THE ALGER AMERICAN FUND
Meeting the challenge of investing
Alger American
Growth Portfolio
Alger American
Small Capitalization Portfolio
Alger American
Income and Growth Portfolio
Alger American
Balanced Portfolio
Alger American
MidCap Growth Portfolio
Alger American
Leveraged AllCap Portfolio
SEMI-ANNUAL
REPORT
June 30, 1995
(Unaudited)
<PAGE>
July 10,1995
FELLOW SHAREHOLDERS:
Here we are at mid-year 1995. It has been a most unusual year confounding all
the "experts" once again. I am gratified to say that we were not confounded. We
entered the year in a very bullish posture and have been rewarded with excellent
results. Because of institutionalization, computerization and the globalization
of finance, market moves are faster and more pronounced than ever. Having a
sense of the discontinuities is all the more important. To me, one glaring
discontinuity is that despite this year's upward move in the market, growth
stocks remained exceedingly undervalued.
PORTFOLIO MATTERS
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
For the six month period ended June 30, 1995, the Alger American Small
Capitalization Portfolio had a total return of 31.89%, significantly
outperforming the Wilshire Small Company Growth Index and Russell 2000 Growth
Index which had total returns of 20.38% and 15.94%, respectively.
The Portfolio's strong performance is particularly gratifying and is in marked
contrast to the under performance of small cap stocks relative to the general
market during this period. During the second quarter of 1995, however, small cap
performance has gained momentum, with small cap indices such as the Russell 2000
repeatedly setting new record highs. This increase in small cap stocks results
from a recognition that, on a fundamental basis, small cap stocks are
undervalued and positioned for strong performance in 1995 due to the slowing
economic environment. Given the generally higher earnings growth potential of
small cap stocks, such stocks are increasingly valued by the market as the
economy slows and earnings growth becomes more scarce. Currently, the
Portfolio's weighted average one year earnings growth estimate is in excess of
47%, and, while the median price/earnings multiples of the Portfolio has
expanded somewhat in the past few months, at 23, it is below the levels to which
growth stock multiples typically expand during periods of market favor.
ALGER AMERICAN GROWTH PORTFOLIO
The Alger American Growth Portfolio had a total return of 25.17% for the six
months ended June 30, 1995, versus a total return of 20.21% for the S&P 500.
During the first quarter of 1995, large cap growth stocks, with the exception of
certain technology stocks, generally lagged the rise in blue chip and certain
large multinational stocks.
Growth stock under performance during this period was primarily driven by
economic uncertainty which resulted in defensive positioning of investors and by
the perceived higher multinational content of certain blue chip stocks whose
earnings have benefited from weakness in the dollar. During the second quarter
of 1995, however, the performance of large cap growth stocks improved
significantly, due to recognition of their undervaluation as well as their
significantly higher earnings growth potential compared to that offered by other
stock sectors in a slowing economic environment. Currently, the Portfolio's
weighted average one year earnings growth estimate is in excess of 35%, and the
median price/earnings multiple, at 22, remains below the levels to which growth
stock multiples typically expand during periods of market favor.
ALGER AMERICAN BALANCED PORTFOLIO
The Alger American Balanced Portfolio's total return for the six months ended
June 30, 1995, was 18.72% compared to 20.21% for the S&P 500 and 11.79% for the
Lehman Brothers Government/Corporate Bond Index. Presently, we are maintaining a
ratio of 60% common stocks and 40% bonds. The Portfolio did not outperform the
S&P 500, primarily due to the more conservative nature of the Portfolio.
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
The total return of the Alger American MidCap Growth Portfolio was 27.21% for
the six months ended June 30, 1995, significantly above the S&P MidCap 400 Index
total return of 17.62% for the same period. This strong performance is notable
given the general under performance of growth stocks during the first quarter of
1995 and the under performance of smaller cap stocks for the whole six month
1
<PAGE>
period. The Portfolio currently has a weighted average one year earnings growth
estimate in excess of 42%, and a median price/earnings multiple of 23.
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
For the period ended June 30, 1995, the Alger American Leveraged Allcap
Portfolio's total return was 45.10% compared to a total return of 20.21% for the
S&P 500. Despite the poor performance of growth stocks during the first quarter
of 1995, the Portfolio significantly outperformed the S&P 500, due largely to
the more aggressive nature of the Portfolio's investments.
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO
The Alger American Income and Growth Portfolio's total return for the six month
period ended June 30, 1995, was 27.92%, compared to 20.21% for the S&P 500. The
primary focus of the Portfolio is achievement of a high level of dividend income
through investment in dividend paying equity securities. Capital appreciation is
a secondary objective of the Portfolio. Despite historically low average
dividend yields during the first half of 1995, the Portfolio has been able to
generate strong returns, primarily due to appreciation of growth stocks during
the second quarter of 1995.
THE MARKETS AND THE ECONOMY
As 1995 dawned, the key questions facing the stock market concerned the need for
future tightening of interest rates by the Fed, the possible onset of inflation
and the excessive strength of the economy, all of which are naturally
interrelated. Now we are at mid-year and the concern of the markets is not
whether the economy is growing too fast, but whether it is growing too slowly.
In response to the sluggish economy the Federal Reserve lowered the Fed Funds
Rate by one quarter of a point on July 7, 1995. Currently, I believe we may be
at an inflection point in the economy and instead of a "soft landing" we may
have a "touch and go landing".
At present, however, not wanting to borrow trouble, the inflation picture looks
fair. I believe that inflation will remain subdued for the year as a whole
because of the slowing in the economy. The key of course to continued upward
movement of stock prices is the Fed. A perception of benign inflation is the key
Fed policy.
LOOKING AHEAD
Despite the rally year-to-date, growth stocks remain generally underpriced
relative to the market. Technology stocks continue to represent excellent
investments. While they have moved up a great deal, so have their earnings.
Consequently, their multiples have not increased. To get back to traditional
valuations, growth stocks could rise 30-100% relative to the market over the
next few years. This would be combined with a generally optimistic feeling about
the market. This has been curiously absent despite the market's strength. It is
as though all of the "pundits" who were so negative last year are "in denial"
about this very strong market. The current sense of disbelief about the
permanence of this market rally is both refreshing (because it means there is
plenty of buying power left) and puzzling. It seems to me that the last two red
lights on the dash board, which are Fed Policy and the possibility of a
recession, have just turned green. Short interest is at a record high and stock
buybacks still exceed new issues.
I am extremely excited about the prospects for the market and especially growth
stocks during the next five years.
Respectfully submitted,
/s/David D. Alger
David D. Alger
President
2
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--93.9% VALUE
--------- --------
COMMUNICATIONS--15.1%
59,000 ADC Telecommunications Inc.* ...... $2,109,250
70,600 AirTouch Communications Inc.*...... 2,012,100
90,750 Andrew Corp.*+..................... 5,252,156
131,600 Century Telephone Enterprises, Inc 3,734,150
89,000 DSC Communications Corporation*.... 4,138,500
99,700 Motorola Inc....................... 6,692,363
36,400 Telephone and Data Systems, Inc.... 1,324,050
118,200 Tellabs, Inc.*..................... 5,688,375
10,000 U.S. Robotics Inc.................. 1,090,000
60,000 Vodafone Group ADR................. 2,272,500
------------
34,313,444
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--8.9%
69,500 Bay Networks Inc.*................... 2,875,563
71,100 Cisco Systems Inc.*.................. 3,595,029
32,400 Dell Computer Corp.*................. 1,948,050
54,400 Hewlett-Packard Co................... 4,052,800
40,000 International Business Machines Corp. 3,840,000
39,700 Seagate Technology Corp.*............ 1,558,225
35,000 3 Com Corp.*......................... 2,345,000
------------
20,214,667
------------
COMPUTER SOFTWARE--3.0%
67,000 Informix Corp.*+..................... 3,400,250
38,000 Microsoft Corp.*..................... 3,434,250
------------
6,834,500
------------
COMPUTER TECHNOLOGY--1.9%
110,000 Silicon Graphics Inc.*............... 4,386,250
------------
CONSUMER PRODUCTS--2.4%
80,000 Gillette Co.......................... 3,570,000
71,000 Nabisco Holdings Corp. Cl. A*+....... 1,917,000
------------
5,487,000
------------
DEFENSE--3.4%
59,120 Lockheed Martin Corp.+............... 3,731,950
78,700 Loral Corp........................... 4,072,725
------------
7,804,675
------------
FINANCIAL SERVICES--8.3%
57,500 First Data Corp.+.................... 3,270,313
68, 500 First Financial Management Corp...... 5,856,750
95,000 Lehman Brothers Holdings, Inc........ 2,078,125
90,000 Merrill Lynch & Co., Inc.+........... 4,725,000
69,700 Charles Schwab Corp.................. 3,023,238
------------
18,953,426
------------
FOODS & BEVERAGES--1.1%
40,000 The Coca-Cola Company................... 2,550,000
------------
HEALTHCARE--19.4%
56,000 Amgen Inc.*............................. 4,504,528
119,000 Apria Healthcare Group Inc.*............ 3,361,750
82,000 Cardinal Health Inc..................... 3,874,500
31,860 Columbia/HCA Healthcare Corp............ 1,377,945
31,800 Forest Laboratories Inc.*+.............. 1,411,125
72,600 Healthsource Inc.*...................... 2,541,000
52,000 Lilly (Eli) Co.......................... 4,082,000
50,000 Medtronic Inc........................... 3,856,250
135,900 Merck & Co., Inc........................ 6,659,100
59,000 Oxford Health Plans Inc.*+.............. 2,787,750
46,700 Pfizer Inc.............................. 4,313,913
31,000 St. Jude Medical Inc.................... 1,553,875
