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, 2016

ITEM 1. REPORTS TO STOCKHOLDERS.

Table of Contents

The Alger Funds II


Shareholders’ Letter (Unaudited)	1
Fund Highlights (Unaudited)	13
Portfolio Summary (Unaudited)	23
Schedules of Investments	24
Statements of Assets and Liabilities	54
Statements of Operations	60
Statements of Changes in Net Assets	63
Financial Highlights	68
Notes to Financial Statements	89
Report of Independent Registered Public Accounting Firm	122
Additional Information (Unaudited)	123

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Shareholders' Letter (Unaudited) October 31, 2016

Dear Shareholders,

Dangers of Bond-Like Equities Materialize
In our last shareholder letter, we discussed the risks of investors stampeding into bond-like
equities, with the trend being particularly strong in the U.S. In that letter, we noted that
bond-like equities had outperformed the overall S&P 500 Index but urged investors to avoid
joining the stampede because the category of equities is highly vulnerable to rising interest
rates and other risks. Due to the strong results of bond-like stocks in the months leading
up to July, U.S. equities as measured by the S&P 500 generated a 4.51% return for the one-
year reporting period ended October 31, 2016, but the inherent risks that we had identified
started to surface in a spectacular fashion.

During the first eight months of the reporting period, the bond-like Telecommunications
sector within the S&P 500 led with a 25.4% return. With a massive reversal, it became the
worst performing sector with a -11.7% return for the last four months of the reporting
period. Utilities and Consumer Staples, which were the second- and third-best performing
sectors during the first eight months of the reporting period with double-digit gains, were
the fourth- and fifth-worst performers with negative returns during the final four months
of the reporting period. Growth sectors, meanwhile, led with Information Technology
generating a 12.8% return during the last four months of the reporting period.

Equities Advance
The strong market leadership of bond-like stocks early in the reporting period created
challenging conditions for firms such as Alger that invest in companies with attractive
fundamentals and strong potential for generating earnings growth. Despite those challenges,
we continued with our more than 50-year tradition of employing extensive bottom-up
research to identify and invest in well managed companies with strong fundamentals,
including the potential for generating earnings growth. Since our founding in 1964, we have
believed that those types of companies offer the greatest potential for creating wealth for
our clients.

Emerging Markets Shine
Looking beyond the U.S., emerging markets were a bright spot during the reporting period
with strengthening commodity prices, attractive valuations, and improving economic
data helping the MSCI Emerging Markets Index rally 9.67%. Within the index, Brazil,
Hungary, Indonesia, Peru, Russia, Egypt, Taiwan, and Chile were among the strongest
performing countries. Mexico, Turkey, Qatar, Poland, and Greece, however, substantially
underperformed the overall return of the benchmark.

Our View of Risks and Bond-Like Equities
The rotation out of bond-like equities in the U.S. was no surprise at Alger. Indeed, in our last
letter, we identified the following risks associated with bond-like equities:

• Bond-like equities are highly interest-rate sensitive so investors who stam-
peded into the category of stocks faced substantial interest rate risk. With
record-low interest rates, the risk of rising rates was considerable.

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• Due to the stampede, valuations of sectors with companies that offer stable
earnings and high dividend yields such as Consumer Staples were historically
high, especially relative to growth sectors. At of the start of the 12-month
reporting period, for example, the P/E ratios for Consumer Staples and Util-
ities sectors traded at 20% and 12% premiums respectively, to their 20-year
medians while Information Technology and Health Care traded with P/E
ratios that were 7% and 3%, respectively, below their 20-year medians. The
large disparity in valuations implied that growth stocks were more attractive
than bond-like equities.
• Investors focused on bond-like equities could miss the potentially strong re-
turns that result when leading companies with attractive fundamentals gener-
ate earnings growth. Importantly, massive forms of innovation, such as inter-
net-related technologies and health care advancements, are creating attractive
opportunities for companies to grow their earnings and reward investors.

Global Economy Takes a Toll on Bond-Like Equities
Various developments during the one-year reporting period fueled fears of rising interest
rates and inflation, which in turn sparked the dramatic investor rotation out of bond-like
sectors and into growth sectors. During the past few years, low commodity prices have
tempered inflation expectations, but that trend ended abruptly during the reporting period.
During the first 10 months of 2016, the multi-year decline in commodity prices reversed with
the Bloomberg Commodity Index gaining 8.3%. In the past, expectations that moderating
economic growth in China would limit commodity price increases also helped to temper
investors’ inflation expectations. During the reporting period, however, a more favorable
view of China emerged. Year-over-year industrial production in October of 2015 grew only
5.6% but from November of 2015 through September of this year, production growth
trended above 6%. In the U.S., inflation concerns were also stoked by a strengthening job
market creating wage pressures, with compensation increasing 2.8% during the 12-month
period ended October 31. Inflation expectations as measured by comparing the nominal yield
of a 10-year Treasury to its inflation protected counterpart also grew during the reporting
period with the spread increasing from 1.59% to 1.73%. Finally, anticipation that the Federal
Reserve would continue normalizing monetary policy supported expectations that interest
rates will rise. We believe that investors’ rotation into growth equities in response to those
developments was rational. Leading growth companies have potential for growing their
earnings, which can help offset the adverse impact of inflation and rising interest rates on
corporate fundamentals. Bond-like sectors such as Utilities, however, have less potential for
generating earnings growth, so they are susceptible to interest rate increases.

The Value of a Long-Term Perspective and Fundamental Research
Emotions can easily distort individuals’ views of reality, especially when it comes to
investing. We believe that the incorrect view that bond-like equities are the only way to
generate yield during times of low interest rates is an example of a distorted and potentially
costly perspective. This distorted view caused many investors to overlook growth stocks’
return of capital, which can be measured by total yield. Total yield is dividend yield plus
the share repurchase yield. As an example, at the end of June, the Information Technology
and Consumer Discretionary sectors offered total yields of 6.5% and 6.0%, respectively,
compared to the 4.7% total yield of Telecommunication Services and the 4.3% total yield
of Utilities.
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In addition, performance of sectors is driven by three primary factors: dividends, earnings
growth, and changes to P/E ratios. During the reporting period, those three factors pointed
to growth sectors having strong potential for outperforming bond-like sectors. Data as of
the end of June illustrate this point, with consensus expectations having called for the bond-
like Utilities and Consumer Staples sectors to generate earnings growth per share of 4%
and 7%, respectively, over the next three to five years. For this analysis, we reduced earnings
growth expectations by 20% simply to have a conservative outlook. For the Utilities and
Consumer Staples sectors, the dividend yield for the prior 12 months was 4% and 3%.
For both sectors, a reversion to the 20-year P/E median would imply a decline of 5%.
The potential changes in earnings and P/E ratios combined with dividend payments would
result in hypothetical returns of 3% for Utilities and 5% for Consumer Staples.

After factoring in the previously mentioned 20% reduction, growth sectors such as
Information Technology, Health Care, and Consumer Discretionary could potentially have
earnings growth ranging from 8% to 14%. As of June 30, those sectors offered 2% dividend
yields for the trailing 12 months. In the event of a reversion to 20-year medians, the sectors’
P/E ratios would increase 2%, which would result in hypothetical returns ranging from 12%
to 18%.

The U.S. Presidential Election
Emotions also played a role when investors weighed in on the U.S. presidential campaign
and the subsequent victory of Donald Trump. The election was a highly emotional event
for many Americans, but it is important to remember that corporate fundamentals and
economic cycles ultimately drive market performance. With that in mind, we urge investors
to focus on corporate fundamentals and avoid making large bets on the potential policies
of a new president.

As Jason Zweig of the Wall Street Journal points out, investors have a poor track record
of making bets on presidents. Regulations from President Barack Obama were expected to
hurt the performance of Health Care stocks, but the sector has outperformed the overall
market during his presidency. Increased military spending under President George W. Bush,
furthermore, had a counterintuitive impact on defense stocks, with the category of equities
declining in 2001 and 2002.

Reasons for Optimism
Rather than chasing dividend yields or making bets on potential policies of President-elect
Trump, we believe equity investors should assess the ongoing U.S. economic recovery, strong
corporate fundamentals, and the rapid pace of innovation. Those factors, we maintain, are
likely to support growth equities in the foreseeable future. The economy has benefited from
an expanding labor market that has created 15.5 million jobs since February of 2010. With
a strengthening job market, compensation as measured by hourly wages increased 2.8%
during the 12-month reporting period. Personal finances are also encouraging, with the
Household Debt Service Ratio, which is the ratio of total required household debt payments
to total disposable income, having improved substantially. After hitting a high of 13.20% in
the fourth quarter of 2007, the ratio has declined to an attractive level of only 9.98% as of
the second quarter of this year, according to the Federal Reserve.

We believe corporate fundamentals are also encouraging. According to FactSet Research
Systems, S&P 500 companies (ex-financials) held $1.45 trillion in cash at the end of the

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second quarter of this year. Despite declining 0.2% from the prior quarter, it was still the
second-largest amount in at least 10 years.

As mentioned earlier, corporations are using their large cash positions to reward shareholders
with dividends and aggressive share repurchase programs. In the second quarter, S&P 500
companies (ex-financials) paid a total of $176.6 billion in dividends and share repurchases,
according to FactSet. It was a 1.7% year-over-year decrease, but the 12-month period ended
June 30 was strong with buybacks and dividends growing 6.1% and 6.6%, respectively,
compared to the 12-month period ended in June of 2015.

We maintain that investors should also assess the attractive valuations of growth sectors
relative to bond-like sectors. As of the end of the reporting period, the Information
Technology sector within the S&P 500 had a P/E ratio that was 2% below its 20-year
median. Health Care and Consumer Discretionary sectors had P/E ratios that were 15%
and 4%, respectively, below their 20-year medians. The P/E ratios for Consumer Staples and
Utilities, however, were at 21% and 20% premiums to their 20-year medians.

We also believe that innovation that can help drive corporate earnings growth is strong
across the globe, thanks in large part to internet related technologies and advancements
in health care. At the same time, the adoption of new technologies by consumers and
corporations is accelerating. The internet, smartphones, ebooks, and social media illustrate
this trend, with each form of technology reaching 50% market penetration in a fraction of
the time that was required by washing machines, landline telephones, and dishwashers. At
the same time, medical innovation in orthopedic, cardiac, and cancer is occurring rapidly.

Our optimism also extends to emerging markets. We believe that the estimated 4.9% 2016
earnings growth rate for MSCI Emerging Markets Index constituents, which is higher than
for both the MSCI Europe, Australasia, and Far East Index (EAFE) and the S&P 500 Index,
is attractive. Emerging markets are also attractive when considering that the asset class is
trading at a P/E discount of 22% to developed markets. We continue to believe that a 10%
to 12% discount is appropriate.

Conclusion
We urge investors to embrace an investment strategy that employs intensive research to
identify companies with strong fundamentals and potential for earnings growth. At the
same time, investors should maintain a long-term perspective and avoid the risky behavior
of focusing on bond-like equities. At Alger, we will continue to focus on our fundamental
research and disciplined investment approach as we seek to generate attractive returns for
our valued clients.

Portfolio Matters
Alger Spectra Fund
The Alger Spectra Fund returned -0.36% for the fiscal year ended October 31, 2016,
compared to the 2.08% return of the Russell 3000 Growth Index.

During the reporting period, the largest portfolio sector weightings were Information
Technology and Consumer Discretionary. The largest sector overweight was Information
Technology and the largest sector underweight was Consumer Staples. The Information
Technology and Consumer Discretionary sectors provided the largest contributions to

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relative performance while Health Care and Industrials were among sectors that detracted
from results.

For the reporting period, the Fund’s average portfolio allocation to long positions, which
was increased by leverage, was 99.69% of assets. In aggregate, long positions contributed to
absolute performance. The Fund’s average allocation to short positions was -2.86%. Short
positions detracted from results.

Among the most important contributors to performance were Facebook, Inc., Cl. A;
Microsoft Corp.; Alphabet, Inc., Cl. C; and UnitedHealth Group, Inc. Shares of online
retailer and cloud-services provider Amazon.com, Inc. also contributed to performance.
During the second quarter of 2016, the company’s management announced strong year-
over-year results for the first quarter and provided encouraging guidance, a result of Amazon.
com’s attractive product pricing and the convenience of online shopping. Amazon’s cloud-
computing services have also generated strong results.

Conversely, detracting from overall results were Allergan PLC.; Vertex Pharmaceuticals,
Inc.; LinkedIn Corp., Cl. A; and Signet Jewelers Ltd. Shares of Norwegian Cruise Line
Holdings Ltd. also detracted from performance. During the second quarter of 2016, shares
of Norwegian Cruise Line Holdings underperformed after the company’s management
issued guidance that fell below expectations. Management also said it expects to face higher
costs.

Among short positions, Exxon Mobil Corp. contributed to performance. Exxon Mobil
is a global energy producer and marketer. Persistent shortfalls in unit volume production
throughout the year due to issues ranging from Canadian wildfires to Nigerian production
disruptions resulting from local conflicts caused the price of Exxon Mobil shares to
decline. Additionally, the company appeared to have moved beyond peak profitability in its
downstream and refining operations. Short selling entails selling borrowed stock with the
goal of buying the stock in the future at a lower price and then returning the security to the
lender. As the price of Exxon Mobil shares declined, the portfolio’s cost of purchasing the
stock declined, resulting in the position supporting performance.

A short position on LED lighting company Acuity Brands, Inc., however, detracted from
results. The LED industry has been experiencing weakening revenues, but Acuity has been
outperforming its overall sector. As the price of Acuity Brands stock climbed, the cost of
replacing the security increased and hurt portfolio performance.

Alger Green Fund
The Alger Green Fund returned -1.03% for the fiscal year ended October 31, 2016,
compared to the 2.08% return of the Russell 3000 Growth Index.

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.

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

Among the most important contributors to performance were Amazon.com, Inc.; Tetra
Tech, Inc.; Waste Management, Inc.; and Xylem, Inc. Shares of social network operator
Facebook, Inc., Cl. A also contributed to performance. The shares performed strongly
in response to the company continuing to take advertising market share from print and
television media. We believe investors have also been encouraged by the growth of
Instagram, which is the company’s video- and photo-sharing network.

Conversely, detracting from performance were Chipotle Mexican Grill, Inc.; Acuity Brands,
Inc.; NIKE, Inc., Cl. B; and First Solar, Inc. Shares of global pharmaceuticals company
Allergan PLC. also detracted from results. Performance of Allergan shares weakened in
response to concerns that a new U.S. president may support regulations that could block
acquisition activity. An internal investigation at Valeant Pharmaceuticals International, Inc.,
furthermore, cast a shadow over the pharmaceutical industry.

Alger Mid Cap Focus Fund
The Alger Mid Cap Focus Fund returned -9.26% for the fiscal year ended October 31, 2016,
compared to the 0.40% return of the Russell Midcap Growth Index. Prior to December
30, 2015, the Fund followed a different investment strategy under the name “Alger Analyst
Fund” and was managed by a different portfolio manager.

During the reporting period, the largest portfolio sector weightings were Consumer
Discretionary and Information Technology. The largest sector overweight was Information
Technology and the largest sector underweight was Consumer Staples. The Real Estate and
Utilities sectors had neutral impacts on relative performance while Information Technology
and Financials were among sectors that detracted from results.

Among the most important contributors to performance were FEI Company; Jarden Corp.;
Microsemi Corp.; and TransDigm Group, Inc. Shares of social network operator Facebook,
Inc., Cl. A also contributed to performance. The performance of shares of Facebook
benefited from developments identified in the Alger Green Fund discussion.

Conversely, Vertex Pharmaceuticals, Inc.; Weatherford International PLC.; Signet Jewelers
Ltd.; and Pacira Pharmaceuticals, Inc. were the largest detractors from performance. Shares
of Norwegian Cruise Line Holdings Ltd. also detracted from results. Performance of shares
of Norwegian Cruise Line Holdings weakened in response to developments identified in the
Alger Spectra Fund discussion.

Alger Dynamic Opportunities Fund
The Alger Dynamic Opportunities Fund returned -4.22% for the fiscal year ended October
31, 2016, compared to the 4.51% return of the Fund’s benchmark, the S&P 500 Index.

The hedged equity Fund seeks long-term capital appreciation, downside protection, and
lower volatility by primarily investing in long and short exposures in equity securities of U.S.

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companies. The Fund seeks to generate market-like equity returns over a full U.S. market
cycle. During shorter-term periods, the Fund may underperform when U.S. equity markets
generate strong gains, perform in line or modestly outperform when markets are flat, and
should outperform when markets decline.

During the reporting period, the Fund’s long exposure was 76.98% of assets. Long positions,
in aggregate, underperformed the Fund’s benchmark and detracted from performance.
The average exposure to short positions was -19.70% of assets. Short positions trailed the
performance of the Fund’s benchmark and detracted from results. Net exposure, which is
the difference between long and short exposure, was 57.28%.

Based on the net exposure of long and short positions, the largest sector weightings were
Information Technology and Health Care. Information Technology was the only sector
overweight and the largest underweight was Financials. Information Technology contributed
to relative performance while other sectors detracted from results.

GrubHub, Inc.; Amazon.com, Inc.; Microsoft Corp.; and Broadcom Ltd. were among
top detractors from performance. Shares of social network operator Facebook, Inc., Cl.
A also contributed to results. The performance of shares of Facebook benefited from
developments identified in the Alger Green Fund discussion.

LendingClub Corp.; Lions Gate Entertainment Corp.; Vertex Pharmaceuticals, Inc.; and
Allergan PLC. were among top detractors from performance. Shares of Norwegian Cruise
Line Holdings Ltd. also detracted from results. Performance of shares of Norwegian Cruise
Line Holdings weakened in response to developments identified in the Alger Spectra Fund
discussion.

Among short positions, Community Health Systems, Inc. contributed to performance. The
company is one of the largest operators of non-urban hospitals in the U.S. It preannounced
disappointing earnings that resulted from rural markets having the industry’s worst unit
volume growth. In addition, issues with the prior acquisition of hospital operator Health
Management Associates hurt results. Short selling entails selling borrowed stock with the
goal of buying the stock in the future at a lower price and then returning the security to
the lender. As the price of Community Health Systems declined, the portfolio’s cost of
purchasing the stock declined, resulting in the position supporting performance.

Short position Acuity Brands, Inc., however, detracted from results. Its performance was
driven by developments identified in the Alger Spectra Fund discussion.

Alger Emerging Markets Fund
The Alger Emerging Markets Fund returned 6.41% for the fiscal year ended October 31,
2016, compared to the 9.67% return of its benchmark, the MSCI Emerging Markets Index.

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

- 7 -

Strong stock selection in Taiwan, India, and Columbia resulted in those countries providing
the greatest contributions to relative performance while Brazil, South Africa, and Russia
were among countries that detracted from results.

Among the most important contributors to performance were Tencent Holdings Ltd.;
Samsung Electronics Co., Ltd.; BB Seguridade Participacoes SA; and Gourmet Master Co.
Ltd. Shares of Alibaba Group Holdings Ltd. also contributed to performance. The Alibaba
Group runs the two largest online marketplaces in China, Taobao, a C2C marketplace,
and T-Mall, a B2C marketplace. It announced that it generated better-than-expected
revenues, margins, and gross merchandise value for the second quarter of 2016. (Gross
merchandise value is the value of all goods sold on Alibaba’s commerce platforms). It also
said sales through mobile devices accounted for 75% of Alibaba’s gross merchandise value.
Management also expressed optimism regarding its cloud services offering, which has
potential to break even in 2017.

Conversely, detracting from performance were Voltas Ltd.; China Life Insurance Co. Ltd.
Cl. H; Vipshop Holdings Ltd.; and Luxoft Holding, Inc., Cl. A. Shares of PAX Global
Technology Limited also detracted from performance. The company is the world’s third-
largest maker of electronic fund transfer point-of-sale terminals and is the market leader in
mainland China. Earlier in 2016, the company provided 2016 guidance that was weaker than
expected and investors have remained concerned about potential weakness in the company’s
domestic market and in other countries. During the first half of the year, expiring tax credits
hurt the company’s earnings, but the company still increased its payout ratio, which is the
relationship of dividends to earnings.

As active, bottom-up, fundamental investors, we will continue to focus on generating
attractive returns for our clients with our disciplined growth equity strategies. I thank you
for putting your trust in Alger.

I thank you for putting your trust in Alger.

Respectfully submitted,

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

FactSet Research Systems represented 0.00% of Alger assets under management as of
October 31, 2016.

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

This report and the financial statements contained herein are submitted for the general
information of shareholders of the funds. This report is not authorized for distribution to
prospective investors in a fund unless proceeded or accompanied by an effective prospectus
for the fund. Fund performance returns represent the 12-month period return of Class

- 8 -

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
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, 2016. 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
- 9 -

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 the cost of borrowing
money to leverage will exceed the returns for securities purchased or that the securities
purchased may actually go down in value; thus, 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 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:

• S&P 500 index: An index of large company stocks considered representative
of the U.S. stock market.
• The Bloomberg Commodity Index reflects the performance of 20 commod-
ities, which are weighted to account for economic significance and market
liquidity.
• MSCI Emerging Markets Index: A free float-adjusted market capitalization
index designed to measure equity market performance in the global emerging
markets.
• The EAFE Index measures the performance of major international equity
markets as represented by 21 major MSCI indexes from Europe, Australia
and Southeast Asia.
• Russell 3000 Growth Index: An index of common stocks designed to track
performance of companies with greater than average growth orientation in
general.
• Russell Midcap Growth Index: An index of common stocks designed to
track performance of medium-capitalization companies with greater than

- 10 -

average growth orientation.
• FactSet Research Systems, Inc. is a multinational financial data and software
company.

