FELLOW SHAREHOLDERS: June 20, 1995
ALGER SMALL CAPITALIZATION PORTFOLIO
For the six month period ended April 30, 1995, the Alger Small Capitalization
Portfolio's total return was 11.05%, significantly outperforming the Wilshire
Small Company Growth Index, which had a total return of 7.85%, for the same
period. The Portfolio's strong performance is particularly gratifying and is in
marked contrast to the under performance of small cap stocks relative to the
general market during this period. Since April 30, 1995, however, small cap
performance has gained momentum, with small cap indices such as the Russell 2000
repeatedly setting and then exceeding new record highs. This increase in small
cap stocks has been due to the recognition that, on a fundamental basis, small
cap stocks are undervalued and positioned for strong performance in 1995 due to
the slowing economic environment. Given the generally higher earnings growth
potential of small cap stocks, such stocks are increasingly valued by the market
as the economy slows and earnings growth becomes more scarce. Currently, the
Portfolio's weighted average one year earnings growth estimate is in excess of
45%, and, while the median price/earnings multiple of the Portfolio has expanded
somewhat in the past few months, it is still well below the level to which
growth stock multiples typically expand during periods of market favor.
ALGER GROWTH PORTFOLIO
The Alger Growth Portfolio had a total return of 10.06% for the six months ended
April 30, 1995 versus a total return of 10.47% for the S&P 500. During this time
period, large cap growth stocks, with the exception of certain technology
stocks, generally lagged the rise in blue chip and certain large multinational
stocks. Growth stock under performance during this period was primarily driven
by economic uncertainty resulting in defensive positioning of investors and the
perceived higher multinational content of certain blue chip and multinational
stock earnings which have benefited from weakness in the dollar. Since April 30,
1995, however, the performance of large cap growth stocks has improved giving
recognition to the undervaluation of growth stocks due to their significantly
higher earnings growth potential than that offered by other stock sectors in a
slowing economic environment.
ALGER MIDCAP GROWTH PORTFOLIO
The total return of the Alger MidCap Growth Portfolio was 13.08% for the six
months ended April 30, 1995, significantly above the S&P MidCap 400 Index total
return of 6.35% for the same period. This strong performance is gratifying and
notable, given the difficult market for growth stocks, with the exception of
certain technology stocks, during most of the period. As is the case for both
small and large cap growth stocks, the performance of mid cap growth stocks in
general has accelerated since April 30, 1995.
<PAGE>
ALGER BALANCED PORTFOLIO
The Alger Balanced Portfolio's total return for the six month period ended April
30, 1995 was 7.32% compared to 10.47% for the S&P 500 and 6.95% for the Lehman
Brothers Government/Corporate Bond Index. Presently, we are maintaining a ratio
of 60% common stocks and 40% bonds. The Portfolio did not outperform the S&P
500, primarily due to the more conservative nature of the Portfolio and to the
general under performance of larger cap growth stocks relative to other stock
sectors during this period.
ALGER CAPITAL APPRECIATION PORTFOLIO
For the six months ended April 30, 1995, the Alger Capital Appreciation
Portfolio's total return was 17.37% compared to a total return of 10.47% for the
S&P 500. Despite the poorer performance of growth stocks relative to other stock
sectors during this time period, the Portfolio significantly outperformed the
S&P 500, due largely to the more aggressive nature of the Portfolio's
investments.
Respectfully submitted,
/s/ David D. Alger
David D. Alger
President
<PAGE>
TABLE OF CONTENTS
Alger Growth Portfolio:
Schedule of Investments...................................4-5
Financial Highlights......................................6
Alger Small Capitalization Portfolio:
Schedule of Investments...................................7-8
Financial Highlights......................................9
Alger Balanced Portfolio:
Schedule of Investments...................................10-11
Financial Highlights......................................12
Alger MidCap Growth Portfolio
Schedule of Investments...................................13-14
Financial Highlights......................................15
Alger Capital Appreciation Portfolio
Schedule of Investments...................................16-17
Financial Highlights......................................18
Alger Money Market Portfolio:
Schedule of Investments...................................19-20
Financial Highlights......................................21
Statements of Assets and Liabilities......................................22
Statements of Operations..................................................23
Statement of Cash Flows (Alger Capital Appreciation Portfolio)............24
Statements of Changes in Net Assets.......................................25
Notes to Financial Statements.............................................26-29
<PAGE>
-4-
THE ALGER FUND
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1995
COMMON STOCKS--93.4% SHARES VALUE
------ -----
AUTOMOTIVE--.5%
Chrysler Corporation............. 10,000 $ 431,250
----------
COMMUNICATIONS--12.7%
ADC Telecommunications Inc.*..... 31,600 1,042,800
AirTouch Communications Inc.* ... 39,000 1,048,125
Andrew Corp.*.................... 16,500 816,750
Century Telephone
Enterprises, Inc............... 49,500 1,472,625
DSC Communications
Corporation*................... 47,900 1,772,300
Motorola Inc..................... 22,000 1,251,250
Telephone and Data Systems, Inc.. 20,100 748,725
Tellabs, Inc.*................... 38,000 2,622,000
Vodafone Group ADR............... 34,000 1,083,750
----------
11,858,325
----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--11.7%
Bay Networks Inc.*............... 51,000 1,855,125
Chipcom Corporation*............. 20,000 655,000
Cisco Systems Inc.*.............. 37,800 1,507,274
Dell Computer Corp.*............. 17,000 930,750
Hewlett-Packard Co............... 29,000 1,917,625
International Business
Machines Corp.................. 21,600 2,046,600
Seagate Technology Corp.*........ 27,000 860,625
3 Com Corp.*..................... 20,000 1,120,000
----------
10,892,999
----------
COMPUTER SOFTWARE--1.1%
Informix Corp.*.................. 25,000 984,375
----------
COMPUTER
TECHNOLOGY--1.5%
Silicon Graphics Inc.*........... 38,000 1,425,000
----------
CONSUMER PRODUCTS--3.3%
The Coca Cola Company............ 15,000 871,875
Gillette Co...................... 10,000 820,000
Nabisco Holdings Corp. Cl. A*.... 50,000 1,393,750
----------
3,085,625
----------
DEFENSE--5.8%
Lockheed Martin Corp............. 38,789 2,240,065
Loral Corp....................... 54,500 2,561,500
McDonnell Douglas Corp........... 10,300 638,600
----------
5,440,165
----------
FINANCIAL SERVICES--7.7%
First Financial Management Corp.. 17,500 1,279,688
Lehman Brothers Holdings, Inc.... 46,100 898,950
Merrill Lynch & Co., Inc......... 65,000 2,957,500
Morgan Stanley Group Inc......... 7,200 500,400
Charles Schwab Corp.............. 45,300 1,551,524
----------
7,188,062
----------
HEALTH CARE--14.3%
Amgen Inc.*...................... 30,000 2,180,640
Cardinal Health Inc.............. 20,400 940,950
Columbia/HCA Healthcare Corp..... 17,000 714,000
Forest Laboratories Inc.*........ 15,000 675,000
Johnson & Johnson................ 25,000 1,625,000
Lilly (Eli) Co................... 12,000 897,000
Medtronic Inc.................... 19,000 1,413,125
Merck & Co., Inc................. 51,000 2,186,625
Pfizer Inc....................... 25,100 2,174,288
United Healthcare Corp........... 14,000 507,500
----------
13,314,128
----------
LEISURE &
ENTERTAINMENT--4.8%
Carnival Corporation Class A..... 40,000 995,000
Circus Circus Enterprises Inc.*.. 29,500 977,188
Disney (Walt) Co................. 25,000 1,384,375
Mirage Resorts Inc.*............. 38,000 1,140,000
----------
4,496,563
----------
MACHINERY--1.6%
Caterpillar Inc.................. 25,000 1,462,500
----------
MANUFACTURING--1.2%
Thermo Electron Corp.*........... 21,000 1,131,375
----------
OIL & GAS--3.4%
Royal Dutch Petroleum Corp....... 18,100 2,244,400
Texaco Inc....................... 13,000 888,875
----------
3,133,275
----------
PAPER PACKAGING &
FOREST PRODUCTS--1.0%
Alco Standard Corp............... 13,000 921,375
----------
RESTAURANTS &
LODGING--3.1%
Cracker Barrel Old
Country Stores, Inc........... 95,000 2,018,750
Lone Star Steakhouse and
Saloon, Inc.*.................. 30,000 918,750
----------
2,937,500
----------
<PAGE>
-5-
THE ALGER FUND
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)(Continued)
April 30, 1995
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
RETAILING--8.6%
Circuit City Stores Inc.......... 58,300 $ 1,508,512
Home Depot Inc................... 33,500 1,398,625
OfficeMax Inc.*.................. 88,400 2,265,250
Tandy Corporation................ 38,700 1,915,650
Viking Office Products Inc.*..... 34,000 935,000
----------
8,023,037
----------
SEMI-CONDUCTORS--8.1%
Adaptec Inc.*.................... 33,000 1,056,000
Altera Corp.*.................... 8,200 663,175
Intel Corp....................... 33,900 3,470,512
LSI Logic Corp.*................. 36,000 2,398,500
----------
7,588,187
----------
SEMI-CONDUCTORS
CAPITAL EQUIPMENT--2.5%
Applied Materials Inc.* ......... 38,000 2,341,750
----------
MISCELLANEOUS--.5%
Loewen Group Inc................ 17,100 482,270
----------
Total Common Stocks
(Cost $72,541,327)............. 87,137,761
----------
PREFERRED STOCK--1.5%
COMMUNICATIONS
Nokia Corporation, ADR
(Cost $1,111,885).............. 34,000 1,394,000
----------
WARRANTS
MANUFACTURING
Windmere Corp.,
expires 1/19/98 (Cost $61)..... 81 20
----------
SHORT-TERM CORPORATE PRINCIPAL
NOTES--3.3% AMOUNT VALUE
--------- -----
Pacific Energy Fuels Co.,
5.98%, 5/02/95..............$1,100,000 $ 1,099,817
Progress Funding Corp., Series B
5.98%, 5/04/95(a)........... 1,450,000 1,449,277
Receivables Purchase Corp.,
6.00%, 5/10/95(a)........... 570,000 569,145
----------
Total Short-Term Corporate Notes
(Cost $3,118,239).............. 3,118,239
Total Investments
(Cost $76,771,512)(b).......... 98.2% 91,650,020
Other Assets in
Excess of Liabilities.......... 1.8 1,653,146
----- -----------
Net Assets....................... 100.0% $93,303,166
===== ===========
*Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At April 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $76,771,512, amounted to $14,878,508
which consisted of aggregate gross unrealized appreciation of $16,033,671 and
aggregate gross unrealized depreciation of $1,155,163.