48,500 Scherer (R.P.) Corp.*................... 2,049,125
40,000 Surgical Care Affiliates Inc............ 765,000
26,000 United Healthcare Corp.................. 1,075,750
------------
44,213,611
------------
LEISURE &
ENTERTAINMENT--4.1%
44,000 Carnival Corporation Class A............ 1,028,500
59,500 Circus Circus Enterprises Inc.*......... 2,097,375
70,000 Disney (Walt) Co........................ 3,893,750
48,000 Viacom Inc. Cl. B*...................... 2,226,000
------------
9,245,625
------------
MACHINERY--.9%
31,300 Caterpillar Inc........................ 2,011,025
------------
MANFACTURING--.7%
36,000 Thermo Electron Corp.*+................ 1,449,000
------------
PAPER PACKAGING &
FOREST PRODUCTS--.9%
25,000 Alco Standard Corp..................... 1,996,875
------------
RESTAURANTS &
LODGING--2.9%
170,000 Cracker Barrel Old Country Stores, Inc. 3,506,250
105,000 Lone Star Steakhouse and
Saloon Inc.*+....................... 3,182,865
------------
6,689,115
------------
RETAILING--5.2%
54,300 Circuit City Stores Inc................ 1,717,238
30,000 Office Depot Inc.*..................... 843,750
150,000 OfficeMax Inc.*........................ 4,181,250
77,500 Tandy Corporation...................... 4,020,313
30,000 Viking Office Products Inc.*+.......... 1,098,750
------------
11,861,301
------------
3
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--93.9% VALUE
--------- --------
SEMI-CONDUCTORS--12.2%
65,000 Adaptec Inc.*.......................... $ 2,405,000
140,000 Altera Corp.*.......................... 6,055,000
122,800 Intel Corp............................. 7,774,836
136,000 LSI Logic Corp.*....................... 5,321,000
60,000 Maxim Integrated Products Inc.*........ 3,060,000
33,000 Xilinx Inc.*........................... 3,102,000
------------
27,717,836
------------
SEMI-CONDUCTORS
CAPITAL EQUIPMENT--3.0%
78,400 Applied Materials Inc.*................ 6,791,400
------------
MISCELLANEOUS--.5%
35,000 Loewen Group Inc.+..................... 1,246,875
------------
TOTAL COMMON STOCKS
(COST $169,267,235).................... 213,766,625
------------
PREFERRED STOCK--1.7%
COMMUNICATIONS
63,000 Nokia Corporation, ADR+
(Cost $ 2,134,465)..................... 3,756,375
------------
WARRANTS
610 U.S. Bioscience Inc. Warrants,
expires 4/24/98*+.................... 725
1 Windmere Corp. Warrants,
expires 1/19/98*..................... 1
------------
TOTAL WARRANTS (COST $573)............. 726
------------
SHORT-TERM INVESTMENTS--9.3%
PRINCIPAL SHORT-TERM
AMOUNT CORPORATE NOTES--3.9% Value
--------- -----
$5,000,000 Freedom Asset Funding Corp.,
6.18%, 7/13/95........................ $ 4,989,700
4,000,000 McDonald's Corp.,
5.93%, 7/6/95......................... 3,996,702
------------
TOTAL SHORT-TERM CORPORATE NOTES
(COST $8,986,402) 8,986,402
------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--5.4%
Securities Held Under Repurchase
Agreements, 6.125%-6.375%, 7/3/95,
With Bear, Stearns & Co. Inc., dtd
6/30/95, repurchase price
$12,192,724; collateralized by
U.S. Treasury Strips
(par value $32,771,000 due
2/15/99--8/15/12) 12,186,321
------------
TOTAL SHORT-TERM INVESTMENTS
(COSTS $21,172,723) 21,172,723
------------
TOTAL INVESTMENTS
(COST $192,574,996)(A) 104.9% 238,696,449
Liabilities in Excess Of Other Assets (4.9)% (11,095,928)
------ ------------
NET ASSETS 100.0% $227,600,521
====== ============
--------------------------------------------------------------------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At June 30,1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $192,574,996, amounted to
$46,121,453 which consisted of aggregate gross unrealized appreciation of
$48,707,005 and aggregate gross unrealized depreciation of $2,585,552.
See Notes to Financial Statements.
4
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ---------------------------------------------------
JUNE 30, 1995(i) 1994 1993 1992 1991 1990
-------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 23.13 $ 24.67 $ 20.17 $ 18.00 $ 12.86 $12.41
-------- -------- ------- ------- ------- ------
Net investment income........................... 0.03 0.07 0.03 0.03 0.08(ii) 0.07
Net realized and unrealized gain
on investments................................ 5.76 0.15 4.50 2.19 5.11 .44
-------- -------- ------- ------- ------- ------
Total from investment operations............ 5.79 0.22 4.53 2.22 5.19 .51
-------- -------- ------- ------- ------- ------
Dividends from net investment income............ (0.07) (0.03) (0.03) (0.03) (0.05) (0.06)
Distributions from net realized gains........... (0.25) (1.73) -- (0.02) -- --
-------- -------- ------- ------- ------- ------
Total Distributions......................... (0.32) (1.76) (0.03) (0.05) (0.05) (0.06)
-------- -------- ------- ------- ------- ------
Net asset value, end of period.................. $ 28.60 $ 23.13 $ 24.67 $ 20.17 $ 18.00 $12.86
======== ======== ======= ======= ======= ======
Total Return.................................... 25.17% 1.45% 22.47% 12.38% 40.39% 4.14%
======== ======== ======= ======= ======= ======
Ratios and Supplemental Data:
Net assets, end of period (000's omitted)..... $227,601 $150,390 $74,878 $30,316 $10,094 $1,228
======== ======== ======= ======= ======= ======
Ratio of expenses to average net assets....... .82% .86% .97% .99% 1.29% 1.50%
======== ======== ======= ======= ======= ======
Decrease reflected in above expense ratio
due to expense reimbursements............... -- -- -- -- -- 2.31%
======== ======== ======= ======= ======= ======
Ratio of net investment income to average
net assets.................................. 0.36% 0.48% 0.25% 0.33% 0.52% 1.69%
======== ======== ======= ======= ======= =======
Portfolio Turnover Rate....................... 51.74% 111.76% 112.64% 63.91% 58.95% 86.77%
======== ======== ======= ======= ======= =======
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Amount was computed based on average shares outstanding during the period.
See Notes to Financial Statements.
5
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--95.8% VALUE
------ -----
APPAREL--1.5%
30,000 Gymboree Corp.*+.................... $ 871,890
93,100 Kenneth Cole Productions Inc. Cl.A.* 3,107,212
190,100 Tommy Hilfiger Corporation*......... 5,322,800
------------
9,301,902
------------
BUILDING &
CONSTRUCTION--.4%
96,600 U.S. Home Corp.*+................... 2,221,800
------------
COMMUNICATIONS--13.7%
167,400 ADC Telecommunications Inc.*........ 5,984,550
362,800 DSC Communications Corporation*..... 16,870,200
385,550 Glenayre Technologies Inc.*+........ 19,663,050
116,500 Mobile Telecommunications
Technologies Corp.*+................ 3,189,188
250,000 Network Equipment Technologies Inc.*+ 5,937,500
90,000 Tekelec Inc.*+...................... 2,182,500
474,400 Tellabs, Inc.*...................... 22,830,500
94,000 U.S. Robotics Inc................... 10,246,000
------------
86,903,488
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--3.3%
262,500 Bay Networks Inc.*.................. 10,860,937
40,000 KEMET Corp.*........................ 2,100,000
95,000 3 Com Corp.*........................ 6,365,000
45,000 VideoServer Inc.*+.................. 1,755,000
------------
21,080,937
------------
COMPUTER SOFTWARE--9.0%
20,000 Broderbund Software Inc.*........... 1,275,000
50,000 Dendrite International Corp.*....... 806,250
214,300 Electronics For Imaging Inc.*+...... 11,197,175
707,000 Informix Corp.*+.................... 17,940,125
132,200 Medic Computer Systems Inc.*+....... 5,089,700
185,000 S3 Inc.*............................ 6,660,000
218,500 Softkey International Inc.*+........ 6,964,688
50,000 Symantec Corp.*..................... 1,443,750
133,000 Wonderware Corp.*................... 5,353,250
------------
56,729,938
------------
COMPUTER TECHNOLOGY--2.8%
145,000 ADFlex Solutions Inc.*+............. 3,552,500
230,000 C.P. Clare Corp.*................... 4,600,000
34,100 Merix Corporation*.................. 1,031,525
165,000 Pinnacle Systems Inc.*.............. 3,712,500
135,200 Sanmina Corp.*+..................... 5,137,600
------------
18,034,125
------------
CONSUMER PRODUCTS--.1%
30,000 Odwalla Inc.*....................... 607,500
------------
DEFENSE--.2%
100,000 Tracor Inc.*........................ 1,362,500
------------
FINANCIAL SERVICES--3.1%
83,100 Advanta Corp., Class B.............. 3,137,025
13,000 Cole Taylor Financial Group+........ 221,000
130,000 Lehman Brothers Holdings, Inc....... 2,843,750
85,000 Olympic Financial Ltd.*+............ 1,418,480
105,000 Oxford Resources Corp. Cl. A.*...... 1,863,750
233,700 Charles Schwab Corp.+............... 10,136,738
------------
19,620,743
------------
FREIGHT--.7%
182,300 Landstar System Inc.*................ 4,694,225
------------
HEALTHCARE--8.5%
110,300 American Oncology Resources Inc.*.... 3,060,825
298,200 Apria Healthcare Group Inc.*......... 8,424,150
103,000 Cardinal Health Inc.................. 4,866,750
124,800 HBO & Co............................. 6,801,600
131,100 Health Management Associates
Inc. Cl. A*+........................ 3,834,675
61,000 Healthsource Inc.*................... 2,135,000
200,000 Metra Biosystems*.................... 2,400,000
146,000 Omnicare Inc.+....................... 3,960,250
87,500 Oxford Health Plans, Inc.*+.......... 4,134,375
133,200 PhyCor Inc.*+........................ 4,678,650
99,100 Scherer (R.P.) Corp*................. 4,186,975
111,900 Surgical Care Affiliates Inc......... 2,140,088
79,300 Sybron International Corp.*.......... 3,162,088
------------
53,785,426
------------
LEISURE &
ENTERTAINMENT--1.2%
198,000 Graff Pay-Per-View*.................. 1,881,000
32,500 Movie Gallery Inc.*+................. 1,139,547
229,950 Players International Inc.*.......... 4,599,000
------------
7,619,547
------------
POLLUTION CONTROL--1.8%
153,000 United Waste Systems Inc.*+.......... 5,508,000
373,000 USA Waste Service Inc.*+............. 5,781,500
------------
11,289,500
------------
6
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS (CONTINUED) VALUE
------ -----
RESTAURANTS &
LODGING--7.7%
204,000 Apple South Inc...................... $ 3,978,000
210,000 Applebees International Inc.+........ 5,407,500
260,400 Cracker Barrel Old Country Stores, Inc. 5,370,750
25,000 DF&R Restaurants Inc.*............... 553,125
528,400 Landrys Seafood Restaurants Inc.*+... 10,568,000
392,400 Lone Star Steakhouse and Saloon Inc.*+ 11,894,820
192,000 O'Charley's Inc.*.................... 2,496,000
211,000 Outback Steakhouse Inc.*+............ 6,092,625
256,200 Uno Restaurant Corp.*................ 2,658,075
------------
49,018,895
------------
RETAILING--7.0%
70,300 CompUSA Inc.*+....................... 2,337,475
303,125 Dollar General Corp.+................ 9,586,328
192,500 Fabri-Centers Of America Inc.*+...... 3,994,375
