FELLOW SHAREHOLDERS: May 14, 1999
YEAR-TO-DATE REVIEW
The U.S. economy continued to show strong growth in the first quarter of
1999, bolstering corporate earnings and helping to push the Dow Jones Industrial
Average above the 10,000 mark. The broader stock market saw strong gains in
January, most of which were given back in February. In March, the Dow broke
through the 10,000 mark several times in intraday trading before finally closing
above that milestone at month-end. The S&P 500 saw a total return of 4% in March
and 4.98% in the first quarter of 1999. Mid- and small-capitalization stocks as
a group lost ground in January and February, posting only minor gains in March.
Large-capitalization companies and technology firms continued to lead the market
to record levels in April and into May.
First-quarter GDP rose 4.5%, fueled by increases in consumer spending and
business investment in technology. Consumer spending grew at a 6.7% annual rate
in the first quarter, a significant rise over last year. The rise in consumer
confidence is due in part to employment gains and slowing inflation. Low
interest rates led to a boom in mortgage refinancing. Residential construction
spending also posted strong gains in the first quarter. Business investments in
durable equipment rose, with spending on information technology up 21% on an
annualized basis.
Low interest rates contributed to the stock market's rise. While yields on
long-term U.S. Treasury bonds climbed to 5.625% on March 31 from 5.09% at
year-end 1998, the Federal Reserve took a neutral stance on interest rates at
its regular Federal Open Market Committee meeting. Since February, long-term
interest rates have drifted in the 5.25% to 6.0% range, and concerns that the
Federal Reserve would move toward higher interest rates to forestall potential
inflation have eased. In the wake of Russia's default last fall, lenders raised
restrictions on new loans and money markets began to tighten. To ease the
liquidity crunch, the Federal Reserve cut its Federal Funds target rate three
times to 4.75% from 5.5%. Fears of a widespread credit crisis quickly subsided,
however. The Fed's January Lending Survey showed a clear shift toward more
available funds, and quality spreads between the U.S. Treasuries and high-yield
bonds have begun to narrow again in recent months.
At the same time, inflation remains under 2%, as measured by the Consumer
Price Index. Job growth continues to be strong, and the unemployment rate--4.2%
in March--remains at the lowest point in three decades. Yet tight labor markets
have not resulted in higher inflation. A combination of modest increases in
wages and better-than-expected productivity gains has resulted in flat or lower
unit labor costs.
Internationally, many economies continue to show weakness, which has had a
negative effect on U.S. export growth. Exports rose in the fourth quarter of
last year as Asian markets began showing signs of recovery, but the gains were
not sustained in the first quarter of 1999. The introduction of the euro
currency in January has not yet sparked the hoped-for growth in European
economies many analysts expected. The political issues surrounding the
Serbian-Yugoslav crisis may have contributed to the weakness of the euro.
Looking forward, the U.S. economy remains an engine of global growth, with
domestic consumer demand snapping up imports and taking up some of the excess
capacity in slower-growth economies abroad. Advances in corporate productivity
will likely be key to continued low inflation and opportunities for growth in
the economy and the markets.
Respectfully submitted,
/s/David D. Alger
-----------------
David D. Alger
President
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Alger Growth Portfolio:
Schedule of Investments................................. 3
Financial Highlights.................................... 5
Alger Small Capitalization Portfolio:
Schedule of Investments................................. 7
Financial Highlights.................................... 9
Alger Balanced Portfolio:
Schedule of Investments.................................11
Financial Highlights....................................13
Alger MidCap Growth Portfolio:
Schedule of Investments.................................15
Financial Highlights....................................17
Alger Capital Appreciation Portfolio:
Schedule of Investments.................................19
Financial Highlights....................................20
Alger Money Market Portfolio:
Schedule of Investments.................................22
Financial Highlights....................................23
Statements of Assets and Liabilities..........................................24
Statements of Operations......................................................25
Statement of Cash Flows (Alger Capital Appreciation Portfolio)................26
Statements of Changes in Net Assets...........................................27
Notes to Financial Statements.................................................29
<PAGE>
THE ALGER FUND -3-
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
COMMON STOCKS--97.3% SHARES VALUE
------ -----
AIRLINES--.5%
Southwest Airlines Co. ........................... 117,300 $ 3,819,640
------------
AUTOMOTIVE--.5%
Harley Davidson, Inc. ............................ 70,200 4,185,675
------------
BIO-TECHNOLOGY--2.8%
Amgen Inc.* ...................................... 185,100 11,372,174
Biogen Inc.* ..................................... 106,100 10,086,184
------------
21,458,358
------------
BUSINESS SERVICES--3.3%
Ceridian Corp.* .................................. 116,600 4,270,475
Cintas Corp. ..................................... 119,900 8,243,125
IMS Health Inc. .................................. 439,000 13,170,000
------------
25,683,600
------------
CHEMICALS--1.1%
Monsanto Co. ..................................... 183,500 8,303,375
------------
COMMUNICATION
EQUIPMENT--8.6%
Ascend Communications, Inc.* ..................... 199,000 19,228,375
Cisco Systems, Inc.* ............................. 141,575 16,148,469
Corning Inc. ..................................... 148,400 8,495,900
Motorola, Inc. ................................... 277,300 22,218,662
------------
66,091,406
------------
COMMUNICATIONS--12.7%
America Online Inc. .............................. 131,400 18,757,350
Broadcast.com Inc.* .............................. 61,300 7,861,725
Comcast Corp. Cl. A. Special ..................... 173,600 11,403,437
COX Communications Inc. Cl. A.* .................. 43,700 3,468,688
Frontier Corp. ................................... 154,000 8,498,952
MCI Worldcom Inc.* ............................... 262,600 21,582,569
MediaOne Group Inc.* ............................. 152,100 12,405,732
Nextel Communications Inc Cl. A.* ................ 225,400 9,227,425
Qwest Communications
International Inc.* ............................ 52,700 4,502,583
------------
97,708,461
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--3.2%
EMC Corp.* ....................................... 121,600 13,246,860
Sun Microsystems Inc.* ........................... 193,100 11,549,890
------------
24,796,750
------------
COMPUTER SERVICES--3.2%
eBay Inc.* ....................................... 40,100 8,345,813
Excite Inc.* ..................................... 89,100 13,008,600
Yahoo Inc.* ...................................... 20,000 3,493,760
------------
24,848,173
------------
COMPUTER SOFTWARE--5.2%
Intuit Inc.* ..................................... 46,000 3,961,750
Microsoft Corporation* ........................... 442,500 35,981,003
------------
39,942,753
------------
CONGLOMERATE--3.1%
Tyco International Ltd. .......................... 294,794 23,952,013
------------
DRUG DISTRIBUTION--1.4%
Cardinal Health, Inc. ............................ 176,350 10,548,023
------------
ENERGY &
ENERGY SERVICES--.6%
Halliburton Co. .................................. 94,100 4,011,013
------------
FINANCIAL SERVICES--12.9%
American Express Co. ............................. 34,000 4,443,392
Bank of America Corp. ............................ 101,000 7,272,000
Citigroup Inc. ................................... 357,000 26,864,250
Federal Home Loan Mortgage
Corporation .................................... 181,800 11,407,950
Household International Inc. ..................... 326,500 16,427,195
Kansas City Southern Industries Inc. ............. 139,400 8,303,082
Morgan Stanley Dean Witter & Co. ................. 244,500 24,251,466
------------
98,969,335
------------
FOOD CHAINS--6.0%
Fred Meyer, Inc.* ................................ 217,500 11,772,188
Kroger Co.* ...................................... 235,900 12,812,437
Safeway Inc.* .................................... 401,700 21,666,895
------------
46,251,520
------------
INSURANCE--2.4%
American International Group, Inc. ............... 157,261 18,468,417
------------
LEISURE &
ENTERTAINMENT--.9%
Carnival Corp. ................................... 159,500 6,579,375
------------
MEDICAL DEVICES--.5%
Boston Scientific Corp.* ......................... 98,900 4,209,480
------------
PHARMACEUTICALS--5.8%
American Home Products Corp. ..................... 61,000 3,721,000
Pfizer Inc. ...................................... 145,100 16,695,640
SmithKline Beecham PLC-ADS ....................... 119,000 7,816,872
Warner-Lambert Co. ............................... 237,100 16,108,100
------------
44,341,612
------------
POLLUTION CONTROL--3.0%
Waste Management, Inc. ........................... 388,900 21,972,850
------------
<PAGE>
THE ALGER FUND -4-
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
April 30, 1999
COMMON STOCKS--(cont.) SHARES VALUE
------ -----
RETAILING--11.2%
Amazon.com Inc.* ................................. 36,200 $ 6,228,680
Best Buy Company Inc.* ........................... 74,000 3,533,500
CVS Corp. ........................................ 145,800 6,943,725
Costco Companies Inc.* ........................... 141,600 11,460,820
Home Depot, Inc. ................................. 368,100 22,063,178
Office Depot Inc.* ............................... 282,000 6,204,000
Staples Inc.* .................................... 351,000 10,530,000
Wal-Mart Stores Inc. ............................. 408,200 18,777,200
------------
85,741,103
------------
SEMICONDUCTORS--5.6%
Altera Corporation* .............................. 63,500 4,587,875
Intel Corp. ...................................... 138,000 8,443,944
Linear Technology Corporation .................... 152,400 8,667,750
Micron Technology Inc.* .......................... 140,400 5,212,350
Texas Instruments, Incorporated .................. 81,200 8,292,550
Xilinx, Inc.* .................................... 176,400 8,048,250
------------
43,252,719
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--2.8%
Applied Materials Inc.* .......................... 277,300 14,870,213
Teradyne, Inc.* .................................. 136,600 6,445,880
------------
21,316,093
------------
Total Common Stocks
(Cost $617,633,421)(a) ......................... 97.3% 746,451,744
Other Assets in Excess
of Liabilities ................................. 2.7 21,004,120
--- ------------
Net Assets ....................................... 100.0% $767,455,864
===== ============
* Non-income producing security.
(a) At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $617,633,421, amounted to
$128,818,323 which consisted of aggregate gross unrealized appreciation of
$136,135,480 and aggregate gross unrealized depreciation of $7,317,157.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -5-
ALGER GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS B (i)
------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, -----------------------------------------------------------------------
1999(vi)(vii) 1998 1997 1996 1995 1994
------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 12.00 $ 11.50 $ 9.49 $ 9.38 $ 6.97 $ 7.43
-------- -------- -------- -------- -------- --------
Net investment income (loss).............. (.08)(ii) (.11)(ii) (.13) (.08)(ii) (.02) (.07)(ii)
Net realized and unrealized gain (loss)
on investments......................... 3.84 2.10 2.44 .78 2.59 .35
-------- -------- -------- -------- -------- --------
Total from investment operations.......... 3.76 1.99 2.31 .70 2.57 .28
Distributions from net realized gains..... (1.29) (1.49) (.30) (.59) (.16) (.74)
-------- -------- -------- -------- -------- --------
Net asset value, end of period............ $ 14.47 $ 12.00 $ 11.50 $ 9.49 $ 9.38 $ 6.97
======== ======== ======== ======== ======== ========
Total Return (iii)........................ 33.6% 20.5% 24.9% 8.1% 37.8% 4.1%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ..................... $585,823 $390,885 $304,984 $266,207 $154,284 $ 76,390
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets........................... 1.95% 2.00% 2.08% 2.08% 2.09% 2.20%
======== ======== ======== ======== ======== ========
Ratio of net investment income (loss)
to average net assets................ (1.18%) (.98%) (1.13%) (.84%) (1.03%) (1.01%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate................. 126.41% 146.64% 128.26% 94.91% 118.16% 103.86%
======== ======== ======== ======== ======== ========
</TABLE>
- -----------
See footnotes on page 6.
