FELLOW SHAREHOLDERS: May 15, 2000
As winter turned to spring and temperatures rose, the U.S. economy
continued to sizzle, a fact that remained more a worry than a comfort for
financial markets. Inflation-adjusted GDP growth rose at a much stronger than
expected rate of 7.3% in the fourth quarter of 1999, and was expected to exceed
5% in the first three months of 2000.
Market watchers are wary of such strength because it can stimulate high
inflation and prompt the Federal Reserve to raise interest rates in an effort to
slow economic growth. This concern was a principal cause of the sharp volatility
in stock prices through the first four months of 2000. It also added to the
bearish tone in March when investors decided that the valuations of technology
stocks had become too high and sent the Nasdaq Composite Index tumbling. Federal
Reserve policy, amid signs of higher wage and price inflation, occupied center
stage during April. For example, stronger than expected inflation in the March
Consumer Price Index released on April 14 sent equities tumbling that day. At
the end of April, the Nasdaq Composite stood at 3861, down 24% from its March 10
high of 5049. Other major indexes were also lower, with the Dow Jones Industrial
Average down 6.19% and the S&P 500 down 0.78% from the end of 1999.
That was in contrast to the uptrend in November and December. Although
inflation pressures were on investors' minds as 1999 drew to a close, the stock
market continued to rally with few significant setbacks. Technology and
small-cap stocks surged. The technology-dominated Nasdaq Composite Index posted
a 37.18% gain for November and December and an 85.59% advance for the full year.
The S&P 500 gained 8.04% in the last two months and 21.04% for the year. Many
foreign markets turned in even stronger performances, with the Morgan Stanley
Capital International EAFE Index gaining 25.27% during 1999. Signs that much of
the developed world had entered an expansionary cycle and many emerging nations
were rebounding from the crisis of 1997 and 1998 bolstered international
markets.
Fixed income was one category that produced mostly negative returns for
1999 as the Federal Reserve repeatedly nudged short-term interest rates higher
in an attempt to slow the economy. Continued Federal Reserve pressure lifted the
3-month yield to 5.65% at the end of April 2000. However, the Treasury's bond
repurchase program along with some "flight to quality" from the equity markets
helped longer maturities, with the 30-year Treasury bond yielding 5.96% at the
end of April, down from 6.48% at the end of 1999.
LOOKING AHEAD
Although no one can predict the future, we have been encouraged by the
market's ability to bounce back from sharp declines in recent years. We expect
volatility to remain at historically high levels until it becomes clear that the
Federal Reserve has completed the current round of tightening. An end to Federal
Reserve rate interventions should be positive for the market, leading to reduced
volatility and more bullish sentiment. As a result, buyers should return in
force and send the market higher. A market rebound will be led, we believe, by
the tech sector since it offers great opportunities for future earnings growth.
Because our funds remain heavily invested in this sector, we hope to recover the
losses sustained during the market downdraft of the last three months.
Respectfully submitted,
/s/ David D. Alger
------------------
David D. Alger
President
<PAGE>
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<PAGE>
--------------------------------------------------------------------------------
TABLE OF CONTENTS
--------------------------------------------------------------------------------
Alger Growth Portfolio:
Schedule of Investments ......................... 4
Financial Highlights ............................ 6
Alger Small Capitalization Portfolio:
Schedule of Investments ......................... 8
Financial Highlights ............................ 10
Alger Balanced Portfolio:
Schedule of Investments ......................... 12
Financial Highlights ............................ 16
Alger MidCap Growth Portfolio:
Schedule of Investments ......................... 18
Financial Highlights ............................ 20
Alger Capital Appreciation Portfolio:
Schedule of Investments ......................... 22
Financial Highlights ............................ 24
Alger Money Market Portfolio:
Schedule of Investments ......................... 26
Financial Highlights ............................ 27
Statements of Assets and Liabilities .................................. 28
Statements of Operations .............................................. 29
Statement of Cash Flows (Alger Capital Appreciation Portfolio) ........ 30
Statements of Changes in Net Assets ................................... 31
Notes to Financial Statements ......................................... 33
<PAGE>
THE ALGER FUND -4-
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
COMMON STOCKS--90.2% SHARES VALUE
------ -----
ADVERTISING--.8%
Omnicom Group Inc. ......................... 118,500 $ 10,790,906
------------
AEROSPACE--3.5%
Honeywell International Inc.+ .............. 341,050 19,098,800
United Technologies Corp.+ ................. 442,300 27,505,531
------------
46,604,331
------------
AUTOMOTIVE--1.3%
Harley Davidson, Inc.+ ..................... 435,300 17,330,381
------------
BIO-TECHNOLOGY--2.6%
Amgen Inc.* .................................. 622,300 34,848,800
------------
BROADCASTING--.7%
Clear Channel
Communications Inc.* ....................... 134,200 9,662,400
------------
CHEMICALS--.2%
Du Pont E.I. De Nemours & Co. ................ 64,800 3,073,950
------------
COMMUNICATION
EQUIPMENT--10.3%
Cisco Systems, Inc.* ......................... 783,900 54,346,317
Corning Inc. ................................. 254,300 50,224,250
Motorola, Inc. ............................... 266,800 31,765,875
------------
136,336,442
------------
COMMUNICATIONS--8.3%
America Online Inc.* ......................... 293,700 17,566,931
At Home Corp., Series A*+ .................... 31,346 583,819
AT&T Corp. Liberty Media
Group, Cl. A* .............................. 357,400 17,847,663
Comcast Corp., Cl. A Special ................. 284,200 11,385,763
Cox Communications Inc., Cl. A*+ ............. 251,150 10,752,359
MCI Worldcom Inc.* ........................... 272,250 12,370,359
Sprint Corp. (FON Group) ..................... 194,550 11,964,825
Time Warner Inc.+ ............................ 303,050 27,255,559
------------
109,727,278
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--5.5%
Dell Computer Corp.* ......................... 793,100 39,754,138
Hewlett-Packard Company ...................... 248,700 33,574,500
------------
73,328,638
------------
COMPUTER SERVICES--4.3%
CNET Networks Inc.* .......................... 104,600 3,615,238
eBay Inc.* ................................... 272,000 43,299,000
Yahoo Inc.* .................................. 81,070 10,559,367
------------
57,473,605
------------
COMPUTER SOFTWARE--4.5%
Aspect Development, Inc.* .................... 96,500 6,670,562
Intuit Inc.* ................................. 163,000 5,857,813
Microsoft Corporation* ....................... 574,800 40,092,300
Oracle Corp.* ................................ 83,600 6,682,775
------------
59,303,450
------------
ENERGY & ENERGY
SERVICES--3.6%
Halliburton Co. .............................. 1,085,700 47,974,369
------------
FINANCIAL SERVICES--9.8%
American Express Company ..................... 51,000 7,653,188
Citigroup Inc. ............................... 781,600 46,456,350
Kansas City Southern Industries Inc.+ ........ 185,700 13,347,187
Lehman Brothers Holdings Inc.+ ............... 78,400 6,433,700
Merrill Lynch & Co., Inc. .................... 64,800 6,605,550
Morgan Stanley Dean Witter & Co. ............. 462,800 35,519,900
Schwab (Charles)
Corporation (The)+ ......................... 290,650 12,933,925
------------
128,949,800
------------
FOOD CHAINS--1.4%
Safeway Inc.*+ ............................. 431,300 19,031,113
------------
MANUFACTURING--1.0%
Solectron Corp.* ........................... 272,400 12,751,725
------------
MEDICAL DEVICES--1.2%
Guidant Corp.*+ ............................ 270,700 15,531,412
------------
OIL & GAS--2.0%
Exxon Mobile Corp. ......................... 346,700 26,934,256
------------
PHARMACEUTICALS--6.8%
American Home Products Corp.+ .............. 674,264 37,885,209
Warner-Lambert Co. ......................... 460,100 52,365,131
------------
90,250,340
------------
RETAILING--7.5%
Best Buy Company Inc.*+ .................... 339,400 27,406,550
Costco Wholesale Corp.* .................... 330,100 17,846,031
Home Depot, Inc. ........................... 670,900 37,612,332
Wal-Mart Stores Inc. ....................... 304,400 16,856,150
------------
99,721,063
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--6.3%
Applied Materials Inc.* .................... 601,100 61,199,494
Teradyne, Inc.* ............................ 204,600 22,506,000
------------
83,705,494
------------
<PAGE>
THE ALGER FUND -5-
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
SEMICONDUCTORS--8.6%
Altera Corporation* ........................ 286,600 $29,304,850
Intel Corp. ................................ 303,200 38,449,550
Linear Technology Corporation .............. 432,000 24,678,000
Texas Instruments, Incorporated ............ 129,300 21,059,738
--------------
113,492,138
--------------
Total Common Stocks
(Cost $891,191,885) ...................... 1,196,821,891
--------------
PRINCIPAL
SHORT-TERM INVESTMENTS--19.6% AMOUNT
---------
SHORT-TERM CORPORATE
NOTES--8.7%
BAUS Funding LLC.,
6.02%, 5/25/00 ........................... $63,100,000 62,846,759
Exxon Project Investment
Corporation, 5.96%, 5/15/00 (a) .......... 3,150,000 3,142,699
Fleet Boston Corp.,
6.01%, 5/17/00 ........................... 11,000,000 10,970,618
Merrill Lynch & Co., Inc.,
6.05%, 5/23/00 ........................... 38,200,000 38,058,765
---------------
Total Short-Term Corporate Notes
(Cost $115,018,841) ...................... 115,018,841
---------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--3.8%
Securities Held Under Repurchase
Agreements, 5.77%, 5/1/00, with
State Street Bank and Trust,
dtd 4/28/00, repurchase price
$50,149,102; collateralized by
U.S. Treasury Bonds (par value
$41,475,000 due 11/15/21) ................ 50,125,000
---------------
OTHER SHORT-TERM
INVESTMENTS--7.1% SHARES
------
Securities Lending Quality Trust
(Cost $94,672,664) (c) ................... 94,672,664 94,672,664
---------------
Total Short-Term Investments
(Cost $259,816,505) ...................... 259,816,505
---------------
Total Investments
(Cost $1,151,008,390) (b) ................ 109.8% 1,456,638,396
Liabilities in excess of
other assets ............................. (9.8) (130,257,132)
------ ---------------
Net Assets ................................. 100.0% $1,326,381,264
====== ===============
* Non-income producing security.
+ Securities partially or fully on loan.
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b) At April 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,151,008,390, amounted to
$305,630,006 which consisted of aggregate gross unrealized appreciation of
$316,614,783 and aggregate gross unrealized depreciation of $10,984,777.
(c) Represents investment of cash collateral received for securities on loan.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -6-
ALGER GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (V)
------------------------------------------------------ ------------------------
SIX MONTHS YEAR ENDED OCTOBER 31, TEN MONTHS SIX MONTHS
ENDED ---------------------- ENDED ENDED -------
APRIL 30, OCTOBER 31, APRIL 30,
2000(VI)(VII) 1999 1998 1997(VI) 2000(VI)(VII) 1999
------------ -------- -------- -------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 15.47 $ 12.19 $ 11.58 $ 9.40 $ 15.09 $ 12.00
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................ (.02)(ii) (.07)(ii) (.03)(ii) (.02) (.08)(ii) (.18)(ii)
Net realized and unrealized gain (loss)
on investments ........................... 2.80 4.64 2.13 2.20 2.72 4.56
-------- -------- -------- -------- -------- --------
Total from investment operations ............ 2.78 4.57 2.10 2.18 2.64 4.38
Distributions from net realized gains ....... (2.66) (1.29) (1.49) -- (2.66) (1.29)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............. $ 15.59 $ 15.47 $ 12.19 $ 11.58 $ 15.07 $ 15.09
======== ======== ======== ======== ======== ========
Total Return (iii) .......................... 19.5% 40.4% 21.4% 23.2% 19.0% 39.3%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ......................... $323,320 $228,896 $121,930 $ 52,307 $945,681 $770,311
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets .............................. 1.20% 1.21% 1.25% 1.30% 1.96% 1.96%
======== ======== ======== ======== ======== ========
Ratio of net investment income (loss)
to average net assets ................... (.29%) (.50%) (.23%) (.39%) (1.04%) (1.26%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate .................... 52.62% 205.94% 146.64% 128.26% 52.62% 205.94%
======== ======== ======== ======== ======== ========
</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 period.
(iii) Does not reflect the effect of any sales charges.
(iv) Initially offered August 1, 1997.
(v) Initially offered January 1, 1997.
(vi) Ratios have been annualized; total return has not been annualized.
(vii) Unaudited.
See Notes to Financial Statements.
