================================================================================
THE |
ALGER |
AMERICAN |
FUND |
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, 2000
| (UNAUDITED)
|
================================================================================
<PAGE>
Fellow Shareholders:
JULY 31, 2000
YEAR-TO-DATE REVIEW
For the past three years, the U.S. economy has grown at a rapid pace with little
evidence of upward pressure on prices. The foremost question for investors and
policymakers has been whether the economy can keep up that pace of growth
without setting off inflation. While it appears that members of the Federal Open
Market Committee (FOMC) have accepted the view that faster gains in productivity
have increased the rate at which the U.S. economy can grow without causing the
rate of inflation to accelerate, they also believe that the rate of growth over
the past several quarters has exceeded even that upwardly revised potential. In
order to slow the economy down and avoid an increase in inflation, the Federal
Reserve began to tighten monetary conditions more than a year ago. It raised
short-term interest rates three times in 1999 and continued to tighten with two
more rate increases in February and March of this year.
Despite the steady rise in interest rates, most indicators released in the first
three months of the year demonstrated that the U.S. economy was continuing to
charge ahead while inflation, excluding highly volatile energy prices, remained
well-contained. In April, a series of reports suggested that inflation might
finally be increasing. First came an unexpectedly sharp increase in the March
Consumer Price Index (CPI) report released in mid-April. It was followed by a
rise in the employment cost index for the first quarter, which seemed to signal
that compensation costs might finally be increasing. Until that point, the
Federal Reserve's actions had been seen as preemptory steps aimed at slowing the
economy to avoid a pickup in inflation. Now, investors confronted the
possibility that inflation was beginning to accelerate and even more aggressive
actions by the Federal Reserve might be needed to avert a further rise in the
rate of inflation. A rate increase at the May 16th meeting of the FOMC became a
foregone conclusion. The only question was whether the Federal Reserve would
raise rates by 25 basis points or resort to even stronger measures. The Federal
Reserve raised the Fed funds rate by 50 basis points to 6.50%. By the end of
May, there was increasing speculation that the Fed funds rate might go as high
as 7.0% to 7.5% by the end of the year. As a result of these growing concerns,
long-term interest rates, as reflected in the 10-year U.S. Treasury bond, had
risen 50 basis points to 6.50% by early May. Short-term interest rates also
climbed.
At the conclusion of the May FOMC meeting, anxious investors scrutinized each
and every economic report to gauge the strength of the economy and the risks of
higher inflation. The economic indicators for the month of April brought some
relief since key reports for employment, retail sales, manufacturing activity
and inflation portrayed a slowing economy. The reports for May seemed to confirm
the slowdown detected in the April reports. By the time of the FOMC meeting at
the end of June, the markets had correctly concluded that the Federal Reserve
would leave interest rates unchanged. By the end of the quarter, yields on
10-year Treasury securities had dropped back to 6.00%.
Shifting perceptions about the strength of the economy, the risk of higher
inflation and the course of monetary policy produced extremely high levels of
volatility and sector rotation for the stock market during the first six months
of 2000. At the start of the year, equity investors continued to shun so-called
old-economy companies whose revenues and earnings would suffer if the economy
did slow and to favor, instead, stocks of high-technology companies that had led
the stock market higher in the fourth quarter of 1999. By the end of February,
the divergence had become startlingly large, with price declines of 6.8% and
11.7% for the S&P 500 and Dow Jones Industrial Average, respectively, and an
advance of 15.4% for the NASDAQ Composite. Early in March 2000, money began to
flow back to more out-of-favor sectors and the broader market began to climb
back. The market, as measured by the S&P 500, began to slip again late in March
when unsettling reports on the economy began to unnerve investors. The greatest
waves of selling pressure, however, hit the technology sector, as can be seen in
the performance of the NASDAQ Composite. Most of the damage occurred during the
week ended April 14th, when the unexpectedly negative CPI report was released.
In the space of a week, the Composite fell 25.3%, a record for any given week.
From its high recorded on March 10th, the Composite plunged 36% before bottoming
out on May 23rd. Once the selling panic abated, the NASDAQ staged a strong rally
in June that extended into July while the broad market remained in a narrow
trading range.
Despite all of the violent moves in stock prices, the market indexes are little
changed from year-end levels. From January 1 through June 30, the S&P 500 Index
declined 0.42%, while the technology-laden NASDAQ Composite fell 2.54%.
Medium-sized companies turned in the best performance, with the S&P MidCap 400
rising 8.97% during the first six months of the year. Entering the second half
of 2000, the stock market has traded in a fairly narrow range during the first
weeks of July as investors await further evidence on the direction of the
economy.
1
<PAGE>
LOOKING AHEAD
In the months ahead, investors will continue to dissect every economic report to
confirm that the U.S. economy is keeping to a more moderate pace of growth and
that inflation is being contained. The FOMC may well raise interest rates
another 25 basis points at its next meeting on August 22nd. If so, the increase
would probably be the last "tap on the brakes" in the current cycle. We believe
that a rally in bond prices would follow and have a positive effect on stock
prices by year-end. As evidence of a slowing economy and quiescent inflation
mounts, we expect that the market's tone will improve. Slower economic growth
and scant inflation, however, will likely limit gains in total corporate
profits. High-quality growth stocks should continue to deliver strong earnings
gains since their earnings potential is less dependent upon the pace of growth
in the economy. Their superior results should attract more investor interest in
the second half of the year and result in stronger stock performance.
Respectfully submitted,
/s/ David D. Alger
------------------
David D. Alger
President
2
<PAGE>
TABLE OF CONTENTS
Alger American Growth Portfolio:
Schedule of Investments ............................................. 4
Financial Highlights ................................................ 6
Alger American Small Capitalization Portfolio:
Schedule of Investments ............................................. 7
Financial Highlights ................................................ 9
Alger American Income and Growth Portfolio:
Schedule of Investments ............................................. 10
Financial Highlights ................................................ 12
Alger American Balanced Portfolio:
Schedule of Investments ............................................. 13
Financial Highlights ................................................ 16
Alger American MidCap Growth Portfolio:
Schedule of Investments ............................................. 17
Financial Highlights ................................................ 19
Alger American Leveraged AllCap Portfolio:
Schedule of Investments ............................................. 20
Financial Highlights ................................................ 22
Statements of Assets and Liabilities ..................................... 23
Statements of Operations ................................................. 24
Statement of Cash Flows (Alger American Leveraged AllCap Portfolio) ...... 25
Statements of Changes in Net Assets ...................................... 26
Notes to Financial Statements ............................................ 27
3
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS--91.7% VALUE
------ ------
ADVERTISING--.9%
390,800 Omnicom Group Inc. ................ $ 34,805,625
--------------
AEROSPACE--2.5%
1,569,800 United Technologies Corporation ... 92,421,975
--------------
AUTOMOTIVE--1.1%
1,037,200 Harley-Davidson, Inc. ............. 39,932,200
--------------
BIO-TECHNOLOGY--3.6%
1,905,800 Amgen Inc.* ....................... 133,882,450
--------------
BROADCASTING--1.2%
574,100 Clear Channel Communications Inc.*+ 43,057,500
--------------
CABLE--3.5%
945,100 Comcast Corp., Cl. A Special ...... 38,276,550
686,300 Cox Communications Inc., Cl. A*+ .. 31,269,543
820,650 Time Warner Inc. .................. 62,369,400
--------------
131,915,493
--------------
COMMUNICATION EQUIPMENT--9.7%
2,041,900 Cisco Systems, Inc.* .............. 129,788,269
420,100 Corning Incorporated .............. 113,374,488
1,871,800 Ericsson (LM) Telephone Co.,
ADR, Cl. B ...................... 37,436,000
2,836,800 Motorola, Inc. .................... 82,444,500
--------------
363,043,257
--------------
COMMUNICATIONS--2.9%
1,027,800 America Online Inc.* .............. 54,216,450
2,205,200 AT&T Corp. Liberty Media Group,
Series A* ....................... 53,476,100
--------------
107,692,550
--------------
COMPUTER RELATED & BUSINESS EQUIPMENT--5.8%
2,271,400 Dell Computer Corp.* .............. 112,008,413
663,500 Hewlett-Packard Company ........... 82,854,563
252,000 Sun Microsystems, Inc.* ........... 22,916,250
--------------
217,779,226
--------------
COMPUTER SERVICES--3.3%
256,800 CNET Networks, Inc.* .............. 6,307,650
1,623,600 eBay Inc.* ........................ 88,181,775
234,088 Yahoo Inc.*+ ...................... 28,997,650
--------------
123,487,075
--------------
COMPUTER SOFTWARE--5.4%
180,675 i2 Technologies, Inc.* ............ $ 18,838,191
530,600 Intuit Inc.* ...................... 21,953,575
1,688,000 Microsoft Corporation* ............ 135,040,000
322,700 Oracle Corporation* ............... 27,126,969
--------------
202,958,735
--------------
ENERGY & ENERGY SERVICES--3.6%
2,876,800 Halliburton Company ............... 135,749,000
--------------
FINANCIAL SERVICES--8.3%
