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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 811-01355
The Alger Funds
(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, LLC.
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, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission, not later than 10 days after the transmission to Stockholders of any report to be transmitted to Stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
ITEM 1. REPORT(S) TO STOCKHOLDERS.
| Table of Contents | |
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| The Alger Funds | |
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| Shareholders’ Letter | 1 |
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| Fund Highlights | 19 |
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| Portfolio Summary | 41 |
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| Schedules of Investments | 43 |
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| Statements of Assets and Liabilities | 81 |
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| Statements of Operations | 93 |
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| Statements of Changes in Net Assets | 99 |
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| Financial Highlights | 110 |
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| Notes to Financial Statements | 149 |
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| Additional Information | 188 |
Optional Internet Availability of Alger Shareholder Reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by signing up for paperless delivery at www.icsdelivery.com/alger. If you own these shares through a financial intermediary, contact your financial intermediary.
You may elect to receive all future reports in paper free of charge. If you invest directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 1-866-345-5954 or fundreports.com. If you own these shares through a financial intermediary, contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held within the Alger Fund Complex or your financial intermediary.
| Shareholders’ Letter (Unaudited) | | April 30, 2020 |
Dear Shareholders,
Reasons for Optimism Surface as Pandemic Drives Market Volatility
At Alger, we see plenty of reasons for optimism regarding equity investing and the well-being of society as governments seek to curtail the spread of the coronavirus, but we acknowledge that the pandemic will continue to create both personal and economic hardships in the foreseeable future. During the recent months of uncertainty and fear, we have strived to support our shareholders by drawing upon our 55 years of investing experience to seek companies that are best positioned to potentially generate durable earnings growth, and we have shared our insights on managing equities during challenging times to help our clients manage their apprehensions.
In this letter, which discusses the six-month reporting period ended April 30, 2020, I provide additional perspectives on navigating markets during the pandemic and I explain why I believe equities, while continuing to be volatile, may produce additional gains.
A Challenging Time
From the start of the reporting period until February 19 of this year, the S&P 500 Index climbed 12.18%. The spread of the novel coronavirus worldwide, however, caused investor sentiment to plummet and from the February 19 historical market peak to March 23 the index dropped 33.79%. As countries issued stay-at-home orders and shut down businesses to contain the pandemic, economic data weakened considerably. In the U.S., the Congressional Budget Office eventually predicted that gross domestic product (GDP) will contract at nearly a 40% annual rate in the second quarter of this year and unemployment will climb from a 50-year low to a peak of 16% later this year. With 24% of S&P 500 companies reporting during the last week of the reporting period, FactSet Research estimated that first quarter 2020 earnings would decline 15.8%, the largest drop since the second quarter of 2009.
In March, the Federal Reserve (“the Fed”) responded aggressively to the pandemic by implementing two rate cuts that totaled 150 basis points, bringing the fed funds target rate to ..0% - .25%. The Fed also unveiled a round of quantitative easing that could dwarf prior easing programs while U.S. legislators began creating programs initially valued at more than $2 trillion to support businesses, increase unemployment benefits and provide one-time payments to certain individuals. Hope that the stimulus plans could help mitigate the economic impact of the pandemic caused equities to bounce back and from March 24 until April 30, the S&P 500 Index recorded a 30.8% gain.
As the reporting period drew to a close, various U.S. states and certain countries began to re-open their economies as the rates of new coronavirus cases either stabilized or declined. For the six-month reporting period, the S&P 500 recorded a 3.16% loss. Volatility extended beyond the U.S. with the MSCI Emerging Markets Index declining 10.39% and the MSCI ACWI ex USA Index declining 13.02%. Broadly speaking, companies with strong balance sheets and innovative products that are experiencing growing demand as a result of the pandemic outperformed while “old economy” industries such as energy, manufacturing, brick and mortar retailers and certain travel companies including airlines, cruise ship operators and hotels performed worst.
Keeping Change in Perspective
At Alger, we believe history illustrates that companies with innovative products and services can dominate their industries by disrupting their respective industries and capturing market share. These types of companies can potentially reward investors by growing their earnings despite economic headwinds.
Consider the following examples:
| | · | The “Spanish Flu” pandemic and recession, which lasted from 1918 to 1919 and claimed 50 million lives. During this period, automobile ownership grew at a double-digit rate. |
| | · | The Great Depression, which lasted from 1929 through 1939. In 1937 Du-Pont introduced neoprene, which is a synthetic rubber. By 1939, every automobile and airplane manufactured in the U.S. included products made with the material. Hewlett-Packard and Polaroid were also born during the Great Depression. |
| | · | The “Asian Flu” pandemic and recession, which occurred in the late 1950s. During this event television ownership increased 12% after the introduction of color TV. |
| | · | The recession of the early 1990s. During this event, personal computer penetration grew. |
| | · | The Global Financial Crisis and Great Recession of 2008. During this event, smartphone subscribers, digital advertising and online retail sales all increased. |
Pandemic Hastens Change
Today, internet connected devices, cloud computing, artificial intelligence, the Internet of Things, genetic sciences, medtech and healthcare advances, and other technologies are fostering innovation that is occurring at unprecedented levels. In many instances, the coronavirus pandemic is accelerating the already rapid pace at which new products and services disrupt their industries and capture market share. During the early months of the pandemic, credit card data showed that overall consumer spending declined substantially as shopping malls closed, but consumers’ online shopping has seen near exponential acceleration while people have been under stay-at-home orders.1 The increased adoption of ecommerce by consumers is comparable to the total growth in adoption that we believe would have occurred over the coming two years without the pandemic. This acceleration is occurring after decades of growth in online retailing, which increased 14.9% last year while overall retail sales increased only 3.8%. This strong growth trend of course benefits large online retailers such as Amazon.com, Inc. but it is also helping smaller retailers who have had the foresight to adopt and even primarily build their businesses online, rather than in physical stores, often using ecommerce software platforms from companies such as Shopify, Square and Hubspot.
The structure and rhythm of the American workplace (and indeed across the globe) may be forever changed as a result of the response to Covid-19. With offices shut down, many businesses have had to immediately expand remote working to the majority, if not all, of their employees. Many lessons will be learned from this mass shift to telecommuting. However, we believe that even after this healthcare crisis passes and offices re-open, there will be a shift in the perception and therefore the use of telecommuting. In particular, for many businesses and for many job roles, we believe both workers and employers are seeing efficiency gains while “working from home” and will adopt more flexible policies in the future to not only allow working from home but perhaps encourage it more broadly and frequently within their future workforce. The use of many of the new technologies that support online collaboration, videoconferencing, and business process management, even as workers are remote, is being tested now on an emergency and broad basis, and the technologies are proving themselves to be largely exceptional in their potential for changing how we work in the future. To support this massive shift, technology needs to not only provide collaborative workstations for employees, but also increased network capacity and security. Nearly every provider of internet bandwidth or data center computing power is reporting significant increases in demand. Additionally, security firms such as CrowdStrike that provide end-point protection against viruses, malware and other digital threats are experiencing increased demand for cloud-based security systems. In both government and commercial firms, the need for real-time communication with the public or their employees has driven the adoption of new communications platforms to manage the dialogue. Software company Everbridge, for example, announced during the first quarter of this year that it had processed more than 13 million messages related to the pandemic.
We have long been investors in the healthcare sector, which we view as one of the most dynamic and innovative sectors in the U.S., and indeed, the world. Today, we are seeing the valor of doctors and nurses in New York in particular, Alger’s home for over 55 years, and across the U.S. and the globe. We believe this crisis will bring benefits to healthcare systems worldwide as lessons learned from this pandemic will result in new investment in public health, strengthening our hospitals’ and service providers’ capacity to respond rapidly and flexibly to future crises, and by accelerating investment in innovations from the research lab, to testing and clinical treatments and processes, and finally to the delivery of healthcare services by our doctors and nurses on the frontline of patient care. Early growth trends like telemedicine have already proven critical in this crisis, and after it ends, we believe will have become the new way of delivering healthcare to people in the U.S. – that is a technology trend whose adoption “curve,” we believe, has the potential to go from birth to mainstream potentially faster than any we have seen before.
Going Forward
We believe market volatility will continue in the coming months due to declining earnings and heightened uncertainty. As the quarterly reporting season progressed in April, companies increasingly withdrew their guidance for fiscal year 2020 due to uncertainty regarding the future impacts of the pandemic. Analysts are projecting a substantial decline in earnings for calendar year 2020 but expect earnings growth to resume next year.
We are optimistic that an eventual recovery in earnings growth, low interest rates and a return to more normal conditions resulting from a potential coronavirus vaccine or new treatments for Covid-19 could support equity markets. Unlike most recessions, the current economic slowdown is being driven by a public health crisis rather than structural issues, such as toxic debt built upon a housing bubble that triggered the Global Financial Crisis. Regardless of the timing, we believe investors should take a long-term approach rather than try to time markets. We also think investors will be best served by using in-depth fundamental research to find companies that are gaining market share and producing durable earnings growth with innovative products and services and, more specifically, are able to benefit from the global economic dislocation occurring from the pandemic. Additionally, we believe innovative companies with strong balance sheets that can finance their own growth initiatives rather than rely on leverage may be best positioned to outperform. At Alger, we continue to seek companies that are benefiting from change as we seek to help our valued clients meet their financial needs.
Portfolio Matters
Alger Capital Appreciation Fund
The Alger Capital Appreciation Fund returned 9.48% for the fiscal six-month period ended April 30, 2020, compared to the 6.09% return of the Russell 1000 Growth Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Consumer Discretionary. The largest sector overweight was Consumer Discretionary and the largest sector underweight was Consumer Staples.
The Consumer Discretionary and Information Technology sectors provided the largest contributions to relative performance. Regarding individual positions, Amazon.com, Inc.; Microsoft Corp.; Adobe, Inc.; Apple, Inc.; and NVIDIA Corp. were among the top contributors to performance. Amazon.com continues to generate strong high unit volume growth by taking market share from brick and mortar retailing and by growing its cloud computing service. During the reporting period, consumer uptake of one-day shipping supported the acceleration of the company’s online retailing. Later in the reporting period, investors became excited about the significant revenue gains associated with coronavirus quarantining and social distancing that are accelerating the pace at which ecommerce is capturing market share from traditional retailers. Additionally, investors reacted favorably to the pandemic creating increased demand for Amazon.com’s cloud service, AWS.
Detractors from Performance
The Materials and Energy sectors were among the sectors that detracted from results. Regarding individual positions, Raytheon Company; Aptiv PLC; Boeing Company; Dollar Tree, Inc.; and Cintas Corp. were among the top detractors from performance. Boeing is a leading producer of passenger jets and is a significant U.S. defense contractor. Boeing’s leading proprietary technology has allowed the company to be a stronger exporter of high-value, high-ticket capital goods. Shares of Boeing underperformed early in the reporting period in response to the company struggling to address software-related safety issues that have grounded 737 MAX planes for longer than originally anticipated. Additionally, regulators scrutinized the safety of the product and Boeing announced that it was suspending production of the MAX beginning in January while a resolution to the problem is sought. Boeing’s board of directors also terminated the company’s chief executive officer. More recently, fears that the global pandemic would spark a large decrease in air travel triggered a selloff of Boeing shares that continued through the early portion of March. We sold our position in the company late in the reporting period.
Alger 25 Fund
Class P shares of the Alger 25 Fund generated a 10.30% return during the fiscal six-month period ended April 30, 2020, compared to the -3.16% return of the S&P 500 Index.
Contributors to Performance
During the reporting period, the largest sector weightings were Information Technology and Consumer Discretionary. The largest sector overweight was Information Technology. The Fund had no exposure to Consumer Staples, Energy or Utilities. The Information Technology and Financials sectors provided the greatest contributions to relative performance. Regarding individual positions, Amazon.com, Inc.; Microsoft Corp.; DexCom, Inc.; Adobe Inc.; and NVIDIA Corp. were among the top contributors to performance. Shares of Amazon.com performed strongly in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
Among sectors, the Communication Services and Materials sectors were the largest detractors from performance. Regarding individual positions, Live Nation Entertainment, Inc.; TransDigm Group, Inc.; Pinterest, Inc., Cl. A; Sherwin-Williams Company; and NXP Semiconductors NV were among the top detractors from performance. Shares of Live Nation Entertainment underperformed in response to developments identified in the Alger Mid Cap Growth Fund discussion, found below.
Alger 35 Fund
Class P shares of the Alger 35 Fund generated a 13.81% return during the fiscal six-month period ended April 30, 2020, compared to the -3.16% return of the S&P 500 Index.
Contributors to Performance
During the reporting period, the largest sector weightings were Information Technology and Healthcare. The largest sector overweight was Information Technology. The Fund had no exposure to Materials, Utilities or Energy sectors. The Information Technology and Consumer Discretionary sectors provided the greatest contributions to relative performance. Regarding individual positions, Amazon.com, Inc.; Microsoft Corp.; CrowdStrike Holdings, Inc., Cl. A; DexCom, Inc.; and Advanced Micro Devices, Inc. were among the top contributors to performance. Shares of Amazon.com performed strongly in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
The Communication Services sector was the largest detractor from relative performance. Regarding individual positions, Cintas Corp.; Facebook, Inc., Cl. A; TransDigm Group, Inc.; Luckin Coffee, Inc. Sponsored ADR, Cl. A; and Pinterest, Inc., Cl. A were among the top detractors from performance. TransDigm Group designs, produces and supplies aircraft components in the U.S. and internationally. The company operates through three segments: Power & Control, Airframe, and Non-Aviation. TransDigm had a strong first six weeks of the year with its share price climbing approximately 17% after the company delivered positive results in its early February earnings announcement. However, the subsequent and pervasive slowdown of the U.S. airline industry as a result of the Covid-19 pandemic has weighed particularly heavily across the aviation supply chain, including parts suppliers like TransDigm, and resulting in shares of the company underperforming. Additionally, the announced resumption of 737 “Max-8” production by Boeing could bring new airframes online that will not require significant maintenance as they log initial airframe hours.
Alger Growth & Income Fund
The Alger Growth & Income Fund returned -4.41% for the fiscal six-month period ended April 30, 2020, compared to the -3.16% return of the S&P 500 Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Financials. The largest sector overweight was Financials and the largest sector underweight was Information Technology.
The Information Technology and Utilities sectors provided the largest contributions to relative performance. Regarding individual positions, Microsoft Corp.; Apple, Inc.; Amazon. com, Inc.; Eli Lilly and Co.; and UnitedHealth Group, Inc. were among the top contributors to performance. Shares of Amazon.com outperformed in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
The Consumer Discretionary and Industrials sectors were the most significant detractors from relative performance. Regarding individual positions, JPMorgan Chase & Co.; Boeing Co.; Honeywell International, Inc.; Kohl’s Corp.; and TransDigm Group Inc. were among the most significant detractors from performance. Shares of Boeing underperformed in response to developments identified in the Alger Capital Appreciation Fund discussion.
Alger Mid Cap Growth Fund
The Alger Mid Cap Growth Fund returned 3.12% for the fiscal six-month period ended April 30, 2020, compared to the -1.78% return of the Russell Midcap Growth Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Healthcare. The largest sector overweight was Healthcare and the largest sector underweight was Information Technology. The Healthcare and Financials sectors provided the greatest contributions to relative performance. Regarding individual positions, DexCom, Inc.; CrowdStrike Holdings, Inc., Cl. A; Advanced Micro Devices, Inc.; Teladoc Health, Inc.; and Shopify, Inc., Cl. A were among the top contributors to performance. Teladoc is a global leader in comprehensive virtual healthcare services. Teladoc provides virtual healthcare on both a business-to-business and direct-to-consumer basis and completed approximately 4.1 million telehealth visits in 2019. Teladoc has a global operational scale unmatched in the telemedicine industry, covering more than 450 subspecialties and servicing patients from more than 175 countries around the globe. Following the Covid-19 outbreak, Teladoc has seen an unprecedented surge in demand for its services as patients turn to telemedicine as a means of receiving necessary medical treatment while limiting unnecessary exposure to in-clinic infections. Healthcare regulators have encouraged the adoption of telemedicine and have relaxed reimbursement restrictions for telemedicine visits, further accelerating this demand growth. We believe that the additional demand generated from Covid-19 is helping to accelerate the long-term secular trend toward greater reliance on telemedicine throughout healthcare. Teladoc’s stock price surged in response to the growing demand for its services resulting from Covid-19.
Detractors from Performance
The Industrials and Consumer Staples sectors were among the sectors that detracted from results. Regarding individual positions, Bed Bath & Beyond Inc.; Live Nation Entertainment, Inc.; Middleby Corp.; Cintas Corp.; and TransDigm Group, Inc. were among the top detractors from performance. Live Nation Entertainment is the music industry’s largest concert promotor. Prior to the coronavirus pandemic, it was rapidly increasing the list of artists whose concerts it promotes and the volume of the company’s ticket sales was also growing significantly. In February, fears that the spread of the coronavirus could dramatically curtail live concerts sparked a selloff of Live Nation Entertainment stock that continued through the early portion of March. Investors’ fear materialized when Live Nation Entertainment was forced to cancel thousands of concerts in response to government stay-at-home orders and bans on events that attract large crowds of individuals. Live Nation Entertainment also announced that it would refund tickets for the cancelled events.
Alger Mid Cap Focus Fund
Class I shares of the Alger Mid Cap Focus Fund during the fiscal six-month period ended April 30, 2020, generated a 14.30% return compared to the -1.78% return of the Russell Midcap Growth Index.
Contributors to Performance
During the reporting period, Information Technology and Healthcare were the largest sector weightings. Healthcare was the largest sector overweighting. The Fund had no exposure to the Materials, Consumer Staples or Utilities sectors and insignificant exposure to the Communication Services and Real Estate sectors. The Healthcare and Financials sectors were the largest contributors to performance. Regarding individual positions, Quidel Corp.; Teladoc Health, Inc.; MarketAxess Holdings, Inc.; DexCom, Inc.; and OraSure Technologies, Inc. were among the top contributors to performance. Quidel develops, manufactures and markets rapid point-of-care diagnostic testing solutions worldwide that are used for infectious disease, cardiovascular, toxicology, women’s health, gastrointestinal diseases and other healthcare areas. Quidel’s diagnostics are mainly used at point-of-care locations, such as physicians’ offices, hospitals, urgent care clinics, pharmacies, wellness screening clinics and clinical laboratories. Shares of Quidel outperformed during the reporting period in response to the company announcing strong results for the last three months of 2019 and providing strong guidance for this year. Quidel’s results benefitted from a stronger-than-expected 2019-2020 U.S. flu season. Additionally, the performance of Quidel shares benefited from the Covid-19 outbreak because the company’s influenza and other respiratory tests can rule out non-coronavirus causes of a patient’s symptoms. Quidel also has various potential drivers of growth, including a new toxicology panel, a high sensitivity troponin test in Europe for cardiac healthcare and a new Lyme Disease test. Quidel also offers diagnostic test solutions for the ongoing Covid-19 pandemic.
Detractors from Performance
The Real Estate and Energy sectors were among the top detractors from performance. Regarding individual positions, Cantel Medical Corp.; Manhattan Associates, Inc.; Paylocity Holding Corp.; SiteOne Landscape Supply, Inc.; and Waste Connections, Inc. were among the top detractors from performance. Cantel Medical develops and manufactures infection prevention products and services for healthcare. These products include capital equipment, consumables and services for the endoscopy, dental, dialysis and life sciences markets to help prevent the occurrence or spread of infections on a worldwide basis. Shares of Cantel Medical underperformed early in 2020 due to both an announcement that Cantel will not sell its hemodialysis water segment as expected and weaker-than-expected organic growth in its fiscal 2020 second quarter for its endoscopy business, a result of increased competition. Cantel has announced a significant plan (titled “Cantel 2.0”) to improve its operational performance. We believe the initiatives presented in this plan, along with the company’s acquisition of dental product company Hu-Friedy, have positioned the company for improved performance.
Alger Weatherbie Specialized Growth Fund
The Alger Weatherbie Specialized Growth Fund generated a 6.85% return during the fiscal six-month period ended April 30, 2020, compared to the -3.96% return of the Russell 2500 Growth Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Healthcare. The largest sector overweight was Information Technology. The Fund had no exposure to Communication Services, Consumer Staples, Materials or Utilities and insignificant exposure to the Energy Sector. The Consumer Discretionary and Information Technology sectors provided the greatest contributions to relative performance. Among individual positions, Insulet Corp. Chegg, Inc.; Dermira, Inc; Nevro Corp.; and Trade Desk, Inc., Cl. A were among the top contributors to performance. Dermira develops and commercializes dermatology drugs. Shares of Dermira had performed strongly as the company’s treatment for the skin disorder dermatitis was placed on a fast track for approval by U.S. regulators. Pursuant to that, discussions among Democratic presidential candidates regarding increased regulation of drug prices contributed to the volatility of Dermira shares. Dermira shares performed strongly early in 2020 in response to Eli Lilly & Co. agreeing in January to acquire the company for $1.1 billion in cash.
Detractors from Performance
The Healthcare and Energy sectors were the largest detractors from relative performance. Regarding individual positions, U.S. Physical Therapy, Inc.; Glaukos Corp; Portola Pharmaceuticals, Inc.; FirstService Corp.; and Ebix, Inc. were among the most significant detractors from performance. U.S. Physical Therapy, through its subsidiaries, operates outpatient physical therapy clinics that provide pre- and post-operative care and treatment for orthopedic-related disorders and sports-related injuries. The company also provides preventative care and rehabilitation of injured workers. With the Covid-19 pandemic, large segments of the U.S. population sheltered in place and maintained “social distancing.” Additionally, large team sporting events were cancelled and individuals with sports injuries deferred diagnosis, treatment and physical rehabilitation, which created a business disruption for the company.
Alger Small Cap Growth Fund
The Alger Small Cap Growth Fund returned 10.73% for the fiscal six-month period ended April 30, 2020, compared to the -7.62% return of the Russell 2000 Growth Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Healthcare and Information Technology. The largest sector overweight was Information Technology and the largest underweight was Industrials. The Healthcare and Industrials sectors provided the greatest contributions to relative performance.
Regarding individual positions, Quidel Corp.; Shopify, Inc., Cl. A; DexCom, Inc.; Veeva Systems, Inc., Cl. A; and Insulet Corp. were among the top contributors to performance. Shares of Quidel performed strongly in response to developments identified in the Mid Cap Focus Fund discussion.
Detractors from Performance
The Communication Services and Energy sectors were among the sectors that detracted from results. Regarding individual positions, Cantel Medical Corp.; Live Nation Entertainment, Inc.; Bed Bath & Beyond, Inc.; Blackbaud, Inc.; and Shake Shack, Inc., Cl. A were among the most significant detractors from performance. Shares of Live Nation Entertainment underperformed in response to developments identified in the Alger Mid Cap Growth Fund discussion.
Alger Small Cap Focus Fund
The Alger Small Cap Focus Fund returned 8.23% during the fiscal six-month period ended April 30, 2020, compared to the -7.62% return of the Russell 2000 Growth Index.
Contributors to Performance
During the reporting period, the Healthcare and Information Technology sectors were the largest portfolio sector weightings. The largest sector overweight was Information Technology. The Fund had no exposure to Energy, Consumer Staples, Communication Services, Real Estate or Utilities. The Industrials and Information Technology sectors were the most important contributors to relative performance.
Regarding individual positions, Quidel Corp.; Everbridge, Inc.; Wingstop, Inc.; Veeva Systems, Inc., Cl. A; and Repligen Corp. were among the most significant contributors to performance. Shares of Quidel performed strongly in response to developments identified in the Mid Cap Focus Fund discussion.
Detractors from Performance
The Healthcare sector was the most significant detractor from performance. Regarding individual positions, Cantel Medical Corp.; Glaukos Corp; Blackbaud, Inc.; PROS Holdings, Inc.; and FLIR Systems, Inc. were the largest detractors from performance. Shares of Cantel underperformed in response to developments identified in the Alger Mid Cap Focus Fund discussion.
Alger International Focus Fund
The Alger International Focus Fund recorded a -4.00% return for the fiscal six-month period ended April 30, 2020, compared to the -13.02% return of the MSCI ACWI ex USA Index.
Contributors to Performance
During the reporting period, the largest sector weightings were Consumer Discretionary and Information Technology. The largest sector overweight was Information Technology and the largest underweight was Financials. The Financials and Information Technology sectors provided the greatest contributions to relative performance.
From a country perspective, Japan, Australia, Italy, New Zealand and the Netherlands were among the most significant contributors to relative performance.
Regarding individual positions, Lasertec Corp.; Kirkland Lake Gold Ltd.; Nexi S.p.A.; a2 Milk Co. Ltd.; and EQT AB were among the top contributors to performance. Lasertec of Japan is a world leader in testing equipment for masks used in the production of semiconductors and liquid crystal displays. It was the first company to commercialize extreme ultra-violet light lithography (EUV) mask inspection systems. Lasertec beat expectations when announcing results in February and said orders expanded 48% year over year. With above average revenue visibility over the next three years, relatively conservative accounting policies (revenues are recognized only after customers start using the inspection equipment) and a strong balance sheet (net cash), Lasertec is viewed favorably by many investors.
Detractors from Performance
The Communication Services and Healthcare sectors were among the sectors that detracted from results. From a country perspective, Hong Kong, France, Russia, China and Ireland were among the top detractors from performance. Regarding individual positions, Rightmove plc; IRB Brasil Resseguros SA; Safran S.A.; Oil company LUKOIL PJSC Sponsored ADR; and Burberry Group plc. were among the top detractors from performance. Burberry Group is a British luxury fashion house headquartered in London. It focuses on the manufacturing and distribution of trench coats, ready-to-wear outerwear, fashion accessories, fragrances, sunglasses and cosmetics. The company was undergoing a successful and significant transformation under the leadership of a new management team and a new creative designer. However, the Covid-19 outbreak and the lockdown announcements that began in Asia and later spread to other major parts of the world created uncertainty about the company’s short-term outlook. Concerns over the impact from store closures and travel restrictions around the globe weighed on the share price.
Alger Health Sciences Fund
The Alger Health Sciences Fund returned 10.07% for the fiscal six-month period ended April 30, 2020, compared to the -3.16% return of the S&P 500 Index and the 8.69% return of the Russell 3000 Healthcare TR Index.
Contributors to Performance
Among the most important contributors to performance were DexCom, Inc.; Vertex Pharmaceuticals, Inc.; Teladoc Health, Inc.; Sarepta Therapeutics, Inc.; and Insulet Corp. Shares of Teladoc Health outperformed in response to developments identified in the Alger Mid Cap Growth Fund discussion.
Detractors from Performance
Conversely, GW Pharmaceuticals PLC Sponsored ADR; SAGE Therapeutics, Inc.; Amarin Corp. Plc Sponsored ADR; Emmaus Life Sciences, Inc.; and Aerie Pharmaceuticals, Inc. were among positions that detracted from performance. Aerie Pharmaceuticals is a specialty pharmaceutical company whose drugs use a new mechanism to treat glaucoma, a leading cause of blindness. The drugs are unique in that they treat the underlying mechanism that increases eye pressure instead of by indirect means. Demand for the company’s products was hurt by Covid-19, which caused management to withdraw its 2020 guidance for sales and cash burn. Prescriptions for their glaucoma franchise were strong through March and were also enhanced by patients transitioning to a 90-day supply. But in April, there was a deceleration in the trend with ophthalmologists essentially shutting their practices down.
I thank you for putting your trust in Alger.
Sincerely,
Daniel C. Chung, CFA
Chief Investment Officer
Fred Alger Management, LLC
1 Source: Bank of America.
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 funds. This report is not authorized for distribution to prospective investors in a fund unless preceded or accompanied by an effective prospectus for the fund. Performance of Funds discussed above other than the Alger 25 Fund, the Alger 35 Fund and the Alger Mid Cap Focus Fund represents the return of Class A shares prior to the deduction of any sales charges and includes the reinvestment of any dividends or distributions. The performance for the Alger 25 Fund and Alger 35 Fund represents the return of Class P shares. Performance for the Alger Mid Cap Focus Fund represents the return of Class I shares.
The performance data quoted represents past performance, which is not an 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 a 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 funds’ 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 a 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 a fund. Please refer to the Schedule of Investments for each fund which is included in this report for a complete list of fund holdings as of April 30, 2020. Securities mentioned in the Shareholders’ Letter, if not found in the Schedule of Investments, may have been held by the funds during the six-month fiscal period ended April 30, 2020.
Risk Disclosures
Alger Capital Appreciation Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumers’ disposable income, consumer preferences and social trends. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions.
Alger 25 Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumers’ disposable income, consumer preferences and social trends. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger 35 Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger Growth & Income Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Income-producing securities may cut or fail to declare dividends due to market downturns or for other reasons.
Alger Mid Cap Growth Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Mid Cap Focus Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Investing in companies of medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Weatherbie Specialized Growth Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign and Emerging Market securities involve special risks including currency risk and risks related to political, social, or economic conditions.
Alger Small Cap Growth Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign and Emerging Market securities involve special risks including currency risk and risks related to political, social, or economic conditions.
Alger Small Cap Focus Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger International Focus Fund
Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign and emerging markets securities involve special risks including currency fluctuations, less liquidity, inefficient trading, political instability, and increased volatility. Investing in companies of small capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Health Sciences Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Private placements are offerings of a company’s securities not registered with the SEC and not offered to the public, for which limited information may be available. Such investments are generally considered to be illiquid. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
For a more detailed discussion of the risks associated with a fund, please see the Prospectus.
Before investing, carefully consider a fund’s investment objective, risks, charges, and expenses. For a prospectus or a summary prospectus containing this and other information about The Alger Funds call us at (800) 992-3863 or visit us atwww.alger. com. Read it carefully before investing.
Fred Alger & Company, LLC, Distributor. Member NYSE Euronext, SIPC.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
Definitions:
| · | The S&P 500 Index: An index of large company stocks considered to be representative of the U.S. stock market. |
| · | The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. |
| · | The MSCI ACWI ex USA Index (gross) captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 26 Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the US. |
| · | The Morgan Stanley Capital International (MSCI) Emerging Markets Index (gross) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. |
| · | The Russell 3000 Healthcare Index is an unmanaged index that measures the performance of those companies in the Russell 3000 Index involved in the medical services or healthcare field. Also included are companies involved in research, development and production of pharmaceuticals and biotechnology. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on the total market capitalization, which represents 99% of the U.S. equity market. |
| · | The Russell Midcap Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell Midcap Growth Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. |
| · | The Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 2500 Growth Index is constructed to provide a comprehensive and unbiased barometer of the small to mid-cap growth market. |
| · | The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 2000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the small-cap growth segment. |
| · | FactSet Research provides integrated software and data solutions for investment professionals. |
| FUND PERFORMANCE AS OF 3/31/20 (Unaudited) |
| AVERAGE ANNUAL TOTAL RETURNS |
| |
| | | | 1 | | | | 5 | | | | 10 | | | | SINCE | |
| | | | YEAR | | | | YEARS | | | | YEARS | | | | INCEPTION | |
| Alger Capital Appreciation Class A(Inception 12/31/96) | | | (3.11 | )% | | | 8.01 | % | | | 11.58 | % | | | 9.13 | % |
| Alger Capital Appreciation Class B(Inception 11/1/93) | | | (3.07 | )% | | | 8.07 | % | | | 11.47 | % | | | 9.11 | % |
| Alger Capital Appreciation Class C(Inception 7/31/97)* | | | (0.61 | )% | | | 8.37 | % | | | 11.33 | % | | | 8.94 | % |
| Alger Capital Appreciation Class Z(Inception 12/29/10) | | | 2.61 | % | | | 9.55 | % | | | n/a | | | | 12.59 | % |
| | | | | | | | | | | | | | | | | |
| Alger 25 Fund Class P(Inception 12/28/17) | | | 3.90 | % | | | n/a | | | | n/a | | | | 7.64 | % |
| Alger 25 Fund Class P-2(Inception 10/31/18) | | | 3.86 | % | | | n/a | | | | n/a | | | | 7.73 | % |
| | | | | | | | | | | | | | | | | |
| Alger 35 Fund Class P(Inception 3/29/18) | | | 4.40 | % | | | n/a | | | | n/a | | | | 7.30 | % |
| Alger 35 Fund Class P-2(Inception 10/31/18) | | | 4.17 | % | | | n/a | | | | n/a | | | | 7.45 | % |
| | | | | | | | | | | | | | | | | |
| Alger Growth & Income Class A(Inception 12/31/96) | | | (11.43 | )% | | | 4.43 | % | | | 8.47 | % | | | 7.37 | % |
| Alger Growth & Income Class C(Inception 7/31/97)* | | | (8.11 | )% | | | 4.76 | % | | | 8.24 | % | | | 7.19 | % |
| Alger Growth & Income Class Z(Inception 3/1/12) | | | (6.17 | )% | | | 5.89 | % | | | n/a | | | | 9.29 | % |
| | | | | | | | | | | | | | | | | |
| Alger Mid Cap Growth Class A(Inception 12/31/96) | | | (13.36 | )% | | | 2.96 | % | | | 7.99 | % | | | 7.72 | % |
| Alger Mid Cap Growth Class B(Inception 5/24/93) | | | (12.51 | )% | | | 3.18 | % | | | 7.93 | % | | | 7.68 | % |
| Alger Mid Cap Growth Class C(Inception 7/31/97)* | | | (10.06 | )% | | | 3.25 | % | | | 7.67 | % | | | 7.10 | % |
| Alger Mid Cap Growth Class Z(Inception 5/28/15) | | | (8.24 | )% | | | n/a | | | | n/a | | | | 4.19 | % |
| | | | | | | | | | | | | | | | | |
| Alger Mid Cap Focus Class I(Inception 6/14/19) | | | n/a | | | | n/a | | | | n/a | | | | (3.80 | )% |
| Alger Mid Cap Focus Class Z(Inception 6/14/19) | | | n/a | | | | n/a | | | | n/a | | | | (3.60 | )% |
| | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized Growth Class A(Inception 5/8/02) | | | (17.67 | )% | | | 6.18 | % | | | 9.36 | % | | | 8.29 | % |
| Alger Weatherbie Specialized Growth Class C(Inception 5/8/02) | | | (14.68 | )% | | | 6.49 | % | | | 9.11 | % | | | 8.07 | % |
| Alger Weatherbie Specialized Growth Class I(Inception 8/5/07) | | | (13.05 | )% | | | 7.33 | % | | | 9.99 | % | | | 8.66 | % |
| Alger Weatherbie Specialized Growth Class Y(Inception 8/31/17) | | | (12.74 | )% | | | n/a | | | | n/a | | | | 8.69 | % |
| Alger Weatherbie Specialized Growth Class Z(Inception 12/29/10) | | | (12.87 | )% | | | 7.68 | % | | | n/a | | | | 9.65 | % |
| | | | | | | | | | | | | | | | | |
| Alger Small Cap Growth Class A(Inception 12/31/96) | | | (9.03 | )% | | | 6.16 | % | | | 9.13 | % | | | 5.01 | % |
| Alger Small Cap Growth Class B(Inception 11/11/86) | | | (8.65 | )% | | | 6.33 | % | | | 9.14 | % | | | 4.99 | % |
| Alger Small Cap Growth Class C(Inception 7/31/97)* | | | (5.75 | )% | | | 6.43 | % | | | 8.75 | % | | | 4.85 | % |
| Alger Small Cap Growth Class Z(Inception 12/29/10) | | | (3.69 | )% | | | 7.69 | % | | | n/a | | | | 9.19 | % |
| | | | | | | | | | | | | | | | | |
| Alger Small Cap Focus Class A(Inception 3/3/08) | | | (10.94 | )% | | | 9.41 | % | | | 11.52 | % | | | 9.11 | % |
| Alger Small Cap Focus Class C(Inception 3/3/08) | | | (7.68 | )% | | | 9.78 | % | | | 11.31 | % | | | 8.81 | % |
| Alger Small Cap Focus Class I(Inception 3/3/08) | | | (6.00 | )% | | | 10.64 | % | | | 12.27 | % | | | 9.76 | % |
| Alger Small Cap Focus Class Y(Inception 2/28/17) | | | (5.67 | )% | | | n/a | | | | n/a | | | | 14.86 | % |
| Alger Small Cap Focus Class Z(Inception 12/29/10) | | | (5.68 | )% | | | 10.99 | % | | | n/a | | | | 11.67 | % |
| | | | | | | | | | | | | | | | | |
| Alger International Focus Class A(Inception 12/31/96) | | | (13.23 | )% | | | (2.67 | )% | | | 2.70 | % | | | 4.01 | % |
| Alger International Focus Class B(Inception 11/11/86) | | | (12.72 | )% | | | (2.49 | )% | | | 2.68 | % | | | 3.98 | % |
| Alger International Focus Class C(Inception 7/31/97)* | | | (10.13 | )% | | | (2.42 | )% | | | 2.42 | % | | | 3.83 | % |
| Alger International Focus Class I(Inception 5/31/13) | | | (8.22 | )% | | | (1.42 | )% | | | n/a | | | | 1.25 | % |
| Alger International Focus Class Z(Inception 12/29/10) | | | (7.93 | )% | | | (1.16 | )% | | | n/a | | | | 3.09 | % |
| | | | | | | | | | | | | | | | | |
| Alger Health Sciences Fund Class A(Inception 5/1/02) | | | (9.45 | )% | | | 5.79 | % | | | 11.32 | % | | | 11.19 | % |
| Alger Health Sciences Fund Class C(Inception 5/1/02) | | | (6.06 | )% | | | 6.11 | % | | | 11.06 | % | | | 10.96 | % |
| Alger Health Sciences Fund Class Z(Inception 5/28/15) | | | (4.12 | )% | | | n/a | | | | n/a | | | | 6.79 | % |
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.
Beginning August 7, 2015, Alger Small Cap Focus Fund (formerly Alger Growth Opportunities Fund) changed its investment strategy to normally invest at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that, at the time of purchase of the securities, have a total market capitalization within the range of companies included in the Russell 2000 Growth Index.
Alger International Focus Fund prior to March 28, 2018, followed different investment strategies and was managed by different portfolio managers. Prior to August 15, 2018, the Fund was named “Alger International Growth Fund”. Beginning May 31, 2013, Alger International Growth Fund (formerly Alger Large Cap Growth Fund) changed its investment strategy to include securities of foreign companies of any market capitalization; its previous investment strategy considered securities of United States companies with a market capitalization equal to or greater than the companies in the Russell 1000 Growth Index. Performance prior to March 28, 2018, reflects these prior management styles and does not reflect the Fund’s current investment strategies and investment personnel.
Beginning April 1, 2011, Alger Growth & Income Fund changed its investment strategy to focus on securities that offer opportunities for capital appreciation as well as pay dividends. Previously, under the name “Alger Balanced Fund”, its investment strategy focused on securities, including fixed-income, with an emphasis on income-producing and a potential for capital appreciation.
Alger Weatherbie Specialized Growth Fund current portfolio managers began managing the Fund in March 2017. The Fund changed its name and investment strategy from “Alger SMid Cap Growth Fund” to “Alger SMid Cap Focus Fund” in August 2017 and the Fund changed its name from “Alger SMid Cap Focus Fund” to “Alger Weatherbie Specialized Growth Fund” in September 2019.
| * | Historical performance prior to the inception of the Class, is that of the Fund’s Class A shares, which has been adjusted to remove the sales charge imposed by Class A shares and adding the higher operating expenses of the Class C shares. |
ALGER CAPITAL APPRECIATION FUND
Fund Highlights Through April 30, 2020 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Capital Appreciation Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 1000 Growth Index (an unmanaged index of common stocks) for the ten years ended April 30, 2020. Figures for the Alger Capital Appreciation Fund Class A shares and the Russell 1000 Growth Index include reinvestment of dividends. Figures for the Alger Capital Appreciation Fund Class A shares also include reinvestment of capital gains. Performance for Alger Capital Appreciation Fund Class B, Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER CAPITAL APPRECIATION FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
| PERFORMANCE COMPARISON AS OF 4/30/20 |
| AVERAGE ANNUAL TOTAL RETURNS |
| |
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 5.89 | % | | | 11.22 | % | | | 13.11 | % | | | 9.74 | % |
| Class B (Inception 11/1/93) | | | 5.86 | % | | | 11.31 | % | | | 13.00 | % | | | 9.72 | % |
| Class C (Inception 7/31/97)* | | | 9.88 | % | | | 11.58 | % | | | 12.86 | % | | | 9.55 | % |
| Russell 1000 Growth Index | | | 10.84 | % | | | 13.34 | % | | | 14.41 | % | | | 8.37 | % |
| | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 12.11 | % | | | 12.80 | % | | | n/a | | | | 14.14 | % |
| Russell 1000 Growth Index | | | 10.84 | % | | | 13.34 | % | | | n/a | | | | 14.27 | % |
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 B and 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 July 31, 1997, 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. |
ALGER 25 FUND
Fund Highlights Through April 30, 2020 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger 25 Fund Class P shares and the S&P 500 Index (an unmanaged index of common stocks) from December 28, 2017, the inception date of the Alger 25 Fund Class P shares, through April 30, 2020. Figures for the Alger 25 Fund Class P shares and the S&P 500 Index include reinvestment of dividends. Figures for the Alger 25 Fund Class P shares also include reinvestment of capital gains. Performance for the Alger 25 Fund Class P-2 shares will vary from results shown above due to differences in the expenses that the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER 25 FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
| |
| PERFORMANCE COMPARISON AS OF 4/30/20 |
| AVERAGE ANNUAL TOTAL RETURNS |
| |
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 12/28/2017 | |
| Class P (Inception 12/28/17) | | | 12.78 | % | | | n/a | | | | n/a | | | | 13.97 | % |
| S&P 500 Index | | | 0.86 | % | | | n/a | | | | n/a | | | | 5.55 | % |
| | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 10/31/2018 | |
| Class P-2 (Inception 10/31/18) | | | 12.70 | % | | | n/a | | | | n/a | | | | 17.81 | % |
| S&P 500 Index | | | 0.86 | % | | | n/a | | | | n/a | | | | 7.04 | % |
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. 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.
ALGER 35 FUND
Fund Highlights Through April 30, 2020 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger 35 Fund Class P shares and the S&P 500 Index (an unmanaged index of common stocks) from March 29, 2018, the inception date of the Alger 35 Fund Class P shares, through April 30, 2020. Figures for the Alger 35 Fund Class P shares and the S&P 500 Index include reinvestment of dividends. Figures for the Alger 35 Fund Class P shares also include reinvestment of capital gains. Performance for the Alger 35 Fund Class P-2 shares will vary from results shown above due to differences in the expenses that the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER 35 FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 3/29/2018 | |
| Class P (Inception 3/29/18) | | | 16.93 | % | | | n/a | | | | n/a | | | | 14.93 | % |
| S&P 500 Index | | | 0.86 | % | | | n/a | | | | n/a | | | | 6.89 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 10/31/2018 | |
| Class P-2 (Inception 10/31/18) | | | 16.74 | % | | | n/a | | | | n/a | | | | 18.24 | % |
| S&P 500 Index | | | 0.86 | % | | | n/a | | | | n/a | | | | 7.04 | % |
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. 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.
ALGER GROWTH & INCOME FUND
Fund Highlights Through April 30, 2020 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Growth & Income Fund Class A shares, with a maximum sales charge of 5.25%, and the S&P 500 Index (an unmanaged index of common stocks) for the ten years ended April 30, 2020. Beginning April 1, 2011, Alger Growth & Income Fund changed its investment strategy to focus on securities that offer opportunities for capital appreciation as well as pay dividends. Previously, under the name “Alger Balanced Fund”, its investment strategy focused on securities, including fixed-income, with an emphasis on income-producing and a potential for capital appreciation. Figures for the Alger Growth & Income Fund Class A shares and the S&P 500 Index include reinvestment of dividends. Figures for the Alger Growth & Income Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Growth & Income Fund Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER GROWTH & INCOME FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | (4.59 | )% | | | 6.72 | % | | | 9.62 | % | | | 7.88 | % |
| Class C (Inception 7/31/97)* | | | (1.03 | )% | | | 7.07 | % | | | 9.39 | % | | | 7.69 | % |
| S&P 500 Index | | | 0.86 | % | | | 9.12 | % | | | 11.69 | % | | | 8.06 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 3/1/2012 | |
| Class Z (Inception 3/1/12) | | | 1.07 | % | | | 8.23 | % | | | n/a | | | | 10.74 | % |
| S&P 500 Index | | | 0.86 | % | | | 9.12 | % | | | n/a | | | | 11.93 | % |
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. Prior to April 1, 2011, the Fund followed a different investment objective and different strategies under the name “Alger Balanced Fund”. 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 July 31, 1997, 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. |
ALGER MID CAP GROWTH FUND
Fund Highlights Through April 30, 2020 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Mid Cap Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell Midcap Growth Index (an unmanaged index of common stocks) for the ten years ended April 30, 2020. Figures for the Alger Mid Cap Growth Fund Class A shares and Russell Midcap Growth Index include reinvestment of dividends. Figures for the Alger Mid Cap Growth Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Mid Cap Growth Fund Class B, Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER MID CAP GROWTH FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | (2.85 | )% | | | 6.51 | % | | | 9.41 | % | | | 8.37 | % |
| Class B (Inception 5/24/93) | | | (2.03 | )% | | | 6.75 | % | | | 9.36 | % | | | 8.34 | % |
| Class C (Inception 7/31/97)* | | | 0.72 | % | | | 6.77 | % | | | 9.09 | % | | | 7.74 | % |
| Russell Midcap Growth Index | | | 0.23 | % | | | 8.88 | % | | | 12.19 | % | | | 8.87 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/28/2015 | |
| Class Z (Inception 5/28/15) | | | 2.87 | % | | | n/a | | | | n/a | | | | 7.28 | % |
| Russell Midcap Growth Index | | | 0.23 | % | | | n/a | | | | n/a | | | | 8.64 | % |
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 B and 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 July 31, 1997, 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. |
ALGER MID CAP FOCUS FUND
Fund Highlights Through April 30, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS I SHARES
from 6/14/19 to 4/30/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Mid Cap Focus Fund Class I shares and the Russell Midcap Growth Index (an unmanaged index of common stocks) from June 14, 2019, the inception date of the Alger Mid Cap Focus Fund Class I shares, through April 30, 2020. Figures for the Alger Mid Cap Focus Fund Class I shares and the Russell Midcap Growth Index include reinvestment of dividends. Figures for the Alger Mid Cap Focus Fund Class I shares also include reinvestment of capital gains. Performance for the Alger Mid Cap Focus Fund Class Z shares will vary from the results shown above due to differences in the expenses that the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER MID CAP FOCUS FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 6/14/2019 | |
| Class I (Inception 6/14/19) | | | n/a | | | | n/a | | | | n/a | | | | 11.10 | % |
| Class Z (Inception 6/14/19) | | | n/a | | | | n/a | | | | n/a | | | | 11.30 | % |
| Russell Midcap Growth Index | | | n/a | | | | n/a | | | | n/a | | | | 1.22 | % |
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. 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.
ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Fund Highlights Through April 30, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 4/30/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Weatherbie Specialized Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 2500 Growth Index (an unmanaged index of common stocks) for the ten years ended April 30, 2020. On September 30, 2019 Alger SMid Cap Focus Fund changed its name to Alger Weatherbie Specialized Growth Fund. Prior to August 30, 2017, the Fund followed different investment strategies under the name “Alger SMid Cap Growth Fund” and prior to March 1, 2017 was managed by different portfolio managers. Effective March 1, 2017, Weatherbie Capital, LLC, an indirect, wholly-owned subsidiary of Alger Associates, Inc., the parent company of Fred Alger Management, LLC, began acting as sub-advisor to the Alger Weatherbie Specialized Growth Fund. Figures for the Alger Weatherbie Specialized Growth Fund Class A shares and the Russell 2500 Growth Index include reinvestment of dividends. Figures for the Alger Weatherbie Specialized Growth Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Weatherbie Specialized Growth Fund Class C, Class I, Class Y and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/8/2002 | |
| Class A (Inception 5/8/02) | | | (3.65 | )% | | | 10.61 | % | | | 11.04 | % | | | 9.33 | % |
| Class C (Inception 5/8/02) | | | (0.12 | )% | | | 10.94 | % | | | 10.78 | % | | | 9.11 | % |
| Class I (Inception 8/5/07)* | | | 1.68 | % | | | 11.82 | % | | | 11.68 | % | | | 9.71 | % |
| Russell 2500 Growth Index | | | (4.03 | )% | | | 7.22 | % | | | 11.37 | % | | | 8.93 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 8/30/2017 | |
| Class Y (Inception 8/30/17) | | | 2.09 | % | | | n/a | | | | n/a | | | | 15.96 | % |
| Russell 2500 Growth Index | | | (4.03 | )% | | | n/a | | | | n/a | | | | 7.95 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 2.03 | % | | | 12.18 | % | | | n/a | | | | 11.69 | % |
| Russell 2500 Growth Index | | | (4.03 | )% | | | 7.22 | % | | | n/a | | | | 10.55 | % |
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.
| * | Historical performance prior to August 5, 2007, inception of the class, is that of the Fund’s Class A shares, which has been adjusted to remove the sales charge imposed by Class A shares. |
ALGER SMALL CAP GROWTH FUND
Fund Highlights Through April 30, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 4/30/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Small Cap Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 2000 Growth Index (an unmanaged index of common stocks) for the ten years ended April 30, 2020. Figures for the Alger Small Cap Growth Fund Class A shares and the Russell 2000 Growth Index include reinvestment of dividends. Figures for the Alger Small Cap Growth Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Small Cap Growth Fund Class B, Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER SMALL CAP GROWTH FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 3.21 | % | | | 10.62 | % | | | 10.59 | % | | | 5.75 | % |
| Class B (Inception 11/11/86) | | | 3.93 | % | | | 10.86 | % | | | 10.59 | % | | | 5.74 | % |
| Class C (Inception 7/31/97)* | | | 7.02 | % | | | 10.92 | % | | | 10.20 | % | | | 5.59 | % |
| Russell 2000 Growth Index | | | (9.22 | )% | | | 5.19 | % | | | 9.96 | % | | | 6.26 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 9.42 | % | | | 12.25 | % | | | n/a | | | | 11.11 | % |
| Russell 2000 Growth Index | | | (9.22 | )% | | | 5.19 | % | | | n/a | | | | 8.94 | % |
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 B and 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 July 31, 1997, 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. |
ALGER SMALL CAP FOCUS FUND
Fund Highlights Through April 30, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 4/30/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Small Cap Focus Fund Class A shares, with an initial 5.25% maximum sales charge, and the Russell 2000 Growth (an unmanaged index of common stocks) for the ten years ended April 30, 2020. Prior to August 7, 2015, the Fund followed different investment strategies under the name “Alger Growth Opportunities Fund” and prior to February 12, 2015 was managed by a different portfolio manager. Accordingly, performance prior to those dates does not reflect the Fund’s current investment strategies and investment personnel. Figures for the Alger Small Cap Focus Fund Class A shares and the Russell 2000 Growth Index include reinvestment of dividends. Figures for the Alger Small Cap Focus Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Small Cap Focus Fund Class C, Class I, Class Y and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER SMALL CAP FOCUS FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 3/3/2008 | |
| Class A (Inception 3/3/08) | | | (0.09 | )% | | | 13.24 | % | | | 12.79 | % | | | 10.37 | % |
| Class C (Inception 3/3/08) | | | 3.65 | % | | | 13.64 | % | | | 12.60 | % | | | 10.06 | % |
| Class I (Inception 3/3/08) | | | 5.53 | % | | | 14.53 | % | | | 13.56 | % | | | 11.03 | % |
| Russell 2000 Growth Index | | | (9.22 | )% | | | 5.19 | % | | | 9.96 | % | | | 8.64 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 2/28/2017 | |
| Class Y (Inception 2/28/17) | | | 5.91 | % | | | n/a | | | | n/a | | | | 19.88 | % |
| Russell 2000 Growth Index | | | (9.22 | )% | | | n/a | | | | n/a | | | | 4.97 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 5.90 | % | | | 14.87 | % | | | n/a | | | | 13.33 | % |
| Russell 2000 Growth Index | | | (9.22 | )% | | | 5.19 | % | | | n/a | | | | 8.94 | % |
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.
ALGER INTERNATIONAL FOCUS FUND
Fund Highlights Through April 30, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A
—10 years ended 4/30/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger International Focus Fund Class A shares, with a maximum sales charge of 5.25%, and MSCI AC World Index ex USA (an unmanaged index of common stocks) for the ten years ended April 30, 2020. Beginning May 31, 2013, Alger International Growth Fund changed its investment strategy to include securities of foreign companies of any market capitalization. Alger International Focus Fund prior to March 28, 2018, followed different investment strategies and was managed by different portfolio managers. Prior to August 15, 2018, the Fund was named “Alger International Growth Fund”. Previously, under the name “Alger Large Cap Growth Fund”, its investment strategy considered securities of United States companies with a market capitalization equal to or greater than the companies in the Russell 1000 Growth Index. Performance prior to March 28, 2018 reflects these prior management styles and does not reflect the Fund’s current investment strategies and investment personnel. Figures for the Alger International Focus Fund Class A shares and the index include reinvestment of dividends. Figures for the Alger International Focus Fund Class A shares also include reinvestment of capital gains. Performance for the Alger International Focus Fund Class B, Class C, Class I and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER INTERNATIONAL FOCUS FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | (7.75 | )% | | | (1.36 | )% | | | 3.73 | % | | | 4.47 | % |
| Class B (Inception 11/11/86) | | | (7.16 | )% | | | (1.16 | )% | | | 3.71 | % | | | 4.44 | % |
| Class C (Inception 7/31/97)* | | | (4.39 | )% | | | (1.09 | )% | | | 3.44 | % | | | 4.29 | % |
| MSCI AC World Index ex USA | | | (11.07 | )% | | | 0.31 | % | | | 3.37 | % | | | 4.70 | % |
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 5/31/2013 | |
| Class I (Inception 5/31/13) | | | (2.26 | )% | | | (0.06 | )% | | | n/a | | | | 2.82 | % |
| MSCI AC World Index ex USA | | | (11.07 | )% | | | 0.31 | % | | | n/a | | | | 2.42 | % |
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | (2.14 | )% | | | 0.18 | % | | | n/a | | | | 4.24 | % |
| MSCI AC World Index ex USA | | | (11.07 | )% | | | 0.31 | % | | | n/a | | | | 2.55 | % |
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 B and 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 July 31, 1997, 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. |
ALGER HEALTH SCIENCES FUND
Fund Highlights Through April 30, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 4/30/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Health Sciences Fund Class A shares, with a maximum sales charge of 5.25%, the Russell 3000 Healthcare Index and the S&P 500 Index (each an unmanaged index of common stocks) for the ten years ended April 30, 2020. Figures for the Alger Health Sciences Fund Class A shares, the Russell 3000 Healthcare Index and the S&P 500 Index include reinvestment of dividends. Figures for the Alger Health Sciences Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Health Sciences Fund Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER HEALTH SCIENCES FUND
Fund Highlights Through April 30, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 4/30/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/1/2002 | |
| Class A (Inception 5/1/02) | | | 5.42 | % | | | 9.46 | % | | | 12.78 | % | | | 11.84 | % |
| Class C (Inception 5/1/02) | | | 9.49 | % | | | 9.80 | % | | | 12.52 | % | | | 11.61 | % |
| Russell 3000 Healthcare Index | | | 14.57 | % | | | 9.04 | % | | | 14.92 | % | | | 9.36 | % |
| S&P 500 Index | | | 0.86 | % | | | 9.12 | % | | | 11.69 | % | | | 7.80 | % |
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 5/28/2015 | |
| Class Z (Inception 5/28/15) | | | 11.70 | % | | | n/a | | | | n/a | | | | 9.16 | % |
| Russell 3000 Healthcare Index | | | 14.57 | % | | | n/a | | | | n/a | | | | 8.04 | % |
| S&P 500 Index | | | 0.86 | % | | | n/a | | | | n/a | | | | 8.84 | % |
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.
PORTFOLIO SUMMARY†
April 30, 2020 (Unaudited)
| | | Alger Capital | | | | | | | | | Alger Growth & | |
| SECTORS | | Appreciation Fund | | | Alger 25 Fund | | | Alger 35 Fund | | | Income Fund | |
| Communication Services | | | 12.2 | % | | | 9.9 | % | | | 5.7 | % | | | 11.8 | % |
| Consumer Discretionary | | | 19.7 | | | | 19.7 | | | | 20.4 | | | | 8.2 | |
| Consumer Staples | | | 1.0 | | | | 0.0 | | | | 3.6 | | | | 8.3 | |
| Energy | | | 0.0 | | | | 0.0 | | | | 0.0 | | | | 3.9 | |
| Financials | | | 4.3 | | | | 7.9 | | | | 2.7 | | | | 13.5 | |
| Healthcare | | | 13.8 | | | | 5.9 | | | | 13.8 | | | | 16.3 | |
| Industrials | | | 3.9 | | | | 3.7 | | | | 4.5 | | | | 6.1 | |
| Information Technology | | | 41.0 | | | | 43.9 | | | | 38.1 | | | | 23.6 | |
| Materials | | | 1.9 | | | | 3.1 | | | | 0.0 | | | | 1.6 | |
| Real Estate | | | 1.4 | | | | 3.8 | | | | 3.5 | | | | 4.2 | |
| Utilities | | | 0.0 | | | | 0.0 | | | | 0.0 | | | | 1.5 | |
| Short-Term Investments and Net Other Assets | | | 0.8 | | | | 2.1 | | | | 7.7 | | | | 1.0 | |
| | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | | | | | | | | Alger Weatherbie | | | | |
| | | Alger Mid Cap Growth | | | Alger Mid Cap Focus | | | Specialized Growth | | | Alger Small Cap | |
| SECTORS | | Fund | | | Fund | | | Fund | | | Growth Fund | |
| Communication Services | | | 3.9 | % | | | 1.3 | % | | | 0.0 | % | | | 2.0 | % |
| Consumer Discretionary | | | 15.4 | | | | 9.9 | | | | 15.3 | | | | 6.2 | |
| Consumer Staples | | | 2.5 | | | | 0.0 | | | | 0.0 | | | | 1.0 | |
| Energy | | | 0.0 | | | | 0.0 | | | | 0.0 | | | | 0.5 | |
| Financials | | | 5.8 | | | | 3.3 | | | | 6.5 | | | | 3.5 | |
| Healthcare | | | 21.2 | | | | 21.8 | | | | 27.3 | | | | 43.5 | |
| Industrials | | | 13.0 | | | | 4.6 | | | | 9.8 | | | | 2.5 | |
| Information Technology | | | 29.7 | | | | 17.0 | | | | 31.5 | | | | 27.9 | |
| Materials | | | 1.9 | | | | 0.0 | | | | 0.0 | | | | 1.4 | |
| Real Estate | | | 5.4 | | | | 0.0 | | | | 5.1 | | | | 3.1 | |
| Short-Term Investments and Net Other Assets | | | 1.2 | | | | 42.1 | | | | 4.5 | | | | 8.4 | |
| | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | | Alger Small Cap | | | Alger Health Sciences | | | | | | | | | |
| SECTORS | | Focus Fund | | | Fund | | | | | | | | | |
| Consumer Discretionary | | | 6.4 | % | | | 0.1 | % | | | | | | | | |
| Financials | | | 1.6 | | | | 1.0 | | | | | | | | | |
| Healthcare | | | 47.0 | | | | 97.2 | | | | | | | | | |
| Industrials | | | 3.4 | | | | 0.0 | | | | | | | | | |
| Information Technology | | | 32.2 | | | | 0.0 | | | | | | | | | |
| Materials | | | 1.1 | | | | 0.0 | | | | | | | | | |
| Real Estate | | | 0.0 | | | | 0.6 | | | | | | | | | |
| Short-Term Investments and Net Other Assets | | | 8.3 | | | | 1.1 | | | | | | | | | |
| | | | 100.0 | % | | | 100.0 | % | | | | | | | | |
PORTFOLIO SUMMARY†
April 30, 2020 (Unaudited) (Continued)
| | | Alger International | |
| COUNTRY | | Focus Fund | |
| Australia | | | 3.8 | % |
| Brazil | | | 1.6 | |
| Canada | | | 3.9 | |
| China | | | 7.8 | |
| Denmark | | | 5.5 | |
| France | | | 9.2 | |
| Germany | | | 5.0 | |
| Hong Kong | | | 2.6 | |
| India | | | 1.6 | |
| Ireland | | | 2.9 | |
| Italy | | | 6.3 | |
| Japan | | | 13.4 | |
| Netherlands | | | 7.0 | |
| New Zealand | | | 4.6 | |
| Russia | | | 1.4 | |
| South Korea | | | 2.2 | |
| Spain | | | 2.7 | |
| Sweden | | | 3.8 | |
| Switzerland | | | 5.3 | |
| United Kingdom | | | 4.8 | |
| United States | | | 2.3 | |
| Cash and Net Other Assets | | | 2.3 | |
| | | | 100.0 | % |
| † | Based on net assets for each Fund. |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—97.7% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—0.8% | | | | | | | | |
| Raytheon Technologies Corp. | | | 204,215 | | | $ | 13,235,174 | |
| The Boeing Co. | | | 13,120 | | | | 1,850,182 | |
| TransDigm Group, Inc. | | | 18,261 | | | | 6,630,204 | |
| | | | | | | | 21,715,560 | |
| APPAREL ACCESSORIES & LUXURY GOODS—0.3% | | | | | | | | |
| Lululemon Athletica, Inc.* | | | 33,015 | | | | 7,378,193 | |
| LVMH Moet Hennessy Louis Vuitton SE | | | 5,117 | | | | 1,977,925 | |
| | | | | | | | 9,356,118 | |
| APPLICATION SOFTWARE—7.6% | | | | | | | | |
| Adobe, Inc.* | | | 229,176 | | | | 81,045,801 | |
| Autodesk, Inc.* | | | 56,405 | | | | 10,555,068 | |
| Cadence Design Systems, Inc.* | | | 156,564 | | | | 12,702,037 | |
| Intuit, Inc. | | | 82,195 | | | | 22,177,033 | |
| Palantir Technologies, Inc., Cl. A*,@,(a) | | | 153,282 | | | | 881,371 | |
| RingCentral, Inc., Cl. A* | | | 41,640 | | | | 9,515,989 | |
| salesforce.com, Inc.* | | | 484,279 | | | | 78,428,984 | |
| | | | | | | | 215,306,283 | |
| AUTO PARTS & EQUIPMENT—0.5% | | | | | | | | |
| Aptiv PLC | | | 223,904 | | | | 15,572,523 | |
| | | | | | | | | |
| AUTOMOBILE MANUFACTURERS—0.3% | | | | | | | | |
| Tesla, Inc.* | | | 11,272 | | | | 8,813,351 | |
| | | | | | | | | |
| AUTOMOTIVE RETAIL—0.1% | | | | | | | | |
| Carvana Co., Cl. A* | | | 46,746 | | | | 3,744,822 | |
| | | | | | | | | |
| BIOTECHNOLOGY—2.5% | | | | | | | | |
| Gilead Sciences, Inc. | | | 58,701 | | | | 4,930,884 | |
| Regeneron Pharmaceuticals, Inc.* | | | 5,230 | | | | 2,750,352 | |
| Sarepta Therapeutics, Inc.* | | | 72,612 | | | | 8,559,503 | |
| Seattle Genetics, Inc.* | | | 30,044 | | | | 4,122,938 | |
| Vertex Pharmaceuticals, Inc.* | | | 208,210 | | | | 52,302,352 | |
| | | | | | | | 72,666,029 | |
| CASINOS & GAMING—0.3% | | | | | | | | |
| Las Vegas Sands Corp. | | | 183,983 | | | | 8,834,864 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—11.1% | | | | | | | | |
| Fidelity National Information Services, Inc. | | | 583,459 | | | | 76,952,408 | |
| Fiserv, Inc.* | | | 392,889 | | | | 40,491,140 | |
| Mastercard, Inc., Cl. A | | | 31,146 | | | | 8,564,216 | |
| PayPal Holdings, Inc.* | | | 445,169 | | | | 54,755,787 | |
| Visa, Inc., Cl. A | | | 751,699 | | | | 134,343,645 | |
| | | | | | | | 315,107,196 | |
| DIVERSIFIED BANKS—0.1% | | | | | | | | |
| JPMorgan Chase & Co. | | | 26,760 | | | | 2,562,538 | |
| | | | | | | | | |
| DIVERSIFIED SUPPORT SERVICES—0.6% | | | | | | | | |
| Cintas Corp. | | | 78,274 | | | | 17,363,521 | |
| | | | | | | | | |
| ENVIRONMENTAL & FACILITIES SERVICES—0.5% | | | | | | | | |
| Waste Management, Inc. | | | 141,287 | | | | 14,131,526 | |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.7% (CONT.) | | SHARES | | | VALUE | |
| FINANCIAL EXCHANGES & DATA—2.6% | | | | | | | | |
| CME Group, Inc., Cl. A | | | 35,188 | | | $ | 6,270,853 | |
| Intercontinental Exchange, Inc. | | | 348,489 | | | | 31,172,341 | |
| S&P Global, Inc. | | | 125,117 | | | | 36,644,267 | |
| | | | | | | | 74,087,461 | |
| FOOD DISTRIBUTORS—0.4% | | | | | | | | |
| Sysco Corp. | | | 193,079 | | | | 10,864,555 | |
| | | | | | | | | |
| FOOTWEAR—0.8% | | | | | | | | |
| NIKE, Inc., Cl. B | | | 262,663 | | | | 22,898,960 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—6.3% | | | | | | | | |
| Boston Scientific Corp.* | | | 1,514,298 | | | | 56,755,889 | |
| Danaher Corp. | | | 620,849 | | | | 101,483,978 | |
| DexCom, Inc.* | | | 54,731 | | | | 18,345,831 | |
| Intuitive Surgical, Inc.* | | | 3,177 | | | | 1,623,066 | |
| | | | | | | | 178,208,764 | |
| HEALTHCARE SERVICES—0.7% | | | | | | | | |
| Cigna Corp. | | | 100,256 | | | | 19,628,120 | |
| | | | | | | | | |
| HOME IMPROVEMENT RETAIL—1.5% | | | | | | | | |
| Lowe’s Cos., Inc. | | | 418,787 | | | | 43,867,938 | |
| | | | | | | | | |
| HYPERMARKETS & SUPER CENTERS—0.1% | | | | | | | | |
| Costco Wholesale Corp. | | | 4,647 | | | | 1,408,041 | |
| Walmart, Inc. | | | 19,931 | | | | 2,422,613 | |
| | | | | | | | 3,830,654 | |
| INDUSTRIAL CONGLOMERATES—0.5% | | | | | | | | |
| Honeywell International, Inc. | | | 104,648 | | | | 14,849,551 | |
| | | | | | | | | |
| INDUSTRIAL GASES—0.4% | | | | | | | | |
| Air Products & Chemicals, Inc. | | | 50,384 | | | | 11,365,623 | |
| | | | | | | | | |
| INTERACTIVE MEDIA & SERVICES—10.1% | | | | | | | | |
| Alphabet, Inc., Cl. C* | | | 103,226 | | | | 139,216,777 | |
| Facebook, Inc., Cl. A* | | | 630,226 | | | | 129,013,564 | |
| Pinterest, Inc., Cl. A* | | | 523,395 | | | | 10,813,341 | |
| Tencent Holdings Ltd. | | | 149,091 | | | | 7,837,782 | |
| | | | | | | | 286,881,464 | |
| INTERNET & DIRECT MARKETING RETAIL—14.7% | | | | | | | | |
| Alibaba Group Holding Ltd.#,* | | | 628,796 | | | | 127,438,085 | |
| Altaba, Inc.*,(a),@ | | | 259,825 | | | | 5,937,001 | |
| Amazon.com, Inc.* | | | 115,142 | | | | 284,861,308 | |
| | | | | | | | 418,236,394 | |
| INTERNET SERVICES & INFRASTRUCTURE—0.5% | | | | | | | | |
| Shopify, Inc., Cl. A* | | | 3,137 | | | | 1,983,494 | |
| VeriSign, Inc.* | | | 58,489 | | | | 12,252,860 | |
| | | | | | | | 14,236,354 | |
| INVESTMENT BANKING & BROKERAGE—0.4% | | | | | | | | |
| Morgan Stanley | | | 269,635 | | | | 10,631,708 | |
| The Charles Schwab Corp. | | | 46,050 | | | | 1,737,006 | |
| | | | | | | | 12,368,714 | |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.7% (CONT.) | | SHARES | | | VALUE | |
| LIFE SCIENCES TOOLS & SERVICES—0.7% | | | | | | | | |
| Thermo Fisher Scientific, Inc. | | | 62,382 | | | $ | 20,878,008 | |
| | | | | | | | | |
| MANAGED HEALTHCARE—2.5% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 239,355 | | | | 70,004,157 | |
| | | | | | | | | |
| METAL & GLASS CONTAINERS—0.6% | | | | | | | | |
| Ball Corp. | | | 264,916 | | | | 17,375,840 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—1.2% | | | | | | | | |
| Netflix, Inc.* | | | 82,720 | | | | 34,729,992 | |
| | | | | | | | | |
| PHARMACEUTICALS—1.1% | | | | | | | | |
| Bristol-Myers Squibb Co. | | | 43,472 | | | | 2,643,532 | |
| GW Pharmaceuticals PLC#,* | | | 76,473 | | | | 7,658,006 | |
| Novartis AG# | | | 221,733 | | | | 18,787,438 | |
| Zoetis, Inc., Cl. A | | | 27,281 | | | | 3,527,706 | |
| | | | | | | | 32,616,682 | |
| PROPERTY & CASUALTY INSURANCE—1.2% | | | | | | | | |
| The Progressive Corp. | | | 452,159 | | | | 34,951,891 | |
| | | | | | | | | |
| RAILROADS—1.0% | | | | | | | | |
| Union Pacific Corp. | | | 185,672 | | | | 29,668,529 | |
| | | | | | | | | |
| RESEARCH & CONSULTING SERVICES—0.1% | | | | | | | | |
| CoStar Group, Inc.* | | | 5,680 | | | | 3,682,117 | |
| | | | | | | | | |
| RESTAURANTS—1.2% | | | | | | | | |
| Starbucks Corp. | | | 459,688 | | | | 35,271,860 | |
| | | | | | | | | |
| SEMICONDUCTOR EQUIPMENT—1.2% | | | | | | | | |
| ASML Holding NV | | | 20,533 | | | | 5,922,333 | |
| Lam Research Corp. | | | 107,848 | | | | 27,531,438 | |
| | | | | | | | 33,453,771 | |
| SEMICONDUCTORS—3.7% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 35,497 | | | | 1,859,688 | |
| Micron Technology, Inc.* | | | 160,736 | | | | 7,697,647 | |
| NVIDIA Corp. | | | 193,393 | | | | 56,524,906 | |
| NXP Semiconductors NV | | | 389,423 | | | | 38,774,848 | |
| | | | | | | | 104,857,089 | |
| SOFT DRINKS—0.5% | | | | | | | | |
| The Coca-Cola Co. | | | 300,264 | | | | 13,779,115 | |
| | | | | | | | | |
| SPECIALTY CHEMICALS—0.9% | | | | | | | | |
| The Sherwin-Williams Co. | | | 47,827 | | | | 25,652,968 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—11.1% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 170,660 | | | | 11,546,856 | |
| Microsoft Corp. | | | 1,569,987 | | | | 281,357,370 | |
| Palo Alto Networks, Inc.* | | | 64,328 | | | | 12,641,095 | |
| ServiceNow, Inc.* | | | 30,463 | | | | 10,708,963 | |
| | | | | | | | 316,254,284 | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—5.7% | | | | | | | | |
| Apple, Inc. | | | 548,946 | | | | 161,280,334 | |
| Western Digital Corp. | | | 19,521 | | | | 899,528 | |
| | | | | | | | 162,179,862 | |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.7% (CONT.) | | SHARES | | | VALUE | |
| TRUCKING—0.4% | | | | | | | | |
| Lyft, Inc., Cl. A* | | | 193,716 | | | $ | 6,359,696 | |
| Uber Technologies, Inc.* | | | 211,501 | | | | 6,402,136 | |
| | | | | | | | 12,761,832 | |
| | | | | | | | | |
| WIRELESS TELECOMMUNICATION SERVICES—0.9% | | | | | | | | |
| T-Mobile US, Inc.* | | | 308,862 | | | | 27,118,084 | |
| | | | | | | | | |
TOTAL COMMON STOCKS
| | | | | | | | |
| (Cost $1,804,306,062) | | | | | | | 2,791,734,964 | |
| PREFERRED STOCKS—0.1% | | SHARES | | | VALUE | |
| APPLICATION SOFTWARE—0.1% | | | | | | | | |
| Palantir Technologies, Inc., Cl. B*,@,(a) | | | 625,130 | | | | 3,594,498 | |
| Palantir Technologies, Inc., Cl. D*,@,(a) | | | 81,445 | | | | 468,309 | |
| | | | | | | | 4,062,807 | |
| | | | | | | | | |
| TOTAL PREFERRED STOCKS | | | | | | | | |
| (Cost $4,665,771) | | | | | | | 4,062,807 | |
| REAL ESTATE INVESTMENT TRUST—1.4% | | SHARES | | | VALUE | |
| SPECIALIZED—1.4% | | | | | | | | |
| Crown Castle International Corp. | | | 240,575 | | | | 38,354,872 | |
| (Cost $30,018,234) | | | | | | | 38,354,872 | |
| | | | | | | | | |
| Total Investments | | | | | | | | |
| (Cost $1,838,990,067) | | | 99.2 | % | | $ | 2,834,152,643 | |
| | | | | | | | | |
| Unaffiliated Securities (Cost $1,838,990,067) | | | | | | | 2,834,152,643 | |
| Other Assets in Excess of Liabilities | | | 0.8 | % | | | 22,436,599 | |
| NET ASSETS | | | 100.0 | % | | $ | 2,856,589,242 | |
| # | American Depositary Receipts. |
| (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 4/30/2020 | |
| Altaba, Inc. | | | 10/24/18 | | | $ | 805,470 | | | | 0.03 | % | | $ | 1,046,941 | | | | 0.04 | % |
| Altaba, Inc. | | | 10/25/18 | | | | 1,188,343 | | | | 0.04 | % | | | 1,537,279 | | | | 0.05 | % |
| Altaba, Inc. | | | 10/29/18 | | | | 1,156,773 | | | | 0.04 | % | | | 1,558,233 | | | | 0.06 | % |
| Altaba, Inc. | | | 10/30/18 | | | | 751,641 | | | | 0.03 | % | | | 1,031,563 | | | | 0.04 | % |
| Altaba, Inc. | | | 10/31/18 | | | | 271,272 | | | | 0.01 | % | | | 354,404 | | | | 0.01 | % |
| Altaba, Inc. | | | 11/6/18 | | | | 321,297 | | | | 0.01 | % | | | 408,581 | | | | 0.01 | % |
| Palantir Technologies, Inc., Cl. A | | | 10/7/14 | | | | 997,406 | | | | 0.05 | % | | | 881,371 | | | | 0.03 | % |
| Palantir Technologies, Inc., Cl. B | | | 10/7/14 | | | | 4,128,004 | | | | 0.22 | % | | | 3,594,498 | | | | 0.12 | % |
| Palantir Technologies, Inc., Cl. D | | | 10/14/14 | | | | 537,767 | | | | 0.03 | % | | | 468,309 | | | | 0.02 | % |
| Total | | | | | | | | | | | | | | $ | 10,917,179 | | | | 0.38 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER 25 FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—94.1% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—0.5% | | | | | | | | |
| TransDigm Group, Inc. | | | 265 | | | $ | 96,216 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—9.7% | | | | | | | | |
| Adobe, Inc.* | | | 2,224 | | | | 786,495 | |
| Avalara, Inc.* | | | 2,673 | | | | 238,886 | |
| salesforce.com, Inc.* | | | 4,387 | | | | 710,475 | |
| | | | | | | | 1,735,856 | |
| CASINOS & GAMING—1.6% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 14,949 | | | | 290,908 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—9.5% | | | | | | | | |
| PayPal Holdings, Inc.* | | | 5,177 | | | | 636,771 | |
| Visa, Inc., Cl. A | | | 5,960 | | | | 1,065,171 | |
| | | | | | | | 1,701,942 | |
| | | | | | | | | |
| DIVERSIFIED SUPPORT SERVICES—3.2% | | | | | | | | |
| Cintas Corp. | | | 2,547 | | | | 565,001 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—4.4% | | | | | | | | |
| CME Group, Inc., Cl. A | | | 1,292 | | | | 230,247 | |
| S&P Global, Inc. | | | 1,906 | | | | 558,230 | |
| | | | | | | | 788,477 | |
| HEALTHCARE EQUIPMENT—2.1% | | | | | | | | |
| DexCom, Inc.* | | | 1,115 | | | | 373,748 | |
| | | | | | | | | |
| INTERACTIVE MEDIA & SERVICES—9.9% | | | | | | | | |
| Alphabet, Inc., Cl. C* | | | 723 | | | | 975,081 | |
| Facebook, Inc., Cl. A* | | | 3,900 | | | | 798,369 | |
| | | | | | | | 1,773,450 | |
| INTERNET & DIRECT MARKETING RETAIL—15.3% | | | | | | | | |
| Alibaba Group Holding Ltd.#,* | | | 4,364 | | | | 884,452 | |
| Amazon.com, Inc.* | | | 737 | | | | 1,823,339 | |
| | | | | | | | 2,707,791 | |
| MANAGED HEALTHCARE—3.8% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 2,326 | | | | 680,285 | |
| | | | | | | | | |
| PROPERTY & CASUALTY INSURANCE—3.5% | | | | | | | | |
| The Progressive Corp. | | | 7,984 | | | | 617,163 | |
| | | | | | | | | |
| RESTAURANTS—2.8% | | | | | | | | |
| Starbucks Corp. | | | 6,582 | | | | 505,037 | |
| | | | | | | | | |
| SEMICONDUCTOR EQUIPMENT—2.8% | | | | | | | | |
| Applied Materials, Inc. | | | 10,233 | | | | 508,375 | |
| | | | | | | | | |
| SEMICONDUCTORS—5.9% | | | | | | | | |
| NVIDIA Corp. | | | 2,150 | | | | 628,402 | |
| NXP Semiconductors NV | | | 4,218 | | | | 419,986 | |
| | | | | | | | 1,048,388 | |
| SPECIALTY CHEMICALS—3.1% | | | | | | | | |
| The Sherwin-Williams Co. | | | 1,024 | | | | 549,243 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—9.7% | | | | | | | | |
| Microsoft Corp. | | | 9,617 | | | | 1,723,463 | |
THE ALGER FUNDS | ALGER 25 FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—94.1% (CONT.) | | SHARES | | | VALUE | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.3% | | | | | | | | |
| Apple, Inc. | | | 3,828 | | | $ | 1,124,666 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $13,726,384) | | | | | | | 16,790,009 | |
| | | | | | | | | |
| REAL ESTATE INVESTMENT TRUST—3.8% | | | SHARES | | | | VALUE | |
| SPECIALIZED—3.8% | | | | | | | | |
| Crown Castle International Corp. | | | 4,273 | | | | 681,244 | |
| (Cost $586,749) | | | | | | | 681,244 | |
Total Investments
(Cost $14,313,133) | | | 97.9 | % | | $ | 17,471,253 | |
| Unaffiliated Securities (Cost $14,313,133) | | | | | | | 17,471,253 | |
| Other Assets in Excess of Liabilities | | | 2.1 | % | | | 366,601 | |
| NET ASSETS | | | 100.0 | % | | $ | 17,837,854 | |
* Non-income producing security.
# American Depositary Receipts.
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER 35 FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—88.8% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—0.7% | | | | | | | | |
| HEICO Corp. | | | 884 | | | $ | 77,438 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—2.1% | | | | | | | | |
| Adobe, Inc.* | | | 310 | | | | 109,628 | |
| Avalara, Inc.* | | | 1,338 | | | | 119,577 | |
| | | | | | | | 229,205 | |
| AUTOMOBILE MANUFACTURERS—2.1% | | | | | | | | |
| Tesla, Inc.* | | | 296 | | | | 231,436 | |
| | | | | | | | | |
| CASINOS & GAMING—1.1% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 5,952 | | | | 115,826 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—11.1% | | | | | | | | |
| Fiserv, Inc.* | | | 2,826 | | | | 291,248 | |
| PayPal Holdings, Inc.* | | | 2,607 | | | | 320,661 | |
| Square, Inc., Cl. A* | | | 2,546 | | | | 165,846 | |
| Visa, Inc., Cl. A | | | 2,359 | | | | 421,600 | |
| | | | | | | | 1,199,355 | |
| DIVERSIFIED SUPPORT SERVICES—0.9% | | | | | | | | |
| UniFirst Corp. | | | 607 | | | | 102,067 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—1.3% | | | | | | | | |
| S&P Global, Inc. | | | 473 | | | | 138,532 | |
| | | | | | | | | |
| FOOD DISTRIBUTORS—3.6% | | | | | | | | |
| US Foods Holding Corp.* | | | 18,366 | | | | 394,869 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—6.8% | | | | | | | | |
| DexCom, Inc.* | | | 622 | | | | 208,494 | |
| Insulet Corp.* | | | 1,044 | | | | 208,508 | |
| Intuitive Surgical, Inc.* | | | 618 | | | | 315,724 | |
| | | | | | | | 732,726 | |
| HEALTHCARE TECHNOLOGY—4.6% | | | | | | | | |
| Teladoc Health, Inc.* | | | 1,175 | | | | 193,393 | |
| Veeva Systems, Inc., Cl. A* | | | 1,579 | | | | 301,273 | |
| | | | | | | | 494,666 | |
| INTERACTIVE MEDIA & SERVICES—5.2% | | | | | | | | |
| Alphabet, Inc., Cl. A* | | | 417 | | | | 561,574 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—13.3% | | | | | | | | |
| Amazon.com, Inc.* | | | 546 | | | | 1,350,805 | |
| MercadoLibre, Inc.* | | | 173 | | | | 100,947 | |
| | | | | | | | 1,451,752 | |
| LEISURE FACILITIES—3.9% | | | | | | | | |
| Vail Resorts, Inc. | | | 2,466 | | | | 421,686 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—2.4% | | | | | | | | |
| Bio-Techne Corp. | | | 1,136 | | | | 255,600 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—0.5% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 1,273 | | | | 57,120 | |
| | | | | | | | | |
| REGIONAL BANKS—1.4% | | | | | | | | |
| SVB Financial Group* | | | 781 | | | | 150,866 | |
THE ALGER FUNDS | ALGER 35 FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—88.8% (CONT.) | | SHARES | | | VALUE | |
| RESEARCH & CONSULTING SERVICES—1.9% | | | | | | | | |
| CoStar Group, Inc.* | | | 325 | | | $ | 210,685 | |
| | | | | | | | | |
| SEMICONDUCTOR EQUIPMENT—2.4% | | | | | | | | |
| Applied Materials, Inc. | | | 5,234 | | | | 260,025 | |
| | | | | | | | | |
| SEMICONDUCTORS—4.2% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 3,829 | | | | 200,601 | |
| Universal Display Corp. | | | 1,717 | | | | 257,756 | |
| | | | | | | | 458,357 | |
| SYSTEMS SOFTWARE—13.2% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 3,871 | | | | 261,912 | |
| Microsoft Corp. | | | 4,462 | | | | 799,636 | |
| Palo Alto Networks, Inc.* | | | 528 | | | | 103,757 | |
| ServiceNow, Inc.* | | | 759 | | | | 266,819 | |
| | | | | | | | 1,432,124 | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—5.1% | | | | | | | | |
| Apple, Inc. | | | 1,887 | | | | 554,401 | |
| | | | | | | | | |
| TRUCKING—1.0% | | | | | | | | |
| Lyft, Inc., Cl. A* | | | 3,248 | | | | 106,632 | |
| | | | | | | | | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $7,667,960) | | | | | | | 9,636,942 | |
| | | | | | | | | |
| REAL ESTATE INVESTMENT TRUST—3.5% | | | SHARES | | | | VALUE | |
| SPECIALIZED—3.5% | | | | | | | | |
| Crown Castle International Corp. | | | 2,366 | | | | 377,211 | |
| (Cost $290,959) | | | | | | | 377,211 | |
| Total Investments | | | | | | | | |
| (Cost $7,958,919) | | | 92.3 | % | | $ | 10,014,153 | |
| Unaffiliated Securities (Cost $7,958,919) | | | | | | | 10,014,153 | |
| Other Assets in Excess of Liabilities | | | 7.7 | % | | | 837,020 | |
| NET ASSETS | | | 100.0 | % | | $ | 10,851,173 | |
* Non-income producing security.
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—93.6% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.6% | | | | | | | | |
| General Dynamics Corp. | | | 4,078 | | | $ | 532,668 | |
| Raytheon Technologies Corp. | | | 8,937 | | | | 579,208 | |
| TransDigm Group, Inc. | | | 1,455 | | | | 528,281 | |
| | | | | | | | 1,640,157 | |
| ASSET MANAGEMENT & CUSTODY BANKS—3.6% | | | | | | | | |
| BlackRock, Inc., Cl. A | | | 3,851 | | | | 1,933,356 | |
| The Blackstone Group, Inc., Cl. A | | | 21,938 | | | | 1,146,041 | |
| The Carlyle Group, Inc. | | | 22,818 | | | | 534,854 | |
| | | | | | | | 3,614,251 | |
| BIOTECHNOLOGY—2.5% | | | | | | | | |
| AbbVie, Inc. | | | 10,203 | | | | 838,687 | |
| Amgen, Inc. | | | 3,959 | | | | 947,072 | |
| Gilead Sciences, Inc. | | | 9,368 | | | | 786,912 | |
| | | | | | | | 2,572,671 | |
| BUILDING PRODUCTS—0.4% | | | | | | | | |
| Johnson Controls International PLC | | | 13,534 | | | | 393,975 | |
| | | | | | | | | |
| CABLE & SATELLITE—1.4% | | | | | | | | |
| Comcast Corp., Cl. A | | | 36,605 | | | | 1,377,446 | |
| | | | | | | | | |
| COMMODITY CHEMICALS—0.3% | | | | | | | | |
| Dow, Inc. | | | 8,245 | | | | 302,509 | |
| | | | | | | | | |
| COMMUNICATIONS EQUIPMENT—1.3% | | | | | | | | |
| Cisco Systems, Inc. | | | 32,297 | | | | 1,368,747 | |
| | | | | | | | | |
| COMPUTER & ELECTRONICS RETAIL—0.4% | | | | | | | | |
| Best Buy Co., Inc. | | | 5,340 | | | | 409,738 | |
| | | | | | | | | |
| CONSUMER ELECTRONICS—0.5% | | | | | | | | |
| Garmin Ltd. | | | 6,386 | | | | 518,288 | |
| | | | | | | | | |
| DIVERSIFIED BANKS—5.3% | | | | | | | | |
| Bank of America Corp. | | | 45,414 | | | | 1,092,207 | |
| JPMorgan Chase & Co. | | | 38,992 | | | | 3,733,873 | |
| Wells Fargo & Co. | | | 20,452 | | | | 594,131 | |
| | | | | | | | 5,420,211 | |
| ELECTRIC UTILITIES—0.7% | | | | | | | | |
| NextEra Energy, Inc. | | | 3,270 | | | | 755,762 | |
| | | | | | | | | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.1% | | | | | | | | |
| Eaton Corp. PLC | | | 9,174 | | | | 766,029 | |
| Hubbell, Inc., Cl. B | | | 2,844 | | | | 353,879 | |
| | | | | | | | 1,119,908 | |
| FINANCIAL EXCHANGES & DATA—1.8% | | | | | | | | |
| CME Group, Inc., Cl. A | | | 10,392 | | | | 1,851,958 | |
| | | | | | | | | |
| FOOD DISTRIBUTORS—0.4% | | | | | | | | |
| Sysco Corp. | | | 7,933 | | | | 446,390 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—0.7% | | | | | | | | |
| Medtronic PLC | | | 7,677 | | | | 749,506 | |
| | | | | | | | | |
| HEALTHCARE SERVICES—1.2% | | | | | | | | |
| CVS Health Corp. | | | 19,361 | | | | 1,191,670 | |
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—93.6% (CONT.) | | SHARES | | | VALUE | |
| HOME IMPROVEMENT RETAIL—3.2% | | | | | | | | |
| The Home Depot, Inc. | | | 14,637 | | | $ | 3,217,652 | |
| | | | | | | | | |
| HOUSEHOLD PRODUCTS—1.9% | | | | | | | | |
| The Procter & Gamble Co. | | | 16,512 | | | | 1,946,269 | |
| | | | | | | | | |
| HYPERMARKETS & SUPER CENTERS—1.4% | | | | | | | | |
| Walmart, Inc. | | | 11,725 | | | | 1,425,174 | |
| | | | | | | | | |
| INDUSTRIAL CONGLOMERATES—2.0% | | | | | | | | |
| Honeywell International, Inc. | | | 14,038 | | | | 1,991,992 | |
| | | | | | | | | |
| INDUSTRIAL GASES—1.3% | | | | | | | | |
| Air Products & Chemicals, Inc. | | | 5,816 | | | | 1,311,973 | |
| | | | | | | | | |
| INDUSTRIAL MACHINERY—0.2% | | | | | | | | |
| Otis Worldwide Corp.* | | | 3,462 | | | | 176,250 | |
| | | | | | | | | |
| INTEGRATED OIL & GAS—2.0% | | | | | | | | |
| Chevron Corp. | | | 7,957 | | | | 732,044 | |
| Exxon Mobil Corp. | | | 19,218 | | | | 893,061 | |
| TOTAL SA# | | | 12,782 | | | | 449,287 | |
| | | | | | | | 2,074,392 | |
| INTEGRATED TELECOMMUNICATION SERVICES—3.1% | | | | | | | | |
| AT&T, Inc. | | | 31,054 | | | | 946,215 | |
| Verizon Communications, Inc. | | | 37,786 | | | | 2,170,806 | |
| | | | | | | | 3,117,021 | |
| INTERACTIVE MEDIA & SERVICES—7.3% | | | | | | | | |
| Alphabet, Inc., Cl. A* | | | 2,002 | | | | 2,696,094 | |
| Alphabet, Inc., Cl. C* | | | 1,941 | | | | 2,617,749 | |
| Facebook, Inc., Cl. A* | | | 10,523 | | | | 2,154,163 | |
| | | | | | | | 7,468,006 | |
| INTERNET & DIRECT MARKETING RETAIL—2.4% | | | | | | | | |
| Amazon.com, Inc.* | | | 981 | | | | 2,426,994 | |
| | | | | | | | | |
| INVESTMENT BANKING & BROKERAGE—1.8% | | | | | | | | |
| Morgan Stanley | | | 45,840 | | | | 1,807,471 | |
| | | | | | | | | |
| LEISURE FACILITIES—0.5% | | | | | | | | |
| Vail Resorts, Inc. | | | 3,192 | | | | 545,832 | |
| | | | | | | | | |
| MANAGED HEALTHCARE—2.3% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 8,036 | | | | 2,350,289 | |
| | | | | | | | | |
| MULTI-LINE INSURANCE—0.4% | | | | | | | | |
| The Hartford Financial Services Group, Inc. | | | 9,936 | | | | 377,469 | |
| | | | | | | | | |
| MULTI-UTILITIES—0.8% | | | | | | | | |
| Sempra Energy | | | 6,446 | | | | 798,337 | |
| | | | | | | | | |
| OIL & GAS EXPLORATION & PRODUCTION—0.7% | | | | | | | | |
| ConocoPhillips | | | 17,070 | | | | 718,647 | |
| | | | | | | | | |
| OIL & GAS REFINING & MARKETING—0.3% | | | | | | | | |
| Valero Energy Corp. | | | 4,876 | | | | 308,895 | |
| | | | | | | | | |
| OIL & GAS STORAGE & TRANSPORTATION—0.3% | | | | | | | | |
| ONEOK, Inc. | | | 10,099 | | | | 302,263 | |
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—93.6% (CONT.) | | SHARES | | | VALUE | |
| PHARMACEUTICALS—9.6% | | | | | | | | |
| AstraZeneca PLC# | | | 19,380 | | | $ | 1,013,186 | |
| Bristol-Myers Squibb Co. | | | 13,462 | | | | 818,624 | |
| Eli Lilly & Co. | | | 7,559 | | | | 1,168,924 | |
| GlaxoSmithKline PLC# | | | 19,014 | | | | 799,919 | |
| Johnson & Johnson | | | 16,211 | | | | 2,432,299 | |
| Merck & Co., Inc. | | | 10,553 | | | | 837,275 | |
| Novartis AG# | | | 8,155 | | | | 690,973 | |
| Pfizer, Inc. | | | 50,833 | | | | 1,949,954 | |
| | | | | | | | 9,711,154 | |
| RAILROADS—0.8% | | | | | | | | |
| Union Pacific Corp. | | | 4,822 | | | | 770,507 | |
| | | | | | | | | |
| RESTAURANTS—1.2% | | | | | | | | |
| McDonald’s Corp. | | | 4,437 | | | | 832,204 | |
| Starbucks Corp. | | | 5,237 | | | | 401,835 | |
| | | | | | | | 1,234,039 | |
| SEMICONDUCTOR EQUIPMENT—1.5% | | | | | | | | |
| KLA Corp. | | | 9,338 | | | | 1,532,272 | |
| | | | | | | | | |
| SEMICONDUCTORS—3.1% | | | | | | | | |
| Broadcom, Inc. | | | 5,840 | | | | 1,586,261 | |
| QUALCOMM, Inc. | | | 12,840 | | | | 1,010,123 | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 10,109 | | | | 537,091 | |
| | | | | | | | 3,133,475 | |
| SOFT DRINKS—3.1% | | | | | | | | |
| PepsiCo, Inc. | | | 14,971 | | | | 1,980,514 | |
| The Coca-Cola Co. | | | 25,660 | | | | 1,177,537 | |
| | | | | | | | 3,158,051 | |
| SYSTEMS SOFTWARE—10.9% | | | | | | | | |
| Microsoft Corp. | | | 61,460 | | | | 11,014,246 | |
| | | | | | | | | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.8% | | | | | | | | |
| Apple, Inc. | | | 21,975 | | | | 6,456,255 | |
| Western Digital Corp. | | | 10,380 | | | | 478,310 | |
| | | | | | | | 6,934,565 | |
| TOBACCO—1.5% | | | | | | | | |
| Altria Group, Inc. | | | 26,806 | | | | 1,052,135 | |
| Philip Morris International, Inc. | | | 6,888 | | | | 513,845 | |
| | | | | | | | 1,565,980 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $50,097,405) | | | | | | | 95,152,402 | |
| MASTER LIMITED PARTNERSHIP—0.6% | | | SHARES | | | | VALUE | |
| OIL & GAS STORAGE & TRANSPORTATION—0.6% | | | | | | | | |
| Cheniere Energy Partners LP | | | 17,250 | | | | 581,843 | |
| (Cost $584,260) | | | | | | | 581,843 | |
| REAL ESTATE INVESTMENT TRUST—4.8% | | | SHARES | | | | VALUE | |
| HEALTHCARE—0.6% | | | | | | |
| Welltower, Inc. | | | 12,873 | | | | 659,484 | |
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| REAL ESTATE INVESTMENT TRUST—4.8% (CONT.) | | SHARES | | | VALUE | |
| INDUSTRIAL—0.6% | | | | | | | | |
| Americold Realty Trust | | | 19,006 | | | $ | 581,394 | |
| | | | | | | | | |
| MORTGAGE—0.6% | | | | | | | | |
| Blackstone Mortgage Trust, Inc., Cl. A | | | 25,229 | | | | 593,638 | |
| | | | | | | | | |
| SPECIALIZED—3.0% | | | | | | | | |
| Crown Castle International Corp. | | | 11,141 | | | | 1,776,209 | |
| CyrusOne, Inc. | | | 9,552 | | | | 670,073 | |
| Lamar Advertising Co., Cl. A | | | 10,535 | | | | 607,343 | |
| | | | | | | | 3,053,625 | |
| TOTAL REAL ESTATE INVESTMENT TRUST | | | | | | | | |
| (Cost $3,932,872) | | | | | | | 4,888,141 | |
| | | | | | | | | |
Total Investments
(Cost $54,614,537) | | | 99.0 | % | | $ | 100,622,386 | |
| Unaffiliated Securities (Cost $54,614,537) | | | | | | | 100,622,386 | |
| Other Assets in Excess of Liabilities | | | 1.0 | % | | | 1,014,354 | |
| NET ASSETS | | | 100.0 | % | | $ | 101,636,740 | |
# American Depositary Receipts.
* Non-income producing security.