See Notes to Financial Statements.
<PAGE>
-6-
THE ALGER FUND
ALGER GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ----------------------------------------------------------
1995(i) 1994 1993 1992 1991 1990
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period....................... $ 20.92 $ 22.29 $ 17.28 $ 17.30 $ 12.74 $ 13.27
------- ------- ------- ------- ------- ---------
Net investment income (loss)....... (.05) (.21)(ii) (.06) (.18)(ii) (.05) (.07)
------- ------- ------- ------- ------- ---------
Net realized and unrealized
gain (loss) on investments...... 2.08 1.06 5.10 1.84 5.57 (.46)
------- ------- ------- ------- ------- ---------
Total from investment
operations...................... 2.03 .85 5.04 1.66 5.52 (.53)
Distributions from net realized
gains........................... (.47) (2.22) (.03) (1.68) (.96) ----
------- ------- ------- ------- ------- ---------
Net asset value, end of period..... $ 22.48 $ 20.92 $ 22.29 $ 17.28 $ 17.30 $ 12.74
======= ======== ======== ======= ======= =========
Total Return (iii)................. 10.1% 4.1% 29.2% 9.7% 45.8% (4.0%)
======= ======== ======== ======= ======= =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)............... $93,303 $ 76,390 $37,988 $19,379 $10,213 $ 5,667
======= ======== ======= ======= ======= ==========
Ratio of expenses to average
net assets.................... 2.10% 2.20% 2.20% 2.32% 2.70% 3.09%
======= ======== ======== ======= ======= =========
Ratio of net investment income
(loss) to average net assets... (.93%) (1.01%) (1.16%) (1.07%) (1.06%) (.68%)
======= ======== ======== ======= ======= =========
Portfolio Turnover Rate.......... 56.74% 103.86% 108.54% 69.28% 76.06% 86.06%
======= ======== ======== ======= ======= =========
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii)Does not reflect contingent deferred sales charge.
See Notes to Financial Statements.
<PAGE>
-7-
THE ALGER FUND
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1995
COMMON STOCKS--98.4% SHARES VALUE
------ -----
APPAREL--1.0%
Gymboree Corp.*............... 30,000 $ 705,000
Tommy Hilfiger Corporation*... 117,700 2,707,100
-----------
3,412,100
-----------
COMMUNICATIONS--14.9%
ADC Telecommunications Inc.*.. 155,800 5,141,400
Century Telephone Enterprises,
Inc......................... 81,000 2,409,750
DSC Communications
Corporation*................ 273,300 10,112,100
Glenayre Technologies Inc.*... 156,500 9,624,750
Mobile Telecommunications
Technologies Corp.*......... 82,300 1,944,337
Network Equipment
Technologies Inc.*.......... 180,400 3,946,250
Tekelec Inc.*................. 41,800 1,024,100
Tellabs, Inc.*................ 180,400 12,447,600
U.S. Robotics Inc.*........... 58,000 4,596,500
-----------
51,246,787
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--4.5%
Bay Networks Inc.*............ 155,400 5,652,674
Chipcom Corporation*.......... 65,550 2,146,763
Dell Computer Corp.*.......... 37,000 2,025,750
Pinnacle Systems Inc.*........ 130,000 2,372,500
3 Com Corp.*.................. 55,000 3,080,000
-----------
15,277,687
-----------
COMPUTER SOFTWARE--8.6%
Cheyenne Software Inc.*....... 44,100 639,450
Electronics For Imaging Inc.*. 140,000 6,370,000
Informix Corp.*............... 220,000 8,662,500
Medic Computer Systems Inc.*.. 77,200 3,396,800
Parametric Technology Corp.*.. 20,400 969,000
S3 Inc.*...................... 155,000 3,584,375
Softkey International Inc.*... 124,000 3,038,000
Wonderware Corp.*............. 89,000 2,948,125
-----------
29,608,250
-----------
COMPUTER
TECHNOLOGY--2.2%
ADFlex Solutions Inc.*........ 110,000 2,667,500
Merix Corporation*............ 43,500 989,625
Sanmina Corp.*................ 105,500 3,600,187
Transaction Systems Architects
Inc. Cl. A.*................ 20,000 412,500
-----------
7,669,812
-----------
FINANCIAL SERVICES--4.8%
Advanta Corp., Class B........ 96,100 3,099,225
Cole Taylor Financial Group... 17,000 303,875
Lehman Brothers Holdings, Inc. 90,200 1,758,900
Olympic Financial Ltd.*....... 85,000 1,030,624
Oxford Resources Corp. Cl. A*. 70,000 866,250
Charles Schwab Corp........... 273,800 9,377,650
-----------
16,436,524
-----------
FREIGHT--1.1%
Landstar Systems Inc.*........ 128,700 3,732,300
-----------
HEALTH CARE--8.8%
Abbey Healthcare Group Inc.*.. 117,000 4,650,750
Cardinal Health Inc........... 74,000 3,413,250
HBO & Co...................... 67,500 3,088,125
Health Management Associates
Inc. Cl. A*................. 89,300 2,589,700
Integrated Health Services Inc. 49,100 1,700,088
MediSense Inc.*............... 92,500 1,491,563
Omnicare Inc.................. 62,000 3,014,750
PhyCor Inc.*.................. 42,750 1,357,313
Scherer (R.P.) Corp.*......... 72,000 3,438,000
Surgical Care Affiliates Inc.. 139,200 3,236,400
Sybron International Corp.*... 64,900 2,409,413
-----------
30,389,352
-----------
LEISURE &
ENTERTAINMENT--2.7%
Arctco Inc.................... 150,500 2,144,625
Callaway Golf Corp............ 143,500 1,775,813
Graff Pay-Per View*........... 146,500 1,758,000
Movie Gallery Inc.*........... 20,000 625,000
Players International Inc.*... 100,000 2,962,500
-----------
9,265,938
-----------
MANUFACTURING--.4%
Wabash National Corp.......... 40,000 1,245,000
-----------
POLLUTION CONTROL--1.9%
United Waste Systems Inc.*.... 94,000 2,655,500
USA Waste Services Inc.*...... 225,100 3,826,500
-----------
6,482,000
-----------
<PAGE>
-8-
THE ALGER FUND
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1995
COMMON STOCKS--(cont.) SHARES VALUE
------ -----
RESTAURANTS &
LODGING--8.0%
Apple South Inc............... 63,500 $ 920,750
Applebees International Inc... 40,000 880,000
Cracker Barrel Old
Country Stores, Inc......... 179,500 3,814,375
Landrys Seafood Restaurants
Inc.* ...................... 191,700 6,637,612
Lone Star Steakhouse and
Saloon, Inc.*............... 303,400 9,291,625
O'Charley's Inc.*............. 140,500 1,756,250
Outback Steakhouse Inc.*...... 161,500 4,077,875
-----------
27,378,487
-----------
RETAILING--7.4%
Dollar General Corp........... 219,375 5,100,469
Fabri-Centers Of America Inc.* 138,500 2,562,250
Guest Supply Inc.*............ 91,000 1,911,000
OfficeMax Inc.*............... 175,000 4,484,375
Sports & Recreation Inc.*..... 271,500 3,190,125
Tiffany & Co.................. 88,000 2,827,000
Viking Office Products Inc.*.. 199,200 5,478,000
-----------
25,553,219
-----------
SEMI-CONDUCTORS--19.6%
Adaptec Inc.*................. 288,500 9,232,000
Alliance Semiconductor Corp.*. 171,250 6,978,437
Altera Corp.*................. 128,000 10,352,000
Information Storage Devices
Inc.* ...................... 57,500 1,380,000
Integrated Silicon Solution
Inc.* ...................... 25,000 962,500
Intel Corp.................... 84,000 8,599,500
Linear Technology Corporation. 157,500 9,410,625
Maxim Intergrated Products
Inc.*....................... 194,600 7,054,250
Micro Linear Corporation*..... 225,900 2,710,800
Microchip Technology Inc.*.... 249,000 7,034,250
Orbit Semiconductor, Inc.*.... 145,000 2,211,250
TriQuint Semiconductor Inc.*.. 95,000 1,353,750
-----------
67,279,362
-----------
SEMI-CONDUCTORS
CAPTIAL EQUIPMENT--11.2%
ASM Lithography Holdings*..... 20,000 547,500
Electroglas, Inc.*............ 22,500 978,750
FSI International Inc.*....... 36,000 1,674,000
Fusion Systems Corporation*... 66,000 2,062,500
GaSonics International Corp.*. 168,000 3,864,000
Integrated Device
Technology Inc.*............ 263,900 10,061,188
Lam Research Corp.*........... 144,500 7,297,250
PRI Automation Inc.*.......... 56,600 1,485,750
Semitool Inc.*................ 135,300 3,213,375
Silicon Valley Group Inc.*.... 104,000 3,016,000
Tencor Instruments*........... 64,300 4,356,325
-----------
38,556,638
-----------
MISCELLANEOUS--1.3%
Insurance Auto Auctions Inc.*. 59,100 1,758,225
Loewen Group Inc.............. 100,000 2,820,300
-----------
4,578,525
-----------
Total Common Stocks
(Cost $264,044,592)......... 338,111,981
-----------
SHORT-TERM PRINCIPAL
CORPORATE NOTES--2.3% AMOUNT
---------
Country Funding Corp,
5.97%, 5/09/95..............$4,800,000 4,793,653
Merrill Lynch & Co. Inc.,
5.95%, 5/05/95.............. 1,300,000 1,299,140
Triple A One Funding Corp.,
6.00%, 5/10/95(a)........... 2,000,000 1,997,000
Total Short-Term Corporate Notes
(Cost $8,089,793) .......... 8,089,793
-----------
Total Investments
(Cost $272,134,385)(b)...... 100.7% 346,201,774
Liabilities in Excess of
Other Assets................ (.7) (2,449,796)
----- ------------
Net Assets.................... 100.0% $343,751,978
===== ============
* Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At April 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $272,134,385, amounted to $74,067,389
which consisted of aggregate gross unrealized appreciation of $81,262,268 and
aggregate gross unrealized depreciation of $7,194,879.
