Alger Funds Ii NCSR Certified annual shareholder report (management investment company)

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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 811-01743

The Alger Funds II
(Exact name of registrant as specified in charter)

360 Park Avenue South New York, New York 10010
(Address of principal executive offices) (Zip code)

Mr. Hal Liebes

Fred Alger Management, Inc.

360 Park Avenue South

New York, New York 10010
(Name and address of agent for service)

Registrant's telephone number, including area code: 212-806-8800

Date of fiscal year end: October 31

Date of reporting period: October 31, 2015

ITEM 1. REPORTS TO STOCKHOLDERS.

Table of Contents


The Alger Funds II
Shareholders’ Letter (Unaudited)	1
Fund Highlights (Unaudited)	13
Portfolio Summary (Unaudited)	21
Schedules of Investments	22
Statements of Assets and Liabilities	51
Statements of Operations	57
Statements of Changes in Net Assets	60
Financial Highlights	65
Notes to Financial Statements	82
Report of Independent Registered Public Accounting Firm	110
Additional Information (Unaudited)	111

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Shareholders' Letter October 31, 2015

Dear Shareholders,

The Importance of a Differentiated Perspective when Investing
In the aftermath of the market lows of March of 2009, commentators frequently warned
that United States equities were overdue for a catastrophic correction. In past commentaries
and shareholder letters, however, I have maintained that U.S. equities had strong potential
for generating gains, and as we have seen in the ensuing timeframe, U.S. equities have been
one of the strongest performing asset classes. We continue to believe that U.S. equities offer
attractive return potential and have appealing risk and reward dynamics. We believe that an
expanding U.S. economy, improving corporate fundamentals, strong company management,
and various international developments are likely to support equities. At the same time,
we have maintained that market dips would be opportunities for buying U.S. equities at
attractive valuations. We believe, the pundits have been wrong, and continue to be wrong,
in succumbing to a myopic view of market disruptions. This shortsightedness, which we
believe still exists today, is something that Alger’s analysts are trained to avoid.

From the market low of 2009 to October 31, 2015, the S&P 500 index had a cumulative
return of 250%. For the 12-month reporting period ended October 31 of this year, the S&P
500 generated a 5.20% gain. During the reporting period, market dips were attractive buying
opportunities, especially late in the summer, when the S&P rallied more than 10% from
the late August market low until the end of the reporting period. Foreign equity markets,
however, have been challenging. For the reporting period, the MSCI ACWI ex USA Index
generated a -4.26% return and the MSCI Emerging Markets Index declined 14.26%. We
continue to believe, however, that foreign equities have potential for generating gains over
the long term, although periods of substantial volatility will occur.

In this letter, I explain why events in the U.S. and abroad didn’t cause us to change our
outlook and how our in-depth research of industries and individual companies supported
our firm’s differentiated view of equities even as commentators increasingly opined that
markets would collapse.

Navigating Market Risk
Alger analysts focus on fundamental, research-driven stock selection and they specialize
in covering specific industries, which helps our firm keep domestic and global economic
changes and other developments in perspective. Alger’s analysts assess which companies
are likely to benefit from dynamic change and which companies are likely to fail to take
advantage of change. This philosophy, in place now for 51 years, has been our guiding
principle. In addition, our perspective isn’t limited to U.S. equities. Indeed, research from our
emerging markets and international teams helps our firm assess large-scale trends that often
drive equity markets across the globe.

Alger Research and U.S. Markets
Our perspective on declining energy prices is an example of how we assess rapid and large-
scale changes that frequently reshape the business landscape. During the reporting period,
declining oil and natural gas prices created fear that energy companies would experience
sharp declines in revenues and earnings and curtail capital expenditures. At times, investors
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feared that the reduction in capital expenditures would also stymie economic growth or at
least extend to companies that serve the energy sector. We acknowledged that those concerns
were valid and we have, in fact, seen substantial declines in revenues for many industrial and
energy companies. Yet, throughout the reporting period, we emphasized that low fuel prices
would have a net positive impact for U.S. companies and lead to, among other things, steady
job creation that would help stimulate the U.S. economy by supporting consumer spending.
All this while lower energy prices would help reduce corporate operating costs, especially
for airlines, cruise ship operators, ink producers, paint manufacturers, and specialty chemical
providers.

Our belief in a potential shift in consumer spending was realized. During the 12-month
reporting period ended October 31, a significant decline in Americans’ spending on fuel
occurred while sales at retailers, excluding gasoline stations, climbed at a substantial rate of
4.9%, according to the U.S. Census Bureau. As a fundamental, bottom-up investment firm,
we used our knowledge of individual companies and industries to assess which corporations
had the strongest potential for benefiting from increasing consumer spending. Among
retailers, we continued to believe that leading online stores would benefit not only from
increasing consumer spending but also from capturing market share from traditional brick
and mortar companies.

The Web of Global Economics, the Federal Reserve, and Corporate Earnings
From a broader perspective, a mishmash of global and domestic developments drove
market volatility.As concerns that corporate earnings would be hurt by declining oil prices
strengthened, investors grew fearful that both a strengthening U.S. dollar and a slowdown
in economic growth in various countries, including China and Brazil, would curtail our
country’s exports. In addition, the value of U.S. multinationals’ foreign earnings could be
crimped when repatriated, thanks to the strong U.S. dollar. In Europe, fears over Greece’s
debt crisis festered along with concerns that an embargo targeting Russia in response to the
country’s intervention in the Ukraine would further hinder eurozone growth. Against that
backdrop, economic growth in the U.S. drove speculation that the Federal Reserve would
raise interest rates, thereby providing a headwind for both the economy and corporate
earnings. Fear continued in the late summer when China changed the onshore yuan’s
daily fixing calculation, which resulted in currency devaluation and misguided speculation
that the moderation of the country’s economic growth was worse than feared. Without a
doubt, those issues created a smorgasbord of fears for the financial press and pundits who
increasingly forecasted gloom and doom. As those events unfolded, however, we urged
investors to avoid overreacting to short-term disruptions and, when possible, to buy U.S.
equities during market dips.

Our Optimistic Perspective
For Alger, our best thinking comes not from listening to pundits, but instead from the
collective efforts of our more than 40-person investment team. We focus our efforts on
developing our research, improving our analysis, and understanding how change will impact
businesses. During the reporting period, we continued to serve our clients by searching
for companies across the globe with attractive potential for growing their earnings. We
reasoned that certain fears that fueled negative views of U.S. equities also created potential
opportunities and that “headline” developments were not as bad as some believed.

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With China, we continued to believe that the country’s central bank, the People’s Bank of
China, was willing to provide additional stimulus if needed and that the country’s economy
was heading for a soft landing. Since starting its easing cycle in November of 2014, the
bank has lowered interest rates six times. It has also lowered banking reserve requirements.
China is also working to increase the role of both domestic consumption and its service
industry in fostering economic growth while the country continues to improve its global
trading infrastructure with programs such as “One Belt, One Road” and “Made in China
2025.” For the third quarter, China’s GDP grew 6.9% from the year earlier, which fell short
of the country’s goal of 7.0%. Other data, however, have been encouraging, including an
8.4% growth rate for the country’s service sector during the first nine months of the year.

We also held to our belief that central banks for Japan and the eurozone would continue
with stimulus programs, including asset purchases, or quantitative easing. While Japan’s GDP
declined marginally in the second and third quarters, we remained optimistic that stimulus,
currency weakness, and other developments such as growing corporate activism would
eventually drive expansion. Regarding the eurozone, we have maintained that conditions,
while not likely to rapidly improve, would not worsen drastically. Encouragingly, for the
second quarter of 2015, its economy expanded at a slow, but nevertheless positive, 1.5%
year-on-year rate.

During the reporting period, we also maintained that volatility in equities across the globe
was a result of investors overreacting to the potential for the Federal Reserve to raise
interest rates. We maintained that with low and sometimes negative debt yields in certain
countries, foreign investors have been flocking to U.S. bonds, which could help keep interest
rates low even as the Fed increases its benchmark rate. In our opinion, Fed rate increases,
furthermore, are likely to be gradual and modest.

Looking abroad, we continued to maintain that emerging markets and other non-U.S.
equities offered potential for attractive gains. With emerging market equities, furthermore,
we have maintained that valuations are highly attractive with the asset class trading at an
approximately 30% discount to stocks of developed markets.

The U.S. Economy and Corporate Fundamentals
Our optimism is based, in part, on the growing strength of the U.S. economy and the
strength of fundamentals among domestic businesses. Americans’ finances have been
strengthening with the national savings rate running at nearly 5.0%, which is higher than the
approximately 3% pace that existed prior to the financial crisis. At the same time, Americans’
debt service burden is relatively low at 10.1% of disposable personal income compared to
the 11.4% average since 1980 and the peak of more than 13% at the end of 2007. While
job growth has been slow, the country has added jobs every month since October of 2010
and the seasonally adjusted unemployment rate has fallen from a post-financial crisis high
of 10.0% to only 5.1%. With more Americans working and personal finances improving,
individuals are likely to increase their spending, which could support both economic growth
and corporate earnings.

Strength in the real estate market has also continued. The National Association of Home
Builders Housing Market Index, which measures sentiment toward the real estate market
among builders, climbed 10 points year over year to 64 for October. At the same time,
housing prices have climbed, with existing home prices up 6.2% year over year in September.

- 3 -

Housing starts, which are still below historical averages, have been strengthening and have
reached an annualized rate of 1.2 million units. The combination of increasing prices and
below-average housing starts implies that the real estate recovery has considerable potential
for strengthening. In addition to the real estate recovery creating new construction jobs
and supporting industries that provide trucks, equipment, and home building materials,
the resulting higher home prices can help make Americans feel richer and thereby support
consumer spending.

Other economic indicators are encouraging. According to the Institute for Supply
Management, economic activity among manufacturers has increased for 34 consecutive
months. Capital expenditures in the U.S., furthermore, have increased at an average rate of
3.25% this year despite energy companies tightening their belts. The current spending rate
is below historical averages, suggesting that potential exists for businesses to further increase
capital outlays. In a similar manner, spending on research and development among S&P
500 companies has surged, setting a 10-year record at $54.4 billion in the second quarter,
according to FactSet Research Systems Inc.

Finally, corporate fundamentals are strong with S&P 500 ex-energy earnings expected to
grow at a high single-digit annualized rate this year after stripping out the impact of currency
exchange rates. With strong fundamentals, corporations are continuing to grow their cash
balances. At the end of the second quarter, S&P 500 companies (not including financials)
held $1.43 trillion in cash, up 5.5% year over year and 3.9% quarter over quarter, according
to FactSet. High cash balances and strong fundamentals are allowing corporations to return
capital to investors at an impressive rate, with dividends and stock buybacks expected to
total $1 trillion this year, which would be an all-time record and a $64 billion increase from
last year, according to S&P Capital IQ. Mergers and acquisitions are also continuing at a
brisk pace.

The Road Ahead
We have learned in our 51 years of history that "good” television and “good” press are fueled
most easily by talking heads who forecast doom and gloom for financial markets. Fortunately,
we have also learned that the best research is done not by reading the newspaper or watching
television, but instead by doing the hard work of talking to company management, reading
voluminous company filings, understanding how a company drives revenue and profit
growth, and most importantly, by believing what our research and analysis indicates. It is
also important to have conviction that allows us to look through the next three months
and to predict what the future truly holds for a company, industry, or sector. We maintain
that well-managed companies that can capture market share with compelling products and
services have potential over the long run for generating attractive returns and are best suited
for weathering periods of market volatility. At Alger, we will continue to use our time-tested
and research-driven investment strategy to find companies, whether in the U.S. or not, that
we believe have the most potential for generating strong returns over time for our clients.

Portfolio Matters
Alger Spectra Fund
The Alger Spectra Fund returned 9.66% for the fiscal 12-month period ended October 31,
2015, compared to the 8.72% return of the Russell 3000 Growth Index.

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During the period, the largest sector weightings were Information Technology and Health
Care. The largest sector overweight was Health Care and the largest sector underweight was
Consumer Staples. Relative outperformance in the Information Technology and Consumer
Discretionary sectors was the most important contributor to performance, while Consumer
Staples and Energy detracted from results.

For the reporting period, the Fund’s average portfolio allocation to long positions, which
was increased by leverage, was 101.07% of assets. In aggregate, long positions contributed
9.66 percentage points to performance. The Fund’s average allocation to short positions was
-3.54%. The short positions provided an approximately 0.00 percentage point contribution
to performance.

Among the most important relative contributors were Facebook, Inc., Cl. A; Allergan PLC.;
Alphabet, Inc., Cl. C; Amazon.com, Inc.; and CVS Caremark Corp. Regarding Alphabet,
Class C shares were held during the entire reporting period. During that timeframe, the
shares generated a positive return and supported performance. Also during the reporting
period, shares of Facebook performed strongly after the company reported continued strong
user growth and said earnings and operating margins exceeded consensus expectations, with
exceptionally strong mobile advertising revenues helping to offset the adverse impact upon
foreign revenues of a strong U.S. dollar.

Conversely, detracting from overall results on a relative basis were Alphabet, Inc., Cl. A;
Yum! Brands, Inc.; The Kraft Heinz Co.; and Weatherford International PLC. Unlike Class
C shares of Alphabet, Class A shares were sold early in the reporting period. During the
shortened holding period, Class A shares declined in value. Shares of SunEdison, Inc. also
detracted from results. The company develops and operates commercial and utility-scale
solar and wind-energy projects. Its stock surrendered gains achieved during the first half
of 2015 because investors began scrutinizing the company’s debt, operating losses, and
acquisition strategy. In addition, investors grew concerned that low oil prices may make the
development of alternative energy projects less appealing.

Among short positions, Cummins, Inc. was a top contributor to relative performance, while
Accenture PLC., Cl. A was among top detractors. Cummins is a diesel-engine manufacturer
whose results disappointed due to weakening global demand for trucks. The weakness was
driven by general macroeconomic sluggishness that is impacting high ticket capital goods
and other expenditures. Short selling entails selling borrowed stock with the goal of buying
the stock in the future to return the security to the lender. As the price of Cummins declined,
the portfolio’s cost of purchasing the stock to return the security to the lender also declined,
resulting in the position having a positive impact on performance. Accenture is a global firm
that provides business services such as consulting, technology, and outsourcing. The trading
price of Accenture stock gained as a result of multiple expansion after an analyst meeting
late in the reporting period during which the company forecasted margin expansion. As
the trading price of Accenture climbed, the portfolio’s cost of purchasing the stock also
increased, resulting in the short position detracting from overall performance.

Alger Green Fund
The Alger Green Fund returned 5.30% for the fiscal 12-month period ended October 31,
2015, compared to the 8.72% return of the Russell 3000 Growth Index.

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The Fund seeks long-term capital appreciation by investing at least 80% of its net assets in
equity securities of companies of any size that, in the opinion of the Fund’s management,
conduct their business in an environmentally sustainable manner while demonstrating
promising growth potential. The Fund’s performance, therefore, can be challenged during
times when investor enthusiasm for environmentally sustainable companies declines,
but it can benefit when investors favor such companies. During the period, the Fund’s
focus on environmentally sustainable companies appeared to be detrimental as the Fund
underperformed its benchmark.

During the period, the largest sector weightings were Information Technology and
Consumer Discretionary. The largest sector overweight was Industrials and the largest sector
underweight was Health Care. Relative outperformance in the Consumer Discretionary
and Energy sectors was the most important contributor to performance, while Consumer
Staples and Information Technology detracted from results.

Among the most important relative contributors were Acuity Brands, Inc.; NIKE, Inc.,
Cl. B; Amazon.com, Inc.; Starbucks Corp.; and The Home Depot, Inc. Shares of online
retailer Amazon.com performed strongly after the company reported strong second-quarter
revenue growth and margins that exceeded expectations. Amazon also provided strong year-
ahead guidance.

Conversely, detracting from overall results on a relative basis were SunEdison, Inc.; SolarCity
Corp.; TerraForm Power, Inc., Cl. A; United Natural Foods, Inc.; and BorgWarner, Inc.
Performance of SunEdison shares weakened in response to reasons described in the Alger
Spectra Fund discussion.

Alger Analyst Fund
The Alger Analyst Fund returned 1.75% for the fiscal 12-month period ended October 31,
2015, compared to the 4.94% return of the Russell Midcap Growth Index.

During the period, the largest sector weightings were Consumer Discretionary and
Information Technology. The largest sector overweight was Consumer Discretionary and
the largest sector underweight was Consumer Staples. Relative outperformance in the
Consumer Discretionary and Materials sectors was the most important contributor to
performance, while Health Care and Consumer Staples detracted from results.

Among the most important relative contributors were Royal Caribbean Cruises Ltd.;
Facebook, Inc., Cl. A; Amazon.com, Inc.; CoStar Group, Inc.; and Visa, Inc., Cl. A. Shares
of Facebook performed strongly in response to reasons described in the Alger Spectra Fund
discussion.

Conversely, detracting from overall results on a relative basis were GrubHub, Inc.; Pacira
Pharmaceuticals, Inc.; Anadarko Petroleum Corp.; and Biogen, Inc. Shares of Shutterstock,
Inc. also detracted from results. Shutterstock provides an online marketplace for commercial
digital images, including photographs and videos, for corporate communications, websites,
and other markets. Its competitive position has come into question since a previously weak
competitor was acquired by deep-pocketed Adobe Systems, Inc. and relaunched. Even
though Shutterstock management has not acknowledged any negative impact from the
acquisition, it has lowered guidance for the year, stating that results in Europe have been
soft, which we believe indicates competitive pressures.

- 6 -

Alger Dynamic Opportunities Fund
The Alger Dynamic Opportunities Fund returned 2.86% for the fiscal 12-month period
ended October 31, 2015, compared to the 5.20% return of the Fund’s benchmark, the S&P
500 index.

The Fund uses a strategy that includes long and short positions. The strategy seeks to
generate market-like returns over long-term periods, generally three-to-five years, while
limiting the impact upon performance of market downturns. During shorter-term periods,
such strategies may underperform when markets generate strong gains, perform in line or
modestly outperform when markets are flat, and outperform when markets decline.

During the reporting period, the Fund’s average long exposure was 66.55% of assets. Long
positions, in aggregate, outperformed the Fund’s benchmark and contributed approximately
2.68 percentage points to absolute performance. The Fund’s average allocation to short
positions was -14.32%. Short positions trailed the performance of the Fund’s benchmark
and contributed approximately 0.18 percentage points to performance. Net exposure, which
is the difference between long and short exposure, was 52.23%.

Based on the net weightings of long and short positions, the largest sector weightings were
Information Technology and Health Care. There was no sector overweight. The largest
sector underweight was Financials. Relative outperformance in the Energy and Industrials
sectors was the most important contributor to performance, while Consumer Discretionary
and Consumer Staples detracted from results.

Among the most important relative contributors were Avago Technologies Ltd.; Blackstone
Group LP.; Allergan PLC.; and Habit Restaurants, Inc., Cl. A. Shares of Pharmacyclics,
Inc. also supported performance. Pharmacyclics stock performance strengthened following
news that the company would be acquired by pharmaceutical researcher and developer
AbbVie, Inc. for $261.25 per share, which is a substantial premium.

Conversely, detracting from overall results on a relative basis were Tenet Healthcare Corp.;
Amazon.com, Inc.; Accenture PLC.; and Amgen, Inc. Shares of Apple, Inc. also detracted
from results. Performance of Apple stock weakened in the third quarter after the company
said it had generated disappointing iPhone sales and sales of its Apple Watch appeared
to be meaningfully lower than earlier expectations. The company’s quarterly gross margin,
meanwhile, dropped below 40% due to a less profitable sales mix.

Among short positions, Cummins, Inc. was a top contributor to relative performance, while
Accenture PLC., Cl. A was among top detractors. The performance of those short positions
was driven by developments described in the Alger Spectra Fund discussion.

Alger Emerging Markets Fund
The Alger Emerging Markets Fund returned -9.43% for the fiscal 12-month period ended
October 31, 2015, compared to the -14.22% return of its benchmark, the MSCI Emerging
Markets Index.

From a country perspective, stock selection resulted in holdings in China, South Korea, and
Taiwan having the greatest contributions to relative performance, while Peru, Columbia,
and Thailand were among countries that detracted from results.

- 7 -

During the reporting period, the largest sector weightings were Financials and Information
Technology. The largest sector overweight was Consumer Discretionary and the largest
sector underweight was Energy. The Financials and Energy sectors provided the greatest
contributions to relative performance, while Information Technology and Health Care
detracted from results.

Among the most important relative contributors were Luxoft Holding, Inc.; CRRC Corp.
Ltd.; Aurobindo Pharma Ltd.; CJ CGV Co. Ltd.; and ASPEED Technology, Inc. Shares
of Eastern European software developer Luxoft performed strongly late in the reporting
period as investors anticipated strong first-quarter earnings. The company released strong
quarterly results, with earnings climbing 31.8% year over year, but only modestly increased
its guidance for fiscal-year 2016. Management continues to work toward decreasing client
concentration in the financial sector and the company continues to gain new automotive
industry clients.

Conversely, detracting from overall results on a relative basis were Itau Unibanco Holding
S.A.; Qiwi PLC.; TPK Holding Co. Ltd.; Cemex SAB de CV; and Restoque Comercio E
Confeccoes De Roupas S.A. Shares of Taiwanese touch-panelprovider TPK underperformed
after the company released weak second-quarter results. The results fueled speculation that
the company may lose its lead position in Apple’s touch-display supply chain as technology
moves toward in-cell panels. Utilization of TPK technology, however, may potentially
improve with the company having guided to a supply chain share recovery in the third
quarter as it ramps up its supply of force touch technology for new iPhones.

On behalf of our 159 employees, I thank you for putting your trust in Alger.

Respectfully submitted,

Daniel C. Chung, CFA
Chief Investment Officer
Fred Alger Management, Inc.
_______________________________

Investors cannot invest directly in an index. Index performance does not reflect the
deduction for fees, expenses, or taxes.

This report and the financial statements contained herein are submitted for the general
information of shareholders of the funds. This report is not authorized for distribution
to prospective investors in the funds unless proceeded or accompanied by an effective
prospectus for the funds. Fund performance returns represent the 12-month period return
of Class A shares prior to the deduction of any sales charges and include the reinvestment
of any dividends or distributions.

The performance data quoted 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
- 8 -

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 October 31, 2015. Securities mentioned in the Shareholders’ Letter, if not
found in the Schedule of Investments, may have been held by the funds during the fiscal
period.

A Word about Risk
Growth stocks tend to be more volatile than other stocks as the price of growth stocks
tends to be higher in relation to their companies’ earnings and may be more sensitive
to market, political and economic developments. Investing in the stock market involves
gains and losses and may not be suitable for all investors. Stocks of small- and mid-sized
companies are subject to greater risk than stocks of larger, more established companies
owing to such factors as limited liquidity, inexperienced management, and limited financial
resources. Investing in foreign securities involves additional risk (including currency risk,
risks related to political, social or economic conditions, and risks associated with foreign
markets, such as increased volatility, limited liquidity, less stringent regulatory and legal
system, and lack of industry and country diversification), and may not be suitable for all
investors. Special risks associated with investments in emerging country issuers include
exposure to currency fluctuations, less liquidity, less developed or less efficient trading
markets, lack of comprehensive company information, political instability and different
auditing and legal standards.

Foreign currencies are subject to risks caused by inflation, interest rates, budget deficits and
low savings rates, political factors and government controls. Some of the countries where a
fund can invest may have restrictions that could limit the access to investment opportunities.
The securities of issuers located in emerging markets can be more volatile and less liquid
than those of issuers in more mature economies. Investing in emerging markets involves
higher levels of risk, including increased information, market, and valuation risks, and may
not be suitable for all investors.

Funds that participate in leveraging are subject to the risk that borrowing money to leverage
will exceed the returns for securities purchased or that the securities purchased may actually
go down in value; thus, the fund’s net asset value can decrease more quickly than if the fund
had not borrowed. The Alger Spectra Fund and the Alger Dynamic Opportunities Fund
- 9 -

may engage in short sales, which presents additional risk. To engage in a short sale, a fund
arranges with a broker to borrow the security being sold short. In order to close out its short
position, a fund will replace the security by purchasing the security at the price prevailing at
the time of replacement. The fund will incur a loss if the price of the security sold short
has increased since the time of the short sale and may experience a gain if the price has
decreased since the short sale.

The Alger Green Fund's environmental focus may limit the investment options available
to the Fund and may result in lower returns than returns of funds not subject to such
investment considerations. 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 II call us at (800) 992-3863 or visit us at www.alger.com. Read
it carefully before investing.
Fred Alger & Company, Incorporated, Distributor. Member NYSE Euronext, SIPC.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
Definitions:

• The S&P 500 is an unmanaged index generally representative of the U.S.
stock market without regard to company size.
• The MSCI Emerging Markets Index is a free float-adjusted market capital-
ization index that is designed to measure equity market performance in the
global emerging markets.
• The MSCI ACWI ex USA Index is a market capitalization-weighted index de-
signed to provide a broad measure of equity market performance throughout
the world, including both developed and emerging markets, but excluding the
United States.
• The Russell 3000 Growth Index measures the performance of the broad
growth segment of the U.S. equity universe. It includes those Russell 3000
Index companies with higher price-to-book ratios and higher forecasted
growth values.
• 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 price-to-book ratios and higher fore-
casted growth values.
• FactSet Research Systems Inc. is a multinational financial data and software
company.
• S&P Capital IQ provides research, data, and analysis on capital markets and
other topics for investment managers, investment banks, private equity funds,
advisory firms, corporations and universities.

- 10 -

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.

Alger Spectra Fund’s Class A shares performance prior to September 23, 2008 is that of the fund’s Class N shares,
adjusted to reflect applicable sales charges and operating expenses.


	FUND PERFORMANCE AS OF 9/30/15 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
	1 YEAR		5 YEARS		10 YEARS

Alger Spectra Class A	(3.07	)%	13.51	%	11.20	%
Alger Spectra Class C^*	0.61	%	13.88	%	10.98	%
Alger Spectra Class I^†	2.29	%	14.80	%	11.87	%


	1 YEAR		5 YEARS		Since 12/29/2010

Alger Spectra Class Z	2.58	%	n/a		12.99	%

* Historical performance prior to September 24, 2008, inception of the class, is that of the Fund's Class A shares, adjusted to
reflect the current maximum sales charge and the higher operating expenses of Class C shares.
† Historical performance prior to September 24, 2008, inception of the class, is that of the Fund's Class A shares, which has
been adjusted to remove the front-end sales charge imposed by Class A shares.

- 11 -

Alger Green Fund’s Class A shares performance figures prior to January 12, 2007, are those of the Alger
Green Institutional Fund and performance prior to October 19, 2006, represents the performance of the
Alger Socially Responsible Growth Institutional Fund Class I, the predecessor fund to the Alger Green
Institutional Fund. The predecessor fund followed different investment strategies and had a different portfolio
manager. As of January 12, 2007, the Alger Green Institutional Fund became the Alger Green Fund.


