Fellow Shareholders:
May 15, 2000
As winter turned to spring and temperatures rose, the U.S. economy
continued to sizzle, a fact that remained more a worry than a comfort for
financial markets. Inflation-adjusted GDP growth rose at a much stronger than
expected rate of 7.3% in the fourth quarter of 1999, and was expected to exceed
5% in the first three months of 2000.
Market watchers are wary of such strength because it can stimulate high
inflation and prompt the Federal Reserve to raise interest rates in an effort to
slow economic growth. This concern was a principal cause of the sharp volatility
in stock prices through the first four months of 2000. It also added to the
bearish tone in March when investors decided that the valuations of technology
stocks had become too high and sent the Nasdaq Composite Index tumbling. Federal
Reserve policy, amid signs of higher wage and price inflation, occupied center
stage during April. For example, stronger than expected inflation in the March
Consumer Price Index released on April 14 sent equities tumbling that day. At
the end of April, the Nasdaq Composite stood at 3861, down 24% from its March 10
high of 5049. Other major indexes were also lower, with the Dow Jones Industrial
Average down 6.19% and the S&P 500 down 0.78% from the end of 1999.
That was in contrast to the uptrend in November and December. Although
inflation pressures were on investors' minds as 1999 drew to a close, the stock
market continued to rally with few significant setbacks. Technology and
small-cap stocks surged. The technology-dominated Nasdaq Composite Index posted
a 37.18% gain for November and December and an 85.59% advance for the full year.
The S&P 500 gained 8.04% in the last two months and 21.04% for the year. Many
foreign markets turned in even stronger performances, with the Morgan Stanley
Capital International EAFE Index gaining 25.27% during 1999. Signs that much of
the developed world had entered an expansionary cycle and many emerging nations
were rebounding from the crisis of 1997 and 1998 bolstered international
markets.
Fixed income was one category that produced mostly negative returns for
1999 as the Federal Reserve repeatedly nudged short-term interest rates higher
in an attempt to slow the economy. Continued Federal Reserve pressure lifted the
3-month yield to 5.65% at the end of April 2000. However, the Treasury's bond
repurchase program along with some "flight to quality" from the equity markets
helped longer maturities, with the 30-year Treasury bond yielding 5.96% at the
end of April, down from 6.48% at the end of 1999.
LOOKING AHEAD
Although no one can predict the future, we have been encouraged by the
market's ability to bounce back from sharp declines in recent years. We expect
volatility to remain at historically high levels until it becomes clear that the
Federal Reserve has completed the current round of tightening. An end to Federal
Reserve rate interventions should be positive for the market, leading to reduced
volatility and more bullish sentiment. As a result, buyers should return in
force and send the market higher. A market rebound will be led, we believe, by
the tech sector since it offers great opportunities for future earnings growth.
Because our funds remain heavily invested in this sector, we hope to recover the
losses sustained during the market downdraft of the last three months.
Respectfully submitted,
/s/ David D. Alger
------------------
David D. Alger
President
<PAGE>
--------------------------------------------------------------------------------
THE ALGER RETIREMENT FUND
ALGER GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2000
SHARES COMMON STOCKS--90.7% VALUE
------ -----
ADVERTISING--1.2%
15,300 Omnicom Group Inc. ............................... $1,393,255
----------
AEROSPACE--4.0%
30,150 Honeywell International Inc.+ .................... 1,688,400
46,300 United Technologies Corp. ........................ 2,879,280
----------
4,567,680
----------
AUTOMOTIVE--1.8%
50,800 Harley Davidson, Inc ............................. 2,022,475
----------
BIO-TECHNOLOGY--2.5%
52,100 Amgen Inc.* ...................................... 2,917,600
----------
BROADCASTING--1.1%
16,900 Clear Channel
Communications Inc.* ............................. 1,216,800
----------
CHEMICALS--.6%
15,000 Du Pont E.I. De Nemours & Co. .................... 711,562
----------
COMMUNICATION EQUIPMENT--8.3%
58,800 Cisco Systems, Inc.* ............................. 4,076,494
14,700 Corning Inc. ..................................... 2,903,250
21,400 Motorola, Inc. ................................... 2,547,938
----------
9,527,682
----------
COMMUNICATIONS--7.8%
20,600 America Online Inc.* ............................. 1,232,138
18,528 At Home Corp., Series A*+ ........................ 345,084
34,000 AT&T Corp. Liberty Media Group, Cl. A* ........... 1,697,875
23,800 Comcast Corp. Cl. A Special ...................... 953,488
19,200 Cox Communications Inc., Cl. A*+ ................. 822,000
20,400 MCI Worldcom Inc.* ............................... 926,925
15,700 Sprint Corp. (FON Group) ......................... 965,550
22,000 Time Warner Inc.+ ................................ 1,978,625
----------
8,921,685
----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--5.7%
66,800 Dell Computer Corp.* ............................. 3,348,350
23,800 Hewlett-Packard Company .......................... 3,213,000
----------
6,561,350
----------
COMPUTER SERVICES--3.8%
8,000 CNET Networks Inc.* .............................. 276,500
19,900 eBay Inc.* ....................................... 3,167,831
6,884 Yahoo Inc.* ...................................... 896,641
----------
4,340,972
----------
COMPUTER SOFTWARE--4.9%
10,100 Aspect Development, Inc.* ........................ 698,163
15,900 Intuit Inc.* ..................................... 571,406
53,600 Microsoft Corporation* ........................... 3,738,600
7,500 Oracle Corp.* .................................... 599,531
----------
5,607,700
----------
ENERGY & ENERGY SERVICES--3.3%
84,650 Halliburton Co. .................................. 3,740,472
----------
FINANCIAL SERVICES--10.1%
4,000 American Express Company ......................... 600,250
58,100 Citigroup Inc. ................................... 3,453,319
26,500 Kansas City Southern Industries, Inc.+ ........... 1,904,688
6,300 Lehman Brothers Holdings Inc.+ ................... 516,994
5,000 Merrill Lynch & Co., Inc. ........................ 509,688
38,900 Morgan Stanley Dean Witter & Co. 2,985,575
34,700 Schwab (Charles) Corporation (The) ............... 1,544,150
----------
11,514,664
----------
FOOD CHAINS--1.4%
36,800 Safeway Inc.* .................................... 1,623,800
----------
MANUFACTURING--1.0%
24,200 Solectron Corp.* ................................. 1,132,862
----------
MEDICAL DEVICES--1.5%
29,650 Guidant Corp.* ................................... 1,701,168
----------
OIL & GAS--2.0%
29,300 Exxon Mobile Corp. ............................... 2,276,244
----------
PHARMACEUTICALS--7.4%
65,405 American Home Products Corp. ..................... 3,674,942
41,600 Warner-Lambert Co. ............................... 4,734,600
----------
8,409,542
----------
RETAILING--7.4%
25,000 Best Buy Company Inc.* ........................... 2,018,750
