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TABLE OF CONTENTS
2 ..........Risk/Return Summary: Investments,
Risks & Performance
2 ......Investments
2 ......Risks
THE ALGER FUND
2 ......Performance
ALGER MONEY MARKET PORTFOLIO
3 ..........Fees and Expenses
PROSPECTUS 3 ..........Additional Information About the
Portfolio's Investments
AUGUST 1, 2000 4 ..........Management & Organization
4 ..........Shareholder Information
Purchasing and Redeeming
Shares ...........................5
Investment Instructions ..........5
Redemption Instructions ..........7
8 ..........Financial Highlights
Back Cover: How to obtain more information
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<PAGE>
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RISK/RETURN SUMMARY: INVESTMENTS, RISKS & PERFORMANCE
INVESTMENTS: THE ALGER FUND - ALGER MONEY MARKET PORTFOLIO
GOAL
THE ALGER MONEY MARKET PORTFOLIO SEEKS TO EARN HIGH CURRENT INCOME CONSISTENT
WITH PRESERVING PRINCIPAL AND LIQUIDITY.
APPROACH
It invests in money market securities which are rated within the 2 highest
credit categories at the time of purchase. These money market securities include
commercial paper, certificates of deposit, time deposits, bankers acceptances,
U.S. Government securities and corporate bonds having less than 397 days
remaining until maturity.
[GRAPHIC OMITTED]
RISKS
The main risks of investing in the portfolio are:
o while the portfolio seeks to maintain a price of $1.00 per share, an
investment in the portfolio is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or other government
agency, so it is possible to lose money by investing in the portfolio
o an investment in the portfolio may not keep pace with inflation
The portfolio may appeal to investors who seek maximum liquidity and capital
preservation together with current income.
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PERFORMANCE
The following bar chart and the table beneath it give you some indication of the
risks of investing in the portfolio by showing changes in the portfolio's
performance from year to year and by showing the portfolio's average annual
returns for the indicated periods. Remember that how the portfolio has performed
in the past is not necessarily an indication of how it will perform in the
future.
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ALGER MONEY MARKET PORTFOLIO
Annual Total Return as of December 31 each year (%)*
[Figures below represent chart in printed piece]
8.70 6.45 3.92 3.05 4.20 5.94 5.16 4.92 4.78 4.42
90 91 92 93 94 95 96 97 98 99
Best Quarter: Q2 1990 2.14%
Worst Quarter: Q3 1993 0.73%
Average Annual Total Return as of December 31, 1999
Since
1 Year 5 Years 10 Years Inception
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Money Market (Inception 4.42% 5.04% 5.14% 5.99%
11/11/86)
Seven-day yield ended December 31, 1999: 4.35%. For the portfolio's current
7-day yield, telephone 800-992-3863 toll-free.
* The portfolio's total return for the period from January 1, 2000 through
June 30, 2000 was 2.61%.
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FEES AND EXPENSES
Investors incur certain fees and expenses in connection with an investment in
the portfolio. The following table shows the fees and expenses that you may
incur if you buy and hold shares of the portfolio.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING
SHAREHOLDER FEES EXPENSES
(fees paid directly (expenses that are deducted
from your investment) from Fund assets)
--------------------------------------------- ------------------------------------------------------
Maximum deferred
sales charge
(load) as a % of
Maximum sales charge purchase price or
(load) on purchases as redemption proceeds, Management Distribution Other TOTAL ANNUAL FUND
% of purchase price whichever is lower Fees (12b-1) Fees Expenses OPERATING EXPENSES
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
ALGER MONEY None None .50% None .22% .72%
MARKET PORTFOLIO
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXAMPLE
The following example, which reflects the shareholder fees and operating
expenses listed previously, is intended to help you compare the cost of
investing in the portfolio with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the portfolio for the time
periods indicated. The example also assumes that your investment has a 5% return
each year and that the portfolio's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
You would pay the following expenses regardless of whether you redeemed your
shares at the end of the period:
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1 Year 3 Years 5 Years 10 Years
================================================================================
ALGER MONEY $74 $230 $401 $895
MARKET PORTFOLIO
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ADDITIONAL INFORMATION ABOUT
THE PORTFOLIO'S INVESTMENTS
Other securities the portfolio may invest in are discussed in the Fund's
Statement of Additional Information (see back cover).
3
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MANAGEMENT AND ORGANIZATION
MANAGER
Fred Alger Management, Inc.