FUND PERFORMANCE AS OF 9/30/15 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
	1		5		10		SINCE
	YEAR		YEARS		YEARS		INCEPTION
Alger Green Class A (Inception 12/4/00)	(5.86	)%	8.43	%	5.99	%	1.10	%
Alger Green Class C (Inception 9/24/08)^*	(2.32	)%	8.71	%	n/a		6.45	%
Alger Green Class I (Inception 9/24/08)^†	(0.50	)%	9.61	%	n/a		7.29	%

Alger Analyst Class A (Inception 3/30/07)	(9.62	)%	8.94	%	n/a		4.74	%
Alger Analyst Class C (Inception 9/24/08)^*	(6.00	)%	9.42	%	n/a		4.68	%
Alger Analyst Class I (Inception 9/24/08)^†	(4.59	)%	10.14	%	n/a		5.40	%

Alger Dynamic Opportunities Class A (Inception 11/2/09)	(4.54	)%	4.93	%	n/a		4.78	%
Alger Dynamic Opportunities Class C (Inception
12/29/10)^‡	(0.91	)%	5.27	%	n/a		4.94	%
Alger Dynamic Opportunities Class Z (Inception 12/29/10)	1.08	%	n/a		n/a		5.40	%

Alger Emerging Markets Class A (Inception 12/29/10)	(19.45	)%	n/a		n/a		(5.43	)%
Alger Emerging Markets Class C (Inception 12/29/10)	(16.47	)%	n/a		n/a		(5.16	)%
Alger Emerging Markets Class I (Inception 12/29/10)	(14.96	)%	n/a		n/a		(4.46	)%
Alger Emerging Markets Class Z (Inception 2/28/14)	(14.59	)%	n/a		n/a		(9.00	)%

* Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to September
24, 2008, inception of the class, is that of the Fund's Class A shares, reduced to reflect the current maximum sales charge
and the higher operating expenses of Class C shares.
† Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to September
24, 2008, inception of the class, is that of the Fund's Class A shares, which has been adjusted to remove the front-end sales
charge imposed by Class A shares.
‡ Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to December
29, 2010, 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.

- 12 -

ALGER SPECTRA FUND
Fund Highlights Through October 31, 2015 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Spectra Fund
Class A shares, with an initial 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged
index of common stocks) for the ten years ended October 31, 2015. The figures for the Alger Spectra Fund Class
A and the Russell 3000 Growth Index include reinvestment of dividends. Performance for the Alger Spectra Fund
Class C, Class I and Class Z shares will vary from the results shown above due to the operating expenses and the
current maximum sales charge of each share class. Investors cannot invest directly in any index. Index performance
does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/15
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/31/1974
Class A (Inception 7/28/69)	3.91	%	14.23	%	12.26	%	15.87	%
Class C (Inception 9/24/08)^*	7.89	%	14.63	%	12.04	%	15.16	%
Class I (Inception 9/24/08)^†	9.65	%	15.53	%	12.94	%	16.04	%
Russell 3000 Growth Index	8.72	%	15.16	%	9.06	%	n/a


							Since
	1 YEAR		5 YEARS		10 YEARS		12/29/2010
Class Z (Inception 12/29/10)	9.98	%	n/a		n/a		14.62	%
Russell 3000 Growth Index	8.72	%	n/a		n/a		13.98	%

- 13 -

ALGER SPECTRA FUND
Fund Highlights Through October 31, 2015 (Unaudited) (Continued)

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. Class A, C, and I historical performance
is calculated from December 31, 1974, the first full calendar year that Fred Alger Management, Inc. was the Fund's investment advisor.
The Fund operated as a closed-end fund from August 23, 1978 to February 12, 1996, during which time the calculation of total return
assumes dividends were reinvested at market value. Had dividends not been reinvested, performance would have been lower. 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 September
24, 2008, inception of the class, is that of the Fund's Class A shares, reduced to reflect the current maximum sales charge
and the higher operating expenses of Class C shares.
† Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to September
24, 2008, inception of the class, is that of the Fund's Class A shares, which has been adjusted to remove the front-end sales
charge imposed by Class A shares.

- 14 -

ALGER GREEN FUND
Fund Highlights Through October 31, 2015 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Green Fund
Class A shares, with an initial 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged
index of common stocks) for the ten years ended October 31, 2015. The figures for the Alger Green Fund Class A
and the Russell 3000 Growth Index include reinvestment of dividends. Performance for the Alger Green Fund Class
C and Class I shares will vary from the results shown above due to the operating expenses and the current maximum
sales charge of each share class. Investors cannot invest directly in any index. Index performance does not reflect
deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/15
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/4/2000
Class A (Inception 12/4/00)	(0.26	)%	9.47	%	6.99	%	1.62	%
Russell 3000 Growth Index	8.72	%	15.16	%	9.06	%	4.32	%


PERFORMANCE COMPARISON AS OF 10/31/15
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/4/2000
Class C (Inception 9/24/08)	3.51	%	9.75	%	n/a		7.52	%
Class I (Inception 9/24/08)	5.42	%	10.66	%	n/a		8.36	%
Russell 3000 Growth Index	8.72	%	15.16	%	n/a		12.28	%

- 15 -

ALGER GREEN FUND
Fund Highlights Through October 31, 2015 (Unaudited) (Continued)

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. Performance figures prior to January 12,
2007, are those of the Alger Green Institutional Fund and performance prior to October 19, 2006, represents the performance of the
Alger Socially Responsible Growth Institutional Fund Class I, the predecessor fund to the Alger Green Institutional Fund. The pre-
decessor fund followed different investment strategies and had a different portfolio manager. As of January 12, 2007, the Alger Green
Institutional Fund became the Alger Green Fund. 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.

- 16 -

ALGER ANALYST FUND
Fund Highlights Through October 31, 2015 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Analyst Fund
Class A shares, with an initial 5.25% maximum sales charge, and the Russell Midcap Growth Index (an unmanaged
index of common stocks) from March 30, 2007, the inception date of the Alger Analyst Fund Class A, through
October 31, 2015. The figures for the Alger Analyst Fund Class A and the Russell Midcap Growth Index include
reinvestment of dividends. Performance for the Alger Analyst Fund Class C and Class I shares will vary from
the results shown above due to the operating expenses and the current maximum sales charge of each share class.
Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or
taxes.


PERFORMANCE COMPARISON AS OF 10/31/15
AVERAGE ANNUAL TOTAL RETURNS
						Since
	1 YEAR		5 YEARS		10 YEARS	3/30/2007
Class A (Inception 3/30/07)	(3.59	)%	10.21	%	n/a	5.81	%
Class C (Inception 9/24/08)^*	0.20	%	10.69	%	n/a	5.74	%
Class I (Inception 9/24/08)^†	1.72	%	11.41	%	n/a	6.46	%
Russell Midcap Growth Index	4.94	%	14.10	%	n/a	8.05	%

The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s average
annual total returns include changes in share price and reinvestment of dividends and capital gains. Class A returns reflect the maximum
initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart and table above do not reflect the
deduction of taxes that a shareholder would have paid on Fund distributions or on the redemption of Fund shares. Investment return
and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost. Current performance
may be higher or lower than the performance quoted. For updated performance, visit us at www.alger.com or call us at (800) 992-3863.
* Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to September
24, 2008, inception of the class, is that of the Fund's Class A shares, reduced to reflect the current maximum sales charge
and the higher operating expenses of Class C shares.
† Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to September
24, 2008, inception of the class, is that of the Fund's Class A shares, which has been adjusted to remove the front-end sales
charge imposed by Class A shares.

- 17 -

ALGER DYNAMIC OPPORTUNITIES FUND
Fund Highlights Through October 31, 2015 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in Alger Dynamic
Opportunities Fund Class A shares, with an initial 5.25% maximum sales charge, and the S&P 500 Index and
the Blended S&P 500/3-Month London Interbank Offered Rate (“LIBOR”) (an unmanaged indices of common
stocks) from November 2, 2009, the inception date of the Alger Dynamic Opportunities Fund Class A, through
October 31, 2015. The figures for the Alger Dynamic Opportunities Fund Class A and the S&P 500 Index and the
Blended S&P 500/LIBOR include reinvestment of dividends. Performance for the Alger Dynamic Opportunities
Fund Class C and Class Z shares will vary from the results shown above due to the operating expenses and the
current maximum sales charge of each share class. Investors cannot invest directly in any index. Index performance
does not reflect deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/15
AVERAGE ANNUAL TOTAL RETURNS
						Since
	1 YEAR		5 YEARS		10 YEARS	11/2/2009
Class A (Inception 11/2/09)	(2.52	)%	5.13	%	n/a	5.20	%
Class C (Inception 12/29/10)^*	1.15	%	5.47	%	n/a	5.35	%
S&P 500 Index	5.20	%	14.33	%	n/a	14.59	%
Blended S&P 500 / LIBOR	2.92	%	7.30	%	n/a	7.46	%
\
						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class Z (Inception 12/29/10)	3.16	%	n/a		n/a	5.92	%
S&P 500 Index	5.20	%	n/a		n/a	13.28	%
Blended S&P 500 / LIBOR	2.92	%	n/a		n/a	6.80	%

ALGER DYNAMIC OPPORTUNITIES FUND
Fund Highlights Through October 31, 2015 (Unaudited) (Continued)

* Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to
December 29, 2010, 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.

- 19 -

ALGER EMERGING MARKETS FUND
Fund Highlights Through October 31, 2015 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in Alger Emerging
Markets Fund Class A shares, with an initial 5.25% maximum sales charge, and the MSCI Emerging Markets Index
(an unmanaged index of common stocks) from December 29, 2010, the inception date of the Alger Emerging
Markets Fund Class A, through October 31, 2015. The figures for the Alger Emerging Markets Fund Class A and
the MSCI Emerging Markets Index include reinvestment of dividends. Performance for the Alger Emerging Markets
Fund Class C, Class I and Class Z shares will vary from the results shown above due to differences in expense and
sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect
deduction for fees, expenses, or taxes.


PERFORMANCE COMPARISON AS OF 10/31/15
AVERAGE ANNUAL TOTAL RETURNS
					Since
	1 YEAR		5 YEARS	10 YEARS	12/29/2010
Class A (Inception 12/29/10)	(14.16	)%	n/a	n/a	(3.90	)%
Class C (Inception 12/29/10)	(10.98	)%	n/a	n/a	(3.64	)%
Class I (Inception 12/29/10)	(9.38	)%	n/a	n/a	(2.93	)%
MSCI Emerging Markets Index	(14.22	)%	n/a	n/a	(3.14	)%

					Since
	1 YEAR		5 YEARS	10 YEARS	2/28/2014
Class Z (Inception 2/28/14)	(9.03	)%	n/a	n/a	(4.49	)%
MSCI Emerging Markets Index	(14.22	)%	n/a	n/a	(4.71	)%

PORTFOLIO SUMMARY†
October 31, 2015 (Unaudited)


								Alger Dynamic
SECTORS	Alger Spectra Fund^*		Alger Green Fund		Alger Analyst Fund			Opportunities Fund^*
Consumer Discretionary	19.0	%	25.6	%		28.9	%	11.9	%
Consumer Staples	5.5		6.7			1.8		2.7
Energy	1.9		0.0			5.9		0.8
Financials	7.2		0.8			4.3		25.9
Health Care	18.5		10.2			13.8		15.5
Industrials	8.4		18.2			14.5		7.1
Information Technology	32.6		29.5			22.9		14.1
Materials	1.3		1.5			4.3		(0.3	)
Telecommunication Services	0.7		0.0			1.4		0.0
Utilities	0.4		2.9			0.0		0.1
Short-Term Investments and
Net Other Assets	4.5		4.6			2.2		22.2
	100.0	%	100.0	%		100.0	%	100.0	%
	Alger Emerging Markets
COUNTRY	Fund
Brazil	5.2	%
Cayman Islands	1.3
Chile	0.9
China	22.6
Colombia	1.2
Hong Kong	2.0
India	11.3
Indonesia	2.0
Luxembourg	1.3
Malaysia	1.1
Mexico	5.6
Peru	0.9
Philippines	1.3
Russia	4.0
South Africa	6.2
South Korea	14.6
Taiwan	9.6
Thailand	1.7
United Arab Emirates	0.8
United Kingdom	1.8
United States	0.2
Cash and Net Other Assets	4.4
	100.0	%

* Includes short sales as a reduction of sector exposure.
† Based on net assets for each Fund

- 21 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2015


COMMON STOCKS—95.0%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc.*^,@,(a)	178,292	$		74,883
AEROSPACE & DEFENSE—2.8%
Hexcel Corp.	173,700			8,045,784
Honeywell International, Inc.⁺	678,200			70,044,496
Lockheed Martin Corp.	113,700			24,994,671
The Boeing Co.⁺	344,900			51,069,343
			154,154,294
AIR FREIGHT & LOGISTICS—0.5%
United Parcel Service, Inc., Cl. B	251,100		25,868,322
AIRLINES—1.3%
Delta Air Lines, Inc.	871,800			44,322,312
United Continental Holdings, Inc.*	465,149			28,053,136
			72,375,448
ALTERNATIVE CARRIERS—0.3%
Level 3 Communications, Inc.*	280,100		14,271,095
APPAREL ACCESSORIES & LUXURY GOODS—0.2%
Ralph Lauren Corp.	35,700			3,954,489
Under Armour, Inc., Cl. A*	55,500			5,276,940
				9,231,429
APPAREL RETAIL—0.3%
VF Corp.	277,000		18,703,040
APPLICATION SOFTWARE—2.1%
Adobe Systems, Inc.*	396,700			35,171,422
salesforce.com, inc.*	1,042,221			80,990,994
			116,162,416
AUTO PARTS & EQUIPMENT—1.9%
Delphi Automotive PLC.	897,360			74,651,378
Lear Corp.	230,400			28,813,824
WABCO Holdings, Inc.*	19,400			2,177,262
			105,642,464
BIOTECHNOLOGY—6.0%
Biogen, Inc.*⁺	180,080			52,315,041
BioMarin Pharmaceutical, Inc.*	165,400			19,358,416
Celgene Corp.*	445,800			54,704,118
Gilead Sciences, Inc.⁺	767,947			83,038,109
Incyte Corp.*	271,900			31,956,407
Intercept Pharmaceuticals, Inc.*	30,712			4,827,926
Regeneron Pharmaceuticals, Inc.*	11,300			6,298,507
Vertex Pharmaceuticals, Inc.*⁺	645,028			80,460,793
			332,959,317
BREWERS—1.5%
Anheuser-Busch InBev SA^#	212,600			25,369,558
Molson Coors Brewing Co., Cl. B	666,200			58,692,220
			84,061,778
BROADCASTING—0.1%
CBS Corp., Cl. B	181,100			8,424,772
BUILDING PRODUCTS—0.7%
Fortune Brands Home & Security, Inc.	270,135			14,136,165

- 22 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
BUILDING PRODUCTS—(CONT.)
Lennox International, Inc.	194,000	$		25,765,140
			39,901,305
CABLE & SATELLITE—1.6%
Comcast Corporation, Cl. A	1,428,455		89,449,852
COMMUNICATIONS EQUIPMENT—1.5%
Arista Networks, Inc.*	315,158			20,330,843
ARRIS Group, Inc.*	644,800			18,222,048
Cisco Systems, Inc.	1,546,800			44,625,180
			83,178,071
COMPUTER STORAGE & PERIPHERALS—0.2%
SanDisk Corp.	123,100			9,478,700
CONSUMER FINANCE—0.2%
Discover Financial Services	101,000			5,678,220
LendingClub Corp.*	454,481			6,444,541
			12,122,761
DATA PROCESSING & OUTSOURCED SERVICES—4.7%
Alliance Data Systems Corp.*	191,259			56,863,213
Fiserv, Inc.*	184,400			17,796,444
Visa, Inc., Cl. A⁺	2,443,756		189,586,591
			264,246,248
DIVERSIFIED BANKS—0.0%
JPMorgan Chase & Co.	40,700			2,614,975
DRUG RETAIL—1.4%
CVS Caremark Corp.	407,500			40,252,850
Walgreens Boots Alliance, Inc.	443,450			37,551,346
			77,804,196
FOOD RETAIL—0.8%
The Kroger Co.	1,208,200		45,669,960
FOOTWEAR—0.3%
NIKE, Inc., Cl. B	117,743		15,427,865
GENERAL MERCHANDISE STORES—0.5%
Dollar General Corp.	367,564			24,909,812
Dollar Tree, Inc.*	25,100			1,643,799
				26,553,611
HEALTH CARE EQUIPMENT—2.4%
DexCom, Inc.*	304,598			25,379,106
Edwards Lifesciences Corp.*	318,500			50,052,275
Hologic, Inc.*	862,769			33,527,203
Steris Corp.*	331,200			24,823,440
			133,782,024
HEALTH CARE FACILITIES—0.9%
Amsurg Corp.*	88,100			6,174,929
HCA Holdings, Inc.*	372,751			25,641,541
Universal Health Services, Inc., Cl. B	160,400			19,583,236
			51,399,706
HEALTH CARE SERVICES—0.0%
Adeptus Health, Inc., Cl. A*	25,600			1,661,184

- 23 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
HOME ENTERTAINMENT SOFTWARE—0.3%
Activision Blizzard, Inc.	491,200	$		17,074,112
HOME IMPROVEMENT RETAIL—1.6%
Lowe's Companies, Inc.	458,000			33,814,140
The Home Depot, Inc.	457,658			56,584,835
			90,398,975
HOTELS RESORTS & CRUISE LINES—1.8%
Carnival Corp.	258,800			13,995,904
Ctrip.com International Ltd.^#*	188,680			17,541,579
Norwegian Cruise Line Holdings Ltd.*	709,800			45,157,476
Royal Caribbean Cruises Ltd.⁺	263,377			25,903,128
			102,598,087
HOUSEWARES & SPECIALTIES—0.8%
Jarden Corp.*	979,177		43,867,130
INDUSTRIAL CONGLOMERATES—1.3%
Danaher Corp.	330,500			30,838,955
General Electric Co.	1,374,300			39,744,756
				70,583,711
INDUSTRIAL GASES—0.8%
Air Products & Chemicals, Inc.	331,600		46,085,768
INTERNET RETAIL—5.4%
Amazon.com, Inc.*⁺	398,448		249,388,603
NetFlix, Inc.*	378,080			40,976,311
Qunar Cayman Islands Ltd.#*	196,039			9,515,733
			299,880,647
INTERNET SOFTWARE & SERVICES—11.8%
Alphabet, Inc., Cl. C*⁺	417,653		296,871,929
Facebook, Inc., Cl. A*⁺	2,331,218		237,714,299
GrubHub, Inc.*	322,026			7,722,184
LinkedIn Corp., Cl. A*	198,200			47,740,434
Palantir Technologies, Inc., Cl. A*^,@	348,292			3,134,628
Yahoo! Inc.*	1,926,795			68,632,438
			661,815,912
INVESTMENT BANKING & BROKERAGE—1.1%
ETRADE Financial Corp.	376,700			10,739,717
Morgan Stanley	1,589,100			52,392,627
			63,132,344
LIFE SCIENCES TOOLS & SERVICES—1.4%
ThermoFisherScientific,Inc.+	595,514		77,881,321
MANAGED HEALTH CARE—2.2%
Aetna, Inc.	56,377			6,470,952
Cigna Corp.	170,903			22,907,838
Humana, Inc.	94,960			16,962,705
UnitedHealth Group, Inc.	630,324			74,239,561
			120,581,056
MOVIES & ENTERTAINMENT—1.7%
Live Nation Entertainment, Inc.*	76			2,073
The Walt Disney Co.	461,000			52,434,140

- 24 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
MOVIES & ENTERTAINMENT—(CONT.)
Time Warner, Inc.	560,100	$		42,197,934
			94,634,147
MULTI-LINE INSURANCE—0.2%
Hartford Financial Services Group, Inc.	198,290			9,172,895
MULTI-UTILITIES—0.3%
Sempra Energy	146,600		15,013,306
OIL & GAS EQUIPMENT & SERVICES—0.8%
Baker Hughes, Inc.	586,000			30,870,480
Weatherford International PLC.*	1,466,330			15,015,219
			45,885,699
OIL & GAS EXPLORATION & PRODUCTION—1.1%
Anadarko Petroleum Corp.⁺	345,191			23,086,374
Devon Energy Corp.	61,000			2,557,730
EOG Resources, Inc.	387,300			33,249,705
			58,893,809
OTHER DIVERSIFIED FINANCIAL SERVICES—1.0%
Bank of America Corp.	2,709,557			45,466,366
Citigroup, Inc.	209,700			11,149,749
				56,616,115
PACKAGED FOODS & MEATS—0.1%
General Mills, Inc.	140,400			8,158,644
PHARMACEUTICALS—5.3%
Allergan PLC.*⁺	397,287		122,551,121
Bristol-Myers Squibb Co.⁺	1,183,225			78,033,689
Eli Lilly & Co.	246,917			20,141,020
Pacira Pharmaceuticals, Inc.*	179,907			8,986,355
Pfizer,Inc.	780,759			26,405,269
Shire PLC.	538,838			40,796,086
			296,913,540
RAILROADS—0.5%
UnionPacificCorp.	315,305		28,172,502
REGIONAL BANKS—2.1%
Citizens Financial Group, Inc.	4,791,311		116,428,857
RENEWABLE ELECTRICITY—0.1%
TerraForm Global, Inc., Cl. A*^,@,(b)	1,122,737			7,709,834
RESTAURANTS—3.1%
McDonald's Corp.	705,122			79,149,945
Starbucks Corp.⁺	754,260			47,194,048
Yum! Brands, Inc.⁺	677,910			48,070,598
			174,414,591
SECURITY & ALARM SERVICES—0.5%
Tyco International PLC.	771,221		28,103,293
SEMICONDUCTOR EQUIPMENT—0.7%
Lam Research Corp.	391,200			29,962,008
SunEdison, Inc.*	946,100			6,906,530
			36,868,538
SEMICONDUCTORS—3.0%
Avago Technologies Ltd.	432,504			53,254,218

- 25 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
SEMICONDUCTORS—(CONT.)
Broadcom Corp., Cl. A	851,100	$		43,746,540
Microsemi Corp.*	573,504			20,651,879
NXP Semiconductors NV*	648,361			50,799,084
			168,451,721
SOFT DRINKS—1.2%
PepsiCo, Inc.⁺	660,715		67,518,466
SPECIALIZED FINANCE—0.2%
McGraw Hill Financial, Inc.	151,400		14,025,696
SPECIALTY CHEMICALS—0.6%
PPG Industries, Inc.	329,000		34,301,540
SPECIALTY STORES—0.6%
Signet Jewelers Ltd.	212,512		32,076,561
SYSTEMS SOFTWARE—4.2%
Microsoft Corp.⁺	3,742,520		197,006,253
ServiceNow, Inc.*	442,600			36,138,290
			233,144,543
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—4.5%
Apple, Inc.⁺	2,110,195		252,168,302
TOBACCO—0.6%
Altria Group, Inc.	587,900		35,550,313
TRADING COMPANIES & DISTRIBUTORS—1.5%
HD Supply Holdings, Inc.*	1,604,271			47,791,233
United Rentals, Inc.*	474,400			35,513,584
			83,304,817
WIRELESS TELECOMMUNICATION SERVICES—0.4%
SBA Communications Corp., Cl. A*	171,200		20,376,224
TOTAL COMMON STOCKS
(Cost $4,534,623,837)			5,307,022,732
PREFERRED STOCKS—0.6%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc., Cl. A*^,@,(a)	1,537,428			645,720
Choicestream, Inc., Cl. B*^,@,(a)	3,765,639			1,581,568
				2,227,288
BIOTECHNOLOGY—0.2%
Prosetta Biosciences, Inc.*^,@,(a)	2,912,012		13,104,054
INTERNET SOFTWARE & SERVICES—0.3%
Palantir Technologies, Inc., Cl. B*^,@	1,420,438			12,783,942
Palantir Technologies, Inc., Cl. D*^,@	185,062			1,665,558
			14,449,500
PHARMACEUTICALS—0.1%
Intarcia Therapeutics, Inc.*^,@	171,099			6,447,011
TOTAL PREFERRED STOCKS
(Cost $32,736,484)				36,227,853
MASTER LIMITED PARTNERSHIP—1.3%	SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.3%
The Blackstone Group LP.	2,165,773		71,600,455

- 26 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2015 (Continued)


MASTER LIMITED PARTNERSHIP—(CONT.)	SHARES			VALUE
OIL & GAS STORAGE & TRANSPORTATION—0.0%
Williams Partners LP.	8,500		$	287,300
TOTAL MASTER LIMITED PARTNERSHIP
(Cost $71,501,480)				71,887,755
REAL ESTATE INVESTMENT TRUST—1.6%	SHARES			VALUE
MORTGAGE—0.7%
Blackstone Mortgage Trust, Inc., Cl. A	1,436,304			39,527,086
SPECIALIZED—0.9%
Crown Castle International Corp.	582,000			49,737,720
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $91,407,712)				89,264,806
SPECIAL PURPOSE VEHICLE—0.0%	SHARES			VALUE
CONSUMER FINANCE—0.0%
JS Kred SPV I, LLC.^@	2,715,111			2,715,111
(Cost $2,715,111)				2,715,111
Total Investments
(Cost $4,732,984,624)^(c)	98.5	%		5,507,118,257
Other Assets in Excess of Liabilities	1.5	%		81,088,784
NET ASSETS	100.0	%	$	5,588,207,041

- 27 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2015 (Continued)

# American Depositary Receipts.
^(a)Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities in Notes to Financial Statements.
^(b)Pursuant to Securities and Exchange Commission Rule 144A deemed illiquid until eligible for sale on January 27,
2016.
^(c)At October 31, 2015, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $4,829,276,600, amounted to $677,841,657 which consisted of aggregate gross unrealized appreciation of
$832,576,091 and aggregate gross unrealized depreciation of $154,734,434.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition			(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2015
Choicestream, Inc.	03/14/14	$	51,705	0.00	%	$	74,883	0.00	%
Choicestream, Inc., Cl. A	12/17/13		1,229,452	0.03	%		645,720	0.01	%
Choicestream, Inc., Cl. B	07/10/14		2,259,383	0.05	%		1,581,568	0.03	%
Intarcia Therapeutics, Inc.	03/27/14		5,541,897	0.14	%		6,447,011	0.12	%
JS Kred SPV I, LLC.	06/26/15		2,715,111	0.05	%		2,715,111	0.05	%
Palantir Technologies, Inc., Cl. A	10/07/14		2,266,336	0.05	%		3,134,628	0.06	%
Palantir Technologies, Inc., Cl. B	10/07/14		9,379,767	0.22	%		12,783,942	0.23	%
Palantir Technologies, Inc., Cl. D	10/14/14		1,221,931	0.03	%		1,665,558	0.03	%
Prosetta Biosciences, Inc.	02/06/15		13,104,054	0.28	%		13,104,054	0.23	%
TerraForm Global, Inc., Cl. A	06/08/15		15,999,000	0.31	%		7,709,834	0.14	%
Total						$	49,862,309	0.90	%

+ All or a portion of this security is held as collateral for securities sold short.

Industry classifications are unaudited.
See Notes to Financial Statements.