49,000 Costco Wholesale Corp.* .......................... 2,649,063
39,600 Home Depot, Inc. ................................. 2,220,075
29,100 Wal-Mart Stores Inc. ............................. 1,611,413
----------
8,499,301
----------
SEMICONDUCTOR CAPITAL EQUIPMENT--5.5%
41,600 Applied Materials Inc.* .......................... 4,235,400
18,100 Teradyne, Inc.* .................................. 1,991,000
----------
6,226,400
----------
2
<PAGE>
THE ALGER RETIREMENT FUND
ALGER GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
SHARES COMMON STOCKS--(CONTINUED) VALUE
------ -----
SEMICONDUCTORS--9.4%
24,400 Altera Corporation* ............................. $ 2,494,900
25,800 Intel Corp. ..................................... 3,271,763
36,700 Linear Technology Corporation ................... 2,096,488
17,900 Texas Instruments, Incorporated ................. 2,915,463
------------
10,778,614
------------
Total Common Stocks
(Cost $78,061,625) ............................ 103,691,828
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--15.9%
---------
SHORT-TERM CORPORATE
NOTES--7.0%
$ 4,000,000 GTE Funding Inc.,
6.01%, 5/25/00 ................................ 3,983,973
4,000,000 National Fuel Gas Co.,
6.07%, 5/3/00 ................................. 3,998,651
------------
Total Short-Term Corporate Notes
(Cost $7,982,624) ............................. 7,982,624
------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--3.0%
Securities Held Under Repurchase Agreements,
5.77%, 5/1/00, with State Street Bank and Trust,
dtd 4/28/00, repurchase price $3,426,647;
collateralized by Federal Home Loan Bank
(par value $3,485,000 due 11/17/03) ........... 3,425,000
------------
SHARES
-------
OTHER SHORT-TERM
INVESTMENTS--5.9%
6,728,754 Securities Lending Quality Trust
(Cost $6,728,754) (b) ......................... 6,728,754
------------
Total Short-Term Investments
(Cost $18,136,378) ............................ 18,136,378
------------
Total Investments
(Cost $96,198,003)(a) ............................. 106.6% 121,828,206
Liabilities in Excess of Other Assets ............... (6.6) (7,505,429)
----- ------------
Net Assets .......................................... 100.0% $114,322,777
===== ============
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At April 30, 2000, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $96,198,003, amounted to
$25,630,203 which consisted of aggregate gross unrealized appreciation of
$27,007,456 and aggregate gross unrealized depreciation of $1,377,253.
(b) Represents investment of cash collateral received for securities on loan.
See Notes to Financial Statements.
3
<PAGE>
THE ALGER RETIREMENT FUND
alger GROWTH Retirement PORTFOLIO
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ----------------------------------------------------------------
2000(II) 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 17.17 $ 12.37 $ 10.78 $ 9.32 $ 11.65 $ 10.38
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................... (0.01)(i) (0.05) (0.01)(i) (0.02)(i) (0.01) (0.01)
Net realized and unrealized
gain on investments ......................... 3.63 5.23 2.82 2.65 0.91 3.59
-------- -------- -------- -------- -------- --------
Total from investment
operations .............................. 3.62 5.18 2.81 2.63 0.90 3.58
Distributions from net
realized gains .............................. -- (0.38) (1.22) (1.17) (3.23) (2.31)
-------- -------- -------- -------- -------- --------
Net asset value,
end of period ............................... $ 20.79 $ 17.17 $ 12.37 $ 10.78 $ 9.32 $ 11.65
======== ======== ======== ======== ======== ========
Total Return ................................... 21.1% 42.0% 25.4% 28.8% 8.2% 37.1%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ........................... $114,323 $ 72,746 $ 40,196 $ 22,922 $ 11,325 $ 13,042
======== ======== ======== ======== ======== ========
Ratio of expenses to
average net assets ........................ 1.07% 1.07% 1.11% 1.13% 1.07% 1.11%
======== ======== ======== ======== ======== ========
Ratio of net investment
income (loss) to
average net assets ........................ (0.13%) (0.39%) (0.06%) (0.22%) (0.09%) (0.18%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate ...................... 54.05% 143.80% 130.31% 159.38% 142.83% 133.42%
======== ======== ======== ======== ======== ========
</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.
4
<PAGE>
THE ALGER RETIREMENTFUND
ALGER SMALL CAP RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
SHARES COMMON STOCKS--78.8% VALUE
------ -----
ADVERTISING--.7%
21,200 Young & Rubicam Inc. ............................ $ 1,180,575
------------
BIO-TECHNOLOGY--4.1%
86,500 Cygnus, Inc.* ................................... 1,081,250
10,000 Medimmune Inc.* ................................. 1,599,375
45,200 Sepracor Inc.* .................................. 4,158,400
------------
6,839,025
------------
BROADCASTING--1.3%
25,000 Adelphia Business
Solutions Inc., Cl. A* ........................ 875,000
34,800 Citadel Communications Corp.* ................... 1,359,375
------------
2,234,375
------------
BUSINESS SERVICES--8.6%
50,700 Aspect Communications Corp.* .................... 1,799,850
20,300 BISYS Group Inc.* ............................... 1,270,019
75,000 eSpeed Inc. Cl. A* .............................. 3,543,750
98,500 Getty Images Inc.* .............................. 2,991,937
65,000 Globix Corp.* ................................... 1,462,500
30,000 ImageX.com Inc.* ................................ 228,750
50,000 TeleTech Holdings Inc.* ......................... 1,631,250
50,000 The Management Network Group Inc.* .............. 887,500
20,000 Vitria Technology Inc.* ......................... 738,750
------------
14,554,306
------------
COMMUNICATION EQUIPMENT--6.4%
23,200 Alpha Industries Inc.* .......................... 1,206,400
23,000 Aware Inc.* ..................................... 897,000
40,000 Commscope Inc.* ................................. 1,900,000
25,000 Efficient Networks Inc.* ........................ 1,643,750
28,000 Entrust Technologies Inc.* ...................... 1,375,500
89,000 Globecomm Systems Inc.* ......................... 1,679,875
75,000 Westell Technologies Inc. Cl. A* ................ 2,132,813
------------
10,835,338
------------
COMMUNICATIONS--9.2%
31,200 AirGate PCS Inc.* ............................... 2,675,400
55,000 Alamosa PCS Holdings Inc.* ...................... 1,567,500
30,000 Emmis Communications
Corp., Cl. A* ................................. 1,275,000
88,000 ITC DeltaCom Inc.* .............................. 2,893,000
61,000 Primus Telecommunications
Group Incorporated* ........................... 2,001,563
50,000 RealNetworks Inc.* .............................. 2,381,250
50,400 Time Warner Telecom Inc., Cl. A* ................ 2,759,400
------------
15,553,113
------------
COMPUTER RELATED & BUSINESS
EQUIPMENT--5.4%
70,400 Antec Corp.* .................................... 3,784,000
26,000 Harmonic Inc.*+ ................................. 1,919,125
28,200 Newport Corp.* .................................. 3,421,013
------------
9,124,138
------------
COMPUTER SERVICES--5.9%
25,000 CNET Networks Inc.* ............................. 864,062
35,300 Critical Path Inc.* ............................. 2,051,813
