.58 | % | 0.63 | % | 0.65 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | 0.13 | % | 0.16 | % | (0.10 | )% | 0.16 | % | 0.34 | % | ||||||||||
| Portfolio turnover rate | 99.51 | % | 126.01 | %(ii) | 107.82 | % | 99.52 | % | 134.50 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Focus Equity Fund | Class Z | |||||||||||||||||||
| Year ended 10/31/2023 |
Year ended 10/31/2022 |
Year ended 10/31/2021 |
Year ended 10/31/2020 |
Year ended 10/31/2019 |
||||||||||||||||
| Net asset value, beginning of period | $ | 39.41 | $ | 67.00 | $ | 52.02 | $ | 38.21 | $ | 34.73 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment income (loss)(i) | 0.04 | 0.06 | (0.08 | ) | 0.06 | 0.11 | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | 7.05 | (19.69 | ) | 18.47 | 14.64 | 5.07 | ||||||||||||||
| Total from investment operations | 7.09 | (19.63 | ) | 18.39 | 14.70 | 5.18 | ||||||||||||||
| Dividends from net investment income | (0.04 | ) | — | (0.02 | ) | (0.13 | ) | (0.08 | ) | |||||||||||
| Distributions from net realized gains | — | (7.96 | ) | (3.39 | ) | (0.76 | ) | (1.62 | ) | |||||||||||
| Net asset value, end of period | $ | 46.46 | $ | 39.41 | $ | 67.00 | $ | 52.02 | $ | 38.21 | ||||||||||
| Total return | 18.00 | % | (33.13 | )% | 36.81 | % | 39.20 | % | 15.93 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 793,033 | $ | 763,788 | $ | 1,167,256 | $ | 746,122 | $ | 351,530 | ||||||||||
| Ratio of gross expenses to average net assets | 0.63 | % | 0.62 | % | 0.61 | % | 0.63 | % | 0.66 | % | ||||||||||
| Ratio of net expenses to average net assets | 0.63 | % | 0.62 | % | 0.61 | % | 0.63 | % | 0.66 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | 0.09 | % | 0.12 | % | (0.13 | )% | 0.13 | % | 0.29 | % | ||||||||||
| Portfolio turnover rate | 99.51 | % | 126.01 | %(ii) | 107.82 | % | 99.52 | % | 134.50 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Growth Institutional Fund | Class I | |||||||||||||||||||
| Year ended 10/31/2023 |
Year ended 10/31/2022 |
Year ended 10/31/2021 |
Year ended 10/31/2020 |
Year ended 10/31/2019 |
||||||||||||||||
| Net asset value, beginning of period | $ | 17.14 | $ | 50.80 | $ | 40.47 | $ | 31.04 | $ | 30.20 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.16 | ) | (0.19 | ) | (0.45 | ) | (0.27 | ) | (0.21 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 0.13 | (13.62 | ) | 16.11 | 12.27 | 3.03 | ||||||||||||||
| Total from investment operations | (0.03 | ) | (13.81 | ) | 15.66 | 12.00 | 2.82 | |||||||||||||
| Distributions from net realized gains | — | (19.85 | ) | (5.33 | ) | (2.57 | ) | (1.98 | ) | |||||||||||
| Net asset value, end of period | $ | 17.11 | $ | 17.14 | $ | 50.80 | $ | 40.47 | $ | 31.04 | ||||||||||
| Total return | (0.17 | )% | (39.51 | )% | 41.08 | % | 41.71 | % | 10.76 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 39,102 | $ | 42,477 | $ | 85,297 | $ | 86,228 | $ | 73,274 | ||||||||||
| Ratio of gross expenses to average net assets | 1.45 | % | 1.43 | % | 1.27 | % | 1.35 | % | 1.35 | % | ||||||||||
| Ratio of net expenses to average net assets | 1.45 | % | 1.43 | % | 1.27 | % | 1.35 | % | 1.35 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.88 | )% | (0.89 | )% | (0.97 | )% | (0.80 | )% | (0.70 | )% | ||||||||||
| Portfolio turnover rate | 79.60 | % | 199.22 | % | 171.43 | % | 180.30 | % | 182.64 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Growth Institutional Fund | Class R | |||||||||||||||||||
| Year ended 10/31/2023 |
Year ended 10/31/2022 |
Year ended 10/31/2021 |
Year ended 10/31/2020 |
Year ended 10/31/2019 |
||||||||||||||||
| Net asset value, beginning of period | $ | 13.19 | $ | 44.37 | $ | 36.07 | $ | 28.06 | $ | 27.64 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.19 | ) | (0.22 | ) | (0.59 | ) | (0.36 | ) | (0.32 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 0.10 | (11.11 | ) | 14.22 | 10.94 | 2.72 | ||||||||||||||
| Total from investment operations | (0.09 | ) | (11.33 | ) | 13.63 | 10.58 | 2.40 | |||||||||||||
| Distributions from net realized gains | — | (19.85 | ) | (5.33 | ) | (2.57 | ) | (1.98 | ) | |||||||||||
| Net asset value, end of period | $ | 13.10 | $ | 13.19 | $ | 44.37 | $ | 36.07 | $ | 28.06 | ||||||||||
| Total return | (0.68 | )% | (39.77 | )% | 40.42 | % | 41.03 | % | 10.24 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 4,099 | $ | 4,282 | $ | 7,426 | $ | 6,093 | $ | 7,952 | ||||||||||
| Ratio of gross expenses to average net assets | 1.91 | % | 1.88 | % | 1.75 | % | 1.83 | % | 1.85 | % | ||||||||||
| Ratio of net expenses to average net assets | 1.91 | % | 1.88 | % | 1.75 | % | 1.83 | % | 1.85 | % | ||||||||||
| Ratio of net investment loss to average net assets | (1.34 | )% | (1.33 | )% | (1.46 | )% | (1.22 | )% | (1.18 | )% | ||||||||||
| Portfolio turnover rate | 79.60 | % | 199.22 | % | 171.43 | % | 180.30 | % | 182.64 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Growth Institutional Fund | Class Z-2 | |||||||||||||||||||
| Year ended 10/31/2023 |
Year ended 10/31/2022 |
Year ended 10/31/2021 |
Year ended 10/31/2020 |
Year ended 10/31/2019 |
||||||||||||||||
| Net asset value, beginning of period | $ | 17.76 | $ | 51.68 | $ | 40.99 | $ | 31.31 | $ | 30.36 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.08 | ) | (0.10 | ) | (0.32 | ) | (0.16 | ) | (0.12 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 0.13 | (13.97 | ) | 16.34 | 12.41 | 3.05 | ||||||||||||||
| Total from investment operations | 0.05 | (14.07 | ) | 16.02 | 12.25 | 2.93 | ||||||||||||||
| Distributions from net realized gains | — | (19.85 | ) | (5.33 | ) | (2.57 | ) | (1.98 | ) | |||||||||||
| Net asset value, end of period | $ | 17.81 | $ | 17.76 | $ | 51.68 | $ | 40.99 | $ | 31.31 | ||||||||||
| Total return | 0.28 | % | (39.24 | )% | 41.50 | % | 42.18 | % | 11.08 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 10,870 | $ | 10,696 | $ | 25,469 | $ | 17,452 | $ | 12,409 | ||||||||||
| Ratio of gross expenses to average net assets | 1.12 | % | 1.09 | % | 0.97 | % | 1.05 | % | 1.09 | % | ||||||||||
| Ratio of expense reimbursements to average net assets | (0.11 | )% | (0.10 | )% | — | (0.01 | )% | (0.04 | )% | |||||||||||
| Ratio of net expenses to average net assets | 1.01 | % | 0.99 | % | 0.97 | % | 1.04 | % | 1.05 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.45 | )% | (0.46 | )% | (0.68 | )% | (0.48 | )% | (0.40 | )% | ||||||||||
| Portfolio turnover rate | 79.60 | % | 199.22 | % | 171.43 | % | 180.30 | % | 182.64 | % | ||||||||||
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Growth Institutional Fund | Class I | |||||||||||||||||||
| Year ended 10/31/2023 |
Year ended 10/31/2022 |
Year ended 10/31/2021 |
Year ended 10/31/2020 |
Year ended 10/31/2019 |
||||||||||||||||
| Net asset value, beginning of period | $ | 15.10 | $ | 31.70 | $ | 25.77 | $ | 21.49 | $ | 22.53 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.15 | ) | (0.19 | ) | (0.32 | ) | (0.24 | ) | (0.25 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | (1.59 | ) | (11.05 | ) | 7.80 | 8.32 | 1.95 | |||||||||||||
| Total from investment operations | (1.74 | ) | (11.24 | ) | 7.48 | 8.08 | 1.70 | |||||||||||||
| Dividends from net investment income | — | — | — | (0.03 | ) | — | ||||||||||||||
| Distributions from net realized gains | — | (5.36 | ) | (1.55 | ) | (3.77 | ) | (2.74 | ) | |||||||||||
| Net asset value, end of period | $ | 13.36 | $ | 15.10 | $ | 31.70 | $ | 25.77 | $ | 21.49 | ||||||||||
| Total return | (11.52 | )% | (40.86 | )% | 29.64 | % | 44.12 | % | 10.20 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 55,483 | $ | 80,965 | $ | 180,795 | $ | 152,183 | $ | 95,853 | ||||||||||
| Ratio of gross expenses to average net assets | 1.38 | % | 1.30 | % | 1.24 | % | 1.30 | % | 1.35 | % | ||||||||||
| Ratio of net expenses to average net assets | 1.38 | % | 1.30 | % | 1.24 | % | 1.30 | % | 1.35 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.99 | )% | (1.04 | )% | (1.04 | )% | (1.10 | )% | (1.16 | )% | ||||||||||
| Portfolio turnover rate | 29.53 | % | 14.95 | % | 41.10 | % | 23.78 | % | 14.93 | % | ||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||
| (i) | Amount was computed based on average shares outstanding during the period. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Growth Institutional Fund | Class R | |||||||||||||||||||
| Year ended 10/31/2023 |
Year ended 10/31/2022 |
Year ended 10/31/2021 |
Year ended 10/31/2020 |
Year ended 10/31/2019 |
||||||||||||||||
| Net asset value, beginning of period | $ | 10.50 | $ | 24.00 | $ | 19.92 | $ | 17.48 | $ | 18.97 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.15 | ) | (0.19 | ) | (0.35 | ) | (0.27 | ) | (0.28 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | (1.11 | ) | (7.95 | ) | 5.98 | 6.48 | 1.53 | |||||||||||||
| Total from investment operations | (1.26 | ) | (8.14 | ) | 5.63 | 6.21 | 1.25 | |||||||||||||
| Distributions from net realized gains | — | (5.36 | ) | (1.55 | ) | (3.77 | ) | (2.74 | ) | |||||||||||
| Net asset value, end of period | $ | 9.24 | $ | 10.50 | $ | 24.00 | $ | 19.92 | $ | 17.48 | ||||||||||
| Total return | (12.00 | )% | (41.11 | )% | 29.02 | % | 43.38 | % | 9.67 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 3,459 | $ | 4,791 | $ | 9,751 | $ | 9,940 | $ | 8,690 | ||||||||||
| Ratio of gross expenses to average net assets | 1.84 | % | 1.73 | % | 1.73 | % | 1.80 | % | 1.81 | % | ||||||||||
| Ratio of net expenses to average net assets | 1.84 | % | 1.73 | % | 1.73 | % | 1.80 | % | 1.81 | % | ||||||||||
| Ratio of net investment loss to average net assets | (1.46 | )% | (1.47 | )% | (1.51 | )% | (1.58 | )% | (1.63 | )% | ||||||||||
| Portfolio turnover rate | 29.53 | % | 14.95 | % | 41.10 | % | 23.78 | % | 14.93 | % | ||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||
| (i) | Amount was computed based on average shares outstanding during the period. |
THE ALGER INSTITUTIONAL FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Growth Institutional Fund | Class Z-2 | |||||||||||||||||||
| Year ended 10/31/2023 |
Year ended 10/31/2022 |
Year ended 10/31/2021 |
Year ended 10/31/2020 |
Year ended 10/31/2019 |
||||||||||||||||
| Net asset value, beginning of period | $ | 15.47 | $ | 32.23 | $ | 26.10 | $ | 21.76 | $ | 22.70 | ||||||||||
| INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
| Net investment loss(i) | (0.09 | ) | (0.14 | ) | (0.24 | ) | (0.18 | ) | (0.17 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | (1.65 | ) | (11.26 | ) | 7.92 | 8.42 | 1.97 | |||||||||||||
| Total from investment operations | (1.74 | ) | (11.40 | ) | 7.68 | 8.24 | 1.80 | |||||||||||||
| Dividends from net investment income | — | — | — | (0.13 | ) | — | ||||||||||||||
| Distributions from net realized gains | — | (5.36 | ) | (1.55 | ) | (3.77 | ) | (2.74 | ) | |||||||||||
| Net asset value, end of period | $ | 13.73 | $ | 15.47 | $ | 32.23 | $ | 26.10 | $ | 21.76 | ||||||||||
| Total return | (11.25 | )% | (40.65 | )% | 30.05 | % | 44.55 | % | 10.61 | % | ||||||||||
| RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
| Net assets, end of period (000’s omitted) | $ | 46,508 | $ | 86,007 | $ | 169,918 | $ | 98,954 | $ | 47,863 | ||||||||||
| Ratio of gross expenses to average net assets | 1.05 | % | 0.98 | % | 0.94 | % | 0.99 | % | 1.02 | % | ||||||||||
| Ratio of expense reimbursements to average net assets | (0.05 | )% | — | — | (0.01 | )% | (0.03 | )% | ||||||||||||