- 28 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments- Securities Sold Short October 31, 2015


COMMON STOCKS—-3.0%	SHARES					VALUE
AGRICULTURAL & FARM MACHINERY—-0.2%
Deere & Co.	(140,600	)	$	(10,966,800			)
ASSET MANAGEMENT & CUSTODY BANKS—-0.2%
Waddell & Reed Financial, Inc., Cl. A	(248,100	)				(9,164,814	)
BREWERS—-0.1%
The Boston Beer Co., Inc., Cl. A*	(34,600	)				(7,597,814	)
BROADCASTING—-0.3%
Scripps Networks Interactive, Inc., Cl. A	(317,700	)			(19,087,416		)
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—-0.2%
PACCAR, Inc.	(208,900	)			(10,998,585		)
GENERAL MERCHANDISE STORES—-0.1%
Target Corp.	(66,569	)				(5,137,795	)
HOME FURNISHING RETAIL—0.0%
Bed Bath & Beyond, Inc.*	(18,700	)				(1,115,081	)
HOUSEWARES & SPECIALTIES—-0.1%
Tupperware Brands Corp.	(95,500	)				(5,622,085	)
INDUSTRIAL MACHINERY—-0.1%
Donaldson Co., Inc.	(101,639	)				(3,069,498	)
IT CONSULTING & OTHER SERVICES—-0.3%
Cognizant Technology Solutions Corp., Cl. A*	(228,500	)			(15,563,135		)
LIFE & HEALTH INSURANCE—-0.1%
MetLife, Inc.	(67,700	)				(3,410,726	)
REGIONAL BANKS—-0.2%
Hancock Holding Co.	(433,200	)			(11,956,320		)
RESTAURANTS—-0.3%
Brinker International, Inc.	(301,300	)			(13,712,163		)
Jack in the Box, Inc.	(65,568	)				(4,886,783	)
					(18,598,946		)
SEMICONDUCTORS—-0.2%
Linear Technology Corp.	(223,342	)				(9,920,852	)
SPECIALTY CHEMICALS—-0.1%
The Valspar Corp.	(68,200	)				(5,520,790	)
SYSTEMS SOFTWARE—-0.2%
NetSuite, Inc.*	(133,300	)			(11,339,831		)
TRADING COMPANIES & DISTRIBUTORS—-0.3%
Fastenal Co.	(282,300	)			(11,054,868		)
WW Grainger, Inc.	(35,700	)				(7,497,000	)
					(18,551,868		)
TOTAL (Proceeds $183,632,839)			$	(167,622,356			)
* Non-income producing security.

Industry classifications are unaudited.
See Notes to Financial Statements.

- 29 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2015


COMMON STOCKS—95.3%	SHARES		VALUE
ADVERTISING—0.0%
Choicestream, Inc.*^,@,(a)	3,619	$	1,520
AEROSPACE & DEFENSE—3.2%
Hexcel Corp.	17,450		808,284
Honeywell International, Inc.	17,515		1,808,949
			2,617,233
AGRICULTURAL & FARM MACHINERY—0.4%
Lindsay Corp.	5,510		373,468
AIR FREIGHT & LOGISTICS—2.2%
FedEx Corp.	5,515		860,616
United Parcel Service, Inc., Cl. B	9,750		1,004,445
			1,865,061
APPLICATION SOFTWARE—1.5%
EnerNOC, Inc.*	37,525		294,196
SAP SE#	11,780		927,204
			1,221,400
AUTO PARTS & EQUIPMENT—3.0%
BorgWarner, Inc.	18,195		779,110
Delphi Automotive PLC.	7,260		603,959
Johnson Controls, Inc.	24,140		1,090,645
			2,473,714
AUTOMOBILE MANUFACTURERS—1.9%
Tesla Motors, Inc.*	7,545		1,561,287
COMMODITY CHEMICALS—0.5%
Calgon Carbon Corp.	24,065		413,918
COMMUNICATIONS EQUIPMENT—1.1%
Cisco Systems, Inc.	31,190		899,831
CONSTRUCTION & ENGINEERING—0.6%
AECOM*	16,870		497,159
CONSUMER ELECTRONICS—1.3%
Harman International Industries, Inc.	9,665		1,062,763
DATA PROCESSING & OUTSOURCED SERVICES—3.7%
Alliance Data Systems Corp.*	3,065		911,255
PayPal Holdings, Inc.*	21,835		786,278
Visa, Inc., Cl. A	17,900		1,388,682
			3,086,215
DISTRIBUTORS—1.8%
LKQ Corp.*	51,590		1,527,580
DRUG RETAIL—1.0%
CVS Caremark Corp.	8,185		808,514
ELECTRIC UTILITIES—1.9%
Duke Energy Corp.	9,935		710,055
ITC Holdings Corp.	27,560		901,763
			1,611,818

- 30 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
ELECTRICAL COMPONENTS & EQUIPMENT—3.9%
Acuity Brands, Inc.	12,295	$	2,687,687
SolarCity Corp.*	17,275		512,204
			3,199,891
ELECTRONIC EQUIPMENT MANUFACTURERS—0.7%
Itron, Inc.*	15,035		552,236
ENVIRONMENTAL & FACILITIES SERVICES—4.1%
Clean Harbors, Inc.*	11,545		536,727
Covanta Holding Corp.	37,680		631,517
Tetra Tech, Inc.	37,500		1,008,750
Waste Management, Inc.	23,160		1,245,081
			3,422,075
FOOD DISTRIBUTORS—1.1%
United Natural Foods, Inc.*	17,545		885,145
FOOTWEAR—3.6%
NIKE, Inc., Cl. B	22,690		2,973,071
HOME IMPROVEMENT RETAIL—3.8%
The Home Depot, Inc.	25,585		3,163,329
HOUSEHOLD PRODUCTS—1.2%
The Procter & Gamble Co.	13,504		1,031,435
HYPERMARKETS & SUPER CENTERS—0.3%
Wal-Mart Stores, Inc.	4,540		259,870
INDUSTRIAL CONGLOMERATES—1.6%
General Electric Co.	44,755		1,294,315
INDUSTRIAL MACHINERY—2.2%
Woodward Governor Co.	19,370		881,335
Xylem, Inc.	25,755		937,740
			1,819,075
INTERNET RETAIL—3.4%
Amazon.com, Inc.*	4,510		2,822,809
INTERNET SOFTWARE & SERVICES—8.3%
Alphabet, Inc., Cl. A*	2,530		1,865,597
Alphabet, Inc., Cl. C*	2,536		1,802,614
eBay, Inc.*	21,835		609,196
Facebook, Inc., Cl. A*	25,840		2,634,905
			6,912,312
LIFE & HEALTH INSURANCE—0.8%
Lincoln National Corp.	12,950		692,954
MANAGED HEALTH CARE—2.4%
Aetna, Inc.	10,900		1,251,102
Humana, Inc.	4,065		726,131
			1,977,233
MOVIES & ENTERTAINMENT—2.3%
The Walt Disney Co.	16,885		1,920,500

- 31 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
PACKAGED FOODS & MEATS—1.1%
The WhiteWave Foods Co.*	22,670	$	929,017
PHARMACEUTICALS—7.8%
Allergan PLC.*	6,980		2,153,121
Bristol-Myers Squibb Co.	28,475		1,877,926
Johnson & Johnson	16,505		1,667,500
Merck & Co., Inc.	14,250		778,905
			6,477,452
RENEWABLE ELECTRICITY—1.0%
8Point3 Energy Partners LP.	2,410		32,439
TerraForm Power, Inc., Cl. A	44,920		819,790
			852,229
RESTAURANTS—4.4%
Chipotle Mexican Grill, Inc.*	2,905		1,859,868
Starbucks Corp.	28,120		1,759,469
			3,619,337
SEMICONDUCTOR EQUIPMENT—0.6%
SunEdison, Inc.*	67,650		493,845
SEMICONDUCTORS—4.3%
Broadcom Corp., Cl. A	20,825		1,070,405
ChipMOS TECHNOLOGIES Bermuda Ltd.	22,060		391,124
First Solar, Inc.*	21,175		1,208,457
Intel Corp.	25,545		864,954
			3,534,940
SOFT DRINKS—2.0%
The Coca-Cola Co.	40,030		1,695,270
SPECIALTY CHEMICALS—1.0%
Chemtura Corp.*	27,245		870,205
SYSTEMS SOFTWARE—2.0%
Microsoft Corp.	31,350		1,650,264
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.3%
Apple, Inc.	47,490		5,675,055
EMC Corp.	15,480		405,886
			6,080,941
TOTAL COMMON STOCKS
(Cost $56,528,855)			79,151,231
PREFERRED STOCKS—0.1%	SHARES		VALUE
ADVERTISING—0.1%
Choicestream, Inc., Cl. A*^,@,(a)	31,215		13,110

- 32 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2015 (Continued)


PREFERRED STOCKS—(CONT.)	SHARES			VALUE
ADVERTISING—(CONT.)
Choicestream, Inc., Cl. B*^,@,(a)	69,819		$	29,324
				42,434
TOTAL PREFERRED STOCKS
(Cost $66,854)				42,434
Total Investments
(Cost $56,595,709)^(b)	95.4	%		79,193,665
Other Assets in Excess of Liabilities	4.6	%		3,828,646
NET ASSETS	100.0	%	$	83,022,311

# American Depositary Receipts.
^(a)Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities in Notes to Financial Statements.
^(b)At October 31, 2015, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $56,619,854, amounted to $22,573,811 which consisted of aggregate gross unrealized appreciation of
$26,012,925 and aggregate gross unrealized depreciation of $3,439,114.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition			(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2015
Choicestream, Inc.	03/14/14	$	1,050	0.00	%	$	1,520	0.00	%
Choicestream, Inc., Cl. A	12/17/13		24,962	0.03	%		13,110	0.02	%
Choicestream, Inc., Cl. B	07/10/14		41,892	0.05	%		29,324	0.03	%
Total						$	43,954	0.05	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 33 -

THE ALGER FUNDS II | ALGER ANALYST FUND
Schedule of Investments October 31, 2015


COMMON STOCKS—96.6%	SHARES		VALUE
AEROSPACE & DEFENSE—2.8%
Honeywell International, Inc.	2,411	$	249,008
AIR FREIGHT & LOGISTICS—0.9%
Forward Air Corp.	1,811		82,147
AIRLINES—1.0%
United Continental Holdings, Inc.*	1,552		93,601
APPAREL ACCESSORIES & LUXURY GOODS—2.1%
Under Armour, Inc., Cl. A*	1,965		186,832
APPLICATION SOFTWARE—1.0%
ACI Worldwide, Inc.*	3,785		90,651
ASSET MANAGEMENT & CUSTODY BANKS—0.9%
PJT Partners, Inc.*	82		1,763
WisdomTree Investments, Inc.	3,946		75,882
			77,645
AUTO PARTS & EQUIPMENT—2.1%
Delphi Automotive PLC.	2,326		193,500
BIOTECHNOLOGY—6.8%
Biogen, Inc.*	454		131,891
Celgene Corp.*	1,501		184,188
Intercept Pharmaceuticals, Inc.*	509		80,015
Vertex Pharmaceuticals, Inc.*	1,739		216,923
			613,017
BROADCASTING—0.9%
CBS Corp., Cl. B	1,694		78,805
BUILDING PRODUCTS—2.0%
Lennox International, Inc.	1,339		177,833
CABLE & SATELLITE—1.2%
Comcast Corporation, Cl. A	1,749		109,522
CONSTRUCTION MATERIALS—1.6%
Vulcan Materials Co.	1,526		147,381
DATA PROCESSING & OUTSOURCED SERVICES—4.5%
Alliance Data Systems Corp.*	416		123,681
Visa, Inc., Cl. A	3,591		278,590
			402,271
EDUCATION SERVICES—1.5%
Grand Canyon Education, Inc.*	3,362		139,725
ENVIRONMENTAL & FACILITIES SERVICES—0.8%
Stericycle, Inc.*	563		68,331
GENERAL MERCHANDISE STORES—2.1%
Dollar Tree, Inc.*	2,942		192,672
HEALTH CARE FACILITIES—0.8%
HCA Holdings, Inc.*	1,095		75,325

- 34 -

THE ALGER FUNDS II | ALGER ANALYST FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
HOME IMPROVEMENT RETAIL—1.3%
The Home Depot, Inc.	984	$	121,662
HOTELS RESORTS & CRUISE LINES—6.0%
Diamond Resorts International, Inc.*	3,342		95,047
Hilton Worldwide Holdings, Inc.	1,982		49,530
Norwegian Cruise Line Holdings Ltd.*	3,664		233,104
Royal Caribbean Cruises Ltd.	1,661		163,359
			541,040
HOUSEWARES & SPECIALTIES—1.7%
Jarden Corp.*	3,466		155,277
INDUSTRIAL CONGLOMERATES—2.2%
Danaher Corp.	2,088		194,831
INTERNET RETAIL—2.4%
Amazon.com, Inc.*	345		215,935
INTERNET SOFTWARE & SERVICES—11.4%
Alphabet, Inc., Cl. C*	318		226,038
Criteo SA#*	3,126		118,976
Facebook, Inc., Cl. A*	3,033		309,275
GrubHub, Inc.*	3,704		88,822
LinkedIn Corp., Cl. A*	698		168,127
Yahoo! Inc.*	3,346		119,184
			1,030,422
INVESTMENT BANKING & BROKERAGE—1.2%
TD Ameritrade Holding Corp.	3,241		111,717
MANAGED HEALTH CARE—0.8%
UnitedHealth Group, Inc.	587		69,137
OIL & GAS EQUIPMENT & SERVICES—3.5%
Baker Hughes, Inc.	2,866		150,981
US Silica Holdings, Inc.	2,047		36,969
Weatherford International PLC.*	12,103		123,934
			311,884
OIL & GAS EXPLORATION & PRODUCTION—2.4%
Anadarko Petroleum Corp.	2,336		156,232
Oasis Petroleum, Inc.*	4,896		56,940
			213,172
PHARMACEUTICALS—5.4%
Aerie Pharmaceuticals, Inc.*	3,479		79,356
Allergan PLC.*	601		185,391
Pacira Pharmaceuticals, Inc.*	752		37,562
Shire PLC.#	827		187,770
			490,079
RAILROADS—1.1%
Genesee & Wyoming, Inc., Cl. A*	1,493		100,180
REGIONAL BANKS—1.0%
Citizens Financial Group, Inc.	3,685		89,546

- 35 -

THE ALGER FUNDS II | ALGER ANALYST FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
RESEARCH & CONSULTING SERVICES—2.6%
CoStar Group, Inc.*	1,151		$	233,734
RESTAURANTS—1.5%
Starbucks Corp.	2,146			134,275
SECURITY & ALARM SERVICES—2.0%
Tyco International PLC.	4,839			176,333
SOFT DRINKS—1.8%
PepsiCo, Inc.	1,554			158,803
SPECIALTY CHEMICALS—2.7%
PPG Industries, Inc.	2,326			242,509
SPECIALTY STORES—6.1%
Signet Jewelers Ltd.	824			124,375
The Michaels Cos, Inc.*	3,861			90,270
Tiffany & Co.	820			67,601
Tractor Supply Co.	1,470			135,813
Ulta Salon, Cosmetics & Fragrance, Inc.*	773			134,471
				552,530
SYSTEMS SOFTWARE—3.4%
ServiceNow, Inc.*	1,892			154,482
TubeMogul, Inc.*	12,357			147,666
				302,148
TRADING COMPANIES & DISTRIBUTORS—1.7%
HD Supply Holdings, Inc.*	4,993			148,741
WIRELESS TELECOMMUNICATION SERVICES—1.4%
SBA Communications Corp., Cl. A*	1,096			130,446
TOTAL COMMON STOCKS
(Cost $8,039,664)				8,702,667
MASTER LIMITED PARTNERSHIP—1.2%	SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.2%
The Blackstone Group LP.	3,301			109,131
(Cost $114,497)				109,131
Total Investments
(Cost $8,154,161)^(a)	97.8	%		8,811,798
Other Assets in Excess of Liabilities	2.2	%		199,987
NET ASSETS	100.0	%	$	9,011,785

# American Depositary Receipts.
^(a)At October 31, 2015, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $8,159,046, amounted to $652,752 which consisted of aggregate gross unrealized appreciation of $1,233,541
and aggregate gross unrealized depreciation of $580,789.
* Non-income producing security.

Industry classifications are unaudited.
See Notes to Financial Statements.

- 36 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2015




COMMON STOCKS—65.7%	SHARES		VALUE
AEROSPACE & DEFENSE—3.6%
General Dynamics Corp.	5,350	$	794,903
Hexcel Corp.	14,610		676,735
Honeywell International, Inc.	10,505		1,084,957
The Boeing Co.	13,430		1,988,580
			4,545,175
AIRLINES—0.6%
Delta Air Lines, Inc.	14,870		755,991
APPAREL ACCESSORIES & LUXURY GOODS—0.9%
Ralph Lauren Corp.	9,874		1,093,743
APPAREL RETAIL—0.9%
VF Corp.	15,965		1,077,957
APPLICATION SOFTWARE—2.1%
Blackbaud, Inc.	15,025		941,917
Guidewire Software, Inc.*	18,550		1,080,167
salesforce.com, inc.*	8,030		624,011
			2,646,095
AUTO PARTS & EQUIPMENT—1.1%
Delphi Automotive PLC.	16,075		1,337,279
BIOTECHNOLOGY—4.1%
BioMarin Pharmaceutical, Inc.*	2,690		314,838
Celgene Corp.*	10,410		1,277,411
Gilead Sciences, Inc.⁺	10,115		1,093,735
Incyte Corp.*	7,400		869,722
Vertex Pharmaceuticals, Inc.*	12,480		1,556,755
			5,112,461
BREWERS—1.5%
Molson Coors Brewing Co., Cl. B	14,645		1,290,225
SABMiller PLC.	9,980		612,847
			1,903,072
BROADCASTING—0.6%
CBS Corp., Cl. B	15,564		724,037
CABLE & SATELLITE—1.7%
Comcast Corporation, Cl. A⁺	34,558		2,164,022
CONSUMER FINANCE—0.8%
LendingClub Corp.*	73,080		1,036,274
DATA PROCESSING & OUTSOURCED SERVICES—2.7%
Alliance Data Systems Corp.*	3,540		1,052,477
Fiserv, Inc.*	6,970		672,675
Vantiv, Inc., CL. A*	13,365		670,255
Visa, Inc., Cl. A	12,170		944,148
			3,339,555
DRUG RETAIL—0.4%
CVS Caremark Corp.⁺	5,595		552,674

- 37 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
ENVIRONMENTAL & FACILITIES SERVICES—0.6%
Stericycle, Inc.*	6,130	$	743,998
GENERAL MERCHANDISE STORES—0.3%
Burlington Stores, Inc.*	6,655		319,972
HEALTH CARE EQUIPMENT—3.2%
DexCom, Inc.*	13,660		1,138,151
Edwards Lifesciences Corp.*	4,290		674,174
Hologic, Inc.*	28,104		1,092,121
Intuitive Surgical, Inc.*	670		332,722
Steris Corp.*	9,867		739,532
			3,976,700
HEALTH CARE FACILITIES—0.5%
Universal Health Services, Inc., Cl. B	5,302		647,321
HEALTH CARE SUPPLIES—0.5%
Neogen Corp.*	11,590		626,440
HOME IMPROVEMENT RETAIL—1.4%
The Home Depot, Inc.⁺	14,550		1,798,962
HOTELS RESORTS & CRUISE LINES—1.2%
Norwegian Cruise Line Holdings Ltd.*	9,915		630,792
Royal Caribbean Cruises Ltd.	8,990		884,167
			1,514,959
INDUSTRIAL CONGLOMERATES—0.9%
Danaher Corp.	11,690		1,090,794
INTERNET RETAIL—2.3%
Amazon.com, Inc.*⁺	4,625		2,894,788
INTERNET SOFTWARE & SERVICES—5.3%
Alphabet, Inc., Cl. C*⁺	3,382		2,403,959
Criteo SA#*	24,470		931,328
Cvent, Inc.*	8,855		279,907
Demandware, Inc.*	13,675		775,373
Facebook, Inc., Cl. A*⁺	14,960		1,525,471
Palantir Technologies, Inc., Cl. A*^,@	6,606		59,454
Tencent Holdings Ltd.	15,810		297,194
Yahoo! Inc.*	10,170		362,255
			6,634,941
INVESTMENT BANKING & BROKERAGE—0.6%
Morgan Stanley	21,600		712,152
LIFE SCIENCES TOOLS & SERVICES—1.0%
ThermoFisherScientific,Inc.	9,935		1,299,299
MANAGED HEALTH CARE—1.7%
Aetna, Inc.	8,150		935,457
UnitedHealth Group, Inc.	10,075		1,186,634
			2,122,091
MOVIES & ENTERTAINMENT—1.7%
Lions Gate Entertainment Corp.	20,132		784,544

- 38 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
MOVIES & ENTERTAINMENT—(CONT.)
Live Nation Entertainment, Inc.*	22,440	$	612,163
The Walt Disney Co.	5,830		663,104
			2,059,811
MULTI-LINE INSURANCE—0.7%
Hartford Financial Services Group, Inc.	20,130		931,214
OIL & GAS EXPLORATION & PRODUCTION—0.8%
Anadarko Petroleum Corp.	14,115		944,011
OTHER DIVERSIFIED FINANCIAL SERVICES—1.0%
Bank of America Corp.	76,700		1,287,026
PHARMACEUTICALS—5.0%
Allergan PLC.*⁺	3,977		1,226,785
Bristol-Myers Squibb Co.	20,025		1,320,649
Pfizer,Inc.	43,190		1,460,686
Shire PLC.#	9,950		2,259,147
			6,267,267
REGIONAL BANKS—1.6%
Citizens Financial Group, Inc.	79,810		1,939,383
RENEWABLE ELECTRICITY—0.1%
TerraForm Global, Inc., Cl. A*^,@,(a)	21,123		145,050
RESEARCH & CONSULTING SERVICES—1.5%
Verisk Analytics, Inc., Cl. A*	25,800		1,847,538
RESTAURANTS—2.2%
McDonald's Corp.	19,110		2,145,097
Shake Shack, Inc., Cl. A*	14,035		639,575
			2,784,672
SEMICONDUCTOR EQUIPMENT—0.3%
Lam Research Corp.	4,290		328,571
SEMICONDUCTORS—2.9%
Avago Technologies Ltd.⁺	7,725		951,179
Broadcom Corp., Cl. A	8,655		444,867
Microsemi Corp.*	18,170		654,302
NXP Semiconductors NV*⁺	19,530		1,530,176
			3,580,524
SOFT DRINKS—1.5%
PepsiCo, Inc.⁺	18,075		1,847,084
SYSTEMS SOFTWARE—2.8%
Microsoft Corp.⁺	42,170		2,219,829
ServiceNow, Inc.*	8,210		670,346
TubeMogul, Inc.*	48,185		575,811
			3,465,986
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—1.6%
Apple, Inc.⁺	16,180		1,933,510
TRADING COMPANIES & DISTRIBUTORS—1.5%
HD Supply Holdings, Inc.*⁺	46,890		1,396,853

- 39 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)			SHARES		VALUE
TRADING COMPANIES & DISTRIBUTORS—(CONT.)
United Rentals, Inc.*			7,145	$	534,875
					1,931,728
TOTAL COMMON STOCKS
(Cost $77,064,840)					81,964,127
PREFERRED STOCKS—0.7%			SHARES		VALUE
BIOTECHNOLOGY—0.4%
Prosetta Biosciences, Inc.*^,@,(b)			41,418		186,381
Tolero Pharmaceuticals, Inc.*^,@,(b)			106,120		320,069
					506,450
INTERNET SOFTWARE & SERVICES—0.2%
Palantir Technologies, Inc., Cl. B*^,@			26,941		242,469
Palantir Technologies, Inc., Cl. D*^,@			3,510		31,590
					274,059
PHARMACEUTICALS—0.1%
Intarcia Therapeutics, Inc.*^,@			2,964		111,683
TOTAL PREFERRED STOCKS
(Cost $803,532)					892,192
RIGHTS—0.0%			SHARES		VALUE
BIOTECHNOLOGY—0.0%
Adolor Corp., CPR, 12/31/2049*^,@,(c)			49,870		–
(Cost $0)					–
MASTER LIMITED PARTNERSHIP—1.7%			SHARES		VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.7%
The Blackstone Group LP.			63,495		2,099,145
(Cost $2,173,449)					2,099,145
REAL ESTATE INVESTMENT TRUST—1.6%			SHARES		VALUE
MORTGAGE—1.0%
Blackstone Mortgage Trust, Inc., Cl. A⁺			46,285		1,273,763
SPECIALIZED—0.6%
Crown Castle International Corp.			8,516		727,777
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $2,068,601)					2,001,540
U.S. GOVERNMENT AGENCY OBLIGATIONS (EXCLUDING			PRINCIPAL
MORTGAGE-BACKED)—20.1%			AMOUNT		VALUE
United States Treasury Bill, 0.00% 11/19/15	$	25,000,000			24,999,845
(Cost $24,999,845)					24,999,845

- 40 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2015 (Continued)


SPECIAL PURPOSE VEHICLE—0.1%	SHARES			VALUE
CONSUMER FINANCE—0.1%
JS Kred SPV I, LLC.^@	159,212		$	159,212
(Cost $159,212)				159,212
Total Investments
(Cost $107,269,479)^(d)	89.9	%		112,116,061
Other Assets in Excess of Liabilities	10.1	%		12,518,786
NET ASSETS	100.0	%	$	124,634,847

# American Depositary Receipts.
^(a)Pursuant to Securities and Exchange Commission Rule 144A deemed illiquid until eligible for sale on January 27,
2016.
^(b)Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment
Company Act of 1940. See Affiliated Securities in Notes to Financial Statements.
^(c)Right - Contingent Payment Right granted December 13, 2011 and may not be sold. Right is deemed to be illiquid
and represents 0.0% of the net assets of the Fund.
^(d)At October 31, 2015, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $108,061,595, amounted to $4,054,466 which consisted of aggregate gross unrealized appreciation of
$5,821,868 and aggregate gross unrealized depreciation of $1,767,402.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed
to not be liquid and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition			(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2015
Adolor Corp., CPR	10/24/11	$	–	0.00	%	$	–	–	%
Intarcia Therapeutics, Inc.	03/27/14		96,003	0.14	%		111,683	0.08	%
JS Kred SPV I, LLC.	06/26/15		159,212	0.15	%		159,212	0.13	%
Palantir Technologies, Inc., Cl. A	10/07/14		42,985	0.05	%		59,454	0.05	%
Palantir Technologies, Inc., Cl. B	10/07/14		177,903	0.22	%		242,469	0.19	%
Palantir Technologies, Inc., Cl. D	10/14/14		23,176	0.03	%		31,590	0.03	%
Prosetta Biosciences, Inc.	02/06/15		186,381	0.25	%		186,381	0.15	%
TerraForm Global, Inc., Cl. A	06/08/15		301,000	0.30	%		145,050	0.12	%
Tolero Pharmaceuticals, Inc.	08/01/14		154,147	0.20	%		154,147	0.13	%
Tolero Pharmaceuticals, Inc.	10/31/2014		165,922	0.20	%		165,922	0.13	%
Total						$	1,255,908	1.01	%

+ All or a portion of this security is held as collateral for securities sold short.

Industry classifications are unaudited.
See Notes to Financial Statements.

