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FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-01743 | |||||||
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The Alger Funds II | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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111 Fifth Avenue New York, New York |
| 10003 | ||||||
(Address of principal executive offices) |
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Mr. Hal Liebes Fred Alger Management, Inc. 111 Fifth Avenue New York, New York 10003 | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | 212-806-8800 |
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Date of fiscal year end: | October 31 |
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Date of reporting period: | April 30, 2009 |
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ITEM 1. REPORT(S) TO STOCKHOLDERS.
Alger Spectra Fund | Alger Green Fund | Alger Analyst Fund | Alger nternational Opportunities Fund
The Alger Funds II
SEMI-ANNUAL REPORT April 30, 2009 (Unaudited) |
Table of Contents
THE ALGER FUNDS II
Letter to Our Shareholders | 1 |
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Fund Highlights | 9 |
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Portfolio Summary | 13 |
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Schedules of Investments | 15 |
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Statements of Assets and Liabilities | 44 |
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Statements of Operations | 46 |
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Statements of Changes in Net Assets | 48 |
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Statement of Cash Flows | 50 |
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Financial Highlights | 52 |
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Notes to Financial Statements | 60 |
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Additional Information | 72 |
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Alger is pleased to provide you with the ability to access regulatory materials online. When documents such as prospectuses and annual and semi-annual reports are available, we’ll send you an e-mail notification with a convenient link that will take you directly to the fund information on our website. To sign up for this free service, simply enroll at www. icsdelivery.com/alger.
Dear Shareholders, | May 25, 2009 |
We can look at the last six months as the melting away of an illusion; as a time when reality has come painfully back into play. Many philosophers built vast realms of study on the idea that misguided reason can twist reality into something that perhaps suits us in the moment but ultimately only serves to keep us in an illusory state—and, in our current case, wreak havoc on our economy and our confidence.
The housing and credit crises and ensuing financial breakdown began with an illusion based on flawed ideas held by many financial lenders and insurers: the latent belief that growth in the housing market would continue unhampered on its upward trajectory. Underlying the assumption of unimpeded growth was the idea that financial derivatives could not only provide the increase in debt necessary to support the financial system but also manage the associated risk. In the mid-2000s, the illusion grew as more and more lenders extended more and more credit to “subprime” borrowers who, if their circumstances declined, were less and less likely to be able to pay the loans back. Although the practice was based on a belief that growth would continue, experience has shown again and again that the upward trend of growth over time is much more jagged than we like to recall.
When the illusion disintegrated, not only did the borrowers suffer from foreclosures, but the resulting housing crisis created a massive ripple effect that crippled the U.S.’s major financial firms. Along with the weakening of the financial sector, so went credit availability, consumer spending, jobs, and, ultimately, consumer confidence. By the fourth quarter of 2008, the scale of the crisis had ceased to be solely “subprime”—it had gone global. Into the first quarter of 2009, the volatility continued with the Dow Jones Industrial Average(i) climbing as high as 9,034 points and falling as low as 6,547 points.
Toward the end of the first quarter and into the second quarter of the calendar year, economic indicators were struggling to recover. Retail sales fell 1.3% in March and a further 0.4% in April—a larger dip than expected. The Consumer Price Index declined 0.7% on an annual basis in April, only the second year-over-year decline in nearly 54 years following March’s 0.4% drop(ii). Industrial production decreased 0.5% in April after having fallen 1.7% in March(iii). And GDP for the first quarter of 2009 decreased 6.1% compared to the fourth quarter of 2008, which experienced a decline of 6.3%.
Europe did not fare much better. GDP fell 2.5% in the first quarter of 2009 versus the last quarter of 2008, which experienced a decline of 1.5%—the figures were for both the 16-country euro currency zone and the broader 27-country European Union bloc(iv). China is anticipated to fare less poorly, and although its export growth is expected to slow, the country is taking measures to focus on innovation rather than outright cost-efficiency.
Emerging from the Darkness
Plato famously dealt with illusion in what came to be called Plato’s Cave. He described people in a cave whose notion of reality was entirely comprised of shadows projected on a wall. Similarly, one could say that we were in such a cave, deceived by
1
the shadows of easy credit, with no real idea of the hows or whys of what we were seeing.
Now, however, we are beginning to see clearly where things unraveled. Actions are being taken by the Obama administration as well as the housing, financial, and automotive industries to stave off a repetition of the disaster; whether or not those actions will succeed remains to be seen.
What we do know is that, as of the date of this writing, some light has begun to shine in growth investing. In the first quarter, growth funds beat their value rivals by the largest margin in nine years. As of April 28, mid-cap growth funds were up 4.3%, small-cap growth funds were up 0.8%, and large-cap growth funds were up 2.6%, according to investment researcher Morningstar Inc.—a sign that investors are beginning to shed their aversion to risk and test the market.
Then and Now
Much has been made of the similarities between the current downturn and the Great Depression. During the “Roaring Twenties,” people were busy buying automobiles and appliances on credit and eagerly speculating in the stock market, feeding the illusion that the good times would continue to roll.
Then, like now, thought—in terms of easy credit and unimpeded growth—was divorced from reality. Back then, however, government policy either declined to intervene or, worse, intervened in ways that exacerbated rather than alleviated the financial crisis, thus allowing the devastation to spread across the U.S. economy. Things today move much more quickly. The current economy has turned downward faster in a shorter period of time than in any prior period, including the Depression. Fortunately, our government has responded with alacrity and, in a broad sense, moved in the right direction both by injecting massive amounts of liquidity into the financial system and by proactively assuring consumers of the safety of their savings and deposit accounts. As a result, we are likely to emerge faster from this crisis, and certainly much faster than in the 1930s. Government cannot be the only driver of recovery. Today, the depth and breadth of investors in markets across the globe is much stronger than ever before, and their actions will likely speed and strengthen the shape of recovery in both equity and debt markets.
As we have noted in our Alger Market Commentaries (see www.alger.com), companies were quick to respond to the downturn in the second half of 2008 by moving rapidly to cut expenses. At the end of the first quarter of 2009, as we tracked the corporate earnings results of the companies we follow, we discovered a pattern: Despite the rapidity of the economic downturn, we saw companies reporting free cash flow of both absolute strength and relative resilience. We expect the continued stabilization of the U.S. economy and company fundamentals to support the market’s rally from March lows.
We are already seeing signs of a bottoming in the housing market in the earliest-hit and hardest-hit areas of the U.S. where declines in foreclosures and short sales have begun to occur. Looking at Orange County, California, home prices increased 2.5% in March from February; sales jumped 27.5% in March from February and 47.4% from last year, according to the California Association of Realtors. The county had about four months of inventory as of May, a level not seen since April 2006. Inventory was at eight months a year ago and peaked at 11 months in 2007.
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As a lagging indicator, the unemployment rate won’t yield for a while as companies are expected to be slow to add new jobs, but the market can rebound long before the level of employment does. The unemployment rate hit a 25-year high in April, but there were signs of hope as the monthly job loss total for April fell to 539,000, down from 699,000 jobs lost in March and the lowest level in six months—since October, when the economy shed 380,000 jobs.
The Institute for Supply Management’s manufacturing index, a key measure of manufacturing activity, rose for the fourth straight month in April, suggesting the sector may be stabilizing even though the indicator has been at the contraction level for 15 months in a row. And the Consumer Confidence Index, which had posted a slight increase in March, improved considerably in April. The Index now stands at 39.2 (1985=100), up from 26.9 in March.
Apart from the Crowd
Looking forward, we are grounded in a more complete picture of reality—for the overall economy and our firm. Danish philosopher Søren Kierkegaard, too, examined illusion in a way, writing that crowds limit and stifle the unique individual. Like any economic bubble, we can, of course, now say in hindsight that the adjoining crises were a result of exactly this kind of crowd mentality. The resulting economic disaster, while painful, has effectively broken up the crowd, razing the illusion and once again opening the investing field up to new and creative opportunities. There is, after all, a stunning amount of cash on the sidelines. The savings rate is up to 5%, meaning that there is about $500 billion currently being held in cash. As consumer confidence repairs itself, the sidelined cash will be invested. While we believe that the economy will technically be in recession for most of 2009, negative GDP figures will gradually become less severe.
The stock market, however, is a discounting mechanism; investors look forward toward the potential range of economic, sector, and company-specific outcomes in terms of revenues, margins, profits, and growth to assess the value of equity. At Alger, our investment process includes valuation analysis that considers outcomes that are both highly pessimistic and optimistic. Most of the time, we observe stocks selling within ranges that reflect varying but ultimately balanced views between the divergent possibilities.
Occasionally, however, the crowd mentality of the market overwhelms such rational behavior and investors see something entirely different: equities of companies, even the strongest, suddenly priced to fail. We believe the S&P 500 Index(v) lows in March reflected such an event and, thus, we are increasingly confident that those lows will mark the bottom. Because we do not expect the economy—and, in particular, investor sentiment about economic recovery and future growth—to recover in a straight line, we think continued market volatility is likely. The inevitable sell-offs in the stock market that will accompany such uncertain economic progress will offer excellent buying opportunities for patient, long-term investors.
During the last six months, we had limited exposure to the hardest-hit areas of the financial sector, and our performance was largely a result of the market’s broad and indiscriminate decline. Even in the best of times investing is a challenge; however, it is during bad times that an investment firm proves its capability to manage through crisis, focus on improving performance, and not only endure but
3
also improve upon its strengths. Alger investment professionals have remained focused and disciplined in executing upon our consistent investment philosophy and process. Now in 2009, our 45th year in the business of investing, we have successfully passed through many shadowy times and found new opportunities amidst economic and generational change.
Kierkegaard once wrote, “The task must be made difficult, for only the difficult inspires the noble-hearted.” We have perhaps encountered the most difficult task our generation will see, and our firm has come out of it more inspired than ever to deliver exceptional investment results for an exceptional group of individuals and institutions: our clients.
Portfolio Matters
Alger Spectra Fund
The Alger Spectra Fund returned 2.87% for the fiscal year ended April 30, 2009, compared with a return of -1.70% for the Russell 3000 Growth Index(vi).
During the period, the largest portfolio weightings in the Alger Spectra Fund were in the Information Technology and Health Care sectors. The largest sector overweight for the period was in Health Care. The largest sector underweight for the period was in Industrials. Relative outperformance in the Information Technology and Energy sectors were the most important contributors to performance. Sectors that detracted from the portfolio included Consumer Discretionary and Materials.
Among the most important relative contributors to the portfolio during the six months ended April 30, 2009, were Apple Inc., GSI Commerce Inc., Google Inc. (Cl A), Inverness Medical Innovations Inc., and Chesapeake Energy Corp. Conversely, detracting from overall results on a relative basis were Satyam Computer Services Ltd. (ADS), Gildan Activewear Inc., Tupperware Brands Corp., P. F. Chang’s China Bistro Inc., and Covidien Ltd.
Alger Green Fund
The Alger Green Fund returned -3.70% for the fiscal year ended April 30, 2009, compared to the Russell 3000 Growth Index, which returned -1.70%.
During the period, the largest portfolio weightings in the Alger Green Fund were in the Information Technology and Industrials sectors. The largest sector overweight for the period was in Consumer Discretionary. The largest sector underweight for the period was in Energy. Relative outperformance in the Consumer Staples and Health Care sectors were the most important contributors to performance. Sectors that detracted from the portfolio included Consumer Discretionary and Information Technology.
Among the most important relative contributors to the portfolio during the six months ended April 30, 2009, were EnergySolutions Inc., Whole Foods Market Inc., Expedia Inc., General Cable Corp., and Hansen Natural Corp. Conversely, detracting from overall results on a relative basis were Gildan Activewear Inc., Satyam Computer Services Ltd. (ADS), Deckers Outdoor Corp., General Electric Co., and Fuel Systems Solutions Inc.
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Alger International Opportunities Fund
The Alger International Opportunities Fund returned 0.16% for the fiscal 6-month period ending April 30, 2009. During the same period, the Fund’s benchmarks, the MSCI EAFE Index and the MSCI All Country World Index ex U.S. Index(vii) returned -2.36% and -2.07, respectively.
During the period, the largest portfolio weightings in the Alger International Opportunities Fund were in the Information Technology and Health Care sectors. The largest sector overweight for the period was in Information Technology. The largest sector underweight for the period was in Financials. Relative outperformance in the Financials and Energy sectors were the most important contributors to performance. Sectors that detracted from the portfolio included Health Care and Information Technology.
Among the most important relative contributors to the portfolio during the six months ended April 30, 2009, were Petrobras Petroleo Brasileiro, Companhia Vale do Rio Doce (ADS), Netease.com Inc. (ADS), Mellanox Technologies Ltd., and, lastly, versus the MSCI EAFE, HSBC Holdings PLC, and, versus the MSCI World ex-U.S., NICE Systems Ltd. (ADS). Conversely, detracting from overall results on a relative basis were Satyam Computer Services Ltd. (ADS), Ness Technologies Inc., Smith & Nephew PLC, Ubisoft Entertainment S.A., and SINA Corp.
Alger Analyst Fund
The Alger Analyst Fund returned 3.67% for the fiscal 6 months ended April 30, 2009. The Fund’s benchmark, the Russell 3000 Growth Index, returned -1.70% during the same period.
During the period, the largest portfolio weightings in The Alger Analyst Fund were in the Health Care and Information Technology sectors. The largest sector overweight for the period was in Health Care. The largest sector underweight for the period was in Information Technology. Relative outperformance in the Health Care and Consumer Staples sectors were the most important contributors to performance. Sectors that detracted from the portfolio included Financials and Consumer Discretionary.
Among the most important relative contributors to the portfolio during the six months ended April 30, 2009, were Optimer Pharmaceuticals Inc., Marvell Technology Group Ltd., Whole Foods Market Inc., GSI Commerce Inc., and Penn National Gaming Inc.. Conversely, detracting from overall results on a relative basis were United Therapeutics Corp., Gildan Activewear Inc., Alexion Pharmaceuticals Inc., THQ Inc., and Bucyrus International Inc.
Respectfully submitted,
Daniel C. Chung
Chief Investment Officer
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(i) | The Dow Jones Industrial Average is an index of common stocks comprised of major industrial companies and assumes reinvestment of dividends. It is frequently used as a general measure of stock market performance. |
(ii) | Labor Department |
(iii) | Federal Reserve |
(iv) | EU statistics office |
(v) | Standard & Poor’s 500 Index is an index of the 500 largest and most profitable companies in the United States. |
(vi) | The Russell 3000 Growth Index is an unmanaged index designed to measure the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Index measures the performance of the 3,000 largest U.S.companies based on the total market capitalization, which represents 98% of the U.S. Equity Market. |
(vii) | The MSCI All Country World Index ex U.S. is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. The MSCI All Country World Index includes 48 country indices. |
Investors cannot invest directly in an index. Index performance does not reflect the deduction for fees, expenses, or taxes.
This report and the financial statements contained herein are submitted for the general information of shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless proceeded or accompanied by an effective prospectus for the Fund. Fund performance returns represent the fiscal six-month period return of Class A shares prior to the deduction of any sales charges and include the reinvestment of any dividends or distributions. On September 24, 2008, the Alger II Funds were renamed from Spectra Funds to Alger Funds, and the Funds’ Class N shares were re-designated as Class A shares. Performance prior to September 24, 2008, for Class A shares is the historical performance of the Class N shares adjusted to include the effect of front-end sales charge imposed by Class A shares.
The performance data quoted represents past performance, which is not an indication or guarantee of future results. Standardized performance results can be found on the following pages. The investment return and principal value of an investment in a fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, visit us at www.alger.com, or call us at (800) 992-3863.
The views and opinions of the Fund’s management in this report are as of the date of the Shareholders letter and are subject to change at any time subsequent to this date. There is no guarantee that any of the assumptions that formed the basis for the opinions stated herein are accurate or that they will materialize. Moreover, the information forming the basis for such assumptions is from sources believed to be reliable; however, there is no guarantee that such information is accurate. Any securities mentioned, whether owned in a fund or otherwise, are considered in the context of the construction of an overall portfolio of securities and therefore reference to them should not be construed as a recommendation or offer to purchase or sell any such security. Inclusion of such securities in 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
6
statement that the security is a significant holding in a portfolio. Please refer to the Schedule of Investments for each fund which is included in this report for a complete list of fund holdings as of April 30, 2009. Securities mentioned in the Shareholders letter, if not found in the Schedule of Investments, may have been held by the Funds during the six-month fiscal period.
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. Funds that participate in leveraging are subject to the risk that borrowing money to leverage will exceed the returns for securities purchased or that the securities purchased may actually go down in value; thus, the Fund’s net asset value can decrease more quickly than if the Fund had not borrowed. The Alger 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 Fund’s Prospectus.
Before investing, carefully consider a fund’s investment objective, risks, charges, and expenses. For a prospectus containing this and other information about the Alger Funds 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.
7
FUND PERFORMANCE AS OF 3/31/09 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS (1)
| 1 |
| 5 |
| 10 |
| SINCE |
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| YEAR |
| YEARS |
| YEARS |
| INCEPTION |
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Alger Spectra Class A |
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(Inception 7/28/69) | (36.54 | )% | 0.11 | % | (2.93 | )% | n/a |
|
Alger Spectra Class C |
|
|
|
|
|
|
|
|
(Inception 9/24/08) | (34.15 | )% | (0.46 | )% | (3.13 | )% | n/a |
|
Alger Spectra Class I |
|
|
|
|
|
|
|
|
(Inception 9/24/08) | (32.83 | )% | 1.26 | % | (2.37 | )% | n/a |
|
Alger Green Class A |
|
|
|
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|
|
|
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(Inception 12/4/00) | (42.89 | )% | (2.48 | )% | n/a |
| (8.01 | )%(2) |
Alger Green Class C |
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(Inception 9/24/08) | (40.84 | )% | (2.17 | )% | n/a |
| (8.11 | )%(2) |
Alger Green Class I |
|
|
|
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|
|
|
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(Inception 9/24/08) | (39.88 | )% | (1.47 | )% | n/a |
| (7.44 | )%(2) |
Alger Analyst Class A |
|
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|
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|
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(Inception 3/30/07) | (37.64 | )% | n/a |
| n/a |
| (21.40 | )% |
Alger Analyst Class C |
|
|
|
|
|
|
|
|
(Inception 9/24/08) | (35.40 | )% | n/a |
| n/a |
| (19.92 | )% |
Alger Analyst Class I |
|
|
|
|
|
|
|
|
(Inception 9/24/08) | (34.18 | )% | n/a |
| n/a |
| (19.26 | )% |
Alger International Opportunities Class A |
|
|
|
|
|
|
|
|
(Inception 2/28/07) | (51.26 | )% | n/a |
| n/a |
| (25.56 | )% |
Alger International Opportunities Class C |
|
|
|
|
|
|
|
|
(Inception 9/24/08) | (49.54 | )% | n/a |
| n/a |
| (24.24 | )% |
Alger International Opportunities Class I |
|
|
|
|
|
|
|
|
(Inception 9/24/08) | (48.58 | )% | n/a |
| n/a |
| (23.62 | )% |
(1) The Fund’s Class N shares were redesigned as Class A shares on September 24, 2008. Class A share performance data prior to September 24, 2008, represents the performance of the Fund’s Class N shares, adjusted to reflect the maximum front-end sales load. Class C performance data prior to September 24, 2008, Class inception, represents the performance of the Fund’s Class N shares adjusted to reflect the applicable contingent deferred sales charge and higher operating expenses of Class C shares. Class I performance data prior to September 24, 2008, Class inception, represents the Fund’s Class N Shares.
(2) Performance figures prior to 1/12/2007 are those of Alger Green Institutional Fund and performance prior to 10/19/2006 represents the performance of Alger Socially Responsible Institutional Fund Class I shares, the predecessor fund of Alger Green Institutional Fund. The predecessor fund followed different investment strategies and had a different portfolio manager. As of 1/12/2007, the Alger Green Institutional Fund became the Alger Green Fund.
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ALGER SPECTRA FUND
Fund Highlights Through April 30, 2009 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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 sales charge of 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged index of common stocks) for the ten years ended April 30, 2009. 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 and Class I shares will vary from the results shown above due to differences in expenses and sales charges those classes bear.
Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
PERFORMANCE COMPARISON AS OF 4/30/09†
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
| SINCE |
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 7/28/69) | (34.90 | )% | 2.88 | % | (2.08 | )% | n/a |
|
Russell 3000 Growth Index | (31.47 | )% | (2.33 | )% | (4.16 | )% | n/a |
|
Class C (Inception 9/24/08) | (32.30 | )% | 3.28 | % | (2.26 | )% | n/a |
|
Russell 3000 Growth Index | (31.47 | )% | (2.33 | )% | (4.16 | )% | n/a |
|
Class I (Inception 9/24/08) | (31.01 | )% | 4.08 | % | (1.51 | )% | n/a |
|
Russell 3000 Growth Index | (31.47 | )% | (2.33 | )% | (4.16 | )% | n/a |
|
The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s average annual total returns include changes in share price and reinvestment of dividends and capital gains. The chart and table above do not reflect the deduction of taxes that a shareholder would have paid on fund distributions or on the redemption of fund shares. Investment return and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. For performance current to the most recent month end, visit us at www.alger.com or call us at (800) 992-3863.
† Returns reflect maximum initial sales charges on Class A shares and applicable contingent deferred sales charges on Class B and Class C shares. The Fund’s Class N Shares were redesigned as Class A Shares in September 24, 2008. Class A Share Performance data prior to September 24, 2008, Class inception, represents the performance of the Fund’s Class N Shares, adjusted to reflect the maximum front-end sales charge. Class C performance data prior to September 24, 2008, represents the performance of the Fund’s Class N Shares adjusted to reflect the applicable contingent deferred sales charge and higher operation expenses of Class C Shares. Class I performance data prior to September 24, 2008, Class inception, represents the Fund’s Class N Shares.
9
ALGER GREEN FUND
Fund Highlights Through April 30, 2009 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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 sales charge of 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged index of common stocks) on December 4, 2000 through April 30, 2009. The figures for the Alger Green 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 differences in expenses and sales charges those classes bear.
Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
PERFORMANCE COMPARISON AS OF 4/30/09†
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
| SINCE |
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 12/4/00)* | (40.51 | )% | 0.29 | % | n/a |
| (6.89 | )% |
Russell 3000 Growth Index | (31.47 | )% | (2.33 | )% | n/a |
| (4.66 | )% |
Class C (Inception 9/24/08)* | (38.31 | )% | 0.63 | % | n/a |
| (6.99 | )% |
Russell 3000 Growth Index | (31.47 | )% | (2.33 | )% | n/a |
| (4.66 | )% |
Class I (Inception 9/24/08)* | (37.21 | )% | 1.38 | % | n/a |
| (6.29 | )% |
Russell 3000 Growth Index | (31.47 | )% | (2.33 | )% | n/a |
| (4.66 | )% |
The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s average annual total returns include changes in share price and reinvestment of dividends and capital gains. The chart and table above do not reflect the deduction of taxes that a shareholder would have paid on fund distributions or on the redemption of fund shares. Investment return and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. For performance current to the most recent month end, visit us at www.alger.com or call us at (800) 992-3863.
† Returns reflect maximum initial sales charges on Class A shares and applicable contingent deferred sales charges on Class C shares. The Fund’s Class N Shares were redesigned as Class A Shares on September 24, 2008. Class A Share performance data prior to September 24, 2008, represents the performance of the Fund’s Class N Shares, adjusted to reflect the maximum front-end sales charge. Class C performance data prior to September 24, 2008, Class inception, represents the performance of the Fund’s Class N Shares adjusted to reflect the applicable contingent deferred sales charge and higher operation expenses of Class C Shares. Data prior to Class I performance September 24, 2008, Class inception, represents the Fund’s Class N Shares.