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—92.7% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—2.1% | | | | | | | | |
| HEICO Corp. | | | 15,219 | | | $ | 1,333,184 | |
| HEICO Corp., Cl. A | | | 5,666 | | | | 409,822 | |
| L3Harris Technologies, Inc. | | | 9,463 | | | | 1,832,983 | |
| | | | | | | | 3,575,989 | |
| ALTERNATIVE CARRIERS—0.7% | | | | | | | | |
| Bandwidth, Inc., Cl. A* | | | 15,315 | | | | 1,249,091 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.0% | | | | | | | | |
| Lululemon Athletica, Inc.* | | | 7,534 | | | | 1,683,698 | |
| | | | | | | | | |
| APPAREL RETAIL—0.6% | | | | | | | | |
| Burlington Stores, Inc.* | | | 5,768 | | | | 1,053,756 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—9.4% | | | | | | | | |
| Atlassian Corp. PLC, Cl. A* | | | 5,624 | | | | 874,476 | |
| Avalara, Inc.* | | | 24,705 | | | | 2,207,887 | |
| Benefitfocus, Inc.* | | | 86,637 | | | | 938,279 | |
| Cadence Design Systems, Inc.* | | | 16,418 | | | | 1,331,992 | |
| Citrix Systems, Inc. | | | 6,119 | | | | 887,316 | |
| Coupa Software, Inc.* | | | 8,594 | | | | 1,513,317 | |
| Dynatrace, Inc.* | | | 15,819 | | | | 472,197 | |
| Fair Isaac Corp.* | | | 7,161 | | | | 2,527,404 | |
| Five9, Inc.* | | | 15,632 | | | | 1,448,617 | |
| Palantir Technologies, Inc., Cl. A*,@,(a) | | | 16,376 | | | | 94,162 | |
| Paycom Software, Inc.* | | | 3,243 | | | | 846,488 | |
| PTC, Inc.* | | | 15,473 | | | | 1,071,505 | |
| RingCentral, Inc., Cl. A* | | | 5,225 | | | | 1,194,069 | |
| Workday, Inc., Cl. A* | | | 4,173 | | | | 642,225 | |
| Zoom Video Communications, Inc., Cl. A* | | | 2,822 | | | | 381,450 | |
| | | | | | | | 16,431,384 | |
| ASSET MANAGEMENT & CUSTODY BANKS—0.6% | | | | | | | | |
| The Carlyle Group, Inc. | | | 44,917 | | | | 1,052,854 | |
| | | | | | | | | |
| AUTO PARTS & EQUIPMENT—0.5% | | | | | | | | |
| Aptiv PLC | | | 12,282 | | | | 854,213 | |
| | | | | | | | | |
| AUTOMOBILE MANUFACTURERS—0.3% | | | | | | | | |
| Winnebago Industries, Inc. | | | 12,591 | | | | 558,663 | |
| | | | | | | | | |
| AUTOMOTIVE RETAIL—1.2% | | | | | | | | |
| O’Reilly Automotive, Inc.* | | | 5,465 | | | | 2,111,348 | |
| | | | | | | | | |
| BIOTECHNOLOGY—4.4% | | | | | | | | |
| Alnylam Pharmaceuticals, Inc.* | | | 3,401 | | | | 447,912 | |
| BioMarin Pharmaceutical, Inc.* | | | 10,718 | | | | 986,270 | |
| Forte Biosciences, Inc.*,@,(a) | | | 916,725 | | | | 987,221 | |
| Genmab AS#,* | | | 40,722 | | | | 990,766 | |
| Moderna, Inc.* | | | 18,010 | | | | 828,280 | |
| Regeneron Pharmaceuticals, Inc.* | | | 742 | | | | 390,203 | |
| Sarepta Therapeutics, Inc.* | | | 12,076 | | | | 1,423,519 | |
| Seattle Genetics, Inc.* | | | 11,449 | | | | 1,571,155 | |
| | | | | | | | 7,625,326 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—92.7% (CONT.) | | SHARES | | | VALUE | |
| BUILDING PRODUCTS—1.2% | | | | | | | | |
| Lennox International, Inc. | | | 6,905 | | | $ | 1,289,025 | |
| Trex Co., Inc.* | | | 7,323 | | | | 697,296 | |
| | | | | | | | 1,986,321 | |
| CASINOS & GAMING—1.3% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 119,686 | | | | 2,329,090 | |
| | | | | | | | | |
| COMMUNICATIONS EQUIPMENT—0.3% | | | | | | | | |
| Motorola Solutions, Inc. | | | 4,138 | | | | 595,086 | |
| | | | | | | | | |
| CONSTRUCTION MATERIALS—1.1% | | | | | | | | |
| Vulcan Materials Co. | | | 16,152 | | | | 1,824,691 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—5.1% | | | | | | | | |
| Fiserv, Inc.* | | | 40,920 | | | | 4,217,216 | |
| Global Payments, Inc. | | | 15,591 | | | | 2,588,418 | |
| Square, Inc., Cl. A* | | | 33,782 | | | | 2,200,559 | |
| | | | | | | | 9,006,193 | |
| DISTRIBUTORS—1.0% | | | | | | | | |
| Pool Corp. | | | 7,837 | | | | 1,658,779 | |
| | | | | | | | | |
| DIVERSIFIED SUPPORT SERVICES—2.3% | | | | | | | | |
| Cintas Corp. | | | 6,170 | | | | 1,368,691 | |
| Copart, Inc.* | | | 21,445 | | | | 1,717,959 | |
| UniFirst Corp. | | | 5,126 | | | | 861,937 | |
| | | | | | | | 3,948,587 | |
| EDUCATION SERVICES—1.1% | | | | | | | | |
| Bright Horizons Family Solutions, Inc.* | | | 16,860 | | | | 1,963,347 | |
| | | | | | | | | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.6% | | | | | | | | |
| AMETEK, Inc. | | | 21,162 | | | | 1,774,857 | |
| Rockwell Automation, Inc. | | | 4,898 | | | | 928,073 | |
| | | | | | | | 2,702,930 | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.6% | | | | | | | | |
| Cognex Corp. | | | 25,374 | | | | 1,401,660 | |
| Trimble, Inc.* | | | 37,256 | | | | 1,290,175 | |
| | | | | | | | 2,691,835 | |
| ELECTRONIC MANUFACTURING SERVICES—0.6% | | | | | | | | |
| Flex Ltd.* | | | 113,571 | | | | 1,108,453 | |
| | | | | | | | | |
| ENVIRONMENTAL & FACILITIES SERVICES—0.5% | | | | | | | | |
| Waste Connections, Inc. | | | 9,613 | | | | 825,853 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—1.7% | | | | | | | | |
| MarketAxess Holdings, Inc. | | | 4,533 | | | | 2,062,560 | |
| Tradeweb Markets, Inc., Cl. A | | | 15,880 | | | | 828,301 | |
| | | | | | | | 2,890,861 | |
| FOOD DISTRIBUTORS—2.5% | | | | | | | | |
| US Foods Holding Corp.* | | | 204,218 | | | | 4,390,687 | |
| | | | | | | | | |
| GENERAL MERCHANDISE STORES—1.6% | | | | | | | | |
| Dollar General Corp. | | | 15,436 | | | | 2,705,931 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—7.2% | | | | | | | | |
| DexCom, Inc.* | | | 17,549 | | | | 5,882,426 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—92.7% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE EQUIPMENT—7.2% (CONT.) | | | | | | | | |
| Hill-Rom Holdings, Inc. | | | 4,007 | | | $ | 450,747 | |
| Hologic, Inc.* | | | 17,981 | | | | 900,848 | |
| Insulet Corp.* | | | 10,897 | | | | 2,176,349 | |
| Masimo Corp.* | | | 8,078 | | | | 1,727,965 | |
| Nevro Corp.* | | | 3,778 | | | | 444,444 | |
| ResMed, Inc. | | | 6,205 | | | | 963,761 | |
| | | | | | | | 12,546,540 | |
| HEALTHCARE SERVICES—1.3% | | | | | | | | |
| 1Life Healthcare, Inc.* | | | 12,379 | | | | 305,390 | |
| Guardant Health, Inc.* | | | 24,862 | | | | 1,913,379 | |
| | | | | | | | 2,218,769 | |
| HEALTHCARE TECHNOLOGY—3.3% | | | | | | | | |
| Phreesia, Inc.* | | | 23,027 | | | | 584,656 | |
| Teladoc Health, Inc.* | | | 14,555 | | | | 2,395,607 | |
| Veeva Systems, Inc., Cl. A* | | | 14,207 | | | | 2,710,696 | |
| | | | | | | | 5,690,959 | |
| INDUSTRIAL MACHINERY—1.5% | | | | | | | | |
| Donaldson Co., Inc. | | | 36,740 | | | | 1,610,314 | |
| Lincoln Electric Holdings, Inc. | | | 12,418 | | | | 999,773 | |
| | | | | | | | 2,610,087 | |
| INSURANCE BROKERS—0.8% | | | | | | | | |
| eHealth, Inc.* | | | 12,743 | | | | 1,359,678 | |
| | | | | | | | | |
| INTERACTIVE HOME ENTERTAINMENT—1.3% | | | | | | | | |
| Activision Blizzard, Inc. | | | 22,128 | | | | 1,410,217 | |
| Take-Two Interactive Software, Inc.* | | | 6,571 | | | | 795,420 | |
| | | | | | | | 2,205,637 | |
| INTERACTIVE MEDIA & SERVICES—0.8% | | | | | | | | |
| Pinterest, Inc., Cl. A* | | | 65,115 | | | | 1,345,276 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—2.0% | | | | | | | | |
| Etsy, Inc.* | | | 28,873 | | | | 1,872,991 | |
| MercadoLibre, Inc.* | | | 2,760 | | | | 1,610,488 | |
| | | | | | | | 3,483,479 | |
| INTERNET SERVICES & INFRASTRUCTURE—3.4% | | | | | | | | |
| Akamai Technologies, Inc.* | | | 21,103 | | | | 2,061,974 | |
| Shopify, Inc., Cl. A* | | | 3,460 | | | | 2,187,724 | |
| VeriSign, Inc.* | | | 7,925 | | | | 1,660,208 | |
| | | | | | | | 5,909,906 | |
| IT CONSULTING & OTHER SERVICES—0.4% | | | | | | | | |
| Gartner, Inc.* | | | 5,275 | | | | 626,723 | |
| | | | | | | | | |
| LEISURE FACILITIES—2.0% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 15,524 | | | | 936,563 | |
| Vail Resorts, Inc. | | | 14,710 | | | | 2,515,410 | |
| | | | | | | | 3,451,973 | |
| LEISURE PRODUCTS—0.7% | | | | | | | | |
| Peloton Interactive, Inc., Cl. A* | | | 40,845 | | | | 1,286,618 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—92.7% (CONT.) | | SHARES | | | VALUE | |
| LIFE SCIENCES TOOLS & SERVICES—2.3% | | | | | | | | |
| 10X Genomics, Inc., Cl. A* | | | 3,094 | | | $ | 247,118 | |
| Bio-Rad Laboratories, Inc., Cl. A* | | | 1,404 | | | | 617,900 | |
| Bio-Techne Corp. | | | 5,716 | | | | 1,286,100 | |
| Lonza Group AG* | | | 1,004 | | | | 438,299 | |
| Repligen Corp.* | | | 11,929 | | | | 1,385,553 | |
| | | | | | | | 3,974,970 | |
| METAL & GLASS CONTAINERS—0.8% | | | | | | | | |
| Ball Corp. | | | 21,755 | | | | 1,426,910 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—1.1% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 20,227 | | | | 907,585 | |
| Roku, Inc., Cl. A* | | | 8,636 | | | | 1,046,943 | |
| | | | | | | | 1,954,528 | |
| PHARMACEUTICALS—1.5% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 32,804 | | | | 499,933 | |
| GW Pharmaceuticals PLC#,* | | | 16,953 | | | | 1,697,673 | |
| Reata Pharmaceuticals, Inc., Cl. A* | | | 2,298 | | | | 363,452 | |
| | | | | | | | 2,561,058 | |
| PROPERTY & CASUALTY INSURANCE—0.9% | | | | | | | | |
| The Progressive Corp. | | | 20,344 | | | | 1,572,591 | |
| | | | | | | | | |
| REAL ESTATE SERVICES—0.8% | | | | | | | | |
| FirstService Corp. | | | 15,888 | | | | 1,375,583 | |
| | | | | | | | | |
| REGIONAL BANKS—1.8% | | | | | | | | |
| SVB Financial Group* | | | 11,090 | | | | 2,142,255 | |
| Webster Financial Corp. | | | 31,819 | | | | 898,887 | |
| | | | | | | | 3,041,142 | |
| RESEARCH & CONSULTING SERVICES—2.1% | | | | | | | | |
| CoStar Group, Inc.* | | | 3,534 | | | | 2,290,951 | |
| Verisk Analytics, Inc., Cl. A | | | 8,309 | | | | 1,269,864 | |
| | | | | | | | 3,560,815 | |
| RESTAURANTS—1.5% | | | | | | | | |
| Chipotle Mexican Grill, Inc., Cl. A* | | | 1,990 | | | | 1,748,314 | |
| Shake Shack, Inc., Cl. A* | | | 15,752 | | | | 858,642 | |
| | | | | | | | 2,606,956 | |
| SEMICONDUCTOR EQUIPMENT—2.5% | | | | | | | | |
| Lam Research Corp. | | | 8,195 | | | | 2,092,020 | |
| SolarEdge Technologies, Inc.* | | | 19,976 | | | | 2,229,121 | |
| | | | | | | | 4,321,141 | |
| SEMICONDUCTORS—3.1% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 41,956 | | | | 2,198,075 | |
| Micron Technology, Inc.* | | | 18,882 | | | | 904,259 | |
| Universal Display Corp. | | | 14,625 | | | | 2,195,505 | |
| | | | | | | | 5,297,839 | |
| SPECIALIZED CONSUMER SERVICES—0.6% | | | | | | | | |
| ServiceMaster Global Holdings, Inc.* | | | 28,388 | | | | 966,611 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—92.7% (CONT.) | | SHARES | | | VALUE | |
| SYSTEMS SOFTWARE—2.4% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 36,992 | | | $ | 2,502,879 | |
| Palo Alto Networks, Inc.* | | | 8,381 | | | | 1,646,950 | |
| | | | | | | | 4,149,829 | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—0.6% | | | | | | | | |
| Western Digital Corp. | | | 23,252 | | | | 1,071,452 | |
| | | | | | | | | |
| TRUCKING—1.7% | | | | | | | | |
| Lyft, Inc., Cl. A* | | | 46,475 | | | | 1,525,775 | |
| Old Dominion Freight Line, Inc. | | | 9,405 | | | | 1,366,452 | |
| | | | | | | | 2,892,227 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $135,799,425) | | | | | | | 160,334,263 | |
| | | | | | | | | |
| PREFERRED STOCKS—0.4% | | | SHARES | | | | VALUE | |
| APPLICATION SOFTWARE—0.3% | | | | | | | | |
| Palantir Technologies, Inc., Cl. B*,@,(a) | | | 66,787 | | | | 384,025 | |
| Palantir Technologies, Inc., Cl. D*,@,(a) | | | 8,701 | | | | 50,031 | |
| | | | | | | | 434,056 | |
| BIOTECHNOLOGY—0.1% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | | | | | 173,492 | |
| | | | | | | | | |
| TOTAL PREFERRED STOCKS | | | | | | | | |
| (Cost $1,486,719) | | | | | | | 607,548 | |
| | | | | | | | | |
| RIGHTS—1.1% | | | SHARES | | | | VALUE | |
| BIOTECHNOLOGY—1.1% | | | | | | | | |
| Tolero CDR*,@,(a),(c) | | | 590,059 | | | | 1,829,183 | |
| (Cost $315,501) | | | | | | | 1,829,183 | |
| REAL ESTATE INVESTMENT TRUST—4.6% | | | SHARES | | | | VALUE | |
| INDUSTRIAL—1.4% | | | | | | | | |
| Americold Realty Trust | | | 18,929 | | | | 579,038 | |
| Rexford Industrial Realty, Inc. | | | 44,570 | | | | 1,814,891 | |
| | | | | | | | 2,393,929 | |
| RESIDENTIAL—1.1% | | | | | | | | |
| 57Equity LifeStyle Properties, Inc. | | | 32,574 | | | | 1,964,538 | |
| | | | | | | | | |
| RETAIL—0.5% | | | | | | | | |
| Simon Property Group, Inc. | | | 6,827 | | | | 455,839 | |
| Tanger Factory Outlet Centers, Inc. | | | 58,588 | | | | 440,582 | |
| | | | | | | | 896,421 | |
| SPECIALIZED—1.6% | | | | | | | | |
| Crown Castle International Corp. | | | 16,369 | | | | 2,609,709 | |
| | | | | | | | | |
| TOTAL REAL ESTATE INVESTMENT TRUST | | | | | | | | |
| (Cost $7,328,191) | | | | | | | 7,864,597 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| | | | | | VALUE | |
| Total Investments | | | | | | | | |
| (Cost $144,929,836) | | | 98.8 | % | | $ | 170,635,591 | |
| Affiliated Securities (Cost $988,245) | | | | | | | 173,492 | |
| Unaffiliated Securities (Cost $143,941,591) | | | | | | | 170,462,099 | |
| Other Assets in Excess of Liabilities | | | 1.2 | % | | | 2,083,105 | |
| NET ASSETS | | | 100.0 | % | | $ | 172,718,696 | |
| | # | American Depositary Receipts. |
| | (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| | (b) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| | (c) | Contingent Deferred Rights. |
| | * | Non-income producing security. |
| | @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | Cost | | | Date) | | | Value | | | 4/30/2020 | |
| Forte Biosciences, Inc. | | 2/19/20 | | $ | 987,221 | | | | 0.49 | % | | $ | 987,221 | | | | 0.57 | % |
| Palantir Technologies, Inc., Cl. A | | 10/7/14 | | | 106,559 | | | | 0.05 | % | | | 94,162 | | | | 0.06 | % |
| Palantir Technologies, Inc., Cl. B | | 10/7/14 | | | 441,023 | | | | 0.22 | % | | | 384,025 | | | | 0.22 | % |
| Palantir Technologies, Inc., Cl. D | | 10/14/14 | | | 57,451 | | | | 0.03 | % | | | 50,031 | | | | 0.03 | % |
| Prosetta Biosciences, Inc., Series D | | 2/6/15 | | | 988,245 | | | | 0.50 | % | | | 173,492 | | | | 0.10 | % |
| Tolero CDR | | 2/6/17 | | | 315,501 | | | | 0.19 | % | | | 1,829,183 | | | | 1.06 | % |
| Total | | | | | | | | | | | | $ | 3,518,114 | | | | 2.04 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER MID CAP FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—57.9% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.6% | | | | | | | | |
| Mercury Systems, Inc.* | | | 15,539 | | | $ | 1,385,457 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—0.8% | | | | | | | | |
| Lululemon Athletica, Inc.* | | | 3,198 | | | | 714,689 | |
| | | | | | | | | |
| APPAREL RETAIL—1.0% | | | | | | | | |
| Burlington Stores, Inc.* | | | 4,641 | | | | 847,864 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—10.9% | | | | | | | | |
| ANSYS, Inc.* | | | 4,831 | | | | 1,264,902 | |
| Atlassian Corp. PLC, Cl. A* | | | 4,942 | | | | 768,432 | |
| Coupa Software, Inc.* | | | 4,190 | | | | 737,817 | |
| Dynatrace, Inc.* | | | 25,721 | | | | 767,772 | |
| Everbridge, Inc.* | | | 6,133 | | | | 683,094 | |
| Fair Isaac Corp.* | | | 942 | | | | 332,469 | |
| HubSpot, Inc.* | | | 1,686 | | | | 284,310 | |
| RingCentral, Inc., Cl. A* | | | 4,593 | | | | 1,049,638 | |
| Smartsheet, Inc., Cl. A* | | | 13,437 | | | | 708,399 | |
| The Trade Desk, Inc., Cl. A* | | | 3,361 | | | | 983,361 | |
| Tyler Technologies, Inc.* | | | 3,796 | | | | 1,217,339 | |
| Zoom Video Communications, Inc., Cl. A* | | | 5,142 | | | | 695,044 | |
| | | | | | | | 9,492,577 | |
| BIOTECHNOLOGY—0.8% | | | | | | | | |
| Moderna, Inc.* | | | 14,536 | | | | 668,511 | |
| | | | | | | | | |
| CASINOS & GAMING—1.8% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 77,995 | | | | 1,517,783 | |
| | | | | | | | | |
| COMMUNICATIONS EQUIPMENT—0.9% | | | | | | | | |
| Motorola Solutions, Inc. | | | 5,364 | | | | 771,397 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—1.4% | | | | | | | | |
| NIC, Inc. | | | 49,465 | | | | 1,198,537 | |
| | | | | | | | | |
| ENVIRONMENTAL & FACILITIES SERVICES—1.3% | | | | | | | | |
| Waste Connections, Inc. | | | 13,115 | | | | 1,126,710 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—3.3% | | | | | | | | |
| MarketAxess Holdings, Inc. | | | 4,023 | | | | 1,830,505 | |
| Tradeweb Markets, Inc., Cl. A | | | 19,926 | | | | 1,039,340 | |
| | | | | | | | 2,869,845 | |
| HEALTHCARE EQUIPMENT—9.3% | | | | | | | | |
| Cantel Medical Corp. | | | 33,133 | | | | 1,225,921 | |
| Danaher Corp. | | | 3,255 | | | | 532,062 | |
| DexCom, Inc.* | | | 4,758 | | | | 1,594,882 | |
| IDEXX Laboratories, Inc.* | | | 2,337 | | | | 648,751 | |
| Inogen, Inc.* | | | 27,639 | | | | 1,381,950 | |
| Intuitive Surgical, Inc.* | | | 1,098 | | | | 560,946 | |
| Masimo Corp.* | | | 6,688 | | | | 1,430,630 | |
| Mesa Laboratories, Inc. | | | 3,227 | | | | 768,026 | |
| | | | | | | | 8,143,168 | |
| HEALTHCARE SUPPLIES—5.7% | | | | | | | | |
| OraSure Technologies, Inc.* | | | 78,385 | | | | 1,249,457 | |
| Quidel Corp.* | | | 21,161 | | | | 2,941,379 | |
THE ALGER FUNDS | ALGER MID CAP FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—57.9% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE SUPPLIES—5.7% (CONT.) | | | | | | | | |
| Silk Road Medical, Inc.* | | | 17,273 | | | $ | 723,393 | |
| | | | | | | | 4,914,229 | |
| HEALTHCARE TECHNOLOGY—3.6% | | | | | | | | |
| Teladoc Health, Inc.* | | | 10,738 | | | | 1,767,368 | |
| Veeva Systems, Inc., Cl. A* | | | 6,828 | | | | 1,302,782 | |
| | | | | | | | 3,070,150 | |
| INTERACTIVE HOME ENTERTAINMENT—1.3% | | | | | | | | |
| Activision Blizzard, Inc. | | | 17,359 | | | | 1,106,289 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—3.5% | | | | | | | | |
| Chewy, Inc., Cl. A* | | | 26,688 | | | | 1,153,989 | |
| Etsy, Inc.* | | | 11,119 | | | | 721,290 | |
| MercadoLibre, Inc.* | | | 1,908 | | | | 1,113,337 | |
| | | | | | | | 2,988,616 | |
| INTERNET SERVICES & INFRASTRUCTURE—1.7% | | | | | | | | |
| Okta, Inc., Cl. A* | | | 4,066 | | | | 615,186 | |
| Shopify, Inc., Cl. A* | | | 1,335 | | | | 844,107 | |
| | | | | | | | 1,459,293 | |
| LEISURE FACILITIES—2.0% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 12,503 | | | | 754,306 | |
| Vail Resorts, Inc. | | | 5,635 | | | | 963,585 | |
| | | | | | | | 1,717,891 | |
| LIFE SCIENCES TOOLS & SERVICES—1.3% | | | | | | | | |
| Bio-Techne Corp. | | | 4,938 | | | | 1,111,050 | |
| | | | | | | | | |
| PHARMACEUTICALS—1.1% | | | | | | | | |
| Zoetis, Inc., Cl. A | | | 7,601 | | | | 982,885 | |
| | | | | | | | | |
| RESTAURANTS—0.8% | | | | | | | | |
| Chipotle Mexican Grill, Inc., Cl. A* | | | 767 | | | | 673,848 | |
| | | | | | | | | |
| SEMICONDUCTORS—0.9% | | | | | | | | |
| Universal Display Corp. | | | 5,279 | | | | 792,483 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—1.2% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 15,344 | | | | 1,038,175 | |
| | | | | | | | | |
| TRADING COMPANIES & DISTRIBUTORS—1.7% | | | | | | | | |
| SiteOne Landscape Supply, Inc.* | | | 16,446 | | | | 1,457,609 | |
| | | | | | | | | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $42,035,224) | | | | | | | 50,049,056 | |
| Total Investments | | | | | | | | |
| (Cost $42,035,224) | | | 57.9 | % | | $ | 50,049,056 | |
| Unaffiliated Securities (Cost $42,035,224) | | | | | | | 50,049,056 | |
| Other Assets in Excess of Liabilities | | | 42.1 | % | | | 36,317,482 | |
| NET ASSETS | | | 100.0 | % | | $ | 86,366,538 | |
* Non-income producing security.
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—95.5% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.7% | | | | | | | | |
| Kratos Defense & Security Solutions, Inc.* | | | 727,450 | | | $ | 10,926,299 | |
| | | | | | | | | |
| AIR FREIGHT & LOGISTICS—0.6% | | | | | | | | |
| XPO Logistics, Inc.* | | | 57,484 | | | | 3,836,482 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.2% | | | | | | | | |
| Canada Goose Holdings, Inc.* | | | 309,288 | | | | 7,376,519 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—22.6% | | | | | | | | |
| Altair Engineering, Inc., Cl. A* | | | 66,695 | | | | 2,200,268 | |
| Avalara, Inc.* | | | 162,947 | | | | 14,562,573 | |
| Bill.com Holdings, Inc.* | | | 16,603 | | | | 977,751 | |
| Cerence, Inc.* | | | 74,127 | | | | 1,568,527 | |
| Ebix, Inc. | | | 306,182 | | | | 6,408,389 | |
| Everbridge, Inc.* | | | 179,998 | | | | 20,048,177 | |
| Globant SA* | | | 123,274 | | | | 14,259,104 | |
| HubSpot, Inc.* | | | 79,798 | | | | 13,456,337 | |
| LivePerson, Inc.* | | | 30,286 | | | | 725,047 | |
| Mimecast Ltd.* | | | 14,983 | | | | 612,805 | |
| Paylocity Holding Corp.* | | | 272,190 | | | | 31,173,920 | |
| Pluralsight, Inc., Cl. A* | | | 268,203 | | | | 4,409,257 | |
| SPS Commerce, Inc.* | | | 214,372 | | | | 11,899,790 | |
| The Trade Desk, Inc., Cl. A* | | | 67,789 | | | | 19,833,706 | |
| | | | | | | | 142,135,651 | |
| ASSET MANAGEMENT & CUSTODY BANKS—3.0% | | | | | | | | |
| Hamilton Lane, Inc., Cl. A | | | 293,310 | | | | 19,021,153 | |
| | | | | | | | | |
| BIOTECHNOLOGY—5.7% | | | | | | | | |
| ACADIA Pharmaceuticals, Inc.* | | | 383,828 | | | | 18,542,731 | |
| Natera, Inc.* | | | 59,856 | | | | 2,217,066 | |
| Portola Pharmaceuticals, Inc.* | | | 111,966 | | | | 792,719 | |
| Puma Biotechnology, Inc.* | | | 828,169 | | | | 8,323,098 | |
| Ultragenyx Pharmaceutical, Inc.* | | | 91,432 | | | | 5,525,236 | |
| | | | | | | | 35,400,850 | |
| CONSUMER FINANCE—0.3% | | | | | | | | |
| LendingTree, Inc.* | | | 6,695 | | | | 1,669,532 | |
| | | | | | | | | |
| EDUCATION SERVICES—6.1% | | | | | | | | |
| Chegg, Inc.* | | | 886,788 | | | | 37,910,187 | |
| | | | | | | | | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—0.7% | | | | | | | | |
| Novanta, Inc.* | | | 49,480 | | | | 4,299,317 | |
| | | | | | | | | |
| ENVIRONMENTAL & FACILITIES SERVICES—4.6% | | | | | | | | |
| Casella Waste Systems, Inc., Cl. A* | | | 617,239 | | | | 28,627,545 | |
| | | | | | | | | |
| GENERAL MERCHANDISE STORES—3.0% | | | | | | | | |
| Ollie’s Bargain Outlet Holdings, Inc.* | | | 280,002 | | | | 19,014,936 | |
| | | | | | | | | |
| HEALTHCARE DISTRIBUTORS—2.0% | | | | | | | | |
| PetIQ, Inc., Cl. A* | | | 439,323 | | | | 12,564,638 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—11.8% | | | | | | | | |
| Glaukos Corp.* | | | 415,280 | | | | 15,236,623 | |
| Insulet Corp.* | | | 116,475 | | | | 23,262,387 | |
THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—95.5% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE EQUIPMENT—11.8% (CONT.) | | | | | | | | |
| Nevro Corp.* | | | 299,782 | | | $ | 35,266,355 | |
| | | | | | | | 73,765,365 | |
| HEALTHCARE FACILITIES—1.2% | | | | | | | | |
| US Physical Therapy, Inc. | | | 101,983 | | | | 7,699,717 | |
| | | | | | | | | |
| HEALTHCARE SUPPLIES—0.3% | | | | | | | | |
| Silk Road Medical, Inc.* | | | 52,495 | | | | 2,198,491 | |
| | | | | | | | | |
| HEALTHCARE TECHNOLOGY—1.8% | | | | | | | | |
| Tabula Rasa HealthCare, Inc.* | | | 182,165 | | | | 11,538,331 | |
| | | | | | | | | |
| INSURANCE BROKERS—1.4% | | | | | | | | |
| eHealth, Inc.* | | | 48,035 | | | | 5,125,335 | |
| Goosehead Insurance, Inc., Cl. A* | | | 66,031 | | | | 3,706,980 | |
| | | | | | | | 8,832,315 | |
| INTERNET & DIRECT MARKETING RETAIL—2.1% | | | | | | | | |
| Wayfair, Inc., Cl. A* | | | 107,126 | | | | 13,287,909 | |
| | | | | | | | | |
| IT CONSULTING & OTHER SERVICES—5.2% | | | | | | | | |
| EPAM Systems, Inc.* | | | 149,260 | | | | 32,970,041 | |
| | | | | | | | | |
| LEISURE FACILITIES—2.6% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 271,363 | | | | 16,371,330 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—1.4% | | | | | | | | |
| NeoGenomics, Inc.* | | | 320,542 | | | | 8,763,618 | |
| | | | | | | | | |
| MANAGED HEALTHCARE—2.8% | | | | | | | | |
| Progyny, Inc.* | | | 760,866 | | | | 17,827,090 | |
| | | | | | | | | |
| PHARMACEUTICALS—0.3% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 133,615 | | | | 2,036,293 | |
| | | | | | | | | |
| REAL ESTATE SERVICES—5.1% | | | | | | | | |
| FirstService Corp. | | | 370,312 | | | | 32,061,613 | |
| | | | | | | | | |
| REGIONAL BANKS—1.5% | | | | | | | | |
| Signature Bank | | | 90,037 | | | | 9,650,166 | |
| | | | | | | | | |
| RESTAURANTS—0.3% | | | | | | | | |
| Wingstop, Inc. | | | 14,360 | | | | 1,683,997 | |
| | | | | | | | | |
| SEMICONDUCTORS—0.8% | | | | | | | | |
| Impinj, Inc.* | | | 226,535 | | | | 5,087,976 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—2.2% | | | | | | | | |
| Rapid7, Inc.* | | | 296,927 | | | | 13,525,025 | |
| | | | | | | | | |
| THRIFTS & MORTGAGE FINANCE—0.3% | | | | | | | | |
| Axos Financial, Inc.* | | | 91,657 | | | | 2,112,694 | |
| | | | | | | | | |
| TRADING COMPANIES & DISTRIBUTORS—2.9% | | | | | | | | |
| SiteOne Landscape Supply, Inc.* | | | 208,392 | | | | 18,469,783 | |
| | | | | | | | | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $511,099,689) | | | | | | | 600,664,863 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 231,474 | | | | 182,864 | |
| (Cost $1,041,633) | | | | | | | 182,864 | |
THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| | | | | | VALUE | |
| Total Investments | | | | | | | | |
| (Cost $512,141,322) | | | 95.5 | % | | $ | 600,847,727 | |
| | | | | | | | | |
| Affiliated Securities (Cost $1,041,633) | | | | | | | 182,864 | |
| Unaffiliated Securities (Cost $511,099,689) | | | | | | | 600,664,863 | |
| Other Assets in Excess of Liabilities | | | 4.5 | % | | | 28,276,580 | |
| NET ASSETS | | | 100.0 | % | | $ | 629,124,307 | |
| (a) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 4/30/2020 | |
| Prosetta Biosciences, Inc., Series D | | | 2/6/15 | | | $ | 1,041,633 | | | | 0.10 | % | | $ | 182,864 | | | | 0.03 | % |
| Total | | | | | | | | | | | | | | $ | 182,864 | | | | 0.03 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—88.2% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.7% | | | | | | | | |
| Hexcel Corp. | | | 9,589 | | | $ | 331,684 | |
| Mercury Systems, Inc.* | | | 29,493 | | | | 2,629,595 | |
| | | | | | | | 2,961,279 | |
| ALTERNATIVE CARRIERS—0.8% | | | | | | | | |
| Bandwidth, Inc., Cl. A* | | | 16,805 | | | | 1,370,616 | |
| | | | | | | | | |
| APPAREL RETAIL—1.1% | | | | | | | | |
| Burlington Stores, Inc.* | | | 10,958 | | | | 2,001,917 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—19.3% | | | | | | | | |
| ACI Worldwide, Inc.* | | | 84,623 | | | | 2,318,670 | |
| Avalara, Inc.* | | | 57,389 | | | | 5,128,855 | |
| Beneftfocus, Inc.* | | | 23,740 | | | | 257,104 | |
| Bill.com Holdings, Inc.* | | | 13,836 | | | | 814,802 | |
| Blackbaud, Inc. | | | 31,230 | | | | 1,725,770 | |
| Blackline, Inc.* | | | 14,593 | | | | 886,379 | |
| Coupa Software, Inc.* | | | 14,692 | | | | 2,587,114 | |
| Everbridge, Inc.* | | | 30,369 | | | | 3,382,499 | |
| Guidewire Software, Inc.* | | | 21,822 | | | | 1,982,310 | |
| HubSpot, Inc.* | | | 15,186 | | | | 2,560,815 | |
| Manhattan Associates, Inc.* | | | 21,311 | | | | 1,511,802 | |
| Medallia, Inc.* | | | 1,766 | | | | 37,934 | |
| Paycom Software, Inc.* | | | 11,592 | | | | 3,025,744 | |
| Q2 Holdings, Inc.* | | | 34,462 | | | | 2,747,311 | |
| Smartsheet, Inc., Cl. A* | | | 23,611 | | | | 1,244,772 | |
| SPS Commerce, Inc.* | | | 24,866 | | | | 1,380,312 | |
| Tyler Technologies, Inc.* | | | 7,572 | | | | 2,428,265 | |
| | | | | | | | 34,020,458 | |
| ASSET MANAGEMENT & CUSTODY BANKS—1.5% | | | | | | | | |
| Affiliated Managers Group, Inc. | | | 17,182 | | | | 1,202,053 | |
| Ares Management Corp., Cl. A | | | 11,888 | | | | 398,842 | |
| WisdomTree Investments, Inc. | | | 300,487 | | | | 973,578 | |
| | | | | | | | 2,574,473 | |
| BIOTECHNOLOGY—3.3% | | | | | | | | |
| CareDx, Inc.* | | | 106,657 | | | | 2,706,954 | |
| Exact Sciences Corp.* | | | 14,708 | | | | 1,161,638 | |
| Moderna, Inc.* | | | 23,200 | | | | 1,066,968 | |
| Portola Pharmaceuticals, Inc.* | | | 20,047 | | | | 141,933 | |
| Turning Point Therapeutics, Inc.* | | | 12,916 | | | | 665,303 | |
| | | | | | | | 5,742,796 | |
| CASINOS & GAMING—1.4% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 97,002 | | | | 1,887,659 | |
| Penn National Gaming, Inc.* | | | 29,112 | | | | 518,776 | |
| | | | | | | | 2,406,435 | |
| DIVERSIFIED SUPPORT SERVICES—0.4% | | | | | | | | |
| IAA, Inc.* | | | 17,348 | | | | 669,633 | |
| | | | | | | | | |
| ELECTRICAL COMPONENTS & EQUIPMENT—0.4% | | | | | | | | |
| Sunrun, Inc.* | | | 44,513 | | | | 624,517 | |
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—88.2% (CONT.) | | SHARES | | | VALUE | |
| ELECTRONIC COMPONENTS—0.8% | | | | | | | | |
| Dolby Laboratories, Inc., Cl. A | | | 23,069 | | | $ | 1,384,832 | |
| | | | | | | | | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.5% | | | | | | | | |
| Cognex Corp. | | | 46,587 | | | | 2,573,466 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—0.9% | | | | | | | | |
| Tradeweb Markets, Inc., Cl. A | | | 29,076 | | | | 1,516,604 | |
| | | | | | | | | |
| GENERAL MERCHANDISE STORES—0.4% | | | | | | | | |
| Ollie’s Bargain Outlet Holdings, Inc.* | | | 11,453 | | | | 777,773 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—13.2% | | | | | | | | |
| ABIOMED, Inc.* | | | 14,580 | | | | 2,788,425 | |
| Cantel Medical Corp. | | | 50,493 | | | | 1,868,241 | |
| CryoPort, Inc.* | | | 44,672 | | | | 841,620 | |
| DexCom, Inc.* | | | 17,121 | | | | 5,738,959 | |
| Inmode Ltd.* | | | 11,631 | | | | 302,639 | |
| Inogen, Inc.* | | | 20,066 | | | | 1,003,300 | |
| Insulet Corp.* | | | 37,975 | | | | 7,584,367 | |
| Tandem Diabetes Care, Inc.* | | | 40,142 | | | | 3,202,529 | |
| | | | | | | | 23,330,080 | |
| HEALTHCARE SERVICES—0.6% | | | | | | | | |
| 1Life Healthcare, Inc.* | | | 8,883 | | | | 219,144 | |
| Guardant Health, Inc.* | | | 10,540 | | | | 811,158 | |
| | | | | | | | 1,030,302 | |
| HEALTHCARE SUPPLIES—8.7% | | | | | | | | |
| Neogen Corp.* | | | 56,867 | | | | 3,559,306 | |
| Quidel Corp.* | | | 85,164 | | | | 11,837,796 | |
| | | | | | | | 15,397,102 | |
| HEALTHCARE TECHNOLOGY—7.6% | | | | | | | | |
| Teladoc Health, Inc.* | | | 20,065 | | | | 3,302,498 | |
| Veeva Systems, Inc., Cl. A* | | | 45,929 | | | | 8,763,254 | |
| Vocera Communications, Inc.* | | | 74,674 | | | | 1,415,819 | |
| | | | | | | | 13,481,571 | |
| HOMEFURNISHING RETAIL—0.3% | | | | | | | | |
| Bed Bath & Beyond, Inc. | | | 72,849 | | | | 450,935 | |
| | | | | | | | | |
| HYPERMARKETS & SUPER CENTERS—1.0% | | | | | | | | |
| BJ’s Wholesale Club Holdings, Inc.* | | | 67,093 | | | | 1,765,217 | |
| | | | | | | | | |
| INSURANCE BROKERS—0.5% | | | | | | | | |
| eHealth, Inc.* | | | 8,927 | | | | 952,511 | |
| | | | | | | | | |
| INTERACTIVE HOME ENTERTAINMENT—0.3% | | | | | | | | |
| Take-Two Interactive Software, Inc.* | | | 4,659 | | | | 563,972 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—0.4% | | | | | | | | |
| Grubhub, Inc.* | | | 14,923 | | | | 713,170 | |
| | | | | | | | | |
| INTERNET SERVICES & INFRASTRUCTURE—3.3% | | | | | | | | |
| Shopify, Inc., Cl. A* | | | 9,075 | | | | 5,738,032 | |
| | | | | | | | | |
| INVESTMENT BANKING & BROKERAGE—0.3% | | | | | | | | |
| Moelis & Co., Cl. A | | | 15,191 | | | | 453,755 | |
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—88.2% (CONT.) | | SHARES | | | VALUE | |
| LEISURE FACILITIES—0.6% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 18,384 | | | $ | 1,109,107 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—8.3% | | | | | | | | |
| 10X Genomics, Inc., Cl. A* | | | 11,065 | | | | 883,761 | |
| Bio-Techne Corp. | | | 30,982 | | | | 6,970,950 | |
| NanoString Technologies, Inc.* | | | 64,131 | | | | 2,036,801 | |
| NeoGenomics, Inc.* | | | 61,371 | | | | 1,677,883 | |
| PRA Health Sciences, Inc.* | | | 15,488 | | | | 1,494,592 | |
| Repligen Corp.* | | | 13,572 | | | | 1,576,388 | |
| | | | | | | | 14,640,375 | |
| MANAGED HEALTHCARE—1.1% | | | | | | | | |
| HealthEquity, Inc.* | | | 33,320 | | | | 1,874,916 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—0.9% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 36,757 | | | | 1,649,287 | |
| | | | | | | | | |
| OIL & GAS EXPLORATION & PRODUCTION—0.5% | | | | | | | | |
| Magnolia Oil & Gas Corp., Cl. A* | | | 150,277 | | | | 972,292 | |
| | | | | | | | | |
| PHARMACEUTICALS—0.4% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 51,050 | | | | 778,002 | |
| | | | | | | | | |
| REGIONAL BANKS—0.3% | | | | | | | | |
| Webster Financial Corp. | | | 16,937 | | | | 478,470 | |
| | | | | | | | | |
| RESTAURANTS—1.4% | | | | | | | | |
| Shake Shack, Inc., Cl. A* | | | 14,599 | | | | 795,791 | |
| Wingstop, Inc. | | | 13,971 | | | | 1,638,380 | |
| | | | | | | | 2,434,171 | |
| SEMICONDUCTOR EQUIPMENT—0.4% | | | | | | | | |
| SolarEdge Technologies, Inc.* | | | 6,240 | | | | 696,322 | |
| | | | | | | | | |
| SEMICONDUCTORS—0.9% | | | | | | | | |
| Universal Display Corp. | | | 10,579 | | | | 1,588,119 | |
| | | | | | | | | |
| SPECIALTY CHEMICALS—1.4% | | | | | | | | |
| Balchem Corp. | | | 28,622 | | | | 2,554,227 | |
| | | | | | | | | |
| SPECIALTY STORES—0.6% | | | | | | | | |
| Five Below, Inc.* | | | 7,595 | | | | 684,765 | |
| Sportsman’s Warehouse Holdings, Inc.* | | | 57,101 | | | | 408,843 | |
| | | | | | | | 1,093,608 | |
| SYSTEMS SOFTWARE—1.7% | | | | | | | | |
| Proofpoint, Inc.* | | | 24,560 | | | | 2,989,689 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $85,467,720) | | | | | | | 155,360,031 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 50,688 | | | | 40,044 | |
| (Cost $228,096) | | | | | | | 40,044 | |
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| RIGHTS—0.3% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.3% | | | | | | | | |
| Tolero CDR*@,(b),(c) | | | 174,782 | | | $ | 541,824 | |
| (Cost $94,483) | | | | | | | 541,824 | |
| REAL ESTATE INVESTMENT TRUST—3.1% | | SHARES | | | VALUE | |
| SPECIALIZED—3.1% | | | | | | | | |
| Digital Realty Trust, Inc. | | | 36,880 | | | | 5,513,191 | |
| (Cost $4,708,470) | | | | | | | 5,513,191 | |
| Total Investments | | | | | | | | |
| (Cost $90,498,769) | | | 91.6 | % | | $ | 161,455,090 | |
| Affiliated Securities (Cost $228,096) | | | | | | | 40,044 | |
| Unaffiliated Securities (Cost $90,270,673) | | | | | | | 161,415,046 | |
| Other Assets in Excess of Liabilities | | | 8.4 | % | | | 14,798,927 | |
| NET ASSETS | | | 100.0 | % | | $ | 176,254,017 | |
| | (a) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| | (b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| | (c) | Contingent Deferred Rights. |
| | * | Non-income producing security. |
| | @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 4/30/2020 | |
| Prosetta Biosciences, Inc., Series D | | | 2/6/15 | | | $ | 228,096 | | | | 0.10 | % | | $ | 40,044 | | | | 0.02 | % |
| Tolero CDR | | | 2/6/17 | | | | 94,483 | | | | 0.08 | % | | | 541,824 | | | | 0.31 | % |
| Total | | | | | | | | | | | | | | $ | 581,868 | | | | 0.33 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—91.7% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—3.4% | | | | | | | | |
| Mercury Systems, Inc.* | | | 1,572,692 | | | $ | 140,221,219 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—24.5% | | | | | | | | |
| Alteryx, Inc., Cl. A* | | | 448,983 | | | | 50,815,896 | |
| ANSYS, Inc.* | | | 429,383 | | | | 112,425,351 | |
| Avalara, Inc.* | | | 934,903 | | | | 83,552,281 | |
| Blackline, Inc.* | | | 1,166,122 | | | | 70,830,250 | |
| Coupa Software, Inc.* | | | 263,597 | | | | 46,416,796 | |
| Datadog, Inc., Cl. A* | | | 1,099,912 | | | | 49,628,029 | |
| Everbridge, Inc.* | | | 1,177,181 | | | | 131,114,420 | |
| Guidewire Software, Inc.* | | | 694,337 | | | | 63,073,573 | |
| Medallia, Inc.* | | | 1,863,527 | | | | 40,028,560 | |
| Model N, Inc.* | | | 1,772,448 | | | | 51,152,849 | |
| Paycom Software, Inc.* | | | 264,800 | | | | 69,118,096 | |
| Pluralsight, Inc., Cl. A* | | | 1,528,271 | | | | 25,124,775 | |
| PROS Holdings, Inc.* | | | 1,295,065 | | | | 44,537,285 | |
| Q2 Holdings, Inc.* | | | 891,246 | | | | 71,050,131 | |
| Smartsheet, Inc., Cl. A* | | | 548,769 | | | | 28,931,102 | |
| Tyler Technologies, Inc.* | | | 251,351 | | | | 80,605,752 | |
| | | | | | | | 1,018,405,146 | |
| BIOTECHNOLOGY—5.2% | | | | | | | | |
| CareDx, Inc.* | | | 4,293,058 | | | | 108,957,812 | |
| Natera, Inc.* | | | 2,905,971 | | | | 107,637,166 | |
| | | | | | | | 216,594,978 | |
| EDUCATION SERVICES—2.1% | | | | | | | | |
| Chegg, Inc.* | | | 2,059,501 | | | | 88,043,668 | |
| | | | | | | | | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—3.3% | | | | | | | | |
| Cognex Corp. | | | 1,751,527 | | | | 96,754,352 | |
| FLIR Systems, Inc. | | | 963,403 | | | | 41,811,690 | |
| | | | | | | | 138,566,042 | |
| HEALTHCARE DISTRIBUTORS—1.3% | | | | | | | | |
| PetIQ, Inc., Cl. A* | | | 1,934,447 | | | | 55,325,184 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—19.9% | | | | | | | | |
| ABIOMED, Inc.* | | | 452,527 | | | | 86,545,789 | |
| AtriCure, Inc.* | | | 1,415,312 | | | | 61,028,253 | |
| Cantel Medical Corp. | | | 2,099,995 | | | | 77,699,815 | |
| CryoPort, Inc.* | | | 3,838,759 | | | | 72,322,219 | |
| Glaukos Corp.* | | | 677,247 | | | | 24,848,192 | |
| Heska Corp.* | | | 958,142 | | | | 67,836,454 | |
| Inogen, Inc.* | | | 1,243,109 | | | | 62,155,450 | |
| Insulet Corp.* | | | 604,724 | | | | 120,775,477 | |
| Nevro Corp.* | | | 895,476 | | | | 105,343,797 | |
| Tactile Systems Technology, Inc.* | | | 1,739,181 | | | | 89,776,523 | |
| Tandem Diabetes Care, Inc.* | | | 750,811 | | | | 59,899,702 | |
| | | | | | | | 828,231,671 | |
| HEALTHCARE SERVICES—1.1% | | | | | | | | |
| Guardant Health, Inc.* | | | 602,920 | | | | 46,400,723 | |
THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—91.7% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE SUPPLIES—7.3% | | | | | | | | |
| Neogen Corp.* | | | 1,531,679 | | | $ | 95,867,789 | |
| Quidel Corp.* | | | 1,509,247 | | | | 209,785,333 | |
| | | | | | | | 305,653,122 | |
| HEALTHCARE TECHNOLOGY—5.1% | | | | | | | | |
| Teladoc Health, Inc.* | | | 416,529 | | | | 68,556,508 | |
| Veeva Systems, Inc., Cl. A* | | | 755,764 | | | | 144,199,771 | |
| | | | | | | | 212,756,279 | |
| INSURANCE BROKERS—1.6% | | | | | | | | |
| eHealth, Inc.* | | | 623,826 | | | | 66,562,234 | |
| | | | | | | | | |
| INTERNET SERVICES & INFRASTRUCTURE—1.1% | | | | | | | | |
| Shopify, Inc., Cl. A* | | | 75,260 | | | | 47,586,145 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—5.1% | | | | | | | | |
| Bio-Techne Corp. | | | 530,547 | | | | 119,373,075 | |
| Repligen Corp.* | | | 797,853 | | | | 92,670,626 | |
| | | | | | | | 212,043,701 | |
| MANAGED HEALTHCARE—2.0% | | | | | | | | |
| HealthEquity, Inc.* | | | 1,480,679 | | | | 83,317,807 | |
| | | | | | | | | |
| RESTAURANTS—4.3% | | | | | | | | |
