FELLOW SHAREHOLDERS:
November 24, 1999
THE YEAR IN REVIEW
As 1999 draws to a close, investors may look back on this decade as one of
remarkable opportunity. From January 1, 1990 through October 31, 1999, the value
of the U.S. stock market rose nearly 393%, as measured by the S&P 500. The
current economic boom has lasted 101 months, one month short of the record for
this century. And the lengthy economic expansion, combined with relatively low
interest rates and low inflation, has contributed to an unprecedented four
consecutive years of 20%-plus returns for stock investors, with few significant
corrections along the way.
The last two years have seen an increase in day-to-day volatility, more in
line with longer term norms. This trend continued in 1999, driven by concerns
over the stability of global financial systems and the shorter term outlook for
U.S. interest rates.
Year to date, 1999 has again generated double-digit returns for stock
investors, with the S&P 500 up 12.03% from January through the end of October.
Strong economic growth -- a 3.7% rise in GDP in the first quarter -- contributed
to the Dow Jones Industrial Average's push above all records to close above
10,000 in March. From May to July, the Dow traded in the 11,000 range before
falling back on fears of higher interest rates and concerns that stocks had
become overvalued. During the second quarter, concerns about potential inflation
increased as unemployment remained at its lowest levels since 1970. While core
inflation remained in the 2% range, oil prices began rising early in the year
and had nearly doubled by July. This was largely a political rather than a true
supply/demand effect and has not had a broad effect on market prices, yet it
bears watching in coming months.
Concerns about potential increases in core inflation led the Federal
Reserve to adopt a tightening bias during the second quarter. In the following
months, the Federal Open-Market Committee twice raised short-term interest rates
to forestall potential increases in inflation. In the bond markets higher
interest rates pushed prices lower, particularly at the short and long ends of
the maturity spectrum.
In this environment, market gains in the first quarter of 1999 were led by
the large-cap, blue-chip growth companies, as investors sought a sense of
security in the wake of 1998's Asian currency crisis and Russian debt default.
As recovery in Asia became more certain, the second quarter saw a resurgence of
interest in smaller-cap issues. Small-cap value stocks turned in the best
results and large-cap growth stocks turned in the worst.
The third quarter of 1999 saw an overall decline in domestic stocks. The
S&P 500 fell 6.25%, while the S&P MidCap 400 Index dropped 8.40%.
Small-capitalization stocks, as measured by the Russell 2000 Growth Index, fared
slightly better, falling 4.91% during the same quarter. Overall, growth stocks
again outperformed value stocks. Factors affecting the market's performance in
the third quarter included the potential impact on earnings of technology
companies from the earthquake in Taiwan and continued uncertainty about interest
rates. Entering the fourth quarter, there were gains in October with the S&P 500
returning 6.33%, led by a recovery in technology stocks. The technology-laden
Nasdaq 100 rose 9.54% for the month.
PORTFOLIO MATTERS
By maintaining a focus on bottom-up stock selection in a market environment
that evidenced clear biases toward certain segments of the market, all of The
Alger Fund's Portfolios outperformed their benchmarks for the 12 months ended
October 31, 1999.
ALGER SMALL CAPITALIZATION PORTFOLIO
For the fiscal year ended October 31, 1999, the Alger Small Capitalization
Portfolio returned 32.09%, outperforming the Russell 2000 Growth Index, which
rose 29.29% during the same period. Small-cap stocks were harder hit by last
year's global financial crisis and trailed larger issues through the first
quarter, moving into positive terrority at the end of March and through the
second quarter before falling back somewhat during the third quarter. Some of
the Fund's positions in communications and technology stocks contributed
substantially to the Portfolio's strong performance.
<PAGE>
ALGER GROWTH PORTFOLIO
For the fiscal year ended October 31, 1999, the Alger Growth Portfolio
gained 39.32% compared to a 25.67% rise in the benchmark S&P 500. The Portfolio
benefited from the market's preference for large, blue-chip stocks through the
first quarter, with the technology and health care sectors -- well-represented
among the Portfolio's holdings -- leading the large-cap growth stock surge. In
the second half of the fiscal year higher energy prices adversely affected the
results of the energy-dependent transportation sector while rising interest
rates had a negative impact on the financial sector, but the Portfolio was not
heavily invested in these areas.
ALGER MIDCAP GROWTH PORTFOLIO
The Alger MidCap Growth Portfolio returned 32.33% for the fiscal year
ended October 31, 1999 compared to 21.07% for the benchmark S&P MidCap 400.
Midcap stocks as a group benefited during the second quarter from the market's
rotation away from larger issues, with technology stocks leading the resurgence.
High employment and strong economic growth favored the Portfolio's holdings in
retail and consumer stocks.
ALGER BALANCED PORTFOLIO
The Alger Balanced Portfolio posted a 31.49% gain for the 12 months ended
October 31, 1999, comparing very favorably to the S&P 500 Index return of 25.67%
and the Lehman Brothers Government/Corporate Bond Index of -0.65%. As is often
the case, stock and bond markets moved in opposite directions through much of
1999, providing diversification benefits to portfolios invested in both asset
classes. Careful security selection and judicious weighting of the Balanced
Portfolio's allocation between stock and fixed-income investments contributed to
the Portfolio's outperforming its benchmarks.
ALGER CAPITAL APPRECIATION PORTFOLIO
During the 12 months ended October 31, 1999, the Alger Capital Appreciation
Portfolio gained 62.99% compared to the S&P 500's rise of 25.67%. The
Portfolio's weightings in high-performing technology, Internet and
communications, and retail stocks helped it to outperform its benchmark index by
a wide margin.
LOOKING AHEAD
The Alger Fund's Portfolios are managed to pursue their investment
objectives by applying an investment philosophy which we at Fred Alger
Management believe will serve investors well as we enter the next millennium.
Changing demographics, new technologies, and ever-increasing sophistication in
the financial markets will create new opportunities in the decades to come.
Through rigorous fundamental research, coupled with advanced analytic
capabilities, we will continue to seek out companies that offer investors the
potential for superior returns.
Respectfully submitted,
/s/ DAVID D. ALGER
- -------------------
David D. Alger
President
<PAGE>
TABLE OF CONTENTS
Alger Growth Portfolio:
Portfolio Highlights.............................................. 4
Schedule of Investments........................................... 5
Financial Highlights.............................................. 7
Alger Small Capitalization Portfolio:
Portfolio Highlights.............................................. 9
Schedule of Investments...........................................10
Financial Highlights..............................................12
Alger Balanced Portfolio:
Portfolio Highlights..............................................14
Schedule of Investments...........................................15
Financial Highlights..............................................18
Alger MidCap Growth Portfolio:
Portfolio Highlights..............................................20
Schedule of Investments...........................................21
Financial Highlights..............................................23
Alger Capital Appreciation Portfolio:
Portfolio Highlights..............................................25
Schedule of Investments...........................................26
Financial Highlights..............................................28
Alger Money Market Portfolio:
Schedule of Investments...........................................30
Financial Highlights..............................................32
Statements of Assets and Liabilities.........................................33
Statements of Operations.....................................................34
Statement of Cash Flows (Alger Capital Appreciation Portfolio)...............35
Statements of Changes in Net Assets..........................................36
Notes to Financial Statements................................................38
Report of Independent Public Accountants ....................................44
<PAGE>
ALGER GROWTH PORTFOLIO
PORTFOLIO HIGHLIGHTS THROUGH OCTOBER 31, 1999 (UNAUDITED)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS B SHARES - 10 YEARS ENDED 10/31/99
[The following table represents a chart in the printed piece]
ALGER GROWTH S&P 500
11/1/89 10000 10000
9600 9252
10/31/91 13997 12351
15350 13583
10/31/93 19827 15612
20636 16215
10/31/95 28431 20504
30729 25444
10/31/97 38459 33617
46694 41007
10/31/99 65541 51533
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Alger Growth Class B shares and the S&P 500 Index for the
ten years ended October 31, 1999. Figures for both the Alger Growth Class B
shares and the S&P 500 Index, an unmanaged index of common stocks, include
reinvestment of dividends. Performance for the Alger Growth Class A and Class C
shares will vary from the results shown above due to differences in expenses and
sales charges those classes bear.
Performance Comparison as of 10/31/99+
<TABLE>
<CAPTION>
Average Annual Total Returns
1 5 10 Since
Year Years Years Inception
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (Inception 1/1/97) 33.69% * * 27.71%
S&P 500 Index 25.67% * * 25.92%
- -------------------------------------------------------------------------------------------------
Class B (Inception 11/11/86) 34.32% 25.42% 20.68% 18.14%
S&P 500 Index 25.67% 26.02% 17.82% 17.24%
- -------------------------------------------------------------------------------------------------
Class C (Inception 8/1/97) 38.23% * * 23.57%
S&P 500 Index 25.67% * * 18.88%
</TABLE>
The Portfolio's average annual total returns include changes in share price and
reinvestment of dividends and capital gains. Past performance does not guarantee
future results. Investment return and principal will fluctuate and the
Portfolio's shares, when redeemed, may be worth more or less than their original
cost.
+ RETURNS REFLECT MAXIMUM INITIAL SALES CHARGES ON CLASS A SHARES AND APPLICABLE
CONTINGENT DEFERRED SALES CHARGES ON CLASS B AND CLASS C SHARES.