* Performance figures prior to 1/12/2007 are those of Alger Green Institutional Fund and performance prior to 10/19/2006 represents the performance of the Alger Socially Responsible Institutional Fund Class I shares, the predecessor fund to the Alger Green Institutional Fund. The predecessor fund followed different investment strategies and had different portfolio managers. As of 1/12/2007 the Alger Green Institutional Fund became the Alger Green Fund.
10
ALGER ANALYST FUND
Fund Highlights Through April 30, 2009 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Analyst Fund Class A shares, with an initial sales charge of 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged index of common stocks) on March 30, 2007, the inception date of the Alger Analyst Fund Class A, through April 30, 2009. The figures for the Alger Analyst Fund and the Russell 3000 Growth Index include reinvestment of dividends. Performance for the Alger Analyst Fund Class C and Class I shares will vary from the results shown above due to differences in expenses and sales charges those classes bear.
Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
PERFORMANCE COMPARISON AS OF 4/30/09†
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
| SINCE |
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 3/30/07) | (35.98 | )% | n/a |
| n/a |
| (17.49 | )% |
Russell 3000 Growth Index | (31.47 | )% | n/a |
| n/a |
| (15.12 | )% |
Class C (Inception 9/24/08) | (33.62 | )% | n/a |
| n/a |
| (15.97 | )% |
Russell 3000 Growth Index | (31.47 | )% | n/a |
| n/a |
| (15.12 | )% |
Class I (Inception 9/24/08) | (32.43 | )% | n/a |
| n/a |
| (15.33 | )% |
Russell 3000 Growth Index | (31.47 | )% | n/a |
| n/a |
| (15.12 | )% |
The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s average annual total returns include changes in share price and reinvestment of dividends and capital gains. The chart and table above do not reflect the deduction of taxes that a shareholder would have paid on fund distributions or on the redemption of fund shares. Investment return and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. For performance current to the most recent month end, visit us at www.alger.com or call us at (800) 992-3863.
† Returns reflect maximum initial sales charges on Class A shares and applicable contingent deferred sales charges on Class C shares. The Fund’s Class N Shares were redesigned as Class A Shares on September 24, 2008. Class A Share performance data prior to September 24, 2008, represents the performance of the Fund’s Class N Shares, adjusted to reflect the maximum front-end sales charge. Class C performance data prior to September 24, 2008, Class inception, represents the performance of the Fund’s Class N Shares adjusted to reflect the applicable contingent deferred sales charge and higher operation expenses of Class C Shares. Class I performance data prior to September 24, 2008, Class inception, represents the Fund’s Class N Shares.
11
ALGER INTERNATIONAL OPPORTUNITIES FUND
Fund Highlights Through April 30, 2009 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
The chart above illustrates the change in value of a hypothetical $10,000 investment made in Alger International Opportunities Fund Class A shares, with an initial sales charge of 5.25% maximum sales charge, and the MSCI EAFE Index and the MSCI All Country World Index ex U.S. Index (both unmanaged indexes of common stocks) on February 28, 2007, the inception date of the Alger International Opportunities Fund Class A, through April 30, 2009. The figures for the Alger International Opportunities Fund, MSCI EAFE, and the MSCI All Country World Index ex U.S. Index include reinvestment of dividends. Performance for the Alger International Opportunities Fund Class C and Class I shares will vary from the results shown above due to differences in expenses and sales charges those classes bear.
Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
PERFORMANCE COMPARISON AS OF 4/30/09†
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
| SINCE |
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 2/28/07) | (48.62 | )% | n/a |
| n/a |
| (20.67 | )% |
MSCI EAFE Index | (36.59 | )% | n/a |
| n/a |
| (22.66 | )% |
MSCI All Country World Index ex U.S. Index | (36.19 | )% | n/a |
| n/a |
| (21.89 | )% |
Class C (Inception 9/24/08) | (46.90 | )% | n/a |
| n/a |
| (19.41 | )% |
MSCI EAFE Index | (36.59 | )% | n/a |
| n/a |
| (22.66 | )% |
MSCI All Country World Index ex U.S. Index | (36.19 | )% | n/a |
| n/a |
| (21.89 | )% |
Class I (Inception 9/24/08) | (45.86 | )% | n/a |
| n/a |
| (18.73 | )% |
MSCI EAFE Index | (36.59 | )% | n/a |
| n/a |
| (22.66 | )% |
MSCI All Country World Index ex U.S. Index | (36.19 | )% | n/a |
| n/a |
| (21.89 | )% |
The performance data quoted represents past performance, which is not an indication or a guarantee of future results. The Fund’s average annual total returns include changes in share price and reinvestment of dividends and capital gains. The chart and table above do not reflect the deduction of taxes that a shareholder would have paid on fund distributions or on the redemption of fund shares. Investment return and principal will fluctuate and the Fund’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. For performance current to the most recent month end, visit us at www.alger.com or call us at (800) 992-3863.
† Returns reflect maximum initial sales charges on Class A shares and applicable contingent deferred sales charges on Class C shares. The Fund’s Class N Shares were redesigned as Class A Shares on September 24, 2008. Class A Share performance data prior to September 24, 2008, represents the performance of the Fund’s Class N Shares, adjusted to reflect the maximum front-end sales charge. Class C performance data prior to September 24, 2008, Class inception, represents the performance of the Fund’s Class N Shares adjusted to reflect the applicable contingent deferred sales charge and higher operation expenses of Class C Shares. Class I performance data prior to September 24, 2008, Class inception, represents the Fund’s Class N Shares.
12
PORTFOLIO SUMMARY†
April 30, 2009 (Unaudited)
SECTORS |
| ANALYST |
| GREEN |
| SPECTRA‡ |
|
Consumer Discretionary |
| 12.5 | % | 12.9 | % | 8.7 | % |
Consumer Staples |
| 6.0 |
| 9.3 |
| 11.6 |
|
Energy |
| 3.7 |
| 1.9 |
| 7.9 |
|
Financials |
| 5.0 |
| 5.5 |
| 5.7 |
|
Health Care |
| 23.1 |
| 11.4 |
| 19.7 |
|
Industrials |
| 5.8 |
| 13.8 |
| 7.8 |
|
Information Technology |
| 21.3 |
| 31.4 |
| 29.7 |
|
Materials |
| 1.8 |
| 3.6 |
| 5.5 |
|
Telecommunication Services |
| 1.7 |
| 0.0 |
| 0.3 |
|
Utilities |
| 0.4 |
| 1.4 |
| 1.3 |
|
Short-Term Investments and Net Other Assets |
| 18.7 |
| 8.8 |
| 1.8 |
|
|
| 100.0 | % | 100.0 | % | 100.0 | % |
|
| INTERNATIONAL |
|
COUNTRY |
| OPPORTUNITIES |
|
Australia |
| 2.8 | % |
Belgium |
| 1.6 |
|
Bermuda |
| 2.1 |
|
Brazil |
| 5.3 |
|
Canada |
| 1.7 |
|
Cayman Islands |
| 1.6 |
|
China |
| 2.6 |
|
Denmark |
| 1.8 |
|
Finland |
| 1.2 |
|
France |
| 6.1 |
|
Germany |
| 6.3 |
|
Greece |
| 0.5 |
|
Hong Kong |
| 2.9 |
|
India |
| 2.8 |
|
Ireland |
| 0.5 |
|
Israel |
| 8.4 |
|
Japan |
| 13.9 |
|
Netherlands |
| 2.0 |
|
Norway |
| 0.4 |
|
Portugal |
| 0.1 |
|
South Africa |
| 2.2 |
|
Spain |
| 0.6 |
|
Sweden |
| 1.3 |
|
Switzerland |
| 8.1 |
|
Taiwan |
| 1.8 |
|
United Kingdom |
| 12.0 |
|
United States |
| 1.1 |
|
Cash and Net Other Assets |
| 8.3 |
|
|
| 100.0 | % |
† Based on net assets for each Fund.
‡ Includes short sales as a reduction of sector exposure.
13
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THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments (Unaudited) April 30, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—105.6% |
|
|
|
|
| |
AEROSPACE & DEFENSE—5.9% |
|
|
|
|
|
|
BE Aerospace Inc. *,‡ |
| 387,210 |
| $ | 4,177,996 |
|
General Dynamics Corp. |
| 26,600 |
| 1,374,422 |
| |
Lockheed Martin Corp. ‡ |
| 52,202 |
| 4,099,423 |
| |
|
|
|
| 9,651,841 |
| |
AIR FREIGHT & LOGISTICS—0.3% |
|
|
|
|
| |
United Parcel Service Inc., Cl. B |
| 10,600 |
| 554,804 |
| |
|
|
|
|
|
| |
APPAREL RETAIL—0.5% |
|
|
|
|
| |
Gap Inc., /The |
| 54,800 |
| 851,592 |
| |
|
|
|
|
|
| |
APPLICATION SOFTWARE—1.2% |
|
|
|
|
| |
Net 1 UEPS Technologies Inc. * |
| 4,800 |
| 79,200 |
| |
Solera Holdings Inc. *,‡ |
| 59,700 |
| 1,362,354 |
| |
Synopsys Inc. * |
| 15,700 |
| 341,946 |
| |
Taleo Corp., Cl. A * |
| 20,200 |
| 242,602 |
| |
|
|
|
| 2,026,102 |
| |
ASSET MANAGEMENT & CUSTODY BANKS—0.7% |
|
|
|
|
| |
AllianceBernstein Holding LP |
| 35,100 |
| 614,952 |
| |
Invesco Ltd. |
| 41,500 |
| 610,880 |
| |
|
|
|
| 1,225,832 |
| |
AUTOMOBILE MANUFACTURERS—0.3% |
|
|
|
|
| |
Honda Motor Co., Ltd. |
| 17,600 |
| 508,939 |
| |
|
|
|
|
|
| |
BIOTECHNOLOGY—3.7% |
|
|
|
|
| |
Alexion Pharmaceuticals Inc. * |
| 16,100 |
| 538,062 |
| |
Biogen Idec Inc. * |
| 19,400 |
| 937,796 |
| |
Celgene Corp. *,‡ |
| 52,000 |
| 2,221,440 |
| |
Cephalon Inc. * |
| 28,500 |
| 1,869,885 |
| |
Genzyme Corp. * |
| 11,200 |
| 597,296 |
| |
|
|
|
| 6,164,479 |
| |
CABLE & SATELLITE—0.3% |
|
|
|
|
| |
DIRECTV Group Inc., /The* |
| 19,600 |
| 484,708 |
| |
|
|
|
|
|
| |
CASINOS & GAMING—0.7% |
|
|
|
|
| |
Las Vegas Sands Corp.* |
| 155,400 |
| 1,215,228 |
| |
|
|
|
|
|
| |
COMMERCIAL PRINTING—0.2% |
|
|
|
|
| |
Warnaco Group Inc., /The* |
| 11,300 |
| 325,892 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—3.6% |
|
|
|
|
| |
Cisco Systems Inc. *,‡ |
| 101,900 |
| 1,968,708 |
| |
Corning Inc. |
| 11,100 |
| 162,282 |
| |
Nice Systems Ltd. #* |
| 11,064 |
| 283,349 |
| |
Qualcomm Inc. ‡ |
| 59,600 |
| 2,522,272 |
| |
Research In Motion Ltd. * |
| 13,600 |
| 945,200 |
| |
|
|
|
| 5,881,811 |
| |
COMPUTER & ELECTRONICS RETAIL—0.7% |
|
|
|
|
| |
Best Buy Co., Inc. |
| 31,200 |
| 1,197,456 |
| |
|
|
|
|
|
| |
COMPUTER HARDWARE—6.8% |
|
|
|
|
| |
Apple Inc. *,‡ |
| 44,800 |
| 5,637,184 |
| |
Hewlett-Packard Co. |
| 86,700 |
| 3,119,466 |
|
15
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
COMPUTER HARDWARE—(CONT.) |
|
|
|
|
|
|
International Business Machines Corp. ‡ |
| 25,400 |
| $ | 2,621,534 |
|
|
|
|
| 11,378,184 |
| |
COMPUTER STORAGE & PERIPHERALS—1.3% |
|
|
|
|
| |
EMC Corp. * |
| 160,100 |
| 2,006,053 |
| |
Western Digital Corp. * |
| 3,700 |
| 87,024 |
| |
|
|
|
| 2,093,077 |
| |
CONSTRUCTION & ENGINEERING—0.1% |
|
|
|
|
| |
Foster Wheeler AG* |
| 7,800 |
| 167,934 |
| |
|
|
|
|
|
| |
DATA PROCESSING & OUTSOURCED SERVICES—3.2% |
|
|
|
|
| |
Mastercard Inc. ‡ |
| 24,400 |
| 4,476,180 |
| |
Visa Inc., Cl. A |
| 11,900 |
| 773,024 |
| |
|
|
|
| 5,249,204 |
| |
DISTILLERS & VINTNERS—0.2% |
|
|
|
|
| |
Central European Distribution Corp.* |
| 13,200 |
| 295,680 |
| |
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—0.3% |
|
|
|
|
| |
Cia Vale do Rio Doce# |
| 30,500 |
| 503,555 |
| |
|
|
|
|
|
| |
DRUG RETAIL—3.5% |
|
|
|
|
| |
CVS Caremark Corp.‡ |
| 183,000 |
| 5,815,740 |
| |
|
|
|
|
|
| |
EDUCATION SERVICES—0.5% |
|
|
|
|
| |
ITT Educational Services Inc.* |
| 8,700 |
| 876,699 |
| |
|
|
|
|
|
| |
ELECTRIC UTILITIES—0.6% |
|
|
|
|
| |
Northeast Utilities |
| 44,100 |
| 926,982 |
| |
|
|
|
|
|
| |
ELECTRICAL COMPONENTS & EQUIPMENT—0.4% |
|
|
|
|
| |
General Cable Corp.* |
| 26,000 |
| 705,640 |
| |
|
|
|
|
|
| |
FERTILIZERS & AGRICULTURAL CHEMICALS—0.4% |
|
|
|
|
| |
Mosaic Co., /The |
| 18,300 |
| 740,235 |
| |
|
|
|
|
|
| |
FOOD RETAIL—1.7% |
|
|
|
|
| |
Kroger Co., /The‡ |
| 126,900 |
| 2,743,578 |
| |
|
|
|
|
|
| |
FOOTWEAR—0.1% |
|
|
|
|
| |
NIKE Inc., Cl. B |
| 4,500 |
| 236,115 |
| |
|
|
|
|
|
| |
GOLD—0.5% |
|
|
|
|
| |
Goldcorp Inc. |
| 28,100 |
| 773,312 |
| |
|
|
|
|
|
| |
HEALTH CARE EQUIPMENT—1.8% |
|
|
|
|
| |
Covidien Ltd. |
| 42,900 |
| 1,414,842 |
| |
Edwards Lifesciences Corp. * |
| 4,300 |
| 272,534 |
| |
Insulet Corp. * |
| 109,600 |
| 630,200 |
| |
Medtronic Inc. |
| 20,500 |
| 656,000 |
| |
Varian Medical Systems Inc. * |
| 2,400 |
| 80,088 |
| |
|
|
|
| 3,053,664 |
| |
HEALTH CARE FACILITIES—0.9% |
|
|
|
|
| |
Community Health Systems Inc. * |
| 15,800 |
| 360,872 |
| |
Universal Health Services Inc., Cl. B |
| 21,100 |
| 1,063,440 |
| |
|
|
|
| 1,424,312 |
| |
HEALTH CARE SERVICES—0.2% |
|
|
|
|
| |
Medco Health Solutions Inc.* |
| 7,600 |
| 330,980 |
|
16
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
HEALTH CARE SUPPLIES—1.3% |
|
|
|
|
|
|
Inverness Medical Innovations Inc.*,‡ |
| 65,461 |
| $ | 2,113,736 |
|
|
|
|
|
|
| |
HOME ENTERTAINMENT SOFTWARE—0.4% |
|
|
|
|
| |
Activision Blizzard Inc. * |
| 14,700 |
| 158,319 |
| |
Nintendo Co., Ltd. # |
| 14,300 |
| 481,195 |
| |
|
|
|
| 639,514 |
| |
HOME IMPROVEMENT RETAIL—1.1% |
|
|
|
|
| |
Lowe’s Companies, Inc. |
| 80,700 |
| 1,735,050 |
| |
|
|
|
|
|
| |
HOMEBUILDING—0.5% |
|
|
|
|
| |
KB Home |
| 14,700 |
| 265,629 |
| |
Toll Brothers Inc. * |
| 29,900 |
| 605,774 |
| |
|
|
|
| 871,403 |
| |
HOTELS RESORTS & CRUISE LINES—0.2% |
|
|
|
|
| |
Carnival Corp. |
| 11,800 |
| 317,184 |
| |
|
|
|
|
|
| |
HOUSEWARES & SPECIALTIES—0.1% |
|
|
|
|
| |
Newell Rubbermaid Inc. |
| 15,500 |
| 161,975 |
| |
Tupperware Brands Corp. |
| 3,400 |
| 85,102 |
| |
|
|
|
| 247,077 |
| |
HYPERMARKETS & SUPER CENTERS—1.0% |
|
|
|
|
| |
Wal-Mart Stores Inc.‡ |
| 32,000 |
| 1,612,800 |
| |
|
|
|
|
|
| |
INDUSTRIAL CONGLOMERATES—2.1% |
|
|
|
|
| |
Tyco International Ltd.‡ |
| 143,600 |
| 3,411,936 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.8% |
|
|
|
|
| |
SPX Corp. |
| 29,000 |
| 1,338,930 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—0.7% |
|
|
|
|
| |
Total SA# |
| 24,700 |
| 1,228,084 |
| |
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.9% |
|
|
|
|
| |
AT&T Inc. |
| 53,700 |
| 1,375,794 |
| |
|
|
|
|
|
| |
INTERNET RETAIL—2.0% |
|
|
|
|
| |
Amazon.com Inc. * |
| 2,000 |
| 161,040 |
| |
Expedia Inc. * |
| 187,200 |
| 2,547,792 |
| |
Shutterfly Inc. * |
| 31,500 |
| 403,515 |
| |
|
|
|
| 3,112,347 |
| |
INTERNET SOFTWARE & SERVICES—5.4% |
|
|
|
|
| |
eBay Inc. * |
| 93,200 |
| 1,535,004 |
| |
Google Inc., Cl. A * |
| 4,600 |
| 1,821,462 |
| |
GSI Commerce Inc. *,‡ |
| 107,400 |
| 1,526,154 |
| |
IAC/InterActiveCorp. *,‡ |
| 148,600 |
| 2,380,572 |
| |
Netease.com #* |
| 37,600 |
| 1,134,768 |
| |
Yahoo! Inc. * |
| 45,400 |
| 648,766 |
| |
|
|
|
| 9,046,726 |
| |
INVESTMENT BANKING & BROKERAGE—1.4% |
|
|
|
|
| |
Goldman Sachs Group Inc., /The |
| 8,000 |
| 1,028,000 |
| |
Morgan Stanley |
| 49,800 |
| 1,177,272 |
| |
|
|
|
| 2,205,272 |
| |
IT CONSULTING & OTHER SERVICES—1.2% |
|
|
|
|
| |
Cognizant Technology Solutions Corp., Cl. A*,‡ |
| 82,000 |
| 2,032,780 |
|
17
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
LEISURE PRODUCTS—0.1% |
|
|
|
|
| |
Gildan Activewear Inc.* |
| 20,671 |
| $ | 236,683 |
|
|
|
|
|
|
| |
LIFE SCIENCES TOOLS & SERVICES—2.5% |
|
|
|
|
| |
Icon PLC #* |
| 120,480 |
| 1,908,403 |
| |
Life Technologies Corp. * |
| 37,400 |
| 1,395,020 |
| |
Thermo Fisher Scientific Inc. *,‡ |
| 24,800 |
| 869,984 |
| |
|
|
|
| 4,173,407 |
| |
MANAGED HEALTH CARE—2.3% |
|
|
|
|
| |
Aetna Inc. |
| 22,600 |
| 497,426 |
| |
WellPoint Inc. *,‡ |
| 78,800 |
| 3,369,488 |
| |
|
|
|
| 3,866,914 |
| |
METAL & GLASS CONTAINERS—3.2% |
|
|
|
|
| |
Crown Holdings Inc. * |
| 99,200 |
| 2,187,360 |
| |
Owens-Illinois Inc. * |
| 92,500 |
| 2,256,075 |
| |
Silgan Holdings Inc. |
| 17,600 |
| 818,224 |
| |
|
|
|
| 5,261,659 |
| |
MOVIES & ENTERTAINMENT—0.9% |
|
|
|
|
| |
Regal Entertainment Group, Cl. A |
| 71,300 |
| 931,178 |
| |
Walt Disney Co., /The |
| 23,200 |
| 508,080 |
| |
|
|
|
| 1,439,258 |
| |
MULTI-UTILITIES—0.7% |
|
|
|
|
| |
Veolia Environnement# |
| 43,000 |
| 1,174,330 |
| |
|
|
|
|
|
| |
OIL & GAS DRILLING—1.3% |
|
|
|
|
| |
Transocean Ltd.*,‡ |
| 31,400 |
| 2,118,872 |
| |
|
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—0.8% |
|
|
|
|
| |
Weatherford International Ltd.* |
| 84,700 |
| 1,408,561 |
| |
|
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—3.7% |
|
|
|
|
| |
Chesapeake Energy Corp. |
| 154,100 |
| 3,037,311 |
| |
Newfield Exploration Co. * |
| 12,400 |
| 386,632 |
| |
Nexen Inc. ‡ |
| 132,800 |
| 2,536,480 |
| |
|
|
|
| 5,960,423 |
| |
OIL & GAS REFINING & MARKETING—1.2% |
|
|
|
|
| |
NuStar Energy LP‡ |
| 40,400 |
| 2,035,756 |
| |
|
|
|
|
|
| |
OIL & GAS STORAGE & TRANSPORTATION—0.5% |
|
|
|
|
| |
Magellan Midstream Holdings LP |
| 8,400 |
| 166,656 |
| |
NuStar GP Holdings LLC. |
| 18,100 |
| 409,241 |
| |
Plains All American Pipeline LP |
| 4,100 |
| 173,594 |
| |
|
|
|
| 749,491 |
| |
OTHER DIVERSIFIED FINANCIAL SERVICES—0.8% |
|
|
|
|
| |
BM&F BOVESPA SA |
| 275,900 |
| 1,128,355 |
| |
JPMorgan Chase & Co. |
| 4,900 |
| 161,700 |
| |
|
|
|
| 1,290,055 |
| |
PACKAGED FOODS & MEATS—1.0% |
|
|
|
|
| |
General Mills Inc.‡ |
| 34,200 |
| 1,733,598 |
| |
|
|
|
|
|
| |
PAPER PACKAGING—0.1% |
|
|
|
|
| |
Temple-Inland Inc. |
| 13,400 |
| 159,996 |
| |
18
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
PHARMACEUTICALS—6.5% |
|
|
|
|
| |
Abbott Laboratories ‡ |
| 125,900 |
| $ | 5,268,915 |
|
Allergan Inc. |
| 7,200 |
| 335,952 |
| |
Auxilium Pharmaceuticals Inc. * |
| 22,100 |
| 506,090 |
| |
Bristol-Myers Squibb Co. |
| 19,800 |
| 380,160 |
| |
Johnson & Johnson |
| 6,300 |
| 329,868 |
| |
Medicis Pharmaceutical Corp., Cl. A |
| 36,600 |
| 588,162 |
| |
Optimer Pharmaceuticals Inc. *,‡ |
| 109,300 |
| 1,526,921 |
| |
Shire PLC # |
| 4,500 |
| 167,715 |
| |
Teva Pharmaceutical Industries Ltd. # |
| 3,700 |
| 162,393 |
| |
Wyeth |
| 38,800 |
| 1,645,120 |
| |
|
|
|
| 10,911,296 |
| |
PROPERTY & CASUALTY INSURANCE—0.9% |
|
|
|
|
| |
Travelers Cos. Inc., /The |
| 34,900 |
| 1,435,786 |
| |
|
|
|
|
|
| |
PUBLISHING—1.5% |
|
|
|
|
| |
McGraw-Hill Cos. Inc., /The‡ |
| 77,300 |
| 2,330,595 |
| |
|
|
|
|
|
| |
REAL ESTATE SERVICES—0.1% |
|
|
|
|
| |
Mack-Cali Realty Corp. |
| 7,000 |
| 188,020 |
| |
|
|
|
|
|
| |
REGIONAL BANKS—0.1% |
|
|
|
|
| |
Keycorp |
| 32,200 |
| 198,030 |
| |
|
|
|
|
|
| |
RESTAURANTS—0.7% |
|
|
|
|
| |
McDonald’s Corp. |
| 13,600 |
| 724,744 |
| |
Wendy’s/Arby’s Group Inc. |
| 88,400 |
| 442,000 |
| |
|
|
|
| 1,166,744 |
| |
RETAIL REITS—0.1% |
|
|
|
|
| |
Regency Centers Corp. |
| 6,700 |
| 250,915 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—3.7% |
|
|
|
|
| |
Atheros Communications Inc. * |
| 91,200 |
| 1,570,464 |
| |
Broadcom Corp., Cl. A * |
| 32,400 |
| 751,356 |
| |
Marvell Technology Group Ltd. *,‡ |
| 133,700 |
| 1,468,026 |
| |
National Semiconductor Corp. |
| 46,300 |
| 572,731 |
| |
ON Semiconductor Corp. * |
| 212,100 |
| 1,149,582 |
| |
Taiwan Semiconductor Manufacturing Co., Ltd. # |
| 58,000 |
| 613,060 |
| |
|
|
|
| 6,125,219 |
| |
SOFT DRINKS—0.9% |
|
|
|
|
| |
Coca-Cola Co., /The‡ |
| 33,100 |
| 1,424,955 |
| |
|
|
|
|
|
| |
SPECIALIZED FINANCE—1.0% |
|
|
|
|
| |
NYSE Euronext‡ |
| 72,200 |
| 1,672,874 |
| |
|
|
|
|
|
| |
SPECIALTY CHEMICALS—0.9% |
|
|
|
|
| |
Albemarle Corp. |
| 12,100 |
| 324,522 |
| |
Lubrizol Corp. |
| 9,700 |
| 419,234 |
| |
Rockwood Holdings Inc. * |
| 66,503 |
| 817,987 |
| |
|
|
|
| 1,561,743 |
| |
STEEL—0.1% |
|
|
|
|
| |
AK Steel Holding Corp. |
| 8,200 |
| 106,682 |
| |
|
|
|
|
|
| |
SYSTEMS SOFTWARE—3.8% |
|
|
|
|
| |
Microsoft Corp. ‡ |
| 265,600 |
| 5,381,056 |
| |
19
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
SYSTEMS SOFTWARE—(CONT.) |
|
|
|
|
| |
Symantec Corp. * |
| 53,200 |
| $ | 917,700 |
|
|
|
|
| 6,298,756 |
| |
TECHNOLOGY DISTRIBUTORS—0.8% |
|
|
|
|
| |
Mellanox Technologies Ltd.* |
| 125,900 |
| 1,284,180 |
| |
|
|
|
|
|
| |
THRIFTS & MORTGAGE FINANCE—1.9% |
|
|
|
|
| |
People’s United Financial Inc. |
| 85,300 |
| 1,332,386 |
| |
TFS Financial Corp. ‡ |
| 142,800 |
| 1,675,044 |
| |
|
|
|
| 3,007,430 |
| |
TOBACCO—3.3% |
|
|
|
|
| |
Philip Morris International Inc. ‡ |
| 152,500 |
| 5,520,500 |
| |
|
|
|
|
|
| |
WIRELESS TELECOMMUNICATION SERVICES—0.5% |
|
|
|
|
| |
American Tower Corp., Cl. A* |
| 24,300 |
| 771,768 |
| |
|
|
|
|
|
| |
TOTAL COMMON STOCKS |
|
|
|
|
| |
(Cost $184,591,919) |
|
|
| 174,556,704 |
| |
|
|
|
|
|
| |
CONVERTIBLE PREFERRED STOCK—0.6% |
|
|
|
|
| |
PHARMACEUTICALS—0.6% |
|
|
|
|
| |
Mylan Inc., 6.50%, 11/15/10(a) |
|
|
|
|
| |
(Cost $802,523) |
| 1,138 |
| 969,576 |
| |
|
|
|
|
|
| |
|
| PRINCIPAL |
|
|
| |
|
| AMOUNT |
|
|
| |
CONVERTIBLE CORPORATE BONDS—0.6% |
|
|
|
|
| |
AUTO PARTS & EQUIPMENT—0.2% |
|
|
|
|
| |
BorgWarner Inc.., 3.50%, 4/15/12 |
| 250,000 |
| 290,000 |
| |
|
|
|
|
|
| |
LIFE SCIENCES TOOLS & SERVICES—0.2% |
|
|
|
|
| |
Invitrogen Corp., 3.25%, 6/15/25 |
| 517,000 |
| 521,524 |
| |
|
|
|
|
|
| |
STEEL—0.2% |
|
|
|
|
| |
ArcelorMittal., 5.00%, 5/15/14 |
| 250,000 |
| 259,800 |
| |
|
|
|
|
|
| |
TOTAL CONVERTIBLE CORPORATE BONDS |
|
|
|
|
| |
(Cost $954,359) |
|
|
| 1,071,324 |
| |
|
|
|
|
|
| |
SHORT-TERM INVESTMENTS—0.1% |
|
|
|
|
| |
TIME DEPOSITS—0.1% |
|
|
|
|
| |
Citibank London, 0.03%, 5/01/09 |
|
|
|
|
| |
(Cost $118,722) |
| 118,722 |
| 118,722 |
| |
|
|
|
|
|
| |
Total Investments |
|
|
|
|
| |
(Cost $186,467,523)(b) |
| 106.9 | % | 176,716,326 |
| |
Liabilities in Excess of Other Assets |
| (6.9 | ) | (11,205,301 | ) | |
|
|
|
|
|
| |
NET ASSETS |
| 100.0 | % | $ | 165,511,025 |
|
‡ All or a portion of this security is held as collateral for securities sold short.