| Ratio of net expenses to average net assets | 1.00 | % | 0.98 | % | 0.94 | % | 0.98 | % | 0.99 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.60 | )% | (0.71 | )% | (0.76 | )% | (0.79 | )% | (0.81 | )% | ||||||||||
| Portfolio turnover rate | 29.53 | % | 14.95 | % | 41.10 | % | 23.78 | % | 14.93 | % | ||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||
| (i) | Amount was computed based on average shares outstanding during the period. |
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — General:
The Alger Institutional Funds (the “Trust”) is an 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946 – Financial Services – Investment Companies. The Trust operates as a series company currently offering an unlimited number of shares of beneficial interest in four series – Alger Capital Appreciation Institutional Fund, Alger Focus Equity 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, Y, 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, Y, Z and Z-2 shares are generally sold to institutional investors and are sold without an initial or deferred sales charge and Class Y, Z and Z-2 shares are generally subject to a minimum initial investment of $500,000. Class C shares will automatically convert to Class A shares on the fifth business day of the month following the eighth anniversary of the purchase date of a shareholder’s Class C shares, without the imposition of any sales load, fee or other charge. Class C shares held at certain dealers may not convert to Class A shares or may be converted on a different schedule. At conversion, a proportionate amount of shares representing reinvested dividends and distributions will also be converted into Class A shares. Effective August 27, 2019, Class C shares were closed to direct shareholders and are only available for purchase through certain financial intermediaries and group retirement plan recordkeeping platforms. Each class has identical rights to assets and earnings, except that each share class bears the pro rata allocation of the Fund’s expenses other than a class expense (not including advisory or custodial fees or other expenses related to the management of the Fund’s assets).
On May 23, 2023, the Board of Trustees of the Trust (the “Board”) approved the transition of the Funds’ custodian and administrator from Brown Brothers Harriman & Company (the “Custodian”) to The Bank of New York Mellon. This change is anticipated to become effective in early 2024.
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 Board. Investments held by the Funds are valued on each day the New York Stock Exchange (the “NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern Time).
The Board has designated, pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds’ investment adviser, Fred Alger Management, LLC (“Alger Management” or the “Investment Manager”) as its valuation designee (the “Valuation Designee”) to make fair value determinations subject to the Board’s review and oversight. The Valuation Designee has established a Valuation Committee (“Committee”) comprised of representatives of the Investment Manager and officers of the Funds to assist in performing the duties and responsibilities of the Valuation Designee.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
The Valuation Designee has established valuation processes including but not limited to: (i) making fair value determinations when market quotations for financial instruments are not readily available in accordance with valuation policies and procedures adopted by the Board; (ii) assessing and managing material risks associated with fair valuation determinations; (iii) selecting, applying and testing fair valuation methodologies; and (iv) overseeing and evaluating pricing services used by the Funds. The Valuation Designee regularly reports its fair valuation determinations and related valuation information to the Board. The Committee generally meets quarterly and on an as-needed basis to review and evaluate the effectiveness of the valuation policies and procedures in accordance with the requirements of Rule 2a-5.
Investments in money market funds and short-term securities held by the Funds having a remaining maturity of sixty days or less are valued at amortized cost which approximates market value.
Equity securities, including traded rights, warrants and option contracts for which valuation information is readily available, are valued at the last quoted sales price or official closing price on the primary market or exchange on which they are traded as reported by an independent pricing service. In the absence of quoted sales, such securities are generally 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.
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 the basis of the 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 and described further herein.
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 closing foreign prices to reflect what the Valuation Designee, through its Committee, 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 NYSE is open.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
FASB 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, amortized cost, 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 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, but are not limited to, revenue multiples, earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, discount rates, time to exit 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 indexes. Because of the inherent uncertainty and often limited markets for restricted securities, the valuations assigned to such securities by the Funds may significantly differ from the valuations that would have been assigned by the Funds had there been an active market for such securities.
(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars, foreign cash and overnight time deposits.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(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 Transactions: 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.
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) Dividends to Shareholders: Dividends and distributions payable to shareholders are recorded by the Funds on the ex-dividend date. Dividends from net investment income, if available, and distributions from net realized gains, offset by any loss carryforward, are declared and paid annually after the end of the fiscal year in which earned. Each share class is treated separately in determining the amount 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 differences in tax treatment of net operating losses, passive foreign investment companies, and foreign currency transactions. The reclassifications are done annually at 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.
(f) 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.
FASB 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. Federal jurisdiction, as well as the New York State and New York City jurisdictions. The statute of limitations on the Funds’ tax returns remains open for the tax years 2019-2022. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| (g) | 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. |
| (h) | 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 a 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 the Investment 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, 2023, 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) | 0.81 | % | 0.65 | % | 0.60 | % | 0.55 | % | 0.45 | % | 0.81 | % | ||||||||||||
| Alger Focus Equity Fund(b) | 0.52 | % | — | — | — | — | 0.52 | % | ||||||||||||||||
| Alger Mid Cap Growth Institutional Fund(c) | 0.76 | % | 0.70 | % | — | — | — | 0.76 | % | |||||||||||||||
| Alger Small Cap Growth Institutional Fund(c) | 0.81 | % | 0.75 | % | — | — | — | 0.81 | % | |||||||||||||||
(a) Tier 1 rate is paid on assets up to $2 billion, Tier 2 rate is paid on assets between $2 billion and $3 billion, Tier 3 rate is paid on assets between $3 billion and $4 billion, Tier 4 rate is paid on assets between $4 billion and $5 billion, and Tier 5 rate is paid on assets in excess of $5 billion.
(b) Tier 1 rate is paid on all assets.
(c) 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 contractually agreed to waive and/or reimburse Fund expenses (excluding advisory fees, custody fees, acquired fund fees and expenses, dividend expense on short sales, net borrowing costs, interest, taxes, brokerage and extraordinary expenses, to the extent applicable) through February 28, 2025 to the extent necessary to limit other expenses and any other applicable share class-specific expenses to the rates, based on average daily net assets, as listed in the table below.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Prior to April 1, 2023, and prior to February 28, 2023 for Alger Capital Appreciation Institutional Fund, Alger Management had contractually agreed to waive and/or reimburse Fund expenses (excluding acquired fund fees and expenses, dividend expense on short sales, borrowing costs, interest, taxes, brokerage and extraordinary expenses, if applicable) for certain Funds in order for the total annual fund operating expenses to not exceed certain rates, based on average net assets.
| FEES WAIVED | |||||||||||||||||||||
| / REIMBURSED | |||||||||||||||||||||
| FOR THE YEAR | |||||||||||||||||||||
| CLASS | ENDED | ||||||||||||||||||||
| OCTOBER 31, | |||||||||||||||||||||
| A | C | I | R | Y | Z | Z-2 | 2023 | ||||||||||||||
| Alger Capital Appreciation Institutional Fund | — | — | — | — | 0.03 | %(a) | — | 0.05 | %(b) | $ | 474,944 | ||||||||||
| Alger Focus Equity Fund | — | — | — | — | 0.06 | %(c) | 0.11 | %(d) | — | 70,289 | |||||||||||
| Alger Mid Cap Growth Institutional Fund | — | — | — | — | — | — | 0.23 | %(e) | 12,352 | ||||||||||||
| Alger Small Cap Growth Institutional Fund | — | — | — | — | — | — | 0.18 | %(f) | 34,559 | ||||||||||||
(a) Prior to February 28, 2023, total annual fund operating expenses for Alger Capital Appreciation Institutional Fund, Class Y shares, could not exceed 0.75%.
(b) Prior to February 28, 2023, total annual fund operating expenses for Alger Capital Appreciation Institutional Fund, Class Z-2 shares, could not exceed 0.85%.
(c) Prior to April 1, 2023, total annual fund operating expenses for Alger Focus Equity Fund, Class Y shares, could not exceed 0.58%.
(d) Prior to April 1, 2023, total annual fund operating expenses for Alger Focus Equity Fund, Class Z shares, could not exceed 0.63%.
(e) Prior to April 1, 2023, total annual fund operating expenses for Alger Mid Cap Growth Institutional Fund, Class Z-2 shares, could not exceed 0.99%.
(f) Prior to April 1, 2023, total annual fund operating expenses for Alger Small Cap Growth Institutional Fund, Class Z-2 shares, could not exceed 0.99%.
Alger Management may recoup any fees waived or expenses reimbursed pursuant to the contract; however, a Fund will only make repayments to the Investment Manager if such repayment does not cause a Fund’s expense ratio after the repayment is taken into account, to exceed both (i) the expense cap in place at the time such amounts were waived or reimbursed, and (ii) a Fund’s current expense cap. Such recoupment is limited to two years from the date the amount is initially waived or reimbursed. For the year ended October 31, 2023, the recoupments made by the Alger Focus Equity Fund to the Investment Manager were $5,311.