| Shake Shack, Inc., Cl. A* | | | 616,116 | | | | 33,584,483 | |
| Wingstop, Inc. | | | 1,246,810 | | | | 146,213,409 | |
| | | | | | | | 179,797,892 | |
| SEMICONDUCTORS—1.4% | | | | | | | | |
| Monolithic Power Systems, Inc. | | | 288,180 | | | | 57,610,064 | |
| | | | | | | | | |
| SPECIALTY CHEMICALS—1.1% | | | | | | | | |
| Balchem Corp. | | | 506,173 | | | | 45,170,879 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—1.9% | | | | | | | | |
| Proofpoint, Inc.* | | | 661,646 | | | | 80,542,168 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $3,103,970,360) | | | | | | | 3,822,828,922 | |
| RIGHTS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY-0.0% | | | | | | | | |
| Tolero CDR*,@,(a),(b) | | | 11,905 | | | | 36,906 | |
| (Cost $6,436) | | | | | | | 36,906 | |
| Total Investments | | | | | | | | |
| (Cost $3,103,976,796) | | | 91.7 | % | | $ | 3,822,865,828 | |
| Unaffiliated Securities (Cost $3,103,976,796) | | | | | | | 3,822,865,828 | |
| Other Assets in Excess of Liabilities | | | 8.3 | % | | | 346,351,365 | |
| NET ASSETS | | | 100.0 | % | | $ | 4,169,217,193 | |
| | (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| | (b) | Contingent Deferred Rights. |
| | * | Non-income producing security. |
THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| | @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 4/30/2020 | |
| Tolero CDR | | | 2/6/17 | | | $ | 6,436 | | | | 0.00 | % | | $ | 36,906 | | | | 0.00 | % |
| Total | | | | | | | | | | | | | | $ | 36,906 | | | | 0.00 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—97.7% | | SHARES | | | VALUE | |
| AUSTRALIA-3.8% | | | | | | | | |
| APPLICATION SOFTWARE—2.0% | | | | | | | | |
| Technology One Ltd. | | | 376,333 | | | $ | 2,308,987 | |
| HEALTHCARE SUPPLIES—1.8% | | | | | | | | |
| Nanosonics Ltd.* | | | 490,062 | | | | 2,184,270 | |
| TOTAL AUSTRALIA | | | | | | | | |
| (Cost $3,651,355) | | | | | | | 4,493,257 | |
| | | | | | | | | |
| BRAZIL-1.6% | | | | | | | | |
| EDUCATION SERVICES—1.6% | | | | | | | | |
| Arco Platform Ltd., Cl. A* | | | 37,923 | | | | 1,904,493 | |
| (Cost $1,626,073) | | | | | | | | |
| | | | | | | | | |
| CANADA-3.9% | | | | | | | | |
| ASSET MANAGEMENT & CUSTODY BANKS—1.1% | | | | | | | | |
| Brookfield Asset Management, Inc., Cl. A | | | 40,000 | | | | 1,352,800 | |
| GOLD—2.8% | | | | | | | | |
| Kirkland Lake Gold Ltd. | | | 78,900 | | | | 3,268,038 | |
| TOTAL CANADA | | | | | | | | |
| (Cost $3,799,519) | | | | | | | 4,620,838 | |
| | | | | | | | | |
| CHINA-7.8% | | | | | | | | |
| CONSTRUCTION MACHINERY & HEAVY TRUCKS—2.0% | | | | | | | | |
| Sany Heavy Industry Co., Ltd., Cl. A | | | 849,940 | | | | 2,324,969 | |
| INTERACTIVE MEDIA & SERVICES—3.4% | | | | | | | | |
| Tencent Holdings Ltd. | | | 78,200 | | | | 4,111,009 | |
| INTERNET & DIRECT MARKETING RETAIL—2.4% | | | | | | | | |
| Alibaba Group Holding Ltd.#,* | | | 14,400 | | | | 2,918,448 | |
| TOTAL CHINA | | | | | | | | |
| (Cost $8,564,512) | | | | | | | 9,354,426 | |
| | | | | | | | | |
| DENMARK-5.5% | | | | | | | | |
| AIR FREIGHT & LOGISTICS—2.0% | | | | | | | | |
| DSV PANALPINA AS | | | 23,600 | | | | 2,451,595 | |
| APPLICATION SOFTWARE—1.7% | | | | | | | | |
| Netcompany Group AS*,(a) | | | 38,200 | | | | 1,973,150 | |
| BIOTECHNOLOGY—1.8% | | | | | | | | |
| Genmab AS* | | | 9,200 | | | | 2,211,133 | |
| TOTAL DENMARK | | | | | | | | |
| (Cost $5,566,800) | | | | | | | 6,635,878 | |
| | | | | | | | | |
| FRANCE-9.2% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.5% | | | | | | | | |
| LVMH Moet Hennessy Louis Vuitton SE | | | 7,700 | | | | 2,976,358 | |
| LIFE SCIENCES TOOLS & SERVICES—3.0% | | | | | | | | |
| Eurofins Scientific SE | | | 6,550 | | | | 3,622,773 | |
| RESEARCH & CONSULTING SERVICES—2.7% | | | | | | | | |
| Teleperformance | | | 14,057 | | | | 3,148,466 | |
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.7% (CONT.) | | SHARES | | | VALUE | |
| FRANCE-9.2% (CONT.) | | | | | | | | |
| SEMICONDUCTORS—1.0% | | | | | | | | |
| STMicroelectronics NV | | | 47,300 | | | $ | 1,217,878 | |
| TOTAL FRANCE | | | | | | | | |
| (Cost $9,582,071) | | | | | | | 10,965,475 | |
| | | | | | | | | |
| GERMANY—5.0% | | | | | | | | |
| AUTOMOBILE MANUFACTURERS—1.3% | | | | | | | | |
| Bayerische Motoren Werke AG | | | 27,000 | | | | 1,588,064 | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.9% | | | | | | | | |
| Varta AG* | | | 26,859 | | | | 2,225,527 | |
| FOOTWEAR—1.8% | | | | | | | | |
| Puma SE* | | | 35,300 | | | | 2,217,085 | |
| TOTAL GERMANY | | | | | | | | |
| (Cost $6,056,237) | | | | | | | 6,030,676 | |
| | | | | | | | | |
| HONG KONG—2.6% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.3% | | | | | | | | |
| Samsonite International SA(a) | | | 1,867,000 | | | | 1,588,147 | |
| INDUSTRIAL MACHINERY—1.3% | | | | | | | | |
| Techtronic Industries Co., Ltd. | | | 198,000 | | | | 1,501,366 | |
| TOTAL HONG KONG | | | | | | | | |
| (Cost $3,240,043) | | | | | | | 3,089,513 | |
| | | | | | | | | |
| INDIA—1.6% | | | | | | | | |
| DIVERSIFIED BANKS—1.6% | | | | | | | | |
| HDFC Bank Ltd.# | | | 44,300 | | | | 1,920,405 | |
| (Cost $1,658,708) | | | | | | | | |
| | | | | | | | | |
| IRELAND-2.9% | | | | | | | | |
| PACKAGED FOODS & MEATS—2.9% | | | | | | | | |
| Kerry Group PLC, Cl. A | | | 30,541 | | | | 3,503,657 | |
| (Cost $3,254,008) | | | | | | | | |
| | | | | | | | | |
| ITALY-6.3% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.9% | | | | | | | | |
| Moncler SpA | | | 59,786 | | | | 2,248,060 | |
| AUTOMOBILE MANUFACTURERS—2.7% | | | | | | | | |
| Ferrari NV | | | 21,062 | | | | 3,277,668 | |
| DATA PROCESSING & OUTSOURCED SERVICES—1.7% | | | | | | | | |
| Nexi SpA* | | | 134,300 | | | | 2,036,973 | |
| TOTAL ITALY | | | | | | | | |
| (Cost $6,345,985) | | | | | | | 7,562,701 | |
| | | | | | | | | |
| JAPAN-13.4% | | | | | | | | |
| CONSTRUCTION & ENGINEERING—2.0% | | | | | | | | |
| JTOWER, Inc.* | | | 67,800 | | | | 2,392,711 | |
| ELECTRONIC COMPONENTS—2.5% | | | | | | | | |
| Murata Manufacturing Co., Ltd. | | | 53,800 | | | | 3,031,469 | |
| HEALTHCARE SUPPLIES—2.4% | | | | | | | | |
| Hoya Corp. | | | 31,200 | | | | 2,845,232 | |
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.7% (CONT.) | | SHARES | | | VALUE | |
| JAPAN-13.4% (CONT.) | | | | | | | | |
| INDUSTRIAL MACHINERY—1.4% | | | | | | | | |
| FANUC Corp. | | | 10,400 | | | $ | 1,697,419 | |
| INTERACTIVE HOME ENTERTAINMENT—2.5% | | | | | | | | |
| Nintendo Co., Ltd. | | | 7,300 | | | | 3,014,348 | |
| SEMICONDUCTOR EQUIPMENT—2.6% | | | | | | | | |
| Lasertec Corp. | | | 46,099 | | | | 3,048,829 | |
| TOTAL JAPAN | | | | | | | | |
| (Cost $13,994,367) | | | | | | | 16,030,008 | |
| | | | | | | | | |
| NETHERLANDS-7.0% | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—2.2% | | | | | | | | |
| Adyen NV*,(a) | | | 2,650 | | | | 2,616,729 | |
| SEMICONDUCTOR EQUIPMENT—2.4% | | | | | | | | |
| ASML Holding NV | | | 9,900 | | | | 2,891,250 | |
| SEMICONDUCTORS—2.4% | | | | | | | | |
| NXP Semiconductors NV | | | 29,300 | | | | 2,917,401 | |
| TOTAL NETHERLANDS | | | | | | | | |
| (Cost $6,812,227) | | | | | | | 8,425,380 | |
| | | | | | | | | |
| NEW ZEALAND—4.6% | | | | | | | | |
| APPLICATION SOFTWARE—2.0% | | | | | | | | |
| Xero Ltd.* | | | 46,600 | | | | 2,382,835 | |
| PACKAGED FOODS & MEATS—2.6% | | | | | | | | |
| a2 Milk Co., Ltd.* | | | 265,000 | | | | 3,125,776 | |
| TOTAL NEW ZEALAND | | | | | | | | |
| (Cost $4,247,518) | | | | | | | 5,508,611 | |
| | | | | | | | | |
| RUSSIA-1.4% | | | | | | | | |
| INTEGRATED OIL & GAS—1.4% | | | | | | | | |
| LUKOIL PJSC# | | | 25,000 | | | | 1,630,944 | |
| (Cost $1,751,205) | | | | | | | | |
| | | | | | | | | |
| SOUTH KOREA—2.2% | | | | | | | | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—2.2% | | | | | | | | |
| Samsung Electronics Co., Ltd. | | | 64,200 | | | | 2,647,614 | |
| (Cost $2,805,071) | | | | | | | | |
| | | | | | | | | |
| SPAIN-2.7% | | | | | | | | |
| BIOTECHNOLOGY—2.7% | | | | | | | | |
| Grifols SA# | | | 157,341 | | | | 3,194,022 | |
| (Cost $3,254,011) | | | | | | | | |
| | | | | | | | | |
| SWEDEN-3.8% | | | | | | | | |
| ASSET MANAGEMENT & CUSTODY BANKS—2.0% | | | | | | | | |
| EQT AB* | | | 175,898 | | | | 2,430,326 | |
| HEALTHCARE EQUIPMENT—1.8% | | | | | | | | |
| Getinge AB, Cl. B | | | 108,549 | | | | 2,080,346 | |
| TOTAL SWEDEN | | | | | | | | |
| (Cost $3,858,547) | | | | | | | 4,510,672 | |
| | | | | | | | | |
| SWITZERLAND-5.3% | | | | | | | | |
| ASSET MANAGEMENT & CUSTODY BANKS—2.8% | | | | | | | | |
| Partners Group Holding AG | | | 4,284 | | | | 3,375,091 | |
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.7% (CONT.) | | SHARES | | | VALUE | |
| SWITZERLAND-5.3% (CONT.) | | | | | | | | |
| SPECIALTY CHEMICALS—2.5% | | | | | | | | |
| Sika AG | | | 18,000 | | | $ | 2,976,595 | |
| TOTAL SWITZERLAND | | | | | | | | |
| (Cost $5,631,769) | | | | | | | 6,351,686 | |
| | | | | | | | | |
| UNITED KINGDOM—4.8% | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—2.8% | | | | | | | | |
| London Stock Exchange Group PLC | | | 35,600 | | | | 3,332,181 | |
| PHARMACEUTICALS—2.0% | | | | | | | | |
| AstraZeneca PLC | | | 22,700 | | | | 2,374,335 | |
| TOTAL UNITED KINGDOM | | | | | | | | |
| (Cost $4,124,713) | | | | | | | 5,706,516 | |
| | | | | | | | | |
| UNITED STATES—2.3% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.3% | | | | | | | | |
| Lululemon Athletica, Inc.* | | | 12,391 | | | | 2,769,141 | |
| (Cost $2,149,664) | | | | | | | | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $101,974,403) | | | | | | | 116,855,913 | |
| Total Investments | | | | | | | | |
| (Cost $101,974,403) | | | 97.7 | % | | $ | 116,855,913 | |
| Unaffiliated Securities (Cost $101,974,403) | | | | | | | 116,855,913 | |
| Other Assets in Excess of Liabilities | | | 2.3 | % | | | 2,758,843 | |
| NET ASSETS | | | 100.0 | % | | $ | 119,614,756 | |
| # | American Depositary Receipts. |
| (a) | Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. These securities represent 5.2% of the net assets of the Fund. |
| * | Non-income producing security. |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments April 30, 2020 (Unaudited)
| COMMON STOCKS—95.4% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—27.7% | | | | | | | | |
| AbbVie, Inc. | | | 80,000 | | | $ | 6,576,000 | |
| Acceleron Pharma, Inc.* | | | 12,000 | | | | 1,086,360 | |
| Akebia Therapeutics, Inc.* | | | 55,000 | | | | 445,500 | |
| Alexion Pharmaceuticals, Inc.* | | | 17,000 | | | | 1,826,990 | |
| Alnylam Pharmaceuticals, Inc.* | | | 6,000 | | | | 790,200 | |
| Amarin Corp. PLC#,* | | | 72,000 | | | | 547,920 | |
| Argenx SE#,* | | | 7,000 | | | | 1,025,430 | |
| Arrowhead Pharmaceuticals, Inc.* | | | 18,000 | | | | 619,740 | |
| Ascendis Pharma AS#,* | | | 5,000 | | | | 678,650 | |
| Aurinia Pharmaceuticals, Inc.* | | | 56,000 | | | | 965,440 | |
| BioMarin Pharmaceutical, Inc.* | | | 16,975 | | | | 1,562,040 | |
| BioNTech SE#,* | | | 6,000 | | | | 284,880 | |
| Black Diamond Therapeutics, Inc.* | | | 16,000 | | | | 592,640 | |
| Calithera Biosciences, Inc.* | | | 20,000 | | | | 122,600 | |
| Castle Biosciences, Inc.* | | | 16,000 | | | | 494,880 | |
| ChemoCentryx, Inc.* | | | 30,000 | | | | 1,590,300 | |
| Epizyme, Inc.* | | | 35,000 | | | | 576,100 | |
| Exact Sciences Corp.* | | | 7,000 | | | | 552,860 | |
| FibroGen, Inc.* | | | 18,000 | | | | 664,020 | |
| Five Prime Therapeutics, Inc.* | | | 50,000 | | | | 164,000 | |
| Forte Biosciences, Inc.*,@,(a) | | | 1,003,790 | | | | 1,080,981 | |
| Genmab AS#,* | | | 55,000 | | | | 1,338,150 | |
| Gilead Sciences, Inc. | | | 90,000 | | | | 7,560,000 | |
| GlycoMimetics, Inc.* | | | 55,000 | | | | 153,450 | |
| Halozyme Therapeutics, Inc.* | | | 70,000 | | | | 1,585,850 | |
| Immunomedics, Inc.* | | | 57,500 | | | | 1,746,850 | |
| Incyte Corp.* | | | 4,000 | | | | 390,640 | |
| InflaRx NV* | | | 15,000 | | | | 106,050 | |
| Inovio Pharmaceuticals, Inc.* | | | 40,000 | | | | 481,200 | |
| Iovance Biotherapeutics, Inc.* | | | 30,000 | | | | 964,500 | |
| Kodiak Sciences, Inc.* | | | 3,000 | | | | 163,650 | |
| MeiraGTx Holdings PLC* | | | 38,000 | | | | 523,260 | |
| Mirati Therapeutics, Inc.* | | | 9,000 | | | | 765,360 | |
| Moderna, Inc.* | | | 45,000 | | | | 2,069,550 | |
| Principia Biopharma, Inc.* | | | 3,000 | | | | 186,540 | |
| Regeneron Pharmaceuticals, Inc.* | | | 10,000 | | | | 5,258,800 | |
| REGENXBIO, Inc.* | | | 13,000 | | | | 517,660 | |
| Rocket Pharmaceuticals, Inc.* | | | 22,000 | | | | 325,600 | |
| Sarepta Therapeutics, Inc.* | | | 56,000 | | | | 6,601,280 | |
| Seattle Genetics, Inc.* | | | 17,000 | | | | 2,332,910 | |
| TG Therapeutics, Inc.* | | | 41,000 | | | | 482,160 | |
| Trillium Therapeutics, Inc.* | | | 20,000 | | | | 88,400 | |
| Turning Point Therapeutics, Inc.* | | | 40,000 | | | | 2,060,400 | |
| Twist Bioscience Corp.* | | | 29,000 | | | | 948,600 | |
| Vertex Pharmaceuticals, Inc.* | | | 43,000 | | | | 10,801,600 | |
| Zymeworks, Inc.* | | | 22,000 | | | | 803,660 | |
| | | | | | | | 70,503,651 | |
THE ALGER FUNDS ALGER HEALTH SCIENCES FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—95.4% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE EQUIPMENT—21.2% | | | | | | | | |
| Abbott Laboratories | | | 70,108 | | | $ | 6,456,246 | |
| Baxter International, Inc. | | | 38,000 | | | | 3,373,640 | |
| Beyond Air, Inc.* | | | 25,000 | | | | 184,250 | |
| Boston Scientific Corp.* | | | 45,000 | | | | 1,686,600 | |
| Cantel Medical Corp. | | | 22,000 | | | | 814,000 | |
| Danaher Corp. | | | 45,000 | | | | 7,355,700 | |
| DexCom, Inc.* | | | 31,000 | | | | 10,391,200 | |
| Edwards Lifesciences Corp.* | | | 6,000 | | | | 1,305,000 | |
| Hill-Rom Holdings, Inc. | | | 15,000 | | | | 1,687,350 | |
| Hologic, Inc.* | | | 39,000 | | | | 1,953,900 | |
| Insulet Corp.* | | | 24,000 | | | | 4,793,280 | |
| Intuitive Surgical, Inc.* | | | 3,500 | | | | 1,788,080 | |
| Masimo Corp.* | | | 13,000 | | | | 2,780,830 | |
| Nevro Corp.* | | | 14,000 | | | | 1,646,960 | |
| ResMed, Inc. | | | 8,000 | | | | 1,242,560 | |
| Sartorius AG | | | 9,000 | | | | 2,528,127 | |
| Stryker Corp. | | | 15,000 | | | | 2,796,450 | |
| Tandem Diabetes Care, Inc.* | | | 15,000 | | | | 1,196,700 | |
| | | | | | | | 53,980,873 | |
| HEALTHCARE SERVICES—3.3% | | | | | | | | |
| 1Life Healthcare, Inc.* | | | 13,043 | | | | 321,771 | |
| Catasys, Inc.* | | | 17,000 | | | | 517,480 | |
| Cigna Corp. | | | 22,500 | | | | 4,405,050 | |
| Guardant Health, Inc.* | | | 40,734 | | | | 3,134,888 | |
| | | | | | | | 8,379,189 | |
| HEALTHCARE SUPPLIES—1.2% | | | | | | | | |
| OraSure Technologies, Inc.* | | | 55,000 | | | | 876,700 | |
| Quidel Corp.* | | | 11,000 | | | | 1,529,000 | |
| West Pharmaceutical Services, Inc. | | | 3,000 | | | | 567,780 | |
| | | | | | | | 2,973,480 | |
| HEALTHCARE TECHNOLOGY—2.8% | | | | | | | | |
| Livongo Health, Inc.* | | | 14,000 | | | | 560,140 | |
| Phreesia, Inc.* | | | 23,353 | | | | 592,933 | |
| Schrodinger, Inc.* | | | 21,301 | | | | 988,366 | |
| Teladoc Health, Inc.* | | | 25,407 | | | | 4,181,738 | |
| Veeva Systems, Inc., Cl. A* | | | 4,000 | | | | 763,200 | |
| | | | | | | | 7,086,377 | |
| INSURANCE BROKERS—1.0% | | | | | | | | |
| eHealth, Inc.* | | | 23,534 | | | | 2,511,078 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—0.1% | | | | | | | | |
| Chewy, Inc., Cl. A* | | | 6,000 | | | | 259,440 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—5.7% | | | | | | | | |
| 10X Genomics, Inc., Cl. A* | | | 11,000 | | | | 878,570 | |
| Adaptive Biotechnologies Corp.* | | | 20,171 | | | | 645,674 | |
| Bio-Rad Laboratories, Inc., Cl. A* | | | 3,500 | | | | 1,540,350 | |
| Illumina, Inc.* | | | 3,000 | | | | 957,090 | |
| Lonza Group AG | | | 4,500 | | | | 1,964,486 | |
THE ALGER FUNDS ALGER HEALTH SCIENCES FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| COMMON STOCKS—95.4% (CONT.) | | SHARES | | | VALUE | |
| LIFE SCIENCES TOOLS & SERVICES—5.7% (CONT.) | | | | | | | | |
| Repligen Corp.* | | | 15,000 | | | $ | 1,742,250 | |
| Thermo Fisher Scientific, Inc. | | | 20,000 | | | | 6,693,600 | |
| | | | | | | | 14,422,020 | |
| MANAGED HEALTHCARE—7.5% | | | | | | | | |
| Humana, Inc. | | | 14,500 | | | | 5,536,390 | |
| Molina Healthcare, Inc.* | | | 11,000 | | | | 1,803,670 | |
| UnitedHealth Group, Inc. | | | 40,000 | | | | 11,698,800 | |
| | | | | | | | 19,038,860 | |
| PHARMACEUTICALS—24.9% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 55,000 | | | | 838,200 | |
| Allergan PLC | | | 20,000 | | | | 3,746,800 | |
| AstraZeneca PLC# | | | 115,000 | | | | 6,012,200 | |
| Axsome Therapeutics, Inc.* | | | 21,000 | | | | 1,995,630 | |
| Bristol-Myers Squibb Co. | | | 133,000 | | | | 8,087,730 | |
| Cassava Sciences, Inc.* | | | 10,000 | | | | 76,350 | |
| Clearside Biomedical, Inc.* | | | 40,000 | | | | 79,200 | |
| Eli Lilly & Co. | | | 60,000 | | | | 9,278,400 | |
| Emmaus Life Sciences, Inc.* | | | 304,546 | | | | 380,683 | |
| Fulcrum Therapeutics, Inc.* | | | 16,281 | | | | 205,466 | |
| GW Pharmaceuticals PLC#,* | | | 34,000 | | | | 3,404,760 | |
| Horizon Therapeutics PLC* | | | 10,000 | | | | 360,400 | |
| Johnson & Johnson | | | 10,000 | | | | 1,500,400 | |
| Kala Pharmaceuticals, Inc.* | | | 10,000 | | | | 99,600 | |
| Merck & Co., Inc. | | | 70,000 | | | | 5,553,800 | |
| Novartis AG#,(b) | | | 61,000 | | | | 5,168,530 | |
| Novo Nordisk AS# | | | 33,000 | | | | 2,089,890 | |
| Ocular Therapeutix, Inc.* | | | 70,000 | | | | 403,200 | |
| Pfizer, Inc. | | | 100,000 | | | | 3,836,000 | |
| Provention Bio, Inc.* | | | 7,000 | | | | 80,080 | |
| Reata Pharmaceuticals, Inc., Cl. A* | | | 8,500 | | | | 1,344,360 | |
| Roche Holding AG# | | | 90,000 | | | | 3,912,300 | |
| Sanofi# | | | 20,000 | | | | 936,600 | |
| Zoetis, Inc., Cl. A | | | 27,000 | | | | 3,491,370 | |
| Zogenix, Inc.* | | | 15,000 | | | | 423,450 | |
| | | | | | | | 63,305,399 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $192,560,440) | | | | | | | 242,460,367 | |
| PREFERRED STOCKS—0.3% | | | SHARES | | | | VALUE | |
| BIOTECHNOLOGY—0.3% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(c) | | | 897,366 | | | | 708,919 | |
| (Cost $4,038,147) | | | | | | | 708,919 | |
| RIGHTS—2.6% | | | SHARES | | | | VALUE | |
| BIOTECHNOLOGY—2.4% | | | | | | | | |
| Tolero CDR*,@,(a),(d) | | | 1,956,996 | | | | 6,066,688 | |
THE ALGER FUNDS ALGER HEALTH SCIENCES FUND
Schedule of Investments April 30, 2020 (Unaudited) (Continued)
| RIGHTS—2.6% (CONT.) | | SHARES | | | VALUE | |
| PHARMACEUTICALS—0.2% | | | | | | | | |
| Bristol-Myers Squibb Co.* | | | 117,143 | | | $ | 528,315 | |
| TOTAL RIGHTS | | | | | | | | |
| (Cost $1,342,265) | | | | | | | 6,595,003 | |
| REAL ESTATE INVESTMENT TRUST—0.6% | | | SHARES | | | | VALUE | |
| OFFICE—0.6% | | | | | | | | |
| Alexandria Real Estate Equities, Inc. | | | 10,000 | | | | 1,570,900 | |
| (Cost $1,463,124) | | | | | | | 1,570,900 | |
| Total Investments | | | | | | | | |
| (Cost $199,403,976) | | | 98.9 | % | | $ | 251,335,189 | |
| Affiliated Securities (Cost $4,038,147) | | | | | | | 708,919 | |
| Unaffiliated Securities (Cost $195,365,829) | | | | | | | 250,626,270 | |
| Other Assets in Excess of Liabilities | | | 1.1 | % | | | 2,789,912 | |
| NET ASSETS | | | 100.0 | % | | $ | 254,125,101 | |
| | # | American Depositary Receipts. |
| | (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| | (b) | All or a portion of this security is segregated as collateral for repayment of the payable for interfund loans in accordance with the terms and conditions of the application and order of exemption that was granted by the Securities and Exchange Commission dated August 11, 2009. |
| | (c) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| | (d) | Contingent Deferred Rights. |
| | * | Non-income producing security. |
| | @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | Cost | | | Date) | | | Value | | | 4/30/2020 | |
| Forte Biosciences, Inc. | | 2/19/20 | | $ | 1,080,981 | | | | 0.50 | % | | $ | 1,080,981 | | | | 0.42 | % |
| Prosetta Biosciences, Inc., Series D | | 2/6/15 | | | 4,038,147 | | | | 2.00 | % | | | 708,919 | | | | 0.28 | % |
| Tolero CDR | | 2/6/17 | | | 1,044,373 | | | | 0.90 | % | | | 6,066,688 | | | | 2.39 | % |
| Total | | | | | | | | | | | | $ | 7,856,588 | | | | 3.09 | % |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited)
| | | Alger Capital | | | | |
| | | Appreciation Fund | | | Alger 25 Fund | |
| ASSETS: | | | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 2,834,152,643 | | | $ | 17,471,253 | |
| Cash and cash equivalents | | | 21,533,455 | | | | 761,152 | |
| Receivable for investment securities sold | | | 29,606,284 | | | | 35,033 | |
| Receivable for shares of beneficial interest sold | | | 4,021,297 | | | | — | |
| Dividends and interest receivable | | | 728,152 | | | | — | |
| Receivable from Investment Manager | | | — | | | | 11,283 | |
| Prepaid expenses | | | 243,548 | | | | 23,764 | |
| Total Assets | | | 2,890,285,379 | | | | 18,302,485 | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 26,476,341 | | | | 389,849 | |
| Payable for shares of beneficial interest redeemed | | | 4,151,562 | | | | — | |
| Accrued investment advisory fees | | | 1,673,370 | | | | 41,868 | |
| Accrued transfer agent fees | | | 651,477 | | | | 165 | |
| Accrued distribution fees | | | 385,843 | | | | — | |
| Accrued printing fees | | | 129,405 | | | | 484 | |
| Accrued fund accounting fees | | | 68,143 | | | | 1,332 | |
| Accrued administrative fees | | | 59,699 | | | | 370 | |
| Accrued professional fees | | | 33,251 | | | | 18,011 | |
| Accrued shareholder administrative fees | | | 28,503 | | | | 159 | |
| Accrued custodian fees | | | 27,188 | | | | 9,648 | |
| Accrued trustee fees | | | 7,811 | | | | 37 | |
| Accrued tax payable | | | 1,944 | | | | 1,438 | |
| Accrued other expenses | | | 1,600 | | | | 1,270 | |
| Total Liabilities | | | 33,696,137 | | | | 464,631 | |
| NET ASSETS | | $ | 2,856,589,242 | | | $ | 17,837,854 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 1,733,767,343 | | | | 14,428,055 | |
| Distributable earnings | | | 1,122,821,899 | | | | 3,409,799 | |
| NET ASSETS | | $ | 2,856,589,242 | | | $ | 17,837,854 | |
| * Identified cost | | $ | 1,838,990,067 | (a) | | $ | 14,313,133 | (b) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Capital | | | | |
| | | Appreciation Fund | | | Alger 25 Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 1,151,250,770 | | | $ | — | |
| Class B | | $ | 7,654,548 | | | $ | — | |
| Class C | | $ | 209,353,793 | | | $ | — | |
| Class P | | $ | — | | | $ | 17,297,041 | |
| Class P-2 | | $ | — | | | $ | 540,813 | |
| Class Z | | $ | 1,488,330,131 | | | $ | — | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 41,991,057 | | | | — | |
| Class B | | | 381,455 | | | | — | |
| Class C | | | 10,358,949 | | | | — | |
| Class P | | | — | | | | 1,294,346 | |
| Class P-2 | | | — | | | | 40,345 | |
| Class Z | | | 52,220,877 | | | | — | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 27.42 | | | $ | — | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 28.94 | | | $ | — | |
| Class B — Net Asset Value Per Share Class B | | $ | 20.07 | | | $ | — | |
| Class C — Net Asset Value Per Share Class C | | $ | 20.21 | | | $ | — | |
| Class P — Net Asset Value Per Share Class P | | $ | — | | | $ | 13.36 | |
| Class P-2 — Net Asset Value Per Share Class P-2 | | $ | — | | | $ | 13.40 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 28.50 | | | $ | — | |
See Notes to Financial Statements.
| | (a) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,863,919,556, amounted to $970,233,087which consisted of aggregate gross unrealized appreciation of $1,023,670,610 and aggregate gross unrealized depreciation of $53,437,523. |
| | (b) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $14,399,917, amounted to $3,071,336 which consisted of aggregate gross unrealized appreciation of $3,209,739 and aggregate gross unrealized depreciation of $138,403. |
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | | | | Alger Growth & | |
| | | Alger 35 Fund | | | Income Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 10,014,153 | | | $ | 100,622,386 | |
| Cash and cash equivalents | | | 661,347 | | | | 722,020 | |
| Receivable for investment securities sold | | | 410,422 | | | | 598,780 | |
| Receivable for shares of beneficial interest sold | | | — | | | | 21,854 | |
| Dividends and interest receivable | | | 1,398 | | | | 134,627 | |
| Receivable from Investment Manager | | | 10,442 | | | | 1,849 | |
| Prepaid expenses | | | 25,395 | | | | 59,713 | |
| Total Assets | | | 11,123,157 | | | | 102,161,229 | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 214,531 | | | | 353,609 | |
| Payable for shares of beneficial interest redeemed | | | — | | | | 19,873 | |
| Accrued investment advisory fees | | | 26,764 | | | | 39,456 | |
| Accrued professional fees | | | 17,782 | | | | 19,481 | |
| Accrued custodian fees | | | 9,395 | | | | 9,762 | |
| Accrued tax payable | | | 1,361 | | | | 2,216 | |
| Accrued fund accounting fees | | | 856 | | | | 3,188 | |
| Accrued printing fees | | | 254 | | | | 12,199 | |
| Accrued administrative fees | | | 225 | | | | 2,170 | |
| Accrued transfer agent fees | | | 116 | | | | 31,294 | |
| Accrued shareholder administrative fees | | | 89 | | | | 1,204 | |
| Accrued trustee fees | | | 25 | | | | 336 | |
| Accrued distribution fees | | | — | | | | 23,857 | |
| Accrued other expenses | | | 586 | | | | 5,844 | |
| Total Liabilities | | | 271,984 | | | | 524,489 | |
| NET ASSETS | | $ | 10,851,173 | | | $ | 101,636,740 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 8,305,113 | | | | 53,261,489 | |
| Distributable earnings | | | 2,546,060 | | | | 48,375,251 | |
| NET ASSETS | | $ | 10,851,173 | | | $ | 101,636,740 | |
| * Identified cost | | $ | 7,958,919 | (a) | | $ | 54,614,537 | (b) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | | | | Alger Growth & | |
| | | Alger 35 Fund | | | Income Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | — | | | $ | 68,867,696 | |
| Class C | | $ | — | | | $ | 13,595,178 | |
| Class P | | $ | 10,706,870 | | | $ | — | |
| Class P-2 | | $ | 144,303 | | | $ | — | |
| Class Z | | $ | — | | | $ | 19,173,866 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | — | | | | 1,728,285 | |
| Class C | | | — | | | | 346,332 | |
| Class P | | | 811,646 | | | | — | |
| Class P-2 | | | 10,914 | | | | — | |
| Class Z | | | — | | | | 480,613 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | — | | | $ | 39.85 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | — | | | $ | 42.06 | |
| Class C — Net Asset Value Per Share Class C | | $ | — | | | $ | 39.25 | |
| Class P — Net Asset Value Per Share Class P | | $ | 13.19 | | | $ | — | |
| Class P-2 — Net Asset Value Per Share Class P-2 | | $ | 13.22 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | — | | | $ | 39.89 | |
See Notes to Financial Statements.
| (a) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $7,953,612, amounted to $2,060,541 which consisted of aggregate gross unrealized appreciation of $2,091,070 and aggregate gross unrealized depreciation of $30,529. |
| (b) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $54,130,955, amounted to $46,491,431 which consisted of aggregate gross unrealized appreciation of $49,645,157 and aggregate gross unrealized depreciation of $3,153,726. |
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Mid Cap | | | Alger Mid Cap Focus | |
| | | Growth Fund | | | Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 170,462,099 | | | $ | 50,049,056 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | 173,492 | | | | — | |
| Cash and cash equivalents | | | 1,959,678 | | | | 8,069,202 | |
| Receivable for investment securities sold | | | 11,036,618 | | | | — | |
| Receivable for shares of beneficial interest sold | | | 27,920 | | | | 31,439,144 | |
| Dividends and interest receivable | | | 14,243 | | | | 7,835 | |
| Receivable from Investment Manager | | | 7,951 | | | | 889 | |
| Prepaid expenses | | | 85,986 | | | | 19,587 | |
| Total Assets | | | 183,767,987 | | | | 89,585,713 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 10,693,089 | | | | 3,128,913 | |
| Payable for shares of beneficial interest redeemed | | | 50,831 | | | | 31,246 | |
| Accrued investment advisory fees | | | 99,433 | | | | 25,956 | |
| Accrued transfer agent fees | | | 49,915 | | | | 1,246 | |
| Accrued professional fees | | | 43,582 | | | | 17,624 | |
| Accrued distribution fees | | | 39,812 | | | | 782 | |
| Accrued printing fees | | | 29,553 | | | | 777 | |
| Accrued custodian fees | | | 25,836 | | | | 7,446 | |
| Accrued fund accounting fees | | | 5,563 | | | | 1,871 | |
| Accrued administrative fees | | | 3,598 | | | | 1,020 | |
| Accrued tax payable | | | 2,835 | | | | 1,060 | |
| Accrued shareholder administrative fees | | | 2,076 | | | | 371 | |
| Accrued trustee fees | | | 507 | | | | 106 | |
| Accrued other expenses | | | 2,661 | | | | 757 | |
| Total Liabilities | | | 11,049,291 | | | | 3,219,175 | |
| NET ASSETS | | $ | 172,718,696 | | | $ | 86,366,538 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 149,869,511 | | | | 81,256,212 | |
| Distributable earnings | | | 22,849,185 | | | | 5,110,326 | |
| NET ASSETS | | $ | 172,718,696 | | | $ | 86,366,538 | |
| * Identified cost | | $ | 143,941,591 | (a) | | $ | 42,035,224 | (b) |
| ** Identified cost | | $ | 988,245 | (a) | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Mid Cap Growth | | | Alger Mid Cap Focus | |
| | | Fund | | | Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 137,637,480 | | | $ | — | |
| Class B | | $ | 12,899,759 | | | $ | — | |
| Class C | | $ | 5,217,124 | | | $ | — | |
| Class I | | $ | — | | | $ | 35,490,932 | |
| Class Z | | $ | 16,964,333 | | | $ | 50,875,606 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 9,773,629 | | | | — | |
| Class B | | | 1,202,657 | | | | — | |
| Class C | | | 499,120 | | | | — | |
| Class I | | | — | | | | 3,194,497 | |
| Class Z | | | 1,185,236 | | | | 4,571,800 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 14.08 | | | $ | — | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 14.86 | | | $ | — | |
| Class B — Net Asset Value Per Share Class B | | $ | 10.73 | | | $ | — | |
| Class C — Net Asset Value Per Share Class C | | $ | 10.45 | | | $ | — | |
| Class I — Net Asset Value Per Share Class I | | $ | — | | | $ | 11.11 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 14.31 | | | $ | 11.13 | |
| | | | | | | | | |
See Notes to Financial Statements.
| (a) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $146,350,268, amounted to $24,285,323 which consisted of aggregate gross unrealized appreciation of $29,956,528 and aggregate gross unrealized depreciation of $5,671,205. |
| (b) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $42,240,561, amounted to $7,808,495 which consisted of aggregate gross unrealized appreciation of $9,049,756 and aggregate gross unrealized depreciation of $1,241,261. |
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Weatherbie | | | | |
| | | Specialized Growth | | | Alger Small Cap | |
| | | Fund | | | Growth Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 600,664,863 | | | $ | 161,415,046 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | 182,864 | | | | 40,044 | |
| Cash and cash equivalents | | | 26,106,800 | | | | 13,328,979 | |
| Receivable for investment securities sold | | | 5,869,758 | | | | — | |
| Receivable for shares of beneficial interest sold | | | 1,858,193 | | | | 1,724,228 | |
| Dividends and interest receivable | | | 3,049 | | | | — | |
| Receivable from Investment Manager | | | 1,592 | | | | 4,830 | |
| Prepaid expenses | | | 107,430 | | | | 85,722 | |
| Other receivable | | | — | | | | 4,253 | |
| Total Assets | | | 634,794,549 | | | | 176,603,102 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 4,380,886 | | | | — | |
| Payable for shares of beneficial interest redeemed | | | 621,304 | | | | 71,236 | |
| Accrued investment advisory fees | | | 362,971 | | | | 100,714 | |
| Accrued transfer agent fees | | | 109,778 | | | | 38,228 | |
| Accrued distribution fees | | | 71,109 | | | | 31,506 | |
| Accrued printing fees | | | 41,224 | | | | 29,162 | |
| Accrued professional fees | | | 27,356 | | | | 41,956 | |
| Accrued fund accounting fees | | | 15,283 | | | | 5,218 | |
| Accrued custodian fees | | | 14,311 | | | | 21,252 | |
| Accrued administrative fees | | | 12,323 | | | | 3,419 | |
| Accrued shareholder administrative fees | | | 5,334 | | | | 1,894 | |
| Accrued tax payable | | | 4,412 | | | | 2,021 | |
| Accrued trustee fees | | | 1,597 | | | | 424 | |
| Accrued other expenses | | | 2,354 | | | | 2,055 | |
| Total Liabilities | | | 5,670,242 | | | | 349,085 | |
| NET ASSETS | | $ | 629,124,307 | | | $ | 176,254,017 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 557,634,343 | | | | 106,683,786 | |
| Distributable earnings | | | 71,489,964 | | | | 69,570,231 | |
| NET ASSETS | | $ | 629,124,307 | | | $ | 176,254,017 | |
| * Identified cost | | $ | 511,099,689 | (a) | | $ | 90,270,673 | (b) |
| ** Identified cost | | $ | 1,041,633 | (a) | | $ | 228,096 | (b) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Weatherbie | | | | |
| | | Specialized Growth | | | Alger Small Cap | |
| | | Fund | | | Growth Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 132,285,661 | | | $ | 125,697,539 | |
| Class B | | $ | — | | | $ | 4,667,254 | |
| Class C | | $ | 48,676,454 | | | $ | 7,496,988 | |
| Class I | | $ | 69,932,086 | | | $ | — | |
| Class Y | | $ | 23,826,261 | | | $ | — | |
| Class Z | | $ | 354,403,845 | | | $ | 38,392,236 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 9,687,372 | | | | 12,865,175 | |
| Class B | | | — | | | | 677,596 | |
| Class C | | | 5,383,185 | | | | 1,140,543 | |
| Class I | | | 4,984,858 | | | | — | |
| Class Y | | | 1,679,174 | | | | — | |
| Class Z | | | 24,292,425 | | | | 3,782,719 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 13.66 | | | $ | 9.77 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 14.41 | | | $ | 10.31 | |
| Class B — Net Asset Value Per Share Class B | | $ | — | | | $ | 6.89 | |
| Class C — Net Asset Value Per Share Class C | | $ | 9.04 | | | $ | 6.57 | |
| Class I — Net Asset Value Per Share Class I | | $ | 14.03 | | | $ | — | |
| Class Y — Net Asset Value Per Share Class Y | | $ | 14.19 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 14.59 | | | $ | 10.15 | |
See Notes to Financial Statements.
| | (a) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $522,747,962, amounted to $78,099,765 which consisted of aggregate gross unrealized appreciation of $129,798,472 and aggregate gross unrealized depreciation of $51,698,707. |
| | (b) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $93,477,514, amounted to $67,977,576 which consisted of aggregate gross unrealized appreciation of $77,825,753 and aggregate gross unrealized depreciation of $9,848,177. |
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Small Cap | | | Alger International | |
| | | Focus Fund | | | Focus Fund | |
| ASSETS: | | | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 3,822,865,828 | | | $ | 116,855,913 | |
| Cash and cash equivalents | | | 420,202,586 | | | | 4,070,002 | |
| Foreign cash † | | | — | | | | 16,122 | |
| Receivable for investment securities sold | | | 8,186,053 | | | | 1,590,701 | |
| Receivable for shares of beneficial interest sold | | | 17,397,138 | | | | 5,679 | |
| Dividends and interest receivable | | | — | | | | 333,384 | |
| Receivable from Investment Manager | | | 2,553 | | | | 11,712 | |
| Prepaid expenses | | | 334,751 | | | | 76,188 | |
| Other receivable | | | — | | | | 258,084 | |
| Total Assets | | | 4,268,988,909 | | | | 123,217,785 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 88,507,299 | | | | 3,268,091 | |
| Payable for shares of beneficial interest redeemed | | | 7,492,094 | | | | 89,006 | |
| Accrued investment advisory fees | | | 2,272,415 | | | | 65,611 | |
| Accrued transfer agent fees | | | 655,039 | | | | 35,826 | |
| Accrued distribution fees | | | 327,008 | | | | 32,647 | |
| Accrued printing fees | | | 242,780 | | | | 27,894 | |
| Accrued fund accounting fees | | | 93,447 | | | | 4,581 | |
| Accrued administrative fees | | | 83,322 | | | | 2,541 | |
| Accrued shareholder administrative fees | | | 33,554 | | | | 1,487 | |
| Accrued custodian fees | | | 26,107 | | | | 26,171 | |
| Accrued professional fees | | | 19,675 | | | | 37,344 | |
| Accrued trustee fees | | | 10,989 | | | | 371 | |
| Accrued tax payable | | | 5,292 | | | | 7,979 | |
| Accrued other expenses | | | 2,695 | | | | 3,480 | |
| Total Liabilities | | | 99,771,716 | | | | 3,603,029 | |
| NET ASSETS | | $ | 4,169,217,193 | | | $ | 119,614,756 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 3,589,338,295 | | | | 130,732,470 | |
| Distributable earnings (Distributions in excess of earnings) | | | 579,878,898 | | | | (11,117,714 | ) |
| NET ASSETS | | $ | 4,169,217,193 | | | $ | 119,614,756 | |
| * Identified cost | | $ | 3,103,976,796 | (a) | | $ | 101,974,403 | (b) |
| † Cost of foreign cash | | $ | — | | | $ | 15,958 | (b) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Small Cap Focus | | | Alger International | |
| | | Fund | | | Focus Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 462,464,234 | | | $ | 93,419,311 | |
| Class B | | $ | — | | | $ | 15,711,037 | |
| Class C | | $ | 209,795,327 | | | $ | 3,014,619 | |
| Class I | | $ | 464,419,317 | | | $ | 745,606 | |
| Class Y | | $ | 186,392,276 | | | $ | — | |
| Class Z | | $ | 2,846,146,039 | | | $ | 6,724,183 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 21,957,501 | | | | 6,549,633 | |
| Class B | | | — | | | | 1,271,447 | |
| Class C | | | 11,122,221 | | | | 250,682 | |
| Class I | | | 21,471,534 | | | | 52,186 | |
| Class Y | | | 8,481,293 | | | | — | |
| Class Z | | | 129,516,665 | | | | 466,656 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 21.06 | | | $ | 14.26 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 22.23 | | | $ | 15.05 | |
| Class B — Net Asset Value Per Share Class B | | $ | — | | | $ | 12.36 | |
| Class C — Net Asset Value Per Share Class C | | $ | 18.86 | | | $ | 12.03 | |
| Class I — Net Asset Value Per Share Class I | | $ | 21.63 | | | $ | 14.29 | |
| Class Y — Net Asset Value Per Share Class Y | | $ | 21.98 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 21.98 | | | $ | 14.41 | |
See Notes to Financial Statements.