47,000 FactSet Research Systems Inc. ................... 1,351,250
59,500 Insituform Technologies Inc., Cl. A * ........... 1,996,969
16,000 ISS Group, Inc.* ................................ 1,447,000
10,000 QRS Corp.* ...................................... 330,000
39,900 Vignette Corp.* ................................. 1,922,681
------------
9,963,775
------------
COMPUTER SOFTWARE--6.5%
43,200 BSQUARE Corp.* .................................. 756,000
55,000 Business Objects ADS* ........................... 5,383,125
57,400 Centra Software Inc.* ........................... 530,950
10,000 Cylink Corporation .............................. 143,125
19,500 Intuit Inc.* .................................... 700,781
21,000 Liberate Technologies * ......................... 821,625
10,000 MetaSolv Software Inc.* ......................... 341,250
11,600 Micromuse Inc.* ................................. 1,138,250
14,000 Phone.com Inc.* ................................. 1,176,000
------------
10,991,106
------------
CONSUMER PRODUCTS--.7%
35,000 Mettler-Toledo International Inc.* .............. 1,207,500
------------
ELECTRONICS--2.0%
40,000 Hadco Corp.* .................................... 3,292,500
------------
ENERGY & ENERGY
SERVICES--2.1%
15,100 B.J. Services Company* .......................... 1,060,775
85,700 Rowan Companies* ................................ 2,394,244
------------
3,455,019
------------
FINANCIAL SERVICES--1.3%
57,600 Investment Technology Group* .................... 2,160,000
------------
FOODS & BEVERAGES--.2%
10,000 Beringer Wine Estates Holdings, Cl. B* .......... 361,250
------------
HEALTH CARE--1.2%
45,000 Cytyc Corporation* .............................. 2,013,750
------------
5
<PAGE>
THE ALGER RETIREMENT FUND
ALGER SMALL CAP RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
SHARES COMMON STOCKS--(CONTINUED) VALUE
------ -----
INDUSTRIAL EQUIPMENT--1.0%
17,700 Waters Corp.* ................................... $ 1,677,075
------------
MEDICAL SERVICES--2.0%
88,000 Hooper Holmes Inc. .............................. 1,529,000
60,000 Province Healthcare Co.* ........................ 1,732,500
------------
3,261,500
------------
OIL & GAS--.8%
108,800 Varco International Inc.* ....................... 1,360,000
------------
PHARMACEUTICALS--3.8%
66,550 Alza Corp.* ..................................... 2,932,359
70,000 King Pharmaceuticals Inc.* ...................... 3,456,250
------------
6,388,609
------------
RESTAURANTS & LODGING--1.1%
57,500 Outback Steakhouse, Inc.* ....................... 1,883,125
------------
RETAILING--3.0%
47,000 BJ's Wholesale Club Inc.* ....................... 1,665,563
37,400 Linens'n Things Inc.* ........................... 1,154,725
20,000 Michaels Stores Inc.* ........................... 788,750
35,000 Tweeter Home Entertainment Group Inc.* .......... 1,290,625
10,000 Valuevision International Inc., Cl. A* .......... 199,375
------------
5,099,038
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--6.2%
30,000 ASM Lithography Holding NV* ..................... 1,200,000
90,000 Atmi Inc.* ...................................... 3,465,000
40,000 Lam Research Corp.* ............................. 1,835,000
49,300 Pri Automation, Inc.* ........................... 3,937,837
------------
10,437,837
------------
SEMICONDUCTORS--3.9%
39,400 Dallas Semiconductor Corp. ...................... 1,691,738
16,400 Lattice Semiconductor Corp.* .................... 1,104,950
59,250 Microchip Technology Incorporated* .............. 3,677,202
------------
6,473,890
------------
TRANSPORTATION--1.4%
69,150 Forward Air Corporation* ........................ 2,377,031
------------
Total Common Stocks
(Cost $127,615,583) ........................... 132,723,875
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--18.2%
---------
SHORT-TERM CORPORATE NOTES--13.6%
$ 5,000,000 Cogentrix of Richmond Inc.,
6.05%, 5/25/00 ................................ 4,979,833
5,000,000 Dow Chemical Co.,
5.99%, 5/3/00 ................................. 4,998,336
4,000,000 GTE Funding Inc.,
6.01%, 5/25/00 ................................ 3,983,973
4,000,000 National Fuel Gas Co.,
6.07%, 5/3/00 ................................. 3,998,652
5,000,000 Triple-A One Funding Corporation,
6.05%, 5/3/00 (a) ............................. 4,998,319
------------
Total Short-Term Corporate Notes
(Cost $22,959,113) ............................ 22,959,113
------------
SECURITIES HELD UNDER
REPURCHASE AGREEMENTS--4.6%
Securities Held Under Repurchase Agreements,
5.77%, 5/1/00, with State Street Bank and Trust,
dtd 4/28/00, repurchase price $7,728,714;
collateralized by Federal Home Loan Bank
(par value $7,860,000 due 11/17/03) ........... 7,725,000
------------
Total Short-Term Investments
(Cost $30,684,113) ............................ 30,684,113
------------
Total Investments
(Cost $158,299,696)(b) .............................. 97.0% 163,407,988
Other Assets in Excess of Liabilities ............... 3.0 5,063,012
----- ------------
Net Assets .......................................... 100.0% $168,471,000
===== ============
* Non-income producing security.
+ Securities partially or fully on loan.
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional
buyers.
(b) At April 30, 2000, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $158,299,696, amounted to
$5,108,292 which consisted of aggregate gross unrealized appreciation of
$23,310,536 and aggregate gross unrealized depreciation of $18,202,244.
See Notes to Financial Statements.
6
<PAGE>
THE ALGER RETIREMENT FUND
ALGER SMALL CAP RETIREMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
-------- ----------------------------------------------------------------
2000(II) 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......................... $ 22.82 $ 16.37 $ 18.00 $ 17.87 $ 17.92 $ 10.83
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................... (0.05)(i) (0.12)(i) (0.08) (0.10) (0.05) (0.07)
Net realized and unrealized
gain on investments ......................... 4.31 8.65 0.02 3.13 1.72 7.23
-------- -------- -------- -------- -------- --------
Total from investment
operations .............................. 4.26 8.53 (0.06) 3.03 1.67 7.16
Distributions from net
realized gains .............................. -- (2.08) (1.57) (2.90) (1.72) (0.07)
-------- -------- -------- -------- -------- --------
Net asset value,
end of period ............................... $ 27.08 $ 22.82 $ 16.37 $ 18.00 $ 17.87 $ 17.92
======== ======== ======== ======== ======== ========
Total Return ................................... 18.7% 52.7% (1.8%) 19.0% 9.2% 66.2%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ........................... $168,471 $ 63,711 $ 29,938 $ 31,499 $ 30,043 $ 23,002
======== ======== ======== ======== ======== ========
Ratio of expenses to
average net assets ........................ 1.19% 1.02% 1.03% 1.06% 1.05% 1.13%
======== ======== ======== ======== ======== ========
Ratio of net investment
income (loss) to
average net assets ........................ (0.33%) (0.57%) (0.55%) (0.62%) (0.54%) (0.73%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate ...................... 90.59% 193.32% 169.97% 134.25% 182.49% 104.84%
======== ======== ======== ======== ======== ========
</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.