<PAGE>
ALGER GROWTH PORTFOLIO -6-
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (v) CLASS C (iv)
-------------------------------------------------- --------------------------------------------
SIX MONTHS YEAR TEN MONTHS SIX MONTHS YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31,
1999(vi)(vii) 1998 1997(vi) 1999(vi)(vii) 1998 1997(vi)
------------- ---------- ------------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ........... $ 12.19 $ 11.58 $ 9.40 $ 12.00 $ 11.50 $ 11.98
-------- -------- -------- -------- -------- --------
Net investment income (loss) .... (.03)(ii) (.03)(ii) (.02) (.08)(ii) (.11)(ii) (.02)
Net realized and unrealized
gain (loss)on investments ..... 3.91 2.13 2.20 3.83 2.10 (.46)
-------- -------- -------- -------- -------- --------
Total from investment
operations ................... 3.88 2.10 2.18 3.75 1.99 (.48)
Distributions from
net realized gains ........... (1.29) (1.49) -- (1.29) (1.49) --
-------- -------- -------- -------- -------- --------
Net asset value, end of period... $ 14.78 $ 12.19 $ 11.58 $ 14.46 $ 12.00 $ 11.50
======== ======== ======== ======== ======== ========
Total Return (iii) .............. 34.1% 21.4% 23.2% 33.5% 20.5% (4.0%)
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ............. $166,614 $121,930 $ 52,307 $ 15,019 $ 3,312 $ 199
======== ======== ======== ======== ======== ========
Ratio of expenses
to average
net assets .................. 1.20% 1.25% 1.30% 1.96% 2.00% 2.02%
======== ======== ======== ======== ======== ========
Ratio of net investment
income (loss) to
average net assets .......... (.43%) (.23%) (.39%) (1.24%) (.97%) (1.43%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate ....... 126.41% 146.64% 128.26% 126.41% 146.64% 128.26%
======== ======== ======== ======== ======== ========
</TABLE>
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock
split which occurred September 27, 1995.
(ii) Amount was computed based on average shares outstanding during the year.
(iii) Does not reflect the effect of any sales charges.
(iv) Initially offered August 1, 1997.
(v) Initially offered January 1, 1997.
(vi) Ratios have been annualized; total return has not been annualized.
(vii) Unaudited.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -7-
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
COMMON STOCKS--101.3% SHARES VALUE
------ -----
ADVERTISING--2.0%
Outdoor Systems, Inc.* ........................... 287,075 $ 7,230,845
Young & Rubicam Inc.* ............................ 83,800 3,336,329
------------
10,567,174
------------
AIRLINES--1.2%
SkyWest Inc. ..................................... 255,600 6,645,600
------------
AUTOMOTIVE--.8%
Sonic Automotive Inc. Cl. A.* .................... 282,100 4,178,606
------------
BIO-TECHNOLOGY--4.9%
Biogen Inc.* ..................................... 105,000 9,981,615
IDEC Pharmaceuticals Corporation* ................ 84,200 4,273,150
Medimmune Inc.* .................................. 212,700 11,725,088
------------
25,979,853
------------
BROADCASTING--1.6%
Cablevision Systems Corp. Cl. A.* ................ 71,100 5,501,363
Jacor Communications Inc.* ....................... 38,000 3,049,500
------------
8,550,863
------------
BUILDING &
CONSTRUCTION--.4%
Champion Enterprises Inc.* ....................... 118,500 2,199,656
------------
BUSINESS SERVICES--9.3%
Bisys Group Inc.* ................................ 229,300 11,636,975
Ceridian Corp.* .................................. 427,800 15,668,175
Clarify Inc.* .................................... 135,000 3,172,500
FactSet Research Systems Inc. .................... 148,100 6,905,163
Nielsen Media Research Inc.* ..................... 200,800 5,496,900
Rent-Way Inc.* ................................... 132,800 3,618,800
Siebel Systems Inc.* ............................. 88,400 3,397,919
------------
49,896,432
------------
COMMUNICATION
EQUIPMENT--1.7%
Aware Inc.* ...................................... 34,000 1,889,142
Dycom Industries Inc.* ........................... 113,250 5,174,166
L-3 Communications Holdings, Inc.* ............... 43,000 2,098,959
------------
9,162,267
------------
COMMUNICATIONS--3.7%
Broadcast.com Inc.* .............................. 103,700 13,299,525
Com21 Inc.* ...................................... 199,100 6,196,988
------------
19,496,513
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--3.3%
Antec Corp.* ..................................... 252,200 6,840,925
Egghead.com Inc.* ................................ 94,700 1,325,800
Sanmina Corporation*.............................. 145,000 9,624,375
------------
17,791,100
------------
COMPUTER SERVICES--13.8%
CNET Inc.* ....................................... 119,400 $ 15,342,900
eBay Inc.* ....................................... 125,000 26,015,625
Excite Inc.* ..................................... 182,800 26,688,800
QRS Corp.* ....................................... 106,300 5,846,500
------------
73,893,825
------------
COMPUTER SOFTWARE--4.0%
Business Objects-ADS ............................. 74,000 1,734,412
Dendrite International Inc. * .................... 115,000 2,975,625
GeoTel Communications Corp.* ..................... 92,000 5,175,000
Intuit Inc.* ..................................... 130,300 11,222,088
------------
21,107,125
------------
COMPUTER TECHNOLOGY--1.1%
Rambus Inc.* ..................................... 93,600 5,627,700
------------
CONSUMER PRODUCTS--2.8%
Dial Corp. ....................................... 109,000 3,706,000
Furniture Brands International Inc.* ............. 114,500 2,869,714
Mettler-Toledo International Inc.* ............... 220,000 5,747,500
Pittway Corp. Cl. A .............................. 89,000 2,347,375
------------
14,670,589
------------
DRUG DISTRIBUTION--1.0%
AmeriSource Health Corp Cl. A.* .................. 187,800 5,199,806
------------
FINANCIAL SERVICES--7.2%
Commerce Bancshares Inc. ......................... 73,134 2,993,960
Dime Bancorp Inc. ................................ 275,000 6,342,325
Kansas City Southern Industries Inc. ............. 223,500 13,312,330
National Commerce Bancorp ........................ 285,000 7,125,000
North Fork Bancorporation Inc. ................... 169,650 3,817,125
Wilmington Trust Corp. ........................... 81,000 4,976,478
------------
38,567,218
------------
FOODS & BEVERAGES--3.5%
Starbucks Corp.* ................................. 326,600 12,063,950
U.S. Foodservice* ................................ 159,800 6,721,667
------------
18,785,617
------------
MEDICAL DEVICES--1.0%
Biomet Inc. ...................................... 133,500 5,473,500
------------
MEDICAL SERVICES--3.7%
Hooper Holmes Inc. ............................... 239,400 3,815,557
MedQuist Inc.* ................................... 457,900 15,683,075
------------
19,498,632
------------
PHARMACEUTICALS--1.8%
Forest Laboratories, Inc.* ....................... 215,000 9,567,500
------------
<PAGE>
THE ALGER FUND -8-
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1999
COMMON STOCKS--(cont.) SHARES VALUE
------ -----
RESTAURANTS &
LODGING--2.3%
Outback Steakhouse, Inc.* ........................ 346,800 $ 12,419,948
------------
RETAILING--21.2%
Amazon.com Inc.* ................................. 98,000 16,862,174
BJ's Wholesale Club Inc.* ........................ 491,400 13,053,058
Bed Bath & Beyond Inc.* .......................... 416,200 14,853,346
Ethan Allen Interiors Inc. ....................... 247,800 12,560,486
Family Dollar Stores Inc. ........................ 513,000 12,376,125
Linens'n Things Inc.* ............................ 316,200 14,466,150
Mens Wearhouse Inc.* ............................. 85,000 2,326,875
Office Depot Inc.* ............................... 340,500 7,491,000
Tiffany & Co. .................................... 82,800 6,955,200
Tuesday Morning Corp.* ........................... 150,000 2,925,000
Williams Sonoma Inc.* ............................ 327,800 9,506,200
------------
113,375,614
------------
SEMICONDUCTORS--6.9%
Altera Corporation* .............................. 115,000 8,308,750
Broadcom Corp Cl. A.* ............................ 52,000 4,010,500
Maxim Integrated Products, Inc.* ................ 95,000 5,320,000
Microchip Technology Incorporated* ............... 244,300 8,550,500
Xilinx, Inc.* .................................... 236,300 10,781,188
------------
36,970,938
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--1.4%
ASM Lithography Holding NV* ...................... 186,000 7,254,000
PRI Automation, Inc.* ............................ 25,000 620,325
------------
7,874,325
------------
TRANSPORTATION--.7%
Coach USA Inc.* .................................. 149,200 3,543,500
------------
Total Common Stocks
(Cost $412,721,478)(a) ......................... 101.3% 541,043,901
Liabilities in Excess
of Other Assets ................................ (1.3) (6,973,650)
------------
Net Assets ....................................... 100.0% $534,070,251
============
- ----------
* Non-income producing security.
(a) At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $412,721,478, amounted to
$128,322,423 which consisted of aggregate gross unrealized appreciation of
$135,753,362 and aggregate gross unrealized depreciation of $7,430,939.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -9-
ALGER SMALL CAPITALIZATION PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS B (i)
------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, -----------------------------------------------------------------------
1999(v)(vii) 1998 1997 1996 1995 1994
------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 8.61 $ 10.29 $ 10.86 $ 11.13 $ 7.62 $ 8.65
-------- -------- -------- -------- -------- --------
Net investment income (loss)............... (.07)(vi) (.14)(vi) (.11) (.09) (.13) (.09)
Net realized and unrealized gain (loss)
on investments.......................... 2.41 (1.03) 1.28 .42 3.64 (.02)
-------- -------- -------- -------- -------- --------
Total from investment operations........... 2.34 (1.17) 1.17 .33 3.51 (.11)
Distributions from net realized gains...... (1.02) (.51) (1.74) (.60) -- (.92)
-------- -------- -------- -------- -------- --------
Net asset value, end of period............. $ 9.93 $ 8.61 $ 10.29 $ 10.86 $ 11.13 $ 7.62
======== ======== ======== ======== ======== ========
Total Return (ii).......................... 29.5% (11.6%) 12.9% 3.2% 46.2% (1.1%)
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)....................... $479,149 $460,788 $580,651 $553,872 $463,718 $294,890
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets............................ 2.11% 2.12% 2.14% 2.13% 2.11% 2.18%
======== ======== ======== ======== ======== ========
Ratio of net investment income
(loss) to average net assets.......... (1.48%) (1.51%) (1.67%) (1.59%) (1.75%) (1.51%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate.................. 63.56% 157.26% 120.27% 153.35% 97.37% 131.86%
======== ======== ======== ======== ======== ========
</TABLE>
- ----------
See footnotes on page 10.
<PAGE>
THE ALGER FUND -10-
ALGER SMALL CAPITALIZATION PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (IV) CLASS C (III)
--------------------------------------- ---------------------------------------
SIX MONTHS YEAR TEN MONTHS SIX MONTHS YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31,
1999(v)(vii) 1998 1997(v) 1999(v)(vii) 1998 1997(v)
----------- ----------- ----------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .. $ 8.74 $ 10.35 $ 9.21 $ 8.59 $ 10.29 $ 10.38
-------- -------- -------- -------- ------- -------
Net investment income (loss) .......... (.03)(vi) (.06)(vi) (.04) (.07)(vi) (.10)(vi) (.03)
Net realized and unrealized gain
(loss) on investments ................ 2.46 (1.04) 1.18 2.43 (1.09) (.06)
-------- -------- -------- -------- ------- -------
Total from investment operations ...... 2.43 (1.10) 1.14 2.36 (1.19) (.09)
Distributions from net realized gains.. (1.02) (.51) -- (1.02) (.51) --
--------- -------- -------- -------- ------- -------
Net asset value, end of period ........ $ 10.15 $ 8.74 $ 10.35 $ 9.93 $ 8.59 $ 10.29
======== ======== ======== ======== ======= =======
Total Return (ii) ..................... 30.1% (10.9%) 12.4% 29.8% (11.8%) (.9%)
======== ======== ======== ======== ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ................... $ 50,402 $ 59,516 $ 25,996 $ 4,519 $ 4,838 $ 338
======== ======== ======== ======== ======= =======
Ratio of expenses to average
net assets ........................ 1.35% 1.37% 1.38% 2.10% 2.11% 2.09%
======== ======== ======== ======== ======= =======
Ratio of net investment income (loss)
to average net assets ............. (.70%) (.71%) (.93%) (1.42%) (1.36%) (1.71%)
======== ======== ======== ======== ======= =======
Portfolio Turnover Rate ............. 63.56% 157.26% 120.27% 63.56% 157.26% 120.27%
======== ======== ======== ======== ======= =======
</TABLE>
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock
split which occurred September 27, 1995.