* Non-income producing security.
# American Depositary Receipts.
20
(a) These securities are required to be converted on the date listed; they generally may be converted prior to this date at the option of the holder.
(b) At April 30, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $196,359,785 amounted to $19,643,459 which consisted of aggregate gross unrealized appreciation of $11,715,388 and aggregate gross unrealized depreciation of $31,358,847.
See Notes to Financial Statements.
21
THE ALGER FUNDS II | ALGER SPECTRA FUND
Securities Sold Short (Unaudited) April 30, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(8.4)% |
|
|
|
|
| |
REINSURANCE—(0.1)% |
|
|
|
|
| |
RenaissanceRe Holdings Ltd. |
| 4,400 |
| $ | 214,104 |
|
|
|
|
|
|
| |
DIVERSIFIED BANKS—(0.1)% |
|
|
|
|
| |
Royal Bank of Canada |
| 4,800 |
| 169,632 |
| |
|
|
|
|
|
| |
APPLICATION SOFTWARE—(0.6)% |
|
|
|
|
| |
SAP AG# |
| 4,500 |
| 171,405 |
| |
Autodesk Inc.* |
| 39,100 |
| 779,654 |
| |
|
|
|
| 951,059 |
| |
INTEGRATED TELECOMMUNICATION SERVICES—(0.4)% |
|
|
|
|
| |
Telefonos de Mexico SAB de CV# |
| 36,600 |
| 585,600 |
| |
|
|
|
|
|
| |
CONSUMER FINANCE—(0.1)% |
|
|
|
|
| |
American Express Co. |
| 3,300 |
| 83,226 |
| |
|
|
|
|
|
| |
RESIDENTIAL REITS—(0.2)% |
|
|
|
|
| |
AvalonBay Communities Inc. |
| 5,300 |
| 301,093 |
| |
|
|
|
|
|
| |
HEALTH CARE EQUIPMENT—(0.3)% |
|
|
|
|
| |
CR Bard Inc. |
| 7,500 |
| 537,225 |
| |
|
|
|
|
|
| |
SPECIALTY STORES—(0.8)% |
|
|
|
|
| |
Barnes & Noble Inc. |
| 51,100 |
| 1,334,732 |
| |
|
|
|
|
|
| |
SECURITY & ALARM SERVICES—(0.3)% |
|
|
|
|
| |
Brink’s Co., /The |
| 17,200 |
| 487,620 |
| |
|
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—(0.3)% |
|
|
|
|
| |
CARBO Ceramics Inc. |
| 16,300 |
| 500,573 |
| |
|
|
|
|
|
| |
TRADING COMPANIES & DISTRIBUTORS—(0.9)% |
|
|
|
|
| |
Fastenal Co. |
| 39,800 |
| 1,526,728 |
| |
|
|
|
|
|
| |
DEPARTMENT STORES—(0.5)% |
|
|
|
|
| |
Kohl’s Corp.* |
| 18,900 |
| 857,115 |
| |
|
|
|
|
|
| |
TRUCKING—(0.5)% |
|
|
|
|
| |
Landstar System Inc. |
| 23,200 |
| 826,152 |
| |
|
|
|
|
|
| |
WIRELESS TELECOMMUNICATION SERVICES—(0.7)% |
|
|
|
|
| |
MetroPCS Communications Inc.* |
| 62,300 |
| 1,064,707 |
| |
|
|
|
|
|
| |
THRIFTS & MORTGAGE FINANCE—(0.7)% |
|
|
|
|
| |
New York Community Bancorp Inc. |
| 103,300 |
| 1,168,323 |
| |
|
|
|
|
|
| |
RESTAURANTS—(0.4)% |
|
|
|
|
| |
PF Chang’s China Bistro Inc.* |
| 19,800 |
| 597,564 |
| |
|
|
|
|
|
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—(0.3)% |
|
|
|
|
| |
PACCAR Inc. |
| 12,500 |
| 443,000 |
| |
|
|
|
|
|
| |
PAPER PACKAGING—(0.2)% |
|
|
|
|
| |
Packaging Corp., of America |
| 20,400 |
| 323,748 |
| |
|
|
|
|
|
| |
IT CONSULTING & OTHER SERVICES—(0.8)% |
|
|
|
|
| |
SAIC Inc.* |
| 71,500 |
| 1,294,150 |
| |
|
|
|
|
|
| |
RETAIL REITS—(0.1)% |
|
|
|
|
| |
Simon Property Group Inc. |
| 3,400 |
| 175,440 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—(0.3)% |
|
|
|
|
| |
Texas Instruments Inc. |
| 27,600 |
| 498,456 |
| |
|
|
|
|
|
| |
TOTAL (proceeds $12,643,989) |
|
|
| $ | 13,940,247 |
|
* Non-income producing security.
# American Depositary Receipts.
See Notes to Financial Statements.
22
THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments (Unaudited) April 30, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.)—91.2% |
|
|
|
|
| |
AEROSPACE & DEFENSE—0.8% |
|
|
|
|
| |
General Dynamics Corp. |
| 3,395 |
| $ | 175,420 |
|
|
|
|
|
|
| |
AIR FREIGHT & LOGISTICS—0.9% |
|
|
|
|
| |
United Parcel Service Inc., Cl. B |
| 3,770 |
| 197,322 |
| |
|
|
|
|
|
| |
APPAREL RETAIL—0.5% |
|
|
|
|
| |
Gap Inc., /The |
| 7,205 |
| 111,966 |
| |
|
|
|
|
|
| |
APPLICATION SOFTWARE—2.0% |
|
|
|
|
| |
Adobe Systems Inc. * |
| 9,280 |
| 253,808 |
| |
Solera Holdings Inc. * |
| 8,355 |
| 190,661 |
| |
|
|
|
| 444,469 |
| |
AUTO PARTS & EQUIPMENT—0.6% |
|
|
|
|
| |
Fuel Systems Solutions Inc.* |
| 8,770 |
| 133,918 |
| |
|
|
|
|
|
| |
BIOTECHNOLOGY—2.9% |
|
|
|
|
| |
Celgene Corp. * |
| 3,690 |
| 157,637 |
| |
Genzyme Corp. * |
| 1,900 |
| 101,327 |
| |
Metabolix Inc. * |
| 27,440 |
| 216,776 |
| |
United Therapeutics Corp. * |
| 2,725 |
| 171,157 |
| |
|
|
|
| 646,897 |
| |
BROADCASTING & CABLE TV—1.1% |
|
|
|
|
| |
Discovery Communications Inc.* |
| 13,035 |
| 247,535 |
| |
|
|
|
|
|
| |
CABLE & SATELLITE—0.9% |
|
|
|
|
| |
DIRECTV Group Inc., /The* |
| 8,670 |
| 214,409 |
| |
|
|
|
|
|
| |
CASINOS & GAMING—0.5% |
|
|
|
|
| |
Las Vegas Sands Corp.* |
| 15,030 |
| 117,535 |
| |
|
|
|
|
|
| |
COMMERCIAL PRINTING—1.0% |
|
|
|
|
| |
Warnaco Group Inc., /The* |
| 7,925 |
| 228,557 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—2.2% |
|
|
|
|
| |
Cisco Systems Inc.* |
| 25,700 |
| 496,524 |
| |
|
|
|
|
|
| |
COMPUTER & ELECTRONICS RETAIL—0.8% |
|
|
|
|
| |
GameStop Corp., Cl. A* |
| 5,920 |
| 178,547 |
| |
|
|
|
|
|
| |
COMPUTER HARDWARE—7.3% |
|
|
|
|
| |
Apple Inc. * |
| 6,365 |
| 800,908 |
| |
Hewlett-Packard Co. |
| 10,490 |
| 377,430 |
| |
International Business Machines Corp. |
| 4,705 |
| 485,603 |
| |
|
|
|
| 1,663,941 |
| |
CONSTRUCTION & ENGINEERING—0.8% |
|
|
|
|
| |
Aecom Technology Corp.* |
| 7,015 |
| 180,496 |
| |
|
|
|
|
|
| |
DATA PROCESSING & OUTSOURCED SERVICES—2.3% |
|
|
|
|
| |
TeleTech Holdings Inc. * |
| 21,785 |
| 289,087 |
| |
Visa Inc., Cl. A |
| 3,710 |
| 241,002 |
| |
|
|
|
| 530,089 |
| |
DISTRIBUTORS—1.0% |
|
|
|
|
| |
LKQ Corp.* |
| 13,505 |
| 229,315 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.4% |
|
|
|
|
| |
Comerica Inc. |
| 4,830 |
| 101,333 |
| |
23
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
EDUCATION SERVICES—0.9% |
|
|
|
|
| |
ITT Educational Services Inc.* |
| 2,030 |
| $ | 204,563 |
|
|
|
|
|
|
| |
ELECTRIC UTILITIES—1.4% |
|
|
|
|
| |
Duke Energy Corp. |
| 15,455 |
| 213,433 |
| |
ITC Holdings Corp. |
| 2,520 |
| 109,696 |
| |
|
|
|
| 323,129 |
| |
ELECTRICAL COMPONENTS & EQUIPMENT—3.8% |
|
|
|
|
| |
First Solar Inc. * |
| 2,370 |
| 443,878 |
| |
General Cable Corp. * |
| 5,410 |
| 146,827 |
| |
SunPower Corp., Cl. A * |
| 9,605 |
| 262,985 |
| |
|
|
|
| 853,690 |
| |
ELECTRONIC COMPONENTS—1.3% |
|
|
|
|
| |
Dolby Laboratories Inc., Cl. A* |
| 7,065 |
| 283,518 |
| |
|
|
|
|
|
| |
ENVIRONMENTAL & FACILITIES SERVICES—4.3% |
|
|
|
|
| |
Covanta Holding Corp. * |
| 12,940 |
| 182,583 |
| |
EnergySolutions Inc. |
| 32,740 |
| 317,578 |
| |
Tetra Tech Inc. * |
| 9,180 |
| 225,461 |
| |
Waste Management Inc. |
| 9,930 |
| 264,833 |
| |
|
|
|
| 990,455 |
| |
FOOD DISTRIBUTORS—0.6% |
|
|
|
|
| |
Diedrich Coffee Inc.* |
| 14,070 |
| 136,760 |
| |
|
|
|
|
|
| |
FOOD RETAIL—1.4% |
|
|
|
|
| |
Whole Foods Market Inc. |
| 15,015 |
| 311,261 |
| |
|
|
|
|
|
| |
FOOTWEAR—1.2% |
|
|
|
|
| |
NIKE Inc., Cl. B |
| 5,020 |
| 263,399 |
| |
|
|
|
|
|
| |
GENERAL MERCHANDISE STORES—0.3% |
|
|
|
|
| |
Target Corp. |
| 1,645 |
| 67,873 |
| |
|
|
|
|
|
| |
HEALTH CARE EQUIPMENT—0.5% |
|
|
|
|
| |
Covidien Ltd. |
| 3,690 |
| 121,696 |
| |
|
|
|
|
|
| |
HEALTH CARE SUPPLIES—1.0% |
|
|
|
|
| |
Inverness Medical Innovations Inc.* |
| 7,025 |
| 226,837 |
| |
|
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—0.7% |
|
|
|
|
| |
Vestas Wind Systems A/S* |
| 2,360 |
| 155,970 |
| |
|
|
|
|
|
| |
HOME ENTERTAINMENT SOFTWARE—0.0% |
|
|
|
|
| |
Rosetta Stone Inc.* |
| 105 |
| 3,145 |
| |
|
|
|
|
|
| |
HOMEBUILDING—1.0% |
|
|
|
|
| |
KB Home |
| 12,440 |
| 224,791 |
| |
|
|
|
|
|
| |
HOTELS RESORTS & CRUISE LINES—0.7% |
|
|
|
|
| |
Carnival Corp. |
| 5,525 |
| 148,512 |
| |
|
|
|
|
|
| |
HOUSEHOLD PRODUCTS—1.3% |
|
|
|
|
| |
Procter & Gamble Co., /The |
| 5,954 |
| 294,366 |
| |
|
|
|
|
|
| |
HYPERMARKETS & SUPER CENTERS—2.6% |
|
|
|
|
| |
Wal-Mart Stores Inc. |
| 11,545 |
| 581,868 |
| |
|
|
|
|
|
| |
INDUSTRIAL GASES—0.5% |
|
|
|
|
| |
Praxair Inc. |
| 1,530 |
| 114,153 |
| |
24
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.7% |
|
|
|
|
| |
SPX Corp. |
| 3,490 |
| $ | 161,133 |
|
|
|
|
|
|
| |
INTEGRATED OIL & GAS—1.4% |
|
|
|
|
| |
BP PLC # |
| 2,250 |
| 95,535 |
| |
Chevron Corp. |
| 3,525 |
| 233,002 |
| |
|
|
|
| 328,537 |
| |
INTERNET RETAIL—1.9% |
|
|
|
|
| |
Amazon.com Inc. * |
| 1,310 |
| 105,481 |
| |
Expedia Inc. * |
| 25,110 |
| 341,746 |
| |
|
|
|
| 447,227 |
| |
INTERNET SOFTWARE & SERVICES—7.5% |
|
|
|
|
| |
eBay Inc. * |
| 18,935 |
| 311,859 |
| |
Google Inc., Cl. A * |
| 1,190 |
| 471,204 |
| |
IAC/InterActiveCorp. * |
| 15,620 |
| 250,232 |
| |
Netease.com #* |
| 7,265 |
| 219,258 |
| |
Vignette Corp. * |
| 28,660 |
| 236,732 |
| |
Yahoo! Inc. * |
| 14,855 |
| 212,278 |
| |
|
|
|
| 1,701,563 |
| |
INVESTMENT BANKING & BROKERAGE—1.8% |
|
|
|
|
| |
Goldman Sachs Group Inc., /The |
| 2,140 |
| 274,989 |
| |
Morgan Stanley |
| 5,040 |
| 119,146 |
| |
|
|
|
| 394,135 |
| |
LIFE SCIENCES TOOLS & SERVICES—0.9% |
|
|
|
|
| |
Life Technologies Corp.* |
| 5,200 |
| 193,960 |
| |
|
|
|
|
|
| |
MANAGED HEALTH CARE—1.1% |
|
|
|
|
| |
WellPoint Inc.* |
| 5,915 |
| 252,925 |
| |
|
|
|
|
|
| |
METAL & GLASS CONTAINERS—1.1% |
|
|
|
|
| |
Crown Holdings Inc.* |
| 11,090 |
| 244,535 |
| |
|
|
|
|
|
| |
MOVIES & ENTERTAINMENT—0.3% |
|
|
|
|
| |
Walt Disney Co., /The |
| 2,595 |
| 56,831 |
| |
|
|
|
|
|
| |
OFFICE REITS—0.6% |
|
|
|
|
| |
Digital Realty Trust Inc. |
| 4,025 |
| 144,940 |
| |
|
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—0.5% |
|
|
|
|
| |
Nexen Inc. |
| 5,455 |
| 104,191 |
| |
|
|
|
|
|
| |
OTHER DIVERSIFIED FINANCIAL SERVICES—0.5% |
|
|
|
|
| |
Bank of America Corp. |
| 11,935 |
| 106,580 |
| |
|
|
|
|
|
| |
PACKAGED FOODS & MEATS—0.8% |
|
|
|
|
| |
General Mills Inc. |
| 3,760 |
| 190,594 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—5.0% |
|
|
|
|
| |
Abbott Laboratories |
| 7,800 |
| 326,430 |
| |
Johnson & Johnson |
| 7,120 |
| 372,804 |
| |
Merck & Co., Inc. |
| 7,280 |
| 176,467 |
| |
Wyeth |
| 6,145 |
| 260,548 |
| |
|
|
|
| 1,136,249 |
| |
PROPERTY & CASUALTY INSURANCE—0.7% |
|
|
|
|
| |
Travelers Cos. Inc., /The |
| 3,925 |
| 161,475 |
| |
25
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
RAILROADS—0.8% |
|
|
|
|
| |
Norfolk Southern Corp. |
| 4,865 |
| $ | 173,583 |
|
|
|
|
|
|
| |
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.7% |
|
|
|
|
| |
Brookfield Asset Management Inc. |
| 9,860 |
| 153,126 |
| |
|
|
|
|
|
| |
RESTAURANTS—1.2% |
|
|
|
|
| |
Starbucks Corp.* |
| 19,305 |
| 279,150 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—4.5% |
|
|
|
|
| |
Altera Corp. |
| 3,205 |
| 52,274 |
| |
Atheros Communications Inc. * |
| 13,065 |
| 224,979 |
| |
Broadcom Corp., Cl. A * |
| 7,585 |
| 175,896 |
| |
Cree Inc. * |
| 6,790 |
| 185,978 |
| |
Intel Corp. |
| 23,465 |
| 370,278 |
| |
|
|
|
| 1,009,405 |
| |
SOFT DRINKS—2.6% |
|
|
|
|
| |
Coca-Cola Co., /The |
| 8,505 |
| 366,141 |
| |
Hansen Natural Corp. * |
| 5,700 |
| 232,332 |
| |
|
|
|
| 598,473 |
| |
SPECIALIZED FINANCE—0.8% |
|
|
|
|
| |
NYSE Euronext |
| 7,805 |
| 180,842 |
| |
|
|
|
|
|
| |
SPECIALTY CHEMICALS—2.0% |
|
|
|
|
| |
Nalco Holding Co. |
| 13,415 |
| 218,933 |
| |
Rockwood Holdings Inc. * |
| 19,790 |
| 243,417 |
| |
|
|
|
| 462,350 |
| |
SYSTEMS SOFTWARE—4.3% |
|
|
|
|
| |
Microsoft Corp. |
| 34,680 |
| 702,617 |
| |
Oracle Corp. |
| 13,995 |
| 270,663 |
| |
|
|
|
| 973,280 |
| |
TOTAL COMMON STOCKS |
|
|
| 20,659,343 |
| |
|
|
|
|
|
| |
|
| PRINCIPAL |
|
|
| |
|
| AMOUNT |
|
|
| |
SHORT-TERM INVESTMENTS—7.4% |
|
|
|
|
| |
TIME DEPOSITS—7.4% |
|
|
|
|
| |
Wells Fargo Grand Cayman, 0.03%, 5/1/09 |
| 800,000 |
| 800,000 |
| |
Bank of American NA, 0.03%, 5/1/09 |
| 78,094 |
| 78,094 |
| |
Citibank London, 0.03%, 5/1/09 |
| 800,000 |
| 800,000 |
| |
|
|
|
|
|
| |
TOTAL TIME DEPOSITS |
|
|
| 1,678,094 |
| |
|
|
|
|
|
| |
Total Investments |
| 98.6 | % | 22,337,437 |
| |
Other Assets in Excess of Liabilities |
| 1.4 |
| 326,337 |
| |
|
|
|
|
|
| |
NET ASSETS |
| 100.0 | % | $ | 22,663,774 |
|
* | Non-income producing security. |
# | American Depositary Receipts. |
26
(a) | At April 30, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $25,096,272 amounted to $2,758,835 which consisted of aggregate gross unrealized appreciation of $1,321,992 and aggregate gross unrealized depreciation of $4,080,827. |
See Notes to Financial Statements.