7
<PAGE>
THE ALGER RETIREMENT FUND
ALGER MIDCAP GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
SHARES COMMON STOCKS--86.3% VALUE
------ -----
ADVERTISING--2.3%
35,000 Young & Rubicam Inc. ............................ $ 1,949,063
------------
AUTOMOTIVE--2.0%
41,600 Harley Davidson, Inc. ........................... 1,656,200
------------
BUSINESS SERVICES--5.4%
2,800 Ariba Inc.* ..................................... 207,725
5,400 Diamond Technology Partners Inc., Cl. A* ........ 427,275
6,100 eSpeed Inc., Cl. A* ............................. 288,225
74,850 Fiserv Inc. * ................................... 3,438,422
------------
4,361,647
------------
COMMUNICATION
EQUIPMENT--1.4%
17,100 Efficient Networks Inc.* ........................ 1,124,325
------------
COMMUNICATIONS--.4%
11,200 Broadwing Inc.* ................................. 317,100
------------
COMPUTER SERVICES--5.8%
8,800 Amdocs Limited* ................................. 595,650
56,600 CNET Networks Inc.* ............................. 1,956,237
11,600 eBay Inc.* ...................................... 1,846,575
2,300 Inktomi Corp.* .................................. 354,056
------------
4,752,518
------------
COMPUTER SOFTWARE--3.2%
13,200 Aspect Development, Inc.* ....................... 912,450
9,600 Csg Systems International Inc.* ................. 442,800
34,900 Intuit Inc.* .................................... 1,254,219
------------
2,609,469
------------
COMPUTER TECHNOLOGY--.5%
9,650 Jabil Circuit Inc.* ............................. 395,047
------------
ELECTRONICS--1.3%
12,700 Hadco Corp.* .................................... 1,045,369
------------
ENERGY & ENERGY
SERVICES--6.6%
27,200 B.J. Services Company* .......................... 1,910,800
16,500 Devon Energy Corporation ........................ 795,094
12,200 EOG Resources Inc. .............................. 303,475
59,950 Nabors Industries Inc.* ......................... 2,364,277
------------
5,373,646
------------
FINANCIAL SERVICES--5.9%
12,450 Investment Technology Group* .................... 466,875
28,700 Kansas City Southern
Industries Inc. ................................. 2,062,813
4,800 Lehman Brothers Holdings Inc. ................... 393,900
43,500 Paine Webber Group Inc. ......................... 1,908,562
------------
4,832,150
------------
FOODS & BEVERAGES--2.1%
56,300 Starbucks Corp.* ................................ 1,702,195
------------
INDUSTRIAL EQUIPMENT--5.8%
19,500 Cooper Cameron Corp.* ........................... 1,462,500
4,500 SPX Corp.* ...................................... 494,438
28,800 Waters Corp.* ................................... 2,728,800
------------
4,685,738
------------
MANUFACTURING--4.1%
28,800 Dover Corp. ..................................... 1,463,400
26,500 Millipore Corporation ........................... 1,899,719
------------
3,363,119
------------
PAPER PACKAGING &
FOREST PRODUCTS--1.2%
16,800 Sealed Air Corporation* ......................... 934,500
------------
PHARMACEUTICALS--9.8%
7,100 Allergan Inc. ................................... 418,012
57,150 Alza Corp.* ..................................... 2,518,172
31,100 Forest Laboratories, Inc.* ...................... 2,614,344
48,400 King Pharmaceuticals Inc.* ...................... 2,389,750
------------
7,940,278
------------
RESTAURANTS &
LODGING--3.4%
83,800 Outback Steakhouse, Inc.* ....................... 2,744,450
------------
RETAILING--5.5%
21,700 Bed Bath & Beyond Inc.* ......................... 796,119
32,600 Best Buy Company Inc.* .......................... 2,632,450
14,000 BJ's Wholesale Club Inc.* ....................... 496,125
30,500 Family Dollar Stores Inc. ....................... 581,406
------------
4,506,100
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--4.4%
8,400 ASM Lithography Holding NV* ..................... 336,000
26,900 Atmi Inc.* ...................................... 1,035,650
20,213 Teradyne, Inc.* ................................. 2,223,430
------------
3,595,080
------------
SEMICONDUCTORS--15.2%
19,500 Altera Corporation* ............................. 1,993,875
15,800 Amkor Technology, Inc.* ......................... 966,762
48,600 Linear Technology Corporation ................... 2,776,275
35,500 Maxim Integrated Products, Inc.* ................ 2,300,844
39,800 Microchip Technology Incorporated* .............. 2,470,088
25,100 Xilinx, Inc.* ................................... 1,838,575
------------
12,346,419
------------
Total Common Stocks
(Cost $58,482,287) ............................ 70,234,413
------------
8
<PAGE>
THE ALGER RETIREMENT FUND
ALGER MIDCAP GROWTH RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--10.7% VALUE
--------- -----
SHORT-TERM CORPORATE
NOTES--7.6%
$ 2,000,000 Merrill Lynch & Co., Inc.,
6.00%, 5/11/00 ................................ $ 1,996,667
2,500,000 Transamerica Corporation,
6.05%, 5/26/00 ................................ 2,489,496
1,700,000 Triple-A One Funding Corporation,
6.05%, 5/3/00 (a) ............................. 1,699,429
------------
Total Short-Term Corporate Notes
(Cost $6,185,592) ............................. 6,185,592
------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--3.1%
Securities Held Under Repurchase
Agreements, 5.77%, 5/1/00, with
State Street Bank and Trust, dtd
4/28/00, repurchase price
$2,526,214; collateralized by
Federal Home Loan Mortgage
Corp. (par value $2,585,000
due 4/19/02) .................................. 2,525,000
------------
Total Short-Term Investments
(Cost $8,710,592) ............................. 8,710,592
------------
Total Investments
(Cost $67,192,879)(b) ............................. 97.0% 78,945,005
Other assets in excess of liabilities ............... 3.0 2,483,016
----- ------------
Net Assets .......................................... 100.0% $ 81,428,021
===== ============
* Non-income producing security.
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional
buyers.
(b) At April 30, 2000, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $67,192,879, amounted to
$11,752,126 which consisted of aggregate gross unrealized appreciation of
$14,447,789 and aggregate gross unrealized depreciation of $2,695,663.
See Notes to Financial Statements.