- 41 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments- Securities Sold Short October 31, 2015


COMMON STOCKS—-12.9%	SHARES			VALUE
AGRICULTURAL & FARM MACHINERY—-0.4%
Deere & Co.	(5,990	)	$	(467,220	)
APPAREL RETAIL—-0.4%
The Gap, Inc.	(20,050	)		(545,761	)
APPLICATION SOFTWARE—-0.1%
King Digital Entertainment, PLC.	(3,985	)		(59,616	)
ASSET MANAGEMENT & CUSTODY BANKS—-0.2%
T. Rowe Price Group, Inc.	(2,710	)		(204,930	)
BREWERS—-0.4%
The Boston Beer Co., Inc., Cl. A*	(2,210	)		(485,294	)
BROADCASTING—-0.3%
Scripps Networks Interactive, Inc., Cl. A	(7,064	)		(424,405	)
COMMUNICATIONS EQUIPMENT—-0.4%
Palo Alto Networks, Inc.*	(1,815	)		(292,215	)
Polycom, Inc.*	(21,585	)		(297,441	)
				(589,656	)
COMPUTER & ELECTRONICS RETAIL—-0.2%
Best Buy Co., Inc.	(7,210	)		(252,566	)
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—-0.3%
PACCAR, Inc.	(7,345	)		(386,714	)
CONSUMER FINANCE—-0.1%
Capital One Financial Corp.	(1,940	)		(153,066	)
DIVERSIFIED BANKS—-0.3%
SPDR S&P Regional Banking ETF	(7,445	)		(318,869	)
ELECTRICAL COMPONENTS & EQUIPMENT—-0.2%
Emerson Electric Co.	(5,545	)		(261,890	)
GENERAL MERCHANDISE STORES—-0.5%
Target Corp.	(8,445	)		(651,785	)
HEALTH CARE EQUIPMENT—-0.8%
Varian Medical Systems, Inc.*	(7,971	)		(625,963	)
Zimmer Biomet Holdings, Inc.	(3,746	)		(391,719	)
				(1,017,682	)
HEALTH CARE FACILITIES—-0.2%
Community Health Systems, Inc.*	(8,845	)		(248,014	)
HOME FURNISHING RETAIL—-0.1%
Bed Bath & Beyond, Inc.*	(1,085	)		(64,699	)
INDUSTRIAL MACHINERY—-0.5%
Donaldson Co., Inc.	(22,050	)		(665,910	)
INSURANCE BROKERS—-0.3%
Aon PLC.	(4,620	)		(431,092	)
INTERNET SOFTWARE & SERVICES—-0.5%
Constant Contact, Inc.*	(11,025	)		(287,753	)
Zillow Group, Inc.*	(13,630	)		(377,415	)
				(665,168	)

- 42 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments- Securities Sold Short October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
IT CONSULTING & OTHER SERVICES—-0.8%
Accenture PLC., Cl. A	(3,880	)	$	(415,936	)
Cognizant Technology Solutions Corp., Cl. A*	(8,930	)		(608,222	)
				(1,024,158	)
LIFE & HEALTH INSURANCE—-0.3%
MetLife, Inc.	(7,030	)		(354,171	)
MARKET INDICES—-1.2%
iShares Russell 2000	(2,873	)		(331,372	)
iShares Russell 2000 Growth	(3,115	)		(440,928	)
Powershares QQQ Trust Series 1	(5,535	)		(627,282	)
				(1,399,582	)
REGIONAL BANKS—-0.6%
Cullen/Frost Bankers, Inc.	(4,790	)		(327,828	)
Hancock Holding Co.	(15,310	)		(422,556	)
				(750,384	)
RESTAURANTS—-0.9%
Brinker International, Inc.	(11,880	)		(540,659	)
Dunkin' Brands Group, Inc.	(4,935	)		(204,358	)
Jack in the Box, Inc.	(4,130	)		(307,809	)
				(1,052,826	)
SEMICONDUCTORS—-1.0%
Linear Technology Corp.	(11,540	)		(512,607	)
Taiwan Semiconductor Manufacturing Co., Ltd.#	(13,600	)		(298,656	)
Texas Instruments, Inc.	(8,367	)		(474,576	)
				(1,285,839	)
SPECIALIZED FINANCE—-0.1%
On Deck Capital, Inc.*	(15,640	)		(148,893	)
SPECIALTY CHEMICALS—-0.3%
The Valspar Corp.	(4,875	)		(394,631	)
SYSTEMS SOFTWARE—-1.0%
Check Point Software Technologies Ltd.*	(5,075	)		(431,071	)
NetSuite, Inc.*	(4,025	)		(342,407	)
Oracle Corp.	(11,280	)		(438,115	)
				(1,211,593	)
TOBACCO—-0.3%
Philip Morris International, Inc.	(3,830	)		(338,572	)
TRADING COMPANIES & DISTRIBUTORS—-0.2%
Fastenal Co.	(6,715	)		(262,959	)
TOTAL Common Stocks			$ (16,117,945)
(Proceeds $16,626,215)
REAL ESTATE INVESTMENT TRUST—-0.4%	SHARES			VALUE
OFFICE REITS—-0.2%
Boston Properties, Inc.	(2,040	)		(256,734	)

- 43 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments- Securities Sold Short October 31, 2015 (Continued)


REAL ESTATE INVESTMENT TRUST—(CONT.)	SHARES			VALUE
RETAIL REITS—-0.2%
Simon Property Group, Inc.	(1,255	)	$	(252,832	)
TOTAL Real Estate Investment Trust			$	(509,566	)
(Proceeds $479,619)
TOTAL (Proceeds $17,105,834)			$ (16,627,511)

* Non-income producing security.
# American Depositary Receipts.
Industry classifications are unaudited.
See Notes to Financial Statements.

- 44 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2015


COMMON STOCKS—95.4%	SHARES		VALUE
BRAZIL—5.2%
BREWERS—0.9%
Ambev SA	50,535	$	250,066
DATA PROCESSING & OUTSOURCED SERVICES—0.7%
Cielo SA	19,990		189,766
DIVERSIFIED BANKS—1.1%
Itau Unibanco Holding SA#	44,532		305,044
INDUSTRIAL MACHINERY—0.5%
WEG SA	37,628		140,397
MANAGED HEALTH CARE—0.6%
Odontoprev SA	58,884		150,810
MULTI-LINE INSURANCE—0.6%
BB Seguridade Participacoes SA	21,500		148,171
PAPER PRODUCTS—0.8%
Suzano Papel e Celulose SA	53,181		228,089
TOTAL BRAZIL
(Cost $1,970,078)			1,412,343
CAYMAN ISLANDS—1.3%
RESTAURANTS—1.3%
Gourmet Master Co., Ltd.	58,000		352,392
(Cost $309,307)
CHILE—0.9%
BREWERS—0.9%
Cia Cervecerias Unidas SA#	10,000		239,700
(Cost $206,508)
CHINA—22.6%
APPAREL ACCESSORIES & LUXURY GOODS—1.0%
Li Ning Co., Ltd.*	525,000		273,541
CONSTRUCTION & ENGINEERING—1.9%
China Communications Construction Co., Ltd.	172,206		237,675
China State Construction International Holdings Ltd.	185,568		281,579
			519,254
CONSUMER ELECTRONICS—0.8%
Haier Electronics Group Co., Ltd.	116,000		223,888
ELECTRONIC EQUIPMENT MANUFACTURERS—1.0%
PAX Global Technology Ltd.	202,145		263,816
HEALTH CARE FACILITIES—0.9%
Phoenix Healthcare Group Co., Ltd.	156,913		237,213
HOTELS RESORTS & CRUISE LINES—0.8%
Ctrip.com International Ltd.#*	2,470		229,636
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS—1.5%
Huadian Power International Corp., Ltd.	256,000		188,161
Huaneng Renewables Corp., Ltd.	717,760		221,059
			409,220
INDUSTRIAL CONGLOMERATES—1.3%
China Everbright International Ltd.	223,299		359,592

- 45 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
CHINA—(CONT.)
INTEGRATED OIL & GAS—1.0%
China Petroleum & Chemical Corp.	381,423	$	273,954
INTERNET RETAIL—1.6%
Qunar Cayman Islands Ltd.#*	2,502		121,447
Vipshop Holdings Ltd.#*	14,487		297,273
			418,720
INTERNET SOFTWARE & SERVICES—4.7%
Alibaba Group Holding Ltd.#*	3,707		310,758
Tencent Holdings Ltd.	50,907		956,941
			1,267,699
LIFE & HEALTH INSURANCE—2.8%
China Life Insurance Co., Ltd.	105,047		378,806
Ping An Insurance Group Co., of China Ltd.	65,232		366,581
			745,387
REAL ESTATE DEVELOPMENT—1.0%
China Overseas Land & Investment Ltd.	81,033		261,724
WIRELESS TELECOMMUNICATION SERVICES—2.3%
China Mobile Ltd.	51,230		613,907
TOTAL CHINA
(Cost $5,746,374)			6,097,551
COLOMBIA—1.2%
CONSTRUCTION MATERIALS—0.9%
Cementos Argos SA	73,641		231,574
PACKAGED FOODS & MEATS—0.3%
Grupo Nutresa SA	10,970		82,625
TOTAL COLOMBIA
(Cost $381,846)			314,199
HONG KONG—2.0%
FOOD RETAIL—0.8%
China Resources Beer Holdings Company Ltd.	118,000		222,499
LIFE & HEALTH INSURANCE—1.2%
AIA Group Ltd.	54,895		321,513
TOTAL HONG KONG
(Cost $513,225)			544,012
INDIA—11.3%
AUTO PARTS & EQUIPMENT—1.2%
Motherson Sumi Systems Ltd.	85,150		320,140
AUTOMOBILE MANUFACTURERS—0.8%
Maruti Suzuki India Ltd.	3,003		204,841
CONSTRUCTION & ENGINEERING—0.9%
Voltas Ltd.	55,425		238,847
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.9%
Tata Motors Ltd.#*	8,330		246,318
CONSTRUCTION MATERIALS—0.8%
Shree Cement Ltd.	1,204		224,855

- 46 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
INDIA—(CONT.)
DIVERSIFIED BANKS—2.5%
Axis Bank Ltd.	41,465	$	300,373
HDFC Bank Ltd.	18,715		376,172
			676,545
OIL & GAS REFINING & MARKETING—0.8%
Reliance Industries Ltd.	14,560		210,466
PHARMACEUTICALS—2.5%
Aurobindo Pharma Ltd.	37,932		482,394
Sun Pharmaceutical Industries Ltd.	14,980		203,187
			685,581
WIRELESS TELECOMMUNICATION SERVICES—0.9%
Bharti Infratel Ltd.	41,917		249,439
TOTAL INDIA
(Cost $2,654,299)			3,057,032
INDONESIA—2.0%
ALTERNATIVE CARRIERS—1.1%
Tower Bersama Infrastructure Tbk PT*	547,912		285,358
DIVERSIFIED BANKS—0.9%
Bank Rakyat Indonesia Persero Tbk., PT	334,569		256,064
TOTAL INDONESIA
(Cost $589,726)			541,422
LUXEMBOURG—1.3%
APPLICATION SOFTWARE—0.8%
Globant SA*	5,940		205,346
PACKAGED FOODS & MEATS—0.5%
Adecoagro SA*	13,900		147,201
TOTAL LUXEMBOURG
(Cost $311,689)			352,547
MALAYSIA—1.1%
BROADCASTING—0.5%
Astro Malaysia Holdings Bhd	200,300		133,174
HEALTH CARE FACILITIES—0.6%
KPJ Healthcare Bhd.	154,273		153,296
TOTAL MALAYSIA
(Cost $328,753)			286,470
MEXICO—5.6%
DIVERSIFIED REAL ESTATE ACTIVITIES—1.4%
Corp Inmobiliaria Vesta SAB de CV	235,881		386,615
GAS UTILITIES—1.2%
Infraestructura Energetica Nova SAB de CV	65,475		314,615
PACKAGED FOODS & MEATS—0.6%
Gruma SAB de CV, Cl. B	10,600		162,638
RESTAURANTS—1.0%
Alsea SAB de CV	82,700		270,945

- 47 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
MEXICO—(CONT.)
SPECIALIZED FINANCE—1.4%
UnifinFinancieraSAPIdeCVSOFOMENR*	121,856	$	368,031
TOTAL MEXICO
(Cost $1,353,393)			1,502,844
PERU—0.9%
DIVERSIFIED BANKS—0.9%
Credicorp Ltd.	2,074		234,735
(Cost $283,510)
PHILIPPINES—1.3%
PACKAGED FOODS & MEATS—1.3%
Universal Robina Corp.	84,591		362,468
(Cost $346,571)
RUSSIA—4.0%
DATA PROCESSING & OUTSOURCED SERVICES—0.6%
QIWI PLC.#	10,200		175,542
FOOD RETAIL—1.3%
Magnit PJSC(a)	3,930		178,376
X5 Retail Group NV*,(a)	8,270		170,924
			349,300
IT CONSULTING & OTHER SERVICES—2.1%
Luxoft Holding, Inc.*	8,429		561,709
TOTAL RUSSIA
(Cost $896,601)			1,086,551
SOUTH AFRICA—6.2%
APPAREL RETAIL—0.9%
Mr Price Group Ltd.	15,997		245,853
ASSET MANAGEMENT & CUSTODY BANKS—1.3%
Brait SE	30,348		347,803
CABLE & SATELLITE—2.0%
Naspers Ltd.	3,663		535,250
OTHER DIVERSIFIED FINANCIAL SERVICES—1.1%
FirstRand Ltd.	82,622		303,022
PHARMACEUTICALS—0.9%
Aspen Pharmacare Holdings Ltd.	10,248		229,933
TOTAL SOUTH AFRICA
(Cost $1,486,700)			1,661,861
SOUTH KOREA—14.6%
AUTOMOBILE MANUFACTURERS—0.9%
Hyundai Motor Co.	1,834		250,144
BUILDING PRODUCTS—1.0%
LG Hausys Ltd.	1,732		256,859
COMMODITY CHEMICALS—0.9%
LG Chem Ltd.	940		249,521
DIVERSIFIED BANKS—1.0%
Shinhan Financial Group Co., Ltd.	7,071		269,467

- 48 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
SOUTH KOREA—(CONT.)
HOME FURNISHINGS—0.5%
Hanssem Co., Ltd.	606	$	123,656
HOUSEHOLD PRODUCTS—1.2%
LG Household & Health Care Ltd.	386		318,932
INTERNET SOFTWARE & SERVICES—1.2%
NAVER Corp.	641		336,075
PACKAGED FOODS & MEATS—0.9%
CJ CheilJedang Corp.	809		247,395
PROPERTY & CASUALTY INSURANCE—1.3%
Hyundai Marine & Fire Insurance Co., Ltd.	12,043		358,080
SEMICONDUCTOR EQUIPMENT—0.5%
Eo Technics Co., Ltd.	1,466		127,615
SEMICONDUCTORS—4.5%
Samsung Electronics Co., Ltd.	1,019		1,220,406
SPECIALTY STORES—0.7%
LOTTE Himart Co., Ltd.	3,697		188,280
TOTAL SOUTH KOREA
(Cost $3,792,176)			3,946,430
TAIWAN—9.6%
COMPUTER STORAGE & PERIPHERALS—1.1%
Primax Electronics Ltd.	217,000		283,905
DEPARTMENT STORES—0.6%
Poya International Co., Ltd.	14,180		161,069
DIVERSIFIED BANKS—1.8%
E.Sun Financial Holding Co., Ltd.	512,055		307,746
SinoPac Financial Holdings Co., Ltd.	569,544		187,960
			495,706
ELECTRONIC EQUIPMENT MANUFACTURERS—0.9%
Chroma ATE, Inc.	139,900		249,352
SEMICONDUCTORS—5.2%
ASPEED Technology, Inc.	19,079		211,266
Chipbond Technology Corp.	168,000		239,079
eMemory Technology, Inc.	20,000		205,479
Sitronix Technology Corp.	98,000		274,428
Taiwan Semiconductor Manufacturing Co., Ltd.	110,000		463,482
			1,393,734
TOTAL TAIWAN
(Cost $2,663,070)			2,583,766
THAILAND—1.7%
CATALOG RETAIL—0.2%
COL PCL	41,046		44,292
CONSTRUCTION MATERIALS—0.8%
The Siam Cement PCL	16,000		203,837

- 49 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2015 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
THAILAND—(CONT.)
HIGHWAYS & RAILTRACKS—0.7%
Airports of Thailand PCL.	24,200		$	201,835
TOTAL THAILAND
(Cost $518,157)				449,964
UNITED ARAB EMIRATES—0.8%
DIVERSIFIED BANKS—0.8%
Abu Dhabi Commercial Bank PJSC	101,948			206,961
(Cost $213,183)
UNITED KINGDOM—1.8%
AIRLINES—1.3%
Wizz Air Holdings PLC.*	11,776			343,987
BREWERS—0.5%
SABMiller PLC.	2,398			147,255
TOTAL UNITED KINGDOM
(Cost $354,858)				491,242
TOTAL COMMON STOCKS
(Cost $24,920,024)				25,724,490
SPECIAL PURPOSE VEHICLE—0.2%	SHARES			VALUE
UNITED STATES—0.2%
CONSUMER FINANCE—0.2%
JS Kred SPV I, LLC.^@	43,241			43,241
(Cost $43,241)
Total Investments
(Cost $24,963,265)^(b)	95.6	%		25,767,731
Other Assets in Excess of Liabilities	4.4	%		1,191,553
NET ASSETS	100.0	%	$	26,959,284

# American Depositary Receipts.
^(a)Global Depositary Receipts.
^(b)At October 31, 2015, the net unrealized appreciation on investments, based on cost for federal income tax purposes of
$25,195,097, amounted to $572,634 which consisted of aggregate gross unrealized appreciation of $2,758,038 and aggregate gross
unrealized depreciation of $2,185,404.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be liquid
and may be sold only to qualified buyers.


				% of net assets				% of net assets
	Acquisition			(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2015
JS Kred SPV I, LLC.	06/26/15	$	43,241	0.15	%	$	43,241	0.16	%
Total						$	43,241	0.16	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 50 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2015


	Alger Spectra Fund			Alger Green Fund

ASSETS:
Investmentsinsecurities,atvalue(Identifiedcostbelow)*
see accompanying schedules of investments	$	5,491,712,032		$	79,149,711
Investmentsinaffiliatedsecurities,atvalue(Identifiedcost
below)** see accompanying schedules of investments		15,406,225			43,954
Cash and cash equivalents (a)		150,438,392			4,268,263
Receivable for investment securities sold		299,545,057			604,878
Receivableforsharesofbeneficialinterestsold		20,460,542			132,563
Dividends and interest receivable		2,999,463			31,326
Prepaid expenses		149,856			37,557
Total Assets		5,980,711,567			84,268,252

LIABILITIES:
Securities sold short, at value ‡		167,622,356			—
Payable for investment securities purchased		199,562,319			854,286
Payableforsharesofbeneficialinterestredeemed		17,894,848			246,260
Accrued investment advisory fees		3,560,279			48,904
Accrued transfer agent fees		1,412,930			35,032
Accrued distribution fees		1,445,704			20,884
Accrued administrative fees		125,474			1,894
Accrued shareholder administrative fees		62,339			905
Dividends payable		378,300			—
Accrued other expenses		439,977			37,776
Total Liabilities		392,504,526			1,245,941
NET ASSETS	$	5,588,207,041		$	83,022,311

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		4,455,885,343			59,404,960
Undistributed net investment income (accumulated loss)		(19,169,843	)		(30,136	)
Undistributed net realized gain		361,347,426			1,049,530
Net unrealized appreciation on investments		790,144,115			22,597,957
NET ASSETS	$	5,588,207,041		$	83,022,311
*Identifiedcost	$	4,716,340,030		$	56,527,805
**Identifiedcost	$	16,644,594		$	67,904
‡ Proceeds received on short sales	$	183,632,839		$	—
(a) Includes restricted cash held as collateral for short sales	$	41,617,997		$	—
*SeeNotestoFinancialStatements.*

- 51 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2015 (Continued)


	Alger Spectra Fund		Alger Green Fund

NET ASSETS BY CLASS:
Class A	$	2,243,901,010	$	34,213,070
Class C	$	899,108,025	$	5,949,569
Class I	$	1,251,394,601	$	42,859,672
Class Z	$	1,193,803,405	$	—

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		121,599,767		3,656,252
Class C		51,494,270		673,049
Class I		67,271,458		4,585,448
Class Z		63,846,665		—

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	18.45	$	9.36
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	19.48	$	9.88
Class C — Net Asset Value Per Share Class C	$	17.46	$	8.84
Class I — Net Asset Value Per Share Class I	$	18.60	$	9.35
Class Z — Net Asset Value Per Share Class Z	$	18.70	$	—
*SeeNotestoFinancialStatements.*

- 52 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2015 (Continued)


					Alger Dynamic
	Alger Analyst Fund			Opportunities Fund

ASSETS:
Investmentsinsecurities,atvalue(Identifiedcostbelow)*
see accompanying schedules of investments	$	8,811,798		$	111,609,611
Investmentsinaffiliatedsecurities,atvalue(Identifiedcost
below)** see accompanying schedules of investments		—			506,450
Cash and cash equivalents (a)		195,124			38,457,934
Receivable for investment securities sold		170,978			8,128,565
Receivableforsharesofbeneficialinterestsold		—			583,233
Dividends and interest receivable		3,651			45,386
Receivable from Investment Manager		7,086			—
Prepaid expenses		33,797			47,146
Total Assets		9,222,434			159,378,325

LIABILITIES:
Securities sold short, at value ‡		—			16,627,511
Payable for investment securities purchased		168,271			17,675,651
Payableforsharesofbeneficialinterestredeemed		6,425			214,239
Accrued investment advisory fees		5,528			126,194
Accrued transfer agent fees		1,308			17,552
Accrued distribution fees		2,050			22,431
Accrued administrative fees		203			2,892
Accrued shareholder administrative fees		111			1,477
Dividends payable		—			17,710
Accrued other expenses		26,753			37,821
Total Liabilities		210,649			34,743,478
NET ASSETS	$	9,011,785		$	124,634,847

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		7,986,383			118,065,880
Undistributed net investment income (accumulated loss)		(68,354	)		(1,238,473	)
Undistributed net realized gain		436,126			2,482,534
Net unrealized appreciation on investments		657,630			5,324,906
NET ASSETS	$	9,011,785		$	124,634,847
*Identifiedcost	$	8,154,161		$	106,763,029
**Identifiedcost	$	—		$	506,450
‡ Proceeds received on short sales	$	—		$	17,105,834
(a) Includes restricted cash held as collateral for short sales	$	—		$	19,105,029
*SeeNotestoFinancialStatements.*

- 53 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2015 (Continued)


				Alger Dynamic
	Alger Analyst Fund		Opportunities Fund

NET ASSETS BY CLASS:
Class A	$	6,707,271	$	67,533,284
Class C	$	336,782	$	10,135,618
Class I	$	1,967,732	$	—
Class Z	$	—	$	46,965,945

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		517,316		5,411,967
Class C		27,395		845,872
Class I		152,221		—
Class Z		—		3,714,540

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	12.97	$	12.48
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	13.68	$	13.17
Class C — Net Asset Value Per Share Class C	$	12.29	$	11.98
Class I — Net Asset Value Per Share Class I	$	12.93	$	—
Class Z — Net Asset Value Per Share Class Z	$	—	$	12.64
*SeeNotestoFinancialStatements.*

- 54 -


THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2015 (Continued)



		Alger Emerging
		Markets Fund

ASSETS:
Investmentsinsecurities,atvalue(Identifiedcostbelow)*
see accompanying schedules of investments	$	25,767,731
Cash and cash equivalents		1,085,922
Foreign cash †		88,013
Receivable for investment securities sold		92,596
Receivableforsharesofbeneficialinterestsold		41,921
Dividends and interest receivable		3,921
Prepaid expenses		93,123
Total Assets		27,173,227

LIABILITIES:
Payable for investment securities purchased		85,607
Payableforsharesofbeneficialinterestredeemed		6,325
Due to investment advisor		46,154
Accrued transfer agent fees		9,467
Accrued distribution fees		6,387
Accrued administrative fees		622
Accrued shareholder administrative fees		285
Accrued other expenses		59,096
Total Liabilities		213,943
NET ASSETS	$	26,959,284

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		30,117,873
Undistributed net investment income (accumulated loss)		(134,693	)
Undistributed net realized gain (accumulated realized loss)		(3,828,441	)
Net unrealized appreciation on investments		804,545
NET ASSETS	$	26,959,284
*Identifiedcost	$	24,963,265
† Cost of foreign cash	$	88,014
*SeeNotestoFinancialStatements.*

- 55 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2015 (Continued)


		Alger Emerging
		Markets Fund

NET ASSETS BY CLASS:
Class A	$	8,270,159
Class C	$	2,581,452
Class I	$	11,813,542
Class Z	$	4,294,131

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		967,074
Class C		311,117
Class I		1,390,179
Class Z		501,564

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	8.55
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	9.03
Class C — Net Asset Value Per Share Class C	$	8.30
Class I — Net Asset Value Per Share Class I	$	8.50
Class Z — Net Asset Value Per Share Class Z	$	8.56
*SeeNotestoFinancialStatements.*

- 56 -

THE ALGER FUNDS II
Statement of Operations For the year ended October 31, 2015


	Alger Spectra Fund			Alger Green Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	55,412,564		$	991,210
Interest		65,157			1,973
Total Income		55,477,721			993,183

EXPENSES:
Advisory fees — Note 3(a)		39,822,271			578,855
Distribution fees — Note 3(c)
Class A		5,216,540			83,051
Class C		7,831,770			56,323
Class I		2,816,530			106,690
Shareholder administrative fees — Note 3(f)		691,495			10,678
Administration fees — Note 3(b)		1,388,634			22,421
Dividends on securities sold short		3,437,118			—
Custodian fees		373,029			28,269
Interest expenses		8,584			—
Borrowing fees on short sales		4,062,552			—
Transfer agent fees and expenses — Note 3(f)		2,848,459			66,843
Printing fees		545,914			17,497
Professional fees		162,875			31,842
Registration fees		285,093			57,879
Trustee fees — Note 3(g)		166,347			6,449
Fund accounting fees		676,587			13,185
Miscellaneous		341,761			7,769
Total Expenses		70,675,559			1,087,751
NET INVESTMENT LOSS		(15,197,838	)		(94,568	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY:
Net realized gain on investments and purchased options		427,564,830			1,079,283
Net realized (loss) on foreign currency transactions		(124,990	)		—
Net realized (loss) on short sales		(16,771,463	)		—
Net change in unrealized appreciation on investments,
options and foreign currency		23,127,410			3,027,167
Net change in unrealized appreciation on short sales		19,277,109			—
Net realized and unrealized gain on investments, options, and
foreign currency		453,072,896			4,106,450
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$	437,875,058		$	4,011,882
* Foreign withholding taxes	$	134,887		$	2,099
*SeeNotestoFinancialStatements.*

- 57 -

THE ALGER FUNDS II
Statement of Operations For the year ended October 31, 2015 (Continued)


					Alger Dynamic
	Alger Analyst Fund			Opportunities Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	69,915		$	653,080
Interest		532			7,774
Total Income		70,447			660,854