(ii) Does not reflect the effect of any sales charges.
(iii) Initially offered August 1, 1997.
(iv) Initially offered January 1, 1997.
(v) Ratios have been annualized; total return has not been annualized.
(vi) Amount was computed based on average shares outstanding during the period.
(vii) Unaudited.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -11-
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
COMMON STOCKS--60.8% SHARES VALUE
------ -----
AIRLINES--.3%
Southwest Airlines Co. ........................... 3,900 $ 126,995
------------
AUTOMOTIVE--.3%
Harley Davidson, Inc. ............................ 2,300 137,138
------------
BIO-TECHNOLOGY--1.8%
Amgen Inc.* ...................................... 6,800 417,778
Biogen Inc.* ..................................... 3,900 370,746
------------
788,524
------------
BUSINESS SERVICES--2.2%
Ceridian Corp.* .................................. 4,500 164,813
Cintas Corp. ..................................... 3,900 268,125
IMS Health Inc. .................................. 16,500 495,000
------------
927,938
------------
CHEMICALS--.7%
Monsanto Co. ..................................... 6,600 298,650
------------
COMMUNICATION
EQUIPMENT--5.4%
Ascend Communications, Inc.* ..................... 6,800 657,050
Cisco Systems, Inc.* ............................. 5,225 595,979
Corning Inc. ..................................... 4,000 229,000
Motorola, Inc. ................................... 10,300 825,288
------------
2,307,317
------------
COMMUNICATIONS--7.9%
America Online Inc. .............................. 5,600 799,400
Broadcast.com Inc.* .............................. 2,300 294,975
Comcast Corp. Cl. A. Special ..................... 6,700 440,110
Frontier Corp. ................................... 5,200 286,978
MCI Worldcom Inc.* ............................... 7,800 641,066
MediaOne Group Inc.* ............................. 5,700 464,909
Nextel Communications Inc Cl. A.* ................ 8,100 331,598
Qwest Communications
International Inc.* ............................ 1,900 162,332
------------
3,421,368
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--2.6%
EMC Corp.* ....................................... 4,000 435,752
International Business Machines Corp. ............ 1,200 251,026
Sun Microsystems Inc.* ........................... 7,100 424,672
------------
1,111,450
------------
COMPUTER SERVICES--1.8%
eBay Inc.* ....................................... 1,500 312,188
Excite Inc.* ..................................... 3,100 452,600
------------
764,788
------------
COMPUTER SOFTWARE--3.4%
Intuit Inc.* ..................................... 1,700 146,413
Microsoft Corporation* ........................... 16,300 1,325,402
------------
1,471,815
------------
CONGLOMERATE--2.4%
Tyco International Ltd. .......................... 12,846 1,043,738
------------
DRUG DISTRIBUTION--.7%
Cardinal Health, Inc. ............................ 5,000 299,065
------------
ENERGY &
ENERGY SERVICES--.4%
Halliburton Co. .................................. 3,600 153,450
------------
FINANCIAL SERVICES--7.3%
American Express Co. ............................. 1,000 130,688
Bank of America Corp. ............................ 3,800 273,600
Citigroup Inc. ................................... 12,000 903,000
Federal Home Loan Mortgage
Corporation .................................... 5,300 332,575
Household International Inc. ..................... 8,200 412,567
Kansas City Southern Industries Inc. ............. 5,000 297,815
Morgan Stanley Dean Witter & Co. ................. 8,000 793,504
------------
3,143,749
------------
FOOD CHAINS--3.8%
Fred Meyer, Inc.* ................................ 8,000 433,000
Kroger Co.* ...................................... 7,300 396,485
Safeway Inc.* .................................... 14,800 798,282
------------
1,627,767
------------
INSURANCE--1.6%
American International Group, Inc. ............... 5,785 679,379
------------
LEISURE &
ENTERTAINMENT--.4%
Carnival Corp. ................................... 4,500 185,625
------------
MEDICAL DEVICES--.3%
Boston Scientific Corp.* ......................... 3,500 148,970
------------
PHARMACEUTICALS--4.1%
American Home Products Corp. ..................... 2,000 122,000
Pfizer Inc. ...................................... 6,100 701,884
SmithKline Beecham PLC-ADS ....................... 4,400 289,027
Warner-Lambert Co. ............................... 9,500 645,411
------------
1,758,322
------------
POLLUTION CONTROL--1.5%
Waste Management, Inc. ........................... 11,200 632,800
------------
RETAILING--6.6%
Amazon.com Inc.* ................................. 1,100 189,269
Best Buy Company Inc.* ........................... 4,400 210,100
CVS Corp. ........................................ 4,900 233,363
Costco Companies Inc.* ........................... 4,400 356,127
Home Depot, Inc. ................................. 11,000 659,318
Office Depot Inc.* ............................... 11,550 254,100
Staples Inc.* .................................... 6,900 207,000
Wal-Mart Stores Inc. ............................. 15,600 717,600
------------
2,826,877
------------
SEMICONDUCTORS--3.6%
Altera Corporation* .............................. 2,100 151,725
Intel Corp. ...................................... 5,100 312,059
Linear Technology Corporation .................... 5,400 307,125
Micron Technology Inc.* .......................... 4,700 174,488
Texas Instruments, Incorporated .................. 3,100 316,588
Xilinx, Inc.* .................................... 6,200 282,875
------------
1,544,860
------------
<PAGE>
THE ALGER FUND -12-
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1999
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
SEMICONDUCTOR
CAPITAL EQUIPMENT--1.9%
Applied Materials Inc.* .......... 10,200 $ 546,975
Teradyne, Inc.* .................. 5,500 259,534
------------
806,509
------------
Total Common Stocks
(Cost $21,035,883) ............. 26,207,094
------------
PRINCIPAL
CORPORATE BONDS--7.4% AMOUNT
AUTOMOTIVE--1.3% ---------
Ford Capital B.V.,
9.50%, 6/1/10 .................. $300,000 370,296
General Motors Acceptance Corp.,
7.125%, 6/1/99 ................. 200,000 200,292
------------
570,588
------------
CONSUMER PRODUCTS
& SERVICES--.8%
Eastman Kodak Co.,
9.20%, 6/1/21 .................. 300,000 347,811
------------
ELECTRIC & GAS
COMPANIES--1.1%
Cincinnati Gas & Electric Co.,
7.20%, 10/1/23 ................. 100,000 100,766
Pacific Gas & Electric Co.,
7.25%, 3/1/26 .................. 182,000 191,207
Potomac Electric Power Co.,
7.00%, 1/15/24 ................. 200,000 199,980
------------
491,953
------------
FINANCIAL SERVICES--2.5%
BankAmerica Corp.,
6.625%, 10/15/07 ............... 200,000 202,890
Bankers Trust Corp.,
7.00%, 3/13/18 ................. 300,000 299,970
Chase Manhattan Corp.,
8.50%, 2/15/02 ................. 200,000 213,698
Citicorp.,
7.125%, 6/1/03 ................. 200,000 208,386
Merrill Lynch & Company Inc.,
6.75%, 4/30/01 ................. 150,000 152,789
------------
1,077,733
------------
INSURANCE--1.2%
Loews Corp.,
7.625%, 6/1/23 ................. 500,000 507,755
------------
POLLUTION CONTROL--.5%
Waste Management Inc.,
8.25%, 11/15/99 ................ 200,000 202,974
------------
Total Corporate Bonds
(Cost $3,289,790) .............. 3,198,814
------------
U.S. Treasury Notes,
6.375%, 1/15/00 ................ 100,000 101,000
7.50%, 5/15/02 ................. 100,000 106,375
6.25%, 2/15/03 ................. 250,000 258,710
Federal Home Loan Bank Corp.,
5.87%, 4/22/03 ................. 300,000 302,994
5.935%, 4/22/05 ................ 400,000 404,036
6.505%, 6/17/08 ................ 300,000 296,811
Federal Home Loan Mortgage Corp.,
7.08%, 3/17/14 ................. 400,000 394,752
Federal Home Loan Mortgage Assoc.,
8.50%, 2/1/05 .................. 100,000 99,990
7.49%, 5/22/07 ................. 250,000 254,143
6.42%, 7/14/08 ................. 300,000 295,077
7.00%, 3/4/13 .................. 600,000 590,622
6.75%, 2/4/28 .................. 400,000 381,124
------------
Total U.S. Government & Agency
Obligations (Cost $3,568,898) .. 3,485,634
------------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS--.6%
U.S. Treasury Bills,
4.50%, 3/2/00
(Cost $240,438) ................ 250,000 242,165
------------
SHORT-TERM CORPORATE NOTES--19.8%
Anheuser Busch & Co. Inc.,
4.69%, 5/10/99 ................. 300,000 299,648
General Electric Capital Corporation,
4.72%, 5/7/99 .................. 1,650,000 1,648,702
Georgia Power Co.,
4.75%, 5/7/99 .................. 800,000 799,367
GTE Funding Inc.,
4.73%, 5/7/99 .................. 1,600,000 1,598,739
Household Finance Corp.,
4.75%, 5/6/99 .................. 2,000,000 1,998,680
National Australia Funding Inc.,
4.77%, 5/13/99 ................. 600,000 599,045
United Airlines First Funding Corp.,
4.81%, 5/13/99 ................. 1,600,000 1,597,435
------------
Total Short-Term Corporate Notes
(Cost $8,541,616) .............. 8,541,616
------------
Total Investments
(Cost $36,676,625)(a) .......... 96.7% 41,675,323
Other Assets in Excess of
Liabilities .................... 3.3 1,400,537
----- ------------
Net Assets ....................... 100.0% $ 43,075,860
===== ============
* Non-income producing security.
(a) At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $36,676,625, amounted to $4,998,698
which consisted of aggregate gross unrealized appreciation of $5,474,001 and
aggregate gross unrealized depreciation of $475,303.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -13-
ALGER BALANCED PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, -----------------------------------------------------------------------
1999(iii)(vii) 1998 1997 1996 1995 1994
------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 16.64 $ 16.48 $ 14.21 $ 13.59 $ 10.65 $ 11.18
-------- -------- -------- -------- -------- --------
Net investment income (loss)............... .02(i) .03(i) -- .12 (.02)(i) (.05)
Net realized and unrealized gain (loss)
on investments.......................... 4.06 2.34 2.67 .72 2.96 (.39)
-------- -------- -------- -------- -------- --------
Total from investment operations........... 4.08 2.37 2.67 .84 2.94 (.44)
-------- -------- -------- -------- -------- --------
Dividends from net investment income....... (.03) (.01) (.06) (.01) -- --
Distributions from net realized gains...... (1.02) (2.20) (.34) (.21) -- (.09)
-------- -------- -------- -------- -------- --------
Total distributions........................ (1.05) (2.21) (.40) (.22) -- (.09)
-------- -------- -------- -------- -------- --------
Net asset value, end of period............. $ 19.67 $ 16.64 $ 16.48 $ 14.21 $ 13.59 $ 10.65
======== ======== ======== ======== ======== ========
Total Return (ii).......................... 25.6% 16.9% 19.3% 6.3% 27.6% (4.0%)
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)....................... $ 30,606 $ 19,282 $ 12,653 $ 13,492 $ 6,214 $ 3,073
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets............................ 2.26% 2.58% 2.89% 2.70% 3.34% 3.18%
======== ======== ======== ======== ======== ========
Decrease reflected in above
expense ratios due to
expense reimbursements (iv)........... -- -- -- -- .24% --
======== ======== ======== ======== ======== ========
Ratio of net investment income
(loss) to average net assets.......... .25% .19% .04% .47% (.13%) (.41%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate.................. 63.75% 93.23% 109.26% 85.51% 84.06% 84.88%
======== ======== ======== ======== ======== ========
</TABLE>
- ----------
See footnotes on page 14.