See Notes to Financial Statements.
<PAGE>
-9-
THE ALGER FUND
ALGER SMALL CAPITALIZATION PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED --------------------------------------------------------------
APRIL 30, 1995(i) 1994 1993 1992 1991 1990
----------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period....................... $ 22.86 $ 25.95 $ 20.63 $ 20.91 $ 13.00 $ 17.73
-------- ------- -------- ------- ------- -------
Net investment income (loss)....... (.14) (.26) (.24) (.33)(ii) (.09) (.18)(ii)
Net realized and unrealized
gain( loss) on investments...... 2.66 (.07) 5.56 1.12 8.27 (.76)
-------- ------- -------- ------- ------- -------
Total from investment
operations...................... 2.52 (.33) 5.32 .79 8.18 (.94)
Distributions from net realized
gains........................... (.01) (2.76) ---- (1.07) (.27) (3.79)
-------- ------- -------- ------- ------- -------
Net asset value, end of period..... $ 25.37 $ 22.86 $ 25.95 $ 20.63 $ 20.91 $ 13.00
======== ======= ========= ======= ======= =======
Total Return (iii)................. 11.1% (1.1%) 25.8% 3.4% 63.7% (7.1%)
======== ======= ========= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)............... $343,752 $294,890 $300,108 $182,432 $ 61,273 $ 23,628
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets.................... 2.15% 2.18% 2.13% 2.17% 2.23% 2.66%
======== ======= ========= ======= ======= =======
Ratio of net investment income
(loss) to average net assets... (1.60%) (1.51%) (1.52%) (1.64%) (1.37%) (1.17%)
======== ======= ========= ======= ======= =======
Portfolio Turnover Rate.......... 57.59% 131.86% 148.49% 121.00% 171.04% 252.66%
======== ======= ========= ======= ======= =======
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii)Does not reflect contingent deferred sales charge.
See Notes to Financial Statements.
<PAGE>
-10-
THE ALGER FUND
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1995
COMMON STOCKS--55.1% Shares Value
------ -----
APPAREL 1.0%
Tommy Hilfiger Corporation*...... 1,300 $ 29,900
-----------
AUTOMOTIVE--.3%
Chrysler Corporation............. 200 8,625
-----------
COMMUNICATIONS--7.3%
AirTouch Communications Inc.*.... 700 18,813
Century Telephone Enterprises,
Inc. .......................... 1,000 29,750
Glenayre Technologies Inc.*...... 1,350 83,025
Motorola Inc..................... 400 22,750
Telephone and Data Systems, Inc.. 400 14,900
Tellabs, Inc.*................... 900 62,100
-----------
231,338
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--5.1%
Chipcom Corporation*............. 550 18,013
Cisco Systems Inc.*.............. 900 35,888
Dell Computer Corp.*............. 400 21,900
Hewlett-Packard Co............... 600 39,675
International Business Machines
Corp. ......................... 500 47,375
-----------
162,851
-----------
COMPUTER SOFTWARE--1.5%
Informix Corp.*.................. 1,200 47,250
-----------
CONSUMER PRODUCTS--1.1%
The Coca-Cola Company............ 300 17,438
Gillette Co...................... 200 16,400
-----------
33,838
-----------
DEFENSE--3.1%
Lockheed Martin Corp............. 652 37,653
Loral Corp....................... 1,000 47,000
McDonnell Douglas Corp........... 200 12,400
-----------
97,053
-----------
FINANCIAL SERVICES--4.4%
First Financial Management Corp.. 500 36,563
Lehman Brothers Holdings, Inc.... 1,200 23,400
Merrill Lynch & Co., Inc......... 1,200 54,600
Charles Schwab Corp.............. 750 25,688
-----------
140,251
-----------
FREIGHT--.9%
Landstar Systems Inc.*........... 1,000 29,000
-----------
HEALTH CARE 8.1%
Amgen Inc.*...................... 1,000 72,688
Cardinal Health Inc.............. 500 23,063
Lilly (Eli) Co................... 400 29,900
Merck & Co., Inc................. 900 38,588
Omnicare Inc..................... 200 9,725
Pfizer Inc....................... 400 34,650
Scherer (R.P.) Corp.*............ 500 23,875
Surgical Care Affiliates Inc..... 1,000 23,250
-----------
255,739
-----------
LEISURE &
ENTERTAINMENT--2.0%
Disney (Walt) Co................. 600 33,225
Mirage Resorts Inc.*............. 1,000 30,000
-----------
63,225
-----------
MANAFACTURING--1.5%
BMC Industries Inc.*............. 1,300 23,400
Wabash National Corp*............ 800 24,900
-----------
48,300
-----------
OIL & GAS--.6%
Texaco Inc....................... 300 20,513
-----------
RESTAURANTS & LODGING--3.7%
Cracker Barrel Old Country
Stores, Inc.................... 2,400 51,000
Lone Star Steakhouse and Saloon,
Inc.* ......................... 1,300 39,813
Outback Steakhouse Inc.*......... 1,000 25,250
-----------
116,063
-----------
RETAILING--5.1%
Circuit City Stores Inc.......... 1,000 25,875
Dollar General Corp.............. 1,250 29,062
Home Depot Inc................... 600 25,050
OfficeMax Inc.*.................. 1,000 25,625
Sports & Recreation Inc.*........ 2,100 24,675
Tandy Corporation................ 600 29,700
-----------
159,987
-----------
SEMI-CONDUCTORS--6.2%
Altera Corp.*.................... 700 56,612
Intel Corp....................... 700 71,663
LSI Logic Corp.*................. 500 33,312
Linear Technology Corporation.... 600 35,850
-----------
197,437
-----------
SEMI-CONDUCTORS
CAPITAL EQUIPMENT--1.0%
Applied Materials Inc.*.......... 500 30,812
-----------
TOBACCO--.9%
Philip Morris Companies Inc...... 400 27,100
-----------
MISCELLANEOUS--1.3%
Loewen Group Inc................. 1,500 42,305
-----------
Total Common Stock (Cost $1,440,829) 1,741,587
-----------
<PAGE>
-11-
THE ALGER FUND
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1995
PREFERRED STOCKS--1.0% Shares Value
------ -----
Nokia Corporation, ADR
(Cost $32,397)................. 800 $ 32,800
----------
PRINCIPAL
CORPORATE BONDS--5.9% AMOUNT
---------
AUTOMOTIVE--3.2%
Ford Motor Credit Corp.,
7.75%, 11/15/02................$100,000 100,149
----------
BROKERAGE--2.7%
Merrill Lynch & Co., Inc.,
6.375%, 9/08/06................100,000 87,193
----------
Total Corporate Bonds
(Cost $178,218)................ 187,342
----------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS--30.5%
U.S. Treasury Notes,
7.50%, 10/31/99................100,000 102,313
U.S. Treasury Notes,
6.375%, 1/15/00................100,000 97,922
U.S. Treasury Notes,
7.50%, 5/15/02.................100,000 102,953
U.S. Treasury Bonds,
7.625%, 11/15/22...............100,000 102,219
Federal Home Loan Mortgage Corp.,
8.20%, 1/16/98.................100,000 101,625
Federal Home Loan Mortgage Corp.,
4.75%, 9/20/00.................120,000 112,050
Federal Home Loan Mortgage Corp.,
6.50%, 6/10/03.................150,000 140,274
Federal National Mortgage Assoc.,
7.39%, 7/15/99.................100,000 100,266
Federal National Mortgage Assoc.,
8.50%, 2/01/05.................100,000 103,734
----------
Total U.S. Government
& Agency Obligations
(Cost $952,614)................ 963,356
----------
SHORT-TERM
CORPORATE NOTES--4.7%
Countrywide Funding Corp.,
5.97%, 5/09/95.................$50,000 49,934
Pacific Energy Fuels Corp.,
5.98%, 5/02/95.................100,000 99,983
----------
Total Short-Term Corporate Notes
(Cost $149,917)................ 149,917
----------
Total Investments
(Cost $2,753,975)(a)........... 97.2% 3,075,002
Other Assets in Excess of
Liabilities 2.8 88,060
----- ----------
Net Assets....................... 100.0% $3,163,062
===== ==========
* Non-income producing security.