157,000 Global DirectMail Corp.*............. 3,100,750
106,500 Guest Supply Inc.*+.................. 2,769,000
264,300 OfficeMax Inc.*...................... 7,367,363
316,750 Sports & Recreation, Inc.*........... 4,157,344
297,000 Viking Office Products Inc.*+........ 10,877,625
------------
44,190,260
------------
SEMI-CONDUCTORS--22.4%
365,000 Adaptec Inc.*......................... 13,505,000
225,000 Alliance Semiconductor Corp.*......... 11,025,000
389,000 Altera Corp.*......................... 16,824,250
57,500 Information Storage Devices Inc.*+.... 1,437,500
340,300 Integrated Device Technology Inc.*.... 15,738,875
35,300 Integrated Silicon Solution Inc.*+.... 1,844,425
289,000 LSI Logic Corp.*...................... 11,307,125
187,500 Linear Technology Corporation......... 12,375,000
374,000 Maxim Integrated Products*............ 19,074,000
341,000 Micro Linear Corporation*............. 5,541,250
534,625 Microchip Technology Inc.*+........... 19,446,983
190,000 Orbit Semiconductor, Inc.*............ 4,037,500
187,000 TriQuint Semiconductor Inc.*.......... 3,015,375
235,000 VLSI Technology Inc.*................. 7,079,375
------------
142,251,658
------------
SEMI-CONDUCTORS CAPTIAL
EQUIPMENT--10.8%
135,000 AG Associates Inc.*................... 2,362,500
66,000 Applied Materials Inc.*............... 5,717,250
70,000 Brooks Automation Inc.*............... 1,242,500
44,500 Electroglas Inc.*+.................... 2,547,625
282,000 FSI International Inc.*............... 6,574,265
107,000 Fusion Systems Corporation*........... 3,664,750
219,000 GaSonics International Corp.*......... 6,241,500
97,500 Helix Technology Corp................. 4,192,500
25,000 Kulicke & Soffa Industries Inc.*+..... 1,657,825
220,500 Lam Research Corp.*+.................. 14,112,000
49,300 Opal Inc.*............................ 912,050
197,500 Semitool Inc.*+....................... 6,320,000
181,000 Silicon Valley Group Inc.*............ 6,561,250
170,000 Tencor Instruments*+.................. 6,970,000
------------
69,076,015
------------
MISCELLANEOUS--1.6%
165,000 Loewen Group Inc.+.................... 5,878,125
200,000 Storage Trust Realty+................. 4,050,000
------------
9,928,125
------------
TOTAL COMMON STOCKS
(COST $430,912,242).................. 607,716,584
------------
WARRANTS
3,115 U.S. Bioscience Inc. Warrants ,
expires 4/24/98*+ (COST $2,922)..... 3,701
------------
PRINCIPAL SHORT-TERM INVESTMENTS--14.2%
AMOUNT SHORT-TERM CORPORATE NOTES-2.4%
--------
$ 5,000,000 Anheuser-Busch Companies,
5.92%, 7/5/95(a)..................... 4,996,711
10,000,000 McDonald's Corp.,
5.93%, 7/6/95........................ 9,991,764
------------
TOTAL SHORT-TERM CORPORATE NOTES
(COST $14,988,475)................... 14,988,475
------------
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--11.8%
Securities Held Under Repurchase
Agreements, 6.125%-6.375%,
7/3/95, With Bear, Stearns & Co.,
Inc., dtd 6/30/95, repurchase price
$75,220,255; collateralized by U.S.
Treasury Strips (par value
$300,426,000 due 8/15/05-2/15/19) 75,180,477
------------
TOTAL SHORT-TERM INVESTMENTS
(COSTS $90,168,952) 90,168,952
------------
TOTAL INVESTMENTS
(COST $521,084,116)(B) 110.0% 697,889,237
Liabilities in Excess Of Other Assets (10.0) (63,559,637)
----- ------------
NET ASSETS 100.0% $634,329,600
===== ============
--------------------------------------------------------------------------------
* 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 June 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $521,084,116, amounted to
$176,805,121 which consisted of aggregate gross unrealized appreciation of
$184,635,242 and aggregate gross unrealized depreciation of $7,830,121.
See Notes to Financial Statements.
7
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ----------------------------------------------------
JUNE 30, 1995(i) 1994 1993 1992 1991 1990
-------------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 27.31 $ 30.88 $ 27.26 $ 26.79 $ 17.02 $ 15.79
------- ------- ------- ------- ------- --------
Net investment income (loss)............. (0.03) (0.03)(ii) (0.05) (0.06) (0.03) 0.02
Net realized and unrealized gain
(loss) on investments.................. 8.74 (1.45) 3.67 0.91 9.82 1.35
------- ------- ------- ------- ------- --------
Total from investment operations..... 8.71 (1.48) 3.62 0.85 9.79 1.37
------- ------- ------- ------- ------- --------
Dividends from net investment income..... -- -- -- -- (0.02) (0.01)
Distributions from net realized gains.... -- (2.09) -- (0.38) -- (0.13)
------- ------- ------- ------- ------- --------
Total Distributions.................. -- (2.09) -- (0.38) (0.02) (0.14)
------- ------- ------- ------- ------- --------
Net asset value, end of period........... $ 36.02 $ 27.31 $ 30.88 $ 27.26 $ 26.79 $ 17.02
======= ======= ======= ======= ======= ========
Total Return............................. 31.89% (4.38%) 13.28% 3.55% 57.54% 8.71%
======= ======= ======= ======= ======= ========
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $634,330 $397,037 $238,850 $135,718 $56,798 $ 7,149
======= ======= ======= ======= ======= ========
Ratio of expenses to average net assets 0.91% 0.96% 1.03% .98% 1.06% 1.50%
======= ======= ======= ======= ======= ========
Decrease reflected in above expense ratio
due to expense reimbursements........ -- -- -- -- -- 0.33%
======= ======= ======= ======= ======= ========
Ratio of net investment income (loss) to
average net assets................... (0.30%) (0.10%) (0.35%) (0.37%) (0.12%) 0.50%
======= ======= ======= ======= ======= ========
Portfolio Turnover Rate................ 44.36% 117.61% 148.07% 108.06% 125.90% 132.46%
======= ======= ======= ======= ======= ========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Amount was computed based on average shares outstanding during the period.
See Notes to Financial Statements.
8
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--94.3% VALUE
-------- ----------
AIRLINES--2.0%
13,000 The Boeing Co.................... $ 814,125
----------
BUILDING &
CONSTRUCTION--.4%
6,500 Pulte Corp....................... 182,000
----------
COMMUNICATIONS--13.1%
23,500 DSC Communications Corporation*.. 1,092,750
22,500 Glenayre Technologies Inc.*+..... 1,147,500
18,300 Motorola Inc..................... 1,228,388
31,000 Tellabs, Inc.*................... 1,491,875
10,000 Vodafone Group ADR............... 378,750
---------
5,339,263
---------
COMPUTER RELATED &
BUSINESS EQUIPMENT--4.7%
15,000 Cisco Systems Inc.*.............. 758,445
15,600 Hewlett-Packard Co............... 1,162,200
---------
1,920,645
---------
COMPUTER SOFTWARE--3.6%
20,000 Informix Corp.*+................. 507,500
9,000 Microsoft Corp.*................. 813,375
5,000 Softkey International Inc.*+..... 159,375
---------
1,480,250
---------
CONSUMER PRODUCTS--5.6%
19,200 General Electric Company+......... 1,082,400
10,000 Gillette Co....................... 446,250
12,000 Eastman Kodak Co.................. 727,500
---------
2,256,150
---------
DEFENSE--3.2%
13,250 Lockheed Martin Corp.+............ 836,406
6,000 McDonnell Douglas Corp............ 460,500
---------
1,296,906
---------
FINANCIAL SERVICES--18.1%
25,000 A.G. Edwards Inc.................. 562,500
15,000 Bankers First Corp................ 438,750
10,000 Chase Manhattan Corp.............. 470,000
10,000 Citicorp.......................... 578,750
8,000 First Data Corp.+................. 455,000
11,500 First Financial Management Corp... 983,250
27,000 Lehman Brothers Holdings, Inc..... 590,625
15,000 Mellon Bank Corp.................. 624,375
18,900 Merrill Lynch & Co., Inc.+........ 992,250
5,000 Morgan (J.P.) Inc................. 350,625
21,000 Quick & Reilly Group Inc.+........ 761,250
20,000 Springfield Institution for
Savings Corp.* 261,260
12,000 Waterhouse Investor Services Inc.* 276,000
---------
7,344,635
---------
FOOD & BEVERAGES--1.5%
4,600 The Coca-Cola Company............. 293,250
7,000 Pepsico Inc....................... 319,375
----------
612,625
----------
HEALTHCARE--9.3%
10,200 Amgen Inc.*...................... 820,468
6,000 Cardinal Health Inc.............. 283,500
3,000 Columbia/HCA Healthcare Corp..... 129,750
13,000 Medtronic Inc.................... 1,002,625
22,000 Merck & Co., Inc................. 1,078,000
5,000 Pfizer Inc....................... 461,875
----------
3,776,218
----------
LEISURE &
ENTERTAINMENT--2.0%
7,000 Carnival Corporation Class A......... 163,625
12,000 Disney (Walt) Co..................... 667,500
----------
831,125
----------
MACHINERY--.9%
6,000 Caterpillar Inc...................... 385,500
---------
MANUFACTURING--3.6%
13,400 Millipore Corp.+..................... 904,500
15,450 Precision Castparts Corp.+........... 542,681
----------
1,447,181
----------
OIL & GAS--3.7%
12,200 Royal Dutch Petroleum Corp........... 1,486,875
----------
RESTAURANTS &
LODGING--2.4%
17,000 Cracker Barrel Old Country Stores, Inc. 350,625
20,100 Lone Star Steakhouse and Saloon, Inc.* 609,291
----------
959,916
----------
RETAILING--3.0%
25,000 Dollar General Corp.................. 790,625
8,000 Tandy Corporation.................... 415,000
----------
1,205,625
----------
9
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS (CONTINUED) VALUE
------ -----
SEMI-CONDUCTORS--14.0%
14,000 Integrated Device & Technology Inc.* $ 647,500
36,000 Intel Corp.......................... 2,279,268
10,000 LSI Logic Corp.*.................... 391,250
12,000 Linear Technology Corporation....... 792,000
20,000 Maxim Intergrated Products Inc.*.... 1,020,000
15,000 Microchip Technology Inc.*+......... 545,625
-----------
5,675,643
-----------
SEMI-CONDUCTORS
CAPITAL EQUIPMENT--3.2%
15,000 Applied Materials Inc.*............. 1,299,375
-----------
TOTAL COMMON STOCKS
(COST $29,743,376)............... 38,314,057
-----------
PREFERRED STOCK--1.8%
COMMUNICATIONS
12,600 Nokia Corporation, ADR+
(COST $429,235).................. 751,274
-----------
SHORT-TERM INVESTMENTS--10.4%
SECURITIES HELD UNDER REPURCHASE
AGREEMENTS
Securities Held Under Repurchase
Agreements,
6.25%-6.375%, 7/3/95, With Bear,
Stearns & Co. Inc., dtd 6/30/95,
repurchase price $4,239,858;
collateralized by U.S. Treasury
Strips (par value $13,815,000
due 8/15/12)...................... $ 4,237,629
-----------
TOTAL INVESTMENTS
(COST $34,410,240)(A) 106.5% 43,302,960
Liabilities in Excess Of Other Assets (6.5) (2,667,362)
----- -----------
NET ASSETS 100.0% $40,635,598
===== ===========
--------------------------------------------------------------------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At June 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $34,410,240, amounted to $8,892,720
which consisted of aggregate gross unrealized appreciation of $9,076,609
and aggregate gross unrealized depreciation of $183,889.