<PAGE>
THE ALGER FUND -14-
ALGER BALANCED PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (VI) CLASS C (V)
---------------------------------------- ------------------------------------------
SIX MONTHS YEAR TEN MONTHS SIX MONTHS YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31,
1999(iii)(vii) 1998 1997(iii) 1999(iii)(vii) 1998 1997(iii)
-------------- ----------- ----------- -------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 16.83 $ 16.58 $ 13.99 $ 16.66 $ 16.49 $ 16.88
------- ------- ------- ------- ------- -------
Net investment income (loss) ...... .09(i) .16(i) .05 .02(i) .04(i) (.01)
Net realized and unrealized gain
(loss) on investments ........... 4.11 2.35 2.54 4.07 2.33 (.38)
------- ------- ------- ------- ------- -------
Total from investment operations .. 4.20 2.51 2.59 4.09 2.37 (.39)
------- ------- ------- ------- ------- -------
Dividends from net investment
income .......................... (.08) (.06) -- (.01) -- --
Distributions from net realized
gains ........................... (1.02) (2.20) -- (1.02) (2.20) --
------- ------- ------- ------- ------- -------
Total distributions ............... (1.10) (2.26) -- (1.03) (2.20) --
------- ------- ------- ------- ------- -------
Net asset value, end of period .... $ 19.93 $ 16.83 $ 16.58 $ 19.72 $ 16.66 $ 16.49
======= ======= ======= ======= ======= =======
Total Return (ii) ................. 26.1% 17.7% 18.5% 25.6% 16.8% (2.31%)
======= ======= ======= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ............... $ 6,386 $ 1,354 $ 459 $ 6,084 $ 334 $ 48
======= ======= ======= ======= ======= =======
Ratio of expenses to average
net assets .................... 1.51% 1.79% 2.10% 2.28% 2.53% 2.77%
======= ======= ======= ======= ======= =======
Ratio of net investment income
(loss) to average net assets .. .98% .98% .72% .20% .23% (.84%)
======= ======= ======= ======= ======= =======
Portfolio Turnover Rate ......... 63.75% 93.23% 109.26% 63.75% 93.23% 109.26%
======= ======= ======= ======= ======= =======
</TABLE>
(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of any sales charges.
(iii) Ratios have been annualized; total return has not been annualized.
(iv) Represents expense reimbursements made pursuant to applicable state
expense limits.
(v) Initially offered August 1, 1997.
(vi) Initially offered January 1, 1997.
(vii) Unaudited.
<PAGE>
THE ALGER FUND -15-
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
COMMON STOCKS--91.4% SHARES VALUE
------- -------
ADVERTISING--.1%
Young & Rubicam Inc.* ........... 7,000 $ 278,691
------------
AIRLINES--.5%
Southwest Airlines Co. .......... 43,700 1,423,003
------------
APPAREL--.5%
Tommy Hilfiger Corporation* ..... 17,000 1,187,875
------------
AUTOMOTIVE--1.4%
Harley Davidson, Inc. ........... 60,600 3,613,275
------------
BIO-TECHNOLOGY--2.0%
Biogen Inc.* .................... 54,400 5,171,427
------------
BUILDING &
CONSTRUCTION--.9%
Champion Enterprises Inc.* ...... 138,500 2,570,906
------------
BUSINESS SERVICES--11.7%
Ceridian Corp.* ................. 158,000 5,786,750
Cintas Corp. .................... 131,500 9,040,625
Fiserv Inc.* .................... 109,400 6,406,792
IMS Health Inc. ................. 251,000 7,530,000
Siebel Systems Inc.* ............ 54,700 2,102,559
------------
30,866,726
------------
COMMUNICATION
EQUIPMENT--.9%
Corning Inc. .................... 42,300 2,421,675
------------
COMMUNICATIONS--7.8%
Broadcast.com Inc.* ............. 49,900 6,399,675
COX Communications Inc. Cl. A.* . 41,000 3,254,375
Frontier Corp. .................. 169,200 9,337,810
Global Telesystems Group Inc.* .. 24,000 1,587,000
------------
20,578,860
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--2.6%
Quantum Corp.* .................. 212,000 3,789,500
Sanmina Corporation* ............ 44,900 2,980,238
------------
6,769,738
------------
COMPUTER SERVICES--5.1%
CNET Inc.* ...................... 53,000 6,810,500
eBay Inc.* ...................... 13,900 2,892,938
Excite Inc.* .................... 24,600 3,591,600
------------
13,295,038
------------
COMPUTER SOFTWARE--3.1%
Intuit Inc.* .................... 95,500 8,224,938
------------
COMPUTER
TECHNOLOGY--1.7%
Rambus Inc.* .................... 73,900 4,443,238
------------
CONSUMER PRODUCTS--.5%
Furniture Brands
International Inc.* ........... 50,700 1,270,694
FINANCIAL SERVICES--7.1%
Charter One Financial Inc. ...... 82,200 2,568,750
Dime Bancorp Inc. ............... 151,000 3,482,513
Golden State Bancorp Inc.* ...... 60,000 1,473,780
Kansas City Southern Industries
Inc. .......................... 106,700 6,355,372
Paine Webber Group Inc. ......... 99,900 4,689,106
------------
18,569,521
------------
FOOD CHAINS--2.5%
Fred Meyer, Inc.* ............... 123,000 6,657,375
------------
FOODS & BEVERAGES--4.6%
Starbucks Corp.* ................ 219,400 8,104,197
U.S. Foodservice* ............... 97,000 4,080,111
------------
12,184,308
------------
PAPER PACKAGING &
FOREST PRODUCTS--1.6%
Sealed Air Corp.* ............... 67,500 4,104,878
------------
PHARMACEUTICALS--5.7%
Agouron Pharmaceuticals Inc.* ... 111,300 6,573,712
Forest Laboratories, Inc.* ...... 187,700 8,352,650
------------
14,926,362
------------
RESTAURANTS & LODGING--4.0%
Outback Steakhouse, Inc.* ....... 240,250 8,604,073
Papa John's International Inc.* . 49,000 1,969,212
------------
10,573,285
------------
RETAILING--12.6%
Abercrombie & Fitch Co., Cl. A.* 27,300 2,596,913
Amazon.com Inc.* ................ 12,000 2,064,756
Bed Bath & Beyond Inc.* ......... 169,000 6,031,272
Best Buy Company Inc.* .......... 85,200 4,068,300
Family Dollar Stores Inc. ....... 50,000 1,206,250
Gucci Group N.V ................. 119,800 9,037,471
Office Depot Inc.* .............. 253,000 5,566,000
Williams Sonoma Inc.* ........... 85,900 2,491,100
------------
33,062,062
------------
SEMICONDUCTORS--10.2%
Altera Corporation* ............. 57,100 4,125,475
Linear Technology Corporation ... 118,100 6,716,938
Maxim Integrated Products, Inc.* 49,000 2,744,000
Microchip Technology Incorporated* 173,300 6,065,500
Xilinx, Inc.* ................... 155,600 7,099,250
------------
26,751,163
------------
SEMICONDUCTOR
CAPITAL EQUIPMENT--3.5%
Applied Materials Inc.* ......... 37,800 2,027,025
ASM Lithography Holding NV* ..... 30,600 1,193,400
Teradyne, Inc.* ................. 129,500 6,110,845
------------
9,331,270
------------
TRANSPORTATION--.8%
Coach USA Inc.* ................. 89,500 2,125,625
------------
Total Common Stocks
(Cost $218,342,955) ............. 240,401,933
------------
<PAGE>
THE ALGER FUND -16-
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1999
SHORT-TERM CORPORATE PRINCIPAL
NOTES--8.2% AMOUNT VALUE
-------- -------
Anheuser Busch & Co. Inc.,
4.69%, 5/10/99 ....................... $ 2,250,000 $ 2,247,362
Exxon Asset Management Corp.,
4.72%, 5/6/99 ........................ 5,800,000 5,796,198
Ford Motor Credit Company,
4.75%, 5/4/99 ........................ 1,300,000 1,299,485
General Electric Capital Corporation,
4.72%, 5/7/99 ........................ 3,700,000 3,697,089
General Motors Acceptance Corporation,
4.80%, 5/10/99 ....................... 4,400,000 4,394,720
Georgia Power Co.,
4.75%, 5/7/99 ........................ 900,000 899,288
United Parcel Service of America Inc.,
4.69%, 5/5/99 ........................ 3,200,000 3,198,332
------------
Total Short-Term Corporate Notes
(Cost $21,532,474) ................... 21,532,474
------------
Total Investments
(Cost $239,875,429)(a) ............... 99.6% 261,934,407
Other Assets In Excess Of Liabilities .. .4 992,830
----- ------------
Net Assets ............................. 100.0% $262,927,237
====== ============
* Non-income producing security.
a) At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $239,875,429, amounted to $22,058,978
which consisted of aggregate gross unrealized appreciation of $29,534,858 and
aggregate gross unrealized depreciation of $7,475,880.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -17-
ALGER MIDCAP GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ---------------------------------------------------
1999(i)(vii) 1998 1997 1996 1995 1994
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 20.89 $ 22.33 $ 18.87 $ 18.94 $ 12.77 $ 12.48
------- ------- ------- -------- ------- -------
Net investment income (loss).................. (.15)(ii) (.29)(ii) (.29) (.25)(ii) (.08) (.11)
Net realized and unrealized gain (loss)
on investments............................. 5.30 1.31 4.23 1.35 6.25 .68
------- ------- ------- -------- ------- -------
Total from investment operations.............. 5.15 1.02 3.94 1.10 6.17 .57
Distributions from net realized gains......... (2.93) (2.46) (.48) (1.17) -- (.28)
------- ------- ------- -------- ------- --------
Net asset value, end of period................ $ 23.11 $ 20.89 $ 22.33 $ 18.87 $ 18.94 $ 12.77
======= ======= ======= ======== ======= ========
Total Return (iii)............................ 27.5% 6.2% 21.4% 6.4% 48.3% 4.7%
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted).......................... $218,279 $191,934 $166,475 $125,686 $54,016 $ 18,516
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets............................... 2.07% 2.10% 2.19% 2.27% 2.39% 3.20%
======== ======= ======= ======== ======= ========
Decrease reflected in above
expense ratios due to
expense reimbursements (iv).............. -- -- -- -- -- .07%
======== ======= ======= ======== ======= ========
Ratio of net investment income
(loss) to average net assets............. (1.41%) (1.38%) (1.58%) (1.33%) (1.71%) (2.32%)
======== ======= ======= ======== ======= ========
Portfolio Turnover Rate..................... 127.33% 180.98% 160.09% 113.95% 121.60% 127.40%
======== ======= ======= ======== ======= ========
</TABLE>
- --------------
See footnotes on page 18.