<PAGE>
-7-
<TABLE>
<CAPTION>
CLASS B (I) CLASS C (IV)
--------------------------------------------------------- ----------------------------------------------------------
SIX MONTHS THREE MONTHS
YEAR ENDED OCTOBER 31, ENDED YEAR ENDED OCTOBER 31, ENDED
--------------------------------------------------------- APRIL 30, ------------------------- OCTOBER 31,
1998 1997 1996 1995 2000(VI)(VII) 1999 1998 1997(VI)
-------- -------- -------- -------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 11.50 $ 9.49 $ 9.38 $ 6.97 $ 15.08 $ 12.00 $ 11.50 $ 11.98
-------- -------- -------- -------- -------- -------- -------- --------
(.11)(ii) (.13) (.08)(ii) (.02) (.08)(ii) (.18)(ii) (.11)(ii) (.02)
2.10 2.44 .78 2.59 2.72 4.55 2.10 (.46)
-------- -------- -------- -------- -------- -------- -------- --------
1.99 2.31 .70 2.57 2.64 4.37 1.99 (.48)
(1.49) (.30) (.59) (.16) (2.66) (1.29) (1.49) --
-------- -------- -------- -------- -------- -------- -------- --------
$ 12.00 $ 11.50 $ 9.49 $ 9.38 $ 15.06 $ 15.08 $ 12.00 $ 11.50
======== ======== ======== ======== ======== ======== ======== ========
20.5% 24.9% 8.1% 37.8% 19.0% 39.2% 20.5% (4.0%)
======== ======== ======== ======== ======== ======== ======== ========
$390,885 $304,984 $266,207 $154,284 $ 57,380 $ 31,500 $ 3,312 $ 199
======== ======== ======== ======== ======== ======== ======== ========
2.00% 2.08% 2.08% 2.09% 1.96% 1.97% 2.00% 2.02%
======== ======== ======== ======== ======== ======== ======== ========
(.98%) (1.13%) (.84%) (1.03%) (1.06%) (1.30%) (.97%) (1.43%)
======== ======== ======== ======== ======== ======== ======== ========
146.64% 128.26% 94.91% 118.16% 52.62% 205.94% 146.64% 128.26%
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
<PAGE>
THE ALGER FUND -8-
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
COMMON STOCKS--92.2% ) SHARES VALUE
------- ------------
ADVERTISING--1.6%
Young & Rubicam Inc. ............................. 157,900 $ 8,793,056
------------
BIO-TECHNOLOGY--3.4%
Cygnus, Inc.*+ ................................... 200,000 2,500,000
Medimmune Inc.* .................................. 61,700 9,868,144
Sepracor Inc.*+ .................................. 72,200 6,642,400
------------
19,010,544
------------
BROADCASTING--.6%
Adelphia Business
Solutions Inc., Cl. A* ......................... 90,000 3,150,000
------------
BUSINESS SERVICES--9.2%
Ariba Inc.* ...................................... 20,000 1,483,750
Aspect Communications Corp.* ..................... 99,600 3,535,800
BISYS Group Inc.* ................................ 249,300 15,596,831
eSpeed Inc., Cl. A* .............................. 159,000 7,512,750
Fiserv Inc.* ..................................... 149,800 6,881,438
Getty Images Inc.* ............................... 215,800 6,554,925
Kana Communications Inc.* ........................ 18,000 766,125
TeleTech Holdings Inc.* .......................... 193,000 6,296,625
Vitria Technology Inc.* .......................... 78,000 2,881,125
------------
51,509,369
------------
COMMUNICATION
EQUIPMENT--8.4%
Aware Inc.* ...................................... 89,000 3,471,000
Commscope Inc.* .................................. 153,000 7,267,500
Efficient Networks Inc.*+ ........................ 130,000 8,547,500
Entrust Technologies Inc.* ....................... 70,000 3,438,750
PMC-Sierra Inc.* ................................. 45,000 8,634,375
SDL Inc.* ........................................ 70,000 13,650,000
Westell Technologies Inc., Cl. A* ................ 100,000 2,843,750
------------
47,852,875
------------
COMMUNICATIONS--6.8%
Alamosa PCS Holdings Inc.* ....................... 100,000 2,850,000
Emmis Communications
Corp., Cl. A* .................................. 100,000 4,250,000
ITC DeltaCom Inc.* ............................... 269,900 8,872,963
McLeodUSA, Inc., Cl. A*+ ......................... 258,000 6,450,000
RealNetworks Inc.* ............................... 166,200 7,915,275
Time Warner Telecom Inc., Cl. A* ................. 142,600 7,807,350
------------
38,145,588
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--5.2%
Antec Corp.* ..................................... 134,000 7,202,500
Harmonic Inc.*+ .................................. 99,200 7,322,200
Symbol Technologies Inc. ......................... 225,000 12,543,750
True North Communications Inc. ................... 50,000 2,059,375
------------
29,127,825
------------
COMPUTER SERVICES--8.9%
CNET Networks Inc.* .............................. 254,900 8,809,981
Critical Path Inc.* .............................. 135,000 7,846,875
eBay Inc.* ....................................... 49,200 7,832,025
FactSet Research Systems Inc. .................... 296,200 8,515,750
ISS Group, Inc.* ................................. 84,500 7,641,969
Mercury Interactive Corp.* ....................... 25,000 2,250,000
QRS Corp.* ....................................... 20,450 674,850
Vignette Corp.* .................................. 130,900 6,307,744
------------
49,879,194
------------
COMPUTER SOFTWARE--4.5%
BSQUARE Corp.* ................................... 75,000 1,312,500
Business Objects ADS* ............................ 85,000 8,319,375
Intuit Inc.* ..................................... 75,500 2,713,281
Liberate Technologies*+ .......................... 60,000 2,347,500
MetaSolv Software Inc.* .......................... 117,500 4,009,688
Phone.com Inc.* .................................. 80,000 6,720,000
------------
25,422,344
------------
CONSUMER PRODUCTS--1.4%
Mettler-Toledo International Inc.* ............... 220,000 7,590,000
------------
ENERGY & ENERGY
SERVICES--3.7%
B.J. Services Company* ........................... 174,700 12,272,675
Rowan Companies* ................................. 302,700 8,456,681
------------
20,729,356
------------
FINANCIAL SERVICES--.5%
Investment Technology Group* ..................... 75,300 2,823,750
------------
HEALTH CARE--1.5%
Cytyc Corporation* ............................... 190,000 8,502,500
------------
INDUSTRIAL EQUIPMENT--1.2%
Waters Corp.* .................................... 71,850 6,807,787
------------
MANUFACTURING--.8%
Millipore Corporation ............................ 61,900 4,437,456
------------
<PAGE>
THE ALGER FUND -9-
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
COMMON STOCKS--(CONT.) SHARES VALUE
------- ------------
MEDICAL PRODUCTS--.8%
MiniMed Inc.* .................................... 38,300 $ 4,708,506
------------
MEDICAL SERVICES--1.6%
Hooper Holmes Inc. ............................... 522,800 9,083,650
------------
OIL & GAS--.8%
Varco International Inc.* ........................ 350,000 4,375,000
------------
PHARMACEUTICALS--5.0%
ALZA Corp.* ...................................... 238,050 10,489,078
Forest Laboratories, Inc.* ....................... 90,000 7,565,624
King Pharmaceuticals Inc.* ....................... 204,100 10,077,438
------------
28,132,140
------------
RESTAURANTS & LODGING--2.5%
Outback Steakhouse, Inc.* ........................ 421,800 13,813,950
------------
RETAILING--6.3%
Bed Bath & Beyond Inc.* .......................... 142,700 5,235,306
BJ's Wholesale Club Inc.* ........................ 491,400 17,413,988
Family Dollar Stores Inc. ........................ 100,000 1,906,250
Linens'n Things Inc.* ............................ 301,200 9,299,550
Michaels Stores Inc.* ............................ 30,000 1,183,125
------------
35,038,219
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--7.3%
ASM Lithography Holding NV* ...................... 270,600 10,824,000
Atmi Inc.* ....................................... 180,000 6,930,000
Varian Semiconductor
Equipment Associates Inc.* ..................... 50,000 3,362,500
Lam Research Corp.* .............................. 75,000 3,440,625
PRI Automation, Inc.* ............................ 205,100 16,382,363
------------
40,939,488
------------
SEMICONDUCTORS--10.2%
Altera Corporation* .............................. 80,700 8,251,575
Dallas Semiconductor Corp. ....................... 200,000 8,587,500
Lattice Semiconductor Corp.* ..................... 50,000 3,368,750
Linear Technology Corporation .................... 187,200 10,693,800
Maxim Integrated Products, Inc.* ................. 90,000 5,833,125
Microchip Technology Incorporated* ............... 273,450 16,970,991
Novellus Systems Inc.* ........................... 50,100 3,341,043
------------
57,046,784
------------
Total Common Stocks
(Cost $415,601,210) ............................ 516,919,381
------------
Principal
Amount
------
SHORT-TERM INVESTMENTS--9.2%
SHORT-TERM CORPORATE NOTES--4.5%
Dow Chemical Co.,
5.99%, 5/3/00 .................................. $ 5,500,000 5,498,170
General Motors Acceptance Corp.,
6.04%, 5/19/00 ................................. 12,300,000 12,262,854
Toyota Credit de Puerto Rico,
6.00%, 5/16/00 ................................. 7,700,000 7,680,750
------------
Total Short-Term Corporate Notes
(Cost $25,441,774) ............................. 25,441,774
------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--4.7%
Securities Held Under Repurchase Agreements,
5.77%, 5/1/00, with State Street Bank and Trust,
dtd 4/28/00, repurchase price $26,092,540;
collateralized by Federal National Mortgage
Association (par value $26,280,000
due 12/21/01) .................................. 26,080,000
Total Short-Term Investments
(Cost $51,521,774) ............................. 51,521,774
Total Investments
(Cost $467,122,984) (a) ........................ 101.4% 568,441,155
Liabilities in excess of other assets ............ (1.4) (8,027,964)
----- ------------
Net Assets ....................................... 100.0% $560,413,191
===== ============
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At April 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $467,122,984, amounted to
$101,318,171 which consisted of aggregate gross unrealized appreciation of
$147,107,509 and aggregate gross unrealized depreciation of $45,789,338.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -10-
ALGER SMALL CAPITALIZATION PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (IV)
------------------------------------------------------- ------------------------
SIX MONTHS TEN MONTHS SIX MONTHS
ENDED YEAR ENDED OCTOBER 31, ENDED ENDED
APRIL 30, ----------------------- OCTOBER 31, APRIL 30, --------
2000(v)(vii) 1999 1998 1997(v) 2000(v)(vii) 1999
----------- -------- -------- ---------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 10.35 $ 8.74 $ 10.35 $ 9.21 $ 10.13 $ 8.61
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................ (.05)(vi) (.08)(vi) (.06)(vi) (.04) (.09)(vi) (.15)(vi)
Net realized and unrealized gain (loss)
on investments ........................... 1.73 2.71 (1.04) 1.18 1.70 2.69
-------- -------- -------- -------- -------- --------
Total from investment operations ............ 1.68 2.63 (1.10) 1.14 1.61 2.54
Distributions from net realized gains ....... (1.81) (1.02) (.51) -- (1.81) (1.02)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............. $ 10.22 $ 10.35 $ 8.74 $ 10.35 $ 9.93 $ 10.13
======== ======== ======== ======== ======== ========
Total Return (ii) ........................... 16.5% 32.7% (10.9%) 12.4% 16.1% 32.1%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ......................... $ 97,120 $ 69,986 $ 59,516 $ 25,996 $450,576 $419,842
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets .............................. 1.34% 1.38% 1.37% 1.38% 2.09% 2.14%
======== ======== ======== ======== ======== ========
Ratio of net investment income (loss)
to average net assets ................... (.91%) (.79%) (.71%) (.93%) (1.65%) (1.58%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate .................... 73.02% 110.92% 157.26% 120.27% 73.02% 110.92%
======== ======== ======== ======== ======== ========
</TABLE>
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock
split which occurred September 27, 1995.
(ii) Does not reflect the effect of any sales charges.
(iii) Initially offered August 1, 1997.
(iv) Initially offered January 1, 1997.
(v) Ratios have been annualized; total return has not been annualized.
(vi) Amount was computed based on average shares outstanding during the
period.
(vii) Unaudited.
See Notes to Financial Statements.