| | (a) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $3,129,313,572, amounted to $693,552,256 which consisted of aggregate gross unrealized appreciation of $958,709,130 and aggregate gross unrealized depreciation of $265,156,874. |
| | (b) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $105,208,051, amounted to $11,647,862 which consisted of aggregate gross unrealized appreciation of $18,735,197 and aggregate gross unrealized depreciation of $7,087,335. |
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Health | |
| | | Sciences Fund | |
| ASSETS: | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedule of investments | | $ | 250,626,270 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedule of investments | | | 708,919 | |
| Cash and cash equivalents | | | 4,983,752 | |
| Receivable for investment securities sold | | | 1,076,790 | |
| Receivable for shares of beneficial interest sold | | | 1,086,393 | |
| Dividends and interest receivable | | | 298,898 | |
| Prepaid expenses | | | 61,579 | |
| Total Assets | | | 258,842,601 | |
| | | | | |
| LIABILITIES: | | | | |
| Payable for investment securities purchased | | | 4,356,337 | |
| Payable for shares of beneficial interest redeemed | | | 90,531 | |
| Accrued investment advisory fees | | | 103,985 | |
| Accrued transfer agent fees | | | 56,991 | |
| Accrued distribution fees | | | 29,510 | |
| Accrued professional fees | | | 25,141 | |
| Accrued printing fees | | | 18,911 | |
| Accrued custodian fees | | | 12,608 | |
| Accrued fund accounting fees | | | 6,202 | |
| Accrued administrative fees | | | 5,199 | |
| Accrued tax payable | | | 4,412 | |
| Accrued shareholder administrative fees | | | 2,500 | |
| Accrued trustee fees | | | 582 | |
| Accrued other expenses | | | 4,591 | |
| Total Liabilities | | | 4,717,500 | |
| NET ASSETS | | $ | 254,125,101 | |
| | | | | |
| NET ASSETS CONSIST OF: | | | | |
| Paid in capital (par value of $.001 per share) | | | 198,709,281 | |
| Distributable earnings | | | 55,415,820 | |
| NET ASSETS | | $ | 254,125,101 | |
| * Identified cost | | $ | 195,365,829 | (a) |
| ** Identified cost | | $ | 4,038,147 | (a) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities April 30, 2020 (Unaudited) (Continued)
| | | Alger Health Sciences | |
| | | Fund | |
| NET ASSETS BY CLASS: | | | | |
| Class A | | $ | 112,116,102 | |
| Class C | | $ | 10,510,122 | |
| Class Z | | $ | 131,498,877 | |
| | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | |
| Class A | | | 4,106,455 | |
| Class C | | | 512,734 | |
| Class Z | | | 4,787,593 | |
| | | | | |
| NET ASSET VALUE PER SHARE: | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 27.30 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 28.82 | |
| Class C — Net Asset Value Per Share Class C | | $ | 20.50 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 27.47 | |
See Notes to Financial Statements.
| | (a) | At April 30, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $201,268,284, amounted to $50,066,905 which consisted of aggregate gross unrealized appreciation of $59,755,277 and aggregate gross unrealized depreciation of $9,688,372. |
THE ALGER FUNDS
Statements of Operations for the six months ended April 30, 2020 (Unaudited)
| | | Alger Capital | | | | |
| | | Appreciation Fund | | | Alger 25 Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 14,139,679 | | | $ | 107,379 | |
| Interest | | | 46,290 | | | | 1,154 | |
| Other Income | | | 17,849 | | | | — | |
| Total Income | | | 14,203,818 | | | | 108,533 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 10,779,841 | | | | 60,545 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 1,454,366 | | | | — | |
| Class B | | | 38,467 | | | | — | |
| Class C | | | 1,077,452 | | �� | | — | |
| Shareholder administrative fees — Note 3(f) | | | 186,519 | | | | 873 | |
| Administration fees — Note 3(b) | | | 388,992 | | | | 2,083 | |
| Custodian fees | | | 77,811 | | | | 24,385 | |
| Interest expenses | | | 11,381 | | | | — | |
| Transfer agent fees — Note 3(f) | | | 705,684 | | | | 695 | |
| Printing fees | | | 74,820 | | | | 992 | |
| Professional fees | | | 74,365 | | | | 16,854 | |
| Registration fees | | | 46,864 | | | | 19,464 | |
| Trustee fees — Note 3(g) | | | 49,710 | | | | 260 | |
| Other expenses | | | 293,858 | | | | 9,786 | |
| Total Expenses | | | 15,260,130 | | | | 135,937 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | — | | | | (67,685 | ) |
| Net Expenses | | | 15,260,130 | | | | 68,252 | |
| NET INVESTMENT INCOME (LOSS) | | | (1,056,312 | ) | | | 40,281 | |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized gain on unaffiliated investments | | | 157,888,227 | | | | 309,542 | |
| Net realized (loss) on foreign currency transactions | | | (70,839 | ) | | | — | |
| Net change in unrealized appreciation on unaffiliated investments | | | 94,879,747 | | | | 1,185,438 | |
| Net change in unrealized appreciation on foreign currency | | | 66 | | | | — | |
| Net realized and unrealized gain on investments and foreign currency | | | 252,697,201 | | | | 1,494,980 | |
| | | | | | | | | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 251,640,889 | | | $ | 1,535,261 | |
| * Foreign withholding taxes | | $ | 190,198 | | | $ | 503 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the six months ended April 30, 2020 (Unaudited) (Continued)
| | | | | | Alger Growth & | |
| | | Alger 35 Fund | | | Income Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 40,352 | | | $ | 1,626,011 | |
| Interest | | | 1,324 | | | | 4,088 | |
| Income from securities lending | | | — | | | | 42 | |
| Total Income | | | 41,676 | | | | 1,630,141 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 39,002 | | | | 281,951 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | — | | | | 91,291 | |
| Class C | | | — | | | | 73,728 | |
| Shareholder administrative fees — Note 3(f) | | | 531 | | | | 8,492 | |
| Administration fees — Note 3(b) | | | 1,341 | | | | 15,507 | |
| Custodian fees | | | 22,930 | | | | 26,073 | |
| Interest expenses | | | — | | | | 417 | |
| Transfer agent fees — Note 3(f) | | | 372 | | | | 35,768 | |
| Printing fees | | | 434 | | | | 6,920 | |
| Professional fees | | | 16,733 | | | | 19,693 | |
| Registration fees | | | 19,177 | | | | 25,119 | |
| Trustee fees — Note 3(g) | | | 168 | | | | 2,127 | |
| Other expenses | | | 8,380 | | | | 17,946 | |
| Total Expenses | | | 109,068 | | | | 605,032 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (65,091 | ) | | | (4,444 | ) |
| Net Expenses | | | 43,977 | | | | 600,588 | |
| NET INVESTMENT INCOME (LOSS) | | | (2,301 | ) | | | 1,029,553 | |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized gain on unaffiliated investments | | | 541,051 | | | | 1,592,678 | |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | | | 755,659 | | | | (8,759,568 | ) |
| Net change in unrealized (depreciation) on foreign currency | | | (9 | ) | | | — | |
| Net realized and unrealized gain (loss) on investments and foreign currency | | | 1,296,701 | | | | (7,166,890 | ) |
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 1,294,400 | | | $ | (6,137,337 | ) |
| * Foreign withholding taxes | | $ | 65 | | | $ | 11,497 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the six months ended April 30, 2020 (Unaudited) (Continued)
| | | Alger Mid Cap | | | Alger Mid Cap | |
| | | Growth Fund | | | Focus Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 791,833 | | | $ | 35,475 | |
| Interest | | | 12,905 | | | | 5,076 | |
| Other Income | | | 22,247 | | | | — | |
| Total Income | | | 826,985 | | | | 40,551 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 661,550 | | | | 125,689 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 173,281 | | | | — | |
| Class B | | | 62,236 | | | | — | |
| Class C | | | 28,400 | | | | — | |
| Class I | | | — | | | | 2,998 | |
| Shareholder administrative fees — Note 3(f) | | | 13,799 | | | | 1,795 | |
| Administration fees — Note 3(b) | | | 23,938 | | | | 4,938 | |
| Custodian fees | | | 69,664 | | | | 23,931 | |
| Interest expenses | | | 331 | | | | 1,428 | |
| Transfer agent fees — Note 3(f) | | | 61,434 | | | | 6,087 | |
| Printing fees | | | 17,899 | | | | 1,790 | |
| Professional fees | | | 38,605 | | | | 19,257 | |
| Registration fees | | | 33,430 | | | | 37,909 | |
| Trustee fees — Note 3(g) | | | 3,079 | | | | 607 | |
| Other expenses | | | 34,424 | | | | 11,431 | |
| Total Expenses | | | 1,222,070 | | | | 237,860 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (48,973 | ) | | | (57,824 | ) |
| Net Expenses | | | 1,173,097 | | | | 180,036 | |
| NET INVESTMENT LOSS | | | (346,112 | ) | | | (139,485 | ) |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized (loss) on unaffiliated investments | | | (404,801 | ) | | | (1,138,545 | ) |
| Net realized (loss) on foreign currency transactions | | | (127 | ) | | | — | |
| Net change in unrealized appreciation on unaffiliated investments | | | 5,865,355 | | | | 7,642,520 | |
| Net change in unrealized (depreciation) on affiliated investments | | | (59,295 | ) | | | — | |
| Net change in unrealized appreciation on foreign currency | | | 4 | | | | — | |
| Net realized and unrealized gain on investments and foreign currency | | | 5,401,136 | | | | 6,503,975 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 5,055,024 | | | $ | 6,364,490 | |
| * Foreign withholding taxes | | $ | 2,471 | | | $ | 608 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the six months ended April 30, 2020 (Unaudited) (Continued)
| | | Alger Weatherbie | | | | |
| | | Specialized | | | Alger Small Cap | |
| | | Growth Fund | | | Growth Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 470,130 | | | $ | 199,620 | |
| Interest | | | 110,614 | | | | 55,499 | |
| Total Income | | | 580,744 | | | | 255,119 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 2,397,784 | | | | 632,816 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 176,736 | | | | 148,474 | |
| Class B | | | — | | | | 20,839 | |
| Class C | | | 239,023 | | | | 31,917 | |
| Class I | | | 84,185 | | | | — | |
| Shareholder administrative fees — Note 3(f) | | | 35,751 | | | | 12,016 | |
| Administration fees — Note 3(b) | | | 81,406 | | | | 21,485 | |
| Custodian fees | | | 39,168 | | | | 55,238 | |
| Transfer agent fees — Note 3(f) | | | 137,391 | | | | 47,826 | |
| Printing fees | | | 23,812 | | | | 17,595 | |
| Professional fees | | | 35,225 | | | | 38,824 | |
| Registration fees | | | 80,543 | | | | 32,794 | |
| Trustee fees — Note 3(g) | | | 10,665 | | | | 2,747 | |
| Other expenses | | | 70,946 | | | | 33,006 | |
| Total Expenses | | | 3,412,635 | | | | 1,095,577 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (6,693 | ) | | | (28,307 | ) |
| Net Expenses | | | 3,405,942 | | | | 1,067,270 | |
| NET INVESTMENT LOSS | | | (2,825,198 | ) | | | (812,151 | ) |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized gain on unaffiliated investments | | | 121,938 | | | | 2,404,828 | |
| Net realized (loss) on foreign currency transactions | | | — | | | | (16 | ) |
| Net change in unrealized appreciation on unaffiliated investments | | | 35,002,047 | | | | 15,046,934 | |
| Net change in unrealized (depreciation) on affiliated investments | | | (62,498 | ) | | | (13,685 | ) |
| Net realized and unrealized gain on investments and foreign currency | | | 35,061,487 | | | | 17,438,061 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 32,236,289 | | | $ | 16,625,910 | |
| * Foreign withholding taxes | | $ | 17,633 | | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the six months ended April 30, 2020 (Unaudited) (Continued)
| | | Alger Small Cap | | | Alger International | |
| | | Focus Fund | | | Focus Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 2,413,333 | | | $ | 577,364 | |
| Interest | | | 582,132 | | | | 10,196 | |
| Other Income | | | — | | | | 19,888 | |
| Total Income | | | 2,995,465 | | | | 607,448 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 14,556,605 | | | | 465,000 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 616,472 | | | | 125,048 | |
| Class B | | | — | | | | 77,244 | |
| Class C | | | 1,059,456 | | | | 16,936 | |
| Class I | | | 574,541 | | | | 1,111 | |
| Shareholder administrative fees — Note 3(f) | | | 217,003 | | | | 10,413 | |
| Administration fees — Note 3(b) | | | 533,742 | | | | 18,011 | |
| Custodian fees | | | 76,108 | | | | 75,004 | |
| Interest expenses | | | — | | | | 1,571 | |
| Transfer agent fees — Note 3(f) | | | 891,183 | | | | 49,624 | |
| Printing fees | | | 151,590 | | | | 15,158 | |
| Professional fees | | | 77,540 | | | | 30,790 | |
| Registration fees | | | 299,943 | | | | 38,794 | |
| Trustee fees — Note 3(g) | | | 68,071 | | | | 2,381 | |
| Other expenses | | | 407,179 | | | | 28,552 | |
| Total Expenses | | | 19,529,433 | | | | 955,637 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (7,468 | ) | | | (76,013 | ) |
| Net Expenses | | | 19,521,965 | | | | 879,624 | |
| NET INVESTMENT LOSS | | | (16,526,500 | ) | | | (272,176 | ) |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized (loss) on unaffiliated investments | | | (97,124,005 | ) | | | (4,164,015 | ) |
| Net realized (loss) on foreign currency transactions | | | — | | | | (28,242 | ) |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | | | 415,478,837 | | | | (911,663 | ) |
| Net change in unrealized (depreciation) on foreign currency | | | — | | | | (6,633 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency | | | 318,354,832 | | | | (5,110,553 | ) |
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 301,828,332 | | | $ | (5,382,729 | ) |
| * Foreign withholding taxes | | $ | — | | | $ | 100,511 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the six months ended April 30, 2020 (Unaudited) (Continued)
| | | Alger Health | |
| | | Sciences Fund | |
| INCOME: | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 1,056,880 | |
| Interest | | | 5,058 | |
| Total Income | | | 1,061,938 | |
| | | | | |
| EXPENSES: | | | | |
| Investment advisory fees — Note 3(a) | | | 572,718 | |
| Distribution fees — Note 3(c) | | | | |
| Class A | | | 136,439 | |
| Class C | | | 54,365 | |
| Shareholder administrative fees — Note 3(f) | | | 14,314 | |
| Administration fees — Note 3(b) | | | 28,636 | |
| Custodian fees | | | 37,435 | |
| Interest expenses | | | 886 | |
| Transfer agent fees — Note 3(f) | | | 56,473 | |
| Printing fees | | | 9,254 | |
| Professional fees | | | 19,432 | |
| Registration fees | | | 30,292 | |
| Trustee fees — Note 3(g) | | | 3,542 | |
| Other expenses | | | 34,352 | |
| Total Expenses | | | 998,138 | |
| NET INVESTMENT INCOME | | | 63,800 | |
| | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
| Net realized gain on unaffiliated investments | | | 5,286,077 | |
| Net realized (loss) on foreign currency transactions | | | (919 | ) |
| Net change in unrealized appreciation on unaffiliated investments | | | 20,009,188 | |
| Net change in unrealized (depreciation) on affiliated investments | | | (242,289 | ) |
| Net change in unrealized (depreciation) on foreign currency | | | (26 | ) |
| Net realized and unrealized gain on investments and foreign currency | | | 25,052,031 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 25,115,831 | |
| * Foreign withholding taxes | | $ | 52,068 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited)
| | Alger Capital Appreciation Fund |
| | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | |
| | | April 30, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (1,056,312 | ) | | $ | (4,796,653 | ) |
| Net realized gain on investments and foreign currency | | | 157,817,388 | | | | 217,577,308 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 94,879,813 | | | | 181,857,597 | |
| Net increase in net assets resulting from operations | | | 251,640,889 | | | | 394,638,252 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (92,851,822 | ) | | | (118,060,867 | ) |
| Class B | | | (812,864 | ) | | | (1,233,773 | ) |
| Class C | | | (22,831,979 | ) | | | (29,263,718 | ) |
| Class Z | | | (109,764,275 | ) | | | (117,391,542 | ) |
| Total dividends and distributions to shareholders | | | (226,260,940 | ) | | | (265,949,900 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (32,400,142 | ) | | | (136,481,080 | ) |
| Class B | | | (1,116,369 | ) | | | (1,725,137 | ) |
| Class C | | | (5,782,547 | ) | | | (26,423,752 | ) |
| Class Z | | | 58,370,873 | | | | 95,557,167 | |
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | | | 19,071,815 | | | | (69,072,802 | ) |
| Total increase | | | 44,451,764 | | | | 59,615,550 | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 2,812,137,478 | | | | 2,752,521,928 | |
| END OF PERIOD | | $ | 2,856,589,242 | | | $ | 2,812,137,478 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | | Alger 25 Fund | |
| | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | |
| | | April 30, 2020 | | | October 31, 2019 | |
| Net investment income | | $ | 40,281 | | | $ | 51,768 | |
| Net realized gain on investments | | | 309,542 | | | | 201,448 | |
| Net change in unrealized appreciation on investments | | | 1,185,438 | | | | 1,552,559 | |
| Net increase in net assets resulting from operations | | | 1,535,261 | | | | 1,805,775 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class P | | | (170,106 | ) | | | (39,246 | ) |
| Class P-2 | | | (2,586 | ) | | | — | |
| Total dividends and distributions to shareholders | | | (172,692 | ) | | | (39,246 | ) |
| | | | | | | | | |
| Increase from shares of beneficial interest transactions: | | | | | | | | |
| Class P | | | 2,564,319 | | | | 475,653 | |
| Class P-2 | | | 307,048 | | | | 101,083 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 2,871,367 | | | | 576,736 | |
| Total increase | | | 4,233,936 | | | | 2,343,265 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 13,603,918 | | | | 11,260,653 | |
| END OF PERIOD | | $ | 17,837,854 | | | $ | 13,603,918 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | | Alger 35 Fund | |
| | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | |
| | | April 30, 2020 | | | October 31, 2019 | |
| Net investment income (loss) | | $ | (2,301 | ) | | $ | 25,639 | |
| Net realized gain (loss) on investments and foreign currency | | | 541,051 | | | | (19,488 | ) |
| Net change in unrealized appreciation on investments and foreign currency | | | 755,650 | | | | 1,068,121 | |
| Net increase in net assets resulting from operations | | | 1,294,400 | | | | 1,074,272 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class P | | | (16,599 | ) | | | (87,537 | ) |
| Class P-2 | | | (166 | ) | | | (680 | ) |
| Total dividends and distributions to shareholders | | | (16,765 | ) | | | (88,217 | ) |
| | | | | | | | | |
| Increase from shares of beneficial interest transactions: | | | | | | | | |
| Class P | | | 350,508 | | | | 337,537 | |
| Class P-2 | | | 16,338 | | | | 730 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 366,846 | | | | 338,267 | |
| Total increase | | | 1,644,481 | | | | 1,324,322 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 9,206,692 | | | | 7,882,370 | |
| END OF PERIOD | | $ | 10,851,173 | | | $ | 9,206,692 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | Alger Growth & Income Fund |
| | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | |
| | | April 30, 2020 | | | October 31, 2019 | |
| Net investment income | | $ | 1,029,553 | | | $ | 1,908,291 | |
| Net realized gain on investments | | | 1,592,678 | | | | 4,117,426 | |
| Net change in unrealized appreciation (depreciation) on investments | | | (8,759,568 | ) | | | 8,762,349 | |
| Net increase (decrease) in net assets resulting from operations | | | (6,137,337 | ) | | | 14,788,066 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (3,298,768 | ) | | | (4,267,931 | ) |
| Class C | | | (627,238 | ) | | | (860,393 | ) |
| Class Z | | | (1,223,407 | ) | | | (1,532,408 | ) |
| Total dividends and distributions to shareholders | | | (5,149,413 | ) | | | (6,660,732 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | 498,893 | | | | (1,035,270 | ) |
| Class C | | | 47,141 | | | | (2,191,446 | ) |
| Class Z | | | (4,471,787 | ) | | | 411,883 | |
| Net decrease from shares of beneficial interest transactions — Note 6 | | | (3,925,753 | ) | | | (2,814,833 | ) |
| Total increase (decrease) | | | (15,212,503 | ) | | | 5,312,501 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 116,849,243 | | | | 111,536,742 | |
| END OF PERIOD | | $ | 101,636,740 | | | $ | 116,849,243 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | Alger Mid Cap Growth Fund |
| | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | |
| | | April 30, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (346,112 | ) | | $ | (1,226,647 | ) |
| Net realized gain (loss) on investments and foreign currency | | | (404,928 | ) | | | 13,726,499 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 5,806,064 | | | | 6,223,169 | |
| Net increase in net assets resulting from operations | | | 5,055,024 | | | | 18,723,021 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (11,109,875 | ) | | | (6,913,344 | ) |
| Class B | | | (1,356,457 | ) | | | (922,266 | ) |
| Class C | | | (613,248 | ) | | | (462,452 | ) |
| Class Z | | | (1,392,461 | ) | | | (720,658 | ) |
| Total dividends and distributions to shareholders | | | (14,472,041 | ) | | | (9,018,720 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | 5,597,969 | | | | (7,132,064 | ) |
| Class B | | | 36,301 | | | | (2,176,257 | ) |
| Class C | | | (273,729 | ) | | | (1,838,948 | ) |
| Class Z | | | 321,243 | | | | 2,288,901 | |
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | | | 5,681,784 | | | | (8,858,368 | ) |
| Total increase (decrease) | | | (3,735,233 | ) | | | 845,933 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 176,453,929 | | | | 175,607,996 | |
| END OF PERIOD | | $ | 172,718,696 | | | $ | 176,453,929 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | | | Alger Mid Cap Focus Fund |
| | | | For the
Six Months Ended
April 30, 2020 | | | | From June 14, 2019
(commencement of
operations) to
October 31, 2019 | |
| Net investment loss | | $ | (139,485 | ) | | $ | (80,734 | ) |
| Net realized loss on investments | | | (1,138,545 | ) | | | (1,625,476 | ) |
| Net change in unrealized appreciation on investments | | | 7,642,520 | | | | 371,312 | |
| Net increase (decrease) in net assets resulting from operations | | | 6,364,490 | | | | (1,334,898 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class I | | | 32,979,396 | | | | 2,479,227 | |
| Class Z | | | 16,769,458 | | | | 29,108,865 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 49,748,854 | | | | 31,588,092 | |
| Total increase | | | 56,113,344 | | | | 30,253,194 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 30,253,194 | | | | — | |
| END OF PERIOD | | $ | 86,366,538 | | | $ | 30,253,194 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | | | Alger Weatherbie Specialized Growth Fund |
| | | | For the
Six Months Ended
April 30, 2020 | | | | For the
Year Ended
October 31, 2019 | |
| Net investment loss | | $ | (2,825,198 | ) | | $ | (4,429,177 | ) |
| Net realized gain on investments and foreign currency | | | 121,938 | | | | 15,654,402 | |
| Net change in unrealized appreciation on investments | | | 34,939,549 | | | | 19,596,739 | |
| Net increase in net assets resulting from operations | | | 32,236,289 | | | | 30,821,964 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (5,872,548 | ) | | | (8,577,662 | ) |
| Class C | | | (2,781,983 | ) | | | (3,989,889 | ) |
| Class I | | | (2,486,337 | ) | | | (2,940,481 | ) |
| Class Y | | | (527,262 | ) | | | (413,909 | ) |
| Class Z | | | (11,293,720 | ) | | | (10,810,370 | ) |
| Total dividends and distributions to shareholders | | | (22,961,850 | ) | | | (26,732,311 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (10,101,888 | ) | | | 27,097,922 | |
| Class C | | | 4,066,805 | | | | 9,110,599 | |
| Class I | | | 11,870,522 | | | | 20,352,474 | |
| Class Y | | | 9,791,448 | | | | 9,162,635 | |
| Class Z | | | 63,035,923 | | | | 136,427,172 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 78,662,810 | | | | 202,150,802 | |
| Total increase | | | 87,937,249 | | | | 206,240,455 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 541,187,058 | | | | 334,946,603 | |
| END OF PERIOD | | $ | 629,124,307 | | | $ | 541,187,058 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | | | Alger Small Cap Growth Fund |
| | | | For the
Six Months Ended
April 30, 2020 | | | | For the
Year Ended
October 31, 2019 | |
| Net investment loss | | $ | (812,151 | ) | | $ | (1,650,376 | ) |
| Net realized gain on investments and foreign currency | | | 2,404,812 | | | | 9,022,056 | |
| Net change in unrealized appreciation on investments | | | 15,033,249 | | | | 4,509,507 | |
| Net increase in net assets resulting from operations | | | 16,625,910 | | | | 11,881,187 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (6,939,023 | ) | | | (10,924,773 | ) |
| Class B | | | (349,658 | ) | | | (619,622 | ) |
| Class C | | | (491,758 | ) | | | (738,714 | ) |
| Class Z | | | (1,376,642 | ) | | | (1,257,803 | ) |
| Total dividends and distributions to shareholders | | | (9,157,081 | ) | | | (13,540,912 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | 3,853,308 | | | | 5,644,081 | |
| Class B | | | 64,982 | | | | (247,946 | ) |
| Class C | | | 1,106,095 | | | | 753,743 | |
| Class Z | | | 14,890,845 | | | | 9,134,248 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 19,915,230 | | | | 15,284,126 | |
| Total increase | | | 27,384,059 | | | | 13,624,401 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 148,869,958 | | | | 135,245,557 | |
| END OF PERIOD | | $ | 176,254,017 | | | $ | 148,869,958 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | Alger Small Cap Focus Fund |
| | | | For the
Six Months Ended
April 30, 2020 | | | | For the
Year Ended
October 31, 2019 | |
| Net investment loss | | $ | (16,526,500 | ) | | $ | (24,849,375 | ) |
| Net realized gain (loss) on investments and foreign currency | | | (97,124,005 | ) | | | 109,865,767 | |
| Net change in unrealized appreciation on investments | | | 415,478,837 | | | | 59,208,815 | |
| Net increase in net assets resulting from operations | | | 301,828,332 | | | | 144,225,207 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (12,366,187 | ) | | | (2,493,271 | ) |
| Class C | | | (4,565,291 | ) | | | (1,216,518 | ) |
| Class I | | | (11,171,919 | ) | | | (2,785,387 | ) |
| Class Y | | | (3,303,098 | ) | | | (204,286 | ) |
| Class Z | | | (66,937,210 | ) | | | (10,527,912 | ) |
| Total dividends and distributions to shareholders | | | (98,343,705 | ) | | | (17,227,374 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (81,555,581 | ) | | | 205,073,139 | |
| Class C | | | (13,098,193 | ) | | | 74,722,490 | |
| Class I | | | (13,741,294 | ) | | | 97,987,756 | |
| Class Y | | | 85,668,218 | | | | 70,358,202 | |
| Class Z | | | 242,006,267 | | | | 1,043,553,749 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 219,279,417 | | | | 1,491,695,336 | |
| Total increase | | | 422,764,044 | | | | 1,618,693,169 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 3,746,453,149 | | | | 2,127,759,980 | |
| END OF PERIOD | | $ | 4,169,217,193 | | | $ | 3,746,453,149 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | | Alger International Focus Fund |
| | | | For the | | | | For the | |
| | | | Six Months Ended | | | | Year Ended | |
| | | | April 30, 2020 | | | | October 31, 2019 | |
| Net investment loss | | $ | (272,176 | ) | | $ | (154,751 | ) |
| Net realized loss on investments, forward foreign currency contracts and foreign currency | | | (4,192,257 | ) | | | (11,595,078 | ) |
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | | | (918,296 | ) | | | 26,857,357 | |
| Net increase (decrease) in net assets resulting from operations | | | (5,382,729 | ) | | | 15,107,528 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (4,436,636 | ) | | | (2,881,102 | ) |
| Class B | | | (771,794 | ) | | | (467,635 | ) |
| Class C | | | (151,921 | ) | | | (92,353 | ) |
| Class I | | | (44,402 | ) | | | (57,640 | ) |
| Class Z | | | (626,032 | ) | | | (450,854 | ) |
| Total dividends and distributions to shareholders | | | (6,030,785 | ) | | | (3,949,584 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | 721,895 | | | | (5,449,789 | ) |
| Class B | | | (289,037 | ) | | | (1,512,935 | ) |
| Class C | | | (291,267 | ) | | | (1,412,171 | ) |
| Class I | | | (146,324 | ) | | | (1,276,123 | ) |
| Class Z | | | (5,461,024 | ) | | | (2,221,033 | ) |
| Net decrease from shares of beneficial interest transactions — Note 6 | | | (5,465,757 | ) | | | (11,872,051 | ) |
| Total decrease | | | (16,879,271 | ) | | | (714,107 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 136,494,027 | | | | 137,208,134 | |
| END OF PERIOD | | $ | 119,614,756 | | | $ | 136,494,027 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Unaudited) (Continued)
| | | | Alger Health Sciences Fund |
| | | | For the | | | | For the | |
| | | | Six Months Ended | | | | Year Ended | |
| | | | April 30, 2020 | | | | October 31, 2019 | |
| Net investment income (loss) | | $ | 63,800 | | | $ | (556,327 | ) |
| Net realized gain on investments and foreign currency | | | 5,285,158 | | | | 14,507,755 | |
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | | | 19,766,873 | | | | (12,063,682 | ) |
| Net increase in net assets resulting from operations | | | 25,115,831 | | | | 1,887,746 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (7,652,345 | ) | | | (8,894,519 | ) |
| Class C | | | (996,378 | ) | | | (1,259,487 | ) |
| Class Z | | | (5,601,401 | ) | | | (3,853,831 | ) |
| Total dividends and distributions to shareholders | | | (14,250,124 | ) | | | (14,007,837 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | 1,126,264 | | | | (16,012,044 | ) |
| Class C | | | (381,325 | ) | | | (3,330,267 | ) |
| Class Z | | | 46,433,476 | | | | 22,850,359 | |
| Net increase from shares of beneficial interest transactions —Note 6 | | | 47,178,415 | | | | 3,508,048 | |
| Total increase (decrease) | | | 58,044,122 | | | | (8,612,043 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 196,080,979 | | | | 204,693,022 | |
| END OF PERIOD | | $ | 254,125,101 | | | $ | 196,080,979 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
| | | Six months | | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Capital Appreciation Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 27.12 | | | $ | 26.20 | | | $ | 25.86 | | | $ | 20.09 | | | $ | 21.83 | | | $ | 23.13 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.03 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.02 | ) | | | – | | | | (0.04 | ) |
| Net realized and unrealized gain (loss) on investments | | | 2.53 | | | | 3.53 | | | | 2.07 | | | | 5.96 | | | | (0.07 | ) | | | 1.97 | |
| Total from investment operations | | | 2.50 | | | | 3.46 | | | | 2.01 | | | | 5.94 | | | | (0.07 | ) | | | 1.93 | |
| Distributions from net realized gains | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) | | | (1.67 | ) | | | (3.23 | ) |
| Net asset value, end of period | | $ | 27.42 | | | $ | 27.12 | | | $ | 26.20 | | | $ | 25.86 | | | $ | 20.09 | | | $ | 21.83 | |
| Total return(iii) | | | 9.48 | % | | | 15.29 | % | | | 8.15 | % | | | 29.84 | % | | | (0.42 | )% | | | 9.15 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 1,151,251 | | | $ | 1,174,346 | | | $ | 1,257,811 | | | $ | 1,506,389 | | | $ | 1,360,963 | | | $ | 1,592,859 | |
| Ratio of gross expenses to average net assets | | | 1.20 | % | | | 1.21 | % | | | 1.21 | % | | | 1.23 | % | | | 1.22 | % | | | 1.23 | % |
| Ratio of net expenses to average net assets | | | 1.20 | % | | | 1.21 | % | | | 1.21 | % | | | 1.23 | % | | | 1.22 | % | | | 1.23 | % |
| Ratio of net investment loss to average net assets | | | (0.19 | )% | | | (0.27 | )% | | | (0.23 | )% | | | (0.10 | )% | | | (0.02 | )% | | | (0.18 | )% |
| Portfolio turnover rate | | | 43.87 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % | | | 103.80 | % | | | 141.43 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | Class B | |
| | | Six months | | | | | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Capital Appreciation Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 20.48 | | | $ | 20.58 | | | $ | 20.81 | | | $ | 16.32 | | | $ | 18.17 | | | $ | 19.91 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.10 | ) | | | (0.20 | ) | | | (0.21 | ) | | | (0.15 | ) | | | (0.14 | ) | | | (0.17 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.89 | | | | 2.64 | | | | 1.65 | | | | 4.81 | | | | (0.04 | ) | | | 1.66 | |
| Total from investment operations | | | 1.79 | | | | 2.44 | | | | 1.44 | | | | 4.66 | | | | (0.18 | ) | | | 1.49 | |
| Distributions from net realized gains | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) | | | (1.67 | ) | | | (3.23 | ) |
| Net asset value, end of period | | $ | 20.07 | | | $ | 20.48 | | | $ | 20.58 | | | $ | 20.81 | | | $ | 16.32 | | | $ | 18.17 | |
| Total return(iii) | | | 9.05 | % | | | 14.41 | % | | | 7.38 | % | | | 28.82 | % | | | (1.18 | )% | | | 8.30 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 7,655 | | | $ | 8,906 | | | $ | 10,583 | | | $ | 14,820 | | | $ | 16,682 | | | $ | 24,399 | |
| Ratio of gross expenses to average net assets | | | 1.97 | % | | | 1.98 | % | | | 1.99 | % | | | 1.99 | % | | | 2.04 | % | | | 2.01 | % |
| Ratio of net expenses to average net assets | | | 1.97 | % | | | 1.98 | % | | | 1.99 | % | | | 1.99 | % | | | 2.04 | % | | | 2.01 | % |
| Ratio of net investment loss to average net assets | | | (0.97 | )% | | | (1.03 | )% | | | (0.99 | )% | | | (0.85 | )% | | | (0.84 | )% | | | (0.95 | )% |
| Portfolio turnover rate | | | 43.87 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % | | | 103.80 | % | | | 141.43 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | Class C | |
| | | Six months | | | | | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Capital Appreciation Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 20.60 | | | $ | 20.69 | | | $ | 20.91 | | | $ | 16.39 | | | $ | 18.24 | | | $ | 19.97 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.09 | ) | | | (0.20 | ) | | | (0.20 | ) | | | (0.15 | ) | | | (0.13 | ) | | | (0.17 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.90 | | | | 2.65 | | | | 1.65 | | | | 4.84 | | | | (0.05 | ) | | | 1.67 | |
| Total from investment operations | | | 1.81 | | | | 2.45 | | | | 1.45 | | | | 4.69 | | | | (0.18 | ) | | | 1.50 | |
| Distributions from net realized gains | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) | | | (1.67 | ) | | | (3.23 | ) |
| Net asset value, end of period | | $ | 20.21 | | | $ | 20.60 | | | $ | 20.69 | | | $ | 20.91 | | | $ | 16.39 | | | $ | 18.24 | |
| Total return(iii) | | | 9.10 | % | | | 14.44 | % | | | 7.35 | % | | | 28.88 | % | | | (1.17 | )% | | | 8.33 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 209,354 | | | $ | 219,511 | | | $ | 243,523 | | | $ | 297,044 | | | $ | 309,114 | | | $ | 314,402 | |
| Ratio of gross expenses to average net assets | | | 1.92 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % | | | 1.98 | % | | | 1.99 | % |
| Ratio of net expenses to average net assets | | | 1.92 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % | | | 1.98 | % | | | 1.99 | % |
| Ratio of net investment loss to average net assets | | | (0.91 | )% | | | (1.01 | )% | | | (0.96 | )% | | | (0.83 | )% | | | (0.78 | )% | | | (0.94 | )% |
| Portfolio turnover rate | | | 43.87 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % | | | 103.80 | % | | | 141.43 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | Class Z | |
| | | Six months | | | | | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Capital Appreciation Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 28.06 | | | $ | 26.94 | | | $ | 26.46 | | | $ | 20.48 | | | $ | 22.15 | | | $ | 23.35 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income(ii) | | | 0.02 | | | | 0.02 | | | | 0.03 | | | | 0.05 | | | | 0.06 | | | | 0.03 | |
| Net realized and unrealized gain (loss) on investments | | | 2.62 | | | | 3.64 | | | | 2.12 | | | | 6.10 | | | | (0.06 | ) | | | 2.00 | |
| Total from investment operations | | | 2.64 | | | | 3.66 | | | | 2.15 | | | | 6.15 | | | | – | | | | 2.03 | |
| Distributions from net realized gains | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) | | | (1.67 | ) | | | (3.23 | ) |
| Net asset value, end of period | | $ | 28.50 | | | $ | 28.06 | | | $ | 26.94 | | | $ | 26.46 | | | $ | 20.48 | | | $ | 22.15 | |
| Total return(iii) | | | 9.67 | % | | | 15.69 | % | | | 8.51 | % | | | 30.25 | % | | | (0.08 | )% | | | 9.54 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 1,488,330 | | | $ | 1,409,374 | | | $ | 1,240,605 | | | $ | 983,006 | | | $ | 735,889 | | | $ | 620,355 | |
| Ratio of gross expenses to average net assets | | | 0.85 | % | | | 0.87 | % | | | 0.87 | % | | | 0.88 | % | | | 0.89 | % | | | 0.90 | % |
| Ratio of net expenses to average net assets | | | 0.85 | % | | | 0.87 | % | | | 0.87 | % | | | 0.88 | % | | | 0.89 | % | | | 0.90 | % |
| Ratio of net investment income to average net assets | | | 0.15 | % | | | 0.06 | % | | | 0.10 | % | | | 0.23 | % | | | 0.30 | % | | | 0.12 | % |
| Portfolio turnover rate | | | 43.87 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % | | | 103.80 | % | | | 141.43 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class P | |
| | | | | | | | | From 12/28/2017 | |
| | | Six months | | | | | | (commencement | |
| | | ended | | | Year ended | | | of operations) to | |
| Alger 25 Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018(ii) | |
| Net asset value, beginning of period | | $ | 12.26 | | | $ | 10.61 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income(iii) | | | 0.03 | | | | 0.05 | | | | – | (iv) |
| Net realized and unrealized gain on investments | | | 1.22 | | | | 1.64 | | | | 0.61 | |
| Total from investment operations | | | 1.25 | | | | 1.69 | | | | 0.61 | |
| Dividends from net investment income | | | (0.02 | ) | | | (0.04 | ) | | | – | |
| Distributions from net realized gains | | | (0.13 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 13.36 | | | $ | 12.26 | | | $ | 10.61 | |
| Total return(v) | | | 10.30 | % | | | 15.98 | % | | | 6.10 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 17,297 | | | $ | 13,379 | | | $ | 11,161 | |
| Ratio of gross expenses to average net assets | | | 1.80 | % | | | 1.87 | % | | | 2.35 | % |
| Ratio of expense reimbursements to average net assets | | | (0.90 | )% | | | (1.32 | )% | | | (1.60 | )% |
| Ratio of net expenses to average net assets | | | 0.90 | % | | | 0.55 | % | | | 0.75 | % |
| Ratio of net investment income to average net assets | | | 0.54 | % | | | 0.42 | % | | | 0.01 | % |
| Portfolio turnover rate | | | 41.36 | % | | | 102.98 | % | | | 64.02 | % |
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 eleven months then ended. |
| | (iii) | Amount was computed based on average shares outstanding during the period. |
| | (iv) | Amount was less than $0.005 per share. |
| | (v) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class P-2 | |
| | | | | | | | | From 10/31/2018 | |
| | | Six months | | | | | | (commencement | |
| | | ended | | | Year ended | | | of operations) to | |
| Alger 25 Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018(ii),(iii) | |
| Net asset value, beginning of period | | $ | 12.29 | | | $ | 10.61 | | | $ | 10.61 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income(iv) | | | 0.02 | | | | 0.03 | | | | – | |
| Net realized and unrealized gain on investments | | | 1.23 | | | | 1.65 | | | | – | |
| Total from investment operations | | | 1.25 | | | | 1.68 | | | | – | |
| Dividends from net investment income | | | (0.01 | ) | | | – | | | | – | |
| Distributions from net realized gains | | | (0.13 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 13.40 | | | $ | 12.29 | | | $ | 10.61 | |
| Total return(v) | | | 10.31 | % | | | 15.83 | % | | | – | |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 541 | | | $ | 224 | | | $ | 100 | |
| Ratio of gross expenses to average net assets | | | 1.90 | % | | | 3.18 | % | | | – | |
| Ratio of expense reimbursements to average net assets | | | (0.91 | )% | | | (2.55 | )% | | | – | |
| Ratio of net expenses to average net assets | | | 0.99 | % | | | 0.63 | % | | | – | |
| Ratio of net investment income to average net assets | | | 0.24 | % | | | 0.27 | % | | | – | |
| Portfolio turnover rate | | | 41.36 | % | | | 102.98 | % | | | 64.02 | % |
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 eleven months then ended. |
| | (iii) | Class P-2 inception date was October 31, 2018, no income or expenses were recorded. |
| | (iv) | Amount was computed based on average shares outstanding during the period. |
| | (v) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class P | |
| | | | | | | | | From 3/29/2018 | |
| | | Six months | | | | | | (commencement | |
| | | ended | | | Year ended | | | of operations) to | |
| Alger 35 Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018(ii) | |
| Net asset value, beginning of period | | $ | 11.61 | | | $ | 10.38 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income(iii) | | | – | (iv) | | | 0.03 | | | | 0.01 | |
| Net realized and unrealized gain on investments | | | 1.60 | | | | 1.31 | | | | 0.37 | |
| Total from investment operations | | | 1.60 | | | | 1.34 | | | | 0.38 | |
| Dividends from net investment income | | | (0.02 | ) | | | (0.04 | ) | | | – | |
| Distributions from net realized gains | | | – | | | | (0.07 | ) | | | – | |
| Net asset value, end of period | | $ | 13.19 | | | $ | 11.61 | | | $ | 10.38 | |
| Total return(v) | | | 13.81 | % | | | 13.19 | % | | | 3.80 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 10,707 | | | $ | 9,094 | | | $ | 7,782 | |
| Ratio of gross expenses to average net assets | | | 2.24 | % | | | 2.37 | % | | | 2.46 | % |
| Ratio of expense reimbursements to average net assets | | | (1.34 | )% | | | (1.97 | )% | | | (2.06 | )% |
| Ratio of net expenses to average net assets | | | 0.90 | % | | | 0.40 | % | | | 0.40 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.05 | )% | | | 0.30 | % | | | 0.23 | % |
| Portfolio turnover rate | | | 75.29 | % | | | 115.25 | % | | | 31.20 | % |
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 seven months then ended. |
| | (iii) | Amount was computed based on average shares outstanding during the period. |
| | (iv) | Amount was less than $0.005 per share. |
| | (v) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class P-2 | |
| | | | | | | | | From 10/31/2018 | |
| | | Six months | | | | | | (commencement | |
| | | ended | | | Year ended | | | of operations) to | |
| Alger 35 Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018(ii),(ii) | |
| Net asset value, beginning of period | | $ | 11.65 | | | $ | 10.38 | | | $ | 10.38 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss)(iv) | | | (0.01 | ) | | | 0.01 | | | | – | |
| Net realized and unrealized gain on investments | | | 1.60 | | | | 1.33 | | | | – | |
| Total from investment operations | | | 1.59 | | | | 1.34 | | | | – | |
| Dividends from net investment income | | | (0.02 | ) | | | – | | | | – | |
| Distributions from net realized gains | | | – | | | | (0.07 | ) | | | – | |
| Net asset value, end of period | | $ | 13.22 | | | $ | 11.65 | | | $ | 10.38 | |
| Total return(v) | | | 13.64 | % | | | 13.06 | % | | | – | |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 144 | | | $ | 113 | | | $ | 100 | |
| Ratio of gross expenses to average net assets | | | 2.35 | % | | | 4.43 | % | | | – | |
| Ratio of expense reimbursements to average net assets | | | (1.29 | )% | | | (3.81 | )% | | | – | |
| Ratio of net expenses to average net assets | | | 1.06 | % | | | 0.62 | % | | | – | |
| Ratio of net investment income (loss)to average net assets | | | (0.22 | )% | | | 0.09 | % | | | – | |
| Portfolio turnover rate | | | 75.29 | % | | | 115.25 | % | | | 31.20 | % |
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 seven months then ended. |
| | (iii) | Class P-2 inception date was October 31, 2018, no income or expenses were recorded. |
| | (iv) | Amount was computed based on average shares outstanding during the period. |
| | (v) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Growth & Income Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 43.55 | | | $ | 40.77 | | | $ | 39.68 | | | $ | 32.66 | | | $ | 33.37 | | | $ | 33.56 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income(ii) | | | 0.39 | | | | 0.70 | | | | 0.65 | | | | 0.56 | | | | 0.59 | | | | 0.59 | |
| Net realized and unrealized gain (loss) on investments | | | (2.16 | ) | | | 4.54 | | | | 1.64 | | | | 6.97 | | | | 0.24 | | | | 0.81 | |
| Total from investment operations | | | (1.77 | ) | | | 5.24 | | | | 2.29 | | | | 7.53 | | | | 0.83 | | | | 1.40 | |
| Dividends from net investment income | | | (0.35 | ) | | | (0.61 | ) | | | (0.57 | ) | | | (0.50 | ) | | | (0.50 | ) | | | (0.51 | ) |
| Distributions from net realized gains | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) | | | (1.04 | ) | | | (1.08 | ) |
| Net asset value, end of period | | $ | 39.85 | | | $ | 43.55 | | | $ | 40.77 | | | $ | 39.68 | | | $ | 32.66 | | | $ | 33.37 | |
| Total return(iii) | | | (4.41 | )% | | | 13.94 | % | | | 5.78 | % | | | 23.22 | % | | | 2.62 | % | | | 4.26 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 68,868 | | | $ | 74,924 | | | $ | 70,859 | | | $ | 72,427 | | | $ | 64,123 | | | $ | 70,933 | |
| Ratio of gross expenses to average net assets | | | 1.05 | % | | | 1.07 | % | | | 1.06 | % | | | 1.19 | % | | | 1.14 | % | | | 1.15 | % |
| Ratio of net expenses to average net assets | | | 1.05 | % | | | 1.07 | % | | | 1.06 | % | | | 1.19 | % | | | 1.14 | % | | | 1.15 | % |
| Ratio of net investment income to average net assets | | | 1.84 | % | | | 1.72 | % | | | 1.59 | % | | | 1.52 | % | | | 1.85 | % | | | 1.76 | % |
| Portfolio turnover rate | | | 5.73 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % | | | 5.36 | % | | | 15.83 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class C | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Growth & Income Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 42.93 | | | $ | 40.20 | | | $ | 39.14 | | | $ | 32.23 | | | $ | 32.95 | | | $ | 33.18 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income(ii) | | | 0.22 | | | | 0.39 | | | | 0.34 | | | | 0.28 | | | | 0.35 | | | | 0.33 | |
| Net realized and unrealized gain (loss) on investments | | | (2.13 | ) | | | 4.49 | | | | 1.60 | | | | 6.88 | | | | 0.24 | | | | 0.80 | |
| Total from investment operations | | | (1.91 | ) | | | 4.88 | | | | 1.94 | | | | 7.16 | | | | 0.59 | | | | 1.13 | |
| Dividends from net investment income | | | (0.19 | ) | | | (0.30 | ) | | | (0.25 | ) | | | (0.24 | ) | | | (0.27 | ) | | | (0.28 | ) |
| Distributions from net realized gains | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) | | | (1.04 | ) | | | (1.08 | ) |
| Net asset value, end of period | | $ | 39.25 | | | $ | 42.93 | | | $ | 40.20 | | | $ | 39.14 | | | $ | 32.23 | | | $ | 32.95 | |
| Total return(iii) | | | (4.80 | )% | | | 13.12 | % | | | 4.96 | % | | | 22.28 | % | | | 1.87 | % | | | 3.47 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 13,595 | | | $ | 14,946 | | | $ | 16,074 | | | $ | 22,266 | | | $ | 20,790 | | | $ | 21,156 | |
| Ratio of gross expenses to average net assets | | | 1.80 | % | | | 1.82 | % | | | 1.82 | % | | | 1.94 | % | | | 1.88 | % | | | 1.90 | % |
| Ratio of net expenses to average net assets | | | 1.80 | % | | | 1.82 | % | | | 1.82 | % | | | 1.94 | % | | | 1.88 | % | | | 1.90 | % |
| Ratio of net investment income to average net assets | | | 1.08 | % | | | 0.97 | % | | | 0.84 | % | | | 0.76 | % | | | 1.09 | % | | | 0.99 | % |
| Portfolio turnover rate | | | 5.73 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % | | | 5.36 | % | | | 15.83 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Growth & Income Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 43.60 | | | $ | 40.81 | | | $ | 39.71 | | | $ | 32.69 | | | $ | 33.39 | | | $ | 33.57 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income(ii) | | | 0.47 | | | | 0.85 | | | | 0.80 | | | | 0.65 | | | | 0.67 | | | | 0.66 | |
| Net realized and unrealized gain (loss) on investments | | | (2.17 | ) | | | 4.56 | | | | 1.64 | | | | 6.99 | | | | 0.26 | | | | 0.82 | |
| Total from investment operations | | | (1.70 | ) | | | 5.41 | | | | 2.44 | | | | 7.64 | | | | 0.93 | | | | 1.48 | |
| Dividends from net investment income | | | (0.43 | ) | | | (0.77 | ) | | | (0.71 | ) | | | (0.61 | ) | | | (0.59 | ) | | | (0.58 | ) |
| Distributions from net realized gains | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) | | | (1.04 | ) | | | (1.08 | ) |
| Net asset value, end of period | | $ | 39.89 | | | $ | 43.60 | | | $ | 40.81 | | | $ | 39.71 | | | $ | 32.69 | | | $ | 33.39 | |
| Total return(iii) | | | (4.26 | )% | | | 14.39 | % | | | 6.16 | % | | | 23.55 | % | | | 2.91 | % | | | 4.53 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 19,174 | | | $ | 26,979 | | | $ | 24,604 | | | $ | 22,487 | | | $ | 11,422 | | | $ | 8,752 | |
| Ratio of gross expenses to average net assets | | | 0.72 | % | | | 0.76 | % | | | 0.76 | % | | | 0.90 | % | | | 0.87 | % | | | 0.91 | % |