The Alger Fund ALGER GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS October 31, 1999
4
<PAGE>
THE ALGER FUND
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1999
COMMON STOCKS--87.6% Shares Value
------- ---------
ADVERTISING--9%
Omnicom Group Inc.............. 105,100 $ 9,248,800
------------
AEROSPACE--3.8%
AlliedSignal Inc.............. 304,700 17,348,856
United Technologies Corp....... 363,500 21,991,750
------------
39,340,606
------------
AUTOMOTIVE--.9%
Harley Davidson, Inc........... 63,000 9,667,938
------------
BIO-TECHNOLOGY--2.1%
Amgen Inc.*.................... 213,600 17,034,600
Biogen Inc.*................... 54,100 4,010,163
------------
21,044,763
------------
BROADCASTING--.5%
Clear Channel
Communications Inc.* ........ 63,300 5,087,738
------------
BUILDING &
CONSTRUCTION--.4%
Masco Corp..................... 144,800 4,416,400
------------
BUSINESS SERVICES--1.2%
IMS Health Inc................. 439,000 12,731,000
------------
COMMUNICATION
EQUIPMENT--7.1%
Cisco Systems, Inc.*........... 428,150 31,683,100
Corning Inc.................... 273,400 21,496,075
Motorola, Inc.................. 197,500 19,243,906
------------
72,423,081
------------
COMMUNICATIONS--12.0%
America Online Inc.*........... 288,900 37,466,719
At Home Corp. Series A.*....... 202,066 7,552,217
Comcast Corp. Cl. A. Special... 284,200 11,971,925
COX Communications
Inc., Cl. A.* 174,500 7,928,844
MCI Worldcom Inc.*............. 181,500 15,574,968
MediaOne Group Inc.*........... 239,900 17,047,894
Qualcomm Inc.*................. 23,400 5,212,350
SBC Communications Inc......... 130,716 6,658,346
Sprint Corp.................... 194,550 14,457,496
------------
123,870,759
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--.9%
Sun Microsystems Inc.*......... 89,100 9,427,894
------------
COMPUTER SERVICES--4.4%
eBay Inc.*..................... 177,900 24,038,738
Yahoo Inc.*.................... 121,635 21,780,267
------------
45,819,005
------------
COMPUTER SOFTWARE--5.0%
Intuit Inc.*................... 213,000 $ 6,203,625
Microsoft Corporation*......... 490,700 45,420,418
------------
51,624,043
------------
CONGLOMERATE--2.3%
Tyco International Ltd......... 589,588 23,546,670
------------
ENERGY &
ENERGY SERVICES--2.2%
Halliburton Co................. 600,600 22,635,113
------------
FINANCIAL SERVICES--12.3%
American Express Co............ 51,000 7,854,000
Bank of America Corp........... 369,987 23,817,913
Citigroup Inc.................. 594,000 32,150,250
Firstar Corp................... 136,751 4,017,060
Household International Inc.... 326,500 14,570,062
Kansas City
Southern Industries, Inc. ... 183,400 8,700,038
Merrill Lynch & Co., Inc....... 64,800 5,086,800
Morgan Stanley
Dean Witter & Co. ........... 281,000 30,997,813
------------
127,193,936
------------
FOOD CHAINS--.7%
Kroger Co.*.................... 328,000 6,826,500
------------
INSURANCE--2.9%
American International
Group, Inc. ................. 283,951 29,229,206
------------
LEISURE &
ENTERTAINMENT--.9%
Carnival Corp.................. 202,100 8,993,450
------------
MANUFACTURING--.5%
Solectron Corp.*............... 70,500 5,305,125
------------
OIL & GAS--.8%
Baker Hughes Inc............... 306,300 8,557,256
------------
PHARMACEUTICALS--6.5%
Bristol Myers Squibb Co........ 61,000 4,685,563
Pfizer Inc..................... 755,000 29,822,500
Warner-Lambert Co.............. 407,300 32,507,631
------------
67,015,694
------------
RETAILING--7.5%
Abercrombie & Fitch Co.,
Cl. A.* ..................... 95,800 2,610,550
Amazon.com Inc.*............... 163,200 11,526,000
Best Buy Company Inc.*......... 190,200 10,567,988
Costco Wholesale Corp.*........ 110,200 8,850,438
Home Depot, Inc................ 388,800 29,354,400
Wal-Mart Stores Inc............ 254,400 14,421,300
------------
77,330,676
------------
5
<PAGE>
THE ALGER FUND
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
October 31, 1999
Common Stocks--(cont.) Shares Value
------ ------
SEMICONDUCTOR
CAPITAL EQUIPMENT--3.6%
Applied Materials Inc.*........ 306,400 $ 27,518,550
Teradyne, Inc.*................ 252,000 9,702,000
------------
37,220,550
------------
SEMICONDUCTORS--8.2%
Altera Corporation*............ 228,700 11,120,538
Intel Corp..................... 178,600 13,830,338
Linear Technology Corporation.. 216,000 15,106,500
Micron Technology Inc.*........ 316,200 22,549,012
Texas Instruments,
Incorporated 53,900 4,837,525
Xilinx, Inc.*.................. 221,500 17,415,437
------------
84,859,350
------------
Total Common Stocks
(Cost $772,174,612).......... 903,415,553
------------
Principal
Amount Value
---------- --------
Short-Term Corporate Notes--9.6%
Atlantis One Funding Corp.,
5.33%, 11/08/99.............$10,850,000 $10,838,755
Enterprise Funding Corp.,
5.33%, 11/19/99 (a)......... 31,000,000 30,917,385
Ford Motor Credit Company,
5.23%, 11/16/99............. 1,200,000 1,197,385
General Motors Acceptance
Corporation,
5.25%, 11/03/99............. 2,700,000 2,699,213
GTE Funding Inc.,
5.31%, 11/22/99............. 13,650,000 13,607,719
Merrill Lynch & Co., Inc.,
5.30%, 11/22/99............. 31,000,000 30,904,158
Nestle Capital Corporation,
5.22%, 11/16/99............. 8,700,000 8,681,078
-------------
Total Short-Term Corporate Notes
(Cost $98,845,693).......... 98,845,693
-------------
Total Investments
(Cost $871,020,305)(b)...... 97.2% 1,002,261,246
Other Assets In Excess
of Liabilities 2.8 28,445,303
====== ==============
Net Assets.....................100.0% $1,030,706,549
------ --------------
* Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At October 31, 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $871,020,305, amounted to
$131,240,941 which consisted of aggregate gross unrealized appreciation of
$149,530,013 and aggregate gross unrealized depreciation of $18,289,072.
See Notes to Financial Statements.
6
<PAGE>
THE ALGER FUND
ALGER GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the year
<TABLE>
<CAPTION>
Class B(i)
--------------------------------------------------------------
Year Ended October 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.................. $ 12.00 $ 11.50 $ 9.49 $ 9.38 $ 6.97
------- ------- ------- ------- -------
Net investment income (loss)........................ (.18)(ii) (.11)(ii) (.13) (.08)(ii) (.02)
Net realized and unrealized gain (loss)
on investments................................... 4.56 2.10 2.44 .78 2.59
------- ------- ------- ------- -------
Total from investment operations.................... 4.38 1.99 2.31 .70 2.57
Distributions from net realized gains............... (1.29) (1.49) (.30) (.59) (.16)
------- ------- ------- ------- -------
Net asset value, end of year........................ $ 15.09 $ 12.00 $ 11.50 $ 9.49 $ 9.38
======= ======= ======= ======= =======
Total Return (iii).................................. 39.3% 20.5% 24.9% 8.1% 37.8%
======= ======= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of year
(000's omitted)................................ $770,311 $390,885 $304,984 $266,207 $154,284
======= ======= ======= ======= =======
Ratio of expenses to average
net assets..................................... 1.96% 2.00% 2.08% 2.08% 2.09%
======= ======= ======= ======= =======
Ratio of net investment income (loss)
to average net assets.......................... (1.26%) (.98%) (1.13%) (.84%) (1.03%)
======= ======= ======= ======= =======
Portfolio Turnover Rate........................... 205.94% 146.64% 128.26% 94.91% 118.16%
======= ======= ======= ======= =======
</TABLE>
- ---------------
See footnotes on page 8.
7
<PAGE>
THE ALGER FUND
ALGER GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
Class A (v) Class C (iv)
------------------------------------- ------------------------------------
Year Year Ten Months Year Year Three Months
Ended Ended Ended Ended Ended Ended
October 31, October 31, October 31, October 31, October 31, October 31,
1999 1998 1997(vi) 1999 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)........... (.07)(ii) (.03)(ii) (.02) (.18)(ii) (.11)(ii) (.02)
Net realized and unrealized gain (loss)
on investments...................... 4.64 2.13 2.20 4.55 2.10 (.46)
------- ------- ------- ------- ------- ------
Total from investment operations....... 4.57 2.10 2.18 4.37 1.99 (.48)
Distributions from net realized gains.. (1.29) (1.49) -- (1.29) (1.49) --
------- ------- ------- ------- ------- ------
Net asset value, end of period......... $ 15.47 $ 12.19 $ 11.58 $ 15.08 $ 12.00 $ 11.50
======= ======= ======= ======= ======= =======
Total Return (iii)..................... 40.4% 21.4% 23.2% 39.2% 20.5% (4.0%)
======= ======= ======= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................... $228,896 $121,930 $ 52,307 $ 31,500 $ 3,312 $ 199
======== ======== ========= ======== ======= =======
Ratio of expenses to average
net assets........................ 1.21% 1.25% 1.30% 1.97% 2.00% 2.02%
======== ======== ========= ======== ======= =======
Ratio of net investment income (loss)
to average net assets............. (.50%) (.23%) (.39%) (1.30%) (.97%) (1.43%)
======== ======== ========= ======== ======= =======
Portfolio Turnover Rate.............. 205.94% 146.64% 128.26% 205.94% 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.
See Notes to Financial Statements.
8
<PAGE>
ALGER SMALL CAPITALIZATION PORTFOLIO
PORTFOLIO HIGHLIGHTS THROUGH OCTOBER 31, 1999 (UNAUDITED)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS B SHARES - 10 YEARS ENDED 10/31/99
[The following table represents a chart in the printed piece]
ALGER SMALL CAP RUSSELL 2000 GROWTH
11/1/89 10000 10000
9292 7366
10/31/91 15214 12267
15736 12223
10/31/93 19793 15605
19586 15462
10/31/95 28626 18642
29534 21126
10/31/97 33328 25599
29709 21542
10/31/99 39418 27850
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Alger Small Capitalization Class B shares and the Russell
2000 Growth Index for the ten years ended October 31, 1999. Figures for both the
Alger Small Capitalization Class B shares and the Russell 2000 Growth Index, an
unmanaged index of common stocks, include reinvestment of dividends. Performance
for the Alger Small Capitalization Class A and Class C shares will vary from the
results shown above due to differences in expenses and sales charges those
classes bear.
PERFORMANCE COMPARISON AS OF 10/31/99+
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
1 5 10 SINCE
YEAR YEARS YEARS INCEPTION
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (Inception 1/1/97) 26.38% * * 8.68%
Russell 2000 Growth Index 29.29% * * 8.44%
- ---------------------------------------------------------------------------------------------------------
Class B (Inception 11/11/86) 27.09% 14.48% 14.70% 16.17%
Russell 2000 Growth Index 29.29% 12.49% 10.79% 9.90%
- ---------------------------------------------------------------------------------------------------------
Class C (Inception 8/1/97) 31.42% * * 6.70%
Russell 2000 Growth Index 29.29% * * 5.89%
</TABLE>
THE PORTFOLIO'S AVERAGE ANNUAL TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL WILL FLUCTUATE AND THE
PORTFOLIO'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. + RETURNS REFLECT MAXIMUM INITIAL SALES CHARGES ON CLASS A SHARES AND
APPLICABLE CONTINGENT DEFERRED SALES CHARGES ON CLASS B AND CLASS C SHARES.