430,500 American Express Company .......... 22,439,813
1,657,650 Citigroup Inc. .................... 99,873,413
527,700 Kansas City Southern
Industries, Inc. ................ 46,800,394
100,000 Lehman Brothers Holdings Inc. ..... 9,456,250
196,100 Merrill Lynch & Co., Inc. ......... 22,551,500
909,200 Morgan Stanley Dean Witter & Co. .. 75,690,900
1,033,500 Schwab (Charles) Corporation (The). 34,751,438
--------------
311,563,708
--------------
FOOD CHAINS--2.6%
857,500 The Kroger Co. .................... 18,918,593
1,747,600 Safeway Inc.* ..................... 78,860,450
--------------
97,779,043
--------------
HEALTH CARE SERVICES--.7%
349,300 Cardinal Health, Inc. ............. 25,848,200
--------------
MANUFACTURING--1.3%
1,133,100 Solectron Corp.* .................. 47,448,562
--------------
MEDICAL DEVICES--1.0%
784,200 Medtronic, Inc. ................... 39,062,962
--------------
OIL & GAS--2.9%
1,375,100 Exxon Mobil Corporation ........... 107,945,350
--------------
PHARMACEUTICALS--8.3%
2,030,100 American Home Products Corporation. 119,268,375
180,000 Eli Lilly and Company ............. 17,977,500
3,641,825 Pfizer Inc. ....................... 174,807,600
--------------
312,053,475
--------------
RETAILING--6.4%
945,800 Best Buy Co., Inc.* ............... 59,821,850
1,534,200 Home Depot, Inc. .................. 76,614,112
1,815,300 Wal-Mart Stores Inc. .............. 104,606,663
--------------
241,042,625
--------------
4
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
SHARES COMMON STOCKS (CONT'D) VALUE
------ -----
SEMICONDUCTOR CAPITAL EQUIPMENT--5.1%
1,498,700 Applied Materials Inc.* ........... $ 135,819,687
728,634 Teradyne, Inc.* ................... 53,554,599
--------------
189,374,286
--------------
SEMICONDUCTORS--11.6%
724,600 Altera Corporation* ............... 73,863,913
1,000,600 Intel Corp. ....................... 133,767,713
1,201,800 Linear Technology Corporation ..... 76,840,088
251,400 Maxim Integrated Products, Inc.* .. 17,079,488
852,100 Micron Technology, Inc.* .......... 75,038,056
849,600 Texas Instruments, Incorporated ... 58,356,900
--------------
434,946,158
--------------
TOTAL COMMON STOCKS
(COST $2,614,542,542) ........... 3,433,789,455
--------------
PRINCIPAL VALUE
AMOUNT SHORT-TERM INVESTMENTS--6.3% -----
------
SHORT-TERM CORPORATE NOTES--4.7%
$50,000,000 ANC Rental Funding Corp.,
7.00%, 7/21/00 .................. $ 49,805,556
50,000,000 Bank of Austria,
6.58%, 7/14/00 .................. 49,881,194
28,000,000 Homeside Lending Inc.,
6.52%, 7/6/00 ................... 27,974,644
50,000,000 Neptune Funding,
6.82%, 7/24/00(a) ............... 49,782,139
--------------
TOTAL SHORT-TERM CORPORATE NOTES
(COST $177,443,533) ............. 177,443,533
--------------
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--1.6%
Securities Held Under Repurchase
Agreements, 6.55%-7.00%, 7/03/00,
with Bear, Stearns & Co. Inc.,
dtd 6/30/00, repurchase price
$58,279,562; collateralized by
U.S. Treasury Strips
(Total par value $195,407,000 due
11/15/13-2/15/26) .............. 58,247,498
--------------
TOTAL SHORT-TERM INVESTMENTS
(COST $235,691,031) ............. 235,691,031
--------------
TOTAL INVESTMENTS
(COST $2,850,233,573)(B) ............ 98.0% 3,669,480,486
Other Assets in Excess of Liabilities . 2.0 75,667,035
----- --------------
NET ASSETS ............................ 100.0% $3,745,147,521
===== ==============
--------------------------------------------------------------------------------
* 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, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $2,850,233,573, amounted to
$819,246,913 which consisted of aggregate gross unrealized appreciation of
$905,028,442 and aggregate gross unrealized depreciation of $85,781,529.
See Notes to Financial Statements.
5
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ----------------------------------------------------------------
JUNE 30, 2000 (i) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 64.38 $ 53.22 $ 42.76 $ 34.33 $ 31.16 $ 23.13
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.03 (0.03) 0.09 0.13 0.12 0.02
Net realized and unrealized gain
(loss) on investments 1.45 16.66 18.32 8.66 4.00 8.33
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.48 16.63 18.41 8.79 4.12 8.35
------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income -- (0.08) (0.13) (0.13) (0.02) (0.07)
Distributions from net realized gains (8.46) (5.39) (7.82) (0.23) (0.93) (0.25)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (8.46) (5.47) (7.95) (0.36) (0.95) (0.32)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 57.40 $ 64.38 $ 53.22 $ 42.76 $ 34.33 $ 31.16
====================================================================================================================================
Total Return 3.49% 33.74% 48.07% 25.75% 13.35% 36.37%
====================================================================================================================================
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $3,745,148 $3,387,526 $1,905,719 $1,072,529 $991,028 $502,974
====================================================================================================================================
Ratio of expenses to average net assets 0.79% 0.79% 0.79% 0.79% 0.79% 0.85%
====================================================================================================================================
Ratio of net investment income (loss) to
average net assets 0.09% (0.03%) 0.25% 0.27% 0.50% 0.18%
====================================================================================================================================
Portfolio Turnover Rate 45.05% 135.13% 127.38% 129.50% 82.86% 118.33%
====================================================================================================================================
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
6
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--88.2% VALUE
------ -----
ADVERTISING--1.1%
170,600 Young & Rubicam Inc. ................ $ 9,756,188
------------
BIO-TECHNOLOGY--2.8%
353,500 Cygnus, Inc.*+ ...................... 5,037,375
165,200 Sepracor Inc.*+ ..................... 19,927,250
------------
24,964,625
------------
BROADCASTING--1.2%
195,750 Adelphia Business Solutions
Inc., Cl. A* ...................... 4,538,953
185,100 Citadel Communications Corporation*.. 6,466,931
------------
11,005,884
------------
BUSINESS SERVICES--9.5%
115,200 Actuate Corporation* ................ 6,148,800
220,000 Aspect Communications Corp.* ........ 8,648,750
243,300 BISYS Group Inc.* ................... 14,962,950
375,000 Exult Inc.*+ ........................ 3,750,000
344,500 Getty Images, Inc.* ................. 12,768,031
315,000 Globix Corp.* ....................... 9,233,437
156,000 Heidrick & Struggles
International, Inc.* .............. 9,847,500
75,000 Kana Communications Inc.* ........... 4,640,625
288,000 The Management Network Group, Inc.*+. 10,080,000
175,100 TeleTech Holdings Inc.* ............. 5,439,044
------------
85,519,137
------------
COMMUNICATION EQUIPMENT--5.1%
200,000 Alpha Industries, Inc.*+ ............ 8,812,500
121,000 Anadigics, Inc.* .................... 4,121,562
99,600 Aware Inc.* ......................... 5,092,050
125,000 CommScope Inc.* ..................... 5,125,000
152,000 Efficient Networks, Inc.* ........... 11,181,500
339,500 Globecomm Systems Inc.* ............. 4,668,125
50,500 Stratos Lightwave Inc. .............. 1,407,688
325,000 Westell Technologies Inc., Cl. A*+ .. 4,875,000
------------
45,283,425
------------
COMMUNICATIONS--5.6%
90,400 AirGate PCS, Inc.*+ ................. 4,751,650
200,000 Alamosa PCS Holdings Inc.* .......... 4,175,000
63,000 Cox Radio, Inc. Cl. A* .............. 1,764,000
112,100 CTC Communications Group, Inc.* ..... 4,035,600
199,200 Emmis Communications Corp., Cl. A* .. 8,241,900
210,900 ITC DeltaCom Inc.*+ ................. 4,705,706
254,500 Primus Telecommunications Group,
Incorporated* ..................... 6,330,688
250,000 RealNetworks Inc.* .................. 12,640,625
61,000 Time Warner Telecom Inc., Cl. A* .... 3,926,875
------------
50,572,044
------------
COMPUTER RELATED & BUSINESS EQUIPMENT--6.7%
289,000 Antec Corp.* ........................ 12,011,562
400,000 Integrated Circuit Systems, Inc.* ... 6,850,000
240,000 Newport Corporation ................. 25,770,000
214,600 Photon Dynamics, Inc.* .............. 16,027,938
------------
60,659,500
------------
COMPUTER SERVICES--3.3%
138,800 CNET Networks, Inc.* ................ 3,409,275
163,600 Critical Path Inc.* ................. 9,539,925
352,600 FactSet Research Systems Inc. ....... 9,960,950
240,700 Insituform Technologies, Inc. Cl. A*. 6,528,988
------------
29,439,138
------------
COMPUTER SOFTWARE--13.0%
255,600 Advent Software, Inc.* .............. 16,486,200
196,700 BSquare Corp.* ...................... 4,413,456
134,000 Business Objects ADS* ............... 11,808,750
192,000 Cylink Corporation* ................. 3,216,000
125,000 Dendrite International, Inc*. ....... 4,164,063
99,900 Documentum, Inc*. ................... 8,928,562
95,000 Entrust Technologies Inc.* .......... 7,861,250
104,400 Intuit Inc.* ........................ 4,319,550
107,000 ISS Group, Inc.* .................... 10,564,578
69,000 Liberate Technologies, Inc.*+ ....... 2,022,563
105,000 Mercury Interactive Corporation* .... 10,158,750
49,200 Micromuse Inc.* ..................... 8,141,831
42,000 Phone.com Inc.* ..................... 2,735,250
285,200 Vignette Corporation* ............... 14,834,856
120,000 Vitria Technology, Inc.* ............ 7,335,000
------------
116,990,659
------------
CONSUMER PRODUCTS--1.8%
148,700 Learning Tree International, Inc.* .. 9,107,875
175,500 Mettler-Toledo International Inc.* .. 7,020,000
------------
16,127,875
------------
ENERGY & ENERGY SERVICES--1.0%
145,000 Carbo Ceramics Inc. ................. 5,093,125
125,000 Universal Compression
Holdings, Inc.*+ .................. 4,187,500
------------
9,280,625
------------
FINANCIAL SERVICES--1.9%
265,300 eSpeed Inc., Cl. A* ................. 11,523,969
150,100 Investment Technology Group, Inc.* .. 5,928,950
------------
17,452,919
------------
FOODS & BEVERAGES--.8%
199,000 Beringer Wine Estates Holdings,
Cl. B* ............................ 7,027,188
------------
HEALTH CARE--2.5%
94,800 ArthroCare Corporation* ............. 5,048,100