<PAGE>
-11-
<TABLE>
<CAPTION>
CLASS B (I) CLASS C (III)
---------------------------------------------------- --------------------------------------------------------------
SIX MONTHS THREE MONTHS
YEAR ENDED OCTOBER 31, ENDED YEAR ENDED OCTOBER 31, ENDED
---------------------------------------------------- APRIL 30, ------------------------- OCTOBER 31,
1998 1997 1996 1995 2000(v)(vii) 1999 1998 1997(v)
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 10.29 $ 10.86 $ 11.13 $ 7.62 $ 10.13 $ 8.59 $ 10.29 $ 10.38
-------- -------- -------- -------- -------- -------- -------- --------
(.14)(vi) (.11) (.09) (.13) (.09)(vi) (.16)(vi) (.10)(vi) (.03)
(1.03) 1.28 .42 3.64 1.69 2.72 (1.09) (.06)
-------- -------- -------- -------- -------- -------- -------- --------
(1.17) 1.17 .33 3.51 1.60 2.56 (1.19) (.09)
(.51) (1.74) (.60) -- (1.81) (1.02) (.51) --
-------- -------- -------- -------- -------- -------- -------- --------
$ 8.61 $ 10.29 $ 10.86 $ 11.13 $ 9.92 $ 10.13 $ 8.59 $ 10.29
======== ======== ======== ======== ======== ======== ======== ========
(11.6%) 12.9% 3.2% 46.2% 16.0% 32.4% (11.8%) (.9%)
======== ======== ======== ======== ======== ======== ======== ========
$460,788 $580,651 $553,872 $463,718 $ 12,717 $ 7,659 $ 4,838 $ 338
======== ======== ======== ======== ======== ======== ======== ========
2.12% 2.14% 2.13% 2.11% 2.09% 2.13% 2.11% 2.09%
======== ======== ======== ======== ======== ======== ======== ========
(1.51%) (1.67%) (1.59%) (1.75%) (1.67%) (1.55%) (1.36%) (1.71%)
======== ======== ======== ======== ======== ======== ======== ========
157.26% 120.27% 153.35% 97.37% 73.02% 110.92% 157.26% 120.27%
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
<PAGE>
THE ALGER FUND -12-
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
COMMON STOCKS--59.0% SHARES VALUE
------- ------------
ADVERTISING--.7%
Omnicom Group Inc. ............................... 11,900 $ 1,083,644
------------
AEROSPACE--3.4%
Honeywell International Inc.+ .................... 36,950 2,069,200
United Technologies Corp. ........................ 48,600 3,022,313
------------
5,091,513
------------
AUTOMOTIVE--.9%
Harley Davidson, Inc. ............................ 34,100 1,357,606
------------
BIO-TECHNOLOGY--1.7%
Amgen Inc.* ...................................... 45,000 2,520,000
------------
BROADCASTING--.9%
Clear Channel Communications Inc.* ............... 19,700 1,418,400
------------
CHEMICALS--.4%
Du Pont E.I. De Nemours & Co. .................... 12,100 573,994
------------
COMMUNICATION EQUIPMENT--5.0%
Cisco Systems, Inc.* ............................. 40,900 2,835,520
Corning Inc. ..................................... 12,000 2,370,000
Motorola, Inc. ................................... 19,400 2,309,813
------------
7,515,333
------------
COMMUNICATIONS--4.7%
America Online Inc.* ............................. 16,200 968,962
At Home Corp., Series A*+ ........................ 16,358 304,668
AT&T Corp. Liberty Media
Group, Cl. A* .................................. 27,500 1,373,281
Comcast Corp., Cl. A Special ..................... 15,000 600,938
Cox Communications Inc., Cl. A*+ ................. 15,700 672,156
MCI Worldcom Inc.* ............................... 13,800 627,038
Sprint Corp. (FON Group) ......................... 15,850 974,775
Time Warner Inc.+ ................................ 17,250 1,551,422
------------
7,073,240
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--3.7%
Dell Computer Corp.* ............................. 55,900 2,801,988
Hewlett-Packard Company .......................... 20,200 2,727,000
------------
5,528,988
------------
COMPUTER SERVICES--2.4%
CNET Networks Inc.* .............................. 11,600 400,925
eBay Inc.* ....................................... 15,700 2,499,244
Yahoo Inc.* ...................................... 5,652 736,172
------------
3,636,341
------------
COMPUTER SOFTWARE--3.0%
Aspect Development, Inc.* ........................ 8,400 580,650
Intuit Inc.* ..................................... 13,700 492,344
Microsoft Corporation* ........................... 41,300 2,880,675
Oracle Corp.* .................................... 6,400 511,600
------------
4,465,269
------------
ENERGY & ENERGY SERVICES--2.3%
Halliburton Co. .................................. 79,350 3,506,278
------------
FINANCIAL SERVICES--7.0%
American Express Company ......................... 2,500 375,156
Citigroup Inc. ................................... 53,450 3,176,934
Kansas City Southern Industries Inc.+ ............ 26,900 1,933,438
Lehman Brothers Holdings Inc.+ ................... 5,300 434,931
Merrill Lynch & Co., Inc. ........................ 8,400 856,275
Morgan Stanley Dean Witter & Co. ................. 32,400 2,486,700
Schwab (Charles) Corporation (The) ............... 27,150 1,208,175
------------
10,471,609
------------
FOOD CHAINS--1.0%
Safeway Inc.* .................................... 35,000 1,544,375
------------
MANUFACTURING--.7%
Solectron Corp.* ................................. 20,400 954,975
------------
MEDICAL DEVICES--.9%
Guidant Corp.* ................................... 24,500 1,405,688
------------
OIL & GAS--1.3%
Exxon Mobile Corp. ............................... 25,400 1,973,262
------------
PHARMACEUTICALS--4.6%
American Home Products Corp. ..................... 54,391 3,056,094
Warner-Lambert Co. ............................... 33,900 3,858,244
------------
6,914,338
------------
RETAILING--5.1%
Best Buy Company Inc.* ........................... 30,200 2,438,650
Costco Wholesale Corp.* .......................... 33,800 1,827,312
Home Depot, Inc. ................................. 36,650 2,054,691
Wal-Mart Stores Inc. ............................. 26,150 1,448,056
------------
7,768,709
------------
<PAGE>
THE ALGER FUND -13-
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
SEMICONDUCTOR CAPITAL
EQUIPMENT--3.4%
Applied Materials Inc.* .......................... 33,000 $ 3,359,812
Teradyne, Inc.* .................................. 15,200 1,672,000
------------
5,031,812
------------
SEMICONDUCTORS--5.9%
Altera Corporation* .............................. 20,300 2,075,675
Intel Corp. ...................................... 21,600 2,739,150
Linear Technology Corporation .................... 33,000 1,885,125
Texas Instruments, Incorporated .................. 13,100 2,133,663
------------
8,833,613
------------
Total Common Stocks
(Cost $71,959,545) ............................. 88,668,987
------------
PRINCIPAL
CORPORATE BONDS--7.9% AMOUNT
--------
CHEMICALS--1.0%
Du Pont E.I. De Nemours & Co.,
6.50%, 9/1/02 .................................. $ 1,500,000 1,474,335
------------
COMMUNICATIONS--1.0%
TCI Communications Inc.,
8.00%, 8/1/05 .................................. 1,000,000 1,022,520
Tele-Communications, Inc.,
7.25%, 8/1/05+ ................................. 500,000 492,695
------------
1,515,215
------------
CONSUMER PRODUCTS--.2%
Eastman Kodak Company,
9.20%, 6/1/21 .................................. 300,000 317,169
------------
ELECTRIC & GAS
COMPANIES--.5%
Pacific Gas & Electric Co.,
7.25%, 3/1/26 .................................. 182,000 168,033
Potomac Electric Power Co.,
7.00%, 1/15/24 ................................. 200,000 182,250
Washington Gas Light Co.,
6.51%, 8/18/08 ................................. 500,000 467,245
------------
817,528
------------
FINANCIAL SERVICES--3.9%
Associates Corp. North America,
5.75%, 11/1/03 ................................. 1,000,000 940,500
BankAmerica Corp.,
7.20%, 4/15/06 ................................. 1,500,000 1,466,115
Chase Manhattan Corp.,
8.50%, 2/15/02 ................................. 200,000 203,188
Cit Group Inc.,
7.125%, 10/15/04+ .............................. 1,000,000 980,820
Citicorp,
7.125%, 6/1/03 ................................. 200,000 197,660
Goldman Sachs Group,
6.65%, 5/15/09 ................................. 1,000,000 925,140
Wells Fargo & Co.,
6.625%, 7/15/04 ................................ 1,200,000 1,165,692
------------
5,879,115
------------
INSURANCE--.6%
Beneficial Corp.,
6.575%, 12/16/02 ............................... 500,000 487,635
Loews Corp.,
7.625%, 6/1/23 ................................. 500,000 399,145
------------
886,780
------------
RETAILING--.7%
Wal-Mart Stores Inc.,
6.55%, 8/10/04 ................................. 1,000,000 977,190
------------
Total Corporate Bonds
(Cost $12,291,852) ............................. 11,867,332
------------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS--10.1%
Federal Home Loan Bank Corp.,
5.87%, 4/22/03 ................................. 300,000 289,358
5.935%, 4/22/05 ................................ 400,000 378,000
6.12%, 8/26/08 ................................. 1,000,000 912,190
Federal Home Loan Mortgage Corp.,
6.00%, 6/23/04 ................................. 1,500,000 1,427,820
5.75%, 4/15/08 ................................. 1,000,000 906,720
6.625%, 9/15/09 ................................ 1,200,000 1,143,936
7.08%, 3/17/14 ................................. 400,000 365,688
Federal National Mortgage Assoc.,
6.96%, 4/2/07 .................................. 500,000 488,360
7.49%, 5/22/07 ................................. 250,000 242,658
6.09%, 1/12/09 ................................. 1,000,000 903,440
7.00%, 3/4/13 .................................. 600,000 550,782
6.75%, 2/4/28 .................................. 400,000 343,564
U.S. Treasury Notes,
6.125%, 12/31/01 ............................... 1,000,000 990,940
7.50%, 5/15/02 ................................. 100,000 101,516
6.25%, 2/15/03 ................................. 1,750,000 1,733,323
6.00%, 8/15/04 ................................. 1,500,000 1,469,760
6.50%, 10/15/06 ................................ 1,500,000 1,496,490
5.625%, 5/15/08 ................................ 1,500,000 1,425,705
------------
Total U.S. Government
& Agency Obligations
(Cost $15,567,122) ............................. 15,170,250
------------
<PAGE>
THE ALGER FUND -14-
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
PRINCIPAL
SHORT-TERM INVESTMENTS--27.8% AMOUNT VALUE
------ -----
SHORT-TERM CORPORATE NOTES--18.7%
AriesOne Metafolio Corp.,
6.04%, 5/5/00 (a) .............................. $ 4,000,000 $ 3,997,316
Dow Chemical Co.,
5.99%, 5/3/00 .................................. 4,000,000 3,998,669
EagleFunding Capital Corp.,
6.07%, 5/23/00 ................................. 4,000,000 3,985,162
Fleet Boston Corp.,
6.01%, 5/17/00 ................................. 4,000,000 3,989,316
Merrill Lynch & Co., Inc.,
6.05%, 5/23/00 ................................. 1,200,000 1,195,563
National Fuel Gas Co.,
6.07%, 5/3/00 .................................. 4,000,000 3,998,651
Schering Corp.,
5.97%, 5/11/00 ................................. 2,000,000 1,996,683
Toyota Credit de Puerto Rico,
6.02%, 5/16/00 ................................. 1,000,000 997,492
Grainger (W.W.) Inc.,
6.03%, 5/24/00 ................................. 4,000,000 3,984,590
------------
Total Short-Term Corporate Notes
(Cost $28,143,442) ............................. 28,143,442
------------
SHARES
------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--4.7%
Securities Held Under Repurchase Agreements,
5.77%, 5/1/00, with State Street Bank and
Trust, dtd 4/28/00, repurchase price
$7,053,390; collateralized by Federal National
Mortgage Association (par value $7,105,000
due 12/21/01) .................................. 7,050,000
------------
OTHER SHORT-TERM
INVESTMENTS--4.4%
Securities Lending Quality Trust
(Cost $6,556,044)(c) ........................... 6,556,044 6,556,044
------------
Total Short-Term Investments
(Cost $41,749,486) ............................. 41,749,486
------------
Total Investments
(Cost $141,568,005) (b) ........................ 104.8% 157,456,055
Liabilities in excess of other assets ............ (4.8) (7,217,958)
----- ------------
Net Assets ....................................... 100.0% $150,238,097
===== ============
* Non-income producing security.
+ Securities partially or fully on loan.
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b) At April 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $141,568,005, amounted to
$15,888,050 which consisted of aggregate gross unrealized appreciation of
$18,822,307 and aggregate gross unrealized depreciation of $2,934,257.