(b) Administration Fees: Fees incurred by each Fund, pursuant to the provisions of the Trust’s Fund Administration Agreement with Alger Management, are payable monthly and computed based on the average daily net assets of each Fund at the annual rate of 0.0275%.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(c) Distribution Fees:
Class A Shares: The Trust has adopted a Distribution Plan pursuant to which Class A shares of Alger Focus Equity Fund pay Fred Alger & Company, LLC, the Trust’s distributor and an affiliate of the Investment Manager (the “Distributor” or “Alger LLC”) 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 LLC for its activities and expenses incurred in distributing and/or administering the share class and/or shareholder servicing. The fees paid may be more or less than the expenses incurred by Alger LLC.
Class C Shares: The Trust has adopted a Distribution Plan pursuant to which Class C shares of Alger Focus Equity Fund pays Alger LLC 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 LLC for its activities and expenses incurred in distributing and/or servicing the Class C shares. The fees paid may be more or less than the expenses incurred by Alger LLC.
Class R Shares: The Trust has adopted a Distribution Plan pursuant to which Class R shares of each Fund issuing such shares pays Alger LLC 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 LLC for its activities and expenses incurred in distributing the Class R shares. The fees paid may be more or less than the expenses incurred by the Distributor.
(d) Sales Charges: Sales of shares of the Funds may be subject to contingent deferred sales charges. The contingent deferred sales charges are used by Alger LLC to offset distribution expenses previously incurred. Sales charges do not represent expenses of the Trust. For the year ended October 31, 2023, contingent deferred sales charges imposed, all of which were retained by Alger LLC, were as follows:
| CONTINGENT | ||||
| DEFERRED SALES | ||||
| CHARGES | ||||
| Alger Capital Appreciation Institutional Fund | $ | 2,841 | ||
(e) Brokerage Commissions: During the year ended October 31, 2023, Alger Capital Appreciation Institutional Fund, Alger Focus Equity Fund, Alger Mid Cap Growth Institutional Fund and Alger Small Cap Growth Institutional Fund paid Alger LLC commissions of $277,184, $120,695, $3,384 and $32,053, 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 liaising with, and providing administrative oversight of, the Trust’s transfer agent, and for 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 for the Class I, Class R, Class Y, 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 Board. For the year ended October 31, 2023, Alger Management charged back to Alger Capital Appreciation Institutional Fund, Alger Focus Equity Fund, Alger Mid Cap Growth Institutional Fund, and Alger Small Cap Growth Institutional Fund, $826,562, $72,621, $33,212 and $44,882, respectively, for these services, which are included in the transfer agent fees in the accompanying Statements of Operations.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(g) Trustee Fees: Each trustee who is not an “interested person” of the Trust, as defined in the 1940 Act (“Independent Trustee”), receives a fee of $156,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex, plus travel expenses incurred for attending board meetings. The term “Alger Fund Complex” refers to the Trust, The Alger Funds, The Alger Funds II, The Alger Portfolios, Alger Global Focus Fund and The Alger ETF Trust, each of which is a registered investment company managed by Alger Management. The Independent Trustee appointed as Chairman of the Board receives additional compensation of $22,000 per annum paid pro rata based on net assets by each fund in the Alger Fund Complex. Additionally, each member of the Audit Committee receives a fee of $13,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex.
The Board has adopted a policy requiring Trustees to receive a minimum of 10% of their annual compensation in shares of one or more of the funds in the Alger Fund Complex.
(h) Interfund Trades: The Funds may engage in purchase and sale transactions with other funds advised by Alger Management or sub-advised by Weatherbie Capital, LLC, an affiliate of Alger Management. For the year ended October 31, 2023, these purchases and sales were as follows:
| PURCHASES | SALES | REALIZED GAIN/LOSS | ||||||||||
|
Alger Small Cap Growth Institutional Fund |
$ | 993,142 | $ | — | $ | — | ||||||
(i) Interfund Loans: The Funds, along with other funds in the Alger Fund Complex, may borrow money from and lend money to each other for temporary or emergency purposes. To the extent permitted under its investment restrictions, each Fund may lend uninvested cash in an amount up to 15% of its net assets to other funds in the Alger Fund Complex. If a Fund has borrowed from other funds in the Alger Fund Complex 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 in the Alger Fund Complex. 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, 2023.
During the year ended October 31, 2023, Alger Capital Appreciation Institutional Fund, Alger Focus Equity Fund, Alger Mid Cap Growth Institutional Fund and Alger Small Cap Growth Institutional Fund incurred interfund loan interest expenses of $127,908, $4,726, $81 and $3,725, respectively, which are included as interest expenses in the accompanying Statements of Operations.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(j) Other Transactions with Affiliates: Certain officers and one Trustee of the Trust are directors and/or officers of Alger Management, the Distributor, or their affiliates. At October 31, 2023, Alger Management and its affiliated entities owned the following shares:
| SHARE CLASS | ||||||||||||||||
| A | Y | Z | Z-2 | |||||||||||||
| Alger Capital Appreciation Institutional Fund | — | 415 | — | 4,518 | ||||||||||||
| Alger Focus Equity Fund | 14,590 | 408 | 38,752 | — | ||||||||||||
| Alger Mid Cap Growth Institutional Fund | — | — | — | 4,909 | ||||||||||||
| Alger Small Cap Growth Institutional Fund | — | — | — | 7,733 | ||||||||||||
(k) Shareholder Servicing Fees: The Trust has entered into a shareholder servicing agreement with Alger LLC whereby Alger LLC provides Class I and Class R shares of the applicable Funds with ongoing servicing of shareholder accounts. As compensation for such services, the Class I and Class R shares of each applicable Fund pay Alger LLC a 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 each Fund, other than U.S. Government securities, in-kind transactions and short-term securities, for the year ended October 31, 2023:
| PURCHASES | SALES | |||||||
| Alger Capital Appreciation Institutional Fund | $ | 1,754,540,241 | 2,397,692,257 | |||||
| Alger Focus Equity Fund | 1,111,142,300 | 1,222,221,561 | ||||||
| Alger Mid Cap Growth Institutional Fund | 45,864,578 | 46,208,303 | ||||||
| Alger Small Cap Growth Institutional Fund | 42,469,320 | 89,304,004 | ||||||
NOTE 5 — Borrowing:
The Funds may borrow from the Custodian, on an uncommitted basis. Each Fund pays the Custodian a market rate of interest, generally based upon a rate of return with respect to each respective currency borrowed, taking into consideration relevant overnight and short-term reference rates and the range of distribution between and among the interest rates paid on deposits to other institutions, less applicable commissions, if any. The Funds may also borrow from other funds in the Alger Fund Complex, as discussed in Note 3(i). For the year ended October 31, 2023, the Funds had the following borrowings from the Custodian and other funds in the Alger Fund Complex:
|
AVERAGE DAILY BORROWING |
WEIGHTED AVERAGE INTEREST RATE |
|||||||
| Alger Capital Appreciation Institutional Fund | $ | 2,258,282 | 5.92 | % | ||||
| Alger Focus Equity Fund | 83,275 | 6.07 | ||||||
| Alger Mid Cap Growth Institutional Fund | 5,313 | 6.77 | ||||||
| Alger Small Cap Growth Institutional Fund | 66,550 | 5.73 | ||||||
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
The highest amount borrowed from the Custodian and other funds in the Alger Fund Complex during the year ended October 31, 2023 was as follows:
| HIGHEST BORROWING | ||||
| Alger Capital Appreciation Institutional Fund | $ | 35,335,042 | ||
| Alger Focus Equity Fund | 28,700,000 | |||
| Alger Mid Cap Growth Institutional Fund | 1,196,363 | |||
| Alger Small Cap Growth Institutional Fund | 6,156,000 | |||
NOTE 6 — Share Capital:
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. During the year ended October 31, 2023, and the year ended October 31, 2022, transactions of shares of beneficial interest were as follows:
|
FOR THE YEAR ENDED OCTOBER 31, 2023 |
FOR THE YEAR ENDED OCTOBER 31, 2022 |
|||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
| Alger Capital Appreciation Institutional Fund | ||||||||||||||||
| Class I: | ||||||||||||||||
| Shares sold | 4,287,576 | $ | 123,564,346 | 6,082,605 | $ | 204,950,127 | ||||||||||
| Dividends reinvested | 1,620,685 | 41,813,688 | 8,729,064 | 357,978,917 | ||||||||||||
| Shares redeemed | (18,618,202 | ) | (544,535,929 | ) | (16,512,423 | ) | (548,065,348 | ) | ||||||||
| Net increase (decrease) | (12,709,941 | ) | $ | (379,157,895 | ) | (1,700,754 | ) | $ | 14,863,696 | |||||||
| Class R: | ||||||||||||||||
| Shares sold | 1,296,287 | $ | 29,231,617 | 1,458,370 | $ | 38,411,567 | ||||||||||
| Dividends reinvested | 684,569 | 13,910,440 | 3,173,301 | 103,957,327 | ||||||||||||
