The Alger Retirement Fund
Meeting the challenge of investing
Alger Growth
Retirement Portfolio
Alger Small Cap
Retirement Portfolio
Alger MidCap Growth
Retirement Portfolio
Alger Capital Appreciation
Retirement Portfolio
Semi-Annual Report
April 30, 1999
(Unaudited)
<PAGE>
Fellow Shareholders:
YEAR-TO-DATE REVIEW
May 14, 1999
The U.S. economy continued to show strong growth in the first quarter of
1999, bolstering corporate earnings and helping to push the Dow Jones Industrial
Average above the 10,000 mark. The broader stock market saw strong gains in
January, most of which were given back in February. In March, the Dow broke
through the 10,000 mark several times in intraday trading before finally closing
above that milestone at month-end. The S&P 500 saw a total return of 4% in March
and 4.98% in the first quarter of 1999. Mid- and small-capitalization stocks as
a group lost ground in January and February, posting only minor gains in March.
Large-capitalization companies and technology firms continued to lead the market
to record levels in April and into May.
First-quarter GDP rose 4.5%, fueled by increases in consumer spending and
business investment in technology. Consumer spending grew at a 6.7% annual rate
in the first quarter, a significant rise over last year. The rise in consumer
confidence is due in part to employment gains and slowing inflation. Low
interest rates led to a boom in mortgage refinancing. Residential construction
spending also posted strong gains in the first quarter. Business investments in
durable equipment rose, with spending on information technology up 21% on an
annualized basis.
Low interest rates contributed to the stock market's rise. While yields on
long-term U.S. Treasury bonds climbed to 5.625% on March 31 from 5.09% at
year-end 1998, the Federal Reserve took a neutral stance on interest rates at
its regular Federal Open Market Committee meeting. Since February, long-term
interest rates have drifted in the 5.25% to 6.0% range, and concerns that the
Federal Reserve would move toward higher interest rates to forestall potential
inflation have eased. In the wake of Russia's default last fall, lenders raised
restrictions on new loans and money markets began to tighten. To ease the
liquidity crunch, the Federal Reserve cut its Federal Funds target rate three
times to 4.75% from 5.5%. Fears of a widespread credit crisis quickly subsided,
however. The Fed's January Lending Survey showed a clear shift toward more
available funds, and quality spreads between the U.S. Treasuries and high-yield
bonds have begun to narrow again in recent months.
At the same time, inflation remains under 2%, as measured by the Consumer
Price Index. Job growth continues to be strong, and the unemployment rate--4.2%
in March--remains at the lowest point in three decades. Yet tight labor markets
have not resulted in higher inflation. A combination of modest increases in
wages and better-than-expected productivity gains has resulted in flat or lower
unit labor costs.
Internationally, many economies continue to show weakness, which has had a
negative effect on U.S. export growth. Exports rose in the fourth quarter of
last year as Asian markets began showing signs of recovery, but the gains were
not sustained in the first quarter of 1999. The introduction of the euro
currency in January has not yet sparked the hoped-for growth in European
economies many analysts expected. The political issues surrounding the
Serbian-Yugoslav crisis may have contributed to the weakness of the euro.
Looking forward, the U.S. economy remains an engine of global growth, with
domestic consumer demand snapping up imports and taking up some of the excess
capacity in slower-growth economies abroad. Advances in corporate productivity
will likely be key to continued low inflation and opportunities for growth in
the economy and the markets.
Respectfully submitted,
/s/David D. Alger
David D. Alger
President
<PAGE>
THE ALGER RETIREMENT FUND
ALGER GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
Shares Common Stocks--95.5% Value
------ ------
AIRLINES--.5%
9,700 Southwest Airlines Co................. $ 315,860
----------
AUTOMOTIVE--.5%
5,500 Harley Davidson, Inc.................. 327,938
----------
BIO-TECHNOLOGY--2.8%
15,000 Amgen Inc.*........................... 921,570
9,500 Biogen Inc.*.......................... 903,099
----------
1,824,669
----------
BUSINESS SERVICES--3.5%
10,000 Ceridian Corp.*....................... 366,250
11,600 Cintas Corp........................... 797,500
37,000 IMS Health Inc........................ 1,110,000
----------
2,273,750
----------
CHEMICALS--1.0%
15,000 Monsanto Co........................... 678,750
----------
COMMUNICATION EQUIPMENT--8.5%
16,500 Ascend Communications, Inc.*.......... 1,594,313
12,450 Cisco Systems, Inc.*.................. 1,420,084
10,600 Corning Inc........................... 606,850
24,400 Motorola, Inc......................... 1,955,050
----------
5,576,297
----------
COMMUNICATIONS--12.5%
13,100 America Online Inc.................... 1,870,025
5,300 Broadcast.com Inc.*................... 679,725
15,000 Comcast Corp. Cl. A. Special.......... 985,320
3,800 COX Communications Inc. Cl. A.*....... 301,625
12,600 Frontier Corp......................... 695,369
17,800 MCI Worldcom Inc.*.................... 1,462,946
12,400 MediaOne Group Inc.*.................. 1,011,380
18,600 Nextel Communications Inc. Cl. A.*.... 761,447
4,700 Qwest Communications International Inc.* 401,559
----------
8,169,396
----------
COMPUTER RELATED & BUSINESS
EQUIPMENT--3.9%
8,800 EMC Corp.*............................ 958,654
3,200 International Business Machines Corp.. 669,402
15,600 Sun Microsystems Inc.*................ 933,083
----------
2,561,139
----------
COMPUTER SERVICES--3.2%
3,200 eBay Inc.*............................ 666,000
7,500 Excite Inc.*.......................... 1,095,000
2,000 Yahoo Inc.*........................... 349,376