9
<PAGE>
THE ALGER RETIREMENT FUND
ALGER MIDCAP GROWTH RETIREMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ----------------------------------------------------------------
2000(II) 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......................... $ 11.80 $ 8.83 $ 11.36 $ 14.48 $ 16.34 $ 11.66
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................... (0.04)(i) (0.05)(i) (0.06)(i) (0.15) (0.07) (0.07)
Net realized and unrealized
gain on investments ......................... 4.87 3.78 1.78 3.46 1.09 6.07
-------- -------- -------- -------- -------- --------
Total from investment
operations .............................. 4.83 3.73 1.72 3.31 1.02 6.00
Distributions from net
realized gains .............................. -- (0.76) (4.25) (6.43) (2.88) (1.32)
-------- -------- -------- -------- -------- --------
Net asset value,
end of period ............................... $ 16.63 $ 11.80 $ 8.83 $ 11.36 $ 14.48 $ 16.34
======== ======== ======== ======== ======== ========
Total Return ................................... 40.9% 42.4% 11.5% 28.6% 6.2% 54.1%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ........................... $ 81,428 $ 28,233 $ 6,667 $ 6,435 $ 9,726 $ 10,914
======== ======== ======== ======== ======== ========
Ratio of expenses to
average net assets ........................ 1.21% 1.23% 1.22% 1.31% 1.16% 1.23%
======== ======== ======== ======== ======== ========
Ratio of net investment
income (loss) to
average net assets ........................ (0.47%) (0.49%) (0.52%) (0.79%) (0.45%) (0.69%)
======== ======== ======== ======== ======== ========
Portfolio Turnover Rate ...................... 74.27% 165.68% 184.23% 183.31% 170.21% 132.74%
======== ======== ======== ======== ======== ========
</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.
10
<PAGE>
THE ALGER RETIREMENT FUND
ALGER CAPITAL APPRECIATION RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 2000
SHARES COMMON STOCKS--87.0% VALUE
------ -----
ADVERTISING--.8%
25,000 Omnicom Group Inc. .............................. $ 2,276,563
------------
BIO-TECHNOLOGY--3.1%
112,300 Amgen Inc.*+ .................................... 6,288,800
25,000 Sepracor Inc*+ .................................. 2,300,000
------------
8,588,800
------------
BROADCASTING--.9%
39,800 EchoStar Communications Corp., Cl. A*+ .......... 2,534,763
------------
BUSINESS SERVICES--3.1%
44,000 Ariba Inc.*+ .................................... 3,264,250
80,000 BEA Systems Inc.*+ .............................. 3,860,000
40,000 Vitria Technology Inc.*+ ........................ 1,477,500
------------
8,601,750
------------
COMMUNICATION
EQUIPMENT--11.4%
132,200 Cisco Systems, Inc.* ............................ 9,165,177
8,000 Corning Inc.+ ................................... 1,580,000
30,000 Efficient Networks Inc.*+ ....................... 1,972,500
14,300 Entrust Technologies Inc.* ...................... 702,488
93,800 Ericsson (Lm) Telephone Co. ADR+ ................ 8,295,438
28,500 Motorola, Inc. .................................. 3,393,281
20,000 PMC-Sierra Inc.* ................................ 3,837,500
13,200 SDL Inc.* ....................................... 2,574,000
------------
31,520,384
------------
COMMUNICATIONS--11.7%
128,500 America Online Inc.* ............................ 7,685,906
88,400 AT&T Corp. Liberty Media Group, Cl. A* .......... 4,414,475
47,900 Comcast Corp., Cl. A Special .................... 1,918,994
49,000 Cox Communications Inc., Cl. A*+ ................ 2,097,812
102,000 McLeodUSA, Inc., Cl. A*+ ........................ 2,550,000
11,000 Nextel Communications Inc., Cl. A*+ ............. 1,203,812
61,300 Qualcomm Inc.* .................................. 6,647,219
103,000 Sprint Corp. (PCS Group)*+ ...................... 5,665,000
------------
32,183,218
------------
COMPUTER RELATED &
BUSINESS EQUIPMENT--6.2%
47,150 Hewlett-Packard Company ......................... 6,365,250
26,000 Network Appliance Inc.*+ ........................ 1,922,375
96,800 Sun Microsystems Inc.*+ ......................... 8,899,550
------------
17,187,175
------------
COMPUTER SERVICES--12.5%
63,000 Amdocs Limited*+ ................................ 4,264,313
50,500 CNET Networks Inc* .............................. 1,745,406
90,400 eBay Inc.*+ ..................................... 14,390,550
6,000 Inktomi Corp.* .................................. 923,625
30,000 ISS Group, Inc.* ................................ 2,713,125
22,200 Mercury Interactive Corp.* ...................... 1,998,000
65,300 Vignette Corp.* ................................. 3,146,644
40,304 Yahoo Inc.* ..................................... 5,249,596
------------
34,431,259
------------
COMPUTER SOFTWARE--8.6%
40,000 Business Objects ADS*+ .......................... 3,915,000
24,200 Intuit Inc.* .................................... 869,688
32,100 I2 Technologies, Inc.*+ ......................... 4,148,925
24,500 Liberate Technologies* .......................... 958,562
16,000 Microsoft Corporation* .......................... 1,116,000
53,000 Oracle Corp.* ................................... 4,236,687
42,900 Phone.com Inc.*+ ................................ 3,603,600
46,000 Veritas Software Corp.*+ ........................ 4,934,219
------------
23,782,681
------------
ENERGY & ENERGY
SERVICES--2.2%
136,250 Halliburton Co.+ ................................ 6,020,547
------------
FINANCIAL SERVICES--2.6%
118,750 Citigroup Inc. .................................. 7,058,203
------------
MEDICAL SERVICES--1.0%
44,000 PE Corp.- PE Biosystems Group ................... 2,640,000
------------
PHARMACEUTICALS--3.6%
84,650 American Home Products Corp. .................... 4,756,272
46,650 Warner-Lambert Co. .............................. 5,309,353
------------
10,065,625
------------
RETAILING--3.2%
16,800 Costco Wholesale Corp.* ......................... 908,250
118,800 Home Depot, Inc. ................................ 6,660,225
23,800 Wal-Mart Stores Inc. ............................ 1,317,925
------------
8,886,400
------------
SEMICONDUCTOR
CAPITAL EQUIPMENT--6.2%
110,000 Applied Materials Inc.* ......................... 11,199,375
81,000 ASM Lithography Holding NV*+ .................... 3,240,000
25,300 Teradyne, Inc.* ................................. 2,783,000
------------
17,222,375
------------
11
<PAGE>
THE ALGER RETIREMENT FUND
ALGER CAPITAL APPRECIATION RETIREMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 2000
SHARES COMMON STOCKS--(CONTINUED) VALUE
------ -----
SEMICONDUCTORS--9.9%
70,500 Altera Corporation* ............................. $ 7,208,625
12,600 Broadcom Corp., Cl. A* .......................... 2,171,925
106,600 Linear Technology Corporation+ .................. 6,089,525
53,267 Texas Instruments, Incorporated ................. 8,675,863
45,000 Vitesse Semiconductor Corp.* .................... 3,062,812
------------
27,208,750
------------
Total Common Stocks
(Cost $216,695,502) ........................... 240,208,493
------------
PREFERRED STOCK--1.1%
COMMUNICATIONS
54,300 Nokia Corporation, ADR+
(Cost $2,625,410) ............................. 3,088,313
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--37.2%
---------
SHORT-TERM CORPORATE
NOTES--7.8%
$10,000,000 Honeywell International Inc.,
5.98%, 5/5/2000 ............................... 9,993,356
4,500,000 Merrill Lynch & Co., Inc.,
6.00%, 5/11/2000 .............................. 4,492,500
7,000,000 National Fuel Gas Co.,
6.07%, 5/3/2000 ............................... 6,997,639
------------
Total Short-Term Corporate Notes
(Cost $21,483,495) ............................ 21,483,495
------------
SECURITIES HELD UNDER
REPURCHASE
AGREEMENTS--3.3%
Securities Held Under Repurchase Agreement,
5.77%, 5/1/00, with State Street Bank and Trust,
dtd 4/28/00, repurchase price $9,054,352;
collateralized by Federal Home Loan Bank
(par value $9,210,000 due 11/17/03) ........... 9,050,000
------------
SHARES
-------
OTHER SHORT-TERM
INVESTMENTS--26.1%
72,221,441 Securities Lending Quality Trust
(Cost $72,221,441) (b) ........................ 72,221,441
------------
Total Short-Term Investments
(Cost $102,754,936) ........................... 102,754,936
------------
Total Investments
(Cost $322,075,848)(a) ............................ 125.3% 346,051,742
Liabilities in Excess of Other Assets ............... (25.3) (69,964,211)
----- ------------
Net Assets .......................................... 100.0% $276,087,531
===== ============
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At April 30, 2000, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $322,075,848, amounted to
$23,975,894 which consisted of aggregate gross unrealized appreciation of
$39,642,292 and aggregate gross unrealized depreciation of $15,666,398.