| Shares redeemed | (3,589,895 | ) | (83,536,423 | ) | (3,441,517 | ) | (94,774,901 | ) | ||||||||
| Net increase (decrease) | (1,609,039 | ) | $ | (40,394,366 | ) | 1,190,154 | $ | 47,593,993 | ||||||||
| Class Y: | ||||||||||||||||
| Shares sold | 2,268,294 | $ | 68,921,701 | 4,303,470 | $ | 153,516,672 | ||||||||||
| Dividends reinvested | 414,130 | 11,057,274 | 2,290,601 | 96,686,255 | ||||||||||||
| Shares redeemed | (5,748,994 | ) | (176,995,426 | ) | (6,500,025 | ) | (248,029,509 | ) | ||||||||
| Net increase (decrease) | (3,066,570 | ) | $ | (97,016,451 | ) | 94,046 | $ | 2,173,418 | ||||||||
| Class Z-2: | ||||||||||||||||
| Shares sold | 999,589 | $ | 29,184,899 | 1,883,801 | $ | 65,637,657 | ||||||||||
| Dividends reinvested | 333,450 | 8,863,106 | 2,335,207 | 98,265,522 | ||||||||||||
| Shares redeemed | (5,101,884 | ) | (150,854,988 | ) | (6,407,587 | ) | (216,605,126 | ) | ||||||||
| Net decrease | (3,768,845 | ) | $ | (112,806,983 | ) | (2,188,579 | ) | $ | (52,701,947 | ) | ||||||
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
|
FOR THE YEAR ENDED OCTOBER 31, 2023 |
FOR THE YEAR ENDED OCTOBER 31, 2022 |
|||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
| Alger Focus Equity Fund | ||||||||||||||||
| Class A: | ||||||||||||||||
| Shares sold | 580,265 | $ | 23,603,190 | 395,805 | $ | 18,410,568 | ||||||||||
| Shares converted from Class C | 40,542 | 1,610,657 | 42,925 | 2,073,608 | ||||||||||||
| Dividends reinvested | 1,224 | 45,464 | 250,005 | 14,062,788 | ||||||||||||
| Shares redeemed | (492,908 | ) | (20,367,462 | ) | (649,304 | ) | (30,002,814 | ) | ||||||||
| Net increase | 129,123 | $ | 4,891,849 | 39,431 | $ | 4,544,150 | ||||||||||
| Class C: | ||||||||||||||||
| Shares sold | 351,217 | $ | 13,203,932 | 340,260 | $ | 14,240,950 | ||||||||||
| Shares converted to Class A | (44,665 | ) | (1,610,657 | ) | (46,892 | ) | (2,073,608 | ) | ||||||||
| Dividends reinvested | — | — | 174,899 | 9,009,061 | ||||||||||||
| Shares redeemed | (348,758 | ) | (13,116,638 | ) | (332,421 | ) | (13,741,860 | ) | ||||||||
| Net increase (decrease) | (42,206 | ) | $ | (1,523,363 | ) | 135,846 | $ | 7,434,543 | ||||||||
| Class I: | ||||||||||||||||
| Shares sold | 179,413 | $ | 7,446,824 | 248,368 | $ | 11,899,053 | ||||||||||
| Subscriptions in-kind* | — | — | 2,177,233 | 147,434,796 | ||||||||||||
| Dividends reinvested | 637 | 23,831 | 152,486 | 8,642,907 | ||||||||||||
| Redemptions in-kind** | — | — | (2,223,483 | ) | (150,943,812 | ) | ||||||||||
| Shares redeemed | (322,450 | ) | (13,434,602 | ) | (379,011 | ) | (18,341,332 | ) | ||||||||
| Net decrease | (142,400 | ) | $ | (5,963,947 | ) | (24,407 | ) | $ | (1,308,388 | ) | ||||||
| Class Y: | ||||||||||||||||
| Shares sold | 581,007 | $ | 24,348,006 | 642,844 | $ | 32,324,568 | ||||||||||
| Dividends reinvested | 2,867 | 110,708 | 379,807 | 22,142,761 | ||||||||||||
| Shares redeemed | (855,918 | ) | (37,093,793 | ) | (727,308 | ) | (33,489,095 | ) | ||||||||
| Net increase (decrease) | (272,044 | ) | $ | (12,635,079 | ) | 295,343 | $ | 20,978,234 | ||||||||
| Class Z: | ||||||||||||||||
| Shares sold | 6,581,004 | $ | 276,433,840 | 6,274,254 | $ | 300,824,391 | ||||||||||
| Dividends reinvested | 18,534 | 713,372 | 2,426,793 | 141,093,762 | ||||||||||||
| Shares redeemed | (8,911,877 | ) | (391,540,130 | ) | (6,742,271 | ) | (318,207,858 | ) | ||||||||
| Net increase (decrease) | (2,312,339 | ) | $ | (114,392,918 | ) | 1,958,776 | $ | 123,710,295 | ||||||||
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
|
FOR THE YEAR ENDED OCTOBER 31, 2023 |
FOR THE YEAR ENDED OCTOBER 31, 2022 |
|||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
| Alger Mid Cap Growth Institutional Fund | ||||||||||||||||
| Class I: | ||||||||||||||||
| Shares sold | 230,770 | $ | 4,140,430 | 319,640 | $ | 7,318,366 | ||||||||||
| Dividends reinvested | — | — | 1,306,957 | 32,739,262 | ||||||||||||
| Shares redeemed | (423,746 | ) | (7,681,649 | ) | (827,536 | ) | (17,762,617 | ) | ||||||||
| Net increase (decrease) | (192,976 | ) | $ | (3,541,219 | ) | 799,061 | $ | 22,295,011 | ||||||||
| Class R: | ||||||||||||||||
| Shares sold | 42,414 | $ | 594,961 | 61,687 | $ | 972,742 | ||||||||||
| Dividends reinvested | — | — | 166,142 | 3,214,840 | ||||||||||||
| Shares redeemed | (54,240 | ) | (755,501 | ) | (70,494 | ) | (1,132,448 | ) | ||||||||
| Net increase (decrease) | (11,826 | ) | $ | (160,540 | ) | 157,335 | $ | 3,055,134 | ||||||||
| Class Z-2: | ||||||||||||||||
| Shares sold | 215,286 | $ | 4,078,589 | 406,178 | $ | 9,474,467 | ||||||||||
| Dividends reinvested | — | — | 353,526 | 9,138,654 | ||||||||||||
| Shares redeemed | (207,193 | ) | (3,836,760 | ) | (650,170 | ) | (13,291,926 | ) | ||||||||
| Net increase | 8,093 | $ | 241,829 | 109,534 | $ | 5,321,195 | ||||||||||
| Alger Small Cap Growth Institutional Fund | ||||||||||||||||
| Class I: | ||||||||||||||||
| Shares sold | 479,785 | $ | 7,071,772 | 1,071,212 | $ | 19,928,708 | ||||||||||
| Dividends reinvested | — | — | 1,270,807 | 28,224,632 | ||||||||||||
| Shares redeemed | (1,686,652 | ) | (25,125,898 | ) | (2,684,777 | ) | (53,485,697 | ) | ||||||||
| Net decrease | (1,206,867 | ) | $ | (18,054,126 | ) | (342,758 | ) | $ | (5,332,357 | ) | ||||||
| Class R: | ||||||||||||||||
| Shares sold | 51,657 | $ | 527,625 | 79,991 | $ | 1,053,450 | ||||||||||
| Dividends reinvested | — | — | 136,909 | 2,122,088 | ||||||||||||
| Shares redeemed | (133,705 | ) | (1,349,700 | ) | (166,963 | ) | (2,047,468 | ) | ||||||||
| Net increase (decrease) | (82,048 | ) | $ | (822,075 | ) | 49,937 | $ | 1,128,070 | ||||||||
| Class Z-2: | ||||||||||||||||
| Shares sold | 1,739,915 | $ | 26,072,991 | 3,300,769 | $ | 63,954,907 | ||||||||||
| Dividends reinvested | — | — | 1,144,418 | 25,955,396 | ||||||||||||
| Shares redeemed | (3,913,914 | ) | (58,820,323 | ) | (4,156,624 | ) | (81,468,957 | ) | ||||||||
| Net increase (decrease) | (2,173,999 | ) | $ | (32,747,332 | ) | 288,563 | $ | 8,441,346 |
* Certain shareholders of the Fund subscribed shares in-kind.
** Certain shareholders of the Fund redeemed shares in-kind.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2023 and the year ended October 31, 2022 was as follows:
|
FOR THE YEAR ENDED OCTOBER 31, 2023 |
FOR THE YEAR ENDED OCTOBER 31, 2022 |
|||||||
| Alger Capital Appreciation Institutional Fund | ||||||||
| Distributions paid from: | ||||||||
| Ordinary Income | $ | — | $ | 11,979,070 | ||||
| Long-term capital gain | 77,367,559 | 660,716,382 | ||||||
| Total distributions paid | $ | 77,367,559 | $ | 672,695,452 | ||||
| Alger Focus Equity Fund | ||||||||
| Distributions paid from: | ||||||||
| Ordinary Income | $ | 905,448 | $ | 29,010,353 | ||||
| Long-term capital gain | — | 169,045,927 | ||||||
| Total distributions paid | $ | 905,448 | $ | 198,056,280 |
| Alger Mid Cap Growth Institutional Fund | ||||||||
| Distributions paid from: | ||||||||
| Ordinary Income | $ | — | $ | 16,904,986 | ||||
| Long-term capital gain | — | 29,744,571 | ||||||
| Total distributions paid | $ | — | $ | 46,649,557 |
| Alger Small Cap Growth Institutional Fund | ||||||||
| Distributions paid from: | ||||||||
| Ordinary Income | $ | — | $ | — | ||||
| Long-term capital gain | — | 57,641,298 | ||||||
| Total distributions paid | $ | — | $ | 57,641,298 |
As of October 31, 2023, the components of accumulated earnings (losses) on a tax basis were as follows:
| Alger Capital Appreciation Institutional Fund | ||||
| Undistributed ordinary income | $ | — | ||
| Undistributed long-term gains | 159,722,666 | |||
| Net accumulated earnings | 159,722,666 | |||
| Capital loss carryforwards | — | |||
| Late year ordinary income losses | (10,732,320 | ) | ||
| Net unrealized appreciation | 757,117,485 | |||
| Total accumulated earnings | $ | 906,107,831 | ||
| Alger Focus Equity Fund | ||||
| Undistributed ordinary income | $ | 113,191 | ||
| Undistributed long-term gains | — | |||
| Net accumulated earnings | 113,191 | |||
| Capital loss carryforwards | (198,780,413 | ) | ||
| Net unrealized appreciation | 268,667,511 | |||
| Total accumulated earnings | $ | 70,000,289 |
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 | (21,260,126 | ) | ||
| Late year ordinary income losses | (446,721 | ) | ||
| Net unrealized appreciation | 768,992 | |||
| Total accumulated earnings | $ | (20,937,855 | ) | |
| Alger Small Cap Growth Institutional Fund | ||||
| Undistributed ordinary income | $ | — | ||
| Undistributed long-term gains | — | |||
| Net accumulated earnings | — | |||
| Capital loss carryforwards | (16,747,691 | ) | ||
| Late year ordinary income losses | — | |||
| Net unrealized appreciation | 7,493,362 | |||
| Total accumulated earnings | $ | (9,254,329 | ) | |
During the year ended October 31, 2023, the Alger Focus Equity Fund, the Alger Mid Cap Growth Institutional Fund and the Alger Small Cap Growth Institutional Fund, for federal income tax purposes, had capital loss carryforwards of $198,780,413, $21,260,126 and $16,747,691, respectively. These amounts will not be subject to expiration under the Regulated Investment Company Modernization Act of 2010, and these amounts may be applied against future net realized gains until their utilization.
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, tax treatment of partnership investments, the realization of unrealized appreciation of passive foreign investment companies, and the return of capital from real estate investment trust investments.
The Funds accrue tax on unrealized gains in foreign jurisdictions that impose a foreign capital tax.