----------
2,110,376
----------
COMPUTER SOFTWARE--5.0%
3,700 Intuit Inc.*.......................... 318,663
36,100 Microsoft Corporation*................ 2,935,399
----------
3,254,062
----------
CONGLOMERATE--3.4%
27,586 Tyco International Ltd................ 2,241,363
----------
DRUG DISTRIBUTION--.9%
10,350 Cardinal Health, Inc.................. 619,065
----------
ENERGY & ENERGY SERVICES--.5%
7,800 Halliburton Co........................ 332,475
----------
Shares Common Stocks (Continued) Value
------ -----
FINANCIAL SERVICES--12.4%
2,900 American Express Co................... $ 378,995
8,800 Bank of America Corp.................. 633,600
29,500 Citigroup Inc......................... 2,219,875
14,900 Federal Home Loan Mortgage Corporation 934,975
25,000 Household International Inc........... 1,257,825
10,800 Kansas City Southern Industries Inc... 643,280
20,400 Morgan Stanley Dean Witter & Co....... 2,023,435
----------
8,091,985
----------
FOOD CHAINS--5.9%
17,700 Fred Meyer, Inc.*..................... 958,013
21,200 Kroger Co.*........................... 1,151,436
32,800 Safeway Inc.*......................... 1,769,166
----------
3,878,615
----------
INSURANCE--2.0%
11,275 American International Group, Inc..... 1,324,113
----------
LEISURE & ENTERTAINMENT--.8%
12,500 Carnival Corp......................... 515,625
----------
MEDICAL DEVICES--.5%
8,300 Boston Scientific Corp.*.............. 353,273
----------
PHARMACEUTICALS--6.1%
5,000 American Home Products Corp........... 305,000
13,000 Pfizer Inc............................ 1,495,819
9,600 SmithKline Beecham PLC-ADS............ 630,605
23,000 Warner-Lambert Co..................... 1,562,574
----------
3,993,998
----------
POLLUTION CONTROL--2.9%
33,700 Waste Management, Inc................. 1,904,050
----------
RETAILING--10.6%
2,800 Amazon.com Inc.*...................... 481,776
6,800 Best Buy Company Inc.*................ 324,700
12,100 CVS Corp.............................. 576,263
11,300 Costco Companies Inc.*................ 914,599
28,900 Home Depot, Inc....................... 1,732,208
21,900 Office Depot Inc.*.................... 481,800
27,300 Staples Inc.*......................... 819,000
35,800 Wal-Mart Stores Inc................... 1,646,800
----------
6,977,146
----------
SEMICONDUCTORS--5.6%
5,300 Altera Corporation*................... 382,925
11,300 Intel Corp............................ 691,424
13,200 Linear Technology Corporation......... 750,750
11,600 Micron Technology Inc.*............... 430,650
7,000 Texas Instruments, Incorporated....... 714,875
14,800 Xilinx, Inc.*......................... 675,250
----------
3,645,874
----------
SEMICONDUCTOR CAPITAL
EQUIPMENT--2.5%
22,400 Applied Materials Inc.*............... 1,201,200
9,000 Teradyne, Inc.*....................... 424,692
----------
1,625,892
----------
Total Common Stocks
(Cost $48,086,315).................. 62,595,711
----------
3
<PAGE>
THE ALGER RETIREMENT FUND
ALGER GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF Investments (Unaudited) (Continued)
April 30, 1999
Principal
Amount Short-Term Corporate Notes--4.1% Value
------ ------
$1,500,000 Ford Motor Credit Company,
4.73%, 5/6/99....................... $ 1,499,015
1,000,000 Kitty Hawk Funding Corp.,
4.85%, 5/13/99...................... 998,384
200,000 Georgia Power Co.,
4.75%, 5/7/99....................... 199,841
----------
Total Short-Term Corporate Notes
(Cost $2,697,240).................... 2,697,240
----------
Total Investments
(Cost $50,783,555)(a)................ 99.6% 65,292,951
Other Assets in Excess of Liabilities.... .4 242,937
----- -----------
Net Assets ............................. 100.0% $65,535,888
===== ===========
* Non-income producing security.
(a) At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $50,783,555, amounted to
$14,509,396 which consisted of aggregate gross unrealized appreciation of
$15,003,800 and aggregate gross unrealized depreciation of $494,404.
See Notes to Financial Statements.
4
<PAGE>
The alger retirement fund
Alger Growth retirement Portfolio
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
From
November 8, 1993
Six Months (commencement
Ended Year Ended October 31, of operations)
April 30, --------------------------------------------------------- to October 31,
1999(i)(ii) 1998 1997 1996 1995 1994(ii)
--------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ......................... $ 12.37 $ 10.78 $ 9.32 $ 11.65 $ 10.38 $ 10.00
--------- --------- --------- -------- --------- ---------
Net investment income (loss) ..... (0.02)(iii) (0.01)(iii) (0.02)(iii) (0.01) (0.01) (0.03)
Net realized and unrealized
gain on investments ............ 4.40 2.82 2.65 0.91 3.59 0.41
--------- --------- --------- -------- --------- ---------
Total from investment
operations................ 4.38 2.81 2.63 0.90 3.58 0.38
Distributions from net realized
gains........................... -- (1.22) (1.17) (3.23) (2.31) --
--------- --------- --------- -------- --------- ---------
Net asset value, end of period ... $ 16.75 $ 12.37 $ 10.78 $ 9.32 $ 11.65 $ 10.38
========= ========= ========= ======== ========= =========
Total Return ..................... 35.4% 25.4% 28.8% 8.2% 37.1% 3.8%
========= ========= ========= ======== ========= =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)........... $ 65,536 $ 40,196 $ 22,922 $ 11,325 $ 13,042 $ 9,365
========= ========= ========= ======== ========= =========
Ratio of expenses to
average net assets........ 1.04% 1.11% 1.13% 1.07% 1.11% 1.26%
========= ========= ========= ======== ========= =========
Ratio of net investment
income (loss) to
average net assets ....... (0.23%) (0.06%) (0.22%) (0.09%) (0.18%) (0.29%)
========= ========= ========= ======== ========= =========
Portfolio Turnover Rate..... 65.10% 130.31% 159.38% 142.83% 133.42% 103.79%
========= ========= ========= ======== ========= =========
</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.