(a)At April 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $2,753,975 amounted to $321,027 which
consisted of aggregate gross unrealized appreciation of $380,787 and
aggregate gross unrealized depreciation of $59,760.
See Notes to Financial Statements.
<PAGE>
-12-
THE ALGER FUND
ALGER BALANCED PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
FROM JUNE 1, 1992
SIX MONTHS (COMMENCEMENT OF
ENDED OPERATIONS)
APRIL 30, 1995(i) 1994 1993 TO OCTOBER 31, 1992(iii)
----------------- ---- ---- ------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period......................... $ 10.65 $ 11.18 $ 9.95 $ 10.00
-------- -------- ------- ----------
Net investment income (loss)......... ---- (.05) (.01) (.12)
Net realized and unrealized
gain (loss) on investments........ .78 (.39) 1.24 .07
-------- -------- ------- ----------
Total from investment
operations........................ .78 (.44) 1.23 (.05)
Distributions from net realized
gains............................. ---- (.09) ---- ----
-------- -------- ------- ----------
Net asset value, end of period....... $ 11.43 $ 10.65 $ 11.18 $ 9.95
======== ======== ======= =========
Total Return (ii).................... 7.3% (4.0%) 12.4% (0.5%)
======== ======== ======= =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................. $ 3,163 $ 3,073 $ 3,125 $ 1,370
======== ======== ======= =========
Ratio of expenses to average
net assets...................... 3.25% 3.18% 3.82% 5.62%
======== ======== ======= =========
Decrease reflected in above
expense ratios due to expense
reimbursements.................. .36% ---- .75% .75%
======== ======== ======= =========
Ratio of net investment income
(loss) to average net assets.... .13% (.41%) (.97%) (3.07%)
======== ======== ======= =========
Portfolio Turnover Rate............ 51.57% 84.88% 115.17% 17.07%
======== ======== ======= =========
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Does not reflect contingent deferred sales charge.
(iii)Ratios have been annualized; total return has not been annualized.
See Notes to Financial Statements.
<PAGE>
-13-
THE ALGER FUND
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1995
COMMON STOCKS--94.5% SHARES VALUE
------ -----
APPAREL--4.3%
AnnTaylor Stores Corporation*.... 20,000 $ 502,500
Gymboree Corp.*.................. 15,600 366,600
Tommy Hilfiger Corporation*...... 13,000 299,000
-----------
1,168,100
-----------
COMMUNICATIONS--15.7%
ADC Telecommunications Inc.*..... 9,000 297,000
Andrew Corp.*.................... 13,000 643,500
Century Telephone
Enterprises, Inc............... 17,500 520,625
DSC Communications Corporation*.. 17,200 636,400
Glenayre Technologies Inc.*...... 14,100 867,150
Mobile Telecommunications
Technologies Corp.*............ 10,000 236,250
Telephone and Data Systems, Inc.. 5,600 208,600
Tellabs, Inc.* .................. 12,000 828,000
-----------
4,237,525
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--5.4%
Bay Networks Inc.*............... 19,000 691,125
Chipcom Corporation*............. 6,500 212,875
Dell Computer Corp.*............. 4,400 240,900
Paychex Inc...................... 3,300 157,163
3 Com Corp.*..................... 3,000 168,000
-----------
1,470,063
-----------
COMPUTER SOFTWARE--1.2%
Informix Corp.* ................. 8,400 330,750
-----------
CONSUMER PRODUCTS--.9%
CUC International Inc.* ......... 6,000 237,000
-----------
DEFENSE--2.7%
Loral Corp....................... 15,400 723,800
-----------
FINANCIAL SERVICES--6.0%
Advanta Corp., Class B........... 7,250 233,813
First Financial Management Corp.. 9,000 658,125
Lehman Brothers Holdings, Inc.... 19,200 374,400
Charles Schwab Corp.............. 10,450 357,913
-----------
1,624,251
-----------
HEALTH CARE--9.8%
Abbey Healthcare Group Inc.*..... 9,500 377,625
Amgen Inc.*...................... 5,000 363,440
Cardinal Health Inc.............. 7,000 322,875
Forest Laboratories Inc.......... 5,000 225,000
Health Management
Associates Inc. Cl. A*......... 17,000 493,000
Scherer (R.P.) Corp.*............ 5,300 253,075
Surgical Care Affiliates Inc..... 21,000 488,250
United Healthcare Corp........... 3,600 130,500
-----------
2,653,765
-----------
LEISURE &
ENTERTAINMENT--7.3%
Callaway Golf Corp............... 38,600 477,675
Carnival Corporation Class A..... 25,000 621,875
Circus Circus Enterprises Inc.*.. 18,000 596,250
Mirage Resorts Inc.*............. 9,200 276,000
-----------
1,971,800
-----------
MANFACTURING--3.0%
Thermo Electron Corp.*........... 6,400 344,800
Wabash National Corp............. 14,500 451,312
-----------
796,112
-----------
OIL & GAS--1.0%
Texaco Inc....................... 3,800 259,825
-----------
RESTAURANTS &
LODGING--6.4%
Cracker Barrel Old Country
Stores, Inc.................... 23,000 488,750
Lone Star Steakhouse and
Saloon, Inc.*.................. 25,100 768,687
Outback Steakhouse Inc.*......... 18,500 467,125
-----------
1,724,562
-----------
RETAILING--12.0%
Circuit City Stores Inc.......... 29,000 750,375
Dollar General Corp.............. 11,522 267,886
Office Depot Inc.*............... 15,000 341,250
OfficeMax Inc.*.................. 29,000 743,125
Tandy Corporation................ 12,900 638,550
Viking Office Products Inc.*..... 18,200 500,500
-----------
3,241,686
-----------
<PAGE>
-14-
THE ALGER FUND
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1995
COMMON STOCKS--(cont.) SHARES VALUE
------ -----
SEMI-CONDUCTORS--7.2%
Adaptec Inc.*.................... 12,000 $ 384,000
Altera Corp.*.................... 9,400 760,225
LSI Logic Corp.* ................ 12,000 799,500
-----------
1,943,725
-----------
SEMI-CONDUCTORS
CAPITAL EQUIPMENT--9.5%
Applied Materials Inc.*.......... 16,000 986,000
Integrated Device
Technology Inc.*............... 8,000 305,000
Lam Research Corp.*.............. 6,000 303,000
Semitool Inc.*................... 24,300 577,125
Silicon Valley Group Inc.* ...... 14,000 406,000
-----------
2,577,125
-----------
MISCELLANEOUS--2.1%
Loewen Group Inc................. 20,000 564,060
-----------
Total Common Stocks
(Cost $22,104,218)............. 25,524,149
-----------
PREFERRED STOCK--1.4% SHARES VALUE
------ -----
COMMUNICATIONS
Nokia Corporation, ADR
(Cost $331,994)................ 9,000 $ 369,000
-----------
SHORT-TERM CORPORATE PRINCIPAL
NOTES--4.7% AMOUNT
---------
Countrywide Funding Corp.,
5.97%, 5/09/95.................$20,000 19,971
Merrill Lynch & Co. Inc.,
5.95%, 5/05/95.................500,000 499,670
Progress Funding Corp., Series B
5.98%, 5/04/95(a)..............750,000 749,627
-----------
Total Short-Term Corporate Notes
(Cost $1,269,268) ............. 1,269,268
-----------
Total Investments
(Cost $23,705,480)(b).......... 100.6% 27,162,417
Liabilities in Excees
of Other Assets................ (.6) (161,489)
----- -----------
Net Assets....................... 100.0% $27,000,928
===== ===========
* Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At April 30, 1995 the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $23,705,480, amounted to $3,456,937
which consisted of aggregate gross unrealized appreciation of $4,170,707 and
aggregate gross unrealized depreciation of $713,770.
See Notes to Financial Statements.
<PAGE>
-15-
THE ALGER FUND
ALGER MIDCAP GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
FROM MAY 24, 1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED OPERATIONS)
APRIL 30, 1995(i) OCTOBER 31, 1994 TO OCTOBER 31, 1993(ii)
----------------- ---------------- -----------------------
<S> <C> <C> <C>
Net asset value, beginning
of period......................... $ 12.77 $ 12.48 $ 10.00
------- ------- -------
Net investment income (loss)......... (.05) (.11) (.09)
Net realized and unrealized
gain (loss) on investments........ 1.72 .68 2.57
------- ------- -------
Total from investment
operations........................ 1.67 .57 2.48
Distributions from net realized
gains............................. ---- (.28) ----
------- ------- -------
Net asset value, end of period....... $ 14.44 $ 12.77 $ 12.48
======= ======= =======
Total Return (iii)................... 13.1% 4.7% 24.8%
======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................. $27,001 $18,516 $ 3,836
======= ======= =======
Ratio of expenses to average
net assets...................... 2.45% 3.20% 3.73%
======= ======= =======
Decrease reflected in above
expense ratio due to expense
reimbursements-Note 3(a)........ ---- .07% .80%
======= ======= =======
Ratio of net investment income
(loss) to average net assets.... (1.59%) (2.32%) (2.86%)
======= ======= =======
Portfolio Turnover Rate............ 72.20% 127.40% 57.64%
======= ======= =======
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Ratios have been annualized; total return has not been annualized.