27
(This page has been intentionally left blank)
THE ALGER FUNDS II | ALGER ANALYST FUND
Schedule of Investments (Unaudited) April 30, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—81.3% |
|
|
|
|
| |
AEROSPACE & DEFENSE—1.0% |
|
|
|
|
| |
BE Aerospace Inc. * |
| 915 |
| $ | 9,873 |
|
L-3 Communications Holdings Inc. |
| 89 |
| 6,777 |
| |
|
|
|
| 16,650 |
| |
AIR FREIGHT & LOGISTICS—0.4% |
|
|
|
|
| |
United Parcel Service Inc., Cl. B |
| 109 |
| 5,705 |
| |
|
|
|
|
|
| |
APPAREL RETAIL—0.9% |
|
|
|
|
| |
Chico’s FAS Inc. * |
| 1,254 |
| 9,581 |
| |
Gap Inc., /The |
| 44 |
| 684 |
| |
Urban Outfitters Inc. * |
| 227 |
| 4,424 |
| |
|
|
|
| 14,689 |
| |
APPLICATION SOFTWARE—2.8% |
|
|
|
|
| |
Ansys Inc. * |
| 180 |
| 4,972 |
| |
Concur Technologies Inc. * |
| 102 |
| 2,761 |
| |
Intuit Inc. * |
| 281 |
| 6,500 |
| |
Net 1 UEPS Technologies Inc. * |
| 300 |
| 4,950 |
| |
Salesforce.com Inc. * |
| 339 |
| 14,512 |
| |
Synchronoss Technologies Inc. * |
| 461 |
| 6,122 |
| |
Taleo Corp., Cl. A * |
| 460 |
| 5,525 |
| |
|
|
|
| 45,342 |
| |
ASSET MANAGEMENT & CUSTODY BANKS—0.6% |
|
|
|
|
| |
AllianceBernstein Holding LP |
| 300 |
| 5,256 |
| |
Northern Trust Corp. |
| 90 |
| 4,892 |
| |
|
|
|
| 10,148 |
| |
AUTOMOTIVE RETAIL—0.6% |
|
|
|
|
| |
Advance Auto Parts Inc. |
| 213 |
| 9,319 |
| |
|
|
|
|
|
| |
BIOTECHNOLOGY—5.3% |
|
|
|
|
| |
Alexion Pharmaceuticals Inc. * |
| 662 |
| 22,124 |
| |
Biogen Idec Inc. * |
| 220 |
| 10,635 |
| |
Celgene Corp. * |
| 555 |
| 23,709 |
| |
Cephalon Inc. * |
| 141 |
| 9,251 |
| |
Genzyme Corp. * |
| 157 |
| 8,373 |
| |
Seattle Genetics Inc. * |
| 1,094 |
| 10,098 |
| |
|
|
|
| 84,190 |
| |
BROADCASTING & CABLE TV—0.6% |
|
|
|
|
| |
Discovery Communications Inc.* |
| 467 |
| 8,868 |
| |
|
|
|
|
|
| |
CABLE & SATELLITE—0.6% |
|
|
|
|
| |
DIRECTV Group Inc., /The* |
| 362 |
| 8,952 |
| |
|
|
|
|
|
| |
CASINOS & GAMING—1.7% |
|
|
|
|
| |
Bally Technologies Inc. * |
| 49 |
| 1,283 |
| |
Las Vegas Sands Corp. * |
| 1,740 |
| 13,607 |
| |
Penn National Gaming Inc. * |
| 297 |
| 10,104 |
| |
WMS Industries Inc. * |
| 44 |
| 1,413 |
| |
|
|
|
| 26,407 |
| |
COMMERCIAL PRINTING—0.7% |
|
|
|
|
| |
Warnaco Group Inc., /The* |
| 404 |
| 11,651 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—2.7% |
|
|
|
|
| |
F5 Networks Inc. * |
| 217 |
| 5,918 |
| |
29
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—(CONT.) |
|
|
|
|
| |
Nice Systems Ltd. #* |
| 37 |
| $ | 948 |
|
Polycom Inc. * |
| 620 |
| 11,557 |
| |
Qualcomm Inc. |
| 135 |
| 5,713 |
| |
Research In Motion Ltd. * |
| 208 |
| 14,455 |
| |
Starent Networks Corp. * |
| 255 |
| 5,031 |
| |
|
|
|
| 43,622 |
| |
COMPUTER & ELECTRONICS RETAIL—0.6% |
|
|
|
|
| |
Best Buy Co., Inc. |
| 71 |
| 2,725 |
| |
GameStop Corp., Cl. A * |
| 246 |
| 7,419 |
| |
|
|
|
| 10,144 |
| |
COMPUTER HARDWARE—2.7% |
|
|
|
|
| |
Apple Inc. * |
| 138 |
| 17,365 |
| |
Hewlett-Packard Co. |
| 706 |
| 25,401 |
| |
|
|
|
| 42,766 |
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.8% |
|
|
|
|
| |
Bucyrus International Inc. |
| 571 |
| 12,396 |
| |
|
|
|
|
|
| |
DATA PROCESSING & OUTSOURCED SERVICES—0.7% |
|
|
|
|
| |
Affiliated Computer Services Inc., Cl. A * |
| 75 |
| 3,629 |
| |
Mastercard Inc. |
| 39 |
| 7,154 |
| |
|
|
|
| 10,783 |
| |
DISTILLERS & VINTNERS—0.5% |
|
|
|
|
| |
Central European Distribution Corp.* |
| 366 |
| 8,198 |
| |
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—0.1% |
|
|
|
|
| |
Cia Vale do Rio Doce# |
| 126 |
| 2,080 |
| |
|
|
|
|
|
| |
DRUG RETAIL—0.4% |
|
|
|
|
| |
CVS Caremark Corp. |
| 89 |
| 2,828 |
| |
Walgreen Co. |
| 88 |
| 2,766 |
| |
|
|
|
| 5,594 |
| |
EDUCATION SERVICES—0.9% |
|
|
|
|
| |
Corinthian Colleges Inc. * |
| 501 |
| 7,716 |
| |
ITT Educational Services Inc. * |
| 60 |
| 6,046 |
| |
|
|
|
| 13,762 |
| |
ELECTRIC UTILITIES—0.4% |
|
|
|
|
| |
Northeast Utilities |
| 301 |
| 6,327 |
| |
|
|
|
|
|
| |
ELECTRONIC COMPONENTS—0.3% |
|
|
|
|
| |
Dolby Laboratories Inc., Cl. A* |
| 102 |
| 4,093 |
| |
|
|
|
|
|
| |
ENVIRONMENTAL & FACILITIES SERVICES—0.3% |
|
|
|
|
| |
Waste Connections Inc.* |
| 168 |
| 4,331 |
| |
|
|
|
|
|
| |
FOOD RETAIL—1.3% |
|
|
|
|
| |
Kroger Co., /The |
| 221 |
| 4,778 |
| |
Whole Foods Market Inc. |
| 761 |
| 15,776 |
| |
|
|
|
| 20,554 |
| |
FOOTWEAR—1.0% |
|
|
|
|
| |
Iconix Brand Group Inc. * |
| 423 |
| 6,032 |
| |
NIKE Inc., Cl. B |
| 185 |
| 9,707 |
| |
|
|
|
| 15,739 |
| |
30
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
GENERAL MERCHANDISE STORES—0.9% |
|
|
|
|
| |
Target Corp. |
| 342 |
| $ | 14,111 |
|
|
|
|
|
|
| |
GOLD—0.5% |
|
|
|
|
| |
Goldcorp Inc. |
| 142 |
| 3,908 |
| |
Yamana Gold Inc. |
| 462 |
| 3,654 |
| |
|
|
|
| 7,562 |
| |
HEALTH CARE EQUIPMENT—1.3% |
|
|
|
|
| |
Boston Scientific Corp. * |
| 798 |
| 6,710 |
| |
Insulet Corp. * |
| 632 |
| 3,634 |
| |
Masimo Corp. * |
| 72 |
| 2,081 |
| |
NuVasive Inc. * |
| 53 |
| 2,009 |
| |
St. Jude Medical Inc. * |
| 184 |
| 6,168 |
| |
|
|
|
| 20,602 |
| |
HEALTH CARE FACILITIES—2.0% |
|
|
|
|
| |
Community Health Systems Inc. * |
| 500 |
| 11,420 |
| |
Universal Health Services Inc., Cl. B |
| 400 |
| 20,160 |
| |
|
|
|
| 31,580 |
| |
HEALTH CARE SUPPLIES—0.2% |
|
|
|
|
| |
Inverness Medical Innovations Inc.* |
| 82 |
| 2,648 |
| |
|
|
|
|
|
| |
HOME ENTERTAINMENT SOFTWARE—1.5% |
|
|
|
|
| |
Activision Blizzard Inc. * |
| 907 |
| 9,768 |
| |
Nintendo Co., Ltd. # |
| 190 |
| 6,394 |
| |
Rosetta Stone Inc. * |
| 75 |
| 2,246 |
| |
Take-Two Interactive Software Inc. |
| 612 |
| 5,557 |
| |
|
|
|
| 23,965 |
| |
HOMEBUILDING—0.9% |
|
|
|
|
| |
KB Home |
| 412 |
| 7,445 |
| |
Toll Brothers Inc. * |
| 367 |
| 7,435 |
| |
|
|
|
| 14,880 |
| |
HOTELS RESORTS & CRUISE LINES—0.7% |
|
|
|
|
| |
Carnival Corp. |
| 405 |
| 10,886 |
| |
|
|
|
|
|
| |
HOUSEHOLD PRODUCTS—0.3% |
|
|
|
|
| |
Church & Dwight Co., Inc. |
| 96 |
| 5,223 |
| |
|
|
|
|
|
| |
HOUSEWARES & SPECIALTIES—0.1% |
|
|
|
|
| |
Tupperware Brands Corp. |
| 87 |
| 2,178 |
| |
|
|
|
|
|
| |
HYPERMARKETS & SUPER CENTERS—0.4% |
|
|
|
|
| |
Wal-Mart Stores Inc. |
| 116 |
| 5,846 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY��1.2% |
|
|
|
|
| |
Clarcor Inc. |
| 292 |
| 9,076 |
| |
ITT Corp. |
| 73 |
| 2,994 |
| |
SPX Corp. |
| 154 |
| 7,110 |
| |
|
|
|
| 19,180 |
| |
INTEGRATED OIL & GAS—0.7% |
|
|
|
|
| |
Chevron Corp. |
| 49 |
| 3,239 |
| |
Exxon Mobil Corp. |
| 44 |
| 2,933 |
| |
Total SA # |
| 85 |
| 4,227 |
| |
|
|
|
| 10,399 |
| |
31
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.5% |
|
|
|
|
| |
AT&T Inc. |
| 300 |
| $ | 7,686 |
|
|
|
|
|
|
| |
INTERNET RETAIL—1.0% |
|
|
|
|
| |
Expedia Inc.* |
| 1,176 |
| 16,005 |
| |
|
|
|
|
|
| |
INTERNET SOFTWARE & SERVICES—3.6% |
|
|
|
|
| |
eBay Inc. * |
| 135 |
| 2,223 |
| |
Google Inc., Cl. A * |
| 9 |
| 3,564 |
| |
GSI Commerce Inc. * |
| 1,129 |
| 16,044 |
| |
IAC/InterActiveCorp. * |
| 253 |
| 4,053 |
| |
Limelight Networks Inc. * |
| 814 |
| 3,989 |
| |
Netease.com #* |
| 279 |
| 8,420 |
| |
Vignette Corp. * |
| 1,171 |
| 9,672 |
| |
VistaPrint Ltd. * |
| 279 |
| 9,584 |
| |
|
|
|
| 57,549 |
| |
INVESTMENT BANKING & BROKERAGE—0.7% |
|
|
|
|
| |
Goldman Sachs Group Inc., /The |
| 41 |
| 5,268 |
| |
Morgan Stanley |
| 218 |
| 5,154 |
| |
|
|
|
| 10,422 |
| |
IT CONSULTING & OTHER SERVICES—1.1% |
|
|
|
|
| |
Cognizant Technology Solutions Corp., Cl. A* |
| 731 |
| 18,121 |
| |
|
|
|
|
|
| |
LIFE SCIENCES TOOLS & SERVICES—0.3% |
|
|
|
|
| |
Icon PLC #* |
| 100 |
| 1,584 |
| |
Parexel International Corp. * |
| 300 |
| 2,973 |
| |
|
|
|
| 4,557 |
| |
MANAGED HEALTH CARE—0.1% |
|
|
|
|
| |
Aetna Inc. |
| 79 |
| 1,739 |
| |
WellPoint Inc. * |
| 12 |
| 513 |
| |
|
|
|
| 2,252 |
| |
METAL & GLASS CONTAINERS—1.2% |
|
|
|
|
| |
Crown Holdings Inc. * |
| 439 |
| 9,680 |
| |
Silgan Holdings Inc. |
| 211 |
| 9,810 |
| |
|
|
|
| 19,490 |
| |
MOVIES & ENTERTAINMENT—0.6% |
|
|
|
|
| |
Regal Entertainment Group, Cl. A |
| 704 |
| 9,194 |
| |
|
|
|
|
|
| |
OFFICE REITS—0.3% |
|
|
|
|
| |
Digital Realty Trust Inc. |
| 111 |
| 3,997 |
| |
|
|
|
|
|
| |
OIL & GAS DRILLING—0.2% |
|
|
|
|
| |
Transocean Ltd.* |
| 54 |
| 3,644 |
| |
|
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—0.2% |
|
|
|
|
| |
Dril-Quip Inc. * |
| 6 |
| 206 |
| |
Smith International Inc. |
| 87 |
| 2,249 |
| |
Weatherford International Ltd. * |
| 49 |
| 815 |
| |
|
|
|
| 3,270 |
| |
OIL & GAS EXPLORATION & PRODUCTION—2.0% |
|
|
|
|
| |
Chesapeake Energy Corp. |
| 476 |
| 9,381 |
| |
Concho Resources Inc. * |
| 56 |
| 1,536 |
| |
Denbury Resources Inc. * |
| 13 |
| 212 |
| |
32
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—(CONT.) |
|
|
|
|
| |
Mariner Energy Inc. * |
| 281 |
| $ | 3,198 |
|
Newfield Exploration Co. * |
| 47 |
| 1,465 |
| |
Nexen Inc. |
| 229 |
| 4,374 |
| |
Penn Virginia Corp. |
| 420 |
| 5,909 |
| |
Quicksilver Resources Inc. * |
| 708 |
| 5,756 |
| |
|
|
|
| 31,831 |
| |
OIL & GAS REFINING & MARKETING—0.6% |
|
|
|
|
| |
Sunoco Inc. |
| 361 |
| 9,570 |
| |
|
|
|
|
|
| |
PACKAGED FOODS & MEATS—1.3% |
|
|
|
|
| |
Flowers Foods Inc. |
| 224 |
| 5,174 |
| |
General Mills Inc. |
| 100 |
| 5,069 |
| |
Kraft Foods Inc., Cl. A |
| 249 |
| 5,828 |
| |
Ralcorp Holdings Inc. * |
| 87 |
| 4,973 |
| |
|
|
|
| 21,044 |
| |
PHARMACEUTICALS—13.9% |
|
|
|
|
| |
Abbott Laboratories |
| 38 |
| 1,590 |
| |
Allergan Inc. |
| 160 |
| 7,466 |
| |
Ardea Biosciences Inc. * |
| 2,389 |
| 29,479 |
| |
AstraZeneca PLC. # |
| 333 |
| 11,645 |
| |
Medicis Pharmaceutical Corp., Cl. A |
| 1,650 |
| 26,516 |
| |
Mylan Inc. * |
| 1,569 |
| 20,789 |
| |
Optimer Pharmaceuticals Inc. * |
| 4,371 |
| 61,062 |
| |
Roche Holding AG |
| 225 |
| 28,546 |
| |
Shire PLC # |
| 339 |
| 12,635 |
| |
Wyeth |
| 524 |
| 22,218 |
| |
|
|
|
| 221,946 |
| |
PROPERTY & CASUALTY INSURANCE—0.9% |
|
|
|
|
| |
First Mercury Financial Corp. * |
| 413 |
| 5,460 |
| |
Travelers Cos. Inc., /The |
| 236 |
| 9,710 |
| |
|
|
|
| 15,170 |
| |
PUBLISHING—0.4% |
|
|
|
|
| |
McGraw-Hill Cos. Inc., /The |
| 233 |
| 7,025 |
| |
|
|
|
|
|
| |
RAILROADS—0.3% |
|
|
|
|
| |
Burlington Northern Santa Fe Corp. |
| 74 |
| 4,994 |
| |
|
|
|
|
|
| |
REINSURANCE—0.5% |
|
|
|
|
| |
Platinum Underwriters Holdings Ltd. |
| 304 |
| 8,746 |
| |
|
|
|
|
|
| |
RESEARCH & CONSULTING SERVICES—0.4% |
|
|
|
|
| |
FTI Consulting Inc.* |
| 119 |
| 6,531 |
| |
|
|
|
|
|
| |
RESTAURANTS—0.6% |
|
|
|
|
| |
Jack in the Box Inc. * |
| 161 |
| 3,959 |
| |
McDonald’s Corp. |
| 109 |
| 5,809 |
| |
|
|
|
| 9,768 |
| |
SECURITY & ALARM SERVICES—0.7% |
|
|
|
|
| |
Geo Group Inc., /The* |
| 681 |
| 11,325 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—4.4% |
|
|
|
|
| |
Atheros Communications Inc. * |
| 360 |
| 6,199 |
| |
Broadcom Corp., Cl. A * |
| 372 |
| 8,627 |
| |
33
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
SEMICONDUCTORS—(CONT.) |
|
|
|
|
| |
Intel Corp. |
| 433 |
| $ | 6,833 |
|
Marvell Technology Group Ltd. * |
| 1,245 |
| 13,670 |
| |
Monolithic Power Systems Inc. * |
| 351 |
| 6,494 |
| |
National Semiconductor Corp. |
| 605 |
| 7,484 |
| |
Netlogic Microsystems Inc. * |
| 153 |
| 4,986 |
| |
ON Semiconductor Corp. * |
| 1,777 |
| 9,631 |
| |
Taiwan Semiconductor Manufacturing Co., Ltd. # |
| 445 |
| 4,704 |
| |
|
|
|
| 68,628 |
| |
SOFT DRINKS—0.8% |
|
|
|
|
| |
Coca-Cola Co., /The |
| 287 |
| 12,355 |
| |
|
|
|
|
|
| |
SPECIALIZED FINANCE—0.7% |
|
|
|
|
| |
NYSE Euronext |
| 484 |
| 11,214 |
| |
|
|
|
|
|
| |
SPECIALIZED REITS—0.4% |
|
|
|
|
| |
Host Hotels & Resorts Inc. |
| 786 |
| 6,044 |
| |
|
|
|
|
|
| |
SPECIALTY STORES—0.4% |
|
|
|
|
| |
PetSmart Inc. |
| 307 |
| 7,024 |
| |
|
|
|
|
|
| |
SYSTEMS SOFTWARE—1.5% |
|
|
|
|
| |
Oracle Corp. |
| 248 |
| 4,796 |
| |
Red Hat Inc. * |
| 289 |
| 4,991 |
| |
Symantec Corp. * |
| 795 |
| 13,714 |
| |
|
|
|
| 23,501 |
| |
THRIFTS & MORTGAGE FINANCE—0.9% |
|
|
|
|
| |
Brookline Bancorp Inc. |
| 528 |
| 5,238 |
| |
TFS Financial Corp. |
| 749 |
| 8,786 |
| |
|
|
|
| 14,024 |
| |
TOBACCO—1.0% |
|
|
|
|
| |
Altria Group Inc. |
| 310 |
| 5,062 |
| |
Philip Morris International Inc. |
| 309 |
| 11,186 |
| |
|
|
|
| 16,248 |
| |
WIRELESS TELECOMMUNICATION SERVICES—1.2% |
|
|
|
|
| |
American Tower Corp., Cl. A * |
| 169 |
| 5,367 |
| |
SBA Communications Corp. * |
| 576 |
| 14,516 |
| |
|
|
|
| 19,883 |
| |
TOTAL COMMON STOCKS |
|
|
| 1,294,428 |
| |
|
|
|
|
|
| |
|
| PRINCIPAL |
|
|
| |
|
| AMOUNT |
|
|
| |
SHORT-TERM INVESTMENTS—18.6% |
|
|
|
|
| |
TIME DEPOSITS—18.6% |
|
|
|
|
| |
Brown Bothers Harriman Cayman, 0.03%, 5/1/09 |
| 52,174 |
| 52,174 |
| |
Wells Fargo Grand Cayman, 0.03%, 5/1/09 |
| 61,000 |
| 61,000 |
| |
Bank of American NA, 0.03%, 5/1/09 |
| 61,000 |
| 61,000 |
| |
JP Morgan Chase & Co., 0.03%, 5/1/09 |
| 61,000 |
| 61,000 |
| |
34
|
| PRINCIPAL |
|
|
| ||
|
| AMOUNT |
| VALUE |
| ||
SHORT-TERM INVESTMENTS—(CONT.) |
|
|
|
|
| ||
TIME DEPOSITS—(CONT.) |
|
|
|
|
| ||
Citibank London, 0.03%, 5/1/09 |
| $ | 61,000 |
| $ | 61,000 |
|
|
|
|
|
|
|
|
|
TOTAL TIME DEPOSITS |
|
|
| 296,174 |
| ||
|
|
|
|
|
| ||
Total Investments |
| 99.9 | % | 1,590,602 |
| ||
Other Assets in Excess of Liabilities |
| 0.1 |
| 883 |
| ||
|
|
|
|
|
| ||
NET ASSETS |
| 100.0 | % | $ | 1,591,485 |
|
* | Non-income producing security. |
# | American Depositary Receipts. |
(a) | At April 30, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $1,647,578 amounted to $56,976 which consisted of aggregate gross unrealized appreciation of $132,149 and aggregate gross unrealized depreciation of $189,125. |
See Notes to Financial Statements.