332,400 Cytyc Corporation* .................. 17,741,850
------------
22,789,950
------------
HEALTH CARE SERVICES--1.2%
350,100 Amerisource Health Corporation
Cl. A*+ ........................... 10,853,100
------------
MANUFACTURING--1.6%
81,200 Millipore Corporation ............... 6,120,450
102,100 Sanmina Corporation*+ ............... 8,729,550
------------
14,850,000
------------
MEDICAL DEVICES--3.3%
101,000 United Therapeutics Corporation*+ ... 10,945,875
250,100 Varian Inc.* ........................ 11,535,862
149,200 ZOLL Medical Corporation* ............ 7,310,800
------------
29,792,537
------------
7
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
SHARES COMMON STOCKS (CONT'D) VALUE
------ -----
MEDICAL SERVICES--3.1%
117,100 Laboratory Corporation of America
Holdings .......................... $ 9,031,338
96,800 Priority Healthcare Corporation,
Cl. B* ............................ 7,193,450
340,000 Province Healthcare Company*+ ....... 12,282,500
------------
28,507,288
------------
OIL & GAS--.8%
328,391 Varco International, Inc.* .......... 7,635,091
------------
PHARMACEUTICALS--8.8%
172,300 Alpharma Inc., Cl. A+ ............... 10,725,675
284,000 ALZACorporation*+ ................... 16,791,500
330,500 Cambrex Corporation ................. 14,872,500
222,000 Celgene Corporation* ................ 13,070,250
252,000 Charles River Laboratories
International, Inc.* .............. 5,591,250
418,950 King Pharmaceuticals, Inc.* ......... 18,381,431
------------
79,432,606
------------
RESEARCH--.5%
65,000 Forrester Research, Inc.+ ........... 4,732,813
------------
RETAILING--3.7%
253,300 BJ's Wholesale Club Inc.* ........... 8,358,900
281,500 Linens'n Things Inc.*+ .............. 7,635,688
265,100 Michaels Stores Inc.* ............... 12,144,893
176,000 Tweeter Home Entertainment
Group, Inc.* ...................... 5,346,000
------------
33,485,481
------------
SEMICONDUCTOR CAPITAL EQUIPMENT--4.2%
276,500 Atmi, Inc.* ......................... 12,857,250
283,700 PRI Automation, Inc.* ............... 18,551,320
Varian Semiconductor Equipment
100,000 Associates, Inc.*+ ................ 6,281,250
------------
37,689,820
------------
SEMICONDUCTORS--4.4%
202,600 Dallas Semiconductor Corp. .......... 8,255,950
206,100 Lattice Semiconductor Corp.*+ ....... 14,246,662
295,800 Microchip Technology Incorporated* .. 17,234,972
------------
39,737,584
------------
TRANSPORTATION--.3%
63,000 Forward Air Corporation*+ ........... 2,520,000
------------
TOTAL COMMON STOCKS
(COST $645,321,819) ............... 796,105,477
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--8.3%
------
SHORT-TERM CORPORATE NOTES--4.4%
$40,000,000 ANC Rental Funding Corp.,
7.00%, 7/21/00
(COST $39,844,444) ................ 39,844,444
------------
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--3.9%
Securities Held Under Repurchase
Agreements, 6.55%-7.00%, 7/03/00,
with Bear, Stearns & Co. Inc.,
dtd 6/30/00, repurchase price
$34,900,579; collateralized by
U.S. Treasury Strips
(Total par value $96,475,000 due
11/15/11-2/15/21) ................. 34,881,452
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $74,725,896) ................ 74,725,896
------------
TOTAL INVESTMENTS
(COST $720,047,715) (A) ............. 96.5% 870,831,373
Other Assets in Excess of Liabilities . 3.5 31,193,169
----- ------------
NET ASSETS ............................ 100.0% $902,024,542
===== ============
--------------------------------------------------------------------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At June 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $720,047,715, amounted to
$150,783,658 which consisted of aggregate gross unrealized appreciation of
$202,215,049 and aggregate gross unrealized depreciation of $51,431,391.
See Notes to Financial Statements.
8
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ----------------------------------------------------------------
JUNE 30, 2000 (ii) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 55.15 $ 43.97 $ 43.75 $ 40.91 $ 39.41 $ 27.31
------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.01)(i) (0.12)(i) (0.02) (0.05)(i) (0.04)(i) (0.09)
Net realized and unrealized gain
(loss) on investments (4.01) 16.98 6.30 4.45 1.70 12.19
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (4.02) 16.86 6.28 4.40 1.66 12.10
Distributions from net realized gains (18.87) (5.68) (6.06) (1.56) (0.16) --
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.26 $ 55.15 $ 43.97 $ 43.75 $ 40.91 $ 39.41
====================================================================================================================================
Total Return (0.02%) 43.42% 15.53% 11.39% 4.18% 44.31%
====================================================================================================================================
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $902,025 $674,864 $1,216,584 $997,586 $1,469,518 $984,212
====================================================================================================================================
Ratio of expenses to average net assets 0.90% 0.90% 0.89% 0.89% 0.88% 0.92%
====================================================================================================================================
Ratio of net investment loss to
average net assets (0.04%) (0.28%) (0.20%) (0.12%) (0.09%) (0.48%)
====================================================================================================================================
Portfolio Turnover Rate 71.76% 182.25% 142.90% 104.43% 110.04% 80.66%
====================================================================================================================================
</TABLE>
(i) Amount was computed based on average shares outstanding during the period.
(ii) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
9
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--93.0% VALUE
------ -----
ADVERTISING--2.4%
21,600 Omnicom Group Inc. .................. $ 1,923,750
22,600 Young & Rubicam Inc. ................ 1,292,438
------------
3,216,188
------------
Aerospace--.7%
15,000 United Technologies Corporation ..... 883,125
------------
BIO-TECHNOLOGY--2.6%
49,800 Amgen Inc.* ......................... 3,498,450
------------
BUSINESS SERVICES--2.6%
81,700 Paychex, Inc. ....................... 3,431,400
------------
CABLE--4.6%
49,400 Comcast Corp., Cl. A Special ........ 2,000,700
55,200 Time Warner Inc. .................... 4,195,200
------------
6,195,900
------------
COMMUNICATION EQUIPMENT--17.4%
56,000 Cisco Systems, Inc.* ................ 3,559,500
16,700 Corning Incorporated ................ 4,506,913
184,400 Ericsson (LM) Telephone Co.,
ADR, Cl. B ........................ 3,688,000
26,700 JDS Uniphase Corporation* ........... 3,200,663
90,300 Motorola, Inc. ...................... 2,624,344
65,200 Nortel Networks Corporation ......... 4,449,900
7,000 PMC-Sierra, Inc.* ................... 1,243,813
------------
23,273,133
------------
COMMUNICATIONS--1.5%
40,000 Verizon Communications .............. 2,032,500
-------------
COMPUTER RELATED & BUSINESS EQUIPMENT--5.2%
17,100 Hewlett-Packard Company ............. 2,135,363
30,000 Newport Corporation ................. 3,221,250
18,000 Sun Microsystems, Inc.* ............. 1,636,875
------------
6,993,488
------------
COMPUTER SERVICES--2.5%
22,500 Amdocs Limited* ..................... 1,726,875
29,000 eBay Inc.* .......................... 1,575,062
------------
3,301,937
------------
COMPUTER SOFTWARE--1.1%
28,100 Vignette Corporation* ............... 1,461,639
------------
CONGLOMERATE--5.2%
131,400 General Electric Company ............ 6,964,200
------------
ELECTRONICS--1.3%
23,000 Scientific-Atlanta, Inc. ............ 1,713,500
------------
ENERGY & ENERGY SERVICES--1.9%
54,400 Halliburton Company ................. 2,567,000
------------
FINANCIAL SERVICES--8.0%
47,400 American Express Company ............ 2,470,725
76,100 Citigroup Inc. ...................... 4,585,025
16,150 Kansas City Southern
Industries, Inc. .................. 1,432,302
57,950 Wells Fargo & Company ............... 2,245,563
------------
10,733,615
------------
FOOD CHAINS--1.0%
30,000 Safeway Inc.* ....................... 1,353,750
------------
HEALTH CARE SERVICES--3.3%
60,000 Cardinal Health, Inc. ............... 4,440,000
------------
INSURANCE--2.0%
22,631 American International Group Inc. ... 2,659,142
-----------
MANUFACTURING--4.0%
52,300 Millipore Corporation ............... 3,942,113
32,300 Solectron Corp.* .................... 1,352,562
------------
5,294,675
------------
MEDICAL DEVICES--.9%
23,300 Medtronic, Inc. ..................... 1,160,630
------------
OIL &GAS--1.4%
24,000 Exxon Mobil Corporation ............. 1,884,000
------------
PHARMACEUTICALS--7.8%
56,600 American Home Products Corporation .. 3,325,250
6,500 Eli Lilly and Company ............... 649,188
134,338 Pfizer Inc. ......................... 6,448,200
------------
10,422,638
------------
RETAILING--6.7%
83,350 Home Depot, Inc. .................... 4,162,290
83,050 Wal-Mart Stores Inc. ................ 4,785,756
------------
8,948,046
------------
SEMICONDUCTOR CAPITAL EQUIPMENT--2.1%
30,600 Applied Materials Inc.* ............. 2,773,125
------------
SEMICONDUCTORS--6.8%
66,400 Linear Technology Corporation ....... 4,245,450
15,000 Micron Technology, Inc.* ............ 1,320,938
51,600 Texas Instruments, Incorporated ..... 3,544,275
------------
9,110,663
------------
TOTAL COMMON STOCKS
(COST $105,622,533) ............... 124,312,744
------------
10
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
Shares Value
------ -----
PREFERRED STOCK--1.5%
COMMUNICATIONS
39,250 Nokia Corporation, ADR
(COST $2,157,365) ................. $ 1,960,047
------------
SHORT-TERM INVESTMENTS--4.2%
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--4.2%
Securities Held Under Repurchase
Agreements, 6.55%, 7/03/00, with
Bear, Stearns & Co. Inc.,
dtd 6/30/00,repurchase price
$5,645,352; collateralized
by U.S. Treasury Strips
(Total par value $18,985,000 due
11/15/13-2/15/21) ................. 5,642,273
------------
TOTAL INVESTMENTS
(COST $113,422,171) (A) ............. 98.7% 131,915,064
Other Assets in Excess of Liabilities . 1.3 1,746,860
----- ------------
NET ASSETS ............................ 100.0% $133,661,924
===== ============
--------------------------------------------------------------------------------
* Non-income producing security.