(iii)Does not reflect contingent deferred sales charge.
See Notes to Financial Statements.
<PAGE>
-16-
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1995
COMMON STOCKS--102.1% SHARES VALUE
------ -----
APPAREL--1.3%
AnnTaylor Stores Corporation*.... 700 $ 17,588
Tommy Hilfiger Corporation*...... 1,000 23,000
-----------
40,588
-----------
AUTOMOTIVE--.4%
Chrysler Corporation............. 300 12,938
-----------
COMMUNICATIONS--15.0%
ADC Telecommunications Inc.*..... 2,200 72.600
AirTouch Communications Inc.*.... 1,200 32,250
Century Telephone Enterprises,
Inc. .......................... 1,400 41,650
DSC Communications Corporation*.. 1,500 55,500
General Instruments Corp.*....... 1,000 34,125
Network Equipment Technologies
Inc.* ......................... 2,300 50,312
Tekelec Inc.*.................... 2,800 68,600
Tellabs, Inc.*................... 1,500 103,500
-----------
458,537
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--13.4%
Bay Networks Inc.*............... 1,600 58,200
Chipcom Corporation*............. 505 16,539
Cisco Systems Inc.*.............. 1,000 39,875
Dell Computer Corp.*............. 1,000 54,750
Hewlett-Packard Co............... 1,300 85,962
International Business Machines
Corp. 600 56,850
Pinnacle Systems Inc.*........... 2,300 41,975
3 Com Corp.*..................... 1,000 56,000
-----------
410,151
-----------
COMPUTER SOFTWARE--11.7%
Electronics For Imaging Inc.*.... 1,400 63,700
Informix Corp.*.................. 2,000 78,750
Medic Computer Sytems Inc.*...... 700 30,800
Parametric Technology Corp.*..... 1,200 57,000
S3 Inc.*......................... 3,500 80,938
Wonderware Corp.*................ 1,400 46,375
-----------
357,563
-----------
COMPUTER TECHNOLOGY--5.0%
ADFlex Solutions Inc.*........... 2,000 48.500
Merix Corporation*............... 1,100 25.025
Open Environment Corp.*.......... 2,000 35,000
Silicon Graphics Corp.*.......... 1,200 45,000
-----------
153,525
-----------
DEFENSE--4.5%
Lockheed Martin Corp............. 1,052 60,752
Loral Corp....................... 1,000 47,000
McDonnell Douglas Corp........... 500 31,000
-----------
138,752
-----------
FINANCIAL SERVICES--2.9%
Advanta Corp., Class B........... 1,700 54,825
Lehman Brothers Holdings, Inc.... 1,000 19,500
Morgan Stanley Group Inc......... 200 13,900
-----------
88,225
-----------
HEALTH CARE 8.1%
Amgen Inc.*...................... 800 58,150
Columbia/HCA Healthcare Corp..... 900 37,800
Integrated Health Services Inc... 400 13,850
Lilly (Eli) Co................... 400 29,900
Medtronic Inc.................... 600 44,625
Merck & Co....................... 1,000 42,875
Sybron International Corp.*...... 575 21,347
-----------
248,547
-----------
LEISURE &
ENTERTAINMENT--1.7%
Carnival Corporation Class A..... 1,000 24,875
Mirage Resorts Inc.*............. 900 27,000
-----------
51,875
-----------
POLLUTION CONTROL--.8%
USA Waste Services Inc.*......... 1,700 25,500
-----------
RESTAURANTS & LODGING--4.5%
Cracker Barrel Old Country
Stores, Inc. .................. 1,900 40,375
Lone Star Steakhouse and
Saloon, Inc.*.................. 2,300 70,438
Outback Steakhouse Inc.*......... 1,100 27,775
-----------
138,588
-----------
RETAILING--8.1%
Circuit City Stores Inc.......... 1,200 31,050
Dollar General Corp.............. 1,406 32,690
Home Depot Inc................... 1,000 41,750
OfficeMax Inc.*.................. 1,500 38,437
Sports & Recreation Inc.*........ 1,050 12,337
Tandy Corporation................ 600 29,700
Tiffany & Co..................... 700 22,488
Viking Office Products Inc.*..... 1,500 41,250
-----------
249,702
-----------
SEMI-CONDUCTORS--19.5%
Adaptec Inc.*.................... 1,400 44,800
Altera Corp.*.................... 1,200 97,050
Intel Corp....................... 500 51,188
LSI Logic Corp.*................. 800 53.300
Linear Technology Corp........... 1,000 59,750
Micrel Inc.*..................... 4,000 71,000
Micro Linear Corporation*........ 8,200 98,400
Orbit Semiconductor, Inc.*....... 6.000 91,500
Quality Semiconductor Inc.*...... 2,700 30,375
-----------
597,363
-----------
SEMI-CONDUCTORS
CAPITAL EQUIPMENT--5.2%
Applied Materials Inc.*.......... 500 30,813
Integrated Device Technology
Inc.* ......................... 1,600 61,000
Semitool Inc.*................... 2,800 66,500
-----------
158,313
-----------
Total Common Stocks
(Cost $2,473,301).............. 3,130,167
-----------
<PAGE>
-17-
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1995
PREFERRED STOCKS--1.3% SHARES VALUE
------ -----
COMMUNICATIONS
Nokia Corporation, ADR
(Cost $36,915)................. 1,000 $ 41,000
-----------
WARRANTS--.7%
SEMI-CONDUCTORS
Intel Corp. Warrants,
expires 3/4/98 (Cost $18,075).. 600 21,788
-----------
Total Investments
(Cost $2,528,291)(a)........... 104.1% 3,192,955
Liabilities in Excess of Other
Assets (4.1) (126,840)
-----------
Net Assets....................... 100.0% $3,066,115
===== ==========
* Non-income producing security.
(a)At April 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $2,528,291 amounted to $664,664 which
consisted of aggregate gross unrealized appreciation of $718,905 and
aggregate gross unrealized depreciation of $54,241.
See Notes to Financial Statements.
<PAGE>
-18-
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO (ii)
Financial Highlights
For a share outstanding throughout the period
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 1995(I) OCTOBER 31, 1994
----------------- ----------------
Net asset value, beginning of period ...... $ 11.11 $ 10.00
----------- ----------
Net investment income (loss) .............. (0.21) (0.47)
Net realized and unrealized gain (loss)
on investments .......................... 2.14 1.58
----------- ----------
Total from investment operations ........ 1.93 1.11
----------- ----------
Net asset value, end of period ............ $ 13.04 $ 11.11
=========== ==========
Total Return (iii) ........................ 17.4% 11.1%
=========== ==========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ....................... $ 3,066 $ 2,369
=========== ==========
Ratio of expenses excluding interest to
average net assets .................... 3.71% 4.13%
=========== ==========
Ratio of expenses including interest to
average net assets .................... 5.20% 5.53%
=========== ==========
Decrease reflected in above expense
ratios due to expense reimbursements--
Note 3(a) ............................. 0.85% 0.85%
=========== ==========
Ratio of net investment income (loss)
to average net assets ................. (4.75%) (5.12%)
=========== ==========
Portfolio Turnover Rate ................. 56.80% 231.99%
=========== ==========
Debt outstanding at end of period ....... $ 129,000 $ 651,000
=========== ==========
Average amount of debt outstanding
during the period ..................... $ 425,867 $ 406,864
=========== ==========
Average daily number of shares
outstanding during the period ......... 220,339 191,676
=========== ==========
Average amount of debt per share
during the period ..................... $ 1.93 $ 2.12
=========== ==========
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Prior to March 27, 1995, the Alger Capital Appreciation Portfolio was the
Alger Leveraged AllCap Portfolio.
(iii)Does not reflect contingent deferred sales charge.
See Notes to Financial Statements.