- 11 -


	FUND PERFORMANCE AS OF 9/30/16 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
	1 YEAR		5 YEARS		10 YEARS
Alger Spectra Class A	4.97	%	15.39	%	10.85	%
Alger Spectra Class C^*	8.94	%	15.76	%	10.65	%
Alger Spectra Class I^†	10.73	%	16.65	%	11.53	%

	1 YEAR		5 YEARS		Since 12/29/2010
Alger Spectra Class Z	11.11	%	16.98	%	12.66	%

* 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.
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 9/30/16 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
	1		5		10		SINCE
	YEAR		YEARS		YEARS		INCEPTION
Alger Green Class A (Inception 12/4/00)	3.68	%	11.89	%	5.80	%	1.61	%
Alger Green Class C (Inception 9/24/08)^*	7.75	%	12.19	%	n/a		6.74	%
Alger Green Class I (Inception 9/24/08)^†	9.43	%	13.11	%	n/a		7.55	%
Alger Mid Cap Focus Class A (Inception 3/30/07)	(1.46	)%	11.26	%	n/a		4.67	%
Alger Mid Cap Focus Class C (Inception 9/24/08)^*	2.35	%	11.78	%	n/a		4.54	%
Alger Mid Cap Focus Class I (Inception 9/24/08)^†	3.95	%	12.47	%	n/a		5.25	%
Alger Dynamic Opportunities Class A (Inception 11/2/09)	(3.16	)%	5.82	%	n/a		4.40	%
Alger Dynamic Opportunities Class C (Inception
12/29/10)^‡	0.41	%	6.16	%	n/a		4.42	%
Alger Dynamic Opportunities Class Z (Inception 12/29/10)	2.49	%	7.26	%	n/a		4.89	%
Alger Emerging Markets Class A (Inception 12/29/10)	9.40	%	3.65	%	n/a		(2.09	)%
Alger Emerging Markets Class C (Inception 12/29/10)	13.64	%	3.99	%	n/a		(1.98	)%
Alger Emerging Markets Class I (Inception 12/29/10)	15.48	%	4.75	%	n/a		(1.26	)%
Alger Emerging Markets Class Y (Inception 5/9/16)	n/a		n/a		n/a		15.11	%
Alger Emerging Markets Class Y-2 (Inception 5/9/16)	n/a		n/a		n/a		15.11	%
Alger Emerging Markets Class Z (Inception 2/28/14)	15.83	%	n/a		n/a		(0.08	)%

* 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, 2016 (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, 2016. 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 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/31/1974
Class A (Inception 7/28/69)	(5.58	)%	12.21	%	9.97	%	15.45	%
Class C (Inception 9/24/08)^*	(2.03	)%	12.58	%	9.76	%	14.74	%
Class I (Inception 9/24/08)^†	(0.35	)%	13.45	%	10.64	%	15.61	%
Russell 3000 Growth Index	2.08	%	13.47	%	8.11	%	n/a


							Since
	1 YEAR		5 YEARS		10 YEARS		12/29/2010
Class Z (Inception 12/29/10)	(0.06	)%	13.77	%	n/a		11.96	%
Russell 3000 Growth Index	2.08	%	13.47	%	n/a		11.85	%

- 13 -

ALGER SPECTRA FUND
Fund Highlights Through October 31, 2016 (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, 2016 (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, 2016. 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 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		12/4/2000
Class A (Inception 12/4/00)	(6.23	)%	9.32	%	5.02	%	1.45	%
Russell 3000 Growth Index	2.08	%	13.47	%	8.11	%	4.18	%


PERFORMANCE COMPARISON AS OF 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
							Since
	1 YEAR		5 YEARS		10 YEARS		9/24/2008
Class C (Inception 9/24/08)^*	(2.74	)%	9.58	%	n/a		6.33	%
Class I (Inception 9/24/08)^†	(1.03	)%	10.47	%	n/a		7.15	%
Russell 3000 Growth Index	2.08	%	13.47	%	n/a		10.96	%

- 15 -

ALGER GREEN FUND
Fund Highlights Through October 31, 2016 (Unaudited) (Continued)


				Since
	1 YEAR	5 YEARS	10 YEARS	10/14/2016
Class Z (Inception 10/14/16)	n/a	n/a	n/a	(0.65	)%
Russell 3000 Growth Index	n/a	n/a	n/a	(0.73	)%

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 MID CAP FOCUS FUND
Fund Highlights Through October 31, 2016 (Unaudited)

The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Mid Cap
Focus 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 Mid Cap Focus Fund
Class A, through October 31, 2016. Prior to December 30, 2015, the Fund followed different investment strategies
under the name “Alger Analyst Fund” and was managed by a different portfolio manager. Accordingly, performance
prior to that date does not reflect the Fund’s current investment strategies and investment personnel. The figures for
the Alger Mid Cap Focus Fund Class A and the Russell Midcap Growth Index include reinvestment of dividends.
Performance for the Alger Mid Cap Focus 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 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
						Since
	1 YEAR		5 YEARS		10 YEARS	3/30/2007
Class A (Inception 3/30/07)	(14.03	)%	7.40	%	n/a	4.13	%
Class C (Inception 9/24/08)^*	(10.65	)%	7.90	%	n/a	4.00	%
Class I (Inception 9/24/08)^†	(9.29	)%	8.56	%	n/a	4.70	%
Russell Midcap Growth Index	0.40	%	12.02	%	n/a	7.23	%


						Since
	1 YEAR		5 YEARS		10 YEARS	10/14/2016
Class Z (Inception 10/14/16)	n/a		n/a		n/a	(1.07	)%
Russell Midcap Growth Index	n/a		n/a		n/a	(1.12	)%

ALGER MID CAP FOCUS FUND
Fund Highlights Through October 31, 2016 (Unaudited) (Continued)

* 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.

- 18 -

ALGER DYNAMIC OPPORTUNITIES FUND
Fund Highlights Through October 31, 2016 (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, 2016. 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 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
						Since
	1 YEAR		5 YEARS		10 YEARS	11/2/2009
Class A (Inception 11/2/09)	(9.24	)%	4.04	%	n/a	3.80	%
Class C (Inception 12/29/10)^*	(5.92	)%	4.38	%	n/a	3.80	%
S&P 500 Index	4.51	%	13.57	%	n/a	13.09	%
Blended S&P 500 / LIBOR	2.62	%	6.92	%	n/a	6.75	%

						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class Z (Inception 12/29/10)	(3.92	)%	5.46	%	n/a	4.16	%
S&P 500 Index	4.51	%	13.57	%	n/a	11.73	%
Blended S&P 500 / LIBOR	2.62	%	6.92	%	n/a	6.07	%

ALGER DYNAMIC OPPORTUNITIES FUND
Fund Highlights Through October 31, 2016 (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.

- 20 -

ALGER EMERGING MARKETS FUND
Fund Highlights Through October 31, 2016 (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, 2016. 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 10/31/16
AVERAGE ANNUAL TOTAL RETURNS
						Since
	1 YEAR		5 YEARS		10 YEARS	12/29/2010
Class A (Inception 12/29/10)	0.87	%	1.07	%	n/a	(2.21	)%
Class C (Inception 12/29/10)	4.54	%	1.40	%	n/a	(2.12	)%
Class I (Inception 12/29/10)	6.39	%	2.16	%	n/a	(1.39	)%
MSCI Emerging Markets Index	9.67	%	0.90	%	n/a	(1.06	)%

	1 YEAR		5 YEARS		10 YEARS	Since 5/9/2016
Class Y (Inception 5/9/16)	n/a		n/a		n/a	14.11	%
Class Y-2 (Inception 5/9/16)	n/a		n/a		n/a	14.11	%
MSCI Emerging Markets Index	n/a		n/a		n/a	14.99	%

- 21 -

ALGER EMERGING MARKETS FUND
Fund Highlights Through October 31, 2016 (Unaudited) (Continued)


					Since
	1 YEAR		5 YEARS	10 YEARS	2/28/2014
Class Z (Inception 2/28/14)	6.78	%	n/a	n/a	(0.41	)%
MSCI Emerging Markets Index	9.67	%	n/a	n/a	0.45	%

- 22 -

PORTFOLIO SUMMARY†
October 31, 2016 (Unaudited)



					Alger Mid Cap Focus		Alger Dynamic
SECTORS	Alger Spectra Fund^*		Alger Green Fund		Fund		Opportunities Fund^*
Consumer Discretionary	16.0	%	23.5	%	19.0	%	6.8	%
Consumer Staples	7.2		6.0		2.8		4.9
Energy	1.3		0.0		0.0		0.3
Financials	2.9		2.1		5.0		39.5
Health Care	15.3		10.0		16.8		11.9
Industrials	7.1		17.3		17.4		1.1
Information Technology	43.1		33.5		20.1		24.4
Market Indices	0.0		0.0		0.0		(1.2	)
Materials	1.9		1.2		5.3		(0.3	)
Real Estate	0.8		0.0		3.3		3.5
Telecommunication Services	0.4		1.5		0.0		0.0
Utilities	0.0		1.5		0.0		(0.3	)
Short-Term Investments and
Net Other Assets	4.0		3.4		10.3		9.4
	100.0	%	100.0	%	100.0	%	100.0	%


	Alger Emerging Markets
COUNTRY	Fund
Bermuda	0.7	%
Brazil	8.3
Cayman Islands	4.3
Chile	1.0
China	20.8
Colombia	0.9
Germany	0.7
Hong Kong	2.1
India	10.4
Indonesia	3.4
Luxembourg	1.9
Macau	0.4
Malaysia	1.2
Mexico	4.5
Peru	0.6
Philippines	1.2
Russia	2.5
South Africa	4.0
South Korea	14.0
Switzerland	1.4
Taiwan	9.0
Thailand	1.9
Turkey	0.4
United Kingdom	0.8
United States	0.1
Cash and Net Other Assets	3.5
	100.0	%

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

- 23 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—96.0%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc.*^,@,(a)	178,292	$		–
AEROSPACE & DEFENSE—0.9%
Lockheed Martin Corp.	167,901			41,367,448
TransDigm Group, Inc.	21,000			5,721,660
			47,089,108
AIRLINES—0.4%
Southwest Airlines Co.	536,775		21,497,839
ALTERNATIVE CARRIERS—0.4%
Level 3 Communications, Inc.*	389,641		21,878,342
APPAREL ACCESSORIES & LUXURY GOODS—1.1%
Hanesbrands, Inc.	370,236			9,515,065
PVH Corp.	292,683			31,311,227
Under Armour, Inc., Cl. A*	502,914			15,640,626
			56,466,918
APPAREL RETAIL—0.3%
The TJX Cos., Inc.	181,535		13,388,206
APPLICATION SOFTWARE—2.3%
Adobe Systems, Inc.*	475,686			51,141,002
salesforce.com, Inc.*	903,525			67,908,939
			119,049,941
AUTO PARTS & EQUIPMENT—1.1%
Delphi Automotive PLC.	411,445			26,772,726
Johnson Controls International PLC.	693,431			27,959,138
			54,731,864
BIOTECHNOLOGY—4.3%
ACADIA Pharmaceuticals, Inc.*	531,997			12,400,850
Biogen, Inc.*⁺	116,893			32,751,081
BioMarin Pharmaceutical, Inc.*	467,794			37,666,773
Celgene Corp.*	722,175			73,791,842
Incyte Corp.*	391,388			34,039,014
Vertex Pharmaceuticals, Inc.*⁺	437,398			33,181,012
			223,830,572
BREWERS—1.7%
Molson Coors Brewing Co., Cl. B	823,257		85,462,309
BROADCASTING—1.3%
CBS Corp., Cl. B	1,142,811		64,705,959
BUILDING PRODUCTS—0.1%
Fortune Brands Home & Security, Inc.	104,040			5,683,705
CABLE & SATELLITE—2.3%
Comcast Corporation, Cl. A	1,895,366		117,171,526
CASINOS & GAMING—0.1%
Red Rock Resorts, Inc., Cl. A	293,848			6,435,271
COMMUNICATIONS EQUIPMENT—0.1%
Palo Alto Networks, Inc.*	37,616			5,786,469
DATA PROCESSING & OUTSOURCED SERVICES—3.8%
Sabre Corp.	400,012			10,332,310
Visa, Inc., Cl. A⁺	2,252,749		185,874,320
			196,206,630

- 24 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
DRUG RETAIL—0.3%
CVS Caremark Corp.	200,643	$		16,874,076
ELECTRICAL COMPONENTS & EQUIPMENT—0.2%
Eaton Corp., PLC.	149,777			9,551,279
FINANCIAL EXCHANGES & DATA—0.5%
IntercontinentalExchange Group, Inc.	56,918			15,390,058
S&P Global, Inc.	79,040			9,631,024
			25,021,082
FOOD DISTRIBUTORS—0.2%
US Foods Holding Corp.*	493,600			11,155,360
GENERAL MERCHANDISE STORES—0.2%
Dollar Tree, Inc.*	110,453			8,344,724
HEALTH CARE EQUIPMENT—2.7%
Boston Scientific Corp.*	1,261,610			27,755,420
DexCom, Inc.*	553,862			43,334,163
Edwards Lifesciences Corp.*	412,200			39,249,684
Medtronic PLC.	353,311			28,978,568
			139,317,835
HEALTH CARE FACILITIES—0.6%
Amsurg Corp.*	335,952			20,073,132
HCA Holdings, Inc.*	120,151			9,195,156
			29,268,288
HOME ENTERTAINMENT SOFTWARE—2.4%
Activision Blizzard, Inc.	953,830			41,176,841
Electronic Arts, Inc.*	1,036,794			81,409,065
			122,585,906
HOME IMPROVEMENT RETAIL—1.6%
The Home Depot, Inc.	695,719		84,884,675
HOTELS RESORTS & CRUISE LINES—0.4%
Ctrip.com International Ltd.#*	376,405			16,618,281
Royal Caribbean Cruises Ltd.	72,051			5,538,560
			22,156,841
HOUSEWARES & SPECIALTIES—1.8%
Newell Brands, Inc.	1,894,132		90,956,219
HYPERMARKETS & SUPER CENTERS—0.4%
Costco Wholesale Corp.	142,923		21,134,024
INDUSTRIAL CONGLOMERATES—4.0%
3M Co.	17,500			2,892,750
Danaher Corp.	217,809			17,108,897
Honeywell International, Inc.⁺	1,727,514		189,473,736
			209,475,383
INDUSTRIAL GASES—0.8%
Air Products & Chemicals, Inc.	323,154			43,115,207
INTERNET RETAIL—5.5%
Amazon.com, Inc.*⁺	358,579		283,212,866
NetFlix, Inc.*	25,280			3,156,713
			286,369,579
INTERNET SOFTWARE & SERVICES—16.6%
Alibaba Group Holding Ltd.#*	449,432			45,702,740

- 25 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
INTERNET SOFTWARE & SERVICES—(CONT.)
Alphabet, Inc., Cl. C*⁺	548,016	$		429,940,473
comScore, Inc.*	218,740			6,297,524
eBay, Inc.*	640,329			18,255,780
Facebook, Inc., Cl. A*⁺	2,013,718		263,776,921
GrubHub, Inc.*	244,712			9,325,974
Palantir Technologies, Inc., Cl. A*^,@	348,292			2,664,434
Shopify, Inc., Cl. A*	154,494			6,403,776
Stamps.com, Inc.*	247,245			24,118,750
Yahoo! Inc.*	1,266,262			52,613,186
			859,099,558
INVESTMENT BANKING & BROKERAGE—1.1%
Morgan Stanley	1,258,023			42,231,832
The Goldman Sachs Group, Inc.	86,700			15,453,408
			57,685,240
IT CONSULTING & OTHER SERVICES—0.3%
Cognizant Technology Solutions Corp., Cl. A*	284,071		14,587,046
LIFE SCIENCES TOOLS & SERVICES—1.5%
Thermo Fisher Scientific, Inc.+	527,160		77,508,335
MANAGED HEALTH CARE—3.1%
Aetna, Inc.	66,726			7,163,036
Centene Corp.*	460,482			28,770,916
Humana, Inc.	57,713			9,899,511
UnitedHealth Group, Inc.	813,555		114,979,728
			160,813,191
METAL & GLASS CONTAINERS—0.3%
Ball Corp.	182,852		14,092,404
MOVIES & ENTERTAINMENT—0.4%
Time Warner, Inc.	246,420		21,928,916
OIL & GAS EQUIPMENT & SERVICES—0.6%
Halliburton Company	618,600		28,455,600
OIL & GAS EXPLORATION & PRODUCTION—1.3%
Anadarko Petroleum Corp.	635,529			37,775,844
EOG Resources, Inc.	120,174			10,866,133
Pioneer Natural Resources Co.	92,170			16,500,273
			65,142,250
PACKAGED FOODS & MEATS—0.8%
Pinnacle Foods, Inc.	352,738			18,137,788
The Kraft Heinz Co.	114,657			10,198,740
The WhiteWave Foods Co.*	254,800			13,884,052
			42,220,580
PHARMACEUTICALS—3.1%
Allergan PLC.*⁺	533,388		111,446,089
Eli Lilly & Co.	666,362			49,204,170
			160,650,259
RAILROADS—0.5%
Union Pacific Corp.	280,499		24,734,402
RESEARCH & CONSULTING SERVICES—0.3%
Verisk Analytics, Inc., Cl. A*	213,500		17,410,925

- 26 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
RESTAURANTS—0.3%
Starbucks Corp.⁺	242,313	$		12,859,551
SEMICONDUCTOR EQUIPMENT—0.2%
ASML Holding NV#	101,791		10,751,165
SEMICONDUCTORS—5.0%
Broadcom Ltd.	710,499		120,983,770
Cavium Networks, Inc.*	127,348			7,188,794
Microsemi Corp.*	478,275			20,149,726
NXP Semiconductors NV*	648,838			64,883,800
QUALCOMM, Inc.	510,961			35,113,240
Skyworks Solutions, Inc.	136,286			10,485,845
			258,805,175
SOFT DRINKS—1.8%
PepsiCo, Inc.⁺	874,069		93,700,197
SPECIALIZED CONSUMER SERVICES—0.3%
ServiceMaster Global Holdings, Inc.*	477,073		17,074,443
SPECIALTY CHEMICALS—0.8%
The Sherwin-Williams Co.	73,492			17,995,251
WR Grace & Co.	369,996			24,774,932
			42,770,183
SPECIALTY STORES—0.1%
Dick's Sporting Goods, Inc.	121,800			6,778,170
SYSTEMS SOFTWARE—6.4%
Microsoft Corp.⁺	4,790,749		287,061,680
Red Hat, Inc.*	73,141			5,664,771
ServiceNow, Inc.*	427,251			37,559,635
TubeMogul, Inc.*	368,953			2,693,357
			332,979,443
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.2%
Apple, Inc.⁺	2,680,243		304,314,790
Western Digital Corp.	297,382			17,379,004
			321,693,794
TOBACCO—2.0%
Altria Group, Inc.	600,579			39,710,284
Philip Morris International, Inc.	666,725			64,298,959
			104,009,243
TRADING COMPANIES & DISTRIBUTORS—1.0%
HD Supply Holdings, Inc.*	1,595,287		52,644,471
TRUCKING—0.2%
Old Dominion Freight Line, Inc.*	126,500			9,447,020
TOTAL COMMON STOCKS
(Cost $4,321,258,855)			4,967,436,698
PREFERRED STOCKS—0.7%	SHARES			VALUE
ADVERTISING—0.1%
Choicestream, Inc., Series A*^,@,(a)	1,537,428			–
Choicestream, Inc., Series B*^,@,(a)	3,765,639			2,221,727
				2,221,727
BIOTECHNOLOGY—0.2%
Prosetta Biosciences, Inc., Series D*^,@,(a)	2,912,012			11,764,528

- 27 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2016 (Continued)


PREFERRED STOCKS—(CONT.)	SHARES				VALUE
INTERNET SOFTWARE & SERVICES—0.2%
Palantir Technologies, Inc., Cl. B*^,@	1,420,438			$	10,866,351
Palantir Technologies, Inc., Cl. D*^,@	185,062				1,415,724
				12,282,075
PHARMACEUTICALS—0.2%
Intarcia Therapeutics, Inc., Series DD*^,@	171,099				9,759,487
TOTAL PREFERRED STOCKS
(Cost $32,736,484)					36,027,817
WARRANTS—0.0%	SHARES				VALUE
ADVERTISING—0.0%
Choicestream, Inc., 6/22/26^@,(a)	838,287				821,521
(Cost $837,448)					821,521
MASTER LIMITED PARTNERSHIP—0.8%	SHARES				VALUE
ASSET MANAGEMENT & CUSTODY BANKS—0.8%
The Blackstone Group LP.	1,619,596			40,538,488
(Cost $49,808,910)					40,538,488
REAL ESTATE INVESTMENT TRUST—1.4%	SHARES				VALUE
MORTGAGE—0.4%
Blackstone Mortgage Trust, Inc., Cl. A	649,189			19,605,508
RESIDENTIAL—0.2%
American Campus Communities, Inc.	191,311				9,969,216
SPECIALIZED—0.8%
Crown Castle International Corp.	495,925			45,124,216
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $68,584,321)					74,698,940
	PRINCIPAL
CORPORATE BONDS—0.0%	AMOUNT				VALUE
ADVERTISING—0.0%
Choicestream, Inc., 11.00%, 8/05/18^@,(a)	838,287				838,287
(Cost $101,789)					838,287
SPECIAL PURPOSE VEHICLE—0.1%	SHARES				VALUE
CONSUMER FINANCE—0.1%
JS Kred SPV I, LLC.^@	2,715,111				2,821,272
(Cost $2,715,111)					2,821,272
Total Investments
(Cost $4,476,042,918)^(b)	99.0	%		5,123,183,023
Other Assets in Excess of Liabilities	1.0	%		53,176,729
NET ASSETS	100.0	%	$	5,176,359,752

- 28 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments October 31, 2016 (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 Note 11.
^(b)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $4,555,976,392, amounted to $567,206,631 which consisted of aggregate gross unrealized appreciation of
$746,313,463 and aggregate gross unrealized depreciation of $179,106,832.
* 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	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Choicestream, Inc.	03/14/14	$	51,705	0.00	%	$	0	0.00	%
Choicestream, Inc., 11.00%,
8/05/18	08/04/16		836	0.00	%		838,287	0.02	%
Choicestream, Inc., 6/22/26	08/04/16		837,448	0.02	%		821,521	0.02	%
Choicestream, Inc., Cl. A	12/17/13		1,229,452	0.03	%		0	0.00	%
Choicestream, Inc., Cl. B	07/10/14		2,259,383	0.05	%		2,221,727	0.04	%
Intarcia Therapeutics, Inc., Series
DD	03/27/14		5,541,897	0.14	%		9,759,487	0.19	%
JS Kred SPV I, LLC.	06/26/15		2,715,111	0.05	%		2,821,272	0.05	%
Palantir Technologies, Inc., Cl. A	10/07/14		2,266,336	0.05	%		2,664,434	0.05	%
Palantir Technologies, Inc., Cl. B	10/07/14		9,379,767	0.22	%		10,866,351	0.21	%
Palantir Technologies, Inc., Cl. D	10/14/14		1,221,931	0.03	%		1,415,724	0.03	%
Prosetta Biosciences, Inc., Series D	02/06/15		13,104,054	0.28	%		11,764,528	0.23	%
Total						$	43,173,331	0.84	%

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

Industry classifications are unaudited.
See Notes to Financial Statements.

- 29 -

THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments- Securities Sold Short October 31, 2016


COMMON STOCKS—-3.0%	SHARES				VALUE
AIRLINES—-0.2%
JetBlue Airways Corp.*	(474,100	)		$	(8,287,268	)
APPLICATION SOFTWARE—-0.2%
Citrix Systems, Inc.*	(123,900	)		(10,506,720		)
ASSET MANAGEMENT & CUSTODY BANKS—-0.2%
Ameriprise Financial, Inc.	(33,900	)			(2,996,421	)
T. Rowe Price Group, Inc.	(43,600	)			(2,790,836	)
					(5,787,257	)
AUTO PARTS & EQUIPMENT—-0.3%
Gentex Corp.	(928,000	)		(15,692,480		)
BROADCASTING—-0.4%
Scripps Networks Interactive, Inc., Cl. A	(332,151	)		(21,377,238		)
CASINOS & GAMING—-0.2%
Wynn Resorts Ltd.	(112,322	)		(10,620,045		)
DATA PROCESSING & OUTSOURCED SERVICES—-0.2%
Automatic Data Processing, Inc.	(139,494	)		(12,144,348		)
HEALTH CARE SERVICES—-0.4%
Express Scripts, Inc.*	(276,095	)		(18,608,803		)
INTEGRATED OIL & GAS—-0.6%
Exxon Mobil Corp.	(394,205	)		(32,845,161		)
TRADING COMPANIES & DISTRIBUTORS—-0.3%
WW Grainger, Inc.	(82,879	)		(17,248,777		)
TOTAL COMMON STOCKS
(Proceeds $158,466,339)			$	(153,118,097		)
Total (Proceeds $158,466,339)			$	(153,118,097		)
* Non-income producing security.

Industry classifications are unaudited.
See Notes to Financial Statements.