<PAGE>
THE ALGER FUND -18-
ALGER MIDCAP GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
Class A (vi) Class C (v)
-----------------------------------------------------------------------------------
Six Months Year Ten Months Six Months Year Three Months
Ended Ended Ended Ended Ended Ended
April 30, October 31, October 31, April 30, October 31, October 31,
1999(i)(vii) 1998 1997(i) 1999(i)(vii) 1998 1997(i)
----------- ---------- ----------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ...................... $ 21.21 $ 22.46 $ 18.92 $ 20.86 $ 22.33 $ 22.49
-------- ------- ------- ------- ------- -------
Net investment income (loss) ..... (.06)(ii) (.10)(ii) (.10) (.16)(ii) (.28)(ii) (.03)
Net realized and unrealized gain
(loss) on investments .......... 5.36 1.31 3.64 5.30 1.27 (.13)
-------- ------- ------- ------- ------- -------
Total from investment operations.. 5.30 1.21 3.54 5.14 .99 (.16)
Distributions from net realized
gains ......................... (2.93) (2.46) -- (2.93) (2.46) --
-------- ------- ------- ------- ------- -------
Net asset value, end of period ... $ 23.58 $ 21.21 $ 22.46 $ 23.07 $ 20.86 $ 22.33
======== ======= ======= ======= ======= =======
Total Return (iii) ............... 27.8% 7.2% 18.7% 27.5% 6.1% (.7%)
======== ======= ======= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) .............. $ 39,993 $ 32,447 $ 5,436 $ 4,655 $ 1,759 $ 84
======== ======= ======= ======= ======= =======
Ratio of expenses to average
net assets ................... 1.30% 1.34% 1.40% 2.08% 2.08% 1.97%
======== ======= ======= ======= ======= =======
Ratio of net investment income
(loss) to average net assets.. (.59%) (.53%) (.83%) (1.45%) (1.26%) (1.55%)
======== ======= ======= ======= ======= =======
Portfolio Turnover Rate ........ 127.33% 180.98% 160.09% 127.33 180.98% 160.09%
======== ======= ======= ======= ======= =======
</TABLE>
(i) 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 the effect of any sales charges.
(iv) Represents expense reimbursements made pursuant to applicable state
expense limits.
(v) Initially offered August 1, 1997.
(vi) Initially offered January 1, 1997.
(vii) Unaudited.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -19-
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
COMMON STOCKS--106.6% SHARES VALUE
ADVERTISING--.6% ------ ------
Outdoor Systems, Inc.* ............ 115,000 $ 2,896,620
------------
BIO-TECHNOLOGY--2.0%
Amgen Inc.* ....................... 158,000 9,707,204
------------
BROADCASTING--2.3%
Cablevision Systems Corp. Cl. A.* . 142,000 10,987,250
------------
BUSINESS SERVICES--2.1%
IMS Health Inc. ................... 341,900 10,257,000
------------
COMMUNICATION
EQUIPMENT--7.7%
Ascend Communications, Inc.* ...... 59,500 5,749,188
Cisco Systems, Inc.* .............. 183,750 20,959,076
Motorola, Inc. .................... 130,000 10,416,250
------------
37,124,514
------------
COMMUNICATIONS--18.4%
America Online Inc. ............... 159,900 22,825,725
Broadcast.com Inc.* ............... 77,000 9,875,250
Comcast Corp. Cl. A. Special ...... 206,000 13,531,728
COX Communications Inc. Cl. A.* ... 169,500 13,454,063
MCI Worldcom Inc.* ................ 118,700 9,755,716
Nextel Communications Inc. Cl. A.* 183,000 7,491,654
Qwest Communications
International, Inc.* ............ 74,500 6,365,131
RealNetworks Inc.* ................ 25,500 5,648,250
------------
88,947,517
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--6.8%
EMC Corp.* ........................ 117,000 12,745,746
Sun Microsystems Inc.* ............ 338,000 20,216,794
------------
32,962,540
------------
COMPUTER SERVICES--15.7%
CNET Inc.* ........................ 98,000 12,593,000
eBay Inc.* ........................ 135,800 28,263,375
Excite Inc.* ...................... 106,600 15,563,600
Yahoo Inc.* ....................... 110,600 19,320,493
------------
75,740,468
------------
COMPUTER SOFTWARE--5.4%
Intuit Inc.* ...................... 68,500 5,899,563
Microsoft Corporation* ............ 247,400 20,116,836
------------
26,016,399
------------
CONGLOMERATE--3.7%
Tyco International Ltd. ........... 219,434 17,829,013
------------
FINANCIAL SERVICES--8.3%
Citigroup Inc. .................... 216,500 16,291,625
Kansas City Southern
Industries Inc. ................ 170,100 10,131,666
Morgan Stanley Dean Witter & Co. .. 137,500 13,638,350
------------
40,061,641
------------
FOOD CHAINS--2.5%
Fred Meyer, Inc.* ................. 70,000 3,788,750
Kroger Co.* ....................... 65,000 3,530,345
Safeway Inc.* ..................... 85,000 4,584,730
------------
11,903,825
------------
INSURANCE--1.3%
American International Group, Inc.. 55,000 6,459,090
------------
PHARMACEUTICALS--4.0%
Pfizer Inc. ....................... 126,200 14,520,951
Schering-Plough Corporation ....... 102,400 4,947,251
------------
19,468,202
------------
RETAILING--17.5%
Amazon.com Inc.* .................. 163,800 28,183,918
Best Buy Company Inc.* ............ 93,000 4,440,750
Costco Companies Inc.* ............ 132,000 10,683,816
Home Depot, Inc. .................. 275,000 16,482,950
Office Depot Inc.* ................ 396,000 8,712,000
Staples Inc.* ..................... 128,475 3,854,250
Wal-Mart Stores Inc. .............. 261,000 12,006,000
------------
84,363,684
------------
SEMICONDUCTORS--4.7%
Altera Corporation* ............... 50,000 3,612,500
Broadcom Corp. Cl. A.* ............ 45,000 3,470,625
Linear Technology Corporation ..... 40,000 2,275,000
Texas Instruments, Incorporated ... 50,000 5,106,250
Xilinx, Inc.* ..................... 175,000 7,984,375
------------
22,448,750
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--3.6%
Applied Materials Inc.* ........... 193,500 10,376,437
ASM Lithography Holding NV* ....... 72,000 2,808,000
Teradyne, Inc.* ................... 90,500 4,270,514
------------
17,454,951
------------
Total Common Stocks
(Cost $389,094,164)(a) ............ 106.6% 514,628,668
Liabilities in Excess of Other
Assets .......................... (6.6) (31,899,475)
----- ------------
Net Assets ........................ 100.0% $482,729,193
===== ============
* Non-income producing security.
(a) At April 30, 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $389,094,164, amounted to
$125,534,504 which consisted of aggregate gross unrealized appreciation of
$131,974,693 and aggregate gross unrealized depreciation of $6,440,189.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -20-
ALGER CAPITAL APPRECIATION PORTFOLIO (i)(ii)
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------------------------
1999(VII)(IX) 1998 1997 1996 1995 1994
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.90 $ 8.67 $ 7.21 $ 6.21 $ 3.70 $ 3.33
----------- ----------- ----------- ------------ --------- ---------
Net investment income (loss)....... (.09)(iii) (.13)(iii) (.11) (.11)(iii) (0.16)(iii) (0.16)
Net realized and unrealized gain (loss)
on investments.................. 4.39 .90 1.62 1.29 2.67 .53
----------- ----------- ----------- ------------ -------- ---------
Total from investment operations... 4.30 .77 1.51 1.18 2.51 .37
Distributions from net realized gains (.84) (.54) (.05) (.18) -- --
----------- ----------- ----------- ------------ -------- --------
Net asset value, end of year....... $ 12.36 $ 8.90 $ 8.67 $ 7.21 $ 6.21 $ 3.70
=========== =========== =========== =========== ======== =========
Total Return (iv).................. 51.7% 9.9% 21.0% 19.5% 67.6% 11.1%
=========== =========== =========== =========== ======== =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)............... $ 396,017 $ 242,941 212,895 $ 150,258 $ 33,640 $ 2,369
=========== =========== =========== =========== ======== =========
Ratio of expenses excluding
interest to average net assets 2.10% 2.19% 2.27% 2.44% 3.26% 4.13%
=========== =========== =========== =========== ======== =========
Ratio of expenses including interest
to average net assets......... 2.22% 2.26% 2.38% 2.46% 3.54% 5.53%
=========== =========== =========== =========== ======== =========
Decrease reflected in above
expense ratios due to expense
reimbursements (v)............ -- -- -- -- -- .85%
=========== =========== =========== =========== ======== =========
Ratio of net investment income
(loss) to average net assets.. (1.70%) (1.48%) (1.72%) (1.61%) (3.02%) (5.12%)
=========== =========== =========== =========== ======== ========
Portfolio Turnover Rate.......... 89.75% 184.07% 157.63% 162.37% 197.65% 231.99%
=========== =========== =========== =========== ======== =========
Amount of debt outstanding at end
of period..................... $45,550,000 -- -- $ 7,700,000 -- $ 651,000
=========== =========== =========== =========== ======== =========
Average amount of debt outstanding
during the period............. $ 7,903,519 $ 2,814,493 $ 2,940,097 $ 239,966 $ 293,153 $406,864
=========== =========== =========== =========== ==-====== =========
Average daily number of portfolio
shares outstanding during the
period........................ 35,417,760 29,012,853 23,217,597 14,556,858 1,629,810 575,028
=========== =========== =========== =========== ========== ========
Average amount of debt per portfolio
share during the period....... $ 0.22 $ 0.10 $ 0.13 $ 0.02 $ 0.18 $ 0.71
=========== =========== =========== =========== ========== ========
</TABLE>
- -------------
See footnotes on page 21.
<PAGE>
THE ALGER FUND -21-
ALGER CAPITAL APPRECIATION PORTFOLIO (i)(ii)
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (VII) CLASS C (VI)
--------------------------------------------- -------------------------------------------
SIX MONTHS YEAR TEN MONTHS SIX MONTHS YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31,
1999(viii)(ix) 1998 1997 (viii 1999(viii)(ix) 1998 1997 (viii)
------------- ------------ ----------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 9.03 $ 8.72 $ 7.20 $ 8.90 $ 8.67 $ 9.22
------------- ---------- ----------- ----------- ---------- ----------
Net investment income (loss) ......... (.05)(iii) (.05)(iii) (.03) (.09)(iii) (.12)(iii) (.02)
Net realized and unrealized gain
(loss) on investments ............. 4.46 .90 1.55 4.39 .89 (.53)
------------- ---------- ----------- ----------- ---------- ----------
Total from investment operations ..... 4.41 .85 1.52 4.30 .77 (.55)
Distributions from net realized gains. (.84) (.54) -- (.84) (.54) --
------------- ---------- ----------- ----------- ---------- ----------
Net asset value, end of period ....... $ 12.60 $ 9.03 $ 8.72 $ 12.36 $ 8.90 $ 8.67
============= ========== =========== =========== =========== ==========
Total Return (iv) .................... 52.2% 10.7% 21.2% 51.7% 9.9% (6.0%)
============= ========== =========== =========== =========== ==========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) .................. $ 67,863 $ 54,415 $ 15,572 $ 18,849 $ 2,967 $ 631
============= ========== =========== =========== =========== ==========
Ratio of expenses excluding interest
to average net assets ............ 1.31% 1.42% 1.45% 2.08% 2.18% 2.18%
============ ========== =========== =========== =========== ==========
Ratio of expenses including interest
to average net assets ............ 1.43% 1.49% 1.53% 2.20% 2.25% 2.25%
============ ========== =========== =========== =========== ==========
Ratio of net investment income (loss)
to average net assets ............ (.92%) (.67%) (.85%) (1.72%) (1.46%) (1.80%)
============ ========== =========== =========== =========== ===========
Portfolio Turnover Rate ............ 89.75% 184.07% 157.63% 89.75% 184.07% 157.63%
============ ========== =========== =========== =========== ===========
Amount of debt outstanding
at end of period ................. $ 45,550,000 -- -- $45,550,000 -- --
============ ========== =========== =========== =========== ===========
Average amount of debt
outstanding during the period .... $ 7,903,519 $2,814,493 $ 2,940,097 $ 7,903,519 $ 2,814,493 $ 2,940,097
============ ========== =========== =========== =========== ===========
Average daily number of
portfolio shares outstanding
during the period ................ 35,417,760 29,012,853 23,217,597 35,417,760 29,012,853 23,217,597
============ ========== =========== =========== =========== ===========
Average amount of debt per
portfolio share during
the period ...................... $ 0.22 $ 0.10 $ 0.13 $ 0.22 $ 0.10 $ 0.13
============ ========== =========== =========== =========== ===========
</TABLE>
(i) Prior to March 27, 1995, the Alger Capital Appreciation Portfolio was
the Alger Leveraged AllCap Portfolio.