See Notes to Financial Statements.
10
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
--------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ------------------------------------------------
JUNE 30, 1995(i) 1994 1993 1992 1991 1990
---------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 13.30 $ 15.31 $ 13.93 $ 13.08 $ 10.67 $ 10.74
------- ------- ------- ------- ------ ------
Net investment income........................... 0.04 0.17 0.07 0.08 0.09 0.11
Net realized and unrealized gain
(loss) on investments......................... 3.66 (1.47) 1.37 1.02 2.41 (0.08)
------- ------- ------- ------- ------ ------
Total from investment operations............ 3.70 (1.30) 1.44 1.10 2.50 0.03
------- ------- ------- ------- ------ ------
Dividends from net investment income............ (0.16) (0.15) (0.06) (0.12) (0.09) (0.10)
Distributions from net realized gains........... -- (0.56) -- (0.13) -- --
------- ------- ------- ------- ------ ------
Total Distributions......................... (0.16) (0.71) (0.06) (0.25) (0.09) (0.10)
------- ------- ------- ------- ------ ------
Net asset value, end of period.................. $ 16.84 $ 13.30 $ 15.31 $ 13.93 $ 13.08 $ 10.67
======= ======= ======= ======= ====== ======
Total Return.................................... 27.92% (8.28%) 10.34% 8.64% 23.51% .28%
======= ======= ======= ======= ====== ======
Ratios and Supplemental Data:
Net assets, end of period (000's omitted)..... $40,636 $29,135 $31,895 $ 8,671 $ 2,663 $ 436
======= ======= ======= ======= ====== ======
Ratio of expenses to average net assets....... .76% .75% .97% 1.25% 1.25% 1.25%
======= ======= ======= ======= ====== ======
Decrease reflected in above expense ratios
due to expense reimbursements............... -- -- -- 0.01% 0.66% 5.41%
======= ======= ======= ======= ====== ======
Ratio of net investment income to average
net assets.................................. 0.64% 1.22% 1.51% 1.62% 2.54% 3.61%
======= ======= ======= ======= ====== ======
Portfolio Turnover Rate....................... 77.12% 177.97% 105.80% 100.62% 61.11% 56.90%
======= ======= ======= ======= ====== ======
--------------------------------------------------------------------------------------------------------------------
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--53.1% VALUE
---------- ----------
APPAREL--.2%
1,000 Tommy Hilfiger Corporation*.......... $ 28,000
----------
COMMUNICATIONS--7.7%
2,500 AirTouch Communications Inc.*........ 71,250
2,500 Century Telephone Enterprises, Inc... 70,937
3,825 Glenayre Technologies Inc.*.......... 195,075
3,300 Motorola Inc......................... 221,513
1,300 Telephone and Data Systems, Inc...... 47,288
6,000 Tellabs, Inc.*....................... 288,750
1,000 U.S. Robotics Inc.................... 109,000
----------
1,003,813
----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--4.2%
2,300 Bay Networks Inc.*................... 95,163
2,000 Cisco Systems Inc.*.................. 101,125
1,000 Dell Computer Corp.*................. 60,125
2,000 Hewlett-Packard Co................... 149,000
1,500 International Business Machines Corp. 144,000
----------
549,413
----------
COMPUTER SOFTWARE--3.1%
3,000 Datalogic International Corp.*....... 73,125
7,400 Informix Corp.*+..................... 187,775
2,900 Parametric Technology Corp.*......... 144,275
----------
405,175
----------
COMPUTER TECHNOLOGY--.9%
3,000 Silicon Graphics Inc.*................ 119,625
----------
CONSUMER PRODUCTS--.7%
2,000 Gillette Co........................... 89,250
----------
DEFENSE--2.7%
2,841 Locheed Martin Corp.+ ................ 179,337
2,600 Loral Corp............................ 134,550
500 McDonnell Douglas Corp................ 38,375
----------
352,262
----------
FINANCIAL SERVICES--5.0%
1,700 First Data Corp.+.................... 96,688
1,900 First Financial Management Corp...... 162,450
3,000 Lehman Brothers Holdings, Inc........ 65,625
3,000 Merrill Lynch & Co., Inc.+........... 157,500
500 Morgan Stanley Group Inc............. 40,500
3,150 Charles Schwab Corp.................. 136,630
----------
659,393
----------
FOOD & BEVERAGES--.5%
1,000 The Coca-Cola Company.............. 63,750
----------
HEALTHCARE--9.0%
4,000 American Oncology Resources Inc.*.. 111,000
1,500 Amgen Inc.*........................ 120,657
3,000 Cardinal Health Inc.,.............. 141,750
1,000 Columbia/HCA Healthcare Corp....... 43,250
1,100 Forest Laboratories Inc.*+......... 48,813
1,600 Healthsource Inc.*................. 56,000
1,800 Lilly (Eli) Co..................... 141,300
3,300 Merck & Co., Inc................... 161,700
1,400 Pfizer Inc......................... 129,325
3,600 Omnicare Inc.+..................... 97,650
1,600 Scherer (R.P. ) Corp.*............. 67,600
1,500 Sybron International Corp.*........ 59,813
----------
1,178,858
----------
LEISURE & ENTERTAINMENT--3.1%
1,000 Carnival Corporation Class A 23,375
2,000 Circus Circus Enterprises Inc.*... 70,500
3,000 Disney (Walt) Co.................. 166,875
2,550 Mirage Resorts Inc.*.............. 78,094
1,500 Viacom Inc. Cl. B*................ 69,563
----------
408,407
----------
MACHINERY--.5%
1,000 Caterpillar Inc................... 64,250
----------
MANUFACTURING--.6%
1,800 Thermo Electron Corp.*............ 72,450
----------
PAPER PACKAGING
& FOREST PRODUCTS--1.2%
2,000 Alco Standard Corp................ 159,750
----------
RESTAURANTS & LODGING--2.1%
5,700 Cracker Barrel Old Country
Stores, Inc.................... 117,563
5,300 Lone Star Steakhouse
and Saloon, Inc.*............... 160,658
----------
278,221
----------
RETAILING--1.8%
2,000 Circuit City Stores Inc........... 63,250
1,200 CompUSA Inc.*+.................... 39,900
312 Dollar General Corp............... 9,867
3,750 Sports & Recreation Inc.*......... 49,219
1,500 Tandy Corporation ................ 77,813
----------
240,049
----------
SEMI-CONDUCTORS--7.2%
5,000 Altera Corp.*.................... 216,250
5,000 Intel Corp....................... 316,565
4,000 LSI Logic Corp.*................. 156,500
1,500 Linear Technology Corporation.... 99,000
3,000 Maxim Intergrated Products Inc.*. 153,000
----------
941,315
----------
12
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS (CONTINUED) VALUE
------ -----
SEMI-CONDUCTORS CAPTIAL
EQUIPMENT--2.0%
3,000 Applied Materials Inc.*............... $ 259,875
----------
MISCELLANEOUS--.6%
2,000 Loewen Group Inc.+.................... 71,250
----------
TOTAL COMMON STOCK
(COST $5,120,913)..................... 6,945,106
----------
PREFERRED STOCK--.9%
COMMUNICATIONS
2,000 Nokia Corporation, ADR+
(COST $80,994)........................ 119,250
----------
PRINCIPAL
AMOUNT CORPORATE BONDS--6.2%
--------
AUTOMOTIVE--3.2%
$400,000 Ford Motor Credit Corp.,
7.75%, 11/15/02..................... 417,156
----------
INSURANCE--3.0%
200,000 Aetna Life & Casualty Co.,
6.375%, 8/15/03+.................... 191,880
200,000 Travelers Inc.,
7.75%, 6/15/99...................... 207,652
----------
399,532
----------
TOTAL CORPORATE BONDS
(COST $811,530) 816,688
----------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS--19.6%
200,000 U.S. Treasury Notes, 7.50%, 10/31/99 210,844
200,000 U.S. Treasury Notes, 6.375%, 1/15/00 202,656
400,000 U.S. Treasury Notes, 7.50%, 5/15/02 429,688
300,000 U.S. Treasury Bonds, 7.625%, 11/15/22 333,375
400,000 Federal Home Loan Mortgage Corp.,
8.20%, 1/16/98...................... 412,688
200,000 Federal Home Loan Mortgage Corp.,
4.75%, 9/20/00...................... 193,000
200,000 Federal Home Loan Mortgage Corp.,
6.50%, 6/10/03...................... 194,782
150,000 Federal Home Loan Mortgage Corp.
7.72%, 5/11/05...................... 153,234
400,000 Federal Home Loan Mortgage Corp.