35
THE ALGER FUNDS II | ALGER INTERNATIONAL OPPORTUNITIES FUND
Schedule of Investments (Unaudited) April 30, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—91.7% |
|
|
|
|
| |
AUSTRALIA—2.8% |
|
|
|
|
| |
BIOTECHNOLOGY—0.7% |
|
|
|
|
| |
CSL Ltd. |
| 529 |
| $ | 13,378 |
|
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—0.7% |
|
|
|
|
| |
Rio Tinto Ltd. |
| 288 |
| 13,633 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—0.3% |
|
|
|
|
| |
Origin Energy Ltd.* |
| 514 |
| 6,152 |
| |
|
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—0.7% |
|
|
|
|
| |
Linc Energy Ltd.* |
| 7,604 |
| 14,022 |
| |
|
|
|
|
|
| |
STEEL—0.4% |
|
|
|
|
| |
Fortescue Metals Group Ltd.* |
| 4,993 |
| 8,657 |
| |
|
|
|
|
|
| |
TOTAL AUSTRALIA |
|
|
| 55,842 |
| |
|
|
|
|
|
| |
BELGIUM—1.6% |
|
|
|
|
| |
FOOD RETAIL—0.2% |
|
|
|
|
| |
Colruyt SA* |
| 14 |
| 3,196 |
| |
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—1.4% |
|
|
|
|
| |
Belgacom SA |
| 929 |
| 27,187 |
| |
|
|
|
|
|
| |
TOTAL BELGIUM |
|
|
| 30,383 |
| |
|
|
|
|
|
| |
BERMUDA—2.1% |
|
|
|
|
| |
INVESTMENT BANKING & BROKERAGE—0.7% |
|
|
|
|
| |
Lazard Ltd., Cl. A |
| 532 |
| 14,524 |
| |
|
|
|
|
|
| |
REINSURANCE—1.4% |
|
|
|
|
| |
Platinum Underwriters Holdings Ltd. |
| 948 |
| 27,274 |
| |
|
|
|
|
|
| |
TOTAL BERMUDA |
|
|
| 41,798 |
| |
|
|
|
|
|
| |
BRAZIL—5.3% |
|
|
|
|
| |
DIVERSIFIED METALS & MINING—2.5% |
|
|
|
|
| |
Cia Vale do Rio Doce# |
| 3,031 |
| 50,042 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—2.5% |
|
|
|
|
| |
Petroleo Brasileiro SA# |
| 1,558 |
| 52,303 |
| |
|
|
|
|
|
| |
OTHER DIVERSIFIED FINANCIAL SERVICES—0.3% |
|
|
|
|
| |
BM&F BOVESPA SA |
| 1,626 |
| 6,650 |
| |
|
|
|
|
|
| |
TOTAL BRAZIL |
|
|
| 108,995 |
| |
|
|
|
|
|
| |
CANADA—1.7% |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—1.7% |
|
|
|
|
| |
Research In Motion Ltd.* |
| 477 |
| 33,152 |
| |
|
|
|
|
|
| |
CAYMAN ISLANDS—1.6% |
|
|
|
|
| |
INTERNET SOFTWARE & SERVICES—1.6% |
|
|
|
|
| |
Netease.com#* |
| 1,101 |
| 33,228 |
| |
36
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
CHINA—2.6% |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—0.2% |
|
|
|
|
| |
ZTE Corp. |
| 1,396 |
| $ | 4,737 |
|
|
|
|
|
|
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.3% |
|
|
|
|
| |
China High Speed Transmission Equipment Group Co., Ltd. |
| 3,496 |
| 6,316 |
| |
|
|
|
|
|
| |
CONSTRUCTION MATERIALS—0.5% |
|
|
|
|
| |
China National Building Material Co., Ltd. |
| 4,350 |
| 9,250 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.4% |
|
|
|
|
| |
China Construction Bank Corp. |
| 7,038 |
| 4,114 |
| |
Industrial & Commercial Bank of China |
| 6,856 |
| 3,963 |
| |
|
|
|
| 8,077 |
| |
ELECTRICAL COMPONENTS & EQUIPMENT—0.4% |
|
|
|
|
| |
JA Solar Holdings Co., Ltd. #* |
| 1,250 |
| 4,388 |
| |
Suntech Power Holdings Co., Ltd. #* |
| 297 |
| 4,434 |
| |
|
|
|
| 8,822 |
| |
LEISURE PRODUCTS—0.2% |
|
|
|
|
| |
Anta Sports Products Ltd. |
| 4,657 |
| 3,990 |
| |
|
|
|
|
|
| |
LIFE & HEALTH INSURANCE—0.4% |
|
|
|
|
| |
China Life Insurance Co., Ltd. |
| 2,445 |
| 8,676 |
| |
|
|
|
|
|
| |
PACKAGED FOODS & MEATS—0.2% |
|
|
|
|
| |
China Yurun Food Group Ltd. |
| 2,730 |
| 3,251 |
| |
|
|
|
|
|
| |
TOTAL CHINA |
|
|
| 53,119 |
| |
|
|
|
|
|
| |
DENMARK—1.8% |
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—1.8% |
|
|
|
|
| |
Vestas Wind Systems A/S* |
| 535 |
| 35,357 |
| |
|
|
|
|
|
| |
FINLAND—1.2% |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—1.2% |
|
|
|
|
| |
Nokia OYJ |
| 1,703 |
| 24,665 |
| |
|
|
|
|
|
| |
FRANCE—6.1% |
|
|
|
|
| |
DIVERSIFIED METALS & MINING—0.1% |
|
|
|
|
| |
Eramet* |
| 12 |
| 2,621 |
| |
|
|
|
|
|
| |
INDUSTRIAL GASES—0.2% |
|
|
|
|
| |
Air Liquide SA |
| 56 |
| 4,590 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.6% |
|
|
|
|
| |
Vallourec SA |
| 102 |
| 11,271 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—1.0% |
|
|
|
|
| |
Total SA |
| 385 |
| 19,562 |
| |
|
|
|
|
|
| |
LEISURE PRODUCTS—1.9% |
|
|
|
|
| |
Hermes International |
| 288 |
| 38,464 |
| |
|
|
|
|
|
| |
MULTI-UTILITIES—1.4% |
|
|
|
|
| |
Veolia Environnement |
| 962 |
| 26,725 |
| |
37
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
FRANCE—(CONT.) |
|
|
|
|
| |
PERSONAL PRODUCTS—0.2% |
|
|
|
|
| |
L’Oreal SA |
| 57 |
| $ | 4,095 |
|
|
|
|
|
|
| |
PHARMACEUTICALS—0.7% |
|
|
|
|
| |
Ipsen SA |
| 326 |
| 13,426 |
| |
|
|
|
|
|
| |
TOTAL FRANCE |
|
|
| 120,754 |
| |
|
|
|
|
|
| |
GERMANY—6.3% |
|
|
|
|
| |
AIR FREIGHT & LOGISTICS—0.2% |
|
|
|
|
| |
Deutsche Post AG |
| 291 |
| 3,374 |
| |
|
|
|
|
|
| |
AUTOMOBILE MANUFACTURERS—1.9% |
|
|
|
|
| |
Porsche Automobil Holding SE* |
| 524 |
| 37,905 |
| |
|
|
|
|
|
| |
FERTILIZERS & AGRICULTURAL CHEMICALS—0.3% |
|
|
|
|
| |
K & S AG* |
| 107 |
| 6,458 |
| |
|
|
|
|
|
| |
HEALTH CARE SERVICES—0.2% |
|
|
|
|
| |
Fresenius Medical Care AG & Co., KGAA |
| 108 |
| 4,258 |
| |
|
|
|
|
|
| |
HOUSEHOLD PRODUCTS—0.8% |
|
|
|
|
| |
Henkel AG & Co., KGAA |
| 659 |
| 16,338 |
| |
|
|
|
|
|
| |
INDUSTRIAL CONGLOMERATES—0.4% |
|
|
|
|
| |
Siemens AG |
| 122 |
| 8,250 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—2.5% |
|
|
|
|
| |
Bayer AG |
| 491 |
| 24,470 |
| |
Merck KGAA |
| 285 |
| 25,662 |
| |
|
|
|
| 50,132 |
| |
|
|
|
|
|
| |
TOTAL GERMANY |
|
|
| 126,715 |
| |
|
|
|
|
|
| |
GREECE—0.5% |
|
|
|
|
| |
CASINOS & GAMING—0.2% |
|
|
|
|
| |
OPAP SA* |
| 119 |
| 3,696 |
| |
|
|
|
|
|
| |
SOFT DRINKS—0.3% |
|
|
|
|
| |
Coca Cola Hellenic Bottling Co., SA |
| 379 |
| 6,077 |
| |
|
|
|
|
|
| |
TOTAL GREECE |
|
|
| 9,773 |
| |
|
|
|
|
|
| |
HONG KONG—2.9% |
|
|
|
|
| |
ELECTRONIC MANUFACTURING SERVICES—0.2% |
|
|
|
|
| |
Ju Teng International Holdings Ltd.* |
| 13,086 |
| 5,741 |
| |
|
|
|
|
|
| |
INDUSTRIAL CONGLOMERATES—0.2% |
|
|
|
|
| |
Hutchison Whampoa Ltd. |
| 772 |
| 4,562 |
| |
|
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—0.3% |
|
|
|
|
| |
CNOOC Ltd. |
| 5,189 |
| 5,812 |
| |
|
|
|
|
|
| |
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.9% |
|
|
|
|
| |
Cheung Kong Holdings Ltd. |
| 517 |
| 5,430 |
| |
Hang Lung Properties Ltd. |
| 2,924 |
| 8,376 |
| |
New World Development Ltd. |
| 3,567 |
| 4,731 |
| |
|
|
|
| 18,537 |
| |
38
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
HONG KONG—(CONT.) |
|
|
|
|
| |
SPECIALIZED FINANCE—1.0% |
|
|
|
|
| |
Hong Kong Exchanges and Clearing Ltd. |
| 1,756 |
| $ | 20,471 |
|
|
|
|
|
|
| |
WIRELESS TELECOMMUNICATION SERVICES—0.3% |
|
|
|
|
| |
China Mobile Ltd. |
| 691 |
| 6,027 |
| |
|
|
|
|
|
| |
TOTAL HONG KONG |
|
|
| 61,150 |
| |
|
|
|
|
|
| |
INDIA—2.8% |
|
|
|
|
| |
DIVERSIFIED BANKS—0.4% |
|
|
|
|
| |
ICICI Bank Ltd.# |
| 358 |
| 7,386 |
| |
|
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—1.2% |
|
|
|
|
| |
ABB Ltd. * |
| 928 |
| 8,968 |
| |
Bharat Heavy Electricals Ltd. * |
| 466 |
| 15,526 |
| |
|
|
|
| 24,494 |
| |
IT CONSULTING & OTHER SERVICES—1.2% |
|
|
|
|
| |
Infosys Technologies Ltd.# |
| 764 |
| 23,539 |
| |
|
|
|
|
|
| |
TOTAL INDIA |
|
|
| 55,419 |
| |
|
|
|
|
|
| |
IRELAND—0.5% |
|
|
|
|
| |
LIFE SCIENCES TOOLS & SERVICES—0.5% |
|
|
|
|
| |
Icon PLC#* |
| 590 |
| 9,346 |
| |
|
|
|
|
|
| |
ISRAEL—8.4% |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—2.8% |
|
|
|
|
| |
Ceragon Networks Ltd. * |
| 4,449 |
| 22,690 |
| |
Nice Systems Ltd. #* |
| 1,366 |
| 34,982 |
| |
|
|
|
| 57,672 |
| |
IT CONSULTING & OTHER SERVICES—0.8% |
|
|
|
|
| |
Ness Technologies Inc.* |
| 4,371 |
| 16,129 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—2.9% |
|
|
|
|
| |
Teva Pharmaceutical Industries Ltd.# |
| 1,388 |
| 60,918 |
| |
|
|
|
|
|
| |
TECHNOLOGY DISTRIBUTORS—1.9% |
|
|
|
|
| |
Mellanox Technologies Ltd.* |
| 3,638 |
| 37,108 |
| |
|
|
|
|
|
| |
TOTAL ISRAEL |
|
|
| 171,827 |
| |
|
|
|
|
|
| |
JAPAN—13.9% |
|
|
|
|
| |
APPAREL RETAIL—0.2% |
|
|
|
|
| |
Fast Retailing Co., Ltd. |
| 47 |
| 4,920 |
| |
|
|
|
|
|
| |
BREWERS—0.9% |
|
|
|
|
| |
Kirin Holdings Co., Ltd. |
| 1,567 |
| 17,249 |
| |
|
|
|
|
|
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.3% |
|
|
|
|
| |
Kubota Corp. |
| 925 |
| 5,528 |
| |
|
|
|
|
|
| |
CONSUMER ELECTRONICS—2.3% |
|
|
|
|
| |
Sony Corp. |
| 1,850 |
| 47,573 |
| |
39
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
JAPAN—(CONT.) |
|
|
|
|
| |
ELECTRONIC EQUIPMENT MANUFACTURERS—2.0% |
|
|
|
|
| |
Keyence Corp. |
| 52 |
| $ | 9,181 |
|
Kyocera Corp. |
| 391 |
| 30,283 |
| |
|
|
|
| 39,464 |
| |
FOOD RETAIL—1.0% |
|
|
|
|
| |
Seven & I Holdings Co., Ltd. |
| 940 |
| 21,258 |
| |
|
|
|
|
|
| |
HOME ENTERTAINMENT SOFTWARE—2.1% |
|
|
|
|
| |
Nintendo Co., Ltd. |
| 168 |
| 44,925 |
| |
|
|
|
|
|
| |
HOUSEHOLD PRODUCTS—0.1% |
|
|
|
|
| |
Kao Corp.* |
| 142 |
| 2,672 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.7% |
|
|
|
|
| |
Fanuc Ltd. |
| 209 |
| 15,018 |
| |
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.8% |
|
|
|
|
| |
Nippon Telegraph & Telephone Corp. |
| 439 |
| 16,420 |
| |
|
|
|
|
|
| |
INTERNET SOFTWARE & SERVICES—0.2% |
|
|
|
|
| |
Yahoo! Japan Corp. |
| 14 |
| 3,502 |
| |
|
|
|
|
|
| |
OFFICE ELECTRONICS—0.2% |
|
|
|
|
| |
Ricoh Co., Ltd.* |
| 381 |
| 4,659 |
| |
|
|
|
|
|
| |
PERSONAL PRODUCTS—0.1% |
|
|
|
|
| |
Shiseido Co., Ltd. |
| 106 |
| 1,865 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—0.9% |
|
|
|
|
| |
Astellas Pharma Inc. |
| 164 |
| 5,351 |
| |
Eisai Co., Ltd. |
| 101 |
| 2,726 |
| |
Mitsubishi Tanabe Pharma Corp. * |
| 130 |
| 1,238 |
| |
Shionogi & Co., Ltd. |
| 91 |
| 1,568 |
| |
Takeda Pharmaceutical Co., Ltd. * |
| 172 |
| 6,119 |
| |
|
|
|
| 17,002 |
| |
RAILROADS—0.7% |
|
|
|
|
| |
East Japan Railway Co. |
| 100 |
| 5,651 |
| |
Kintetsu Corp. * |
| 1,154 |
| 5,032 |
| |
West Japan Railway Co. |
| 1 |
| 3,070 |
| |
|
|
|
| 13,753 |
| |
REGIONAL BANKS—0.2% |
|
|
|
|
| |
Resona Holdings Inc. |
| 230 |
| 3,076 |
| |
|
|
|
|
|
| |
SECURITY & ALARM SERVICES—0.1% |
|
|
|
|
| |
Secom Co., Ltd. |
| 53 |
| 1,961 |
| |
|
|
|
|
|
| |
TIRES & RUBBER—0.1% |
|
|
|
|
| |
Bridgestone Corp. |
| 132 |
| 1,959 |
| |
|
|
|
|
|
| |
TOBACCO—0.3% |
|
|
|
|
| |
Japan Tobacco Inc. |
| 2 |
| 5,021 |
| |
|
|
|
|
|
| |
TRADING COMPANIES & DISTRIBUTORS—0.2% |
|
|
|
|
| |
Marubeni Corp. |
| 867 |
| 3,137 |
| |
|
|
|
|
|
| |
WIRELESS TELECOMMUNICATION SERVICES—0.5% |
|
|
|
|
| |
NTT DoCoMo Inc. |
| 7 |
| 9,748 |
| |
|
|
|
|
|
| |
TOTAL JAPAN |
|
|
|
|
| |
40
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
JAPAN—(CONT.) |
|
|
| $ | 280,710 |
|
|
|
|
|
|
| |
NETHERLANDS—2.0% |
|
|
|
|
| |
AEROSPACE & DEFENSE—0.3% |
|
|
|
|
| |
European Aeronautic Defence and Space Co., NV |
| 366 |
| 5,335 |
| |
|
|
|
|
|
| |
CONSTRUCTION & ENGINEERING—0.6% |
|
|
|
|
| |
Chicago Bridge & Iron Co., NV# |
| 1,032 |
| 11,042 |
| |
|
|
|
|
|
| |
CONSUMER ELECTRONICS—0.9% |
|
|
|
|
| |
Koninklijke Philips Electronics NV |
| 971 |
| 17,705 |
| |
|
|
|
|
|
| |
DIVERSIFIED CHEMICALS—0.2% |
|
|
|
|
| |
Akzo Nobel NV |
| 80 |
| 3,382 |
| |
|
|
|
|
|
| |
TOTAL NETHERLANDS |
|
|
| 37,464 |
| |
|
|
|
|
|
| |
NORWAY—0.4% |
|
|
|
|
| |
FERTILIZERS & AGRICULTURAL CHEMICALS—0.3% |
|
|
|
|
| |
Yara International ASA |
| 209 |
| 5,689 |
| |
|
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—0.1% |
|
|
|
|
| |
Norsk Hydro ASA* |
| 486 |
| 2,180 |
| |
|
|
|
|
|
| |
TOTAL NORWAY |
|
|
| 7,869 |
| |
|
|
|
|
|
| |
PORTUGAL—0.1% |
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.1% |
|
|
|
|
| |
Portugal Telecom SGPS SA* |
| 230 |
| 1,771 |
| |
|
|
|
|
|
| |
SOUTH AFRICA—2.2% |
|
|
|
|
| |
APPLICATION SOFTWARE—2.2% |
|
|
|
|
| |
Net 1 UEPS Technologies Inc.* |
| 2,625 |
| 43,313 |
| |
|
|
|
|
|
| |
SPAIN—0.6% |
|
|
|
|
| |
CONSTRUCTION & ENGINEERING—0.6% |
|
|
|
|
| |
ACS Actividades de Construccion y Servicios SA* |
| 274 |
| 13,779 |
| |
|
|
|
|
|
| |
SWEDEN—1.3% |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—0.6% |
|
|
|
|
| |
Telefonaktiebolaget LM Ericsson |
| 1,255 |
| 11,063 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.7% |
|
|
|
|
| |
Atlas Copco AB |
| 1,559 |
| 14,662 |
| |
|
|
|
|
|
| |
TOTAL SWEDEN |
|
|
| 25,725 |
| |
|
|
|
|
|
| |
SWITZERLAND—8.1% |
|
|
|
|
| |
BIOTECHNOLOGY—0.4% |
|
|
|
|
| |
Actelion Ltd.* |
| 190 |
| 8,716 |
| |
|
|
|
|
|
| |
DIVERSIFIED CAPITAL MARKETS—1.5% |
|
|
|
|
| |
Credit Suisse Group AG |
| 263 |
| 10,299 |
| |
41
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
SWITZERLAND—(CONT.) |
|
|
|
|
| |
UBS AG * |
| 1,344 |
| $ | 18,821 |
|
|
|
|
| 29,120 |
| |
HEALTH CARE EQUIPMENT—0.7% |
|
|
|
|
| |
Synthes Inc.* |
| 132 |
| 13,444 |
| |
|
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—1.4% |
|
|
|
|
| |
ABB Ltd.* |
| 1,923 |
| 27,639 |
| |
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.8% |
|
|
|
|
| |
Swisscom AG |
| 61 |
| 16,014 |
| |
|
|
|
|
|
| |
LEISURE PRODUCTS—0.8% |
|
|
|
|
| |
Compagnie Financiere Richemont SA |
| 886 |
| 16,025 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—2.5% |
|
|
|
|
| |
Novartis AG |
| 628 |
| 23,930 |
| |
Roche Holding AG |
| 204 |
| 25,881 |
| |
|
|
|
| 49,811 |
| |
|
|
|
|
|
| |
TOTAL SWITZERLAND |
|
|
| 160,769 |
| |
|
|
|
|
|
| |
TAIWAN—1.8% |
|
|
|
|
| |
ELECTRONIC MANUFACTURING SERVICES—0.3% |
|
|
|
|
| |
HON HAI Precision Industry Co., Ltd.* |
| 1,810 |
| 5,232 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—1.5% |
|
|
|
|
| |
MediaTek Inc. * |
| 401 |
| 4,177 |
| |
Taiwan Semiconductor Manufacturing Co., Ltd. # |
| 2,362 |
| 24,966 |
| |
|
|
|
| 29,143 |
| |
|
|
|
|
|
| |
TOTAL TAIWAN |
|
|
| 34,375 |
| |
|
|
|
|
|
| |
UNITED KINGDOM—12.0% |
|
|
|
|
| |
COMPUTER & ELECTRONICS RETAIL—0.7% |
|
|
|
|
| |
Game Group PLC* |
| 4,474 |
| 13,143 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.5% |
|
|
|
|
| |
HSBC Holdings PLC.* |
| 1,481 |
| 10,544 |
| |
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—1.4% |
|
|
|
|
| |
Antofagasta PLC |
| 656 |
| 5,735 |
| |
Kazakhmys PLC |
| 1,047 |
| 8,300 |
| |
Vedanta Resources PLC. |
| 855 |
| 13,607 |
| |
|
|
|
| 27,642 |
| |
HEALTH CARE EQUIPMENT—2.0% |
|
|
|
|
| |
Smith & Nephew PLC. |
| 5,755 |
| 40,976 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—3.6% |
|
|
|
|
| |
BG Group PLC |
| 1,326 |
| 21,476 |
| |
BP PLC |
| 6,871 |
| 49,125 |
| |
|
|
|
| 70,601 |
| |
MULTI-UTILITIES—0.8% |
|
|
|
|
| |
Centrica PLC |
| 5,039 |
| 16,950 |
| |
|
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—0.2% |
|
|
|
|
| |
Eurasian Natural Resources Corp. |
| 486 |
| 4,285 |
| |
42
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
UNITED KINGDOM—(CONT.) |
|
|
|
|
| |
PHARMACEUTICALS—1.3% |
|
|
|
|
| |
AstraZeneca PLC |
| 203 |
| $ | 7,174 |
|
Shire PLC. |
| 1,423 |
| 17,934 |
| |
|
|
|
| 25,108 |
| |
PUBLISHING—0.3% |
|
|
|
|
| |
Thomson Reuters PLC. |
| 201 |
| 5,227 |
| |
|
|
|
|
|
| |
RESTAURANTS—0.9% |
|
|
|
|
| |
Compass Group PLC |
| 3,550 |
| 17,044 |
| |
|
|
|
|
|
| |
TOBACCO—0.3% |
|
|
|
|
| |
British American Tobacco PLC |
| 271 |
| 6,582 |
| |
|
|
|
|
|
| |
TOTAL UNITED KINGDOM |
|
|
| 238,102 |
| |
|
|
|
|
|
| |
UNITED STATES—1.1% |
|
|
|
|
| |
DISTILLERS & VINTNERS—1.1% |
|
|
|
|
| |
Central European Distribution Corp.* |
| 972 |
| 21,773 |
| |
|
|
|
|
|
| |
TOTAL COMMON STOCKS |
|
|
| 1,837,173 |
| |
|
| PRINCIPAL |
|
|
| |
|
| AMOUNT |
|
|
| |
SHORT-TERM INVESTMENTS—6.2% |
|
|
|
|
| |
TIME DEPOSITS—6.2% |
|
|
|
|
| |
Wells Fargo Grand Cayman, 0.03%, 5/1/09 |
| 48,389 |
| 48,389 |
| |
Citibank London, 0.03%, 5/1/09 |
| 76,000 |
| 76,000 |
| |
|
|
|
|
|
| |
TOTAL TIME DEPOSITS |
|
|
| 124,389 |
| |
|
|
|
|
|
| |
Total Investments |
| 97.9 | % | 1,961,562 |
| |
Other Assets in Excess of Liabilities |
| 2.1 |
| 41,571 |
| |
|
|
|
|
|
| |
NET ASSETS |
| 100.0 | % | $ | 2,003,133 |
|
* | Non-income producing security. |
# | American Depositary Receipts. |
(a) | At April 30, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $2,800,802 amounted to $839,240 which consisted of aggregate gross unrealized appreciation of $83,681 and aggregate gross unrealized depreciation of $922,921. |
See Notes to Financial Statements.