EXPENSES:
Advisory fees — Note 3(a)		68,625			1,146,682
Distribution fees — Note 3(c)
Class A		16,999			128,951
Class C		3,504			74,207
Class I		5,000			—
Shareholder administrative fees — Note 3(f)		1,380			13,392
Administration fees — Note 3(b)		2,516			26,278
Dividends on securities sold short		—			240,280
Custodian fees		29,152			60,763
Interest expenses		27			864
Borrowing fees on short sales		—			183,284
Transfer agent fees and expenses — Note 3(f)		4,519			41,874
Printing fees		1,920			11,624
Professional fees		28,552			35,022
Registration fees		56,884			62,516
Trustee fees — Note 3(g)		4,187			7,114
Fund accounting fees		3,968			15,214
Miscellaneous		3,261			9,355
Total Expenses		230,494			2,057,420
Less, expense reimbursements/waivers — Note 3(a)		(97,664	)		—
Net Expenses		132,830			2,057,420
NET INVESTMENT LOSS		(62,383	)		(1,396,566	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY:
Net realized gain on investments and purchased options		491,690			3,143,142
Net realized (loss) on foreign currency transactions		(9	)		(782	)
Net realized (loss) on short sales		—			(401,666	)
Net change in unrealized (depreciation) on investments,
options and foreign currency		(282,575	)		(1,279,304	)
Net change in unrealized appreciation on short sales		—			984,232
Net realized and unrealized gain on investments, options, and
foreign currency		209,106			2,445,622
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$	146,723		$	1,049,056
* Foreign withholding taxes	$	3		$	1,467
*SeeNotestoFinancialStatements.*

- 58 -

THE ALGER FUNDS II
Statement of Operations For the year ended October 31, 2015 (Continued)


		Alger Emerging
		Markets Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	360,293
Interest		433
Total Income		360,726

EXPENSES:
Advisory fees — Note 3(a)		281,010
Distribution fees — Note 3(c)
Class A		18,944
Class C		25,988
Class I		29,041
Shareholder administrative fees — Note 3(f)		3,216
Administration fees — Note 3(b)		7,026
Custodian fees		171,276
Interest expenses		139
Transfer agent fees and expenses — Note 3(f)		24,748
Printing fees		7,397
Professional fees		34,223
Registration fees		71,891
Trustee fees — Note 3(g)		4,703
Fund accounting fees		7,731
Miscellaneous		18,398
Total Expenses		705,731
Less, expense reimbursements/waivers — Note 3(a)		(262,092	)
Net Expenses		443,639
NET INVESTMENT LOSS		(82,913	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY:
Net realized (loss) on investments and purchased options		(1,740,987	)
Net realized (loss) on foreign currency transactions		(28,392	)
Net change in unrealized (depreciation) on investments, options and foreign currency		(921,805	)
Net realized and unrealized (loss) on investments, options, and foreign currency		(2,691,184	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,774,097	)
* Foreign withholding taxes	$	45,748
*SeeNotestoFinancialStatements.*

- 59 -

THE ALGER FUNDS II
Statements of Changes in Net Assets


		Alger Spectra Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2015			October 31, 2014

Net investment loss	$	(15,197,838	)	$	(17,001,382	)
Net realized gain on investments, options and foreign currency		410,668,377			549,046,110
Net change in unrealized appreciation on investments, options
and foreign currency		42,404,519			67,064,225
Net increase in net assets resulting from operations		437,875,058			599,108,953

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(232,068,288	)		(109,164,264	)
Class C		(86,801,799	)		(28,224,522	)
Class I		(129,154,885	)		(42,881,976	)
Class Z		(115,269,367	)		(22,142,007	)
Total dividends and distributions to shareholders		(563,294,339	)		(202,412,769	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		450,724,006			(224,389,370	)
Class C		273,947,569			140,106,414
Class I		246,206,432			203,149,916
Class Z		286,905,857			511,410,776
Net increase from shares of beneficial interest transactions —
Note 6(a)		1,257,783,864			630,277,736

Redemption Fees:
Class A		15,847			32,095
Class C		5,723			3,015
Total Redemption Fees — Note 6(b)		21,570			35,110
Total increase		1,132,386,153			1,027,009,030

Net Assets:
Beginning of period		4,455,820,888			3,428,811,858
END OF PERIOD	$	5,588,207,041		$	4,455,820,888
Undistributed net investment income (accumulated loss)	$	(19,169,843	)	$	916,003
*See Notes to Financial Statements.*

- 60 -

THE ALGER FUNDS II
Statements of Changes in Net Assets (Continued)


		Alger Green Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2015			October 31, 2014

Net investment loss	$	(94,568	)	$	(65,084	)
Net realized gain on investments, options and foreign currency		1,079,283			2,157,805
Net change in unrealized appreciation on investments, options
and foreign currency		3,027,167			3,686,119
Net increase in net assets resulting from operations		4,011,882			5,778,840

Dividends and distributions to shareholders from:
Net investment income:
Class I		—			(9,327	)
Net realized gains:
Class A		(887,146	)		(1,150,902	)
Class C		(153,204	)		(163,867	)
Class I		(1,154,776	)		(1,380,791	)
Total dividends and distributions to shareholders		(2,195,126	)		(2,704,887	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		1,803,130			(198,956	)
Class C		610,920			1,001,925
Class I		(19,046	)		5,141,845
Net increase from shares of beneficial interest transactions —
Note 6(a)		2,395,004			5,944,814

Redemption Fees:
Class A		3			1,346
Class C		—			3
Total Redemption Fees — Note 6(b)		3			1,349
Total increase		4,211,763			9,020,116

Net Assets:
Beginning of period		78,810,548			69,790,432
END OF PERIOD	$	83,022,311		$	78,810,548
Undistributed net investment income (accumulated loss)	$	(30,136	)	$	(36,753	)
*See Notes to Financial Statements.*

- 61 -

THE ALGER FUNDS II
Statements of Changes in Net Assets (Continued)


		Alger Analyst Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2015			October 31, 2014

Net investment loss	$	(62,383	)	$	(37,457	)
Net realized gain on investments, options and foreign currency		491,681			632,972
Net change in unrealized appreciation (depreciation) on
investments, options and foreign currency		(282,575	)		91,298
Net increase in net assets resulting from operations		146,723			686,813

Dividends and distributions to shareholders from:
Net investment income:
Class A		(27,209	)		—
Class I		(11,760	)		—
Net realized gains:
Class A		(461,447	)		(477,809	)
Class C		(26,114	)		(32,608	)
Class I		(136,646	)		(182,876	)
Total dividends and distributions to shareholders		(663,176	)		(693,293	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		630,791			1,690,213
Class C		(9,637	)		90,807
Class I		104,867			164,661
Net increase from shares of beneficial interest transactions —
Note 6(a)		726,021			1,945,681
Total increase		209,568			1,939,201

Net Assets:
Beginning of period		8,802,217			6,863,016
END OF PERIOD	$	9,011,785		$	8,802,217
Undistributed net investment income (accumulated loss)	$	(68,354	)	$	(14,195	)
*See Notes to Financial Statements.*

- 62 -

THE ALGER FUNDS II
Statements of Changes in Net Assets (Continued)


		Alger Dynamic Opportunities Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2015			October 31, 2014

Net investment loss	$	(1,396,566	)	$	(1,081,687	)
Net realized gain on investments, options and foreign currency		2,740,694			4,064,728
Net change in unrealized appreciation (depreciation) on
investments, options and foreign currency		(295,072	)		1,116,109
Net increase in net assets resulting from operations		1,049,056			4,099,150

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(2,281,541	)		(2,433,734	)
Class C		(361,352	)		(107,762	)
Class Z		(1,765,215	)		(1,265,284	)
Total dividends and distributions to shareholders		(4,408,108	)		(3,806,780	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		20,842,186			11,614,091
Class C		4,618,262			4,332,175
Class Z		18,433,053			9,233,825
Net increase from shares of beneficial interest transactions —
Note 6(a)		43,893,501			25,180,091

Redemption Fees:
Class A		508			4,651
Class C		—			155
Total Redemption Fees — Note 6(b)		508			4,806
Total increase		40,534,957			25,477,267

Net Assets:
Beginning of period		84,099,890			58,622,623
END OF PERIOD	$	124,634,847		$	84,099,890
Undistributed net investment income (accumulated loss)	$	(1,238,473	)	$	(1,036,497	)
*See Notes to Financial Statements.*

- 63 -

THE ALGER FUNDS II
Statements of Changes in Net Assets (Continued)


		Alger Emerging Markets Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2015			October 31, 2014

Net investment loss	$	(82,913	)	$	(32,142	)
Net realized loss on investments, options and foreign currency		(1,769,379	)		(882,634	)
Net change in unrealized appreciation (depreciation) on
investments, options and foreign currency		(921,805	)		546,176
Net decrease in net assets resulting from operations		(2,774,097	)		(368,600	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		2,288,922			1,718,949
Class C		700,257			1,715,588
Class I		1,497,814			1,393,804
Class Z		1,046,389			3,778,018
Net increase from shares of beneficial interest transactions —
Note 6(a)		5,533,382			8,606,359

Redemption Fees:
Class A		10			625
Class C		3			4
Total Redemption Fees — Note 6(b)		13			629
Total increase		2,759,298			8,238,388

Net Assets:
Beginning of period		24,199,986			15,961,598
END OF PERIOD	$	26,959,284		$	24,199,986
Undistributed net investment income (accumulated loss)	$	(134,693	)	$	(28,202	)
*See Notes to Financial Statements.*

- 64 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Spectra Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2015				10/31/2014				10/31/2013				10/31/2012				10/31/2011
Net asset value, beginning of period		$	19.13			$	17.37			$	13.82			$	12.35			$	11.33
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.04	)			(0.06	)			0.05				0.02				(0.05	)
Net realized and unrealized gain on
investments			1.74				2.82				3.91				1.66				1.07
Total from investment operations			1.70				2.76				3.96				1.68				1.02
Dividends from net investment income			–				–				(0.09	)			–				–
Distributions from net realized gains			(2.38	)			(1.00	)			(0.32	)			(0.21	)			–
Net asset value, end of period		$	18.45			$	19.13			$	17.37			$	13.82			$	12.35
Total return⁽ⁱⁱ⁾			9.66	%			16.56	%			29.29	%			14.00	%			9.00	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	2,243,901			$	1,846,479			$	1,866,317			$	1,158,220			$	836,857
Ratio of gross expenses to average
net assets			1.34%⁽ⁱⁱⁱ⁾				1.52	%^(iv)			1.52	%^(v)			1.49	%^(vi)			1.58%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.34	%			1.52	%			1.52	%			1.49	%			1.58	%
Ratio of net investment income (loss) to
average net assets			(0.24	)%			(0.35	)%			0.35	%			0.16	%			(0.38	)%
Portfolio turnover rate			143.64	%			149.01	%			113.69	%			139.90	%			163.11	%
*See Notes to Financial Statements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
⁽ⁱⁱⁱ⁾Includes 0.15% related to dividend expense on short positions and interest expense for the period ended 10/31/15
^(iv)Includes 0.27% related to dividend expense on short positions and interest expense for the period ended 10/31/14
^(v)Includes 0.22% related to dividend expense on short positions and interest expense for the period ended 10/31/13
^(vi)Includes 0.12% related to dividend expense on short positions and interest expense for the period ended 10/31/12
^(vii)Includes 0.18% related to dividend expense on short positions and interest expense for the period ended 10/31/11
- 65 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Spectra Fund											Class C
		Year ended				Year ended				Year ended				Year ended					Year ended
		10/31/2015				10/31/2014				10/31/2013				10/31/2012					10/31/2011
Net asset value, beginning of period		$	18.35			$	16.81			$	13.43			$		12.09			$	11.18
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.18	)			(0.19	)			(0.07	)				(0.07	)			(0.13	)
Net realized and unrealized gain on
investments			1.67				2.73				3.79					1.62				1.04
Total from investment operations			1.49				2.54				3.72					1.55				0.91
Dividends from net investment income			–				–				(0.02	)				–				–
Distributions from net realized gains			(2.38	)			(1.00	)			(0.32	)				(0.21	)			–
Net asset value, end of period		$	17.46			$	18.35			$	16.81			$		13.43			$	12.09
Total return⁽ⁱⁱ⁾			8.84	%			15.69	%			28.38	%				13.12	%			8.20	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	899,108			$	650,438			$	458,750			$	242,972				$	134,399
Ratio of gross expenses to average
net assets			2.11%⁽ⁱⁱⁱ⁾				2.27	%^(iv)			2.28	%^(v)				2.24	%^(vi)			2.32%^(vii)
Ratio of expense reimbursements to															��
average net assets			–				–				–					–				–
Ratio of net expenses to average net
assets			2.11	%			2.27	%			2.28	%				2.24	%			2.32	%
Ratio of net investment income (loss) to
average net assets			(1.01	)%			(1.12	)%			(0.46	)%				(0.57	)%			(1.11	)%
Portfolio turnover rate			143.64	%			149.01	%			113.69	%				139.90	%			163.11	%
*See Notes to Financial Statements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
⁽ⁱⁱⁱ⁾Includes 0.15% related to dividend expense on short positions and interest expense for the period ended 10/31/15
^(iv)Includes 0.28% related to dividend expense on short positions and interest expense for the period ended 10/31/14
^(v)Includes 0.22% related to dividend expense on short positions and interest expense for the period ended 10/31/13
^(vi)Includes 0.13% related to dividend expense on short positions and interest expense for the period ended 10/31/12
^(vii)Includes 0.17% related to dividend expense on short positions and interest expense for the period ended 10/31/11
- 66 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Spectra Fund											Class I
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2015				10/31/2014				10/31/2013				10/31/2012				10/31/2011
Net asset value, beginning of period		$	19.27			$	17.48			$	13.92			$	12.42			$	11.39
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.05	)			(0.06	)			0.06				0.03				(0.04	)
Net realized and unrealized gain on
investments			1.76				2.85				3.91				1.68				1.07
Total from investment operations			1.71				2.79				3.97				1.71				1.03
Dividends from net investment income			–				–				(0.09	)			–				–
Distributions from net realized gains			(2.38	)			(1.00	)			(0.32	)			(0.21	)			–
Net asset value, end of period		$	18.60			$	19.27			$	17.48			$	13.92			$	12.42
Total return⁽ⁱⁱ⁾			9.65	%			16.63	%			29.30	%			14.07	%			9.10	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,251,395			$	1,030,304			$	736,036			$	431,557			$	266,366
Ratio of gross expenses to average
net assets			1.35%⁽ⁱⁱⁱ⁾				1.50	%^(iv)			1.50	%^(v)			1.43	%^(vi)			1.50%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.35	%			1.50	%			1.50	%			1.43	%			1.50	%
Ratio of net investment income (loss) to
average net assets			(0.25	)%			(0.35	)%			0.36	%			0.25	%			(0.29	)%
Portfolio turnover rate			143.64	%			149.01	%			113.69	%			139.90	%			163.11	%
*See Notes to Financial Statements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
⁽ⁱⁱⁱ⁾Includes 0.15% related to dividend expense on short positions and interest expense for the period ended 10/31/15
^(iv)Includes 0.28% related to dividend expense on short positions and interest expense for the period ended 10/31/14
^(v)Includes 0.22% related to dividend expense on short positions and interest expense for the period ended 10/31/13
^(vi)Includes 0.12% related to dividend expense on short positions and interest expense for the period ended 10/31/12
^(vii)Includes 0.18% related to dividend expense on short positions and interest expense for the period ended 10/31/11
- 67 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Spectra Fund										Class Z
																From 12/29/2010
			Year ended				Year ended			Year ended				Year ended	(commencement of operations)
			10/31/2015				10/31/2014			10/31/2013				10/31/2012			to 10/31/2011 (i)
Net asset value, beginning of period		$	19.30			$	17.46		$	13.90			$	12.38		$	12.20
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱⁱ⁾			0.01				(0.02	)		0.10				0.08			–
Net realized and unrealized gain on
investments			1.77				2.86			3.91				1.65			0.18
Total from investment operations			1.78				2.84			4.01				1.73			0.18
Dividends from net investment income			–				–			(0.13	)			–			–
Distributions from net realized gains			(2.38	)			(1.00	)		(0.32	)			(0.21	)		–
Net asset value, end of period		$	18.70			$	19.30		$	17.46			$	13.90		$	12.38
Total return⁽ⁱⁱⁱ⁾			9.98	%			17.01	%		29.68	%			14.28	%		1.50	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,193,803			$	928,600			$	367,709		$	215,244			$	3,373
Ratio of gross expenses to average
net assets			1.04	%^(iv)			1.23	%^(v)		1.20	%^(vi)			1.20%^(vii)			2.65%^(viii)
Ratio of expense reimbursements to
average net assets			–				–			–				–			(1.41	)%
Ratio of net expenses to average net
assets			1.04	%			1.23	%		1.20	%			1.20	%		1.24	%
Ratio of net investment income (loss) to
average net assets			0.06	%			(0.11	)%		0.65	%			0.60	%		(0.01	)%
Portfolio turnover rate			143.64	%			149.01	%		113.69	%			139.90	%		163.11	%
*See Notes to Financial Statements.*

⁽ⁱ⁾Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
⁽ⁱⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
^(iv)Includes 0.15% related to dividend expense on short positions and interest expense for the period ended 10/31/15
^(v)Includes 0.30% related to dividend expense on short positions and interest expense for the period ended 10/31/14
^(vi)Includes 0.22% related to dividend expense on short positions and interest expense for the period ended 10/31/13
^(vii)Includes 0.17% related to dividend expense on short positions and interest expense for the period ended 10/31/12
^(viii)Includes 0.14% related to dividend expense on short positions and interest expense for the period ended 10/31/11
- 68 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Green Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2015				10/31/2014				10/31/2013				10/31/2012				10/31/2011
Net asset value, beginning of period		$	9.14			$	8.78			$	6.68			$	6.01			$	6.03
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.01	)			–				0.01				0.01				(0.01	)
Net realized and unrealized gain (loss)
on investments			0.49				0.69				2.10				0.66				(0.01	)
Total from investment operations			0.48				0.69				2.11				0.67				(0.02	)
Dividends from net investment income			–				–				(0.01	)			–				–
Distributions from net realized gains			(0.26	)			(0.33	)			–				–				–
Net asset value, end of period		$	9.36			$	9.14			$	8.78			$	6.68			$	6.01
Total return⁽ⁱⁱ⁾			5.30	%			7.99	%			31.63	%			11.15	%			(0.30	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	34,213			$	31,662			$	30,586			$	26,243			$	27,018
Ratio of gross expenses to average
net assets			1.29	%			1.33	%			1.41	%			1.49	%			1.46	%
Ratio of expense reimbursements to
average net assets			–				–				(0.06	)%			(0.17	)%			(0.21	)%
Ratio of net expenses to average net
assets			1.29	%			1.33	%			1.35	%			1.32	%			1.25	%
Ratio of net investment income (loss) to
average net assets			(0.07	)%			(0.05	)%			0.18	%			0.12	%			(0.14	)%
Portfolio turnover rate			16.85	%			24.22	%			43.35	%			21.25	%			28.25	%
*SeeNotestoFinancialStatements.*

⁽ⁱ⁾	Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾	Does not reflect the effect of sales charges, if applicable.
-	69 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Green Fund								Class C
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2015			10/31/2014			10/31/2013			10/31/2012			10/31/2011
Net asset value, beginning of period	$	8.71		$	8.45		$	6.47		$	5.88		$	5.94
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.07	)		(0.07	)		(0.05	)		(0.05	)		(0.05	)
Net realized and unrealized gain (loss)
on investments		0.46			0.66			2.03			0.64			(0.01	)
Total from investment operations		0.39			0.59			1.98			0.59			(0.06	)
Distributions from net realized gains		(0.26	)		(0.33	)		–			–			–
Net asset value, end of period	$	8.84		$	8.71		$	8.45		$	6.47		$	5.88
Total return⁽ⁱⁱ⁾		4.51	%		7.09	%		30.45	%		10.03	%		(1.00	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	5,949		$	5,261		$	4,096		$	2,484		$	2,517
Ratio of gross expenses to average
net assets		2.07	%		2.09	%		2.16	%		2.31	%		2.25	%
Ratio of expense reimbursements to
average net assets		–			–			–			(0.10	)%		(0.25	)%
Ratio of net expenses to average net
assets		2.07	%		2.09	%		2.16	%		2.21	%		2.00	%
Ratio of net investment income (loss) to
average net assets		(0.85	)%		(0.81	)%		(0.69	)%		(0.77	)%		(0.90	)%
Portfolio turnover rate		16.85	%		24.22	%		43.35	%		21.25	%		28.25	%
*SeeNotestoFinancialStatements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 70 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Green Fund											Class I
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2015				10/31/2014				10/31/2013				10/31/2012				10/31/2011
Net asset value, beginning of period		$	9.12			$	8.77			$	6.67			$	6.01			$	6.02
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.01	)		–(iii)					0.01				0.01				(0.01	)
Net realized and unrealized gain on
investments			0.50				0.68				2.10				0.65				–
Total from investment operations			0.49				0.68				2.11				0.66				(0.01	)
Dividends from net investment income			–				–				(0.01	)			–				–
Distributions from net realized gains			(0.26	)			(0.33	)			–				–				–
Net asset value, end of period		$	9.35			$	9.12			$	8.77			$	6.67			$	6.01
Total return⁽ⁱⁱ⁾			5.42	%			7.91	%			31.68	%			11.00	%			(0.20	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	42,860			$	41,888			$	35,108			$	19,717			$	19,604
Ratio of gross expenses to average
net assets			1.27	%			1.30	%			1.35	%			1.52	%			1.63	%
Ratio of expense reimbursements to
average net assets			–				–				–				(0.20	)%			(0.38	)%
Ratio of net expenses to average net
assets			1.27	%			1.30	%			1.35	%			1.32	%			1.25	%
Ratio of net investment income (loss) to
average net assets			(0.05	)%			(0.03	)%			0.14	%			0.10	%			(0.16	)%
Portfolio turnover rate			16.85	%			24.22	%			43.35	%			21.25	%			28.25	%
*SeeNotestoFinancialStatements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
⁽ⁱⁱⁱ⁾Amount was less than $0.005 per share.
- 71 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Analyst Fund								Class A
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2015			10/31/2014			10/31/2013			10/31/2012			10/31/2011
Net asset value, beginning of period	$	13.74		$	13.86		$	10.83		$	9.85		$	9.54
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.09	)		(0.06	)		(0.01	)		(0.03	)		(0.05	)
Net realized and unrealized gain on
investments		0.34			1.33			3.66			1.01			0.36
Total from investment operations		0.25			1.27			3.65			0.98			0.31
Dividends from net investment income		(0.06	)		–			–			–			–
Distributions from net realized gains		(0.96	)		(1.39	)		(0.62	)		–			–
Net asset value, end of period	$	12.97		$	13.74		$	13.86		$	10.83		$	9.85
Total return⁽ⁱⁱ⁾		1.75	%		9.83	%		35.40	%		10.00	%		3.20	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	6,707		$	6,459		$	4,766		$	2,524		$	2,306
Ratio of gross expenses to average
net assets		2.48	%		2.75	%		4.07	%		4.85	%		5.31	%
Ratio of expense reimbursements to
average net assets		(1.05	)%		(1.45	)%		(2.77	)%		(3.58	)%		(4.11	)%
Ratio of net expenses to average net
assets		1.43	%		1.30	%		1.30	%		1.27	%		1.20	%
Ratio of net investment income (loss) to
average net assets		(0.66	)%		(0.43	)%		(0.07	)%		(0.30	)%		(0.50	)%
Portfolio turnover rate		106.86	%		170.12	%		158.26	%		158.39	%		141.68	%
*SeeNotestoFinancialStatements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 72 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Analyst Fund								Class C
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2015			10/31/2014			10/31/2013			10/31/2012			10/31/2011
Net asset value, beginning of period	$	13.09		$	13.35		$	10.51		$	9.62		$	9.39
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.15	)		(0.14	)		(0.09	)		(0.10	)		(0.12	)
Net realized and unrealized gain on
investments		0.31			1.27			3.55			0.99			0.35
Total from investment operations		0.16			1.13			3.46			0.89			0.23
Dividends from net investment income		–			–			–			–			–
Distributions from net realized gains		(0.96	)		(1.39	)		(0.62	)		–			–
Net asset value, end of period	$	12.29		$	13.09		$	13.35		$	10.51		$	9.62
Total return⁽ⁱⁱ⁾		1.14	%		9.09	%		34.63	%		9.25	%		2.40	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	337		$	368		$	282		$	184		$	165
Ratio of gross expenses to average
net assets		3.41	%		3.53	%		5.49	%		6.00	%		6.45	%
Ratio of expense reimbursements to
average net assets		(1.46	)%		(1.58	)%		(3.54	)%		(4.05	)%		(4.50	)%
Ratio of net expenses to average net
assets		1.95	%		1.95	%		1.95	%		1.95	%		1.95	%
Ratio of net investment income (loss) to
average net assets		(1.18	)%		(1.08	)%		(0.73	)%		(0.99	)%		(1.25	)%
Portfolio turnover rate		106.86	%		170.12	%		158.26	%		158.39	%		141.68	%
*SeeNotestoFinancialStatements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 73 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Analyst Fund								Class I
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2015			10/31/2014			10/31/2013			10/31/2012			10/31/2011
Net asset value, beginning of period	$	13.73		$	13.85		$	10.82		$	9.84		$	9.53
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.09	)		(0.06	)		(0.01	)		(0.03	)		(0.05	)
Net realized and unrealized gain on
investments		0.33			1.33			3.66			1.01			0.36
Total from investment operations		0.24			1.27			3.65			0.98			0.31
Dividends from net investment income		(0.08	)		–			–			–			–
Distributions from net realized gains		(0.96	)		(1.39	)		(0.62	)		–			–
Return of capital		–			–			–			–			–
Net asset value, end of period	$	12.93		$	13.73		$	13.85		$	10.82		$	9.84
Total return⁽ⁱⁱ⁾		1.72	%		9.84	%		35.44	%		10.00	%		3.30	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,968		$	1,975		$	1,815		$	1,180		$	776
Ratio of gross expenses to average
net assets		2.50	%		2.79	%		4.07	%		5.95	%		6.91	%
Ratio of expense reimbursements to
average net assets		(1.07	)%		(1.49	)%		(2.77	)%		(4.68	)%		(5.71	)%
Ratio of net expenses to average net
assets		1.43	%		1.30	%		1.30	%		1.27	%		1.20	%
Ratio of net investment income (loss) to
average net assets		(0.66	)%		(0.41	)%		(0.08	)%		(0.33	)%		(0.50	)%
Portfolio turnover rate		106.86	%		170.12	%		158.26	%		158.39	%		141.68	%
*SeeNotestoFinancialStatements.*