9
<PAGE>
THE ALGER FUND
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1999
COMMON STOCKS--94.4% SHARES VALUE
--------- ----------
ADVERTISING--5.0%
Outdoor Systems, Inc.*...........237,075 $ 10,046,052
Young & Rubicam Inc..............323,000 14,777,250
------------
24,823,302
------------
AUTOMOTIVE--.4%
Sonic Automotive Inc., Cl. A*....212,900 2,222,143
------------
AUTOMOTIVE EQUIPMENT
& SERVICES--.8%
Speedway Motorsports Inc.*....... 92,000 4,013,500
------------
BIO-TECHNOLOGY--2.8%
IDEC Pharmaceuticals
Corporation* 35,700 4,147,893
Medimmune Inc.*.................. 42,700 4,782,400
Sepracor Inc.*................... 58,300 4,849,831
------------
13,780,124
------------
BROADCASTING--.7%
Salem Communications
Corp., Cl. A* ................ 123,000 3,059,625
Spanish Broadcasting
System Inc. Cl. A.............. 25,000 665,625
------------
3,725,250
------------
BUSINESS SERVICES--5.6%
BISYS Group Inc.*................249,300 12,714,300
FactSet Research Systems Inc.....148,100 9,839,392
Fiserv Inc.*..................... 58,400 1,868,800
Rent-Way Inc.*...................210,500 3,499,562
------------
27,922,054
COMMUNICATION
EQUIPMENT--3.4%
Aware Inc.*...................... 89,000 2,831,312
Flextronics International Ltd*... 85,000 6,035,000
SDL Inc.*........................ 65,000 8,015,313
------------
16,881,625
------------
COMMUNICATIONS--.9%
McLeodUSA Inc., Cl. A*........... 86,000 3,837,750
Triton PCS Holdings Inc., Cl. A*. 20,000 705,000
------------
4,542,750
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--6.4%
Antec Corp.*.....................267,200 12,959,200
Dupont Photomasks Inc.*.......... 91,400 4,524,300
Sanmina Corporation*.............160,000 14,410,000
------------
31,893,500
------------
COMPUTER SERVICES--10.0%
CNET Inc.*.......................184,900 $ 8,724,968
eBay Inc.*.......................109,200 14,755,650
Exodus Communications, Inc.*.....122,800 10,560,800
QRS Corp.*.......................162,450 9,036,280
Yahoo Inc.*...................... 40,000 7,162,520
------------
50,240,218
------------
COMPUTER SOFTWARE--3.6%
BSquare Corp.*................... 75,000 2,967,187
Dendrite International Inc.*..... 77,900 2,444,112
Intuit Inc.*.....................435,900 12,695,586
------------
18,106,885
------------
CONSUMER PRODUCTS--2.4%
Furniture Brands
International Inc.* ...........114,500 2,218,437
Mettler-Toledo
International Inc.* ...........220,000 6,558,750
Pittway Corp., Cl. A............. 89,000 2,937,000
------------
11,714,187
------------
ENERGY &
ENERGY SERVICES--1.2%
Calpine Corp.*................... 30,000 1,728,750
EOG Resources Inc................110,000 2,289,375
Forest Oil Corporation*..........134,000 1,792,250
------------
5,810,375
------------
FINANCIAL SERVICES--1.4%
National Commerce Bancorp........285,000 7,125,000
------------
HEALTH CARE--.8%
Cytyc Corporation*............... 95,000 3,776,250
------------
MEDICAL SERVICES--3.6%
Hooper Holmes Inc................239,400 6,433,874
MedQuist Inc.*...................356,400 11,404,800
------------
17,838,674
------------
OIL & GAS--1.9%
B.J. Services Company*...........174,700 5,994,393
Varco International Inc.*........350,000 3,696,875
------------
9,691,268
------------
PHARMACEUTICALS--2.0%
Forest Laboratories, Inc.*.......215,000 9,863,124
------------
RESTAURANTS & LODGING--2.0%
Outback Steakhouse, Inc.*........421,800 9,701,400
------------
10
<PAGE>
The Alger Fund
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
October 31, 1999
COMMON STOCKS--(cont.) SHARES VALUE
-------- -----------
RETAILING--20.9%
Abercrombie & Fitch Co., Cl. A*..110,800 $ 3,019,300
Amazon.com Inc.*.................109,500 7,733,437
Bed Bath & Beyond Inc.*..........292,700 9,750,569
BJ's Wholesale Club Inc.*........491,400 15,141,262
Ethan Allen Interiors Inc........371,700 13,218,580
Family Dollar Stores Inc.........513,000 10,580,625
Lands End Inc.*.................. 65,000 5,000,937
Linens'n Things Inc.*............401,200 15,947,700
Tiffany & Co.....................165,600 9,853,200
Too Inc.*........................150,000 2,400,000
Tuesday Morning Corp.*...........150,000 3,450,000
Williams Sonoma Inc.*............149,400 8,030,250
------------
104,125,860
------------
SEMICONDUCTOR
CAPITAL EQUIPMENT--4.0%
ASM Lithography Holding NV*......177,000 12,854,625
Atmi Inc.*.......................100,000 2,693,750
PRI Automation, Inc.*............103,600 4,156,950
------------
19,705,325
------------
SEMICONDUCTORS--14.3%
Altera Corporation*..............205,000 9,968,125
Applied Micro Circuits Corp.*.... 25,000 1,945,311
Conexant Systems Inc.*........... 86,800 8,104,950
Dallas Semiconductor Corp........100,000 5,887,500
Lattice Semiconductor Corp.*..... 50,000 1,768,750
Linear Technology Corporation.... 93,600 6,546,150
Maxim Integrated Products, Inc.*. 95,000 7,499,062
Microchip Technology
Incorporated*..................182,300 12,145,737
Vitesse Semiconductor Corp.*.....139,000 6,376,624
Xilinx, Inc.*....................136,300 10,716,587
------------
70,958,796
------------
MISCELLANEOUS--.3%
Coinstar Inc.* ..................201,300 1,534,912
------------
Total Common Stocks
(Cost $361,451,505) ........... 469,996,522
------------
PRINCIPAL
AMOUNT VALUE
----------- ---------
Short-Term Corporate Notes--5.3%
Enterprise Funding Corp.,
5.33%, 11/19/99(a)........ $ 8,000,000 $ 7,978,680
France Telecom,
5.32%, 11/23/99(a)......... 18,250,000 18,190,667
------------
Total Short-Term Corporate Notes
(Cost $26,169,347)............. 26,169,347
------------
Total Investments
(Cost $387,620,852)(b)......... 99.7% 496,165,869
Other Assets In Excess
of Liabilities................. .3 1,321,247
----- -----------
Net Assets....................... 100.0% $497,487,116
===== =============
* Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At October 31, 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $387,620,852, amounted to
$108,545,017 which consisted of aggregate gross unrealized appreciation of
$123,646,246 and aggregate gross unrealized depreciation of $15,101,229.
See Notes to Financial Statements.
11
<PAGE>
THE ALGER FUND
ALGER SMALL CAPITALIZATION PORTFOLIO
Financial Highlights
For a share outstanding throughout the year
<TABLE>
<CAPTION>
CLASS B(I)
---------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------
1999 1998 1997 1996 1995
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.................. $ 8.61 $ 10.29 $ 10.86 $ 11.13 $ 7.62
--------- --------- --------- --------- ---------
Net investment income (loss)........................ (.15)(vi) (.14)(vi) (.11) (.09) (.13)
Net realized and unrealized gain (loss)
on investments................................... 2.69 (1.03) 1.28 .42 3.64
--------- --------- --------- --------- ---------
Total from investment operations.................... 2.54 (1.17) 1.17 .33 3.51
Distributions from net realized gains............... (1.02) (.51) (1.74) (.60) --
--------- --------- --------- --------- ---------
Net asset value, end of year........................ $ 10.13 $ 8.61 $ 10.29 $ 10.86 $ 11.13
========= ========= ========= ========= =========
Total Return (ii)................................... 32.1% (11.6%) 12.9% 3.2% 46.2%
========= ========= ========= ========= =========
Ratios and Supplemental Data:
Net assets, end of year
(000's omitted)................................ $419,842 $460,788 $580,651 $553,872 $463,718
========= ========= ========= ========= =========
Ratio of expenses to average
net assets..................................... 2.14% 2.12% 2.14% 2.13% 2.11%
========= ========= ========= ========= =========
Ratio of net investment income
(loss) to average net assets................... (1.58%) (1.51%) (1.67%) (1.59%) (1.75%)
========= ========= ========= ========= =========
Portfolio Turnover Rate........................... 110.92% 157.26% 120.27% 153.35% 97.37%
========= ========= ========= ========= =========
</TABLE>
- ----------------
See footnotes on page 13.
12
<PAGE>
THE ALGER FUND
ALGER SMALL CAPITALIZATION PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (IV) CLASS C (III)
----------------------------------------------------------------------------------
YEAR YEAR TEN MONTHS YEAR YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1997(V) 1999 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)........... (.08)(vi) (.06)(vi) (.04) (.16)(vi) (.10)(vi) (.03)
Net realized and unrealized gain (loss)
on investments...................... 2.71 (1.04) 1.18 2.72 (1.09) (.06)
-------- -------- -------- -------- -------- --------
Total from investment operations....... 2.63 (1.10) 1.14 2.56 (1.19) (.09)
Distributions from net realized gains.. (1.02) (.51) -- (1.02) (.51) --
-------- -------- -------- -------- -------- --------
Net asset value, end of period......... $ 10.35 $ 8.74 $ 10.35 $ 10.13 $ 8.59 $ 10.29
======== ======== ======== ======== ======== ========
Total Return (ii)...................... 32.7% (10.9%) 12.4% 32.4% (11.8%) (.9%)
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................... $ 69,986 $ 59,516 $ 25,996 $ 7,659 $ 4,838 $ 338
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets........................ 1.38% 1.37% 1.38% 2.13% 2.11% 2.09%
======== ======== ======== ======== ======== ========
Ratio of net investment income (loss)
to average net assets............. (.79%) (.71%) (.93%) (1.55%) (1.36%) (1.71%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate.............. 110.92% 157.26% 120.27% 110.92% 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.
See Notes to Financial Statements.
13
<PAGE>
ALGER BALANCED PORTFOLIO
PORTFOLIO HIGHLIGHTS THROUGH OCTOBER 31, 1999 (UNAUDITED)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS B SHARES FROM 6/1/92 TO 10/31/99
LEHMAN GOV'T/CORP.
ALGER BALANCED B S&P 500 INDEX BOND INDEX
6/1/92 ........... 10000 10000 10000
10/31/92 ......... 9950 10198 10479
10/31/93 ......... 11180 11723 11911
10/31/94 ......... 10736 12177 11358
10/31/95 ......... 13700 15396 13193
10/31/96 ......... 14558 19104 13905
10/31/97 ......... 17360 25241 15130
10/31/98 ......... 20287 30794 16684
10/31/99 ......... 26675 38697 16575
ENDING VALUE S&P 500 INDEX $38,697
ENDING VALUE ALGER BALANCED B: $26,675
ENDING VALUE LEHEMAN BROTHERS GOV'T/CORP. BOND INDEX: $16,575
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in Alger Balanced Class B shares, the S&P 500 Index, and the
Lehman Brothers Government/Corporate Bond Index on June 1, 1992, the inception
date of the Alger Balanced Portfolio, through October 31, 1999. Figures for the
Alger Balanced Portfolio, the S&P 500 Index, an unmanaged index of common
stocks, and the Lehman Brothers Government/Corporate Bond Index, an unmanaged
index of government and corporate bonds, include reinvestment of dividends
and/or interest. Performance for the Alger Balanced Class A and Class C shares
will vary from the results shown above due to differences in expenses and sales
charges those classes bear.
PERFORMANCE COMPARISON AS OF 10/31/99+
AVERAGE ANNUAL TOTAL RETURNS
1 5 SINCE
YEAR YEARS INCEPTION
-----------------------------------------------
CLASS A (INCEPTION 1/1/97) 26.25% * 22.12%
S&P 500 Index 25.67% * 25.92%
Lehman Gov't/Corp. Bond Index (0.65%) * 6.13%
- --------------------------------------------------------------------------------
CLASS B (INCEPTION 6/1/92) 26.49% 19.77% 14.14%
S&P 500 Index 25.67% 26.02% 20.01%
Lehman Gov't/Corp. Bond Index (0.65%) 7.85% 7.05%
- --------------------------------------------------------------------------------
CLASS C (INCEPTION 8/1/97) 30.55% * 19.78%
S&P 500 Index 25.67% * 18.88%
Lehman Gov't/Corp. Bond Index (0.65%) * 5.08%
- --------------------------------------------------------------------------------
THE PORTFOLIO'S AVERAGE ANNUAL TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL WILL FLUCTUATE AND THE
PORTFOLIO'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
+ RETURNS REFLECT MAXIMUM INITIAL SALES CHARGES ON CLASS A SHARES AND APPLICABLE
CONTINGENT DEFERRED SALES CHARGES ON CLASS B AND CLASS C SHARES.