(ii) Per share data has been adjusted to reflect the effect of a 3 for 1 stock
split which occurred on January 8, 1999.
(iii) Amount was computed based on average shares outstanding during the
period.
(iv) Does not reflect the effect of any sales charges.
(v) Represents expense reimbursements made pursuant to applicable state
expense limits.
(vi) Initially offered August 1, 1997.
(vii) Initially offered January 1, 1997.
(viii) Ratios have been annualized; total return has not been annualized.
(ix) Unaudited.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -22-
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
SHORT-TERM CORPORATE PRINCIPAL
NOTES--46.4% AMOUNT VALUE
AUTOMOTIVE EQUIPMENT ---------- ------
& SERVICES--4.0%
Ford Motor Credit Company,
4.75%, 6/17/99 ......................... $ 5,000,000 $ 4,970,312
General Motors Acceptance Corporation,
4.77%, 7/22/99 ......................... 8,500,000 8,409,900
------------
13,380,212
------------
BANKS--8.5 %
Banco BCN Barclays (Bahamas) Ltd.,
4.87%, 5/7/99 .......................... 8,000,000 7,995,670
Caisse Centrale Des Jardins Du Quebec,
4.80%, 7/6/99 .......................... 3,900,000 3,866,720
Generale Bank Inc.,
4.77%, 5/4/99 .......................... 8,000,000 7,998,940
Merita North America Inc.,
4.75%, 6/3/99 .......................... 8,000,000 7,967,278
------------
27,828,608
------------
BEVERAGES--2.5%
Coca-Cola Co. (The),
4.79%, 5/13/99 ......................... 8,150,000 8,139,156
------------
COMMUNICATIONS--2.3%
Repsol International Finance B.V.,
4.81%, 10/12/99 .......................... 7,600,000 7,435,500
------------
ELECTRONICS--4.9%
General Electric Capital Corporation,
4.76%, 7/15/99 ......................... 8,000,000 7,922,782
Hitachi America, LTD.,
4.85%, 6/15/99 ......................... 8,000,000 7,953,656
------------
15,876,438
------------
ENERGY & ENERGY SERVICES--6.1%
Allegheny Energy,
4.83%, 8/3/99 .......................... 8,100,000 8,000,019
Bay State Gas Company,
4.78%, 5/18/99 ......................... 4,000,000 3,992,033
Total,
4.84%, 6/2/99 .......................... 8,000,000 7,967,733
------------
19,959,785
------------
FINANCE--7.0%
Corporacion Andina de Fomento,
4.83%, 5/7/99 .......................... 1,300,000 1,299,302
Household Finance Corporation,
4.75%, 7/19/99 ......................... 6,000,000 5,939,042
Merrill Lynch & Co., Inc.,
4.78%, 7/19/99 ......................... 7,750,000 7,670,765
Montauk Funding Corporation,
4.85%, 6/9/99 .......................... 8,000,000 7,960,122
------------
22,869,231
------------
INSURANCE--2.4%
USAA Capital Corporation,
4.77%, 5/28/99 ......................... 8,000,000 7,973,500
------------
LEISURE & ENTERTAINMENT--2.4%
Walt Disney Company (The),
4.75%, 11/4/99 ......................... 8,000,000 7,804,722
------------
RETAILing--2.4%
Southland Corporation,
4.83%, 8/5/99 .......................... 8,000,000 7,899,107
------------
TRANSPORTATION--1.5%
United Parcel Service of America, Inc.,
4.69%, 5/27/99 ......................... 4,900,000 4,884,680
------------
UTILITIES--2.4%
National Rural Utilities Coop ............
Finance Corporation,
4.75%, 5/21/99 ......................... 8,000,000 7,981,000
------------
Total Short-Term Corporate Notes
(Cost $152,031,939) .................... 152,031,939
------------
CERTIFICATES OF DEPOSIT--2.4%
Banco Espirito Santo e Commercial,
de Lisboa, 4.77%, 6/28/99
(Cost $7,940,640) ...................... 8,000,000 7,940,640
------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS--60.1%
Federal Farm Credit Bank Discount Notes,
4.80%, 5/3/99 .......................... 54,000,000 54,000,000
Federal Home Loan Mortgage
Corporation Discount Notes,
4.82%, 5/3/99 ......................... 42,500,000 42,500,000
World Bank Corporation
Discount Notes,
4.82%, 5/3/99 .......................... 100,000,000 100,000,000
------------
Total U.S. Government & Agency
Obligations
(Cost $196,500,000) .................... 196,500,000
------------
Total Investments
(Cost $356,472,579)(a) ................. 108.9% 356,472,579
Liabilities In Excess of Other Assets .... (8.9) (29,250,910)
------------
Net Assets ............................... 100.0% $327,221,669
------------
<PAGE>
(a) At April 30, 1999, 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>
THE ALGER FUND -23-
ALGER MONEY MARKET PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30,------------------------------------------------------
1999(i) 1998 1997 1996 1995 1994
--------- ---- ---- ---- ---- ----
<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......................... .0206 .0476 .0479 .0521 .0573 .0374
Dividends from net investment income ......... (.0206) (.0476) (.0479) (.0521) (.0573) (.0374)
-------- -------- -------- -------- -------- --------
Net asset value, end of period................ $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return.................................. 2.1% 4.9% 4.9% 5.3% 5.9% 3.8%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)..........................$ 327,222 $ 172,862 $ 179,407 $ 285,702 $ 185,822 $ 163,170
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets....... .79% .76% .81% .41% .29% .27%
======== ======== ======== ======== ======== ========
Decrease reflected in above
expense ratios due to
management fee waivers.................. -- -- -- .38% .50% .50%
======== ======== ======== ======== ======== ========
Ratio of net investment income
to average net assets................... 4.11% 4.84% 4.76% 5.18% 5.73% 3.78%
======== ======== ======== ======== ======== ========
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -24-
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share amounts) (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
ASSETS: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investments in securities, at value
(identified cost*)-see accompany-
ing schedules of investments ......... $746,452 $541,044 $41,675 $261,934 $514,629 $356,473
Cash .................................... 214 59 55 42 79 718
Receivable for investment securities sold 54,280 11,069 762 4,433 6,578 --
Receivable for shares of beneficial
interest sold........................ 5,665 12,383 1,211 14,413 11,281 983
Dividends and interest receivable........ 176 70 135 18 84 --
Prepaid expenses......................... 34 18 17 38 34 25
-------- -------- ------- -------- -------- --------
Total Assets......................... 806,821 564,643 43,855 280,878 532,685 358,199
-------- -------- ------- -------- -------- --------
LIABILITIES:
Payable for investment
securities purchased.................. 15,269 14,609 692 15,398 1,823 --
Bank loan payable........................ 21,600 11,750 -- -- 45,550 --
Payable for shares of beneficial
interest redeemed..................... 1,209 3,079 1 2,060 1,479 30,598
Interest payable......................... 36 88 1 30 225 7
Accrued investment management fees....... 498 404 26 180 366 122
Accrued distribution fees ............... 384 314 22 145 267 --
Accrued shareholder servicing fees....... 166 119 9 56 108 --
Dividends payable-Note 2(c).............. -- -- -- -- -- 50
Accrued expenses......................... 203 210 28 82 138 200
-------- -------- ------- -------- -------- --------
Total Liabilities.................... 39,365 30,573 779 17,951 49,956 30,977
-------- -------- ------- -------- -------- --------
NET ASSETS ............................. $767,456 $534,070 $43,076 $262,927 $482,729 $327,222
======== ======== ======= ======== ======== ========
Net Assets Consist of:
Paid-in capital....................... $508,951 $375,012 $34,241 $194,914 $298,879 $327,296
Undistributed net investment
income (accumulated loss)........... (14,390) (46,808) (17) (8,518) (11,811) --
Undistributed net realized
gain (accumulated loss)............. 144,076 77,544 3,853 54,472 70,126 (74)
Net unrealized appreciation............ 128,819 128,322 4,999 22,059 125,535 --
-------- -------- ------- ------- -------- --------
NET ASSETS .............................. $767,456 $534,070 $43,076 $262,927 $482,729 $327,222
======== ======== ======= ======== ======== ========
Class A
Net Asset Value Per Share.............. $ 14.78 $ 10.15 $ 19.93 $ 23.58 $ 12.60 --
======== ======== ======= ======== ======== ========
Offering Price Per Share............... $ 15.52 $ 10.66 $ 20.92 $ 24,76 $ 13.23 --
======== ======== ======= ======== ======== ========
Class B
Net Asset Value and Offering Price
Per Share $ 14.47 $ 9.93 $ 19.67 $ 23.11 $ 12.36 $ 1.00
======== ======== ======= ======== ======== ========
Class C
Net Asset Value and Offering Price
Per Share $ 14.46 $ 9.93 $ 19.72 $ 23.07 $ 12.36 --
======== ======== ======= ======== ======== ========
Shares of beneficial interest
outstanding-Note 6
Class A................................ 11,275 4,968 320 1,695 5,384 --
======== ======== ======= ======== ======== ========
Class B................................ 40,485 48,247 1,556 9,448 32,048 327,296
======== ======== ======= ======== ======== ========
Class C................................ 1,038 455 309 202 1,526 --
======== ======== ======= ======== ======== ========
*Identified cost........................ $617,633 $412,721 $36,677 $239,875 $389,094 $356,473
======== ======== ======= ======== ======== ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -25-
STATEMENTS OF OPERATIONS (in thousands) (Unaudited)
For the six months ended April 30, 1999
<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 ............................. $ 1,332 $ 547 $ 37 $ 219 $ 446 $ --
Interest .............................. 1,209 1,206 333 580 535 6,391
-------- -------- ------ ------- -------- ------
Total Income........................... 2,541 1,753 370 799 981 6,391
Expenses:
Management fees-Note 3(a).............. 2,481 2,323 111 963 1,635 652
Distribution fees-Note 3(b):
Class B............................. 1,868 1,804 92 776 1,183 --
Class C 27 19 7 11 27 --
Shareholder servicing fees-Note 3(f) 827 683 37 301 481 --
Interest on line of credit utilized-Note 5 36 88 1 30 225 7
Custodian fees 45 37 9 19 26 29
Transfer agent fees and
expenses-Note 3(e)................... 423 503 39 192 359 232
Professional fees ...................... 13 10 9 13 9 10
Trustees' fees .......................... 3 3 3 3 3 3
Registration fees ....................... 69 15 11 19 47 85
Miscellaneous.......................... 68 66 3 44 26 10
-------- -------- ------ ------- -------- ------
Total Expenses......................... 5,860 5,551 322 2,371 4,021 1,028
-------- -------- ------ ------- -------- ------
NET INVESTMENT
INCOME (LOSS)......................... (3,319) (3,798) 48 (1,572) (3,040) 5,363
-------- -------- ------ ------- -------- ------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments.. 141,414 59,555 3,880 49,374 61,755 --
Net change in unrealized appreciation
(depreciation) on investments.......... 36,408 84,661 2,013 8,707 88,979 --
-------- -------- ------ ------- -------- ------
Net realized and unrealized
gain (loss) on investments............. 177,822 144,216 5,893 58,081 150,734 --
-------- -------- ------ ------- -------- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............. $174,503 $140,418 $5,941 $56,509 $147,694 $5,363
======== ======== ====== ======= ======== ======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -26-
ALGER CAPITAL APPRECIATION PORTFOLIO
Statement of Cash Flows (in thousands) (Unaudited)
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
Increase (decrease) in cash:
Cash flows from operating activities:
Dividends received ......................................................... $ 443
Interest received .......................................................... 535
Interest paid .............................................................. (5)
Operating expenses paid .................................................... (3,478)
Purchase of investment securities .......................................... (453,408)
Purchase of short-term securities, net ..................................... 42,707
Proceeds from disposition of investment securities ......................... 341,918
---------
Other ...................................................................... (8)
---------
Net cash used in operating activities .................................. (71,296)
Cash flows from financing activities:
Dividends paid ............................................................. (24,752)
Proceeds from shares sold and dividends reinvested ......................... 1,325,260
Payments on shares redeemed ................................................ (1,274,815)
Increase in bank loan payable .............................................. 45,550
---------
Net cash provided by financing activities ............................ 71,243
---------
Net decrease in cash ........................................................... (53)
Cash--beginning of period ...................................................... 132
---------
Cash--end of period ............................................................ $ 79
=========
Reconciliation of net increase in net assets to net cash used in operating
