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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21308
Alger Global Growth Fund
(Exact name of registrant as specified in charter)
360 Park Avenue South New York, New York 10010
(Address of principal executive offices) (Zip code)
Mr. Hal Liebes
Fred Alger Management, Inc.
360 Park Avenue South
New York, New York 10010
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-806-8800
Date of fiscal year end: October 31
Date of reporting period: April 30, 2017
ITEM 1. REPORT(S) TO STOCKHOLDERS.
Table of Contents
ALGER GLOBAL GROWTH FUND
|
| Shareholders’ Letter | 1 |
| Fund Highlights | 8 |
| Portfolio Summary | 10 |
| Schedule of Investments | 11 |
| Statement of Assets and Liabilities | 18 |
| Statement of Operations | 20 |
| Statement of Changes in Net Assets | 21 |
| Financial Highlights | 22 |
| Notes to Financial Statements | 26 |
| Additional Information | 41 |
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Shareholders' Letter April 30, 2017
Dear Shareholders,
Economic Strength Sustains Bull Market
Global equities advanced during the six-month reporting period ended April 30, 2017,
with the MSCI ACWI Index generating a 12.06% return. In the U.S., the S&P 500 Index
outperformed the MSCI ACWI Index with a 13.32% return. Growth stocks, broadly
speaking, outperformed with the Russell 3000 Growth Index generating a 15.47% return.
Small capitalization growth equities were even stronger as illustrated by the 18.48% return
of the Russell 2000 Growth Index.
We maintain that expectations for strengthening economic growth worldwide and improving
corporate earnings have been the primary drivers of equity performance. We also believe
that ongoing innovation, including medical breakthroughs and internet-based technology,
is supporting equities.
Yet, some commentators have attributed recent equity gains to the U.S. presidential election.
Others have said it has been momentum trading. If it were either of those factors, we
believe a temporary decline of equities that occurred in March following growing concerns
over Washington’s ability to pass meaningful legislation would have been more severe. In
regard to economic factors, consider the following:
• Consumer and business confidence have risen to at or near their highest
levels in more than a decade.
• Wage growth is also accelerating. In December, hourly wages among private
employers increased 2.9%, the highest rate since the financial crisis. Wages
continued to increase during the first four months of this year.
• Corporate profits, meanwhile, are strengthening. At the end of the reporting
period, Wall Street analysts expected first quarter S&P 500 earnings per share
(EPS) to increase 12% year over year for the first quarter of 2017—the high-
est rate in five years.
• The Conference Board’s Leading Economic Index has been climbing in a
fairly steady manner since 2009 and hit a record high of 126.7 in March of
this year.
Economic Growth Extends Beyond U.S.
Investor sentiment was also supported by expectations for improving economic growth
abroad. Indeed, 2017 may be the first time since 2010 that all G-20 countries simultaneously
experience economic growth and help strengthen corporate fundamentals. The encouraging
outlook helped extend the equity rally beyond the U.S. as illustrated by the MSCI Emerging
Markets Index gaining 9.03% and the MSCI ACWI ex USA Index gaining 10.61%. A
perception that geopolitical risk, including elections in France, was moderating supported
investor sentiment. Upward revisions for earnings for both developed and emerging markets
and strengthening Purchasing Managers’ Index readings in Europe and China were also
encouraging.
- 1 -
Our view has consistently been that the economic recovery would be longer and stronger
than expected, but also slower in pace due to the severity and nature of the 2008/2009 bear
market and recession. While improving economic conditions are likely to make the Federal
Reserve more aggressive in its tightening, we don’t believe that monetary policy changes
will derail the expansion. We note that the U.S. does not typically enter into a recession
until about three years after material Fed tightening, which we maintain is just starting now.
Rising equity valuations concern some investors, but growth sectors such as Information
Technology and Health Care are trading in line or at a discount to their 20-year median
price-to-earnings (P/E) ratios.
It is also reasonable to argue that with extremely low interest rates, equity multiples should
be higher than their current levels.
Skepticism Versus Euphoria
In the face of new market highs for equities, many commentators are calling for a market
correction, with the average analyst rating for S&P 500 companies being approximately one
standard deviation below the average over the past decade. If bull markets begin in despair
and end in euphoria as we believe, then the equity market still has room to run, particularly
given strong fundamentals.
One asset class where we continue to see euphoria, however, is fixed income. Investors’
craving for fixed income exists despite the expensive valuations of bonds. Treasury bond
yields are normally tightly linked to nominal GDP growth (both averaged 6.5% over the past
50 years), but current 10-year yields are more than two percentage points below next year’s
estimated nominal GDP growth rate. Keep in mind that a one percentage point increase
in interest rates should theoretically cause an 8% decline in the price of a 10-year bond. A
historically wide disparity, meanwhile, exists between equity and bond valuations. When
considering the wide disparity, two scenarios are possible: fixed income yields will rise and
bond returns will be very disappointing or equity yields will fall (i.e. P/E ratios will rise) and
stock returns will be strong. Under both scenarios, equities would outperform.
A rotation from bonds and bond-like stocks to equities would also have implications for
active investing. Over the past few years, investors have favored bond-like equities (including
those with weak fundamentals) as an alternative to low-yielding fixed income securities.
This behavior weighed on active managers who focus on identifying strong businesses
rather than pursuing dividend quality. The fact is that rising interest rates have typically been
associated with active investing outperforming passive and we believe that may be the case
going forward. We are optimistic that we have seen the cyclical lows in interest rates and
active investing.
Navigating the Ship Forward
While we think that the economic expansion can continue, we believe that a good captain
does not simply look at calm waters and expect smooth sailing; rather, it is prudent to be
prepared for all weather conditions. As bottom-up focused growth investors, we concentrate
on building a boat or investment portfolio that we believe can sail through whatever
conditions lie ahead. Instead of changing course based on which way economic winds are
blowing (e.g. rotating to cyclical stocks when the economy is strong or to defensive stocks
when it appears to be weakening), we focus on finding companies that can take market share
and grow in both good and bad times.
- 2 -
The best risk management we know of is to understand our companies as well or better
than anyone else, feel confident in their growth under multiple scenarios, and let the strength
of their management teams and competitive advantages create value for our clients. Our
research and experience shows that there are always areas of the economy that are growing,
irrespective of where we are in market or economic cycles. For example, during the Global
Financial Crisis that occurred from the second quarter of 2008 until the second quarter of
2011, U.S. GDP was somewhat flat, but U.S. internet advertising and e-commerce grew over
30%. Companies that exploited that growth generated strong returns.
Innovation is Strong
We see many areas that seem poised to grow regardless of economic conditions. They range
from established growth industries such as cloud computing and the mobile internet to
emerging technologies such as artificial intelligence (AI).
We believe the following factors will support rapid growth of AI:
• Hardware improvements.
• Algorithm development.
• Storage efficiency.
Those factors are driving a revolution in what computers and robots can do including how
they interact with us. It has long been established that technology is increasing at an ever
faster rate, as popularized by Moore’s Law, but recent advances in the fundamentals that
drive AI are simply astounding. For example, CPU deep learning performance has increased
by 65 times in four years. These types of technological leaps are allowing computers to
actually learn on their own—an AI program named Libratus, developed at Carnegie Mellon,
recently beat some of the world’s best poker players. The truly incredible thing is not that it
won, but that it taught itself and developed its own strategy.
AI will change many industries. In health care, doctors struggle to keep up with technology
given the thousands of medical studies that are published each day. Yet, in one experiment,
not only did IBM’s AI supercomputer, Watson, recommend the same treatments for cancer
patients as oncologists 99% of the time, but incredibly it also found additional treatment
options that physicians had not identified in 30% of the cases, potentially giving patients new
hope. In transportation, cars are learning to drive themselves much more safely with Google,
for instance, achieving an error rate of 2 per 10,000 miles driven in 2016, a huge 75% drop
from the previous year. Some AI applications are already in use. It is estimated that 35%
of Amazon’s current sales are generated with its AI-curated personal recommendations.
According to a UBS survey, nearly 90% of large U.S. companies have a cognitive computing
project underway and 20% expect machine learning to have a business impact within a year.
The huge computing power needed to drive these projects forward will be aided by services
or platforms such as those from Google, Amazon, and Microsoft.
Conclusion
Finding areas of growth and companies that we believe will benefit from them, no matter
what the environment, is our passion and expertise. Regardless of economic conditions,
we believe our time-tested philosophy of focusing on Positive Dynamic Change has strong
potential for producing attractive results for our clients and partners.
- 3 -
Portfolio Matters
The Alger Global Growth Fund returned 10.40% for the fiscal six-month period ended
April 30, 2017, compared to the 12.06% return of the MSCI ACWI Index.
An overweight of the United States provided one of the largest contributions to relative
performance, while stock selection resulted in China, India, and the Netherlands also being
among top contributors to results. Stock selection, however, resulted in Australia, Canada,
Switzerland, and the United Kingdom being among top detractors from performance.
During the reporting period, the largest sector weightings were Financials and Information
Technology. The largest sector overweight was Energy and the largest underweight was
Consumer Staples. The Information Technology and Health Care sectors provided the
largest contributions to performance, while Consumer Discretionary and Consumer Staples
were among sectors that detracted from results.
Comcast Corporation, Cl. A; Bank of America Corp.; Apple, Inc.; JPMorgan Chase & Co.;
and Western Digital Corp. were among top contributors to performance. Shares of Apple
performed strongly in response to the company continuing to generate strong iPhone sales.
Conversely, CVS Caremark Corp.; Encana Corp.; Whiting Petroleum Corp.; Corporacion
Inmobiliaria Vesta S.A.B. de C.V.; and Imperial Brands PLC were among top detractors
from results. CVS Caremark operates retail pharmacies and also serves as a third-party
administrator for prescription programs offered by employers and other entities. The shares
detracted from performance late in 2016 in response to CVS losing two large health-plan
clients in the company’s retail pharmacy business. As a result, the company lowered its
earnings guidance.
I thank you for putting your trust in Alger.
Sincerely,
Daniel C. Chung, CFA
Chief Investment Officer
Fred Alger Management, Inc.
_______________________________
Investors cannot invest directly in an index. Index performance does not reflect the
deduction for fees, expenses, or taxes.
This report and the financial statements contained herein are submitted for the general
information of shareholders of the Fund. This report is not authorized for distribution
to prospective investors in the Fund unless proceeded or accompanied by an effective
prospectus for the Fund. Fund performance returns represent the six-month period return
of Class A shares prior to the deduction of any sales charges and include the reinvestment
of any dividends or distributions.
The performance data quoted represent past performance, which is not an
- 4 -
indication or guarantee of future results.
Standardized performance results can be found on the following pages. The investment
return and principal value of an investment in the Fund will fluctuate so that an investor’s
shares, when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. For performance data
current to the most recent month-end, visit us at www.alger.com or call us at (800) 992-3863.
The views and opinions of the Fund’s management in this report are as of the date of the
Shareholders’ Letter and are subject to change at any time subsequent to this date. There
is no guarantee that any of the assumptions that formed the basis for the opinions stated
herein are accurate or that they will materialize. Moreover, the information forming the
basis for such assumptions is from sources believed to be reliable; however, there is no
guarantee that such information is accurate. Any securities mentioned, whether owned in a
fund or otherwise, are considered in the context of the construction of an overall portfolio
of securities and therefore reference to them should not be construed as a recommendation
or offer to purchase or sell any such security. Inclusion of such securities in the Fund and
transactions in such securities, if any, may be for a variety of reasons, including, without
limitation, in response to cash flows, inclusion in a benchmark, and risk control. The
reference to a specific security should also be understood in such context and not viewed as
a statement that the security is a significant holding in the Fund. Please refer to the Schedule
of Investments for the Fund which is included in this report for a complete list of Fund
holdings as of April 30, 2017. Securities mentioned in the Shareholders’ Letter, if not found
in the Schedule of Investments, may have been held by the Fund during the fiscal period.
A Word about Risk
Growth stocks tend to be more volatile than other stocks as the price of growth stocks
tends to be higher in relation to their companies’ earnings and may be more sensitive
to market, political and economic developments. Investing in the stock market involves
gains and losses and may not be suitable for all investors. Stocks of small- and mid-sized
companies are subject to greater risk than stocks of larger, more established companies
owing to such factors as limited liquidity, inexperienced management, and limited financial
resources. Investing in foreign securities involves additional risk (including currency risk,
risks related to political, social or economic conditions, and risks associated with foreign
markets, such as increased volatility, limited liquidity, less stringent regulatory and legal
system, and lack of industry and country diversification), and may not be suitable for all
investors. Special risks associated with investments in emerging country issuers include
exposure to currency fluctuations, less liquidity, less developed or less efficient trading
markets, lack of comprehensive company information, political instability and different
auditing and legal standards.
Foreign currencies are subject to risks caused by inflation, interest rates, budget deficits and
low savings rates, political factors and government controls. Some of the countries where
the Fund can invest may have restrictions that could limit access to investment opportunities.
The securities of issuers located in emerging markets can be more volatile and less liquid
than those of issuers in more mature economies. Investing in emerging markets involves
higher levels of risk, including increased information, market, and valuation risks, and may
not be suitable for all investors.