5
<PAGE>
THE ALGER RETIREMENT FUND
ALGER SMALL CAP RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
Shares Common Stocks--93.4% Value
------ -----
ADVERTISEMENT--1.4%
15,850 Outdoor Systems, Inc.*................ $ 399,230
5,500 Young & Rubicam Inc.*................. 218,972
---------
618,202
---------
AIRLINES--.8%
14,000 SkyWest Inc........................... 364,000
---------
AUTOMOTIVE--3.6%
20,000 Midas Inc............................. 700,000
60,000 Sonic Automotive Inc. Cl. A.*......... 888,750
---------
1,588,750
---------
BIO-TECHNOLOGY--4.0%
19,100 IDEC Pharmaceuticals Corporation*..... 969,325
15,000 Medimmune Inc.*....................... 826,875
---------
1,796,200
---------
BROADCASTING--2.5%
14,000 Jacor Communications Inc.*............ 1,123,500
---------
BUILDING & CONSTRUCTION--.3%
7,000 Champion Enterprises Inc.*............ 129,938
---------
BUSINESS SERVICES--9.2%
15,300 Bisys Group Inc.*..................... 776,475
23,500 FactSet Research Systems Inc.......... 1,095,688
16,400 Nielsen Media Research Inc.*.......... 448,950
40,000 Paymentech Inc.*...................... 955,000
31,500 Rent-Way Inc.*........................ 858,375
---------
4,134,488
---------
COMMUNICATION EQUIPMENT--5.0%
18,000 Aware Inc.*........................... 1,000,134
27,200 Dycom Industries Inc.*................ 1,242,714
---------
2,242,848
---------
COMMUNICATIONS--5.8%
8,000 Broadcast.com Inc.*................... 1,026,000
38,100 Com21 Inc.*........................... 1,185,863
8,000 Cox Radio, Inc. Cl. A.*............... 390,000
---------
2,601,863
---------
COMPUTER RELATED & BUSINESS
EQUIPMENT--3.4%
25,000 Antec Corp.*.......................... 678,125
12,800 Sanmina Corporation*.................. 849,600
---------
1,527,725
---------
COMPUTER SERVICES--7.9%
10,000 CNET Inc.*............................ 1,285,000
9,800 Excite Inc.*.......................... 1,430,800
15,000 QRS Corp.*............................ 825,000
---------
3,540,800
---------
COMPUTER SOFTWARE--4.1%
8,000 GeoTel Communications Corp.*.......... 450,000
16,200 Intuit Inc.*.......................... 1,395,225
---------
1,845,225
---------
COMPUTER TECHNOLOGY--.9%
6,600 Rambus Inc.*.......................... 396,825
---------
CONSUMER PRODUCTS--2.5%
8,300 Furniture Brands International Inc.*.. 208,023
35,000 Mettler-Toledo International Inc.*.... 914,375
---------
1,122,398
---------
Shares Common Stocks (Continued) Value
------ -----
DRUG DISTRIBUTION--.7%
11,600 AmeriSource Health Corp. Cl. A.*...... $ 321,181
---------
FINANCIAL SERVICES--3.1%
20,000 Dime Bancorp Inc...................... 461,260
14,800 National Commerce Bancorp............. 370,000
11,000 North Fork Bancorporation Inc......... 247,500
5,000 Wilmington Trust Corp................. 307,190
---------
1,385,950
---------
FOODS & BEVERAGES--4.7%
35,600 Starbucks Corp.*...................... 1,314,993
18,700 U.S. Foodservice*..................... 786,578
---------
2,101,571
---------
LEISURE & ENTERTAINMENT--.9%
20,000 Cinar Films, Inc. Cl. B.*............. 417,500
---------
MEDICAL SERVICES--3.6%
27,000 Hooper Holmes Inc..................... 430,326
34,100 MedQuist Inc.*........................ 1,167,925
---------
1,598,251
---------
OIL & GAS--1.9%
75,000 Varco International Inc.*............. 848,475
---------
PHARMACEUTICALS--4.9%
19,000 Agouron Pharmaceuticals Inc.*......... 1,122,197
24,200 Forest Laboratories, lnc.*............ 1,076,900
---------
2,199,097
---------
RESTAURANTS & LODGING--3.0%
37,500 Outback Steakhouse, Inc.*............. 1,342,988
---------
RETAILING--15.0%
47,000 BJ's Wholesale Club Inc.*............. 1,248,461
27,400 Bed Bath & Beyond Inc.*............... 977,851
16,600 Ethan Allen Interiors Inc............. 841,421
34,200 Family Dollar Stores Inc.............. 825,075
28,400 Linens'n Things Inc.*................. 1,299,300
35,000 Stride Rite Corp...................... 409,080
7,000 Tiffany & Co.......................... 588,000
18,300 Williams Sonoma Inc.*................. 530,700
---------
6,719,888
---------
SEMICONDUCTORS--1.9%
24,500 Microchip Technology Incorporated*.... 857,500
---------
SEMICONDUCTOR CAPITAL
EQUIPMENT--.3%
6,000 PRI Automation, Inc.*................. 148,878
---------
TRANSPORTATION--2.0%
7,900 Coach USA Inc.*....................... 187,625
31,100 Forward Air Corporation*.............. 691,975
---------
879,600
---------
Total Common Stocks
(Cost $34,967,010).................. 41,853,641
---------
6
<PAGE>
THE ALGER RETIREMENT FUND
ALGER SMALL CAP RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1999
Principal
Amount Short-Term Corporate Notes--6.1% Value
--------- -----
$1,400,000 Corporacion Andina De Fomento,
4.83%, 5/7/99....................... $ 1,398,800
825,000 Kitty Hawk Funding Corp.,
4.85%, 5/13/99...................... 823,662
500,000 National Australia Funding Inc.,
4.77%, 5/13/99...................... 499,280
-----------
Total Short-Term Corporate Notes
(Cost $2,721,742)................... 2,721,742
-----------
Total Investments
(Cost $37,688,752)(a)................ 99.5% 44,575,383
Other Assets in Excess of Liabilities.... .5 207,024
----- -----------
Net Assets ............................. 100.0% $44,782,407
===== ===========
* Non-income producing security.
(a)At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $37,688,752, amounted to $6,886,631
which consisted of aggregate gross unrealized appreciation of $7,493,848 and
aggregate gross unrealized depreciation of $607,217.
See Notes to Financial Statements.
7
<PAGE>
THE ALGER RETIREMENT FUND
ALGER SMALL CAP RETIREMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
From
November 8, 1993
Six Months (commencement
Ended Year Ended October 31, of operations)
April 30, --------------------------------------------------------- to October 31,
1999(i)(ii) 1998 1997 1996 1995 1994(ii)
----------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period...................... $ 16.37 $ 18.00 $ 17.87 $ 17.92 $ 10.83 $ 10.00
--------- --------- --------- --------- --------- ---------
Net investment income (loss)..... (0.06)(iii) (0.08) (0.10) (0.05) (0.07) (0.07)
Net realized and unrealized
gain on investments............ 6.79 0.02 3.13 1.72 7.23 0.90
--------- --------- --------- --------- --------- ---------
Total from investment
operations............... 6.73 (0.06) 3.03 1.67 7.16 0.83
Distributions from net
realized gains................. -- (1.57) (2.90) (1.72) (0.07) --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period... $ 23.10 $ 16.37 $ 18.00 $ 17.87 $ 17.92 $ 10.83
========= ========= ========= ========= ========= =========
Total Return..................... 41.1% (1.8)% 19.0% 9.2% 66.2% 8.3%
========= ========= ========= ========= ========= =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted).......... $ 44,782 $ 29,938 $ 31,499 $ 30,043 $ 23,002 $ 9,513
========= ========= ========= ========= ========= =========
Ratio of expenses to
average net assets ...... 0.98% 1.03% 1.06% 1.05% 1.13% 1.47%
========= ========= ========= ========= ========= =========
Ratio of net investment
income (loss) to
average net assets....... (0.55%) (0.55%) (0.62%) (0.54%) (0.73%) (0.80%)
========= ========= ========= ========= ========= =========
Portfolio Turnover Rate...... 105.12% 169.97% 134.25% 182.49% 104.84% 186.76%
========= ========= ========= ========= ========= =========
</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.