(a) At June 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $113,422,171, amounted to
$18,492,893 which consisted of aggregate gross unrealized appreciation of
$22,158,875 and aggregate gross unrealized depreciation of $3,665,982.
See Notes to Financial Statements.
11
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
---------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ------------------------------------------------------------------
JUNE 30, 2000 (ii) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.58 $ 13.12 $ 10.99 $ 8.42 $ 17.79 $ 13.30
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 0.01 0.00 0.03 0.03 0.09(i) 0.11(i)
Net realized and unrealized gain
(loss) on investments 0.50 5.26 3.30 2.94 1.87 4.54
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.51 5.26 3.33 2.97 1.96 4.65
------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income (0.01) (0.03) (0.04) (0.04) (0.33) (0.16)
Distributions from net realized gains (3.92) (0.77) (1.16) (0.36) (11.00) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (3.93) (0.80) (1.20) (0.40) (11.33) (0.16)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.16 $ 17.58 $ 13.12 $ 10.99 $ 8.42 $17.79
====================================================================================================================================
Total Return 5.43% 42.45% 32.39% 36.29% 19.68% 35.13%
====================================================================================================================================
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $133,662 $91,250 $77,926 $47,399 $20,910 $8,639
====================================================================================================================================
Ratio of expenses to average net assets 0.72% 0.70% 0.70% 0.74% 0.81% 0.75%
====================================================================================================================================
Ratio of net investment income to
average net assets 0.20% 0.03% 0.31% 0.56% 0.94% 0.61%
====================================================================================================================================
Portfolio Turnover Rate 81.20% 193.23% 131.67% 150.09% 121.60% 164.05%
====================================================================================================================================
</TABLE>
(i) Amount was computed based on average shares outstanding during the period.
(ii) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
12
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--57.1% VALUE
------ -----
ADVERTISING--.6%
5,900 Omnicom Group Inc. .................. $ 525,469
-----------
AEROSPACE--1.8%
27,400 United Technologies Corporation ..... 1,613,175
-----------
AUTOMOTIVE--1.0%
23,400 Harley-Davidson, Inc. ............... 900,900
-----------
BIO-TECHNOLOGY--2.1%
26,100 Amgen Inc.* ......................... 1,833,525
-----------
BROADCASTING--.9%
10,300 Clear Channel Communications Inc.*+ . 772,500
-----------
CABLE--1.7%
10,000 Comcast Corp., Cl. A Special ........ 405,000
8,550 Cox Communications Inc., Cl. A* ..... 389,559
9,400 Time Warner Inc. .................... 714,400
-----------
1,508,959
-----------
COMMUNICATION EQUIPMENT--5.2%
24,400 Cisco Systems, Inc.* ................ 1,550,925
6,100 Corning Incorporated ................ 1,646,237
27,900 Ericsson (LM) Telephone Co.,
ADR, Cl. B ........................ 558,000
29,700 Motorola, Inc. ...................... 863,156
-----------
4,618,318
-----------
COMMUNICATIONS--1.7%
15,200 America Online Inc.* ................ 801,800
29,400 AT&T Corp. Liberty Media Group,
Series A* ......................... 712,950
-----------
1,514,750
-----------
COMPUTER RELATED & BUSINESS EQUIPMENT--4.3%
36,600 Dell Computer Corp.* ................ 1,804,838
11,300 Hewlett-Packard Company ............. 1,411,087
6,100 Sun Microsystems, Inc.* ............. 554,719
-----------
3,770,644
-----------
COMPUTER SERVICES--1.8%
6,600 CNET Networks, Inc.* ................ 162,112
19,400 eBay Inc.* .......................... 1,053,663
2,988 Yahoo Inc.*+ ........................ 370,139
-----------
1,585,914
-----------
COMPUTER SOFTWARE--3.5%
2,420 i2 Technologies, Inc.* .............. 252,323
7,000 Intuit Inc.* ........................ 289,625
28,300 Microsoft Corporation* .............. 2,264,000
3,200 Oracle Corporation* ................. 269,000
-----------
3,074,948
-----------
ENERGY & ENERGY SERVICES--2.1%
38,650 Halliburton Company ................. 1,823,797
-----------
FINANCIAL SERVICES--5.3%
4,500 American Express Company ............ 234,562
22,700 Citigroup Inc. ...................... 1,367,675
9,300 Kansas City Southern
Industries, Inc. .................. 824,794
2,800 Lehman Brothers Holdings Inc. ....... 264,775
2,100 Merrill Lynch &Co., Inc. ............ 241,500
9,200 Morgan Stanley Dean Witter & Co. .... 765,900
6,300 Paine Webber Group Inc. ............. 286,650
21,450 Schwab (Charles)Corporation (The) ... 721,256
-----------
4,707,112
-----------
FOOD CHAINS--2.2%
25,600 The Kroger Co. ...................... 564,800
30,800 Safeway Inc.* ....................... 1,389,850
-----------
1,954,650
-----------
HEALTH CARE SERVICES--1.1%
13,700 Cardinal Health, Inc. ............... 1,013,800
-----------
MANUFACTURING--.7%
14,700 Solectron Corp.* .................... 615,563
-----------
MEDICAL DEVICES--.6%
11,400 Medtronic, Inc. ..................... 567,862
-----------
OIL & GAS--1.7%
19,600 Exxon Mobil Corporation ............. 1,538,600
-----------
PHARMACEUTICALS--4.7%
27,888 American Home Products Corporation .. 1,638,420
2,600 Eli Lilly andCompany ................ 259,675
46,475 Pfizer Inc. ......................... 2,230,800
-----------
4,128,895
-----------
RETAILING--4.0%
10,800 Best Buy Co., Inc.* ................. 683,100
22,325 Home Depot, Inc. .................... 1,114,855
30,550 Wal-Mart Stores Inc. ................ 1,760,444
-----------
3,558,399
-----------
SEMICONDUCTOR CAPITAL EQUIPMENT--2.9%
19,400 Applied Materials Inc.* ............. 1,758,125
10,800 Teradyne, Inc.* ..................... 793,800
-----------
2,551,925
-----------
SEMICONDUCTORS--7.2%
10,200 Altera Corporation* ................. 1,039,763
11,300 Intel Corp. ......................... 1,510,669
11,700 Linear Technology Corporation ....... 748,069
8,700 Maxim Integrated Products, Inc.* .... 591,056
18,800 Micron Technology, Inc.* ............ 1,655,575
12,600 Texas Instruments, Incorporated ..... 865,462
-----------
6,410,594
-----------
TOTAL COMMON STOCKS
(COST $40,082,247) ................ 50,590,299
-----------
13
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT CORPORATE BONDS--13.6% VALUE
------ -----
AUTOMOTIVE--1.1%
$1,000,000 Daimler-Chrysler Financial Corp.,
6.95% 3/25/02 ..................... $ 990,740
-----------
COMMUNICATIONS--1.5%
800,000 TCI Communications Inc.,
8.00%, 8/01/05 .................... 826,088
500,000 Tele-Communications, Inc.,
7.25%, 8/01/05 .................... 498,115
-----------
1,324,203
-----------
ELECTRIC & GAS COMPANIES--.9%
400,000 Potomac Electric Power Co.,
7.00%, 1/15/24 .................... 350,000
500,000 Washington Gas Light Co.,
6.51%, 8/18/08 .................... 466,405
-----------
816,405
-----------
FINANCIAL SERVICES--7.8%
800,000 Associates Corp. North America,
5.75%, 11/01/03 ................... 761,520
BankAmerica Corp.,
100,000 7.125%, 5/12/05 ................... 98,412
800,000 7.20%, 4/15/06+ ................... 786,280
500,000 Block Financial Corp.,
8.50%, 4/15/07 .................... 507,820
260,000 Chase Manhattan Corporation
8.50%, 2/15/02 .................... 264,056
1,300,000 Cit Group Inc.,
7.125%, 10/15/04+ ................. 1,271,491
200,000 Citicorp,
7.125%, 6/01/03 ................... 199,044
800,000 Goldman Sachs Group,
6.65%, 5/15/09+ ................... 750,536
1,500,000 USL Capital Corp.,
6.50%, 12/01/03 ................... 1,453,170
800,000 Wells Fargo & Co.,
6.625%, 7/15/04 ................... 787,624
-----------
6,879,953
-----------
INSURANCE--1.1%
500,000 Beneficial Corp.,
6.575%, 12/16/02 .................. 482,125
500,000 Loews Corp.,
7.625%, 6/01/23 ................... 440,810
-----------
922,935
-----------
LEISURE & ENTERTAINMENT--.3%
300,000 Disney(Walt) Company,
6.375%, 3/30/01 ................... 298,725
-----------
RETAILING--.9%
800,000 Wal-Mart Stores Inc.,
6.55%, 8/10/04+ ................... 787,232
-----------
TOTAL CORPORATE BONDS
(COST $12,281,554) ................ 12,020,193
-----------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS--19.2%
Federal Home Loan Bank Corp.,
1,260,000 5.765%, 3/18/03 ................... 1,258,740
1,500,000 7.25%, 5/13/05 .................... 1,515,000
250,000 8.16%, 9/08/14 .................... 244,305
Federal Home Loan Mortgage Corp.,
800,000 6.00%, 6/23/04 .................... 767,504
800,000 5.75%, 4/15/08 .................... 732,872
600,000 7.08%, 3/17/14 .................... 551,904
Federal National Mortgage Assoc.,
1,000,000 7.125%, 2/15/05 ................... 1,003,750
500,000 6.96%, 4/02/07 .................... 494,530
633,000 7.00%, 3/04/13 .................... 585,227
400,000 6.75%, 2/04/28 .................... 345,376
U.S. Treasury Notes,
800,000 6.125%, 12/31/01 .................. 795,712
1,000,000 6.50%, 3/31/02 .................... 1,000,470
1,500,000 6.375%, 4/30/02 ................... 1,497,885
800,000 6.25%, 2/15/03 .................... 797,248
800,000 6.00%, 8/15/04 .................... 792,376
1,500,000 6.50%, 5/15/05 .................... 1,515,900
800,000 6.50%, 10/15/06 ................... 809,376
1,500,000 6.125%, 8/15/07 ................... 1,490,400
800,000 5.625%, 5/15/08 ................... 772,000
-----------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(COST $17,093,013) ................ 16,970,575
-----------
14
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--9.9% VALUE
------ -----
SHORT-TERM CORPORATE NOTES--9.0%
$4,000,000 BAUS Funding LLC,
6.72%, 7/14/00 .................... $ 3,990,293
4,000,000 Transamerica Asset Funding,
6.70%, 7/13/00(a) ................. 3,991,067
-----------
TOTAL SHORT-TERM CORPORATE NOTES
(COST $7,981,360) ................. 7,981,360
-----------
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--.9%
Securities Held Under Repurchase
Agreements, 6.55%-7.00%, 7/03/00, with
Bear, Stearns & Co. Inc., dtd 6/30/00,
repurchase price $828,515, collateralized
by U.S. Treasury Strips
(Total par value $2,330,000 due
11/15/16) ......................... 828,059
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $8,809,419) ................. 8,809,419
-----------
TOTAL INVESTMENTS (COST $78,266,233) (b). 99.8% 88,390,486
Other assets in excess of liabilities ... .2 203,485
----- -----------
NET ASSETS .............................. 100.0% $88,593,971
===== ===========
--------------------------------------------------------------------------------
* 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, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $78,266,233, amounted to $10,124,253
which consisted of aggregate gross unrealized appreciation of $11,750,029
and aggregate gross unrealized depreciation of $1,625,776.