- 30 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—96.5%	SHARES		VALUE
ADVERTISING—0.0%
Choicestream, Inc.*^,@,(a)	3,619	$	–
AEROSPACE & DEFENSE—1.5%
Hexcel Corp.	21,135		961,431
AIR FREIGHT & LOGISTICS—1.4%
United Parcel Service, Inc., Cl. B	8,430		908,417
APPAREL ACCESSORIES & LUXURY GOODS—1.4%
PVH Corp.	8,526		912,112
APPLICATION SOFTWARE—2.5%
salesforce.com, Inc.*	9,937		746,865
SAP SE#	10,185		894,650
			1,641,515
AUTO PARTS & EQUIPMENT—1.7%
Delphi Automotive PLC.	6,275		408,314
Johnson Controls International PLC.	17,441		703,221
			1,111,535
AUTOMOBILE MANUFACTURERS—1.8%
Tesla Motors, Inc.*	6,011		1,188,555
BUILDING PRODUCTS—1.0%
Allegion PLC.	10,022		639,805
COMMUNICATIONS EQUIPMENT—1.3%
Cisco Systems, Inc.	26,965		827,286
CONSTRUCTION & ENGINEERING—0.6%
AECOM*	14,585		406,192
CONSUMER ELECTRONICS—1.0%
Harman International Industries, Inc.	7,921		631,383
DATA PROCESSING & OUTSOURCED SERVICES—3.1%
Alliance Data Systems Corp.	2,650		541,845
Visa, Inc., Cl. A	17,990		1,484,355
			2,026,200
DISTRIBUTORS—1.9%
LKQ Corp.*	37,920		1,224,058
DRUG RETAIL—1.2%
CVS Caremark Corp.	9,436		793,568
ELECTRIC UTILITIES—1.5%
Duke Energy Corp.	6,586		527,012
Fortis, Inc.	13,351		438,580
			965,592
ELECTRICAL COMPONENTS & EQUIPMENT—0.5%
Acuity Brands, Inc.	1,340		299,584
ELECTRONIC EQUIPMENT MANUFACTURERS—1.0%
Itron, Inc.*	12,547		676,283

- 31 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
ENVIRONMENTAL & FACILITIES SERVICES—5.1%
Clean Harbors, Inc.*	9,980	$	472,254
Covanta Holding Corp.	32,575		488,625
Tetra Tech, Inc.	28,516		1,096,440
Waste Management, Inc.	20,020		1,314,513
			3,371,832
FOOTWEAR—1.9%
NIKE, Inc., Cl. B	24,769		1,242,908
HEALTH CARE FACILITIES—1.1%
Amsurg Corp.*	5,725		342,069
HCA Holdings, Inc.*	4,550		348,211
			690,280
HOME ENTERTAINMENT SOFTWARE—0.8%
Electronic Arts, Inc.*	6,660		522,943
HOME IMPROVEMENT RETAIL—2.1%
The Home Depot, Inc.	11,022		1,344,794
HOTELS RESORTS & CRUISE LINES—0.8%
Royal Caribbean Cruises Ltd.	6,870		528,097
HOUSEHOLD PRODUCTS—1.5%
The Procter & Gamble Co.	11,674		1,013,303
HOUSEWARES & SPECIALTIES—0.9%
Newell Brands, Inc.	12,937		621,235
HYPERMARKETS & SUPER CENTERS—0.4%
Wal-Mart Stores, Inc.	3,925		274,829
INDUSTRIAL CONGLOMERATES—4.8%
3M Co.	3,237		535,076
General Electric Co.	29,717		864,765
Honeywell International, Inc.	15,680		1,719,782
			3,119,623
INDUSTRIAL MACHINERY—2.4%
Woodward Governor Co.	10,925		644,356
Xylem, Inc.	19,905		962,009
			1,606,365
INTEGRATED TELECOMMUNICATION SERVICES—1.5%
Verizon Communications, Inc.	20,915		1,006,012
INTERNET RETAIL—5.2%
Amazon.com, Inc.*	4,340		3,427,819
INTERNET SOFTWARE & SERVICES—12.0%
Alphabet, Inc., Cl. A*	2,185		1,769,631
Alphabet, Inc., Cl. C*	3,066		2,405,400
eBay, Inc.*	14,945		426,082
Facebook, Inc., Cl. A*	24,885		3,259,686
			7,860,799
INVESTMENT BANKING & BROKERAGE—1.0%
Morgan Stanley	20,225		678,953

- 32 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
LIFE & HEALTH INSURANCE—1.1%
Lincoln National Corp.	14,780	$	725,550
MANAGED HEALTH CARE—2.6%
Aetna, Inc.	10,210		1,096,043
Humana, Inc.	3,515		602,928
			1,698,971
MOVIES & ENTERTAINMENT—2.1%
The Walt Disney Co.	14,595		1,352,811
PACKAGED FOODS & MEATS—0.8%
The WhiteWave Foods Co.*	9,430		513,841
PHARMACEUTICALS—6.3%
Allergan PLC.*	3,625		757,408
Bristol-Myers Squibb Co.	19,715		1,003,691
Johnson & Johnson	14,270		1,655,177
Merck & Co., Inc.	12,320		723,430
			4,139,706
RESTAURANTS—2.6%
Chipotle Mexican Grill, Inc.*	1,635		589,843
Starbucks Corp.	21,500		1,141,005
			1,730,848
SEMICONDUCTORS—2.4%
Broadcom Ltd.	4,774		812,917
Intel Corp.	22,085		770,104
			1,583,021
SOFT DRINKS—2.1%
The Coca-Cola Co.	31,748		1,346,115
SPECIALTY CHEMICALS—1.2%
Chemtura Corp.*	23,550		772,440
SYSTEMS SOFTWARE—4.3%
Microsoft Corp.	46,834		2,806,293
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.1%
Apple, Inc.	34,909		3,963,568
TOTAL COMMON STOCKS
(Cost $44,345,694)			63,156,472
PREFERRED STOCKS—0.1%	SHARES		VALUE
ADVERTISING—0.1%
Choicestream, Inc., Series A*^,@,(a)	31,215		–
Choicestream, Inc., Series B*^,@,(a)	69,819		41,193
			41,193
TOTAL PREFERRED STOCKS
(Cost $66,854)			41,193

- 33 -

THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments October 31, 2016 (Continued)


WARRANTS—0.0%	SHARES			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 6/22/26^@,(a)	10,518		$	10,308
(Cost $10,508)				10,308
	PRINCIPAL
CORPORATE BONDS—0.0%	AMOUNT			VALUE
ADVERTISING—0.0%
Choicestream, Inc., 11.00%, 8/05/18^@,(a)	10,518			10,518
(Cost $1,277)				10,518
Total Investments
(Cost $44,424,333)^(b)	96.6	%		63,218,491
Other Assets in Excess of Liabilities	3.4	%		2,243,851
NET ASSETS	100.0	%	$	65,462,342

# 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 Note 11.
^(b)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax purposes
of $44,435,544, amounted to $18,782,947 which consisted of aggregate gross unrealized appreciation of
$20,242,158 and aggregate gross unrealized depreciation of $1,459,211.
* 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	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Choicestream, Inc.	03/14/14	$	1,049	0.00	%	$	0	0.00	%
Choicestream, Inc., 11.00%,
8/05/18	08/04/16		1,277	0.00	%		10,518	0.02	%
Choicestream, Inc., 6/22/26	08/04/16		10,508	0.02	%		10,308	0.01	%
Choicestream, Inc., Cl. A	12/17/13		24,962	0.03	%		0	0.00	%
Choicestream, Inc., Cl. B	07/10/14		41,892	0.05	%		41,193	0.06	%
Total						$	62,019	0.09	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 34 -

THE ALGER FUNDS II | ALGER MID CAP FOCUS FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—82.9%	SHARES		VALUE
AEROSPACE & DEFENSE—3.5%
Hexcel Corp.	3,085	$	140,337
TransDigm Group, Inc.	534		145,493
			285,830
AIRLINES—1.5%
Southwest Airlines Co.	3,075		123,154
APPAREL ACCESSORIES & LUXURY GOODS—6.3%
Hanesbrands, Inc.	6,960		178,872
lululemon athletica, Inc.*	1,537		87,993
PVH Corp.	1,598		170,954
Under Armour, Inc., Cl. A*	2,319		72,121
			509,940
AUTO PARTS & EQUIPMENT—4.8%
Delphi Automotive PLC.	1,545		100,533
Johnson Controls International PLC.	4,985		200,996
WABCO Holdings, Inc.*	872		85,857
			387,386
BIOTECHNOLOGY—1.6%
Vertex Pharmaceuticals, Inc.*	1,685		127,824
CONSTRUCTION & FARM MACHINERY & HEAVY
TRUCKS—2.0%
Wabtec Corp.	2,116		163,588
DATA PROCESSING & OUTSOURCED SERVICES—5.8%
MAXIMUS, Inc.	3,397		176,848
Sabre Corp.	7,851		202,792
Vantiv, Inc., CL. A*	1,548		90,341
			469,981
ELECTRICAL COMPONENTS & EQUIPMENT—1.4%
Acuity Brands, Inc.	174		38,901
AMETEK, Inc.	1,751		77,219
			116,120
ELECTRONIC COMPONENTS—1.4%
Dolby Laboratories Inc., Cl. A	2,348		111,741
FINANCIAL EXCHANGES & DATA—1.5%
MarketAxess Holdings, Inc.	807		121,663
FOOD DISTRIBUTORS—1.9%
Performance Food Group Co.*	6,543		157,032
GENERAL MERCHANDISE STORES—2.0%
Dollar Tree, Inc.*	2,195		165,832
HEALTH CARE EQUIPMENT—5.5%
DexCom, Inc.*	1,596		124,871
Edwards Lifesciences Corp.*	912		86,841
STERIS PLC.	3,455		230,863
			442,575
HEALTH CARE FACILITIES—5.4%
Amsurg Corp.*	3,585		214,204

- 35 -

THE ALGER FUNDS II | ALGER MID CAP FOCUS FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
HEALTH CARE FACILITIES—(CONT.)
VCA Antech, Inc.*	3,662	$	225,066
			439,270
HEALTH CARE TECHNOLOGY—2.5%
Medidata Solutions, Inc.*	4,194		201,270
HOUSEWARES & SPECIALTIES—3.2%
Newell Brands, Inc.	5,465		262,429
HUMAN RESOURCE & EMPLOYMENT SERVICES—1.5%
WageWorks, Inc.*	2,006		118,254
INTERNET SOFTWARE & SERVICES—2.3%
Facebook, Inc., Cl. A*	1,419		185,875
LEISURE PRODUCTS—1.9%
Coach, Inc.	4,236		152,030
MANAGED HEALTH CARE—1.8%
Centene Corp.*	2,376		148,453
METAL & GLASS CONTAINERS—1.1%
Ball Corp.	1,101		84,854
PACKAGED FOODS & MEATS—0.9%
ConAgra Foods, Inc.	1,591		76,654
RESEARCH & CONSULTING SERVICES—2.5%
Verisk Analytics, Inc., Cl. A*	2,442		199,145
SEMICONDUCTORS—6.8%
Cavium Networks, Inc.*	2,017		113,860
Microsemi Corp.*	5,589		235,464
Skyworks Solutions, Inc.	2,604		200,352
			549,676
SPECIALIZED CONSUMER SERVICES—1.9%
ServiceMaster Global Holdings, Inc.*	4,311		154,291
SPECIALTY CHEMICALS—4.2%
Axalta Coating Systems Ltd.*	4,957		124,520
The Sherwin-Williams Co.	354		86,680
WR Grace & Co.	1,922		128,697
			339,897
SYSTEMS SOFTWARE—3.8%
ServiceNow, Inc.*	2,671		234,808
TubeMogul, Inc.*	10,424		76,095
			310,903
TRADING COMPANIES & DISTRIBUTORS—3.1%
HD Supply Holdings, Inc.*	7,697		254,001
TRUCKING—0.8%
Old Dominion Freight Line, Inc.*	833		62,209
TOTAL COMMON STOCKS
(Cost $6,753,261)			6,721,877

- 36 -

THE ALGER FUNDS II | ALGER MID CAP FOCUS FUND
Schedule of Investments October 31, 2016 (Continued)


MASTER LIMITED PARTNERSHIP—1.3%	SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.3%
The Blackstone Group LP.	4,113		$	102,948
(Cost $132,024)				102,948
REAL ESTATE INVESTMENT TRUST—5.5%	SHARES			VALUE
MORTGAGE—2.2%
Blackstone Mortgage Trust, Inc., Cl. A	5,893			177,969
SPECIALIZED—3.3%
Crown Castle International Corp.	2,949			268,329
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $415,776)				446,298
Total Investments
(Cost $7,301,061)^(a)	89.7	%		7,271,123
Other Assets in Excess of Liabilities	10.3	%		836,256
NET ASSETS	100.0	%	$	8,107,379

^(a)At October 31, 2016, the net unrealized depreciation on investments, based on cost for federal income tax purposes
of $7,321,355, amounted to $50,232 which consisted of aggregate gross unrealized appreciation of $437,717
and aggregate gross unrealized depreciation of $487,949.
* Non-income producing security.

Industry classifications are unaudited.
See Notes to Financial Statements.

- 37 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—69.7%	SHARES		VALUE
APPAREL ACCESSORIES & LUXURY GOODS—0.8%
Ralph Lauren Corp.⁺	6,935	$	680,323
APPLICATION SOFTWARE—2.1%
Blackbaud, Inc.	7,180		440,852
Guidewire Software, Inc.*	6,498		373,310
Mobileye NV*	10,184		378,641
salesforce.com, Inc.*	6,940		521,611
			1,714,414
ASSET MANAGEMENT & CUSTODY BANKS—1.8%
Affiliated Managers Group, Inc.*+	4,580		607,583
WisdomTree Investments, Inc.⁺	101,719		872,749
			1,480,332
BIOTECHNOLOGY—3.7%
ACADIA Pharmaceuticals, Inc.*	24,499		571,072
Alexion Pharmaceuticals, Inc.*	3,504		457,272
BioMarin Pharmaceutical, Inc.*	8,662		697,464
Celgene Corp.*	5,866		599,388
Incyte Corp.*	4,792		416,760
Vertex Pharmaceuticals, Inc.*⁺	4,153		315,047
			3,057,003
BREWERS—1.6%
Molson Coors Brewing Co., Cl. B⁺	12,364		1,283,507
BROADCASTING—1.1%
CBS Corp., Cl. B⁺	16,580		938,760
CABLE & SATELLITE—2.3%
Comcast Corporation, Cl. A⁺	30,177		1,865,542
COMMUNICATIONS EQUIPMENT—0.8%
Finisar Corp.*	19,945		546,094
Quantenna Communications, Inc.*	7,443		111,496
			657,590
CONSUMER FINANCE—1.3%
LendingClub Corp.*⁺	210,419		1,037,366
DATA PROCESSING & OUTSOURCED SERVICES—3.5%
Euronet Worldwide, Inc.*⁺	8,035		639,184
Visa, Inc., Cl. A⁺	26,925		2,221,582
			2,860,766
ELECTRONIC MANUFACTURING SERVICES—1.0%
Trimble, Inc.*	30,038		830,250
FINANCIAL EXCHANGES & DATA—0.5%
CME Group, Inc.	4,180		418,418
GENERAL MERCHANDISE STORES—0.4%
Dollar Tree, Inc.*	4,737		357,880
HEALTH CARE EQUIPMENT—3.0%
Abaxis, Inc.	8,935		426,557
Cantel Medical Corp.	13,319		948,712

- 38 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
HEALTH CARE EQUIPMENT—(CONT.)
DexCom, Inc.*	7,807	$	610,820
Edwards Lifesciences Corp.*	5,374		511,712
			2,497,801
HEALTH CARE SUPPLIES—1.4%
Endologix, Inc.*	36,095		377,554
Neogen Corp.*	15,135		797,463
			1,175,017
HEALTH CARE TECHNOLOGY—0.9%
Medidata Solutions, Inc.*	15,945		765,200
HOME ENTERTAINMENT SOFTWARE—1.0%
Activision Blizzard, Inc.	10,663		460,322
Electronic Arts, Inc.*	5,020		394,170
			854,492
HOTELS RESORTS & CRUISE LINES—0.5%
Norwegian Cruise Line Holdings Ltd.*⁺	11,141		433,051
HOUSEWARES & SPECIALTIES—1.1%
Newell Brands, Inc.	17,904		859,750
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.5%
On Assignment, Inc.*	12,080		415,673
INDUSTRIAL CONGLOMERATES—1.3%
Honeywell International, Inc.⁺	9,355		1,026,056
INTERNET RETAIL—2.7%
Amazon.com, Inc.*⁺	2,791		2,204,388
INTERNET SOFTWARE & SERVICES—10.7%
Alibaba Group Holding Ltd.#*	8,055		819,113
Alphabet, Inc., Cl. C*⁺	3,983		3,124,823
eBay, Inc.*	13,134		374,450
Facebook, Inc., Cl. A*⁺	10,317		1,351,424
GrubHub, Inc.*	22,530		858,618
Match Group, Inc.*	30,528		551,336
Palantir Technologies, Inc., Cl. A*^,@	6,606		50,536
SPS Commerce, Inc.*	5,309		331,175
Tencent Holdings Ltd.	13,665		362,152
Yahoo! Inc.*⁺	22,174		921,330
			8,744,957
INVESTMENT BANKING & BROKERAGE—0.5%
Morgan Stanley	12,495		419,457
LIFE SCIENCES TOOLS & SERVICES—3.8%
Bio-Techne Corp.	19,913		2,070,753
Thermo Fisher Scientific, Inc.+	6,860		1,008,626
			3,079,379
MANAGED HEALTH CARE—1.0%
UnitedHealth Group, Inc.⁺	5,865		828,900

- 39 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
MOVIES & ENTERTAINMENT—1.0%
Lions Gate Entertainment Corp.	39,088	$	795,832
OIL & GAS EXPLORATION & PRODUCTION—1.2%
Anadarko Petroleum Corp.	8,275		491,866
EOG Resources, Inc.	5,319		480,944
			972,810
PACKAGED FOODS & MEATS—0.5%
Hain Celestial Group, Inc.*	11,980		435,713
PHARMACEUTICALS—1.2%
Allergan PLC.*	4,835		1,010,225
RESEARCH & CONSULTING SERVICES—0.5%
Verisk Analytics, Inc., Cl. A*	5,239		427,240
RESTAURANTS—1.8%
Shake Shack, Inc., Cl. A*⁺	26,402		841,960
Wingstop, Inc.⁺	23,080		617,621
			1,459,581
SEMICONDUCTORS—3.8%
Broadcom Ltd.⁺	6,042		1,028,832
Microsemi Corp.*⁺	11,265		474,594
NXP Semiconductors NV*⁺	7,621		762,100
Skyworks Solutions, Inc.	11,300		869,422
			3,134,948
SOFT DRINKS—2.0%
PepsiCo, Inc.⁺	15,074		1,615,933
SYSTEMS SOFTWARE—3.5%
Microsoft Corp.⁺	29,283		1,754,637
ServiceNow, Inc.*	6,653		584,865
TubeMogul, Inc.*⁺	69,788		509,453
			2,848,955
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—3.1%
Apple, Inc.⁺	22,589		2,564,755
TOBACCO—1.0%
Philip Morris International, Inc.⁺	8,344		804,695
TRADING COMPANIES & DISTRIBUTORS—0.8%
HD Supply Holdings, Inc.*⁺	19,290		636,570
TOTAL COMMON STOCKS
(Cost $53,335,498)			57,193,529
PREFERRED STOCKS—0.9%	SHARES		VALUE
BIOTECHNOLOGY—0.4%
Prosetta Biosciences, Inc., Series D*^,@,(a)	41,418		167,328
Tolero Pharmaceuticals, Inc., Series B*^,@,(a)	106,120		136,895
			304,223
INTERNET SOFTWARE & SERVICES—0.3%
Palantir Technologies, Inc., Cl. B*^,@	26,941		206,099

- 40 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2016 (Continued)


PREFERRED STOCKS—(CONT.)		SHARES			VALUE
INTERNET SOFTWARE & SERVICES—(CONT.)
Palantir Technologies, Inc., Cl. D*^,@		3,510	$		26,851
					232,950
PHARMACEUTICALS—0.2%
Intarcia Therapeutics, Inc., Series DD*^,@		2,964			169,067
TOTAL PREFERRED STOCKS
(Cost $803,533)					706,240
RIGHTS—0.0%		SHARES			VALUE
BIOTECHNOLOGY—0.0%
Adolor Corp., CPR, 12/31/2049*^,@,(b)		49,870			–
(Cost $–)					–
MASTER LIMITED PARTNERSHIP—1.2%		SHARES			VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.2%
The Blackstone Group LP.⁺		41,209			1,031,461
(Cost $1,094,061)					1,031,461
REAL ESTATE INVESTMENT TRUST—4.1%		SHARES			VALUE
MORTGAGE—0.6%
Blackstone Mortgage Trust, Inc., Cl. A		16,021			483,834
SPECIALIZED—3.5%
Crown Castle International Corp.⁺		19,399			1,765,115
Lamar Advertising Co., Cl. A		17,401			1,104,094
					2,869,209
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $3,289,402)					3,353,043
PURCHASED OPTIONS—0.1%	CONTRACTS				VALUE
CALL OPTIONS—0.0%
Twitter, Inc. /December/ 23*		469			13,601
(Cost $90,029)					13,601
PUT OPTIONS—0.1%
S&P 500/ December/ 2075		20			62,000
(Cost $61,446)					62,000
TOTAL PURCHASED OPTIONS
(Cost $151,475)					75,601
U.S. GOVERNMENT AGENCY OBLIGATIONS (EXCLUDING		PRINCIPAL
MORTGAGE-BACKED)—36.5%		AMOUNT			VALUE

United States Treasury Bill, 0.00%, 11/17/16		30,000,000			29,996,464
(Cost $29,996,464)				29,996,464

- 41 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments October 31, 2016 (Continued)


SPECIAL PURPOSE VEHICLE—0.2%	SHARES			VALUE
CONSUMER FINANCE—0.2%
JS Kred SPV I, LLC.^@	159,212		$	165,437
(Cost $159,212)				165,437
Total Investments
(Cost $88,829,645)^(c)	112.7	%		92,521,775
Liabilities in Excess of Other Assets	(12.7	)%		(10,423,808	)
NET ASSETS	100.0	%	$	82,097,967

# 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 Note 11.
^(b)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.
^(c)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax
purposes of $91,372,496, amounted to $1,149,279 which consisted of aggregate gross unrealized appreciation of
$7,047,280 and aggregate gross unrealized depreciation of $5,898,001.
* 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	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
Adolor Corp., CPR ,
12/31/2049	10/24/11	$	0	0.00	%	$	0	0.00	%
Intarcia Therapeutics, Inc., Series
DD	03/27/14		96,004	0.14	%		169,067	0.21	%
JS Kred SPV I, LLC.	06/26/15		159,212	0.15	%		165,437	0.20	%
Palantir Technologies, Inc., Cl. A	10/07/14		42,985	0.05	%		50,536	0.06	%
Palantir Technologies, Inc., Cl. B	10/07/14		177,903	0.22	%		206,099	0.25	%
Palantir Technologies, Inc., Cl. D	10/14/14		23,176	0.03	%		26,851	0.03	%
Prosetta Biosciences, Inc., Series D	02/06/15		186,381	0.25	%		167,328	0.20	%
Tolero Pharmaceuticals, Inc.	08/01/14		154,147	0.20	%		65,929	0.08	%
Tolero Pharmaceuticals, Inc.	10/31/14		165,922	0.20	%		70,966	0.09	%
Total						$	922,213	1.12	%

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

Industry classifications are unaudited.
See Notes to Financial Statements.