- 5 -
Funds that participate in leveraging are subject to the risk that the cost of borrowing money
to leverage will exceed the returns for securities purchased or that the securities purchased
may actually go down in value; thus, a fund’s net asset value can decrease more quickly than
if the fund had not borrowed.
For a more detailed discussion of the risks associated with the Fund, please see the
prospectus.
Before investing, carefully consider the Fund’s investment objective, risks, charges,
and expenses.
For a prospectus or a summary prospectus containing this and other information
about the Alger Global Growth Fund call us at (800) 992-3863 or visit us at www.
alger.com. Read it carefully before investing.
Fred Alger & Company, Incorporated, Distributor. Member NYSE Euronext,
SIPC.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
Definitions:
• S&P 500 Index: An index of large company stocks considered representative
of the U.S. stock market.
• Morgan Stanley Capital International (MSCI) All Country World Index
(ACWI): An unmanaged, market capitalization-weighted index designed
to provide a broad measure of equity market performance throughout the
world, including both developed and emerging markets.
• Morgan Stanley Capital International (MSCI) All Country World Index
(ACWI) ex USA: An unmanaged, market capitalization-weighted index de-
signed to provide a broad measure of equity market performance throughout
the world, including both developing and emerging markets, but excluding
the United States.
• MSCI Emerging Markets Index: A free float-adjusted market capitalization
index designed to measure equity market performance in the global emerging
markets.
• Russell 3000 Growth Index: An index of common stocks designed to track
performance of companies with greater than average growth orientation in
general.
• Russell 2000 Growth Index: An index of common stocks designed to track
performance of small-capitalization companies with greater than average
growth orientation.
• The Conference Board’s Leading Economic Indicator Index is based on a va-
riety of economic data and is part of the Conference Board’s analytic system
that seeks to signal peaks and troughs in the business cycle.
• The Purchasing Managers' Index (PMI) is an indicator of the economic
health of the manufacturing sector. The PMI is based on five major indi-
cators: new orders, inventory levels, production, supplier deliveries and the
employment environment.
- 6 -
| FUND PERFORMANCE AS OF 3/31/17 (Unaudited) |
| AVERAGE ANNUAL TOTAL RETURNS |
| | 1 | | 5 | | 10 | | SINCE | |
| | YEAR | | YEARS | | YEARS | | INCEPTION | |
| Alger Global Growth Class A (Inception 11/3/03) | 3.92 | % | 5.12 | % | 3.70 | % | 8.31 | % |
| Alger Global Growth Class C (Inception 3/3/08)* | 7.85 | % | 5.46 | % | 3.52 | % | 7.97 | % |
| Alger Global Growth Class I (Inception 5/31/13) | 9.90 | % | n/a | | n/a | | 7.43 | % |
| Alger Global Growth Class Z (Inception 5/31/13) | 10.17 | % | n/a | | n/a | | 7.71 | % |
The performance data quoted represents past performance, which is not an indication or a guarantee of future
results. The Fund’s average annual total returns include changes in share price and reinvestment of dividends and
capital gains. Class A returns reflect the maximum initial sales charge and Class C returns reflect the applicable
contingent deferred sales charge. Beginning May 31, 2013 Alger Global Growth Fund changed its investment
strategy to emphasize foreign (including emerging markets) securities and the United States; its previous investment
strategy considered securities economically tied to China (including Hong Kong and Taiwan) and the United States.
* Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to March 3,
2008, inception of the class, is that of the Fund's Class A shares, reduced to reflect the current maximum sales charge and the
higher operating expenses of Class C shares.
- 7 -
ALGER GLOBAL GROWTH FUND
Fund Highlights Through April 30, 2017
The chart above illustrates the growth in value of a hypothetical $10,000 investment made in the Alger Global Growth
Fund Class A shares, with an initial maximum sales charge of 5.25%, and the MSCI ACWI Index (unmanaged index
of common stocks) for the ten years ended April 30, 2017. Beginning May 31, 2013 Alger Global Growth Fund
changed its investment strategy to emphasize foreign (including emerging markets) securities and the United States.
Its previous investment strategy considered securities economically tied to China (including Hong Kong and Taiwan)
and the United States. Figures for the Alger Global Growth Fund Class A shares, and the MSCI ACWI Index include
reinvestment of dividends. Performance for the Alger Global Growth Fund Class C, Class I and Class Z shares will
vary from the results shown above due to differences in expenses and sales charges that each class bears. Investors
cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
- 8 -
ALGER GLOBAL GROWTH FUND
Fund Highlights Through April 30, 2017 (Continued)
| | | | | | | | |
| PERFORMANCE COMPARISON AS OF 4/30/17 |
| AVERAGE ANNUAL TOTAL RETURNS |
| | | | | | | | Since | |
| | 1 YEAR | | 5 YEARS | | 10 YEARS | | 11/3/2003 | |
| Class A (Inception 11/3/03) | 4.65 | % | 5.68 | % | 3.41 | % | 8.39 | % |
| Class C (Inception 3/3/08)* | 8.62 | % | 6.02 | % | 3.23 | % | 8.04 | % |
| MSCI ACWI Index | 15.77 | % | 9.55 | % | 4.27 | % | 7.76 | % |
| |
| |
| | | | | | | | Since | |
| | 1 YEAR | | 5 YEARS | | 10 YEARS | | 5/31/2013 | |
| Class I (Inception 5/31/13) | 10.63 | % | n/a | | n/a | | 7.71 | % |
| Class Z (Inception 5/31/13) | 10.87 | % | n/a | | n/a | | 7.99 | % |
| MSCI ACWI Index | 15.77 | % | n/a | | n/a | | 8.32 | % |
The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s average
annual total returns include changes in share price and reinvestment of dividends and capital gains. Class A returns reflect the maximum
initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart and table above do not reflect the
deduction of taxes that a shareholder would have paid on Fund distributions or on the redemption of Fund shares. Investment return
and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost. Current performance
may be higher or lower than the performance quoted. For updated performance, visit us at www.alger.com or call us at (800) 992-3863.
* Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to March
3, 2008, inception of the class, is that of the Fund's Class A shares, reduced to reflect the current maximum sales charge
and the higher operating expenses of Class C shares.
- 9 -
PORTFOLIO SUMMARY†
April 30, 2017 (Unaudited)
| | | |
| | | Alger Global Growth | |
| COUNTRY | | Fund | |
| Australia | | 1.2 | % |
| Brazil | | 1.2 | |
| Canada | | 3.1 | |
| China | | 4.1 | |
| France | | 3.8 | |
| Germany | | 5.9 | |
| Hong Kong | | 1.5 | |
| India | | 1.5 | |
| Japan | | 3.8 | |
| Netherlands | | 1.9 | |
| Norway | | 0.5 | |
| Philippines | | 0.5 | |
| South Africa | | 0.4 | |
| South Korea | | 1.5 | |
| Spain | | 1.2 | |
| Sweden | | 0.9 | |
| Switzerland | | 1.8 | |
| Taiwan | | 0.4 | |
| United Kingdom | | 1.8 | |
| United States | | 60.5 | |
| Cash and Net Other Assets | | 2.5 | |
| | | 100.0 | % |
† Based on net assets for the Fund.
- 10 -
ALGER GLOBAL GROWTH FUND
Schedule of Investments (Unaudited) April 30, 2017
| | | | |
| COMMON STOCKS—96.2% | | SHARES | | VALUE |
| AUSTRALIA—1.2% | | | | |
| DIVERSIFIED METALS & MINING—1.2% | | | | |
| BHP Billiton Ltd. | | 19,000 | $ | 338,275 |
| (Cost $299,133) | | | | |
| BRAZIL—1.2% | | | | |
| DRUG RETAIL—0.4% | | | | |
| Raia Drogasil SA | | 5,511 | | 117,096 |
| REAL ESTATE OPERATING COMPANIES—0.8% | | | | |
| BR Malls Participacoes SA | | 48,861 | | 216,257 |
| TOTAL BRAZIL | | | | |
| (Cost $275,963) | | | | 333,353 |
| CANADA—3.1% | | | | |
| DIVERSIFIED BANKS—1.1% | | | | |
| Royal Bank of Canada | | 4,500 | | 308,132 |
| LIFE & HEALTH INSURANCE—1.0% | | | | |
| Manulife Financial Corp. | | 15,500 | | 271,836 |
| OIL & GAS EXPLORATION & PRODUCTION—1.0% | | | | |
| Encana Corp. | | 27,000 | | 288,978 |
| TOTAL CANADA | | | | |
| (Cost $882,129) | | | | 868,946 |
| CHINA—4.1% | | | | |
| INTERNET SOFTWARE & SERVICES—4.1% | | | | |
| Alibaba Group Holding Ltd.#* | | 4,162 | | 480,711 |
| Tencent Holdings Ltd. | | 22,085 | | 691,988 |
| | | | | 1,172,699 |
| (Cost $418,455) | | | | |
| FRANCE—3.8% | | | | |
| DIVERSIFIED BANKS—2.0% | | | | |
| BNP Paribas SA | | 5,400 | | 381,099 |
| Societe Generale SA | | 3,000 | | 164,491 |
| | | | | 545,590 |
| INTEGRATED OIL & GAS—1.8% | | | | |
| TOTAL SA | | 9,700 | | 497,910 |
| TOTAL FRANCE | | | | |
| (Cost $942,163) | | | | 1,043,500 |
| GERMANY—5.9% | | | | |
| ADVERTISING—0.6% | | | | |
| Stroeer SE & Co KGaA | | 2,800 | | 161,908 |
| APPLICATION SOFTWARE—1.3% | | | | |
| SAP SE | | 3,700 | | 370,597 |
| CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.6% | | | | |
| KION Group AG | | 2,500 | | 169,356 |
| INTEGRATED TELECOMMUNICATION SERVICES—1.0% | | | | |
| Deutsche Telekom AG | | 16,000 | | 280,640 |
| MULTI-LINE INSURANCE—1.3% | | | | |
| Allianz SE | | 2,000 | | 380,738 |
| PHARMACEUTICALS—1.1% | | | | |
| Bayer AG | | 2,600 | | 321,691 |
| TOTAL GERMANY | | | | |
| (Cost $1,576,095) | | | | 1,684,930 |
- 11 -
ALGER GLOBAL GROWTH FUND
Schedule of Investments (Unaudited) (Continued) April 30, 2017
| | | | |
| COMMON STOCKS—(CONT.) | | SHARES | | VALUE |
| HONG KONG—1.5% | | | | |
| CONSTRUCTION & ENGINEERING—0.7% | | | | |
| China State Construction International Holdings Ltd. | | 112,000 | $ | 202,950 |
| INDUSTRIAL CONGLOMERATES—0.8% | | | | |
| CK Hutchison Holdings Ltd. | | 18,000 | | 224,768 |
| TOTAL HONG KONG | | | | |
| (Cost $382,116) | | | | 427,718 |
| INDIA—1.5% | | | | |
| DIVERSIFIED BANKS—1.2% | | | | |
| HDFC Bank Ltd. | | 14,095 | | 342,745 |
| TOBACCO—0.3% | | | | |
| ITC Ltd.* | | 21,479 | | 92,734 |
| TOTAL INDIA | | | | |
| (Cost $310,594) | | | | 435,479 |
| JAPAN—3.8% | | | | |
| AUTOMOBILE MANUFACTURERS—0.8% | | | | |
| Subaru Corp. | | 6,000 | | 227,513 |
| COMMODITY CHEMICALS—0.5% | | | | |