See Notes to Financial Statements.
15
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ------------------------------------------------------------------
JUNE 30, 2000(ii) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.57 $ 12.98 $ 10.76 $ 9.24 $ 13.64 $10.80
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 0.08 0.15 0.19 0.17 0.21(i) 0.33(i)
Net realized and unrealized gain
(loss) on investments 0.61 3.45 3.02 1.63 1.01 2.73
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.69 3.60 3.21 1.80 1.22 3.06
------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income (0.13) (0.17) (0.18) (0.12) (0.73) (0.22)
Distributions from net realized gains (1.26) (0.84) (0.81) (0.16) (4.89) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.39) (1.01) (0.99) (0.28) (5.62) (0.22)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.87 $ 15.57 $ 12.98 $ 10.76 $ 9.24 $13.64
====================================================================================================================================
Total Return 5.01% 29.21% 31.51% 19.82% 10.17% 28.62%
====================================================================================================================================
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $88,594 $56,327 $28,208 $16,614 $10,486 $3,671
====================================================================================================================================
Ratio of expenses to average net assets 0.90% 0.93% 0.92% 1.01% 1.14% 1.00%
====================================================================================================================================
Ratio of net investment income to
average net assets 2.12% 1.66% 2.09% 2.14% 2.06% 2.49%
====================================================================================================================================
Portfolio Turnover Rate 38.16% 118.74% 94.64% 105.01% 68.66% 113.02%
====================================================================================================================================
</TABLE>
(i) Amount was computed based on average shares outstanding during the period.
(ii) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
16
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--88.4% VALUE
------ -----
ADVERTISING--1.9%
395,000 Young & Rubicam Inc. ................ $ 22,589,063
------------
AUTOMOTIVE--2.1%
648,500 Harley-Davidson, Inc. ............... 24,967,250
------------
BROADCASTING--.5%
57,000 Univision Communications Inc.
Cl. A* ............................ 5,899,500
------------
BUSINESS SERVICES--5.4%
86,500 Art Technology Group, Inc.* ......... 8,731,094
154,400 CSG Systems International Inc.* ..... 8,656,050
70,000 Diamond Technology Partners
Incorporated Cl. A* ............... 6,160,000
810,250 Fiserv Inc.* ........................ 35,043,313
114,600 Kana Communications Inc.* ........... 7,090,875
------------
65,681,332
------------
COMMUNICATION EQUIPMENT--1.4%
229,300 Efficient Networks, Inc.* ........... 16,867,881
------------
COMMUNICATIONS--.6%
294,600 Broadwing Inc.*+ .................... 7,641,187
------------
COMPUTER SERVICES--5.7%
223,400 Amdocs Limited* ..................... 17,145,950
762,300 CNET Networks, Inc.* ................ 18,723,994
510,000 eBay Inc.* .......................... 27,699,375
148,600 Priceline.com* ...................... 5,644,478
------------
69,213,797
------------
COMPUTER SOFTWARE--3.2%
43,600 Ariba, Inc.* ........................ 4,274,843
138,700 Commerce One, Inc.* ................. 6,293,512
44,330 i2 Technologies, Inc.* .............. 4,622,095
595,200 Intuit Inc.* ........................ 24,626,400
------------
39,816,850
------------
ENERGY & ENERGY SERVICES--10.5%
698,700 BJ Services Company* ................ 43,668,750
471,400 Cooper Cameron Corporation* ......... 31,112,400
1,011,400 Nabors Industries, Inc.* ............ 42,036,312
325,000 Santa Fe International Corporation .. 11,354,688
------------
128,172,150
------------
FINANCIAL SERVICES--6.4%
134,750 Investment Technology Group, Inc.* .. 5,322,625
454,600 Kansas City Southern
Industries, Inc. .................. 40,317,337
59,400 Lehman Brothers Holdings Inc. ....... 5,617,013
593,250 Paine Webber Group Inc. ............. 26,992,875
------------
78,249,850
------------
FOODS & BEVERAGES--3.8%
1,211,400 Starbucks Corporation* .............. 46,260,338
------------
HEALTH CARE SERVICES--.7%
252,900 Amerisource Health Corporation
Cl. A* ............................ 7,839,900
------------
INDUSTRIAL EQUIPMENT--4.1%
130,100 SPX Corporation* .................... 15,733,969
272,100 Waters Corporation* ................. 33,961,481
------------
49,695,450
------------
LEISURE & ENTERTAINMENT--.5%
215,700 Viad Corp. .......................... 5,877,825
------------
MANUFACTURING--4.8%
392,100 Dover Corporation ................... 15,904,556
64,700 Flextronics International Ltd.* ..... 4,444,081
157,050 Jabil Circuit, Inc.* ................ 7,793,606
238,150 Millipore Corporation ............... 17,950,556
141,120 Sanmina Corporation*+ ............... 12,065,760
------------
58,158,559
------------
OIL & GAS--1.7%
235,700 Devon Energy Corporation ............ 13,243,394
219,400 EOG Resources Inc. .................. 7,349,900
------------
20,593,294
------------
PAPER PACKAGING & FOREST PRODUCTS--1.0%
233,900 Sealed Air Corporation* ............. 12,250,513
------------
PHARMACEUTICALS--11.3%
104,100 Allergan, Inc. ...................... 7,755,450
784,850 ALZA Corporation* ................... 46,404,256
515,700 Forest Laboratories, Inc.* .......... 52,085,700
708,150 King Pharmaceuticals Inc.* .......... 31,070,081
------------
137,315,487
------------
RESTAURANTS & LODGING--3.1%
1,294,350 Outback Steakhouse, Inc.* ........... 37,859,738
------------
RETAILING--3.3%
247,600 Bed Bath & Beyond Inc.* ............. 8,975,500
498,200 Best Buy Co., Inc.* ................. 31,511,150
------------
40,486,650
------------
SEMICONDUCTOR CAPITAL EQUIPMENT--4.6%
243,600 ASM Lithography Holding NV* ......... 10,748,850
248,200 Atmi, Inc.* ......................... 11,541,300
455,206 Teradyne, Inc.* ..................... 33,457,641
------------
55,747,791
------------
17
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
SHARES COMMON STOCKS--(CONT'D) VALUE
------ -----
SEMICONDUCTORS--11.8%
281,400 Altera Corporation* ................. $ 28,685,213
111,900 Amkor Technology, Inc.* ............. 3,951,469
488,700 Linear Technology Corporation ....... 31,246,256
438,100 Maxim Integrated Products, Inc.* .... 29,763,419
715,950 Microchip Technology Incorporated* .. 41,715,274
217,500 Vishay Intertechnology, Inc.* ....... 8,251,406
--------------
143,613,037
--------------
TOTAL COMMON STOCKS
(COST $847,431,945) ............... 1,074,797,442
--------------
Principal
Amount Short-Term Investments--12.8%
------
SHORT-TERM CORPORATE NOTES--10.6%
$40,000,000 Baus Funding LLC,
6.64%, 7/14/2000 .................. 39,904,089
40,000,000 Countrywide Home Loans, Inc.,
6.78%, 7/14/2000 .................. 39,902,067
50,000,000 Ford Motor Credit Company,
6.55%, 7/11/2000 .................. 49,909,028
--------------
TOTAL SHORT-TERM CORPORATE NOTES
(COST $129,715,184) ............... 129,715,184
--------------
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--2.2%
Securities Held Under Repurchase
Agreements, 6.55%-7.00%, 7/03/00,
with Bear, Stearns & Co. Inc.,
dtd 6/30/00,repurchase price
$26,484,973; collateralized by
U.S. Treasury Strips (Total par
value $74,295,000 due 11/15/16) .. 26,472,486
--------------
TOTAL SHORT-TERM INVESTMENTS
(COST $156,187,670) ............... 156,187,670
--------------
TOTAL INVESTMENTS
(COST $1,003,619,615) (a) 101.2% 1,230,985,112
Liabilities in Excess of Other Assets (1.2) (14,572,677)
----- --------------
NET ASSETS 100.0% $1,216,412,435
===== ==============
--------------------------------------------------------------------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At June 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,003,619,615, amounted to
$227,365,497 which consisted of aggregate gross unrealized appreciation of
$276,901,922 and aggregate gross unrealized depreciation of $49,536,425.