- 42 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments- Securities Sold Short October 31, 2016


COMMON STOCKS—-21.3%	SHARES			VALUE
AGRICULTURAL & FARM MACHINERY—-0.4%
Deere & Co.	(3,360	)	$	(296,688	)
AIR FREIGHT & LOGISTICS—-0.2%
Expeditors International of Washington, Inc.	(3,304	)		(170,057	)
AIRLINES—-0.2%
JetBlue Airways Corp.*	(10,355	)		(181,005	)
APPAREL ACCESSORIES & LUXURY GOODS—-0.2%
Carter's, Inc.	(1,439	)		(124,243	)
APPAREL RETAIL—-0.2%
The Children's Place Retail Stores, Inc.	(2,239	)		(170,052	)
APPLICATION SOFTWARE—-1.0%
Citrix Systems, Inc.*	(5,620	)		(476,576	)
Workday, Inc., Cl. A*	(4,221	)		(365,876	)
				(842,452	)
ASSET MANAGEMENT & CUSTODY BANKS—-0.6%
Ameriprise Financial, Inc.	(2,570	)		(227,162	)
T. Rowe Price Group, Inc.	(3,930	)		(251,559	)
				(478,721	)
AUTO PARTS & EQUIPMENT—-0.4%
Gentex Corp.	(20,875	)		(352,996	)
BIOTECHNOLOGY—-0.8%
Alkermes PLC.*	(5,090	)		(256,587	)
Genomic Health, Inc.*	(7,605	)		(226,705	)
Seattle Genetics, Inc.*	(2,491	)		(128,785	)
				(612,077	)
BROADCASTING—-0.3%
Scripps Networks Interactive, Inc., Cl. A	(4,314	)		(277,649	)
BROADCASTING & CABLE TV—-0.2%
Pandora Media, Inc.*	(12,842	)		(145,500	)
BUILDING PRODUCTS—-0.3%
Lennox International, Inc.	(1,745	)		(254,578	)
CABLE & SATELLITE—-0.3%
AMC Networks, Inc.*	(4,443	)		(217,396	)
CASINOS & GAMING—-0.6%
Wynn Resorts Ltd.	(5,165	)		(488,351	)
COMPUTER & ELECTRONICS RETAIL—-0.5%
Best Buy Co., Inc.	(10,661	)		(414,820	)
CONSUMER FINANCE—-0.3%
Capital One Financial Corp.	(3,525	)		(260,991	)
DATA PROCESSING & OUTSOURCED SERVICES—-0.7%
Automatic Data Processing, Inc.	(6,400	)		(557,184	)
FOOD RETAIL—-0.2%
Whole Foods Market, Inc.	(6,615	)		(187,138	)
GAS UTILITIES—-0.3%
National Fuel Gas Co.	(5,310	)		(278,138	)

- 43 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments- Securities Sold Short October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
HEALTH CARE DISTRIBUTORS—-0.3%
Patterson Cos., Inc.	(6,565	)	$	(280,391	)
HEALTH CARE EQUIPMENT—-0.7%
Abbott Laboratories	(3,970	)		(155,783	)
Globus Medical, Inc., Cl. A*	(8,000	)		(177,040	)
ResMed, Inc.	(3,920	)		(234,298	)
				(567,121	)
HEALTH CARE FACILITIES—-0.4%
Healthsouth Corp.	(7,220	)		(289,883	)
HEALTH CARE SERVICES—-0.5%
Express Scripts, Inc.*	(5,616	)		(378,518	)
HEALTH CARE SUPPLIES—-0.2%
The Cooper Cos., Inc.	(945	)		(166,358	)
HEALTH CARE TECHNOLOGY—-0.3%
Cerner Corp.*	(3,583	)		(209,892	)
HOTELS RESORTS & CRUISE LINES—-0.3%
Hilton Worldwide Holdings, Inc.	(9,168	)		(207,197	)
HOUSEWARES & SPECIALTIES—-0.1%
Tupperware Brands Corp.	(1,969	)		(117,195	)
INSURANCE BROKERS—-0.6%
Aon PLC.	(4,620	)		(512,035	)
INTEGRATED OIL & GAS—-0.5%
Exxon Mobil Corp.	(3,120	)		(259,958	)
Statoil ASA#	(11,545	)		(187,491	)
				(447,449	)
INTERNET SOFTWARE & SERVICES—-0.8%
Cimpress NV*	(3,135	)		(260,989	)
VeriSign, Inc.*	(2,220	)		(186,524	)
WebMD Health Corp.*	(4,150	)		(203,890	)
				(651,403	)
IT CONSULTING & OTHER SERVICES—-0.9%
Accenture PLC., Cl. A	(3,880	)		(451,011	)
Gartner, Inc.*	(2,975	)		(255,969	)
				(706,980	)
LEISURE PRODUCTS—-0.1%
Polaris Industries, Inc.	(1,435	)		(109,935	)
LIFE SCIENCES TOOLS & SERVICES—-0.2%
Quintiles Transnational Holdings, Inc.*	(1,722	)		(123,536	)
MANAGED HEALTH CARE—-0.3%
Anthem, Inc.	(2,320	)		(282,715	)
MARKET INDICES—-1.3%
iShares Russell 2000 Growth	(3,115	)		(435,695	)
Powershares QQQ Trust Series 1	(5,535	)		(647,540	)
				(1,083,235	)

- 44 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments- Securities Sold Short October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
MOTORCYCLE MANUFACTURERS—-0.2%
Harley-Davidson, Inc.	(3,427	)	$	(195,408	)
OIL & GAS REFINING & MARKETING—-0.4%
Phillips 66	(3,505	)		(284,431	)
REGIONAL BANKS—-0.8%
Cullen/Frost Bankers, Inc.	(5,599	)		(425,468	)
Hancock Holding Co.	(7,140	)		(239,547	)
				(665,015	)
RESTAURANTS—-1.2%
Brinker International, Inc.	(3,280	)		(161,507	)
Chuy's Holdings, Inc.*	(6,420	)		(182,328	)
Restaurant Brands International, Inc.	(5,305	)		(235,913	)
Texas Roadhouse, Inc.	(5,455	)		(221,037	)
Zoe's Kitchen, Inc.*	(8,195	)		(185,781	)
				(986,566	)
SEMICONDUCTORS—-0.7%
Analog Devices, Inc.	(2,760	)		(176,916	)
Qorvo, Inc.*	(2,670	)		(148,586	)
Taiwan Semiconductor Manufacturing Co., Ltd.#	(7,465	)		(232,161	)
				(557,663	)
SPECIALTY CHEMICALS—-0.3%
The Valspar Corp.	(2,615	)		(260,454	)
SPECIALTY STORES—-0.3%
Sally Beauty Holdings, Inc.*	(8,870	)		(230,088	)
SYSTEMS SOFTWARE—-1.1%
Check Point Software Technologies Ltd.*	(6,900	)		(583,464	)
Oracle Corp.	(4,705	)		(180,766	)
Tableau Software, Inc., Cl. A*	(3,211	)		(154,289	)
				(918,519	)
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—-0.2%
Electronics For Imaging, Inc.*	(4,404	)		(187,302	)
TRADING COMPANIES & DISTRIBUTORS—-0.5%
WW Grainger, Inc.	(1,925	)		(400,631	)
TRUCKING—-0.4%
Ryder System, Inc.	(5,080	)		(352,501	)
TOTAL COMMON STOCKS
(Proceeds $17,152,655)			$	(17,482,457	)
REAL ESTATE INVESTMENT TRUST—-0.8%	SHARES			VALUE
OFFICE REITS—-0.3%
Boston Properties, Inc.	(2,040	)		(245,779	)
RETAIL REITS—-0.3%
Simon Property Group, Inc.	(1,255	)		(233,380	)
SPECIALIZED REITS—-0.2%
Host Hotels & Resorts, Inc.	(13,449	)		(208,190	)
TOTAL REAL ESTATE INVESTMENT TRUST

- 45 -

THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUND
Schedule of Investments- Securities Sold Short October 31, 2016 (Continued)


REAL ESTATE INVESTMENT TRUST—(CONT.)	SHARES		VALUE
SPECIALIZED REITS—(CONT.)
(Proceeds $694,544)		$	(687,349	)
Total (Proceeds $17,847,199)		$	(18,169,806	)

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

- 46 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2016


COMMON STOCKS—95.4%	SHARES		VALUE
BRAZIL—7.3%
DEPARTMENT STORES—0.9%
Lojas Renner SA*	42,154	$	356,426
DIVERSIFIED BANKS—1.0%
Banco Bradesco SA*	38,819		406,516
DIVERSIFIED REAL ESTATE ACTIVITIES—1.1%
BR Malls Participacoes SA*	113,328		453,561
DRUG RETAIL—0.4%
Raia Drogasil SA	7,500		166,429
INDEPENDENT POWER AND RENEWABLE ENERGY—0.9%
AES Tiete Energia SA	72,920		377,702
MULTI-LINE INSURANCE—1.1%
BB Seguridade Participacoes SA	42,217		424,913
PERSONAL PRODUCTS—0.5%
Hypermarcas SA	23,915		200,412
RAILROADS—0.8%
Rumo Logistica Operadora Multimodal SA*	144,622		323,370
STEEL—0.6%
Gerdau SA*	74,786		258,089
TOTAL BRAZIL
(Cost $2,483,864)			2,967,418
CHILE—0.5%
SOFT DRINKS—0.5%
Embotelladora Andina SA	54,341		220,444
(Cost $185,443)
CHINA—18.5%
APPAREL ACCESSORIES & LUXURY GOODS—1.0%
Li Ning Co., Ltd.*	578,500		413,155
COMMODITY CHEMICALS—0.8%
Green Seal Holdings Ltd.	64,000		339,825
CONSTRUCTION MATERIALS—0.8%
Anhui Conch Cement Co., Ltd.	115,500		319,230
DIVERSIFIED BANKS—1.6%
China Construction Bank Corp.	905,700		661,381
ELECTRICAL COMPONENTS & EQUIPMENT—0.7%
Byd Co., Ltd.	44,500		292,957
ELECTRONIC MANUFACTURING SERVICES—0.5%
FIH Mobile Ltd.	567,000		187,111
HEALTH CARE FACILITIES—0.7%
Phoenix Healthcare Group Co., Ltd.	183,413		291,458
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS—0.8%
Huaneng Renewables Corp., Ltd.	1,002,360		335,870
INTEGRATED OIL & GAS—2.0%
China Petroleum & Chemical Corp.	595,023		430,318

- 47 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
CHINA—(CONT.)
INTEGRATED OIL & GAS—(CONT.)
PetroChina Co., Ltd.	558,000	$	381,801
			812,119
INTERNET RETAIL—0.7%
JD.com, Inc.#*	11,446		297,024
INTERNET SOFTWARE & SERVICES—7.8%
Alibaba Group Holding Ltd.#*	12,469		1,267,973
Tencent Holdings Ltd.	70,907		1,879,189
			3,147,162
LIFE & HEALTH INSURANCE—1.1%
Ping An Insurance Group Co., of China Ltd.	80,032		421,247
TOTAL CHINA
(Cost $6,435,273)			7,518,539
COLOMBIA—0.9%
CONSTRUCTION MATERIALS—0.9%
Cementos Argos SA	100,657		366,904
(Cost $399,859)
HONG KONG—6.8%
CONSTRUCTION & ENGINEERING—1.0%
China State Construction International Holdings Ltd.	285,368		416,306
INDUSTRIAL CONGLOMERATES—1.0%
China Everbright International Ltd.	332,299		397,238
LIFE & HEALTH INSURANCE—1.3%
AIA Group Ltd.	81,319		511,575
MOVIES & ENTERTAINMENT—0.4%
IMAX China Holding, Inc.*^(a)	35,000		165,485
PACKAGED FOODS & MEATS—0.8%
China Mengniu Dairy Co., Ltd.	171,000		323,020
REAL ESTATE DEVELOPMENT—0.5%
China Overseas Land & Investment Ltd.	67,033		205,783
WIRELESS TELECOMMUNICATION SERVICES—1.8%
China Mobile Ltd.	65,230		747,296
TOTAL HONG KONG
(Cost $2,863,122)			2,766,703
INDIA—9.5%
ALUMINUM—0.5%
Hindalco Industries Ltd.	99,125		223,206
AUTOMOBILE MANUFACTURERS—1.2%
Maruti Suzuki India Ltd.	5,317		470,599
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.9%
Tata Motors Ltd.#	9,405		370,651
CONSTRUCTION MATERIALS—1.0%
Shree Cement Ltd.	1,557		394,379
DIVERSIFIED BANKS—2.5%
HDFC Bank Ltd.	31,809		712,787

- 48 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
INDIA—(CONT.)
DIVERSIFIED BANKS—(CONT.)
Kotak Mahindra Bank Ltd.	25,108	$	308,759
			1,021,546
PHARMACEUTICALS—2.4%
Aurobindo Pharma Ltd.	53,760		659,519
Sun Pharmaceutical Industries Ltd.	29,019		325,730
			985,249
TOBACCO—1.0%
ITC Ltd.*	111,854		405,500
TOTAL INDIA
(Cost $3,225,066)			3,871,130
INDONESIA—3.4%
ALTERNATIVE CARRIERS—0.5%
Tower Bersama Infrastructure Tbk PT	468,000		214,240
AUTOMOBILE MANUFACTURERS—1.0%
Astra International Tbk PT	614,200		387,503
DIVERSIFIED BANKS—0.9%
Bank Rakyat Indonesia Persero Tbk., PT	410,069		382,910
HEALTH CARE FACILITIES—1.0%
Mitra Keluarga Karyasehat Tbk PT	1,835,100		390,941
TOTAL INDONESIA
(Cost $1,279,447)			1,375,594
ISRAEL—0.9%
OIL & GAS REFINING & MARKETING—0.9%
Reliance Industries Ltd.	22,218		350,092
(Cost $335,667)
LUXEMBOURG—1.9%
APPLICATION SOFTWARE—1.0%
Globant SA*	9,205		400,417
PACKAGED FOODS & MEATS—0.9%
Adecoagro SA*	32,423		356,653
TOTAL LUXEMBOURG
(Cost $653,177)			757,070
MACAU—0.4%
CASINOS & GAMING—0.4%
Sands China Ltd.	41,045		178,124
(Cost $181,857)
MALAYSIA—1.2%
COMMODITY CHEMICALS—0.6%
Petronas Chemicals Group Bhd	145,700		243,053
CONSTRUCTION & ENGINEERING—0.6%
IJM Corp., Bhd	327,400		257,638
TOTAL MALAYSIA
(Cost $502,203)			500,691

- 49 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
MEXICO—4.5%
AIRLINES—0.5%
Controladora Vuela Cia de Aviacion SAB de CV#*	11,565	$	221,007
DIVERSIFIED BANKS—2.0%
Banregio Grupo Financiero SAB de CV*	65,778		431,165
Grupo Financiero Banorte SAB de CV	64,760		382,040
			813,205
DIVERSIFIED REAL ESTATE ACTIVITIES—1.0%
Corp Inmobiliaria Vesta SAB de CV	255,888		386,800
SPECIALIZED FINANCE—1.0%
Unifin Financiera SAB de CV SOFOM ENR	135,799		401,998
TOTAL MEXICO
(Cost $1,703,679)			1,823,010
NETHERLAND—2.5%
FOOD RETAIL—1.7%
X5 Retail Group NV*,(b)	22,749		678,067
INTERNET SOFTWARE & SERVICES—0.8%
Yandex NV*	16,543		325,731
TOTAL NETHERLAND
(Cost $804,556)			1,003,798
PERU—0.6%
DIVERSIFIED METALS & MINING—0.6%
Cia de Minas Buenaventura SAA#*	16,853		223,976
(Cost $210,943)
PHILIPPINES—1.2%
HOTELS RESORTS & CRUISE LINES—0.6%
Bloomberry Resorts Corp.*	1,959,900		239,176
MULTI-SECTOR HOLDINGS—0.6%
Metro Pacific Investments Corp.	1,740,500		259,145
TOTAL PHILIPPINES
(Cost $453,876)			498,321
RUSSIA—0.7%
WIRELESS TELECOMMUNICATION SERVICES—0.7%
VimpelCom Ltd.#	84,305		281,579
(Cost $295,493)
SOUTH AFRICA—4.6%
CABLE & SATELLITE—2.2%
Naspers Ltd.	5,485		918,544
DIVERSIFIED BANKS—0.8%
Capitec Bank Holdings Ltd.*	6,607		335,362
PAPER & FOREST PRODUCTS—0.7%
Sappi Ltd.*	49,519		275,511
PHARMACEUTICALS—0.9%
Aspen Pharmacare Holdings Ltd.	16,125		351,245
TOTAL SOUTH AFRICA
(Cost $1,574,535)			1,880,662

- 50 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES		VALUE
SOUTH KOREA—14.0%
AUTO PARTS & EQUIPMENT—1.2%
Mando Corp.	2,088	$	488,402
BIOTECHNOLOGY—0.6%
Hugel, Inc.*	761		227,972
COMMODITY CHEMICALS—0.9%
LG Chem Ltd.	1,686		362,276
DIVERSIFIED BANKS—1.1%
KB Financial Group, Inc.	11,687		432,803
DIVERSIFIED METALS & MINING—0.5%
Korea Zinc Co., Ltd.*	537		213,318
HOUSEHOLD PRODUCTS—0.6%
LG Household & Health Care Ltd.*	334		239,027
INDUSTRIAL MACHINERY—0.8%
Viatron Technologies, Inc.	17,515		308,246
PACKAGED FOODS & MEATS—0.6%
CJ CheilJedang Corp.	787		240,199
PERSONAL PRODUCTS—0.5%
Amorepacific Corp.*	696		218,150
PROPERTY & CASUALTY INSURANCE—1.2%
Hyundai Marine & Fire Insurance Co., Ltd.*	15,814		488,348
SEMICONDUCTORS—5.3%
Samsung Electronics Co., Ltd.	1,350		1,931,779
SK Hynix, Inc.	6,089		217,877
			2,149,656
TRUCKING—0.7%
CJ Korea Express Corp.*	1,698		298,401
TOTAL SOUTH KOREA
(Cost $5,277,692)			5,666,798
SWITZERLAND—1.5%
IT CONSULTING & OTHER SERVICES—1.5%
Luxoft Holding, Inc.*	11,077		587,081
(Cost $500,131)
TAIWAN—10.9%
COMPUTER STORAGE & PERIPHERALS—1.3%
Primax Electronics Ltd.	333,000		527,131
DIVERSIFIED BANKS—1.0%
E.Sun Financial Holding Co., Ltd.*	732,060		416,123
ELECTRONIC EQUIPMENT MANUFACTURERS—0.9%
Egis Technology, Inc.*	51,000		369,668
ENVIRONMENTAL & FACILITIES SERVICES—0.8%
Sunny Friend Environmental Technology Co., Ltd.	94,000		336,457
RESTAURANTS—0.9%
Gourmet Master Co., Ltd.	39,650		356,146
SEMICONDUCTORS—3.7%
ASPEED Technology, Inc.	20,079		289,504

- 51 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2016 (Continued)


COMMON STOCKS—(CONT.)	SHARES			VALUE
TAIWAN—(CONT.)
SEMICONDUCTORS—(CONT.)
eMemory Technology, Inc.	27,000		$	286,306
Silergy Corp.*	28,000			408,329
Sitronix Technology Corp.*	134,000			496,306
				1,480,445
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—1.2%
Ennoconn Corp.	31,000			491,686
TEXTILES—1.1%
Eclat Textile Co., Ltd.*	38,000			430,975
TOTAL TAIWAN
(Cost $3,987,129)				4,408,631
THAILAND—1.9%
CONSTRUCTION & ENGINEERING—1.1%
Sino-Thai Engineering & Construction PCL*	627,077			455,957
OIL & GAS EXPLORATION & PRODUCTION—0.8%
PTT Exploration & Production PCL	131,085			309,808
TOTAL THAILAND
(Cost $658,232)				765,765
TURKEY—0.4%
DIVERSIFIED BANKS—0.4%
Turkiye Garanti Bankasi AS	59,828			162,800
(Cost $175,371)
UNITED KINGDOM—1.3%
DIVERSIFIED METALS & MINING—0.5%
Antofagasta PLC.	28,833			191,778
HEALTH CARE FACILITIES—0.8%
NMC Health PLC.	19,183			343,057
TOTAL UNITED KINGDOM
(Cost $499,187)				534,835
TOTAL COMMON STOCKS
(Cost $34,685,802)				38,709,965
PREFERRED STOCKS—1.0%	SHARES			VALUE
BRAZIL—1.0%
INTEGRATED OIL & GAS—1.0%
Petroleo Brasileiro SA*	71,548			396,362
(Cost $311,791)
SPECIAL PURPOSE VEHICLE—0.1%	SHARES			VALUE
UNITED STATES—0.1%
CONSUMER FINANCE—0.1%
JS Kred SPV I, LLC.^@	43,241			44,932
(Cost $43,241)
Total Investments
(Cost $35,040,834)^(c)	96.5	%		39,151,259
Other Assets in Excess of Liabilities	3.5	%		1,430,569
NET ASSETS	100.0	%	$	40,581,828

- 52 -

THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND
Schedule of Investments October 31, 2016 (Continued)

# American Depositary Receipts.
^(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity
only to qualified institutional buyers. These securities are however deemed to be liquid and represent 0.4% of the
net assets of the Portfolio.
^(b)Global Depositary Receipts.
^(c)At October 31, 2016, the net unrealized appreciation on investments, based on cost for federal income tax
purposes of $35,182,679, amounted to $3,968,580 which consisted of aggregate gross unrealized appreciation of
$4,953,659 and aggregate gross unrealized depreciation of $985,079.
* 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	(Acquisition			Market	as of
Security	Date(s)		Cost	Date)			Value	10/31/2016
JS Kred SPV I, LLC.	06/26/15	$	43,241	0.15	%	$	44,932	0.11	%
Total						$	44,932	0.11	%

Industry classifications are unaudited.
See Notes to Financial Statements.