<PAGE>
-19-
THE ALGER FUND
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1995
SHORT-TERM CORPORATE PRINCIPAL
NOTES--94.3% AMOUNT VALUE
--------- -----
AEROSPACE--3.0%
Honeywell Inc.,
6.20%, 8/30/95..............$5,000,000 $ 4,895,806
-----------
AIRLINES--1.2%
United Airlines First Funding Corp.,
6.08%, 5/23/95...............2,000,000 1,992,569
-----------
AUTOMOTIVE--6.9%
American Honda Finance Corp.,
6.23%, 9/26/95...............1,400,000 1,364,143
Mitsubishi Motor Credit of
America, Inc.,
6.15%, 6/5/95................6,300,000 6,262,331
Renault Acceptance B.V.,
6.15%, 10/10/95..............3,600,000 3,500,370
-----------
11,126,844
-----------
AUTOMOTIVE EQUIPMENT
& SERVICES--3.7%
Bridgestone/Firestone Inc.,
6.05%, 7/18/95...............6,000,000 5,921,350
---------
BANKS--13.8%
Banca Itau S.A.,
6.00-6.15%, 5/16/95-10/5/95..7,800,000 7,712,265
IMI Funding Corp., (U.S.A.),
6.05%, 5/19/95 ..............5,300,000 5,283,968
PTA Bank Funding Corp.,
6.02%, 5/1/95................4,750,000 4,750,000
Svenska Handelsbanken, Inc.,
6.30%, 7/27/95...............4,500,000 4,431,487
-----------
22,177,720
-----------
BROKERAGE--4.4%
Merrill Lynch International (Australia) LTD.,
6.10%, 5/10/95...............1,700,000 1,697,408
Merrill Lynch & Co., Inc.,
6.12-6.22%, 6/7/95-10/11/95..5,500,000 5,379,946
-----------
7,077,354
-----------
CHEMICALS--3.7%
Akzo America Inc.,
6.00%, 6/5/95................6,000,000 5,965,000
-----------
ELECTRONICS--4.2%
Toshiba International Finance (U.K.),
6.12-6.17%, 6/2/95-8/18/95.. 6,800,000 6,684,876
-----------
FINANCE--24.1%
Dynamic Funding, Corp.,
6.10% 5/15/95................2,600,000 2,593,832
Freedom Asset Funding Corp.,
6.03%, 5/16/95...............7,800,000 7,780,403
Global Funding Corp.,
6.14%, 6/30/95...............1,700,000 1,682,603
Industrial Funding Corp.,
6.03%, 5/17/95...............7,000,000 6,981,240
Oak Funding Corp.,
6.02-6.23%,
5/17/95-9/14/95(a) ..........7,500,000 7,428,112
Progress Funding Corp., Ser. A,
6.12%, 6/1/95(a).............1,000,000 994,730
Province of Quebec,
6.10%, 6/6/95................4,000,000 3,975,600
Riverside Funding Inc.,
6.03%, 5/9/95 .............. 5,500,000 5,492,630
SRD Finance Inc.,
6.02%, 5/25/95...............1,700,000 1,693,177
-----------
38,622,327
-----------
RECEIVABLES
FINANCING--7.9%
Receivables Capital Corp.,
6.00%, 5/17/95 ..............5,300,000 5,285,867
Stellar Capital Corp.,
6.23-6.25%, 9/14/95(a).......7,600,000 7,420,820
-----------
12,706,687
-----------
REAL ESTATE--4.0%
Countrywide Funding Corp.,
5.97%, 5/9/95 ............... 300,000 299,602
Washington Square Mortgage Co.,
6.10%, 6/22/95...............2,700,000 2,676,210
Embarcadero Center Associates,
6.02%, 7/18/95...............3,500,000 3,466,639
-----------
6,442,451
-----------
TELE-COMMUNICATIONS--.6%
Frontier Corp.,
6.10%, 6/22/95(a)............1,000,000 991,189
-----------
<PAGE>
TRADING COMPANY--5.1%
Mitsubishi International Corp.,
6.22-6.55%, 7/10/95-9/5/95...6,800,000 6,674,726
Mitsui & Co., (USA) Inc.,
6.12%, 6/19/95...............1,500,000 1,487,505
-----------
8,162,231
-----------
<PAGE>
-20-
THE ALGER FUND
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1995
SHORT-TERM CORPORATE PRINCIPAL
NOTES--(cont.) AMOUNT VALUE
--------- -----
UTILITIES--11.7%
Central Louisiana Electric Co.,
6.52%, 7/10/95..............$3,000,000 $ 2,961,967
Enel Commercial Paper Inc.,
6.17-6.41%, 7/27/95-10/5/95 .7,207,000 7,061,106
Ontario Hydro,
6.03%, 5/30/95...............3,700,000 3,682,027
Pennsylvania Power & Light Co.,
5.95%, 5/8/95................3,000,000 2,996,529
Public Service Electric & Gas Co.,
6.00%, 5/18/95...............2,000,000 1,994,333
------------
18,695,962
------------
Total Short-Term Corporate Notes
(Cost $151,462,366) ......... 151,462,366
------------
CERTIFICATES OF DEPOSIT--4.4%
Banco Espirito Santo North
America Capital Corp.,
6.00%, 5/26/95
(Cost $7,000,000)............7,000,000 7,000,000
------------
Total Investments
(Cost $158,462,366)(b)....... 98.7% 158,462,366
Other Assets in Excess
of Liabilities............... 1.3 2,005,945
----- ------------
Net Assets..................... 100.0% $160,468,311
===== ============
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b) At April 30 1995 the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes.
See Notes to Financial Statements.
<PAGE>
-21-
THE ALGER FUND
ALGER MONEY MARKET PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
APRIL 30, 1995(I) 1994 1993 1992 1991 1990
---------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period....................... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- --------
Net investment income.............. .0283 .0374 .0304 .0424 .0671 .0844
Dividends from net
investment income............... (.0283) (.0374) (.0304) (.0424) (.0671) (.0844)
-------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return....................... 2.9% 3.8% 3.1% 4.3% 6.9% 8.8%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)............... $160,468 $163,170 $126,567 $135,288 $160,898 $143,420
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets.................... .23% .27% .41% .25% .18% .03%
======== ======== ======== ======== ======== ========
Decrease reflected in above
expense ratios due to
expense reimbursements
and management fee
waivers-Note 3(a)............. .50% .50% .50% .60% .63% .84%
======== ======== ======== ======== ======== ========
Ratio of net investment
income to average net
assets........................ 5.69% 3.78% 3.04% 4.30% 6.76% 8.37%
======== ======== ======== ======== ======== ========
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
<PAGE>
-22-
THE ALGER FUND
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share amounts)(Unaudited)
April 30, 1995
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
(identified cost*)-see accompany-
ing schedules of investments ......... $91,650 $346,202 $3,075 $27,162 $3,193 $158,462
------- -------- ------ ------- ------ --------
Cash .................................... 27 28 38 17 2 183
Receivable for investment
securities sold....................... 1,767 1,077 24 140 43 --
Receivable for shares of beneficial
interest sold........................ 282 451 1 93 9 1,917
Dividends and interest
receivable............................ 17 32 29 1 -- 6
Receivable from Investment
Manager-Note 3(a)..................... -- -- -- -- 2 --
Prepaid expenses and other assets........ 15 39 12 14 4 14
------- -------- ------ ------- ------ --------
Total Assets......................... 93,758 347,829 3,179 27,427 3,253 160,582
------- -------- ------ ------- ------ --------
LIABILITIES:
Demand loan payable to bank.............. -- -- -- -- 129 --
Payable for investment
securities purchased.................. 234 1,061 -- 322 42 --
Payable for shares of beneficial
interest redeemed..................... 32 2,287 -- 38 -- 28
Interest payable......................... -- -- -- -- 2 --
Accrued investment management fees....... 55 232 2 17 2 --
Accrued distribution fees ............... 55 205 2 16 2 --
Accrued shareholder servicing fees....... 18 68 1 5 1 --
Dividends payable-Note 2(c).............. -- -- -- -- -- 14
Accrued expenses......................... 61 224 11 28 9 72
------- -------- ------ ------- ------ --------
Total Liabilities.................... 455 4,077 16 426 187 114
------- -------- ------ ------- ------ --------
NET ASSETS ............................. $93,303 $343,752 $3,163 $27,001 $3,066 $160,468
======= ======== ====== ======= ====== ========
Net Assets Consist of:
Paid-in capital....................... $78,509 $272,300 $2,882 $22,608 $2,483 $160,510
Undistributed net investment
income (accumulated loss)........... (1,733) (13,451) (49) (468) (159) --
Undistributed net realized
gain (accumulated loss)............. 1,649 10,835 9 1,404 77 (42)
Net unrealized appreciation............ 14,878 74,068 321 3,457 665 --
------- -------- ------ ------- ------ --------
NET ASSETS .............................. $93,303 $343,752 $3,163 $27,001 $3,066 $160,468
======= ======== ====== ======= ====== ========
Shares of beneficial interest
outstanding-Note 6.................... 4,151 13,551 277 1,870 235 160,510
======= ======== ====== ======= ====== ========
NET ASSET VALUE PER SHARE................ $22.48 $ 25.37 $11.43 $14.44 $13.04 $1.00
======= ======== ====== ======= ====== ========
*Identified cost........................ $76,772 $272,134 $2,754 $23,705 $2,528 $158,462
======= ======== ====== ======= ====== ========
</TABLE>
<PAGE>
-23-
THE ALGER FUND
STATEMENTS OF OPERATIONS (in thousands) (Unaudited)
For the six months ended April 30, 1995
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
INVESTMENT INCOME: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Income:
Dividends ............................. $ 316 $ 231 $ 7 $ 31 $ 5 $ --
Interest .............................. 158 590 41 62 -- 4,761
-------- -------- ------ ------ ---- ------
Total Income........................... 474 821 48 93 5 4,761
Expenses:
Management fees-Note 3(a).............. 302 1,280 11 87 11 --
Distribution fees-Note 3(b)............ 302 1,130 11 82 9 --
Shareholder servicing fees-Note 3(f)... 101 377 4 27 3 --
Interest expense....................... -- -- -- -- 18 --
Custodian fees......................... 8 29 2 4 3 22
Transfer agent fees and
expenses-Note 3(e).................. 87 326 6 28 7 117
Professional fees...................... 17 23 8 15 9 7
Trustees' fees......................... 2 2 2 2 2 2
Registration fees...................... 13 19 6 13 12 25
Miscellaneous.......................... 16 48 2 8 1 14
-------- -------- ------ ------ ---- ------
848 3,234 52 266 75 187
Less, expense reimbursements-
Note 3(a)........................... -- -- (5) -- (11) --
-------- -------- ------ ------ ---- ------
Total Expenses......................... 848 3,234 47 266 64 187
-------- -------- ------ ------ ---- ------
NET INVESTMENT
INCOME (LOSS)......................... (374) (2,413) 1 (173) (59) 4,574
REALIZED AND UNREAL-
IZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments.. 1,357 6,344 94 1,134 147 (12)
Net change in unrealized appreciation
on investments......................... 7,571 30,709 110 2,150 334 --
-------- -------- ------ ------ ---- ------
Net realized and unrealized
gain (loss) on investments............. 8,928 37,053 204 3,284 481 (12)
-------- -------- ------ ------ ---- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........... $ 8,554 $ 34,640 $ 205 $3,111 $422 $4,562
======== ======== ====== ====== ==== ======
</TABLE>
*Prior to March 27, 1995 the Alger Capital Appreciation Portfolio was the Alger
Leveraged AllCap Portfolio.