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 the Funds’ components of net assets at October 31, 2023:
| Alger Capital Appreciation Institutional Fund | ||||
| Distributable earnings | $ | (9,927,911 | ) | |
| Paid-in Capital | $ | 9,927,911 | ||
| Alger Focus Equity Fund | ||||
| Distributable earnings | $ | 7,332 | ||
| Paid-in Capital | $ | (7,332 | ) | |
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Mid Cap Growth Institutional Fund | ||||
| Distributable earnings | $ | 542,624 | ||
| Paid-in Capital | $ | (542,624 | ) | |
| Alger Small Cap Growth Institutional Fund | ||||
| Distributable earnings | $ | 1,369,186 | ||
| Paid-in Capital | $ | (1,369,186 | ) | |
NOTE 8 — Fair Value Measurements:
The following is a summary of the inputs used as of October 31, 2023 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 | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | $ | 272,462,890 | $ | 272,462,890 | $ | — | $ | — | ||||||||
| Consumer Discretionary | 230,445,362 | 219,921,531 | 10,523,831 | — | ||||||||||||
| Energy | 59,954,282 | 59,954,282 | — | — | ||||||||||||
| Financials | 97,373,334 | 97,373,334 | — | — | ||||||||||||
| Healthcare | 239,567,023 | 239,567,023 | — | — | ||||||||||||
| Industrials | 127,154,595 | 127,154,595 | — | — | ||||||||||||
| Information Technology | 750,625,021 | 750,625,021 | — | — | ||||||||||||
| Materials | 26,129,680 | 26,129,680 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 1,803,712,187 | $ | 1,793,188,356 | $ | 10,523,831 | $ | — | ||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Information Technology | 1,467,635 | — | — | 1,467,635 | ||||||||||||
| SPECIAL PURPOSE VEHICLE | ||||||||||||||||
| Information Technology | 2,831,337 | — | — | 2,831,337 | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 1,808,011,159 | $ | 1,793,188,356 | $ | 10,523,831 | $ | 4,298,972 | ||||||||
| Alger Focus Equity Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | 177,517,747 | 177,517,747 | — | — | ||||||||||||
| Consumer Discretionary | 140,211,368 | 134,025,240 | 6,186,128 | — | ||||||||||||
| Energy | 33,434,485 | 33,434,485 | — | — | ||||||||||||
| Financials | 73,142,913 | 73,142,913 | — | — | ||||||||||||
| Healthcare | 145,394,483 | 145,394,483 | — | — | ||||||||||||
| Industrials | 69,490,355 | 69,490,355 | — | — | ||||||||||||
| Information Technology | 424,396,223 | 424,396,223 | — | — | ||||||||||||
| Materials | 20,403,233 | 20,403,233 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 1,083,990,807 | $ | 1,077,804,679 | $ | 6,186,128 | $ | — |
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Focus Equity Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Healthcare | $ | — | * | $ | — | $ | — | $ | — | * | ||||||
| SHORT TERM INVESTMENTS | ||||||||||||||||
| U.S. Government | 4,999,278 | — | 4,999,278 | — | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 1,088,990,085 | $ | 1,077,804,679 | $ | 11,185,406 | $ | — | ||||||||
| Alger Mid Cap Growth Institutional Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | 3,572,394 | 3,572,394 | — | — | ||||||||||||
| Consumer Discretionary | 6,173,047 | 6,173,047 | — | — | ||||||||||||
| Consumer Staples | 833,706 | 833,706 | — | — | ||||||||||||
| Energy | 1,950,934 | 1,950,934 | — | — | ||||||||||||
| Financials | 4,516,407 | 4,516,407 | — | — | ||||||||||||
| Healthcare | 8,178,989 | 8,178,989 | — | — | ||||||||||||
| Industrials | 9,534,532 | 9,534,532 | — | — | ||||||||||||
| Information Technology | 14,146,690 | 14,146,690 | — | — | ||||||||||||
| Materials | 1,145,032 | 1,145,032 | — | — | ||||||||||||
| Real Estate | 2,672,537 | 2,672,537 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 52,724,268 | $ | 52,724,268 | $ | — | $ | — | ||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Healthcare | — | * | — | — | — | * | ||||||||||
| WARRANTS | ||||||||||||||||
| Information Technology | — | ** | — | — | ** | — | ||||||||||
| RIGHTS | ||||||||||||||||
| Healthcare | 287,591 | — | — | 287,591 | ||||||||||||
| SPECIAL PURPOSE VEHICLE | ||||||||||||||||
| Information Technology | 713,589 | — | — | 713,589 | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 53,725,448 | $ | 52,724,268 | $ | — | $ | 1,001,180 | ||||||||
| Alger Small Cap Growth Institutional Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | 4,922,773 | 4,922,773 | — | — | ||||||||||||
| Consumer Discretionary | 11,679,651 | 11,679,651 | — | — | ||||||||||||
| Consumer Staples | 3,726,057 | 3,726,057 | — | — | ||||||||||||
| Energy | 4,656,319 | 4,656,319 | — | — | ||||||||||||
| Financials | 3,639,630 | 3,639,630 | — | — | ||||||||||||
| Healthcare | 32,126,986 | 30,609,629 | — | 1,517,357 | ||||||||||||
| Industrials | 8,802,980 | 8,802,980 | — | — | ||||||||||||
| Information Technology | 28,202,346 | 28,202,346 | — | — | ||||||||||||
| Materials | 643,591 | 643,591 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 98,400,333 | $ | 96,882,976 | $ | — | $ | 1,517,357 | ||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Healthcare | — | * | — | — | — | * | ||||||||||
| Information Technology | 4,313,986 | — | — | 4,313,986 | ||||||||||||
| TOTAL PREFERRED STOCKS | $ | 4,313,986 | $ | — | $ | — | $ | 4,313,986 |
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Small Cap Growth Institutional Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| RIGHTS | ||||||||||||||||
| Healthcare | $ | 359,420 | $ | — | $ | — | $ | 359,420 | ||||||||
| SPECIAL PURPOSE VEHICLE | ||||||||||||||||
| Information Technology | 1,473,216 | — | — | 1,473,216 | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 104,546,955 | $ | 96,882,976 | $ | — | $ | 7,663,979 | ||||||||
* Alger Focus Equity Fund’s, Alger Mid Cap Growth Institutional Fund’s and Alger Small Cap Growth Institutional Fund’s holdings of Prosetta Biosciences, Inc., Series D shares are classified as a Level 3 investment and are fair valued at zero as of October 31, 2023.
** Alger Mid Cap Growth Institutional Fund’s holdings of Constellation Software, Inc. warrants expiring March 31, 2040, are classified as a Level 2 investment and are fair valued at zero as of October 31, 2023.
|
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
||||
| Alger Small Cap Growth Institutional Fund | Common Stocks | |||
| Opening balance at November 1, 2022 | $ | 1,756,940 | ||
| Transfers into Level 3 | — | |||
| Transfers out of Level 3 | — | |||
| Total gains or losses | ||||
| Included in net realized gain (loss) on investments | — | |||
| Included in net change in unrealized appreciation (depreciation) on investments | (239,583 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at October 31, 2023 | 1,517,357 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2023* | $ | (239,583 | ) | |
|
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
||||
| Alger Small Cap Growth Institutional Fund | Preferred Stocks | |||
| Opening balance at November 1, 2022 | $ | 4,994,660 | ||
| Transfers into Level 3 | — | |||
| Transfers out of Level 3 | — | |||
| Total gains or losses | ||||
| Included in net realized gain (loss) on investments | — | |||
| Included in net change in unrealized appreciation (depreciation) on investments | (680,674 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at October 31, 2023 | 4,313,986 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2023* | $ | (680,674 | ) | |
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
|
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
||||
| Alger Small Cap Growth Institutional Fund |
Special Purpose Vehicle |
|||
| Opening balance at November 1, 2022 | $ | 1,348,440 | ||
| Transfers into Level 3 | — | |||
| Transfers out of Level 3 | — | |||
| Total gains or losses | ||||
| Included in net realized gain (loss) on investments | — | |||
| Included in net change in unrealized appreciation (depreciation) on investments | (174,471 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at October 31, 2023 | 1,173,969 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2023* | $ | (174,471 | ) | |
* Net change in unrealized appreciation (depreciation) is included in net change in unrealized appreciation/depreciation on investments in the accompanying statement of operations.
The following table provides quantitative information about each Fund’s Level 3 fair value measurements of its investments as of October 31, 2023. The table below is not intended to be all-inclusive, but rather provides information on the Level 3 inputs as they relate to each Fund’s fair value measurements.
| Fair Value | Valuation | Unobservable | Weighted Average | ||||||||||
| October 31, 2023 | Methodology | Input | Input/Range | Inputs | |||||||||
| Alger Capital Appreciation Institutional Fund | |||||||||||||
| Preferred Stocks | $ | 1,467,635 | Market | Revenue Multiple | 11.0x-13.0x | N/A | |||||||
| Approach | |||||||||||||
| Special Purpose Vehicle | 2,831,337 | Market | Revenue Multiple | 11.0x-13.0x | N/A | ||||||||
| Approach | |||||||||||||
| Alger Focus Equity Fund | |||||||||||||
| Preferred Stocks | — | * | Income | Discount Rate | 100.00% | N/A | |||||||
| Approach | |||||||||||||
| Alger Mid Cap Growth Institutional Fund | |||||||||||||
| Preferred Stocks | — | * | Income | Discount Rate | 100.00% | N/A | |||||||
| Approach | |||||||||||||
| Rights | 287,591 | Income | Discount Rate | 9.26%-9.75% | N/A | ||||||||
| Approach | Probability of | 0.00%-60.00% | N/A | ||||||||||
| Success | |||||||||||||
| Special Purpose Vehicle | 713,589 | Market | Revenue Multiple | 11.0x-13.0x | N/A | ||||||||
| Approach | |||||||||||||
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Fair Value | Valuation | Unobservable | Weighted Average | ||||||||||
| October 31, 2023 | Methodology | Input | Input/Range | Inputs | |||||||||
| Alger Small Cap Growth Institutional Fund | |||||||||||||
| Common Stocks | $ | 1,517,357 | Market | Transaction Price | N/A | N/A | |||||||
| Approach | Revenue Multiple | 5.00x-6.00x | N/A | ||||||||||
| Preferred Stocks | — | * | Income | Discount Rate | 100.00% | N/A | |||||||
| Approach | |||||||||||||
| Preferred Stocks | 4,313,986 | Market | Revenue Multiple | 11.0x-13.0x | N/A | ||||||||
| Approach | |||||||||||||
| Rights | 359,420 | Income | Discount Rate | 9.26%-9.75% | N/A | ||||||||
| Approach | Probability of | 0.00%-60.00% | N/A | ||||||||||
| Success | |||||||||||||
| Special Purpose Vehicle | 1,473,216 | Market | Revenue Multiple | 11.0x-13.0x | N/A | ||||||||
| Approach | |||||||||||||
* Prosetta Biosciences, Inc., Series D shares are classified as a Level 3 investment and are fair valued at zero as of October 31, 2023.
The significant unobservable inputs used in the fair value measurement of each Fund’s securities are revenue and EBITDA multiples, discount rates, and the probability of success of certain outcomes. Significant increases and decreases in these inputs in isolation and interrelationships between these inputs would have resulted in significantly higher or lower fair value measurements than those noted in the table above. Generally, all other things being equal, increases in revenue and EBITDA multiples, decreases in discount rates, and increases in the probability of success result in higher fair value measurements, whereas decreases in revenues and EBITDA multiples, increases in discount rates, and decreases in the probability of success result in lower fair value measurements. For the year ended October 31, 2023, there were no changes in valuation methodology on Level 3 investments.
Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes. As of October 31, 2023, such assets were categorized within the ASC 820 disclosure hierarchy as follows:
| TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||
| Cash, foreign cash and cash equivalents | ||||||||||||||||
| Alger Capital Appreciation Institutional Fund | $ | 10,206,907 | $ | — | $ | 10,206,907 | $ | — | ||||||||
| Alger Focus Equity Fund | 26,864,725 | — | 26,864,725 | — | ||||||||||||
| Alger Mid Cap Growth Institutional Fund | 510,093 | — | 510,093 | — | ||||||||||||
| Alger Small Cap Growth Institutional Fund | 487,986 | — | 487,986 | — | ||||||||||||
NOTE 9 — Derivatives:
FASB 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.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
There were no derivative instruments held by the Funds throughout the year or as of October 31, 2023.