⁽ⁱ⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Does not reflect the effect of sales charges, if applicable.
- 74 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Dynamic Opportunities
Fund											Class A
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2015				10/31/2014				10/31/2013				10/31/2012				10/31/2011
Net asset value, beginning of period		$	12.86			$	12.90			$	11.12			$	10.64			$	10.55
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.19	)			(0.20	)			(0.16	)			(0.14	)			(0.21	)
Net realized and unrealized gain on
investments			0.55				0.96				1.94				0.77				0.30
Total from investment operations			0.36				0.76				1.78				0.63				0.09
Distributions from net realized gains			(0.74	)			(0.80	)			–				(0.15	)			–
Net asset value, end of period		$	12.48			$	12.86			$	12.90			$	11.12			$	10.64
Total return⁽ⁱⁱ⁾			2.86	%			6.15	%			16.01	%			6.07	%			0.90	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	67,533			$	48,464			$	36,712			$	21,741			$	11,514
Ratio of gross expenses to average
net assets			2.20%⁽ⁱⁱⁱ⁾				2.46	%^(iv)			2.61	%^(v)			2.98	%^(vi)			3.09%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				(0.03	)%			(0.36	)%			(0.62	)%
Ratio of net expenses to average net
assets			2.20	%			2.46	%			2.58	%			2.62	%			2.47	%
Ratio of net investment income (loss) to
average net assets			(1.51	)%			(1.57	)%			(1.37	)%			(1.26	)%			(1.87	)%
Portfolio turnover rate			178.19	%			205.45	%			201.50	%			257.74	%			430.05	%
*SeeNotestoFinancialStatements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
(iii) Includes 0.44% related to dividend expense on short positions and interest expense for the period ended 10/31/15
(iv) Includes 0.57% related to dividend expense on short positions and interest expense for the period ended 10/31/14
(v) Includes 0.58% related to dividend expense on short positions and interest expense for the period ended 10/31/13
(vi) Includes 0.62% related to dividend expense on short positions and interest expense for the period ended 10/31/12
(vii) Includes 0.47% related to dividend expense on short positions and interest expense for the period ended 10/31/11
- 75 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Dynamic Opportunities
Fund									Class C
														From 12/29/2010
			Year ended			Year ended			Year ended			Year ended	(commencement of operations)
			10/31/2015			10/31/2014			10/31/2013			10/31/2012			to 10/31/2011 (i)
Net asset value, beginning of period		$	12.47		$	12.62		$	10.95		$	10.57		$	10.96
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱⁱ⁾			(0.28	)		(0.29	)		(0.25	)		(0.22	)		(0.23	)
Net realized and unrealized gain (loss)
on investments			0.53			0.94			1.92			0.75			(0.16	)
Total from investment operations			0.25			0.65			1.67			0.53			(0.39	)
Distributions from net realized gains			(0.74	)		(0.80	)		–			(0.15	)		–
Net asset value, end of period		$	11.98		$	12.47		$	12.62		$	10.95		$	10.57
Total return⁽ⁱⁱⁱ⁾			2.11	%		5.38	%		15.15	%		5.25	%		(3.60	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	10,136			$	5,808		$	1,407		$	622		$	539
Ratio of gross expenses to average
net assets			2.98	%^(iv)		3.23	%^(v)		3.36	%^(vi)		4.00%^(vii)			4.12%^(viii)
Ratio of expense reimbursements to
average net assets			–			–			(0.03	)%		(0.62	)%		(0.96	)%
Ratio of net expenses to average net
assets			2.98	%		3.23	%		3.33	%		3.38	%		3.16	%
Ratio of net investment income (loss) to
average net assets			(2.28	)%		(2.36	)%		(2.13	)%		(2.05	)%		2.56	%
Portfolio turnover rate			178.19	%		205.45	%		201.50	%		257.74	%		430.05	%
*SeeNotestoFinancialStatements.*

(i) Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
(iv) Includes 0.44% related to dividend expense on short positions and interest expense for the period ended 10/31/15
(v) Includes 0.59% related to dividend expense on short positions and interest expense for the period ended 10/31/14
(vi) Includes 0.58% related to dividend expense on short positions and interest expense for the period ended 10/31/13
(vii) Includes 0.63% related to dividend expense on short positions and interest expense for the period ended 10/31/12
(viii) Includes 0.41% related to dividend expense on short positions and interest expense for the period ended 10/31/11
- 76 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Dynamic Opportunities
Fund											Class Z
																		From 12/29/2010
			Year ended				Year ended				Year ended				Year ended		(commencement of operations)
			10/31/2015				10/31/2014				10/31/2013				10/31/2012				to 10/31/2011 (i)
Net asset value, beginning of period		$	12.99			$	12.98			$	11.16			$	10.66			$	10.96
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱⁱ⁾			(0.16	)			(0.16	)			(0.13	)			(0.10	)			(0.15	)
Net realized and unrealized gain (loss)
on investments			0.55				0.97				1.95				0.75				(0.15	)
Total from investment operations			0.39				0.81				1.82				0.65				(0.30	)
Distributions from net realized gains			(0.74	)			(0.80	)			–				(0.15	)			–
Net asset value, end of period		$	12.64			$	12.99			$	12.98			$	11.16			$	10.66
Total return⁽ⁱⁱⁱ⁾			3.16	%			6.52	%			16.29	%			6.34	%			(2.70	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	46,966			$	29,828			$	20,504			$	17,158			$	11,368
Ratio of gross expenses to average
net assets			1.93	%^(iv)			2.18	%^(v)			2.34	%^(vi)			2.73%^(vii)				11.84%^(viii)
Ratio of expense reimbursements to
average net assets			–				–				–				(0.35	)%			(9.30	)%
Ratio of net expenses to average net
assets			1.93	%			2.18	%			2.34	%			2.38	%			2.54	%
Ratio of net investment income (loss) to
average net assets			(1.23	)%			(1.29	)%			(1.08	)%			(0.90	)%			(1.92	)%
Portfolio turnover rate			178.19	%			205.45	%			201.50	%			257.74	%			430.05	%
*See Notes to Financial Statements.*

(i) Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
(iv) Includes 0.44% related to dividend expense on short positions and interest expense for the period ended 10/31/15
(v) Includes 0.57% related to dividend expense on short positions and interest expense for the period ended 10/31/14
(vi) Includes 0.58% related to dividend expense on short positions and interest expense for the period ended 10/31/13
(vii) Includes 0.62% related to dividend expense on short positions and interest expense for the period ended 10/31/12
(viii) Includes 0.79% related to dividend expense on short positions and interest expense for the period ended 10/31/11
- 77 -

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Emerging Markets Fund								Class A
													From 12/29/2010
		Year ended			Year ended			Year ended			Year ended		(commencement of operations)
		10/31/2015			10/31/2014			10/31/2013			10/31/2012			to 10/31/2011 (i)
Net asset value, beginning of period	$	9.44		$	9.57		$	8.52		$	8.32		$	10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱⁱ⁾		(0.03	)		(0.01	)		0.02			0.03			0.04
Net realized and unrealized gain (loss)
on investments		(0.86	)		(0.12	)		1.19			0.17			(1.72	)
Total from investment operations		(0.89	)		(0.13	)		1.21			0.20			(1.68	)
Dividends from net investment income		–			–			(0.16	)		–			–
Net asset value, end of period	$	8.55		$	9.44		$	9.57		$	8.52		$	8.32
Total return⁽ⁱⁱⁱ⁾		(9.43	)%		(1.36	)%		14.31	%		2.40	%		(16.80	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	8,270		$	6,931		$	5,260		$	1,176		$	764
Ratio of gross expenses to average
net assets		2.71	%		2.99	%		3.49	%		4.43	%		4.60	%
Ratio of expense reimbursements to
average net assets		(1.01	)%		(1.29	)%		(1.79	)%		(2.73	)%		(2.90	)%
Ratio of net expenses to average net
assets		1.70	%		1.70	%		1.70	%		1.70	%		1.70	%
Ratio of net investment income (loss) to
average net assets		(0.31	)%		(0.13	)%		0.19	%		0.31	%		0.51	%
Portfolio turnover rate		84.93	%		98.25	%		103.59	%		150.09	%		121.91	%
*SeeNotestoFinancialStatements.*

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Emerging Markets Fund								Class C
													From 12/29/2010
		Year ended			Year ended			Year ended			Year ended	(commencement of operations)
		10/31/2015			10/31/2014			10/31/2013			10/31/2012			to 10/31/2011 (i)
Net asset value, beginning of period	$	9.23		$	9.42		$	8.37		$	8.23		$	10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱⁱ⁾		(0.09	)		(0.08	)		(0.06	)		(0.05	)		(0.03	)
Net realized and unrealized gain (loss)
on investments		(0.84	)		(0.11	)		1.17			0.19			(1.74	)
Total from investment operations		(0.93	)		(0.19	)		1.11			0.14			(1.77	)
Dividends from net investment income		–			–			(0.06	)		–			–
Net asset value, end of period	$	8.30		$	9.23		$	9.42		$	8.37		$	8.23
Total return⁽ⁱⁱⁱ⁾		(10.08	)%		(2.02	)%		13.34	%		1.70	%		(17.70	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	2,581		$	2,151		$	484		$	151		$	142
Ratio of gross expenses to average
net assets		3.51	%		3.79	%		4.75	%		5.61	%		5.99	%
Ratio of expense reimbursements to
average net assets		(1.06	)%		(1.34	)%		(2.30	)%		(3.16	)%		(3.54	)%
Ratio of net expenses to average net
assets		2.45	%		2.45	%		2.45	%		2.45	%		2.45	%
Ratio of net investment income (loss) to
average net assets		(1.01	)%		(0.84	)%		(0.73	)%		(0.57	)%		(0.39	)%
Portfolio turnover rate		84.93	%		98.25	%		103.59	%		150.09	%		121.91	%
*SeeNotestoFinancialStatements.*

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Emerging Markets Fund											Class I
																From 12/29/2010
Year ended							Year ended				Year ended			Year ended	(commencement of operations)
		10/31/2015					10/31/2014				10/31/2013			10/31/2012			to 10/31/2011 (i)
Net asset value, beginning of period		$	9.38			$	9.51			$	8.48		$	8.28		$	10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱⁱ⁾			(0.03	)			(0.02	)			0.01			0.01			–
Net realized and unrealized gain (loss)
on investments			(0.85	)			(0.11	)			1.19			0.19			(1.72	)
Total from investment operations			(0.88	)			(0.13	)			1.20			0.20			(1.72	)
Dividends from net investment income			–				–				(0.17	)		–			–
Net asset value, end of period		$	8.50			$	9.38			$	9.51		$	8.48		$	8.28
Total return⁽ⁱⁱⁱ⁾			(9.38	)%			(1.37	)%			14.26	%		2.42	%		(17.20	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	11,814			$	11,451			$	10,218			$	8,712		$	8,490
Ratio of gross expenses to average
net assets			2.64	%			2.92	%			3.45	%		4.28	%		4.16	%
Ratio of expense reimbursements to
average net assets			(0.94	)%			(1.22	)%			(1.75	)%		(2.58	)%		(2.46	)%
Ratio of net expenses to average net
assets			1.70	%			1.70	%			1.70	%		1.70	%		1.70	%
Ratio of net investment income (loss) to
average net assets			(0.35	)%			(0.16	)%			0.06	%		0.15	%		0.05	%
Portfolio turnover rate			84.93	%			98.25	%			103.59	%		150.09	%		121.91	%
*SeeNotestoFinancialStatements.*

THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period


Alger Emerging Markets Fund			Class Z
					From 2/28/2014
			Year ended			(commencement of operations)
		10/31/2015			to 10/31/2014 (i)
Net asset value, beginning of period	$		9.41		$	9.24
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾			0.01			0.02
Net realized and unrealized gain (loss)
on investments			(0.86	)		0.15
Total from investment operations			(0.85	)		0.17
Net asset value, end of period	$		8.56		$	9.41
Total return⁽ⁱⁱⁱ⁾			(9.03	)%		1.84	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$		4,294		$	3,667
Ratio of gross expenses to average
net assets			2.55	%		3.35	%
Ratio of expense reimbursements to
average net assets			(1.30	)%		(2.10	)%
Ratio of net expenses to average net
assets			1.25	%		1.25	%
Ratio of net investment income (loss) to
average net assets			0.20	%		0.29	%
Portfolio turnover rate			84.93	%		98.25	%
*SeeNotestoFinancialStatements.*

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS

NOTE 1 — General:
The Alger Funds II (the “Trust”) is a diversified 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 the Financial Accounting Standards
Board 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 five funds—Alger Spectra Fund, Alger Green Fund, Alger Analyst
Fund, Alger Dynamic Opportunities Fund and Alger Emerging Markets Fund (collectively,
the “Funds” or individually, each a “Fund”). The Funds normally invest primarily in equity
securities and each has an investment objective of long-term capital appreciation.

Each Fund offers one or more of the following share classes: Class A shares, Class C shares,
Class I shares and Class Z shares. Class A shares are generally subject to an initial sales
charge while Class C shares are generally subject to a deferred sales charge. Class I shares
and Class Z shares are sold to institutional investors without an initial or deferred sales
charge. Each class has identical rights to assets and earnings, except that each share class
bears the costs of its plan of distribution, if it maintains one, and transfer agency and sub-
transfer agency services.

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 (“Board”). Investments are valued on each day the New York Stock Exchange (the
“NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern Standard time).
Equity securities and option contracts for which valuation information is readily available are
valued at the last quoted sales price or official closing price as reported by an independent
pricing service on the primary market or exchange on which they are traded. In the absence
of quoted sales, such securities are valued at the bid price or, in the absence of a recent
bid price, the equivalent as obtained from one or more of the major market makers for the
securities to be valued.

Debt securities generally trade in the over-the-counter market. Debt securities with
remaining maturities of more than sixty days at the time of acquisition are valued on
the basis of last available bid prices or current market quotations provided by dealers
or pricing services. In determining the value of a particular investment, pricing services
may use certain information with respect to transactions in such investments, quotations
from dealers, pricing matrixes, market transactions in comparable investments, various
relationships observed in the market between investments and calculated yield measures
based on valuation technology commonly employed in the market for such investments.
Asset-backed and mortgage-backed securities are valued by independent pricing services
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.
- 82 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

Securities for which market quotations are not readily available are valued at fair value, as
determined in good faith pursuant to procedures established by the Board.

Securities in which the 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 foreign closing prices to reflect
what the investment adviser, pursuant to policies established by the Board, believes to be
the fair value of these securities as of the close of the NYSE. The Funds may also fair value
securities in other situations, for example, when a particular foreign market is closed but the
Funds are open.

Financial Accounting Standards Board 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 revenue multiples, earnings before interest, taxes, depreciation
and amortization (“EBITDA”) multiples, discount rates, and the probabilities of success of
certain outcomes. Such unobservable market information may be obtained from a company’s

- 83 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

financial statements and from industry studies, market data, and market indicators such as
benchmarks and indices.

Valuation processes are determined by a Valuation Committee (“Committee”) established
by the Board and comprised of representatives of the Trust’s investment advisor. The
Committee reports its fair valuation determinations to the Board which is responsible for
approving valuation policy and procedures.

While the Committee meets on an as-needed basis, the Committee formally 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 previous mark-to-markets.

The Funds will record a change to a security’s fair value level if new inputs are available
or it becomes evident that inputs previously considered for leveling have changed or are
no longer relevant. Transfers between Levels 1, 2 and 3 are recognized at the end of the
reporting period.

(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars, foreign cash
and overnight time deposits.
(c) Securities Transactions and Investment Income: Securities transactions are recorded on a
trade date basis. Realized gains and losses from securities transactions are recorded on the
identified cost basis. Dividend income is recognized on the ex-dividend date and interest
income is recognized on the accrual basis.
(d) Foreign Currency Translations: 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
Statement of Operations.

(e) Short Sales: Securities sold short represent an obligation to deliver the securities at a
future date. A Fund may sell a security it does not own in anticipation of a decline in the
value of that security before the delivery date. When a Fund sells a security short, it must
borrow the security sold short and deliver it to the broker-dealer through which it made
the short sale. Dividends paid on securities sold short are disclosed as an expense on the

- 84 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

Statement of Operations. A gain, limited to the price at which the Fund sold the security
short, or a loss, unlimited in size, will be recognized upon the termination of a short sale.
To secure its obligation to deliver to the broker-dealer the securities sold short, the Fund
must segregate an amount of cash or liquid securities with its custodian equal to any excess
of the current market value of the securities sold short over any cash or liquid securities
deposited as collateral with the broker in connection with the short sale (not including the
proceeds of the short sale). As a result of that requirement, the Fund will not gain any
leverage merely by selling short, except to the extent that it earns interest or other income
or gains on the segregated cash or liquid securities while also being subject to gain or loss
from the securities sold short.

(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.
The Funds may also purchase put and call options. Each Fund pays a premium which is
included in the Fund’s Statement 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 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, 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 the Custodian in an amount equal to at least 102
percent of the current market value of U.S. loaned securities or 105 percent for non-U.S.
loaned securities. The market value of the loaned securities is determined at the close of
business of the Fund. Any required additional collateral is delivered to the Custodian and
any excess collateral is returned to the borrower on the next business day. In the event the
borrower fails to return the loaned securities when due, the Funds may take the collateral
to replace the securities. If the value of the collateral is less than the purchase cost of

- 85 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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 October 31,
2015.
(h) Dividends to Shareholders: Dividends and distributions payable to shareholders are
recorded by the Funds on the ex-dividend date. Dividends from net investment income and
distributions from net realized gains are declared and paid annually after the end of the fiscal
year in which earned.
Each class is treated separately in determining the amounts of dividends from net investment
income payable to holders of its shares.

The characterization of distributions to shareholders for financial reporting purposes is
determined in accordance with federal income tax rules. Therefore, the source of 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 difference in tax treatment of net operating losses, passive foreign
investment companies, and foreign currency transactions. The reclassifications are done
annually at fiscal year end and have no impact on the net asset 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 tax returns for the Alger Spectra Fund, Alger Green Fund, Alger Analyst
Fund, Alger Dynamic Opportunities Fund and Alger Emerging Markets Fund remains open
for the tax years 2012-2015. 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

- 86 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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. Actual results may differ from
those estimates. All such adjustments are of normal recurring nature.
NOTE 3 — Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory: Fees incurred by each Fund, pursuant to the provisions of the Trust’s
Investment Advisory Agreement with Fred Alger Management, Inc., (“Alger Management”
or the “Manager”), are payable monthly and computed based on the following rates. The
actual rate paid as a percentage of average daily net assets, for the year ended October 31,
2015, is set forth below under the heading “Actual Rate.”:


	Tier 1		Tier 2		Tier 3		Actual Rate
Alger Spectra Fund^(a)	0.900	%	0.750	%	0.650	%	0.789	%
Alger Green Fund^(b)	0.710		0.650		—		0.710
Alger Analyst Fund^(b)	0.750		0.700		—		0.750
Alger Dynamic Opportunities Fund^(b)	1.200		1.000		—		1.200
Alger Emerging Markets Fund^(c)	1.100		—		—		1.100

(a) Tier 1 rate is paid on assets up to $2 billion, Tier 2 rate is paid on assets between $2 and
$4 billion and Tier 3 rate is paid on assets in excess of $4 billion.

(b) Tier 1 rate is paid on assets up to $1 billion and Tier 2 rate is paid on assets in excess of
$1 billion.

(c) Tier 1 rate is paid on all assets.

Alger Management has established expense caps for several share classes, effective through
February 28, 2016, whereby it reimburses the share classes if annualized operating expenses
(excluding interest, taxes, brokerage, dividend expense and extraordinary expenses) exceed
the rates, based on average daily net assets, listed below:


									FEES WAIVED /
									REIMBURSED FOR
			CLASS						THE YEAR ENDED
	A		C		I		Z		OCTOBER 31, 2015
Alger Green Fund	1.35	%	–		1.35	%	–			$	—
Alger Analyst Fund	1.50	*	1.95	%	1.50	*	–				97,664
Alger Dynamic Opportunities Fund	2.00		2.75		–		1.75	%			—
Alger Emerging Markets Fund	1.70		2.45		1.70		1.25				130,592

* Prior to March 1, 2015, the expense cap for the Alger Analyst Fund Class A and Class I was 1.30%.
Fred Alger Management Inc. may recoup reimbursed expenses during the one-year term of
the expense reimbursement contract if the expense ratio falls below the stated limitation.

- 87 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

Alger Management voluntarily reduced its advisory fee for the Alger Emerging Markets
Fund by $131,500 for the year ended October 31, 2015.

(b) Administration Fees: Fees incurred by each Fund, pursuant to the provisions of the Trust’s
Administration Agreement with Fred Alger Management, Inc., 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: The Trust has adopted a distribution plan pursuant to which Class
A shares, Class C shares and Class I shares of each Fund pay Fred Alger & Company,
Incorporated, the distributor (the “Distributor” or “Alger Inc.”), a fee at the annual rate
listed below of the respective average daily net assets of the share class of the designated
Fund to compensate Alger Inc. for its activities and expenses incurred in distributing the
share class and shareholder servicing. Fees paid may be more or less than the expenses
incurred by Alger Inc.


	FEE
SHARE CLASS	RATE
A	0.25	%
C	1.00
I	0.25

(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 Inc. to offset distribution expenses previously incurred. Sales charges do
not represent expenses of the Trust. For the year ended October 31, 2015, the initial sales
charges and contingent deferred sales charges imposed, all of which were retained by Alger
Inc., were as follows:


				CONTINGENT
	INITIAL SALES		DEFERRED SALES
		CHARGES		CHARGES
Alger Spectra Fund	$	43,108	$	112,093
Alger Green Fund		1,200		1,054
Alger Analyst Fund		–		529
Alger Dynamic Opportunities Fund		–		1,750
Alger Emerging Markets Fund		30		495

(e) Brokerage Commissions: During the year ended October 31, 2015, Alger Spectra Fund,
Alger Green Fund, Alger Analyst Fund, Alger Dynamic Opportunities Fund and Alger
Emerging Markets Fund paid Alger Inc., an affiliate of Alger Management, $2,042,033,
$2,548, $5,505, $24,788, and $379, 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 Boston Financial Data Services, Inc., the transfer
agent, and 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 and Class C

- 88 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

shares and 0.01% of the daily net assets of the Class I shares 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 year ended October
31, 2015, Alger Management charged back to Alger Spectra Fund, Alger Green Fund, Alger
Analyst Fund, Alger Dynamic Opportunities Fund and Alger Emerging Markets Fund
$1,501,849, $39,988, $626, $16,023 and $8,260, respectively, for these services, which are
included in transfer agent fees and expenses in the accompanying Statements of Operations.

(g) Trustees’ Fees: From November 1, 2014 through February 28, 2015, each Fund paid each
trustee who is not affiliated with Alger Management or its affiliates $950 for each meeting
attended, to a maximum of $3,800 per annum, plus travel expenses incurred for attending
the meeting. The Chairman of the Board received an additional annual fee of $24,300 which
was paid, pro rata, by all U.S.-registered funds managed by Alger Management. Additionally,
each member of a Fund’s audit committee received $81 from each Fund for each audit
committee meeting attended, to a maximum of $324 per annum.
Effective March 1, 2015, each Independent Trustee who is not affiliated with Alger
Management or its affiliates receives a fee of $25,875 for each meeting attended, to a
maximum of $103,500 per annum, paid pro rata by each Fund in the Alger Fund Complex,
plus travel expenses incurred for attending the meeting. The Independent Trustee appointed
as Chairman of the Board of Trustees receives additional compensation of $24,300 per
annum paid pro rata by each fund in the Alger Fund Complex. Additionally, each member
of the Audit Committee receives a fee of $2,500 for each meeting attended to a maximum
of $10,000 per annum, paid pro rata by each Fund in the Alger Fund Complex.

(h) Interfund Loans: The Funds, along with other funds advised by Alger Management, may
borrow money from and lend money to each other for temporary or emergency purposes.
To the extent permitted under its investment restrictions, each fund may lend uninvested
cash in an amount up to 15% of its net assets to other funds. If a fund has borrowed from
other funds and has aggregate borrowings from all sources that exceed 10% of the fund’s
total assets, such fund will secure all of its loans from other funds. The interest rate charged
on interfund loans is equal to the average of the overnight time deposit rate and bank loan
rate available to the funds. There were no interfund loans outstanding as of October 31,
2015.
During the year ended October 31, 2015, Alger Spectra Fund, Alger Green Fund, Alger
Dynamic Opportunities Fund and Alger Emerging Markets Fund earned interfund loan
interest income of $33,096, $405, $890 and $16, respectively.

- 89 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

(i) Other Transactions with Affiliates: Certain officers of the Trust are directors and officers of
Alger Management and Alger Inc. At October 31, 2015, Alger Management and its affiliates
owned the following shares:


					SHARE CLASS
			A		C		I			Z
Alger Spectra Fund	1,602,556				14,423	14,344				104
Alger Green Fund			—		—		—			—
Alger Analyst Fund	414,046			14,847		128,988				—
Alger Dynamic Opportunities Fund	129,880				105		—		1,732,953
Alger Emerging Markets Fund	115,052				101		1,007,783			10,823

NOTE 4 — Securities Transactions:

The following summarizes the securities transactions by the Trust, other than short-term
securities, purchased options and short sales for the year ended October 31, 2015:

			PURCHASES							SALES
Alger Spectra Fund		$	7,792,595,356					$	7,305,159,613
Alger Green Fund			13,504,005							13,068,376
Alger Analyst Fund				9,510,211						9,577,728
Alger Dynamic Opportunities Fund			144,435,548							112,297,877
Alger Emerging Markets Fund			26,198,646							20,932,041

Transactions in foreign securities may involve certain considerations and risks not typically
associated with those of U.S. companies because of, among other factors, the level of
governmental supervision and regulation of foreign security markets, and the possibility of
political or economic instability. Additional risks associated with investing in the emerging
markets include increased volatility, limited liquidity, and less stringent regulatory and legal
system.