(b) Represents investment of cash collateral received for securities on loan.
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>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, -----------------------------------------------------------------------
2000(II) 1999 1998 1997 1996 1995
---------- ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ...... $ 16.19 $ 8.98 $ 9.70 $ 9.88 $ 12.72 $ 10.08
---------- ---------- -------- -------- -------- --------
Net investment
income (loss) ............ (0.03)(ii) (0.09)(ii) (0.08)(ii) (0.10)(ii) (0.07) (0.19)
Net realized and unrealized
gain on investments ...... 4.80 7.63 2.96 2.51 0.83 5.30
---------- ---------- -------- -------- -------- --------
Total from investment
operations ............. 4.77 7.54 2.88 2.41 0.76 5.11
Distributions from
net realized gains ....... -- (0.33) (3.60) (2.59) (3.60) (2.47)
---------- ---------- -------- -------- -------- --------
Net asset value,
end of period ............ $ 20.96 $ 16.19 $ 8.98 $ 9.70 $ 9.88 $ 12.72
========== ========== ======== ======== ======== ========
Total Return ................ 29.4% 84.3% 28.1% 26.1% 6.1% 54.4%
========== ========== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted) ........ $ 276,088 $ 96,711 $ 5,587 $ 4,520 $ 6,703 $ 8,116
========== ========== ======== ======== ======== ========
Ratio of expenses excluding
interest to average
net assets ............. 1.15% 1.28% 1.37% 1.47% 1.37% 1.43%
========== ========== ======== ======== ======== ========
Ratio of expenses including
interest to average
net assets ............. 1.15% 1.29% 1.44% 1.62% 1.44% 2.70%
========== ========== ======== ======== ======== ========
Ratio of net investment
income (loss) to
average net assets ..... (0.29%) (0.59%) (0.79%) (1.02%) (0.94%) (2.32%)
========== ========== ======== ======== ======== ========
Portfolio Turnover Rate ..... 68.96% 155.40% 177.09% 159.56% 203.46% 188.53%
========== ========== ======== ======== ======== ========
Amount of debt outstanding
at end of period ......... -- -- -- $127,000 -- $302,600
========== ========== ======== ======== ======== ========
Average amount of debt
outstanding during
the period ............... -- $ 42,036 $ 49,890 $127,915 $ 62,130 $939,600
========== ========== ======== ======== ======== ========
Average daily number of
shares outstanding
during the period ........ 10,128,366 2,470,314 505,939 511,947 595,051 565,805
========== ========== ======== ======== ======== ========
Average amount of debt
per share during
the period ............... -- $ 0.02 $ 0.10 $ 0.25 $ 0.10 $ 1.66
========== ========== ======== ======== ======== ========
</TABLE>
(i) Prior to April 12, 1996, the Alger Capital Appreciation Retirement
Portfolio was the Alger Defined Contribution Leveraged AllCap Portfolio.
(ii) Amount was computed based on average shares outstanding during the
peroid.
(iii) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
13
<PAGE>
THE ALGER RETIREMENT FUND
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
April 30, 2000
<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 .................... $121,828,206 $163,407,988 $78,945,005 $346,051,742
Cash ............................................................ 24,013 35,130 29,252 25,694
Receivable for investment securities sold ....................... 1,095,835 6,315,327 2,137,636 6,690,760
Receivable for shares of beneficial interest sold ............... 95,205 431,146 879,543 835,349
Dividends and interest receivable ............................... 23,108 3,714 2,672 40,009
Prepaid expenses ................................................ 19,594 11,861 9,643 19,904
------------ ------------ ----------- ------------
Total Assets .................................................. 123,085,961 170,205,166 82,003,751 353,663,458
------------ ------------ ----------- ------------
LIABILITIES:
Payable for securities loaned ................................... 6,728,754 -- -- 72,221,441
Payable for investment securities purchased ..................... 1,796,648 1,235,938 390,955 4,813,508
Payable for shares of beneficial interest redeemed .............. 27,961 184,387 48,547 10,045
Accrued investment management fees .............................. 68,615 115,257 49,150 188,514
Accrued expenses ................................................ 141,206 198,584 87,078 342,419
------------ ------------ ----------- ------------
Total Liabilities ............................................. 8,763,184 1,734,166 575,730 77,575,927
------------ ------------ ----------- ------------
NET ASSETS ...................................................... $114,322,777 $168,471,000 $81,428,021 $276,087,531
============ ============ =========== ============
Net Assets Consist of:
Paid-in capital ............................................... $ 72,617,372 $148,108,138 $65,058,098 $236,287,396
Undistributed net investment income
(accumulated loss) ......................................... (411,241) (1,130,325) (438,322) (955,143)
Undistributed net realized gain ............................... 16,486,443 16,384,895 5,056,119 16,779,384
Net unrealized appreciation ................................... 25,630,203 5,108,292 11,752,126 23,975,894
------------ ------------ ----------- ------------
NET ASSETS ...................................................... $114,322,777 $168,471,000 $81,428,021 $276,087,531
============ ============ =========== ============
Shares of beneficial interest outstanding--Note 6 ............... 5,499,670 6,222,042 4,895,575 13,174,986
============ ============ =========== ============
NET ASSET VALUE PER SHARE ....................................... $ 20.79 $ 27.08 $ 16.63 $ 20.96
============ ============ =========== ============
*Identified cost ................................................ $ 96,198,003 $158,299,696 $67,192,879 $322,075,848
============ ============ =========== ============
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
THE ALGER RETIREMENT FUND
STATEMENTS OF OPERATIONS (Unaudited)
For the six months ended April 30, 2000
<TABLE>
<CAPTION>
MIDCAP CAPITAL
GROWTH SMALL CAP GROWTH APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends ................................................. $ 188,422 $ 13,392 $ 18,719 $ 199,034
Interest .................................................. 250,480 524,307 165,357 733,828
----------- ---------- ----------- -----------
Total income ............................................ 438,902 537,699 184,076 932,862
----------- ---------- ----------- -----------
Expenses:
Management fees--Note 3(a) ................................ 349,233 527,743 200,226 922,322
Shareholder servicing fees ................................ 109,750 140,715 57,309 220,346
Interest on line of credit utilized--Note 5 ............... -- -- 886 --
Custodian fees ............................................ 7,024 9,935 7,524 14,203
Transfer agent fees--Note 3(c) ............................ 1,247 1,247 1,247 1,247
Shareholder reports ....................................... 1,100 9,375 2,530 15,170
Professional fees ......................................... 3,536 6,039 6,061 6,773
Trustees' fees ............................................ 2,241 2,241 2,241 2,241