| Toray Industries, Inc. | | 15,000 | | 132,780 |
| DIVERSIFIED BANKS—1.2% | | | | |
| Mitsubishi UFJ Financial Group, Inc. | | 52,496 | | 332,706 |
| FOOD RETAIL—0.7% | | | | |
| Seven & i Holdings Co., Ltd. | | 4,600 | | 194,311 |
| LIFE & HEALTH INSURANCE—0.6% | | | | |
| T&D Holdings, Inc.* | | 12,000 | | 178,467 |
| TOTAL JAPAN | | | | |
| (Cost $1,029,823) | | | | 1,065,777 |
| NETHERLANDS—1.9% | | | | |
| DIVERSIFIED BANKS—0.6% | | | | |
| ING Groep NV | | 11,000 | | 179,287 |
| FOOD RETAIL—0.4% | | | | |
| X5 Retail Group NV*,(a) | | 3,459 | | 121,930 |
| SEMICONDUCTOR EQUIPMENT—0.9% | | | | |
| ASML Holding NV# | | 1,950 | | 257,107 |
| TOTAL NETHERLANDS | | | | |
| (Cost $468,307) | | | | 558,324 |
| NORWAY—0.5% | | | | |
| PACKAGED FOODS & MEATS—0.5% | | | | |
| Orkla ASA | | 16,000 | | 145,158 |
| (Cost $153,329) | | | | |
| PHILIPPINES—0.5% | | | | |
| DIVERSIFIED BANKS—0.5% | | | | |
| Metropolitan Bank & Trust Co. | | 74,840 | | 125,967 |
| (Cost $121,044) | | | | |
| SOUTH AFRICA—0.4% | | | | |
| DIVERSIFIED CHEMICALS—0.4% | | | | |
| Sasol Ltd. | | 3,690 | | 113,053 |
| (Cost $112,675) | | | | |
- 12 -
ALGER GLOBAL GROWTH FUND
Schedule of Investments (Unaudited) (Continued) April 30, 2017
| | | | |
| COMMON STOCKS—(CONT.) | | SHARES | | VALUE |
| SOUTH KOREA—1.5% | | | | |
| DIVERSIFIED BANKS—0.5% | | | | |
| Hana Financial Group, Inc.* | | 4,400 | $ | 151,137 |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—1.0% | | | | |
| Samsung Electronics Co., Ltd. | | 146 | | 286,259 |
| TOTAL SOUTH KOREA | | | | |
| (Cost $341,429) | | | | 437,396 |
| SPAIN—1.2% | | | | |
| DIVERSIFIED BANKS—0.7% | | | | |
| Banco Santander SA* | | 30,000 | | 195,499 |
| ELECTRIC UTILITIES—0.5% | | | | |
| Iberdrola SA | | 20,000 | | 143,769 |
| TOTAL SPAIN | | | | |
| (Cost $296,729) | | | | 339,268 |
| SWEDEN—0.9% | | | | |
| DIVERSIFIED BANKS—0.9% | | | | |
| Nordea Bank AB* | | 21,000 | | 258,265 |
| (Cost $217,862) | | | | |
| SWITZERLAND—1.8% | | | | |
| IT CONSULTING & OTHER SERVICES—0.6% | | | | |
| Luxoft Holding, Inc.* | | 2,543 | | 156,776 |
| PACKAGED FOODS & MEATS—1.2% | | | | |
| Nestle SA | | 4,500 | | 346,592 |
| TOTAL SWITZERLAND | | | | |
| (Cost $495,472) | | | | 503,368 |
| TAIWAN—0.4% | | | | |
| RESTAURANTS—0.4% | | | | |
| Gourmet Master Co., Ltd. | | 12,000 | | 120,293 |
| (Cost $118,559) | | | | |
| UNITED KINGDOM—1.8% | | | | |
| HOUSEHOLD PRODUCTS—1.2% | | | | |
| Reckitt Benckiser Group PLC. | | 3,800 | | 350,136 |
| PHARMACEUTICALS—0.6% | | | | |
| GlaxoSmithKline PLC. | | 8,000 | | 161,029 |
| TOTAL UNITED KINGDOM | | | | |
| (Cost $518,480) | | | | 511,165 |
| UNITED STATES—59.2% | | | | |
| AEROSPACE & DEFENSE—1.0% | | | | |
| General Dynamics Corp. | | 1,400 | | 271,306 |
| APPAREL ACCESSORIES & LUXURY GOODS—0.5% | | | | |
| PVH Corp. | | 1,350 | | 136,391 |
| APPAREL RETAIL—0.5% | | | | |
| The Gap, Inc. | | 5,300 | | 138,860 |
| APPLICATION SOFTWARE—0.6% | | | | |
| salesforce.com, Inc.* | | 1,800 | | 155,016 |
| ASSET MANAGEMENT & CUSTODY BANKS—0.4% | | | | |
| WisdomTree Investments, Inc. | | 12,000 | | 100,200 |
| AUTO PARTS & EQUIPMENT—0.8% | | | | |
| WABCO Holdings, Inc.* | | 2,000 | | 237,740 |
- 13 -
ALGER GLOBAL GROWTH FUND
Schedule of Investments (Unaudited) (Continued) April 30, 2017
| | | | |
| COMMON STOCKS—(CONT.) | | SHARES | | VALUE |
| UNITED STATES—(CONT.) | | | | |
| BIOTECHNOLOGY—3.0% | | | | |
| ACADIA Pharmaceuticals, Inc.* | | 2,500 | $ | 85,825 |
| Biogen, Inc.* | | 250 | | 67,803 |
| BioMarin Pharmaceutical, Inc.* | | 1,100 | | 105,424 |
| Celgene Corp.* | | 1,900 | | 235,695 |
| Clovis Oncology, Inc.* | | 1,500 | | 86,835 |
| Incyte Corp.* | | 700 | | 86,996 |
| Vertex Pharmaceuticals, Inc.* | | 1,500 | | 177,450 |
| | | | | 846,028 |
| BREWERS—0.6% | | | | |
| Molson Coors Brewing Co., Cl. B | | 1,800 | | 172,602 |
| BROADCASTING—1.1% | | | | |
| CBS Corp., Cl. B | | 4,650 | | 309,504 |
| BUILDING PRODUCTS—0.6% | | | | |
| Fortune Brands Home & Security, Inc. | | 2,700 | | 172,098 |
| CABLE & SATELLITE—3.0% | | | | |
| Comcast Corporation, Cl. A | | 22,000 | | 862,180 |
| CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.8% | | | | |
| Allison Transmission Holdings, Inc. | | 6,000 | | 232,080 |
| CONSTRUCTION MATERIALS—0.7% | | | | |
| Vulcan Materials Co. | | 1,600 | | 193,408 |
| DATA PROCESSING & OUTSOURCED SERVICES—1.0% | | | | |
| Visa, Inc., Cl. A | | 3,100 | | 282,782 |
| DIVERSIFIED BANKS—2.3% | | | | |
| JPMorgan Chase & Co. | | 6,300 | | 548,100 |
| Wells Fargo & Co. | | 2,000 | | 107,680 |
| | | | | 655,780 |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.2% | | | | |
| AMETEK, Inc. | | 2,500 | | 143,000 |
| Rockwell Automation, Inc. | | 1,200 | | 188,820 |
| | | | | 331,820 |
| FINANCIAL EXCHANGES & DATA—0.7% | | | | |
| IntercontinentalExchange Group, Inc. | | 3,500 | | 210,700 |
| HEALTH CARE EQUIPMENT—1.2% | | | | |
| DexCom, Inc.* | | 1,200 | | 93,552 |
| Medtronic PLC. | | 3,000 | | 249,270 |
| | | | | 342,822 |
| HEALTH CARE TECHNOLOGY—0.8% | | | | |
| Medidata Solutions, Inc.* | | 3,500 | | 229,005 |
| HOME FURNISHING RETAIL—0.5% | | | | |
| Williams-Sonoma, Inc. | | 2,500 | | 135,125 |
| INDUSTRIAL CONGLOMERATES—1.1% | | | | |
| Honeywell International, Inc. | | 2,300 | | 301,622 |
| INDUSTRIAL GASES—0.5% | | | | |
| Air Products & Chemicals, Inc. | | 1,000 | | 140,500 |
| INDUSTRIAL MACHINERY—0.4% | | | | |
| Dover Corp. | | 1,300 | | 102,544 |
| INTEGRATED OIL & GAS—1.7% | | | | |
| Chevron Corp. | | 4,600 | | 490,820 |
- 14 -
ALGER GLOBAL GROWTH FUND
Schedule of Investments (Unaudited) (Continued) April 30, 2017
| | | | |
| COMMON STOCKS—(CONT.) | | SHARES | | VALUE |
| UNITED STATES—(CONT.) | | | | |
| INTERNET RETAIL—2.3% | | | | |
| Amazon.com, Inc.* | | 700 | $ | 647,493 |
| INTERNET SOFTWARE & SERVICES—4.6% | | | | |
| Alphabet, Inc., Cl. C* | | 800 | | 724,768 |
| Facebook, Inc., Cl. A* | | 3,700 | | 555,925 |
| Palantir Technologies, Inc., Cl. A*,@ | | 3,176 | | 19,310 |
| | | | | 1,300,003 |
| INVESTMENT BANKING & BROKERAGE—1.3% | | | | |
| Morgan Stanley | | 8,200 | | 355,634 |
| LIFE & HEALTH INSURANCE—1.3% | | | | |
| Lincoln National Corp. | | 3,500 | | 230,755 |
| MetLife, Inc. | | 2,700 | | 139,887 |
| | | | | 370,642 |
| MANAGED HEALTH CARE—3.6% | | | | |
| Aetna, Inc. | | 4,300 | | 580,801 |
| UnitedHealth Group, Inc. | | 2,500 | | 437,200 |
| | | | | 1,018,001 |
| MOVIES & ENTERTAINMENT—0.9% | | | | |
| The Walt Disney Co. | | 2,300 | | 265,880 |
| OIL & GAS EQUIPMENT & SERVICES—0.6% | | | | |
| Halliburton Company | | 4,000 | | 183,520 |
| OIL & GAS EXPLORATION & PRODUCTION—3.8% | | | | |
| EOG Resources, Inc. | | 2,800 | | 259,000 |
| Parsley Energy, Inc., Cl. A* | | 6,000 | | 178,740 |
| Pioneer Natural Resources Co. | | 3,000 | | 518,970 |
| Whiting Petroleum Corp.* | | 12,000 | | 99,600 |
| | | | | 1,056,310 |
| OTHER DIVERSIFIED FINANCIAL SERVICES—2.1% | | | | |
| Bank of America Corp. | | 25,000 | | 583,500 |
| PHARMACEUTICALS—1.1% | | | | |
| Bristol-Myers Squibb Co. | | 5,650 | | 316,683 |
| SEMICONDUCTORS—2.9% | | | | |
| Ambarella Inc* | | 2,500 | | 140,550 |
| Broadcom Ltd. | | 2,450 | | 540,984 |
| NVIDIA Corp. | | 1,300 | | 135,590 |
| | | | | 817,124 |
| SPECIALTY CHEMICALS—1.3% | | | | |
| PPG Industries, Inc. | | 1,700 | | 186,728 |
| The Sherwin-Williams Co. | | 500 | | 167,340 |
| | | | | 354,068 |
| SYSTEMS SOFTWARE—1.8% | | | | |
| Choicestream, Inc.*,@,(b) | | 1,969 | | – |
| Microsoft Corp. | | 5,500 | | 376,530 |
| Proofpoint, Inc.* | | 1,700 | | 128,129 |
| | | | | 504,659 |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—3.8% | | | | |
| Apple, Inc. | | 5,000 | | 718,250 |
| Western Digital Corp. | | 4,000 | | 356,280 |
| | | | | 1,074,530 |
- 15 -
ALGER GLOBAL GROWTH FUND
Schedule of Investments (Unaudited) (Continued) April 30, 2017
| | | | |
| COMMON STOCKS—(CONT.) | | SHARES | | VALUE |
| UNITED STATES—(CONT.) | | | | |
| TOBACCO—1.5% | | | | |
| Philip Morris International, Inc. | | 3,800 | $ | 421,192 |
| TRADING COMPANIES & DISTRIBUTORS—0.7% | | | | |
| Fastenal Co. | | 3,000 | | 134,040 |
| HD Supply Holdings, Inc.* | | 1,850 | | 74,555 |
| | | | | 208,595 |
| TRUCKING—0.6% | | | | |
| Old Dominion Freight Line, Inc. | | 2,000 | | 177,040 |
| TOTAL UNITED STATES | | | | |
| (Cost $15,018,597) | | | | 16,705,807 |
| TOTAL COMMON STOCKS | | | | |
| (Cost $23,978,954) | | | | 27,188,741 |
| PREFERRED STOCKS—1.1% | | SHARES | | VALUE |
| UNITED STATES—1.1% | | | | |
| BIOTECHNOLOGY—0.4% | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(b) | | 33,858 | | 114,440 |
| INTERNET SOFTWARE & SERVICES—0.3% | | | | |
| Palantir Technologies, Inc., Cl. B*,@ | | 12,951 | | 78,742 |
| Palantir Technologies, Inc., Cl. D*,@ | | 1,687 | | 10,257 |
| | | | | 88,999 |
| PHARMACEUTICALS—0.4% | | | | |
| Intarcia Therapeutics, Inc., Series DD*,@ | | 1,728 | | 98,185 |
| SYSTEMS SOFTWARE—0.0% | | | | |
| Choicestream, Inc., Cl. A*,@,(b) | | 16,980 | | – |
| Choicestream, Inc., Cl. B*,@,(b) | | 36,618 | | – |
| | | | | – |
| TOTAL UNITED STATES | | | | |
| (Cost $340,541) | | | | 301,624 |
| TOTAL PREFERRED STOCKS | | | | |
| (Cost $340,541) | | | | 301,624 |
| WARRANTS—0.0% | | SHARES | | VALUE |
| UNITED STATES—0.0% | | | | |
| SYSTEMS SOFTWARE—0.0% | | | | |
| Choicestream, Inc., 6/22/26@,(b) | | 4,637 | | – |
| (Cost $4,633) | | | | |
| CORPORATE BONDS—0.0% | | | | VALUE |
| UNITED STATES—0.0% | | | | |
| SYSTEMS SOFTWARE—0.0% | | | | |
| Choicestream, Inc., 11.00%, 8/05/18*@,(b) | | 4,637 | | – |
| (Cost $5) | | | | |
- 16 -
ALGER GLOBAL GROWTH FUND
Schedule of Investments (Unaudited) (Continued) April 30, 2017
| | | | | |
| SPECIAL PURPOSE VEHICLE—0.2% | | SHARES | | | VALUE |
| UNITED STATES—0.2% | | | | | |
| CONSUMER FINANCE—0.2% | | | | | |
| JS Kred SPV I, LLC.@ | | 55,986 | | $ | 63,589 |
| (Cost $55,986) | | | | | |
| Total Investments | | | | | |
| (Cost $24,380,119)(c) | | 97.5 | % | | 27,553,954 |
| Other Assets in Excess of Liabilities | | 2.5 | % | | 708,498 |
| NET ASSETS | | 100.0 | % | $ | 28,262,452 |
# American Depositary Receipts.
(a) Global Depositary Receipts.