NOTE 5 — Borrowing:
The Funds may borrow from their custodian on an uncommitted basis. Each Fund pays the
custodian a market rate of interest, generally based upon the London Interbank Offered
Rate. The Funds may also borrow from other funds advised by Alger Management, as
discussed in Note 3(h). For the year ended October 31, 2015, the Funds had the following
borrowings:


	AVERAGE DAILY		WEIGHTED AVERAGE
		BORROWING		INTEREST RATE
Alger Spectra Fund	$	425,033		2.21	%
Alger Analyst Fund		1,206		2.20
Alger Dynamic Opportunities Fund		39,470		2.19
Alger Emerging Markets Fund		6,311		2.20

The highest amount borrowed during the year ended October 31, 2015 for each Fund was
as follows:

- 90 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


	HIGHEST BORROWING
Alger Spectra Fund	$	33,255,669
Alger Analyst Fund		292,054
Alger Dynamic Opportunities Fund		1,806,187
Alger Emerging Markets Fund		365,869

NOTE 6 — Share Capital:
(a) The Trust has an unlimited number of authorized shares of beneficial interest of $.001
par value which are presently divided into five series. Each series is divided into separate
classes. The transactions of shares of beneficial interest were as follows:
V


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2015					OCTOBER 31, 2014
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Spectra Fund
Class A:
Shares sold	39,752,696		$	723,575,458		32,338,699		$	579,845,405
Shares converted from Class C	789			13,707		22			389
Dividends reinvested	11,977,865			207,942,485		5,854,567			100,640,010
Shares redeemed	(26,642,149	)	(480,791,797		)	(49,152,547	)	(904,843,079		)
Net increase (decrease)	25,089,201		$	450,739,853		(10,959,259)		$	(10,959,259)
Class C:
Shares sold	17,773,236		$	306,898,662		10,495,116		$	181,342,515
Shares converted to Class A	(829	)		(13,707	)	(23	)		(389	)
Dividends reinvested	4,064,447			67,185,473		1,307,096			21,684,718
Shares redeemed	(5,784,391	)	(100,117,136		)	(3,642,642	)		(62,917,415	)
Net increase	16,052,463		$	273,953,292		8,159,547		$	140,109,429
Class I:
Shares sold	30,392,263		$	553,225,190		21,286,862		$	384,958,874
Dividends reinvested	7,049,801			123,371,317		2,350,328			40,684,169
Shares redeemed	(23,640,599	)	(430,390,075		)	(12,278,080	)	(222,493,127		)
Net increase	13,801,465		$	246,206,432		11,359,110		$	203,149,916
Class Z:
Shares sold	24,122,438		$	443,811,354		37,571,892		$	703,742,849
Dividends reinvested	4,088,271			71,708,282		358,899			6,208,950
Shares redeemed	(12,467,668	)	(228,613,779		)	(10,885,301	)	(198,541,023		)
Net increase	15,743,041		$	286,905,857		27,045,490		$	511,410,776

- 91 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2015					OCTOBER 31, 2014
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Green Fund
Class A:
Shares sold	848,336		$	7,874,298		828,187		$	7,358,641
Dividends reinvested	87,670			790,783		121,073			1,054,550
Shares redeemed	(745,408	)		(6,861,948	)	(968,434	)		(8,610,801	)
Net increase (decrease)	190,598		$	1,803,133		(19,174	)	$	(197,610	)
Class C:
Shares sold	122,584		$	1,081,809		185,722		$	1,571,391
Dividends reinvested	15,308			131,343		16,476			137,736
Shares redeemed	(68,828	)		(602,232	)	(83,282	)		(707,199	)
Net increase	69,064		$	610,920		118,916		$	1,001,928
Class I:
Shares sold	1,046,757		$	9,701,664		1,645,240		$	14,568,124
Dividends reinvested	126,542			1,140,144		157,333			1,368,794
Shares redeemed	(1,178,515	)		(10,860,854	)	(1,216,946	)		(10,795,073	)
Net increase (decrease)	(5,216	)	$	(19,046	)	585,627		$	5,141,845

Alger Analyst Fund
Class A:
Shares sold	23,459		$	324,232		113,069		$	1,535,251
Dividends reinvested	36,998			484,675		35,523			457,530
Shares redeemed	(13,283	)		(178,116	)	(22,216	)		(302,568	)
Net increase	47,174		$	630,791		126,376		$	1,690,213
Class C:
Shares sold	770		$	10,000		6,256		$	83,134
Dividends reinvested	2,094			26,114		2,589			31,952
Shares redeemed	(3,599	)		(45,751	)	(1,865	)		(24,279	)
Net increase (decrease)	(735	)	$	(9,637	)	6,980		$	90,807
Class I:
Shares sold	5,526		$	72,336		40,453		$	542,527
Dividends reinvested	9,914			129,474		12,461			160,368
Shares redeemed	(7,105	)		(96,943	)	(40,038	)		(538,234	)
Net increase	8,335		$	104,867		12,876		$	164,661

- 92 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2015					OCTOBER 31, 2014
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Dynamic Opportunities Fund
Class A:
Shares sold	4,084,063		$	51,945,889		2,969,594		$	37,388,559
Dividends reinvested	184,459			2,266,955		196,268			2,425,867
Shares redeemed	(2,624,269	)		(33,370,150	)	(2,244,716	)		(28,195,684	)
Net increase	1,644,253		$	20,842,694		921,146		$	11,618,742
Class C:
Shares sold	543,957		$	6,594,072		388,509		$	4,753,942
Dividends reinvested	29,847			354,289		8,722			105,191
Shares redeemed	(193,562	)		(2,330,099	)	(43,152	)		(526,803	)
Net increase	380,242		$	4,618,262		354,079		$	4,332,330
Class Z:
Shares sold	1,808,583		$	23,361,291		742,459		$	9,566,861
Dividends reinvested	142,127			1,765,215		101,629			1,265,283
Shares redeemed	(532,142	)		(6,693,453	)	(127,352	)		(1,598,319	)
Net increase	1,418,568		$	18,433,053		716,736		$	9,233,825

Alger Emerging Markets Fund
Class A:
Shares sold	533,918		$	4,935,891		650,411		$	6,150,709
Shares redeemed	(300,875	)		(2,646,959	)	(466,138	)		(4,431,135	)
Net increase	233,043		$	2,288,932		184,273		$	1,719,574
Class C:
Shares sold	154,495		$	1,360,751		187,274		$	1,767,329
Shares redeemed	(76,427	)		(660,491	)	(5,639	)		(51,737	)
Net increase	78,068		$	700,260		181,635		$	1,715,592
Class I:
Shares sold	237,045		$	2,083,456		234,530		$	2,208,761
Shares redeemed	(67,331	)		(585,642	)	(88,851	)		(814,957	)
Net increase	169,714		$	1,497,814		145,679		$	1,393,804
Class Z:
Shares sold	381,907		$	3,463,640		395,253		$	3,829,565
Shares redeemed	(270,076	)		(2,417,251	)	(5,520	)		(51,547	)
Net increase	111,831		$	1,046,389		389,733		$	3,778,018

(b) Redemption Fee: Prior to March 1, 2015, the Funds imposed a 2.00% redemption fee
on certain Class A and Class C shares redeemed (including shares redeemed by exchange)
within 30 days after such shares were acquired. From March 1, 2015, the redemption fee
was no longer imposed. The fees retained by the Funds are included as paid-in capital on the
accompanying Statement of Assets and Liabilities.
NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2015 and the year
ended October 31, 2014 were as follows:

- 93 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED		FOR THE YEAR ENDED
	OCTOBER 31, 2015		OCTOBER 31, 2014
Alger Spectra Fund
Distributions paid from:
Ordinary Income	$	34,698,984	$	69,179,309
Long-term capital gain		528,595,355		133,233,459
Total distributions paid	$	563,294,339	$	202,412,768

Alger Green Fund
Distributions paid from:
Ordinary Income	$	—	$		9,327
Long-term capital gain		2,195,126			2,695,560
Total distributions paid	$	2,195,126	$		2,704,887

Alger Analyst Fund
Distributions paid from:
Ordinary Income	$	79,338	$		440,679
Long-term capital gain		583,838			252,615
Total distributions paid	$	663,176	$		693,294

Alger Dynamic Opportunities Fund
Distributions paid from:
Ordinary Income	$	—	$		2,424,128
Long-term capital gain		4,408,108			1,382,652
Total distributions paid	$	4,408,108	$		3,806,780

Alger Emerging Markets Fund
Distributions paid from:
Ordinary Income		—			—
Long-term capital gain		—			—
Total distributions paid		—			—

As of October 31, 2015 the components of accumulated gains (losses) on a tax basis were
as follows:

Alger Spectra Fund
Undistributed ordinary income					—
Undistributed long-term gains			$	460,682,021
Net accumulated earnings				460,682,021
Capital loss carryforwards					—
Late year ordinary income losses			(22,212,462 )
Net unrealized appreciation				693,852,139
Total accumulated earnings			$ 1,132,321,698

- 94 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Green Fund
Undistributed ordinary income		—
Undistributed long-term gains	$	1,122,955
Net accumulated earnings		1,122,955
Capital loss carryforwards		—
Late year ordinary income losses		(79,415	)
Net unrealized appreciation		22,573,811
Total accumulated earnings	$	23,617,351

Alger Analyst Fund
Undistributed ordinary income		—
Undistributed long-term gains	$	451,881
Net accumulated earnings		451,881
Capital loss carryforwards		—
Late year ordinary income losses		(79,223	)
Net unrealized appreciation		652,744
Total accumulated earnings	$	1,025,402

Alger Dynamic Opportunities Fund
Undistributed ordinary income		—
Undistributed long-term gains	$	3,332,068
Net accumulated earnings		3,332,068
Capital loss carryforwards		—
Late year ordinary income losses	$	(1,295,891	)
Net unrealized appreciation		4,532,790
Total accumulated earnings	$	6,568,967

Alger Emerging Markets Fund
Undistributed ordinary income	$	24,199
Undistributed long-term gains		—
Net accumulated earnings		24,199
Capital loss carryforwards		(3,755,501	)
Net unrealized appreciation		572,713
Total accumulated losses	$	(3,158,589	)

At October 31, 2015, the Alger Emerging Markets Fund, for federal income tax purposes,
had capital loss carryforwards as set forth in the table below. These amounts may be applied
against future net realized gains.

- 95 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


	Alger Emerging
Expiration Dates	Markets Fund
POST ACT	$	3,755,501
Total		3,755,501

Under the Regulated Investment Company Modernization Act of 2010, capital losses
incurred by the Funds after October 31, 2011 will not be subject to expiration. In addition,
losses incurred after October 31, 2011 must be utilized prior to the utilization of capital loss
carryforwards above.

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 partnerships investments, the realization of
unrealized appreciation of passive foreign investment companies, and return of capital from
real estate investment trust investments.

Permanent differences, primarily from net operating losses and real estate investment trusts
and partnership investments sold by the Funds, resulted in the following reclassifications
among each Fund’s components of net assets at October 31, 2015:


Alger Spectra Fund
Accumulated undistributed net investment income (accumulated loss)	$	(4,888,008	)
Accumulated net realized gain (accumulated realized loss)	$	7,201,003
Paid-in Capital	$	(2,312,995	)

Alger Green Fund
Accumulated undistributed net investment income (accumulated loss)	$	101,185
Accumulated net realized gain (accumulated realized loss)	$	44,067
Paid-in Capital	$	(145,252	)

Alger Analyst Fund
Accumulated undistributed net investment income (accumulated loss)	$	47,193
Accumulated net realized gain (accumulated realized loss)	$	(41,299	)
Paid-in Capital	$	(5,894	)

Alger Dynamic Opportunities Fund
Accumulated undistributed net investment income (accumulated loss)	$	1,194,590
Accumulated net realized gain (accumulated realized loss)	$	131,842
Paid-in Capital	$	(1,326,432	)

- 96 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Emerging Markets Fund
Accumulated undistributed net investment income (accumulated loss)	$	(23,578	)
Accumulated net realized gain (accumulated realized loss)	$	23,578
Paid-in Capital	$	–

NOTE 8 — Fair Value Measurements
The following is a summary of the inputs used as of October 31, 2015 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.


Alger Spectra Fund			TOTAL FUND				LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	$			1,109,200,792		$	1,109,125,909		—	$	74,883
Consumer Staples			318,763,357			318,763,357			—		—
Energy			104,779,508			104,779,508			—		—
Financials			274,113,643			274,113,643			—		—
Health Care			1,015,178,148				974,382,062	40,796,086			—
Industrials			504,640,954			504,640,954			—		—
Information Technology			1,842,588,563				1,839,453,935		—		3,134,628
Materials			80,387,308			80,387,308			—		—
Telecommunication Services			34,647,319			34,647,319			—		—
Utilities			22,723,140			15,013,306			7,709,834		—
TOTAL COMMON STOCKS	$	5,307,022,732			$	5,255,307,301		$	48,505,920	$	3,209,511
MASTER LIMITED PARTNERSHIP
Energy				287,300			287,300		—		—
Financials			71,600,455			71,600,455			—		—
TOTAL MASTER LIMITED
PARTNERSHIP		$		71,887,755		$	71,887,755		—		—
PREFERRED STOCKS
Consumer Discretionary				2,227,288			—		—		2,227,288
Health Care			19,551,065				—		—	19,551,065
Information Technology			14,449,500				—		—	14,449,500
TOTAL PREFERRED STOCKS		$		36,227,853			—		—	$	36,227,853
REAL ESTATE INVESTMENT TRUST
Financials			89,264,806			89,264,806			—		—
SPECIAL PURPOSE VEHICLE
Financials				2,715,111			—		—		2,715,111
TOTAL INVESTMENTS IN
SECURITIES	$	5,507,118,257			$	5,416,459,862		$	48,505,920	$	42,152,475

- 97 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Spectra Fund	TOTAL FUND			LEVEL 1	LEVEL 2	LEVEL 3
SECURITIES SOLD SHORT
COMMON STOCKS
Consumer Discretionary	49,561,323		49,561,323		—	—
Consumer Staples		7,597,814		7,597,814	—	—
Financials	24,531,860		24,531,860		—	—
Industrials	43,586,751		43,586,751		—	—
Information Technology	36,823,818		36,823,818		—	—
Materials		5,520,790		5,520,790	—	—
TOTAL COMMON STOCKS	$	167,622,356	$	167,622,356	—	—

- 98 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Green Fund		TOTAL FUND				LEVEL 1	LEVEL 2			LEVEL 3
COMMON STOCKS
Consumer Discretionary	$	21,125,910		$	21,124,390			—	$	1,520
Consumer Staples			5,609,251			5,609,251		—		—
Financials			692,954			692,954		—		—
Health Care			8,454,685			8,454,685		—		—
Industrials		15,088,277			15,088,277			—		—
Information Technology		24,431,984			24,431,984			—		—
Materials			1,284,123			1,284,123		—		—
Utilities			2,464,047			2,464,047		—		—
TOTAL COMMON STOCKS		$	79,151,231		$	79,149,711		—	$	1,520
PREFERRED STOCKS
Consumer Discretionary			42,434			—		—		42,434
TOTAL INVESTMENTS IN
SECURITIES		$	79,193,665		$	79,149,711		—	$	43,954


Alger Analyst Fund		TOTAL FUND				LEVEL 1	LEVEL 2			LEVEL 3
COMMON STOCKS
Consumer Discretionary		$	2,621,775		$	2,621,775		—		—
Consumer Staples			158,803			158,803		—		—
Energy			525,056			525,056		—		—
Financials			278,908			278,908		—		—
Health Care			1,247,558			1,247,558		—		—
Industrials			1,291,005			1,291,005		—		—
Information Technology			2,059,226			2,059,226		—		—
Materials			389,890			389,890		—		—
Telecommunication Services			130,446			130,446		—		—
TOTAL COMMON STOCKS		$	8,702,667		$	8,702,667		—		—
MASTER LIMITED PARTNERSHIP
Financials			109,131			109,131		—		—
TOTAL INVESTMENTS IN
SECURITIES		$	8,811,798		$	8,811,798		—		—

- 99 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Dynamic Opportunities Fund		TOTAL FUND				LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	$ 17,770,202			$	17,770,202			—		—
Consumer Staples			4,302,830			3,689,983		612,847		—
Energy			944,011			944,011		—		—
Financials			5,906,049			5,906,049		—		—
Health Care		20,051,579			20,051,579			—		—
Industrials		10,915,224			10,915,224			—		—
Information Technology		21,929,182			21,572,534			297,194		59,454
Utilities			145,050			—		145,050		—
TOTAL COMMON STOCKS	$		81,964,127		$	80,849,582	$	1,055,091	$	59,454
MASTER LIMITED PARTNERSHIP
Financials			2,099,145			2,099,145		—		—
PREFERRED STOCKS
Health Care			618,133			—		—		618,133
Information Technology			274,059			—		—		274,059
TOTAL PREFERRED STOCKS	$		892,192			—		—	$	892,192
REAL ESTATE INVESTMENT TRUST
Financials			2,001,540			2,001,540		—		—
RIGHTS
Health Care			—			—		—		—*
SPECIAL PURPOSE VEHICLE
Financials			159,212			—		—		159,212
U.S. GOVERNMENT AGENCY OBLIGATIONS (EXCLUDING MORTGAGE-BACKED)
Financials		24,999,845				—	24,999,845			—
TOTAL INVESTMENTS IN
SECURITIES	$		112,116,061		$	84,950,267	$	26,054,936	$	1,110,858
SECURITIES SOLD SHORT
COMMON STOCKS
Consumer Discretionary			2,992,042			2,992,042		—		—
Consumer Staples			823,866			823,866		—		—
Financials			2,361,405			2,361,405		—		—
Health Care			1,265,696			1,265,696		—		—
Industrials			2,044,693			2,044,693		—		—
Information Technology			4,836,030			4,836,030		—		—
Market Indices			1,399,582			1,399,582		—		—
Materials			394,631			394,631		—		—
TOTAL COMMON STOCKS	$		16,117,945		$	16,117,945		—		—
REAL ESTATE INVESTMENT TRUST
Financials			509,566			509,566		—		—
TOTAL SECURITIES SOLD SHORT $			16,627,511		$	16,627,511		—		—

- 100 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Emerging Markets Fund		TOTAL FUND			LEVEL 1		LEVEL 2				LEVEL 3
COMMON STOCKS
Consumer Discretionary	$		4,222,139	$	1,411,472	$	2,810,667				—
Consumer Staples			2,530,079		632,164		1,897,915				—
Energy			484,420		—		484,420				—
Financials			5,684,868		1,294,425		4,390,443				—
Health Care			1,456,833		—		1,456,833				—
Industrials			2,060,771		—		2,060,771				—
Information Technology			6,274,965		1,253,355		5,021,610				—
Materials			1,137,876		231,574		906,302				—
Telecommunication Services			1,148,704		—		1,148,704				—
Utilities			723,835		314,615		409,220				—
TOTAL COMMON STOCKS	$		25,724,490	$	5,137,605	$	20,586,885				—
SPECIAL PURPOSE VEHICLE
Financials			43,241		—			—			43,241
TOTAL INVESTMENTS IN
SECURITIES	$		25,767,731	$	5,137,605	$	20,586,885			$	43,241

*Alger Dynamic Opportunities Fund Rights are fair valued at zero as of October 31, 2015.

									FAIR VALUE
								MEASUREMENTS
								USING SIGNIFICANT
								UNOBSERVABLE
								INPUTS (LEVEL 3)
Alger Spectra Fund								Common Stocks
Opening balance at November 1, 2014								$			2,208,793
Transfers into Level 3											—
Transfers out of Level 3											—
Total gains or losses
Included in net realized gain (loss) on investments											–
Included in net unrealized gain (loss) on investments											1,000,718
Purchases and sales											–
Purchases											–
Sales											–
Closing balance at October 31, 2015											3,209,511
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015								$			1,000,718

- 101 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Spectra Fund	Preferred Stocks
Opening balance at November 1, 2014	$		20,225,421
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			2,898,378
Purchases and sales			–
Purchases			13,104,054
Sales			–
Closing balance at October 31, 2015			36,227,853
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		2,898,378

	Special Purpose
Alger Spectra Fund			Vehicle
Opening balance at November 1, 2014	$		—
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			–
Purchases and sales			–
Purchases			2,715,111
Sales			–
Closing balance at October 31, 2015			2,715,111
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		–

- 102 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Green Fund	Common Stocks
Opening balance at November 1, 2014	$		2,063
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(543	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2015			1,520
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		(543	)

Alger Green Fund	Preferred Stocks
Opening balance at November 1, 2014	$		57,589
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(15,155	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2015			42,434
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		(15,155	)

- 103 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Dynamic Opportunities Fund	Common Stocks
Opening balance at November 1, 2014	$		39,966
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			19,488
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2015			59,454
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		19,488

Alger Dynamic Opportunities Fund	Preferred Stocks
Opening balance at November 1, 2014	$		314,187
Transfers into Level 3			320,069	*
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			71,555
Purchases and sales			–
Purchases			186,381
Sales			–
Closing balance at October 31, 2015			892,192
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		71,555
*Tolero Pharmaceuticals, Inc. was changed from an observable transaction price to a mark to model.

Alger Dynamic Opportunities Fund			Rights
Opening balance at November 1, 2014	$		25,932
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			(25,932	)
Purchases and sales			–
Purchases			–
Sales			–
Closing balance at October 31, 2015			—
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		(25,932	)

- 104 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
	Special Purpose
Alger Dynamic Opportunities Fund			Vehicle
Opening balance at November 1, 2014	$		—
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			–
Purchases and sales			–
Purchases			159,212
Sales			–
Closing balance at October 31, 2015			159,212
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		–

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
	Special Purpose
Alger Emerging Markets Fund			Vehicle
Opening balance at November 1, 2014	$		—
Transfers into Level 3			—
Transfers out of Level 3			—
Total gains or losses
Included in net realized gain (loss) on investments			–
Included in net unrealized gain (loss) on investments			–
Purchases and sales			–
Purchases			43,241
Sales			–
Closing balance at October 31, 2015			43,241
The amount of total gains or losses for the period included in net realized
and unrealized gain (loss) attributable to change in unrealized appreciation
(depreciation) relating to investments still held at 10/31/2015	$		–

The following table provides quantitative information about our Level 3 fair value
measurements of our investments as of October 31, 2015. In addition to the techniques
and inputs noted in the table below, according to our valuation policy we may also use other
valuation techniques and methodologies when determining our fair value measurements.
The table below is not intended to be all-inclusive, but rather provides information on the
Level 3 inputs as they relate to our fair value measurements.

- 105 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		Fair Value	Valuation	Unobservable
		October 31, 2015	Methodology	Input	Input/Range
Alger Spectra Fund
Common Stocks	$	3,209,511	Income	Discount Rate	22.5-40	%
			Approach
Preferred Stocks		36,227,853	Income	Discount Rate	10-40	%
			Approach
Special Purpose Vehicle		2,715,111	Cost Approach	Purchase Price	Cost
Alger Green Fund
Common Stocks	$	1,520	Income	Discount Rate	40	%
			Approach
Preferred Stocks		42,434	Income	Discount Rate	40	%
			Approach
Alger Dynamic Opportunities Fund
Common Stocks	$	59,454	Income	Discount Rate	22.5	%
			Approach
Preferred Stocks		892,192	Income	Discount Rate	10-22.5%
			Approach
Rights		0	Cost Approach	Probability of	0	%
				Success
Special Purpose Vehicle		159,212	Cost Approach	Purchase Price	Cost

Alger Emerging Markets Fund
Special Purpose Vehicle		43,241	Cost Approach	Purchase Price	Cost

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 as noted in the table above.

On October 31, 2015, the Alger Spectra Fund, Alger Dynamic Opportunities Fund and Alger
Emerging Markets Fund, transferred $40,796,086, $297,194, and $13,297,810, respectively
from Level 1 to Level 2, utilizing fair value adjusted prices rather than exchange listed prices.

Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which
approximates fair value for financial statement purposes. As of October 31, 2015, such
assets are categorized within the ASC 820 disclosure hierarchy as follows:


		TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
Cash, Foreign cash and Cash equivalents:
Alger Spectra Fund	$	150,438,392		$	41,617,997			$ 108,820,395		—
Alger Green Fund			4,268,263			—		4,268,263		—
Alger Analyst Fund			195,124			—		195,124		—
Alger Dynamic Opportunities Fund		38,457,934			19,105,029		19,352,905			—
Alger Emerging Markets Fund			1,173,935		87,867			1,086,068		—

NOTE 9 — Derivatives:
Financial Accounting Standards Board Accounting Standards Codification 815 – Derivatives
and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for
- 106 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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—The Funds seek to capture the majority of the returns associated with equity
market investments. To meet this investment goal, the Funds invest in a broadly diversified
portfolio of common stocks, while also buying and selling call and put options on equities
and equity indices. 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 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 year ended October 31, 2015, 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 clearing house that acts as an
intermediary between buyer and seller, receiving initial and maintenance margin from both,
and guaranteeing performance of the option contract.

There were no open derivative instruments as of October 31, 2015

For the year ended October 31, 2015, Alger Dynamic Opportunities Fund had option
purchases of $70,851 and option sales of $48,362. The effect of derivative instruments
on the accompanying Statement of Operations for the year ended October 31, 2015, is as
follows


NET REALIZED LOSS ON INVESTMENTS, OPTIONS
Alger Dynamic Opportunities Fund
Derivatives not accounted for as hedging instruments		Options
Purchased Options	$	(22,488	)
Total	$	(22,488	)

NOTE 10 — Principal Risks:
In the normal course of business, the Fund invests in securities and enters into transactions
where risks exist due to fluctuations in the market (market risk) or failure of the issuer
of a security to meet all its obligations (issuer credit risk). The value of securities held by
the Fund may decline in response to certain events, including those directly involving the
issuers whose securities are owned by the Fund; conditions affecting the general economy;
- 107 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

overall market changes; local, regional or global political, social or economic instability;
and currency and interest rate and price fluctuations. Similar to issuer credit risk, the
Fund may be exposed to counterparty credit risk, or the risk that an entity with which
the Fund has unsettled or open transactions may fail to or be unable to perform on its
commitments. The Fund manages counterparty credit risk by entering into transactions only
with counterparties that it believes has the financial resources to honor its obligations and by
monitoring the financial stability of those counterparties. Financial assets, which potentially
expose the Fund to market, issuer and counterparty credit risks, consist principally of
financial instruments and receivables due from counterparties. The extent of the Fund’s
exposure to market, issuer and counterparty credit risks with respect to these financial assets
is generally approximated by its value recorded in the Statement of Assets and Liabilities,
less any collateral held by the Fund.

NOTE 11 — Affiliated Securities:
The securities listed below are deemed to be affiliates of the Funds because the Funds or
affiliates owned 5% or more of the company’s voting securities during all or part of the year
ended October 31, 2015. Purchase and sale transactions and dividend income earned during
the year were as follows:


	Shares/Par			Shares/Par
	at			at		Realized	Value at
	October 31,	Purchases/	Sales/	October 31,	Dividend	Gain	October
Security	2014	Conversion	Conversion	2015	Income	(Loss)	31, 2015

Alger Spectra Fund
Common Stocks
Choicestream, Inc.*	178,292	–	–	178,292	–	–	74,883
Preferred Stocks
Choicestream, Inc.*	5,303,067	–	–	5,303,067	–	–	2,227,288
Prosetta Biosciences,
Inc.*	–	2,912,012	–	2,912,012	–	–	13,104,054
Alger Green Fund
Common Stocks
Choicestream, Inc.*	3,619	–	–	3,619	–	–	1,520
Preferred Stocks
Choicestream, Inc.*	101,034	–	–	101,034	–	–	42,434
Alger Dynamic
Opportunities Fund
Preferred Stocks
Prosetta Biosciences,
Inc.*	–	41,418	–	41,418	–	–	186,381
Tolero
Pharmaceuticals, Inc.*	106,120	–	–	106,120	–	–	320,069

* Non-incomeproducingsecurity.

- 108 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 12 — Subsequent Events:
Management of each Fund has evaluated events that have occurred subsequent to October
31, 2015 through the issuance date of the Financial Statements. No such events have been
identified which require recognition and disclosure.

- 109 -

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of The Alger Funds II and the Shareholders of the Alger Spectra
Fund, Alger Green Fund, Alger Analyst Fund, Alger Dynamic Opportunities Fund, and
Alger Emerging Markets Fund:

We have audited the accompanying statements of assets and liabilities, including the
schedules of investments, of The Alger Funds II, comprised of the Alger Spectra Fund,
Alger Green Fund, Alger Analyst Fund, Alger Dynamic Opportunities Fund, and Alger
Emerging Markets Fund (the “Funds”) as of October 31, 2015, and the related statements
of operations for the year then ended, the statements of changes in net assets for each
of the two years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the responsibility
of the Funds' management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. The Funds are not required to have,
nor were we engaged to perform, an audit of their internal control over financial reporting.
Our audits included consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Funds' internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2015, by correspondence with the
custodian and brokers; when replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present
fairly, in all material respects, the financial position of each of the portfolios constituting
The Alger Funds II as of October 31, 2015, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America.

Deloitte & Touche LLP
New York, New York
January 8, 2016

- 110 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited)

Shareholder Expense Example
As a shareholder of a 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 May 1, 2015 and ending October 31, 2015.

Actual Expenses
The first line for each class of shares in the table below provides information about actual
account values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you would have paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first line under the
heading entitled “Expenses Paid during the Period” to estimate the expenses you paid on
your account during this period.