One World Trade Center
Suite 9333
New York, NY 10048
The Manager has been an investment adviser since 1964, and manages investments
totaling (at 6/30/00) $13.21 billion in mutual fund assets as well as $7.94
billion in other assets. The Manager makes investment decisions for the
portfolio and continuously reviews and administers its investment program. These
management responsibilities are subject to the supervision of the Fund's Board
of Trustees. The Fund has had the same Manager since inception, and the
portfolio pays the Manager fees at an annual rate based on a percentage of
average daily net assets of .50%.
PORTFOLIO MANAGERS
David Alger and Steven Thumm are the individuals responsible for the day-to-day
management of the portfolio's investments. Mr. Alger, a co-manager of the
portfolio since its inception, has been employed by the Manager as Executive
Vice President and Director of Research since 1971, and as President since 1995.
Steven Thumm, a co-manager of the portfolio since 1995, has been employed by the
Manager as a fixed income analyst since 1991.
[GRAPHIC OMITTED]
SHAREHOLDER INFORMATION
DISTRIBUTOR
Fred Alger & Company, Incorporated
30 Montgomery Street
Jersey City, NJ 07302
TRANSFER AGENT
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, NJ 07302
NET ASSET VALUE
The price of one share of the portfolio is its "net asset value", or NAV. The
NAV for the portfolio is calculated as of 12:00 noon on each day the New York
Stock Exchange is open. Generally, the Exchange is closed on weekends and
various national holidays. It may close on other days from time to time.
The assets of the portfolio are valued on the basis of amortized cost.
DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions by the portfolio, which normally consist solely of
net investment income, are declared daily and paid monthly.
Unless you choose to receive cash payments by checking the box on your New
Account Application, any dividends and distributions will be reinvested
automatically at the NAV on their payment dates. If you have chosen cash
payments and a payment is returned to the Fund as undeliverable, upon receipt
that payment will be reinvested in the porfolio's shares at the next NAV. All
subsequent payments
4
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will be reinvested until you reinstate your cash election and provide a valid
mailing address.
Regardless of whether you choose to take distributions in cash or reinvest them
in the portfolio, they may be subject to federal and state taxes. Because
everyone's tax situation is unique, see a tax advisor about federal, state and
local tax consequences of investing in the portfolio.
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NAV (NET ASSET VALUE) IS COMPUTED BY ADDING TOGETHER THE VALUE OF
THE PORTFOLIO'S INVESTMENTS PLUS CASH AND OTHER ASSETS,
SUBTRACTING ITS LIABILITIES AND THEN DIVIDING THE RESULT
BY THE NUMBER OF ITS OUTSTANDING SHARES.
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PURCHASING AND REDEEMING SHARES
You can purchase or redeem some or all of your shares on any day the New York
Stock Exchange is open. They will be processed at the NAV next calculated after
your purchase or redemption request is received in good order by the Transfer
Agent. Ordinarily, the Fund will issue your redemption check within 7 days after
the Transfer Agent accepts your redemption request. However, when you buy shares
with a check or via TelePurchase or Automatic Investment Plan, no check will be
issued against those funds for up to 15 days. The Transfer Agent or Fund may
reject any purchase order.
Unless your portfolio account is a Fund-sponsored tax-deferred retirement plan,
if it falls below $100 because of redemptions, the Fund may send you written
notice providing 60 days to restore it to the minimum balance. After 60 days,
the Fund may close your account and redeem all of your shares if your account
remains below the minimum.
Different ways to purchase and redeem are listed below and on the next page. For
telephone transactions, the Fund and Transfer Agent have reasonable procedures
in place to determine that the instructions are genuine. They include requesting
personal identification and recording calls. If the Fund and Transfer Agent
follow these procedures, they are not liable for acting in good faith on
telephone instructions.
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MINIMUM INVESTMENTS
Initial Subsequent
Investment Investment
--------------------------------------------------------
Regular account $500 $25
Traditional IRA $0 $25
Roth IRA $0 $25
Education IRA $0 $25
SIMPLE IRA $0 $25
Keogh $0 $25
401(k) $0 $25
403(b) $0 $25
Automatic Investment $25 $25
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INVESTMENT INSTRUCTIONS
TO OPEN AN ACCOUNT:
BY MAIL:
--------------------------------------------------------
(make checks payable to The Alger Fund)
Mail your completed application and check to:
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, NJ 07302
BY FED WIRE:
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Have your bank wire funds to State Street Bank & Trust
Company. Contact Alger Shareholder Services at
800-992-3863 for details.
Forward the completed New Account Application to
Alger Shareholder Services stating that the account
was established by wire transfer and the date and
amount of the transfer.
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CONTACT:
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CALL OR VISIT your broker-dealer, investment adviser, or bank or other
financial institution.
AUTOMATICALLY:
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Complete the Automatic Investment option on your account application. Minimum
automatic investment is $25.