(b) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities in Notes to Financial Statements.
(c) At April 30, 2017, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $24,553,853, amounted to $3,000,101 which consisted of aggregate gross unrealized appreciation of
$3,618,527 and aggregate gross unrealized depreciation of $618,426.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.
| | | | | | | | | |
| | | | | % of net assets | | | | % of net assets | |
| | Acquisition | | | (Acquisition | | | Market | as of | |
| Security | Date(s) | | Cost | Date) | | | Value | 4/30/2017 | |
| Choicestream, Inc. | 03/14/14 | $ | 571 | 0.00 | % | $ | 0 | 0.00 | % |
| Choicestream, Inc., 11.00%, | | | | | | | | | |
| 8/05/18 | 08/04/16 | | 5 | 0.00 | % | | 0 | 0.00 | % |
| Choicestream, Inc., 6/22/26 | 08/04/16 | | 4,633 | 0.02 | % | | 0 | 0.00 | % |
| Choicestream, Inc., Cl. A | 12/17/13 | | 13,579 | 0.03 | % | | 0 | 0.00 | % |
| Choicestream, Inc., Cl. B | 07/10/14 | | 21,971 | 0.05 | % | | 0 | 0.00 | % |
| Intarcia Therapeutics, Inc., Series | | | | | | | | | |
| DD | 03/27/14 | | 55,970 | 0.14 | % | | 98,185 | 0.35 | % |
| JS Kred SPV I, LLC. | 06/26/15 | | 55,986 | 0.15 | % | | 63,589 | 0.22 | % |
| Palantir Technologies, Inc., Cl. A | 10/07/14 | | 20,666 | 0.05 | % | | 19,310 | 0.07 | % |
| Palantir Technologies, Inc., Cl. B | 10/07/14 | | 85,521 | 0.22 | % | | 78,742 | 0.28 | % |
| Palantir Technologies, Inc., Cl. D | 10/14/14 | | 11,139 | 0.03 | % | | 10,257 | 0.03 | % |
| Prosetta Biosciences, Inc., Series D | 02/06/15 | | 152,361 | 0.40 | % | | 114,440 | 0.41 | % |
| Total | | | | | | $ | 384,523 | 1.36 | % |
| | | | | | | | | | |
See Notes to Financial Statements.
- 17 -
ALGER GLOBAL GROWTH FUND
Statement of Assets and Liabilities April 30, 2017 (Unaudited)
| | | | |
| | | Alger Global Growth | |
| | | | Fund | |
| |
| ASSETS: | | | | |
| Investments in securities, at value (Identified cost below)* | | | | |
| see accompanying schedules of investments | | $ | 27,439,514 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying | | | |
| schedules of investments | | | 114,440 | |
| Cash and cash equivalents | | | 866,898 | |
| Receivable for investment securities sold | | | 650,994 | |
| Receivable for shares of beneficial interest sold | | | 35,406 | |
| Dividends and interest receivable | | | 71,051 | |
| Receivable from Investment Manager | | | 18,383 | |
| Prepaid expenses | | | 66,734 | |
| Total Assets | | | 29,263,420 | |
| |
| LIABILITIES: | | | | |
| Payable for investment securities purchased | | | 784,385 | |
| Payable for shares of beneficial interest redeemed | | | 121,914 | |
| Accrued investment advisory fees | | | 18,356 | |
| Accrued transfer agent fees | | | 18,836 | |
| Accrued distribution fees | | | 7,580 | |
| Accrued administrative fees | | | 631 | |
| Accrued shareholder administrative fees | | | 356 | |
| Accrued other expenses | | | 48,910 | |
| Total Liabilities | | | 1,000,968 | |
| NET ASSETS | | $ | 28,262,452 | |
| |
| NET ASSETS CONSIST OF: | | | | |
| Paid in capital (par value of $.001 per share) | | | 27,756,187 | |
| Undistributed net investment income (accumulated loss) | | | (69,245 | ) |
| Undistributed net realized gain (accumulated realized loss) | | (2,597,425 | ) |
| Net unrealized appreciation on investments | | | 3,172,935 | |
| NET ASSETS | | $ | 28,262,452 | |
| * Identified cost | | $ | 24,186,999 | |
| ** Identified cost | | $ | 193,120 | |
| See Notes to Financial Statements. | | | | |
| | | | | |
- 18 -
ALGER GLOBAL GROWTH FUND
Statement of Assets and Liabilities April 30, 2017 (Unaudited) (Continued)
| | |
| | Alger Global Growth |
| | | Fund |
| |
| NET ASSETS BY CLASS: | | |
| Class A | $ | 19,697,005 |
| Class C | $ | 4,337,409 |
| Class I | $ | 206,676 |
| Class Z | $ | 4,021,362 |
| |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | |
| Class A | | 892,194 |
| Class C | | 207,022 |
| Class I | | 9,651 |
| Class Z | | 178,960 |
| |
| NET ASSET VALUE PER SHARE: | | |
| Class A — Net Asset Value Per Share Class A | $ | 22.08 |
| Class A — Offering Price Per Share | | |
| (includes a 5.25% sales charge) | $ | 23.30 |
| Class C — Net Asset Value Per Share Class C | $ | 20.95 |
| Class I — Net Asset Value Per Share Class I | $ | 21.41 |
| Class Z — Net Asset Value Per Share Class Z | $ | 22.47 |
| See Notes to Financial Statements. | | |
- 19 -
ALGER GLOBAL GROWTH FUND
Statement of Operations For the six months ended April 30, 2017 (Unaudited)
| | | |
| | Alger Global Growth | |
| | | Fund | |
| |
| INCOME: | | | |
| Dividends (net of foreign withholding taxes*) | $ | 239,676 | |
| Interest | | 435 | |
| Total Income | | 240,111 | |
| |
| EXPENSES: | | | |
| Advisory fees — Note 3(a) | | 112,852 | |
| Distribution fees — Note 3(c) | | | |
| Class A | | 24,566 | |
| Class C | | 22,732 | |
| Class I | | 277 | |
| Shareholder administrative fees — Note 3(f) | | 2,197 | |
| Administration fees — Note 3(b) | | 3,879 | |
| Custodian fees | | 23,778 | |
| Transfer agent fees and expenses — Note 3(f) | | 19,940 | |
| Printing fees | | 13,395 | |
| Professional fees | | 74,581 | |
| Registration fees | | 34,830 | |
| Trustee fees — Note 3(g) | | 602 | |
| Fund accounting fees | | 3,717 | |
| Miscellaneous | | 13,408 | |
| Total Expenses | | 350,754 | |
| Less, expense reimbursements/waivers — Note 3(a) | | (130,085 | ) |
| Net Expenses | | 220,669 | |
| NET INVESTMENT INCOME | | 19,442 | |
| |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | |
| Net realized gain on investments | | 530,403 | |
| Net realized (loss) on foreign currency transactions | | (3,474 | ) |
| Net change in unrealized appreciation on investments and foreign currency | | 2,257,895 | |
| Net realized and unrealized gain on investments and foreign currency | | 2,784,824 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,804,266 | |
| * Foreign withholding taxes | $ | 13,303 | |
| See Notes to Financial Statements. | | | |
- 20 -
ALGER GLOBAL GROWTH FUND
Statements of Changes in Net Assets (Unaudited)
| | | | | | | |
| | | | Alger Global Growth Fund | |
| | | | For the | | | For the | |
| | | | Six Months Ended | | | Year Ended | |
| | | | April 30, 2017 | | | October 31, 2016 | |
| |
| Net investment income | $ | 19,442 | | $ | 136,869 | |
| Net realized gain on investments and foreign currency | | | 526,929 | | | 275,386 | |
| Net change in unrealized appreciation (depreciation) on | | | | | | | |
| investments and foreign currency | | | 2,257,895 | | | (1,191,444 | ) |
| Net increase (decrease) in net assets resulting from operations | | | 2,804,266 | | | (779,189 | ) |
| |
| Dividends and distributions to shareholders from: | | | | | | | |
| Net investment income: | | | | | | | |
| Class A | | | (197,659 | ) | | — | |
| Class C | | | (14,615 | ) | | — | |
| Class I | | | (10,440 | ) | | — | |
| Class Z | | | (42,673 | ) | | — | |
| Total dividends and distributions to shareholders | | | (265,387 | ) | | — | |
| |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | |
| Class A | | | (1,870,527 | ) | | (3,892,139 | ) |
| Class C | | | (807,080 | ) | | 131,502 | |
| Class I | | | (189,578 | ) | | (1,522,028 | ) |
| Class Z | | | 118,444 | | | 1,377,702 | |
| Net decrease from shares of beneficial interest transactions | | | | | | | |
| — Note 6(a) | | | (2,748,741 | ) | | (3,904,963 | ) |
| Total decrease | | | (209,862 | ) | | (4,684,152 | ) |
| |
| Net Assets: | | | | | | | |
| Beginning of period | | | 28,472,314 | | | 33,156,466 | |
| END OF PERIOD | $ | 28,262,452 | | $ | 28,472,314 | |
| Undistributed net investment income (accumulated loss) | $ | (69,245 | ) | $ | 176,700 | |
| See Notes to Financial Statements. | | | | | | | |
- 21 -
ALGER GLOBAL GROWTH FUND
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Alger Global Growth Fund | | | | | | | | | | | | | Class A | | | | | | | | | | | | |
| | | Six months | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| | | 4/30/2017 | (i) | | 10/31/2016 | | | 10/31/2015 | | | 10/31/2014 | | | 10/31/2013 | | | 10/31/2012 | |
| Net asset value, beginning of period | | $ | 20.20 | | | $ | | 20.65 | | | $ | | 20.79 | | | $ | 18.76 | | | $ | | 15.42 | | | $ | | 15.11 | |
| INCOME FROM INVESTMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(ii) | | | 0.02 | | | | | 0.10 | | | | | (0.01 | ) | | | | | (0.02 | ) | | | | (0.01 | ) | | | | (0.06 | ) |
| Net realized and unrealized gain (loss) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| on investments | | | 2.07 | | | | | (0.55 | ) | | | | (0.13 | ) | | | | | 2.05 | | | | | 3.41 | | | | | 0.37 | |
| Total from investment operations | | | 2.09 | | | | | (0.45 | ) | | | | (0.14 | ) | | | | | 2.03 | | | | | 3.40 | | | | | 0.31 | |
| Dividends from net investment income | (0.21 | ) | | | | – | | | | | – | | | | | | – | | | | | (0.06 | ) | | | | – | |
| Net asset value, end of period | | $ | 22.08 | | | $ | | 20.20 | | | $ | | 20.65 | | | $ | 20.79 | | | $ | | 18.76 | | | $ | | 15.42 | |
| Total return(iii) | | | 10.40 | % | | | | (2.18 | )% | | | | (0.67 | )% | | | | | 10.82 | % | | | | 22.20 | % | | | | 2.00 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| omitted) | $ | 19,697 | | $ | 19,805 | | $ | 24,269 | | $ | 30,542 | | $ | 33,657 | | $ | 41,051 | |
| Ratio of gross expenses to average | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| net assets | | | 2.36 | % | | | | 2.37 | % | | | | 2.03 | % | | | | | 1.98 | % | | | | 2.35 | % | | | | 2.29 | % |
| Ratio of expense reimbursements to | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| average net assets | | | (0.86 | )% | | | | (0.87 | )% | | | | (0.53 | )% | | | | | (0.48 | )% | | | | (0.33 | )% | | | | – | |
| Ratio of net expenses to average net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| assets | | | 1.50 | % | | | | 1.50 | % | | | | 1.50 | % | | | | | 1.50 | % | | | | 2.02 | % | | | | 2.29 | % |
| Ratio of net investment income (loss) to | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| average net assets | | | 0.20 | % | | | | 0.52 | % | | | | (0.07 | )% | | | | | (0.08 | )% | | | | (0.07 | )% | | | | (0.38 | )% |
| Portfolio turnover rate | | | 81.74 | % | | | | 138.05 | % | | | | 143.87 | % | | | | | 81.13 | % | | | | 96.45 | % | | | | 84.55 | % |
| See Notes to Financial Statements. | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
- 22 -
ALGER GLOBAL GROWTH FUND
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| Alger Global Growth Fund | | | | | | | | | | Class C | | | | | | | | | | |
| | Six months | | | | | | | | | | | | | | | | | | | | | | |
| | | ended | | Year ended | | Year ended | | Year ended | | Year ended | | Year ended | |
| | 4/30/2017 | (i) | 10/31/2016 | | 10/31/2015 | | | | 10/31/2014 | | 10/31/2013 | | 10/31/2012 | |
| Net asset value, beginning of period | $ | 19.11 | | $ | | 19.69 | | $ | | 19.97 | | $ | 18.15 | | $ | | 14.97 | | $ | | 14.79 | |
| INCOME FROM INVESTMENT | | | | | | | | | | | | | | | | | | | | | | | | |
| OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | (0.06 | ) | | | (0.04 | ) | | | (0.17 | ) | | | | (0.16 | ) | | | (0.13 | ) | | | (0.16 | ) |
| Net realized and unrealized gain (loss) | | | | | | | | | | | | | | | | | | | | | | | | |
| on investments | | 1.96 | | | | (0.54 | ) | | | (0.11 | ) | | | | 1.98 | | | | 3.31 | | | | 0.34 | |
| Total from investment operations | | 1.90 | | | | (0.58 | ) | | | (0.28 | ) | | | | 1.82 | | | | 3.18 | | | | 0.18 | |
| Dividends from net investment income | (0.06 | ) | | | – | | | | – | | | | | – | | | | – | | | | – | |
| Net asset value, end of period | $ | 20.95 | | $ | | 19.11 | | $ | | 19.69 | | $ | 19.97 | | $ | | 18.15 | | $ | | 14.97 | |
| Total return(iii) | | 9.96 | % | | | (2.95 | )% | | | (1.40 | )% | | | | 10.03 | % | | | 21.24 | % | | | 1.20 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's | | | | | | | | | | | | | | | | | | | | | | | | |
| omitted) | $ | 4,337 | | $ | | 4,720 | | $ | | 4,730 | | $ | 5,392 | | $ | | 4,888 | | $ | | 4,048 | |
| Ratio of gross expenses to average | | | | | | | | | | | | | | | | | | | | | | | | |
| net assets | | 3.11 | % | | | 3.13 | % | | | 2.80 | % | | | | 2.75 | % | | | 3.13 | % | | | 3.06 | % |
| Ratio of expense reimbursements to | | | | | | | | | | | | | | | | | | | | | | | | |