14
<PAGE>
THE ALGER FUND
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1999
COMMON STOCKS--58.8% SHARES VALUE
--------- --------
ADVERTISING--.6%
Omnicom Group Inc................ 5,500 $ 484,000
----------
AEROSPACE--2.6%
AlliedSignal Inc................. 15,800 899,613
United Technologies Corp......... 19,000 1,149,500
----------
2,049,113
----------
AUTOMOTIVE--.6%
Harley Davidson, Inc............. 7,600 450,774
----------
BIO-TECHNOLOGY--1.4%
Amgen Inc.*...................... 11,000 877,250
Biogen Inc.*..................... 3,000 222,375
----------
1,099,625
----------
BROADCASTING--.3%
Clear Channel
Communications Inc.* . ........ 2,900 233,088
----------
BUILDING &
CONSTRUCTION--.3%
Masco Corp....................... 7,500 228,750
----------
BUSINESS SERVICES--.6%
IMS Health Inc................... 16,500 478,500
----------
COMMUNICATION
EQUIPMENT--4.9%
Cisco Systems, Inc.*............. 22,650 1,676,100
Corning Inc...................... 14,400 1,132,200
Motorola, Inc.................... 11,500 1,120,532
----------
3,928,832
----------
COMMUNICATIONS--7.3%
America Online Inc.*............. 15,100 1,958,281
At Home Corp. Series A*.......... 7,958 297,430
COX Communications Inc., Cl. A.*. 8,300 377,131
MCI Worldcom Inc.*............... 9,200 789,475
MediaOne Group Inc.*............. 14,200 1,009,088
Qualcomm Inc.*................... 1,200 267,300
SBC Communications Inc........... 6,632 337,818
Sprint Corp...................... 10,850 806,290
----------
5,842,813
----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--.8%
Sun Microsystems Inc.*........... 6,000 634,874
----------
COMPUTER SERVICES--3.0%
eBay Inc.*....................... 9,300 1,256,663
Yahoo Inc.*...................... 6,176 1,105,890
----------
2,362,553
----------
COMPUTER SOFTWARE--3.1%
Intuit Inc.*..................... 7,800 227,175
Microsoft Corporation*........... 24,000 2,221,500
----------
2,448,675
----------
CONGLOMERATE--1.5%
Tyco International Ltd........... 29,692 1,185,823
----------
ENERGY &
ENERGY SERVICES--1.5%
Halliburton Co................... 33,700 1,270,068
----------
FINANCIAL SERVICES--8.4%
American Express Co.............. 2,500 385,000
Bank of America Corp............. 20,200 1,300,375
Citigroup Inc.................... 35,950 1,945,794
Firstar Corp..................... 10,455 307,116
Household International Inc...... 10,200 455,175
Kansas City Southern
Industries Inc. ............... 8,800 417,450
Merrill Lynch & Co., Inc......... 3,400 266,900
Morgan Stanley Dean Witter & Co.. 14,700 1,621,593
----------
6,699,403
----------
FOOD CHAINS--.4%
Kroger Co.*...................... 16,600 345,487
----------
INSURANCE--1.7%
American International
Group, Inc. ................... 12,856 1,323,365
----------
LEISURE &
ENTERTAINMENT--.6%
Carnival Corp.................... 10,500 467,250
----------
MANUFACTURING--.3%
Solectron Corp.*................. 3,300 248,325
----------
OIL & GAS--.7%
Baker Hughes Inc................. 20,000 558,750
----------
PHARMACEUTICALS--4.2%
Bristol Myers Squibb Co.......... 3,400 261,163
Pfizer Inc....................... 38,300 1,512,850
Warner-Lambert Co................ 20,300 1,620,194
----------
3,394,207
----------
15
<PAGE>
THE ALGER FUND
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
October 31, 1999
COMMON STOCKS--(CONT.) SHARES VALUE
--------- --------
RETAILING--5.9%
Abercrombie & Fitch Co., Cl. A.*. 5,800 $ 158,050
Amazon.com Inc.*................. 8,400 593,250
Best Buy Company Inc.*........... 10,200 566,738
Costco Wholesale Corp.*.......... 9,400 754,938
Home Depot, Inc.................. 24,000 1,812,000
Wal-Mart Stores Inc.............. 13,750 779,453
----------
4,664,429
----------
SEMICONDUCTOR
CAPITAL EQUIPMENT--2.5%
Applied Materials Inc.*.......... 16,500 1,481,906
Teradyne, Inc.*.................. 12,400 477,400
----------
1,959,306
----------
SEMICONDUCTORS--5.6%
Altera Corporation*.............. 12,100 588,363
Intel Corp....................... 9,200 712,425
Linear Technology Corporation.... 11,500 804,281
Micron Technology Inc.*.......... 16,700 1,190,919
Texas Instruments, Incorporated.. 2,700 242,325
Xilinx, Inc.*.................... 11,600 912,050
----------
4,450,363
----------
Total Common Stocks
(Cost $40,855,075)............. 46,808,373
----------
PRINCIPAL
Corporate Bonds--6.1% AMOUNT
---------
AUTOMOTIVE--.4%
Ford Capital B.V.,
9.50%, 6/01/10.................$300,000 345,513
----------
COMMUNICATIONS--1.0%
MCI Worldcom Inc.,
8.25%, 1/20/23................. 300,000 312,081
Tele-Communications Inc.,
7.25%, 8/01/05................. 500,000 501,670
----------
813,751
----------
CONSUMER PRODUCTS
& SERVICES--.4%
Eastman Kodak Co.,
9.20%, 6/01/21................. 300,000 326,394
----------
PRINCIPAL
AMOUNT VALUE
--------- ----------
ELECTRIC &
GAS COMPANIES--1.2%
Cincinnati Gas & Electric Co.,
7.20%, 10/01/23................$100,000 $ 91,446
Pacific Gas & Electric Co.,
7.25%, 3/01/26................. 182,000 172,288
Potomac Electric Power Co.,
7.00%, 1/15/24................. 200,000 183,250
Washington Gas Light Co.,
6.51%, 8/18/08................. 500,000 480,640
----------
927,624
----------
FINANCIAL SERVICES--1.6%
BankAmerica Corp.,
6.625%, 10/15/07............... 200,000 192,712
Bankers Trust Corp.,
7.00%, 3/13/18................. 300,000 274,602
Chase Manhattan Corp.,
8.50%, 2/15/02................. 200,000 207,730
Citicorp,
7.125%, 6/01/03................ 200,000 201,010
Merrill Lynch & Co., Inc.,
6.75%, 4/30/01................. 150,000 150,852
Morgan Stanley Dean Witter & Co.,
7.50%, 2/01/24................. 300,000 286,176
----------
1,313,082
----------
INSURANCE--1.2%
Beneficial Corp.,
6.575%, 12/16/02............... 500,000 494,920
Loews Corp.,
7.625%, 6/01/23................ 500,000 466,345
----------
961,265
----------
POLLUTION CONTROL--.3%
Waste Management Inc.,
8.25%, 11/15/99................ 200,000 200,186
----------
Total Corporate Bonds
(Cost $5,190,704).............. 4,887,815
----------
16
<PAGE>
THE ALGER FUND
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
October 31, 1999
PRINCIPAL
AMOUNT VALUE
--------- ---------
U.S. Government &
Agency Obligations--4.8%
Federal Home Loan Bank Corp.,
5.87%, 4/22/03.................$300,000 $ 295,218
5.935%, 4/22/05................ 400,000 387,624
6.505%, 6/17/08................ 300,000 284,814
Federal Home Loan Mortgage Corp.,
7.08%, 3/17/14................. 400,000 374,252
Federal National Mortgage Assoc.,
8.50%, 2/01/05................. 100,000 100,516
6.96%, 4/02/07................. 500,000 503,750
7.49%, 5/22/07................. 250,000 246,835
6.75%, 2/04/28................. 400,000 352,252
7.00%, 3/04/13................. 600,000 564,000
6.42%, 7/14/08................. 300,000 283,593
U.S. Treasury Notes,
7.50%, 5/15/02................. 100,000 103,703
6.375%, 1/15/00................ 100,000 100,188
6.25%, 2/15/03................. 250,000 252,070
----------
Total U.S. Government
& Agency Obligations
(Cost $4,080,648).............. 3,848,815
----------
Short-Term Corporate Notes--27.7%
Atlantis One Funding Corp.,
5.32%, 11/15/99................$1,700,000 $ 1,696,476
AT&T Capital Corp.,
5.18%, 11/09/99................ 300,000 299,654
Coca-Cola Co. (The),
5.27%, 11/24/99................ 3,000,000 2,989,893
Crown Point Capital Co. LLC,
5.38%, 11/09/99 (a)............ 750,000 749,102
Ford Motor Credit Company,
5.23%, 11/16/99................ 3,100,000 3,093,240
France Telecom,
5.32%, 11/23/99 (a)............ 400,000 398,699
General Motors Acceptance
Corporation,
5.25%, 11/03/99................ 1,200,000 1,199,649
Hasbro, Inc.,
5.27%, 11/15/99................ 1,100,000 1,097,744
Kansas City Power & Light Co.,
5.32%, 11/04/99................ 3,100,000 3,098,623
Merrill Lynch & Co., Inc.,
5.22%, 11/09/99................ 2,500,000 2,497,096
Nestle Capital Corporation,
5.22%, 11/16/99................ 2,500,000 2,494,555
Toyota Credit de Puerto Rico,
5.28%, 11/15/99................ 2,500,000 2,494,859
----------
Total Short-Term Corporate Notes
(Cost $22,109,590)............. 22,109,590
----------
Total Investments
(Cost $72,236,017)(b).......... 97.4% 77,654,593
Other Assets In Excess
of Liabilities................. 2.6 2,067,129
------ -----------
Net Assets....................... 100.0% $79,721,722
====== ===========
* Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At October 31, 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $72,236,017, amounted to $5,418,576
which consisted of aggregate gross unrealized appreciation of $7,219,232 and
aggregate gross unrealized depreciation of $1,800,656.
See Notes to Financial Statements.
17
<PAGE>
THE ALGER FUND
ALGER BALANCED PORTFOLIO
Financial Highlights
For a share outstanding throughout the year
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................. $ 16.64 $ 16.48 $ 14.21 $ 13.59 $ 10.65
------- ------- ------- ------- -------
Net investment income (loss)........................ .07(i) .03(i) -- .12 (.02)(i)
Net realized and unrealized gain (loss)
on investments................................... 4.93 2.34 2.67 .72 2.96
------- ------- ------- ------- -------
Total from investment operations.................... 5.00 2.37 2.67 .84 2.94
------- ------- ------- ------- -------
Dividends from net investment income................ (.03) (.01) (.06) (.01) --
Distributions from net realized gains............... (1.02) (2.20) (.34) (.21) --
------- ------- ------- ------- -------
Total distributions................................. (1.05) (2.21) (.40) (.22) --
------- ------- ------- ------- -------
Net asset value, end of year........................ $ 20.59 $ 16.64 $ 16.48 $ 14.21 $ 13.59
======= ======= ======= ======= =======
Total Return (ii)................................... 31.5% 16.9% 19.3% 6.3% 27.6%
======= ======= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of year
(000's omitted)................................ $ 52,607 $ 19,282 $ 12,653 $ 13,492 $ 6,214
======= ======= ======= ======= =======
Ratio of expenses to average
net assets..................................... 2.18% 2.58% 2.89% 2.70% 3.34%
======= ======= ======= ======= =======
Decrease reflected in above
expense ratios due to
expense reimbursements (iv).................... -- -- -- -- .24%
======= ======= ======= ======= =======
Ratio of net investment income
(loss) to average net assets................... .36% .19% .04% .47% (.13%)
======= ======= ======= ======= =======
Portfolio Turnover Rate........................... 126.01% 93.23% 109.26% 85.51% 84.06%
======= ======= ======= ======= =======
</TABLE>
- ---------------------
See footnotes on page 19.
18
<PAGE>
THE ALGER FUND
ALGER BALANCED PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (VI) CLASS C (V)
------------------------------------------------------------------------------
YEAR YEAR TEN MONTHS YEAR YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1997(III) 1999 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)........... .25(i) .16(i) .05 .07(i) .04(i) (.01)
Net realized and unrealized gain (loss)
on investments...................... 4.97 2.35 2.54 4.95 2.33 (.38)
------- ------- ------- ------- ------- -------
Total from investment operations....... 5.22 2.51 2.59 5.02 2.37 (.39)
------- ------- ------- ------- ------- -------
Dividends from net investment income... (.08) (.06) -- (0.01) -- --
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......... $ 20.95 $ 16.83 $ 16.58 $ 20.65 $ 16.66 $ 16.49
======= ======= ======= ======= ======= =======
Total Return (ii)...................... 32.5% 17.7% 18.5% 31.6% 16.8% (2.31%)
======= ======= ======= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................... $ 12,488 $ 1,354 $ 459 $14,626 $ 334 $ 48
======= ======= ======= ======= ======= =======
Ratio of expenses to average
net assets........................ 1.40% 1.79% 2.10% 2.16% 2.53% 2.77%
======= ======= ======= ======= ======= =======
Ratio of net investment income (loss)
to average net assets............. 1.15% .98% .72% .38% .23% (.84%)
======= ======= ======= ======= ======= =======
Portfolio Turnover Rate.............. 126.01% 93.23% 109.26% 126.01% 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.
See Notes to Financial Statements.
19
<PAGE>
ALGER MIDCAP GROWTH PORTFOLIO PORTFOLIO HIGHLIGHTS
THROUGH OCTOBER 31, 1999 (UNAUDITED)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS B SHARES FROM 5/24/93 TO 10/31/99
[Line chart omitted]
ALGER MIDCAP GROWTH B S&P MIDCAP 400 INDEX
5/24/93 10000 10000
10/31/93 12480 10714
10/31/94 13062 10969
10/31/95 19373 13295
10/31/96 20618 15600
10/31/97 25024 20694
10/31/98 26586 22084
10/31/99 35182 26736
ENDING VALUE ALGER MIDCAP GROWTH B: $35,182
ENDING VALUE S&P MIDCAP 400 INDEX: $26,736
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in Alger MidCap Growth Class B shares and the S&P MidCap 400
Index on May 24, 1993, the inception date of the Alger MidCap Growth Portfolio,
through October 31, 1999. Figures for both the Alger MidCap Growth Class B
shares and the S&P MidCap 400 Index, an unmanaged index of common stocks,
include reinvestment of dividends. Performance for the Alger MidCap Growth Class
A and Class C shares will vary from the results shown above due to differences
in expenses and sales charges those classes bear.