8
<PAGE>
THE ALGER RETIREMENT FUND
ALGER MIDCAP GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
Shares Common Stocks--88.5% Value
------ -----
ADVERTISING--.8%
2,200 Young & Rubicam Inc.*................. $ 87,589
---------
AIRLINES--.4%
1,300 Southwest Airlines Co................. 42,331
---------
APPAREL--.9%
1,500 Tommy Hilfiger Corporation*........... 104,812
---------
AUTOMOTIVE--1.1%
2,000 Harley Davidson, Inc.................. 119,250
---------
BIO-TECHNOLOGY--3.1%
3,600 Biogen Inc.*.......................... 342,227
---------
BUILDING & CONSTRUCTION--.8%
5,000 Champion Enterprises Inc.*............ 92,812
---------
BUSINESS SERVICES--11.1%
8,000 Ceridian Corp.*....................... 293,000
5,500 Cintas Corp........................... 378,125
4,500 Fiserv Inc.*.......................... 263,534
8,000 IMS Health Inc........................ 240,000
1,400 Siebel Systems Inc.*.................. 53,813
---------
1,228,472
---------
COMMUNICATION EQUIPMENT--1.0%
1,100 Ascend Communications, lnc.*.......... 106,288
---------
COMMUNICATIONS--7.1%
2,500 Broadcast.com Inc.*................... 320,625
1,200 COX Communications Inc. Cl. A.*....... 95,250
5,600 Frontier Corp......................... 309,053
1,000 Global Telesystems Group Inc.*........ 66,125
---------
791,053
---------
COMPUTER RELATED & BUSINESS
EQUIPMENT--2.7%
9,900 Quantum Corp.*........................ 176,963
1,800 Sanmina Corporation*.................. 119,475
---------
296,438
---------
COMPUTER SERVICES--7.1%
2,200 CNET Inc.*............................ 282,700
1,200 eBay Inc.*............................ 249,750
1,700 Excite Inc.*.......................... 248,200
---------
780,650
---------
COMPUTER SOFTWARE--3.1%
4,000 Intuit Inc.*.......................... 344,500
---------
COMPUTER TECHNOLOGY--1.3%
2,500 Rambus Inc.*.......................... 150,313
---------
DRUG DISTRIBUTION--1.1%
4,200 AmeriSource Health Corp Cl. A.*....... 116,290
---------
FINANCIAL SERVICES--5.9%
3,000 Charter One Financial Inc............. 93,750
5,000 Dime Bancorp Inc...................... 115,315
2,900 Golden State Bancorp Inc.*............ 71,233
4,000 Kansas City Southern Industries Inc... 238,252
2,800 Paine Webber Group Inc................ 131,426
---------
649,976
---------
Shares Common Stocks (Continued) Value
------ -----
FOOD CHAINS--2.0%
4,000 Fred Meyer, lnc.*..................... $ 216,500
---------
FOODS & BEVERAGES--4.2%
8,000 Starbucks Corp.*...................... 295,504
4,000 U.S. Foodservice*..................... 168,252
---------
463,756
---------
PAPER PACKAGING & FOREST
PRODUCTS--1.5%
2,800 Sealed Air Corp.*..................... 170,275
---------
PHARMACEUTICALS--4.6%
2,900 Agouron Pharmaceuticals Inc.*......... 171,282
7,500 Forest Laboratories, lnc.*............ 333,750
---------
505,032
---------
RESTAURANTS & LODGING--3.6%
10,000 Outback Steakhouse, Inc.*............. 358,130
1,000 Papa John's International Inc.*....... 40,188
---------
398,318
---------
RETAILING--11.1%
1,500 Abercrombie & Fitch Co., Cl. A.*...... 142,688
6,700 Bed Bath & Beyond Inc.*............... 239,110
3,600 Best Buy Company Inc.*................ 171,900
4,500 Gucci Group N.V....................... 339,471
9,750 Office Depot Inc.*.................... 214,500
4,000 Williams Sonoma Inc.*................. 116,000
---------
1,223,669
---------
SEMICONDUCTORS--9.9%
3,000 Altera Corporation*................... 216,750
4,800 Linear Technology Corporation......... 273,000
2,000 Maxim Integrated Products, Inc.*...... 112,000
6,400 Microchip Technology Incorporated*.... 224,000
6,000 Xilinx, Inc.*......................... 273,750
---------
1,099,500
---------
SEMICONDUCTOR CAPITAL
EQUIPMENT--3.3%
1,400 Applied Materials Inc.*............... 75,075
1,100 ASM Lithography Holding NV*........... 42,900
5,200 Teradyne, Inc.*....................... 245,378
---------
363,353
---------
TRANSPORTATION--.8%
3,700 Coach USA Inc.*....................... 87,875
---------
Total Common Stocks
(Cost $8,924,125)................. 9,781,279
---------
9
<PAGE>
THE ALGER RETIREMENT FUND
ALGER MIDCAP GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)(Continued)
April 30, 1999
Principal
Amount Short-Term Corporate Notes--21.7% Value
------ -----
$150,000 Corporacion Andina De Fomento,
4.83%, 5/7/99....................... $ 149,879
350,000 Florida Power Corp.,
4.77%, 5/6/99....................... 349,768
100,000 Ford Motor Credit Company,
4.73%, 5/6/99....................... 99,935
150,000 General Motors Acceptance Corp.,
4.80%, 5/10/99...................... 149,820
400,000 Household Finance Corp.,
4.75%, 5/6/99....................... 399,736
250,000 Kitty Hawk Funding Corp.,
4.85%, 5/13/99...................... 249,596
100,000 Merrill Lynch & Co.,
4.78%, 5/12/99...................... 99,854
450,000 National Australia Funding Inc.,
4.77%, 5/13/99...................... 449,284
---------
450,000 United Parcel Service Inc.,
4.69%, 5/13/99...................... 449,297
---------
Total Short-Term Corporate Notes
(Cost $2,397,169)................... 2,397,169
Total Investments
(Cost $11,321,294)(a).................. 110.2% 12,178,448
Liabilities in Excess of Other Assets.... (10.2) (1,123,277)
----- ----------
Net Assets ............................. 100.0% $11,055,171
===== ==========
* Non-income producing security.