43
THE ALGER FUNDS II
Statements of Assets and Liabilities (Unaudited) April 30, 2009
|
| Spectra Fund |
| Green Fund |
| ||
ASSETS: |
|
|
|
|
| ||
Investments in securities, at value (Identified cost)* see accompanying schedules of investments |
| $ | 176,716,326 |
| $ | 22,337,437 |
|
Foreign Cash*** |
| — |
| — |
| ||
Receivable for investment securities sold |
| 16,069,259 |
| 483,605 |
| ||
Receivable for shares of beneficial interest sold |
| 178,977 |
| 153,010 |
| ||
Dividends and interest receivable |
| 221,372 |
| 12,882 |
| ||
Receivable from Investment Manager |
| 148 |
| 30,051 |
| ||
Prepaid Expenses |
| 36,232 |
| 31,431 |
| ||
Total Assets |
| 193,222,314 |
| 23,048,416 |
| ||
LIABILITIES: |
|
|
|
|
| ||
Securities sold short, at value** |
| 13,940,247 |
| — |
| ||
Payable for investment securities purchased |
| 12,987,388 |
| 281,689 |
| ||
Payable for foreign currency contracts |
| 3,265 |
| — |
| ||
Due to custodian |
| 243,005 |
| — |
| ||
Payable for shares of beneficial interest redeemed |
| 130,461 |
| 44,821 |
| ||
Accrued investment advisory fees |
| 118,998 |
| 12,455 |
| ||
Accrued transfer agent fees |
| 61,674 |
| 10,908 |
| ||
Accrued distribution fees |
| 33,265 |
| 4,532 |
| ||
Accrued administrative fees |
| 3,636 |
| 482 |
| ||
Dividends payable |
| 24,251 |
| — |
| ||
Accrued other expenses |
| 165,099 |
| 29,755 |
| ||
Total Liabilities |
| 27,711,289 |
| 384,642 |
| ||
NET ASSETS |
| $ | 165,511,025 |
| $ | 22,663,774 |
|
Net Assets Consist of: |
|
|
|
|
| ||
Paid in capital |
| 409,986,146 |
| 35,333,950 |
| ||
Undistributed net investment income (accumulated loss) |
| (160,702 | ) | 15,448 |
| ||
Undistributed net realized gain (accumulated loss) |
| (233,266,548 | ) | (10,294,053 | ) | ||
Net unrealized depreciation on investments |
| (11,047,871 | ) | (2,391,571 | ) | ||
NET ASSETS |
| $ | 165,511,025 |
| $ | 22,663,774 |
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING—NOTE 5 |
|
|
|
|
| ||
Class A |
| 22,878,830 |
| 4,756,596 |
| ||
Class C |
| 52,228 |
| 58,151 |
| ||
Class I |
| 41,085 |
| 430,049 |
| ||
Class A — Net Asset Value Per Share |
| $ | 7.20 |
| $ | 4.32 |
|
Class A — Offering Price Per Share |
| $ | 7.60 |
| $ | 4.56 |
|
Class C — Net Asset Value Per Share |
| $ | 7.19 |
| $ | 4.30 |
|
Class I — Net Asset Value Per Share |
| $ | 7.23 |
| $ | 4.32 |
|
*Identified Cost |
| $ | 186,467,523 |
| $ | 24,729,008 |
|
**Proceeds |
| $ | 12,643,989 |
| $ | — |
|
***Cost Foreign Cash |
| $ | — |
| $ | — |
|
See Notes to Financial Statements.
44
|
|
|
| International |
| ||
|
|
|
| Opportunities |
| ||
|
| Analyst Fund |
| Fund |
| ||
ASSETS: |
|
|
|
|
| ||
Investments in securities, at value (Identified cost)* see accompanying schedules of investments |
| $ | 1,590,602 |
| $ | 1,961,562 |
|
Foreign Cash*** |
| — |
| 30,008 |
| ||
Receivable for investment securities sold |
| 12,259 |
| — |
| ||
Receivable for shares of beneficial interest sold |
| 207 |
| 5,730 |
| ||
Dividends and interest receivable |
| 196 |
| 10,868 |
| ||
Receivable from Investment Manager |
| 6,770 |
| 14,613 |
| ||
Prepaid Expenses |
| 27,357 |
| 26,553 |
| ||
Total Assets |
| 1,637,391 |
| 2,049,334 |
| ||
LIABILITIES: |
|
|
|
|
| ||
Securities sold short, at value** |
| — |
| — |
| ||
Payable for investment securities purchased |
| 29,328 |
| 19,873 |
| ||
Payable for foreign currency contracts |
| — |
| 286 |
| ||
Due to custodian |
| — |
| — |
| ||
Payable for shares of beneficial interest redeemed |
| — |
| — |
| ||
Accrued investment advisory fees |
| 1,075 |
| 1,571 |
| ||
Accrued transfer agent fees |
| 167 |
| 712 |
| ||
Accrued distribution fees |
| 375 |
| 437 |
| ||
Accrued administrative fees |
| 35 |
| 43 |
| ||
Dividends payable |
| — |
| — |
| ||
Accrued other expenses |
| 14,926 |
| 23,279 |
| ||
Total Liabilities |
| 45,906 |
| 46,201 |
| ||
NET ASSETS |
| $ | 1,591,485 |
| $ | 2,003,133 |
|
Net Assets Consist of: |
|
|
|
|
| ||
Paid in capital |
| 2,365,983 |
| 3,460,319 |
| ||
Undistributed net investment income (accumulated loss) |
| (4,135 | ) | 5,772 |
| ||
Undistributed net realized gain (accumulated loss) |
| (721,978 | ) | (718,329 | ) | ||
Net unrealized depreciation on investments |
| (48,385 | ) | (744,629 | ) | ||
NET ASSETS |
| $ | 1,591,485 |
| $ | 2,003,133 |
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING—NOTE 5 |
|
|
|
|
| ||
Class A |
| 209,613 |
| 298,125 |
| ||
Class C |
| 14,586 |
| 12,156 |
| ||
Class I |
| 11,696 |
| 11,480 |
| ||
Class A — Net Asset Value Per Share |
| $ | 6.75 |
| $ | 6.23 |
|
Class A — Offering Price Per Share |
| $ | 7.12 |
| $ | 6.57 |
|
Class C — Net Asset Value Per Share |
| $ | 6.72 |
| $ | 6.17 |
|
Class I — Net Asset Value Per Share |
| $ | 6.75 |
| $ | 6.20 |
|
*Identified Cost |
| $ | 1,638,987 |
| $ | 2,704,396 |
|
**Proceeds |
| $ | — |
| $ | — |
|
***Cost Foreign Cash |
| $ | — |
| $ | 31,504 |
|
45
THE ALGER FUNDS II
Statements of Operations (Unaudited)
For the six months ended April 30, 2009
|
| Spectra Fund |
| Green Fund |
| ||
INCOME: |
|
|
|
|
| ||
Dividends (net of foreign withholding taxes*) |
| $ | 1,501,626 |
| $ | 133,372 |
|
Interest |
| 19,045 |
| 5,126 |
| ||
Other |
| 235 |
| — |
| ||
Total Income |
| 1,520,906 |
| 138,498 |
| ||
EXPENSES |
|
|
|
|
| ||
Advisory fees—Note 2(a) |
| 680,783 |
| 69,562 |
| ||
Distribution fees—Note 2(b): |
|
|
|
|
| ||
Class A |
| 188,623 |
| 22,825 |
| ||
Class C |
| 1,137 |
| 732 |
| ||
Class I |
| 199 |
| 1,486 |
| ||
Administrative fees—Note 2(a) |
| 20,802 |
| 2,694 |
| ||
Dividends on securities sold short |
| 95,243 |
| — |
| ||
Custodian fees |
| 98,555 |
| 7,946 |
| ||
Interest expenses |
| 167,710 |
| — |
| ||
Transfer agent fees and expenses Note 2(e) |
| 165,356 |
| 28,254 |
| ||
Prepaid expenses |
| 62,883 |
| 20,202 |
| ||
Printing fees |
| 51,775 |
| 10,335 |
| ||
Professional fees |
| 115,909 |
| 21,736 |
| ||
Registration fees |
| 7,991 |
| 8,621 |
| ||
Trustee fees |
| 6,447 |
| 6,447 |
| ||
Miscellaneous |
| 19,003 |
| 6,235 |
| ||
Total Expenses |
| 1,682,416 |
| 207,075 |
| ||
Less, expense reimbursements Note 2(a) |
| (808 | ) | (84,025 | ) | ||
Net Expenses |
| 1,681,608 |
| 123,050 |
| ||
NET INVESTMENT INCOME (LOSS) |
| (160,702 | ) | 15,448 |
| ||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY TRANSACTIONS: |
|
|
|
|
| ||
Net realized loss on investments |
| (39,710,833 | ) | (6,521,337 | ) | ||
Net realized loss on foreign currency transactions |
| (2,229 | ) | (174 | ) | ||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations |
| 41,974,727 |
| 5,444,358 |
| ||
Net realized and unrealized gain (loss) on investments, options and foreign currency |
| 2,261,665 |
| (1,077,153 | ) | ||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
| $ | 2,100,963 |
| $ | (1,061,705 | ) |
*Foreign withholding taxes |
| $ | 24,860 |
| $ | 144 |
|
See Notes to Financial Statements.
46
|
|
|
| International |
| ||
|
|
|
| Opportunities |
| ||
|
| Analyst Fund |
| Fund |
| ||
INCOME: |
|
|
|
|
| ||
Dividends (net of foreign withholding taxes*) |
| $ | 4,446 |
| $ | 21,727 |
|
Interest |
| 81 |
| 40 |
| ||
Other |
| 17 |
| — |
| ||
Total Income |
| 4,544 |
| 21,767 |
| ||
EXPENSES |
|
|
|
|
| ||
Advisory fees—Note 2(a) |
| 5,936 |
| 9,171 |
| ||
Distribution fees—Note 2(b): |
|
|
|
|
| ||
Class A |
| 1,561 |
| 2,127 |
| ||
Class C |
| 388 |
| 339 |
| ||
Class I |
| 88 |
| 81 |
| ||
Administrative fees—Note 2(a) |
| 192 |
| 252 |
| ||
Dividends on securities sold short |
| — |
| — |
| ||
Custodian fees |
| 6,505 |
| 32,525 |
| ||
Interest expenses |
| — |
| — |
| ||
Transfer agent fees and expenses Note 2(e) |
| 499 |
| 1,634 |
| ||
Prepaid expenses |
| 17,931 |
| 18,377 |
| ||
Printing fees |
| 1,268 |
| 2,220 |
| ||
Professional fees |
| 6,990 |
| 6,702 |
| ||
Registration fees |
| 6,305 |
| 6,305 |
| ||
Trustee fees |
| 6,447 |
| 6,447 |
| ||
Miscellaneous |
| 679 |
| 679 |
| ||
Total Expenses |
| 54,789 |
| 86,859 |
| ||
Less, expense reimbursements Note 2(a) |
| (46,110 | ) | (71,556 | ) | ||
Net Expenses |
| 8,679 |
| 15,303 |
| ||
NET INVESTMENT INCOME (LOSS) |
| (4,135 | ) | 6,464 |
| ||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY TRANSACTIONS: |
|
|
|
|
| ||
Net realized loss on investments |
| (486,581 | ) | (575,521 | ) | ||
Net realized loss on foreign currency transactions |
| — |
| (259 | ) | ||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations |
| 536,107 |
| 542,104 |
| ||
Net realized and unrealized gain (loss) on investments, options and foreign currency |
| 49,526 |
| (33,676 | ) | ||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
| $ | 45,391 |
| $ | (27,212 | ) |
*Foreign withholding taxes |
| $ | 22 |
| $ | 2,243 |
|
47
THE ALGER FUNDS II
Statements of Changes in Net Assets
|
| Spectra Fund |
| ||||
|
| For the |
|
|
| ||
|
| Six Months Ended |
| For the |
| ||
|
| April 30, 2009 |
| Year Ended |
| ||
|
| (Unaudited) |
| October 31, 2008 |
| ||
Net investment income (loss) |
| $ | (160,702 | ) | $ | (1,758,898 | ) |
Net realized loss on investments, options and foreign currency transactions |
| (39,713,062 | ) | (41,239,314 | ) | ||
Net change in unrealized appreciation (depreciation) on investments, options and foreign currency translations |
| 41,974,727 |
| (88,559,592 | ) | ||
Net increase (decrease) in net assets resulting from operations |
| 2,100,963 |
| (131,557,804 | ) | ||
Dividends and distributions to shareholders from: |
|
|
|
|
| ||
Net investment income |
|
|
|
|
| ||
Class A |
| — |
| — |
| ||
Class C |
| — |
| — |
| ||
Class I |
| — |
| — |
| ||
Net realized gains |
|
|
|
|
| ||
Class A |
| — |
| — |
| ||
Class C |
| — |
| — |
| ||
Class I |
| — |
| — |
| ||
Total dividends and distributions to shareholders |
| — |
| — |
| ||
Increase (decrease) from shares of beneficial interest transactions: |
|
|
|
|
| ||
Class A |
| (7,351,059 | ) | (28,163,994 | ) | ||
Class C |
| 257,101 |
| 109,840 |
| ||
Class I |
| 185,972 |
| 100,000 |
| ||
Net increase (decrease) from shares of beneficial interest transactions—Note 5 |
| (6,907,986 | ) | (27,954,154 | ) | ||
Total increase (decrease) |
| (4,807,023 | ) | (159,511,958 | ) | ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 170,318,048 |
| 329,830,006 |
| ||
END OF PERIOD |
| $ | 165,511,025 |
| $ | 170,318,048 |
|
Undistributed net investment income (accumulated loss) |
| $ | (160,702 | ) | $ | (1,758,898 | ) |
See Notes to Financial Statements.
48
|
| Green Fund |
| Analyst Fund |
| International Opportunities Fund |
| ||||||||||||
|
| For the |
|
|
| For the |
|
|
| For the |
|
|
| ||||||
|
| Six Months Ended |
| For the |
| Six Months Ended |
| For the |
| Six Months Ended |
| For the |
| ||||||
|
| April 30, 2009 |
| Year Ended |
| April 30, 2009 |
| Year Ended |
| April 30, 2009 |
| Year Ended |
| ||||||
|
| (Unaudited) |
| October 31, 2008 |
| (Unaudited) |
| October 31, 2008 |
| (Unaudited) |
| October 31, 2008 |
| ||||||
Net investment income (loss) |
| $ | 15,448 |
| $ | (53,054 | ) | $ | (4,135 | ) | $ | (13,596 | ) | $ | 6,464 |
| $ | 11,556 |
|
Net realized loss on investments, options and foreign currency transactions |
| (6,521,511 | ) | (3,755,271 | ) | (486,581 | ) | (232,918 | ) | (575,780 | ) | (125,483 | ) | ||||||
Net change in unrealized appreciation (depreciation) on investments, options and foreign currency translations |
| 5,444,358 |
| (10,063,441 | ) | 536,107 |
| (911,280 | ) | 542,104 |
| (2,080,077 | ) | ||||||
Net increase (decrease) in net assets resulting from operations |
| (1,061,705 | ) | (13,871,766 | ) | 45,391 |
| (1,157,794 | ) | (27,212 | ) | (2,194,004 | ) | ||||||
Dividends and distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Class A |
| — |
| — |
| — |
| — |
| (26,732 | ) | (7,082 | ) | ||||||
Class C |
| — |
| — |
| — |
| — |
| (1,196 | ) | — |
| ||||||
Class I |
| — |
| — |
| — |
| — |
| (1,240 | ) | — |
| ||||||
Net realized gains |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Class A |
| — |
| (389,174 | ) | — |
| (113,818 | ) | — |
| (27,987 | ) | ||||||
Class C |
| — |
| — |
| — |
| — |
| — |
| — |
| ||||||
Class I |
| — |
| — |
| — |
| — |
| — |
| — |
| ||||||
Total dividends and distributions to shareholders |
| — |
| (389,174 | ) | — |
| (113,818 | ) | (29,168 | ) | (35,069 | ) | ||||||
Increase (decrease) from shares of beneficial interest transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Class A |
| (578,509 | ) | 22,783,781 |
| 14,071 |
| (89,672 | ) | 7,159 |
| 442,089 |
| ||||||
Class C |
| 150,792 |
| 110,000 |
| 18,460 |
| 100,000 |
| 5,196 |
| 100,000 |
| ||||||
Class I |
| 1,676,549 |
| 100,000 |
| — |
| 100,000 |
| 1,240 |
| 100,000 |
| ||||||
Net increase (decrease) from shares of beneficial interest transactions—Note 5 |
| 1,248,832 |
| 22,993,781 |
| 32,531 |
| 110,328 |
| 13,595 |
| 642,089 |
| ||||||
Total increase (decrease) |
| 187,127 |
| 8,732,841 |
| 77,922 |
| (1,161,284 | ) | (42,785 | ) | (1,586,984 | ) | ||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Beginning of period |
| 22,476,647 |
| 13,743,806 |
| 1,513,563 |
| 2,674,847 |
| 2,045,918 |
| 3,632,902 |
| ||||||
END OF PERIOD |
| $ | 22,663,774 |
| $ | 22,476,647 |
| $ | 1,591,485 |
| $ | 1,513,563 |
| $ | 2,003,133 |
| $ | 2,045,918 |
|
Undistributed net investment income (accumulated loss) |
| $ | 15,448 |
| $ | (53,054 | ) | $ | (4,135 | ) | $ | (13,596 | ) | $ | 5,772 |
| $ | 11,447 |
|
See Notes to Financial Statements.
49
THE ALGER FUNDS II
Statement of Cash Flows (Unaudited)
For the six months ended April 30, 2009
|
| Spectra Fund |
| |
INCREASE (DECREASE) IN CASH |
|
|
| |
|
|
|
| |
Cash flows from operating activities: |
|
|
| |
Net Increase in net assets resulting from operations |
| $ | 2,100,963 |
|
|
|
|
| |
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: |
|
|
| |
Purchases of Investment securities |
| (363,327,817 | ) | |
Proceeds from disposition of investment securities |
| 346,356,829 |
| |
Sale of short-term investments securities, net |
| 5,108,084 |
| |
Increase in securities sold short |
| 2,366,013 |
| |
Increase in interest and dividends receivable |
| (22,748 | ) | |
Increase in receivable for securities sold |
| 3,198,700 |
| |
Increase in payable for securities purchased |
| 129,877 |
| |
Decrease in prepaid expenses |
| 51,834 |
| |
Increase in receivable from Investment Advisor |
| (148 | ) | |
Increase in accrued expenses |
| 16,654 |
| |
Unrealized appreciation on investments |
| (41,974,728 | ) | |
Realized loss on investments |
| 39,713,062 |
| |
Net use of cash in operating activities |
| (6,283,425 | ) | |
|
|
|
| |
Cash flows from financing activities: |
|
|
| |
Proceeds from shares sold |
| 10,976,229 |
| |
Payments on shares redeemed |
| (18,125,302 | ) | |
Net use of cash in financing activities |
| (7,149,073 | ) | |
|
|
|
| |
Net decrease in cash |
| (13,432,498 | ) | |
|
|
|
| |
Cash: |
|
|
| |
Beginning balance |
| 13,189,493 |
| |
Ending balance |
| $ | (243,005 | ) |
See Notes to Financial Statements.
50
(This page intentionally left blank)
51
THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period
ALGER SPECTRA FUND
|
| Class A |
| ||||||||||||||||
|
| Six months |
|
|
|
|
|
|
|
|
|
|
| ||||||
|
| ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||||
|
| 4/30/2009(i) |
| 10/31/2008 |
| 10/31/2007 |
| 10/31/2006 |
| 10/31/2005 |
| 10/31/2004 |
| ||||||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net asset value, beginning of period |
| $ | 7.07 |
| $ | 12.00 |
| $ | 8.49 |
| $ | 6.94 |
| $ | 5.84 |
| $ | 5.88 |
|
Net investment loss(ii) |
| (0.01 | ) | (0.07 | ) | (0.08 | ) | (0.10 | ) | (0.05 | ) | (0.10 | ) | ||||||
Net realized and unrealized gain (loss) on investments |
| 0.14 |
| (4.86 | ) | 3.59 |
| 1.65 |
| 1.15 |
| 0.06 |
| ||||||
Total from investment operations |
| 0.13 |
| (4.93 | ) | 3.51 |
| 1.55 |
| 1.10 |
| (0.04 | ) | ||||||
Net asset value, end of period |
| $ | 7.20 |
| $ | 7.07 |
| $ | 12.00 |
| $ | 8.49 |
| $ | 6.94 |
| $ | 5.84 |
|
Total return(iii) |
| 1.8 | % | (41.1 | )% | 41.3 | % | 22.3 | % | 18.8 | % | (0.7 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net assets, end of period (000’s omitted) |
| $ | 164,838 |
| $ | 170,147 |
| $ | 329,830 |
| $ | 191,387 |
| $ | 187,542 |
| $ | 210,439 |
|
Ratio of gross expenses to average net assets |
| 2.23 | %(iv) | 2.01 | % | 2.07 | % | 2.01 | % | 2.07 | % | 1.98 | % | ||||||
Ratio of expense reimbursements to average net assets |
| 0.00 | % | (0.48 | )% | (0.48 | )% | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
Ratio of net expenses to average net assets |
| 2.23 | % | 1.53 | % | 1.59 | % | 2.01 | % | 2.07 | % | 1.98 | % | ||||||
Ratio of net investment income to average net assets |
| (0.18 | )% | (0.65 | )% | (0.79 | )% | (1.20 | )% | (0.81 | )% | (1.63 | )% | ||||||
Portfolio turnover rate |
| 219.38 | % | 313.46 | % | 282.13 | % | 232.20 | % | 247.72 | % | 159.35 | % |
(i) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges.