NOTE 10 — Principal Risks:
Alger Capital Appreciation Institutional Fund — Investing in the stock market involves risks, including the potential loss of principal. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, the Fund may hold a large cash or cash equivalent position, which may underperform relative to equity securities.
Alger Focus Equity Fund — Investing in the stock market involves risks, including the potential loss of principal. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, the Fund may hold a large cash or cash equivalent position, which may underperform relative to equity securities.
Alger Mid Cap Growth Institutional Fund — Investing in the stock market involves risks, including the potential loss of principal. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, the Fund may hold a large cash or cash equivalent position, which may underperform relative to equity securities.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Alger Small Cap Growth Institutional Fund — Investing in the stock market involves risks, including the potential loss of principal. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. At times, the Fund may hold a large cash or cash equivalent position, which may underperform relative to equity securities.
NOTE 11 — Affiliated Securities:
During the year ended October 31, 2023, as disclosed in the following table, certain Funds held 5% or more of the outstanding voting securities of the issuers listed below. As such, these issuers were “affiliated persons” of the applicable Fund(s) for purposes of the 1940 Act. Transactions during the year ended October 31, 2023 with such affiliated persons are summarized below. During this year, other Funds in the Trust may also have held voting shares of the issuers at levels below 5%.
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Security |
Shares Held at October 31, 2022 |
Shares Purchased |
Shares Sold |
Shares Held at October 31, 2023 |
Dividend Income |
Realized Gain (Loss) |
Net Change in Unrealized App(Dep) |
Value at October 31, 2023 |
||||||||||||||||||||||||
| Alger Capital Appreciation Institutional Fund | ||||||||||||||||||||||||||||||||
| Special Purpose Vehicle | ||||||||||||||||||||||||||||||||
| Crosslink Ventures C, | ||||||||||||||||||||||||||||||||
| LLC, Cl. A*** | — | — | — | — | $ | — | $ | — | $ | (420,783 | ) | $ | 2,831,337 | |||||||||||||||||||
| Total | $ | — | $ | — | $ | (420,783 | ) | $ | 2,831,337 | |||||||||||||||||||||||
| Security |
Shares Held at October 31, 2022 |
Shares Purchased |
Shares Sold |
Shares Held at October 31, 2023 |
Dividend Income |
Realized Gain (Loss) |
Net Change in Unrealized App(Dep) |
Value at October 31, 2023 |
||||||||||||||||||||||||
| Alger Focus Equity Fund | ||||||||||||||||||||||||||||||||
| Preferred Stocks | ||||||||||||||||||||||||||||||||
| Prosetta Biosciences, Inc., Series | ||||||||||||||||||||||||||||||||
| D** | 76,825 | — | — | 76,825 | $ | — | $ | — | $ | — | $ | — | * | |||||||||||||||||||
| Total | $ | — | $ | — | $ | — | $ | — | * | |||||||||||||||||||||||
| Security | Shares Held at October 31, 2022 |
Shares Purchased |
Shares Sold |
Shares Held at October 31, 2023 |
Dividend Income |
Realized Gain (Loss) |
Net Change in Unrealized App(Dep) |
Value at October 31, 2023 |
|||||||||||||||||||||||
| Alger Mid Cap Growth Institutional Fund | |||||||||||||||||||||||||||||||
| Preferred Stocks | |||||||||||||||||||||||||||||||
| Prosetta Biosciences, Inc., Series D** | 166,009 | — | — | 166,009 | $ | — | $ | — | $ | — | $ | — | * | ||||||||||||||||||
| Special Purpose Vehicle | |||||||||||||||||||||||||||||||
| Crosslink Ventures C, LLC, Cl. A*** | — | — | — | — | — | — | (75,262 | ) | 506,418 | ||||||||||||||||||||||
| Crosslink Ventures C, LLC, Cl. B*** | — | — | — | — | — | — | (32,715 | ) | 207,171 | ||||||||||||||||||||||
| Total | $ | — | $ | — | $ | (107,977 | ) | $ | 713,589 | ||||||||||||||||||||||
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Security |
Shares Held at October 31, 2022 |
Shares Purchased |
Shares Sold |
Shares Held at October 31, 2023 |
Dividend Income |
Realized Gain (Loss) |
Net Change in Unrealized App(Dep) |
Value at October 31, 2023 |
||||||||||||||||||||||||
| Alger Small Cap Growth Institutional Fund | ||||||||||||||||||||||||||||||||
| Preferred Stocks | ||||||||||||||||||||||||||||||||
| Prosetta Biosciences, Inc., Series D** | 133,263 | — | — | 133,263 | $ | — | $ | — | $ | — | $ | — | * | |||||||||||||||||||
| Special Purpose Vehicle | ||||||||||||||||||||||||||||||||
| Crosslink Ventures C, LLC, Cl. A*** | — | — | — | — | — | — | (174,471 | ) | $ | 1,173,969 | ||||||||||||||||||||||
| Crosslink Ventures C, LLC, Cl. B*** | — | — | — | — | — | — | (47,255 | ) | 299,247 | |||||||||||||||||||||||
| Total | $ | — | $ | — | $ | (221,726 | ) | $ | 1,473,216 | |||||||||||||||||||||||
* Prosetta Biosciences, Inc., Series D shares are classified as a Level 3 investment and are fair valued at zero as of October 31, 2023.
** Prosetta Biosciences, Inc., Series D is deemed to be an affiliate of the Funds because the Funds and Prosetta Biosciences, Inc., Series D are under common control.
*** The Alger Fund Complex and other entities managed by Alger Management fully own Crosslink Ventures C, LLC, Class A and Crosslink Ventures C, LLC, Class B. There were no capital increases or decreases for the year ended October 31, 2023.
NOTE 12 — Subsequent Events:
Management of each Fund has evaluated events that have occurred subsequent to October 31, 2023, through the issuance date of the Financial Statements. No such events have been identified which require recognition and/or disclosure.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of The Alger Institutional Funds:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of The Alger Institutional Funds comprised of Alger Capital Appreciation Institutional Fund, Alger Focus Equity Fund, Alger Mid Cap Growth Institutional Fund, and Alger Small Cap Growth Institutional Fund (collectively, the “Funds”), including the schedules of investments, as of October 31, 2023, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the funds constituting The Alger Institutional Funds as of October 31, 2023, and 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 five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2023, 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.
Deloitte & Touche LLP
New York, New York
December 22, 2023
We have served as the auditor of one or more investment companies within the Alger group of investment companies since 2009.
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 a 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, 2023 and ending October 31, 2023 and held for the entire period.
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 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 Six Months Ended October 31, 2023” 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 actual expense ratio for each class of the Fund’s 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.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| Beginning Account Value May 1, 2023 |
Ending Account Value October 31, 2023 |
Expenses Paid During the Six Months Ended October 31, 2023(a) |
Annualized Expense Ratio For the Six Months Ended October 31, 2023(b) |
||||||
| Alger Capital Appreciation Institutional Fund | |||||||||
| Class I | Actual | $ | 1,000.00 | $ | 1,068.00 | $ | 6.52 | 1.25% | |
| Hypothetical(c) | 1,000.00 | 1,018.90 | 6.36 | 1.25 | |||||
| Class R | Actual | 1,000.00 | 1,065.70 | 8.75 | 1.68 | ||||
| Hypothetical(c) | 1,000.00 | 1,016.74 | 8.54 | 1.68 | |||||
| Class Y | Actual | 1,000.00 | 1,070.60 | 4.23 | 0.81 | ||||
| Hypothetical(c) | 1,000.00 | 1,021.12 | 4.13 | 0.81 | |||||
| Class Z-2 | Actual | 1,000.00 | 1,070.20 | 4.54 | 0.87 | ||||
| Hypothetical(c) | 1,000.00 | 1,020.82 | 4.43 | 0.87 | |||||
| Alger Focus Equity Fund | |||||||||
| Class A | Actual | $ | 1,000.00 | $ | 1,005.40 | $ | 4.80 | 0.95% | |
| Hypothetical(c) | 1,000.00 | 1,020.42 | 4.84 | 0.95 | |||||
| Class C | Actual | 1,000.00 | 1,046.80 | 8.87 | 1.72 | ||||
| Hypothetical(c) | 1,000.00 | 1,016.53 | 8.74 | 1.72 | |||||
| Class I | Actual | 1,000.00 | 1,061.00 | 4.83 | 0.93 | ||||
| Hypothetical(c) | 1,000.00 | 1,020.52 | 4.74 | 0.93 | |||||
| Class Y | Actual | 1,000.00 | 1,062.90 | 3.07 | 0.59 | ||||
| Hypothetical(c) | 1,000.00 | 1,022.23 | 3.01 | 0.59 | |||||
| Class Z | Actual | 1,000.00 | 1,062.70 | 3.28 | 0.63 | ||||
| Hypothetical(c) | 1,000.00 | 1,022.03 | 3.21 | 0.63 | |||||
| Alger Mid Cap Growth Institutional Fund | |||||||||
| Class I | Actual | $ | 1,000.00 | $ | 948.40 | $ | 7.12 | 1.45% | |
| Hypothetical(c) | 1,000.00 | 1,017.90 | 7.37 | 1.45 | |||||
| Class R | Actual | 1,000.00 | 945.80 | 9.37 | 1.91 | ||||
| Hypothetical(c) | 1,000.00 | 1,015.58 | 9.70 | 1.91 | |||||
| Class Z-2 | Actual | 1,000.00 | 950.40 | 4.97 | 1.01 | ||||
| Hypothetical(c) | 1,000.00 | 1,020.11 | 5.14 | 1.01 | |||||
| Alger Small Cap Growth Institutional Fund | |||||||||
| Class I | Actual | $ | 1,000.00 | $ | 910.70 | $ | 6.65 | 1.38% | |
| Hypothetical(c) | 1,000.00 | 1,018.25 | 7.02 | 1.38 | |||||
| Class R | Actual | 1,000.00 | 908.60 | 8.85 | 1.84 | ||||
| Hypothetical(c) | 1,000.00 | 1,015.93 | 9.35 | 1.84 | |||||
| Class Z-2 | Actual | 1,000.00 | 912.30 | 4.82 | 1.00 | ||||
| Hypothetical(c) | 1,000.00 | 1,020.16 | 5.09 | 1.00 | |||||
|
(a) |
Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| (b) | Annualized. |
| (c) | 5% annual return before expenses. |
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Tax Information
Alger Capital Appreciation Institutional Fund designates $77,367,559, as an approximate amount of capital gain dividend for the purpose of the dividends paid deduction.
In accordance with subchapter M of the Internal Revenue Code of 1986, as amended, for the year ended October 31, 2023, 100.00% of Alger Focus Equity Fund’s dividends, qualified for the dividends deduction for corporations. For the year ended October 31, 2023, certain dividends paid by the Funds may be subject to a maximum rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, 100.00% of Alger Focus Equity Fund’s dividends may be considered qualified dividend income.