Miscellaneous ............................................. 24,797 44,584 24,385 64,217
----------- ---------- ----------- -----------
Total Expenses .......................................... 498,928 741,879 302,409 1,246,519
----------- ---------- ----------- -----------
NET INVESTMENT LOSS ......................................... (60,026) (204,180) (118,333) (313,657)
----------- ---------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investments .......................... 3,934,018 6,166,457 2,910,553 14,379,793
Net change in unrealized appreciation (depreciation)
on investments ......................................... 11,785,246 (4,691,448) 9,904,602 12,295,501
----------- ---------- ----------- -----------
Net realized and unrealized gain (loss)
on investments ......................................... 15,719,264 1,475,009 12,815,155 26,675,294
----------- ---------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .............................. $15,659,238 $1,270,829 $12,696,822 $26,361,637
=========== ========== =========== ===========
</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, 2000
INCREASE (DECREASE) IN CASH:
Cash flows from operating activities:
Dividends received ......................................... $ 179,248
Interest received .......................................... 729,476
Operating expenses paid .................................... (885,388)
Purchase of investment securities .......................... (255,336,258)
Purchase of short-term securities, net ..................... (98,063,972)
Proceeds from disposition of investment securities ......... 129,488,620
Other ...................................................... (984)
-------------
Net cash used in operating activities .................. (223,889,258)
-------------
Cash flows from financing activities:
Proceeds from shares sold .................................. 182,821,465
Payments on shares redeemed ................................ (31,184,337)
Increase in cash collateral received on securities loaned .. 72,221,441
-------------
Net cash provided by financing activities .................. 223,858,569
-------------
Net decrease in cash ......................................... (30,689)
Cash--beginning of period .................................... 56,383
-------------
Cash--end of period .......................................... $ 25,694
=============
RECONCILIATION OF NET INCREASE IN NET ASSETS
TO NET CASH USED IN OPERATING ACTIVITIES:
Net increase in net assets resulting from operations ....... $ 26,361,637
Increase in investments .................................... (223,995,816)
Increase in receivable for investment securities sold ...... (3,633,598)
Increase in interest and dividends receivable .............. (24,137)
Increase in payable for investment securities purchased .... 3,717,804
Net realized gain on investments ........................... (14,379,793)
Net increase in unrealized appreciation on investments ..... (12,295,501)
Increase in accrued expenses and other liabilities ......... 361,130
Net increase in other assets ............................... (984)
-------------
Net cash used in operating activities .................... $(223,889,258)
=============
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, 2000
<TABLE>
<CAPTION>
MIDCAP CAPITAL
GROWTH SMALL CAP GROWTH APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net investment loss ......................................... $ (60,026) $ (204,180) $ (118,333) $ (313,657)
Net realized gain on investments ............................ 3,934,018 6,166,457 2,910,553 14,379,793
Net change in unrealized appreciation (depreciation)
on investments ........................................... 11,785,246 (4,691,448) 9,904,602 12,295,501
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations .......................................... 15,659,238 1,270,829 12,696,822 26,361,637
Net increase from shares of beneficial
interest transactions--Note 6 ............................ 25,917,615 103,489,481 40,497,851 153,015,123
------------ ------------ ------------ ------------
Total increase .......................................... 41,576,853 104,760,310 53,194,673 179,376,760
Net Assets:
Beginning of period ....................................... 72,745,924 63,710,690 28,233,348 96,710,771
------------ ------------ ------------ ------------
End of period ............................................. $114,322,777 $168,471,000 $ 81,428,021 $276,087,531
============ ============ ============ ============
Undistributed net investment income (accumulated loss) ...... $ (411,241) $ (1,130,325) $ (438,322) $ (955,143)
============ ============ ============ ============
</TABLE>
THE ALGER RETIREMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended October 31, 1999
<TABLE>
<CAPTION>
MIDCAP CAPITAL
GROWTH SMALL CAP GROWTH APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net investment loss ......................................... $ (236,983) $ (250,412) $ (72,311) $ (210,506)
Net realized gain on investments ............................ 12,595,530 9,628,923 1,917,140 2,007,349
Net change in unrealized appreciation (depreciation)
on investments ........................................... 6,033,835 7,219,880 1,394,775 10,598,903
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations .......................................... 18,392,382 16,598,391 3,239,604 12,395,746
Distributions to Shareholders:
Net realized gains ....................................... (1,518,169) (3,871,054) (1,161,271) (824,545)
Net increase from shares of beneficial
interest transactions--Note 6 ............................ 15,675,939 21,045,643 19,488,397 79,552,891
------------ ------------ ------------ ------------
Total increase .......................................... 32,550,152 33,772,980 21,566,730 91,124,092
Net Assets:
Beginning of year ......................................... 40,195,772 29,937,710 6,666,618 5,586,679
------------ ------------ ------------ ------------
End of year ............................................... $ 72,745,924 $ 63,710,690 $ 28,233,348 $ 96,710,771
============ ============ ============ ============
Undistributed net investment income (accumulated loss) ...... $ (351,215) $ (926,145) $ (319,989) $ (641,486)
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
THE ALGER RETIREMENT FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE--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) REPURCHASE AGREEMENTS: The Portfolios enter into repurchase
agreements with approved institutions. The repurchase agreeements are
collateralized by U.S. Government securities which are verified by the
investment manager as being either received and held in physical possession by
the custodian or as having been received by such custodian in book-entry form
through the Federal Reserve book-entry system. The investment manager monitors
the value of the collateral at the time the repurchase agreement is entered
into and on a daily basis during the term of the agreement to ensure that its
value equals or exceeds the agreed-upon repurchase price to be repaid to the
Portfolio. Additional collateral is obtained when necessary.