See Notes to Financial Statements.
18
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ------------------------------------------------------------------
JUNE 30, 2000 (ii) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 32.23 $ 28.87 $ 24.18 $ 21.35 $ 19.44 $ 13.46
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (0.03)(i) (0.05) 0.00(i) (0.04) 0.03 (0.03)
Net realized and unrealized gain
(loss) on investments 4.32 8.00 6.95 3.20 2.29 6.01
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 4.29 7.95 6.95 3.16 2.32 5.98
------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income -- -- -- (0.01) -- --
Distributions from net realized gains (4.37) (4.59) (2.26) (0.32) (0.41) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (4.37) (4.59) (2.26) (0.33) (0.41) --
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.15 $ 32.23 $ 28.87 $ 24.18 $ 21.35 $ 19.44
====================================================================================================================================
Total Return 14.64% 31.85% 30.30% 15.01% 11.90% 44.45%
====================================================================================================================================
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) $1,216,412 $931,397 $689,571 $444,967 $394,847 $185,349
====================================================================================================================================
Ratio of expenses to average net assets 0.85% 0.85% 0.84% 0.84% 0.84% 0.90%
====================================================================================================================================
Ratio of net investment income (loss) to
average net assets (0.17%) (0.21%) 0.00% (0.15%) 0.08% (0.25%)
====================================================================================================================================
Portfolio Turnover Rate 62.40% 162.30% 152.21% 151.98% 90.97% 104.74%
====================================================================================================================================
</TABLE>
(i) Amount was computed based on average shares outstanding during the period.
(ii) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
19
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares Common Stocks--91.7% Value
------ -----
ADVERTISING--.9%
53,000 Omnicom Group Inc. .................. $ 4,720,312
------------
BIO-TECHNOLOGY--3.4%
200,300 Amgen Inc.* ......................... 14,071,074
30,000 Sepracor Inc.*+ ..................... 3,618,750
------------
17,689,824
------------
CABLE--3.2%
54,000 Cablevision Systems Corporation,
Cl. A*+ ........................... 3,665,250
206,000 Comcast Corp., Cl. A Special ........ 8,343,000
108,000 Cox Communications Inc., Cl. A* ..... 4,920,750
------------
16,929,000
------------
COMMUNICATION EQUIPMENT--17.1%
40,000 Brocade Communications
Systems Inc.* ..................... 7,339,374
243,000 Cisco Systems, Inc.* ................ 15,445,687
28,000 Corning Incorporated ................ 7,556,500
35,000 Efficient Networks, Inc.* ........... 2,574,687
692,400 Ericsson (LM) Telephone Co.,
ADR, Cl. B ........................ 13,848,000
148,500 JDS Uniphase Corporation* ........... 17,801,437
246,000 Motorola, Inc. ...................... 7,149,374
45,000 PMC-Sierra, Inc.* ................... 7,995,937
35,200 SDL Inc.* ........................... 10,038,600
------------
89,749,596
------------
COMMUNICATIONS--6.0%
225,000 America Online Inc.* ................ 11,868,750
163,600 AT&T Corp. Liberty Media Group,
Series A* ......................... 3,967,300
120,000 McLeodUSA Incorporated, Cl. A* ...... 2,482,500
215,700 Sprint Corp. PCS Group*+ ............ 12,834,150
------------
31,152,700
------------
COMPUTER RELATED & BUSINESS EQUIPMENT--4.4%
31,789 Agilent Technologies, Inc.* ......... 2,344,439
65,000 Network Appliance, Inc.* ............ 5,232,500
171,400 Sun Microsystems, Inc.* ............. 15,586,688
------------
23,163,627
------------
COMPUTER SERVICES--6.6%
113,000 Amdocs Limited* ..................... 8,672,750
82,600 CNET Networks, Inc.* ................ 2,028,863
305,400 eBay Inc.* .......................... 16,587,038
60,580 Yahoo Inc.*+ ........................ 7,504,348
------------
34,792,999
------------
COMPUTER SOFTWARE--14.2%
80,000 Ariba, Inc.* ........................ 7,843,750
129,000 BEA Systems, Inc.* .................. 6,377,437
32,800 Entrust Technologies Inc.* .......... 2,714,200
57,900 i2 Technologies, Inc.* .............. 6,036,980
56,700 Intuit Inc.* ........................ 2,345,963
37,000 ISS Group, Inc.* .................... 3,653,172
38,900 Mercury Interactive Corporation* .... 3,763,575
140,800 Microsoft Corporation* .............. 11,264,000
135,000 Oracle Corporation* ................. 11,348,438
67,900 Phone.com Inc.* ..................... 4,421,988
55,000 VERITAS Software Corp.* ............. 6,215,859
112,300 Vignette Corporation*+ .............. 5,841,355
40,000 Vitria Technology, Inc.* ............ 2,445,000
------------
74,271,717
------------
ENERGY & ENERGY SERVICES--2.4%
37,100 BJ Services Company* ................ 2,318,750
216,450 Halliburton Company ................. 10,213,734
------------
12,532,484
------------
FINANCIAL SERVICES--2.7%
234,750 Citigroup Inc. ...................... 14,143,688
------------
FOOD CHAINS--2.1%
239,600 Safeway Inc.* ....................... 10,811,950
------------
INSURANCE--1.2%
56,737 American International Group Inc. ... 6,666,598
------------
MANUFACTURING--1.0%
129,100 Solectron Corp.* .................... 5,406,062
------------
MEDICAL DEVICES--.8%
88,200 Medtronic, Inc. ..................... 4,393,463
------------
PHARMACEUTICALS--5.1%
221,400 American Home Products Corporation .. 13,007,250
24,900 Eli Lilly and Company ............... 2,486,888
231,688 Pfizer Inc. ......................... 11,121,000
------------
26,615,138
------------
RETAILING--4.4%
245,650 Home Depot, Inc. .................... 12,267,147
191,900 Wal-Mart Stores Inc. ................ 11,058,238
------------
23,325,385
------------
20
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
SCHEDULE OF INVESTMENTS--JUNE 30, 2000 (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
SHARES VALUE
------ -----
SEMICONDUCTOR CAPITAL EQUIPMENT--5.3%
170,000 Applied Materials Inc.* ............. $ 15,406,250
144,000 ASM Lithography Holding NV* ......... 6,354,000
79,450 Teradyne, Inc.* ..................... 5,839,575
------------
27,599,825
------------
SEMICONDUCTORS--10.9%
108,000 Altera Corporation* ................. 11,009,250
52,600 Broadcom Corp., Cl. A* .............. 11,516,112
96,000 Linear Technology Corporation ....... 6,138,000
60,000 Micron Technology, Inc.* ............ 5,283,750
184,000 Texas Instruments, Incorporated ..... 12,638,500
103,000 Vitesse Semiconductor Corp.* ........ 7,576,938
35,000 Xilinx, Inc.* ....................... 2,889,688
------------
57,052,238
------------
TOTAL COMMON STOCKS
(COST $403,396,299) ............... 481,016,606
------------
PREFERRED STOCK--1.5%
COMMUNICATIONS
152,500 Nokia Corporation, ADR
(COST $7,614,249) ................. 7,615,469
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--6.6%
------
SHORT-TERM CORPORATE NOTES--3.8%
$20,000,000 Transamerica Asset Funding,
6.70%, 7/13/00(a)
(COST $19,955,333) ................ 19,955,333
------------
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--2.8%
Securities Held Under Repurchase
Agreements, 6.55%-7.00%, 7/03/00,
with Bear, Stearns & Co. Inc.,
dtd 6/30/00, repurchase price
$14,758,169; collateralized by
U.S. Treasury Strips
(Total par value $41,615,000 due
11/15/16-5/15/17) ................. 14,750,115
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $34,705,448) (b) ............ 34,705,448
------------
TOTAL INVESTMENTS
(COST $445,715,996) (b) ............. 99.8% 523,337,523
Other Assets in Excess of Liabilities . .2 1,202,569
----- ------------
NET ASSETS ............................ 100.0% $524,540,092
===== ============
--------------------------------------------------------------------------------
* 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, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $445,715,996, amounted to
$77,621,527 which consisted of aggregate gross unrealized appreciation of
$99,229,755 and aggregate gross unrealized depreciation of $21,608,228.
See Notes to Financial Statements.