PERFORMANCE COMPARISON AS OF 10/31/99+
AVERAGE ANNUAL TOTAL RETURNS
1 5 SINCE
YEAR YEARS INCEPTION
--------------------------------------------------
CLASS A (INCEPTION 1/1/97) 26.94% * 18.43%
S&P MidCap 400 Index 21.07% * 18.59%
- --------------------------------------------------------------------------------
CLASS B (INCEPTION 5/24/93) 27.33% 21.73% 21.57%
S&P MidCap 400 Index 21.07% 19.50% 16.50%
- --------------------------------------------------------------------------------
CLASS C (INCEPTION 8/1/97) 31.38% * 15.91%
S&P MidCap 400 Index 21.07% * 12.58%
- --------------------------------------------------------------------------------
THE PORTFOLIO'S AVERAGE ANNUAL TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL WILL FLUCTUATE AND THE
PORTFOLIO'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
+ RETURNS REFLECT MAXIMUM INITIAL SALES CHARGES ON CLASS A SHARES AND
APPLICABLE CONTINGENT DEFERRED SALES CHARGES ON CLASS B AND CLASS C SHARES.
20
<PAGE>
THE ALGER FUND
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1999
COMMON STOCKS--88.9% SHARES VALUE
------- -------
ADVERTISING--1.6%
Lamar Advertising Co., Cl. A.*... 35,100 $ 1,895,400
Young & Rubicam Inc.............. 68,500 3,133,875
-----------
5,029,275
-----------
AUTOMOTIVE--2.7%
Harley Davidson, Inc.............142,500 8,452,030
-----------
BIO-TECHNOLOGY--5.3%
Biogen Inc.*.....................106,400 7,886,900
Medimmune Inc.*.................. 60,000 6,720,000
Sepracor Inc.*................... 19,000 1,580,562
-----------
16,187,462
-----------
BUSINESS SERVICES--6.0%
Cintas Corp...................... 74,800 4,506,700
Fiserv Inc.*.....................207,700 6,646,400
IMS Health Inc...................258,148 7,486,291
-----------
18,639,391
-----------
COMMUNICATION
EQUIPMENT--3.0%
Corning Inc...................... 50,500 3,970,562
Flextronics International Ltd*... 67,300 4,778,300
Sycamore Networks Inc.*.......... 3,000 645,000
-----------
9,393,862
-----------
COMMUNICATIONS--1.0%
At Home Corp. Series A.*......... 83,260 3,111,842
-----------
COMPUTER RELATED
& BUSINESS EQUIPMENT--1.7%
Sanmina Corporation*............. 59,400 5,349,712
-----------
COMPUTER SERVICES--7.2%
Amdocs Limited*.................. 64,000 1,780,000
CNET Inc.*.......................221,200 10,437,875
eBay Inc.*....................... 44,500 6,013,063
Exodus Communications, Inc.*..... 24,600 2,115,600
Yahoo Inc.*...................... 10,132 1,814,262
-----------
22,160,800
-----------
COMPUTER SOFTWARE--3.7%
CSG Systems International Inc.*.. 28,000 960,750
Intuit Inc.*.....................308,700 8,990,888
Legato Systems Inc.*............. 27,400 1,472,750
-----------
11,424,388
-----------
ENERGY &
ENERGY SERVICES--5.2%
Calpine Corp.*................... 78,500 4,523,563
Devon Energy Corporation......... 70,300 2,732,913
EOG Resources Inc................ 74,500 1,550,531
Nabors Industries Inc.*..........258,100 5,855,643
Union Pacific
Resources Group Inc. .......... 88,000 1,276,000
-----------
15,938,650
-----------
FINANCIAL SERVICES--4.9%
Charter One Financial Inc........ 86,310 2,119,989
Kansas City Southern
Industries Inc. . .............162,600 7,713,338
Paine Webber Group Inc...........130,000 5,297,500
-----------
15,130,827
-----------
FOODS & BEVERAGES--1.7%
Dean Foods Co.................... 32,000 1,480,000
U.S. Foodservice*................194,000 3,722,375
-----------
5,202,375
-----------
INDUSTRIAL EQUIPMENT--2.2%
SPX Corp.*....................... 31,500 2,669,625
Waters Corp.*.................... 76,600 4,069,375
-----------
6,739,000
-----------
LEISURE &
ENTERTAINMENT--2.0%
Mandalay Resort Group*...........325,517 6,062,754
-----------
MEDICAL SERVICES--1.7%
Express Scripts Inc., Cl. A.*.... 76,200 3,743,325
MedQuist Inc.*................... 43,000 1,376,000
-----------
5,119,325
-----------
OIL & GAS--2.0%
B.J. Services Company*...........178,800 6,135,075
-----------
PHARMACEUTICALS--2.9%
Forest Laboratories, Inc.*.......193,000 8,853,875
-----------
RESTAURANTS &
LODGING--1.8%
Outback Steakhouse, Inc.*........240,250 5,525,750
-----------
RETAILING--11.9%
Abercrombie & Fitch Co., Cl. A.*.145,000 3,951,250
Amazon.com Inc.*................. 48,800 3,446,500
Bed Bath & Beyond Inc.*..........194,000 6,462,625
Best Buy Company Inc.*...........110,200 6,122,988
BJ's Wholesale Club Inc.*........ 53,000 1,633,063
Family Dollar Stores Inc......... 50,000 1,031,250
Gucci Group N.V..................116,000 9,367,000
Williams Sonoma Inc.*............ 85,900 4,617,125
-----------
36,631,801
-----------
21
<PAGE>
THE ALGER FUND
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
October 31, 1999
COMMON STOCKS--(cont.) SHARES VALUE
---------- ------------
SEMICONDUCTOR
CAPITAL EQUIPMENT--4.5%
ASM Lithography Holding NV*...... 57,900 $ 4,204,988
Atmi Inc.*....................... 41,400 1,115,213
Teradyne, Inc.*..................221,900 8,543,150
-----------
13,863,351
-----------
SEMICONDUCTORS--15.9%
Altera Corporation*..............196,400 9,549,950
Conexant Systems Inc.*........... 34,000 3,174,750
Linear Technology Corporation....150,100 10,497,619
Maxim Integrated Products, Inc.*. 72,000 5,683,500
Microchip Technology
Incorporated* .................123,500 8,228,188
Vitesse Semiconductor Corp.*..... 34,200 1,568,925
Xilinx, Inc.*....................130,400 10,252,700
-----------
48,955,632
-----------
Total Common Stocks
(Cost $248,779,558)............ 273,907,177
-----------
Short-Term Corporate PRINCIPAL
Notes--12.7% AMOUNT VALUE
---------- -----------
Atlantis One Funding Corp.,
5.33%, 11/08/99 ....................... $ 3,200,000 $ 3,196,684
Consolidated Natural Gas Company,
5.35%, 11/03/99 ....................... 7,000,000 6,997,919
Crown Point Capital Corp.,
5.38%, 11/09/99 (a) ................... 850,000 848,984
Enterprise Funding Corp.,
5.33%, 11/19/99 (a) ................... 5,200,000 5,186,141
Ford Motor Credit Company,
5.22%, 11/16/99 ....................... 8,500,000 8,481,513
General Motors Acceptance
Corporation,
5.25%, 11/03/99 ....................... 3,950,000 3,948,848
Merrill Lynch & Co., Inc.,
5.30%, 11/19/99 ....................... 10,700,000 10,671,645
-------------
Total Short-Term Corporate Notes
(Cost $39,331,734) .................... 39,331,734
-------------
Total Investments
(Cost $288,111,292)(b) ................ 101.6% 313,238,911
Liabilities In Excess
of Other Assets ....................... (1.6) (5,026,506)
----- -------------
Net Assets .............................. 100.0% $ 308,212,405
===== =============
* Non-income producing security
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At October 31, 1999, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $288,111,292, amounted to
$25,127,619 which consisted of aggregate gross unrealized appreciation of
$33,200,307 and aggregate gross unrealized depreciation of $8,072,688.
See Notes to Financial Statements.
22
<PAGE>
THE ALGER FUND
ALGER MIDCAP GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the year
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ----- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 20.89 $ 22.33 $ 18.87 $ 18.94 $ 12.77
-------- -------- -------- -------- --------
Net investment income (loss)........... (.32)(ii) (.29)(ii) (.29) (.25)(ii) (.08)
Net realized and unrealized gain (loss)
on investments...................... 6.35 1.31 4.23 1.35 6.25
-------- -------- -------- -------- --------
Total from investment operations....... 6.03 1.02 3.94 1.10 6.17
Distributions from net realized gains.. (2.93) (2.46) (.48) (1.17) --
-------- -------- -------- -------- --------
Net asset value, end of year........... $ 23.99 $ 20.89 $ 22.33 $ 18.87 $ 18.94
======== ======== ======== ======== ========
Total Return (iii)..................... 32.3% 6.2% 21.4% 6.4% 48.3%
======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of year
(000's omitted)................... $248,139 $191,934 $166,475 $125,686 $ 54,016
======== ======== ======== ======== ========
Ratio of expenses to average
net assets........................ 2.07% 2.10% 2.19% 2.27% 2.39%
======== ======== ======== ======== ========
Ratio of net investment income
(loss) to average net assets...... (1.39%) (1.38%) (1.58%) (1.33%) (1.71%)
======== ======== ======== ======== ========
Portfolio Turnover Rate.............. 203.86% 180.98% 160.09% 113.95% 121.60%
======== ======== ======== ======== ========
</TABLE>
- -------------------
See footnotes on page 24.
23
<PAGE>
THE ALGER FUND
ALGER MIDCAP GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (V) CLASS C (IV)
---------------------------------------- -------------------------------------
YEAR YEAR TEN MONTHS YEAR YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1997 (I) 1999 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)........... (.14)(ii) (.10)(ii) (.10) (.32)(ii) (.28)(ii) (.03)
Net realized and unrealized gain (loss)
on investments...................... 6.45 1.31 3.64 6.35 1.27 (.13)
------- ------- ------- ------- ------- -------
Total from investment operations....... 6.31 1.21 3.54 6.03 .99 (.16)
Distributions from net realized gains.. (2.93) (2.46) -- (2.93) (2.46) --
------- ------- ------- ------- ------- -------
Net asset value, end of period......... $ 24.59 $ 21.21 $ 22.46 $ 23.96 $ 20.86 $ 22.33
======= ======= ======= ======= ======= =======
Total Return (iii)..................... 33.3% 7.2% 18.7% 32.4% 6.1% (.7%)
======= ======= ======= ======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................... $49,246 $32,447 $5,436 $10,827 $1,759 $ 84
======= ======= ======= ======= ======= =======
Ratio of expenses to average
net assets........................ 1.31% 1.34% 1.40% 2.08% 2.08% 1.97%
======= ======= ======= ======= ======= =======
Ratio of net investment income (loss)
to average net assets............. (.58%) (.53%) (.83%) (1.40%) (1.26%) (1.55%)
======= ======= ======= ======= ======= =======
Portfolio Turnover Rate.............. 203.86% 180.98% 160.09% 203.86% 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) Initially offered August 1, 1997.
(v) Initially offered January 1, 1997.
24
<PAGE>
ALGER CAPITAL APPRECIATION PORTFOLIO PORTFOLIO
HIGHLIGHTS THROUGH OCTOBER 31, 1999 (UNAUDITED)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS B SHARES FROM 11/1/93 TO 10/31/99
ALGER CAPITAL APPRECIATION B S&P 500 INDEX
11/1/93 10000 10000
10/31/94 11110 10387
10/31/95 18620 13133
10/31/96 22246 16297
10/31/97 26918 21531
10/31/98 29572 26267
10/31/99 48098 33009
ENDING VALUE ALGER CAPITAL APPRECIATION B: $48,098
ENDING VALUE S&P 500 INDEX; $33,009
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in Alger Capital Appreciation Class B shares and the S&P 500
Index on November 1, 1993, the inception date of the Alger Capital Appreciation
Portfolio, through October 31, 1999. Figures for the Alger Capital Appreciation
Class B shares and the S&P 500 Index, an unmanaged index of common stocks,
include reinvestment of dividends. Performance for Alger Capital Appreciation
Class A and Class C shares will vary from the results shown above due to
differences in expenses and sales charges those classes bear.