(a) At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $11,321,294, amounted to $857,154
which consisted of aggregate gross unrealized appreciation of $1,112,977 and
aggregate gross unrealized depreciation of $255,823.
See Notes to Financial Statements.
10
<PAGE>
THE ALGER RETIREMENT FUND
ALGER MIDCAP GROWTH RETIREMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
From
November 8, 1993
Six Months (commencement
Ended Year Ended October 31, of operations)
April 30, --------------------------------------------------------- to October 31,
1999(i)(ii) 1998 1997 1996 1995 1994(ii)
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ..................... $ 8.83 $ 11.36 $ 14.48 $ 16.34 $ 11.66 $ 10.00
--------- --------- --------- --------- --------- ---------
Net investment income (loss) .... (0.04)(iii) (0.06)(iii) (0.15) (0.07) (0.07) (0.09)
Net realized and unrealized
gain on investments ........... 3.05 1.78 3.46 1.09 6.07 1.75
--------- --------- --------- --------- --------- ---------
Total from investment
operations .............. 3.01 1.72 3.31 1.02 6.00 1.66
Distributions from net
realized gains ................ -- (4.25) (6.43) (2.88) (1.32) --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period .. $ 11.84 $ 8.83 $ 11.36 $ 14.48 $ 16.34 $ 11.66
========= ========= ========= ========= ========= =========
Total Return .................... 34.1% 11.5% 28.6% 6.2% 54.1% 16.6%
========= ========= ========= ========= ========= =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ......... $ 11,055 $ 6,667 $ 6,435 $ 9,726 $ 10,914 $ 6,774
========= ========= ========= ========= ========= =========
Ratio of expenses to
average net assets ...... 1.26% 1.22% 1.31% 1.16% 1.23% 1.53%
========= ========= ========= ========= ========= =========
Ratio of net investment
income (loss) to
average net assets ...... (0.74%) (0.52%) (0.79%) (0.45%) (0.69%) (0.89%)
========= ========= ========= ========= ========= =========
Portfolio Turnover Rate ... 130.29% 184.23% 183.31% 170.21% 132.74% 134.06%
========= ========= ========= ========= ========= =========
</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.
11
<PAGE>
THE ALGER RETIREMENT FUND
ALGER CAPITAL APPRECIATION RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1999
Shares Common Stocks--91.0% Value
------ -----
BIO-TECHNOLOGY--1.7%
8,000 Amgen Inc.*........................... $ 491,504
---------
BROADCASTING--1.5%
5,600 Cablevision Systems Corp. Cl. A.*..... 433,300
---------
BUSINESS SERVICES--1.1%
10,200 IMS Health Inc........................ 306,000
---------
communication equipment--6.1%
2,500 Ascend Communications, Inc.*.......... 241,563
8,500 Cisco Systems, Inc.*.................. 969,536
6,500 Motorola, Inc......................... 520,813
---------
1,731,912
---------
COMMUNICATIONS--17.0%
7,800 America Online Inc.................... 1,113,450
4,500 Broadcast.com Inc.*................... 577,125
12,500 Comcast Corp. Cl. A. Special.......... 821,100
9,500 COX Communications Inc. Cl. A.*....... 754,063
4,500 MCI Worldcom Inc.*.................... 369,846
10,000 Nextel Communications Inc. Cl. A.*.... 409,380
3,500 Qwest Communications International Inc.* 299,033
2,000 RealNetworks Inc.*.................... 443,000
---------
4,786,997
---------
COMPUTER RELATED & BUSINESS
EQUIPMENT--5.2%
5,600 EMC Corp.*............................ 610,053
14,500 Sun Microsystems Inc.*................ 867,289
---------
1,477,342
---------
COMPUTER Services--11.6%
4,500 CNET Inc.*............................ 578,250
6,300 eBay Inc.*............................ 1,311,188
4,900 Excite Inc.*.......................... 715,400
3,900 Yahoo Inc.*........................... 681,283
---------
3,286,121
---------
COMPUTER SOFTWARE--5.5%
4,000 Intuit Inc.*.......................... 344,500
14,800 Microsoft Corporation*................ 1,203,432
---------
1,547,932
---------
CONGLOMERATE--3.0%
10,500 Tyco International Ltd................ 853,125
---------
FINANCIAL SERVICES--9.5%
3,000 American Express Co................... 392,064
11,000 Citigroup Inc......................... 827,750
9,100 Kansas City Southern Industries Inc... 542,023
7,000 Morgan Stanley Dean Witter & Co....... 694,316
2,000 Schwab (Charles) Corporation (The).... 219,500
---------
2,675,653
---------
Shares Common Stocks (Continued) Value
------ -----
FOOD CHAINS--1.0%
2,300 Kroger Co.*........................... $ 124,920
2,700 Safeway Inc.*......................... 145,633
---------
270,553
---------
INSURANCE--2.8%
6,700 American International Group, Inc..... 786,835
---------
PHARMACEUTICALS--2.3%
4,500 Pfizer Inc............................ 517,784
2,700 Schering-Plough Corporation........... 130,445
---------
648,229
---------
RETAILING--15.8%
7,200 Amazon.com Inc.*...................... 1,238,854
9,000 Best Buy Company Inc.*................ 429,750
6,500 Costco Companies Inc.*................ 526,097
12,100 Home Depot, Inc....................... 725,250
12,000 Office Depot Inc.*.................... 264,000
7,500 Staples Inc.*......................... 225,000
22,800 Wal-Mart Stores Inc................... 1,048,800
---------
4,457,751
---------
SEMICONDUCTORS--3.3%
6,300 Linear Technology Corporation......... 358,313
1,800 Texas Instruments, Incorporated....... 183,825
8,600 Xilinx, Inc.*......................... 392,375
---------
934,513
---------
SEMICONDUCTOR CAPITAL
EQUIPMENT--3.6%
9,400 Applied Materials Inc.*............... 504,075
5,000 ASM Lithography Holding NV*........... 195,000
6,500 Teradyne, Inc.*....................... 306,721
---------
1,005,796
---------
Total Common Stocks
(Cost $21,711,609).................. 25,693,563
---------
Principal
Amount Short-Term Corporate Notes--13.3%
- ---------
$1,200,000 Corporacion Andina De Fomento,
4.83%, 5/7/99....................... 1,199,034
900,000 General Motors Acceptance Corp.,
4.80%, 5/10/99...................... 898,920
1,100,000 Kitty Hawk Funding Corp.,
4.85%, 5/13/99...................... 1,098,221
550,000 National Australia Funding Inc.,
4.77%, 5/13/99...................... 549,126
---------
Total Short-Term Corporate Notes
(Cost $3,745,301)................... 3,745,301
---------
Total Investments
(Cost $25,456,910)(a).................. 104.3% 29,438,864
Liabilities In Excess of Other Assets.... (4.3) (1,209,309)
----- ----------
Net Assets ............................. 100.0% $28,229,495
===== ==========
* Non-income producing security.