Shareholders should not use the above information to prepare their tax returns. Since the Funds’ fiscal year is not the calendar year, another notification will be sent with respect to calendar year 2023. Such notification, which will reflect the amount to be used by tax payers on their federal income tax returns, will be made in conjunction with Form 1099 DIV and will be mailed in January 2024. Shareholders are advised to consult their own tax advisers with respect to the consequences of their investment in a Fund.
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. 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.
Additional information regarding the Trustees and Officers of the Trust is available in the Trust’s Statement of Additional Information.
| Name (Year of Birth) and Address(1) |
Position(s) Held with the Trust and Length of Time Served |
Principal Occupation(s) During Past Five Years |
Number of Funds in the Alger Fund Complex(3) which are Overseen by Trustee |
Other Directorships Held by Trustee During Past Five Years |
| Interested Trustee(2): | ||||
| Hilary M. Alger (1961) |
Trustee since 2003 |
Non-Profit Fundraising Consultant since 2015, Schultz & Williams, Non-profit Fundraising Consultant since 2014, Hilary Alger Consulting, Emeritus Trustee since 2020 and Trustee from 2013 to 2020, Philadelphia Ballet; School Committee Member since 2017, Germantown Friends School. | 28 | Board of Directors, Alger Associates, Inc.; Director of Target Margin Theater |
| Non-Interested Trustees: | ||||
|
Charles F. Baird, Jr. (1953)
|
Trustee since 2000 |
Managing Partner since 1997, North Castle Partners (private equity securities group). | 28 | None |
| Roger P. Cheever (1945) |
Trustee since 2000 |
Retired; Associate Vice President for Development Strategy from 2020 to 2021 and Associate Vice President Principal Gifts from 2008 to 2020, Harvard University. | 28 | Board of Directors, Alger SICAV Fund |
| David Rosenberg (1962) |
Trustee since 2007 |
Associate Professor of Law since August 2000, Zicklin School of Business, Baruch College, City University of New York. | 28 | None |
| Nathan E. Saint-Amand M.D. (1938) |
Trustee since 1993 |
Medical doctor in private practice since 1970; Member of the Board of the Manhattan Institute (non-profit policy research) since 1988. | 28 | None |
(1) The address of each Trustee is c/o Fred Alger Management, LLC, 100 Pearl Street, 27th Floor, New York, NY 10004.
(2) Ms. Alger is an “interested person” (as defined in the Investment Company Act of 1940, as amended) of the Trust by virtue of her ownership control of Alger Associates, Inc., which indirectly controls Alger Management and its affiliates.
(3)“Alger Fund Complex” refers to the Trust and the five other registered investment companies managed by Alger Management and the series therof. Each Trustee serves until an event of termination, such as death or resignation, or until his or her successor is duly elected. Each of the Trustees serves on the board of trustees of the other five registered investment companies in the Alger Fund Complex.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| Name (Year of Birth), Position with Trust and Address(1) |
Principal Occupations | Officer Since |
| Officers(2): | ||
|
Hal Liebes (1964) President, Principal Executive Officer |
Executive Vice President, Chief Operating Officer (“COO”) and Secretary, Alger Management; COO and Secretary, Alger Associates, Inc.; Director, Alger SICAV; Vice President, COO, Manager and Secretary, Alger Capital, LLC and Alger Group Holdings, LLC; Executive Director and Chairman, Alger Management, Ltd.; COO and Secretary, Weatherbie Capital, LLC Secretary and Manager Alger Apple Real Estate LLC; Manager, Alger Partners Investors I LLC, Alger Partners Investors II LLC, Alger Partners Investors-Crossbay LLC, and Alger Partners Investors KEIGF; Secretary, Alger Boulder LLC. | 2005 |
|
Tina Payne (1974) Secretary, Chief Compliance Officer, Chief Legal Officer |
Senior Vice President, General Counsel, Chief Compliance Officer (“CCO”) and Assistant Secretary, Alger Management; Senior Vice President, General Counsel, and Secretary, Alger LLC; CCO and Authorized Signer, Alger Management, Ltd.; Vice President and Assistant Secretary, Alger Group Holdings, LLC; Assistant Secretary, Weatherbie Capital, LLC. | 2017 |
|
Michael D. Martins (1965) Treasurer, Principal Financial Officer |
Senior Vice President of Alger Management. | 2005 |
|
Sergio M. Pavone (1961) Assistant Treasurer |
Vice President of Alger Management. | 2007 |
|
Mia G. Pillinger (1989) Assistant Secretary |
Vice President and Associate Counsel of Alger Management. Formerly, Associate at Willkie Farr & Gallagher, LLP, from 2016 to 2020. | 2020 |
|
Sushmita Sahu (1981) AML Compliance Officer |
Vice President of Alger Management. | 2021 |
(1) The address of each officer is c/o Fred Alger Management, LLC, 100 Pearl Street, 27th Floor, New York, NY 10004.
(2) Each officer’s term of office is one year. Each officer serves in the same capacity for the other funds in the Alger Fund Complex.
The Statement of Additional Information contains additional information about the Trust’s Trustees and officers and is available without charge upon request by calling (800) 992-3863.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Board Approval of Investment Advisory Agreement
At a meeting held on September 19, 2023 (the “Meeting”), the Board of Trustees (the “Board”) of The Alger Institutional Funds (the “Trust”), including a majority of the trustees who are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the Trust (the “Independent Trustees”), reviewed and approved the continuation of the investment advisory agreement between Fred Alger Management, LLC (“Fred Alger Management” or the “Manager”) and the Trust, on behalf of each Fund (the “Management Agreement”), for an additional one-year period.
In considering the continuation of the Management Agreement, the Board reviewed and considered information provided by the Manager and its representatives at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information the Manager provided in response to a request for information Independent Trustee counsel submitted to the Manager on behalf of the Independent Trustees in connection with the Board’s annual contract consideration, as well as information provided in response to a supplemental request from Independent Trustee counsel on behalf of the Independent Trustees. The materials for the Meeting included a presentation and analysis of the Funds and the Manager by FUSE Research Network LLC (“FUSE”), an independent consulting firm. The Board also received a presentation from FUSE representatives at the Meeting and, among other things, received a description of the methodology FUSE used to select the mutual funds included in each Fund’s Peer Universe and Peer Group (as described below). The Board considered the information provided to it about the Funds together, and with respect to each Fund separately, as the Board deemed appropriate.
The Independent Trustees also received advice from, and met separately with, their Independent Trustee counsel in considering whether to approve the continuation of the Management Agreement. The Independent Trustees also received a memorandum from Independent Trustee counsel discussing the legal standards and their duties in considering the continuation of the Management Agreement, and counsel reviewed those standards with the Independent Trustees during their separate meeting. The Independent Trustees also met separately with senior management of the Manager, during which time the Independent Trustees discussed various matters related to proposed continuation of the Management Agreement.
The Board reviewed the materials provided and considered all of the factors it deemed relevant in approving the continuance of the Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the short- and long-term investment performance of each Fund; (iii) the costs of the services the Manager provided and profits it realized; (iv) the extent to which economies of scale are realized as a Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund shareholders. The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
In the discussions that follow, reference is made to the “median” in the Peer Group and Peer Universe categories. With respect to performance, below median performance represents performance that is worse relative to the median, and above median performance represents performance that is better relative to the median of the funds in the relevant Performance Universe. With respect to expenses, below median fees or expenses represent fees or expenses that are lower relative to the median, and above median fees or expenses represent fees or expenses that are higher relative to the median of the funds in the relevant Expense Group (as described below). FUSE information is calculated on a share class basis. References appearing below with regard to a Fund’s performance results and comparative fees and expenses generally relate to Class I shares of the Fund (each Fund’s oldest share class).
In particular, in approving the continuance of the Management Agreement, the Board considered the following factors:
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager to the Funds. This information included, among other things, the qualifications, background and experience of the professional personnel who perform services for the Funds; the structure of investment professional compensation; oversight of third-party service providers; short- and long-term investment performance, fee and expense information; fees and payments to intermediaries for fund administration, transfer agency and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager; and the range of advisory fees the Manager charged to other funds and accounts under its management, including the Manager’s explanation of differences among such funds and accounts and the Funds, where relevant. The Board noted that it received information at regular meetings throughout the year regarding the services rendered by the Manager concerning the management of each Fund’s affairs, including certain portfolio manager presentations, and the Manager’s role in coordinating and overseeing providers of other services to the Funds. The Board also noted the work undertaken by the Manager with respect to implementing new regulatory requirements applicable to the Funds.
The Board noted Fred Alger Management’s history and expertise in the “growth” style of investment management, as well as Fred Alger Management’s consistency in applying its “growth” style investment philosophy and process. The Board noted the length of time the Manager had provided services as an investment adviser to each Fund and also noted FUSE’s analysis that certain Funds’ long-term performance record supports Fred Alger Management’s view on its overall investment capabilities.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a Fund that is part of the Alger Family of Funds. The Board noted the continuing strong financial position of the Manager and its commitment to the fund business.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Following consideration of such information, the Trustees determined that they remain satisfied with the nature, extent and quality of services provided by the Manager to the Funds under the Management Agreement.
Fund Performance
The Board reviewed and considered the performance results of each Fund over various time periods. The Board considered the performance returns for each Fund in comparison to the performance returns of a universe of mutual funds deemed comparable to the Fund based on various investment, operational, and pricing characteristics (“Peer Universe”), and a group of mutual funds from within such Peer Universe deemed comparable to the Fund based primarily on investment strategy similarity (“Peer Group”), each as selected by FUSE, as well as to the Fund’s benchmark index. The Board noted that long-term performance could be impacted by one period of significant outperformance or underperformance.
The Board also reviewed and considered Fund performance reports provided by management and discussions that occurred with investment personnel and senior management at Board meetings throughout the year. The Board further noted that representatives of the Manager review with the Trustees the recent and longer-term performance of each Fund, including contributors to and detractors from Fund performance at every quarterly meeting of the Board throughout the year. In considering the Funds’ performance generally, the Board observed the Manager’s consistency in implementing its growth style investment process and philosophy for the Funds and considered how a strategy’s “growthiness” as compared to peers can impact relative performance results, even among comparisons that either FUSE or the Manager already have identified as having growth characteristics. In this regard, the Board considered FUSE’s commentary regarding the Funds’ growth investment style as compared to a universe of peers comprised of actively managed funds within each Fund’s Morningstar category, and as compared to each Fund’s benchmark index, as measured by Morningstar’s Raw Value-Growth score.
The Trustees concluded that each Fund’s performance was acceptable, including particularly in the context of management’s plans to address underperformance where applicable. Further discussion of the Board’s considerations with respect to each Fund’s performance is set forth below.
Alger Capital Appreciation Institutional Fund. The Board noted that the Fund’s annualized total return for the one- and 10-year periods outperformed the median of its Peer Group, and for the three- and five-year periods underperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one- and 10-year periods was in the second quartile of its Peer Universe, for the three-year period was in the fourth quartile of its Peer Universe, and for the five-year period was in the third quartile of its Peer Universe. In this regard, the Board considered FUSE’s commentary that the Fund has produced improved performance versus its Peer Group and Peer Universe over the near term. The Board also considered FUSE’s commentary that, overall, strategies with a growth bias have underperformed during the last three years.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Alger Focus Equity Fund. The Board noted that the Fund’s annualized total return for the one-, three- and five-year periods underperformed the median of its Peer Group, and for the 10-year period outperformed the median of its Peer Group. The Board also noted that Fund’s annualized total return for the one- and five-year periods was in the second quartile of its Peer Universe, for the three-year period was in the third quartile of its Peer Universe, and for the 10-year periods was in the first quartile of its Peer Universe.