(c) Represents investment of cash collateral received for securities on loan.
See Notes to Financial Statements.
<PAGE>
[This page intentionally left blank.]
<PAGE>
THE ALGER FUND -16-
ALGER BALANCED PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (VI)
-------------------------------------------------------- -------------------------
SIX MONTHS TEN MONTHS SIX MONTHS
ENDED YEAR ENDED OCTOBER 31, ENDED ENDED
APRIL 30, ----------------------- OCTOBER 31, APRIL 30, --------
2000(iii)(vii) 1999 1998 1997(iii) 2000(iii)(vii) 1999
------------- -------- -------- ---------- ------------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 20.95 $ 16.83 $ 16.58 $ 13.99 $ 20.59 $ 16.64
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................ .16(i) .25(i) .16(i) .05 .08(i) .07(i)
Net realized and unrealized gain (loss)
on investments ........................... 2.61 4.97 2.35 2.54 2.57 4.93
-------- -------- -------- -------- -------- --------
Total from investment operations ............ 2.77 5.22 2.51 2.59 2.65 5.00
-------- -------- -------- -------- -------- --------
Dividends from net investment income ........ (.13) (.08) (.06) -- (.04) (.03)
Distributions from net realized gains ....... (1.60) (1.02) (2.20) -- (1.60) (1.02)
-------- -------- -------- -------- -------- --------
Total distributions ......................... (1.73) (1.10) (2.26) -- (1.64) (1.05)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............. $ 21.99 $ 20.95 $ 16.83 $ 16.58 $ 21.60 $ 20.59
======== ======== ======== ======== ======== ========
Total Return (ii) ........................... 13.8% 32.5% 17.7% 18.5% 13.4% 31.5%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ......................... $ 28,565 $ 12,488 $ 1,354 $ 459 $ 90,703 $ 52,607
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets .............................. 1.30% 1.40% 1.79% 2.10% 2.04% 2.18%
======== ======== ======== ======== ======== ========
Decrease reflected in above expense ratios
due to expense reimbursements(iv) ....... -- -- -- -- -- --
======== ======== ======== ======== ======== ========
Ratio of net investment income (loss)
to average net assets ................... 1.47% 1.15% .98% .72% .73% .36%
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate .................... 42.60% 126.01% 93.23% 109.26% 42.60% 126.01%
======== ======== ======== ======== ======== ========
</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 reimbursement made pursuant to applicable state expense
limits.
(v) Initially offered August 1, 1997.
(vi) Initially offered January 1, 1997.
(vii) Unaudited.
See Notes to Financial Statements.
<PAGE>
-17-
<TABLE>
<CAPTION>
CLASS B CLASS C (V)
-------------------------------------------------------- ------------------------------------------------------------
SIX MONTHS THREE MONTHS
YEAR ENDED OCTOBER 31, ENDED YEAR ENDED OCTOBER 31, ENDED
-------------------------------------------------------- APRIL 30, -------------------------- OCTOBER 31,
1998 1997 1996 1995 2000(iii)(vii) 1999 1998 1997(iii)
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 16.48 $ 14.21 $ 13.59 $ 10.65 $ 20.65 $ 16.66 $ 16.49 $ 16.88
-------- -------- -------- -------- -------- -------- -------- --------
.03(i) -- .12 (.02)(i) .08(i) .07(i) .04(i) (.01)
2.34 2.67 .72 2.96 2.57 4.95 2.33 (.38)
-------- -------- -------- -------- -------- -------- -------- --------
2.37 2.67 .84 2.94 2.65 5.02 2.37 (.39)
-------- -------- -------- -------- -------- -------- -------- --------
(.01) (.06) (.01) -- (.03) (0.01) -- --
(2.20) (.34) (.21) -- (1.60) (1.02) (2.20) --
-------- -------- -------- -------- -------- -------- -------- --------
(2.21) (.40) (.22) -- (1.63) (1.03) (2.20) --
-------- -------- -------- -------- -------- -------- -------- --------
$ 16.64 $ 16.48 $ 14.21 $ 13.59 $ 21.67 $ 20.65 $ 16.66 $ 16.49
======== ======== ======== ======== ======== ======== ======== ========
16.9% 19.3% 6.3% 27.6% 13.3% 31.6% 16.8% (2.31%)
======== ======== ======== ======== ======== ======== ======== ========
$ 19,282 $ 12,653 $ 13,492 $ 6,214 $ 30,970 $ 14,626 $ 334 $ 48
======== ======== ======== ======== ======== ======== ======== ========
2.58% 2.89% 2.70% 3.34% 2.05% 2.16% 2.53% 2.77%
======== ======== ======== ======== ======== ======== ======== ========
-- -- -- .24% -- -- -- --
======== ======== ======== ======== ======== ======== ======== ========
.19% .04% .47% (.13%) .73% .38% .23% (.84%)
======== ======== ======== ======== ======== ======== ======== ========
93.23% 109.26% 85.51% 84.06% 42.60% 126.01% 93.23% 109.26%
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
<PAGE>
THE ALGER FUND -18-
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
COMMON STOCKS--87.4% SHARES VALUE
------ -----
ADVERTISING--1.8%
Young & Rubicam Inc. ............................. 164,500 $ 9,160,593
------------
AUTOMOTIVE--2.4%
Harley Davidson, Inc. ............................ 310,800 12,373,725
------------
BUSINESS SERVICES--5.0%
Ariba Inc.* ...................................... 44,400 3,293,925
Diamond Technology
Partners Inc., Cl. A* .......................... 33,600 2,658,600
eSpeed Inc., Cl. A* .............................. 48,200 2,277,450
Fiserv Inc.* ..................................... 387,800 17,814,563
------------
26,044,538
------------
COMMUNICATION
EQUIPMENT--1.3%
Efficient Networks Inc. .......................... 101,400 6,667,050
------------
COMMUNICATIONS--.6%
At Home Corp., Series A* ......................... 31,360 584,080
Broadwing Inc.* .................................. 93,000 2,633,063
------------
3,217,143
------------
COMPUTER SERVICES--6.6%
Amdocs Limited* .................................. 92,800 6,281,400
CNET Networks Inc.* .............................. 371,200 12,829,600
eBay Inc.* ....................................... 71,800 11,429,663
Inktomi Corp.* ................................... 21,000 3,232,687
------------
33,773,350
------------
COMPUTER SOFTWARE--3.1%
Aspect Development, Inc.* ........................ 78,700 5,440,137
CSG Systems International Inc.* .................. 58,000 2,675,250
Intuit Inc.* ..................................... 226,800 8,150,625
------------
16,266,012
------------
COMPUTER TECHNOLOGY--.5%
Jabil Circuit Inc.* .............................. 65,150 2,667,077
------------
ELECTRONICS--1.1%
Hadco Corp.* ..................................... 65,700 5,407,931
------------
ENERGY &
ENERGY SERVICES--8.6%
B.J. Services Company* ........................... 276,000 19,389,000
Devon Energy Corporation ......................... 115,300 5,556,019
EOG Resources Inc. ............................... 99,500 2,475,063
Nabors Industries Inc.* .......................... 425,250 16,770,796
------------
44,190,878
------------
FINANCIAL SERVICES--5.9%
Investment Technology Group* ..................... 82,900 3,108,750
Kansas City Southern
Industries Inc. ................................ 182,600 13,124,375
Lehman Brothers Holdings Inc. .................... 25,600 2,100,800
Paine Webber Group Inc. .......................... 271,400 11,907,675
------------
30,241,600
------------
FOODS & BEVERAGES--2.5%
Starbucks Corp.* ................................. 417,600 12,625,875
------------
INDUSTRIAL EQUIPMENT--4.5%
Cooper Cameron Corp.* ............................ 74,500 5,587,500
SPX Corp.* ....................................... 38,000 4,175,250
Waters Corp.* .................................... 139,600 13,227,100
------------
22,989,850
------------
MANUFACTURING--3.3%
Dover Corp. ...................................... 168,800 8,577,150
Millipore Corporation ............................ 118,900 8,523,644
------------
17,100,794
------------
PAPER PACKAGING &
FOREST PRODUCTS--.9%
Sealed Air Corporation* .......................... 85,700 4,767,063
------------
PHARMACEUTICALS--9.2%
Allergan Inc. .................................... 45,200 2,661,150
ALZA Corp.* ...................................... 329,400 14,514,187
Forest Laboratories, Inc.* ....................... 225,500 18,956,094
King Pharmaceuticals Inc.* ....................... 222,200 10,971,125
------------
47,102,556
------------
RESTAURANTS &
LODGING--3.8%
Outback Steakhouse, Inc.* ........................ 592,550 19,406,013
------------
RETAILING--5.9%
Bed Bath & Beyond Inc.* .......................... 194,000 7,117,375
Best Buy Company Inc.* ........................... 220,200 17,781,150
BJ's Wholesale Club Inc.* ........................ 78,000 2,764,125
Family Dollar Stores Inc. ........................ 151,000 2,878,438
------------
30,541,088
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--5.3%
ASM Lithography Holding NV* ...................... 101,100 4,044,000
Atmi Inc.* ....................................... 141,400 5,443,900
Numerical Technologies Inc.*+ .................... 30,000 1,252,500
<PAGE>
THE ALGER FUND -19-
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
SEMICONDUCTOR CAPITAL
EQUIPMENT--(cont.)
Teradyne, Inc.* .................................. 148,268 $ 16,309,480
------------
27,049,880
------------
SEMICONDUCTORS--15.1%
Altera Corporation* .............................. 124,400 12,719,900
Amkor Technology, Inc.* .......................... 71,800 4,393,263
Linear Technology Corporation .................... 320,200 18,291,425
Maxim Integrated Products, Inc.* ................. 240,900 15,613,331
Microchip Technology
Incorporated* .................................. 301,350 18,702,534
Xilinx, Inc.* .................................... 110,800 8,116,100
------------
77,836,553
------------
Total Common Stocks
(Cost $344,081,631) ............................ 449,429,569
------------
PRINCIPAL
SHORT-TERM INVESTMENTS--14.2% AMOUNT VALUE
--------- -----
SHORT-TERM CORPORATE
NOTES--9.3%
Fleet Boston Corp.,
6.01%, 5/17/00 ................................. $24,300,000 24,235,092
GTEFunding Inc.,
6.01%, 5/25/00 ................................. 2,000,000 1,991,987
Hertz Corp.,
5.99%, 5/4/00 .................................. 15,000,000 14,992,512
Merrill Lynch & Co., Inc.,
6.05%, 5/23/00 ................................. 6,800,000 6,774,859
------------
Total Short-Term Corporate Notes
(Cost $47,994,450) ............................. 47,994,450
------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--4.9%
Securities Held Under Repurchase Agreements,
5.77%, 5/1/00, with State Street Bank and Trust,
dtd 4/28/00, repurchase price $25,062,045,
collateralized by U.S. Treasury Notes (par value
$25,365,000 due 5/31/01) ....................... 25,050,000
------------
Total Short-Term Investments
(Cost $73,044,450) ............................. 73,044,450
------------
Total Investments
(Cost $417,126,081) (a) ........................ 101.6% 522,474,019
Liabilities in excess of other assets ............ (1.6) (8,380,735)
----- ------------
Net Assets ....................................... 100.0% $514,093,284
===== ============
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At April 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $417,126,081, amounted to
$105,347,938 which consisted of aggregate gross unrealized appreciation of
$119,203,925 and aggregate gross unrealized depreciation of $13,855,987.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -20-
ALGER MIDCAP PORTFOLIO(I)
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (V)
----------------------------------------------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS
ENDED YEAR ENDED OCTOBER 31, ENDED ENDED
APRIL 30, ----------------------- OCTOBER 31, APRIL 30, --------
2000(vi)(vii) 1999 1998 1997(vi) 2000(vi)(vii) 1999
------------ -------- -------- -------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 8.20 $ 7.07 $ 7.49 $ 6.31 $ 8.00 $ 6.96
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................ (.03)(ii) (.05)(ii) (.03)(ii) (.03) (.06)(ii) (.11)(ii)
Net realized and unrealized gain (loss)
on investments ........................... 2.98 2.16 .43 1.21 2.89 2.13
-------- -------- -------- -------- -------- --------
Total from investment operations ............ 2.95 2.11 .40 1.18 2.83 2.02
Distributions from net realized gains ....... (1.50) (.98) (.82) -- (1.50) (.98)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............. $ 9.65 $ 8.20 $ 7.07 $ 7.49 $ 9.33 $ 8.00
======== ======== ======== ======== ======== ========
Total Return (iii) .......................... 40.1% 33.3% 7.2% 18.7% 39.5% 32.3%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ......................... $ 82,782 $ 49,246 $ 32,447 $ 5,436 $403,934 $248,139
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets .............................. 1.27% 1.31% 1.34% 1.40% 2.02% 2.07%
======== ======== ======== ======== ======== ========
Ratio of net investment income (loss)
to average net assets ................... (.59%) (.58%) (.53%) (.83%) (1.36%) (1.39%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate .................... 73.08% 203.86% 180.98% 160.09% 73.08% 203.86%
======== ======== ======== ======== ======== ========
</TABLE>
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock
split which occurred April 20, 2000.