PERFORMANCE COMPARISON AS OF 10/31/99+
AVERAGE ANNUAL TOTAL RETURNS
1 5 SINCE
YEAR YEARS INCEPTION
----------------------------------------------------
CLASS A (INCEPTION 1/1/97) 56.13% * 29.82%
S&P 500 Index 25.67% * 25.92%
- --------------------------------------------------------------------------------
CLASS B (INCEPTION 11/1/93) 57.99% 33.99% 29.92%
S&P 500 Index 25.67% 26.02% 22.02%
- --------------------------------------------------------------------------------
CLASS C (INCEPTION 8/1/97) 61.87% * 25.95%
S&P 500 Index 25.67% * 18.88%
THE PORTFOLIO'S AVERAGE ANNUAL TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL WILL FLUCTUATE AND THE
PORTFOLIO'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
+ RETURNS REFLECT MAXIMUM INITIAL SALES CHARGES ON CLASS A SHARES AND APPLICABLE
CONTINGENT DEFERRED SALES CHARGES ON CLASS B AND CLASS C SHARES.
25
<PAGE>
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1999
COMMON STOCKS--92.1% SHARES VALUE
-------- --------
ADVERTISING--1.5%
Omnicom Group Inc............. 132,000 $ 11,616,000
-------------
AEROSPACE--1.6%
AlliedSignal Inc.............. 225,000 12,810,937
-------------
BIO-TECHNOLOGY--1.9%
Amgen Inc.*................... 182,800 14,578,300
-------------
BROADCASTING--4.3%
Cablevision Systems
Corp., Cl. A. 202,000 13,647,625
Clear Channel
Communications Inc.*........ 251,000 20,174,125
-------------
33,821,750
-------------
BUSINESS SERVICES--1.0%
IMS Health Inc................ 283,900 8,233,100
-------------
COMMUNICATION
EQUIPMENT--5.6%
Cisco Systems, Inc.*.......... 329,500 24,383,000
Motorola, Inc................. 203,000 19,779,813
-------------
44,162,813
-------------
COMMUNICATIONS--14.1%
America Online Inc.*.......... 308,000 39,943,750
At Home Corp. Series A.*...... 166,300 6,215,463
Comcast Corp., Cl. A. Special. 412,000 17,355,500
COX Communications Inc.,
Cl. A.* 339,000 15,403,312
McLeodUSA Inc., Cl. A.*....... 80,000 3,570,000
Qualcomm Inc.*................ 70,500 15,703,875
Sprint Corp................... 170,000 12,633,125
-------------
110,825,025
-------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--4.5%
Sun Microsystems Inc.*........ 335,000 35,447,187
-------------
COMPUTER SERVICES--12.8%
CNET Inc.*.................... 264,200 12,466,938
eBay Inc.*.................... 262,000 35,402,750
Exodus Communications, Inc.*.. 245,000 21,070,000
Yahoo Inc.*................... 177,247 31,738,290
-------------
100,677,978
-------------
COMPUTER SOFTWARE--5.5%
Intuit Inc.*.................. 445,500 12,975,188
Microsoft Corporation*........ 330,400 30,582,650
-------------
43,557,838
-------------
ENERGY &
ENERGY SERVICES--3.0%
Halliburton Co................ 632,000 $ 23,818,500
-------------
FINANCIAL SERVICES--5.1%
American Express Co........... 55,000 8,470,000
Citigroup Inc................. 464,750 25,154,594
Morgan Stanley Dean Witter & Co. 56,500 6,232,656
-------------
39,857,250
-------------
INSURANCE--.8%
American International
Group, Inc. 61,250 6,304,921
-------------
OIL & GAS--1.0%
Baker Hughes Inc.............. 177,000 4,944,938
B.J. Services Company*........ 85,000 2,916,563
-------------
7,861,501
-------------
PHARMACEUTICALS--2.9%
Bristol Myers Squibb Co....... 173,729 13,344,559
Pfizer Inc.................... 247,200 9,764,400
-------------
23,108,959
-------------
RETAILING--5.6%
Amazon.com Inc.*.............. 122,800 8,672,750
Costco Wholesale Corp.*....... 86,600 6,955,063
Home Depot, Inc............... 225,000 16,987,500
Wal-Mart Stores Inc........... 201,200 11,405,525
-------------
44,020,838
-------------
SEMICONDUCTOR
CAPITAL EQUIPMENT--4.6%
Applied Materials Inc.*....... 188,000 16,884,750
ASM Lithography Holding NV*... 117,000 8,497,125
Teradyne, Inc.*............... 281,000 10,818,500
-------------
36,200,375
-------------
SEMICONDUCTORS--16.3%
Altera Corporation*........... 204,000 9,919,500
Broadcom Corp., Cl. A.*....... 143,800 18,379,437
Conexant Systems Inc.*........ 246,000 22,970,250
Linear Technology Corporation. 127,000 8,882,063
Micron Technology Inc.*....... 200,000 14,262,500
SDL Inc.*..................... 54,000 6,658,875
Texas Instruments,
Incorporated ............... 180,000 16,155,000
Vitesse Semiconductor Corp.*.. 194,000 8,899,750
Xilinx, Inc.*................. 278,000 21,857,750
-------------
127,985,125
-------------
Total Common Stocks
(Cost $607,817,466)......... 724,888,397
-------------
26
<PAGE>
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
October 31, 1999
Short-Term Corporate PRINCIPAL
Notes--6.1% AMOUNT VALUE
--------- ------------
Atlantis One Funding Corp.,
5.32%, 11/15/99 ........................... $ 550,000 $ 548,866
Enterprise Funding Corp.,
5.33%, 11/19/99(a) ...................... 3,400,000 3,390,939
Holland Limited Securitization
Inc.,
5.38%, 11/19/99(a) ...................... 35,700,000 35,603,967
Merrill Lynch & Co., Inc.,
5.25%, 11/10/99 ......................... 8,100,000 8,089,369
------------
Total Short-Term Corporate Notes
(Cost $47,633,141) ...................... 47,633,141
------------
Total Investments
(Cost $655,450,607)(b) .................. 98.2% 772,521,538
Other Assets In Excess
of Liabilities .......................... 1.8 14,167,601
----- ------------
Net Assets ................................ 100.0% $786,689,139
===== ============
*Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At October 31, 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $655,450,607, amounted to
$117,070,931 which consisted of aggregate gross unrealized appreciation of
$128,553,534 and aggregate gross unrealized depreciation of $11,482,603.
See Notes to Financial Statements.
27
<PAGE>
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO (I)(II)
Financial Highlights
For a share outstanding throughout the year
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------------
1999 1998 1997 1996 1995
-------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 8.90 $ 8.67 $ 7.21 $ 6.21 $ 3.70
------------ ---------- ---------- ---------- ----------
Net investment income (loss)....... (.21)(iii) (.13)(iii) (.11) (.11)(iii) (0.16)(iii)
Net realized and unrealized gain (loss)
on investments.................. 5.43 .90 1.62 1.29 2.67
------------ ---------- ---------- ---------- ----------
Total from investment operations... 5.22 .77 1.51 1.18 2.51
Distributions from net realized gains (.84) (.54) (.05) (.18) --
------------ ---------- ---------- ---------- ----------
Net asset value, end of year....... $ 13.28 $ 8.90 $ 8.67 $ 7.21 $ 6.21
============ ========== ========== ========== ==========
Total Return (iv).................. 63.0% 9.9% 21.0% 19.5% 67.6%
============ ========== ========== ========== ==========
Ratios and Supplemental Data:
Net assets, end of year
(000's omitted)............... $594,971 $242,941 $212,895 $150,258 $33,640
============ ========== ========== ========== ==========
Ratio of expenses excluding
interest to average net assets 2.12% 2.19% 2.27% 2.44% 3.26%
============ ========== ========== ========== ==========
Ratio of expenses including interest
to average net assets......... 2.21% 2.26% 2.38% 2.46% 3.54%
============ ========== ========== ========== ==========
Ratio of net investment income
(loss) to average net assets.. (1.77%) (1.48%) (1.72%) (1.61%) (3.02%)
============ ========== ========== ========== ==========
Portfolio Turnover Rate.......... 186.93% 184.07% 157.63% 162.37% 197.65%
======== ======== ======== ========= ========
Amount of debt outstanding at end
of year....................... -- -- -- $7,700,000 --
============ ========== ========== ========== ==========
Average amount of debt outstanding
during the year...............$ 7,758,649 $2,814,493 $2,940,097 $ 239,966 $ 293,153
============ ========== ========== ========== ==========
Average daily number of portfolio
shares outstanding during the
year.......................... 42,330,298 29,012,853 23,217,597 14,556,858 1,629,810
============ ========== ========== ========== ==========
Average amount of debt per portfolio
share during the year. $ 0.18 $ 0.10 $ 0.13 $ 0.02 $ 0.18
============ ========== ========== ========== ==========
</TABLE>
- -------------------
See footnotes on page 29.
See Notes to Financial Statements.
28
<PAGE>
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO (i)(ii)
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (VI) CLASS C (V)
------------------------------------------------------------------------------------
YEAR YEAR TEN MONTHS YEAR YEAR THREE MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1997 (VII) 1999 1998 1997 (VII)
----------- ----------- ----------- ----------- ----------- -----------
<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) ......... (.12)(iii) (.05)(iii) (.03) (.22)(iii) (.12)(iii) (.02)
Net realized and unrealized gain
(loss) on investments ............. 5.50 .90 1.55 5.43 .89 (.53)
---------- ---------- ---------- ----------- ---------- ----------
Total from investment operations ..... 5.38 .85 1.52 5.21 .77 (.55)
Distributions from net realized gains (.84) (.54) -- (.84) (.54) --
---------- ---------- ---------- ----------- ---------- ----------
Net asset value, end of period .......$ 13.57 $ 9.03 $ 8.72 $ 13.27 $ 8.90 $ 8.67
========== ========== ========== =========== ========== ==========
Total Return (iv) .................... 63.9% 10.7% 21.2% 62.9% 9.9% (6.0%)
========== ========== ========== =========== ========== ==========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ..................$ 147,929 $ 54,415 $ 15,572 $ 43,789 $ 2,967 $ 631
========== ========== ========== =========== ========== ==========
Ratio of expenses excluding interest
to average net assets ............ 1.38% 1.42% 1.45% 2.12% 2.18% 2.18%
========== ========== ========== =========== ========== ==========
Ratio of expenses including interest
to average net assets ............ 1.44% 1.49% 1.53% 2.21% 2.25% 2.25%
========== ========== ========== =========== ========== ==========
Ratio of net investment income (loss)
to average net assets ............ (.98%) (.67%) (.85%) (1.80%) (1.46%) (1.80%)
========== ========== ========== =========== ========== ==========
Portfolio Turnover Rate ............ 186.93% 184.07% 157.63% 186.93% 184.07% 157.63%
========== ========== ========== =========== ========== ==========
Amount of debt outstanding
at end of period ................. -- -- -- -- -- --
========== ========== ========== =========== ========== ==========
Average amount of debt
outstanding during the period . $7,758,649 $2,814,493 $2,940,097 $ 7,758,649 $2,814,493 $2,940,097
========== ========== ========== =========== ========== ==========
Average daily number of
portfolio shares outstanding
during the period ............ 42,330,298 29,012,853 23,217,597 42,330,298 29,012,853 23,217,597
========== ========== ========== =========== ========== ==========
Average amount of debt per portfolio
share during the period ....... $ 0.18 $ 0.10 $ 0.13 $ 0.18 $ 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) Initially offered August 1, 1997.
(vi) Initially offered January 1, 1997.
(vii)Ratios have been annualized; total return has not been annualized.
See Notes to Financial Statements.