| average net assets | | (0.86 | )% | | | (0.88 | )% | | | (0.55 | )% | | | | (0.50 | )% | | | (0.40 | )% | | | – | |
| Ratio of net expenses to average net | | | | | | | | | | | | | | | | | | | | | | | | |
| assets | | 2.25 | % | | | 2.25 | % | | | 2.25 | % | | | | 2.25 | % | | | 2.73 | % | | | 3.06 | % |
| Ratio of net investment income (loss) to | | | | | | | | | | | | | | | | | | | | | | | | |
| average net assets | | (0.56 | )% | | | (0.23 | )% | | | (0.82 | )% | | | | (0.83 | )% | | | (0.81 | )% | | | (1.08 | )% |
| Portfolio turnover rate | | 81.74 | % | | | 138.05 | % | | | 143.87 | % | | | | 81.13 | % | | | 96.45 | % | | | 84.55 | % |
| See Notes to Financial Statements. | | | | | | | | | | | | | | | | | | | | | | | |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
- 23 -
ALGER GLOBAL GROWTH FUND
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | | | | | | | | | | | | | | | | | |
| Alger Global Growth Fund | | | | | | | | | | Class I | | | | | | | | | |
| | | | | | | | | | | | | | | | | From 5/31/2013 | |
| | | Six months ended 4/30/2017 (i) | | | | Year ended 10/31/2016 | | | | Year ended 10/31/2015 | | | | Year ended 10/31/2014 | | | | (commencement of operations) to 10/31/2013 (ii) | |
| Net asset value, beginning of period | $ | 20.36 | | $ | | 20.78 | | $ | | 20.87 | | $ | | 18.78 | | $ | | 16.83 | |
| INCOME FROM INVESTMENT | | | | | | | | | | | | | | | | | | | |
| OPERATIONS: | | | | | | | | | | | | | | | | | | | |
| Net investment income(iii) | | 0.05 | | | | 0.17 | | | | 0.04 | | | | 0.03 | | | | 0.03 | |
| Net realized and unrealized gain (loss) | | | | | | | | | | | | | | | | | | | |
| on investments | | 2.03 | | | | (0.59 | ) | | | (0.13 | ) | | | 2.06 | | | | 1.92 | |
| Total from investment operations | | 2.08 | | | | (0.42 | ) | | | (0.09 | ) | | | 2.09 | | | | 1.95 | |
| Dividends from net investment income | (1.03 | ) | | | – | | | | – | | | | – | | | | – | |
| Net asset value, end of period | $ | 21.41 | | $ | | 20.36 | | $ | | 20.78 | | $ | | 20.87 | | $ | | 18.78 | |
| Total return(iv) | | 10.52 | % | | | (2.02 | )% | | | (0.43 | )% | | | 11.13 | % | | | 11.59 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's | | | | | | | | | | | | | | | | | | | |
| omitted) | $ | 207 | | $ | | 384 | | $ | | 1,914 | | $ | | 1,646 | | $ | | 1,296 | |
| Ratio of gross expenses to average | | | | | | | | | | | | | | | | | | | |
| net assets | | 4.61 | % | | | 2.33 | % | | | 2.02 | % | | | 1.94 | % | | | 2.97 | % |
| Ratio of expense reimbursements to | | | | | | | | | | | | | | | | | | | |
| average net assets | | (3.36 | )% | | | (1.08 | )% | | | (0.77 | )% | | | (0.69 | )% | | | (1.72 | )% |
| Ratio of net expenses to average net | | | | | | | | | | | | | | | | | | | |
| assets | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % |
| Ratio of net investment income (loss) to | | | | | | | | | | | | | | | | | | | |
| average net assets | | 0.47 | % | | | 0.86 | % | | | 0.17 | % | | | 0.17 | % | | | 0.47 | % |
| Portfolio turnover rate | | 81.74 | % | | | 138.05 | % | | | 143.87 | % | | | 81.13 | % | | | 96.45 | % |
| See Notes to Financial Statements. | | | | | | | | | | | | | | | | | | |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges, if applicable.
- 24 -
ALGER GLOBAL GROWTH FUND
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | | | | | | | | | | | | | | | | | |
| Alger Global Growth Fund | | | | | | | | | | Class Z | | | | | | | | | |
| | | | | | | | | | | | | | | | | From 5/31/2013 | |
| | | Six months ended 4/30/2017(i) | | | | Year ended 10/31/2016 | | | | Year ended 10/31/2015 | | | | Year ended 10/31/2014 | | | | (commencement of operations) to 10/31/2013 (ii) | |
| Net asset value, beginning of period | $ | 20.55 | | $ | | 20.92 | | $ | | 20.95 | | $ | | 18.80 | | $ | | 16.83 | |
| INCOME FROM INVESTMENT | | | | | | | | | | | | | | | | | | | |
| OPERATIONS: | | | | | | | | | | | | | | | | | | | |
| Net investment income(iii) | | 0.07 | | | | 0.19 | | | | 0.09 | | | | 0.06 | | | | 0.04 | |
| Net realized and unrealized gain (loss) | | | | | | | | | | | | | | | | | | | |
| on investments | | 2.09 | | | | (0.56 | ) | | | (0.12 | ) | | | 2.09 | | | | 1.93 | |
| Total from investment operations | | 2.16 | | | | (0.37 | ) | | | (0.03 | ) | | | 2.15 | | | | 1.97 | |
| Dividends from net investment income | (0.24 | ) | | | – | | | | – | | | | – | | | | – | |
| Net asset value, end of period | $ | 22.47 | | $ | | 20.55 | | $ | | 20.92 | | $ | | 20.95 | | $ | | 18.80 | |
| Total return(iv) | | 10.60 | % | | | (1.77 | )% | | | (0.14 | )% | | | 11.44 | % | | | 11.71 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's | | | | | | | | | | | | | | | | | | | |
| omitted) | $ | 4,021 | | $ | | 3,563 | | $ | | 2,243 | | $ | | 1,308 | | $ | | 112 | |
| Ratio of gross expenses to average | | | | | | | | | | | | | | | | | | | |
| net assets | | 2.25 | % | | | 2.36 | % | | | 2.20 | % | | | 3.72 | % | | | 12.42 | % |
| Ratio of expense reimbursements to | | | | | | | | | | | | | | | | | | | |
| average net assets | | (1.16 | )% | | | (1.31 | )% | | | (1.21 | )% | | | (2.73 | )% | | | (11.43 | )% |
| Ratio of net expenses to average net | | | | | | | | | | | | | | | | | | | |
| assets | | 1.09 | % | | | 1.05 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % |
| Ratio of net investment income (loss) to | | | | | | | | | | | | | | | | | | | |
| average net assets | | 0.63 | % | | | 0.92 | % | | | 0.44 | % | | | 0.30 | % | | | 0.62 | % |
| Portfolio turnover rate | | 81.74 | % | | | 138.05 | % | | | 143.87 | % | | | 81.13 | % | | | 96.45 | % |
| See Notes to Financial Statements. | | | | | | | | | | | | | | | | | | |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges, if applicable.
- 25 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 — General:
Alger Global Growth 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 qualifies as an investment company as defined in Financial
Accounting Standards Board Accounting Standards Codification 946-Financial Services –
Investment Companies. The Fund’s investment objective is long-term capital appreciation.
It seeks to achieve its objective by investing in equity securities in the United States and
foreign countries. The Fund’s foreign investments will include securities of companies
in both developed and emerging market countries. The Fund offers Class A, C, I and Z
shares. Class A shares are generally subject to an initial sales charge while Class C shares
are generally subject to a deferred sales charge. Class I and Z shares are sold to institutional
investors without an initial or deferred sales charge. Each class has identical rights to assets
and earnings except that each share class bears the pro rata allocation of the Fund’s expense
other than a Class Expense (not including advisory or custodial fees or other expenses
related to the management of the Fund’s assets) to a share class.
NOTE 2 — Significant Accounting Policies:
(a) Investment Valuation: The Fund values its financial instruments at fair value using
independent dealers or pricing services under policies approved by the Fund’s Board of
Trustees (“Board”). Investments are valued on each day the New York Stock Exchange (the
“NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern Standard Time).
Equity securities and option contracts for which valuation information is readily available are
valued at the last quoted sales price or official closing price as reported by an independent
pricing service on the primary market or exchange on which they are traded. In the absence
of quoted sales, such securities are valued at the bid price or, in the absence of a recent
bid price, the equivalent as obtained from one or more of the major market makers for the
securities to be valued.
The industry classifications of the Funds’ investments, as presented in the accompanying
Schedules of Investments, represent management’s belief as to the most meaningful
presentation of the classification of such investments. For Fund compliance purposes, the
Funds’ industry classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or rating group indexes, with the
primary source being Global Industry Classification Standard (GICS).
Debt securities generally trade in the over-the-counter market. Debt securities with
remaining maturities of more than sixty days at the time of acquisition are valued on
the basis of last available bid prices or current market quotations provided by dealers
or pricing services. In determining the value of a particular investment, pricing services
may use certain information with respect to transactions in such investments, quotations
from dealers, pricing matrixes, market transactions in comparable investments, various
relationships observed in the market between investments and calculated yield measures
based on valuation technology commonly employed in the market for such investments.
Asset-backed and mortgage-backed securities are valued by independent pricing services
- 26 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
using models that consider estimated cash flows of each tranche of the security, establish a
benchmark yield and develop an estimated tranche-specific spread to the benchmark yield
based on the unique attributes of the tranche. Debt securities with a remaining maturity of
sixty days or less are valued at amortized cost which approximates market value.
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.
Securities in which the Fund invests may be traded in foreign markets that close before the
close of the NYSE. Developments that occur between the close of the foreign markets
and the close of the NYSE may result in adjustments to the foreign closing prices to reflect
what the investment adviser, pursuant to policies established by the Board, believes to be
the fair value of these securities as of the close of the NYSE. The Fund may also fair value
securities in other situations, for example, when a particular foreign market is closed but the
Fund is open.
Financial Accounting Standards Board Accounting Standards Codification 820 – Fair Value
Measurements and Disclosures (“ASC 820”) defines fair value as the price that the Fund
would receive upon selling an investment in a timely transaction to an independent buyer
in the principal or most advantageous market of the investment. ASC 820 established a
three-tier hierarchy to maximize the use of observable market data and minimize the use of
unobservable inputs and to establish classification of fair value measurements for disclosure
purposes. Inputs refer broadly to the assumptions that market participants would use in
pricing the asset or liability and may be observable or unobservable. Observable inputs
are based on market data obtained from sources independent of the Fund. Unobservable
inputs are inputs that reflect the Funds’ own assumptions based on the best information
available in the circumstances. The three-tier hierarchy of inputs is summarized in the three
broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – significant other observable inputs (including quoted prices for similar
investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Funds’ own assumptions in
determining the fair value of investments)
The Fund’s valuation techniques are generally consistent with either the market or the
income approach to fair value. The market approach considers prices and other relevant
information generated by market transactions involving identical or comparable assets
to measure fair value. The income approach converts future amounts to a current, or
discounted, single amount. These fair value measurements are determined on the basis
of the value indicated by current market expectations about such future events. Inputs
for Level 1 include exchange-listed prices and broker quotes in an active market. Inputs
for Level 2 include the last trade price in the case of a halted security, an exchange-listed
price which has been adjusted for fair value factors, and prices of closely related securities.
Additional Level 2 inputs include an evaluated price which is based upon a compilation of
observable market information such as spreads for fixed income and preferred securities.