8.50%, 2/01/05...................... 430,772
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (COST $2,449,346) 2,561,039
SHORT-TERM
INVESTMENTS--23.8%
SHORT-TERM CORPORATE NOTES--9.1%
600,000 AT&T Capital Corp.,
5.95%, 7/12/95...................... 598,909
600,000 McDonald's Corp.,
5.93%, 7/6/95....................... 599,506
TOTAL SHORT-TERM CORPORATE NOTES
(COST $1,198,415)................... 1,198,415
SHORT-TERM
U.S. GOVERNMENT
OBLIGATIONS--8.3%
600,000 U.S. Treasury Bills,
5.66%, 8/17/95...................... 595,566
500,000 U.S. Treasury Bills,
5.64%, 11/09/95..................... 494,265
TOTAL SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (COST $1,085,304) 1,089,831
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--6.4%
Securities Held Under Repurchase
Agreements, 6.125%-6.375%, 7/3/95,
With Bear, Stearns & Co., Inc. dtd
6/30/95, repurchase price $835,136;
collateralized by U.S. Treasury Strips
(par value $3,250,000 due
5/15/01-2/15/17) 834,701
TOTAL SHORT-TERM INVESTMENTS
(COST $3,118,420)................... 3,122,947
TOTAL INVESTMENTS
(COST $11,581,203)(A) 103.6% 13,565,030
Liabilities in Excess Of Other Assets (3.6) (474,570)
----- ------------
NET ASSETS 100.0% $13,090,460
===== ============
--------------------------------------------------------------------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At June 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $11,581,203, amounted to $1,983,827
which consisted of aggregate gross unrealized appreciation of $2,130,084
and aggregate gross unrealized depreciation of $146,257.
See Notes to Financial Statements.
13
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN BALANCED PORTFOLIO (ii)
FINANCIAL HIGHLIGHTS
<TABLE>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
---------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------
JUNE 30, 1995(i) 1994 1993 1992 1991 1990
-------------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 10.80 $ 11.58 $10.77 $10.02 $10.01 $ 10.04
------- ------- ------ ------ ------ -------
Net investment income........................... 0.14 0.20 0.15 0.22 0.45 0.66
Net realized and unrealized gain
(loss) on investments......................... 1.87 (0.70) 0.69 0.72 0.01 (0.03)
------- ------- ------ ------ ------ -------
Total from investment operations............ 2.01 (0.50) 0.84 0.94 0.46 0.63
------- ------- ------ ------ ------ -------
Dividends from net investment income............ (0.22) (0.13) (0.03) (0.19) (0.45) (0.66)
Distributions from net realized gains........... -- (0.15) -- -- -- --
------- ------- ------ ------ ------ -------
Total Distributions......................... (0.22) (0.28) (0.03) (0.19) (0.45) (0.66)
------- ------- ------ ------ ------ -------
Net asset value, end of period.................. $ 12.59 $ 10.80 $11.58 $10.77 $10.02 $ 10.01
======= ======= ====== ====== ====== =======
Total Return.................................... 18.72% (4.27%) 7.79% 9.48% 4.70% 6.53%
======= ======= ====== ====== ====== =======
Ratios and Supplemental Data:
Net assets, end of period (000's omitted)..... $13,090 $10,394 $7,848 $4,009 $1,487 $ 365
======= ======= ====== ====== ====== =======
Ratio of expenses to average net assets....... 1.06% 1.08% 1.25% 1.25% 1.25% 1.25%
======= ======= ====== ====== ====== =======
Decrease reflected in above expense ratios
due to expense reimbursements............... -- -- 0.19% 0.42% 1.37% 4.81%
======= ======= ====== ====== ====== =======
Ratio of net investment income to average
net assets.................................. 2.68% 2.30% 2.05% 1.99% 4.22% 6.60%
======= ======= ====== ====== ====== =======
Portfolio Turnover Rate....................... 46.27% 78.80% 85.46% 15.27% -- 132.55%
======= ======= ====== ====== ====== =======
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Prior to October 1, 1992, the American Balanced Portfolio was the American
Fixed Income Portfolio.
See Notes to Financial Statements.
14
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--94.0% VALUE
--------- -----------
APPAREL--3.1%
67,800 Gymboree Corp.*+................... $ 1,970,471
38,000 Tommy Hilfiger Corporation*........ 1,064,000
----------
3,034,471
----------
BUILDING AND
CONSTRUCTION--1.5%
50,500 Pulte Corp......................... 1,414,000
----------
COMMUNICATIONS--15.0%
17,000 ADC Telecommunications Inc.*....... 607,750
26,250 Andrew Corp.*...................... 1,519,218
60,000 Century Telephone Enterprises, Inc. 1,702,500
47,800 DSC Communications Corporation*.... 2,222,700
40,000 General Instrument Corp.*.......... 1,535,000
41,050 Glenayre Technologies Inc.*........ 2,093,550
16,500 Telephone and Data Systems, Inc.... 600,188
64,000 Tellabs, Inc.*..................... 3,080,000
11,800 U.S. Robotics Inc.................. 1,286,200
----------
14,647,106
----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--4.5%
59,900 Bay Networks Inc.*................ 2,478,362
15,000 Dell Computer Corp.*.............. 901,875
15,000 3 Com Corp.*...................... 1,005,000
----------
4,385,237
----------
COMPUTER SOFTWARE--2.2%
15,000 Electronics For Imaging Inc.*.... 783,750
54,000 Informix Corp.*+................. 1,370,250
----------
2,154,000
----------
DEFENSE--2.6%
50,000 Loral Corp....................... 2,587,500
----------
FINANCIAL SERVICES--6.3%
50,000 Advanta Corp., Class B........... 1,887,500
30,000 First Financial Management Corp.. 2,565,000
40,000 Lehman Brothers Holdings, Inc.... 875,000
20,000 Charles Schwab Corp.............. 867,500
----------
6,195,000
----------
FREIGHT--.9%
33,500 Landstar System Inc.*........... 862,625
----------
HEALTHCARE--12.4%
57,000 American Oncology Resources Inc.* 1,581,750
72,100 Apria Healthcare Group Inc.*.... 2,036,825
42,000 Cardinal Health Inc............. 1,984,500
14,500 Forest Laboratories Inc.*+...... 643,438
22,500 Health Management
Associates Inc. Cl. A.*+........ 658,125
----------
HEALTHCARE (CONTINUED)
45,700 Healthsource Inc.*.............. 1,599,500
17,000 Oxford Health Plans Inc.*+...... 803,250
9,600 St. Jude Medical Inc............ 481,200
39,000 Scherer (R.P.) Corp.*........... 1,647,750
15,000 Surgical Care Affiliates Inc.... 286,875
11,000 United Healthcare Corp.......... 455,125
----------
12,178,338
----------
LEISURE &
ENTERTAINMENT--2.6%
20,000 Carnival Corporation Class A... 467,500
35,000 Circus Circus Enterprises Inc.* 1,233,750
27,000 Mirage Resorts Inc.*........... 826,875
----------
2,528,125
----------
MANUFACTURING--.8%
20,000 Thermo Electron Corp.*......... 805,000
----------
RESTAURANTS &
LODGING--5.6%
56,000 Cracker Barrel Old Country Stores, Inc. 1,155,000
83,700 Lone Star Steakhouse and Saloon Inc.* 2,537,198
63,500 Outback Steakhouse Inc.*....... 1,833,562
----------
5,525,760
----------
RETAILING--12.6%
27,000 Circuit City Stores Inc........ 853,875
42,400 CompUSA Inc.*+................. 1,409,800
49,413 Dollar General Corp............ 1,562,686
50,000 Global DirectMail Corp.*....... 987,500
40,000 Office Depot Inc.*............. 1,125,000
86,800 OfficeMax Inc.*................ 2,419,550
36,500 Tandy Corporation.............. 1,893,438
56,400 Viking Office Products Inc.*+.. 2,065,650
----------
12,317,499
----------
SEMI-CONDUCTORS--15.8%
55,000 Adaptec Inc.*.................. 2,035,000
64,200 Altera Corp.*.................. 2,776,650
39,500 Integrated Device Technology Inc.* 1,826,875
60,600 LSI Logic Corp.*............... 2,370,975
20,000 Linear Technology Corporation.. 1,320,000
55,000 Maxim Intergrated Products Inc.* 2,805,000
24,400 Xilinx Inc.*................... 2,293,600
----------
15,428,100
----------
SEMI-CONDUCTORS
CAPITAL EQUIPMENT--5.9%
39,500 Applied Materials Inc.*........ 3,421,688
16,300 Lam Research Corp.*............ 1,043,200
37,500 Silicon Valley Group Inc.*..... 1,359,375
----------
5,824,263
----------
15
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS (CONTINUED) VALUE
------ -----
MISCELLANEOUS--2.2%
60,000 Loewen Group Inc.+.............. $ 2,137,500
------------
TOTAL COMMON STOCKS
(COST $70,898,395)............ 92,024,524
------------
PREFERRED STOCK
COMMUNICATIONS--1.7%
27,200 Nokia Corporation, ADR+
(COST $974,283)............... 1,621,800
------------
SHORT-TERM INVESTMENTS--7.1%
SHORT-TERM
CORPORATE NOTES--3.1%
PRINCIPAL
AMOUNT VALUE
-------- -----
$3,000,000 McDonald's Corp., 5.93%, 7/6/95
(COST $2,997,529)............. 2,997,529
------------
SECURITIES HELD
UNDER REPURCHASE
AGREEMENTS--4.0%
Securities Held Under Repurchase
Agreements, 6.125%-6.375%, 7/3/95,
With Bear, Stearns & Co. Inc., dtd
6/30/95, repurchase price
$3,965,351; collateralized by
U.S. Treasury Strips (par value
$5,785,000 due 5/15/01-8/15/01) $ 3,963,268
TOTAL SHORT-TERM INVESTMENTS
(COST $6,960,797)............ 6,960,797
TOTAL INVESTMENTS
(COST $78,833,475)(A) 102.7% 100,607,121
Liabilities in Excess Of Other Assets (2.7) (2,678,752)
------ ------------
NET ASSETS 100.0% $ 97,928,369
====== ============
--------------------------------------------------------------------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At June 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $78,833,475, amounted to
$21,773,646 which consisted of aggregate gross unrealized appreciation
of $23,290,773 and aggregate gross unrealized depreciation of $1,517,127.
See Notes to Financial Statements.