Alger Mid Cap Growth Institutional Fund. The Board noted that the Fund’s annualized total return for the one-, three-, and five-year periods underperformed the median of its Peer Group, and for the 10-year period outperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one-year period was in the second quartile of its Peer Universe, and for the three-, five- and 10-year periods was in the third quartile of its Peer Universe. The Board considered FUSE’s commentary that the Fund is among the “growthiest” funds in its Peer Universe and the correlation to excess performance for mid cap growth funds with a lower growth style factor.
Alger Small Cap Growth Institutional Fund. The Board noted that the Fund’s annualized total return for the one-, three-, five- and 10-year periods underperformed the median of its Peer Group and was in the fourth quartile of its Peer Universe. The Board considered FUSE’s commentary that sector bets and a growth bias contributed to the Fund’s underperformance. The Board further considered their discussions with senior management on potential steps under consideration to address the Fund’s performance.
Comparative Fees and Expenses
For each Fund, the Board reviewed and considered the contractual management fee (the “Contractual Management Fee”) payable by the Fund to Fred Alger Management in light of the nature, extent and quality of the services provided by the Manager pursuant to the Management Agreement. The Board also reviewed and considered any fee waiver and/or expense reimbursement arrangements for each Fund, including specific share classes thereof as well as any changes to specific class expense reimbursement arrangements that the Board had made during the prior year, and considered the actual fee rate (after taking any waivers and reimbursements into account) payable by the Fund (the “Actual Management Fee”). Additionally, the Board received and considered information comparing each Fund’s Contractual Management Fee, Actual Management Fee and overall expenses, including administrative fees payable to Fred Alger Management, with those of the funds in the Peer Group provided by FUSE. The Board reviewed the methodology used by FUSE in calculating expense information, including that for purposes of the comparisons below, the Contractual Management Fee used by FUSE for the Fund and peers includes the advisor fee and administrative fee, if a fund reports both.
The Board discussed the factors that could contribute to each Fund’s Contractual Management Fee, Actual Management Fee or total expenses being above or below the median of the Fund’s Peer Group. The Board concluded that the Contractual Management Fee charged to each Fund is reasonable in relation to the services rendered by Fred Alger Management and is the product of arm’s length negotiations. Further discussion of the Board’s considerations with respect to each Fund’s comparative fees and expenses is set forth below.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Alger Capital Appreciation Institutional Fund. The Board noted that the Contractual Management Fee and total expenses for the Fund were above the median and in the third quartile of its Peer Group.
Alger Focus Equity Fund. The Board noted that the Contractual Management Fee and total expenses for the Fund were below the median and in the first (least expensive) quartile of its Peer Group.
Alger Mid Cap Growth Institutional Fund. The Board noted that the Contractual Management Fee for the Fund was below the median and in the second quartile of its Peer Group, and that the total expenses for the Fund were above the median and in the fourth (most expensive) quartile of its Peer Group.
Alger Small Cap Growth Institutional Fund. The Board noted that the Contractual Management Fee for the Fund was below the median and in the second quartile of its Peer Group, and that the total expenses for the Fund were above the median and in the third quartile of its Peer Group.
In connection with its consideration of each Fund’s fees payable under the Management Agreement, the Board also received information on the range of fees charged by the Manager for funds and accounts of a similar investment strategy to each Fund that are under its management. The Board noted management’s explanation that comparisons with such accounts may be of limited relevance given the different structures and regulatory requirements of mutual funds, such as the Funds, versus those accounts and the differences in the levels of services required by the Funds as compared to those accounts.
Profitability
The Board reviewed and considered information regarding the profits realized by Fred Alger Management in connection with the operation of each Fund. In this respect, the Board considered overall profitability, including in comparison to certain investment advisory peers, as well as the profits of Fred Alger Management in providing investment management and other services to each Fund during the year ended June 30, 2023. The Board also reviewed the profitability methodology and any changes thereto, noting that management maintains a consistent methodology year to year. The Board considered FUSE’s view that Fred Alger Management’s expense allocation policies align with accepted industry practices.
The Board noted that costs incurred in establishing and maintaining the infrastructure necessary for the mutual fund operations conducted by Fred Alger Management may not be fully reflected in the expenses allocated to each Fund in determining Fred Alger Management’s profitability.
The Board also considered the extent to which the Manager might derive ancillary benefits from Fund operations, including, for example, through soft dollar arrangements. Based upon its consideration of all these factors, the Trustees concluded that the level of profits realized by Fred Alger Management and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Economies of Scale
For each Fund, the Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of Fund shareholders. The Board noted the existence of management fee breakpoints for Alger Capital Appreciation Institutional Fund, Alger Mid Cap Growth Institutional Fund, and Alger Small Cap Growth Institutional Fund, which operate to share economies of scale with a Fund’s shareholders by reducing the Fund’s effective management fees as the Fund grows in size. The Board considered the Manager’s view that the overall size of Fred Alger Management allows it to realize other economies of scale, such as with office space, purchases of technology, and other general business expenses, including with respect to Funds that did not have management fee breakpoints.
The Trustees concluded that for each Fund, to the extent economies of scale may be realized by Fred Alger Management, the benefits of such economies of scale would be shared with the Fund and its shareholders as the Fund grows, including through the management fee breakpoints in place for applicable Funds.
Conclusion
The Board’s consideration of the Contractual Management Fee for each Fund also had the benefit of a number of years of reviews of the Management Agreement, during which lengthy discussions took place between the Board and representatives of the Manager. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board’s conclusions may be based, in part, on its consideration of the Fund’s arrangements in prior years.
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board, including the Independent Trustees voting separately, unanimously approved the continuation of the Management Agreement for an additional one-year period.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Privacy Policy
| U.S. Consumer Privacy Notice | Rev. 6/22/21 |
| 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 information | Does Alger share? |
Can you limit this sharing? |
| For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
| For our marketing purposes — to offer our products and services to you | Yes | No |
| For joint marketing with other financial companies | No | We don’t share |
| For our affiliates’ everyday business | Yes | No |
| purposes — information about your transactions and experiences | ||
| For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
| For nonaffiliates to market to you | No | We don’t share |
| Questions? Call 1-800-223-3810 |
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| Who we are | |
| Who is providing this notice? | Alger includes Fred Alger Management, LLC and Fred Alger & Company, LLC as well as the following funds: The Alger Funds, The Alger Funds II, The Alger Institutional Funds, The Alger Portfolios, Alger Global Focus Fund, and The Alger ETF Trust. |
| What we do | |
| How does Alger protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| How does Alger collect my personal information? |
We collect your personal information, for example, when you: • 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 some but not all sharing related to: • 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, LLC, Weatherbie Capital, LLC and Fred Alger & Company, LLC as well as the following funds: The Alger Funds, The Alger Funds II, The Alger Institutional Funds, The Alger Portfolios, Alger Global Focus Fund, and The Alger ETF Trust. |
| 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. |
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Proxy Voting Policies
A description of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities and the proxy voting record is available, without charge, by calling (800) 992-3863 or online on the Funds’ website at http://www.alger.com or on the SEC’s website at http://www.sec.gov.
Fund Holdings
The Board 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 Investment 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 file their complete schedules of portfolio holdings with the SEC semi-annually in shareholder reports on Form N-CSR and after the first and third fiscal quarters as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-CSR and N-PORT are available online on the SEC’s website at www.sec.gov.
In addition, the Funds make publicly available their month-end top 10 holdings with a 10 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 directly received for the non-public disclosure of portfolio holdings information.
In accordance with the foregoing, the Funds provide portfolio holdings information to third parties including financial intermediaries and service providers who 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 third parties to confirm that they understand the Funds’ policies and procedures regarding such disclosure. These agreements must be approved by the Trust’s Chief Compliance Officer.
The Board 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.
THE ALGER INSTITUTIONAL FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
In addition to material the Funds routinely provide to shareholders, the Investment Manager may make additional statistical information available regarding the Alger Family of Funds.
Such information may include, but not be limited to, relative weightings and characteristics of a Fund versus an index (such as P/E ratio, alpha, beta, capture ratio, maximum drawdown, 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, portfolio turnover, and other similar information. Shareholders should visit www.alger.com or may also contact the Funds at (800) 992-3863 to obtain such information.
THE ALGER INSTITUTIONAL FUNDS
100 Pearl Street, 27th Floor
New York, NY 10004
(800) 992-3863
www.alger.com
Investment Manager
Fred Alger Management, LLC
100 Pearl Street, 27th Floor
New York, NY 10004
Distributor
Fred Alger & Company, LLC
100 Pearl Street, 27th Floor
New York, NY 10004
Transfer Agent and Dividend Disbursing Agent
UMB Fund Services, Inc.
235 W. Galena Street
Milwaukee, WI 53212
Custodian
Brown Brothers Harriman & Company
50 Post Office Square
Boston, MA 02110
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, NY 10112
This report is submitted for the general information of the shareholders of the series of The Alger Institutional Funds. It is not authorized for distribution to prospective investors unless accompanied by an effective Prospectus for the Fund, which contains information concerning the Fund’s investment policies, fees and expenses as well as other pertinent information.
(This page has been intentionally left blank)
|
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.
|
|
ITEM 4.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
|
| October 31, 2023 | $ | 103,800 | ||
| October 31, 2022 | $ | 149,000 |
| October 31, 2023 | $ | 17,653 | ||
| October 31, 2022 | $ | 21,500 |
| October 31, 2023 | $ | 20,651 | ||
| October 31, 2022 | $ | 16,862 |
| October 31, 2023 | $ | 260,680, | € | 105,649 | ||||
|
October 31, 2022
|
$ | 300,142, | € | 99,042 |
|
ITEM 5.
|
AUDIT COMMITTEE OF LISTED REGISTRANTS.
|
|
ITEM 6.
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INVESTMENTS.
|
|
ITEM 7.
|
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
|
ITEM 8.
|
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
|
ITEM 9.
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PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
|
|
ITEM 10.
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SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
|
|
ITEM 11.
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CONTROLS AND PROCEDURES.
|
|
ITEM 12.
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Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
|
|
ITEM 13.
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EXHIBITS.
|
|
By:
|
/s/ Hal Liebes | |
|
Name:
|
Hal Liebes
|
|
|
Title:
|
Principal Executive Officer
|
|
|
Date:
|
December 20, 2023
|
|
|
By:
|
/s/ Hal Liebes | |
|
Name:
|
Hal Liebes
|
|
|
Title:
|
Principal Executive Officer
|
|
|
Date:
|
December 20, 2023
|
|
|
By:
|
/s/ Michael D. Martins | |
|
Name:
|
Michael D. Martins
|
|
|
Title:
|
Principal Financial Officer
|
|
|
Date:
|
December 20, 2023
|
|