- 53 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2016


	Alger Spectra Fund			Alger Green Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	5,107,536,960		$	63,156,472
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		15,646,063			62,019
Cash and cash equivalents (a)		152,679,641			2,149,409
Receivable for investment securities sold		136,793,411			83,665
Receivable for shares of beneficial interest sold		7,720,650			64,201
Dividends and interest receivable		1,676,267			46,508
Receivable from Investment Manager		—			1,513
Prepaid expenses		523,106			56,839
Total Assets		5,422,576,098			65,620,626

LIABILITIES:
Securities sold short, at value ‡		153,118,097			—
Payable for investment securities purchased		75,616,556			—
Payable for shares of beneficial interest redeemed		10,561,724			29,007
Accrued investment advisory fees		3,514,136			40,140
Accrued transfer agent fees		1,435,958			37,790
Accrued distribution fees		1,336,658			17,719
Accrued administrative fees		123,591			1,555
Accrued shareholder administrative fees		58,857			772
Accrued other expenses		450,769			31,301
Total Liabilities		246,216,346			158,284
NET ASSETS	$	5,176,359,752		$	65,462,342

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		4,509,343,504			44,141,752
Undistributed net investment income (accumulated loss)		(8,808,584	)		6,127
Undistributed net realized gain		23,336,486			2,520,305
Net unrealized appreciation on investments		652,488,346			18,794,158
NET ASSETS	$	5,176,359,752		$	65,462,342
* Identified cost	$	4,458,459,087		$	44,344,645
** Identified cost	$	17,583,831		$	79,688
‡ Proceeds received on short sales	$	158,466,339		$	—
(a) Includes restricted cash held as collateral for short sales	$	85,511,422		$	—
*See Notes to Financial Statements.*

- 54 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2016 (Continued)


	Alger Spectra Fund		Alger Green Fund

NET ASSETS BY CLASS:
Class A	$	1,635,495,154	$	31,321,165
Class C	$	815,694,149	$	5,580,489
Class I	$	1,222,782,786	$	28,461,356
Class Z	$	1,502,387,663	$	99,332

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		96,736,157		3,425,753
Class C		51,639,914		651,653
Class I		71,683,875		3,116,438
Class Z		87,318,339		10,870

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	16.91	$	9.14
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	17.84	$	9.65
Class C — Net Asset Value Per Share Class C	$	15.80	$	8.56
Class I — Net Asset Value Per Share Class I	$	17.06	$	9.13
Class Z — Net Asset Value Per Share Class Z	$	17.21	$	9.14
*See Notes to Financial Statements.*

- 55 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2016 (Continued)


	Alger Mid Cap Focus				Alger Dynamic
		Fund		Opportunities Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	7,271,123		$	92,217,552
Investments in affiliated securities, at value (Identified cost
below)** see accompanying schedules of investments		—			304,223
Cash and cash equivalents (a)		734,722			8,304,197
Receivable for investment securities sold		160,329			458,061
Receivable for shares of beneficial interest sold		—			47,646
Dividends and interest receivable		12,415			7,497
Receivable from Investment Manager		10,550			—
Prepaid expenses		52,522			52,995
Total Assets		8,241,661			101,392,171

LIABILITIES:
Securities sold short, at value ‡		—			18,169,806
Payable for investment securities purchased		100,209			745,641
Payable for shares of beneficial interest redeemed		—			210,017
Accrued investment advisory fees		5,223			86,018
Accrued transfer agent fees		2,908			20,082
Accrued distribution fees		1,960			12,983
Accrued administrative fees		192			1,971
Accrued shareholder administrative fees		106			928
Dividends payable		—			9,268
Accrued other expenses		23,684			37,490
Total Liabilities		134,282			19,294,204
NET ASSETS	$	8,107,379		$	82,097,967

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		8,276,498			82,226,298
Undistributed net investment income (accumulated loss)		(1,777	)		(1,202,940	)
Undistributed net realized gain (accumulated realized loss)		(137,404	)		(2,294,913	)
Net unrealized appreciation (depreciation) on investments		(29,938	)		3,369,522
NET ASSETS	$	8,107,379		$	82,097,967
* Identified cost	$	7,301,061		$	88,323,195
** Identified cost	$	—		$	506,450
‡ Proceeds received on short sales	$	—		$	17,847,199
(a) Includes restricted cash held as collateral for short sales	$	—		$	6,702,362
*See Notes to Financial Statements.*

- 56 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2016 (Continued)


	Alger Mid Cap Focus			Alger Dynamic
		Fund	Opportunities Fund

NET ASSETS BY CLASS:
Class A	$	6,080,555	$	30,030,711
Class C	$	352,262	$	7,120,101
Class I	$	1,575,623	$	—
Class Z	$	98,939	$	44,947,155

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		544,593		2,582,658
Class C		33,592		643,095
Class I		141,556		—
Class Z		8,889		3,800,448

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	11.17	$	11.63
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	11.78	$	12.27
Class C — Net Asset Value Per Share Class C	$	10.49	$	11.07
Class I — Net Asset Value Per Share Class I	$	11.13	$	—
Class Z — Net Asset Value Per Share Class Z	$	11.13	$	11.83
*See Notes to Financial Statements.*

- 57 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2016 (Continued)


		Alger Emerging
		Markets Fund

ASSETS:
Investments in securities, at value (Identified cost below)*
see accompanying schedules of investments	$	39,151,259
Cash and cash equivalents		1,113,130
Foreign cash †		499,398
Receivable for investment securities sold		653,990
Receivable for shares of beneficial interest sold		115,745
Dividends and interest receivable		7,484
Receivable from Investment Manager		12,069
Prepaid expenses		54,583
Total Assets		41,607,658

LIABILITIES:
Payable for investment securities purchased		832,880
Payable for shares of beneficial interest redeemed		95,505
Foreign capital gain tax payable		3,185
Accrued investment advisory fees		30,626
Accrued transfer agent fees		9,134
Accrued distribution fees		6,632
Accrued administrative fees		936
Accrued shareholder administrative fees		389
Accrued other expenses		46,543
Total Liabilities		1,025,830
NET ASSETS	$	40,581,828

NET ASSETS CONSIST OF:
Paid in capital (par value of $.001 per share)		41,720,961
Undistributed net investment income (accumulated loss)		(75,312	)
Undistributed net realized gain (accumulated realized loss)		(5,171,799	)
Net unrealized appreciation on investments		4,107,978
NET ASSETS	$	40,581,828
* Identified cost	$	35,040,834
† Cost of foreign cash	$	498,328
*See Notes to Financial Statements.*

- 58 -

THE ALGER FUNDS II
Statement of Assets and Liabilities October 31, 2016 (Continued)


		Alger Emerging
		Markets Fund

NET ASSETS BY CLASS:
Class A	$	5,930,600
Class C	$	2,848,453
Class I	$	14,006,205
Class Y	$	114,133
Class Y-2	$	114,165
Class Z	$	17,568,272

SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6:
Class A		652,342
Class C		325,070
Class I		1,549,669
Class Y		12,598
Class Y-2		12,598
Class Z		1,926,426

NET ASSET VALUE PER SHARE:
Class A — Net Asset Value Per Share Class A	$	9.09
Class A — Offering Price Per Share
(includes a 5.25% sales charge)	$	9.59
Class C — Net Asset Value Per Share Class C	$	8.76
Class I — Net Asset Value Per Share Class I	$	9.04
Class Y — Net Asset Value Per Share Class Y	$	9.06
Class Y-2 — Net Asset Value Per Share Class Y-2	$	9.06
Class Z — Net Asset Value Per Share Class Z	$	9.12
*See Notes to Financial Statements.*

- 59 -

THE ALGER FUNDS II
Statement of Operations For the year ended October 31, 2016


		Alger Spectra Fund			Alger Green Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$		67,542,463		$	1,077,294
Interest from affiliated securities – Note 11			7,579			95
Interest			223,985			7,466
Total Income			67,774,027			1,084,855

EXPENSES:
Advisory fees — Note 3(a)			42,164,426			531,445
Distribution fees — Note 3(c)
Class A			4,467,485			80,666
Class C			8,794,941			56,992
Class I			3,122,165			92,205
Shareholder administrative fees — Note 3(f)			714,314			9,952
Administration fees — Note 3(b)			1,487,726			20,584
Dividends on securities sold short			3,214,497			—
Custodian fees			328,020			25,591
Interest expenses			21,075			—
Borrowing fees on short sales			2,270,639			—
Transfer agent fees and expenses — Note 3(f)			3,552,205			78,450
Printing fees			607,451			10,629
Professional fees			282,970			29,212
Registration fees			349,865			58,970
Trustee fees — Note 3(g)			220,497			3,121
Fund accounting fees			712,487			12,611
Miscellaneous			261,555			7,033
Total Expenses			72,572,318			1,017,461
Less, expense reimbursements/waivers — Note 3(a)			—			(1,513	)
Net Expenses			72,572,318			1,015,948
NET INVESTMENT INCOME (LOSS)			(4,798,291	)		68,907

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments			102,832,330			2,527,326
Net realized (loss) on foreign currency transactions			(29,930	)		—
Net realized gain on short sales			13,391,376			—
Net change in unrealized (depreciation) on investments and
foreign currency			(126,993,528	)		(3,803,799	)
Net change in unrealized (depreciation) on short sales			(10,662,241	)		—
Net realized and unrealized (loss) on investments and foreign
currency			(21,461,993	)		(1,276,473	)
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$		(26,260,284	)	$	(1,207,566	)
* Foreign withholding taxes	$		275,849		$	2,659
*See Notes to Financial Statements.*

- 60 -

THE ALGER FUNDS II
Statement of Operations For the year ended October 31, 2016 (Continued)


	Alger Mid Cap Focus				Alger Dynamic
		Fund		Opportunities Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	101,428		$	898,357
Interest		1,047			64,485
Total Income		102,475			962,842

EXPENSES:
Advisory fees — Note 3(a)		62,241			1,223,955
Distribution fees — Note 3(c)
Class A		15,755			91,055
Class C		3,261			94,046
Class I		4,166			—
Shareholder administrative fees — Note 3(f)		1,261			13,179
Administration fees — Note 3(b)		2,282			28,049
Dividends on securities sold short		94			360,626
Custodian fees		28,666			64,296
Interest expenses		—			2,348
Borrowing fees on short sales		—			235,337
Transfer agent fees and expenses — Note 3(f)		6,597			61,899
Printing fees		2,629			15,103
Professional fees		27,116			35,506
Registration fees		55,926			70,294
Trustee fees — Note 3(g)		328			4,086
Fund accounting fees		3,710			16,300
Miscellaneous		3,701			9,874
Total Expenses		217,733			2,325,953
Less, expense reimbursements/waivers — Note 3(a)		(108,257	)		—
Net Expenses		109,476			2,325,953
NET INVESTMENT LOSS		(7,001	)		(1,363,111	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY:
Net realized (loss) on investments and purchased options		(135,694	)		(1,366,908	)
Net realized gain (loss) on foreign currency transactions		(4	)		938
Net realized (loss) on short sales		—			(196,378	)
Net change in unrealized (depreciation) on investments,
options and foreign currency		(687,568	)		(1,154,453	)
Net change in unrealized (depreciation) on short sales		—			(800,931	)
Net realized and unrealized (loss) on investments, options,
and foreign currency		(823,266	)		(3,517,732	)
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS	$	(830,267	)	$	(4,880,843	)
* Foreign withholding taxes	$	—		$	1,383
*See Notes to Financial Statements.*

- 61 -

THE ALGER FUNDS II
Statement of Operations For the year ended October 31, 2016 (Continued)


		Alger Emerging
		Markets Fund

INCOME:
Dividends (net of foreign withholding taxes*)	$	459,195
Interest		1,192
Total Income		460,387

EXPENSES:
Advisory fees — Note 3(a)		295,804
Distribution fees — Note 3(c)
Class A		12,913
Class C		25,038
Class I		29,926
Shareholder administrative fees — Note 3(f)		3,476
Administration fees — Note 3(b)		8,190
Dividends on securities sold short		715
Custodian fees		139,246
Transfer agent fees and expenses — Note 3(f)		31,074
Printing fees		8,869
Professional fees		32,269
Registration fees		77,478
Trustee fees — Note 3(g)		1,216
Fund accounting fees		8,899
Miscellaneous		25,037
Total Expenses		700,150
Less, expense reimbursements/waivers — Note 3(a)		(236,914	)
Net Expenses		463,236
NET INVESTMENT LOSS		(2,849	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized (loss) on investments		(1,253,898	)
Net realized (loss) on foreign currency transactions		(9,853	)
Net change in unrealized appreciation on investments and foreign currency		3,303,433
Net realized and unrealized gain on investments and foreign currency		2,039,682
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,036,833
* Foreign withholding taxes	$	49,180
*See Notes to Financial Statements.*

- 62 -

THE ALGER FUNDS II
Statements of Changes in Net Assets


		Alger Spectra Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(4,798,291	)	$	(15,197,838	)
Net realized gain on investments and foreign currency		116,193,776			410,668,377
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		(137,655,769	)		42,404,519
Net increase (decrease) in net assets resulting from operations		(26,260,284	)		437,875,058

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(153,383,448	)		(232,068,288	)
Class C		(78,165,865	)		(86,801,799	)
Class I		(103,827,372	)		(129,154,885	)
Class Z		(125,330,338	)		(115,269,367	)
Total dividends and distributions to shareholders		(460,707,023	)		(563,294,339	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(438,733,857	)		450,724,006
Class C		4,132,841			273,947,569
Class I		80,647,352			246,206,432
Class Z		429,073,682			286,905,857
Net increase from shares of beneficial interest transactions —
Note 6(a)		75,120,018			1,257,783,864

Redemption Fees:
Class A		—			15,847
Class C		—			5,723
Total Redemption Fees — Note 6(b)		—			21,570
Total increase (decrease)		(411,847,289	)		1,132,386,153

Net Assets:
Beginning of period		5,588,207,041			4,455,820,888
END OF PERIOD	$	5,176,359,752		$	5,588,207,041
Undistributed net investment income (accumulated loss)	$	(8,808,584	)	$	(19,169,843	)
*See Notes to Financial Statements.*

- 63 -

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


		Alger Green Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment income (loss)	$	68,907		$	(94,568	)
Net realized gain on investments and foreign currency		2,527,326			1,079,283
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		(3,803,799	)		3,027,167
Net increase (decrease) in net assets resulting from operations		(1,207,566	)		4,011,882

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(447,261	)		(887,146	)
Class C		(84,420	)		(153,204	)
Class I		(591,290	)		(1,154,776	)
Total dividends and distributions to shareholders		(1,122,971	)		(2,195,126	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(2,191,339	)		1,803,130
Class C		(178,579	)		610,920
Class I		(12,959,514	)		(19,046	)
Class Z		100,000			—
Net increase (decrease) from shares of beneficial interest
transactions — Note 6(a)		(15,229,432	)		2,395,004

Redemption Fees:
Class A		—			3
Total Redemption Fees — Note 6(b)		—			3
Total increase (decrease)		(17,559,969	)		4,211,763

Net Assets:
Beginning of period		83,022,311			78,810,548
END OF PERIOD	$	65,462,342		$	83,022,311
Undistributed net investment income (accumulated loss)	$	6,127		$	(30,136	)
*See Notes to Financial Statements.*

- 64 -

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


		Alger Mid Cap Focus Fund
		For the			For the
		Year Ended			Year Ended
		October 31, 2016			October 31, 2015

Net investment loss	$	(7,001	)	$	(62,383	)
Net realized gain (loss) on investments and foreign currency		(135,698	)		491,681
Net change in unrealized depreciation on investments and
foreign currency		(687,568	)		(282,575	)
Net increase (decrease) in net assets resulting from operations		(830,267	)		146,723

Dividends and distributions to shareholders from:
Net investment income:
Class A		—			(27,209	)
Class I		—			(11,760	)
Net realized gains:
Class A		(338,004	)		(461,447	)
Class C		(17,866	)		(26,114	)
Class I		(96,019	)		(136,646	)
Total dividends and distributions to shareholders		(451,889	)		(663,176	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		341,524			630,791
Class C		67,925			(9,637	)
Class I		(131,699	)		104,867
Class Z		100,000			—
Net increase from shares of beneficial interest transactions —
Note 6(a)		377,750			726,021
Total increase (decrease)		(904,406	)		209,568

Net Assets:
Beginning of period		9,011,785			8,802,217
END OF PERIOD	$	8,107,379		$	9,011,785
Undistributed net investment income (accumulated loss)	$	(1,777	)	$	(68,354	)
*See Notes to Financial Statements.*

- 65 -

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, 2016			October 31, 2015

Net investment loss	$	(1,363,111	)	$	(1,396,566	)
Net realized gain (loss) on investments, options and foreign
currency		(1,562,348	)		2,740,694
Net change in unrealized depreciation on investments, options
and foreign currency		(1,955,384	)		(295,072	)
Net increase (decrease) in net assets resulting from operations		(4,880,843	)		1,049,056

Dividends and distributions to shareholders from:
Net realized gains:
Class A		(1,142,833	)		(2,281,541	)
Class C		(294,452	)		(361,352	)
Class Z		(1,894,964	)		(1,765,215	)
Total dividends and distributions to shareholders		(3,332,249	)		(4,408,108	)

Increase (decrease) from shares of beneficial interest transactions:
Class A		(34,404,312	)		20,842,186
Class C		(2,230,730	)		4,618,262
Class Z		2,311,254			18,433,053
Net increase (decrease) from shares of beneficial interest
transactions — Note 6(a)		(34,323,788	)		43,893,501

Redemption Fees:
Class A		—			508
Total Redemption Fees — Note 6(b)		—			508
Total increase (decrease)		(42,536,880	)		40,534,957

Net Assets:
Beginning of period		124,634,847			84,099,890
END OF PERIOD	$	82,097,967		$	124,634,847
Undistributed net investment income (accumulated loss)	$	(1,202,940	)	$	(1,238,473	)
*See Notes to Financial Statements.*

- 66 -

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, 2016			October 31, 2015

Net investment loss	$	(2,849	)	$	(82,913	)
Net realized loss on investments and foreign currency		(1,263,751	)		(1,769,379	)
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		3,303,433			(921,805	)
Net increase (decrease) in net assets resulting from operations		2,036,833			(2,774,097	)

Dividends and distributions to shareholders from:
Net investment income:
Class A		(4,867	)		—
Class I		(4,133	)		—
Class Z		(15,394	)		—
Total dividends and distributions to shareholders		(24,394	)		—

Increase (decrease) from shares of beneficial interest transactions:
Class A		(2,594,517	)		2,288,922
Class C		129,621			700,257
Class I		1,467,128			1,497,814
Class Y		100,000			—
Class Y-2		100,000			—
Class Z		12,407,873			1,046,389
Net increase from shares of beneficial interest transactions —
Note 6(a)		11,610,105			5,533,382

Redemption Fees:
Class A		—			10
Class C		—			3
Total Redemption Fees — Note 6(b)		—			13
Total increase		13,622,544			2,759,298

Net Assets:
Beginning of period		26,959,284			24,199,986
END OF PERIOD	$	40,581,828		$	26,959,284
Undistributed net investment income (accumulated loss)	$	(75,312	)	$	(134,693	)
*See Notes to Financial Statements.*

- 67 -

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
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	18.45			$	19.13			$	17.37			$	13.82			$	12.35
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.01	)			(0.04	)			(0.06	)			0.05				0.02
Net realized and unrealized gain (loss)
on investments			(0.03	)			1.74				2.82				3.91				1.66
Total from investment operations			(0.04	)			1.70				2.76				3.96				1.68
Dividends from net investment income			–				–				–				(0.09	)			–
Distributions from net realized gains			(1.50	)			(2.38	)			(1.00	)			(0.32	)			(0.21	)
Net asset value, end of period		$	16.91			$	18.45			$	19.13			$	17.37			$	13.82
Total return⁽ⁱⁱ⁾			(0.36	)%			9.66	%			16.56	%			29.29	%			14.00	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,635,495			$	2,243,901			$	1,846,479			$	1,866,317			$	1,158,220
Ratio of gross expenses to average
net assets			1.31%⁽ⁱⁱⁱ⁾				1.34%^(iv)				1.52%^(v)				1.52%^(vi)				1.49%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.31	%			1.34	%			1.52	%			1.52	%			1.49	%
Ratio of net investment income (loss) to
average net assets			(0.05	)%			(0.24	)%			(0.35	)%			0.35	%			0.16	%
Portfolio turnover rate			108.51	%			143.64	%			149.01	%			113.69	%			139.90	%
*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 0.10% related to dividend expense on short positions and interest expense for the period ended 10/31/16
^(iv)Includes 0.15% related to dividend expense on short positions and interest expense for the period ended 10/31/15
^(v)Includes 0.27% 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 0.12% related to dividend expense on short positions and interest expense for the period ended 10/31/12
- 68 -

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
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	17.46			$	18.35			$	16.81			$	13.43			$	12.09
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.13	)			(0.18	)			(0.19	)			(0.07	)			(0.07	)
Net realized and unrealized gain (loss)
on investments			(0.03	)			1.67				2.73				3.79				1.62
Total from investment operations			(0.16	)			1.49				2.54				3.72				1.55
Dividends from net investment income			–				–				–				(0.02	)			–
Distributions from net realized gains			(1.50	)			(2.38	)			(1.00	)			(0.32	)			(0.21	)
Net asset value, end of period		$	15.80			$	17.46			$	18.35			$	16.81			$	13.43
Total return⁽ⁱⁱ⁾			(1.12	)%			8.84	%			15.69	%			28.38	%			13.12	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	815,694			$	899,108			$	650,438			$	458,750			$	242,972
Ratio of gross expenses to average
net assets			2.07%⁽ⁱⁱⁱ⁾				2.11%^(iv)				2.27	%^(v)			2.28%^(vi)				2.24%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			2.07	%			2.11	%			2.27	%			2.28	%			2.24	%
Ratio of net investment income (loss) to
average net assets			(0.82	)%			(1.01	)%			(1.12	)%			(0.46	)%			(0.57	)%
Portfolio turnover rate			108.51	%			143.64	%			149.01	%			113.69	%			139.90	%
*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 0.10% related to dividend expense on short positions and interest expense for the period ended 10/31/16
^(iv)Includes 0.15% related to dividend expense on short positions and interest expense for the period ended 10/31/15
^(v)Includes 0.28% 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 0.13% related to dividend expense on short positions and interest expense for the period ended 10/31/12
- 69 -

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
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	18.60			$	19.27			$	17.48			$	13.92			$	12.42
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.01	)			(0.05	)			(0.06	)			0.06				0.03
Net realized and unrealized gain (loss)
on investments			(0.03	)			1.76				2.85				3.91				1.68
Total from investment operations			(0.04	)			1.71				2.79				3.97				1.71
Dividends from net investment income			–				–				–				(0.09	)			–
Distributions from net realized gains			(1.50	)			(2.38	)			(1.00	)			(0.32	)			(0.21	)
Net asset value, end of period		$	17.06			$	18.60			$	19.27			$	17.48			$	13.92
Total return⁽ⁱⁱ⁾			(0.35	)%			9.65	%			16.63	%			29.30	%			14.07	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,222,783			$	1,251,395			$	1,030,304			$	736,036			$	431,557
Ratio of gross expenses to average
net assets			1.29%⁽ⁱⁱⁱ⁾				1.35%^(iv)				1.50	%^(v)			1.50%^(vi)				1.43%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			1.29	%			1.35	%			1.50	%			1.50	%			1.43	%
Ratio of net investment income (loss) to
average net assets			(0.05	)%			(0.25	)%			(0.35	)%			0.36	%			0.25	%
Portfolio turnover rate			108.51	%			143.64	%			149.01	%			113.69	%			139.90	%
*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 0.10% related to dividend expense on short positions and interest expense for the period ended 10/31/16
^(iv)Includes 0.15% related to dividend expense on short positions and interest expense for the period ended 10/31/15
^(v)Includes 0.28% 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 0.12% related to dividend expense on short positions and interest expense for the period ended 10/31/12
- 70 -

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


Alger Spectra Fund											Class Z
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	18.70			$	19.30			$	17.46			$	13.90			$	12.38
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			0.04				0.01				(0.02	)			0.10				0.08
Net realized and unrealized gain (loss)
on investments			(0.03	)			1.77				2.86				3.91				1.65
Total from investment operations			0.01				1.78				2.84				4.01				1.73
Dividends from net investment income			–				–				–				(0.13	)			–
Distributions from net realized gains			(1.50	)			(2.38	)			(1.00	)			(0.32	)			(0.21	)
Net asset value, end of period		$	17.21			$	18.70			$	19.30			$	17.46			$	13.90
Total return⁽ⁱⁱ⁾			(0.06	)%			9.98	%			17.01	%			29.68	%			14.28	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,502,388			$	1,193,803			$	928,600			$	367,709			$	215,244
Ratio of gross expenses to average
net assets			0.99%⁽ⁱⁱⁱ⁾				1.04%^(iv)				1.23	%^(v)			1.20%^(vi)				1.20%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				–				–
Ratio of net expenses to average net
assets			0.99	%			1.04	%			1.23	%			1.20	%			1.20	%
Ratio of net investment income (loss) to
average net assets			0.26	%			0.06	%			(0.11	)%			0.65	%			0.60	%
Portfolio turnover rate			108.51	%			143.64	%			149.01	%			113.69	%			139.90	%
*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 0.10% related to dividend expense on short positions and interest expense for the period ended 10/31/16
^(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
- 71 -

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
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	9.36			$	9.14			$	8.78			$	6.68			$	6.01
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			(0.10	)			0.49				0.69				2.10				0.66
Total from investment operations			(0.09	)			0.48				0.69				2.11				0.67
Dividends from net investment income			–				–				–				(0.01	)			–
Distributions from net realized gains			(0.13	)			(0.26	)			(0.33	)			–				–
Net asset value, end of period		$	9.14			$	9.36			$	9.14			$	8.78			$	6.68
Total return⁽ⁱⁱ⁾			(1.03	)%			5.30	%			7.99	%			31.63	%			11.15	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	31,321			$	34,213			$	31,662			$	30,586			$	26,243
Ratio of gross expenses to average
net assets			1.31	%			1.29	%			1.33	%			1.41	%			1.49	%
Ratio of expense reimbursements to
average net assets			–				–				–				(0.06	)%			(0.17	)%
Ratio of net expenses to average net
assets			1.31	%			1.29	%			1.33	%			1.35	%			1.32	%
Ratio of net investment income (loss) to
average net assets			0.14	%			(0.07	)%			(0.05	)%			0.18	%			0.12	%
Portfolio turnover rate			19.84	%			16.85	%			24.22	%			43.35	%			21.25	%
*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.
- 72 -