(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.
(vi) Ratios have been annualized; total return has not been annualized.
(vii) Unaudited.
See Notes to Financial Statements.
<PAGE>
-21-
<TABLE>
<CAPTION>
CLASS B CLASS C (IV)
---------------------------------------------------------- -----------------------------------------------------------
SIX MONTHS THREE MONTHS
YEAR ENDED OCTOBER 31, ENDED YEAR ENDED OCTOBER 31, ENDED
---------------------------------------------------------- APRIL 30, ------------------------- OCTOBER 31,
1998 1997 1996 1995 2000 (vi)(vii) 1999 1998 1997(vi)
-------- -------- -------- -------- ------------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 7.44 $ 6.29 $ 6.31 $ 4.26 $ 7.99 $ 6.95 $ 7.44 $ 7.50
-------- -------- -------- -------- -------- -------- -------- --------
(.10)(ii) (.10) (.08)(ii) (.03) (.06)(ii) (.11)(ii) (.09)(ii) (.01)
.44 1.41 .45 2.08 2.89 2.13 .42 (.05)
-------- -------- -------- -------- -------- -------- -------- --------
.34 1.31 .37 2.05 2.83 2.02 .33 (.06)
(.82) (.16) (.39) -- (1.50) (.98) (.82) --
-------- -------- -------- -------- -------- -------- -------- --------
$ 6.96 $ 7.44 $ 6.29 $ 6.31 $ 9.32 $ 7.99 $ 6.95 $ 7.44
======== ======== ======== ======== ======== ======== ======== ========
6.2% 21.4% 6.4% 48.3% 39.6% 32.4% 6.1% (.7%)
======== ======== ======== ======== ======== ======== ======== ========
$191,934 $166,475 $125,686 $ 54,016 $ 27,377 $ 10,827 $ 1,759 $ 84
======== ======== ======== ======== ======== ======== ======== ========
2.10% 2.19% 2.27% 2.39% 2.02% 2.08% 2.08% 1.97%
======== ======== ======== ======== ======== ======== ======== ========
(1.38%) (1.58%) (1.33%) (1.71%) (1.36%) (1.40%) (1.26%) (1.55%)
======== ======== ======== ======== ======== ======== ======== ========
180.98% 160.09% 113.95% 121.60% 73.08% 203.86% 180.98% 160.09%
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
<PAGE>
THE ALGER FUND -22-
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
COMMON STOCKS--84.4% SHARES VALUE
------ -----
ADVERTISING--.8%
Omnicom Group Inc.+ .............................. 132,000 $ 12,020,250
------------
BIO-TECHNOLOGY--2.6%
Amgen Inc.*+ ..................................... 643,600 36,041,600
Sepracor Inc.*+ .................................. 48,000 4,416,000
------------
40,457,600
------------
BROADCASTING--1.8%
Cablevision Systems Corp., Cl. A*+ ............... 202,000 13,672,875
EchoStar Communications
Corp., Cl. A*+ ................................. 227,200 14,469,800
------------
28,142,675
------------
BUSINESS SERVICES--2.5%
Ariba Inc.*+ ..................................... 224,000 16,618,000
BEA Systems Inc.*+ ............................... 402,200 19,406,150
Vitria Technology Inc.*+ ......................... 118,800 4,388,175
------------
40,412,325
------------
COMMUNICATION
EQUIPMENT--11.4%
Cisco Systems, Inc.* ............................. 785,400 54,450,309
Corning Inc.+ .................................... 45,000 8,887,500
Entrust Technologies Inc.* ....................... 131,300 6,450,112
Ericsson(LM)Telephone Co. ADR+ ................... 504,900 44,652,094
Motorola, Inc. ................................... 203,000 24,169,688
PMC-Sierra Inc.* ................................. 111,000 21,298,125
SDL Inc.* ........................................ 108,000 21,060,000
------------
180,967,828
------------
COMMUNICATIONS--11.3%
America Online Inc.*+ ............................ 721,300 43,142,756
AT&T Corp. Liberty
Media Group, Cl. A* ............................ 294,100 14,686,619
Comcast Corp., Cl. A Special ..................... 552,000 22,114,500
Cox Communications Inc., Cl. A*+ ................. 339,000 14,513,438
McLeodUSA Inc., Cl. A*+ .......................... 405,000 10,125,000
Nextel Communications Inc., Cl. A*+ .............. 60,900 6,664,744
Qualcomm Inc.* ................................... 335,000 36,326,563
Sprint Corp., (PCS Group)*+ ...................... 570,550 31,380,250
------------
178,953,870
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--6.0%
Hewlett-Packard Company .......................... 270,850 36,564,750
Network Appliance Inc.*+ ......................... 90,000 6,654,375
Sun Microsystems Inc.* ........................... 559,600 51,448,225
------------
94,667,350
------------
COMPUTER SERVICES--11.4%
Amdocs Limited*+ ................................. 350,300 23,710,931
CNET Networks Inc*+ .............................. 239,200 8,267,350
eBay Inc.*+ ...................................... 462,000 73,544,625
Inktomi Corp.* ................................... 44,800 6,896,400
ISS Group, Inc.*+ ................................ 88,000 7,958,500
Mercury Interactive Corp.*+ ...................... 128,800 11,592,000
Vignette Corp.* .................................. 360,100 17,352,319
Yahoo Inc.*+ ..................................... 244,694 31,871,394
------------
181,193,519
------------
COMPUTER SOFTWARE--7.8%
Business Objects ADS*+ ........................... 96,000 9,396,000
I2 Technologies, Inc.*+ .......................... 192,000 24,816,000
Intuit Inc.* ..................................... 186,800 6,713,125
Liberate Technologies*+ .......................... 152,500 5,966,562
Microsoft Corporation* ........................... 144,600 10,085,850
Oracle Corp.* .................................... 280,000 22,382,500
Phone.com Inc.*+ ................................. 217,200 18,244,800
VERITAS Software Corp.*+ ......................... 235,500 25,261,055
------------
122,865,892
------------
ENERGY & ENERGY
SERVICES--2.6%
B.J. Services Company*+ .......................... 85,000 5,971,250
Halliburton Co.+ ................................. 808,150 35,710,128
------------
41,681,378
------------
FINANCIAL SERVICES--2.6%
Citigroup Inc. ................................... 680,750 40,462,078
------------
INSURANCE--.4%
American International Group, Inc.+ .............. 61,250 6,718,359
------------
MEDICAL SERVICES--.9%
PE Corp-PE Biosystems Group ...................... 236,000 14,160,000
------------
PHARMACEUTICALS--3.7%
American Home Products Corp. ..................... 468,350 26,315,416
Warner-Lambert Co.+ .............................. 280,950 31,975,621
------------
58,291,037
------------
RETAILING--3.7%
Costco Wholesale Corp.* .......................... 173,200 9,363,625
Home Depot, Inc. ................................. 692,850 38,842,903
Wal-Mart Stores Inc.+ ............................ 201,200 11,141,450
------------
59,347,978
------------
<PAGE>
THE ALGER FUND -23-
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
SEMICONDUCTOR CAPITAL
EQUIPMENT--6.0%
Applied Materials Inc.* .......................... 566,000 $ 57,625,875
ASM Lithography Holding NV*+ ..................... 543,000 21,720,000
Teradyne, Inc.*+ ................................. 146,100 16,071,000
-------------
95,416,875
-------------
SEMICONDUCTORS--8.9%
Altera Corporation* .............................. 404,000 41,309,000
Broadcom Corp., Cl. A* ........................... 119,000 20,512,625
Linear Technology Corporation+ ................... 254,000 14,509,750
Texas Instruments, Incorporated .................. 295,000 48,048,125
Vitesse Semiconductor Corp.* ..................... 234,000 15,926,625
-------------
140,306,125
-------------
Total Common Stocks
(Cost $1,116,503,770) .......................... 1,336,065,139
-------------
PREFERRED STOCK--1.1%
COMMUNICATION EQUIPMENT
Nokia Corporation, ADR+
(Cost $14,791,986) ............................. 306,800 17,449,250
-------------
PRINCIPAL
SHORT-TERM INVESTMENTS--33.5% AMOUNT
---------
SHORT-TERM CORPORATE
NOTES--9.1%
Aetna Services Inc.,
6.08%, 5/5/00 .................................. $50,000,000 49,966,222
Dow Chemical Co.,
5.99%, 5/3/00 .................................. 6,200,000 6,197,937
Flour Corp.,
6.03%, 5/11/00 (a) ............................. 19,400,000 19,367,505
General Motors Acceptance Corp.,
6.04%, 5/19/00 ................................. 15,600,000 15,552,888
Merrill Lynch & Co., Inc.,
6.00%, 5/11/00 ................................. 38,200,000 38,136,332
Steamboat Funding Inc.,
6.03%, 5/4/00 .................................. 15,100,000 15,092,413
--------------
Total Short-Term Corporate Notes
(Cost $144,313,297) ............................ 144,313,297
--------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--4.7%
Securities Held Under Repurchase Agreements,
5.77%, 5/1/00, with State Street Bank and Trust,
dtd 4/28/00, repurchase price $74,210,666;
collateralized by U.S. Treasury Bonds
(par value $61,370,000 due 11/15/21) ........... 74,175,000
--------------
OTHER SHORT-TERM
INVESTMENTS--19.7% SHARES
-------
Securities Lending Quality Trust
(Cost $311,240,425) (c) ........................ 311,240,425 311,240,425
--------------
Total Short-Term Investments
(Cost $529,728,722) ............................ 529,728,722
--------------
Total Investments
(Cost $1,661,024,478) (b) ...................... 119.0% 1,883,243,111
Liabilities in excess of
other assets ................................... (19.0) (300,568,704)
----- --------------
Total Net Assets ................................. 100.0% $1,582,674,407
===== ==============
* Non-income producing security. + Securities partially or fully on loan.
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b) At April 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,661,024,478, amounted to
$222,218,633 which consisted of aggregate gross unrealized appreciation of
$299,267,392 and aggregate gross unrealized depreciation of $77,048,759.
(c) Represents investment of cash collateral received for securities on loan.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -24-
ALGER CAPITAL APPRECIATION PORTFOLIO(i) (ii)
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
CLASS A (VI)
--------------------------------------------------------------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS
ENDED YEAR ENDED OCTOBER 31, ENDED ENDED
APRIL 30, ----------------------------- OCTOBER 31, APRIL 30, -----------
2000(vii)(viii) 1999 1998 1997(vii) 2000(vii)(viii) 1999
-------------- ----------- ----------- ----------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ....... $ 13.57 $ 9.03 $ 8.72 $ 7.20 $ 13.28 $ 8.90
----------- ----------- ----------- ----------- ----------- -----------
Net investment
income (loss) ............ (.06)(iii) (.12)(iii) (.05)(iii) (.03) (.11)(iii) (.21)(iii)
Net realized and
unrealized gain
(loss) on
investments .............. 4.04 5.50 .90 1.55 3.93 5.43
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations ............... 3.98 5.38 .85 1.52 3.82 5.22
Distributions from net
realized gains ........... (1.93) (.84) (.54) -- (1.93) (.84)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end
of period ................ $ 15.62 $ 13.57 $ 9.03 $ 8.72 $ 15.17 $ 13.28
=========== =========== =========== =========== =========== ===========
Total Return (iv) .......... 29.9% 63.9% 10.7% 21.2% 29.3% 63.0%
=========== =========== =========== =========== =========== ===========
Ratios and
Supplemental Data:
Net assets, end of
period (000's omitted) ... $ 314,722 $ 147,929 $ 54,415 $ 15,572 $ 1,105,721 $ 594,971
=========== =========== =========== =========== =========== ===========
Ratio of expenses
excluding interest to
average net assets ....... 1.34% 1.38% 1.42% 1.45% 2.09% 2.12%
=========== =========== =========== =========== =========== ===========
Ratio of expenses
including interest
to average net assets .... 1.34% 1.44% 1.49% 1.53% 2.09% 2.21%
=========== =========== =========== =========== =========== ===========
Ratio of net investment
income (loss) to
average net assets ....... (.64%) (.98%) (.67%) (.85%) (1.39%) (1.77%)
=========== =========== =========== =========== =========== ===========
Portfolio Turnover Rate .... 68.50% 186.93% 184.07% 157.63% 68.50% 186.93%
=========== =========== =========== =========== =========== ===========
Amount of debt
outstanding at end
of period ................ -- -- -- -- -- --
=========== =========== =========== =========== =========== ===========
Average amount of debt
outstanding during
the period ............... $ 277,692 $ 7,758,649 $ 2,814,493 $ 2,940,097 $ 277,692 $ 7,758,649
=========== =========== =========== =========== =========== ===========
Average daily number of
portfolio shares
outstanding during
the period ............... 82,216,107 42,330,298 29,012,853 23,217,597 82,216,107 42,330,298
=========== =========== =========== =========== =========== ===========
Average amount of debt
per portfolio share
during the period ........ -- $ 0.18 $ 0.10 $ 0.13 -- $ 0.18
=========== =========== =========== =========== =========== ===========
</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 January 8, 1998.