(a) At April 30 1999, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $25,469,910, amounted to $3,981,954
which consisted of aggregate gross unrealized appreciation of $4,303,410
and aggregate gross unrealized depreciation of $321,456.
See Notes to Financial Statements.
12
<PAGE>
The Alger retirement fund
Alger capital appreciation retirement Portfolio(i)
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
From
November 8, 1993
Six Months (commencement
Ended Year Ended October 31, of operations)
April 30, ----------------------------------------------------------- to October 31,
1999(ii)(iii) 1998 1997 1996 1995 1994(iii)
------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ..................... $ 8.98 $ 9.70 $ 9.88 $ 12.72 $ 10.08 $ 10.00
--------- --------- --------- --------- --------- ---------
Net investment income (loss) .... (0.05)(iv) (0.08)(iv) (0.10)(iv) (0.07) (0.19) (0.23)
Net realized and unrealized
gain on investments ........... 6.08 2.96 2.51 0.83 5.30 0.31
--------- --------- --------- --------- --------- ---------
Total from investment
operations .............. 6.03 2.88 2.41 0.76 5.11 0.08
Distributions from net
realized gains ................ -- (3.60) (2.59) (3.60) (2.47) --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period .. $ 15.01 $ 8.98 $ 9.70 $ 9.88 $ 12.72 $ 10.08
========= ========= ========= ========= ========= =========
Total Return .................... 67.1% 28.1% 26.1% 6.1% 54.4% 0.8%
========= ========= ========= ========= ========= =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ......... $ 28,229 $ 5,587 $ 4,520 $ 6,703 $ 8,116 $ 5,251
========= ========= ========= ========= ========= =========
Ratio of expenses excluding
interest to average
net assets .............. 1.27% 1.37% 1.47% 1.37% 1.43% 1.78%
========= ========= ========= ========= ========= =========
Ratio of expenses including
interest to average
net assets............... 1.32% 1.44% 1.62% 1.44% 2.70% 2.87%
========= ========= ========= ========= ========= =========
Ratio of net investment
income (loss) to average
net assets .............. (0.75%) (0.79%) (1.02%) (0.94%) (2.32%) (2.53%)
========= ========= ========= ========= ========= =========
Portfolio Turnover Rate ... 67.16% 177.09% 159.56% 203.46% 188.53% 229.11%
========= ========= ========= ========= ========= =========
Amount of debt outstanding
at end of period......... $ -- $ -- $ 127,000 $ -- $ 302,600 $ 955,600
========= ========= ========= ========= ========= =========
Average amount of debt
outstanding during
the period .............. $ 84,768 $ 49,890 $ 127,915 $ 62,130 $ 939,600 $ 826,076
========= ========= ========= ========= ========= =========
Average daily number of
shares outstanding
during the period........ 925,729 505,939 511,947 595,051 565,805 515,270
========= ========= ========= ========= ========= =========
Average amount of debt
per share during
the period .............. $ 0.09 $ 0.10 $ 0.25 $ 0.10 $ 1.66 $ 1.60
========= ========= ========= ========= ========= =========
</TABLE>
(i) Prior to April 12, 1996, the Alger Capital Appreciation Retirement
Portfolio was the Alger Defined Contribution Leveraged AllCap Portfolio.
(ii) Unaudited.
(iii) Ratios have been annualized; total return has not been annualized.
(iv) Amount was computed based on average shares outstanding during the period.
See Notes to Financial Statements.
13
<PAGE>
THE ALGER RETIREMENT FUND
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
MidCap Capital
Growth Small Cap Growth Appreciation
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value (identified cost*)--
see accompanying schedules of investments............. $65,292,951 $44,575,383 $12,178,448 $29,438,864
Cash.................................................... 17,741 28,617 48,717 41,111
Receivable for investment securities sold............... 1,763,873 11,092,577 397,371 138,685
Receivable for shares of beneficial interest sold....... 139,876 25,749 117,575 --
Dividends receivable.................................... 12,575 3,750 637 3,687
Prepaid expenses ....................................... 15,952 15,986 15,259 15,274
----------- ----------- ----------- -----------
Total Assets........................................ 67,242,968 55,742,062 12,758,007 29,637,621
----------- ----------- ----------- -----------
LIABILITIES:
Payable for investment securities purchased............. 1,572,247 10,826,706 1,550,713 1,134,060
Payable for shares of beneficial interest redeemed...... 36,299 79,878 136,633 240,243
Interest payable........................................ -- -- -- 2,377
Accrued investment management fees...................... 41,249 30,993 6,334 15,874
Accrued expenses........................................ 57,285 22,078 9,156 15,572
----------- ----------- ----------- -----------
Total Liabilities................................... 1,707,080 10,959,655 1,702,836 1,408,126
----------- ----------- ----------- -----------
NET ASSETS.............................................. $65,535,888 $44,782,407 $11,055,171 $28,229,495
=========== =========== =========== ===========
Net Assets Consist of:=
Paid-in capital....................................... $41,235,546 $25,770,415 $ 7,217,616 $21,567,301
Undistributed net investment income
(accumulated loss).................................. (176,059) (780,265) (276,625) (474,490)
Undistributed net realized gain....................... 9,967,005 12,905,626 3,257,026 3,154,730
Net unrealized appreciation........................... 14,509,396 6,886,631 857,154 3,981,954
----------- ----------- ----------- -----------
NET ASSETS.............................................. $65,535,888 $44,782,407 $11,055,171 $28,229,495
=========== =========== =========== ===========
Shares of beneficial interest outstanding--Note 6........ 3,912,172 1,938,554 933,839 1,881,309
=========== =========== =========== ===========
NET ASSET VALUE PER SHARE............................... $ 16.75 $ 23.10 $ 11.84 $ 15.01
=========== =========== =========== ===========
*Identified cost........................................ $50,783,555 $37,688,752 $11,321,294 $25,456,910
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
THE ALGER RETIREMENT FUND
STATEMENTS OF OPERATIONS (Unaudited)
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
MidCap Capital
Growth Small Cap Growth Appreciation
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
Investment Income
Income:
Dividends............................................. $ 104,548 $ 34,986 $ 7,640 $ 14,380
Interest.............................................. 114,744 47,409 13,177 17,959
----------- ----------- ---------- ----------
Total income........................................ 219,292 82,395 20,817 32,339
----------- ----------- ---------- ----------
Expenses:
Management fees--Note 3(a)............................. 203,339 161,400 31,481 48,986
Shareholder servicing fees............................ 46,060 1,241 199 1,709
Interest on line of credit utilized--Note 5............ -- -- -- 2,389
Custodian fees........................................ 8,089 6,200 5,043 4,062
Transfer agent fees--Note 3(c)......................... 1,250 1,250 1,250 1,250
Shareholder reports................................... 6,530 2,625 1,734 3,059
Professional fees..................................... 6,687 7,000 4,399 5,916
Trustees' fees........................................ 2,976 2,976 2,976 2,976
Miscellaneous......................................... 6,188 4,235 2,682 5,502
----------- ----------- ---------- ----------
Total Expenses...................................... 281,119 186,927 49,764 75,849
----------- ----------- ---------- ----------
Net Investment Loss..................................... (61,827) (104,532) (28,947) (43,510)
----------- ----------- ---------- ----------
Realized and Unrealized Gain