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
	10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	8.84		$	8.71		$	8.45		$	6.47		$	5.88
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.05	)		(0.07	)		(0.07	)		(0.05	)		(0.05	)
Net realized and unrealized gain (loss)
on investments		(0.10	)		0.46			0.66			2.03			0.64
Total from investment operations		(0.15	)		0.39			0.59			1.98			0.59
Distributions from net realized gains		(0.13	)		(0.26	)		(0.33	)		–			–
Net asset value, end of period	$	8.56		$	8.84		$	8.71		$	8.45		$	6.47
Total return⁽ⁱⁱ⁾		(1.77	)%		4.51	%		7.09	%		30.45	%		10.03	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	5,581		$	5,949		$	5,261		$	4,096		$	2,484
Ratio of gross expenses to average
net assets		2.09	%		2.07	%		2.09	%		2.16	%		2.31	%
Ratio of expense reimbursements to
average net assets		–			–			–			–			(0.10	)%
Ratio of net expenses to average net
assets		2.09	%		2.07	%		2.09	%		2.16	%		2.21	%
Ratio of net investment income (loss) to											��
average net assets		(0.63	)%		(0.85	)%		(0.81	)%		(0.69	)%		(0.77	)%
Portfolio turnover rate		19.84	%		16.85	%		24.22	%		43.35	%		21.25	%
*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.
- 73 -

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
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	9.35			$	9.12			$	8.77			$	6.67			$	6.01
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			(0.10	)			0.50				0.68				2.10				0.65
Total from investment operations			(0.09	)			0.49				0.68				2.11				0.66
Dividends from net investment income			–				–				–⁽ⁱⁱ⁾				(0.01	)			–
Distributions from net realized gains			(0.13	)			(0.26	)			(0.33	)			–				–
Net asset value, end of period		$	9.13			$	9.35			$	9.12			$	8.77			$	6.67
Total return⁽ⁱⁱⁱ⁾			(1.03	)%			5.42	%			7.91	%			31.68	%			11.00	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	28,461			$	42,860			$	41,888			$	35,108			$	19,717
Ratio of gross expenses to average
net assets			1.28	%			1.27	%			1.30	%			1.35	%			1.52	%
Ratio of expense reimbursements to
average net assets			–				–				–				–				(0.20	)%
Ratio of net expenses to average net
assets			1.28	%			1.27	%			1.30	%			1.35	%			1.32	%
Ratio of net investment income (loss) to
average net assets			0.16	%			(0.05	)%			(0.03	)%			0.14	%			0.10	%
Portfolio turnover rate			19.84	%			16.85	%			24.22	%			43.35	%			21.25	%
*See Notes to Financial Statements.*

(i⁾Amount was computed based on average shares outstanding during the period.
⁽ⁱⁱ⁾Amount was less than $0.005 per share.
⁽ⁱⁱⁱ⁾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 Green Fund		Class Z
	From 10/14/2016
	(commencement
	of operations) to
	10/31/2016		⁽ⁱ⁾
Net asset value, beginning of period	$	9.20
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾		0.01
Net realized and unrealized loss on
investments		(0.07	)
Total from investment operations		(0.06	)
Net asset value, end of period	$	9.14
Total return⁽ⁱⁱⁱ⁾		(0.65	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	99
Ratio of gross expenses to average
net assets		33.46	%
Ratio of expense reimbursements to
average net assets		(32.56	)%
Ratio of net expenses to average net
assets		0.90	%
Ratio of net investment income (loss) to
average net assets		2.38	%
Portfolio turnover rate		19.84	%
*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.
- 75 -

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


Alger Mid Cap Focus Fund								Class A
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	12.97		$	13.74		$	13.86		$	10.83		$	9.85
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.01	)		(0.09	)		(0.06	)		(0.01	)		(0.03	)
Net realized and unrealized gain (loss)
on investments		(1.14	)		0.34			1.33			3.66			1.01
Total from investment operations		(1.15	)		0.25			1.27			3.65			0.98
Dividends from net investment income		–			(0.06	)		–			–			–
Distributions from net realized gains		(0.65	)		(0.96	)		(1.39	)		(0.62	)		–
Net asset value, end of period	$	11.17		$	12.97		$	13.74		$	13.86		$	10.83
Total return⁽ⁱⁱ⁾		(9.26	)%		1.75	%		9.83	%		35.40	%		10.00	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	6,080		$	6,707		$	6,459		$	4,766		$	2,524
Ratio of gross expenses to average
net assets		2.56	%		2.48	%		2.75	%		4.07	%		4.85	%
Ratio of expense reimbursements to
average net assets		(1.27	)%		(1.05	)%		(1.45	)%		(2.77	)%		(3.58	)%
Ratio of net expenses to average net
assets		1.29	%		1.43	%		1.30	%		1.30	%		1.27	%
Ratio of net investment income (loss) to
average net assets		(0.06	)%		(0.66	)%		(0.43	)%		(0.07	)%		(0.30	)%
Portfolio turnover rate		111.74	%		106.86	%		170.12	%		158.26	%		158.39	%
*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.
- 76 -

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


Alger Mid Cap Focus Fund								Class C
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	12.29		$	13.09		$	13.35		$	10.51		$	9.62
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.07	)		(0.15	)		(0.14	)		(0.09	)		(0.10	)
Net realized and unrealized gain (loss)
on investments		(1.08	)		0.31			1.27			3.55			0.99
Total from investment operations		(1.15	)		0.16			1.13			3.46			0.89
Dividends from net investment income		–			–			–			–			–
Distributions from net realized gains		(0.65	)		(0.96	)		(1.39	)		(0.62	)		–
Net asset value, end of period	$	10.49		$	12.29		$	13.09		$	13.35		$	10.51
Total return⁽ⁱⁱ⁾		(9.80	)%		1.14	%		9.09	%		34.63	%		9.25	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	352		$	337		$	368		$	282		$	184
Ratio of gross expenses to average
net assets		3.55	%		3.41	%		3.53	%		5.49	%		6.00	%
Ratio of expense reimbursements to
average net assets		(1.60	)%		(1.46	)%		(1.58	)%		(3.54	)%		(4.05	)%
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		(0.67	)%		(1.18	)%		(1.08	)%		(0.73	)%		(0.99	)%
Portfolio turnover rate		111.74	%		106.86	%		170.12	%		158.26	%		158.39	%
*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.
- 77 -

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


Alger Mid Cap Focus Fund								Class I
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	12.93		$	13.73		$	13.85		$	10.82		$	9.84
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.01	)		(0.09	)		(0.06	)		(0.01	)		(0.03	)
Net realized and unrealized gain (loss)
on investments		(1.14	)		0.33			1.33			3.66			1.01
Total from investment operations		(1.15	)		0.24			1.27			3.65			0.98
Dividends from net investment income		–			(0.08	)		–			–			–
Distributions from net realized gains		(0.65	)		(0.96	)		(1.39	)		(0.62	)		–
Return of capital		–			–			–			–			–
Net asset value, end of period	$	11.13		$	12.93		$	13.73		$	13.85		$	10.82
Total return⁽ⁱⁱ⁾		(9.29	)%		1.72	%		9.84	%		35.44	%		10.00	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	1,576		$	1,968		$	1,975		$	1,815		$	1,180
Ratio of gross expenses to average
net assets		2.59	%		2.50	%		2.79	%		4.07	%		5.95	%
Ratio of expense reimbursements to
average net assets		(1.29	)%		(1.07	)%		(1.49	)%		(2.77	)%		(4.68	)%
Ratio of net expenses to average net
assets		1.30	%		1.43	%		1.30	%		1.30	%		1.27	%
Ratio of net investment income (loss) to
average net assets		(0.07	)%		(0.66	)%		(0.41	)%		(0.08	)%		(0.33	)%
Portfolio turnover rate		111.74	%		106.86	%		170.12	%		158.26	%		158.39	%
*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.
- 78 -

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


Alger Mid Cap Focus Fund		Class Z
	From 10/14/2016
	(commencement
	of operations) to
	10/31/2016		⁽ⁱ⁾
Net asset value, beginning of period	$	11.25
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾		0.04
Net realized and unrealized loss on
investments		(0.16	)
Total from investment operations		(0.12	)
Net asset value, end of period	$	11.13
Total return⁽ⁱⁱⁱ⁾		(1.07	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	99
Ratio of gross expenses to average
net assets		34.74	%
Ratio of expense reimbursements to
average net assets		(33.75	)%
Ratio of net expenses to average net
assets		0.99	%
Ratio of net investment income (loss) to
average net assets		8.35	%
Portfolio turnover rate		111.74	%
*See Notes to Financial Statements.*

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
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	12.48			$	12.86			$	12.90			$	11.12			$	10.64
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.17	)			(0.19	)			(0.20	)			(0.16	)			(0.14	)
Net realized and unrealized gain (loss)
on investments			(0.34	)			0.55				0.96				1.94				0.77
Total from investment operations			(0.51	)			0.36				0.76				1.78				0.63
Distributions from net realized gains			(0.34	)			(0.74	)			(0.80	)			–				(0.15	)
Net asset value, end of period		$	11.63			$	12.48			$	12.86			$	12.90			$	11.12
Total return⁽ⁱⁱ⁾			(4.22	)%			2.86	%			6.15	%			16.01	%			6.07	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	30,031			$	67,533			$	48,464			$	36,712			$	21,741
Ratio of gross expenses to average
net assets			2.38%⁽ⁱⁱⁱ⁾				2.20%^(iv)				2.46	%^(v)			2.61%^(vi)				2.98%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				(0.03	)%			(0.36	)%
Ratio of net expenses to average net
assets			2.38	%			2.20	%			2.46	%			2.58	%			2.62	%
Ratio of net investment income (loss) to
average net assets			(1.43	)%			(1.51	)%			(1.57	)%			(1.37	)%			(1.26	)%
Portfolio turnover rate			146.73	%			178.19	%			205.45	%			201.50	%			257.74	%
*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 0.58% related to dividend expense on short positions and interest expense for the period ended 10/31/16
(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
- 80 -

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


Alger Dynamic Opportunities
Fund									Class C
	Year ended				Year ended			Year ended			Year ended			Year ended
	10/31/2016				10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	11.98			$	12.47		$	12.62		$	10.95		$	10.57
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.25	)			(0.28	)		(0.29	)		(0.25	)		(0.22	)
Net realized and unrealized gain (loss)
on investments		(0.32	)			0.53			0.94			1.92			0.75
Total from investment operations		(0.57	)			0.25			0.65			1.67			0.53
Distributions from net realized gains		(0.34	)			(0.74	)		(0.80	)		–			(0.15	)
Net asset value, end of period	$	11.07			$	11.98		$	12.47		$	12.62		$	10.95
Total return⁽ⁱⁱ⁾		(5.00	)%			2.11	%		5.38	%		15.15	%		5.25	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	7,120		$	10,136			$	5,808		$	1,407		$	622
Ratio of gross expenses to average
net assets		3.14%⁽ⁱⁱⁱ⁾				2.98%^(iv)			3.23	%^(v)		3.36%^(vi)			4.00%^(vii)
Ratio of expense reimbursements to
average net assets		–				–			–			(0.03	)%		(0.62	)%
Ratio of net expenses to average net
assets		3.14	%			2.98	%		3.23	%		3.33	%		3.38	%
Ratio of net investment income (loss) to
average net assets		(2.19	)%			(2.28	)%		(2.36	)%		(2.13	)%		(2.05	)%
Portfolio turnover rate		146.73	%			178.19	%		205.45	%		201.50	%		257.74	%
*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 0.59% related to dividend expense on short positions and interest expense for the period ended 10/31/16
(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
- 81 -

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


Alger Dynamic Opportunities
Fund											Class Z
		Year ended				Year ended				Year ended				Year ended				Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013				10/31/2012
Net asset value, beginning of period		$	12.64			$	12.99			$	12.98			$	11.16			$	10.66
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾			(0.14	)			(0.16	)			(0.16	)			(0.13	)			(0.10	)
Net realized and unrealized gain (loss)
on investments			(0.33	)			0.55				0.97				1.95				0.75
Total from investment operations			(0.47	)			0.39				0.81				1.82				0.65
Distributions from net realized gains			(0.34	)			(0.74	)			(0.80	)			–				(0.15	)
Net asset value, end of period		$	11.83			$	12.64			$	12.99			$	12.98			$	11.16
Total return⁽ⁱⁱ⁾			(3.92	)%			3.16	%			6.52	%			16.29	%			6.34	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	44,947			$	46,966			$	29,828			$	20,504			$	17,158
Ratio of gross expenses to average
net assets			2.07%⁽ⁱⁱⁱ⁾				1.93%^(iv)				2.18	%^(v)			2.34%^(vi)				2.73%^(vii)
Ratio of expense reimbursements to
average net assets			–				–				–				–				(0.35	)%
Ratio of net expenses to average net
assets			2.07	%			1.93	%			2.18	%			2.34	%			2.38	%
Ratio of net investment income (loss) to
average net assets			(1.13	)%			(1.23	)%			(1.29	)%			(1.08	)%			(0.90	)%
Portfolio turnover rate			146.73	%			178.19	%			205.45	%			201.50	%			257.74	%
*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 0.58% related to dividend expense on short positions and interest expense for the period ended 10/31/16
(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
- 82 -

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


Alger Emerging Markets Fund								Class A
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	8.55		$	9.44		$	9.57		$	8.52		$	8.32
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾		(0.01	)		(0.03	)		(0.01	)		0.02			0.03
Net realized and unrealized gain (loss)
on investments		0.56			(0.86	)		(0.12	)		1.19			0.17
Total from investment operations		0.55			(0.89	)		(0.13	)		1.21			0.20
Dividends from net investment income		(0.01	)		–			–			(0.16	)		–
Net asset value, end of period	$	9.09		$	8.55		$	9.44		$	9.57		$	8.52
Total return⁽ⁱⁱ⁾		6.41	%		(9.43	)%		(1.36	)%		14.31	%		2.40	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	5,931		$	8,270		$	6,931		$	5,260		$	1,176
Ratio of gross expenses to average
net assets		2.43	%		2.71	%		2.99	%		3.49	%		4.43	%
Ratio of expense reimbursements to
average net assets		(0.83	)%		(1.01	)%		(1.29	)%		(1.79	)%		(2.73	)%
Ratio of net expenses to average net
assets		1.60	%		1.70	%		1.70	%		1.70	%		1.70	%
Ratio of net investment income (loss) to
average net assets		(0.10	)%		(0.31	)%		(0.13	)%		0.19	%		0.31	%
Portfolio turnover rate		65.84	%		84.93	%		98.25	%		103.59	%		150.09	%
*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.
- 83 -

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


Alger Emerging Markets Fund								Class C
	Year ended			Year ended			Year ended			Year ended			Year ended
	10/31/2016			10/31/2015			10/31/2014			10/31/2013			10/31/2012
Net asset value, beginning of period	$	8.30		$	9.23		$	9.42		$	8.37		$	8.23
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss⁽ⁱ⁾		(0.06	)		(0.09	)		(0.08	)		(0.06	)		(0.05	)
Net realized and unrealized gain (loss)
on investments		0.52			(0.84	)		(0.11	)		1.17			0.19
Total from investment operations		0.46			(0.93	)		(0.19	)		1.11			0.14
Dividends from net investment income		–			–			–			(0.06	)		–
Net asset value, end of period	$	8.76		$	8.30		$	9.23		$	9.42		$	8.37
Total return⁽ⁱⁱ⁾		5.54	%		(10.08	)%		(2.02	)%		13.34	%		1.70	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	2,849		$	2,581		$	2,151		$	484		$	151
Ratio of gross expenses to average
net assets		3.21	%		3.51	%		3.79	%		4.75	%		5.61	%
Ratio of expense reimbursements to
average net assets		(0.86	)%		(1.06	)%		(1.34	)%		(2.30	)%		(3.16	)%
Ratio of net expenses to average net
assets		2.35	%		2.45	%		2.45	%		2.45	%		2.45	%
Ratio of net investment income (loss) to
average net assets		(0.80	)%		(1.01	)%		(0.84	)%		(0.73	)%		(0.57	)%
Portfolio turnover rate		65.84	%		84.93	%		98.25	%		103.59	%		150.09	%
*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.
- 84 -

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


Alger Emerging Markets Fund											Class I
		Year ended				Year ended				Year ended				Year ended			Year ended
		10/31/2016				10/31/2015				10/31/2014				10/31/2013			10/31/2012
Net asset value, beginning of period		$	8.50			$	9.38			$	9.51			$	8.48		$	8.28
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)⁽ⁱ⁾			(0.01	)			(0.03	)			(0.02	)			0.01			0.01
Net realized and unrealized gain (loss)
on investments			0.55				(0.85	)			(0.11	)			1.19			0.19
Total from investment operations			0.54				(0.88	)			(0.13	)			1.20			0.20
Dividends from net investment income			–⁽ⁱⁱ⁾				–				–				(0.17	)		–
Net asset value, end of period		$	9.04			$	8.50			$	9.38			$	9.51		$	8.48
Total return⁽ⁱⁱⁱ⁾			6.39	%			(9.38	)%			(1.37	)%			14.26	%		2.42	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	14,006			$	11,814			$	11,451			$	10,218			$	8,712
Ratio of gross expenses to average
net assets			2.32	%			2.64	%			2.92	%			3.45	%		4.28	%
Ratio of expense reimbursements to
average net assets			(0.72	)%			(0.94	)%			(1.22	)%			(1.75	)%		(2.58	)%
Ratio of net expenses to average net
assets			1.60	%			1.70	%			1.70	%			1.70	%		1.70	%
Ratio of net investment income (loss) to
average net assets			(0.06	)%			(0.35	)%			(0.16	)%			0.06	%		0.15	%
Portfolio turnover rate			65.84	%			84.93	%			98.25	%			103.59	%		150.09	%
*See Notes to Financial Statements.*

(i) Amount was computed based on average shares outstanding during the period.
(ii) Amount was less than $0.005 per share.
(iii) Does not reflect the effect of sales charges, if applicable.
- 85 -

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

Alger Emerging Markets Fund						Class Z
									From 2/28/2014
								(commencement
			Year ended			Year ended		of operations) to
			10/31/2016		10/31/2015			10/31/2014⁽ⁱ⁾
Net asset value, beginning of period		$	8.56		$	9.41		$	9.24
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾			0.02			0.01			0.02
Net realized and unrealized gain (loss)
on investments			0.56			(0.86	)		0.15
Total from investment operations			0.58			(0.85	)		0.17
Dividends from net investment income			(0.02	)		–			–
Net asset value, end of period		$	9.12		$	8.56		$	9.41
Total return⁽ⁱⁱⁱ⁾			6.78	%		(9.03	)%		1.84	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	17,568			$	4,294		$	3,667
Ratio of gross expenses to average
net assets			2.07	%		2.55	%		3.35	%
Ratio of expense reimbursements to
average net assets			(0.82	)%		(1.30	)%		(2.10	)%
Ratio of net expenses to average net
assets			1.25	%		1.25	%		1.25	%
Ratio of net investment income (loss) to
average net assets			0.29	%		0.20	%		0.29	%
Portfolio turnover rate			65.84	%		84.93	%		98.25	%
*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.
- 86 -

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


Alger Emerging Markets Fund		Class Y
	From 5/9/2016
	(commencement
	of operations) to
	10/31/2016		⁽ⁱ⁾
Net asset value, beginning of period	$	7.94
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾		0.03
Net realized and unrealized gain on
investments		1.09
Total from investment operations		1.12
Net asset value, end of period	$	9.06
Total return⁽ⁱⁱⁱ⁾		14.11	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	114
Ratio of gross expenses to average
net assets		4.86	%
Ratio of expense reimbursements to
average net assets		(3.81	)%
Ratio of net expenses to average net
assets		1.05	%
Ratio of net investment income (loss) to
average net assets		0.73	%
Portfolio turnover rate		65.84	%
*See Notes to Financial Statements.*

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


Alger Emerging Markets Fund	Class Y-2
	From 5/9/2016
	(commencement
	of operations) to
	10/31/2016		⁽ⁱ⁾
Net asset value, beginning of period	$	7.94
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income⁽ⁱⁱ⁾		0.03
Net realized and unrealized gain on
investments		1.09
Total from investment operations		1.12
Net asset value, end of period	$	9.06
Total return⁽ⁱⁱⁱ⁾		14.11	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)	$	114
Ratio of gross expenses to average
net assets		4.86	%
Ratio of expense reimbursements to
average net assets		(3.87	)%
Ratio of net expenses to average net
assets		0.99	%
Ratio of net investment income (loss) to
average net assets		0.79	%
Portfolio turnover rate		65.84	%
*See Notes to Financial Statements.*

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 Mid
Cap Focus 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, Class Y shares, Class Y-2 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, Class Y shares, Class Y-2 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 pro rata
allocation of the Fund’s expense other than a Class Expense (not including advisory or
custodial fees or other expenses related to the management of the Fund’s assets) to a share
class.

The Alger Analyst Fund changed its name to Alger Mid Cap Focus Fund effective December
30, 2015.

The Alger Green Fund and Alger Mid Cap Focus Fund started offering Class Z shares on
October 14, 2016 and the Alger Emerging Markets Fund started offering Class Y shares and
Class Y-2 shares on May 9, 2016.

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.

The industry classifications of the Funds’ investments, as presented in the accompanying
Schedules of Investments, represent management’s belief as to the most meaningful
presentation of the classification of such investments. For Fund compliance purposes, the
Funds’ industry classifications refer to any one or more of the industry sub-classifications
- 89 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

used by one or more widely recognized market indexes or rating group indexes, with the
primary source being Global Industry Classification Standard (GICS).

Debt securities generally trade in the over-the-counter market. Debt securities with
remaining maturities of more than sixty days at the time of acquisition are valued on
the basis of last available bid prices or current market quotations provided by dealers
or pricing services. In determining the value of a particular investment, pricing services
may use certain information with respect to transactions in such investments, quotations
from dealers, pricing matrixes, market transactions in comparable investments, various
relationships observed in the market between investments and calculated yield measures
based on valuation technology commonly employed in the market for such investments.
Asset-backed and mortgage-backed securities are valued by independent pricing services
using models that consider estimated cash flows of each tranche of the security, establish a
benchmark yield and develop an estimated tranche-specific spread to the benchmark yield
based on the unique attributes of the tranche. Debt securities with a remaining maturity of
sixty days or less are valued at amortized cost which approximates market value.

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

Securities in which the 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)
- 90 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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
financial statements and from industry studies, market data, and market indicators such as
benchmarks and indices. Because of the inherent uncertainty and often limited markets for
restricted securities, the values may significantly differ from the values if there was an active
market.

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

While the Committee meets on an as-needed basis, the Committee generally meets
quarterly to review and evaluate the effectiveness of the procedures for making fair value
determinations. The Committee considers, among other things, the results of quarterly
back testing of the fair value model for foreign securities, pricing comparisons between
primary and secondary price sources, the outcome of price challenges put to the 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.
Premiums and discounts on debt securities purchased are amortized or accreted over the
lives of the respective securities

- 91 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

(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
Statements 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
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
- 92 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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
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,
2016.
(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
- 93 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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 Mid
Cap Focus Fund, Alger Dynamic Opportunities Fund and Alger Emerging Markets Fund
remains open for the tax years 2013-2016. Management does not believe there are any
uncertain tax positions that require recognition of a tax liability.