(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.
(viii) Unaudited. See Notes to Financial Statements.
<PAGE>
-25-
<TABLE>
<CAPTION>
CLASS B CLASS C (V)
------------------------------------------------------------ ------------------------------------------------------------------
SIX MONTHS THREE MONTHS
YEAR ENDED OCTOBER 31, ENDED YEAR ENDED OCTOBER 31, ENDED
------------------------------------------------------------ APRIL 30, ----------------------------- OCTOBER 31,
1998 1997 1996 1995 2000(vii)(viii) 1999 1998 1997(vii)
----------- ----------- ----------- ---------- --------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 8.67 $ 7.21 $ 6.21 $ 3.70 $ 13.27 $ 8.90 $ 8.67 $ 9.22
----------- ----------- ----------- ---------- ----------- ----------- ----------- -----------
(.13)(iii) (.11) (.11)(iii) (.16)(iii) (.11)(iii) (.22)(iii) (.12)(iii) (.02)
.90 1.62 1.29 2.67 3.93 5.43 .89 (.53)
----------- ----------- ----------- ---------- ----------- ----------- ----------- -----------
.77 1.51 1.18 2.51 3.82 5.21 .77 (.55)
(.54) (.05) (.18) -- (1.93) (.84) (.54) --
----------- ----------- ----------- ---------- ----------- ----------- ----------- -----------
$ 8.90 $ 8.67 $ 7.21 $ 6.21 $ 15.16 $ 13.27 $ 8.90 $ 8.67
=========== =========== =========== ========== =========== =========== =========== ===========
9.9% 21.0% 19.5% 67.6% 29.4% 62.9% 9.9% (6.0%)
=========== =========== =========== ========== =========== =========== =========== ===========
$ 242,941 $ 212,895 $ 150,258 $ 33,640 $ 162,231 $ 43,729 $ 2,967 $ 631
=========== =========== =========== ========== =========== =========== =========== ===========
2.19% 2.27% 2.44% 3.26% 2.09% 2.12% 2.18% 2.18%
=========== =========== =========== ========== =========== =========== =========== ===========
2.26% 2.38% 2.46% 3.54% 2.09% 2.21% 2.25% 2.25%
=========== =========== =========== ========== =========== =========== =========== ===========
(1.48%) (1.72%) (1.61%) (3.02%) (1.40%) (1.80%) (1.46%) (1.80%)
=========== =========== =========== ========== =========== =========== =========== ===========
184.07% 157.63% 162.37% 197.65% 68.50% 186.93% 184.07% 157.63%
=========== =========== =========== ========== =========== =========== =========== ===========
-- -- $ 7,700,000 -- -- -- -- --
=========== =========== =========== ========== =========== =========== =========== ===========
$ 2,814,493 $ 2,940,097 $ 239,966 $ 293,153 $ 277,692 $ 7,758,649 $ 2,814,493 $ 2,940,097
=========== =========== =========== ========== =========== =========== =========== ===========
29,012,853 23,217,597 14,556,858 1,629,810 82,216,107 42,330,298 29,012,853 23,217,597
=========== =========== =========== ========== =========== =========== =========== ===========
$ 0.10 $ 0.13 $ 0.02 $ 0.18 -- $ 0.18 $ 0.10 $ 0.13
=========== =========== =========== ========== =========== =========== =========== ===========
</TABLE>
<PAGE>
THE ALGER FUND -26-
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
SHORT-TERM CORPORATE PRINCIPAL
NOTES--50.9% AMOUNT VALUE
--------- -----
BANKS--2.9%
Caisse Centrale Desjardins
du Quebec,
6.10%, 7/14/00 ................................. $ 8,000,000 $ 7,899,689
------------
BUILDING & CONSTRUCTION--2.9%
Yorkshire Building Society,
6.14%, 8/23/00 ................................. 8,000,000 7,844,453
------------
COMMUNICATIONS--2.9%
Telstra Corp. Ltd.,
6.11%, 6/28/00 ................................. 8,000,000 7,921,249
------------
ELECTRONICS--5.8%
Vattenfall Treasury Inc.,
6.09%, 7/10/00 ................................. 8,000,000 7,905,267
Hitachi Credit America Corp.,
6.05%, 5/22/00 ................................. 8,000,000 7,971,767
------------
15,877,034
------------
FINANCIAL SERVICES--11.5%
Artesia North America,
6.17%, 8/14/00 ................................. 8,000,000 7,856,033
Merrill Lynch & Co., Inc.,
6.06%, 6/14/00 ................................. 8,000,000 7,940,747
Moat Funding,
6.22%, 7/27/00 (a) ............................. 8,000,000 7,879,747
Neptune Funding,
6.20%, 7/11/00 (a) ............................. 8,000,000 7,902,178
------------
31,578,705
------------
FOODS & BEVERAGES--5.8%
Golden Peanut Co.,
6.10%, 6/19/00 ................................. 8,000,000 7,933,578
Nestle Capital Corp.,
5.66%, 5/1/00 .................................. 8,000,000 8,000,000
------------
15,933,578
------------
HEALTH CARE--1.7%
Bay State Health Systems,
6.10%, 6/12/00 ................................. 4,600,000 4,567,263
------------
INSURANCE--2.9%
Great-West Life & Annuity
Insurance Co.,
5.90%, 5/16/00 ................................. 8,000,000 7,980,333
------------
MORTGAGE COMPANIES--8.7%
Homeside Lending Inc.,
6.07%, 5/5/00 .................................. 8,000,000 7,994,604
Woolwich PLC,
5.92%, 5/9/00 .................................. 8,000,000 7,989,476
Northern Rock PLC,
6.02%, 6/7/00 .................................. 8,000,000 7,950,502
------------
23,934,582
------------
RETAILING--2.9%
Nike, Inc.,
6.08%, 6/2/00 .................................. 8,000,000 7,956,764
------------
UTILITIES--2.9%
National Rural Utilities Inc.,
6.08%, 6/5/00 .................................. 8,000,000 7,952,711
------------
Total Short-Term Corporate Notes
(Cost $139,446,361) ............................ 139,446,361
------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS--28.8%
Federal Home Loan Bank Corp.,
5.88%, 5/1/00
(Cost $79,000,000) ............................. 79,000,000 79,000,000
------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--3.8%
Securities Held Under Repurchase Agreements,
5.77%, 5/1/00, with State Street Bank and Trust,
dtd 4/28/00, repurchase price $10,334,967;
collateralized by Federal National Mortgage
Association (par value $10,410,000
due 12/21/01) .................................. 10,330,000
------------
Total Investments
(Cost $228,776,361) (b) ........................ 83.5% 228,776,361
Other assets in excess of liabilities ............ 16.5 45,018,252
----- ------------
Net Assets ....................................... 100.0% $273,794,613
===== ============
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b) At April 30, 2000, the net unrealized appreciation on investments based on
cost for federal income tax purposes was the same as the cost for financial
reporting purposes.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -27-
ALGER MONEY MARKET PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ----------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- --------
Net investment income .......................... .0243 .0423 .0476 .0479 .0521 .0573
Dividends from net investment income ........... (.0243) (.0423) (.0476) (.0479) (.0521) (.0573)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ................. $ 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%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ............................. $273,795 $241,310 $172,862 $179,407 $285,702 $185,822
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets ........ .78% .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 ....................... 4.74% 4.37% 4.84% 4.76% 5.18% 5.73%
======== ======== ======== ======== ======== ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -28-
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share amounts) (Unaudited)
April 30, 2000
<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 ......................... $1,456,638 $568,441 $157,456 $522,474 $1,883,243 $228,776
Cash .................................................... 26 28 20 18 26 22
Receivable for investment securities sold ............... 9,957 5,960 392 11,228 38,780 --
Receivable for shares of beneficial
interest sold ....................................... 10,741 600 1,805 2,605 8,531 46,955
Dividends and interest
receivable ........................................... 282 18 447 22 232 5
Prepaid expenses ........................................ 61 56 13 38 64 59
---------- -------- -------- -------- ---------- --------
Total Assets .......................................... 1,477,705 575,103 160,133 536,385 1,930,876 275,817
---------- -------- -------- -------- ---------- --------
LIABILITIES:
Payable for securities loaned ........................... 94,673 -- 6,556 -- 311,240 --
Payable for investment
securities purchased ................................. 21,239 9,300 2,838 10,320 26,633 --
Payable for shares of beneficial
interest redeemed .................................... 33,351 4,400 249 11,136 7,634 1,626
Interest payable ........................................ -- 7 -- -- 5 --
Accrued investment management fees ...................... 783 379 87 320 1,061 135
Accrued distribution fees ............................... 605 282 71 254 756 --
Accrued shareholder servicing fees ...................... 261 111 29 100 312 --
Dividends payable-Note 2(c) ............................. -- -- -- -- -- 130
Accrued expenses ........................................ 412 211 65 162 561 131
---------- -------- -------- -------- ---------- --------
Total Liabilities ..................................... 151,324 14,690 9,895 22,292 348,202 2,022
---------- -------- -------- -------- ---------- --------
NET ASSETS .............................................. $1,326,381 $560,413 $150,238 $514,093 $1,582,674 $273,795
========== ======== ======== ======== ========== ========
Net Assets Consist of:
Paid-in capital ...................................... $1,011,777 $400,833 $133,066 $368,528 $1,262,940 $273,873
Undistributed net investment
income (accumulated loss) .......................... (24,712) (55,539) 408 (12,919) (25,022) --
Undistributed net realized
gain (accumulated loss) ............................ 33,686 113,801 876 53,136 122,537 (78)
Net unrealized appreciation .......................... 305,630 101,318 15,888 105,348 222,219 --
---------- -------- -------- -------- ---------- --------
NET ASSETS .............................................. $1,326,381 $560,413 $150,238 $514,093 $1,582,674 $273,795
========== ======== ======== ======== ========== ========
Class A
Net Asset Value Per Share ............................ $ 15.59 $ 10.22 $ 21.99 $ 9.65 $ 15.62 --
========== ======== ======== ======== ========== ========
Offering Price Per Share ............................. $ 16.37 $ 10.73 $ 23.09 $ 10.13 $ 16.40 --
========== ======== ======== ======== ========== ========
Class B
Net Asset Value and Offering Price Per Share ......... $ 15.07 $ 9.93 $ 21.60 $ 9.33 $ 15.17 $ 1.00
========== ======== ======== ======== ========== ========
Class C
Net Asset Value and Offering Price Per Share .......... $ 15.06 $ 9.92 $ 21.67 $ 9.32 $ 15.16 --
========== ======== ======== ======== ========== ========
Shares of beneficial interest outstanding-Note 6
Class A ............................................... 20,741 9,499 1,299 8,578 20,150 --
========== ======== ======== ======== ========== ========
Class B ............................................... 62,738 45,387 4,200 43,280 72,888 273,873
========== ======== ======== ======== ========== ========
Class C ............................................... 3,809 1,282 1,429 2,938 10,699 --
========== ======== ======== ======== ========== ========
*Identified cost ........................................ $1,151,008 $467,123 $141,568 $417,126 $1,661,024 $228,776
========== ======== ======== ======== ========== ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -29-
STATEMENTS OF OPERATIONS (in thousands) (Unaudited)
For the six months ended April 30, 2000
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
INVESTMENT INCOME: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------- ------- ------- -------- -------- ------
Income:
<S> <C> <C> <C> <C> <C> <C>
Dividends .......................................... $ 2,436 $ 152 $ 147 $ 156 $ 1,271 $ --
Interest ........................................... 3,108 1,112 1,400 1,232 3,299 8,246
-------- ------- ------- -------- -------- ------
Total Income ....................................... 5,544 1,264 1,547 1,388 4,570 8,246
Expenses:
Management fees-Note 3(a) .......................... 4,550 2,461 418 1,676 5,583 748
Distribution fees-Note 3(b):
Class B .......................................... 3,352 1,839 267 1,260 3,542 --
Class C .......................................... 169 43 83 71 405 --
Shareholder servicing fees-Note 3(f) ............... 1,517 724 139 524 1,650 --
Interest on line of credit utilized-Note 5 ......... -- 11 -- -- 9 6
Custodian fees ..................................... 50 26 9 21 57 27
Transfer agent fees and
expenses-Note 3(e) ............................... 947 556 102 330 1,122 259
Professional fees .................................. 18 15 7 17 13 11
Trustees' fees ..................................... 2 2 2 2 2 2
Registration fees .................................. 119 41 35 62 241 95
Miscellaneous ...................................... 104 46 10 32 104 13
-------- ------- ------- -------- -------- ------
Total Expenses ..................................... 10,828 5,764 1,072 3,995 12,728 1,161
-------- ------- ------- -------- -------- ------
NET INVESTMENT
INCOME (LOSS) .................................... (5,284) (4,500) 475 (2,607) (8,158) 7,085
-------- ------- ------- -------- -------- ------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments ............. 30,514 90,321 1,033 46,634 112,403 (2)
Net change in unrealized appreciation
(depreciation) on investments ...................... 174,389 (7,227) 10,469 80,220 105,148 --
-------- ------- ------- -------- -------- ------
Net realized and unrealized
gain (loss) on investments ......................... 204,903 83,094 11,502 126,854 217,551 (2)
-------- ------- ------- -------- -------- ------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS ....................................... $199,619 $78,594 $11,977 $124,247 $209,393 $7,083