16
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
---------------------------------------------------------------------------------------------------------------
FROM MAY 3, 1993
SIX MONTHS YEAR ENDED (COMMENCEMENT OF
ENDED DECEMBER 31, OPERATIONS)
JUNE 30, 1995(i) 1994 TO DECEMBER 31, 1993(ii)
-------------- ------------ --------------------
<S> <C> <C> <C>
Net asset value, beginning of period................ $ 13.46 $ 13.72 $ 10.00
------- ------- -------
Net investment income (loss)........................ 0.00 0.00(iii) (0.02)
Net realized and unrealized gain (loss) on investments 3.66 (0.21) 3.88
------- ------- -------
Total from investment operations................ 3.66 (0.21) 3.86
Distributions from net realized gains............... -- (0.05) (0.14)
------- ------- -------
Net asset value, end of period...................... $ 17.12 $ 13.46 $ 13.72
======= ======= =======
Total Return........................................ 27.21% (1.54%) 38.67%
======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period (000's omitted)......... $97,928 $62,178 $21,301
======= ======= =======
Ratio of expenses to average net assets........... 0.90% 0.97% 1.50%
======= ======= =======
Decrease reflected in above expense ratio
due to expense reimbursements................... -- -- 0.03%
======= ======= =======
Ratio of net investment income (loss) to average
net assets...................................... (0.06%) 0.03% (0.58%)
======= ======= =======
Portfolio Turnover Rate........................... 54.59% 83.96% 67.22%
======= ======= =======
---------------------------------------------------------------------------------------------------------------
</TABLE>
(i)Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii)Ratios have been annualized; total return has not been annualized.
(iii)Amount was computed based on average shares outstanding during the period.
See Notes to Financial Statements.
17
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--96.7% VALUE
------ -------
APPAREL--.7%
100 Gymboree Corp.*+ $ 2,905
------------
COMMUNICATIONS--12.8%
200 ADC Telecommunications Inc.*.. 7,150
200 DSC Communications Corporation* 9,300
100 General Instrument Corp.*..... 3,838
200 Motorola Inc.................. 13,425
300 Tekelec Inc.*+................ 7,275
100 Viacom Inc. Cl. B*............ 4,638
100 Vodafone Group ADR............ 3,787
------------
49,413
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--10.9%
200 Bay Networks Inc.*........... 8,275
150 Cisco Systems Inc.*.......... 7,584
150 Dell Computer Corp.*......... 9,018
100 Hewlett-Packard Co........... 7,450
100 International Business
Machines Corp........... 9,600
------------
41,927
------------
COMPUTER SOFTWARE--11.2%
200 Electronics For Imaging Inc.* 10,450
400 Informix Corp.*+............ 10,150
100 Medic Computer Systems Inc.* 3,850
200 S3 Inc.*.................... 7,200
300 Semtech Corp.*.............. 5,025
200 Softkey International Inc.*+ 6,375
------------
43,050
------------
COMPUTER TECHNOLOGY--4.7%
400 C.P. Clare Corp.*.......... 8,000
100 Pinnacle Systems Inc.*..... 2,250
200 Silicon Graphics Corp.*.... 7,975
------------
18,225
------------
CONSUMER PRODUCTS--.7%
100 Nabisco Holdings Corp. Cl. A+ 2,700
DEFENSE--3.0%
100 McDonnell Douglas Corp..... 7,675
300 Tracor Inc.*............... 4,088
------------
11,763
------------
FINANCIAL SERVICES--2.3%
100 Lehman Brothers Holdings, Inc. 2,188
150 Charles Schwab Corp.......... 6,505
------------
8,693
------------
HEALTHCARE--15.0%
200 American Oncology Resources Inc.* 5,550
100 Amgen Inc.*.................. 8,044
100 Forest Laboratories Inc.*+ 4,438
200 Healthsource, Inc.*.......... 7,000
100 Lilly (Eli) Co............... 7,850
125 Merck & Co., Inc............. 6,125
100 Oxford Health Plans Inc.*.... 4,725
100 Pfizer Inc................... 9,237
100 St. Jude Medical Inc......... 5,013
------------
57,982
------------
PAPER PACKAGING &
FOREST PRODUCTS--2.1%
100 Alco Standard Corp.......... 7,987
RESTAURANTS & LODGING--1.1%
200 Cracker Barrel Old Country Stores, Inc. 4,125
RETAILING --2.7%
100 Circuit City Stores Inc..... 3,163
200 Viking Office Products Inc.*+ 7,325
------------
10,488
------------
SEMI-CONDUCTORS--24.0%
100 Adaptec Inc.*............... 3,700
200 Altera Corp.*............... 8,650
300 Burr Brown Corp.*........... 8,100
200 Integrated Device & Technology Inc.* 9,250
200 Intel Corp.................. 12,663
200 LSI Logic Corp.*............ 7,825
100 Linear Technology Corporation 6,600
300 Micrel Inc.*+............... 6,900
800 Micro Linear Corporation*... 13,000
200 Microchip Technology Inc.*.. 7,274
400 Orbit Semiconductor, Inc.*.. 8,500
------------
92,462
------------
SEMI-CONDUCTORS CAPITAL
EQUIPMENT--5.5%
100 Applied Materials Inc.*.... 8,663
300 FSI International Inc.*.... 6,993
300 Opal Inc.* 5,550
------------
21,206
------------
TOTAL COMMON STOCKS
(COST $329,528) 372,926
------------
18
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES PREFERRED STOCKS--3.1% VALUE
------ -----
COMMUNICATIONS
200 Nokia Corp., ADR
(COST $9,600) .......................... $ 11,925
WARRANTS--.8%
SEMI-CONDUCTORS
100 Intel Corp. Warrants,*+
expires 3/14/98 (COST $1,506) ......... 3,025
SHORT-TERM INVESTMENTS--10.9%
SECURITIES HELD
UNDER REPURCHASE
AGREEMENTS--
Securities Held Under Repurchase
Agreements, 6.125%-6.375%, 7/3/95,
With Bear, Stearns & Co. Inc., dtd
6/30/95, repurchase price
$42,099; collateralized by
U.S. Treasury Strips
(par value $85,000 due
8/15/01-2/15/11) ....................... $ 42,077
TOTAL INVESTMENTS
(COST $ 382,711)(A) ............................... 111.5% 429,953
Liabilities in Excess Of Other Assets ............... (11.5) (44,222)
------ --------
NET ASSETS .......................................... 100.0% $385,731
====== ========
--------------------------------------------------------------------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At June 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $382,711, amounted to $47,242 which
consisted of aggregate gross unrealized appreciation of $48,970 and
aggregate gross unrealized depreciation of $1,728.
See Notes to Financial Statements.
19
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FROM JANUARY 25, 1995
(COMMENCEMENT OF
OPERATIONS)
TO JUNE 30, 1995(i)
---------------------
<S> <C>
Net asset value, beginning of period................................................ $ 10.00
-------
Net investment (loss)............................................................... (0.04)
Net realized and unrealized gain (loss) on investments............................. 4.55
-------
Total from investment operations................................................ 4.51
-------
Net asset value, end of period...................................................... $ 14.51
=======
Total Return........................................................................ 45.10%
=======
Ratios and Supplemental Data:
Net assets, end of period (000's omitted)......................................... $ 386
=======
Ratio of expenses excluding interest to average net assets........................ 1.50%
=======
Ratio of expenses including interest to average net assets........................ 1.94%
=======
Decrease reflected in above expense ratios
due to expense reimbursements................................................... 6.83%
=======
Ratio of net investment (loss) to average net assets.............................. (0.91%)
=======
Portfolio Turnover Rate........................................................... 123.0%
=======
Debt outstanding at end of period................................................... $ 0
=======
Average amount of debt outstanding during the period................................ $13,748
=======
Average daily number of shares outstanding during the period........................ 24,688
=======
Average amount of debt per share during the period.................................. $ 0.56
=======
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
20
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
<TABLE>
JUNE 30, 1995
------------------------------------------------------------------------------------------------------------------------
AMERICAN AMERICAN
SMALL INCOME AMERICAN AMERICAN
AMERICAN CAPITALIZA- AND AMERICAN MIDCAP LEVERAGED
GROWTH TION GROWTH BALANCED GROWTH ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
(identified cost*)--see accompanying
schedules of investments.............$238,696,449 $697,889,237 $43,302,960 $13,565,030 $100,607,121 $429,953
Receivable for investment securities
sold................................. -- 15,836,284 297,772 -- -- 10,900
Receivable for shares of beneficial
interest sold........................ 767,129 1,225,375 203,271 -- 301,519 --
Interest and dividends receivable...... 148,074 60,736 46,321 64,890 27,455 160
Receivable from Investment
Manager--Note 3(a).................... -- -- -- -- -- 3,101
Other assets........................... 5,228 14,533 1,322 612 2,788 3
----------- ----------- ---------- ---------- ----------- --------
Total Assets....................... 239,616,880 715,026,165 43,851,646 13,630,532 100,938,883 444,117
----------- ----------- ---------- ---------- ----------- --------
LIABILITIES:
Payable for securities loaned.......... 9,639,634 68,631,236 3,187,458 451,919 2,933,219 19,999
Payable for investment securities
purchased............................ 2,218,465 9,459,565 -- 69,295 -- 34,401
Payable for shares of beneficial
interest redeemed.................... 425 2,116,172 158 3,972 318 --
Interest payable....................... -- -- -- -- -- 271
Accrued investment management fees..... 128,083 405,773 19,892 7,896 58,968 235
Accrued expenses....................... 29,752 83,819 8,540 6,990 18,009 3,480
----------- ----------- ---------- ---------- ----------- --------
Total Liabilities.................. 12,016,359 80,696,565 3,216,048 540,072 3,010,514 58,386
----------- ----------- ---------- ---------- ----------- -------
NET ASSETS ..............................$227,600,521 $634,329,600 $40,635,598 $13,090,460 $ 97,928,369 $385,731
=========== =========== ========== ========== =========== ========
NET ASSETS CONSIST OF:
Paid-in capital........................$177,534,791 $467,762,611 $33,924,592 $11,185,222 $ 76,663,343 $273,414
Undistributed net investment
income (accumulated loss)............ 307,681 (1,914,774) 116,310 151,330 (50,235) (1,119)
Undistributed net realized gain
(accumulated loss)................... 3,636,596 (8,323,358) (2,298,024) (229,919) (458,385) 66,194
Net unrealized appreciation............ 46,121,453 176,805,121 8,892,720 1,983,827 21,773,646 47,242
----------- ----------- ---------- ---------- ----------- --------
NET ASSETS ..............................$227,600,521 $634,329,600 $40,635,598 $13,090,460 $ 97,928,369 $385,731
=========== =========== ========== ========== =========== ========
Shares of beneficial interest
outstanding--Note 6..................... 7,958,304 17,608,336 2,413,098 1,040,001 5,720,618 26,591
=========== =========== ========== ========== =========== ========
NET ASSET VALUE PER SHARE ...............$ 28.60 $ 36.02 $ 16.84 $ 12.59 $ 17.12 $ 14.51
=========== =========== ========== ========== =========== ========
*Identified cost.........................$192,574,996 $521,084,116 $34,410,240 $11,581,203 $78,833,475 $382,711
============ ============ =========== =========== =========== ========
------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
AMERICAN AMERICAN
SMALL INCOME AMERICAN AMERICAN
AMERICAN CAPITALIZA- AND AMERICAN MIDCAP LEVERAGED
GROWTH TION GROWTH BALANCED GROWTH ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(*)
---------- ---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest............................. $ 377,333 $ 983,647 $ 48,602 $ 192,025 $ 185,061 $ 531
Dividends............................ 623,489 426,355 180,857 20,711 124,259 740
---------- ----------- --------- --------- ---------- --------
Total Income....................... 1,000,822 1,410,002 229,459 212,736 309,320 1,271
---------- ----------- --------- --------- ---------- --------
Expenses:
Management fees-- Note 3(a).......... 636,810 1,968,869 102,342 42,553 295,487 1,047
Interest expense..................... -- -- -- -- -- 543
Custodian fees....................... 25,768 65,160 7,697 6,005 15,002 3,616
Transfer Agent Fees.................. 1,240 1,240 1,240 1,240 1,240 1,075
Professional fees.................... 15,751 30,486 7,307 7,051 10,553 1,665
Trustees' fees....................... 2,040 2,040 2,040 2,040 2,040 1,721
Miscellaneous........................ 13,027 44,770 3,329 1,526 6,424 1,131
---------- ----------- --------- --------- ---------- --------
694,636 2,112,565 123,955 60,415 330,746 10,798
Less, expense reimbursement Note 3(a) -- -- -- -- -- (8,408)
---------- ----------- --------- --------- ---------- --------
Total Expenses..................... 694,636 2,112,565 123,955 60,415 330,746 2,390
---------- ----------- --------- --------- ---------- --------
NET INVESTMENT INCOME
(LOSS) ................................ 306,186 (702,563) 105,504 152,321 (21,426) (1,119)
---------- ----------- --------- --------- ---------- --------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments..... 4,649,629 8,637,960 136,235 26,901 1,851,719 66,194
Net change in unrealized appreciation
on investments..................... 35,396,159 131,368,939 8,206,672 1,829,657 16,819,019 47,242
---------- ----------- --------- ---------- ---------- --------
Net realized and unrealized gain
on investments................... 40,045,788 140,006,899 8,342,907 1,856,558 18,670,738 113,436
---------- ----------- --------- --------- ---------- --------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS ............................ $40,351,974 $139,304,336 $8,448,411 $2,008,879 $18,649,312 $112,317
========== =========== ========= ========= ========== ========
------------------------------------------------------------------------------------------------------------------------
(*)Commenced operations January 25, 1995.