- 27 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Inputs for Level 3 include revenue multiples, earnings before interest, taxes, depreciation
and amortization (“EBITDA”) multiples, discount rates, and the probabilities of success of
certain outcomes. Such unobservable market information may be obtained from a company’s
financial statements and from industry studies, market data, and market indicators such as
benchmarks and indexes. Because of the inherent uncertainty and often limited markets for
restricted securities, the values may significantly differ from values if there was an active
market.
Valuation processes are determined by a Valuation Committee (“Committee”) established
by the Board and comprised of representatives of the Fund’s investment adviser. The
Committee reports its fair valuation determinations to the Board which is responsible for
approving valuation policy and procedures.
While the Committee meets on an as-needed basis, the Committee generally meets
quarterly to review and evaluate the effectiveness of the procedures for making fair value
determinations. The Committee considers, among other things, the results of quarterly
back testing of the fair value model for foreign securities, pricing comparisons between
primary and secondary price sources, the outcome of price challenges put to the Fund’s
pricing vendor, and variances between transactional prices and previous mark-to-markets.
The Fund will record a change to a security’s fair value level if new inputs are available
or it becomes evident that inputs previously considered for leveling have changed or are
no longer relevant. Transfers between Levels 1, 2 and 3 are recognized at the end of the
reporting period.
(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars, foreign cash
and overnight time deposits.
(c) 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.
Premiums and discounts on debt securities purchased are amortized or accreted over the
lives of the respective securities.
(d) Foreign Currency Translations: The books and records of the Fund are maintained in U.S.
dollars. Foreign currencies, investments and other assets and liabilities are translated into
U.S. dollars at the prevailing rates of exchange on the valuation date. Purchases and sales
of investment securities and income and expenses are translated into U.S. dollars at the
prevailing exchange rates on the respective dates of such transactions.
Net realized gains and losses on foreign currency transactions represent net gains and losses
from the disposition of foreign currencies, currency gains and losses realized between the
trade dates and settlement dates of security transactions, and the difference between the
amount of net investment income accrued and the U.S. dollar amount actually received.
The effects of changes in foreign currency exchange rates on investments in securities
- 28 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
are included in realized and unrealized gain or loss on investments in the accompanying
Statement of Operations.
(e) Dividends to Shareholders: Dividends payable to shareholders are recorded on the ex-
dividend date. The Fund declares and pays dividends from net investment income annually.
Dividends from net realized gains, offset by any loss carryforward, are declared and paid
annually after the end of the fiscal year in which earned.
Each class is treated separately in determining the amounts of dividends from net investment
income payable to holders of its shares.
The characterization of distributions to shareholders for financial reporting purposes is
determined in accordance with federal income tax rules. Therefore, the source of the Fund’s
distributions may be shown in the accompanying financial statements as either from, or in
excess of, net investment income, net realized gain on investment transactions or return of
capital, depending on the type of book/tax differences that may exist. Capital accounts within
the financial statements are adjusted for permanent book/tax differences. Reclassifications
result primarily from the difference in tax treatment of net operating losses, passive foreign
investment companies, and foreign currency transactions. The reclassifications are done
annually at fiscal year end and have no impact on the net asset value of the Fund and are
designed to present the Fund’s capital accounts on a tax basis.
(f) Lending of Fund Securities: The Fund may lend its securities to financial institutions,
provided that the market value of the securities loaned will not at any time exceed one
third of the Fund’s total assets, as defined in its prospectus. The Fund earns fees on the
securities loaned, which are included in interest income in the accompanying Statement
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 loan is collateralized by
cash or securities that are maintained with the Custodian in an amount equal to at least 102
percent of the current market value of U.S. loaned securities or 105 percent for non-U.S.
loaned securities. The market value of the loaned securities is determined at the close of
business of the Fund. Any required additional collateral is delivered to the Custodian and
any excess collateral is returned to the borrower on the next business day. In the event the
borrower fails to return the loaned securities when due, the Fund may take the collateral
to replace the securities. If the value of the collateral is less than the purchase cost of
replacement securities, the Custodian shall be responsible for any shortfall, but only to the
extent that the shortfall is not due to any diminution in collateral value, as defined in the
securities lending agreement. The Fund is required to maintain the collateral in a segregated
account and determine its value each day until the loaned securities are returned. Cash
collateral may be invested as determined by the Fund. Collateral is returned to the borrower
upon settlement of the loan. There were no securities loaned as of April 30, 2017.
(g) Federal Income Taxes: It is the Fund’s policy to comply with the requirements of the
Internal Revenue Code Subchapter M applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Provided that the Fund maintains
such compliance, no federal income tax provision is required.
- 29 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Financial Accounting Standards Board Accounting Standards Codification 740 – Income
Taxes (“ASC 740”) requires the Fund to measure and recognize in its financial statements
the benefit of a tax position taken (or expected to be taken) on an income tax return
if such position will more likely than not be sustained upon examination based on the
technical merits of the position. No tax years are currently under investigation. The Fund
files income tax returns in the U.S., as well as New York State and New York City. The
statute of limitations on the Fund’s tax returns remains open for the tax years 2013-2016.
Management does not believe there are any uncertain tax positions that require recognition
of a tax liability.
(h) Allocation Methods: Income, realized and unrealized gains and losses, and expenses of the
Fund are allocated among the Fund’s classes based on relative net assets, with the exception
of distribution fees, transfer agency fees, and shareholder servicing and related fees.
(i) Estimates: These financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America, which require using estimates
and assumptions that affect the reported amounts therein. These unaudited interim financial
statements reflect all adjustments which are, in the opinion of management, necessary to
present a fair statement of results for the interim period. Actual results may differ from
those estimates. All such estimates are of normal recurring nature.
NOTE 3 — Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory Fees: Fees incurred by the Fund, pursuant to the provisions of the Fund’s
Investment Advisory Agreement with Fred Alger Management, Inc. (“Alger Management”
or the “Manager”), are payable monthly and computed based on the following rates. The
actual rate paid as a percentage of average daily net assets, for the six months ended April
30, 2017, is set forth below under the heading “Actual Rate.”
| | | | | | | |
| | | Tier 1 | | Tier 2 | | Actual Rate | |
| Alger Global | | | | | | | |
| Growth Fund(a) | | 0.800 | % | 0.700 | % | 0.800 | % |
(a) Tier 1 rate is paid on assets up to $500 million, Tier 2 rate is paid on assets in excess of $500 million.
Effective March 1, 2017, Alger Management has established expense caps for the share
classes, through February 28, 2018, whereby it reimburses the share classes if annualized
operating expenses (excluding interest, taxes, brokerage, dividend expenses and extraordinary
expenses) exceed the rates, based on average daily net assets, listed below:
| | | | | |
| | | | | | FEES WAIVED / |
| | | | | | REIMBURSED FOR |
| | | | | | THE SIX MONTHS |
| | | CLASS | | ENDED |
| | A | C | I | Z | APRIL 30, 2017 |
| Alger Global Growth Fund | 1.50% | 2.25% | 1.25% | 1.09% | $ | 130,085 |
Fred Alger Management Inc., may recoup reimbursed expenses during the one-year term of
the expense reimbursement contract if the expense ratio falls below the stated limitation.
- 30 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(b) Administration Fees: Fees incurred by the Fund, pursuant to the provisions of the Fund’s
Administration Agreement with Fred Alger Management, Inc., are payable monthly and
computed based on the average daily net assets of the Fund at the annual rate of 0.0275%.
(c) Distribution/Shareholder Servicing Fees: The Fund has adopted a distribution plan pursuant
to which the Fund pays Alger Inc. a fee at the annual rate of 0.25% of the average daily
net assets of the Class A and Class I shares and 1.00% of the average daily net assets
of the Class C shares to compensate Alger Inc. for its activities and expenses incurred in
distributing the Fund’s shares and shareholder servicing. Fees paid may be more or less than
the expenses incurred by Alger Inc.
(d) Sales Charges: Purchases and sales of shares of the Fund may be subject to initial sales
charges or contingent deferred sales charges. For the six months ended April 30, 2017,
the initial sales charges and contingent deferred sales charges imposed, all of which were
retained by Fred Alger & Company, Incorporated, the Fund’s distributor (the “Distributor”
or “Alger Inc.”), were approximately $1,265 and $57, respectively. The initial sales charges
and contingent deferred sales charges are used by Alger Inc. to offset distribution expenses
previously incurred. Sales charges do not represent expenses of the Fund.
(e) Brokerage Commissions: During the six months ended April 30, 2017, the Fund paid Alger
Inc. $7,153 in connection with securities transactions.
(f) Shareholder Administrative Fees: The Fund has entered into a shareholder administrative
services agreement with Alger Management to compensate Alger Management for its liaison
and administrative oversight of Boston Financial Data Services, Inc. the transfer agent, and
other related services. The Fund compensates Alger Management at the annual rate of
0.0165% of the respective average daily net assets of Class A and Class C shares and 0.01%
of the respective average daily net assets of the Class I and Class Z shares for these services.
Alger Management makes payments to intermediaries that provide sub-accounting services
to omnibus accounts invested in the Fund. A portion of the fees paid by Alger Management
to intermediaries that provide sub-accounting services are charged back to the Fund, subject
to certain limitations, as approved by the Board. For the six months ended April 30, 2017,
Alger Management charged back $8,202 to the Fund for these services, which are included
in transfer agent fees and expenses in the accompanying Statement of Operations.
(g) Trustees’ Fees: Effective March 1, 2016, each Independent Trustee receives a fee of
$27,250 for each board meeting attended, to a maximum of $109,000 per annum, paid pro
rata by each fund in the Alger Fund Complex, plus travel expenses incurred for attending
the meeting. The term “Alger Fund Complex” refers to the Fund, The Alger Institutional
Funds, The Alger Funds II, The Alger Portfolios and Alger Global Fund, each of which is a
registered investment company managed by Fred Alger Management, Inc. The Independent
Trustee appointed as Chairman of the Board of Trustees receives additional compensation
of $26,000 per annum paid pro rata by each fund in the Alger Fund Complex. Additionally,
each member of the Audit Committee receives a fee of $2,500 for each Audit Committee
- 31 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
meeting attended to a maximum of $10,000 per annum, paid pro rata by each fund in the
Alger Fund Complex.
(h) Interfund Loans: The Fund, along with other funds advised by Alger Management, may
borrow money from and lend money to each other for temporary or emergency purposes.
To the extent permitted under its investment restrictions, each fund may lend uninvested
cash in an amount up to 15% of its net assets to other funds. If a fund has borrowed from
other funds and has aggregate borrowings from all sources that exceed 10% of the fund’s
total assets, such fund will secure all of its loans from other funds. The interest rate charged
on interfund loans is equal to the average of the overnight time deposit rate and bank loan
rate available to the funds. There were no interfund loans outstanding as of April 30, 2017.
(i) Other Transactions with Affiliates: Certain officers of the Fund are directors and officers of
Alger Management and Alger Inc. At April 30, 2017, Alger Management and its affiliated
entities owned the following shares of the Fund:
| | | | |
| | | SHARE CLASS |
| | | I | | Z |
| Alger Global Growth Fund | | 6,245 | | 20,176 |
NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by the Fund for the six months ended
April 30, 2017:
| | | | | | |
| | | | PURCHASES | | | SALES |
| Alger Global Growth Fund | | $ | 22,599,741 | | $ | 25,034,678 |
Transactions in foreign securities may involve certain considerations and risks not typically
associated with those of U.S. companies because of, among other factors, the level of
governmental supervision and regulation of foreign security markets, and the possibility of
political or economic instability. Additional risks associated with investing in the emerging
markets include increased volatility, limited liquidity, and less stringent regulatory and legal
system.
NOTE 5 — Borrowings:
The Fund may borrow from its custodian on an uncommitted basis. The Fund pays the
custodian a market rate of interest, generally based upon the London Interbank Offered
Rate. The Fund may also borrow from other funds advised by Alger Management, as
discussed in Note 3(h). For the six months ended April 30, 2017, the Fund had no such
borrowings.