29
<PAGE>
THE ALGER FUND
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1999
SHORT-TERM CORPORATE PRINCIPAL
NOTES--62.3% AMOUNT VALUE
--------- -----
AGRICULTURE--3.3%
Cargill Inc.,
5.68%, 1/13/00........................... $8,000,000 $ 7,907,857
-------------
AUTOMOTIVE EQUIPMENT
& SERVICES--6.3%
Ford Motor Credit Company,
5.91%, 1/13/00 .......................... 7,900,000 7,805,325
General Motors Acceptance
Corporation,
5.25%, 11/17/99 ......................... 7,400,000 7,382,733
-------------
15,188,058
-------------
BANKS--3.3%
Merita North America Inc.,
6.07%, 1/18/00 .......................... 8,000,000 7,894,787
-------------
COMMUNICATIONS--3.3%
France Telecom,
5.23%, 11/03/99(a) ...................... 8,000,000 7,997,676
-------------
DRUGS & HEALTH CARE--3.3%
Bay State Health Corporation,
5.37%, 12/08/99 ......................... 8,000,000 7,955,847
-------------
FINANCIAL SERVICES--26.4%
Accor S.A.,
5.40%, 12/01/99 ......................... 8,000,000 7,964,000
American Express Credit
Corporation,
5.19%, 11/15/99 ......................... 8,000,000 7,983,853
Atlantis One Funding Corp.,
6.02%, 1/18/00 .......................... 8,000,000 7,895,653
CBA Delaware Finance Inc.,
5.37%, 12/03/99 ......................... 8,000,000 7,961,813
General Electric Capital
Corporation,
5.20%, 11/15/99 ......................... 8,000,000 7,983,822
FINANCIAL SERVICES--(CONT.)
Grand Funding Corporation,
5.85%, 1/06/00(a)........................ $8,000,000 7,914,200
Natexis Banque S.A.,
5.37%, 12/22/99 ......................... 8,000,000 7,939,140
San Paolo U.S. Financial Company,
5.27%, 11/02/99 ......................... 8,000,000 7,998,829
-------------
63,641,310
-------------
FOODS & BEVERAGES--6.5%
Coca-Cola Co. (The),
5.26%, 11/23/99 ......................... 7,900,000 7,874,606
General Mills, Inc.,
5.63%, 1/25/00 .......................... 8,000,000 7,893,656
-------------
15,768,262
-------------
LEISURE &
ENTERTAINMENT--3.3%
Walt Disney Company (The),
4.75%, 11/04/99 ......................... 8,000,000 7,996,834
-------------
MACHINERY &
EQUIPMENT--3.3%
Cooperative Association of
Tractor Dealers Inc., Cl. A,
5.40%, 11/16/99 ......................... 8,000,000 7,982,000
-------------
REAL ESTATE--3.3%
Yorkshire Building Society,
5.30%, 12/09/99 ......................... 8,000,000 7,955,245
-------------
Total Short-Term Corporate Notes
(Cost $150,287,876) ..................... 150,287,876
-------------
Certificate of Deposit--3.3%
Banco Espirito Santo e Commercial,
de Lisboa,
5.23%, 11/09/99
(Cost $7,990,702) ....................... 8,000,000 7,990,702
-------------
30
<PAGE>
THE ALGER FUND
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
October 31, 1999
PRINCIPAL
AMOUNT VALUE
--------- -----
U.S. GOVERNMENT &
AGENCY OBLIGATIONS--43.0%
Federal Home Loan Bank,
5.16%, 11/01/99....................... $53,800,000 $ 53,800,000
World Bank Corporation
Discount Notes,
5.16%, 11/01/99....................... 50,000,000 50,000,000
-------------
Total U.S. Government
& Agency Obligations
(Cost $103,800,000) ..................... 103,800,000
-------------
Total Investments
(Cost $262,078,578)(b) .................. 108.6% 262,078,578
Liabilities In Excess
of Other Assets ......................... (8.6) (20,768,742)
------------- -------------
Net Assets ................................ 100.0% $241,309,836
============= =============
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b) At October 31, 1999, the cost of investments for federal income taxes
purposes was the same as the cost for financial reporting purposes.
See Notes to Financial Statements.
31
<PAGE>
THE ALGER FUND
Alger MONEY MARKET PORTFOLIO
Financial Highlights
For a share outstanding throughout the year
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ...... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- -------- -------- -------- --------
Net investment income ................... .0423 .0476 .0479 .0521 .0573
Dividends from net investment income .... (.0423) (.0476) (.0479) (.0521) (.0573)
--------- -------- -------- -------- --------
Net asset value, end of year ............ $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ======== ======== ======== ========
Total Return ............................ 4.3% 4.9% 4.9% 5.3% 5.9%
========= ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of year
(000's omitted) ....................... $ 241,310 $ 172,862 $ 179,407 $ 285,702 $ 185,822
========= ======== ======== ======== ========
Ratio of expenses to average net assets . .72% .76% .81% .41% .29%
========= ======== ======== ======== ========
Decrease reflected in above
expense ratios due to
management fee waivers ................ -- -- -- .38% .50%
========= ======== ======== ======== ========
Ratio of net investment income
to average net assets ................. 4.37% 4.84% 4.76% 5.18% 5.73%
========= ======== ======== ======== ========
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
THE ALGER FUND
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share amounts)
October 31, 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 ............ $ 1,002,261 $ 496,166 $ 77,655 $ 313,239 $ 772,522 $ 262,079
Cash ....................................... 67 110 45 42 167 910
Receivable for investment securities sold .. 28,465 2,885 1,902 3,297 24,757 --
Receivable for shares of beneficial
interest sold .......................... 31,648 1,795 1,766 1,678 12,158 15,601
Dividends and interest
receivable .............................. 199 4 175 11 114 --
Prepaid expenses ........................... 93 53 14 45 60 90
----------- ----------- ----------- ----------- ----------- -----------
Total Assets ........................... 1,062,733 501,013 81,557 318,312 809,778 278,680
----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for investment
securities purchased .................... 28,860 2,249 1,402 6,743 8,142 --
Payable for shares of beneficial
interest redeemed ....................... 1,495 291 273 2,786 13,550 36,979
Interest payable ........................... -- 1 -- -- 32 --
Accrued investment management fees ......... 586 349 47 195 514 143
Accrued distribution fees .................. 456 272 39 159 372 --
Accrued shareholder servicing fees ......... 195 103 16 61 151 --
Dividends payable-Note 2(c) ................ -- -- -- -- -- 94
Accrued expenses ........................... 434 261 59 156 328 154
----------- ----------- ----------- ----------- ----------- -----------
Total Liabilities ...................... 32,026 3,526 1,836 10,100 23,089 37,370
----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS ................................. $ 1,030,707 $ 497,487 $ 79,721 $ 308,212 $ 786,689 $ 241,310
=========== =========== =========== =========== =========== ===========
Net Assets Consist of:
Paid-in capital ......................... $ 734,085 $ 331,853 $ 67,630 $ 230,171 $ 552,645 $ 241,386
Undistributed net investment
income (accumulated loss) ............. (19,428) (51,039) 160 (10,312) (16,864) --
Undistributed net realized
gain (accumulated loss) ............... 184,809 108,128 6,512 63,225 133,837 (76)
Net unrealized appreciation .............. 131,241 108,545 5,419 25,128 117,071 --
----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS ................................. $ 1,030,707 $ 497,487 $ 79,721 $ 308,212 $ 786,689 $ 241,310
=========== =========== =========== =========== =========== ===========
Class A
Net Asset Value Per Share ................ $ 15.47 $ 10.35 $ 20.95 $ 24.59 $ 13.57 --
=========== =========== =========== =========== =========== ===========
Offering Price Per Share ................. $ 16.24 $ 10.87 $ 21.99 $ 25.82 $ 14.25 --
=========== =========== =========== =========== =========== ===========
Class B
Net Asset Value and
Offering Price Per Share ............... $ 15.09 $ 10.13 $ 20.59 $ 23.99 $ 13.28 $ 1.00
=========== =========== =========== =========== =========== ===========
Class C
Net Asset Value and
Offering Price Per Share ............... $ 15.08 $ 10.13 $ 20.65 $ 23.96 $ 13.27 --
=========== =========== =========== =========== =========== ===========
Shares of beneficial interest
outstanding-Note 6
Class A .................................. 14,798 6,762 596 2,003 10,898 --
=========== =========== =========== =========== =========== ===========
Class B .................................. 51,047 41,432 2,555 10,342 44,814 241,386
=========== =========== =========== =========== =========== ===========
Class C .................................. 2,089 756 708 452 3,299 --
=========== =========== =========== =========== =========== ===========
*Identified cost ........................... $ 871,020 $ 387,621 $ 72,236 $ 288,111 $ 655,451 $ 262,079
=========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
33
<PAGE>
THE ALGER FUND
STATEMENTS OF OPERATIONS (in thousands)
For the year ended October 31, 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 ................................. $ 2,883 $ 976 $ 107 $ 475 $ 1,002 $ --
Interest .................................. 2,536 2,076 1,069 1,315 1,189 14,432
-------- -------- ------ ------- -------- -------
Total Income .............................. 5,419 3,052 1,176 1,790 2,191 14,432
Expenses:
Management fees-Note 3(a) ................. 5,775 4,578 347 2,093 4,213 1,417
Distribution fees-Note 3(b):
Class B ................................. 4,336 3,539 246 1,666 2,939 --
Class C .............................. 104 46 46 41 136 --
Shareholder servicing fees-Note 3(f) ..... 1,925 1,347 116 654 1,239 --
Interest on line of credit utilized-Note 5 69 304 1 32 429 7
Custodian fees ........................... 94 67 20 39 62 52
Transfer agent fees and
expenses-Note 3(e) ...................... 1,121 1,010 107 456 1,054 451
Professional fees ......................... 27 23 19 26 19 21
Trustees' fees ............................ 5 5 5 5 5 5
Registration fees ......................... 165 34 36 50 133 73
Miscellaneous ............................. 155 128 8 94 55 24
-------- -------- ------ ------- -------- -------
Total Expenses ............................ 13,776 11,081 951 5,156 10,284 2,050
-------- -------- ------ ------- -------- -------
NET INVESTMENT
INCOME (LOSS) ............................ (8,357) (8,029) 225 (3,366) (8,093) 12,382
-------- -------- ------ ------- -------- -------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments ..... 182,147 90,139 6,539 58,127 125,466 (2)
Net change in unrealized appreciation
(depreciation) on investments ............. 38,830 64,884 2,433 11,776 80,515 --
-------- -------- ------ ------- -------- -------
Net realized and unrealized
gain (loss) on investments ................ 220,977 155,023 8,972 69,903 205,981 (2)
-------- -------- ------ ------- -------- -------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS ............................... $212,620 $146,994 $9,197 $66,537 $197,888 $12,380
-------- -------- ------ ------- -------- -------
</TABLE>
See Notes to Financial Statements
34
<PAGE>
THE ALGER FUND
ALGER CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF CASH FLOWS (in thousands)
For the year ended October 31, 1999
<TABLE>
<CAPTION>
Increase (decrease) in cash:
Cash flows from operating activities:
<S> <C>
Dividends received ......................................................... $ 969
Interest received .......................................................... 1,189
Interest paid .............................................................. (402)
Operating expenses paid .................................................... (9,051)
Purchase of investment securities .......................................... (1,174,343)
Purchase of short-term securities, net ..................................... (4,926)
Proceeds from disposition of investment securities ......................... 895,980
Other ...................................................................... (34)
-----------
Net cash used in operating activities .................................. (290,618)
-----------
Cash flows from financing activities:
Dividends paid ........................................................... (24,752)
Proceeds from shares sold and dividends reinvested ......................... 3,572,398
Payments on shares redeemed ................................................ (3,256,993)
-----------
Net cash provided by financing activities ............................ 290,653
-----------
Net increase in cash ........................................................... 35
Cash--beginning of year ........................................................ 132
-----------
Cash--end of year .............................................................. $ 167
===========
Reconciliation of net increase in net assets to net cash used in operating
activities:
Net increase in net assets resulting from operations ..................... $ 197,888
Increase in investments .................................................. (267,408)
Increase in interest and dividends receivable ............................ (33)
Increase in receivable for investment securities sold .................... (13,432)
Decrease in payable for investment securities purchased .................. (2,450)
Net realized gain ........................................................ (125,466)
Net increase in unrealized appreciation .................................. (80,515)
Increase in accrued expenses and other liabilities ....................... 831
Net increase in other assets ............................................. (33)
-----------
Net cash used in operating activities ................................ $ (290,618)
===========
</TABLE>
See Notes to Financial Statements
35
<PAGE>
THE ALGER FUND
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
For the year ended October 31, 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) ............ $ (8,357) $ (8,029) $ 225 $ (3,366) $ (8,093) $ 12,382
Net realized gain (loss) on investments . 182,147 90,139 6,539 58,127 125,466 (2)
Net change in unrealized appreciation
(depreciation) on investments ........ 38,830 64,884 2,433 11,776 80,515 --
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations ........ 212,620 146,994 9,197 66,537 197,888 12,380
----------- ----------- ----------- ----------- ----------- -----------
Dividends and distributions to
shareholders from:
Net investment income
Class A ............................. -- -- (7) -- -- --
Class B ............................. -- -- (31) -- -- (12,382)
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) (12,382)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) from shares of
beneficial interest transactions:
Class A ............................. 70,710 (2,005) 10,077 11,740 64,516 --
Class B ............................. 258,777 (119,313) 27,338 22,482 213,052 68,450
Class C ............................. 26,251 2,039 13,435 8,496 35,662 --
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
shares of beneficial
interest transactions-Note 6 .......... 355,738 (119,279) 50,850 42,718 313,230 68,450
----------- ----------- ----------- ----------- ----------- -----------
Total increase (decrease) ......... 514,580 (27,655) 58,751 82,072 486,366 68,448
Net Assets:
Beginning of year .................... 516,127 525,142 20,970 226,140 300,323 172,862
----------- ----------- ----------- ----------- ----------- -----------
End of year .......................... $ 1,030,707 $ 497,487 $ 79,721 $ 308,212 $ 786,689 $ 241,310
=========== =========== =========== =========== =========== ===========
Undistributed net investment
income (accumulated loss) ............ $ (19,428) $ (51,039) $ 160 $ (10,312) $(16,864) $ --
=========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
36
<PAGE>
THE ALGER FUND
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
37
<PAGE>
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS
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 dis-tributions 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 Rev-
38
<PAGE>
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
enue Code applicable to regulated investment companies and to distribute all of
its investment company taxable 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, 1999, 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 2000 and 2006.