======== ======= ======= ======== ======== ======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -30-
ALGER CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF CASH FLOWS (in thousands) (Unaudited)
For the six months ended April 30, 2000
Increase (decrease) in cash:
Cash flows from operating activities:
Dividends received ........................................ $ 1,189
Interest received ......................................... 3,263
Interest paid ............................................. (36)
Operating expenses paid ................................... (11,394)
Purchase of investment securities ......................... (1,205,590)
Purchase of short-term securities, net .................... (482,095)
Proceeds from disposition of investment securities ........ 798,984
Other ..................................................... (5)
-----------
Net cash used in operating activities .................. (895,684)
-----------
Cash flows from financing activities:
Dividends paid ............................................ (123,703)
Proceeds from shares sold and dividends reinvested ........ 2,871,030
Payments on shares redeemed ............................... (2,163,024)
Increase in cash collateral received on securities loaned . 311,240
-----------
Net cash provided by financing activities ............. 895,543
-----------
Net decrease in cash ......................................... (141)
Cash--beginning of period .................................... 167
-----------
Cash--end of period .......................................... $ 26
===========
Reconciliation of net increase in net assets
to net cash used in operating activities:
Net increase in net assets resulting from operations .... $ 209,393
Increase in investments ................................. (893,170)
Increase in interest and dividends receivable ........... (118)
Increase in receivable for investment securities sold ... (14,023)
Increase in payable for investment securities purchased . 18,491
Net realized gain ....................................... (112,403)
Net increase in unrealized appreciation ................. (105,148)
Increase in accrued expenses and other liabilities ...... 1,298
Net increase in other assets ............................ (4)
-----------
Net cash used in operating activities ................. $ (895,684)
===========
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -31-
STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited)
For the six months ended April 30, 2000
<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) ..................... $ (5,284) $ (4,500) $ 475 $ (2,607) $ (8,158) $ 7,085
Net realized gain (loss) on investments .......... 30,514 90,321 1,033 46,634 112,403 (2)
Net change in unrealized appreciation
(depreciation) on investments ................. 174,389 (7,227) 10,469 80,220 105,148 --
---------- -------- -------- -------- ---------- --------
Net increase in net assets
resulting from operations ................... 199,619 78,594 11,977 124,247 209,393 7,083
---------- -------- -------- -------- ---------- --------
Dividends and distributions
to shareholders from:
Net investment income
Class A ........................................ -- -- (85) -- -- --
Class B ........................................ -- -- (118) -- -- (7,085)
Class C ........................................ -- -- (24) -- -- --
Net realized gains
Class A ........................................ (38,393) (9,118) (1,018) (7,104) (24,442) --
Class B ........................................ (136,938) (73,991) (4,386) (47,287) (91,441) --
Class C ........................................ (6,306) (1,539) (1,265) (2,332) (7,820) --
---------- -------- -------- -------- ---------- --------
Total dividends and distributions to shareholders (181,637) (84,648) (6,896) (56,723) (123,703) (7,085)
---------- -------- -------- -------- ---------- --------
Increase from shares of beneficial
interest transactions:
Class A ........................................ 90,232 27,890 15,276 22,081 150,159 --
Class B ........................................ 161,809 35,100 34,873 102,469 441,206 32,487
Class C ........................................ 25,651 5,990 15,287 13,807 118,930 --
---------- -------- -------- -------- ---------- --------
Net increase from shares of beneficial
interest transactions-Note 6 .................. 277,692 68,980 65,436 138,357 710,295 32,487
---------- -------- -------- -------- ---------- --------
Total increase ................................ 295,674 62,926 70,517 205,881 795,985 32,485
Net Assets:
Beginning of period .......................... 1,030,707 497,487 79,721 308,212 786,689 241,310
---------- -------- -------- -------- ---------- --------
End of period ................................ $1,326,381 $560,413 $150,238 $514,093 $1,582,674 $273,795
========== ======== ======== ======== ========== ========
Undistributed net investment
income (accumulated loss) ..................... $ (24,712) $(55,539) $ 408 $(12,919) $ (25,022) $ --
========== ======== ======== ======== ========== ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -32-
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.
<PAGE>
THE ALGER FUND -33-
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 -- General:
The Alger Fund (the "Fund") is a diversified, open-end registered
investment company organized as a business trust under the laws of the
Commonwealth of Massachusetts. The Fund operates as a series company currently
issuing an unlimited number of shares of beneficial interest in six
portfolios--Growth Portfolio, Small Capitalization Portfolio, Balanced
Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio and Money
Market Portfolio (the "Portfolios"). The Growth Portfolio, Small Capitalization
Portfolio, MidCap Growth Portfolio and Capital Appreciation Portfolio normally
invest primarily in equity securities and each has an investment objective of
long-term capital appreciation. The Balanced Portfolio's investment objectives
are current income and long-term capital appreciation which it seeks to achieve
through investing in equity and fixed income securities. The Money Market
Portfolio's investment objective is high current income which it seeks to
achieve by investing in short-term instruments.
Each Portfolio, other than the Money Market Portfolio, offers Class A,
Class B and Class C shares. Class A and Class C shares were first offered on
January 1, 1997 and August 1, 1997, respectively. Class A shares are generally
subject to an initial sales charge while Class B and Class C shares are
generally subject to a deferred sales charge. Class B and Class C shares will
automatically convert to Class A shares eight and twelve years, respectively,
after the end of the calendar month in which the order to purchase was accepted.
The conversion is completed without the imposition of any sales charges or other
fees. Each class has identical rights to assets and earnings except that only
Class B and Class C shares have plans of distribution and bear the related
expenses.
NOTE 2 -- Significant Accounting Policies:
(a) INVESTMENT VALUATION: Investments of the Portfolios, other than the Money
Market Portfolio, are valued on each day the NewYork 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) REPURCHASE AGREEMENTS: The Portfolios enter into repurchase agreements with
approved institutions. The repurchase agreements are collateralized by U.S.
Government securities which are verified by the investment manager as being
either received and held in physical possession by the custodian or as having
been received by such custodian in book-entry form through the Federal Reserve
book-entry system. The investment manager monitors the value of the collateral
at the time the repurchase agreement is entered into and on a daily basis during
the term of the agreement to ensure that its value equals or exceeds the
agreed-upon repurchase price to be repaid to the Portfolio. Additional
collateral is obtained when necessary.
(d) LENDING OF PORTFOLIO SECURITIES: The Portfolios lend their securities to
financial institutions, provided that the market value of securities loaned will
not at any time exceed one-third of the Portfolio's total assets, as
<PAGE>
THE ALGER FUND -34-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
defined. The Portfolios earn fees on the securities loaned which are included in
interest income in the accompanying Statements of Operations. In order to
protect against the risk of failure by the borrower to return the securities
loaned or any delay in the delivery of such securities, the investment manager
ensures that the loan is collateralized by cash, letters of credit or U.S.
Government securities that are maintained at all times in an amount equal to at
least 100 percent of the current market value of the loaned securities. At April
30, 2000, the value of securities loaned and collateral received thereon were as
follows:
VALUE OF
SECURITIES VALUE OF
LOANED COLLATERAL
------------ ------------
Growth Portfolio ........................... $ 93,568,295 $ 94,672,664
Small Capitalization
Portfolio ................................ 20,559,968 25,235,058
Balanced Portfolio ......................... 6,478,577 6,556,044
MidCap Growth
Portfolio ................................ 1,227,450 1,219,857
Capital Appreciation
Portfolio ................................ 324,152,378 312,547,881
Money Market
Portfolio ................................ -- --
(e) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on
the ex-dividend date.
The Money Market Portfolio declares dividends daily from net investment
income; such dividends are paid monthly. The dividends from net investment
income of the other Portfolios are declared and paid annually.
With respect to all Portfolios, dividends from net realized gains, offset
by any loss carryforward, are declared and paid annually after the end of the
fiscal year in which earned.
Each class is treated separately in determining the amounts of dividends of
net investment income and distributions of capital gains payable to holders of
its shares.
(f) FEDERAL INCOME TAXES: It is each Portfolio's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its investment company taxable 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 April 30, 2000, the net capital
loss carryforwards of the Money Market Portfolio which may be used to offset
future net realized gains were approximately $75,000, and expire between 2000
and 2006.
(g) 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.
(h) 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
<PAGE>
THE ALGER FUND -35-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(b) DISTRIBUTION FEES: Class B Shares--The Fund has adopted an Amended and
Restated Plan of Distribution pursuant to which Class B shares of each
Portfolio, other than the Money Market Portfolio, reimburse Fred Alger &
Company, Incorporated, the Fund's distributor (the "Distributor"), for costs and
expenses incurred by the Distributor in connection with advertising, marketing
and selling the Class B shares. The distribution fee is not to exceed an annual
rate of .75% of the respective average daily net assets of the Class B shares of
the designated Portfolios. If in any month, the costs incurred by the
Distributor relating to the Class B shares are in excess of the distribution
fees charged to the Class B shares of the Portfolios, the excess may be carried
forward, with interest, and sought to be reimbursed in future periods. As of
April 30, 2000, such excess carried forward was approximately $18,995,000,
$15,891,000, $1,976,000, $4,897,000 and $23,596,000 for Class B shares of the
Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio,
the MidCap Growth Portfolio, and the Capital Appreciation Portfolio,
respectively. Contingent deferred sales charges imposed on redemptions of Class
B shares will reduce the amount of distribution expenses for which reimbursement
may be sought. See Note 3(c) below.
Class C Shares--The Fund has adopted a Distribution Plan pursuant to which Class
C shares of each Portfolio, other than the Money Market Portfolio, pay the
Distributor a fee at the annual rate of .75% of the respective average daily net
assets of the Class C shares of the designated Portfolios to compensate the
Distributor for its activities and expenses incurred in distributing the Class C
shares. The fees charged may be more or less than the expenses incurred by the
Distributor.
(c) SALES CHARGES: The purchases and sales of shares of the Portfolios, other
than the Money Market Portfolio, may be subject to initial sales charges or
contingent deferred sales charges. For the six months ended April 30, 2000, the
initial sales charges and contingent deferred sales charges retained by the
Distributor were approximately $188,000 and $2,924,000, respectively. The
contingent deferred sales charges are used by the Distributor to offset
distribution expenses previously incurred. Sales charges do not represent
expenses of the Fund.
(d) BROKERAGE COMMISSIONS: During the six months ended April 30, 2000, the
Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio,
the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the
Distributor commissions of $1,063,219, $344,227, $77,266, $328,711 and $533,966,
respectively, in connection with securities transactions.
(e) TRANSFER AGENT FEES AND EXPENSES: Alger Shareholder Services, Inc. ("Alger
Services"), an affiliate of Alger Management, serves as transfer agent for the
Fund. During the six months ended April 30, 2000, 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 $785,700, $470,600, $86,108, $279,200, $954,500 and $225,100,
respectively, for services provided by Alger Services. In addition, during the
six months ended April 30, 2000, 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
$161,640, $85,516, $16,079, $50,829, $167,482 and $33,757, 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.