- 32 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
NOTE 6 — Share Capital:
(a) The Fund has an unlimited number of authorized shares of beneficial interest of $.001
par value. Transactions of shares of beneficial interest were as follows:
| | | | | | | | | | | | | | | |
| | | FOR THE SIX MONTHS ENDED | | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2017 | | | | OCTOBER 31, 2016 | |
| | | SHARES | | | | AMOUNT | | | | SHARES | | | | AMOUNT | |
| Alger Global Growth Fund | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | |
| Shares sold | | 12,074 | | $ | | 254,734 | | | | 26,306 | | $ | | 527,477 | |
| Dividends reinvested | | 8,728 | | | | 181,187 | | | | — | | | | — | |
| Shares redeemed | | (109,154 | ) | | | (2,306,448 | ) | | | (220,777 | ) | | | (4,419,616 | ) |
| Net decrease | | (88,352 | ) | | $ | (1,870,527 | ) | | | (194,471 | ) | | $ | (3,892,139 | ) |
| Class C: | | | | | | | | | | | | | | | |
| Shares sold | | 4,790 | | $ | | 96,400 | | | | 36,112 | | $ | | 700,092 | |
| Dividends reinvested | | 684 | | | | 13,517 | | | | — | | | | — | |
| Shares redeemed | | (45,473 | ) | | | (916,997 | ) | | | (29,364 | ) | | | (568,590 | ) |
| Net increase (decrease) | | (39,999 | ) | | $ | (807,080 | ) | | | 6,748 | | $ | | 131,502 | |
| Class I: | | | | | | | | | | | | | | | |
| Shares sold | | — | | $ | | — | | | | 10,971 | | $ | | 219,633 | |
| Dividends reinvested | | 505 | | | | 10,158 | | | | — | | | | — | |
| Shares redeemed | | (9,697 | ) | | | (199,736 | ) | | | (84,234 | ) | | | (1,741,661 | ) |
| Net decrease | | (9,192 | ) | | $ | (189,578 | ) | | | (73,263 | ) | | $ | (1,522,028 | ) |
| Class Z: | | | | | | | | | | | | | | | |
| Shares sold | | 30,870 | | $ | | 667,069 | | | | 95,159 | | $ | | 1,973,446 | |
| Dividends reinvested | | 1,159 | | | | 24,451 | | | | — | | | | — | |
| Shares redeemed | | (26,498 | ) | | | (573,076 | ) | | | (28,953 | ) | | | (595,744 | ) |
| Net increase | | 5,531 | | $ | | 118,444 | | | | 66,206 | | $ | | 1,377,702 | |
NOTE 7 — Income Tax Information:
At October 31, 2016, the Fund, for federal income tax purposes, had a capital loss
carryforward of $2,973,963 which expires in 2017. Such amounts may be applied against
future net realized gains until the earlier of their utilization or expiration. During the year
ended October 31, 2016 the Fund utilized $132,708 of its capital loss carryforwards.
Under the Regulated Investment Company Modernization Act of 2010, capital losses
incurred by the Funds on or after January 1, 2011 (Post Act) will not be subject to expiration.
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is
determined annually and is attributable primarily to the tax deferral of losses on wash sales,
U.S. Internal Revenue Code Section 988 currency transactions, the realization of unrealized
appreciation of passive foreign investment companies, and partnership basis adjustments.
NOTE 8 — Fair Value Measurements
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s
investments carried at fair value on a recurring basis. Based upon the nature, characteristics,
- 33 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
and risks associated with its investments, the Fund has determined that presenting them by
security type and sector is appropriate.
| | | | | | | | | | | | |
| Alger Global Growth Fund | TOTAL FUND | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | |
| Consumer Discretionary | $ | 3,005,147 | $ | | 2,495,433 | $ | | 509,714 | | | — | |
| Consumer Staples | | 1,961,751 | | 832,820 | | 1,128,931 | | | — | |
| Energy | | 2,517,538 | | 2,019,628 | | 497,910 | | | — | |
| Financials | | 5,546,825 | | 2,856,424 | | 2,690,401 | | | — | |
| Health Care | | 3,235,259 | | 2,752,539 | | 482,720 | | | — | |
| Industrials | | 2,631,919 | | 2,034,845 | | 597,074 | | | — | |
| Information Technology | | 6,377,552 | | 5,009,398 | | 1,348,844 | | 19,310 | * |
| Materials | | 1,272,084 | | 687,976 | | 584,108 | | | — | |
| Real Estate | | 216,257 | | 216,257 | | | — | | | — | |
| Telecommunication Services | | 280,640 | | | — | | 280,640 | | | — | |
| Utilities | | 143,769 | | | — | | 143,769 | | | — | |
| TOTAL COMMON STOCKS | $ | 27,188,741 | $ | | 18,905,320 | $ | | 8,264,111 | $ | | 19,310 | |
| CORPORATE BONDS | | | | | | | | | | | | |
| Information Technology | | — | | | — | | | — | | | —* | |
| PREFERRED STOCKS | | | | | | | | | | | | |
| Health Care | | 212,625 | | | — | | | — | | 212,625 | |
| Information Technology | | 88,999 | | | — | | | — | | 88,999 | * |
| TOTAL PREFERRED STOCKS | $ | 301,624 | | | — | | | — | $ | | 301,624 | |
| SPECIAL PURPOSE VEHICLE | | | | | | | | | | | | |
| Financials | | 63,589 | | | — | | | — | | 63,589 | |
| WARRANTS | | | | | | | | | | | | |
| Information Technology | | — | | | — | | | — | | | —* | |
| TOTAL INVESTMENTS IN | | | | | | | | | | | | |
| SECURITIES | $ | 27,553,954 | $ | | 18,905,320 | $ | | 8,264,111 | $ | | 384,523 | |
*Alger Global Growth Fund’s shares of Choicestream Inc. common stock, preferred stock,
warrants and corporate bonds are classified as a Level 3 investment and are fair valued at
zero as of April 30, 2017.
- 34 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | | |
| | | FAIR VALUE | |
| | MEASUREMENTS | |
| | USING SIGNIFICANT | |
| | UNOBSERVABLE | |
| | INPUTS (LEVEL 3) | |
| Alger Global Growth Fund | Common Stocks | |
| Opening balance at November 1, 2016 | $ | 24,296 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | – | |
| Included in net unrealized gain (loss) on investments | | (4,986 | ) |
| Purchases and sales | | | | |
| Purchases | | – | |
| Sales | | – | |
| Closing balance at April 30, 2017 | | | 19,310 | |
| The amount of total gains or losses for the period included in net realized | | | | |
| and unrealized gain (loss) attributable to change in unrealized appreciation | | | | |
| (depreciation) relating to investments still held at 4/30/2017 | $ | (4,986 | ) |
| |
| Alger Global Growth Fund | Corporate Bonds | |
| Opening balance at November 1, 2016 | $ | 4,637 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | – | |
| Included in net unrealized gain (loss) on investments | | (4,637 | ) |
| Purchases and sales | | | | |
| Purchases | | – | |
| Sales | | – | |
| Closing balance at April 30, 2017 | | | — | |
| The amount of total gains or losses for the period included in net realized | | | | |
| and unrealized gain (loss) attributable to change in unrealized appreciation | | | | |
| (depreciation) relating to investments still held at 4/30/2017 | $ | (4,637 | ) |
- 35 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | | |
| Alger Global Growth Fund | Preferred Stocks | |
| Opening balance at November 1, 2016 | $ | 368,937 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | – | |
| Included in net unrealized gain (loss) on investments | | (67,313 | ) |
| Purchases and sales | | | | |
| Purchases | | – | |
| Sales | | – | |
| Closing balance at April 30, 2017 | | | 301,624 | |
| The amount of total gains or losses for the period included in net realized | | | | |
| and unrealized gain (loss) attributable to change in unrealized appreciation | | | | |
| (depreciation) relating to investments still held at 4/30/2017 | $ | (67,313 | ) |
| |
| |
| | Special Purpose | |
| Alger Global Growth Fund | | | Vehicle | |
| Opening balance at November 1, 2016 | $ | 58,175 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | – | |
| Included in net unrealized gain (loss) on investments | | 5,414 | |
| Purchases and sales | | | | |
| Purchases | | – | |
| Sales | | – | |
| Closing balance at April 30, 2017 | | | 63,589 | |
| The amount of total gains or losses for the period included in net realized | | | | |
| and unrealized gain (loss) attributable to change in unrealized appreciation | | | | |
| (depreciation) relating to investments still held at 4/30/2017 | $ | 5,414 | |
- 36 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | | |
| Alger Global Growth Fund | | | Warrants | |
| Opening balance at November 1, 2016 | $ | 4,544 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | – | |
| Included in net unrealized gain (loss) on investments | | (4,544 | ) |
| Purchases and sales | | | | |
| Purchases | | – | |
| Sales | | – | |
| Closing balance at April 30, 2017 | | | 0 | |
| The amount of total gains or losses for the period included in net realized | | | | |
| and unrealized gain (loss) attributable to change in unrealized appreciation | | | | |
| (depreciation) relating to investments still held at 4/30/2017 | $ | (4,544 | ) |
The following table provides quantitative information about our Level 3 fair value
measurements of our investments as of April 30, 2017. In addition to the techniques and
inputs noted in the table below, according to our valuation policy we may also use other
valuation techniques and methodologies when determining our fair value measurements.
The table below is not intended to be all-inclusive, but rather provides information on the
Level 3 inputs as they relate to our fair value measurements.
| | | | | | | |
| | | Fair Value | Valuation | Unobservable | | | Weighted |
| | | April 30, 2017 | Methodology | Input | Range/Input | | Average Inputs |
| Alger Global Growth Fund | | | | | | | |
| Common Stock | $ | - | Income | Discount Rate | 40% | | N/A |
| Approach |
| Common Stock | | 19,310 | Income | Revenue Multiple | 10x-18x | | N/A |
| | | | Approach | Discount Rate | 20% | | |
| | | | | Scenario | 10-50% | | |
| | | | | Probability | | | |
| | | | | Time to Exit | 1.3-3.3 Years | | |
| Preferred Stocks | | 0 | Income | Discount Rate | 40% | | N/A |
| Approach |
| Preferred Stocks | | 88,999 | Income | Revenue Multiple | 10x-18x | | N/A |
| | | | Approach | Discount Rate | 20% | | |
| | | | | Scenario | 10-50% | | |
| | | | | Probability | | | |
| | | | | Time to Exit | 1.3-3.3 Years | | |
| Preferred Stocks | | 98,185 | Market | Scenario | 80 to 100% | | N/A |
| | | | Approach | Probability | | | |
| | | | | Time to Exit | 1.0-2.5 Years | | |
| | | | | Volatility | 67.8% | | |
| Preferred Stocks | | 114,440 | Income | Discount Rate | 35.5-39.5% | | N/A |
| Approach |
| Warrants | | 0 | Income | Discount Rate | 40% | | N/A |
| Approach |
- 37 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | | | | |
| Corporate Bonds | 0 | Income | Discount Rate | 40% | | N/A |
| | | Approach | | | | |
| Special Purpose Vehicle | 63,589 | Market | Revenue Multiple | 2.6x-3.1x | | N/A |
| | | Approach | | | | |
The significant unobservable inputs used in the fair value measurement of the Fund’s
securities are revenue and EBITDA multiples, discount rates, and the probabilities of
success of certain outcomes. Significant increases and decreases in these inputs in isolation
and interrelationships between those inputs could result in significantly higher or lower fair
value measurements than those noted in the table above. Generally, increases in revenue and
EBITDA multiples, decreases in discount rates, and increases in the probabilities of success
results in higher fair value measurements, whereas decreases in revenues and EBITDA
multiples, increases in discount rates, and decreases in the probabilities of success results in
lower fair value measurements.
On April 30, 2017, there were no transfers of securities between Level 1 and Level 2.
Certain of the Fund’s assets and liabilities are held at carrying amount or face value, which
approximates fair value for financial statement purposes. As of April 30, 2017, such assets
are categorized within the ASC 820 disclosure hierarchy as follows:
| | | | | | | | | |
| | TOTAL FUND | LEVEL 1 | | | LEVEL 2 | | LEVEL 3 |
| Cash, Foreign cash and Cash equivalents: | | | | | | | | | |
| Alger Global Growth Fund | $ | 866,897 | $ | (112 | ) | $ | 867,010 | | | — |
NOTE 9 — Derivatives:
Financial Accounting Standards Board Accounting Standards Codification 815 – Derivatives
and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for
using derivatives, quantitative disclosures about fair value amounts of and gains and losses
on derivative instruments, and disclosures about credit-risk-related contingent features in
derivative agreements.
There were no open derivative instruments as of April 30, 2017.
NOTE 10 — Principal Risks:
In the normal course of business, the Fund invests in securities and enters into transactions
where risks exist due to fluctuations in the market (market risk) or failure of the issuer
of a security to meet all its obligations (issuer credit risk). The value of securities held by
the Fund may decline in response to certain events, including those directly involving the
issuers whose securities are owned by the Fund; conditions affecting the general economy;
overall market changes; local, regional or global political, social or economic instability; and
currency and interest rate and price fluctuations. Similar to issuer credit risk, the Fund may
be exposed to counterparty credit risk, or the risk that an entity with which the Fund has
unsettled or open transactions may fail to or be unable to perform on its commitments. The
Fund manages counterparty credit risk by entering into transactions only with counterparties
that it believes have the financial resources to honor their obligations and by monitoring
- 38 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
the financial stability of those counterparties. Financial assets, which potentially expose
the Fund to market, issuer and counterparty credit risks, consist principally of financial
instruments and receivables due from counterparties. The extent of the Fund’s exposure to
market, issuer and counterparty credit risks with respect to these financial assets is generally
approximated by its value recorded in the Statement of Assets and Liabilities, less any
collateral held by the Fund.
The Funds invest in companies that are not yet available in the public markets and that are
accessible only through private equity investments. The Funds may also invest in venture
capital or private equity funds, direct private equity investments and other investments that
may have limited liquidity. There may be no trading market for these securities, and their
sale or transfer may be limited or prohibited by contract or legal requirements, or may be
dependent on an exit strategy, such as an initial public offering or the sale of a business,
which may not occur, or may be dependent on managerial assistance provided by other
investors and their willingness to provide additional financial support. The securities may
be able to be liquidated, if at all, at disadvantageous prices. As a result, the Funds may be
required to hold these positions for several years, if not longer, regardless of adverse price
movements. Such positions may cause the Funds to be less liquid than would otherwise be
the case.