VIA OUR WEBSITE:
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Visit The Alger Fund website to download a New Account Application -
www.algerfund.com Mail the completed application with your investment to Alger
Shareholder Services, Inc.
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TO MAKE ADDITIONAL INVESTMENTS IN AN EXISTING ACCOUNT:
BY MAIL:
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Complete and return the Invest by Mail slip attached to your Alger Fund
Statement and return slip with your investment to:
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, NJ 07302
BY TELEPHONE OR FED WIRE:
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TELEPURCHASE* allows you to purchase shares by telephone (minimum $500, maximum
$50,000) by filling out the appropriate section of the New Account Application
or returning the Telephone Services Form. The funds will be transferred from
your designated bank account to your Fund account normally within one business
day. Wire - Have your bank wire funds to State Street Bank & Trust Company.
Contact Alger Shareholder Services for details.
*NOT AVAILABLE FOR RETIREMENT PLANS
CONTACT:
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CALL OR VISIT your broker dealer, investment adviser, or bank or other
financial institution.
AUTOMATICALLY:
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THE ALGER FUND AUTOMATIC INVESTMENT PLAN allows you to make automatic purchases
on the 15th and/or the last business day of each month. Fill out the
appropriate information on the New Account Application or contact The Alger
Fund to receive an Additional Services Form. Minimum automatic investment is
$25.
GOVERNMENT DIRECT DEPOSIT* allows you to arrange direct deposit of U.S. federal
government payments into your Fund account and Payroll Savings Plan* allows you
to arrange direct deposit of a portion of your payroll directly to your Alger
Fund Account. Call for a Payroll Savings Plan Form.
*NOT AVAILABLE FOR RETIREMENT PLANS
VIA OUR WEBSITE:
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Visit the Alger Fund website to download all forms to add services to your
account - www.algerfund.com Mail your completed forms to Alger Shareholder
Services, Inc. In addition, you can perform certain transactions
electronically, via our website.
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EXCHANGES
You can exchange shares of the portfolio for shares of any other portfolio of
the Fund or for shares of Spectra Fund, another fund advised by the Manager,
subject to certain restrictions.Sales charges will apply in certain exchanges
from the portfolio. Remember that for tax purposes an exchange is considered a
sale and a purchase, so you may realize a taxable gain or a loss when you
exchange shares. For more information, call the Fund toll-free at (800)
992-3863 or consult the Statement of Additional Information (see back cover).
Call for a prospectus and read it before you exchange your shares.
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The Fund may redeem some of your shares "in kind", which means that some of the
proceeds will be paid with securities the Fund owns instead of cash.
Although the portfolio seeks to maintain a price of $1.00 per share, shares may
be worth more or less when you redeem them than they were at the time you bought
them. For tax purposes, this means that when you redeem them you may realize a
short- or long-term capital gain or loss, depending upon how long you have held
the shares.
6
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To Redeem Shares of the Portfolio:
By Mail:
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Send a letter of instruction to Alger Shareholder Services, Inc. which includes
- account number
- portfolio name
- number of shares or dollar amount of redemption
- where to send the proceeds
- signature(s) of registered owner(s)
- a signature guarantee is required if
-- your redemption is for more than $25,000; or
-- you want the check sent to a different address than the one we have
on file; or
-- you want the check to be made payable to someone other than the
registered owners we have on file; or
-- you have changed your address on file within the past 60 days.
BY TELEPHONE*:
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Call 800-992-3863 to sell shares (unless you refuse this service on your New
Account Application). The Fund will send you a check for amounts up to $5,000.
You can choose to receive a check or a wire for amounts over $5,000. Note, you
cannot request a check if you have changed your address on file within the past
60 days.
TELEREDEMPTION allows you to redeem shares by telephone by filling out the
appropriate section of the New Account Application or returning the Telephone
Services Form. The funds will be transferred to your bank account in an amount
between $500 and $50,000, normally within 2 business days. Shares issued in
certificate form are not eligible for this service.
*NOT AVAILABLE FOR RETIREMENT PLANS
BY CHECK REDEMPTION PRIVILEGE:
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You may redeem shares in your portfolio account by writing a check for at least
$500. Dividends are earned until the check clears. If you mark the appropriate
box on the New Account Application and sign the signature card, the Fund will
send you redemption checks. There is no charge for this privilege.
CONTACT:
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CALL OR VISIT your broker-dealer, investment adviser, or bank or other financial
institution.
AUTOMATICALLY:
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SYSTEMATIC WITHDRAWAL PLAN allows you to receive regular monthly, quarterly or
annual payments. Your account value must be at least $10,000, and the payments
must be for $50 or more. The maximum monthly withdrawal is 1% of the account
value in the Fund at the time you begin participation in the Plan.