(iv) Includes 0.35% related to dividend and interest expense on short positions for the period ended 4/30/2009.
See Notes to Financial Statements.
52
ALGER SPECTRA FUND
|
| Class C |
| Class I |
| ||||||||
|
|
|
| From |
|
|
| From |
| ||||
|
|
|
| 9/24/2008 |
|
|
| 9/24/2008 |
| ||||
|
|
|
| (commence- |
|
|
| (commence- |
| ||||
|
| Six months |
| ment of |
| Six months |
| ment of |
| ||||
|
| ended |
| operations) to |
| ended |
| operations) to |
| ||||
|
| 4/30/2009(i) |
| 10/31/2008(ii) |
| 4/30/2009(i) |
| 10/31/2008(ii) |
| ||||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
| ||||
Net asset value, beginning of period |
| $ | 7.07 |
| $ | 8.78 |
| $ | 7.08 |
| $ | 8.78 |
|
Net investment income (loss)(iii) |
| (0.02 | ) | (0.01 | ) | 0.01 |
| — |
| ||||
Net realized and unrealized gain (loss) on investments |
| 0.14 |
| (1.70 | ) | 0.14 |
| (1.70 | ) | ||||
Total from investment operations |
| 0.12 |
| (1.71 | ) | 0.15 |
| (1.70 | ) | ||||
Net asset value, end of period |
| $ | 7.19 |
| $ | 7.07 |
| $ | 7.23 |
| $ | 7.08 |
|
Total return(iv) |
| 1.7 | % | (19.5 | )% | 2.3 | % | (19.4 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
| ||||
Net assets, end of period (000’s omitted) |
| $ | 376 |
| $ | 90 |
| $ | 297 |
| $ | 81 |
|
Ratio of gross expenses to average net assets |
| 2.99 | %(v) | 2.27 | % | 2.24 | %(vi) | 1.53 | % | ||||
Ratio of expense reimbursements to average net assets |
| (0.30 | )% | (0.02 | )% | (0.57 | )% | (0.28 | )% | ||||
Ratio of net expenses to average net assets |
| 2.69 | % | 2.25 | % | 1.67 | % | 1.25 | % | ||||
Ratio of net investment income to average net assets |
| (0.64 | )% | (0.92 | )% | 0.33 | % | 0.09 | % | ||||
Portfolio turnover rate |
| 219.38 | % | 313.46 | % | 219.38 | % | 313.46 | % |
(i) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges.
(v) Includes 0.44% related to dividend and interest expense on short positions for the period ended 4/30/2009.
(vi) Includes 0.42% related to dividend and interest expense on short positions for the period ended 4/30/2009.
53
THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period
ALGER GREEN FUND(i)
|
| Class A |
| ||||||||||||||||
|
| Six months |
|
|
|
|
|
|
|
|
|
|
| ||||||
|
| ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||||
|
| 4/30/2009(ii) |
| 10/31/2008 |
| 10/31/2007 |
| 10/31/2006 |
| 10/31/2005 |
| 10/31/2004 |
| ||||||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net asset value, beginning of period |
| $ | 4.52 |
| $ | 7.90 |
| $ | 6.61 |
| $ | 6.17 |
| $ | 5.37 |
| $ | 5.38 |
|
Net investment loss(iii) |
| 0.00 |
| (0.01 | ) | (0.03 | ) | (0.03 | ) | (0.01 | ) | (0.05 | ) | ||||||
Net realized and unrealized gain (loss) on investments |
| (0.20 | ) | (3.19 | ) | 2.09 |
| 1.13 |
| 1.05 |
| 0.07 |
| ||||||
Total from investment operations |
| (0.20 | ) | (3.20 | ) | 2.06 |
| 1.10 |
| 1.04 |
| 0.02 |
| ||||||
Distributions from net realized gains |
| — |
| (0.18 | ) | (0.77 | ) | (0.66 | ) | (0.24 | ) | (0.03 | ) | ||||||
Net asset value, end of period |
| $ | 4.32 |
| $ | 4.52 |
| $ | 7.90 |
| $ | 6.61 |
| $ | 6.17 |
| $ | 5.37 |
|
Total return(iv) |
| (4.4 | )% | (41.4 | )% | 34.4 | % | 19.1 | % | 19.8 | % | 0.3 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net assets, end of period (000’s omitted) |
| $ | 20,557 |
| $ | 22,307 |
| $ | 13,744 |
| $ | 2,446 |
| $ | 1,505 |
| $ | 1,277 |
|
Ratio of gross expenses to average net assets |
| 2.12 | % | 1.49 | % | 2.15 | % | 7.04 | % | 2.00 | % | 2.24 | % | ||||||
Ratio of expense reimbursements to average net assets |
| (0.87 | )% | (0.24 | )% | (0.90 | )% | (5.79 | )% | (0.75 | )% | (0.90 | )% | ||||||
Ratio of net expenses to average net assets |
| 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.34 | % | ||||||
Ratio of net investment income to average net assets |
| 0.18 | % | (0.21 | )% | (0.42 | )% | (0.53 | )% | (0.25 | )% | (1.04 | )% | ||||||
Portfolio turnover rate |
| 62.08 | % | 106.34 | % | 131.66 | % | 209.65 | % | 152.60 | % | 166.03 | % |
(i) Commenced operations January 12, 2007. Total increase in net assets from November 1, 2006 to January 11, 2007 is that of its predecessor fund, Alger Green Institutional Fund. See Note 1 in the Notes to Financial Statements.
(ii) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges.
See Notes to Financial Statements.
54
ALGER GREEN FUND(i)
|
| Class C |
| Class I |
| ||||||||
|
|
|
| From |
|
|
| From |
| ||||
|
|
|
| 9/24/2008 |
|
|
| 9/24/2008 |
| ||||
|
|
|
| (commence- |
|
|
| (commence- |
| ||||
|
| Six months |
| ment of |
| Six months |
| ment of |
| ||||
|
| ended |
| operations) to |
| ended |
| operations) to |
| ||||
|
| 4/30/2009(ii) |
| 10/31/2008(iii) |
| 4/30/2009(ii) |
| 10/31/2008(iii) |
| ||||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
| ||||
Net asset value, beginning of period |
| $ | 4.51 |
| $ | 5.65 |
| $ | 4.52 |
| $ | 5.65 |
|
Net investment loss(iv) |
| (0.01 | ) | — |
| 0.00 |
| — |
| ||||
Net realized and unrealized gain (loss) on investments |
| (0.20 | ) | (1.14 | ) | (0.20 | ) | (1.13 | ) | ||||
Total from investment operations |
| (0.21 | ) | (1.14 | ) | (0.20 | ) | (1.13 | ) | ||||
Net asset value, end of period |
| $ | 4.30 |
| $ | 4.51 |
| $ | 4.32 |
| $ | 4.52 |
|
Total return(v) |
| (4.7 | )% | (20.2 | )% | (4.4 | )% | (20.0 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
| ||||
Net assets, end of period (000’s omitted) |
| $ | 250 |
| $ | 90 |
| $ | 1,857 |
| $ | 80 |
|
Ratio of gross expenses to average net assets |
| 2.84 | % | 2.17 | % | 2.00 | % | 1.42 | % | ||||
Ratio of expense reimbursements to average net assets |
| (0.84 | )% | (0.17 | )% | (0.75 | )% | (0.17 | )% | ||||
Ratio of net expenses to average net assets |
| 2.00 | % | 2.00 | % | 1.25 | % | 1.25 | % | ||||
Ratio of net investment income to average net assets |
| (0.71 | )% | (1.01 | )% | 0.01 | % | (0.26 | )% | ||||
Portfolio turnover rate |
| 62.08 | % | 106.34 | % | 62.08 | % | 106.34 | % |
(i) Commenced operations January 12, 2007. Total increase in net assets from November 1, 2006 to January 11, 2007 is that of its predecessor fund, Alger Green Institutional Fund. See Note 1 in the Notes to Financial Statements.
(ii) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iii) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iv) Amount was computed based on average shares outstanding during the period.
(v) Does not reflect the effect of sales charges.
55
THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period
ALGER ANALYST FUND
|
| Class A |
| Class C |
| |||||||||||
|
|
|
|
|
| From |
|
|
| From |
| |||||
|
|
|
|
|
| 3/30/2007 |
|
|
| 9/24/2008 |
| |||||
|
|
|
|
|
| (commence- |
|
|
| (commence- |
| |||||
|
| Six months |
|
|
| ment of |
| Six months |
| ment of |
| |||||
|
| ended |
| Year ended |
| operations) to |
| ended |
| operations) to |
| |||||
|
| 4/30/2009(i) |
| 10/31/2008 |
| 10/31/2007(ii) |
| 4/30/2009(i) |
| 10/31/2008(ii) |
| |||||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Net asset value, beginning of period |
| $ | 6.57 |
| $ | 12.07 |
| $ | 10.00 |
| $ | 6.56 |
| $ | 8.55 |
|
Net investment loss(iii) |
| (0.02 | ) | (0.06 | ) | (0.04 | ) | (0.04 | ) | (0.01 | ) | |||||
Net realized and unrealized gain (loss) on investments |
| 0.20 |
| (4.93 | ) | 2.11 |
| 0.20 |
| (1.98 | ) | |||||
Total from investment operations |
| 0.18 |
| (4.99 | ) | 2.07 |
| 0.16 |
| (1.99 | ) | |||||
Distributions from net realized gains |
| — |
| (0.51 | ) | — |
| — |
| — |
| |||||
Net asset value, end of period |
| $ | 6.75 |
| $ | 6.57 |
| $ | 12.07 |
| $ | 6.72 |
| $ | 6.56 |
|
Total return(iv) |
| 2.7 | % | (43.0 | )% | 20.7 | % | 2.4 | % | (23.3 | )% | |||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net assets, end of period (000’s omitted) |
| $ | 1,414 |
| $ | 1,360 |
| $ | 2,675 |
| $ | 98 |
| $ | 77 |
|
Ratio of gross expenses to average net assets |
| 7.82 | % | 3.04 | % | 2.50 | % | 8.65 | % | 6.60 | % | |||||
Ratio of expense reimbursements to average net assets |
| (6.62 | )% | (1.84 | )% | (1.30 | )% | (6.70 | )% | (4.65 | )% | |||||
Ratio of net expenses to average net assets |
| 1.20 | % | 1.20 | % | 1.20 | % | 1.95 | % | 1.95 | % | |||||
Ratio of net investment income to average net assets |
| (0.55 | )% | (0.60 | )% | (0.66 | )% | (1.31 | )% | (1.31 | )% | |||||
Portfolio turnover rate |
| 103.37 | % | 124.91 | % | 67.44 | % | 103.37 | % | 124.91 | % |
(i) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges.
See Notes to Financial Statements.
56
ALGER ANALYST FUND
|
| Class I |
| ||||
|
|
|
| From |
| ||
|
|
|
| 9/24/2008 |
| ||
|
|
|
| (commence- |
| ||
|
| Six months |
| ment of |
| ||
|
| ended |
| operations) to |
| ||
|
| 4/30/2009(i) |
| 10/31/2008(ii) |
| ||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
| ||
Net asset value, beginning of period |
| $ | 6.56 |
| $ | 8.55 |
|
Net investment loss(iii) |
| (0.02 | ) | — |
| ||
Net realized and unrealized gain (loss) on investments |
| 0.21 |
| (1.99 | ) | ||
Total from investment operations |
| 0.19 |
| (1.99 | ) | ||
Net asset value, end of period |
| $ | 6.75 |
| $ | 6.56 |
|
Total return(iv) |
| 2.9 | % | (23.3 | )% | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
| ||
Net assets, end of period (000’s omitted) |
| $ | 79 |
| $ | 77 |
|
Ratio of gross expenses to average net assets |
| 7.92 | % | 5.85 | % | ||
Ratio of expense reimbursements to average net assets |
| (6.72 | )% | (4.65 | )% | ||
Ratio of net expenses to average net assets |
| 1.20 | % | 1.20 | % | ||
Ratio of net investment income to average net assets |
| (0.55 | )% | (0.56 | )% | ||
Portfolio turnover rate |
| 103.37 | % | 124.91 | % |
(i) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges.
57
THE ALGER FUNDS II
Financial Highlights for a share outstanding throughout the period
ALGER INTERNATIONAL OPPORTUNITIES FUND
|
| Class A |
| Class C |
| |||||||||||
|
|
|
|
|
| From |
|
|
| From |
| |||||
|
|
|
|
|
| 2/28/2007 |
|
|
| 9/24/2008 |
| |||||
|
|
|
|
|
| (commence- |
|
|
| (commence- |
| |||||
|
| Six months |
|
|
| ment of |
| Six months |
| ment of |
| |||||
|
| ended |
| Year ended |
| operations) to |
| ended |
| operations) to |
| |||||
|
| 4/30/2009(i) |
| 10/31/2008 |
| 10/31/2007(ii) |
| 4/30/2009(i) |
| 10/31/2008(ii) |
| |||||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Net asset value, beginning of period |
| $ | 6.39 |
| $ | 13.56 |
| $ | 10.00 |
| $ | 6.37 |
| $ | 8.87 |
|
Net investment income(iii) |
| 0.03 |
| 0.04 |
| 0.05 |
| 0.01 |
| — |
| |||||
Net realized and unrealized gain (loss) on investments |
| (0.10 | ) | (7.09 | ) | 3.51 |
| (0.11 | ) | (2.50 | ) | |||||
Total from investment operations |
| (0.07 | ) | (7.05 | ) | 3.56 |
| (0.10 | ) | (2.50 | ) | |||||
Dividends from net investment income |
| (0.09 | ) | (0.02 | ) | — |
| (0.10 | ) | — |
| |||||
Distributions from net realized gains |
| — |
| (0.10 | ) | — |
| — |
| — |
| |||||
Net asset value, end of period |
| $ | 6.23 |
| $ | 6.39 |
| $ | 13.56 |
| $ | 6.17 |
| $ | 6.37 |
|
Total return(iv) |
| (1.1 | )% | (52.4 | )% | 35.6 | % | (1.5 | )% | (28.2 | )% | |||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net assets, end of period (000’s omitted) |
| $ | 1,857 |
| $ | 1,902 |
| $ | 3,633 |
| $ | 75 |
| $ | 72 |
|
Ratio of gross expenses to average net assets |
| 9.46 | % | 4.67 | % | 4.12 | % | 10.31 | % | 6.66 | % | |||||
Ratio of expense reimbursements to average net assets |
| (7.81 | )% | (3.02 | )% | (2.47 | )% | (7.91 | )% | (4.26 | )% | |||||
Ratio of net expenses to average net assets |
| 1.65 | % | 1.65 | % | 1.65 | % | 2.40 | % | 2.40 | % | |||||
Ratio of net investment income to average net assets |
| 0.97 | % | 0.35 | % | 0.64 | % | 0.25 | % | (0.65 | )% | |||||
Portfolio turnover rate |
| 30.61 | % | 72.00 | % | 40.19 | % | 30.61 | % | 72.00 | % |
(i) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges.
See Notes to Financial Statements.
58
ALGER INTERNATIONAL OPPORTUNITIES FUND
|
| Class I |
| ||||
|
|
|
| From |
| ||
|
|
|
| 9/24/2008 |
| ||
|
|
|
| (commence- |
| ||
|
| Six months |
| ment of |
| ||
|
| ended |
| operations) to |
| ||
|
| 4/30/2009(i) |
| 10/31/2008(ii) |
| ||
INCOME FROM INVESTMENT OPERATIONS |
|
|
|
|
| ||
Net asset value, beginning of period |
| $ | 6.37 |
| $ | 8.87 |
|
Net investment income(iii) |
| 0.03 |
| — |
| ||
Net realized and unrealized gain (loss) on investments |
| (0.09 | ) | (2.50 | ) | ||
Total from investment operations |
| (0.06 | ) | (2.50 | ) | ||
Dividends from net investment income |
| (0.11 | ) | — |
| ||
Net asset value, end of period |
| $ | 6.20 |
| $ | 6.37 |
|
Total return(iv) |
| (0.9 | )% | (28.2 | )% | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
| ||
Net assets, end of period (000’s omitted) |
| $ | 71 |
| $ | 72 |
|
Ratio of gross expenses to average net assets |
| 9.53 | % | 5.91 | % | ||
Ratio of expense reimbursements to average net assets |
| (8.13 | )% | (4.51 | )% | ||
Ratio of net expenses to average net assets |
| 1.40 | % | 1.40 | % | ||
Ratio of net investment income to average net assets |
| 1.23 | % | (0.35 | )% | ||
Portfolio turnover rate |
| 30.61 | % | 72.00 | % |
(i) Unaudited. Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect the effect of sales charges.
59
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 — Summary of Significant Accounting Policies:
The Alger Funds II (the “Trust”) changed its name from The Spectra Funds on September 24, 2008. 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 operates as a series company currently issuing an unlimited number of shares of beneficial interest in four funds—Alger Spectra Fund, Alger Green Fund, Alger Analyst Fund and Alger International Opportunities Fund (collectively, the “Funds” or individually, each a “Fund”) (formerly the Spectra Fund, Spectra Green Fund, Spectra Alchemy Fund and Spectra International Opportunities Fund, respectively). The Funds normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation.
The Alger Green Fund commenced operations on January 12, 2007 after the reorganization of the Class I and R Shares of the Alger Green Institutional Fund into the Class N Shares of the Alger Green Fund. Information of the Alger Green Fund prior to January 12, 2007 is that of the Alger Green Institutional Fund.
Each Fund’s Class N shares were re-designated as Class A shares on September 24, 2008. Each Fund began offering Class A, Class C, and Class I shares effective September 24, 2008. 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 are sold to institutional investors without an initial or deferred sales charge. Each class has identical rights to assets and earnings except each share class bears the cost for its plan of distribution and transfer agency services.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.
(a) Investment Valuation: Investments in securities are valued each day the New York Stock Exchange (the “NYSE”) is open as of the close of the NYSE (normally 4:00 p.m. Eastern time). Securities for which such information is readily available are valued at the last reported 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 reported sales, securities are valued at a price within the bid and asked price, or in the absence of a recent bid or asked price, the equivalent as obtained from one or more of the major market makers for the securities to be valued. Short-term notes are valued at amortized cost which approximates market value. Shares of mutual funds are valued at the net asset value of the underlying mutual fund.
Securities for which market quotations are not readily available are valued at fair value, as determined in good faith pursuant to procedures established by the Board of Trustees.
Securities in which the Funds invest may be traded in 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 (normally 4:00 p.m. Eastern time) may result in adjustments to the closing prices to reflect what the investment adviser, pursuant to policies established by the Board of Trustees, believes to be the fair value of these securities as of the close of the
60
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but the Fund is open.
Effective November 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157). In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability and may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Fund. Unobservable inputs are inputs that reflect the Fund’s 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 securities
· 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 Fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market securities are valued using amortized cost, in accordance with rules under the Investment Company Act of 1940 (the “1940 Act”). Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as level 2.
The Fund’s valuation techniques are consistent with the market approach whereby process and other relevant information generated by market transactions involving identical or comparable assets are used to measure fair value.
The following is a summary of the inputs used as of April 30, 2009 in valuing the Fund’s investments carried at fair value:
DESCRIPTION |
| TOTAL FUND |
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| ||||
Alger Spectra Fund |
|
|
|
|
|
|
|
|
| ||||
Investments in securities |
| $ | 176,716,326 |
| $ | 175,645,002 |
| $ | 1,071,324 |
| $ | — |
|
Total |
| $ | 176,716,326 |
| $ | 175,645,002 |
| $ | 1,071,324 |
| $ | — |
|
Alger Green Fund |
|
|
|
|
|
|
|
|
| ||||
Investments in securities |
| $ | 22,337,437 |
| $ | 22,337,437 |
| $ | — |
| $ | — |
|
Total |
| $ | 22,337,437 |
| $ | 22,337,437 |
| $ | — |
| $ | — |
|
61
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
DESCRIPTION (continued) |
| TOTAL FUND |
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| ||||
Alger Analyst Fund |
|
|
|
|
|
|
|
|
| ||||
Investments in securities |
| $ | 1,590,602 |
| $ | 1,590,602 |
| $ | — |
| $ | — |
|
Total |
| $ | 1,590,602 |
| $ | 1,590,602 |
| $ | — |
| $ | — |
|
Alger International Opportunities Fund |
|
|
|
|
|
|
|
|
| ||||
Investments in securities |
| $ | 1,961,562 |
| $ | 1,961,562 |
| $ | — |
| $ | — |
|
Total |
| $ | 1,961,562 |
| $ | 1,961,562 |
| $ | — |
| $ | — |
|
The following is a summary of the inputs used as of April 30, 2009 in valuing the Fund’s securities sold short at fair value:
DESCRIPTION |
| TOTAL FUND |
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| ||||
Alger Spectra Fund |
|
|
|
|
|
|
|
|
| ||||
Securities sold short |
| $ | 13,940,247 |
| $ | 13,940,247 |
| $ | — |
| $ | — |
|
Total |
| $ | 13,940,247 |
| $ | 13,940,247 |
| $ | — |
| $ | — |
|
(b) Securities Transactions and Investment Income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the basis of the first-in, first-out method. Dividend income is recognized on the ex-dividend date and interest income is recognized on the accrual basis.
(c) 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 Statement of Operations.
(d) 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.
62
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The Funds may also purchase put and call options. Purchasing put and call options tends to decrease the Fund’s exposure to the underlying instrument. The Fund pays a premium which is included in the Funds’ Statement of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying security to determine the realized gain or loss. There were no option transactions during the six-months ended April 30, 2009.
(e) Lending of Portfolio 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 the Fund’s total assets, as defined. The Funds earn fees on the securities loaned.
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, letters of credit or U. S. Government securities that are maintained in an amount equal to at least 100 percent of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Funds and any required additional collateral is delivered to the Fund on the next business day. There were no securities on loan during the period ending on April 30, 2009.
(f) Short Sales: Securities sold short represent 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 Statements 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.
(g) 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.
The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from, or in excess of net investment income, net realized gain on investment transactions
63
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 have no impact on the net asset value of the Funds and are designed to present the Funds’ capital accounts on a tax basis.
(h) Federal Income Taxes: It is the Funds’ policy to comply with the requirements of the Internal Revenue Code Subchapter M applicable to regulated investment companies and to distribute all of its investment company taxable income to its shareholders. Provided the Funds maintain such compliance, no federal income tax provision is required.
The Funds have adopted Financial Accounting Standards Board Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (‘FIN 48”). FIN 48 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. The Funds file income tax returns in the US Federal jurisdiction, as well as the New York State and New York City jurisdictions. Based upon their review of tax positions for the Funds’ open tax years of 2005-2008 in these jurisdictions, the Funds have determined that FIN 48 did not have a material impact on the Funds’ financial statements for the six months ended April 30, 2009.
(i) Indemnification: The Trust enters into contracts that contain a variety of indemnification provisions. The Trust’s maximum exposure under these arrangements is unknown. The Trust does not anticipate recognizing any loss related to these arrangements.
(j) Estimates: These financial statements have been prepared using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates. These unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of results for the interim period presented. All such adjustments are of a normal recurring nature.