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
AMERICAN AMERICAN
SMALL INCOME AMERICAN AMERICAN
AMERICAN CAPITALIZA- AND AMERICAN MIDCAP LEVERAGED
GROWTH TION GROWTH BALANCED GROWTH ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(*)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN CASH
Cash flows from operating activities:
Interest received ..................... $ 366,337 $ 972,510 $ 46,450 $ 162,879 $ 184,202 $ 515
Dividends received .................... 675,378 476,087 202,206 21,731 118,564 595
Operating expenses paid................ (671,333) (1,997,833) (121,362) (61,031) (319,789) (1,506)
Purchase of short-term securities, net 11,543,852 61,155,811 1,741,425 1,135,008 12,835,215 (42,077)
Purchase of portfolio securities.......(132,720,190) (327,335,538) (29,607,288) (6,330,424) (63,651,384) (591,092)
Proceeds from disposition of
portfolio securities ................ 83,876,123 183,090,285 24,502,009 4,713,577 39,446,859 340,154
Other.................................. (268) (1,663) 272 219 (299) (2)
------------ ------------ ----------- ---------- ----------- --------
Net cash (used for) provided
by operating activities.......... (36,930,101) (83,640,341) (3,236,288) (358,041) (11,386,632) (293,413)
------------ ------------ ----------- ---------- ----------- --------
Cash flows from financing activities:
Dividends paid......................... (2,183,739) -- (352,788) (217,622) (10,668) --
Proceeds from shares sold and
dividends reinvested ................ 81,251,905 207,658,558 7,137,380 2,509,527 30,318,200 273,414
Payments on shares redeemed............ (42,760,872) (112,773,909) (4,346,648) (1,601,301) (13,261,205) --
Increase (decrease) in cash collateral
received on securities loaned........ 622,807 (11,244,308) 798,344 (332,563) (5,659,695) 19,999
------------ ------------ ----------- ---------- ----------- --------
Net cash provided by
financing activities ............ 36,930,101 83,640,341 3,236,288 358,041 11,386,632 293,413
------------ ------------ ----------- ---------- ----------- --------
Net increase in cash ................... 0 0 0 0 0 0
Cash--beginning of period............... 0 0 0 0 0 0
------------ ------------ ----------- ---------- ----------- --------
Cash--end of period..................... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
============ ============ =========== ========== =========== ========
RECONCILIATION OF NET INCREASE
IN NET ASSETS TO NET CASH (USED FOR)
OPERATING ACTIVITIES:
Net increase in net assets
resulting from operations............ $ 40,351,974 $ 139,304,336 $ 8,448,411 $ 2,008,879 $18,649,312 $ 112,317
(Increase) in investments................ (29,363,136) (54,838,080) (1,682,100) (512,685) (6,636,215) (316,518)
(Increase) decrease in receivable for
investments sold....................... -- (13,936,184) 66,961 209,420 650,966 (10,900)
(Increase) decrease in interest and
dividends receivable................... 40,893 38,595 19,197 (28,126) (6,554) (161)
Increase (decrease) in payable
for investments purchased.............. (7,937,084) (14,315,179) (1,748,723) (178,575) (5,384,063) 34,401
Net realized (gain)...................... (4,649,629) (8,637,960) (136,235) (26,901) (1,851,719) (66,194)
Net (increase) in unrealized appreciation (35,396,159) (131,368,939) (8,206,672) (1,829,657) (16,819,019) (47,242)
Increase (decrease) in accrued expenses.. 23,308 114,733 2,601 (615) 10,959 3,987
Net (increase) decrease in other assets.. (268) (1,663) 272 219 (299) (3,103)
------------ ------------ ----------- ---------- ------------ ---------
Net cash (used for) operating
activities.............................$(36,930,101) $(83,640,341) $(3,236,288) $ (358,041) $(11,386,632) $(293,413)
============ ============ =========== ========== ============ =========
-------------------------------------------------------------------------------------------------------------------------
(*) Commenced operations January 25, 1995.
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
AMERICAN AMERICAN
SMALL INCOME AMERICAN AMERICAN
AMERICAN CAPITALIZA- AND AMERICAN MIDCAP LEVERAGED
GROWTH TION GROWTH BALANCED GROWTH ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(*)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) ............$ 306,186 $ (702,563) $ 105,504 $ 152,321 $ (21,426) $ (1,119)
Net realized gain on investments......... 4,649,629 8,637,960 136,235 26,901 1,851,719 66,194
Net change in unrealized appreciation
on investments......................... 35,396,159 131,368,939 8,206,672 1,829,657 16,819,019 47,242
------------ ------------ ----------- ----------- ----------- --------
Net increase in net assets resulting
from operations........................ 40,351,974 139,304,336 8,448,411 2,008,879 18,649,312 112,317
Dividends to shareholders:
Net investment income.................. (480,697) -- (352,788) (217,622) (10,668) --
Net realized gains..................... (1,703,042) -- -- -- -- --
Net increase from shares of beneficial
interest transactions-- Note 6......... 39,041,810 97,988,166 3,405,076 904,716 17,112,089 273,414
------------ ------------ ----------- ----------- ----------- --------
Total increase....................... 77,210,045 237,292,502 11,500,699 2,695,973 35,750,733 385,731
Net Assets
Beginning of period.................... 150,390,476 397,037,098 29,134,899 10,394,487 62,177,636 --
------------ ------------ ----------- ----------- ----------- --------
End of period..........................$227,600,521 $634,329,600 $40,635,598 $13,090,460 $97,928,369 $385,731
============ ============ =========== =========== =========== ========
Undistributed net investment income
(accumulated loss)...................$ 307,681 $ (1,914,774) $ 116,310 $ 151,330 $ (50,235) $ (1,119)
============ ============ =========== =========== =========== ========
-------------------------------------------------------------------------------------------------------------------------
(*) Commenced operations January 25, 1995.
See Notes to Financial Statements.
</TABLE>
24
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
AMERICAN AMERICAN
SMALL INCOME AMERICAN
AMERICAN CAPITALIZA- AND AMERICAN MIDCAP
GROWTH TION GROWTH BALANCED GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net investment income (loss)........... $ 483,387 $ (280,867) $ 363,898 $ 217,713 $ 12,161
Net realized gain (loss) on investments 705,938 (17,564,040) (2,087,625) (256,903) (2,319,155)
Net change in unrealized appreciation
(depreciation) on investments........ 1,040,130 14,069,231 (1,210,449) (332,427) 2,842,601
------------ ------------ ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ 2,229,455 (3,775,676) (2,934,176) (371,617) 535,607
Dividends to shareholders:
Net investment income................ (122,545) -- (296,743) (109,638) --
Net realized gains................... (6,409,484) (18,316,556) (1,140,543) (123,976) (122,328)
Net increase from shares of beneficial
interest transactions--Note 6 ........ 79,815,236 180,279,205 1,611,518 3,151,811 40,463,768
------------ ------------ ----------- ----------- -----------
Total increase (decrease).......... 75,512,662 158,186,973 (2,759,944) 2,546,580 40,877,047
Net Assets
Beginning of year.................... 74,877,814 238,850,125 31,894,843 7,847,907 21,300,589
------------ ------------ ----------- ----------- -----------
End of year.......................... $150,390,476 $397,037,098 $29,134,899 $10,394,487 $62,177,636
============ ============ =========== =========== ===========
Undistributed net investment income
(accumulated loss)................. $ 482,192 $ (1,212,211) $ 363,594 $ 216,631 $ (18,141)
============ ============ =========== =========== ===========
-------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
25
<PAGE>
THE ALGER AMERICAN FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1995
--------------------------------------------------------------------------------
NOTE 1 -- GENERAL:
The Alger American Fund (the "Fund") is a diversified, open-end registered
investment company organized as an unincorporated business trust under the laws
of the Commonwealth of Massachusetts. The Fund operates as a series company
currently issuing six classes of shares of beneficial interest: American Growth
Portfolio, American Small Capitalization Portfolio, American Income and Growth
Portfolio, American Balanced Portfolio, American MidCap Growth Portfolio and
American Leveraged AllCap Portfolio (collectively "the Portfolios"). Shares of
the Portfolios are available and are being marketed exclusively as a pooled
funding vehicle for life insurance companies writing all types of variable
annuity contracts and variable life insurance policies.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES:
(a) INVESTMENT VALUATION: Investments of the Portfolios are valued at 4:00 p.m.