<PAGE>
THE ALGER FUND -36-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
NOTE 4 -- Securities Transactions:
The following summarizes the securities transactions by the Fund, other
than short-term securities, for the six months ended April 30, 2000 (in
thousands):
PURCHASES SALES
--------- -------
Growth Portfolio ....................... $ 667,912 $579,421
Small Capitalization
Portfolio ............................. 391,270 427,442
Balanced Portfolio ..................... 86,805 38,145
MidCap Growth
Portfolio ............................. 327,845 279,179
Capital Appreciation
Portfolio ............................. 1,224,082 813,009
NOTE 5 -- Lines of Credit:
The Fund has both committed and uncommitted lines of credit with banks. All
borrowings have variable interest rates and are payable on demand. With the
exception of the Capital Appreciation Portfolio, the Fund borrows under such
lines of credit exclusively for temporary or emergency purposes.
The Capital Appreciation Portfolio may borrow under these lines up to 1/3
of the value of its assets, as defined, to purchase additional securities. To
the extent the Capital Appreciation Portfolio borrows under these lines, it must
pledge securities with a total value of at least twice the amount borrowed. For
the six months ended April 30, 2000, the Capital Appreciation Portfolio had
borrowings which averaged $277,692 at a weighted average interest rate of 6.74%.
<PAGE>
THE ALGER FUND -37-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
NOTE 6--Share Capital:
The Fund has an unlimited number of authorized shares of beneficial interest of
$.001 par value which are presently divided into six series. Each series, other
than the Money Market Portfolio, is divided into three separate classes. The
transactions of shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
Alger Growth Portfolio
Class A:
Shares sold .................................... 75,363,552 $ 1,165,911,395 93,010,120 $ 1,345,815,062
Shares converted from Class B .................. 1,092,826 16,858,221 765,156 10,723,156
Dividends reinvested ........................... 2,500,745 35,785,660 676,360 8,211,015
Shares redeemed ................................ (73,014,024) (1,128,323,114) (89,655,055) (1,294,039,354)
------------ --------------- ------------ ---------------
Net increase ................................... 5,943,099 $ 90,232,162 4,796,581 $ 70,709,879
============ =============== ============ ===============
Class B:
Shares sold .................................... 114,534,489 $ 1,707,323,712 118,806,283 $ 1,673,356,937
Dividends reinvested ........................... 9,240,884 128,263,469 3,233,151 38,571,496
Shares converted to Class A .................... (1,128,096) (16,858,221) (779,638) (10,723,156)
Shares redeemed ................................ (110,956,535) (1,656,919,606) (102,786,502) (1,442,428,434)
------------ --------------- ------------ ---------------
Net increase ................................... 11,690,742 $ 161,809,354 18,473,294 $ 258,776,843
============ =============== ============ ===============
Class C:
Shares sold .................................... 3,970,848 $ 59,235,063 2,593,259 $ 37,501,908
Dividends reinvested ........................... 439,173 6,091,330 29,615 353,009
Shares redeemed ................................ (2,689,815) (39,675,685) (810,252) (11,603,192)
------------ --------------- ------------ ---------------
Net increase ................................... 1,720,206 $ 25,650,708 1,812,622 $ 26,251,725
============ =============== ============ ===============
Alger Small Capitalization Portfolio
Class A:
Shares sold .................................... 27,473,781 $ 308,167,257 149,420,839 $ 1,465,519,097
Shares converted from Class B .................. 2,944,080 32,319,326 1,236,266 12,164,811
Dividends reinvested ........................... 760,113 7,654,340 571,350 4,845,050
Shares redeemed ................................ (28,440,273) (320,251,082) (151,276,967) (1,484,533,596)
------------ --------------- ------------ ---------------
Net increase (decrease) ........................ 2,737,701 $ 27,889,841 (48,512) $ (2,004,638)
============ =============== ============ ===============
Class B:
Shares sold .................................... 29,270,211 $ 314,930,744 314,933,540 $ 3,028,416,304
Dividends reinvested ........................... 7,118,807 69,835,497 5,742,442 47,777,113
Shares converted to Class A .................... (3,027,419) (32,319,326) (1,259,686) (12,164,811)
Shares redeemed ................................ (29,406,394) (317,347,408) (331,525,302) (3,183,341,861)
------------ --------------- ------------ ---------------
Net increase (decrease) ........................ 3,955,205 $ 35,099,507 (12,109,006) $ (119,313,255)
============ =============== ============ ===============
Class C:
Shares sold .................................... 1,265,401 $ 14,215,462 9,797,623 $ 94,352,794
Dividends reinvested ........................... 144,825 1,419,283 21,996 182,783
Shares redeemed ................................ (884,530) (9,644,243) (9,626,258) (92,496,428)
------------ --------------- ------------ ---------------
Net increase ................................... 525,696 $ 5,990,502 193,361 $ 2,039,149
============ =============== ============ ===============
</TABLE>
<PAGE>
THE ALGER FUND -38-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
Alger Balanced Portfolio
Class A:
Shares sold .................................... 907,791 $ 19,794,047 4,284,737 $ 85,443,461
Shares converted from Class B .................. 48,508 1,062,743 6,645 130,732
Dividends reinvested ........................... 50,552 1,040,369 5,413 91,866
Shares redeemed ................................ (303,790) (6,621,017) (3,781,145) (75,588,660)
------------ --------------- ------------ ---------------
Net increase ................................... 703,061 $ 15,276,142 515,650 $ 10,077,399
============ =============== ============ ===============
Class B:
Shares sold .................................... 4,780,995 $ 102,111,558 5,166,089 $ 99,682,060
Dividends reinvested ........................... 208,439 4,227,147 64,040 1,075,875
Shares converted to Class A .................... (49,359) (1,062,743) (6,739) (130,732)
Shares redeemed ................................ (3,295,141) (70,402,993) (3,827,743) (73,289,320)
------------ --------------- ------------ ---------------
Net increase ................................... 1,644,934 $ 34,872,969 1,395,647 $ 27,337,883
============ =============== ============ ===============
Class C:
Shares sold .................................... 838,406 $ 17,805,103 886,244 $ 17,342,456
Dividends reinvested ........................... 54,299 1,104,984 1,551 26,116
Shares redeemed ................................ (172,132) (3,623,533) (199,452) (3,933,326)
------------ --------------- ------------ ---------------
Net increase ................................... 720,573 $ 15,286,554 688,343 $ 13,435,246
============ =============== ============ ===============
Alger MidCap Growth Portfolio
Class A:**
Shares sold .................................... 69,093,394 $ 630,343,978 153,362,394 $ 1,191,539,173
Shares converted from Class B .................. 669,103 6,366,568 113,655 886,475
Dividends reinvested ........................... 869,019 6,856,558 393,936 2,575,026
Shares redeemed ................................ (68,061,579) (621,486,398) (152,455,266) (1,183,261,041)
------------ --------------- ------------ ---------------
Net increase ................................... 2,569,937 $ 22,080,706 1,414,719 $ 11,739,633
============ =============== ============ ===============
Class B:**
Shares sold .................................... 24,095,814 $ 214,882,322 57,683,991 $ 433,987,342
Dividends reinvested ........................... 5,616,424 42,984,366 3,378,093 21,676,093
Shares converted to Class A .................... (691,124) (6,366,568) (116,127) (886,475)
Shares redeemed ................................ (16,766,035) (149,030,902) (57,482,649) (432,294,954)
------------ --------------- ------------ ---------------
Net increase ................................... 12,255,079 $ 102,469,218 3,463,308 $ 22,482,006
============ =============== ============ ===============
Class C:**
Shares sold .................................... 2,070,605 $ 18,265,091 1,774,719 $ 13,714,796
Dividends reinvested ........................... 284,494 2,173,536 40,833 261,599
Shares redeemed ................................ (772,395) (6,631,667) (712,755) (5,479,710)
------------ --------------- ------------ ---------------
Net increase ................................... 1,582,704 $ 13,806,960 1,102,797 $ 8,496,685
============ =============== ============ ===============
</TABLE>
<PAGE>
THE ALGER FUND -39-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
------------ --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Alger Capital Appreciation Portfolio
Class A:*
Shares sold ................................... 88,046,296 $ 1,441,119,042 168,941,613 $ 2,013,311,342
Shares converted from Class B ................. 551,170 9,083,504 175,365 2,161,488
Dividends reinvested .......................... 1,559,442 23,422,815 316,690 2,952,608
Shares redeemed ............................... (80,904,982) (1,323,466,657) (164,563,152) (1,953,909,113)
------------ --------------- -------------- ---------------
Net increase ................................... 9,251,926 $ 150,158,704 4,870,516 $ 64,516,325
============ =============== ============== ===============
Class B:*
Shares sold ................................... 72,697,538 $ 1,165,279,424 127,184,924 $ 1,494,488,538
Dividends reinvested .......................... 5,932,840 86,797,445 2,154,183 19,746,682
Shares converted to Class A ................... (566,753) (9,083,504) (178,924) (2,161,488)
Shares redeemed ............................... (49,989,852) (801,787,114) (111,652,359) (1,299,022,116)
-------------- --------------- -------------- ---------------
Net increase .................................. 28,073,773 $ 441,206,251 17,507,824 $ 213,051,616
============== =============== ============== ===============
Class C:*
Shares sold .................................... 8,357,533 $ 134,407,075 4,353,255 $ 52,799,128
Dividends reinvested ........................... 498,864 7,293,385 25,529 233,926
Shares redeemed ................................ (1,456,728) (22,770,414) (1,413,209) (17,370,934)
-------------- --------------- -------------- ---------------
Net increase .................................. 7,399,669 $ 118,930,046 2,965,575 $ 35,662,120
============== =============== ============== ===============
Alger Money Market Portfolio
Shares sold .................................... 5,725,152,866 $ 5,725,152,866 9,851,815,099 $ 9,851,815,099
Dividends reinvested ........................... 5,514,125 5,514,125 9,402,809 9,402,809
Shares redeemed ................................ (5,698,179,819) (5,698,179,819) (9,792,767,208) (9,792,767,208)
-------------- --------------- -------------- ---------------
Net increase .................................. 32,487,172 $ 32,487,172 68,450,700 $ 68,450,700
============== =============== ============== ===============
</TABLE>
----------
* Adjusted to reflect the effect of a 3 for 1 stock split which occurred on
January 8, 1999.
** Adjusted to reflect the effect of a 3 for 1 stock split which occurred on
April 20, 2000.
----------
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
A special meeting of shareholders was held on April 28, 2000. The following
matters were submitted to a shareholder vote with the following results:
Proposal 1--the election or reelection of the following as trustees of the Fund:
Fred M. Alger III, David D. Alger, Charles F. Baird, Jr., Roger P. Cheever,
Lester L. Colbert, Jr., Stephen E. O'Neil, Nathan E. Saint-Amand and B.
Joseph White.
Each of the candidates was elected or reelected and received at least
299,027,713 affirmative votes; no more than 4,654,641 votes were withheld for
any candidate.
Proposal 2--the ratification of the selection of Arthur Andersen LLP as the
Fund's independent public accountants for the fiscal year ending October 31,
2000: For--298,850,492; Against--1,798,013; Abstain--8,033,850.
Proposal 3--Amendment of the Declaration of Trust to provide dollar-based voting
rights for shareholders of the Fund. No individual class of shares of any
portfolio approved the proposal, which was not adopted; the voting results by
portfolio were as follows:
BROKER
FOR AGAINST ABSTAIN NON-VOTE
----------- --------- --------- ----------
Growth Portfolio ................ 28,409,148 1,119,693 1,478,262 16,322,718
Small Capitalization Portfolio .. 17,528,566 913,523 929,672 8,607,245
Balanced Portfolio .............. 1,976,496 64,481 112,079 1,310,470
MidCap Growth Portfolio ......... 4,524,302 187,489 238,357 2,843,319
Capital Appreciation Portfolio .. 31,369,591 1,149,902 1,531,808 24,706,496
Money Market Portfolio .......... 121,401,598 3,985,582 6,235,605 26,735,946
<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
Charles F. Baird, Jr.
Roger P. Cheever
Lester L. Colbert, Jr.
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 invest ors
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.
REP40
|
THE |
ALGER |
FUND |
|
Alger Growth Portfolio
Alger Small Capitalization Portfolio
Alger Balanced Portfolio
Alger MidCap Growth Portfolio
Alger Capital Appreciation Portfolio
Alger Money Market Portfolio
|
|
SEMI-ANNUAL | April 30, 2000
REPORT | (Unaudited)
|
|