(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
October 31, 1999, such excess carried forward was approximately $15,036,000,
$15,666,000, $906,000, $4,023,000 and $9,013,000 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 year ended October 31, 1999, the
initial sales charges and contingent deferred
39
<PAGE>
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
sales charges retained by the Distributor were approximately $139,000 and
$2,681,000, 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 year ended October 31, 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 $2,167,331, $863,081, $76,086, $776,224 and
$1,040,840, 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 year ended October 31, 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 $951,477, $892,063, $97,317, $403,633, $956,643 and $407,807, respectively,
for services provided by Alger Services. In addition, during the year ended
October 31, 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 $169,160,
$117,860, $9,292, $51,890, $97,200 and $43,080, 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 year ended October 31, 1999 (in thousands):
Purchases Sales
--------- -----
Growth Portfolio......... $1,718,333 $1,481,435
Small Capitalization
Portfolio.............. 553,198 671,503
Balanced Portfolio....... 72,618 44,471
MidCap Growth
Portfolio.............. 492,308 487,498
Capital Appreciation
Portfolio.............. 1,171,893 909,475
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 year ended October 31, 1999, the Capital Appreciation Portfolio had
borrowings which averaged $7,758,649 at a weighted average interest rate of
5.46%.
40
<PAGE>
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (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 YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Growth Portfolio
Class A:
Shares sold..................... 93,010,120 $1,345,815,062 21,100,549 $ 251,594,946
Shares converted from Class B... 765,156 10,723,156 2,515,306 28,918,933
Dividends reinvested............ 676,360 8,211,015 1,012,458 9,861,339
Shares redeemed................. (89,655,055) (1,294,039,354) (19,143,051) (230,266,858)
------------ ---------------- ------------ -------------
Net increase.................... 4,796,581 $ 70,709,879 5,485,262 $ 60,108,360
============ ================ ============ =============
Class B:
Shares sold..................... 118,806,283 $1,673,356,937 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..... (779,638) (10,723,156) (2,536,424) (28,918,933)
Shares redeemed................. (102,786,502) (1,442,428,434) (27,523,316) (322,737,781)
------------ ---------------- ------------ -------------
Net increase ................... 18,473,294 $ 258,776,843 6,063,981 $ 61,702,656
============ ================ ============ =============
Class C:
Shares sold..................... 2,593,259 $ 37,501,908 921,931 $ 11,159,179
Dividends reinvested............ 29,615 353,009 5,128 49,487
Shares redeemed................. (810,252) (11,603,192) (668,318) (8,358,166)
------------ ---------------- ------------ -------------
Net increase.................... 1,812,622 $ 26,251,725 258,741 $ 2,850,500
============ ================ ============ =============
Alger Small Capitalization Portfolio
Class A:
Shares sold..................... 149,420,839 $1,465,519,097 61,503,618 $ 589,789,058
Shares converted from Class B... 1,236,266 12,164,811 1,666,233 16,755,718
Dividends reinvested............ 571,350 4,845,050 120,213 1,097,543
Shares redeemed................. (151,276,967) (1,484,533,596) (58,990,985) (572,313,304)
------------ ---------------- ------------ --------------
Net increase (decrease)......... (48,512) $ (2,004,638) 4,299,079 $ 35,329,015
============ ================ ============ =============
Class B:
Shares sold..................... 314,933,540 $3,028,416,304 176,830,341 $1,671,198,375
Dividends reinvested............ 5,742,442 47,777,113 2,899,072 26,265,587
Shares converted to Class A..... (1,259,686) (12,164,811) (1,684,647) (16,755,718)
Shares redeemed................. (331,525,302) (3,183,341,861) (180,951,992) (1,740,652,109)
------------ ---------------- ------------ --------------
Net decrease.................... (12,109,006) $ (119,313,255) (2,907,226) $ (59,943,865)
============ ================ ============ =============
Class C:
Shares sold..................... 9,797,623 $ 94,352,794 2,997,520 $ 28,283,527
Dividends reinvested............ 21,996 182,783 2,485 22,515
Shares redeemed................. (9,626,258) (92,496,428) (2,469,935) (24,063,272)
------------ ---------------- ------------ --------------
Net increase.................... 193,361 $ 2,039,149 530,070 $ 4,242,770
============ ================ ============ =============
</TABLE>
41
<PAGE>
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Balanced Portfolio
Class A:
Shares sold..................... 4,284,737 $ 85,443,461 140,560 $ 2,276,674
Shares converted from Class B... 6,645 130,732 7,838 120,962
Dividends reinvested............ 5,413 91,866 4,622 65,126
Shares redeemed................. (3,781,145) (75,588,660) (100,269) (1,638,040)
------------ -------------- ------------ ------------
Net increase.................... 515,650 $ 10,077,399 52,751 $ 824,722
============ ============== ============ ============
Class B:
Shares sold..................... 5,166,089 $ 99,682,060 710,530 $ 11,206,494
Dividends reinvested............ 64,040 1,075,875 122,289 1,714,490
Shares converted to Class A..... (6,739) (130,732) (7,894) (120,962)
Shares redeemed................. (3,827,743) (73,289,320) (433,903) (6,908,568)
------------ -------------- ------------ ------------
Net increase.................... 1,395,647 $ 27,337,883 391,022 $ 5,891,454
============ ============== ============ ============
Class C:
Shares sold..................... 886,244 $ 17,342,456 21,158 $ 335,495
Dividends reinvested............ 1,551 26,116 473 6,646
Shares redeemed................. (199,452) (3,933,326) (4,478) (70,500)
------------ -------------- ------------ ------------
Net increase.................... 688,343 $ 13,435,246 17,153 $ 271,641
============ ============== ============ ============
Alger MidCap Growth Portfolio Class A:
Shares sold..................... 51,120,798 $1,191,539,173 17,759,678 $373,805,169
Shares converted from Class B... 37,885 886,475 30,842 653,860
Dividends reinvested............ 131,312 2,575,026 28,826 526,934
Shares redeemed................. (50,818,422) (1,183,261,041) (16,530,334) (352,045,613)
------------ -------------- ------------ ------------
Net increase.................... 471,573 $ 11,739,633 1,289,012 $ 22,940,350
============ ============== ============ ============
Class B:
Shares sold..................... 19,227,997 $ 433,987,342 9,670,177 $202,901,737
Dividends reinvested............ 1,126,031 21,676,093 952,240 17,273,632
Shares converted to Class A..... (38,709) (886,475) (31,165) (653,860)
Shares redeemed................. (19,160,883) (432,294,954) (8,858,104) (186,765,967)
------------ -------------- ------------ ------------
Net increase.................... 1,154,436 $ 22,482,006 1,733,148 $ 32,755,542
============ ============== ============ ============
Class C:
Shares sold..................... 591,573 $ 13,714,796 253,315 $ 5,217,737
Dividends reinvested............ 13,611 261,599 761 13,810
Shares redeemed................. (237,585) (5,479,710) (173,525) (3,536,369)
------------ -------------- ------------ ------------
Net increase.................... 367,599 $ 8,496,685 80,551 $ 1,695,178
============ ============== ============ ============
</TABLE>
42
<PAGE>
THE ALGER FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Capital Appreciation Portfolio
Class A:*
Shares sold..................... 168,941,613 $2,013,311,342 58,266,912 $ 523,464,891
Shares converted from Class B... 175,365 2,161,488 192,120 1,760,871
Dividends reinvested............ 316,690 2,952,608 109,140 843,296
Shares redeemed................. (164,563,152) (1,953,909,113) (54,325,476) (492,122,233)
-------------- -------------- -------------- --------------
Net increase ................... 4,870,516 $ 64,516,325 4,242,696 $ 33,946,825
============== ============== ============== ==============
Class B:*
Shares sold..................... 127,184,924 $1,494,488,538 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..... (178,924) (2,161,488) (194,292) (1,760,871)
Shares redeemed................. (111,652,359) (1,299,022,116) (63,290,757) (561,910,894)
-------------- -------------- -------------- --------------
Net increase.................... 17,507,824 $ 213,051,616 2,739,198 $ 18,172,490
============== ============== ============== ==============
Class C:*
Shares sold..................... 4,353,255 $ 52,799,128 1,671,939 $ 14,867,062
Dividends reinvested............ 25,529 233,926 6,093 46,713
Shares redeemed................. (1,413,209) (17,370,934) (1,417,251) (12,595,276)
-------------- -------------- -------------- --------------
Net increase.................... 2,965,575 $ 35,662,120 260,781 $ 2,318,499
============== ============== ============== ==============
Alger Money Market Portfolio
Shares sold..................... 9,851,815,099 $9,851,815,099 3,890,533,124 $3,890,533,124
Dividends reinvested............ 9,402,809 9,402,809 8,949,498 8,949,498
Shares redeemed................. (9,792,767,208) (9,792,767,208) (3,906,034,069) (3,906,034,069)
-------------- -------------- -------------- --------------
Net increase (decrease)........ 68,450,700 $ 68,450,700 (6,551,447) $ (6,551,447)
============== ============== ============== ==============
- ----------------
* Adjusted to reflect the effect of a 3 for 1 stock split which occurred on
January 8, 1999.
</TABLE>
43
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and
Board of Trustees of The Alger Fund:
We have audited the statements of assets and liabilities, including the
schedules of investments, of The Alger Fund (a Massachusetts business trust
comprising, respectively, the Growth, Small Capitalization, Balanced, MidCap
Growth, Capital Appreciation and Money Market Portfolios) as of October 31,
1999, and the related statements of operations and cash flows for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting The Alger Fund, as of October 31,
1999, the results of their operations and cash flows for the year then ended,
the changes in their net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
New York, New York
December 7, 1999
44
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
[This Page Intentionally Left Blank]
<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
Stephen E. O'Neil
Nathan E. Saint-Amand
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.
REP109
================================================================================
THE
ALGER
FUND
[Logo]
Alger Growth Portfolio
Alger Small Capitalization Portfolio
Alger Balanced Portfolio
Alger MidCap Growth Portfolio
Alger Capital Appreciation Portfolio
Alger Money Market Portfolio
|
ANNUAL |
REPORT | October 31, 1999
|