On Investments:
Net realized gain on investments...................... 8,491,941 8,445,057 1,867,329 1,937,943
Net change in unrealized appreciation (depreciation)
on investments...................................... 6,698,274 4,306,771 404,405 2,900,464
----------- ----------- ---------- ----------
Net realized and unrealized gain
on investments...................................... 15,190,215 12,751,828 2,271,734 4,838,407
----------- ----------- ---------- ----------
Net increase In Net Assets
Resulting From Operations........................... $15,128,388 $12,647,296 $2,242,787 $4,794,897
=========== =========== ========== ==========
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
THE ALGER RETIREMENT FUND
ALGER CAPITAL APPRECIATION RETIREMENT PORTFOLIO
STATEMENT OF CASH FLOWS (Unaudited)
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
Increase (decrease) in cash:
Cash flows from operating activities:
<S> <C>
Dividends received............................................................................................... $ 11,601
Interest received................................................................................................ 17,959
Interest paid.................................................................................................... (75)
Operating expenses paid.......................................................................................... (54,669)
Purchase of investment securities................................................................................ (22,817,632)
Purchase of short-term securities, net........................................................................... (3,110,784)
Proceeds from disposition of investment securities............................................................... 7,888,691
Other............................................................................................................ (14,339)
-----------
Net cash used in operating activities.......................................................................... (18,079,248)
-----------
Cash flows from financing activities:
Proceeds from shares sold........................................................................................ 22,249,484
Payments on shares redeemed...................................................................................... (4,161,191)
-----------
Net cash provided by financing activities...................................................................... 18,088,293
-----------
Net increase in cash............................................................................................... 9,045
Cash--beginning of period........................................................................................... 32,066
-----------
Cash--end of period................................................................................................. $ 41,111
===========
Reconciliation of net increase in net assets to net cash used in operating activities:
Net increase in net assets resulting from operations............................................................. $ 4,794,897
Increase in investments.......................................................................................... (19,022,609)
Increase in receivable for investment securities sold............................................................ (138,685)
Increase in dividends receivable................................................................................. (2,779)
Increase in payable for investment securities purchased.......................................................... 1,121,568
Net realized gain on investments................................................................................. (1,937,943)
Net increase in unrealized appreciation on investments........................................................... (2,900,464)
Increase in accrued expenses and other liabilities............................................................... 21,106
Net decrease in other assets..................................................................................... (14,339)
-----------
Net cash used in operating activities.......................................................................... $(18,079,248)
===========
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
THE ALGER RETIREMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
MidCap Capital
Growth Small Cap Growth Appreciation
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Net investment loss..................................... $ (61,827) $ (104,532) $ (28,947) $ (43,510)
Net realized gain on investments........................ 8,491,941 8,445,057 1,867,329 1,937,943
Net change in unrealized appreciation (depreciation)
on investments........................................ 6,698,274 4,306,771 404,405 2,900,464
----------- ----------- ----------- ----------
Net increase in net assets resulting
from operations....................................... 15,128,388 12,647,296 2,242,787 4,794,897
Net increase from shares of beneficial
interest transactions--Note 6......................... 10,211,728 2,197,401 2,145,766 17,847,919
----------- ----------- ----------- -----------
Total increase ..................................... 25,340,116 14,844,697 4,388,553 22,642,816
Net Assets:
Beginning of period................................... 40,195,772 29,937,710 6,666,618 5,586,679
----------- ----------- ----------- -----------
End of period......................................... $65,535,888 $44,782,407 $11,055,171 $28,229,495
=========== =========== =========== ===========
Undistributed net investment income (accumulated loss).. $ (176,059) $ (780,265) $ (276,625) $ (474,490)
=========== =========== =========== ===========
</TABLE>
THE ALGER RETIREMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended October 31, 1998
<TABLE>
<CAPTION>
MidCap Capital
Growth Small Cap Growth Appreciation
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Net investment loss..................................... $ (19,255) $ (176,170) $ (34,779) $ (39,472)
Net realized gain on investments........................ 1,413,023 4,024,832 1,177,672 858,170
Net change in unrealized appreciation (depreciation)
on investments........................................ 4,786,718 (4,420,878) (406,271) 387,238
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations....................................... 6,180,486 (572,216) 736,622 1,205,936
Distributions to Shareholders:
Net realized gains.................................... (3,068,529) (2,665,137) (2,238,027) (1,478,868)
Net increase from shares of beneficial
interest transactions--Note 6.......................... 14,161,744 1,675,769 1,732,580 1,339,209
----------- ----------- ----------- -----------
Total increase (decrease)........................... 17,273,701 (1,561,584) 231,175 1,066,277
Net Assets:
Beginning of year..................................... 22,922,071 31,499,294 6,435,443 4,520,402
----------- ----------- ----------- -----------
End of year........................................... $40,195,772 $29,937,710 $ 6,666,618 $5,586,679
=========== =========== =========== ===========
Undistributed net investment income (accumulated loss).. $ (114,232) $ (675,733) $ (247,678) $ (430,980)
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
THE ALGER RETIREMENT FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--General:
The Alger Retirement 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 and
currently issues four classes of shares of beneficial interest --Growth
Portfolio, Small Cap Portfolio, MidCap Growth Portfolio and Capital Appreciation
Portfolio (the "Portfolios"). The investment objective of each Portfolio is
long-term capital appreciation. Each Portfolio seeks to achieve its objective by
investing primarily in equity securities.