(d) LENDING OF PORTFOLIO SECURITIES: The Portfolios lend their securities
to financial institutions, provided that the market value of securities loaned
will not at any time exceed one-third of the Portfolio's total assets, as
defined. The Portfolios earn fees on the securities loaned which are included
in interest income in the accompanying Statements of Operations. In order to
protect against the risk of failure by the borrower to return the securities
loaned or any delay in the delivery of such securities, the investment manager
ensures that the loan is collateralized by cash, letters of credit or U.S.
Government securities that are maintained at all times in an amount equal to at
least 100 percent of the current market value of the loaned securities. At
April 30, 2000, the value of securities loaned and collateral received thereon
were as follows:
VALUE OF
SECURITIES VALUE OF
LOANED COLLATERAL
----------- -----------
Growth Portfolio ........................ $ 6,667,790 $ 6,728,754
Small Cap Portfolio ..................... 1,919,125 4,771,992
MidCap Growth Portfolio ................. -- --
Capital Appreciation Portfolio .......... 73,673,175 72,221,441
(e) DIVIDENDS TO SHAREHOLDERS: Dividends 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.
(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 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.
18
<PAGE>
THE ALGER RETIREMENT FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(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 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, 2000,
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 $87,179, $69,307,
$53,019 and $111,416, 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, 2000, 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, 2000, Alger Management and its affiliates owned
1,470,372 shares, 694,477 shares, 1,807,564 shares and 1,086,192 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, 2000:
PURCHASES SALES
------------ ------------
Growth Portfolio ...................... $ 64,085,040 $ 44,478,461
Small Cap Portfolio ................... 171,663,644 95,913,564
MidCap Growth Portfolio ............... 66,220,545 34,567,354
Capital Appreciation Portfolio ........ 259,054,062 133,118,841
NOTE 5--Lines of Credit:
The Fund has both committed and uncommitted lines of credit with banks.
All borrowings have variable interest rates and are payable on demand. With the
exception of the Capital Appreciation Portfolio, the Fund borrows under such
lines of credit exclusively for temporary or emergency purposes.
The Capital Appreciation Portfolio may borrow up to 1/3 of the value of
its assets, as defined, to purchase additional securities. To the extent the
Capital Appreciation Portfolio borrows under these lines, it must pledge
securities with a total value of at least twice the amount borrowed. For the
six months ended April 30, 2000, the Capital Appreciation Portfolio had no such
borrowings.
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, 2000, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
---------- ------------
Growth Portfolio
Shares sold .............................. 1,838,084 $ 37,125,888
Shares redeemed .......................... (574,697) (11,208,273)
---------- ------------
Net increase ............................. 1,263,387 $ 25,917,615
========== ============
19
<PAGE>
THE ALGER RETIREMENT FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
SHARES AMOUNT
---------- -------------
Small Cap Portfolio
Shares sold ............................ 3,862,750 $ 116,141,562
Shares redeemed ........................ (432,717) (12,652,081)
---------- -------------
Net increase ........................... 3,430,033 $ 103,489,481
========== =============
MidCap Growth Portfolio
Shares sold ............................ 3,505,456 $ 54,471,557
Shares redeemed ........................ (1,003,239) (13,973,706)
---------- -------------
Net increase ........................... 2,502,217 $ 40,497,851
========== =============
Capital Appreciation Portfolio
Shares sold ............................ 8,618,290 $ 183,639,970
Shares redeemed ........................ (1,415,006) (30,624,847)
---------- -------------
Net Increase ........................... 7,203,284 $ 153,015,123
========== =============
During the year ended October 31, 1999, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
---------- -------------
Growth Portfolio
Shares sold ............................ 1,735,529 $ 27,485,084
Dividends reinvested ................... 91,899 1,518,169
Shares redeemed ........................ (841,672) (13,327,314)
---------- -------------
Net increase ........................... 985,756 $ 15,675,939
========== =============
Small Cap Portfolio
Shares sold ............................ 1,661,996 $ 36,124,686
Dividends reinvested ................... 178,225 3,871,054
Shares redeemed ........................ (876,494) (18,950,097)
---------- -------------
Net increase ........................... 963,727 $ 21,045,643
========== =============
MidCap Growth Portfolio
Shares sold ............................ 2,250,079 $ 25,688,243
Dividends reinvested ................... 99,680 1,161,271
Shares redeemed ........................ (711,449) (7,361,117)
---------- -------------
Net increase ........................... 1,638,310 $ 19,488,397
========== =============
Capital Appreciation Portfolio
Shares sold ............................ 6,444,281 $ 95,011,629
Dividends reinvested ................... 57,062 824,545
Shares redeemed ........................ (1,151,755) (16,283,283)
---------- -------------
Net increase ........................... 5,349,588 $ 79,552,891
========== =============
--------------------
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
A special meeting of shareholders was held on April 28, 2000. The following
matters were submitted to a shareholder vote with the following results:
Proposal 1--the election or reelection of the following as trustees of the Fund:
Fred M. Alger III, David D. Alger, Charles F. Baird, Jr., Roger P.
Cheever, Lester L. Colbert, Jr., Stephen E. O'Neil, Nathan E. Saint-Amand
and B. Joseph White.
Each of the candidates was elected or reelected and received at least 13,345,507
affirmative votes; no more than 40,121 votes were withheld for any candidate.
Proposal 2--the ratification of the selection of Arthur Andersen LLP as the
Fund's independent public accountants for the fiscal year ending October 31,
2000: For--13,271,994; Against--71,240; Abstain--42,394.
Proposal 3--deletion of the fundamental investment policy of the Capital
Appreciation Portfolio that permits the portfolio to borrow from banks for
investment (leveraging) purposes was not passed; the voting results were:
For--3,585,601; Against--115,232; Abstain--48,927; Broker Non-Votes--160,306.
20
<PAGE>
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21
<PAGE>
The Alger Retirement Fund
1 World Trade Center
Suite 9333
New York, N.Y. 10048
(800) 992-3863
www.algerretirement.com
----------------------------------------
Board of Trustees
Fred M. Alger, Chairman
David D. Alger
Charles F. Baird, Jr.
Roger P. Cheever
Lester L. Colbert, Jr.
Stephen E. O'Neil
Nathan E. Saint-Amand
B. Joseph White
----------------------------------------
Investment Manager
Fred Alger Management, Inc.
1 World Trade Center
Suite 9333
New York, N.Y. 10048
----------------------------------------
Distributor
Fred Alger & Company, Incorporated
30 Montgomery Street
Jersey City, N.J. 07302
----------------------------------------
Transfer Agent
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, N.J. 07302
----------------------------------------
This report is submitted for the general information of the shareholders of The
Alger Retirement Fund. It is not authorized for distribution to prospective
investors unless accompanied by an effective Prospectus for the Fund, which
contains information concerning the Fund's investment policies, fees and
expenses as well as other pertinent information.
RREP40
|
THE |
ALGER |
RETIREMENT |
FUND |
|
Alger Growth
Retirement Portfolio
Alger Small Cap
Retirement Portfolio
Alger MidCap Growth
Retirement Portfolio
Alger Capital Appreciation
Retirement Portfolio
|
|
SEMI-ANNUAL | April 30, 2000
REPORT | (Unaudited)
|
|