21
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
FROM
JANUARY 25, 1995
(COMMENCEMENT OF
SIX MONTHS YEAR ENDED DECEMBER 31, OPERATIONS) TO
ENDED ----------------------------------------------------- DECEMBER 31,
JUNE 30, 2000(i)(ii) 1999 1998 1997 1996 1995(ii)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 57.97 $ 34.90 $ 23.17 $ 19.36 $ 17.43 $ 10.00
------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.06)(iii) (0.09) (0.05) (0.03) (0.03)(iii) (0.03)
Net realized and unrealized gain (loss)
on investments (2.47) 25.93 12.99 3.84 2.14 7.46
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (2.53) 25.84 12.94 3.81 2.11 7.43
Distributions from net realized gains (5.38) (2.77) (1.21) -- (0.18) --
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 50.06 $ 57.97 $ 34.90 $ 23.17 $ 19.36 $ 17.43
====================================================================================================================================
Total Return (3.01%) 78.06% 57.83% 19.68% 12.04% 74.30%
====================================================================================================================================
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) $ 524,540 $ 362,500 $ 101,710 $ 53,488 $ 34,925 $ 5,497
====================================================================================================================================
Ratio of expenses excluding interest to
average net assets 0.91% 0.92% 0.93% 0.96% 1.06% 1.50%
====================================================================================================================================
Ratio of expenses including interest to
average net assets 0.91% 0.93% 0.96% 1.00% 1.09% 1.56%
====================================================================================================================================
Decrease reflected in above expense ratios
due to expense reimbursements -- -- -- -- -- 2.36%
====================================================================================================================================
Ratio of net investment loss to
average net assets (0.21%) (0.49%) (0.27%) (0.17%) (0.15%) (0.71%)
====================================================================================================================================
Portfolio Turnover Rate 56.26% 155.74% 143.59% 164.27% 102.10% 178.23%
====================================================================================================================================
Amount of debt outstanding
at end of period -- -- -- -- -- --
====================================================================================================================================
Average amount of debt outstanding
during the period -- $ 266,584 $ 246,101 $ 201,644 $ 76,079 $ 8,122
====================================================================================================================================
Average daily number of shares
outstanding during the period -- 4,395,246 2,480,478 2,135,458 1,107,187 75,460
====================================================================================================================================
Average amount of debt per share
during the period -- $ 0.06 $ 0.10 $ 0.09 $ 0.07 $ 0.11
====================================================================================================================================
</TABLE>
(i) Unaudited.
(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.
22
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, 2000
====================================================================================================================================
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 accompany-
ing schedules of investments $3,669,480,486 $870,831,373 $131,915,064 $88,390,486 $1,230,985,112 $523,337,523
Receivable for investment securities
sold 108,652,026 48,207,185 2,083,734 767,296 -- 3,241,077
Receivable for shares of beneficial
interest sold 6,340,144 4,522,536 368,242 254,391 5,765,006 1,386,610
Interest and dividends receivable 406,646 17,252 25,478 477,629 150,816 36,444
Other assets 36,717 -- 21,180 -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total Assets 3,784,916,019 923,578,346 134,413,698 89,889,802 1,236,900,934 528,001,654
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities
purchased 29,199,229 13,946,661 662,850 865,426 15,329,625 2,901,350
Payable for securities loaned 7,193,346 2,344,587 -- 132,761 1,005,126 74,952
Payable for shares of beneficial
interest redeemed 864,661 4,618,327 6,907 232,994 3,301,442 91,162
Accrued investment management fees 2,279,967 589,387 65,865 52,321 788,665 356,120
Accrued expenses 231,295 54,842 16,152 12,329 63,641 37,978
-----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 39,768,498 21,553,804 751,774 1,295,831 20,488,499 3,461,562
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $3,745,147,521 $902,024,542 $133,661,924 $88,593,971 $1,216,412,435 $524,540,092
===================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $2,824,151,975 $715,523,059 $104,646,083 $76,336,274 $ 888,093,042 $437,576,486
Undistributed net investment
income (accumulated loss) 875,269 (11,628,745) 115,144 750,016 (3,476,779) (1,702,976)
Undistributed net realized gain 100,873,364 47,346,570 10,407,804 1,383,428 104,430,675 11,045,055
Net unrealized appreciation 819,246,913 150,783,658 18,492,893 10,124,253 227,365,497 77,621,527
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $3,745,147,521 $902,024,542 $133,661,924 $88,593,971 $1,216,412,435 $524,540,092
===================================================================================================================================
Shares of beneficial interest
outstanding--Note 6 65,246,662 27,957,704 9,437,936 5,959,848 37,830,966 10,478,244
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE $ 57.40 $ 32.26 $ 14.16 $ 14.87 $ 32.15 $ 50.06
===================================================================================================================================
*Identified cost $2,850,233,573 $720,047,715 $113,422,171 $78,266,233 $1,003,619,615 $445,715,996
===================================================================================================================================
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30, 2000
===================================================================================================================================
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 $ 8,469,058 $ 3,340,643 $ 296,080 $ 992,054 $ 3,216,028 $ 1,224,708
Dividends 7,198,406 113,351 208,854 91,478 482,583 384,238
-----------------------------------------------------------------------------------------------------------------------------------
Total Income 15,667,464 3,453,994 504,934 1,083,532 3,698,611 1,608,946
-----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Management fees-- Note 3(a) 13,297,808 3,379,955 345,321 268,559 4,376,962 1,958,731
Custodian fees 375,115 96,630 14,274 19,214 127,825 57,480
Transfer agent fees 177,304 39,764 5,525 3,581 54,712 23,043
Professional fees 34,294 8,753 2,487 2,334 11,823 5,589
Trustees' fees 1,258 1,258 1,258 1,258 1,258 1,258
Miscellaneous 207,724 71,868 26,506 28,928 76,764 45,836
-----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 14,093,503 3,598,228 395,371 323,874 4,649,344 2,091,937
-----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 1,573,961 (144,234) 109,563 759,658 (950,733) (482,991)
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments 119,053,878 46,825,893 10,819,178 1,552,113 109,189,276 11,202,410
Net change in unrealized appreciation
(depreciation) on investments (4,759,637) (52,152,775) (4,991,175) 1,191,434 33,195,495 (32,834,129)
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 114,294,241 (5,326,882) 5,828,003 2,743,547 142,384,771 (21,631,719)
-----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS $115,868,202 $(5,471,116) $5,937,566 $3,503,205 $141,434,038 $(22,114,710)
===================================================================================================================================
</TABLE>
See Notes to Financial Statements.
24
<PAGE>
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2000
================================================================================
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH
Cash flows from operating activities:
Interest received $ 1,222,866
Dividends received 370,874
Operating expenses paid (1,966,044)
Purchase of short-term securities, net (14,333,765)
Purchase of portfolio securities (416,781,813)
Proceeds from disposition of portfolio securities 248,176,917
Other 6,226
--------------------------------------------------------------------------------
Net cash used in operating activities (183,304,739)
--------------------------------------------------------------------------------
Cash flows from financing activities:
Dividends paid (47,473,711)
Proceeds from shares sold and dividends reinvested 303,353,893
Payments on shares redeemed (72,650,395)
Increase in cash collateral received on securities loaned 74,952
--------------------------------------------------------------------------------
Net cash provided by financing activities 183,304,739
--------------------------------------------------------------------------------
Net increase in cash --
Cash--beginning of period --
--------------------------------------------------------------------------------
Cash--end of period $ --
================================================================================
RECONCILIATION OF NET INCREASE IN NET ASSETS TO NET CASH
USED IN OPERATING ACTIVITIES:
Net decrease in net assets resulting from operations $ (22,114,710)
Increase in investments (190,495,062)
Decrease in receivable for investments sold 8,251,835
Decrease in payable for securities purchased (695,434)
Increase in interest and dividends receivable (15,206)
Net realized gain (11,202,410)
Net decrease in unrealized appreciation 32,834,129
Increase in accrued expenses 125,893
Net decrease in other assets 6,226
--------------------------------------------------------------------------------
Net cash used in operating activities $ (183,304,739)
================================================================================
See Notes to Financial Statements.