Hypothetical Example for Comparison Purposes
The second line for each class of shares in the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund’s actual expense
ratios for each class of shares and an assumed rate of return of 5% per year before expenses,
which is not the Fund’s actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs
only and do not reflect any transaction costs, such as sales charges (loads) and redemption
fees. Therefore, the second line under each class of shares in the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your costs would
have been higher.

- 111 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)


										Annualized
							Expenses			Expense Ratio
							Paid During				For the
		Beginning				Ending	the Six Months			Six Months
			Account			Account		Ended			Ended
			Value			Value	October 31,			October 31,
		May 1, 2015			October 31, 2015			2015	^(a)		2015	^(b)
Alger Spectra Fund
Class A	Actual	$	1,000.00	$	1,020.46		$	6.82			1.34	%
	Hypothetical^(c)		1,000.00		1,018.45			6.82			1.34
Class C	Actual		1,000.00		1,016.89		10.73				2.11
	Hypothetical^(c)		1,000.00		1,014.57		10.71				2.11
Class I	Actual		1,000.00		1,020.30			6.87			1.35
	Hypothetical^(c)		1,000.00		1,018.40			6.87			1.35
Class Z	Actual		1,000.00		1,022.42			5.30			1.04
	Hypothetical^(c)		1,000.00		1,019.96			5.30			1.04

Alger Green Fund
Class A	Actual	$	1,000.00		$	998.93	$	6.50			1.29	%
	Hypothetical^(c)		1,000.00		1,018.70			6.56			1.29
Class C	Actual		1,000.00			995.50	10.41				2.07
	Hypothetical^(c)		1,000.00		1,014.77		10.51				2.07
Class I	Actual		1,000.00		1,000.00			6.40			1.27
	Hypothetical^(c)		1,000.00		1,018.80			6.46			1.27

Alger Analyst Fund
Class A	Actual	$	1,000.00		$	968.63	$	7.10			1.43	%
	Hypothetical^(c)		1,000.00		1,018.00			7.27			1.43
Class C	Actual		1,000.00			966.20		9.66			1.95
	Hypothetical^(c)		1,000.00		1,015.38			9.91			1.95
Class I	Actual		1,000.00			968.54		7.10			1.43
	Hypothetical^(c)		1,000.00		1,018.00			7.27			1.43

Alger Dynamic Opportunities Fund
Class A	Actual	$	1,000.00		$	996.81	$	11.02			2.20	%
	Hypothetical^(c)		1,000.00		1,014.17			11.12			2.20
Class C	Actual		1,000.00			993.37	14.97				2.98
	Hypothetical^(c)		1,000.00		1,010.18		15.10				2.98
Class Z	Actual		1,000.00			998.42		9.67			1.93
	Hypothetical^(c)		1,000.00		1,015.53			9.75			1.93

- 112 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)


									Annualized
						Expenses			Expense Ratio
						Paid During				For the
		Beginning			Ending	the Six Months			Six Months
			Account		Account		Ended			Ended
			Value		Value	October 31,			October 31,
		May 1, 2015		October 31, 2015			2015	^(a)		2015	^(b)
Alger Emerging Markets Fund
Class A	Actual	$	1,000.00	$	874.23	$	8.17			1.70	%
	Hypothetical^(c)		1,000.00	1,016.48			8.79			1.70
Class C	Actual		1,000.00		871.85		11.65			2.45
	Hypothetical^(c)		1,000.00	1,012.75		12.53				2.45
Class I	Actual		1,000.00		874.49		8.17			1.70
	Hypothetical^(c)		1,000.00	1,016.48			8.79			1.70
Class Z	Actual		1,000.00		876.15		6.01			1.25
	Hypothetical^(c)		1,000.00	1,018.80			6.46			1.25

(a) Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account
value over the period, multiple by 184/365 (to reflect the one-half year period).
(b) Annualized.
(c) 5% annual return before expenses.

- 113 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)

Tax Information
In accordance with subchapter M of the Internal Revenue Code of 1986, as amended, for
the year ended October 31, 2015, 100.00% of the Alger Spectra Fund, 100.00% of the Alger
Green Fund and 57.46% of the Alger Analyst Fund’s dividends qualified for the dividends
received deduction for corporations. For the year ended October 31, 2015, certain dividends
paid by the Funds may be subject to a maximum rate of 15%, as provided by the Jobs and
Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal
year, 100.00% of the Alger Spectra Fund, 100.00% of the Alger Green Fund and 65.96% of
the Alger Analyst Fund’s dividend may be considered qualified dividend income.

Shareholders should not use the above information to prepare their tax returns. Since the
Fund’s fiscal year is not the calendar year, another notification will be sent with respect to
calendar year 2015. Such notification, which will reflect the amount to be used by tax payers
on their federal income tax returns, will be made in conjunction with Form 1099 DIV and
will be mailed in January 2016. Shareholders are advised to consult their own tax advisers
with respect to the tax consequences of their investment in the Fund.

Trustees and Officers of the Trust
Information about the trustees and officers of the Trust is set forth below. In the table the
term “Alger Fund Complex” refers to the Trust, The Alger Portfolios, The Alger Institutional
Funds, Alger Global Growth Fund and The Alger Funds, each of which is a registered
investment company managed by Fred Alger Management, Inc. (“Alger Management”).
Each Trustee serves until an event of termination, such as death or resignation, or until his
or her successor is duly elected; each officer’s term of office is one year. Unless otherwise
noted, the address of each person named below is 360 Park Avenue South, New York, NY
10010.

- 114 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)


			Number
			of Funds
			in the
			Alger Fund
		Trustee	Complex
		and/or	which are
Name, Age, Position with the		Officer	Overseen
Trust	Principal Occupations	Since	by Trustee
INTERESTED TRUSTEE

Hilary M. Alger (54)	Director of Development, Pennsylvania Ballet	2003	25
	2004-2013; Associate Director of Development,
	College of Arts and Sciences and Graduate School,
	University of Virginia 1999-2003.
NON-INTERESTED TRUSTEE

Charles F. Baird, Jr. (62)	Managing Partner of North Castle Partners, a	2000	25
	private equity securities group; Chairman of
	Elizabeth Arden Red Door Spas and Barry’s
	Bootcamp, former Chairman of Cascade Helmets,
	gloProfessional (makeup and skincare business),
	Contigo (manufacturer of mugs and water bottles),
	and International Fitness.
Roger P. Cheever (70)	Associate Vice President for Principal Gifts, and	2000	25
	Senior Associate Dean for Development in the
	Faculty of Arts and Sciences at Harvard University;
	Formerly Deputy Director of the Harvard College
	Fund.
Stephen E. O'Neil (82)	Attorney. Private Investor since 1981. Formerly of	1986	25
	Counsel to the law firm of Kohler & Barnes.
David Rosenberg (53)	Associate Professor of Law since January 2006	2007	25
	(Assistant Professor 2000-2005), Zicklin School of
	Business, Baruch College, City University of New
	York.
Nathan E. Saint-Amand	Medical doctor in private practice; Member of the	1986	25
M.D. (77)	Board of the Manhattan Institute (non-profit policy
	research)since1988;FormerlyCo-Chairman,Special
	Projects Committee, Memorial Sloan Kettering.

Ms. Alger is an “interested person” (as defined in the Investment Company Act) of the
Trust because of her affiliations with Alger Management. No Trustee is a director of any
public company except as indicated under “Principal Occupations”.

- 115 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)


			Number
			of Funds
			in the
			Alger Fund
		Trustee	Complex
		and/or	which are
Name, Age, Position with the		Officer	Overseen
Trust	Principal Occupations	Since	by Trustee
OFFICERS

Hal Liebes (51)	Executive Vice President, Chief Operating Officer,	2005	N/A
President	Chief Legal Officer and Secretary of Alger
	Management and Alger Inc.; Director since 2006 of
	Alger Management, Alger Inc. and Resources.
Lisa A. Moss (50)	Senior Vice President since 2009, and Vice	2006	N/A
Secretary	President and Assistant General Counsel of Alger
	Management since June 2006.
Michael D. Martins (50)	Senior Vice President of Alger Management;	2005	N/A
Treasurer	Assistant Treasurer since 2004.
Anthony S. Caputo (60)	Employed by Alger Management since 1986,	2007	N/A
Assistant Treasurer	currently serving as Vice President.
Sergio M. Pavone (54)	Employed by Alger Management since 2002,	2007	N/A
Assistant Treasurer	currently serving as Vice President.
Patrick J. Murphy (45)	Senior Vice President of Alger Management since	2014	N/A
Chief Compliance Officer	2014.
Joshua M. Lindauer (28)	Employed by Alger Management since 2014.	2014	N/A
Assistant Secretary

The Statement of Additional Information contains additional information about the Funds’
Trustees and is available without charge upon request by calling (800) 992-3863.

- 116 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)

Investment Management Agreement Renewal
At an in-person meeting held on September 29, 2015, the Trustees, including the Independent
Trustees, unanimously approved renewal of the Investment Advisory Agreement (the
“Agreement”) between the Trust and Fred Alger Management, Inc. (“Alger Management”).
The Independent Trustees were assisted in their review by independent legal counsel and met
with such counsel in executive session separate from representatives of Alger Management.

In evaluating the Agreement, the Trustees drew on materials that they had requested and
which were provided to them in advance of the meeting by Alger Management and by
counsel. The materials covered, among other matters, (i) the nature, extent and quality
of the services provided by Alger Management under the Agreement, (ii) the investment
performance of each of the Trust’s portfolios (each a “Fund”), (iii) the costs to Alger
Management of its services and the profits realized by Alger Management and Fred Alger
& Company, Incorporated (“Alger Inc.”), from their relationship with the Trust, and (iv)
the extent to which economies of scale would be realized if and as the Funds grow and
whether the fee levels in the Agreement reflect such economies of scale. These materials
included a presentation and analysis of the Funds and Alger Management’s services by
FUSE Research Network LLC (“FUSE”), an independent consulting firm selected by the
Trust’s Chief Compliance Officer and having no other material relationship with Alger
Management or its affiliates.

In deciding whether to approve renewal of the Agreement, the Trustees considered various
factors, including those enumerated above. They also considered other direct and indirect
benefits to Alger Management and its affiliates from their relationship with the Trust.

Nature, Extent and Quality of Services. In considering the nature, extent and quality of
the services provided by Alger Management pursuant to the Agreement, the Trustees relied
on their prior experience as Trustees of the Trust, their familiarity with the personnel and
resources of Alger Management and its affiliates (derived in part from quarterly meetings
with and presentations by Fund investment management and distribution personnel),
and the materials provided at the meeting. They noted that under the Agreement, Alger
Management is responsible for managing the investment operations of the Funds. The
Trustees reviewed the background and experience of Alger Management's senior investment
management personnel, including the individuals currently responsible for the investment
operations of the Funds. They also considered the resources and practices of Alger
Management in managing each Fund's portfolio, as well as Alger Management's overall
investment management business. They noted especially Alger Management's established
expertise in managing portfolios of "growth" stocks and that, according to an analysis
provided by FUSE, the characteristics of each Fund had been consistent with those of a
growth-oriented fund. The Board noted that each Fund was being managed consistent with
its growth mandate. They further noted that Alger Management’s investment management
team includes several individuals with successful backgrounds in emerging markets, a sector
in which the Emerging Markets Fund is active. They also noted that during the year Alger
Management had continued its ongoing efforts to strengthen its investment management
team with important hires. The Trustees concluded that Alger Management's experience,
- 117 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)

resources and strength in the areas of importance to the Funds are considerable. The
Trustees considered the level and depth of Alger Management's ability to execute portfolio
transactions to effect investment decisions, including those through Alger Inc. They also
noted that certain administrative, compliance, reporting and accounting services necessary
for the conduct of the Trust's affairs are provided separately under an Administration
Agreement and a Shareholder Administrative Services Agreement with Alger Management.
The Trustees also considered the control and compliance environment at Alger Management
and within the Trust.

Investment Performance of the Portfolios. Drawing upon information provided at the
meeting by Alger Management as well as FUSE and upon reports provided to the Trustees
by Alger Management throughout the preceding year, the Trustees reviewed each Fund’s
returns for the year-to-date (at 6/30/15), second-quarter of 2015, 1-, 3- and 5-year and longer
periods to the extent available (and its year-by-year returns), together with supplemental
performance data through 8/31/15, and compared them with benchmark and peer-group
data for the same periods. They noted that Spectra Fund, the Dynamic Opportunities Fund
and the Emerging Markets Fund all showed uniformly strong performance, surpassing peer
medians and benchmarks in all periods of three years or less ending June 30, 2015. (Mixed
2013 and/or 2012 results affected their 5-year readings.) The Green Fund showed steadily
improving performance in the shorter recent periods, improving from its poor 1-year results
to superior performance against its peers and benchmark for the June 30, 2015 quarter.
A supplement in the FUSE materials portraying the Fund’s performance against a more
appropriate peer group showed improvement starting even earlier, surpassing peer medians
at the 1-year mark and improving from there. While the Analyst Fund showed disappointing
performance for the 1-year and more recent periods, the Trustees did not include these
results in their evaluation, because a process had been begun of reconfiguring (and
renaming) the Fund with a new investment strategy and portfolio management structure.
Representatives of Alger Management discussed with the Trustees the recent performance
of each Fund and the measures that the firm had instituted to improve the performance
of Funds that had underperformed. On the basis of these discussions and their review, the
Trustees determined that the performance of the Funds was acceptable.

Fund Fees and Expense Ratios; Profitability to Alger Management and its Affiliates.
The Trustees reviewed each Fund's management fee and expense ratio and compared
them with those of a group of comparable funds. In order to assist the Trustees in this
comparison, FUSE had provided the Trustees with comparative information with respect to
the advisory fees and expense ratios of relevantly similar funds. That information indicated
that the advisory fees for the Green Fund, Analyst Fund and Dynamic Opportunities Fund
were at or below the median for their peers while those of the Emerging Markets Fund and
Spectra Fund exceeded their medians (but not so far as to place the Fund in the top quartile
of peer-fund fees). As to the latter two Funds, the Trustees noted that contractual expense-
reimbursement commitments by Alger Management maintained the expense ratios of the
Emerging Markets Fund at lower levels than they would otherwise reach, while the level
of the Spectra Fund fee had been lowered by operation of an applicable fee breakpoint.
Of the 17 expense ratios for the Funds’ various share classes, eight were below or at their
- 118 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)

peer medians; of the remaining nine, only three placed in the top quartile of the applicable
reference group, and all three of these were for very small Fund classes which therefore
suffered in comparison with their peers. Of the remaining six ratios, three were also for
small Fund classes. One of the six was for a comparatively large class of Spectra Fund; as to
that expense ratio, the Trustees noted that the shareholders of Spectra Fund had benefitted
from consistently high returns relative to the Fund’s peers. The remaining two expense
ratios, for Classes A and I of the Green Fund, placed in the third quartile, just above the
median, and represented comparatively modest assets of $32.6 million and 42.4 million,
respectively. The Trustees determined that this information should be taken into account in
weighing the size of the fee against the nature, extent and quality of the services provided.

The Trustees also considered fees paid to Alger Management by four other types of clients,
specifically mutual funds for which Alger Management was sub-adviser, separately managed
institutional accounts, “wrap programs,” and collective investment trusts. The Trustees
determined that in all four cases the fees were of doubtful relevance for purposes of
comparison with those of the Funds because of the differences in services provided by
Alger Management to those types of clients as opposed to the Funds, but that to the extent
that meaningful comparison was practicable, the differences in services adequately explained
the differences in the fees. The Trustees then considered the profitability of the Investment
Advisory Agreement to Alger Management and its affiliates, and the methodology used by
Alger Management in determining such profitability. The Trustees reviewed previously-
provided data on each Fund's profitability to Alger Management and its affiliates for the
year ended June 30, 2015. After discussing with representatives of Alger Management
and FUSE the expense-allocation practices used in computing the costs that formed the
bases of the profitability calculations, the Trustees turned to the profitability data provided.
After analysis and discussion, they concluded in each case that, to the extent that Alger
Management’s and its affiliates’ relationships with the Fund had been profitable, the profit
margin was not unacceptable.

Economies of Scale. On the basis of their discussions with management and their
analysis of information provided at the meeting, the Trustees determined that the nature
of the Funds and their operations is such that Alger Management is likely to realize
economies of scale in the management of each Fund at some point as (and if) it grows
in size. In that connection, they noted that the advisory fee schedules in the Agreement
include fee reductions for each Fund (other than the Alger Emerging Markets Fund) at
specified Fund asset levels (“breakpoints”); these have the effect of lowering the Fund’s
overall management fee as the Fund grows past a breakpoint, thus sharing with the Fund’s
shareholders economies of scale achieved by Alger Management in managing the growing
Fund. (The Emerging Markets Fund, with assets at 6/30/15 of less than $25 million and
for which Alger Management was waiving some of its management fees, continued to be
deemed too small realistically to merit the institution of fee breakpoints.)

Other Benefits to Alger Management. The Trustees considered whether Alger
Management benefits in other ways from its relationship with the Trust. They noted that
Alger Management maintains soft-dollar arrangements in connection with the Funds'

- 119 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)

brokerage transactions, reports on which are regularly supplied to the Trustees at their
quarterly meetings and summaries of which, listing soft-dollar commissions by Fund for
the twelve months through June 30, 2015, had been included in the materials supplied prior
to the meeting. The Trustees also noted that Alger Management receives fees from the
Funds under the Administration Agreement and the Shareholder Administrative Services
Agreement, and that Alger Inc. provides a considerable portion of the Funds' equity
brokerage and receives shareholder servicing fees from the Funds as well. The Trustees
had been provided with information regarding, and had considered, the administration fee,
shareholder administrative services fee, brokerage and shareholder servicing fee benefits in
connection with their review of the profitability to Alger Management and its affiliates of
their relationships with the Funds. As to other benefits received, the Trustees decided that
none were so significant as to render Alger Management's fees excessive.

Conclusions and Determinations. At the conclusion of these discussions, each of the
Independent Trustees expressed the opinion that he had been furnished with sufficient
information to make an informed business decision with respect to renewal of the
Investment Advisory Agreement. Based on its discussions and considerations as described
above, the Board made the following conclusions and determinations in respect of each
Fund:

• The Board concluded that the nature, extent and quality of the services provided
to the Fund by Alger Management are adequate and appropriate.
• The Board determined that the Fund’s performance was acceptable.
• The Board concluded that the advisory fee paid to Alger Management by the
Fund was reasonable in light of comparative performance and expense and advi-
sory fee information, costs of the services provided and profits to be realized and
benefits derived or to be derived by Alger Management and its affiliates from the
relationship with the Fund. The Trustees noted in the case of certain Funds that
Alger Management had voluntarily undertaken to cap Fund expenses through ex-
pense reimbursements and fee waivers, thus in effect lowering the fees it actually
received from the Fund.
• With respect to each Fund other than the small Alger Emerging Markets Fund,
the Board accepted Alger Management’s acknowledgement that economies of
scale were likely to be achieved in the management of the Fund and determined
that the fee breakpoints in the Agreement provided a means by which Alger Man-
agement would share the benefits of such economies with Fund shareholders.
The Board considered these conclusions and determinations and, without any one factor
being dispositive, determined with respect to each Fund that renewal of the Investment
Advisory Agreement was in the best interests of the Fund and its shareholders.

- 120 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)

Privacy Policy


U.S. Consumer Privacy Notice Rev. 01/2015				3/30/15
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?	Allfinancialcompaniesneedtosharepersonalinformationtoruntheireverydaybusiness.
	In the section below, we list the reasons financial companies can share their personal
	information; the reasons chooses to share; and whether you can limit this sharing.

Reasons we can share your personal		Does	Can you limit
information		Alger share?	this sharing?
For our everyday business purposes —		Yes		No
such as to process your transactions, maintain
your account(s), respond to court orders and
legal investigations, or report to credit bureaus
For our marketing purposes —to offer our		Yes		No
products and services to you
For joint marketing with other financial		No		We don’t share
companies
For our affiliates’everyday business		Yes		No
purposes — information about your
transactions and experiences
For our affiliates’everyday business		No		We don’t share
purposes — information about your
creditworthiness
For nonaffiliates to market to you —for all		No		We don’t share
credit card accounts
For nonaffiliates to market to you		No		We don’t share
Question? Call 1-800-342-2186

- 121 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)


Who we are

Who is providing this notice?	Alger includes Fred Alger Management, Inc. and Fred
	Alger & Company, Incorporated as well as the following
	funds: The Alger Funds, The Alger Funds II, The Alger
	Institutional Funds, The Alger Portfolios, and Alger
	Global Growth Fund.


What we do
How does Alger	To protect your personal information from unauthorized
protect my personal	access and use, we use security measures that comply
information?	with federal law. These measures include computer
	safeguardsandsecuredfilesandbuildings.
How does Alger	We collect your personal information, for example,
collect my personal	when you:
information?	• Open an account or
	• Make deposits or withdrawals from 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 only
	• sharing foraffiliates’everydaybusinesspurposes
	information about your credit worthiness
	• affiliates fromusingyourinformationtomarkettoyou
	• sharing fornonaffiliatestomarkettoyou
	State laws and individual companies may give you
	additional rights to limit sharing.


Definitions
Affiliates	Companies related by common ownership or control.
	Theycanbefinancialandnonfinancialcompanies.
	• Our affiliatesincludeFredAlgerManagement,Inc.
	and Fred Alger & Company, Incorporated as well as
	the following funds: The Alger Funds, The Alger
	Funds II, The Alger Institutional Funds, The Alger
	Portfolios, and Alger Global Growth Fund.
Nonaffiliates	Companies not related by common ownership or
	control.Theycanbefinancialandnonfinancial
	companies
Joint marketing	Aformalagreementbetweennonaffiliatedfinancial
	companiesthattogethermarketfinancialproductsor
	services to you.
Other important information

- 122 -

THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited) (Continued)

Proxy Voting Policies
A description of the policies and procedures the Trust uses to determine how to vote
proxies relating to portfolio securities and information regarding how the Fund voted
proxies relating to portfolio securities during the most recent 12-month period ended June
30 are available, without charge, by calling (800) 992-3863 or online on the Funds’ website
at www.alger.com or on the SEC’s website at www.sec.gov.

Fund Holdings
The Board of Trustees has adopted policies and procedures relating to disclosure of the
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 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 full holdings available semi-annually in shareholder reports filed on
Form N-CSR and after the first and third fiscal quarters in regulatory filings on Form N-Q.
These shareholder reports and regulatory filings are filed with the SEC, as required by federal
securities laws, and are generally available within sixty (60) days of the end of the Funds’
fiscal quarter. The Funds’ Forms N-Q are available online on the SEC’s website at www.
sec.gov or may be reviewed and copied at the SEC’s Public Reference Room in Washington,
D.C. Information regarding the operation of the SEC’s Public Reference Room may be
obtained by calling 1-800-SEC-0330.

In addition, the Funds make publicly available their respective month-end top 10 holdings
with a 15 day lag and their month-end full portfolios with a 60 day lag on their website www.
alger.com and through other marketing communications (including printed advertising/
sales literature and/or shareholder telephone customer service centers). No compensation
or other consideration is received for the non-public disclosure of portfolio holdings
information.

In accordance with the foregoing, the Funds provide portfolio holdings information to
service providers who provide necessary or beneficial services when such service providers
need access to this information in the performance of their services and are subject to
duties of confidentiality (1) imposed by law, including a duty not to trade on non-public
information, and/or (2) pursuant to an agreement that confidential information is not to be
disclosed or used (including trading on such information) other than as required by law. From
time to time, the Funds will communicate with these service providers to confirm that they
understand the Funds’ policies and procedures regarding such disclosure. This agreement
must be approved by the Funds’ Chief Compliance Officer, President or Secretary.

- 123 -

THE ALGER FUNDS II
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 Manager may,
upon request, make additional statistical information available regarding the Funds. Such
information will include, but not be limited to, relative weightings and characteristics of a
Fund portfolios versus its peers or an index (such as P/E ratio, alpha, beta, capture ratio,
standard deviation, EPS forecasts, Sharpe ratio, information ratio, R-squared, and market
cap analysis), security specific impact on overall portfolio performance month-end top
ten contributors to and detractors from performance, breakdown of High Unit Volume
Growth holdings vs. Positive Lifecycle Change holdings, portfolio turnover, and requests
of a similar nature. Please contact the Funds at (800) 992-3863 to obtain such information.

- 124 -

THE ALGER FUNDS II

360 Park Avenue South
New York, NY 10010
(800) 992-3863
www.alger.com

Investment Manager

Fred Alger Management, Inc.
360 Park Avenue South
New York, NY 10010

Distributor

Fred Alger & Company, Incorporated
360 Park Avenue South
New York, NY 10010

Transfer Agent and Dividend Disbursing Agent

State Street Bank and Trust Company
c/o Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266-8480

Custodian

Brown Brothers Harriman & Company
50 Post Office Square
Boston, MA 02110

This report is submitted for the general information of the shareholders of The Alger
Funds II. 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.

- 125 -

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its
principal executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended its Code of Ethics during the period covered by the
shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its
Code of Ethics during the period covered by the shareholder report presented in Item 1
hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as an Exhibit hereto.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the Registrant determined that Stephen E. O’Neil is an audit committee
financial expert (within the meaning of that phrase specified in the instructions to Form N-CSR)
on the Registrant’s audit committee. Mr. O’Neil is an “independent” trustee – i.e., he is not an
interested person of the Registrant as defined in the Investment Company Act of 1940, nor has
he accepted directly or indirectly any consulting, advisory or other compensatory fee from the
Registrant, other than in his capacity as Trustee.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.


a) Audit Fees:
October 31, 2015	$	140,000
October 31, 2014	$	135,500

b) Audit-Related Fees: NONE

c) Tax Fees for tax advice, tax compliance and tax planning:
October 31, 2015	$	23,500
October 31, 2014	$	27,250

d) All Other Fees:
October 31, 2015	$	10,100
October 31, 2014	$	9,760

Other fees include a review and consent for Registrants registration statement filing and
a review of the semi-annual financial statements.

e) 1) Audit Committee Pre-Approval Policies And Procedures:

Audit and non-audit services provided by the Registrant’s independent registered public
accounting firm (the “Auditors”) on behalf the Registrant must be pre-approved by the
Audit Committee. Non-audit services provided by the Auditors on behalf of the
Registrant’s Investment Adviser or any entity controlling, controlled by, or under

common control with the Investment Adviser must be pre-approved by the Audit
Committee if such non-audit services directly relate to the operations or financial
reporting of the Registrant.

2) All fees in item 4(b) through 4(d) above were approved by the Registrants’ Audit
Committee.

f) Not Applicable

g) Non-Audit Fees:


October 31, 2015	$	191,042	€69,347
October 31, 2014	$	201,965	€67,800

h) The audit committee of the board of trustees has considered whether the provision of the
non-audit services that were rendered to the registrant's investment adviser and any entity
controlling, controlled by, or under common control, with the adviser that provides ongoing
services to the registrant that were not approved pursuant to (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principle accountant's independence.

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.

None

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 half-year that materially affected, or are reasonably likely to
materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1) Code of Ethics as Exhibit 99.CODE ETH

(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

(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 II

By: /s/Hal Liebes

Hal Liebes

President

Date: December 17, 2015

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: December 17, 2015

By: /s/Michael D. Martins

Michael D. Martins

Treasurer

Date: December 17, 2015

Alger Funds Ii N-CSRCertified annual shareholder report (management investment company)