NOTE 2--Significant Accounting Policies:
(a) Investment Valuation: Investments of the Portfolios are valued on each
day the New York Stock Exchange (the "NYSE") is open as of the close of the NYSE
(currently 4:00 p.m. Eastern time). Listed and unlisted securities for which
such information is regularly reported are valued at the last reported sales
price or, in the absence of reported sales, at the mean between the bid and
asked price or, in the absence of a recent bid or asked price, the equivalent as
obtained from one or more of the major market makers for the securities to be
valued.
Securities for which market quotations are not readily available are valued
at fair value, as determined in good faith pursuant to procedures established by
the Board of Trustees.
Short-term securities having a remaining maturity of sixty days or less are
valued at amortized cost which approximates market value.
(b) Securities Transactions and Investment Income: Securities transactions
are recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income is recognized on the
accrual basis.
(c) Dividends to Shareholders: Dividends and distributions payable to
shareholders are recorded on the ex-dividend date. With respect to all
Portfolios, dividends from net investment income and 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.
(d) 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 its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Each Portfolio is
treated as a separate entity for the purpose of determining such compliance.
(e) 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.
(f) Other: These financial statements have been prepared using estimates and
assumptions that affect the reported amounts therein. Actual results may differ
from those estimates.
NOTE 3--Investment Management Fees and Other Transactions with Affiliates:
(a) Investment Management Fees: Fees incurred by each Portfolio, pursuant to
the provisions of its Investment Management Agreement with Fred Alger
Management, Inc. ("Alger Management"), are payable monthly and are computed
based on the value of the average daily net assets of each Portfolio at the
following annual rates:
Growth Portfolio............................. .75%
Small Cap Portfolio.......................... .85
MidCap Growth Portfolio...................... .80
Capital Appreciation Portfolio............... .85
(b) Brokerage Commissions: During the six months ended April 30, 1999, the
Growth Portfolio, the Small Cap Portfolio, the MidCap Growth Portfolio and the
Capital Appreciation Portfolio paid Fred Alger & Company, Incorporated ("Alger
Inc."), the Fund's distributor, commissions of $50,068, $54,979, $13,112 and
$14,592, respectively, in connection with securities transactions.
(c) Transfer Agent Fees: Alger Shareholder Services, Inc. ("Alger Services"),
an affiliate of Alger Management, serves as transfer agent for the Fund. During
the six months ended April 30, 1999, each Portfolio incurred fees of $1,250 for
services provided by Alger Services.
(d) Other Transactions With Affiliates: Certain trustees and officers of the
Fund are directors and officers of Alger Management, Alger Inc. and Alger
Services. At April 30, 1999, Alger Management and its affiliates owned 817,873
shares, 306,586 shares, 689,695 shares and 583,595 shares of the Growth
Portfolio, the Small Cap Portfolio, the MidCap Growth Portfolio and the Capital
Appreciation Portfolio, respectively.
NOTE 4--Securities Transactions:
The following summarizes the securities transactions by the Fund, other than
short-term securities, for the six months ended April 30, 1999:
Purchases Sales
----------- -----------
Growth Portfolio.................. $44,606,574 $32,465,702
Small Cap Portfolio............... 38,835,505 37,750,772
MidCap Growth Portfolio........... 11,218,573 9,938,961
Capital Appreciation Portfolio.... 23,939,200 8,025,906
18
<PAGE>
THE ALGER RETIREMENT FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Note 5--Lines of Credit:
The Capital Appreciation Portfolio has both committed and uncommitted lines
of credit with banks where it may borrow up to 1/3 of the value of its assets,
as defined, to purchase additional securities. To the extent the Capital
Appreciation Portfolio borrows under these lines, the Capital Appreciation
Portfolio must pledge securities with a total value of at least twice the amount
borrowed. Such borrowings have variable interest rates and are payable on
demand. For the six months ended April 30, 1999, the Capital Appreciation
Portfolio had borrowings which averaged $84,768 at a weighted average interest
rate of 5.55%.
Note 6--Share Capital:
The Fund has an unlimited number of authorized shares of beneficial interest
of $.001 par value which are presently divided into four classes of shares.
During the six months ended April 30, 1999, transactions of shares of
beneficial interest were as follows:
Shares Amount
--------- -----------
Growth Portfolio
Shares sold 1,143,973 $17,659,315
Shares redeemed (482,328) (7,447,587)
--------- -----------
Net increase 661,645 $10,211,728
========= ===========
Small Cap Portfolio
Shares sold 366,871 $ 7,419,817
Shares redeemed (256,599) (5,222,416)
--------- -----------
Net increase 110,272 $ 2,197,401
========= ===========
MidCap Growth Portfolio
Shares sold 601,138 $ 6,181,569
Shares redeemed (422,347) (4,035,803)
--------- -----------
Net increase 178,791 $ 2,145,766
========= ===========
Capital Appreciation Portfolio
Shares sold 1,622,567 $22,249,353
Shares redeemed (363,372) (4,401,434)
--------- -----------
Net increase 1,259,195 $17,847,919
========= ===========
During the year ended October 31, 1998, transactions of shares of beneficial
interest were as follows:
Shares Amount
--------- -----------
Growth Portfolio
Shares sold 1,675,676 $20,656,143
Dividends reinvested 234,212 3,061,151
--------- -----------
1,909,888 23,717,294
Shares redeemed (785,459) (9,555,550)
--------- -----------
Net increase 1,124,429 $14,161,744
========= ===========
Small Cap Portfolio
Shares sold 548,888 $10,042,134
Dividends reinvested 135,827 2,664,934
--------- -----------
684,715 12,707,068
Shares redeemed (605,971) (11,031,299)
--------- -----------
Net increase 78,744 $ 1,675,769
========= ===========
MidCap Growth Portfolio
Shares sold 67,899 $ 636,842
Dividends reinvested 225,973 2,207,761
--------- -----------
293,872 2,844,603
Shares redeemed (105,276) (1,112,023)
--------- -----------
Net increase 188,596 $ 1,732,580
========= ===========
Capital Appreciation Portfolio
Shares sold 195,667 $ 1,756,200
Dividends reinvested 154,943 1,453,369
--------- -----------
350,610 3,209,569
Shares redeemed (194,575) (1,870,360)
--------- -----------
Net increase 156,035 $ 1,339,209
========= ===========
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