activities:
Net increase in net assets resulting from operations ..................... $ 147,694
Increase in investments .................................................. (64,762)
Increase in dividends receivable ......................................... (3)
Decrease in receivable for investment securities sold .................... 4,748
Decrease in payable for investment securities purchased .................. (8,769)
Net realized gain ........................................................ (61,755)
Net increase in unrealized appreciation .................................. (88,979)
Increase in accrued expenses and other liabilities ....................... 538
Net increase in other assets ............................................ (8)
---------
Net cash used in operating activities ................................ $ (71,296)
=========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -27-
STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited)
For the six months ended April 30, 1999
<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) .................... $ (3,319) $ (3,798) $ 48 $ (1,572) $ (3,040) $ 5,363
Net realized gain on investments ................ 141,414 59,555 3,880 49,374 61,755 --
Net change in unrealized appreciation
(depreciation) on investments ................ 36,408 84,661 2,013 8,707 88,979 --
--------- --------- --------- --------- --------- ----------
Net increase in net assets
resulting from operations ................ 174,503 140,418 5,941 56,509 147,694 5,363
--------- --------- --------- --------- --------- ----------
Dividends and distributions to shareholders from:
Net investment income
Class A ..................................... -- -- (7) -- -- --
Class B ..................................... -- -- (31) -- -- (5,363)
Net realized gains
Class A ..................................... (12,572) (5,621) (101) (2,780) (3,154) --
Class B ..................................... (40,774) (49,513) (1,123) (24,072) (21,244) --
Class C ..................................... (432) (236) (34) (331) (354) --
--------- --------- --------- --------- --------- ----------
Total dividends and distributions to shareholders (53,778) (55,370) (1,296) (27,183) (24,752) (5,363)
--------- --------- --------- --------- --------- ----------
Increase (decrease) from shares of beneficial
interest transactions:
Class A ..................................... 15,999 (19,817) 4,514 3,465 (8,064) --
Class B ..................................... 103,918 (55,068) 7,443 1,379 53,549 154,360
Class C ..................................... 10,687 (1,235) 5,504 2,617 13,979 --
--------- --------- --------- --------- --------- ----------
Net increase (decrease) from shares of
beneficial interest transactions-Note 6 ........ 130,604 (76,120) 17,461 7,461 59,464 154,360
--------- --------- --------- --------- --------- ----------
Total increase ............................ 251,329 8,928 22,106 36,787 182,406 154,360
Net Assets:
Beginning of period .......................... 516,127 525,142 20,970 226,140 300,323 172,862
--------- --------- --------- --------- --------- ----------
End of period ................................ $ 767,456 $ 534,070 $ 43,076 $ 262,927 $ 482,729 $ 327,222
========= ========= ========= ========= ========= =========
Undistributed net investment
income (accumulated loss) .................... $ (14,390) $ (46,808) $ (17) $ (8,518) $ (11,811) --
========= ========= ========= ======== ========= ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -28-
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
For the year ended October 31, 1998
<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)............ $ (3,409) $ (7,991) $ 39 $ (2,520) $ (3,613) $ 10,813
Net realized gain on investments......... 52,782 60,965 1,229 29,077 28,168 6
Net change in unrealized appreciation
(depreciation) on investments......... 31,157 (86,096) 1,416 (10,808) 6,353 --
-------- -------- -------- -------- ------- -------
Net increase (decrease) in net assets
resulting from operations......... 80,530 (33,122) 2,684 15,749 30,908 10,819
-------- -------- -------- -------- ------- -------
Dividends and distributions to shareholders from:
Net investment income
Class A.............................. -- -- (2) -- -- --
Class B.............................. -- -- (9) -- -- (10,813)
Net realized gains
Class A.............................. (10,089) (1,188) (64) (574) (880) --
Class B.............................. (36,412) (27,136) (1,780) (18,402) (13,178) --
Class C.............................. (54) (25) (7) (19) (62) --
-------- -------- -------- -------- ------- -------
Total dividends and distributions to
shareholders (46,555) (28,349) (1,862) (18,995) (14,120) (10,813)
-------- -------- -------- -------- ------- -------
Increase (decrease) from shares of beneficial
interest transactions:
Class A.............................. 60,108 35,329 825 22,940 33,947 --
Class B.............................. 61,703 (59,944) 5,891 32,756 18,172 (6,551)
Class C.............................. 2,851 4,243 272 1,695 2,318 --
-------- -------- -------- -------- ------- -------
Net increase (decrease) from shares of
beneficial interest
transactions-Note 6................. 124,662 (20,372) 6,988 57,391 54,437 (6,551)
-------- -------- -------- -------- ------- -------
Total increase (decrease).......... 158,637 (81,843) 7,810 54,145 71,225 (6,545)
Net Assets:
Beginning of year..................... 357,490 606,985 13,160 171,995 229,098 179,407
-------- -------- ------- -------- -------- --------
End of year........................... $516,127 $525,142 $20,970 $226,140 $300,323 $172,862
======== ======== ======= ======== ======== ========
Undistributed net investment
income (accumulated loss)............ $ (11,071) $ (43,010) $ (27) $ (6,946) $ (8,771) --
========= ========= ======= ======== ======== ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -29-
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1- General:
The Alger Fund (the "Fund") is a diversified, open-end registered
investment company organized as a business trust under the laws of the
Commonwealth of Massachusetts. The Fund operates as a series company currently
issuing an unlimited number of shares of beneficial interest in six
portfolios--Growth Portfolio, Small Capitalization Portfolio, Balanced
Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio and Money
Market Portfolio (the "Portfolios"). The Growth Portfolio, Small Capitalization
Portfolio, MidCap Growth Portfolio and Capital Appreciation Portfolio normally
invest primarily in equity securities and each has an investment objective of
long-term capital appreciation. The Balanced Portfolio's investment objectives
are current income and long-term capital appreciation which it seeks to achieve
through investing in equity and fixed income securities. The Money Market
Portfolio's investment objective is high current income which it seeks to
achieve by investing in short-term instruments.
Each Portfolio, other than the Money Market Portfolio, offers Class A,
Class B and Class C shares. Class A and Class C shares were first offered on
January 1, 1997 and August 1, 1997, respectively. Class A shares are generally
subject to an initial sales charge while Class B and Class C shares are
generally subject to a deferred sales charge. Class B and Class C shares will
automatically convert to Class A shares eight and twelve years, respectively,
after the end of the calendar month in which the order to purchase was accepted.
The conversion is completed without the imposition of any sales charges or other
fees. Each class has identical rights to assets and earnings except that only
Class B and Class C shares have plans of distribution and bear the related
expenses.
NOTE 2- Significant Accounting Policies:
(a) INVESTMENT VALUATION: Investments of the Portfolios, other than the Money
Market Portfolio, are valued on each day the New York Stock Exchange (the
"NYSE") is open as of the close of the NYSE (normally 4:00 p.m. Eastern time).
Listed and unlisted securities for which such information is regularly reported
are valued at the last reported sales price or, in the absence of reported
sales, at the mean between the bid and asked price or, in the absence of a
recent bid or asked price, the equivalent as obtained from one or more of the
major market makers for the securities to be valued.
Securities for which market quotations are not readily available are valued
at fair value, as determined in good faith pursuant to procedures established by
the Board of Trustees.
The 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.
Each class is treated separately in determining the amounts of dividends of
net investment income and distributions of capital gains payable to holders of
its shares.
(d) FEDERAL INCOME TAXES: It is each Portfolio's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its investment company taxable
<PAGE>
THE ALGER FUND -30-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
income to its shareholders. Provided a Portfolio maintains such compliance, no
federal income tax provision is required. Each Portfolio is treated as a
separate entity for the purpose of determining such compliance. At October 31,
1998, the net capital loss carryforwards of the Money Market Portfolio which may
be used to offset future net realized gains were approximately $72,000, and
expire between 1999 and 2005.
(e) ALLOCATION METHODS: The Fund accounts separately for the assets, liabilities
and operations of each Portfolio. Expenses directly attributable to each
Portfolio are charged to that Portfolio's operations; expenses which are
applicable to all Portfolios are allocated among them. Income, realized and
unrealized gains and losses, and expenses of each Portfolio, other than the
Money Market Portfolio, are allocated among the Portfolio's classes based on
relative net assets, with the exception of distribution fees, which are only
applicable to Class B and Class C shares.
(f) OTHER: These financial statements have been prepared using estimates and
assumptions that affect the reported amounts therein. Actual results may differ
from those estimates.
NOTE 3- Investment Management Fees and Other Transactions with Affiliates:
(a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the
provisions of its Investment Management Agreement with Fred Alger Management,
Inc. ("Alger Management"), are payable monthly and are computed based on the
value of the average daily net assets of each Portfolio at the following annual
rates:
Growth Portfolio............................ .75%
Small Capitalization Portfolio.............. .85
Balanced Portfolio.......................... .75
MidCap Growth Portfolio..................... .80
Capital Appreciation Portfolio.............. .85
Money Market Portfolio...................... .50
(b) DISTRIBUTION FEES: Class B Shares--The Fund has adopted an Amended and
Restated Plan of Distribution pursuant to which Class B shares of each
Portfolio, other than the Money Market Portfolio, reimburse Fred Alger &
Company, Incorporated, the Fund's distributor (the "Distributor"), for costs and
expenses incurred by the Distributor in connection with advertising, marketing
and selling the Class B shares. The distribution fee is not to exceed an annual
rate of .75% of the respective average daily net assets of the Class B shares of
the designated Portfolios. If in any month, the costs incurred by the
Distributor relating to the Class B shares are in excess of the distribution
fees charged to the Class B shares of the Portfolios, the excess may be carried
forward, with interest, and sought to be reimbursed in future periods. As of
April 30, 1999, such excess carried forward was approximately $11,187,000,
$15,859,000, $416,000, $3,668,000 and $3,449,000 for Class B shares of 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 of Class
B shares will reduce the amount of distribution expenses for which reimbursement
may be sought. See Note 3(c) below.
Class C Shares--The Fund has adopted a Distribution Plan pursuant to which Class
C shares of each Portfolio, other than the Money Market Portfolio, pay the
Distributor a fee at the annual rate of .75% of the respective average daily net
assets of the Class C shares of the designated Portfolios to compensate the
Distributor for its activities and expenses incurred in distributing the Class C
shares. The fees charged may be more or less than the expenses incurred by the
Distributor.
(c) SALES CHARGES: The purchases and sales of shares of the Portfolios, other
than the Money Market Portfolio, may be subject to initial sales charges or
contingent deferred sales charges. For the six months ended April 30, 1999, the
initial sales charges and contingent deferred sales charges retained by the
Distributor were
<PAGE>
THE ALGER FUND -31-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
approximately $71,000 and $1,415,000, respectively. The contingent deferred
sales charges are used by the Distributor to offset distribution expenses
previously incurred. Sales charges do not represent expenses of the Fund.