VIA OUR WEBSITE:
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Visit the Alger Fund website to download all forms to add redemption privileges
to your existing account - WWW.ALGERFUND.COM
Mail your completed forms to Alger Shareholder Services, Inc. In addition, you
can perform certain transactions electronically, via our website.
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7
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FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the
portfolio's financial performance for the periods shown. Certain information
reflects financial results for a single portfolio share. The total returns in
the table represent the rate that an investor would have earned or lost on an
investment in the portfolio (assuming reinvestment of all dividends and
distributions). The financial highlights for the years ended October 31, 1990
through 1999 have been audited by Arthur Andersen LLP, the Fund's independent
public accountants. Arthur Andersen LLP's report, along with the Fund's
financial statements, is included in the Annual Report, which is available upon
request.
ALGER MONEY MARKET PORTFOLIO
For a share outstanding throughout the period
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
---------------------------------------------------------------------------------------------------------------------------------
2000(i) 1999 1998 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- -------- -------- --------
Net investment income .0243 .0423 .0476 .0479 .0521 .0573 .0374 .0304
Dividends from net investment income (.0243) (.0423) (.0476) (.0479) (.0521) (.0573) (.0374) (.0304)
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ======== ======== ========
Total Return 2.5% 4.3% 4.9% 4.9% 5.3% 5.9% 3.8% 3.1%
======== ======== ======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $273,795 $241,310 $172,862 $179,407 $285,702 $185,822 $163,170 $126,567
======== ======== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets .78% .72% .76% .81% .41% .29% .27% .41%
======== ======== ======== ======== ======== ======== ======== ========
Decrease reflected in above expense
ratios due to expense reimbursements
and management fee waivers -- -- -- -- .38% .50% .50% .50%
======== ======== ======== ======== ======== ======== ======== ========
Ratio of net investment income
to average net assets 4.74% 4.37% 4.84% 4.76% 5.18% 5.73% 3.78% 3.04%
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
(i) Unaudited. Ratios have been annualized; total returns have not been
annualized.
8
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-------------------------------
1992 1991 1990
---- ---- ----
$ 1.0000 $ 1.0000 $ 1.0000
-------- -------- --------
.0424 .0671 .0844
(.0424) (.0671) (.0844)
-------- -------- --------
$ 1.0000 $ 1.0000 $ 1.0000
======== ======== ========
4.3% 6.9% 8.8%
======== ======== ========
$135,288 $160,898 $143,420
======== ======== ========
.25% .18% .03%
======== ======== ========
.60% .63% .84%
======== ======== ========
4.30% 6.76% 8.37%
======== ======== ========
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FOR FUND INFORMATION:
By telephone: 1-800-992-3863
By mail: The Alger Fund
One World Trade Center
Suite 9333
New York, NY 10048 THE ALGER FUND
By Internet: Text versions of Fund documents can be
downloaded from the following sources:
> The Fund: http://www.algerfund.com
> SEC (EDGAR data base):
http://www.sec.gov ALGER MONEY MARKET PORTFOLIO
STATEMENT OF ADDITIONAL INFORMATION
For more detailed information about the Fund
and its policies, please read the Statement
of Additional Information, which is
incorporated by reference into (is legally
made a part of) this Prospectus. You can get
a free copy of the Statement of Additional
Information by calling the Fund's toll-free
number or by writing to the address above.
The Statement of Additional Information is on
file with the Securities and Exchange AUGUST 1, 2000
Commission.
ANNUAL AND SEMI-ANNUAL REPORTS
Additional information about the Fund's
investments is available in the Fund's annual
and semi-annual reports to shareholders. In
the Fund's annual report you will find a
discussion of the market conditions and
investment strategies that significantly
affected the Fund's performance during the
period covered by the report. You can receive
free copies of these reports by calling the As with all mutual funds, the
Fund's toll-free number or by writing to the Securities and Exchange
address above. Commission has not determined if
the information in this
Another way you can review and copy Fund Prospectus is accurate or
documents is by visiting the SEC's Public complete, nor has it approved or
Reference Room in Washington, D.C. Copies can disapproved these securities. It
also be obtained, for a duplicating fee, by is a criminal offense to
E-mail request to [email protected] or by represent otherwise.
writing to the SEC's Public Reference
Section, Washington, DC 20549-0102. An investment in the Fund is not
Information on the operation of the Public a deposit of a bank and is not
Reference Room is available by calling insured or guaranteed by the
1-202-942-8090. Federal Deposit Insurance
Corporation or any other
DISTRIBUTOR: FRED ALGER & COMPANY, government agency.
INCORPORATED
The Alger Fund
SEC File #811-1355
AS80
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