(j) Allocation Methods: The Trust accounts separately for the assets, liabilities and operations
of each Fund. Expenses directly attributable to each Fund are charged to that Fund’s
operations; expenses which are applicable to all Funds are allocated among them based on
net assets. Income, realized and unrealized gains and losses, and expenses of each Fund
are allocated among the Fund’s classes based on relative net assets, with the exception of
distribution fees, transfer agency fees, and shareholder servicing and related fees.
(k) Estimates: These financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America, which require using estimates
and assumptions that affect the reported amounts therein. Actual results may differ from
those estimates. All such estimates are of normal recurring nature.
NOTE 3 — Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory Fees: Fees incurred by 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, 2016, is set forth below under the heading “Actual Rate.”:


	Tier 1		Tier 2		Tier 3		Tier 4		Tier 5		Actual Rate
Alger Spectra
Fund^(a)	0.900	%	0.750	%	0.650	%	0.550	%	0.450	%	0.778	%
Alger Green Fund^(b)	0.710		0.650		—		—		—		0.710
Alger Mid Cap
Focus 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

- 94 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

(a) Tier 1 rate is paid on assets up to $2 billion, Tier 2 rate is paid on assets between $2 and
$4 billion, Tier 3 rate is paid on assets between $4 and $6 billion, Tier 4 rate is paid on assets
between $6 and $8 billion, and Tier 5 rate is paid on assets in excess of $8 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, 2017, for Alger Green Fund Class A and I shares, Alger Mid Cap Focus Fund
Class A, C and I shares, Alger Dynamic Fund Class A, C and Z shares and Alger Emerging
Markets Class A, C, and I shares, effective through October 13, 2017, for Alger Green
Fund Class Z, and Alger Mid Cap Focus Fund Class Z, and effective through May 8, 2017
for Alger Emerging Markets Fund Class Y and Class Y-2 shares 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
											OCTOBER 31,
	A		C		I		Y	Y-2	Z			2016
Alger Green Fund	1.35	%	–		1.35	%	–	–	0.90	%		$	1,513
Alger Mid Cap Focus Fund*	1.20		1.95	%	1.20		–	–	0.99				108,257
Alger Dynamic Opportunities Fund**	1.95		2.70		–		–	–	1.60				—
Alger Emerging Markets Fund***	1.55		2.30		1.55		1.05%	0.99%	1.25				236,914

* Prior to March 1, 2016, the expense cap for the Alger Mid Cap Focus Fund Class A and
Class I was 1.50%.

** Prior to March 1, 2016, the expense cap for the Alger Dynamic Opportunities Fund Class
A was 2.00%, Class C was 2.75% and Class Z was 1.75%.

*** Prior to March 1, 2016, the expense cap for the Alger Emerging Markets Fund Class A
was 1.70%, Class C was 2.45%, Class I was 1.70%.

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.

In addition to the fee cap, Alger Management voluntarily reduced its advisory fee for the
Alger Emerging Markets Fund by $83,000 for the year ended October 31, 2016.

(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
- 95 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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, 2016, 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	$	8,233	$	160,563
Alger Green Fund		1,230		435
Alger Mid Cap Focus Fund		–		1,269
Alger Dynamic Opportunities Fund		–		8,975
Alger Emerging Markets Fund		30		1,495

(e) Brokerage Commissions: During the year ended October 31, 2016, Alger Spectra Fund,
Alger Green Fund, Alger Mid Cap Focus Fund, Alger Dynamic Opportunities Fund and
Alger Emerging Markets Fund paid Alger Inc., an affiliate of Alger Management, $1,744,314,
$6,664, $, $3,637, $34,082, and $144 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
shares and 0.01% of their respective average daily net assets of the Class I shares, Class Y
shares, Class Y-2 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, 2016, Alger Management charged back to Alger Spectra Fund, Alger
Green Fund, Alger Mid Cap Focus Fund, Alger Dynamic Opportunities Fund and Alger
Emerging Markets Fund $1,964,767, $44,134, $412, $21,583 and $9,167, respectively, for
these services, which are included in transfer agent fees and expenses in the accompanying
Statements of Operations.
- 96 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

(g) Trustees’ Fees: From November 1, 2015 through February 29, 2016, each trustee who
is not affiliated with Alger Management or its affiliates (each, an “Independent Trustee”)
received a fee of $25,875 for each board 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 received 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
received a fee of $2,500 for each Audit Committee meeting attended to a maximum of
$10,000 per annum, paid pro rata by each fund in the Alger Fund Complex.
Effective March 1, 2016, each Independent Trustee receives a fee of $27,250 for each board
meeting attended, to a maximum of $109,000 per annum, paid pro rata by each fund in
the Alger Fund Complex, plus travel expenses incurred for attending the meeting. The
Independent Trustee appointed as Chairman of the Board of Trustees receives additional
compensation of $26,000 per annum paid pro rata by each fund in the Alger Fund Complex.
Additionally, each member of the Audit Committee receives a fee of $2,500 for each Audit
Committee meeting attended to a maximum of $10,000 per annum, paid pro rata by each
fund in the Alger Fund Complex.

(h) Interfund Trades: The Funds engaged in purchase and sale transactions with funds that
have a common investment adviser. For the year ended October 31, 2016, these purchases
and sales were as follows:


	Purchases		Sales	Realized Gain/(loss)

Alger Spectra Fund	–	$	196,014		$	1,361

(i) 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,
2016.
During the year ended October 31, 2016, Alger Spectra Fund and Alger Dynamic
Opportunities Fund incurred interfund loan interest expense of $13,499 and $1,322
respectively and Alger Spectra Fund earned interfund loan interest income of $10,255.

(j) Other Transactions with Affiliates: Certain officers of the Trust are directors and officers
of Alger Management and Alger Inc. At October 31, 2016, Alger Management and its
affiliated entities owned the following shares:


			SHARE CLASS
	A	C	I	Y		Y-2		Z
Alger Spectra Fund	1,641,053	15,759	15,584		—		—	99,800

- 97 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


				SHARE CLASS
		A	C	I	Y	Y-2	Z
Alger Green Fund		—	—	—	—	—	10,870
Alger Mid Cap Focus Fund	436,253		15,690	135,923	—	—	8,889
Alger Dynamic Opportunities Fund		—	108	—	—	—	1,911,916
Alger Emerging Markets Fund		103	101	1,008,139	12,598	12,598	125,903

NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by the Trust, other than U.S.
Government securities, short-term securities, purchased options and short sales, for the
year ended October 31, 2016:


		PURCHASES		SALES
Alger Spectra Fund	$	5,887,902,901	$	6,175,704,611
Alger Green Fund		14,006,685		26,873,250
Alger Mid Cap Focus Fund		8,556,399		9,191,810
Alger Dynamic Opportunities Fund		114,765,247		136,074,179
Alger Emerging Markets Fund		30,414,399		19,090,466

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(i). For the year ended October 31, 2016, the Funds had the following
borrowings:


	AVERAGE DAILY		WEIGHTED AVERAGE
		BORROWING		INTEREST RATE
Alger Spectra Fund	$	1,327,015		1.59	%
Alger Dynamic Opportunities Fund		145,538		1.61

The highest amount borrowed during the year ended October 31, 2016 for each Fund was
as follows:


	HIGHEST BORROWING
Alger Spectra Fund	$	49,564,380
Alger Dynamic Opportunities Fund		4,991,353

- 98 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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:


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Spectra Fund
Class A:
Shares sold	22,459,638		$	376,448,174		39,752,696		$	723,575,458
Shares converted from Class C	—			—		789			13,707
Dividends reinvested	7,841,338			134,790,655		11,977,865			207,942,485
Shares redeemed	(55,164,586	)	(949,972,686		)	(26,642,149	)	(480,791,797		)
Net increase (decrease)	(24,863,610	)	$	(438,733,857	)	25,089,201		$	450,739,853
Class C:
Shares sold	11,405,489		$	179,771,128		17,773,236		$	306,898,662
Shares converted to Class A	—			—		(829	)		(13,707	)
Dividends reinvested	3,746,272			60,577,530		4,064,447			67,185,473
Shares redeemed	(15,006,117	)	(236,215,817		)	(5,784,391	)	(100,117,136		)
Net increase	145,644		$	4,132,841		16,052,463		$	273,953,292
Class I:
Shares sold	26,907,311		$	453,822,973		30,392,263		$	553,225,190
Dividends reinvested	5,773,974			100,120,707		7,049,801			123,371,317
Shares redeemed	(28,268,868	)	(473,296,328		)	(23,640,599	)	(430,390,075		)
Net increase	4,412,417		$	80,647,352		13,801,465		$	246,206,432
Class Z:
Shares sold	51,225,696		$	892,038,721		24,122,438		$	443,811,354
Dividends reinvested	5,203,469			90,748,498		4,088,271			71,708,282
Shares redeemed	(32,957,491	)	(553,713,537		)	(12,467,668	)	(228,613,779		)
Net increase	23,471,674		$	429,073,682		15,743,041		$	286,905,857

- 99 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Green Fund
Class A:
Shares sold	462,409		$	4,132,579		848,336		$	7,874,298
Dividends reinvested	42,735			397,861		87,670			790,783
Shares redeemed	(735,643	)		(6,721,779	)	(745,408	)		(6,861,948	)
Net increase (decrease)	(230,499	)	$	(2,191,339	)	190,598		$	1,803,133
Class C:
Shares sold	79,419		$	671,004		122,584		$	1,081,809
Dividends reinvested	8,206			72,049		15,308			131,343
Shares redeemed	(109,021	)		(921,632	)	(68,828	)		(602,232	)
Net increase (decrease)	(21,396	)	$	(178,579	)	69,064		$	610,920
Class I:
Shares sold	1,219,128		$	10,977,360		1,046,757		$	9,701,664
Dividends reinvested	63,193			587,695		126,542			1,140,144
Shares redeemed	(2,751,331	)		(24,524,569	)	(1,178,515	)		(10,860,854	)
Net decrease	(1,469,010	)	$	(12,959,514	)	(5,216	)	$	(19,046	)
Class Z:
Shares sold	10,870		$	100,000		—		$	—
Net increase	10,870		$	100,000		—		$	—

Alger Mid Cap Focus Fund
Class A:
Shares sold	18,521		$	218,620		23,459		$	324,232
Dividends reinvested	27,796			338,004		36,998			484,675
Shares redeemed	(19,040	)		(215,100	)	(13,283	)		(178,116	)
Net increase	27,277		$	341,524		47,174		$	630,791
Class C:
Shares sold	7,211		$	77,824		770		$	10,000
Dividends reinvested	1,555			17,866		2,094			26,114
Shares redeemed	(2,569	)		(27,765	)	(3,599	)		(45,751	)
Net increase (decrease)	6,197		$	67,925		(735	)	$	(9,637	)
Class I:
Shares sold	11,104		$	128,273		5,526		$	72,336
Dividends reinvested	7,127			86,456		9,914			129,474
Shares redeemed	(28,896	)		(346,428	)	(7,105	)		(96,943	)
Net increase (decrease)	(10,665	)	$	(131,699	)	8,335		$	104,867
Class Z:
Shares sold	8,889		$	100,000		—		$	—
Net increase	8,889		$	100,000		—		$	—

- 100 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


	FOR THE YEAR ENDED					FOR THE YEAR ENDED
	OCTOBER 31, 2016					OCTOBER 31, 2015
	SHARES			AMOUNT		SHARES			AMOUNT
Alger Dynamic Opportunities Fund
Class A:
Shares sold	728,813		$	8,593,757		4,084,063		$	51,945,889
Dividends reinvested	92,399			1,126,347		184,459			2,266,955
Shares redeemed	(3,650,521	)		(44,124,416	)	(2,624,269	)		(33,370,150	)
Net increase (decrease)	(2,829,309	)	$	(34,404,312	)	1,644,253		$	20,842,694
Class C:
Shares sold	225,463		$	2,559,720		543,957		$	6,594,072
Dividends reinvested	24,644			288,086		29,847			354,289
Shares redeemed	(452,884	)		(5,078,536	)	(193,562	)		(2,330,099	)
Net increase (decrease)	(202,777	)	$	(2,230,730	)	380,242		$	4,618,262
Class Z:
Shares sold	3,489,434		$	42,763,119		1,808,583		$	23,361,291
Dividends reinvested	152,963			1,892,152		142,127			1,765,215
Shares redeemed	(3,556,489	)		(42,344,017	)	(532,142	)		(6,693,453	)
Net increase	85,908		$	2,311,254		1,418,568		$	18,433,053

Alger Emerging Markets Fund
Class A:
Shares sold	352,921		$	2,953,303		533,918		$	4,935,891
Dividends reinvested	578			4,778		—			—
Shares redeemed	(668,231	)		(5,552,598	)	(300,875	)		(2,646,959	)
Net increase (decrease)	(314,732	)	$	(2,594,517	)	233,043		$	2,288,932
Class C:
Shares sold	121,899		$	993,807		154,495		$	1,360,751
Shares redeemed	(107,944	)		(864,186	)	(76,427	)		(660,491	)
Net increase	13,955		$	129,621		78,068		$	700,260
Class I:
Shares sold	369,492		$	3,112,644		237,045		$	2,083,456
Dividends reinvested	488			4,013		—			—
Shares redeemed	(210,490	)		(1,649,529	)	(67,331	)		(585,642	)
Net increase	159,490		$	1,467,128		169,714		$	1,497,814
Class Y:
Shares sold	12,598		$	100,000		—		$	—
Net increase	12,598		$	100,000		—		$	—
Class Y-2:
Shares sold	12,598		$	100,000		—		$	—
Net increase	12,598		$	100,000		—		$	—
Class Z:
Shares sold	1,782,637		$	15,311,270		381,907		$	3,463,640
Dividends reinvested	1,860			15,394		—			—
Shares redeemed	(359,635	)		(2,918,791	)	(270,076	)		(2,417,251	)
Net increase	1,424,862		$	12,407,873		111,831		$	1,046,389

- 101 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

(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. Since March 1, 2015, the redemption fee is
no longer imposed.
NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2016 and the year
ended October 31, 2015 were as follows:


	FOR THE YEAR ENDED		FOR THE YEAR ENDED
	OCTOBER 31, 2016		OCTOBER 31, 2015
Alger Spectra Fund
Distributions paid from:
Ordinary Income		—	$	34,698,984
Long-term capital gain	$	460,707,023		528,595,355
Total distributions paid	$	460,707,023	$	563,294,339

Alger Green Fund
Distributions paid from:
Ordinary Income		—		—
Long-term capital gain		1,122,971		2,195,126
Total distributions paid	$	1,122,971	$	2,195,126

Alger Mid Cap Focus Fund
Distributions paid from:
Ordinary Income		—		79,338
Long-term capital gain		451,889		583,838
Total distributions paid	$	451,889	$	663,176

Alger Dynamic Opportunities Fund
Distributions paid from:
Ordinary Income		—		—
Long-term capital gain		3,332,249		4,408,108
Total distributions paid	$	3,332,249	$	4,408,108

Alger Emerging Markets Fund
Distributions paid from:
Ordinary Income		24,394		—
Long-term capital gain		—		—
Total distributions paid	$	24,394		—

As of October 31, 2016 the components of accumulated gains (losses) on a tax basis were
as follows:

- 102 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Spectra Fund
Undistributed ordinary income		—
Undistributed long-term gains	$	102,502,427
Net accumulated earnings		102,502,427
Capital loss carryforwards		—
Late year ordinary income losses		(8,041,051	)
Net unrealized appreciation		572,554,872
Total accumulated earnings	$	667,016,248

Alger Green Fund
Undistributed ordinary income		—
Undistributed long-term gains		2,579,793
Net accumulated earnings		2,579,793
Capital loss carryforwards		—
Late year ordinary income losses		(42,150	)
Net unrealized appreciation		18,782,947
Total accumulated earnings	$	21,320,590

Alger Mid Cap Focus Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(113,611	)
Late year ordinary income losses		(5,276	)
Net unrealized depreciation		(50,232	)
Total accumulated losses	$	(169,119	)

Alger Dynamic Opportunities Fund
Undistributed ordinary income		—
Undistributed long-term gains		247,957
Net accumulated earnings		247,957
Capital loss carryforwards		—
Late year ordinary income losses		(1,202,959	)
Net unrealized appreciation		826,671
Total accumulated losses	$	(128,331	)

- 103 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Emerging Markets Fund
Undistributed ordinary income		—
Undistributed long-term gains		—
Net accumulated earnings		—
Capital loss carryforwards		(5,105,361	)
Net unrealized appreciation		3,966,228
Total accumulated losses	$	(1,139,133	)

At October 31, 2016, 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.


	Alger Mid Cap		Alger Emerging
Expiration Dates		Focus Fund	Markets Fund
POST ACT	$	113,611	$	5,105,361
Total		113,611		5,105,361

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, 2016:


Alger Spectra Fund
Accumulated undistributed net investment income (accumulated loss)	$	15,159,550
Accumulated net realized gain (accumulated realized loss)	$	6,502,307
Paid-in Capital	$	(21,661,857	)

Alger Green Fund
Accumulated undistributed net investment income (accumulated loss)	$	(32,644	)
Accumulated net realized gain (accumulated realized loss)	$	66,420
Paid-in Capital	$	(33,776	)

- 104 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Mid Cap Focus Fund
Accumulated undistributed net investment income (accumulated loss)	$	73,578
Accumulated net realized gain (accumulated realized loss)	$	14,057
Paid-in Capital	$	(87,635	)

Alger Dynamic Opportunities Fund
Accumulated undistributed net investment income (accumulated loss)	$	1,398,644
Accumulated net realized gain (accumulated realized loss)	$	117,150
Paid-in Capital	$	(1,515,794	)

Alger Emerging Markets Fund
Accumulated undistributed net investment income (accumulated loss)	$	86,624
Accumulated net realized gain (accumulated realized loss)	$	(79,607	)
Paid-in Capital	$	(7,017	)

NOTE 8 — Fair Value Measurements
The following is a summary of the inputs used as of October 31, 2016 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	$	864,252,862	$	864,252,862			—		—*
Consumer Staples		374,555,789		374,555,789			—		—
Energy		93,597,850		93,597,850			—		—
Financials		82,706,322		82,706,322			—		—
Health Care		791,388,480		791,388,480			—		—
Industrials		397,534,132		397,534,132			—		—
Information Technology		2,241,545,127			2,238,880,693		—		2,664,434
Materials		99,977,794		99,977,794			—		—
Telecommunication Services		21,878,342		21,878,342			—		—
TOTAL COMMON STOCKS	$	4,967,436,698	$	4,964,772,264			—	$	2,664,434
CORPORATE BONDS
Consumer Discretionary		838,287				—	—		838,287
MASTER LIMITED PARTNERSHIP
Financials		40,538,488		40,538,488			—		—
PREFERRED STOCKS
Consumer Discretionary		2,221,727				—	—		2,221,727	*
Health Care		21,524,015				—	—	21,524,015
Information Technology		12,282,075				—	—	12,282,075
TOTAL PREFERRED STOCKS	$	36,027,817				—	—	$	36,027,817

- 105 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Spectra Fund			TOTAL FUND				LEVEL 1	LEVEL 2			LEVEL 3
REAL ESTATE INVESTMENT TRUST
Financials			29,574,724			29,574,724			—		—
Real Estate			45,124,216			45,124,216			—		—
TOTAL REAL ESTATE
INVESTMENT TRUST		$		74,698,940		$	74,698,940		—		—
SPECIAL PURPOSE VEHICLE
Financials				2,821,272			—		—		2,821,272
WARRANTS
Consumer Discretionary				821,521			—		—		821,521
TOTAL INVESTMENTS IN
SECURITIES	$	5,123,183,023			$	5,080,009,692			—	$	43,173,331
SECURITIES SOLD SHORT
COMMON STOCKS
Consumer Discretionary			47,689,763			47,689,763			—		—
Energy			32,845,161			32,845,161			—		—
Financials				5,787,257			5,787,257		—		—
Health Care			18,608,803			18,608,803			—		—
Industrials			25,536,045			25,536,045			—		—
Information Technology			22,651,068			22,651,068			—		—
TOTAL COMMON STOCKS		$		153,118,097		$	153,118,097		—		—

*Alger Spectra Fund’s shares of Choicestream Inc. common and preferred stock are
classified as a Level 3 investment and are fair valued at zero as of October 31, 2016.


Alger Green Fund		TOTAL FUND				LEVEL 1	LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	$	15,316,155		$	15,316,155		—		—**
Consumer Staples			3,941,656			3,941,656	—		—
Financials			1,404,503			1,404,503	—		—
Health Care			6,528,957			6,528,957	—		—
Industrials			11,313,249			11,313,249	—		—
Information Technology		21,907,908			21,907,908		—		—
Materials			772,440			772,440	—		—
Telecommunication Services			1,006,012			1,006,012	—		—
Utilities			965,592			965,592	—		—
TOTAL COMMON STOCKS		$	63,156,472		$	63,156,472	—		—
CORPORATE BONDS
Consumer Discretionary			10,518			—	—		10,518
PREFERRED STOCKS
Consumer Discretionary			41,193			—	—		41,193	**
WARRANTS
Consumer Discretionary			10,308			—	—		10,308
TOTAL INVESTMENTS IN
SECURITIES		$	63,218,491		$	63,156,472	—	$	62,019

**Alger Green Fund’s shares of Choicestream Inc. common and preferred stock are
classified as a Level 3 investment and are fair valued at zero as of October 31, 2016.

- 106 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Mid Cap Focus Fund		TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	$		1,546,051	$	1,546,051		—		—
Consumer Staples			233,686		233,686		—		—
Financials			121,663		121,663		—		—
Health Care			1,359,392		1,359,392		—		—
Industrials			1,408,158		1,408,158		—		—
Information Technology			1,628,176		1,628,176		—		—
Materials			424,751		424,751		—		—
TOTAL COMMON STOCKS	$		6,721,877	$	6,721,877		—		—
MASTER LIMITED PARTNERSHIP
Financials			102,948		102,948		—		—
REAL ESTATE INVESTMENT TRUST
Financials			177,969		177,969		—		—
Real Estate			268,329		268,329		—		—
TOTAL REAL ESTATE
INVESTMENT TRUST	$		446,298	$	446,298		—		—
TOTAL INVESTMENTS IN
SECURITIES	$		7,271,123	$	7,271,123		—		—


Alger Dynamic Opportunities Fund		TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	$		9,595,107	$	9,595,107		—		—
Consumer Staples			4,139,848		4,139,848		—		—
Energy			972,810		972,810		—		—
Financials			3,355,573		3,355,573		—		—
Health Care		12,413,525		12,413,525			—		—
Industrials			2,505,539		2,505,539		—		—
Information Technology			24,211,127	23,798,439			362,152		50,536
TOTAL COMMON STOCKS	$		57,193,529	$	56,780,841	$	362,152	$	50,536
MASTER LIMITED PARTNERSHIP
Financials			1,031,461		1,031,461		—		—
PREFERRED STOCKS
Health Care			473,290		—		—		473,290
Information Technology			232,950		—		—		232,950
TOTAL PREFERRED STOCKS	$		706,240		—		—	$	706,240
PURCHASED OPTIONS
Information Technology			13,601		13,601		—		—
Market Indices			62,000		62,000		—		—
TOTAL PURCHASED OPTIONS	$		75,601	$	75,601		—		—
REAL ESTATE INVESTMENT TRUST
Financials			483,834		483,834		—		—
Real Estate			2,869,209		2,869,209		—		—
TOTAL REAL ESTATE
INVESTMENT TRUST	$		3,353,043	$	3,353,043		—		—

- 107 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


Alger Dynamic Opportunities Fund		TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
RIGHTS
Health Care			—		—		—		—***
SPECIAL PURPOSE VEHICLE
Financials			165,437		—		—		165,437
U.S. GOVERNMENT AGENCY OBLIGATIONS (EXCLUDING MORTGAGE-BACKED)
Financials		29,996,464			—	29,996,464			—
TOTAL INVESTMENTS IN
SECURITIES	$		92,521,775	$	61,240,946	$	30,358,616	$	922,213
SECURITIES SOLD SHORT
COMMON STOCKS
Consumer Discretionary			4,037,396		4,037,396		—		—
Consumer Staples			187,138		187,138		—		—
Energy			731,880		731,880		—		—
Financials			1,916,762		1,916,762		—		—
Health Care			2,910,491		2,910,491		—		—
Industrials			1,655,460		1,655,460		—		—
Information Technology			4,421,503		4,421,503		—		—
Market Indices			1,083,235		1,083,235		—		—
Materials			260,454		260,454		—		—
Utilities			278,138		278,138		—		—
TOTAL COMMON STOCKS	$		17,482,457	$	17,482,457		—		—
REAL ESTATE INVESTMENT TRUST
Financials			687,349		687,349		—		—
TOTAL SECURITIES SOLD SHORT $			18,169,806	$	18,169,806		—		—

***Alger Dynamic Opportunities Fund’s holdings of Adolor Corp.’s rights are classified as
a Level 3 investment and fair valued at zero as of October 31, 2016.