| Ratio of expense reimbursements to average net assets | | | (0.04 | )% | | | (0.07 | )% | | | (0.05 | )% | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 0.68 | % | | | 0.69 | % | | | 0.71 | % | | | 0.90 | % | | | 0.87 | % | | | 0.91 | % |
| Ratio of net investment income to average net assets | | | 2.21 | % | | | 2.10 | % | | | 1.96 | % | | | 1.75 | % | | | 2.09 | % | | | 1.99 | % |
| Portfolio turnover rate | | | 5.73 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % | | | 5.36 | % | | | 15.83 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Mid Cap Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 14.81 | | | $ | 14.13 | | | $ | 13.47 | | | $ | 10.20 | | | $ | 10.66 | | | $ | 10.54 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.03 | ) | | | (0.09 | ) | | | (0.11 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.07 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.50 | | | | 1.48 | | | | 0.88 | | | | 3.34 | | | | (0.43 | ) | | | 0.19 | |
| Total from investment operations | | | 0.47 | | | | 1.39 | | | | 0.77 | | | | 3.27 | | | | (0.46 | ) | | | 0.12 | |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | | | | – | |
| Net asset value, end of period | | $ | 14.08 | | | $ | 14.81 | | | $ | 14.13 | | | $ | 13.47 | | | $ | 10.20 | | | $ | 10.66 | |
| Total return(iii) | | | 3.12 | % | | | 10.95 | % | | | 5.78 | % | | | 32.06 | % | | | (4.32 | )% | | | 1.23 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 137,637 | | | $ | 139,110 | | | $ | 138,370 | | | $ | 136,795 | | | $ | 111,423 | | | $ | 131,592 | |
| Ratio of gross expenses to average net assets | | | 1.36 | % | | | 1.30 | % | | | 1.30 | % | | | 1.32 | % | | | 1.33 | % | | | 1.32 | % |
| Ratio of net expenses to average net assets | | | 1.36 | % | | | 1.30 | % | | | 1.30 | % | | | 1.32 | % | | | 1.33 | % | | | 1.32 | % |
| Ratio of net investment loss to average net assets | | | (0.41 | )% | | | (0.65 | )% | | | (0.77 | )% | | | (0.55 | )% | | | (0.32 | )% | | | (0.67 | )% |
| Portfolio turnover rate | | | 96.82 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % | | | 122.05 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class B | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Mid Cap Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 11.55 | | | $ | 11.22 | | | $ | 10.80 | | | $ | 8.23 | | | $ | 8.67 | | | $ | 8.63 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.02 | ) | | | (0.10 | ) | | | (0.17 | ) | | | (0.12 | ) | | | (0.09 | ) | | | (0.12 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.40 | | | | 1.14 | | | | 0.70 | | | | 2.69 | | | | (0.35 | ) | | | 0.16 | |
| Total from investment operations | | | 0.38 | | | | 1.04 | | | | 0.53 | | | | 2.57 | | | | (0.44 | ) | | | 0.04 | |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | | | | – | |
| Net asset value, end of period | | $ | 10.73 | | | $ | 11.55 | | | $ | 11.22 | | | $ | 10.80 | | | $ | 8.23 | | | $ | 8.67 | |
| Total return(iii) | | | 3.12 | % | | | 10.66 | % | | | 4.98 | % | | | 31.23 | % | | | (5.07 | )% | | | 0.46 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 12,900 | | | $ | 13,772 | | | $ | 15,361 | | | $ | 18,375 | | | $ | 19,005 | | | $ | 26,151 | |
| Ratio of gross expenses to average net assets | | | 2.08 | % | | | 2.04 | % | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % | | | 2.02 | % |
| Ratio of expense reimbursements to average net assets | | | (0.79 | )% | | | (0.47 | )% | | | – | | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.29 | % | | | 1.57 | % | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % | | | 2.02 | % |
| Ratio of net investment loss to average net assets | | | (0.35 | )% | | | (0.92 | )% | | | (1.50 | )% | | | (1.28 | )% | | | (1.05 | )% | | | (1.36 | )% |
| Portfolio turnover rate | | | 96.82 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % | | | 122.05 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class C | |
| Alger Mid Cap Growth Fund | | Six months
ended
4/30/2020(i) | | | Year ended
10/31/2019 | | | Year ended
10/31/2018 | | | Year ended
10/31/2017 | | | Year ended
10/31/2016 | | | Year ended
10/31/2015 | |
| Net asset value, beginning of period | | $ | 11.33 | | | $ | 11.08 | | | $ | 10.67 | | | $ | 8.15 | | | $ | 8.58 | | | $ | 8.56 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.07 | ) | | | (0.16 | ) | | | (0.18 | ) | | | (0.13 | ) | | | (0.09 | ) | | | (0.13 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.39 | | | | 1.12 | | | | 0.70 | | | | 2.65 | | | | (0.34 | ) | | | 0.15 | |
| Total from investment operations | | | 0.32 | | | | 0.96 | | | | 0.52 | | | | 2.52 | | | | (0.43 | ) | | | 0.02 | |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | | | | – | |
| Net asset value, end of period | | $ | 10.45 | | | $ | 11.33 | | | $ | 11.08 | | | $ | 10.67 | | | $ | 8.15 | | | $ | 8.58 | |
| Total return(iii) | | | 2.71 | % | | | 10.03 | % | | | 4.94 | % | | | 30.92 | % | | | (5.01 | )% | | | 0.35 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 5,217 | | | $ | 6,014 | | | $ | 7,647 | | | $ | 15,438 | | | $ | 18,495 | | | $ | 23,628 | |
| Ratio of gross expenses to average net assets | | | 2.19 | % | | | 2.14 | % | | | 2.11 | % | | | 2.13 | % | | | 2.16 | % | | | 2.12 | % |
| Ratio of net expenses to average net assets | | | 2.19 | % | | | 2.14 | % | | | 2.11 | % | | | 2.13 | % | | | 2.16 | % | | | 2.12 | % |
| Ratio of net investment loss to average net assets | | | (1.24 | )% | | | (1.48 | )% | | | (1.55 | )% | | | (1.35 | )% | | | (1.16 | )% | | | (1.47 | )% |
| Portfolio turnover rate | | | 96.82 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % | | | 122.05 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| Alger Mid Cap Growth Fund | | Six months
ended
4/30/2020(i) | | | Year ended
10/31/2019 | | | Year ended
10/31/2018 | | | Year ended
10/31/2017 | | | Year ended
10/31/2016 | | | From 5/28/2015
(commencement
of operations) to
10/31/2015(ii) | |
| Net asset value, beginning of period | | $ | 15.01 | | | $ | 14.27 | | | $ | 13.56 | | | $ | 10.24 | | | $ | 10.67 | | | $ | 11.70 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(iii) | | | (0.01 | ) | | | (0.06 | ) | | | (0.07 | ) | | | (0.04 | ) | | | 0.04 | | | | (0.02 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.51 | | | | 1.51 | | | | 0.89 | | | | 3.36 | | | | (0.47 | ) | | | (1.01 | ) |
| Total from investment operations | | | 0.50 | | | | 1.45 | | | | 0.82 | | | | 3.32 | | | | (0.43 | ) | | | (1.03 | ) |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | | | | – | |
| Net asset value, end of period | | $ | 14.31 | | | $ | 15.01 | | | $ | 14.27 | | | $ | 13.56 | | | $ | 10.24 | | | $ | 10.67 | |
| Total return(iv) | | | 3.28 | % | | | 11.27 | % | | | 6.03 | % | | | 32.52 | % | | | (4.03 | )% | | | (8.80 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 16,964 | | | $ | 17,558 | | | $ | 14,230 | | | $ | 13,306 | | | $ | 7,508 | | | $ | 2,413 | |
| Ratio of gross expenses to average net assets | | | 1.03 | % | | | 1.03 | % | | | 1.03 | % | | | 1.07 | % | | | 1.23 | % | | | 1.76 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.02 | )% | | | (0.21 | )% | | | (0.77 | )% |
| Ratio of net expenses to average net assets | | | 1.03 | % | | | 1.03 | % | | | 1.03 | % | | | 1.05 | % | | | 1.02 | % | | | 0.99 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.08 | )% | | | (0.38 | )% | | | (0.49 | )% | | | (0.29 | )% | | | 0.40 | % | | | (0.49 | )% |
| Portfolio turnover rate | | | 96.82 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % | | | 122.05 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class I | |
| Alger Mid Cap Focus Fund | | Six months
ended
4/30/2020(i) | | | From 6/14/2019
(commencement
of operations) to
10/31/2019(ii) | |
| Net asset value, beginning of period | | $ | 9.70 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | |
| Net investment loss(iii) | | | (0.05 | ) | | | (0.04 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.46 | | | | (0.26 | ) |
| Total from investment operations | | | 1.41 | | | | (0.30 | ) |
| Net asset value, end of period | | $ | 11.11 | | | $ | 9.70 | |
| Total return(iv) | | | 14.30 | % | | | (3.00 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 35,491 | | | $ | 2,023 | |
| Ratio of gross expenses to average net assets | | | 1.82 | % | | | 1.91 | % |
| Ratio of expense reimbursements to average net assets | | | (0.62 | )% | | | (0.71 | )% |
| Ratio of net expenses to average net assets | | | 1.20 | % | | | 1.20 | % |
| Ratio of net investment loss to average net assets | | | (0.98 | )% | | | (0.97 | )% |
| Portfolio turnover rate | | | 60.99 | % | | | 65.50 | % |
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 five 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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| Alger Mid Cap Focus Fund | | Six months
ended
4/30/2020(i) | | | From 6/14/2019
(commencement
of operations) to
10/31/2019(ii) | |
| Net asset value, beginning of period | | $ | 9.71 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | |
| Net investment loss(iii) | | | (0.04 | ) | | | (0.03 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.46 | | | | (0.26 | ) |
| Total from investment operations | | | 1.42 | | | | (0.29 | ) |
| Net asset value, end of period | | $ | 11.13 | | | $ | 9.71 | |
| Total return(iv) | | | 14.39 | % | | | (2.80 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 50,876 | | | $ | 28,230 | |
| Ratio of gross expenses to average net assets | | | 1.28 | % | | | 1.86 | % |
| Ratio of expense reimbursements to average net assets | | | (0.30 | )% | | | (0.87 | )% |
| Ratio of net expenses to average net assets | | | 0.98 | % | | | 0.99 | % |
| Ratio of net investment loss to average net assets | | | (0.77 | )% | | | (0.74 | )% |
| Portfolio turnover rate | | | 60.99 | % | | | 65.50 | % |
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 five 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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
Alger Weatherbie Specialized
Growth Fund | | Six months
ended
4/30/2020(i) | | | Year ended
10/31/2019 | | | Year ended
10/31/2018 | | | Year ended
10/31/2017 | | | Year ended
10/31/2016 | | | Year ended
10/31/2015 | |
| Net asset value, beginning of period | | $ | 13.30 | | | $ | 13.08 | | | $ | 12.87 | | | $ | 10.64 | | | $ | 16.72 | | | $ | 19.32 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.07 | ) | | | (0.14 | ) | | | (0.15 | ) | | | (0.12 | ) | | | (0.08 | ) | | | (0.12 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.99 | | | | 1.39 | | | | 1.90 | | | | 3.58 | | | | (0.04 | ) | | | 0.09 | |
| Total from investment operations | | | 0.92 | | | | 1.25 | | | | 1.75 | | | | 3.46 | | | | (0.12 | ) | | | (0.03 | ) |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) | | | (2.57 | ) |
| Net asset value, end of period | | $ | 13.66 | | | $ | 13.30 | | | $ | 13.08 | | | $ | 12.87 | | | $ | 10.64 | | | $ | 16.72 | |
| Total return(iii) | | | 6.85 | % | | | 11.57 | % | | | 15.02 | % | | | 35.64 | % | | | (0.92 | )% | | | (0.31 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 132,286 | | | $ | 140,368 | | | $ | 111,456 | | | $ | 84,644 | | | $ | 82,618 | | | $ | 159,061 | |
| Ratio of gross expenses to average net assets | | | 1.29 | % | | | 1.31 | % | | | 1.33 | % | | | 1.35 | % | | | 1.35 | % | | | 1.30 | % |
| Ratio of net expenses to average net assets | | | 1.29 | % | | | 1.31 | % | | | 1.33 | % | | | 1.35 | % | | | 1.35 | % | | | 1.30 | % |
| Ratio of net investment loss to average net assets | | | (1.09 | )% | | | (1.08 | )% | | | (1.16 | )% | | | (1.02 | )% | | | (0.69 | )% | | | (0.65 | )% |
| Portfolio turnover rate | | | 32.39 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % | | | 110.40 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class C | |
| | | Six months | | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 9.01 | | | $ | 9.30 | | | $ | 9.65 | | | $ | 8.32 | | | $ | 14.45 | | | $ | 17.16 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.08 | ) | | | (0.17 | ) | | | (0.18 | ) | | | (0.15 | ) | | | (0.13 | ) | | | (0.22 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.67 | | | | 0.91 | | | | 1.37 | | | | 2.71 | | | | (0.04 | ) | | | 0.08 | |
| Total from investment operations | | | 0.59 | | | | 0.74 | | | | 1.19 | | | | 2.56 | | | | (0.17 | ) | | | (0.14 | ) |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) | | | (2.57 | ) |
| Net asset value, end of period | | $ | 9.04 | | | $ | 9.01 | | | $ | 9.30 | | | $ | 9.65 | | | $ | 8.32 | | | $ | 14.45 | |
| Total return(iii) | | | 6.43 | % | | | 10.70 | % | | | 14.11 | % | | | 34.64 | % | | | (1.72 | )% | | | (1.09 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 48,676 | | | $ | 44,908 | | | $ | 36,325 | | | $ | 31,651 | | | $ | 32,183 | | | $ | 54,768 | |
| Ratio of gross expenses to average net assets | | | 2.04 | % | | | 2.05 | % | | | 2.08 | % | | | 2.12 | % | | | 2.15 | % | | | 2.07 | % |
| Ratio of net expenses to average net assets | | | 2.04 | % | | | 2.05 | % | | | 2.08 | % | | | 2.12 | % | | | 2.15 | % | | | 2.07 | % |
| Ratio of net investment loss to average net assets | | | (1.85 | )% | | | (1.82 | )% | | | (1.91 | )% | | | (1.79 | )% | | | (1.49 | )% | | | (1.43 | )% |
| Portfolio turnover rate | | | 32.39 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % | | | 110.40 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class I | |
| | | Six months | | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 13.64 | | | $ | 13.38 | | | $ | 13.14 | | | $ | 10.84 | | | $ | 16.91 | | | $ | 19.54 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.07 | ) | | | (0.14 | ) | | | (0.16 | ) | | | (0.11 | ) | | | (0.07 | ) | | | (0.11 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.02 | | | | 1.43 | | | | 1.94 | | | | 3.64 | | | | (0.04 | ) | | | 0.05 | |
| Total from investment operations | | | 0.95 | | | | 1.29 | | | | 1.78 | | | | 3.53 | | | | (0.11 | ) | | | (0.06 | ) |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) | | | (2.57 | ) |
| Net asset value, end of period | | $ | 14.03 | | | $ | 13.64 | | | $ | 13.38 | | | $ | 13.14 | | | $ | 10.84 | | | $ | 16.91 | |
| Total return(iii) | | | 6.90 | % | | | 11.61 | % | | | 14.94 | % | | | 35.63 | % | | | (0.79 | )% | | | (0.48 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 69,932 | | | $ | 58,615 | | | $ | 35,669 | | | $ | 23,374 | | | $ | 32,606 | | | $ | 70,677 | |
| Ratio of gross expenses to average net assets | | | 1.26 | % | | | 1.26 | % | | | 1.35 | % | | | 1.35 | % | | | 1.25 | % | | | 1.31 | % |
| Ratio of net expenses to average net assets | | | 1.26 | % | | | 1.26 | % | | | 1.35 | % | | | 1.35 | % | | | 1.25 | % | | | 1.31 | % |
| Ratio of net investment loss to average net assets | | | (1.07 | )% | | | (1.03 | )% | | | (1.18 | )% | | | (0.99 | )% | | | (0.58 | )% | | | (0.62 | )% |
| Portfolio turnover rate | | | 32.39 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % | | | 110.40 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Y | |
| | | | | | | | | | | | From 8/31/2017 | |
| | | Six months | | | | | | | | | (commencement | |
| Alger Weatherbie Specialized | | ended | | | Year ended | | | Year ended | | | of operations) to | |
| Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017(ii) | |
| Net asset value, beginning of period | | $ | 13.77 | | | $ | 13.44 | | | $ | 13.14 | | | $ | 12.27 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment loss(iii) | | | (0.05 | ) | | | (0.09 | ) | | | (0.10 | ) | | | (0.02 | ) |
| Net realized and unrealized gain on investments | | | 1.03 | | | | 1.45 | | | | 1.94 | | | | 0.89 | |
| Total from investment operations | | | 0.98 | | | | 1.36 | | | | 1.84 | | | | 0.87 | |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | – | |
| Net asset value, end of period | | $ | 14.19 | | | $ | 13.77 | | | $ | 13.44 | | | $ | 13.14 | |
| Total return(iv) | | | 7.06 | % | | | 12.12 | % | | | 15.45 | % | | | 7.09 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 23,826 | | | $ | 12,903 | | | $ | 3,832 | | | $ | 107 | |
| Ratio of gross expenses to average net assets | | | 0.95 | % | | | 0.97 | % | | | 1.05 | % | | | 9.54 | % |
| Ratio of expense reimbursements to average net assets | | | (0.08 | )% | | | (0.10 | )% | | | (0.18 | )% | | | (8.67 | )% |
| Ratio of net expenses to average net assets | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % |
| Ratio of net investment loss to average net assets | | | (0.68 | )% | | | (0.64 | )% | | | (0.67 | )% | | | (0.78 | )% |
| Portfolio turnover rate | | | 32.39 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| | | Six months | | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 14.15 | | | $ | 13.80 | | | $ | 13.46 | | | $ | 11.04 | | | $ | 17.08 | | | $ | 19.63 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.05 | ) | | | (0.10 | ) | | | (0.12 | ) | | | (0.09 | ) | | | (0.05 | ) | | | (0.06 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.05 | | | | 1.48 | | | | 2.00 | | | | 3.74 | | | | (0.03 | ) | | | 0.08 | |
| Total from investment operations | | | 1.00 | | | | 1.38 | | | | 1.88 | | | | 3.65 | | | | (0.08 | ) | | | 0.02 | |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) | | | (2.57 | ) |
| Net asset value, end of period | | $ | 14.59 | | | $ | 14.15 | | | $ | 13.80 | | | $ | 13.46 | | | $ | 11.04 | | | $ | 17.08 | |
| Total return(iii) | | | 7.01 | % | | | 11.94 | % | | | 15.37 | % | | | 36.11 | % | | | (0.57 | )% | | | (0.02 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 354,404 | | | $ | 284,393 | | | $ | 147,665 | | | $ | 52,736 | | | $ | 29,565 | | | $ | 134,051 | |
| Ratio of gross expenses to average net assets | | | 0.95 | % | | | 0.97 | % | | | 1.00 | % | | | 1.06 | % | | | 1.01 | % | | | 0.99 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | (0.01 | )% | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 0.95 | % | | | 0.97 | % | | | 0.99 | % | | | 1.06 | % | | | 1.01 | % | | | 0.99 | % |
| Ratio of net investment loss to average net assets | | | (0.75 | )% | | | (0.73 | )% | | | (0.82 | )% | | | (0.77 | )% | | | (0.40 | )% | | | (0.33 | )% |
| Portfolio turnover rate | | | 32.39 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % | | | 110.40 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
| | | Six months | | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 9.34 | | | $ | 9.54 | | | $ | 8.40 | | | $ | 6.15 | | | $ | 8.00 | | | $ | 8.96 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.05 | ) | | | (0.11 | ) | | | (0.10 | ) | | | (0.06 | ) | | | (0.05 | ) | | | (0.08 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.02 | | | | 0.85 | | | | 1.34 | | | | 2.31 | | | | (0.21 | ) | | | 0.11 | |
| Total from investment operations | | | 0.97 | | | | 0.74 | | | | 1.24 | | | | 2.25 | | | | (0.26 | ) | | | 0.03 | |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) | | | (0.99 | ) |
| Net asset value, end of period | | $ | 9.77 | | | $ | 9.34 | | | $ | 9.54 | | | $ | 8.40 | | | $ | 6.15 | | | $ | 8.00 | |
| Total return(iii) | | | 10.73 | % | | | 9.94 | % | | | 14.94 | % | | | 36.59 | % | | | (3.92 | )% | | | 0.16 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 125,698 | | | $ | 116,308 | | | $ | 111,271 | | | $ | 102,318 | | | $ | 85,556 | | | $ | 115,594 | |
| Ratio of gross expenses to average net assets | | | 1.40 | % | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % | | | 1.38 | % | | | 1.35 | % |
| Ratio of net expenses to average net assets | | | 1.40 | % | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % | | | 1.38 | % | | | 1.35 | % |
| Ratio of net investment loss to average net assets | | | (1.08 | )% | | | (1.17 | )% | | | (1.06 | )% | | | (0.88 | )% | | | (0.79 | )% | | | (0.92 | )% |
| Portfolio turnover rate | | | 10.23 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % | | | 131.72 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class B | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 6.74 | | | $ | 7.20 | | | $ | 6.42 | | | $ | 4.73 | | | $ | 6.57 | | | $ | 7.59 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.04 | ) | | | (0.11 | ) | | | (0.13 | ) | | | (0.09 | ) | | | (0.08 | ) | | | (0.12 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.73 | | | | 0.59 | | | | 1.01 | | | | 1.78 | | | | (0.17 | ) | | | 0.09 | |
| Total from investment operations | | | 0.69 | | | | 0.48 | | | | 0.88 | | | | 1.69 | | | | (0.25 | ) | | | (0.03 | ) |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) | | | (0.99 | ) |
| Net asset value, end of period | | $ | 6.89 | | | $ | 6.74 | | | $ | 7.20 | | | $ | 6.42 | | | $ | 4.73 | | | $ | 6.57 | |
| Total return(iii) | | | 10.71 | % | | | 9.51 | % | | | 13.93 | % | | | 35.73 | % | | | (4.80 | )% | | | (0.55 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 4,667 | | | $ | 4,523 | | | $ | 4,958 | | | $ | 5,397 | | | $ | 4,998 | | | $ | 6,564 | |
| Ratio of gross expenses to average net assets | | | 2.14 | % | | | 2.19 | % | | | 2.23 | % | | | 2.19 | % | | | 2.18 | % | | | 2.16 | % |
| Ratio of expense reimbursements to average net assets | | | (0.68 | )% | | | (0.41 | )% | | | – | | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.46 | % | | | 1.78 | % | | | 2.23 | % | | | 2.19 | % | | | 2.18 | % | | | 2.16 | % |
| Ratio of net investment loss to average net assets | | | (1.14 | )% | | | (1.57 | )% | | | (1.90 | )% | | | (1.68 | )% | | | (1.59 | )% | | | (1.73 | )% |
| Portfolio turnover rate | | | 10.23 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % | | | 131.72 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class C | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 6.47 | | | $ | 6.99 | | | $ | 6.22 | | | $ | 4.59 | | | $ | 6.42 | | | $ | 7.44 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.06 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.09 | ) | | | (0.08 | ) | | | (0.12 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.70 | | | | 0.55 | | | | 0.99 | | | | 1.72 | | | | (0.16 | ) | | | 0.09 | |
| Total from investment operations | | | 0.64 | | | | 0.42 | | | | 0.87 | | | | 1.63 | | | | (0.24 | ) | | | (0.03 | ) |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) | | | (0.99 | ) |
| Net asset value, end of period | | $ | 6.57 | | | $ | 6.47 | | | $ | 6.99 | | | $ | 6.22 | | | $ | 4.59 | | | $ | 6.42 | |
| Total return(iii) | | | 10.35 | % | | | 8.87 | % | | | 14.22 | % | | | 35.51 | % | | | (4.79 | )% | | | (0.70 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 7,497 | | | $ | 6,257 | | | $ | 5,837 | | | $ | 8,007 | | | $ | 8,708 | | | $ | 13,724 | |
| Ratio of gross expenses to average net assets | | | 2.20 | % | | | 2.20 | % | | | 2.16 | % | | | 2.17 | % | | | 2.22 | % | | | 2.16 | % |
| Ratio of net expenses to average net assets | | | 2.20 | % | | | 2.20 | % | | | 2.16 | % | | | 2.17 | % | | | 2.22 | % | | | 2.16 | % |
| Ratio of net investment loss to average net assets | | | (1.87 | )% | | | (1.98 | )% | | | (1.82 | )% | | | (1.64 | )% | | | (1.64 | )% | | | (1.73 | )% |
| Portfolio turnover rate | | | 10.23 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % | | | 131.72 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 9.66 | | | $ | 9.80 | | | $ | 8.60 | | | $ | 6.27 | | | $ | 8.10 | | | $ | 9.04 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.03 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.04 | ) | | | (0.03 | ) | | | (0.05 | ) |
| Net realized and unrealized gain (loss) on investments | | | 1.06 | | | | 0.87 | | | | 1.36 | | | | 2.37 | | | | (0.21 | ) | | | 0.10 | |
| Total from investment operations | | | 1.03 | | | | 0.80 | | | | 1.30 | | | | 2.33 | | | | (0.24 | ) | | | 0.05 | |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) | | | (0.99 | ) |
| Net asset value, end of period | | $ | 10.15 | | | $ | 9.66 | | | $ | 9.80 | | | $ | 8.60 | | | $ | 6.27 | | | $ | 8.10 | |
| Total return(iii) | | | 11.00 | % | | | 10.33 | % | | | 15.30 | % | | | 37.16 | % | | | (3.55 | )% | | | 0.52 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 38,392 | | | $ | 21,782 | | | $ | 13,179 | | | $ | 26,953 | | | $ | 21,357 | | | $ | 22,002 | |
| Ratio of gross expenses to average net assets | | | 1.10 | % | | | 1.12 | % | | | 1.12 | % | | | 1.08 | % | | | 1.06 | % | | | 1.04 | % |
| Ratio of expense reimbursements to average net assets | | | (0.11 | )% | | | (0.13 | )% | | | (0.13 | )% | | | (0.09 | )% | | | (0.07 | )% | | | (0.05 | )% |
| Ratio of net expenses to average net assets | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % |
| Ratio of net investment loss to average net assets | | | (0.67 | )% | | | (0.78 | )% | | | (0.65 | )% | | | (0.50 | )% | | | (0.41 | )% | | | (0.55 | )% |
| Portfolio turnover rate | | | 10.23 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % | | | 131.72 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 19.93 | | | $ | 18.86 | | | $ | 14.91 | | | $ | 11.16 | | | $ | 10.95 | | | $ | 11.52 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.11 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.11 | ) | | | (0.09 | ) | | | (0.14 | ) |
| Net realized and unrealized gain on investments | | | 1.73 | | | | 1.41 | | | | 4.26 | | | | 3.86 | | | | 0.30 | | | | 0.55 | |
| Total from investment operations | | | 1.62 | | | | 1.22 | | | | 4.09 | | | | 3.75 | | | | 0.21 | | | | 0.41 | |
| Dividends from net investment income | | | (0.19 | ) | | | – | | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | – | | | | (0.98 | ) |
| Net asset value, end of period | | $ | 21.06 | | | $ | 19.93 | | | $ | 18.86 | | | $ | 14.91 | | | $ | 11.16 | | | $ | 10.95 | |
| Total return(iii) | | | 8.23 | % | | | 6.59 | % | | | 27.72 | % | | | 33.60 | % | | | 1.92 | % | | | 3.78 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 462,464 | | | $ | 523,291 | | | $ | 300,066 | | | $ | 77,791 | | | $ | 23,653 | | | $ | 14,480 | |
| Ratio of gross expenses to average net assets | | | 1.29 | % | | | 1.19 | % | | | 1.18 | % | | | 1.22 | % | | | 1.36 | % | | | 1.82 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.02 | )% | | | (0.11 | )% | | | (0.22 | )% |
| Ratio of net expenses to average net assets | | | 1.29 | % | | | 1.19 | % | | | 1.18 | % | | | 1.20 | % | | | 1.25 | % | | | 1.60 | % |
| Ratio of net investment loss to average net assets | | | (1.13 | )% | | | (0.95 | )% | | | (0.92 | )% | | | (0.86 | )% | | | (0.84 | )% | | | (1.24 | )% |
| Portfolio turnover rate | | | 30.44 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % | | | 162.44 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class C | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 17.85 | | | $ | 17.04 | | | $ | 13.58 | | | $ | 10.25 | | | $ | 10.12 | | | $ | 10.79 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.16 | ) | | | (0.31 | ) | | | (0.27 | ) | | | (0.20 | ) | | | (0.15 | ) | | | (0.20 | ) |
| Net realized and unrealized gain on investments | | | 1.55 | | | | 1.27 | | | | 3.87 | | | | 3.53 | | | | 0.28 | | | | 0.51 | |
| Total from investment operations | | | 1.39 | | | | 0.96 | | | | 3.60 | | | | 3.33 | | | | 0.13 | | | | 0.31 | |
| Dividends from net investment income | | | (0.08 | ) | | | – | | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | – | | | | (0.98 | ) |
| Net asset value, end of period | | $ | 18.86 | | | $ | 17.85 | | | $ | 17.04 | | | $ | 13.58 | | | $ | 10.25 | | | $ | 10.12 | |
| Total return(iii) | | | 7.88 | % | | | 5.76 | % | | | 26.82 | % | | | 32.49 | % | | | 1.28 | % | | | 3.06 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 209,795 | | | $ | 212,737 | | | $ | 131,655 | | | $ | 48,345 | | | $ | 15,928 | | | $ | 8,020 | |
| Ratio of gross expenses to average net assets | | | 1.97 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % | | | 2.12 | % | | | 2.53 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.02 | )% | | | (0.13 | )% | | | (0.28 | )% |
| Ratio of net expenses to average net assets | | | 1.97 | % | | | 1.95 | % | | | 1.94 | % | | | 1.95 | % | | | 1.99 | % | | | 2.25 | % |
| Ratio of net investment loss to average net assets | | | (1.81 | )% | | | (1.71 | )% | | | (1.66 | )% | | | (1.61 | )% | | | (1.57 | )% | | | (1.91 | )% |
| Portfolio turnover rate | | | 30.44 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % | | | 162.44 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class I | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 20.44 | | | $ | 19.34 | | | $ | 15.28 | | | $ | 11.44 | | | $ | 11.22 | | | $ | 11.75 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.11 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.11 | ) | | | (0.09 | ) | | | (0.12 | ) |
| Net realized and unrealized gain on investments | | | 1.79 | | | | 1.44 | | | | 4.37 | | | | 3.95 | | | | 0.31 | | | | 0.57 | |
| Total from investment operations | | | 1.68 | | | | 1.25 | | | | 4.20 | | | | 3.84 | | | | 0.22 | | | | 0.45 | |
| Dividends from net investment income | | | (0.19 | ) | | $ | – | | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | $ | – | | | | (0.98 | ) |
| Net asset value, end of period | | $ | 21.63 | | | $ | 20.44 | | | $ | 19.34 | | | $ | 15.28 | | | $ | 11.44 | | | $ | 11.22 | |
| Total return(iii) | | | 8.32 | % | | | 6.58 | % | | | 27.77 | % | | | 33.57 | % | | | 1.96 | % | | | 4.07 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 464,419 | | | $ | 455,937 | | | $ | 340,636 | | | $ | 109,146 | | | $ | 75,648 | | | $ | 40,924 | |
| Ratio of gross expenses to average net assets | | | 1.17 | % | | | 1.18 | % | | | 1.17 | % | | | 1.21 | % | | | 1.32 | % | | | 1.56 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.01 | )% | | | (0.09 | )% | | | (0.21 | )% |
| Ratio of net expenses to average net assets | | | 1.17 | % | | | 1.18 | % | | | 1.17 | % | | | 1.20 | % | | | 1.23 | % | | | 1.35 | % |
| Ratio of net investment loss to average net assets | | | (1.01 | )% | | | (0.93 | )% | | | (0.90 | )% | | | (0.80 | )% | | | (0.81 | )% | | | (1.07 | )% |
| Portfolio turnover rate | | | 30.44 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % | | | 162.44 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | | Class Y | |
| | | | | | | | | | | | | | | | From 3/1/2017 | |
| | | | Six months | | | | | | | | | | | | (commencement | |
| | | | ended | | | | Year ended | | | | Year ended | | | | of operations) to | |
| Alger Small Cap Focus Fund | | | 4/30/2020(i) | | | | 10/31/2019 | | | | 10/31/2018 | | | | 10/31/2017(ii) | |
| Net asset value, beginning of period | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 12.93 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment loss(iii) | | | (0.07 | ) | | | (0.14 | ) | | | (0.12 | ) | | | (0.08 | ) |
| Net realized and unrealized gain on investments | | | 1.82 | | | | 1.48 | | | | 4.42 | | | | 2.59 | |
| Total from investment operations | | | 1.75 | | | | 1.34 | | | | 4.30 | | | | 2.51 | |
| Dividends from net investment income | | | (0.26 | ) | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | |
| Net asset value, end of period | | $ | 21.98 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | |
| Total return(iv) | | | 8.51 | % | | | 6.96 | % | | | 28.13 | % | | | 19.41 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 186,392 | | | $ | 94,694 | | | $ | 25,691 | | | $ | 3,279 | |
| Ratio of gross expenses to average net assets | | | 0.86 | % | | | 0.87 | % | | | 0.88 | % | | | 1.51 | % |
| Ratio of expense reimbursements to average net assets | | | (0.01 | )% | | | (0.02 | )% | | | – | | | | (0.61 | )% |
| Ratio of net expenses to average net assets | | | 0.85 | % | | | 0.85 | % | | | 0.88 | % | | | 0.90 | % |
| Ratio of net investment loss to average net assets | | | (0.71 | )% | | | (0.64 | )% | | | (0.63 | )% | | | (0.83 | )% |
| Portfolio turnover rate | | | 30.44 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 11.53 | | | $ | 11.28 | | | $ | 11.77 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.07 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.08 | ) |
| Net realized and unrealized gain on investments | | | 1.82 | | | | 1.47 | | | | 4.42 | | | | 3.99 | | | | 0.32 | | | | 0.57 | |
| Total from investment operations | | | 1.75 | | | | 1.34 | | | | 4.30 | | | | 3.91 | | | | 0.25 | | | | 0.49 | |
| Dividends from net investment income | | | (0.26 | ) | | | – | | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | – | | | | (0.98 | ) |
| Net asset value, end of period | | $ | 21.98 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 11.53 | | | $ | 11.28 | |
| Total return(iii) | | | 8.50 | % | | | 6.96 | % | | | 28.13 | % | | | 33.91 | % | | | 2.22 | % | | | 4.43 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 2,846,146 | | | $ | 2,459,793 | | | $ | 1,329,712 | | | $ | 350,097 | | | $ | 68,253 | | | $ | 17,109 | |
| Ratio of gross expenses to average net assets | | | 0.85 | % | | | 0.86 | % | | | 0.87 | % | | | 0.90 | % | | | 1.01 | % | | | 1.56 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | – | | | | – | | | | (0.55 | )% |
| Ratio of net expenses to average net assets | | | 0.85 | % | | | 0.86 | % | | | 0.87 | % | | | 0.90 | % | | | 1.01 | % | | | 1.01 | % |
| Ratio of net investment loss to average net assets | | | (0.70 | )% | | | (0.62 | )% | | | (0.61 | )% | | | (0.58 | )% | | | (0.58 | )% | | | (0.68 | )% |
| Portfolio turnover rate | | | 30.44 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % | | | 162.44 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 15.51 | | | $ | 14.30 | | | $ | 17.58 | | | $ | 14.58 | | | $ | 15.57 | | | $ | 15.29 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(ii) | | | (0.03 | ) | | | (0.02 | ) | | | 0.06 | | | | 0.13 | | | | 0.16 | | | | 0.03 | |
| Net realized and unrealized gain (loss) on investments | | | (0.53 | ) | | | 1.66 | | | | (2.46 | ) | | | 3.11 | | | | (1.14 | ) | | | 0.40 | |
| Total from investment operations | | | (0.56 | ) | | | 1.64 | | | | (2.40 | ) | | | 3.24 | | | | (0.98 | ) | | | 0.43 | |
| Dividends from net investment income | | | (0.69 | ) | | | (0.43 | ) | | | (0.88 | ) | | | (0.24 | ) | | | (0.01 | ) | | | (0.15 | ) |
| Net asset value, end of period | | $ | 14.26 | | | $ | 15.51 | | | $ | 14.30 | | | $ | 17.58 | | | $ | 14.58 | | | $ | 15.57 | |
| Total return(iii) | | | (4.00 | )% | | | 11.99 | % | | | (14.35 | )% | | | 22.63 | % | | | (6.32 | )% | | | 2.85 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 93,419 | | | $ | 100,814 | | | $ | 98,105 | | | $ | 119,477 | | | $ | 107,398 | | | $ | 137,207 | |
| Ratio of gross expenses to average net assets | | | 1.38 | % | | | 1.37 | % | | | 1.29 | % | | | 1.34 | % | | | 1.35 | % | | | 1.32 | % |
| Ratio of net expenses to average net assets | | | 1.38 | % | | | 1.37 | % | | | 1.29 | % | | | 1.34 | % | | | 1.35 | % | | | 1.32 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.45 | )% | | | (0.11 | )% | | | 0.38 | % | | | 0.83 | % | | | 1.08 | % | | | 0.18 | % |
| Portfolio turnover rate | | | 64.79 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % | | | 114.81 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class B | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 13.44 | | | $ | 12.38 | | | $ | 15.35 | | | $ | 12.76 | | | $ | 13.71 | | | $ | 13.44 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(ii) | | | (0.02 | ) | | | (0.04 | ) | | | (0.06 | ) | | | 0.02 | | | | 0.05 | | | | (0.07 | ) |
| Net realized and unrealized gain (loss) on investments | | | (0.45 | ) | | | 1.44 | | | | (2.13 | ) | | | 2.73 | | | | (1.00 | ) | | | 0.34 | |
| Total from investment operations | | | (0.47 | ) | | | 1.40 | | | | (2.19 | ) | | | 2.75 | | | | (0.95 | ) | | | 0.27 | |
| Dividends from net investment income | | | (0.61 | ) | | | (0.34 | ) | | | (0.78 | ) | | | (0.16 | ) | | | – | | | | – | (iii) |
| Net asset value, end of period | | $ | 12.36 | | | $ | 13.44 | | | $ | 12.38 | | | $ | 15.35 | | | $ | 12.76 | | | $ | 13.71 | |
| Total return(iv) | | | (4.01 | )% | | | 11.82 | % | | | (15.00 | )% | | | 21.71 | % | | | (6.86 | )% | | | 2.04 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 15,711 | | | $ | 17,646 | | | $ | 17,639 | | | $ | 24,777 | | | $ | 25,033 | | | $ | 31,357 | |
| Ratio of gross expenses to average net assets | | | 2.08 | % | | | 2.09 | % | | | 2.01 | % | | | 2.05 | % | | | 2.06 | % | | | 2.04 | % |
| Ratio of expense reimbursements to average net assets | | | (0.85 | )% | | | (0.51 | )% | | | – | | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.23 | % | | | 1.58 | % | | | 2.01 | % | | | 2.05 | % | | | 2.06 | % | | | 2.04 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.28 | )% | | | (0.30 | )% | | | (0.40 | )% | | | 0.13 | % | | | 0.37 | % | | | (0.53 | )% |
| Portfolio turnover rate | | | 64.79 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % | | | 114.81 | % |
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) | Amount was less than $0.005 per share. |
| (iv) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class C | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 13.11 | | | $ | 12.07 | | | $ | 14.98 | | | $ | 12.44 | | | $ | 13.57 | | | $ | 13.36 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(ii) | | | (0.08 | ) | | | (0.12 | ) | | | (0.06 | ) | | | 0.01 | | | | 0.04 | | | | (0.08 | ) |
| Net realized and unrealized gain (loss) on investments | | | (0.43 | ) | | | 1.41 | | | | (2.09 | ) | | | 2.66 | | | | (0.99 | ) | | | 0.36 | |
| Total from investment operations | | | (0.51 | ) | | | 1.29 | | | | (2.15 | ) | | | 2.67 | | | | (0.95 | ) | | | 0.28 | |
| Dividends from net investment income | | | (0.57 | ) | | | (0.25 | ) | | | (0.76 | ) | | | (0.13 | ) | | | (0.18 | ) | | | (0.07 | ) |
| Net asset value, end of period | | $ | 12.03 | | | $ | 13.11 | | | $ | 12.07 | | | $ | 14.98 | | | $ | 12.44 | | | $ | 13.57 | |
| Total return(iii) | | | (4.42 | )% | | | 11.07 | % | | | (15.08 | )% | | | 21.70 | % | | | (7.04 | )% | | | 1.99 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 3,015 | | | $ | 3,603 | | | $ | 4,712 | | | $ | 12,130 | | | $ | 15,190 | | | $ | 21,697 | |
| Ratio of gross expenses to average net assets | | | 2.16 | % | | | 2.23 | % | | | 2.09 | % | | | 2.13 | % | | | 2.14 | % | | | 2.09 | % |
| Ratio of net expenses to average net assets | | | 2.16 | % | | | 2.23 | % | | | 2.09 | % | | | 2.13 | % | | | 2.14 | % | | | 2.09 | % |
| Ratio of net investment income (loss) to average net assets | | | (1.23 | )% | | | (0.99 | )% | | | (0.41 | )% | | | 0.06 | % | | | 0.29 | % | | | (0.60 | )% |
| Portfolio turnover rate | | | 64.79 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % | | | 114.81 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | | Class I | |
| Alger International Focus Fund | | | Six months
ended
4/30/2020(i) | | | | Year ended
10/31/2019 | | | | Year ended
10/31/2018 | | | | Year ended
10/31/2017 | | | | Year ended
10/31/2016 | | | | Year ended
10/31/2015 | |
| Net asset value, beginning of period | | $ | 15.54 | | | $ | 14.31 | | | $ | 17.54 | | | $ | 14.55 | | | $ | 15.55 | | | $ | 15.27 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(ii) | | | (0.01 | ) | | | 0.01 | | | | 0.09 | | | | 0.17 | | | | 0.21 | | | | 0.05 | |
| Net realized and unrealized gain (loss) on investments | | | (0.51 | ) | | | 1.67 | | | | (2.48 | ) | | | 3.09 | | | | (1.16 | ) | | | 0.41 | |
| Total from investment operations | | | (0.52 | ) | | | 1.68 | | | | (2.39 | ) | | | 3.26 | | | | (0.95 | ) | | | 0.46 | |
| Dividends from net investment income | | | (0.73 | ) | | | (0.45 | ) | | | (0.84 | ) | | | (0.27 | ) | | | (0.05 | ) | | | (0.18 | ) |
| Net asset value, end of period | | $ | 14.29 | | | $ | 15.54 | | | $ | 14.31 | | | $ | 17.54 | | | $ | 14.55 | | | $ | 15.55 | |
| Total return(iii) | | | (3.83 | )% | | | 12.41 | % | | | (14.27 | )% | | | 22.84 | % | | | (6.12 | )% | | | 3.04 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 746 | | | $ | 970 | | | $ | 2,156 | | | $ | 1,742 | | | $ | 14,202 | | | $ | 14,435 | |
| Ratio of gross expenses to average net assets | | | 1.33 | % | | | 1.48 | % | | | 1.19 | % | | | 1.48 | % | | | 1.33 | % | | | 1.30 | % |
| Ratio of expense reimbursements to average net assets | | | (0.28 | )% | | | (0.36 | )% | | | (0.04 | )% | | | (0.33 | )% | | | (0.18 | )% | | | (0.15 | )% |
| Ratio of net expenses to average net assets | | | 1.05 | % | | | 1.12 | % | | | 1.15 | % | | | 1.15 | % | | | 1.15 | % | | | 1.15 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.15 | )% | | | 0.06 | % | | | 0.51 | % | | | 1.14 | % | | | 1.43 | % | | | 0.34 | % |
| Portfolio turnover rate | | | 64.79 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % | | | 114.81 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 15.69 | | | $ | 14.46 | | | $ | 17.77 | | | $ | 14.74 | | | $ | 15.73 | | | $ | 15.44 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income(ii) | | | – | (iii) | | | 0.05 | | | | 0.12 | | | | 0.20 | | | | 0.23 | | | | 0.12 | |
| Net realized and unrealized gain (loss) on investments | | | (0.51 | ) | | | 1.67 | | | | (2.48 | ) | | | 3.14 | | | | (1.15 | ) | | | 0.39 | |
| Total from investment operations | | | (0.51 | ) | | | 1.72 | | | | (2.36 | ) | | | 3.34 | | | | (0.92 | ) | | | 0.51 | |
| Dividends from net investment income | | | (0.77 | ) | | | (0.49 | ) | | | (0.95 | ) | | | (0.31 | ) | | | (0.07 | ) | | | (0.22 | ) |
| Net asset value, end of period | | $ | 14.41 | | | $ | 15.69 | | | $ | 14.46 | | | $ | 17.77 | | | $ | 14.74 | | | $ | 15.73 | |
| Total return(iv) | | | (3.76 | )% | | | 12.64 | % | | | (14.03 | )% | | | 23.16 | % | | | (5.88 | )% | | | 3.27 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 6,724 | | | $ | 13,462 | | | $ | 14,597 | | | $ | 21,317 | | | $ | 18,477 | | | $ | 19,326 | |
| Ratio of gross expenses to average net assets | | | 1.04 | % | | | 1.10 | % | | | 1.01 | % | | | 1.03 | % | | | 1.04 | % | | | 1.03 | % |
| Ratio of expense reimbursements to average net assets | | | (0.16 | )% | | | (0.21 | )% | | | (0.12 | )% | | | (0.14 | )% | | | (0.15 | )% | | | (0.14 | )% |
| Ratio of net expenses to average net assets | | | 0.88 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.03 | )% | | | 0.36 | % | | | 0.71 | % | | | 1.27 | % | | | 1.57 | % | | | 0.73 | % |
| Portfolio turnover rate | | | 64.79 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % | | | 114.81 | % |
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) | Amount was less than $0.005 per share. |
| | (iv) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class A | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Health Sciences Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 26.55 | | | $ | 28.04 | | | $ | 25.16 | | | $ | 16.01 | | | $ | 21.94 | | | $ | 26.96 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.01 | ) | | | (0.09 | ) | | | (0.19 | ) | | | (0.19 | ) | | | (0.15 | ) | | | (0.25 | ) |
| Net realized and unrealized gain (loss) on investments | | | 2.67 | | | | 0.48 | | | | 3.82 | | | | 9.34 | | | | (2.39 | ) | | | 0.82 | |
| Total from investment operations | | | 2.66 | | | | 0.39 | | | | 3.63 | | | | 9.15 | | | | (2.54 | ) | | | 0.57 | |
| Dividends from net investment income | | | – | | | | – | | | | – | | | | – | | | | – | | | | (0.16 | ) |
| Distributions from net realized gains | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | | | | (3.39 | ) | | | (5.43 | ) |
| Net asset value, end of period | | $ | 27.30 | | | $ | 26.55 | | | $ | 28.04 | | | $ | 25.16 | | | $ | 16.01 | | | $ | 21.94 | |
| Total return(iii) | | | 10.07 | % | | | 1.96 | % | | | 14.92 | % | | | 57.15 | % | | | (14.06 | )% | | | 1.72 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 112,116 | | | $ | 108,095 | | | $ | 131,731 | | | $ | 95,913 | | | $ | 68,686 | | | $ | 122,814 | |
| Ratio of gross expenses to average net assets | | | 1.06 | % | | | 1.12 | % | | | 1.15 | % | | | 1.38 | % | | | 1.41 | % | | | 1.31 | % |
| Ratio of net expenses to average net assets | | | 1.06 | % | | | 1.12 | % | | | 1.15 | % | | | 1.38 | % | | | 1.41 | % | | | 1.31 | % |
| Ratio of net investment loss to average net assets | | | (0.05 | )% | | | (0.34 | )% | | | (0.68 | )% | | | (0.86 | )% | | | (0.87 | )% | | | (1.05 | )% |
| Portfolio turnover rate | | | 52.12 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % | | | 93.49 | % | | | 133.92 | % |
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. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class C | |
| | | Six months | | | | | | | | | | | | | | | | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Health Sciences Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015 | |
| Net asset value, beginning of period | | $ | 20.44 | | | $ | 22.21 | | | $ | 20.23 | | | $ | 12.98 | | | $ | 18.53 | | | $ | 23.60 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.08 | ) | | | (0.23 | ) | | | (0.31 | ) | | | (0.28 | ) | | | (0.24 | ) | | | (0.37 | ) |
| Net realized and unrealized gain (loss) on investments | | | 2.05 | | | | 0.34 | | | | 3.04 | | | | 7.53 | | | | (1.92 | ) | | | 0.73 | |
| Total from investment operations | | | 1.97 | | | | 0.11 | | | | 2.73 | | | | 7.25 | | | | (2.16 | ) | | | 0.36 | |
| Dividends from net investment income | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | (iii) |
| Distributions from net realized gains | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | | | | (3.39 | ) | | | (5.43 | ) |
| Net asset value, end of period | | $ | 20.50 | | | $ | 20.44 | | | $ | 22.21 | | | $ | 20.23 | | | $ | 12.98 | | | $ | 18.53 | |
| Total return(iv) | | | 9.68 | % | | | 1.20 | % | | | 14.03 | % | | | 55.86 | % | | | (14.70 | )% | | | 0.95 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 10,510 | | | $ | 10,963 | | | $ | 15,322 | | | $ | 31,148 | | | $ | 28,242 | | | $ | 53,487 | |
| Ratio of gross expenses to average net assets | | | 1.82 | % | | | 1.89 | % | | | 1.93 | % | | | 2.15 | % | | | 2.18 | % | | | 2.08 | % |
| Ratio of net expenses to average net assets | | | 1.82 | % | | | 1.89 | % | | | 1.93 | % | | | 2.15 | % | | | 2.18 | % | | | 2.08 | % |
| Ratio of net investment loss to average net assets | | | (0.82 | )% | | | (1.12 | )% | | | (1.46 | )% | | | (1.63 | )% | | | (1.65 | )% | | | (1.81 | )% |
| Portfolio turnover rate | | | 52.12 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % | | | 93.49 | % | | | 133.92 | % |
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) | Amount was less than $0.005 per share. |
| | (iv) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period (Unaudited)
| | | Class Z | |
| | | | | | | | | | | | | | | | | | From 5/28/2015 | |
| | | Six months | | | | | | | | | | | | | | | (commencement | |
| | | ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | of operations) to | |
| Alger Health Sciences Fund | | 4/30/2020(i) | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | | | 10/31/2015(ii) | |
| Net asset value, beginning of period | | $ | 26.69 | | | $ | 28.09 | | | $ | 25.11 | | | $ | 15.92 | | | $ | 21.76 | | | $ | 25.03 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(iii) | | | 0.04 | | | | 0.01 | | | | (0.09 | ) | | | (0.11 | ) | | | (0.08 | ) | | | (0.05 | ) |
| Net realized and unrealized gain (loss) on investments | | | 2.69 | | | | 0.47 | | | | 3.82 | | | | 9.30 | | | | (2.37 | ) | | | (3.22 | ) |
| Total from investment operations | | | 2.73 | | | | 0.48 | | | | 3.73 | | | | 9.19 | | | | (2.45 | ) | | | (3.27 | ) |
| Dividends from net investment income | | | (0.04 | ) | | | – | | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | | | | (3.39 | ) | | | – | |
| Net asset value, end of period | | $ | 27.47 | | | $ | 26.69 | | | $ | 28.09 | | | $ | 25.11 | | | $ | 15.92 | | | $ | 21.76 | |
| Total return(iv) | | | 10.28 | % | | | 2.34 | % | | | 15.32 | % | | | 57.73 | % | | | (13.63 | )% | | | (13.06 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 131,499 | | | $ | 77,023 | | | $ | 57,640 | | | $ | 25,644 | | | $ | 4,980 | | | $ | 6,517 | |
| Ratio of gross expenses to average net assets | | | 0.73 | % | | | 0.79 | % | | | 0.84 | % | | | 1.12 | % | | | 1.16 | % | | | 1.36 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | (0.04 | )% | | | (0.06 | )% | | | (0.13 | )% | | | (0.17 | )% | | | (0.28 | )% |
| Ratio of net expenses to average net assets | | | 0.73 | % | | | 0.75 | % | | | 0.78 | % | | | 0.99 | % | | | 0.99 | % | | | 1.08 | % |
| Ratio of net investment income (loss) to average net assets | | | 0.31 | % | | | 0.02 | % | | | (0.32 | )% | | | (0.48 | )% | | | (0.45 | )% | | | (0.47 | )% |
| Portfolio turnover rate | | | 52.12 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % | | | 93.49 | % | | | 133.92 | % |
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. |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 — General:
The Alger Funds (the “Trust”) is an open-end registered investment company organized as a business trust under the laws of the Commonwealth of Massachusetts. The Trust qualifies as an investment company as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946-Financial Services – Investment Companies. The Trust operates as a series company currently offering an unlimited number of shares of beneficial interest in eleven series — Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund (collectively, the “Funds” or individually, each a “Fund”). Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation. Alger Growth & Income Fund also normally invests primarily in equity securities but has an investment objective of both capital appreciation and current income.