Eastern time on each day the New York Stock Exchange is open. 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 the 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 according to procedures established by the
Board of Trustees to determine fair value in good faith. Securities having a
remaining maturity of sixty days or less are valued at amortized cost which
approximates market value.
(b) SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Security transactions are recorded on a trade date basis. Resulting receivables
and payables are carried at amounts which approximate fair value. Realized gains
and losses from security 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 re-purchase agreements with approved institutions, primarily U.S.
Government securities dealers, and are collateralized by U.S. Government
securities. Such collateral is 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, including an affiliate of the custodian, provided that
the market value of securities loaned will not at any time exceed one-third of
the Portfolio's total assets. 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 insures 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 June 30, 1995, the value of securities loaned and
cash collateral received thereon were as follows:
VALUE OF CASH
SECURITIES COLLATERAL
LOANED RECEIVED
---------- ----------
American Growth Portfolio..... $ 9,251,379 $ 9,639,634
American Small Capitalization
Portfolio................... 65,685,901 68,631,236
American Income and Growth
Portfolio................... 3,146,643 3,187,458
American Balanced Portfolio... 437,308 451,919
American MidCap Growth
Portfolio................... 2,843,865 2,933,219
American Leveraged AllCap
Portfolio................... 19,389 19,999
26
<PAGE>
THE ALGER AMERICAN FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
The Portfolios invest the cash collateral and rebate a portion of the interest
earned to the borrower of the securities. During the six months ended June 30,
1995, the American Growth Portfolio, the American Small Capitalization
Portfolio, the American Income and Growth Portfolio, the American Balanced
Portfolio, the American MidCap Growth Portfolio and the American Leveraged
AllCap Portfolio received $17,033, $148,422, $3,826, $1,321, $15,673, and $71,
respectively, of stock loan fees, net of rebates paid. Such net fees are
included in interest income in the accompanying Statements of Operations.
(e) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded by
the Fund on the ex-dividend date.
Dividends from net investment income are declared and paid annually.
Dividends from net realized gains, offset by any loss carry forward, are
declared and paid annually after the end of the fiscal year in which earned.
(f) FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of the taxable income of each Portfolio to its
respective shareholders. Therefore, no federal income tax provision is required.
Each Portfolio is treated as a separate entity for the purpose of determining
such compliance. At December 31, 1994, the net capital loss carryforwards of the
American Small Capitalization Portfolio, American Income and Growth Portfolio,
American Balanced Portfolio and American MidCap Growth Portfolio, which may be
used to offset future net realized gains, were approximately $14,557,000,
$2,397,000, $159,000 and $2,076,000, respectively, and expire in 2002.
(g) EXPENSES: 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.
NOTE 3--INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the
provisions of the Investment Management Agreements (the "Agreements") with Fred
Alger Management, Inc. ("Alger Management"), are payable monthly and computed
based on the average daily net assets of each Portfolio at the following annual
rates:
American Growth Portfolio..................... .750%
American Small Capitalization Portfolio....... .850
American Income and Growth Portfolio.......... .625
American Balanced Portfolio................... .750
American MidCap Growth Portfolio.............. .800
American Leveraged AllCap Portfolio........... .850
The Agreements further provide that if in any fiscal year the aggregate
expenses, excluding interest, taxes, brokerage commissions, and extraordinary
expenses, of the American Growth Portfolio exceed 1.50%; the American Small
Capitalization Portfolio exceed 1.50%; the American Income and Growth Portfolio
exceed 1.25%; the American Balanced Portfolio exceed 1.25%; the American MidCap
Growth Portfolio exceed 1.50% and the American Leveraged AllCap Portfolio exceed
1.50% of the average daily net assets of the applicable Portfolio, Alger
Management will reimburse that Portfolio for the excess expenses. For the six
months ended June 30, 1995, Alger Management reimbursed the American Leveraged
AllCap Portfolio $8,408.
(b) BROKERAGE COMMISSIONS: During the six months ended June 30, 1995, the
American Growth Portfolio, American Small Capitalization Portfolio, American
Income and Growth Portfolio, American Balanced Portfolio, American MidCap Growth
Portfolio and the American Leveraged AllCap Portfolio paid Fred Alger & Company,
27
<PAGE>
THE ALGER AMERICAN FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
Incorporated ("Alger Inc.") $271,824, $309,812, $66,389, $9,686, $133,352 and
$495 respectively, in connection with securities transactions.
(c) TRANSFER AGENCY FEES: The Fund has entered into a transfer agency agreement
with Alger Shareholder Services, Inc. ("Services"), whereby Services will act as
transfer agent for the Fund for a fee of $2,500 per year per Portfolio plus
out-of-pocket expenses.
(d) OTHER TRANSACTIONS WITH
AFFILIATES: Certain trustees and officers of the Fund are directors and officers
of Alger Management, Alger Inc. and Services. At June 30, 1995, Alger Inc. and
affiliates owned 35,609 shares, 22,015 shares, 1,122 shares, 1,464 shares, 1
share, and 24,501 shares of the American Growth Portfolio, American Small
Capitalization Portfolio, American Income and Growth Portfolio, American
Balanced Portfolio, American MidCap Growth Portfolio and American Leveraged
AllCap Portfolio, respectively.
NOTE 4--SECURITIES TRANSACTIONS: Purchases and sales of securities, other than
short-term securities, for the six months ended June 30, 1995, were as follows:
PURCHASES SALES
--------- -----
American Growth Portfolio..... $124,783,106 $ 83,873,895
American Small Capitalization
Portfolio................... 313,020,359 197,014,170
American Income and Growth
Portfolio................... 27,858,565 24,435,055
American Balanced Portfolio... 6,151,849 4,504,157
American MidCap Growth
Portfolio................... 58,267,321 38,795,964
American Leveraged AllCap
Portfolio................... 625,493 351,054
NOTE 5--SHORT-TERM BORROWINGS:
The American Leveraged AllCap Portfolio has a line of credit with a bank whereby
it may borrow up to 1/3 of its assets, as defined, up to a maximum of
$25,000,000. Such borrowings have a variable interest rate and are payable on
demand. For the period ended June 30, 1995, the Portfolio had borrowings which
averaged $13,748 at a weighted average interest rate of 9.00%.
NOTE 6--SHARE CAPITAL:
The Fund has an unlimited number of authorized shares of beneficial interest of
$.001 par value. During the six months ended June 30, 1995, transactions of
shares of beneficial interest were as follows:
SHARES AMOUNT
------ -------
American Growth
Portfolio:
Shares sold............... 3,118,860 $79,598,963
Dividends reinvested...... 84,119 2,183,739
---------- -----------
3,202,979 81,782,702
Shares redeemed........... (1,746,329) (42,740,892)
--------- -----------
Net increase............ 1,456,650 $39,041,810
========== ===========
SHARES AMOUNT
------ -------
American Small Capitalization
Portfolio:
Shares sold............... 6,779,151 $208,218,999
Shares redeemed........... (3,708,618) (110,230,833)
--------- -----------
Net increase............ 3,070,533 $ 97,988,166
========= ============
SHARES AMOUNT
------ -------
American Income and Growth
Portfolio:
Shares sold............... 463,325 $ 6,968,156
Dividends reinvested...... 23,363 352,788
--------- -----------
486,688 7,320,944
Shares redeemed........... (264,475) (3,915,868)
--------- -----------
Net increase............ 222,213 $ 3,405,076
========= ===========
SHARES AMOUNT
------ ------
American Balanced
Portfolio:
Shares sold............... 197,253 $ 2,277,534
Dividends reinvested...... 18,568 217,622
--------- -----------
215,821 2,495,156
Shares redeemed........... (137,863) (1,590,440)
--------- -----------
Net increase............ 77,958 $ 904,716
========= ===========
28
<PAGE>
THE ALGER AMERICAN FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT'D)
JUNE 30, 1995
--------------------------------------------------------------------------------
SHARES AMOUNT
------ ------
American MidCap Growth
Portfolio:
Shares sold............... 1,990,573 $30,302,897
Dividends reinvested...... 706 10,668
--------- -----------
1,991,279 30,313,565
Shares redeemed........... (891,086) (13,201,476)
--------- -----------
Net increase............ 1,100,193 $17,112,089
========= ===========
SHARES AMOUNT
------ ------
American Leveraged AllCap
Portfolio:
Shares sold............... 26,591 $ 273,414
Shares redeemed........... -- --
--------- -----------
Net increase............ 26,591 $ 273,414
========= ===========
During the year ended December 31, 1994, transactions
of shares of beneficialinterest were as follows:
SHARES AMOUNT
------ -------
American Growth
Portfolio:
Shares sold............... 5,373,649 $124,532,301
Dividends reinvested...... 304,524 6,532,029
--------- ------------
5,678,173 131,064,330
Shares redeemed........... (2,211,790) (51,249,094)
--------- ------------
Net increase............ 3,466,383 $ 79,815,236
========= ============
SHARES AMOUNT
------ -------
American Small Capitalization
Portfolio:
Shares sold............... 12,403,211 $335,183,769
Dividends reinvested...... 711,599 18,316,556
---------- ------------
13,114,810 353,500,325
Shares redeemed........... (6,312,212) (173,221,120)
---------- ------------
Net increase............ 6,802,598 $180,279,205
========== ============
SHARES AMOUNT
------ ------
American Income and Growth
Portfolio:
Shares sold............... 682,155 $ 9,507,480
Dividends reinvested...... 112,640 1,437,286
--------- -----------
794,795 10,944,766
Shares redeemed........... (686,690) (9,333,248)
--------- -----------
Net increase............ 108,105 $ 1,611,518
========= ===========
SHARES AMOUNT
------ ------
American Balanced
Portfolio:
Shares sold............... 413,116$ 4,551,206
Dividends reinvested...... 22,313 233,615
--------- -----------
435,429 4,784,821
Shares redeemed........... (151,358) (1,633,010)
--------- -----------
Net increase............ 284,071 $ 3,151,811
========= ===========
SHARES AMOUNT
------ ------
American MidCap Growth
Portfolio:
Shares sold............... 3,901,955 $51,365,282
Dividends reinvested...... 9,794 122,329
--------- -----------
3,911,749 51,487,611
Shares redeemed........... (843,779) (11,023,843)
--------- -----------
Net increase............ 3,067,970 $40,463,768
========= ===========
29