Alger Emerging Markets Fund	TOTAL FUND			LEVEL 1		LEVEL 2		LEVEL 3
COMMON STOCKS
Consumer Discretionary	$	5,072,210	$	1,024,101	$	4,048,109		—
Consumer Staples		3,047,901		943,938		2,103,963		—
Energy		1,472,019		—		1,472,019		—
Financials		8,186,016		2,886,993		5,299,023		—
Health Care		2,589,922		343,057		2,246,865		—
Industrials		3,307,577		842,778		2,464,799		—
Information Technology		9,666,088		2,581,202		7,084,886		—
Materials		3,411,545		848,969		2,562,576		—
Telecommunication Services		1,243,115		281,579		961,536		—
Utilities		713,572		377,702		335,870		—
TOTAL COMMON STOCKS	$	38,709,965	$	10,130,319	$	28,579,646		—
PREFERRED STOCKS
Energy		396,362		396,362		—		—
SPECIAL PURPOSE VEHICLE
Financials		44,932		—		—		44,932
TOTAL INVESTMENTS IN
SECURITIES	$	39,151,259	$	10,526,681	$	28,579,646	$	44,932

- 108 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Spectra Fund	Common Stocks
Opening balance at November 1, 2015	$	3,209,511
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		(545,077	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		2,664,434
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 10/31/2016	$	(545,077	)

Alger Spectra Fund	Corporate Bonds
Opening balance at November 1, 2015	$	–
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		837,451
Purchases and sales		–
Purchases		836
Sales		–
Closing balance at October 31, 2016		838,287
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 10/31/2016	$	837,451

- 109 -

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, 2015	$	36,227,853
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		(200,036	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		36,027,817
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 10/31/2016	$	(200,036	)

	Special Purpose
Alger Spectra Fund		Vehicle
Opening balance at November 1, 2015	$	2,715,111
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		106,161
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		2,821,272
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 10/31/2016	$	106,161

- 110 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Spectra Fund		Warrants
Opening balance at November 1, 2015	$	–
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		(15,927	)
Purchases and sales		–
Purchases		837,448
Sales		–
Closing balance at October 31, 2016		821,521
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 10/31/2016	$	(15,927	)

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Green Fund	Common Stocks
Opening balance at November 1, 2015	$	1,520
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		(1,520	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		–
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 10/31/2016	$	(1,520	)

- 111 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Green Fund	Corporate Bonds
Opening balance at November 1, 2015	$	–
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		10,507
Purchases and sales		–
Purchases		11
Sales		–
Closing balance at October 31, 2016		10,518
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 10/31/2016	$	10,507

Alger Green Fund	Preferred Stocks
Opening balance at November 1, 2015	$	42,434
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		(1,241	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		41,193
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 10/31/2016	$	(1,241	)

- 112 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Green Fund		Warrants
Opening balance at November 1, 2015	$	–
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		(200	)
Purchases and sales		–
Purchases		10,508
Sales		–
Closing balance at October 31, 2016		10,308
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 10/31/2016	$	(200	)

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Dynamic Opportunities Fund	Common Stocks
Opening balance at November 1, 2015	$	59,454
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		(8,918	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		50,536
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 10/31/2016	$	(8,918	)

- 113 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
Alger Dynamic Opportunities Fund	Preferred Stocks
Opening balance at November 1, 2015	$	892,192
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		(185,952	)
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		706,240
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 10/31/2016	$	(185,952	)

Alger Dynamic Opportunities Fund		Rights
Opening balance at November 1, 2015	$	–*
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		–
Sales		–
Closing balance at October 31, 2016		–
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 10/31/2016	$	–*
*Alger Dynamic Opportunities Fund’s Level 3 rights are fair valued at zero at the beginning and
ending of the period.

- 114 -

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, 2015	$	159,212
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		6,225
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		165,437
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 10/31/2016	$	6,225

		FAIR VALUE
	MEASUREMENTS
	USING SIGNIFICANT
	UNOBSERVABLE
	INPUTS (LEVEL 3)
	Special Purpose
Alger Emerging Markets Fund		Vehicle
Opening balance at November 1, 2015	$	43,241
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		1,691
Purchases and sales		–
Purchases		–
Sales		–
Closing balance at October 31, 2016		44,932
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 10/31/2016	$	1,691

The following table provides quantitative information about our Level 3 fair value
measurements of our investments as of October 31, 2016. 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.
- 115 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

The table below is not intended to be all-inclusive, but rather provides information on the
Level 3 inputs as they relate to our fair value measurements.


		Fair Value
		October 31,	Valuation	Unobservable		Weighted
		2016	Methodology	Input	Input/Range	Average Inputs
Alger Spectra Fund
Common Stocks	$	-	Income	Discount Rate	40%	N/A
			Approach
Common Stocks		2,664,434	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3Years
Preferred Stocks		2,221,727	Income	Discount Rate	40%	N/A
			Approach
Preferred Stocks		11,764,528	Income	Discount Rate	35.5-39.5%	N/A
			Approach
Preferred Stocks		12,282,075	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3Years
Preferred Stocks		9,759,487	Market Approach	Scenario	80 to 100%	N/A
				Probability
				Time to Exit	1.0-2.5Years
				Volatility	67.8%
Warrants		821,521	Income	Discount Rate	40%	N/A
			Approach
Corporate Bonds		838,287	Income	Discount Rate	40%	N/A
			Approach
Special Purpose Vehicle		2,821,272	Market Approach	Revenue Multiple	2.6x-3.1x	N/A

Alger Green Fund
Common Stocks	$	-	Income	Discount Rate	40%	N/A
			Approach
Preferred Stocks		41,193	Income	Discount Rate	40%	N/A
			Approach
Warrants		10,308	Income	Discount Rate	40%	N/A
			Approach
Corporate Bonds		10,518	Income	Discount Rate	40%	N/A
			Approach
Alger Dynamic Opportunities Fund
Common Stocks	$	50,536	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability
				Time to Exit	1.3-3.3Years
Preferred Stocks		232,950	Income	Revenue Multiple	10x-18x	N/A
			Approach	Discount Rate	20%
				Scenario	10-50%
				Probability

- 116 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


			Time to Exit	1.3-3.3 Years
Preferred Stocks	304,223	Income	Discount Rate	20.5-39.5%	30.08	%
		Approach


Preferred Stocks	169,067	Market Approach	Scenario	80 to 100%	N/A
			Probability
			Time to Exit	1.0-2.5 Years
			Volatility	67.8%
Rights	-	Income	Probability of	0%
		Approach	Success
Special Purpose Vehicle	165,437	Market Approach	Revenue Multiple	2.6x-3.1x	N/A

Alger Emerging Markets Fund
Special Purpose Vehicle	44,932	Market Approach	Revenue Multiple	2.6x-3.1x	N/A

The significant unobservable inputs used in the fair value measurement of the Fund’s
securities are revenue and EBITDA multiples, discount rates, and the probabilities of
success of certain outcomes. Significant increases and decreases in these inputs in isolation
and interrelationships between those inputs could result in significantly higher or lower fair
value measurements than those noted in the table above.

On October 31, 2016, there were no transfers of securities between Level 1 and Level 2.

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, 2016, 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	$	152,679,641		$	85,511,422		$	67,168,219		—
Alger Green Fund			2,149,409			—		2,149,409		—
Alger Mid Cap Focus Fund			734,722			—		734,722		—
Alger Dynamic Opportunities Fund			8,304,197		6,702,362			1,601,835		—
Alger Emerging Markets Fund			1,612,528			499,398		1,113,130		—

NOTE 9 — Derivatives:
Financial Accounting Standards Board Accounting Standards Codification 815 – Derivatives
and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for
using derivatives, quantitative disclosures about fair value amounts of and gains and losses
on derivative instruments, and disclosures about credit-risk-related contingent features in
derivative agreements.

Options—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
- 117 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

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, 2016, 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.


	ASSET DERIVATIVES 2016			LIABILITY DERIVATIVES 2016
Alger Dynamic Opportunities Fund
Derivatives not accounted	Balance Sheet			Balance Sheet
for as hedging instruments	Location		Fair Value	Location	Fair Value
	Investments in			-	$ –
Purchased Put Options	Securities, at value	$	62,000
	Investments in			-	–
Purchased Call Options	Securities, at value		13,601
Total		$	75,601		$ -

For the year ended October 31, 2016, Alger Dynamic Opportunities Fund had option
purchases of $513,731 and option sales of $201,991. The effect of derivative instruments
on the accompanying Statement of Operations for the year ended October 31, 2016, is as
follows:


NET REALIZED LOSS ON INVESTMENTS AND OPTIONS
Alger Dynamic Opportunities Fund
Derivatives not accounted for as hedging instruments		Options
Purchased Options	$	(160,265	)
Total	$	(160,265	)

- 118 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)


NET CHANGE IN UNREALIZED DEPRECIATION ON INVESTMENTS, OPTIONS
Alger Dynamic Opportunities Fund
Derivatives not accounted for as hedging instruments		Options
Purchased Options	$	(75,874	)
Written Options		—
Total	$	(75,874	)

NOTE 10 — Principal Risks:
As of October 31, 2016, the Funds invested a significant portion of their assets in securities
in the financials and information technology sectors. Changes in economic conditions
affecting such sectors would have a greater impact on the Funds and could affect the value,
income and/or liquidity of positions in such securities.

In the normal course of business, the Funds invest in securities and enter 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 Funds may decline in response to certain events, including those directly involving the
issuers whose securities are owned by the Funds; conditions affecting the general economy;
overall market changes; local, regional or global political, social or economic instability; and
currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may
be exposed to counterparty credit risk, or the risk that an entity with which the Funds have
unsettled or open transactions may fail to or be unable to perform on its commitments. The
Funds manage counterparty credit risk by entering into transactions only with counterparties
that they believe have the financial resources to honor their obligations and by monitoring
the financial stability of those counterparties. Financial assets, which potentially expose
the Funds to market, issuer and counterparty credit risks, consist principally of financial
instruments and receivables due from counterparties. The extent of the Funds’ 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 Funds.

The Funds invest in companies that are not yet available in the public markets and that are
accessible only through private equity investments. The Funds may also invest in venture
capital or private equity funds, direct private equity investments and other investments that
may have limited liquidity. There may be no trading market for these securities, and their sale
or transfer be limited or prohibited by contract or legal requirements, or may be dependent
on an exit strategy, such as an initial public offering or the sale of a business, which may
not occur, or may be dependent on managerial assistance provided by other investors and
their willingness to provide additional financial support. The securities may be able to be
liquidated, if at all, at disadvantageous prices. As a result, the Funds may be required to hold
these positions for several years, if not longer, regardless of adverse price movements. Such
positions may cause the Funds to be less liquid than would otherwise be the case.

- 119 -

THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 11 — Affiliated Securities:
The issuers of the securities listed below are deemed to be affiliates of the Funds because
the Funds or their affiliates owned 5% or more of the issuer’s voting securities during all
or part of the year ended October 31, 2016. Purchase and sale transactions and dividend
income earned during the period were as follows:


	Shares/			Shares/Par
	Par at			at		Realized		Value at
	October	Purchases/	Sales/	October		Gain		October 31,
Security	31, 2015	Conversion	Conversion	31, 2016	Interest Income	(Loss)		2016
Alger Spectra Fund
Common Stocks
Choicestream, Inc.*	178,292	–	–	178,292	–	–	$	0
Preferred Stocks
Choicestream,
Inc.Series A and B*	5,303,067	–	–	5,303,067	–	–		2,221,727
Prosetta Biosciences,
Inc., Series D*	2,912,012	—	–	2,912,012	–	–		11,764,528
Corporate Bonds
Choicestream, Inc.,
11.0%, 8/05/18	–	838,287	–	838,287	7,579	–		838,287
Warrants
Choicestream, Inc.,
6/22/26*	–	838,287	–	838,287	–	–		821,521
Alger Green Fund
Common Stocks
Choicestream, Inc.*	3,619	–	–	3,619	–	–		0
Preferred Stocks
Choicestream, Inc.
Series A and B*	101,034	–	–	101,034	–	–		41,193
Corporate Bonds
Choicestream, Inc.,
11.0%, 8/05/18	–	10,518,	–	10,518	95	–		10,518
Warrants
Choicestream, Inc.,
6/22/26*	–	10,518	–	10,518	–	–		10,308
Alger Dynamic
Opportunities Fund
Preferred Stocks
Prosetta Biosciences,
Inc., Series D*	41,418	—	–	41,418	–	–		167,328
Tolero
Pharmaceuticals, Inc.
Series A and B*	106,120	–	–	106,120	–	–		136,895

* *Non-income producing security.*

- 120 -

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, 2016 through the issuance date of the Financial Statements. No such events have been
identified which require recognition and disclosure other than the Board of Trustees of The
Alger Fund’s II approval of changes with respect to Alger Green Fund (the “Fund”) that
are anticipated to become effective on or about December 30, 2016. The Fund’s principal
investment strategy will expand from focusing exclusively on environmental sustainability
criteria to considering social and governance criteria as well. In addition, the Fund’s name
will change from Alger Green Fund to Alger Responsible Investing Fund. The Fund’s
investment objective to seek long-term capital appreciation will not change.

- 121 -

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 Mid Cap Focus Fund (formerly 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 Mid Cap Focus Fund (formerly Alger Analyst Fund), Alger
Dynamic Opportunities Fund, and Alger Emerging Markets Fund (the “Funds”) as of
October 31, 2016, 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, 2016, 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, 2016, 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
December 29, 2016

- 122 -

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, 2016 and ending October 31, 2016.

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.

- 123 -

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, 2016			October 31, 2016		2016	^(a)		2016	^(b)
Alger Spectra Fund
Class A	Actual	$	1,000.00	$	1,045.12	$	6.73			1.31	%
	Hypothetical^(c)		1,000.00		1,018.55		6.65			1.31
Class C	Actual		1,000.00		1,041.53	10.62				2.07
	Hypothetical^(c)		1,000.00		1,014.73	10.48				2.07
Class I	Actual		1,000.00		1,045.34		6.63			1.29
	Hypothetical^(c)		1,000.00		1,018.65		6.55			1.29
Class Z	Actual		1,000.00		1,046.84		5.09			0.99
	Hypothetical^(c)		1,000.00		1,020.16		5.03			0.99

Alger Green Fund
Class A	Actual	$	1,000.00	$	1,025.81	$	6.67			1.31	%
	Hypothetical^(c)		1,000.00		1,018.55		6.65			1.31
Class C	Actual		1,000.00		1,021.48	10.62				2.09
	Hypothetical^(c)		1,000.00		1,014.63	10.58				2.09
Class I	Actual		1,000.00		1,025.84		6.52			1.28
	Hypothetical^(c)		1,000.00		1,018.70		6.50			1.28
Class Z	Actual		1,000.00		993.48		5.11			0.99
	Hypothetical^(c)		1,000.00		1,020.01		5.18			0.99

Alger Mid Cap Focus Fund
Class A	Actual	$	1,000.00	$	962.10	$	6.36			1.29	%
	Hypothetical^(c)		1,000.00		1,018.65		6.55			1.29
Class C	Actual		1,000.00		958.87		9.65			1.95
	Hypothetical^(c)		1,000.00		1,015.28		9.93			1.95
Class I	Actual		1,000.00		961.97		6.41			1.30
	Hypothetical^(c)		1,000.00		1,018.60		6.60			1.30
Class Z	Actual		1,000.00		989.33		5.65			0.99
	Hypothetical^(c)		1,000.00		1,019.46		5.74			0.99

Alger Dynamic Opportunities Fund
Class A	Actual	$	1,000.00	$	1,000.00	$	12.02			2.38	%
	Hypothetical^(c)		1,000.00		1,013.12	12.09				2.38
Class C	Actual		1,000.00		995.50	15.75				3.14
	Hypothetical^(c)		1,000.00		1,009.35	15.86				3.14
Class Z	Actual		1,000.00		1,001.69	10.42				2.07
	Hypothetical^(c)		1,000.00		1,014.73	10.48				2.07

- 124 -

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, 2016			October 31, 2016		2016	^(a)		2016	^(b)
Alger Emerging Markets Fund
Class A	Actual	$	1,000.00	$	1,097.83	$	8.54			1.60	%
	Hypothetical^(c)		1,000.00		1,016.99		8.21			1.60
Class C	Actual		1,000.00		1,093.63	12.37				2.35
	Hypothetical^(c)		1,000.00		1,013.32		11.89			2.35
Class I	Actual		1,000.00		1,098.42		8.44			1.60
	Hypothetical^(c)		1,000.00		1,017.09		8.11			1.60
Class Y	Actual		1,000.00		1,141.06		5.76			1.05
	Hypothetical^(c)		1,000.00		1,019.76		5.43			1.05
Class Y-2	Actual		1,000.00		1,141.06		5.44			0.99
	Hypothetical^(c)		1,000.00		1,020.06		5.13			0.99
Class Z	Actual		1,000.00		1,098.79		6.70			1.25
	Hypothetical^(c)		1,000.00		1,018.75		6.44			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 184/366 (to reflect the one-half year period).
(b) Annualized.
(c) 5% annual return before expenses.

- 125 -

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

Tax Information
For the year ended October 31, 2016, 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% of the Alger Emerging
Markets 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 2016. 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 2017. 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.

- 126 -

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 (55)	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. (63)	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 (71)	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 (83)	Attorney. Private Investor since 1981. Formerly of	1986	25
	Counsel to the law firm of Kohler & Barnes.
David Rosenberg (54)	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. (78)	Board of the Manhattan Institute (non-profit policy
	research) since 1988; Formerly Co-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”.

- 127 -

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 (52)	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 (51)	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 (51)	Senior Vice President of Alger Management;		2005	N/A
Treasurer	Assistant Treasurer since 2004.
Anthony S. Caputo (61)	Employed by Alger Management since 1986,		2007	N/A
Assistant Treasurer	currently serving as Vice President.
Sergio M. Pavone (55)	Employed by Alger Management since 2002,		2007	N/A
Assistant Treasurer	currently serving as Vice President.
Patrick J. Murphy (46)	Senior Vice President of Alger Management since		2014	N/A
Chief Compliance Officer	2014	.
Christopher E. Ullman (31)	Associate Counsel of Alger Management since		2016	N/A
Assistant Secretary	2016. Formerly, Associate, Legal and Compliance,
	BlackRock from 2015 to 2016; Compliance
	Associate, Bridgewater Associates, from 2013 to
	2014; and full-time student from 2010 to 2013.

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

- 128 -

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

Investment Management Agreement Renewal
At an in-person meeting held on September 27, 2016, 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. 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 through
strategic hires, realignment of portfolio management responsibilities, and similar measures.
The Trustees concluded that Alger Management's experience, resources and strength in the
- 129 -

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

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 a Fund 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 Funds. 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 6/30/16), second-quarter of 2016, 1-, 3- and 5-year and longer
periods to the extent available (and its year-by-year returns), together with supplemental
performance data through 8/31/16, and compared them with benchmark and peer-group
data for the same periods. They noted that Spectra Fund, the Dynamic Opportunities Fund
and the Green Fund fell short of their peer medians and benchmarks for all recent periods
from quarter-end (at 6/30/16) through one year, with the Green Fund showing similar
results for the longer 3- and 5-year periods and the Dynamic Opportunities Fund showing
somewhat better performance against its peers, but not against its benchmark, for 3 and 5
years. Notwithstanding its unimpressive recent performance, Spectra Fund still maintained
a high rating against its peers when calculated over the longer 3- and 5-year periods. The
Emerging Markets Fund showed an uneven record, performing just below its peer median
and above its benchmark for the quarter ended 6/30/16, falling well below its peer median
and benchmark for the year to date, but approaching or exceeding its peer medians, while
matching or surpassing its benchmark, for the 1-, 3- and 5-year periods. The Mid Cap Focus
Fund (formerly the Analyst Fund), which had acquired a materially different investment
approach at December 31, 2015, showed subpar performance against peers and benchmark
for the 6/30/16 quarter and year to date, but the Trustees attached less importance to these
results given the short time frame in which the Fund had been following its new investment
approach.

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. Throughout, the Trustees were mindful of the point,
alluded to in the discussion, that the current market in equity securities favors dividend-
paying equities rather than pure growth stocks, a trend directly contrary to the Alger
investment approach and tending to depress the prices of growth stocks as compared with
those of dividend stocks..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
- 130 -

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

the advisory fees and expense ratios of relevantly similar funds. That information indicated
that the advisory fees for all of the Funds other than Spectra Fund were below the median
for their peers while that of Spectra Fund exceeded its median by only eight percentage
points. Of the 19 expense ratios for the Funds’ various share classes, 15 were below or just
above their peer medians; of the remaining four, only one share class placed in the top
quartile of the applicable reference group, and it – the Class C Shares of the Green Fund -
was for a very small class, with assets of $5.7 million at 6/30/16 , which therefore suffered
in comparison with its peers.. 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, 2016. After discussing with representatives of Alger
Management and FUSE the expense-allocation practices, which FUSE reported to be
consistent with accepted industry practice, 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”), including additional breakpoints added for Spectra Fund at
June 1, 2016; these have the effect of lowering a 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 6/30/16 of less than $37 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.)

- 131 -

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

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'
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, 2016, 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 Fund 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 undertaken to cap Fund expenses through expense re-
imbursements 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 as (and if) it grew
in size and determined that the fee breakpoints in the Agreement provided a
means by which Alger Management 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

- 132 -

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

Privacy Policy
U.S. Consumer Privacy Notice Rev. 12/20/16


FACTS	WHAT DOES ALGER DO WITH YOUR PERSONAL INFORMATION?


Why?	Financial companies choose how they share your personal information. Federal law
	gives consumers the right to limit some but not all sharing. Federal law also requires us
	to tell you how we collect, share, and protect your personal information. Please read this
	notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service
	you have with us.
	This information can include:
	• Social Security number and
	• Account balances and
	• Transaction history and
	• Purchase history and
	• Assets
	When you are no longer our customer, we continue to share your information as
	described in this notice.
How?	All financial companies need to share personal information to run their everyday business.
	In the section below, we list the reasons financial companies can share personal
	information; the reasons Alger chooses to share; and whether you can limit this sharing.


Reasons we can share your personal	Does	Can you limit
information	Alger share?	this sharing?
For our everyday business purposes —	Yes	No
such as to process your transactions, maintain
your account(s), respond to court orders and
legal investigations, or report to credit bureaus
For our marketing purposes —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	No	We don’t share
Question? Call 1-800-342-2186

- 133 -

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
	safeguards and secured files and buildings.
How does Alger	We collect your personal information, for example,
collect my personal	when you:
information?	• Open an account or
	• Make deposits or withdrawals from 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 for affiliates’ everyday business purposes
	information about your credit worthiness
	• affiliates from using your information to market to you
	• sharing for nonaffiliates to market to you
	State laws and individual companies may give you
	additional rights to limit sharing.


Definitions
Affiliates	Companies related by common ownership or control.
	They can be financial and nonfinancial companies.
	• Our affiliates include Fred Alger Management, Inc.
	and Fred Alger & Company, Incorporated as well as
	the following funds: The Alger Funds, The Alger
	Funds II, The Alger Institutional Funds, The Alger
	Portfolios, and Alger Global Growth Fund.
Nonaffiliates	Companies not related by common ownership or
	control. They can be financial and nonfinancial
	companies
Joint marketing	A formal agreement between nonaffiliated financial
	companies that together market financial products or
	services to you.
Other important information

- 134 -

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.

- 135 -

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.

- 136 -

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.

- 137 -

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, 2016	$	143,100
October 31, 2015	$	140,000

b) Audit-Related Fees: NONE

c) Tax Fees for tax advice, tax compliance and tax planning:


October 31, 2016	$	39,536
October 31, 2015	$	23,500

d) All Other Fees:
October 31, 2016	$	9,600
October 31, 2015	$	10,100

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, 2016	$	219,975	, €93,631
October 31, 2015	$	191,042	, €69,347

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 21, 2016

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 21, 2016

By: /s/Michael D. Martins

Michael D. Martins

Treasurer

Date: December 21, 2016

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