NOTE 11 — Affiliated Securities:
The issuers of the securities listed below are deemed to be affiliates of the Fund because the
Fund or its affiliates owned 5% or more of the issuer’s voting securities during all or part
of the six months ended April 30, 2017. Purchase and sale transactions and interest income
earned during the period were as follows:
- 39 -
Alger Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | | | | | | |
| | Shares/Par | | | Shares/Par | | | | |
| | at | | | at | | Realized | | Value at |
| | October 31, | Purchases/ | Sales/ | April | | Gain | | April |
| Security | 2016 | Conversion | Conversion | 30, 2017 | Interest Income | (Loss) | | 30, 2017 |
| |
| Alger Global Growth Fund | | | | | | | |
| Common Stock | | | | | | | | |
| Choicestream, Inc.* | 1,969 | – | – | 1,969 | – | – | $ | 0 |
| Preferred Stocks | | | | | | | | |
| Choicestream, Inc. | | | | | | | | |
| Series A and B* | 53,598 | – | – | 53,598 | – | – | | 0 |
| Prosetta | | | | | | | | |
| Biosciences, Inc., | | | | | | | | |
| Series D* | 33,858 | – | – | 33,858 | – | – | | 114,440 |
| Corporate Bonds | | | | | | | | |
| Choicestream, Inc., | | | | | | | | |
| 11.0%, 8/05/18 | 4,637 | – | – | 4,637 | – | – | | 0 |
| Warrants | | | | | | | | |
| Choicestream, | | | | | | | | |
| Inc.6/22/26* | 4,637 | – | – | 4,637 | – | – | | 0 |
| * Non-income producing security. | | | | | | |
NOTE 12 — Subsequent Events:
Management of the Fund has evaluated events that have occurred subsequent to April 30,
2017 through the issuance date of the Financial Statements. No such events have been
identified which require recognition and/or disclosure.
- 40 -
ALGER GLOBAL GROWTH FUND
ADDITIONAL INFORMATION (Unaudited)
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: transaction costs, if applicable,
including sales charges (loads) and redemption fees; and ongoing costs, including
management fees, distribution (12b-1) fees, if applicable, and other fund expenses. This
example is intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in other mutual
funds.
The example below is based on an investment of $1,000 invested at the beginning of the
six-month period starting November 1, 2016 and ending April 30, 2017.
Actual Expenses
The first line for each class of shares in the table below provides information about actual
account values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you would have paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first line under the
heading entitled “Expenses Paid during the Period” to estimate the expenses you paid on
your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each class of shares in the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund’s actual expense
ratios for each class of shares and an assumed rate of return of 5% per year before expenses,
which is not the Fund’s actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs
only and do not reflect any transaction costs, such as sales charges (loads) and redemption
fees. Therefore, the second line under each class of shares in the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your costs would
have been higher.
- 41 -
ALGER GLOBAL GROWTH FUND
ADDITIONAL INFORMATION (Unaudited) (Continued)
| | | | | | | | | | |
| | | | | | | | | Annualized | |
| | | | | | | Expenses | Expense Ratio | |
| | | Beginning | | Ending | Paid During | | For the | |
| | | | Account | | Account | the Six Months | Six Months | |
| | | | Value | | Value | | Ended | | Ended | |
| | | November 1, 2016 | | April 30, 2017 | April 30, 2017(a) | April 30, 2017(b) | |
| Alger Global Growth Fund | | | | | | | | | |
| Class A | Actual | $ | 1,000.00 | $ | 1,104.03 | $ | 7.83 | | 1.50 | % |
| | Hypothetical(c) | | 1,000.00 | | 1,017.36 | | 7.50 | | 1.50 | |
| Class C | Actual | | 1,000.00 | | 1,099.64 | | 11.71 | | 2.25 | |
| | Hypothetical(c) | | 1,000.00 | | 1,013.64 | | 11.23 | | 2.25 | |
| Class I | Actual | | 1,000.00 | | 1,105.21 | | 6.52 | | 1.25 | |
| | Hypothetical(c) | | 1,000.00 | | 1,018.60 | | 6.26 | | 1.25 | |
| Class Z | Actual | | 1,000.00 | | 1,105.99 | | 5.69 | | 1.09 | |
| | Hypothetical(c) | | 1,000.00 | | 1,019.39 | | 5.46 | | 1.09 | |
(a) Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year period).
(b) Annualized.
(c) 5% annual return before expenses.
- 42 -
ALGER GLOBAL GROWTH FUND
ADDITIONAL INFORMATION (Unaudited) (Continued)
Privacy Policy
U.S. Consumer Privacy Notice Rev. 12/20/16
| |
| FACTS | WHAT DOES ALGER DO WITH YOUR PERSONAL INFORMATION? |
| Why? | Financial companies choose how they share your personal information. Federal law |
| | gives consumers the right to limit some but not all sharing. Federal law also requires us |
| | to tell you how we collect, share, and protect your personal information. Please read this |
| | notice carefully to understand what we do. |
| What? | The types of personal information we collect and share depend on the product or service |
| | you have with us. This information can include: |
| | • Social Security number and |
| | • Account balances and |
| | • Transaction history and |
| | • Purchase history and |
| | • Assets |
| | When you are no longer our customer, we continue to share your information as |
| | described in this notice. |
| How? | All financial companies need to share personal information to run their everyday business. |
| | In the section below, we list the reasons financial companies can share personal |
| | information; the reasons Alger chooses to share; and whether you can limit this sharing. |
| | |
| Reasons we can share your personal | Does | Can you limit |
| information | Alger share? | this sharing? |
| For our everyday business purposes — | Yes | No |
| such as to process your transactions, maintain | | |
| your account(s), respond to court orders and | | |
| legal investigations, or report to credit bureaus | | |
| For our marketing purposes — | Yes | No |
| to offer our products and services to you | | |
| For joint marketing with other financial | No | We don’t share |
| companies | | |
| For our affiliates’ everyday business | Yes | No |
| purposes — information about your | | |
| transactions and experiences | | |
| For our affiliates’ everyday business | No | We don’t share |
| purposes — information about your | | |
| creditworthiness | | |
| For nonaffiliates to market to you | No | We don’t share |
| Questions ? Call 1-800-342-2186 | | |
- 43 -
ALGER GLOBAL GROWTH FUND
ADDITIONAL INFORMATION (Unaudited) (Continued)
| |
| Who we are | |
| Who is providing this notice? | Alger includes Fred Alger Management, Inc. and Fred |
| | Alger & Company, Incorporated as well as the following |
| | funds: The Alger Funds, The Alger Funds II, The Alger |
| | Institutional Funds, The Alger Portfolios, and Alger |
| | Global Growth Fund. |
| |
| |
| What we do | |
| How does Alger | To protect your personal information from unauthorized |
| protect my personal | access and use, we use security measures that comply |
| information? | with federal law. These measures include computer |
| | safeguards and secured files and buildings. |
| How does Alger | We collect your personal information, for example, |
| collect my personal | when you: |
| information? | • Open an account or |
| | • Make deposits or withdrawals from you account |
| | • Give us your contact information or |
| | • Provide account information or |
| | • Pay us by check. |
| Why can’t I limit all sharing? | Federal law gives you the right to only |
| | • sharing for affiliates’ everyday business purposes |
| | information about your credit worthiness |
| | • affiliates from using your information to market to you |
| | • sharing for nonaffiliates to market to you |
| | State laws and individual companies may give you |
| | additional rights to limit sharing. |
| |
| |
| Definitions | |
| Affiliates | Companies related by common ownership or control. |
| | They can be financial and nonfinancial companies. |
| | • Our affiliates include Fred Alger Management, Inc. |
| | and Fred Alger & Company, Incorporated as well as the |
| | following funds: The Alger Funds, The Alger Funds II, |
| | The Alger Institutional Funds, The Alger Portfolios, and |
| | Alger Global Growth Fund. |
| Nonaffiliates | Companies not related by common ownership or |
| | control. They can be financial and nonfinancial |
| | companies |
| Joint marketing | A formal agreement between nonaffiliated financial |
| | companies that together market financial products or |
| | services to you. |
| Other important information | |
- 44 -
ALGER GLOBAL GROWTH FUND
ADDITIONAL INFORMATION (Unaudited) (Continued)
Proxy Voting Policies
A description of the policies and procedures the Trust uses to determine how to vote
proxies relating to portfolio securities and information regarding how the Fund voted
proxies relating to portfolio securities during the most recent 12-month period ended June
30 are available, without charge, by calling (800) 992-3863 or online on the Funds’ website
at www.alger.com or on the SEC’s website at www.sec.gov.
Fund Holdings
The Board of Trustees has adopted policies and procedures relating to disclosure of the
Fund’s portfolio securities. These policies and procedures recognize that there may be
legitimate business reasons for holdings to be disclosed and seek to balance those interests
to protect the proprietary nature of the trading strategies and implementation thereof by
the Fund.
Generally, the policies prohibit the release of information concerning portfolio holdings
which have not previously been made public to individual investors, institutional investors,
intermediaries that distribute the Fund’s shares and other parties which are not employed
by the Manager or its affiliates except when the legitimate business purposes for selective
disclosure and other conditions (designed to protect the Fund) are acceptable.
The Fund makes its full holdings available semi-annually in shareholder reports filed on
Form N-CSR and after the first and third fiscal quarters in regulatory filings on Form N-Q.
These shareholder reports and regulatory filings are filed with the SEC, as required by federal
securities laws, and are generally available within sixty (60) days of the end of the Fund’s
fiscal quarter. The Fund’s Forms N-Q are available online on the SEC’s website at www.
sec.gov or may be reviewed and copied at the SEC’s Public Reference Room in Washington,
D.C. Information regarding the operation of the SEC’s Public Reference Room may be
obtained by calling 1-800-SEC-0330.
In addition, the Fund makes publicly available its respective month-end top 10 holdings
with a 15 day lag and their month-end full portfolios with a 60 day lag on their website www.
alger.com and through other marketing communications (including printed advertising/
sales literature and/or shareholder telephone customer service centers). No compensation
or other consideration is received for the non-public disclosure of portfolio holdings
information.
In accordance with the foregoing, the Fund provides portfolio holdings information to
service providers who provide necessary or beneficial services when such service providers
need access to this information in the performance of their services and are subject to
duties of confidentiality (1) imposed by law, including a duty not to trade on non-public
information, and/or (2) pursuant to an agreement that confidential information is not to
be disclosed or used (including trading on such information) other than as required by law.
From time to time, the Fund will communicate with these service providers to confirm
that they understand the Fund’s policies and procedures regarding such disclosure. This
- 45 -
ALGER GLOBAL GROWTH FUND
ADDITIONAL INFORMATION (Unaudited) (Continued)
agreement must be approved by the Fund’s Chief Compliance Officer, President, Secretary
or Assistant Secretary.
The Board of Trustees periodically reviews a report disclosing the third parties to whom
the Fund’s holdings information has been disclosed and the purpose for such disclosure,
and it considers whether or not the release of information to such third parties is in the best
interest of the Fund and its shareholders.
In addition to material the Fund routinely provides to shareholders, the Manager may,
upon request, make additional statistical information available regarding the Fund. Such
information will include, but not be limited to, relative weightings and characteristics of
the Fund’s portfolio versus its peers or an index (such as P/E ratio, alpha, beta, capture
ratio, maximum drawdown, standard deviation, EPS forecasts, Sharpe ratio, information
ratio, R-squared, and market cap analysis), security specific impact on overall portfolio
performance month-end top ten contributors to and detractors from performance,
breakdown of High Unit Volume Growth holdings vs. Positive Lifecycle Change holdings,
portfolio turnover, and requests of a similar nature. Please contact the Fund at (800) 992-
3863 to obtain such information.
- 46 -
ALGER GLOBAL GROWTH FUND
360 Park Avenue South
New York, NY 10010
(800) 992-3863
www.alger.com
Investment Manager
Fred Alger Management, Inc.
360 Park Avenue South
New York, NY 10010
Distributor
Fred Alger & Company, Incorporated
360 Park Avenue South
New York, NY 10010
Transfer Agent and Dividend Disbursing Agent
State Street Bank and Trust Company
c/o Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266-8480
Custodian
Brown Brothers Harriman & Company
50 Post Office Square
Boston, MA 02110
This report is submitted for the general information of the shareholders of Alger
Global Growth 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
- 47 -
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ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY
AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant’s principal executive officer and principal financial officer have concluded that
the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended) are effective based on their evaluation of the
disclosure controls and procedures as of a date within 90 days of the filing date of this document.
(b) No changes in the Registrant’s internal control over financial reporting occurred during the
Registrant’s second fiscal quarter of the period covered by this report that materially affected, or
are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable
(a) (2) Certifications of principal executive officer and principal financial officer as required by rule 30a-
2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT
(a) (3) Not applicable
(b) Certifications of principal executive officer and principal financial officer as required by rule 30a-2(b)
under the Investment Company Act of 1940 are attached as Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company
Act of 1940, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Alger Global Growth Fund
By: /s/Hal Liebes
Hal Liebes
President
Date: June 27, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company
Act of 1940, this report has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.
By: /s/Hal Liebes
Hal Liebes
President
Date: June 27, 2017
By: /s/Michael D. Martins
Michael D. Martins
Treasurer
Date: June 27, 2017