See Notes to Financial Statements.
<PAGE>
-24-
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO*
STATEMENT OF CASH FLOWS (in thousands)(Unaudited)
For the six months ended April 30, 1995
Increase (decrease) in Cash:
Cash flows from operating activities:
Dividends received ........................................... $ 6
Interest paid ................................................ (17)
Operating expenses paid ...................................... (52)
Purchase of portfolio securities ............................. (1,706)
Proceeds from disposition of portfolio securities ............ 2,006
Other ........................................................ 7
--------
Net cash provided by operating activities ................ 244
--------
Cash flows from financing activities:
Proceeds from shares sold .................................... 912
Payments on shares redeemed .................................. (647)
Repayment of bank borrowings ................................. (522)
--------
Net cash (used) for financing activities ............... (257)
--------
Net decrease in cash ............................................. (13)
Cash--beginning of period ........................................ 15
--------
Cash--end of period .............................................. $ 2
========
Reconciliation of net increase in net assets
to net cash provided by operating activities:
Net increase in net assets resulting from operations ....... $ 422
Decrease in investments .................................... 368
Increase in receivable for investments securities sold ..... (43)
Decrease in payable for investment securities purchased .... (24)
Net realized gain .......................................... (147)
Net increase in unrealized appreciation .................... (334)
Decrease in accrued expenses ............................... (4)
Net decrease in other assets ............................... 6
--------
Net cash provided by operating activities .............. $ 244
========
*Prior to March 27, 1995 the Alger Capital Appreciation Portfolio was the Alger
Leveraged AllCap Portfolio.
See Notes to Financial Statements.
<PAGE>
-25-
THE ALGER FUND
STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited)
For the six months ended April 30, 1995
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO
--------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)............ $ (374) $ (2,413) $ 1 $ (173) $ (59) $ 4,574
Net realized gain (loss)
on investments........................ 1,357 6,344 94 1,134 147 (12)
Net change in unrealized appreciation
(depreciation) on investments......... 7,571 30,709 110 2,150 334 --
------- -------- ------ ------- ------ --------
Net increase in net assets
resulting from operations......... 8,554 34,640 205 3,111 422 4,562
Dividends to shareholders:
Net investment income.................. -- -- -- -- -- (4,574)
Net realized gains.................... (1,768) (170) -- -- -- --
Net increase (decrease) from
shares of beneficial interest
transactions-Note 6................... 10,127 14,392 (115) 5,374 275 (2,690)
------- -------- ------ ------- ------ --------
Total increase (decrease).......... 16,913 48,862 90 8,485 697 (2,702)
Net Assets:
Beginning of period .................. 76,390 294,890 3,073 18,516 2,369 163,170
------- -------- ------ ------- ------ --------
End of period.......................... $93,303 $343,752 $3,163 $27,001 $3,066 $160,468
======= ======== ====== ======= ====== ========
Undistributed net investment
income (accumulated loss)............ $(1,733) $(13,451) $ (49) $ (468) $ (159) $ --
======= ======== ====== ======= ====== ========
</TABLE>
THE ALGER FUND
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
For the year ended October 31, 1994
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)............ $ (595) $ (4,194) $ (14) $ (267) $ (100) $ 5,377
Net realized gain (loss)
on investments........................ 1,641 47 (85) 242 (70) (19)
Net change in unrealized appreciation
(depreciation) on investments......... 789 1,079 (50) 845 331 --
------- -------- ------ ------- ------ --------
Net increase (decrease) in net
assets resulting from operations.. 1,835 (3,068) (149) 820 161 5,358
Dividends to shareholders:
Net investment income.................. -- -- -- -- -- (5,377)
Net realized gains.................... (3,909) (30,622) (28) (111) -- --
Net increase from shares of beneficial
interest transactions-Note 6.......... 40,476 28,472 125 13,971 2,208 36,622
------- -------- ------ ------- ------ --------
Total increase (decrease).......... 38,402 (5,218) (52) 14,680 2,369 36,603
Net Assets:
Beginning of year..................... 37,988 300,108 3,125 3,836 -- 126,567
------- -------- ------ ------- ------ --------
End of year............................ $76,390 $294,890 $3,073 $18,516 $2,369 $163,170
======= ======== ====== ======= ====== ========
Undistributed net investment
income (accumulated loss)............ $(1,359) $(11,038) $ (50) $ (295) $ (100) $ --
======= ======== ====== ======= ====== ========
</TABLE>
*Prior to March 27, 1995 the Alger Capital Appreciation Portfolio was the Alger
Leveraged AllCap Portfolio.
See Notes to Financial Statements.
<PAGE>
-26-
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1- GENERAL:
The Alger Fund (the "Fund") is a diversified, open-end registered
investment company organized as an unincorporated business trust under the laws
of the Commonwealth of Massachusetts. The Fund operates as a series company
currently issuing six classes of shares of beneficial interest--Growth
Portfolio, Small Capitalization Portfolio, Balanced Portfolio, MidCap Growth
Portfolio, Capital Appreciation Portfolio and Money Market Portfolio (the
"Portfolios"). Prior to March 27, 1995, the Alger Capital Appreciation Portfolio
was known as the Alger Leveraged AllCap Portfolio. The Alger Income and Growth
Portfolio was liquidated in May 1995, pursuant to a plan of liquidation approved
by the Board of Trustees and the shareholders.
NOTE 2- SIGNIFICANT ACCOUNTING POLICIES:
(a) INVESTMENT VALUATION: Investments of the Portfolios, other than the Money
Market Portfolio, are valued on each day the New York Stock Exchange (the
"NYSE") is open as of the close of the NYSE (currently 4:00 p.m. Eastern time).
Listed and unlisted securities for which such information is regularly reported
are valued at the last reported sales price or, in the absence of reported
sales, at the mean between the bid and asked price or, in the absence of a
recent bid or asked price, the equivalent as obtained from one or more of the
major market makers for the securities to be valued.
Securities for which market quotations are not readily available are valued
at fair value, as determined in good faith pursuant to procedures established by
the Board of Trustees.
The investments of the Money Market Portfolio, and short-term securities
held by the other Portfolios having a remaining maturity of sixty days or less,
are valued at amortized cost which approximates market value.
(b) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income is recognized on the
accrual basis.
(c) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on
the ex-dividend date.
The Money Market Portfolio declares dividends daily from net investment
income; such dividends are paid monthly. The dividends from net investment
income of the other Portfolios are declared and paid annually.
With respect to all Portfolios, dividends from net realized gains, offset
by any loss carryforward, are declared and paid annually after the end of the
fiscal year in which earned.
(d) FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders. To
the extent a Portfolio maintains such compliance, no federal income tax
provision is required. Each Portfolio is treated as a separate entity for the
purpose of determining such compliance. At October 31, 1994, the net capital
loss carryforwards of the Balanced Portfolio, Capital Appreciation Portfolio and
Money Market Portfolio which may be used to offset future net realized gains
were approximately $85,000, $36,000 and $30,000, respectively, and expire
between 1996 and 2002.
(e) EXPENSES: The Fund accounts separately for the assets, liabilities and
operations of each Portfolio. Expenses directly attributable to each Portfolio
<PAGE>
-27-
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
are charged to that Portfolio's operations; expenses which are applicable to all
Portfolios are allocated among them.
NOTE 3- INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the
provisions of Investment Management Agreements (the "Agreements") with Fred
Alger Management, Inc. ("Alger Management"), are payable monthly and computed
based on the value of the average daily net assets of each Portfolio at the
following annual rates:
Growth Portfolio............................ .75%
Small Capitalization Portfolio.............. .85
Balanced Portfolio.......................... .75
MidCap Growth Portfolio..................... .80
Capital Appreciation Portfolio.............. .85
Money Market Portfolio...................... .50
The Agreements further provide that if in any fiscal year the aggregate
expenses of any Portfolio, excluding interest, taxes, brokerage commissions,
distribution fees and extraordinary expenses, exceed the expense limitation of
any state securities laws having jurisdiction over a Portfolio, Alger Management
will reimburse that Portfolio for the excess expense to the extent required by
such state laws. During the six months ended April 30, 1995, Alger Management
reimbursed the Balanced Portfolio $5,190, and the Capital Appreciation Portfolio
$10,513, pursuant to the state expense limitation applicable to those
Portfolios.
With respect to the Money Market Portfolio, Alger Management undertook to
waive its management fee of $401,625 for the six months ended April 30, 1995.
Alger Management has undertaken to waive its fee through June 30, 1995 at which
time Alger Management may extend this undertaking in whole or in part.