Each Fund offers one or more of the following share classes: Class A, B, C, I, P, P-2, Y and Z. Class A shares are generally subject to an initial sales charge while Class B and C shares are generally subject to a deferred sales charge. Class B shares will automatically convert to Class A shares eight years after the end of the calendar month in which the order to purchase was accepted. The conversion is completed without the imposition of any sales charges or other fees. Class C shares will automatically convert to Class A shares on the fifth business day of the month following the tenth anniversary of the purchase date of a shareholder’s Class C shares, without the imposition of any sales load, fee or other charge. Class C shares held at certain dealers may not convert to Class A shares or may be converted on a different schedule. At conversion, a proportionate amount of shares representing reinvested dividends and distributions will also be converted into Class A shares. Effective August 27, 2019, Class C shares were closed to direct shareholders and are only available for purchase through certain financial intermediaries and group retirement plan recordkeeping platforms. Class I, P, P-2, Y and Z shares are sold to 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 expenses other than a class expense (not including advisory or custodial fees or other expenses related to the management of the Fund’s assets).
The Board of Trustees of the Alger Small Cap Focus Fund has authorized a partial closing of the Fund effective July 31, 2019. Class A, C, I and Z shares will be available for purchase by existing shareholders who maintain open accounts and new investors that utilize certain retirement record keeping platforms identified by Fred Alger & Company, LLC, the Fund’s distributor. Class I and Z shares will also be available for purchase by investors who transact with certain brokers identified by the distributor. Class Y shares will remain open to all qualifying investors.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
NOTE 2 — Significant Accounting Policies:
(a) Investment Valuation:The Funds value their financial instruments at fair value using independent dealers or pricing services under policies approved by the Trust’s Board of Trustees (the “Board”). Investments held by the Funds 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).
Investments in money market funds and short-term securities held by the Funds having a remaining maturity of sixty days or less are valued at amortized cost which approximates market value.
Equity securities, including traded rights, warrants and option contracts for which valuation information is readily available are valued at the last quoted sales price or official closing price on the primary market or exchange on which they are traded as reported by an independent pricing service. 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.
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 the 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 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 and described further herein.
Securities in which the Funds invest 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 closing foreign prices to reflect what the Trust’s 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 Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but the Funds are open.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
FASB Accounting Standards Codification 820 – Fair Value Measurements and Disclosures (“ASC 820”) defines fair value as the price that the Funds 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 Funds. 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 Funds’ 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. Inputs for Level 3 include, but are not limited to, revenue multiples, earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, discount rates, time to exit 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 the values if there was an active market.
Valuation processes are determined by a Valuation Committee (“Committee”) authorized by the Board and comprised of representatives of the Trust’s investment adviser and officers of the Trust. The Committee reports its fair valuation determinations and related valuation information to the Board. The Board is responsible for approving valuation policy and procedures.
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 Funds’ pricing vendor, and variances between transactional prices and the previous day’s price.
(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 Transactions:The books and records of the Funds 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 are included in realized and unrealized gain or loss on investments in the accompanying Statements of Operations.
(e) Forward Foreign Exchange Contracts:Certain Funds may enter into forward foreign currency contracts to hedge against foreign currency exchange rate risk on their non-U.S. dollar denominated securities or to facilitate settlement of foreign currency denominated portfolio transactions. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency.
These contracts may involve market risk in excess of the unrealized gain or loss reflected on the Statements of Assets and Liabilities. In addition, the Funds could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the base currency.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(f) Option Contracts:When a Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.
Certain Funds may also purchase put and call options. Such Funds pay a premium which is included in each Fund’s accompanying Statements of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire unexercised are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying security to determine the realized gain or loss.
(g) Lending of Fund Securities:The Funds may lend their securities to financial institutions, provided that the market value of the securities loaned will not at any time exceed one third of a Fund’s total assets including borrowings, as defined in its prospectuses. The Funds earn fees on the securities loaned, which are included in interest income in the accompanying Statements of Operations. In order to protect against the risk of failure by the borrower to return the securities loaned or any delay in the delivery of such securities, the loan is collateralized by cash or securities that are maintained with Brown Brothers Harriman & Company, the Funds’ Custodian (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 Funds. 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 Funds 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 Funds are 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 Funds. Collateral is returned to the borrower upon settlement of the loan. There were no securities loaned as of April 30, 2020.
(h) Dividends to Shareholders:Dividends and distributions payable to shareholders are recorded on the ex-dividend date. The Funds declare and pay dividends from net investment income, if available, annually except that Alger Growth & Income Fund declares and pays such dividends quarterly. With respect to all Funds, 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.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 a 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 differences in tax treatment of net operating losses, foreign currency transactions and premium/discount of debt securities. The reclassifications are done annually at fiscal year-end and have no impact on the net asset values of the Funds and are designed to present each Fund’s capital accounts on a tax basis.
(i) Federal Income Taxes:It is each 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 the Funds maintain such compliance, no federal income tax provision is required. Each Fund is treated as a separate entity for the purpose of determining such compliance.
Financial Accounting Standards Board Accounting Standards Codification 740 – Income Taxes (“ASC 740”) requires the Funds to measure and recognize in their 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 Funds file income tax returns in the U.S., as well as New York State and New York City. The statute of limitations on the Funds’ tax returns remains open for the tax years 2016-2019. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
(j) Allocation Methods:The Trust accounts separately for the assets, liabilities and operations of each Fund. Expenses directly attributable to each Fund are charged to that Fund’s operations; expenses which are applicable to all Funds are allocated among them based on net assets. Income, realized and unrealized gains and losses, and expenses of each 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.
(k) 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 a normal recurring nature.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(l) Recent Accounting Pronouncements:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”) which modifies disclosure requirements for fair value measurements, principally for Level 3 securities and transfers between levels of the fair value hierarchy. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. This standard was adopted by the Fund, resulting in new disclosures for the total gain or loss attributable to fair value changes in level 3 securities, and the elimination of the disclosure of the reasons for and amounts of transfers between Level 1 and Level 2, and the Fund’s valuation processes.
NOTE 3 — Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory Fees:Fees incurred by each Fund, pursuant to the provisions of the Trust’s Investment Advisory Agreement with Fred Alger Management, LLC (“Alger Management” or the “Investment 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, 2020, is set forth below under the heading “Actual Rate”:
| | | Tier 1 | | | Tier 2 | | | Tier 3 | | | Tier 4 | | | Tier 5 | | | | Actual Rate | |
| Alger Capital Appreciation Fund(a) | | | 0.81 | % | | | 0.65 | % | | | 0.60 | % | | | 0.55 | % | | | 0.45 | % | | | | 0.77 | % |
| Alger 25 Fund(b) | | | 0.30-0.80 | | | | — | | | | — | | | | — | | | | — | | | | | 0.45 | |
| Alger 35 Fund(b) | | | 0.30-0.80 | | | | — | | | | — | | | | — | | | | — | | | | | 0.30 | |
| Alger Growth & Income Fund(c) | | | 0.50 | | | | — | | | | — | | | | — | | | | — | | | | | 0.50 | |
| Alger Mid Cap Growth Fund(d) | | | 0.76 | | | | 0.70 | | | | — | | | | — | | | | — | | | | | 0.76 | |
| Alger Mid Cap Focus Fund(c) | | | 0.70 | | | | — | | | | — | | | | — | | | | — | | | | | 0.70 | |
| Alger Weatherbie Specialized Growth Fund(d) | | | 0.81 | | | | 0.75 | | | | — | | | | — | | | | — | | | | | 0.81 | |
| Alger Small Cap Growth Fund(d) | | | 0.81 | | | | 0.75 | | | | — | | | | — | | | | — | | | | | 0.81 | |
| Alger Small Cap Focus Fund(c) | | | 0.75 | | | | — | | | | — | | | | — | | | | — | | | | | 0.75 | |
| Alger International Focus Fund(d) | | | 0.71 | | | | 0.60 | | | | — | | | | — | | | | — | | | | | 0.71 | |
| Alger Health Sciences Fund(c) | | | 0.55 | | | | — | | | | — | | | | — | | | | — | | | | | 0.55 | |
(a)Tier 1 rate is paid on assets up to $2 billion, Tier 2 rate is paid on assets between $2 billion and $3 billion, Tier 3 rate is paid on assets between $3 billion and $4 billion, Tier 4 rate is paid on assets between $4 billion and $5 billion, and Tier 5 rate is paid on assets in excess of $5 billion.
(b)The management fee paid to Alger Management consists of a base fee at an annual rate of 0.55% of the Fund’s average daily net assets and a positive or negative performance adjustment of up to an annual rate of 0.25% based upon the Fund’s performance relative to the S&P 500 Index, resulting in a minimum total fee of 0.30% and a maximum total fee of 0.80%.
(c)Tier 1 rate is paid on all assets.
(d) Tier 1 rate is paid on assets up to $1 billion and Tier 2 rate is paid on assets in excess of $1 billion.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The sub-advisor to the Alger Weatherbie Specialized Growth Fund, Weatherbie Capital, LLC (“Weatherbie” or the “Sub-Advisor”), an affiliate of Alger Management, is paid a fee, out of the management fee that Alger Management receives at no additional cost to the Alger Weatherbie Specialized Growth Fund. The sub-advisory fee is equal to 70% of the net management fee paid by the Alger Weatherbie Specialized Growth Fund to Alger Management with respect to the sub-advised assets. For the six months ended April 30, 2020, Alger Management paid a sub-advisory fee of $1,678,434 to Weatherbie.
Alger Management has agreed to limit the expenses for certain share classes, effective through February 28, 2021, whereby it reimburses the share classes if annualized operating expenses (excluding acquired fund fees and expenses, interest, taxes, brokerage, dividend expense on short sales, borrowing costs and extraordinary expenses) exceed the rates, based on average daily net assets, listed in the table below.
| | | | | | | | | | | | | | | FEES WAIVED / | |
| | | | | | | | | | | | | | | REIMBURSED
FOR | |
| | | | | | | | | | | | | | | THE SIX MONTHS | |
| | | CLASS | | | ENDED | |
| | | A | | | C | | | I | | | Y | | | Z | | | APRIL 30, 2020 | |
| Alger Growth & Income Fund | | | – | | | | – | | | | – | | | | – | | | | 0.69 | % | | $ | 4,444 | |
| Alger Mid Cap Growth Fund | | | – | | | | – | | | | – | | | | – | | | | 1.05 | | | | – | |
| Alger Mid Cap Focus Fund | | | – | | | | – | | | | 1.20 | % | | | – | | | | 0.99 | | | | 57,824 | |
| Alger Weatherbie Specialized Growth Fund | | | – | | | | – | | | | – | | | | 0.87 | % | | | 0.99 | | | | 6,693 | |
| Alger Small Cap Growth Fund | | | – | | | | – | | | | – | | | | – | | | | 0.99 | | | | 14,147 | |
| Alger Small Cap Focus Fund | | | – | | | | – | | | | – | | | | 0.85 | | | | – | | | | 7,468 | |
| Alger International Focus Fund | | | – | | | | – | | | | 1.10 | | | | – | | | | 0.89 | | | | 10,061 | |
| Alger Health Sciences Fund | | | – | | | | – | | | | – | | | | – | | | | 0.75 | | | | – | |
Alger Management has also agreed to limit expenses of the Class P and Class P-2 share classes of Alger 25 Fund and Alger 35 Fund, for the life of the applicable Funds, whereby it reimburses expenses to the extent Fund operating expenses, excluding advisory fees (and sub-transfer agency fees and shareholder service fees for Class P-2) exceed 0.10%, based on average daily net assets. The expense reimbursement arrangement does not include interest, taxes, brokerage, dividend expense on short sales, borrowing costs and extraordinary expenses. Fees waived for the Alger 25 Fund and Alger 35 Fund were $67,685 and $65,091, respectively, for the six months ended April 30, 2020.
In addition, Alger Management voluntarily reduced its 12b-1 fee effective April 1, 2019, for the Class B shares of the Alger Mid Cap Growth Fund, Alger Small Cap Growth Fund and Alger International Focus Fund by $48,973, $14,160 and $65,953, respectively, for the six months ended April 30, 2020.
Alger Management may, during the first year of the two-year term of the expense limitation contract, recoup any fees waived or expenses reimbursed for share classes A, C, I, Y and Z pursuant to the expense limitation contract to the extent that such recoupment would not cause the expense ratio to exceed the lesser of the stated limitation in effect at the time of (i) the waiver or reimbursement and (ii) the recoupment after the repayment of the recoupment is taken into account. For the period ended February 28, 2020, when the recoupment provision ended, the recoupments made by the Funds to the Investment Manager for the Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund were $1,043, $241, $301, $250 and $1,613, respectively.
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(b) Administration Fees:Fees incurred by each Fund, pursuant to the provisions of the Trust’s Administration Agreement with Alger Management, are payable monthly and computed based on the average daily net assets of each Fund at the annual rate of 0.0275%.
(c) Distribution Fees:
Class A Shares:The Trust has adopted a Plan of Distribution pursuant to which each Fund pays Fred Alger & Company, LLC, the Fund’s distributor (the “Distributor” or “Alger LLC”) and an affiliate of the Investment Manager, a fee at the annual rate of 0.25% of the respective average daily net assets of the Class A shares of the designated Fund to compensate Alger LLC for its activities and expenses incurred in distributing the Class A shares and/or shareholder servicing. Fees paid may be more or less than the expenses incurred by Alger LLC.
Class B Shares:The Trust has adopted an Amended and Restated Plan of Distribution pursuant to which Class B shares of each Fund issuing such shares reimburse Alger LLC for costs and expenses incurred by Alger LLC in connection with advertising, marketing and selling the Class B shares, and shareholder servicing, not to exceed an annual rate of 1% of the respective average daily net assets of the Class B shares of the designated Fund. If in any month, the costs incurred by Alger LLC relating to the Class B shares are in excess of the distribution fees charged to the Class B shares of the Fund, the excess may be carried forward, with interest, and sought to be reimbursed in future periods. As of April 30, 2020, such excess carried forward was $24,247,478, $11,710,124, $18,472,069 and $18,253,889 for Class B shares of Alger Capital Appreciation Fund, Alger Mid Cap Growth Fund, Alger Small Cap Growth Fund and Alger International Focus Fund, respectively. Contingent deferred sales charges imposed on redemptions of Class B shares will reduce the amount of distribution expenses for which reimbursement may be sought. See Note 3(d) below.
Class C Shares:The Trust has adopted a Distribution Plan pursuant to which Class C shares of each Fund pays Alger LLC a fee at the annual rate of 1% of the respective average daily net assets of the Class C shares of the designated Fund to compensate Alger LLC for its activities and expenses incurred in distributing the Class C shares and/or shareholder servicing. Fees paid may be more or less than the expenses incurred by Alger LLC.
Class I Shares:The Trust has adopted a Distribution Plan pursuant to which Class I shares of Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Focus Fund and Alger International Focus Fund each pay Alger LLC a fee at the annual rate of 0.25% of the average daily net assets of the Fund’s Class I shares to compensate Alger LLC for its activities and expenses incurred in distributing the Class I shares and/or shareholder servicing. Fees paid may be more or less than the expenses incurred by Alger LLC.
Class P-2 Shares:The Trust has adopted a Distribution Plan pursuant to which Class P-2 shares of Alger 25 Fund and Alger 35 Fund each pay Alger LLC a fee at the annual rate of 0.08% of the average daily net assets of the Fund’s Class P-2 shares to compensate Alger LLC for its activities and expenses incurred in distributing the Class P-2 shares and/or shareholder servicing. Fees paid may be more or less than the expenses incurred by Alger LLC.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(d) Sales Charges:Purchases and sales of shares of the Funds may be subject to initial sales charges or contingent deferred sales charges. The contingent deferred sales charges are used by Alger LLC to offset distribution expenses previously incurred. Sales charges do not represent expenses of a Fund. Effective July 24, 2020, Alger LLC will not collect any sales charges on assets held by direct shareholders. For the six months ended April 30, 2020, the initial sales charges and contingent deferred sales charges imposed, all of which were retained by Alger LLC, were as follows:
| | | | | | CONTINGENT | |
| | | INITIAL SALES | | | DEFERRED SALES | |
| | | CHARGES | | | CHARGES | |
| Alger Capital Appreciation Fund | | $ | 407 | | | $ | 7,119 | |
| Alger Growth & Income Fund | | | — | | | | 353 | |
| Alger Mid Cap Growth Fund | | | 157 | | | | 698 | |
| Alger Weatherbie Specialized Growth Fund | | | — | | | | 109,857 | |
| Alger Small Cap Growth Fund | | | 142 | | | | 2,809 | |
| Alger Small Cap Focus Fund | | | — | | | | 39,836 | |
| Alger International Focus Fund | | | 204 | | | | 1,070 | |
| Alger Health Sciences Fund | | | — | | | | 1,616 | |
(e) Brokerage Commissions:During the six months ended April 30, 2020, Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund paid Alger LLC commissions of $176,329, $2,531, $412, $1,080, $26,981, $845, $5,226, $90,785, 1,005 and $10,722, respectively, in connection with securities transactions.
(f) Shareholder Administrative Fees:The Trust has entered into a shareholder administrative services agreement with Alger Management to compensate Alger Management for its liaison and administrative oversight of the transfer agent, and for other related services. The Funds compensate Alger Management at the annual rate of 0.0165% of their respective average daily net assets for the Class A, Class B and Class C shares and 0.01% of their respective average daily net assets of the Class I, Class P, Class P-2 and Class Z shares for these services.
Alger Management makes payments to intermediaries that provide sub-accounting services to omnibus accounts invested in the Funds. A portion of the fees paid by Alger Management to intermediaries that provide sub-accounting services are charged back to the appropriate Fund, subject to certain limitations, as approved by the Board. For the six months ended April 30, 2020, Alger Management charged back to Alger Capital Appreciation Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund, $507,048, $17,331, $25,738, $74,131, $17,855, $415,961, $13,881 and $32,103, respectively, for these services, which are included in transfer agent fees in the accompanying Statements of Operations.
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(g) Trustee Fees:For 2019, each trustee who is not an “interested person” of the Trust, as defined in the Investment Company Act of 1940, as amended (“Independent Trustee”) received a fee of $122,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex, plus travel expenses incurred for attending board meetings. The term “Alger Fund Complex” refers to the Trust, The Alger Institutional Funds, The Alger Funds II, The Alger Portfolios and Alger Global Focus Fund, each of which is a registered investment company managed by Alger Management. The Independent Trustee appointed as Chairman of the Board of Trustees received additional compensation of $30,000 per annum paid pro rata based on net assets by each fund in the Alger Fund Complex. Additionally, each member of the Audit Committee received a fee of $11,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex.
On December 17, 2019, the Board of Trustees approved the following changes in Trustee compensation. Effective January 1, 2020, each Independent Trustee receives a fee of $134,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex, plus travel expenses incurred for attending board meetings. The Independent Trustee appointed as Chairman of the Board of Trustees receives additional compensation of $20,000 per annum paid pro rata based on net assets by each fund in the Alger Fund Complex. Additionally, each member of the Audit Committee receives a fee of $13,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex.
(h) Interfund Trades:The Funds may engage in purchase and sale transactions with other funds advised by Alger Management. For the six months ended April 30, 2020, these purchases and sales were as follows:
| | | Purchases | | | Sales | | | Realized gain | |
| Alger Small Cap Growth Fund | | $ | 271,219 | | | $ | — | | | $ | — | |
| Alger Small Cap Focus Fund | | | — | | | | 271,219 | | | | 210,799 | |
(i) Interfund Loans:The Funds, along with other funds in the Alger Fund Complex, may borrow money from and lend money to each other for temporary or emergency purposes with the exception of the Alger International Focus Fund, which can only borrow 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, 2020.
During the six months ended April 30, 2020, Alger Capital Appreciation Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund incurred interfund loan interest expenses of $10,534, $373, $308, $1,420, $818 and $854, respectively, and Alger Capital Appreciation Fund and Alger Small Cap Focus Fund earned interfund loan interest income of $19 and $27,809, respectively, which is included in interest in the accompanying Statements of Operations.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(j) Other Transactions with Affiliates:Certain officers of the Trust are directors and/or officers of Alger Management and the Distributor. At April 30, 2020, Alger Management and its affiliated entities owned the following shares:
| | | SHARE CLASS | |
| | | A | | I | | P | | P-2 | | Y | | Z | |
| Alger Capital Appreciation Fund | | 73,980 | | — | | — | | — | | — | | | 28,882 | |
| Alger 25 Fund | | — | | — | | 250,933 | | 9,425 | | — | | | — | |
| Alger 35 Fund | | — | | — | | 759,019 | | 9,705 | | — | | | — | |
| Alger Growth & Income Fund | | — | | — | | — | | — | | — | | | 32,241 | |
| Alger Mid Cap Growth Fund | | — | | — | | — | | — | | — | | | 91,394 | |
| Alger Weatherbie Specialized Growth Fund | | 187,751 | | — | | — | | — | | 10,066 | | | 185 | |
| Alger Small Cap Growth Fund | | 71,040 | | — | | — | | — | | — | | | 88,731 | |
| Alger Small Cap Focus Fund | | — | | — | | — | | — | | 787 | | | 291,681 | |
| Alger International Focus Fund | | — | | — | | — | | — | | — | | | 63,226 | |
| Alger Health Sciences Fund | | — | | — | | — | | — | | — | | | 5,232 | |
NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by each Fund, other than U.S. Government securities, short-term securities, purchased options, forward foreign currency contracts and short sales, for the six months ended April 30, 2020:
| | | PURCHASES | | | SALES | |
| Alger Capital Appreciation Fund | | $ | 1,228,717,123 | | | $ | 1,456,841,854 | |
| Alger 25 Fund | | | 8,837,810 | | | | 6,134,097 | |
| Alger 35 Fund | | | 7,034,770 | | | | 7,293,498 | |
| Alger Growth & Income Fund | | | 6,351,951 | | | | 13,867,391 | |
| Alger Mid Cap Growth Fund | | | 166,191,205 | | | | 172,423,417 | |
| Alger Mid Cap Focus Fund | | | 34,921,246 | | | | 21,222,536 | |
| Alger Weatherbie Specialized Growth Fund | | | 244,674,178 | | | | 183,355,873 | |
| Alger Small Cap Growth Fund | | | 30,641,974 | | | | 14,867,345 | |
| Alger Small Cap Focus Fund | | | 1,134,859,220 | | | | 1,139,460,204 | |
| Alger International Focus Fund | | | 82,381,524 | | | | 92,210,003 | |
| Alger Health Sciences Fund | | | 141,292,774 | | | | 108,983,570 | |
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 emerging markets include increased volatility, limited liquidity, and less stringent regulatory and legal systems.
NOTE 5 — Borrowing:
The Funds may borrow from the Custodian on an uncommitted basis. Each Fund pays the Custodian a market rate of interest, generally based upon a rate of return with respect to each respective currency borrowed taking into consideration relevant overnight and short-term reference rates, the range of distribution between and among the interest rates paid on deposits to other institutions, less applicable commissions, if any. The Funds may also borrow from other funds in the Alger Fund Complex, as discussed in Note 3(i). For the six months ended April 30, 2020, the Funds had the following borrowings:
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | AVERAGE DAILY | | | WEIGHTED AVERAGE | |
| | | BORROWING | | | INTEREST RATE | |
| Alger Capital Appreciation Fund | | $ | 948,621 | | | | 2.41 | % |
| Alger 25 Fund | | | 26 | | | | 3.80 | |
| Alger 35 Fund | | | 25 | | | | 3.82 | |
| Alger Growth & Income Fund | | | 51,042 | | | | 1.64 | |
| Alger Mid Cap Growth Fund | | | 27,765 | | | | 2.40 | |
| Alger Mid Cap Focus Fund | | | 115,245 | | | | 2.49 | |
| Alger Weatherbie Specialized Growth Fund | | | 69 | | | | 3.82 | |
| Alger Small Cap Growth Fund | | | 44 | | | | 3.80 | |
| Alger Small Cap Focus Fund | | | 297 | | | | 3.82 | |
| Alger International Focus Fund | | | 156,484 | | | | 2.03 | |
| Alger Health Sciences Fund | | | 75,212 | | | | 2.37 | |
The highest amount borrowed by each Fund from the Custodian and other funds during the six months ended April 30, 2020 was as follows:
| | | HIGHEST BORROWING | |
| Alger Capital Appreciation Fund | | $ | 23,478,000 | |
| Alger 25 Fund | | | 4,721 | |
| Alger 35 Fund | | | 4,505 | |
| Alger Growth & Income Fund | | | 2,300,018 | |
| Alger Mid Cap Growth Fund | | | 2,370,274 | |
| Alger Mid Cap Focus Fund | | | 6,989,844 | |
| Alger Weatherbie Specialized Growth Fund | | | 12,643 | |
| Alger Small Cap Growth Fund | | | 7,994 | |
| Alger Small Cap Focus Fund | | | 54,116 | |
| Alger International Focus Fund | | | 3,507,389 | |
| Alger Health Sciences Fund | | | 2,660,490 | |
NOTE 6 — Share Capital:
The Trust has an unlimited number of authorized shares of beneficial interest of $.001 par value which are presently divided into eleven series. Each series is divided into separate classes. The transactions of shares of beneficial interest were as follows:
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Capital Appreciation Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 3,572,761 | | | $ | 94,717,368 | | | | 5,409,646 | | | $ | 134,594,348 | |
| Shares converted from Class B | | | 19,568 | | | | 530,845 | | | | 56,679 | | | | 1,442,230 | |
| Shares converted from Class C | | | 65,541 | | | | 1,696,427 | | | | 53,610 | | | | 1,383,010 | |
| Dividends reinvested | | | 2,937,814 | | | | 78,087,090 | | | | 4,389,837 | | | | 97,586,145 | |
| Shares redeemed | | | (7,908,213 | ) | | | (207,431,872 | ) | | | (14,606,803 | ) | | | (371,486,813 | ) |
| Net decrease | | | (1,312,529 | ) | | $ | (32,400,142 | ) | | | (4,697,031 | ) | | $ | (136,481,080 | ) |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 13,163 | | | $ | 261,134 | | | | 25,852 | | | $ | 500,372 | |
| Shares converted to Class A | | | (26,418 | ) | | | (530,845 | ) | | | (74,375 | ) | | | (1,442,230 | ) |
| Dividends reinvested | | | 41,410 | | | | 807,917 | | | | 71,787 | | | | 1,213,205 | |
| Shares redeemed | | | (81,615 | ) | | | (1,654,575 | ) | | | (102,456 | ) | | | (1,996,484 | ) |
| Net decrease | | | (53,460 | ) | | $ | (1,116,369 | ) | | | (79,192 | ) | | $ | (1,725,137 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 579,747 | | | $ | 11,415,043 | | | | 1,128,309 | | | $ | 20,701,966 | |
| Shares converted to Class A | | | (88,298 | ) | | | (1,696,427 | ) | | | (70,119 | ) | | | (1,383,010 | ) |
| Dividends reinvested | | | 934,025 | | | | 18,353,590 | | | | 1,416,976 | | | | 24,088,590 | |
| Shares redeemed | | | (1,720,014 | ) | | | (33,854,753 | ) | | | (3,591,490 | ) | | | (69,831,298 | ) |
| Net decrease | | | (294,540 | ) | | $ | (5,782,547 | ) | | | (1,116,324 | ) | | $ | (26,423,752 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,708,077 | | | $ | 157,230,230 | | | | 9,367,565 | | | $ | 244,340,144 | |
| Dividends reinvested | | | 3,577,911 | | | | 98,750,345 | | | | 4,615,566 | | | | 105,881,077 | |
| Shares redeemed | | | (7,285,172 | ) | | | (197,609,702 | ) | | | (9,816,320 | ) | | | (254,664,054 | ) |
| Net increase | | | 2,000,816 | | | $ | 58,370,873 | | | | 4,166,811 | | | $ | 95,557,167 | |
| | | | | | | | | | | | | | | | | |
| Alger 25 Fund | | | | | | | | | | | | | | | | |
| Class P: | | | | | | | | | | | | | | | | |
| Shares sold | | | 193,008 | | | $ | 2,433,334 | | | | 40,097 | | | $ | 500,000 | |
| Dividends reinvested | | | 10,217 | | | | 130,985 | | | | 3,929 | | | | 39,245 | |
| Shares redeemed | | | — | | | | — | | | | (5,067 | ) | | | (63,592 | ) |
| Net increase | | | 203,225 | | | $ | 2,564,319 | | | | 38,959 | | | $ | 475,653 | |
| Class P-2: | | | | | | | | | | | | | | | | |
| Shares sold | | | 27,834 | | | $ | 373,448 | | | | 9,286 | | | $ | 106,215 | |
| Dividends reinvested | | | 98 | | | | 1,252 | | | | — | | | | — | |
| Shares redeemed | | | (5,851 | ) | | | (67,652 | ) | | | (447 | ) | | | (5,132 | ) |
| Net increase | | | 22,081 | | | $ | 307,048 | | | | 8,839 | | | $ | 101,083 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger 35 Fund | | | | | | | | | | | | | | | | |
| Class P: | | | | | | | | | | | | | | | | |
| Shares sold | | | 28,618 | | | $ | 350,000 | | | | 23,801 | | | $ | 250,000 | |
| Dividends reinvested | | | 42 | | | | 508 | | | | 9,185 | | | | 87,537 | |
| Net increase | | | 28,660 | | | $ | 350,508 | | | | 32,986 | | | $ | 337,537 | |
| Class P-2: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,204 | | | $ | 16,338 | | | | 5 | | | $ | 50 | |
| Dividends reinvested | | | — | | | | — | | | | 71 | | | | 680 | |
| Net increase | | | 1,204 | | | $ | 16,338 | | | | 76 | | | $ | 730 | |
| | | | | | | | | | | | | | | | | |
| Alger Growth & Income Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 85,034 | | | $ | 3,644,629 | | | | 158,691 | | | $ | 6,395,146 | |
| Shares converted from Class C | | | 4,644 | | | | 196,922 | | | | 4,571 | | | | 185,960 | |
| Dividends reinvested | | | 68,620 | | | | 2,977,793 | | | | 103,036 | | | | 3,845,341 | |
| Shares redeemed | | | (150,285 | ) | | | (6,320,451 | ) | | | (284,192 | ) | | | (11,461,717 | ) |
| Net increase (decrease) | | | 8,013 | | | $ | 498,893 | | | | (17,894 | ) | | $ | (1,035,270 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 31,109 | | | $ | 1,314,943 | | | | 63,968 | | | $ | 2,451,716 | |
| Shares converted to Class A | | | (4,717 | ) | | | (196,922 | ) | | | (4,639 | ) | | | (185,960 | ) |
| Dividends reinvested | | | 13,866 | | | | 596,564 | | | | 22,069 | | | | 805,489 | |
| Shares redeemed | | | (42,110 | ) | | | (1,667,444 | ) | | | (133,031 | ) | | | (5,262,691 | ) |
| Net increase (decrease) | | | (1,852 | ) | | $ | 47,141 | | | | (51,633 | ) | | $ | (2,191,446 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 58,809 | | | $ | 2,463,086 | | | | 125,149 | | | $ | 4,862,200 | |
| Dividends reinvested | | | 24,448 | | | | 1,059,286 | | | | 36,266 | | | | 1,360,433 | |
| Shares redeemed | | | (221,386 | ) | | | (7,994,159 | ) | | | (145,528 | ) | | | (5,810,750 | ) |
| Net increase (decrease) | | | (138,129 | ) | | $ | (4,471,787 | ) | | | 15,887 | | | $ | 411,883 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 285,776 | | | $ | 3,985,510 | | | | 497,105 | | | $ | 6,947,149 | |
| Shares converted from Class B | | | 595,197 | | | | 8,984,730 | | | | 52,502 | | | | 749,952 | |
| Shares converted from Class C | | | 2,060 | | | | 30,109 | | | | 14,106 | | | | 208,811 | |
| Dividends reinvested | | | 718,108 | | | | 10,161,234 | | | | 495,829 | | | | 6,009,462 | |
| Shares redeemed | | | (1,220,942 | ) | | | (17,563,614 | ) | | | (1,461,310 | ) | | | (21,047,438 | ) |
| Net increase (decrease) | | | 380,199 | | | $ | 5,597,969 | | | | (401,768 | ) | | $ | (7,132,064 | ) |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 743,212 | | | $ | 8,662,820 | | | | 27,558 | | | $ | 288,473 | |
| Shares converted to Class A | | | (767,611 | ) | | | (8,984,730 | ) | | | (67,138 | ) | | | (749,952 | ) |
| Dividends reinvested | | | 123,932 | | | | 1,335,979 | | | | 94,332 | | | | 893,322 | |
| Shares redeemed | | | (89,457 | ) | | | (977,768 | ) | | | (231,702 | ) | | | (2,608,100 | ) |
| Net increase (decrease) | | | 10,076 | | | $ | 36,301 | | | | (176,950 | ) | | $ | (2,176,257 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 42,847 | | | $ | 445,003 | | | | 96,099 | | | $ | 1,044,631 | |
| Shares converted to Class A | | | (2,749 | ) | | | (30,109 | ) | | | (18,362 | ) | | | (208,811 | ) |
| Dividends reinvested | | | 43,749 | | | | 461,118 | | | | 36,385 | | | | 339,838 | |
| Shares redeemed | | | (115,420 | ) | | | (1,149,741 | ) | | | (273,590 | ) | | | (3,014,606 | ) |
| Net decrease | | | (31,573 | ) | | $ | (273,729 | ) | | | (159,468 | ) | | $ | (1,838,948 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 102,962 | | | $ | 1,465,188 | | | | 287,124 | | | $ | 3,997,992 | |
| Dividends reinvested | | | 56,155 | | | | 806,942 | | | | 34,439 | | | | 422,221 | |
| Shares redeemed | | | (143,689 | ) | | | (1,950,887 | ) | | | (149,060 | ) | | | (2,131,312 | ) |
| Net increase | | | 15,428 | | | $ | 321,243 | | | | 172,503 | | | $ | 2,288,901 | |
| | | | | | | | | | | | | | | | | |
| Alger Mid Cap Focus Fund | | | | | | | | | | | | | | | | |
| Class I:* | | | | | | | | | | | | | | | | |
| Shares sold | | | 3,033,148 | | | $ | 33,458,328 | | | | 1,014,523 | | | $ | 10,401,362 | |
| Shares redeemed | | | (47,120 | ) | | | (478,932 | ) | | | (806,054 | ) | | | (7,922,135 | ) |
| Net increase | | | 2,986,028 | | | $ | 32,979,396 | | | | 208,469 | | | $ | 2,479,227 | |
| Class Z:* | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,826,643 | | | $ | 18,439,278 | | | | 2,962,115 | | | $ | 29,644,747 | |
| Shares redeemed | | | (162,288 | ) | | | (1,669,820 | ) | | | (54,670 | ) | | | (535,882 | ) |
| Net increase | | | 1,664,355 | | | $ | 16,769,458 | | | | 2,907,445 | | | $ | 29,108,865 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,342,604 | | | $ | 33,858,678 | | | | 5,688,891 | | | $ | 76,692,198 | |
| Shares converted from Class C | | | 32,514 | | | | 440,957 | | | | 30,603 | | | | 419,531 | |
| Dividends reinvested | | | 393,895 | | | | 5,475,143 | | | | 761,268 | | | | 8,085,010 | |
| Shares redeemed | | | (3,638,878 | ) | | | (49,876,666 | ) | | | (4,445,803 | ) | | | (58,098,817 | ) |
| Net increase (decrease) | | | (869,865 | ) | | $ | (10,101,888 | ) | | | 2,034,959 | | | $ | 27,097,922 | |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 937,791 | | | $ | 8,512,186 | | | | 2,129,592 | | | $ | 19,585,283 | |
| Shares converted to Class A | | | (48,732 | ) | | | (440,957 | ) | | | (44,988 | ) | | | (419,531 | ) |
| Dividends reinvested | | | 290,701 | | | | 2,683,170 | | | | 519,008 | | | | 3,757,614 | |
| Shares redeemed | | | (780,677 | ) | | | (6,687,594 | ) | | | (1,525,881 | ) | | | (13,812,767 | ) |
| Net increase | | | 399,083 | | | $ | 4,066,805 | | | | 1,077,731 | | | $ | 9,110,599 | |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,240,203 | | | $ | 31,506,644 | | | | 6,551,855 | | | $ | 89,713,141 | |
| Dividends reinvested | | | 139,279 | | | | 1,988,908 | | | | 206,658 | | | | 2,250,504 | |
| Shares redeemed | | | (1,690,975 | ) | | | (21,625,030 | ) | | | (5,127,346 | ) | | | (71,611,171 | ) |
| Net increase | | | 688,507 | | | $ | 11,870,522 | | | | 1,631,167 | | | $ | 20,352,474 | |
| Class Y: | | | | | | | | | | | | | | | | |
| Shares sold | | | 938,696 | | | $ | 12,437,171 | | | | 796,709 | | | $ | 11,239,481 | |
| Dividends reinvested | | | 22,542 | | | | 325,051 | | | | 37,800 | | | | 413,909 | |
| Shares redeemed | | | (219,411 | ) | | | (2,970,774 | ) | | | (182,177 | ) | | | (2,490,755 | ) |
| Net increase | | | 741,827 | | | $ | 9,791,448 | | | | 652,332 | | | $ | 9,162,635 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 9,748,043 | | | $ | 139,460,999 | | | | 15,933,666 | | | $ | 229,349,153 | |
| Dividends reinvested | | | 759,385 | | | | 11,261,680 | | | | 953,077 | | | | 10,731,650 | |
| Shares redeemed | | | (6,320,162 | ) | | | (87,686,756 | ) | | | (7,484,513 | ) | | | (103,653,631 | ) |
| Net increase | | | 4,187,266 | | | $ | 63,035,923 | | | | 9,402,230 | | | $ | 136,427,172 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,129,955 | | | $ | 10,675,289 | | | | 1,167,060 | | | $ | 10,800,783 | |
| Shares converted from Class B | | | 134,942 | | | | 1,267,998 | | | | 191,897 | | | | 1,777,871 | |
| Shares converted from Class C | | | 10,155 | | | | 94,213 | | | | 12,949 | | | | 123,857 | |
| Dividends reinvested | | | 703,588 | | | | 6,494,119 | | | | 1,327,983 | | | | 10,198,906 | |
| Shares redeemed | | | (1,572,207 | ) | | | (14,678,311 | ) | | | (1,899,859 | ) | | | (17,257,336 | ) |
| Net increase | | | 406,433 | | | $ | 3,853,308 | | | | 800,030 | | | $ | 5,644,081 | |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 178,029 | | | $ | 1,236,524 | | | | 221,477 | | | $ | 1,479,400 | |
| Shares converted to Class A | | | (187,263 | ) | | | (1,267,998 | ) | | | (263,994 | ) | | | (1,777,871 | ) |
| Dividends reinvested | | | 53,607 | | | | 348,978 | | | | 111,241 | | | | 618,499 | |
| Shares redeemed | | | (38,086 | ) | | | (252,522 | ) | | | (85,867 | ) | | | (567,974 | ) |
| Net increase (decrease) | | | 6,287 | | | $ | 64,982 | | | | (17,143 | ) | | $ | (247,946 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 335,510 | | | $ | 2,105,878 | | | | 446,180 | | | $ | 2,944,370 | |
| Shares converted to Class A | | | (15,010 | ) | | | (94,213 | ) | | | (18,533 | ) | | | (123,857 | ) |
| Dividends reinvested | | | 72,948 | | | | 454,465 | | | | 126,861 | | | | 679,974 | |
| Shares redeemed | | | (219,497 | ) | | | (1,360,035 | ) | | | (423,092 | ) | | | (2,746,744 | ) |
| Net increase | | | 173,951 | | | $ | 1,106,095 | | | | 131,416 | | | $ | 753,743 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,282,173 | | | $ | 21,349,652 | | | | 1,386,207 | | | $ | 13,495,541 | |
| Dividends reinvested | | | 136,279 | | | | 1,304,192 | | | | 153,409 | | | | 1,214,997 | |
| Shares redeemed | | | (890,953 | ) | | | (7,762,999 | ) | | | (628,827 | ) | | | (5,576,290 | ) |
| Net increase | | | 1,527,499 | | | $ | 14,890,845 | | | | 910,789 | | | $ | 9,134,248 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Small Cap Focus Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,793,494 | | | $ | 56,863,585 | | | | 24,526,769 | | | $ | 483,804,839 | |
| Shares converted from Class C | | | 1,471 | | | | 30,363 | | | | 13,598 | | | | 292,342 | |
| Dividends reinvested | | | 535,855 | | | | 11,038,609 | | | | 134,336 | | | | 2,275,658 | |
| Shares redeemed | | | (7,628,864 | ) | | | (149,488,138 | ) | | | (14,329,320 | ) | | | (281,299,700 | ) |
| Net increase (decrease) | | | (4,298,044 | ) | | $ | (81,555,581 | ) | | | 10,345,383 | | | $ | 205,073,139 | |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 456,998 | | | $ | 8,281,859 | | | | 5,872,226 | | | $ | 104,857,343 | |
| Shares converted to Class A | | | (1,641 | ) | | | (30,363 | ) | | | (15,155 | ) | | | (292,342 | ) |
| Dividends reinvested | | | 213,864 | | | | 3,956,482 | | | | 69,301 | | | | 1,058,917 | |
| Shares redeemed | | | (1,463,381 | ) | | | (25,306,171 | ) | | | (1,737,269 | ) | | | (30,901,428 | ) |
| Net increase (decrease) | | | (794,160 | ) | | $ | (13,098,193 | ) | | | 4,189,103 | | | $ | 74,722,490 | |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,297,228 | | | $ | 108,603,746 | | | | 20,978,750 | | | $ | 426,127,765 | |
| Dividends reinvested | | | 497,619 | | | | 10,524,647 | | | | 146,344 | | | | 2,541,988 | |
| Shares redeemed | | | (6,628,572 | ) | | | (132,869,687 | ) | | | (16,437,079 | ) | | | (330,681,997 | ) |
| Net increase (decrease) | | | (833,725 | ) | | $ | (13,741,294 | ) | | | 4,688,015 | | | $ | 97,987,756 | |
| Class Y: | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,521,512 | | | $ | 118,694,816 | | | | 3,807,324 | | | $ | 82,404,302 | |
| Dividends reinvested | | | 133,682 | | | | 2,868,815 | | | | 7,242 | | | | 127,601 | |
| Shares redeemed | | | (1,728,075 | ) | | | (35,895,413 | ) | | | (571,021 | ) | | | (12,173,701 | ) |
| Net increase | | | 3,927,119 | | | $ | 85,668,218 | | | | 3,243,545 | | | $ | 70,358,202 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 37,291,967 | | | $ | 769,478,808 | | | | 84,385,806 | | | $ | 1,736,307,318 | |
| Dividends reinvested | | | 2,555,372 | | | | 54,838,281 | | | | 488,759 | | | | 8,611,931 | |
| Shares redeemed | | | (28,654,719 | ) | | | (582,310,822 | ) | | | (34,394,271 | ) | | | (701,365,500 | ) |
| Net increase | | | 11,192,620 | | | $ | 242,006,267 | | | | 50,480,294 | | | $ | 1,043,553,749 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger International Focus Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 134,707 | | | $ | 2,028,409 | | | | 232,258 | | | $ | 3,367,227 | |
| Shares converted from Class B | | | 376,951 | | | | 5,919,318 | | | | 646,187 | | | | 9,281,241 | |
| Shares converted from Class C | | | 1,135 | | | | 17,481 | | | | 7,673 | | | | 112,382 | |
| Dividends reinvested | | | 262,938 | | | | 4,167,568 | | | | 199,154 | | | | 2,563,105 | |
| Shares redeemed | | | (727,797 | ) | | | (11,410,881 | ) | | | (1,446,047 | ) | | | (20,773,744 | ) |
| Net increase (decrease) | | | 47,934 | | | $ | 721,895 | | | | (360,775 | ) | | $ | (5,449,789 | ) |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 417,856 | | | $ | 5,925,466 | | | | 692,182 | | | $ | 8,548,811 | |
| Shares converted to Class A | | | (434,851 | ) | | | (5,919,318 | ) | | | (745,819 | ) | | | (9,281,241 | ) |
| Dividends reinvested | | | 55,970 | | | | 767,911 | | | | 36,342 | | | | 405,944 | |
| Shares redeemed | | | (80,629 | ) | | | (1,063,096 | ) | | | (94,543 | ) | | | (1,186,449 | ) |
| Net decrease | | | (41,654 | ) | | $ | (289,037 | ) | | | (111,838 | ) | | $ | (1,512,935 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 14,600 | | | $ | 197,078 | | | | 19,353 | | | $ | 232,779 | |
| Shares converted to Class A | | | (1,344 | ) | | | (17,481 | ) | | | (9,057 | ) | | | (112,382 | ) |
| Dividends reinvested | | | 8,313 | | | | 111,390 | | | | 6,179 | | | | 67,724 | |
| Shares redeemed | | | (45,716 | ) | | | (582,254 | ) | | | (132,169 | ) | | | (1,600,292 | ) |
| Net decrease | | | (24,147 | ) | | $ | (291,267 | ) | | | (115,694 | ) | | $ | (1,412,171 | ) |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 7,286 | | | $ | 101,946 | | | | 11,775 | | | $ | 168,474 | |
| Dividends reinvested | | | 2,418 | | | | 38,342 | | | | 4,470 | | | | 57,531 | |
| Shares redeemed | | | (19,932 | ) | | | (286,612 | ) | | | (104,424 | ) | | | (1,502,128 | ) |
| Net decrease | | | (10,228 | ) | | $ | (146,324 | ) | | | (88,179 | ) | | $ | (1,276,123 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 27,527 | | | $ | 433,602 | | | | 116,704 | | | $ | 1,664,093 | |
| Dividends reinvested | | | 35,503 | | | | 567,345 | | | | 34,224 | | | | 443,891 | |
| Shares redeemed | | | (454,354 | ) | | | (6,461,971 | ) | | | (302,144 | ) | | | (4,329,017 | ) |
| Net decrease | | | (391,324 | ) | | $ | (5,461,024 | ) | | | (151,216 | ) | | $ | (2,221,033 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FOR THE SIX MONTHS ENDED | | | FOR THE YEAR ENDED | |
| | | APRIL 30, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Health Sciences Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 414,819 | | | $ | 11,046,979 | | | | 1,092,551 | | | $ | 29,383,122 | |
| Shares converted from Class C | | | 5,876 | | | | 154,020 | | | | 31,125 | | | | 847,116 | |
| Dividends reinvested | | | 248,077 | | | | 6,740,256 | | | | 316,696 | | | | 7,721,044 | |
| Shares redeemed | | | (633,252 | ) | | | (16,814,991 | ) | | | (2,067,110 | ) | | | (53,963,326 | ) |
| Net increase (decrease) | | | 35,520 | | | $ | 1,126,264 | | | | (626,738 | ) | | $ | (16,012,044 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 74,190 | | | $ | 1,489,202 | | | | 110,814 | | | $ | 2,331,623 | |
| Shares converted to Class A | | | (7,738 | ) | | | (154,020 | ) | | | (40,088 | ) | | | (847,116 | ) |
| Dividends reinvested | | | 43,515 | | | | 889,878 | | | | 59,612 | | | | 1,126,072 | |
| Shares redeemed | | | (133,584 | ) | | | (2,606,385 | ) | | | (283,916 | ) | | | (5,940,846 | ) |
| Net decrease | | | (23,617 | ) | | $ | (381,325 | ) | | | (153,578 | ) | | $ | (3,330,267 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,571,358 | | | $ | 64,197,207 | | | | 2,540,997 | | | $ | 68,194,857 | |
| Dividends reinvested | | | 201,739 | | | | 5,507,481 | | | | 154,247 | | | | 3,768,246 | |
| Shares redeemed | | | (871,047 | ) | | | (23,271,212 | ) | | | (1,861,957 | ) | | | (49,112,744 | ) |
| Net increase | | | 1,902,050 | | | $ | 46,433,476 | | | | 833,287 | | | $ | 22,850,359 | |
* Inception date 6/14/19.