(d) BROKERAGE COMMISSIONS: During the six months ended April 30, 1999, the
Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio,
the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the
Distributor commissions of $1,032,926, $463,381, $23,214, $420,900 and $399,736,
respectively, in connection with securities transactions.
(e) TRANSFER AGENT FEES AND EXPENSES: Alger Shareholder Services, Inc. ("Alger
Services"), an affiliate of Alger Management, serves as transfer agent for the
Fund. During the six months ended April 30, 1999, 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 $372,077, $435,850, $35,197, $178,780, $339,550 and $189,954,
respectively, for services provided by Alger Services. In addition, during the
six months ended April 30, 1999, 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
$51,360, $66,700, $4,068, $13,100, $19,200 and $42,120, respectively, for
transfer agent related expenses paid by Alger Services on behalf of the
Portfolios.
(f) SHAREHOLDER SERVICING FEES: The Fund has entered into a shareholder
servicing agreement with the Distributor whereby the Distributor provides each
Portfolio, other than the Money Market Portfolio, with ongoing servicing of
shareholder accounts. As compensation for such services, each designated
Portfolio pays the Distributor a monthly fee at an annual rate equal to .25% of
each Portfolio's average daily net assets. (g) OTHER TRANSACTIONS WITH
AFFILIATES: Certain trustees and officers of the Fund are directors and officers
of Alger Management, the Distributor and Alger Services.
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, 1999 (in
thousands):
PURCHASES SALES
--------- -----
Growth Portfolio......... $904,520 $781,388
Small Capitalization
Portfolio.............. 317,216 353,753
Balanced Portfolio....... 24,410 15,831
MidCap Growth
Portfolio.............. 284,531 301,392
Capital Appreciation
Portfolio.............. 444,639 337,181
NOTE 5- Lines of Credit:
The Fund has both committed and uncommitted lines of credit with banks. All
borrowings have variable interest rates and are payable on demand. With the
exception of the Capital Appreciation Portfolio, the Fund borrows under such
lines of credit exclusively for temporary or emergency purposes.
The Capital Appreciation Portfolio may borrow under these lines up to 1/3
of the value of its assets, as defined, to purchase additional securities. To
the extent the Capital Appreciation Portfolio borrows under these lines, it must
pledge securities with a total value of at least twice the amount borrowed. For
the six months ended April 30, 1999, the Capital Appreciation Portfolio had
borrowings which averaged $7,903,519 at a weighted average interest rate of
5.65%.
<PAGE>
THE ALGER FUND -32-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Note 6- Share Capital:
The Fund has an unlimited number of authorized shares of beneficial interest of
$.001 par value which are presently divided into six series. Each series, other
than the Money Market Portfolio, is divided into three separate classes. The
transactions of shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Growth Portfolio
Class A:
Shares sold..................... 29,736,906 $ 411,582,117 21,100,549 $ 251,594,946
Shares converted from Class B... 525,213 7,176,976 2,515,306 28,918,933
Dividends reinvested............ 676,360 8,211,015 1,012,458 9,861,339
Shares redeemed................. (29,664,486) (410,970,811) (19,143,051) (230,266,858)
------------ ------------- ---------- ------------
Net increase ................... 1,273,993 $ 15,999,297 5,485,262 $ 60,108,360
============ ============= ========== ============
Class B:
Shares sold..................... 47,891,013 $652,140,499 32,510,335 $ 378,490,196
Dividends reinvested 3,233,151 38,571,496 3,613,386 34,869,174
Shares converted to Class A..... (534,045) (7,176,976) (2,536,424) (28,918,933)
Shares redeemed................. (42,678,839) (579,616,684) (27,523,316) (322,737,781)
------------ ------------- ---------- ------------
Net increase.................... 7,911,280 $ 103,918,335 6,063,981 $ 61,702,656
============ ============= ========== ============
Class C:
Shares sold..................... 904,334 $12,715,997 921,931 $ 11,159,179
Dividends reinvested............ 29,615 353,009 5,128 49,487
Shares redeemed................. (171,549) (2,381,750) (668,318) (8,358,166)
------------ ------------- ---------- ------------
Net increase.................... 762,400 $ 10,687,256 258,741 $ 2,850,500
============ ============= ========== ============
Alger Small Capitalization Portfolio
Class A:
Shares sold..................... 70,330,374 $ 671,718,357 61,503,618 $ 589,789,058
Shares converted from Class B... 686,846 6,659,506 1,666,233 16,755,718
Dividends reinvested............ 571,350 4,845,050 120,213 1,097,543
Shares redeemed................. (73,430,810) (703,039,968) (58,990,985) (572,313,304)
------------ ------------- ---------- ------------
Net increase (decrease)......... (1,842,440) (19,817,055) 4,299,079 $ 35,329,015
============ ============= ========== ============
Class B:
Shares sold..................... 148,680,496 $1,393,599,298 176,830,341 $1,671,198,375
Dividends reinvested............ 5,742,442 47,777,113 2,899,072 26,265,587
Shares converted to Class A..... (699,097) (6,659,506) (1,684,647) (16,755,718)
Shares redeemed................. (159,017,888) (1,489,784,462) (180,951,992) (1,740,652,109)
------------ ------------- ---------- ------------
Net (decrease).................. (5,294,047) $ (55,067,557) (2,907,226) $ (59,943,865)
============ ============= ========== ============
Class C:
Shares sold..................... 4,007,422 $ 37,335,904 2,997,520 $ 28,283,527
Dividends reinvested............ 21,996 182,783 2,485 22,515
Shares redeemed................. (4,136,942) (38,753,486) (2,469,935) (24,063,272)
------------ ------------- ---------- ------------
Net increase (decrease)......... (107,524) $ (1,234,799) 530,070 $ 4,242,770
============ ============= ========== ============
</TABLE>
<PAGE>
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Balanced Portfolio
Class A:
Shares sold..................... 443,665 $ 8,358,818 140,560 $ 2,276,674
Shares converted from Class B... 2,348 43,933 7,838 120,962
Dividends reinvested............ 5,413 91,866 4,622 65,126
Shares redeemed................. (211,457) (3,980,785) (100,269) (1,638,040)
------------ ------------ ---------- ------------
Net increase.................... 239,969 $ 4,513,832 52,751 $ 824,722
============ ============ ========== ============
Class B:
Shares sold..................... 2,046,010 $ 38,014,780 710,530 $ 11,206,494
Dividends reinvested............ 64,040 1,075,875 122,289 1,714,490
Shares converted to Class A..... (2,376) (43,933) (7,894) (120,962)
Shares redeemed................. (1,710,480) (31,603,555) (433,903) (6,908,568)
------------ ------------ ---------- ------------
Net increase.................... 397,194 $ 7,443,167 391,022 $ 5,891,454
============ ============ ========== ============
Class C:
Shares sold..................... 303,657 $ 5,805,082 21,158 $ 335,495
Dividends reinvested............ 1,551 26,116 473 6,646
Shares redeemed................. (16,752) (327,106) (4,478) (70,500)
------------ ------------ ---------- ------------
Net increase.................... 288,456 $ 5,504,092 17,153 $ 271,641
============ ============ ========== ============
Alger MidCap Growth Portfolio Class A:
Shares sold..................... 24,374,038 $546,605,781 17,759,678 $373,805,169
Shares converted from Class B... 19,716 452,512 30,842 653,860
Dividends reinvested............ 131,312 2,575,026 28,826 526,934
Shares redeemed................. (24,360,922) (546,168,429) (16,530,334) (352,045,613)
------------ ------------ ---------- ------------
Net increase.................... 164,144 $ 3,464,890 1,289,012 $ 22,940,350
============ ============ ========== ============
Class B:
Shares sold..................... 11,318,908 $247,977,593 9,670,177 $202,901,737
Dividends reinvested............ 1,126,031 21,676,093 952,240 17,273,632
Shares converted to Class A..... (20,112) (452,512) (31,165) (653,860)
Shares redeemed................. (12,164,168) (267,822,510) (8,858,104) (186,765,967)
------------ ------------ ---------- ------------
Net increase.................... 260,659 $ 1,378,664 1,733,148 $ 32,755,542
============ ============ ========== ============
Class C:
Shares sold..................... 172,092 $3,818,306 253,315 $ 5,217,737
Dividends reinvested............ 13,611 261,599 761 13,810
Shares redeemed................. (68,224) (1,462,430) (173,525) (3,536,369)
------------ ------------ ---------- ------------
Net increase.................... 117,479 $ 2,617,475 80,551 $ 1,695,178
============ ============ ========== ============
</TABLE>
<PAGE>
THE ALGER FUND -34-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Capital Appreciation Portfolio
Class A:*
Shares sold..................... 69,483,009 $ 769,922,263 58,266,912 $ 523,464,891
Shares converted from Class B... 75,248 905,503 192,120 1,760,871
Dividends reinvested............ 316,690 2,952,608 109,140 843,296
Shares redeemed................. (70,518,750) (781,843,698) (54,325,476) (492,122,233)
-------------- -------------- -------------- --------------
Net increase (decrease)......... (643,803) $ (8,063,524) 4,242,696 $ 33,946,825
============== ============== ============== ==============
Class B:*
Shares sold..................... 48,092,999 $ 527,370,681 64,598,964 $ 569,383,745
Dividends reinvested............ 2,154,183 19,746,682 1,625,283 12,460,510
Shares converted to Class A..... (76,657) (905,503) (194,292) (1,760,871)
Shares redeemed................. (45,428,894) (492,663,075) (63,290,757) (561,910,894)
-------------- -------------- -------------- --------------
Net increase.................... 4,741,631 $ 53,548,785 2,739,198 $ 18,172,490
============== ============== ============== ==============
Class C:*
Shares sold..................... 1,473,915 $ 15,291,211 1,671,939 $ 14,867,062
Dividends reinvested............ 25,529 233,926 6,093 46,713
Shares redeemed................. (85,012) (1,546,160) (1,417,251) (12,595,276)
-------------- -------------- -------------- --------------
Net increase.................... 1,414,432 $13,978,977 260,781 $ 2,318,499
============== ============== ============== ==============
Alger Money Market Portfolio
Shares sold..................... 4,011,972,134 $4,011,972,134 3,890,533,124 $3,890,533,124
Dividends reinvested............ 4,222,554 4,222,554 8,949,498 8,949,498
Shares redeemed................. (3,861,834,646) (3,861,834,646) (3,906,034,069) (3,906,034,069)
-------------- -------------- -------------- --------------
Net increase (decrease)......... 154,360,042 $ 154,360,042 (6,551,447) $ (6,551,447)
============== ============== ============== ==============
</TABLE>
- ---------------
* Adjusted to reflect the effect of a 3 for 1 stock split which occurred on
January 8, 1999.
<PAGE>
The Alger Fund
1 World Trade Center
Suite 9333
New York, N.Y. 10048
(800) 992-3863
www.algerfund.com
- ---------------------------
Board of Trustees
Fred M. Alger, CHAIRMAN
David D. Alger
Arthur M. Dubow
Stephen E. O'Neil
Nathan E. Saint-Amand
John T. Sargent
B. Joseph White
- ---------------------------
Investment Manager
Fred Alger Management, Inc.
1 World Trade Center
Suite 9333
New York, N.Y. 10048
- ---------------------------
Distributor
Fred Alger & Company, Incorporated
30 Montgomery Street
Jersey City, N.J. 07302
- ---------------------------
Transfer Agent
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, N.J. 07302
- ---------------------------
This report is submitted for the general information of the shareholders of The
Alger Fund. It is not authorized for distribution to prospective investors
unless accompanied by an effective Prospectus for the Fund, which contains
information concerning the Fund's investment policies, fees and expenses as well
as other pertinent information. REP49
================================================================================
THE |
| MEETING THE CHALLENGE
ALGER | OF INVESTING
|
FUND |
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, 1999
REPORT | (Unaudited)
|
|
================================================================================