NOTE 2 — Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory and Administration Fees: Fees incurred by each Fund, pursuant to the provisions of its Investment Advisory Agreement and its Administration Agreement with Fred Alger Management, Inc. (Alger Management), are payable monthly and computed based on the value of the average daily net assets of each Fund, at the following rates:
|
| Advisory |
| Administration |
|
|
| Fee |
| Fee |
|
Alger Spectra Fund |
| 0.90 | % | .0275 | % |
Alger Green Fund |
| 0.71 |
| .0275 |
|
Alger Analyst Fund |
| 0.85 |
| .0275 |
|
Alger International Opportunities Fund |
| 1.00 |
| .0275 |
|
64
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Effective February 28, 2007, Alger Management has established an expense cap for each of the Funds, whereby it reimburses the Funds if annualized operating expenses (excluding interest, taxes, brokerage, and extraordinary expenses) exceed the rates, based on average daily net assets, listed below:
|
|
|
|
|
|
|
| Fees Waived/ |
| |
|
|
|
| Reimbursed |
| |||||
|
|
|
|
|
|
|
| for the Six |
| |
|
| Class |
| Months Ended |
| |||||
|
| A |
| C |
| I |
| April 30, 2009 |
| |
Alger Spectra Fund |
| N/A |
| 2.25 | % | 1.25 | % | $ | 808 |
|
Alger Green Fund |
| 1.25 | % | 2.00 |
| 1.25 |
| 84,025 |
| |
Alger Analyst Fund |
| 1.20 |
| 1.95 |
| 1.20 |
| 46,110 |
| |
Alger International Opportunities Fund |
| 1.65 |
| 2.40 |
| 1.40 |
| 71,556 |
| |
* Class A, C and I were effective as of September 24, 2008.
(b) Shareholder Administrative Fees: The Trust has entered into a shareholder administrative services agreement with Alger Management, to compensate Alger Management on a per account basis for its liaison and administrative oversight of the transfer agent and related services. During the period ended April 30, 2009, the Alger Spectra Fund, Alger Green Fund, Alger Analyst Fund, and the Alger International Opportunities Fund incurred fees of $24,197, $3,783, $36, and $174, respectively, for these services provided by Alger Management which are included in the transfer agent fees and expenses in the Statement of Operations.
(c) Sales Charges: Purchases and sales of shares of the Funds may be subject to initial sales charges or contingent deferred sales charges. For the six months ended April 30, 2009, the initial sales charges and contingent deferred sales charges retained by the Distributor were approximately $394 and $21, respectively. The contingent deferred sales charges are used by the Distributor to offset distribution expenses previously incurred. Sales charges do not represent expenses of the Trust.
(d) Brokerage Commissions: During the period ended April 30, 2009, Alger Spectra Fund, Alger Green Fund, Alger Analyst Fund, and Alger International Opportunities Fund paid Fred Alger & Company, Incorporated (“Alger Inc.”), an affiliate of Alger Management, $619,149, $19,577, $588, and $0, respectively, in connection with securities transactions.
(e) Trustees’ Fees: Each Fund pays each trustee who is not affiliated with Alger Management or its affiliates $500 for each meeting attended, to a maximum of $2,000 per annum. The Chairman of the Board of Trustees receives an additional annual fee of $10,000 which is paid, pro rata, by all funds managed by Alger Management. Additionally, each member of the audit committee receives an additional $50 from each Fund for each audit committee meeting attended, to a maximum of $200 per annum.
(f) Distribution/Shareholder Servicing Fees: The Funds have adopted a distribution plan pursuant to which each share class of each Fund pays Alger Inc. a fee at the annual rate listed below of the respective average daily net assets of each share class of the designated
65
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Funds to compensate Alger Inc. for its activities and expenses incurred in distributing the share class and shareholder servicing. Fees charged 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 |
|
(g) Other Transactions with Affiliates: Certain trustees and officers of the Trust are directors and officers of Alger Management, Alger Inc. and Alger Services. At April 30, 2009, Alger Management and its affiliates owned 223,682 shares and 205,066 shares of the Alger Analyst Fund and the Alger International Opportunities Fund, respectively.
NOTE 3 — Securities Transactions:
The following summarizes the securities transactions by the Trust, other than short-term securities, for the six months ended April 30, 2009:
|
| PURCHASES |
| SALES |
| ||
Spectra Fund |
| $ | 363,327,817 |
| $ | 346,356,829 |
|
Green Fund |
| 12,473,940 |
| 11,379,890 |
| ||
Analyst Fund |
| 1,201,998 |
| 1,229,090 |
| ||
International Opportunities Fund |
| 525,628 |
| 580,377 |
| ||
NOTE 4 — Borrowings:
The Funds borrow from their custodian on an uncommitted basis. For the six months ended April 30, 2009, the Funds had the following borrowings:
|
| AVERAGE |
| WEIGHTED AVERAGE |
| |
|
| BORROWING |
| INTEREST RATE |
| |
Spectra Fund |
| $ | 7,992,978 |
| 2.50 | % |
NOTE 5 — Share Capital:
(a) The Trust has an unlimited number of authorized shares of beneficial interest of $.001 par value which are presently divided into four series. Each series is divided into separate classes. The transactions of shares of beneficial interest were as follows:
66
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
| FOR THE SIX MONTHS ENDED |
| FOR THE YEAR ENDED |
| ||||||
|
| SHARES |
| AMOUNT |
| SHARES |
| AMOUNT |
| ||
ALGER SPECTRA FUND |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 1,621,414 |
| $ | 10,631,964 |
| 7,743,896 |
| $ | 83,315,712 |
|
Shares redeemed |
| (2,807,631 | ) | (17,983,023 | ) | (11,169,039 | ) | (111,479,706 | ) | ||
Net decrease |
| (1,186,217 | ) | $ | (7,351,059 | ) | (3,425,143 | ) | $ | (28,163,994 | ) |
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 39,532 |
| $ | 257,591 |
| 12,768 |
| $ | 109,840 |
|
Shares redeemed |
| (72 | ) | (490 | ) | — |
| — |
| ||
Net increase |
| 39,460 |
| $ | 257,101 |
| 12,768 |
| $ | 109,840 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 33,802 |
| $ | 215,433 |
| 11,390 |
| $ | 100,000 |
|
Shares redeemed |
| (4,107 | ) | (29,461 | ) | — |
| — |
| ||
Net increase |
| 29,695 |
| $ | 185,972 |
| 11,390 |
| $ | 100,000 |
|
|
|
|
|
|
|
|
|
|
| ||
ALGER GREEN FUND |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 1,168,346 |
| $ | 4,650,086 |
| 4,475,056 |
| $ | 30,118,066 |
|
Dividends reinvested |
| — |
| — |
| 47,758 |
| 357,227 |
| ||
Shares redeemed |
| (1,348,982 | ) | (5,228,595 | ) | (1,325,378 | ) | (7,691,512 | ) | ||
Net increase (decrease) |
| (180,636 | ) | $ | (578,509 | ) | 3,197,436 |
| $ | 22,783,781 |
|
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 39,055 |
| $ | 153,791 |
| 19,872 |
| $ | 110,000 |
|
Shares redeemed |
| (775 | ) | (2,999 | ) | — |
| — |
| ||
Net increase |
| 38,280 |
| $ | 150,792 |
| 19,872 |
| $ | 110,000 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 447,756 |
| $ | 1,805,698 |
| 17,699 |
| $ | 100,000 |
|
Shares redeemed |
| (35,407 | ) | (129,149 | ) | — |
| — |
| ||
Net increase |
| 412,349 |
| $ | 1,676,549 |
| 17,699 |
| $ | 100,000 |
|
|
|
|
|
|
|
|
|
|
| ||
ALGER ANALYST FUND |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 3,199 |
| $ | 18,272 |
| 4,431 |
| $ | 43,969 |
|
Dividends reinvested |
| — |
| — |
| 10,190 |
| 111,272 |
| ||
Shares redeemed |
| (698 | ) | (4,201 | ) | (29,070 | ) | (244,913 | ) | ||
Net increase (decrease) |
| 2,501 |
| $ | 14,071 |
| (14,449 | ) | $ | (89,672 | ) |
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 3,846 |
| $ | 24,349 |
| 11,696 |
| $ | 100,000 |
|
Shares redeemed |
| (956 | ) | (5,889 | ) | — |
| — |
| ||
Net increase |
| 2,890 |
| $ | 18,460 |
| 11,696 |
| $ | 100,000 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| — |
| $ | — |
| 11,696 |
| $ | 100,000 |
|
Net increase |
| — |
| $ | — |
| 11,696 |
| $ | 100,000 |
|
67
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
| FOR THE SIX MONTHS ENDED |
| FOR THE YEAR ENDED |
| ||||||
|
| SHARES |
| AMOUNT |
| SHARES |
| AMOUNT |
| ||
ALGER INTERNATIONAL OPPORTUNITIES FUND |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 22,118 |
| $ | 127,177 |
| 168,676 |
| $ | 1,857,745 |
|
Dividends reinvested |
| 3,666 |
| 22,216 |
| 2,612 |
| 31,947 |
| ||
Shares redeemed |
| (25,390 | ) | (142,234 | ) | (141,396 | ) | (1,447,603 | ) | ||
Net increase |
| 394 |
| $ | 7,159 |
| 29,892 |
| $ | 442,089 |
|
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 684 |
| $ | 4,000 |
| 11,274 |
| $ | 100,000 |
|
Dividends reinvested |
| 198 |
| 1,196 |
| — |
| — |
| ||
Net increase |
| 882 |
| $ | 5,196 |
| 11,274 |
| $ | 100,000 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 0 |
| $ | — |
| 11,274 |
| $ | 100,000 |
|
Dividends reinvested |
| 206 |
| 1,240 |
| — |
| — |
| ||
Net increase |
| 206 |
| $ | 1,240 |
| 11,274 |
| $ | 100,000 |
|
* Initially offered September 24, 2008.
(b) Redemption Fee: The Funds may impose a 2.00% redemption fee on Fund shares redeemed (including shares redeemed by exchange) within 30 days after such shares were acquired. The fees retained by the Funds are included as paid-in capital on the Statement of Assets and Liabilities and were as follows:
|
| For the Six |
| For the |
| ||
|
| Months Ended |
| Year Ended |
| ||
|
| April 30, 2009 |
| October 31, 2008 |
| ||
Alger Spectra Fund |
| $ | 1,204 |
| $ | 12,015 |
|
Alger Green Fund |
| 1,250 |
| 8,949 |
| ||
Alger Analyst |
| — |
| — |
| ||
Alger International Opportunities Fund |
| — |
| 10,209 |
| ||
NOTE 6 — Tax Character of Distributions to Shareholders:
The tax character of distributions paid during the six months ended April 30, 2009 and the year ended October 31, 2008 was as follows:
|
| SIX MONTHS ENDED |
| YEAR ENDED |
|
|
| April 30, 2009 |
| October 31, 2008 |
|
SPECTRA FUND |
|
|
|
|
|
Distributions paid from: |
|
|
|
|
|
Ordinary Income |
| — |
| — |
|
Long-term capital gain |
| — |
| — |
|
Total distributions paid |
| — |
| — |
|
68
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
| SIX MONTHS ENDED |
| YEAR ENDED |
| ||
|
| April 30, 2009 |
| October 31, 2008 |
| ||
GREEN FUND |
|
|
|
|
| ||
Distributions paid from: |
|
|
|
|
| ||
Ordinary Income |
| — |
| $ | 221,757 |
| |
Long-term capital gain |
| — |
| 167,417 |
| ||
Total distributions paid |
| — |
| $ | 389,174 |
| |
|
|
|
|
|
|
| |
ANALYST FUND |
|
|
|
|
| ||
Distributions paid from: |
|
|
|
|
| ||
Ordinary Income |
| — |
| 113,818 |
| ||
Long-term capital gain |
| — |
| — |
| ||
Total distributions paid |
| — |
| $ | 113,818 |
| |
|
|
|
|
|
|
| |
INTERNATIONAL OPPORTUNITIES FUND |
|
|
|
|
| ||
Distributions paid from: |
|
|
|
|
| ||
Ordinary Income |
| $ | 29,168 |
| 35,069 |
| |
Long-term capital gain |
| — |
| — |
| ||
Total distributions paid |
| $ | 29,168 |
| $ | 35,069 |
|
As of October 31, 2008, the components of distributable earnings on a tax basis were as follows:
SPECTRA FUND |
|
|
| |
Undistributed ordinary income |
| $ | — |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | (62,914,861 | ) |
|
|
|
|
|
GREEN FUND |
|
|
| |
Undistributed ordinary income |
| $ | — |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | (8,203,193 | ) |
|
|
|
|
|
ANALYST FUND |
|
|
| |
Undistributed ordinary income |
| $ | — |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | (593,083 | ) |
|
|
|
|
|
INTERNATIONAL OPPORTUNITIES FUND |
|
|
| |
Undistributed ordinary income |
| $ | 28,737 |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | (1,383,140 | ) |
The difference between book basis and tax basis unrealized appreciation is determined annually and is attributable primarily to the tax deferral of losses on wash sales.
At October 31, 2008, the Funds, for federal income tax purposes, had capital loss carryforwards which expire as set forth in the table below. These amounts may be applied against future net realized gains until the earlier of their utilization or expiration.
69
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
EXPIRATION DATE
|
| 2009 |
| 2010 |
| 2016 |
| TOTAL |
| ||||
Spectra Fund |
| $ | 43,979,856 |
| $ | 107,067,302 |
| $ | 32,073,225 |
| $ | 183,120,383 |
|
Green Fund |
| $ | — |
| $ | — |
| $ | 3,405,353 |
| $ | 3,405,353 |
|
Analyst Fund |
| $ | — |
| $ | — |
| $ | 226,801 |
| $ | 226,801 |
|
International Opportunities Fund |
| $ | — |
| $ | — |
| $ | 13,573 |
| $ | 13,573 |
|
NOTE 7 — Litigation:
The Manager has responded to inquiries, document requests and/or subpoenas from various regulatory authorities in connection with their investigations of practices in the mutual fund industry identified as “market timing” and “late trading.” On October 11, 2006, the Manager, the Distributor and Alger Shareholder Services, Inc. executed an Assurance of Discontinuance with the Office of the New York State Attorney General (“NYAG”). On January 18, 2007, the Securities and Exchange Commission (the “SEC”) approved a settlement with the Manager and the Distributor. As part of the settlements with the NYAG and the SEC, without admitting or denying liability, the firms consented to the payment of $30 million to reimburse fund shareholders; a fine of $10 million; and certain other remedial measures including a reduction in management fees of $1 million per year for five years. The $40 million was paid into an SEC Fair Fund for distribution to investors.
On August 31, 2005, the West Virginia Securities Commissioner (the “WVSC”), in an ex parte Summary Order to Cease and Desist and Notice of Right to Hearing, concluded that the Manager and the Distributor had violated the West Virginia Uniform Securities Act (the “WVUSA”), and ordered the Manager and the Distributor to cease and desist from further violations of the WVUSA by engaging in the market-timing-related conduct described in the order. The ex parte order provided notice of their right to a hearing with respect to the violations of law asserted by the WVSC. Other firms unaffiliated with the Manager were served with similar orders. The Manager and the Distributor intend to request a hearing for the purpose of seeking to vacate or modify the order.
In addition, in 2003 and 2004 several purported class actions and shareholder derivative suits were filed against various parties in the mutual fund industry, including the Manager, certain mutual funds managed by the Manager (the “Alger Mutual Funds”), and certain current and former Alger Mutual Fund trustees and officers, alleging wrongful conduct related to market-timing and late-trading by mutual fund shareholders. These cases were transferred to the U.S. District Court of Maryland by the Judicial Panel on Multidistrict Litigation for consolidated pre-trial proceedings under the caption number 1:04-MD-15863 (JFM). After a number of the claims were dismissed by the court, the class and derivative suits were settled in principle, but such settlement remains subject to court approval.
NOTE 8 — Recent Accounting Pronouncements:
In March 2008, the Financial Accounting Standards Board (“FASB”) issued the Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about the Fund’s
70
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of FAS 161 will have on the Fund’s financial statements and related disclosures.
In April 2009, FASB issued a new Staff Position FSP FAS 157-4 which amends FASB Statement No. 157, Fair Value Measurements, and is effective for interim and annual periods ending after June 15, 2009. FSP FAS 157-4 provides additional guidance when the volume and level of activity for the asset or liability measured at fair value has significantly decreased. Additionally, FSP FAS 157-4 expands disclosure by reporting entities with respect to categories of assets and liabilities carried at fair value. Management is currently evaluating the impact the adoption of FSP FAS 157-4 will have on the Fund’s financial statements and related disclosures.
In May 2009, FASB issued Statement of Financial Accounting Standards No. 165, Subsequent Events (“FAS 165”), which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. Although there is new terminology, the standard is based on the same principles as those that currently exist in the auditing standards. The standard, which includes a new required disclosure of the date through which an entity has evaluated subsequent events, is effective for interim or annual periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FAS 165 will have on the Fund’s financial statements and related disclosures.
71
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: transaction costs, if applicable, including sales charges (loads) and redemption fees; and ongoing costs, including management fees, distribution (12b-1) fees, if applicable, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning of the six-month period starting November 1, 2008 and ending April 30, 2009.
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.
72
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
|
|
|
|
|
|
|
| Ratio of |
| |||
|
|
|
|
|
|
|
|
|
| Expenses to |
| |||
|
|
|
|
|
|
|
|
|
| Average |
| |||
|
|
|
|
|
|
|
| Expenses |
| Net Assets |
| |||
|
|
|
| Beginning |
| Ending |
| Paid During |
| For the |
| |||
|
|
|
| Account |
| Account |
| the Six Months |
| Six Months |
| |||
|
|
|
| Value |
| Value |
| Ended |
| Ended |
| |||
|
|
|
| November 1, 2008 |
| April 30, 2009 |
| April 30, 2009(a) |
| April 30, 2009(b) |
| |||
ALGER SPECTRA FUND | ||||||||||||||
| Actual |
| $ | 1,000.00 |
| $ | 1,018.40 |
| $ | 11.16 |
| 2.23 | % | |
|
| Hypothetical(c) |
| 1,000.00 |
| 1,013.74 |
| 1.13 |
| 2.23 |
| |||
Class C |
| Actual |
| 1,000.00 |
| 1,017.00 |
| 13.45 |
| 2.69 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,011.46 |
| 13.42 |
| 2.69 |
| |||
Class I |
| Actual |
| 1,000.00 |
| 1,022.60 |
| 8.37 |
| 1.67 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,016.51 |
| 8.35 |
| 1.67 |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
ALGER GREEN FUND | ||||||||||||||
Class A |
| Actual |
| $ | 1,000.00 |
| $ | 955.80 |
| $ | 6.06 |
| 1.25 | % |
|
| Hypothetical(c) |
| 1,000.00 |
| 1,018.60 |
| 6.26 |
| 1.25 |
| |||
Class C |
| Actual |
| 1,000.00 |
| 953.40 |
| 9.69 |
| 2.00 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,014.88 |
| 9.99 |
| 2.00 |
| |||
Class I |
| Actual |
| 1,000.00 |
| 955.80 |
| 6.06 |
| 1.25 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,018.60 |
| 6.26 |
| 1.25 |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
ALGER ANALYST FUND | ||||||||||||||
Class A |
| Actual |
| $ | 1,000.00 |
| $ | 1,027.40 |
| $ | 6.03 |
| 1.20 | % |
|
| Hypothetical(c) |
| 1,000.00 |
| 1,018.84 |
| 6.01 |
| 1.20 |
| |||
Class C |
| Actual |
| 1,000.00 |
| 1,024.40 |
| 9.79 |
| 1.95 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,015.12 |
| 9.74 |
| 1.95 |
| |||
Class I |
| Actual |
| 1,000.00 |
| 1,029.00 |
| 6.04 |
| 1.20 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,018.84 |
| 6.01 |
| 1.20 |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
ALGER INTERNATIONAL OPPORTUNITIES FUND | ||||||||||||||
Class A |
| Actual |
| $ | 1,000.00 |
| $ | 989.40 |
| $ | 8.14 |
| 1.65 | % |
|
| Hypothetical(c) |
| 1,000.00 |
| 1,016.61 |
| 8.25 |
| 1.65 |
| |||
Class C |
| Actual |
| 1,000.00 |
| 984.90 |
| 11.81 |
| 2.40 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,012.89 |
| 11.98 |
| 2.40 |
| |||
Class I |
| Actual |
| 1,000.00 |
| 991.10 |
| 6.91 |
| 1.40 |
| |||
|
| Hypothetical(c) |
| 1,000.00 |
| 1,017.85 |
| 7.00 |
| 1.40 |
|
(a) Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
(b) Annualized
(c) 5% annual return before expenses.
73
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (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 the proxy voting record is available, without charge, by calling (800) 992-3863 or online on the Funds’ website at http://www.alger.com or on the SEC’s website at http://www.sec.gov.
Fund Holdings
The Funds’ most recent month end portfolio holdings are available approximately sixty days after month end on the Funds’ website at www.alger.com. The Funds also file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q. The Funds’ Forms N-Q is available online on the SEC’s website at http://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. A copy of the most recent quarterly holdings may also be obtained from the Funds by calling (800) 992-3863.
Change in Independent Registered Public Accounting Firm
On May 12, 2009, Deloitte & Touche LLP was selected as each Fund’s independent registered public accounting firm for the 2009 fiscal year. A majority of each Fund’s Board of Trustees, including a majority of the Independent Trustees, approved the appointment of Deloitte & Touche LLP. The predecessor independent registered public accounting firm’s report on the Fund’s financial statements for the year ended October 31, 2008 and the year ended October 31, 2007 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During such fiscal periods and through May 12, 2009, there were no disagreements between the Funds and the predecessor independent registered public accounting firm on any matter of accounting principles or practices, financial statement disclosure, or audit scope or procedures, which such disagreements, if not resolved to the satisfaction of the predecessor independent registered public accounting firm, would have caused them to make reference to the subject matter of the disagreement in connection with their reports on the financial statements for such fiscal periods.
74
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THE ALGER FUNDS II
111 Fifth Avenue
New York, NY 10003
(800) 992-3362
www.alger.com
Investment Manager
Fred Alger Management, Inc.
111 Fifth Avenue
New York, NY 10003
Distributor
Fred Alger & Company, Incorporated
111 Fifth Avenue
New York, NY 10003
Transfer Agent and Dividend Disbursing Agent
Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266
This report is submitted for the general information of the shareholders of The Alger Funds. It is not authorized for distribution to prospective investors unless accompanied by an effective Prospectus for the Trust, which contains information concerning the Trust’s investment policies, fees and expenses as well as other pertinent information.
SAS 043009
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL A CCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this document.
(b) No changes in the Registrant’s internal control over financial reporting occurred during the Registrant’s second fiscal quarter of the period covered by this report that materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable
(a) (2) Certifications of principal executive officer and principal financial officer as required by rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT
(a) (3) Not applicable
(b) Certifications of principal executive officer and principal financial officer as required by rule 30a-2(b) under the Investment Company Act of 1940 are attached as Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Alger Funds II
By: | /s/Dan C. Chung |
|
|
|
|
| Dan C. Chung |
|
|
|
|
| President |
|
|
|
|
Date: June 30, 2009 |
|
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/Dan C. Chung |
|
|
|
|
| Dan C. Chung |
|
|
|
|
| President |
|
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|
|
Date: June 30, 2009 |
|
By: | /s/Michael D. Martins |
|
|
|
|
| Michael D. Martins |
|
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|
|
| Treasurer |
|
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|
|
Date: June 30, 2009 |
|