(b) DISTRIBUTION FEES: The Fund has adopted an Amended and Restated Plan of
Distribution pursuant to which each Portfolio, other than the Money Market
Portfolio, has agreed to reimburse Fred Alger & Company, Incorporated, the
Fund's distributor (the "Distributor"), for costs and expenses incurred by the
Distributor in connection with advertising and marketing shares of the Fund's
Portfolios. The distribution fee is not to exceed .75% of the average daily net
assets of each of the designated Portfolios. If in any month, the costs incurred
by the Distributor are in excess of the distribution fees charged to the
Portfolios, the excess may be carried forward, with interest, and sought to be
reimbursed in future periods. As of April 30, 1995, such excess carried forward
was approximately $4,526,000, $9,060,000, $84,000, $409,000 and $21,000 for the
Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio,
the MidCap Growth Portfolio, and the Capital Appreciation Portfolio,
respectively. Contingent deferred sales charges imposed on redemptions will
reduce the amount of distribution expenses for which reimbursement may be
sought. See Note 3(c) below. The Distributor has entered into arrangements with
broker/dealers for the sale of shares of certain of the Fund's Portfolios. In
connection with these arrangements, the Distributor has agreed to pay these
broker/dealers, with respect to the shares sold, from its distribution fee
received from the Portfolios.
(c) CONTINGENT DEFERRED SALES CHARGE: A contingent deferred sales charge is
imposed if an investor redeems an amount which causes the current value of the
investor's account of any Portfolio to fall below the total dollar amount of
investments made during the past six years, except that no sales charge is
imposed on the amount of the investment redeemed which is attributable to
reinvested dividends or capital gain distributions or is derived from increases
in the value of the investor's account above the amount invested during the past
<PAGE>
-28-
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
six years. The amount of the charge is 5% of the purchase payment for
redemptions made in the first year. For redemptions made in the second, third,
fourth, fifth and sixth years, the amount of the charge is 4%, 3%, 2%, 2% and
1%, respectively. In addition, no charge is imposed on the redemption of shares
of the Money Market Portfolio, except for redemptions of shares acquired in
exchange for shares of the other Portfolios. Any sales charges imposed on
redemptions are paid to the Distributor. During the six months ended April 30,
1995, such charges amounted to approximately $731,000.
(d) BROKERAGE COMMISSIONS: During the six months ended April 30, 1995, the
Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio,
the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the
Distributor commissions of $132,676, $214,481, $3,116, $40,125 and $2,219,
respectively, in connection with securities transactions.
(e) TRANSFER AGENT FEES: Alger Shareholder Services, Inc. ("Alger Services"), an
affiliate of Alger Management, serves as transfer agent for the Fund. During the
six months ended April 30, 1995, the Growth Portfolio, the Small Capitalization
Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital
Appreciation Portfolio and the Money Market Portfolio incurred fees of $65,730,
$245,125, $4,364, $25,026, $5,700 and $97,205, respectively, for services
provided by Alger Services. In addition, during the six months ended April 30,
1995, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced
Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and
the Money Market Portfolio reimbursed Alger Services $21,575, $80,450, $1,268,
$3,620, $1,695 and $19,798, respectively, for transfer agent related expenses
paid by Alger Services on behalf of the Portfolios.
(f) SHAREHOLDER SERVICING FEES: The Fund has entered into a shareholder
servicing agreement with the Distributor whereby the Distributor provides each
Portfolio other than the Money Market Portfolio with ongoing servicing of
shareholder accounts. As compensation for such services, each designated
Portfolio pays the Distributor a monthly fee at an annual rate equal to .25% of
the Portfolios' average daily net assets.
(g) OTHER TRANSACTIONS WITH AFFILIATES: Certain trustees and officers of the
Fund are directors and officers of Alger Management, the Distributor and Alger
Services. At April 30, 1995, Alger Management and its affiliates owned 239,629
shares, 250,157 shares, 103,295 shares, 211,677 shares, 100,001 shares and
1,179,590 shares of the Growth Portfolio, the Small Capitalization Portfolio,
the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation
Portfolio, and the Money Market Portfolio, respectively.
NOTE 4- SECURITIES TRANSACTIONS:
The following summarizes the securities transactions by the Fund, other
than short-term securities, for the six months ended April 30, 1995:
PURCHASES SALES
--------- -----
Growth Portfolio......... $ 50,292,790 $ 43,588,957
Small Capitalization
Portfolio.............. 196,864,809 164,478,941
Balanced Portfolio....... 1,925,165 1,441,906
MidCap Growth
Portfolio.............. 21,218,505 14,620,124
Capital Appreciation
Portfolio.............. 1,681,979 2,049,678
NOTE 5- SHORT-TERM BORROWINGS:
The Capital Appreciation Portfolio has a line of credit with a bank whereby
it may borrow up to 1/3 of its assets, as defined, up to a maximum of
$25,000,000. Such borrowings have a variable interest rate and are payable on
demand. For the six months ended April 30, 1995, the Portfolio had borrowings
which averaged $425,867 at a weighted average interest rate of 8.57%.
<PAGE>
-29-
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 6- SHARE CAPITAL:
The Fund has an unlimited number of authorized shares of beneficial interest of
$.001 par value which were divided into different classes of shares during the
six months ended April 30, 1995. Transactions of shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Growth Portfolio
Shares sold................. 943,952 $ 19,306,637 2,551,306 $ 52,802,599
Dividends reinvested........ 88,948 1,768,482 186,609 3,806,820
------------ ------------- ------------ ------------
1,032,900 21,075,119 2,737,915 56,609,419
Shares redeemed............. (533,943) (10,948,048) (789,868) (16,133,616)
------------ ------------- ------------ ------------
Net increase................ 498,957 $ 10,127,071 1,948,047 $ 40,475,803
============ ============= ============ ============
Alger Small Capitalization Portfolio
Shares sold................. 4,424,556 $ 101,053,573 6,769,107 $149,953,791
Dividends reinvested........ 7,612 169,811 1,300,991 29,168,225
------------ ------------- ------------ ------------
4,432,168 101,223,384 8,070,098 179,122,016
Shares redeemed............. (3,779,276) (86,831,196) (6,737,930) (150,649,904)
------------ ------------- ------------ ------------
Net increase................ 652,892 $ 14,392,188 1,332,168 $ 28,472,112
============ ============= ============ ============
Alger Balanced Portfolio
Shares sold................. 47,845 $ 517,046 156,133 $ 1,697,838
Dividends reinvested........ -- -- 2,549 27,938
------------ ------------- ------------ ------------
47,845 517,046 158,682 1,725,776
Shares redeemed............. (59,690) (632,229) (149,768) (1,600,522)
------------ ------------- ------------ ------------
Net increase (decrease)..... (11,845) $ (115,183) 8,914 $ 125,254
============ ============= ============ ============
Alger MidCap Growth Portfolio
Shares sold................. 1,033,040 $ 13,263,867 1,383,145 $ 16,842,733
Dividends reinvested........ -- -- 8,710 105,566
------------ ------------- ------------ ------------
1,033,040 13,263,867 1,391,855 16,948,299
Shares redeemed............. (613,532) (7,889,722) (249,243) (2,977,761)
------------ ------------- ------------ ------------
Net increase................ 419,508 $ 5,374,145 1,142,612 $ 13,970,538
============ ============= ============ ============
Alger Capital Appreciation Portfolio
Shares sold................. 80,749 $ 910,761 403,937 $ 4,150,543
Shares redeemed............. (58,690) (635,957) (190,793) (1,942,219)
------------ ------------- ------------ ------------
Net increase................ 22,059 $ 274,804 213,144 $ 2,208,324
============ ============= ============ ============
Alger Money Market Portfolio
Shares sold................. 137,315,832 $137,315,832 245,130,350 $245,130,350
Dividends reinvested........ 4,410,412 4,410,412 5,201,659 5,201,659
------------ ------------- ------------ ------------
141,726,244 141,726,244 250,332,009 250,332,009
Shares redeemed............. (144,416,234) 144,416,234) (213,710,015) (213,710,015)
------------ ------------- ------------ ------------
Net increase (decrease)..... (2,689,990) $ (2,689,990) 36,621,994 $ 36,621,994
============ ============= ============ ============
</TABLE>
<PAGE>
The Alger Fund
75 Maiden Lane
New York, N.Y. 10038
(800) 992-3863
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Board of Trustees
Fred M. Alger, CHAIRMAN
David D. Alger
Arthur M. Dubow
Stephen E. O'Neil
Nathan E. Saint-Amand
John T. Sargent
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Investment Manager
Fred Alger Management, Inc.
75 Maiden Lane
New York, N.Y. 10038
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Distributor
Fred Alger & Company, Incorporated
30 Montgomery Street
Jersey City, N.J. 07302
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Custodian
NatWest Bank National Association
10 Exchange Place
Jersey City, N.J. 07302
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Transfer Agent
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, N.J. 07302
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This report was prepared for distribution to shareholders and to others who may
be interested in current information concerning the Fund. It was not prepared
for use, nor is it circulated in connection with any offer to sell, or
solicitation of any offer to buy, any securities. For details thereof and other
material information, see the Prospectus.
Past performance does not guarantee future results. Investment return and
principal will fluctuate, and the Portfolios' shares, when redeemed, may be
worth more or less than the original cost. Maximum contingent deferred sales
charge is 5% on redemptions during the first year, and declines to 0% after six
years. This communication must be accompanied or preceded by a current Alger
Fund Prospectus. A365
THE
ALGER MEETING THE CHALLENGE
FUND OF INVESTING
ALGER GROWTH PORTFOLIO
ALGER SMALL CAPITALIZATION PORTFOLIO
ALGER BALANCED PORTFOLIO
ALGER MIDCAP GROWTH PORTFOLIO
ALGER CAPITAL APPRECIATION PORTFOLIO
ALGER MONEY MARKET PORTFOLIO
SEMI-ANNUAL April 30, 1995
REPORT (Unaudited)