NOTE 7 — Income Tax Information:
At October 31, 2019, Alger 35 Fund, Alger Mid Cap Focus Fund and Alger International Focus Fund, for federal income tax purposes, had capital loss carryforwards of $44,015, $1,420,139 and $17,728,212, respectively.
Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Funds 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, nondeductible expenses on dividends sold short, the tax treatment of partnership investments, the realization of unrealized appreciation of passive foreign investment companies, and return of capital from real estate investment trust investments.
NOTE 8 — Fair Value Measurements:
The following is a summary of the inputs used as of April 30, 2020 in valuing the Funds’ investments carried at fair value on a recurring basis. Based upon the nature, characteristics, and risks associated with their investments, the Funds have determined that presenting them by security type and sector is appropriate.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| Alger Capital Appreciation Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 348,729,540 | | | $ | 340,891,758 | | | $ | 7,837,782 | | | $ | — | |
| Consumer Discretionary | | | 566,596,830 | | | | 558,681,904 | | | | 1,977,925 | | | | 5,937,001 | |
| Consumer Staples | | | 28,474,324 | | | | 28,474,324 | | | | — | | | | — | |
| Financials | | | 123,970,604 | | | | 123,970,604 | | | | — | | | | — | |
| Healthcare | | | 394,001,760 | | | | 394,001,760 | | | | — | | | | — | |
| Industrials | | | 114,172,636 | | | | 114,172,636 | | | | — | | | | — | |
| Information Technology | | | 1,161,394,839 | | | | 1,160,513,468 | | | | — | | | | 881,371 | |
| Materials | | | 54,394,431 | | | | 54,394,431 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 2,791,734,964 | | | $ | 2,775,100,885 | | | $ | 9,815,707 | | | $ | 6,818,372 | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Information Technology | | | 4,062,807 | | | | — | | | | — | | | | 4,062,807 | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 38,354,872 | | | | 38,354,872 | | | | — | | | | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 2,834,152,643 | | | $ | 2,813,455,757 | | | $ | 9,815,707 | | | $ | 10,881,179 | |
| Alger 25 Fund | | | TOTAL | | | | LEVEL 1 | | | | LEVEL 2 | | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | | 1,773,450 | | | | 1,773,450 | | | | — | | | | — | |
| Consumer Discretionary | | | 3,503,736 | | | | 3,503,736 | | | | — | | | | — | |
| Financials | | | 1,405,640 | | | | 1,405,640 | | | | — | | | | — | |
| Healthcare | | | 1,054,033 | | | | 1,054,033 | | | | — | | | | — | |
| Industrials | | | 661,217 | | | | 661,217 | | | | — | | | | — | |
| Information Technology | | | 7,842,690 | | | | 7,842,690 | | | | — | | | | — | |
| Materials | | | 549,243 | | | | 549,243 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 16,790,009 | | | $ | 16,790,009 | | | $ | — | | | $ | — | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 681,244 | | | | 681,244 | | | | — | | | | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 17,471,253 | | | $ | 17,471,253 | | | $ | — | | | $ | — | |
| Alger 35 Fund | | | TOTAL | | | | LEVEL 1 | | | | LEVEL 2 | | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | | 618,694 | | | | 618,694 | | | | — | | | | — | |
| Consumer Discretionary | | | 2,220,700 | | | | 2,220,700 | | | | — | | | | — | |
| Consumer Staples | | | 394,869 | | | | 394,869 | | | | — | | | | — | |
| Financials | | | 289,398 | | | | 289,398 | | | | — | | | | — | |
| Healthcare | | | 1,482,992 | | | | 1,482,992 | | | | — | | | | — | |
| Industrials | | | 496,822 | | | | 496,822 | | | | — | | | | — | |
| Information Technology | | | 4,133,467 | | | | 4,133,467 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 9,636,942 | | | $ | 9,636,942 | | | $ | — | | | $ | — | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 377,211 | | | | 377,211 | | | | — | | | | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 10,014,153 | | | $ | 10,014,153 | | | $ | — | | | $ | — | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| Alger Growth & Income Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 11,962,473 | | | $ | 11,962,473 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 8,352,543 | | | | 8,352,543 | | | | — | | | | — | |
| Consumer Staples | | | 8,541,864 | | | | 8,541,864 | | | | — | | | | — | |
| Energy | | | 3,404,197 | | | | 3,404,197 | | | | — | | | | — | |
| Financials | | | 13,071,360 | | | | 13,071,360 | | | | — | | | | — | |
| Healthcare | | | 16,575,290 | | | | 16,575,290 | | | | — | | | | — | |
| Industrials | | | 6,092,789 | | | | 6,092,789 | | | | — | | | | — | |
| Information Technology | | | 23,983,305 | | | | 23,983,305 | | | | — | | | | — | |
| Materials | | | 1,614,482 | | | | 1,614,482 | | | | — | | | | — | |
| Utilities | | | 1,554,099 | | | | 1,554,099 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 95,152,402 | | | $ | 95,152,402 | | | $ | — | | | $ | — | |
| MASTER LIMITED PARTNERSHIP | | | | | | | | | | | | | | | | |
| Energy | | | 581,843 | | | | 581,843 | | | | — | | | | — | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Financials | | | 593,638 | | | | 593,638 | | | | — | | | | — | |
| Real Estate | | | 4,294,503 | | | | 4,294,503 | | | | — | | | | — | |
| TOTAL REAL ESTATE INVESTMENT TRUST | | $ | 4,888,141 | | | $ | 4,888,141 | | | $ | — | | | $ | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 100,622,386 | | | $ | 100,622,386 | | | $ | — | | | $ | — | |
| Alger Mid Cap Growth Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | | 6,754,532 | | | | 6,754,532 | | | | — | | | | — | |
| Consumer Discretionary | | | 26,714,462 | | | | 26,714,462 | | | | — | | | | — | |
| Consumer Staples | | | 4,390,687 | | | | 4,390,687 | | | | — | | | | — | |
| Financials | | | 9,917,126 | | | | 9,917,126 | | | | — | | | | — | |
| Healthcare | | | 34,617,622 | | | | 33,192,102 | | | | 438,299 | | | | 987,221 | |
| Industrials | | | 22,102,809 | | | | 22,102,809 | | | | — | | | | — | |
| Information Technology | | | 51,209,841 | | | | 51,115,679 | | | | — | | | | 94,162 | |
| Materials | | | 3,251,601 | | | | 3,251,601 | | | | — | | | | — | |
| Real Estate | | | 1,375,583 | | | | 1,375,583 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 160,334,263 | | | $ | 158,814,581 | | | $ | 438,299 | | | $ | 1,081,383 | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 173,492 | | | | — | | | | — | | | | 173,492 | |
| Information Technology | | | 434,056 | | | | — | | | | — | | | | 434,056 | |
| TOTAL PREFERRED STOCKS | | $ | 607,548 | | | $ | — | | | $ | — | | | $ | 607,548 | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 1,829,183 | | | | — | | | | — | | | | 1,829,183 | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 7,864,597 | | | | 7,864,597 | | | | — | | | | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 170,635,591 | | | $ | 166,679,169 | | | $ | 438,299 | | | $ | 3,518,123 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| Alger Mid Cap Focus Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 1,106,289 | | | $ | 1,106,289 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 8,460,691 | | | | 8,460,691 | | | | — | | | | — | |
| Financials | | | 2,869,845 | | | | 2,869,845 | | | | — | | | | — | |
| Healthcare | | | 18,889,993 | | | | 18,889,993 | | | | — | | | | — | |
| Industrials | | | 3,969,776 | | | | 3,969,776 | | | | — | | | | — | |
| Information Technology | | | 14,752,462 | | | | 14,752,462 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 50,049,056 | | | $ | 50,049,056 | | | $ | — | | | $ | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 50,049,056 | | | $ | 50,049,056 | | | $ | — | | | $ | — | |
| Alger Weatherbie Specialized | | | | | | | | | | | | |
| Growth Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Consumer Discretionary | | | 95,644,878 | | | | 95,644,878 | | | | — | | | | — | |
| Financials | | | 41,285,861 | | | | 41,285,861 | | | | — | | | | — | |
| Healthcare | | | 171,794,393 | | | | 171,794,393 | | | | — | | | | — | |
| Industrials | | | 61,860,109 | | | | 61,860,109 | | | | — | | | | — | |
| Information Technology | | | 198,018,009 | | | | 198,018,009 | | | | — | | | | — | |
| Real Estate | | | 32,061,613 | | | | 32,061,613 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 600,664,863 | | | $ | 600,664,863 | | | $ | — | | | $ | — | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 182,864 | | | | — | | | | — | | | | 182,864 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 600,847,727 | | | $ | 600,664,863 | | | $ | — | | | $ | 182,864 | |
| Alger Small Cap Growth Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | | 3,583,875 | | | | 3,583,875 | | | | — | | | | — | |
| Consumer Discretionary | | | 10,987,116 | | | | 10,987,116 | | | | — | | | | — | |
| Consumer Staples | | | 1,765,217 | | | | 1,765,217 | | | | — | | | | — | |
| Energy | | | 972,292 | | | | 972,292 | | | | — | | | | — | |
| Financials | | | 5,975,813 | | | | 5,975,813 | | | | — | | | | — | |
| Healthcare | | | 76,275,144 | | | | 76,275,144 | | | | — | | | | — | |
| Industrials | | | 4,255,429 | | | | 4,255,429 | | | | — | | | | — | |
| Information Technology | | | 48,990,918 | | | | 48,990,918 | | | | — | | | | — | |
| Materials | | | 2,554,227 | | | | 2,554,227 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 155,360,031 | | | $ | 155,360,031 | | | $ | — | | | $ | — | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 40,044 | | | | — | | | | — | | | | 40,044 | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 541,824 | | | | — | | | | — | | | | 541,824 | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 5,513,191 | | | | 5,513,191 | | | �� | — | | | | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 161,455,090 | | | $ | 160,873,222 | | | $ | — | | | $ | 581,868 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| Alger Small Cap Focus Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Consumer Discretionary | | $ | 267,841,560 | | | $ | 267,841,560 | | | $ | — | | | $ | — | |
| Financials | | | 66,562,234 | | | | 66,562,234 | | | | — | | | | — | |
| Healthcare | | | 1,960,323,465 | | | | 1,960,323,465 | | | | — | | | | — | |
| Industrials | | | 140,221,219 | | | | 140,221,219 | | | | — | | | | — | |
| Information Technology | | | 1,342,709,565 | | | | 1,342,709,565 | | | | — | | | | — | |
| Materials | | | 45,170,879 | | | | 45,170,879 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 3,822,828,922 | | | $ | 3,822,828,922 | | | $ | — | | | $ | — | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 36,906 | | | | — | | | | — | | | | 36,906 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 3,822,865,828 | | | $ | 3,822,828,922 | | | $ | — | | | $ | 36,906 | |
| Alger International Focus Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | | 7,125,357 | | | | — | | | | 7,125,357 | | | | — | |
| Consumer Discretionary | | | 21,487,464 | | | | 10,869,750 | | | | 10,617,714 | | | | — | |
| Consumer Staples | | | 6,629,433 | | | | 3,503,657 | | | | 3,125,776 | | | | — | |
| Energy | | | 1,630,944 | | | | — | | | | 1,630,944 | | | | — | |
| Financials | | | 12,410,803 | | | | 3,273,205 | | | | 9,137,598 | | | | — | |
| Healthcare | | | 18,512,111 | | | | 3,194,022 | | | | 15,318,089 | | | | — | |
| Industrials | | | 15,742,053 | | | | — | | | | 15,742,053 | | | | — | |
| Information Technology | | | 27,073,115 | | | | 5,534,130 | | | | 21,538,985 | | | | — | |
| Materials | | | 6,244,633 | | | | 3,268,038 | | | | 2,976,595 | | | | — | |
| TOTAL COMMON STOCKS | | $ | 116,855,913 | | | $ | 29,642,802 | | | $ | 87,213,111 | | | $ | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 116,855,913 | | | $ | 29,642,802 | | | $ | 87,213,111 | | | $ | — | |
| Alger Health Sciences Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Consumer Discretionary | | | 259,440 | | | | 259,440 | | | | — | | | | — | |
| Financials | | | 2,511,078 | | | | 2,511,078 | | | | — | | | | — | |
| Healthcare | | | 239,689,849 | | | | 234,116,255 | | | | 4,492,613 | | | | 1,080,981 | |
| TOTAL COMMON STOCKS | | $ | 242,460,367 | | | $ | 236,886,773 | | | $ | 4,492,613 | | | $ | 1,080,981 | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 708,919 | | | | — | | | | — | | | | 708,919 | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 6,595,003 | | | | 528,315 | | | | — | | | | 6,066,688 | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 1,570,900 | | | | 1,570,900 | | | | — | | | | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 251,335,189 | | | $ | 238,985,978 | | | $ | 4,492,613 | | | $ | 7,856,598 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Capital Appreciation Fund | | Common Stocks | |
| Opening balance at November 1, 2019 | | $ | 6,002,522 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | 815,850 | |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 6,818,372 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | 815,850 | |
| Alger Capital Appreciation Fund | | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 4,062,807 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | — | |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 4,062,807 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | — | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Mid Cap Growth Fund | | Common Stocks | |
| Opening balance at November 1, 2019 | | $ | 94,162 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | — | |
| Purchases and sales | | | | |
| Purchases | | | 987,221 | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 1,081,383 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | — | |
| | | | | |
| Alger Mid Cap Growth Fund | | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 666,843 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (59,295 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 607,548 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (59,295 | ) |
| | | | | |
| Alger Mid Cap Growth Fund | | | Rights | |
| Opening balance at November 1, 2019 | | $ | 1,905,891 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (76,708 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 1,829,183 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (76,708 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Weatherbie Specialized Growth Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 245,362 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (62,498 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 182,864 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (62,498 | ) |
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Small Cap Growth Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 53,729 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (13,685 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 40,044 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (13,685 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Small Cap Growth Fund | | Rights | |
| Opening balance at November 1, 2019 | | $ | 564,546 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (22,722 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 541,824 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (22,722 | ) |
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Small Cap Focus Fund | | Rights | |
| Opening balance at November 1, 2019 | | $ | 38,453 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (1,547 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 36,906 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (1,547 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Health Sciences Fund | | Common Stocks | |
| Opening balance at November 1, 2019 | | $ | — | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | — | |
| Purchases and sales | | | | |
| Purchases | | | 1,080,981 | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 1,080,981 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | — | |
| Alger Health Sciences Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 951,208 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (242,289 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 708,919 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (242,289 | ) |
| Alger Health Sciences Fund | | Rights | |
| Opening balance at November 1, 2019 | | $ | 6,321,097 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (254,409 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at April 30, 2020 | | | 6,066,688 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at April 30, 2020* | | $ | (254,409 | ) |
* Net change in unrealized appreciation (depreciation) is included in net change in unrealized appreciation (depreciation) on investments in the accompanying statement of operations.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The following table provides quantitative information about each Fund’s Level 3 fair value measurements of the Funds’ investments as of April 30, 2020. The table below is not intended to be all-inclusive, but rather provides information on the Level 3 inputs as they relate to the Funds’ fair value measurements.
| | | Fair Value | | | Valuation | | | Unobservable | | | | | Weighted
Average | |
| | | April 30, 2020 | | | Methodology | | | Input | | Input/Range | | | Inputs | |
| Alger Capital Appreciation Fund | | | | | | | | | | | | | | | | | | |
| Common Stocks | | $ | 881,371 | | | | Market Approach | | | Transaction Price | | | N/A | | | | N/A | |
| Common Stocks | | | 5,937,001 | | | | Income Approach | | | Discount Rate | | | 2.40%-11.30% | | | | N/A | |
| Preferred Stocks | | | 4,062,807 | | | | Market Approach | | | Transaction Price | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | | | |
| Common Stocks | | $ | 1,081,383 | | | | Market Approach | | | Transaction Price | | | N/A | | | | N/A | |
| Preferred Stocks | | | 434,056 | | | | Market Approach | | | Transaction Price | | | N/A | | | | N/A | |
| Preferred Stocks | | | 173,492 | | | | Income Approach | | | Discount Rate | | | 55.00%-60.00% | | | | N/A | |
| Rights | | | 1,829,183 | | | | Income Approach | | | Discount Rate | | | 4.24%-5.10% | | | | N/A | |
| | | | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | $ | 182,864 | | | | Income Approach | | | Discount Rate | | | 55.00%-60.00% | | | | N/A | |
| | | | | | | | | | | | | | | | | | | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | $ | 40,044 | | | | Income Approach | | | Discount Rate | | | 55.00%-60.00% | | | | N/A | |
| Rights | | | 541,824 | | | | Income Approach | | | Discount Rate | | | 4.24%-5.10% | | | | N/A | |
| | | | | | | | | | | | | | | | | | | |
| Alger Small Cap Focus Fund | | | | | | | | | | | | | | | | | | |
| Rights | | $ | 36,906 | | | | Income Approach | | | Discount Rate | | | 4.24%-5.10% | | | | N/A | |
| | | | | | | | | | | | | | | | | | | |
| Alger Health Sciences Fund | | | | | | | | | | | | | | | | | | |
| Common Stocks | | $ | 1,080,981 | | | | Market Approach | | | Transaction Price | | | N/A | | | | N/A | |
| Preferred Stocks | | | 708,919 | | | | Income Approach | | | Discount Rate | | | 55.00%-60.00% | | | | N/A | |
| Rights | | | 6,066,688 | | | | Income Approach | | | Discount Rate | | | 4.24%-5.10% | | | | N/A | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 result in higher fair value measurements, whereas decreases in revenues and EBITDA multiples, increases in discount rates, and decreases in the probabilities of success result in lower fair value measurements.
Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statements purposes. As of April 30, 2020, such assets were categorized within the ASC 820 disclosure hierarchy as follows:
| | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| Cash, foreign cash and cash equivalents: | | | | | | | | | | | | | | | | |
| Alger Capital Appreciation Fund | | $ | 21,533,455 | | | $ | – | | | $ | 21,533,455 | | | $ | – | |
| Alger 25 Fund | | | 761,152 | | | | – | | | | 761,152 | | | | – | |
| Alger 35 Fund | | | 661,347 | | | | – | | | | 661,347 | | | | – | |
| Alger Growth & Income Fund | | | 722,020 | | | | – | | | | 722,020 | | | | – | |
| Alger Mid Cap Growth Fund | | | 1,959,678 | | | | – | | | | 1,959,678 | | | | – | |
| Alger Mid Cap Focus Fund | | | 8,069,203 | | | | – | | | | 8,069,203 | | | | – | |
| Alger Weatherbie Specialized Growth Fund | | | 26,106,800 | | | | – | | | | 26,106,800 | | | | – | |
| Alger Small Cap Growth Fund | | | 13,328,979 | | | | – | | | | 13,328,979 | | | | – | |
| Alger Small Cap Focus Fund | | | 420,202,586 | | | | – | | | | 420,202,586 | | | | – | |
| Alger International Focus Fund | | | 4,086,124 | | | | 16,122 | | | | 4,070,002 | | | | – | |
| Alger Health Sciences Fund | | | 4,983,752 | | | | – | | | | 4,983,752 | | | | – | |
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.
Options—Certain Funds seek to capture the majority of the returns associated with equity market investments. To meet this investment goal, these Funds invest in a broadly diversified portfolio of common stocks, while also buying and selling call and put options on equities and equity indexes. The Funds purchase call options to increase their exposure to the stock market and also provide diversification of risk. The Funds purchase put options in order to protect from significant market declines that may occur over a short period of time. The Funds will write covered call and cash secured put options to generate cash flows while reducing the volatility of the Funds’ portfolios. The cash flows may be an important source of the Funds’ returns, although written call options may reduce the Funds’ ability to profit from increases in the value of the underlying security or equity portfolio. The value of a call option generally increases as the price of the underlying stock increases and decreases as the stock decreases in price. Conversely, the value of a put option generally increases as the price of the underlying stock decreases and decreases as the stock increases in price.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The combination of the diversified stock portfolio and the purchase and sale of options is intended to provide the Funds with the majority of the returns associated with equity market investments but with reduced volatility and returns that are augmented with the cash flows from the sale of options. During the six months ended April 30, 2020, options were used in accordance with these objectives.
The Funds’ option contracts were not subject to any rights of offset with any counterparty. All of the Funds’ options were exchange traded which utilize a clearinghouse that acts as an intermediary between buyer and seller, receiving initial and maintenance margin from both, and guaranteeing performance of the option contract. The purchased options included on the Statements of Assets and Liabilities are exchange traded and not subject to offsetting.
Forward Foreign Currency Contracts—In connection with portfolio purchases and sales of securities denominated in foreign currencies, the Funds may enter into forward foreign currency contracts. Additionally, each Fund may enter into such contracts to economically hedge certain other foreign currency denominated investments. These contracts are valued at the current cost of covering or offsetting such contracts and the related realized and unrealized foreign exchange gains and losses are included in the Statements of Operations. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations.
The Funds’ Forward Foreign Currency Contracts were not subject to any right of offset with any Counterparty.
There were no open derivative instruments as of April 30, 2020.
NOTE 10 — Principal Risks:
Alger Capital Appreciation Fund — Investing in the stock market involves risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumer’s disposable income, consumer preferences and social trends. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger 25 Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumer’s disposable income, consumer preferences and social trends. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger 35 Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger Growth & Income Fund — Investing in the stock market involves risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Income-producing securities may cut or fail to declare dividends due to market downturns or for other reasons.
Alger Mid Cap Growth Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger Mid Cap Focus Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Investing in companies of medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Weatherbie Specialized Growth Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign and Emerging Market securities involve special risks including currency risk and risks related to political, social, or economic conditions.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger Small Cap Growth Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign and Emerging Market securities involve special risks including currency risk and risks related to political, social, or economic conditions.
Alger Small Cap Focus Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger International Focus Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign and emerging Markets securities involves special risks including currency fluctuations, less liquidity, inefficient trading, political instability, and increased volatility. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger Health Sciences Fund — Investing in the stock market involves risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Private placements are offerings of a company’s securities not registered with the SEC and not offered to the public, for which limited information may be available. Such investments are generally considered to be illiquid. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
NOTE 11 — Affiliated Securities:
The issuers of the securities listed below are deemed to be affiliates of the Funds because the Funds or their affiliates owned 5% or more of the issuer’s voting securities during all or part of the six months ended April 30, 2020. Purchase and sale transactions, interest income and dividend income earned during the period were as follows:
| | | | | | | | | | | | | | | Net Increase | | | |
| | | Shares/ | | | | | | Shares/ | | | | | | (Decrease) | | | |
| | | Par at | | | | | | Par at | | Dividend/ | | | | in | | Value at | |
| | | October 31, | | Purchases/ | | Sales/ | | April 30, | | Interest | | Realized | | Unrealized | | April 30, | |
| Security | | 2019 | | Conversion | | Conversion | | 2020 | | Income | | Gain (Loss) | | App(Dep) | | 2020 | |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | 219,610 | | – | | – | | 219,610 | | – | | – | | $ | (59,295 | ) | $ | 173,492 | |
| Total | | | | | | | | | | – | | – | | $ | (59,295 | ) | $ | 173,492 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| | | | | | | | | | | | | | | Net Increase | | | |
| | | Shares/ | | | | | | Shares/ | | | | | | (Decrease) | | | |
| | | Par at | | | | | | Par at | | Dividend/ | | | | in | | Value at | |
| | | October 31, | | Purchases/ | | Sales/ | | April 30, | | Interest | | Realized | | Unrealized | | April 30, | |
| Security | | 2019 | | Conversion | | Conversion | | 2020 | | Income | | Gain (Loss) | | App(Dep) | | 2020 | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | 231,474 | | – | | – | | 231,474 | | – | | – | | $ | (62,498 | ) | $ | 182,864 | |
| Total | | | | | | | | | | – | | – | | $ | (62,498 | ) | $ | 182,864 | |
| | | | | | | | | | | | | | | Net Increase | | | |
| | | Shares/ | | | | | | Shares/ | | | | | | (Decrease) | | | |
| | | Par at | | | | | | Par at | | Dividend/ | | | | in | | Value at | |
| | | October 31, | | Purchases/ | | Sales/ | | April 30, | | Interest | | Realized | | Unrealized | | April 30, | |
| Security | | 2019 | | Conversion | | Conversion | | 2020 | | Income | | Gain (Loss) | | App(Dep) | | 2020 | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | 50,688 | | – | | – | | 50,688 | | – | | – | | $ | (13,685 | ) | $ | 40,044 | |
| Total | | | | | | | | | | – | | – | | $ | (13,685 | ) | $ | 40,044 | |
| | | | | | | | | | | | | | | Net Increase | | | |
| | | Shares/ | | | | | | Shares/ | | | | | | (Decrease) | | | |
| | | Par at | | | | | | Par at | | Dividend/ | | | | in | | Value at | |
| | | October 31, | | Purchases/ | | Sales/ | | April 30, | | Interest | | Realized | | Unrealized | | April 30, | |
| Security | | 2019 | | Conversion | | Conversion | | 2020 | | Income | | Gain (Loss) | | App(Dep) | | 2020 | |
| Alger Health Sciences Fund | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | 897,366 | | – | | – | | 897,366 | | – | | – | | $ | (242,289 | ) | $ | 708,919 | |
| Total | | | | | | | | | | – | | – | | $ | (242,289 | ) | $ | 708,919 | |
NOTE 12 — Subsequent Events:
Management of each Fund has evaluated events that have occurred subsequent to April 30, 2020, through the issuance date of the Financial Statements. No such events have been identified which require recognition and/or disclosure other than the conversion of the Alger Capital Appreciation Fund Class B shares to Alger Capital Appreciation Fund Class A shares effective June 1, 2020.
THE ALGER FUNDS
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, 2019 and ending April 30, 2020.
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 Six Months Ended April 30, 2020” 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.
THE ALGER FUNDS
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, 2019 | | April 30, 2020 | | April 30, 2020(a) | | April 30, 2020(b) | |
| Alger Capital Appreciation Fund | | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 1,037.40 | | $ | 6.08 | | 1.20 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.90 | | 6.02 | | 1.20 | |
| Class B | Actual | | | 1,000.00 | | | 1,041.60 | | 10.00 | | 1.97 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,015.07 | | 9.87 | | 1.97 | |
| Class C | Actual | | | 1,000.00 | | | 1,081.20 | | 9.94 | | 1.92 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,015.32 | | 9.62 | | 1.92 | |
| Class Z | Actual | | | 1,000.00 | | | 1,096.70 | | 4.43 | | 0.85 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.64 | | 4.27 | | 0.85 | |
| | | | | | | | | | | | | |
| Alger 25 Fund | | | | | | | | | | | |
| Class P | Actual | | $ | 1,000.00 | | $ | 1,103.00 | | $ | 4.71 | | 0.90 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.39 | | 4.52 | | 0.90 | |
| Class P-2 | Actual | | | 1,000.00 | | | 1,103.10 | | 5.18 | | 0.99 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.94 | | 4.97 | | 0.99 | |
| | | | | | | | | | | | | |
| Alger 35 Fund | | | | | | | | | | | | |
| Class P | Actual | | $ | 1,000.00 | | $ | 1,138.10 | | $ | 4.78 | | 0.90 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.39 | | 4.52 | | 0.90 | |
| Class P-2 | Actual | | | 1,000.00 | | | 1,136.40 | | 5.63 | | 1.06 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.59 | | 5.32 | | 1.06 | |
| | | | | | | | | | | | | |
| Alger Growth & Income Fund | | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 905.80 | | $ | 4.98 | | 1.05 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.64 | | 5.27 | | 1.05 | |
| Class C | Actual | | | 1,000.00 | | | 942.80 | | 8.69 | | 1.80 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,015.91 | | 9.02 | | 1.80 | |
| Class Z | Actual | | | 1,000.00 | | | 957.40 | | 3.31 | | 0.68 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,021.48 | | 3.42 | | 0.68 | |
| | | | | | | | | | | | | |
| Alger Mid Cap Growth Fund | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 977.10 | | $ | 6.69 | | 1.36 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.10 | | 6.82 | | 1.36 | |
| Class B | Actual | | | 1,000.00 | | | 984.80 | | 6.37 | | 1.29 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.45 | | 6.47 | | 1.29 | |
| Class C | Actual | | | 1,000.00 | | | 1,017.90 | | 10.99 | | 2.19 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,013.97 | | 10.97 | | 2.19 | |
| Class Z | Actual | | | 1,000.00 | | | 1,032.80 | | 5.21 | | 1.03 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.74 | | 5.17 | | 1.03 | |
THE ALGER FUNDS
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, 2019 | | April 30, 2020 | | April 30, 2020(a) | | April 30, 2020(b) | |
| Alger Mid Cap Focus Fund | | | | | | | | | | | |
| Class I | Actual | | $ | 1,000.00 | | $ | 1,143.00 | | $ | 6.39 | | 1.20 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.90 | | 6.02 | | 1.20 | |
| Class Z | Actual | | | 1,000.00 | | | 1,143.90 | | 5.22 | | 0.98 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.99 | | 4.92 | | 0.98 | |
| | | | | | | | | | | | | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 1,012.20 | | $ | 6.45 | | 1.29 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.45 | | 6.47 | | 1.29 | |
| Class C | Actual | | | 1,000.00 | | | 1,054.30 | | 10.42 | | 2.04 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,014.72 | | 10.22 | | 2.04 | |
| Class I | Actual | | | 1,000.00 | | | 1,069.00 | | 6.48 | | 1.26 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.60 | | 6.32 | | 1.26 | |
| Class Y | Actual | | | 1,000.00 | | | 1,070.60 | | 4.48 | | 0.87 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.54 | | 4.37 | | 0.87 | |
| Class Z | Actual | | | 1,000.00 | | | 1,070.10 | | 4.89 | | 0.95 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.14 | | 4.77 | | 0.95 | |
| | | | | | | | | | | | | |
| Alger Small Cap Growth Fund | | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 1,048.90 | | $ | 7.13 | | 1.40 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,017.90 | | 7.02 | | 1.40 | |
| Class B | Actual | | | 1,000.00 | | | 1,057.10 | | 7.47 | | 1.46 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,017.60 | | 7.32 | | 1.46 | |
| Class C | Actual | | | 1,000.00 | | | 1,093.50 | | 11.45 | | 2.20 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,013.92 | | 11.02 | | 2.20 | |
| Class Z | Actual | | | 1,000.00 | | | 1,110.00 | | 5.19 | | 0.99 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.94 | | 4.97 | | 0.99 | |
| | | | | | | | | | | | | |
| Alger Small Cap Focus Fund | | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 1,025.70 | | $ | 6.50 | | 1.29 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.45 | | 6.47 | | 1.29 | |
| Class C | Actual | | | 1,000.00 | | | 1,068.80 | | 10.13 | | 1.97 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,015.07 | | 9.87 | | 1.97 | |
| Class I | Actual | | | 1,000.00 | | | 1,083.20 | | 6.06 | | 1.17 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.05 | | 5.87 | | 1.17 | |
| Class Y | Actual | | | 1,000.00 | | | 1,085.10 | | 4.41 | | 0.85 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.64 | | 4.27 | | 0.85 | |
| Class Z | Actual | | | 1,000.00 | | | 1,085.00 | | 4.41 | | 0.85 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.64 | | 4.27 | | 0.85 | |
THE ALGER FUNDS
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, 2019 | | April 30, 2020 | | April 30, 2020(a) | | April 30, 2020(b) | |
| Alger International Focus Fund | | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 909.60 | | $ | 6.55 | | 1.38 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.00 | | 6.92 | | 1.38 | |
| Class B | Actual | | | 1,000.00 | | | 913.90 | | 5.85 | | 1.23 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,018.75 | | 6.17 | | 1.23 | |
| Class C | Actual | | | 1,000.00 | | | 946.60 | | 10.45 | | 2.16 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,014.12 | | 10.82 | | 2.16 | |
| Class I | Actual | | | 1,000.00 | | | 961.70 | | 5.12 | | 1.05 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.64 | | 5.27 | | 1.05 | |
| Class Z | Actual | | | 1,000.00 | | | 962.40 | | 4.29 | | 0.88 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,020.49 | | 4.42 | | 0.88 | |
| | | | | | | | | | | | | |
| Alger Health Sciences Fund | | | | | | | | | | | |
| Class A | Actual | | $ | 1,000.00 | | $ | 1,043.00 | | $ | 5.38 | | 1.06 | % |
| | Hypothetical(c) | | | 1,000.00 | | | 1,019.59 | | 5.32 | | 1.06 | |
| Class C | Actual | | | 1,000.00 | | | 1,086.80 | | 9.44 | | 1.82 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,015.81 | | 9.12 | | 1.82 | |
| Class Z | Actual | | | 1,000.00 | | | 1,102.80 | | 3.82 | | 0.73 | |
| | Hypothetical(c) | | | 1,000.00 | | | 1,021.23 | | 3.67 | | 0.73 | |
(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 182/366 (to reflect the one-half year period).
(b)Annualized.
(c)5% annual return before expenses.
THE ALGER FUNDS
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 —such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | | Yes | | | No |
| For our marketing purposes —to offer ourproducts and services to you | | Yes | | | No |
| For joint marketing with other financial companies | | No | | | We don’t share |
| For our affiliates’ everyday business purposes —information about your transactions and experiences | | Yes | | | No |
| For our affiliates’ everyday business purposes —information about your creditworthiness | | No | | | We don’t share |
| For nonaffiliates to market to you | | No | | | We don’t share |
| Questions? Call 1-800-342-2186 | | | | | |
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| Who we are | | |
| | | |
| Who is providing this notice? | | Alger includes Fred Alger Management, LLC and Fred Alger & Company, LLC as well as the following funds: The Alger Funds, The Alger Funds II, The Alger Institutional Funds, The Alger Portfolios, and Alger Global Focus Fund. |
| | | |
| What we do | | |
| | | |
| How does Alger protect my personal information? | | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| | | |
| How does Alger collect my personal information? | | We collect your personal information, for example, when you: ·Open an account or ·Make deposits or withdrawals from your account or ·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 limit some but not all sharing related to: |
| | | · 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, LLC, Weatherbie Capital, LLC and Fred Alger & Company, LLC as well as the following funds: The Alger Funds, The Alger Funds II, The Alger Institutional Funds, The Alger Portfolios, and Alger Global Focus 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. |
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Proxy Voting Policies
A description of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities and the proxy voting record is available, without charge, by calling (800) 992-3863 or online on the Funds’ website at http://www.alger.com or on the SEC’s website at http://www.sec.gov.
Fund Holdings
The Board of Trustees has adopted policies and procedures relating to disclosure of the Funds’ 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 Funds.
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 Funds’ shares and other parties which are not employed by the Investment Manager or its affiliates except when the legitimate business purposes for selective disclosure and other conditions (designed to protect the Funds) are acceptable.
The Funds make their complete schedules of portfolio holdings available semi-annually in shareholder reports filed on Form N-CSR and after the first and third fiscal quarters as an exhibit to their reports on Form N-PORT. Previously, the Funds made their complete schedules of portfolio holdings available after the first and third fiscal quarters in regulatory filings on Form N-Q. The Funds’ Forms N-CSR, N-PORT and N-Q are available online on the SEC’s website atwww.sec.gov.
In addition, the Funds make publicly available their respective month-end top 10 holdings with a 10 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 Funds provide portfolio holdings information to third parties including financial intermediaries and service providers who 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 Funds will communicate with these third parties to confirm that they understand the Funds’ policies and procedures regarding such disclosure. This agreement must be approved by the Trust’s Chief Compliance Officer.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
The Board of Trustees periodically reviews a report disclosing the third parties to whom each 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 Funds routinely provide to shareholders, the Investment Manager may make additional statistical information available regarding the Funds. Such information may include, but not be limited to, relative weightings and characteristics of a Fund versus 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, portfolio turnover, and other similar information. Shareholders should visit www.alger.com or may also contact the Funds at (800) 992-3863 to obtain such information.
Liquidity Risk Management Program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended, the Trust established a liquidity risk management program (the “LRMP”) in December 2018 and the Board, including a majority of the Independent Trustees, appointed the Investment Manager as the administrator of the LRMP. The Board, including a majority of the Independent Trustees, formally approved the LRMP in May of 2019. The Investment Manager administers the LRMP through a Liquidity Risk Committee (the “Committee”) that is chaired by the Investment Manager’s Chief Compliance Officer, who also serves as the Trust’s Chief Compliance Officer. The Board also approved an agreement with Intercontinental Exchange (“ICE”), a third-party vendor that assists the Funds with liquidity classifications required by Rule 22e-4. The Committee is responsible for assessing the liquidity risk of the Funds, subject to the oversight of the Investment Manager. The Committee reviews daily investment classification reports, continuously monitors the Funds’ liquidity risk, and meets at least quarterly.
The Board met to review the LRMP pursuant to Rule 22e-4 and at such meeting the Trust’s Chief Compliance Officer, on behalf of the Investment Manager as the administrator of the LRMP, provided the Board with a report that addressed the operation of the LRMP and assessed its adequacy and effectiveness of implementation and any material changes to the LRMP (the “Report”). The Report covered the period from December 1, 2018 through November 30, 2019 (the “Review Period”).
The Report stated that the Committee assessed each Fund’s liquidity risk by considering qualitative factors such as the Fund’s investment strategy, holdings, diversification of investments, redemption policies, cash flows, cash levels, shareholder concentration, and access to borrowings, among others, in conjunction with the quantitative classifications generated by ICE. In addition, in connection with the review of the Funds’ liquidity risks and the operation of the LRMP and the adequacy and effectiveness of its implementation, the Committee also evaluated the levels at which to set the reasonably anticipated trade size and market price impact. The Report described the process for determining that each Fund primarily holds investments that are highly liquid.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
The Report concluded during the Review Period that the Trust’s LRMP is operating effectively, and is adequate and effectively implemented.
THE ALGER FUNDS
360 Park Avenue South
New York, NY 10010
(800) 992-3863
www.alger.com
Investment Manager
Fred Alger Management, LLC
360 Park Avenue South
New York, NY 10010
Distributor
Fred Alger & Company, LLC
360 Park Avenue South
New York, NY 10010
Transfer Agent and Dividend Disbursing Agent
UMB Fund Services, Inc.
235 W. Galena Street
Milwaukee, WI 53212
Custodian
Brown Brothers Harriman & Company
50 Post Office Square
Boston, MA 02110
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, NY 10112
This report is submitted for the general information of the shareholders of The Alger Funds. It is not authorized for distribution to prospective investors unless accompanied by an effective Prospectus for the Trust, which contains information concerning the Trust’s investment policies, fees and expenses as well as other pertinent information.
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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
ITEM 13. 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
(a) (4) 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.
| The Alger Funds | |
| | |
| | |
| By: | /s/Hal Liebes | |
| | Hal Liebes | |
| | President | |
| | |
| Date: | June 22, 2020 | |
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 22, 2020 | |
| | | |
| | | |
| By: | /s/Michael D. Martins | |
| | Michael D. Martins | |
| | Treasurer | |
| | | |
| Date: | June 22, 2020 | |