25
<PAGE>
THE ALGER AMERICAN FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30, 2000
====================================================================================================================================
AMERICAN
AMERICAN INCOME AMERICAN AMERICAN
AMERICAN SMALL AND AMERICAN MIDCAP LEVERAGED
GROWTH CAPITALIZATION GROWTH BALANCED GROWTH ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ 1,573,961 $ (144,234) $ 109,563 $ 759,658 $ (950,733) $ (482,991)
Net realized gain on investments 119,053,878 46,825,893 10,819,178 1,552,113 109,189,276 11,202,410
Net change in unrealized appreciation
(depreciation) on investments (4,759,637) (52,152,775) (4,991,175) 1,191,434 33,195,495 (32,834,129)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 115,868,202 (5,471,116) 5,937,566 3,503,205 141,434,038 (22,114,710)
Dividends to shareholders:
Net investment income -- -- (33,852) (665,329) -- --
Net realized gains (470,873,550) (293,100,254) (26,513,143) (6,345,825) (135,859,825) (47,473,711)
Net increase from
shares of beneficial interest
transactions--Note 6 712,626,962 525,731,725 63,021,473 35,775,412 279,440,923 231,628,768
------------------------------------------------------------------------------------------------------------------------------------
Total increase 357,621,614 227,160,355 42,412,044 32,267,463 285,015,136 162,040,347
Net Assets
Beginning of period 3,387,525,907 674,864,187 91,249,880 56,326,508 931,397,299 362,499,745
------------------------------------------------------------------------------------------------------------------------------------
End of period $3,745,147,521 $902,024,542 $133,661,924 $88,593,971 $1,216,412,435 $524,540,092
====================================================================================================================================
Undistributed net investment income
(accumulated loss) $ 875,269 $(11,628,745) $ 115,144 $ 750,016 $ (3,476,779) $ (1,702,976)
====================================================================================================================================
</TABLE>
THE ALGER AMERICAN FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1999
====================================================================================================================================
AMERICAN
AMERICAN INCOME AMERICAN AMERICAN
AMERICAN SMALL AND AMERICAN MIDCAP LEVERAGED
GROWTH CAPITALIZATION GROWTH BALANCED GROWTH ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ (696,058) $ (2,078,604) $ 30,982 $ 665,438 $ (1,554,566) $ (921,348)
Net realized gain on investments 460,411,703 293,080,766 26,152,817 6,227,204 131,041,471 47,112,154
Net change in unrealized appreciation
(depreciation) on investments 307,222,865 (71,914,674) 4,721,973 3,870,767 88,777,695 80,489,142
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 766,938,510 219,087,488 30,905,772 10,763,409 218,264,600 126,679,948
Dividends to shareholders:
Net investment income (3,390,608) -- (184,311) (431,942) -- --
Net realized gains (231,505,570) (121,889,784) (5,479,715) (2,190,935) (109,670,539) (10,215,601)
Net increase (decrease) from
shares of beneficial interest
transactions--Note 6 949,764,622 (638,917,257) (11,917,487) 19,977,656 133,231,781 144,325,873
------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) 1,481,806,954 (541,719,553) 13,324,259 28,118,188 241,825,842 260,790,220
Net Assets
Beginning of year 1,905,718,953 1,216,583,740 77,925,621 28,208,320 689,571,457 101,709,525
------------------------------------------------------------------------------------------------------------------------------------
End of year $3,387,525,907 $674,864,187 $ 91,249,880 $56,326,508 $ 931,397,299 $362,499,745
====================================================================================================================================
Undistributed net investment income
(accumulated loss) $ (698,692) $(11,484,511) $ 39,433 $ 655,687 $ (2,526,046) $ (1,219,985)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
26
<PAGE>
THE ALGER AMERICAN FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2000
================================================================================
NOTE 1--GENERAL:
The Alger American 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 six series 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"). The American Growth
Portfolio, American Small Capitalization Portfolio, American MidCap Growth
Portfolio and American Leveraged AllCap Portfolio invest primarily in equity
securities and each has an investment objective of long-term capital
appreciation. The American Income and Growth Portfolio's primary investment
objective is to provide a high level of dividend income by investing primarily
in dividend-paying equity securities; capital appreciation is a secondary
objective. The American 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. Shares of the Portfolios are
available and are being marketed exclusively as a pooled funding vehicle for
qualified retirement plans and 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 on each day
the New York Stock Exchange ("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 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 repurchase agreements with
approved institutions, primarily U.S. Government securities dealers. 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, 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, as 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 June 30, 2000, the value of securities loaned and
collateral received thereon were as follows:
VALUE OF
SECURITIES VALUE OF
LOANED COLLATERAL
----------- -----------
American Growth Portfolio ...................... $ 7,193,366 $ 7,193,346
American Small Capitalization
Portfolio .................................... 47,156,046 51,927,498
American Income and Growth
Portfolio -- --
American Balanced Portfolio .................... 1,646,555 1,677,381
American MidCap Growth
Portfolio .................................... 2,755,937 2,791,434
American Leveraged AllCap
Portfolio .................................... 12,421,131 12,668,684
(e) DIVIDENDS TO SHAREHOLDERS: Dividends and distributions payable to
shareholders are recorded by the Fund on the ex-dividend date.
Dividends from net investment income are declared and paid annually.
27
<PAGE>
THE ALGER AMERICAN FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT'D)
JUNE 30, 2000
================================================================================
Distributions from net realized gains, offset by any loss carryforward, 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, including net realized
capital gains, 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.
(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.
(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 (the "Agreement") 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
Each Agreement further provides 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.
(b) BROKERAGE COMMISSIONS: During the six months ended June 30, 2000, 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,
Incorporated ("Alger Inc.") $2,671,346, $417,579, $118,005, $41,333, $751,996
and $187,436, 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"), an affiliate of Alger
Management, whereby Services will act as transfer agent for the Fund.
(d) Certain trustees and officers of the Fund are directors and officers of
Alger Management, Alger Inc. and Services.
NOTE 4--SECURITIES TRANSACTIONS:
Purchases and sales of securities, other than short-term securities, for the six
months ended June 30, 2000, were as follows:
PURCHASES SALES
--------- -----
American Growth Portfolio ................. $1,713,431,394 $1,479,982,852
American Small Capitalization
Portfolio ................................. 686,804,343 495,394,290
American Income and Growth
Portfolio ................................. 121,352,310 83,200,554
American Balanced Portfolio ............... 48,595,605 23,242,510
American MidCap Growth
Portfolio ................................. 695,335,516 626,012,078
American Leveraged AllCap
Portfolio ................................. 416,086,379 239,925,337
NOTE 5--LINE OF CREDIT:
The American Leveraged AllCap Portfolio has a line of credit with its custodian
bank whereby it may borrow up to one-third of the value 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. To the extent American Leveraged AllCap
Portfolio borrows under this line, it must pledge securities with a total value
of at least twice the amount borrowed. For the six months ended June 30, 2000,
the American Leveraged AllCap Portfolio had no such borrowings.
NOTE 6--SHARE CAPITAL:
The Fund has an unlimited number of authorized shares of beneficial interest of
$.001 par value.
28
<PAGE>
THE ALGER AMERICAN FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT'D)
JUNE 30, 2000
================================================================================
During the six months ended June 30, 2000, transactions of shares of beneficial
interest were as follows:
SHARES AMOUNT
------ ------
American Growth
Portfolio:
Shares sold .................. 13,286,211 $ 852,518,702
Dividends reinvested ......... 8,950,218 470,873,550
---------- --------------
22,236,429 1,323,392,252
Shares redeemed .............. (9,607,553) (610,765,290)
---------- --------------
Net increase ............... 12,628,876 $ 712,626,962
========== ==============
SHARES AMOUNT
------ ------
American Small Capitalization
Portfolio:
Shares sold .................. 20,348,545 $ 976,878,033
Dividends reinvested ......... 11,014,650 293,100,254
---------- --------------
31,363,195 1,269,978,287
Shares redeemed .............. (15,641,587) (744,246,562)
---------- --------------
Net increase ............... 15,721,608 $ 525,731,725
========== ==============
SHARES AMOUNT
------ ------
American Income and Growth
Portfolio:
Shares sold .................. 2,439,607 $ 41,416,532
Dividends reinvested ......... 2,091,962 26,546,995
---------- --------------
4,531,569 67,963,527
Shares redeemed .............. (284,233) (4,942,054)
---------- --------------
Net increase ............... 4,247,336 $ 63,021,473
========== ==============
SHARES AMOUNT
------ ------
American Balanced
Portfolio:
Shares sold .................. 2,134,624 $ 33,364,691
Dividends reinvested ......... 501,510 7,011,154
---------- --------------
2,636,134 40,375,845
Shares redeemed .............. (294,755) (4,600,433)
---------- --------------
Net increase ............... 2,341,379 $ 35,775,412
========== ==============
SHARES AMOUNT
------ ------
American MidCap Growth
Portfolio:
Shares sold .................. 27,049,582 $ 933,260,090
Dividends reinvested ......... 4,638,434 135,859,825
---------- --------------
31,688,016 1,069,119,915
Shares redeemed .............. (22,751,368) (789,678,992)
---------- --------------
Net increase ............... 8,936,648 $ 279,440,923
========== ==============
SHARES AMOUNT
------ ------
American Leveraged AllCap
Portfolio:
Shares sold .................. 4,388,223 $ 256,171,469
Dividends reinvested ......... 1,085,858 47,473,711
---------- --------------
5,474,081 303,645,180
Shares redeemed .............. (1,248,882) (72,016,412)
---------- --------------
Net increase ............... 4,225,199 $ 231,628,768
========== ==============
During the year ended December 31, 1999, transactions of shares of beneficial
interest were as follows:
SHARES AMOUNT
------ ------
American Growth
Portfolio:
Shares sold .................. 46,703,529 $2,602,462,915
Dividends reinvested ......... 4,531,199 234,852,067
---------- --------------
51,234,728 2,837,314,982
Shares redeemed .............. (34,425,887) (1,887,550,360)
---------- --------------
Net increase ............... 16,808,841 $ 949,764,622
========== ==============
SHARES AMOUNT
------ ------
American Small Capitalization
Portfolio:
Shares sold .................. 31,804,437 $1,387,733,383
Dividends reinvested ......... 3,077,857 121,883,144
---------- --------------
34,882,294 1,509,616,527
Shares redeemed .............. (50,315,702) (2,148,533,784)
---------- --------------
Net decrease ............... (15,433,408) $ (638,917,257)
========== ==============
SHARES AMOUNT
------ ------
American Income and Growth
Portfolio:
Shares sold .................. 4,609,317 $ 62,276,927
Dividends reinvested ......... 447,209 5,661,661
---------- --------------
5,056,526 67,938,588
Shares redeemed .............. (5,803,323) (79,856,075)
---------- --------------
Net decrease ............... (746,797) $ (11,917,487)
========== ==============
SHARES AMOUNT
------ ------
American Balanced
Portfolio:
Shares sold .................. 1,671,901 $ 23,274,857
Dividends reinvested ......... 200,644 2,620,408
---------- --------------
1,872,545 25,895,265
Shares redeemed .............. (427,507) (5,917,609)
---------- --------------
Net increase ............... 1,445,038 $ 19,977,656
========== ==============
SHARES AMOUNT
------ ------
American MidCap Growth
Portfolio:
Shares sold .................. 41,675,397 $1,149,683,205
Dividends reinvested ......... 4,326,254 109,670,534
---------- --------------
46,001,651 1,259,353,739
Shares redeemed .............. (40,988,951) (1,126,121,958)
---------- --------------
Net increase ............... 5,012,700 $ 133,231,781
========== ==============
SHARES AMOUNT
------ ------
American Leveraged AllCap
Portfolio:
Shares sold .................. 4,701,044 $ 202,660,204
Dividends reinvested ......... 263,906 10,147,195
---------- --------------
4,964,950 212,807,399
Shares redeemed .............. (1,626,596) (68,481,526)
---------- --------------
Net increase ............... 3,338,354 $ 144,325,873
========== ==============
29
