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| SECURITIES AND EXCHANGE COMMISSION |
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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: | October 31, 2009 |
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ITEM 1. REPORTS TO STOCKHOLDERS.
The Alger Funds II
ANNUAL REPORT
October 31, 2009
Table of Contents
THE ALGER FUNDS II |
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Letter to Our Shareholders (Unaudited) | 1 |
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Fund Highlights (Unaudited) | 10 |
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Portfolio Summary (Unaudited) | 14 |
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Schedules of Investments | 16 |
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Statements of Assets and Liabilities | 48 |
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Statements of Operations | 52 |
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Statements of Changes in Net Assets | 54 |
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Statement of Cash Flows | 56 |
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Financial Highlights | 58 |
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Notes to Financial Statements | 66 |
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Additional Information (Unaudited) | 82 |
Go Paperless With Alger Electronic Delivery Service
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, | November 30, 2009 |
Year-in-Review
At Alger, we are optimistic that the unprecedented turmoil that began roughly a year ago in September 2008 has ended, although we believe there may be some “pause” in the dramatic rally that began in March 2009. We think it will be, in 2010, a pause that serves to “refresh”. Ultimately, we believe a new bull market has begun, and one that will play out over several years.
Since March 2009, equity performance worldwide has been remarkable amid stronger-than-expected corporate earnings and signs of economic stabilization across the globe. For the one year period ending 10/31/09, the S&P 500 Index delivered 9.79%. The Russell 1000, Russell Midcap and Russell 2000 Indexes each returned 6.46%, 18.75%, and 11.20%, respectively, with midcap stocks outperforming small and large cap stocks. Growth stocks significantly outperformed value as indicated by the Russell 1000 Growth and Value Indexes, which returned 17.52% and 4.78%, respectively. On the international front, European equity markets gained more than 23.04% (MSCI Europe) while emerging equity markets (MSCI EMF) rose an astounding 64.63%. In addition to positive performance by equity markets around the globe, credit markets showed some of the strongest performance on record with the U.S. High Yield market (Barclays Capital U.S. High Yield Index) returning 30.26% for the 1-year period ended 10/31/09. The investment grade credit market (Barclays Capital U.S. Credit Index) also showed a significant 1-Year return, gaining nearly 27.58%, over the same time period. Thus, in the broader context of financial markets, U.S. equities have trailed their credit and international counterparts as U.S. companies grapple with an uneven period of financial crisis and economic paralysis.
We believe the recession in the U.S. largely ended in third quarter of 2009, but a full economic recovery in the U.S. is far from complete. The various government programs and stimulus introduced over the past several months, along with the amount of liquidity provided by the U.S. Federal Reserve and other central banks around the world, have succeeded in taking the worst case scenario of a total financial system collapse off the table. This success is evident, in our opinion, by the improving economic activity throughout the world, not to mention better functioning capital and funding markets. For the U.S., it is likely that the broadest measures of our economy will support our view at Alger that, near term, a stronger than expected recovery continues into early 2010. However, we expect at some point that the ability of the U.S. economy to leverage the momentum of recovery with “true” growth in 2010 and beyond will be a source of anxiety for U.S. markets. The consensus economic view appears to be that the U.S. will experience a long period of subdued expansion. We, too, believe weakness in the job market is likely to persist and will make whatever economic conditions the U.S. experiences “feel” recessionary for many Americans well into 2010.
U.S. unemployment is approximately 10%, its highest level in nearly 26 years, and discouraged and part-time workers (those who have either temporarily given up looking for work or have part-time jobs but want full-time work) likely place the true
unemployment rate closer to 17%. While unemployment does have an adverse impact on consumer sentiment and spending, it has historically been a lagging indicator that typically improves after the overall economy improves. Therefore, we believe unemployment is likely to remain stagnant in 2010, even as other areas of the economy continue to show signs of improvement. This pattern is typical of post-recessionary periods of recovery, and we see no reason it won’t hold true today.
As we look back over the past year, it is very clear that Corporate America responded to this downturn more rapidly and with more decisiveness than past recessions. Quite likely, this rapid response to deteriorating business conditions, as well as financial markets, was assisted by the widespread adoption of “just in time” inventory management, sophisticated customer demand prediction and analysis software and methodologies, and the development of flexible, outsourced supply chain management by Corporate America over the last two decades. The result this past year was very aggressive expense cutting, headcount reductions, and capital expenditure deferrals (and cancellations) as we moved through the financial crisis and this recession. This was evident in second quarter earnings reports in July, and repeated recently in October, in the surprisingly strong margins, earnings and cash flows within Corporate America (represented by the S&P 500 and publicly traded companies’ profit performance as tracked by Alger’s analysts), even as revenues were often weaker than expected (especially in the second quarter) or remain significantly lower than prior year levels (especially in the third quarter).
Looking Ahead
Companies now face different decisions as they look to the future — many are already rehiring employees or restarting capital expenditures or deferred investments in their businesses. While some companies will wait for more clarity on economic conditions before increasing investments, others, particularly those participating in markets that have strong long term growth outlooks, will recognize in today’s markets an opportunity to gain market share or enter new markets when costs are lower, and perhaps competition is less than it was (e.g., due to the elimination of financially weaker players). Many of the best known, most successful businesses today were started in the midst of economic recessions for this very reason.
Moreover, it is in the midst of wrenching change within an economy or industry, that opportunity is created for new business models, new ways of doing things, new services and goods that attract a customer with a “changed” perception of need, want and value. We are, clearly, in the midst of such a period. Indeed, the news today is often only tangentially about “the facts” of an event, and much more a debate in our newspapers and on TV, in the halls of government and around the Thanksgiving dinner table, about what are the new values of our society – represented both by what we believe and what we do both as citizens and consumers and, yes, capitalists.
Change is inevitable. Companies – even those with long-standing track records – are not static. Truly successful companies are run by dynamic people who can adapt, change, and grow. This also holds true for the U.S. economy, which has thrived because of its ability to adapt to the positive dynamic changes that are occurring globally. When change happens, some investors panic, while others turn a blind eye,
whereas others, like ourselves, accept and embrace change. At Alger, change equals opportunity. We believe that when change occurs – whether it is in a company, sector, industry or the economy - the best investment opportunities emerge and we seek to quickly capture them. This is exactly what we have done over the last year as the market created so many attractive opportunities at very reasonable valuations. The current environment continues to provide us with strong opportunities demonstrating the benefits of our rigorous, original and fundamental research approach in uncovering companies with the strongest fundamentals and the ability to leverage change strategically.
We think the key to success going forward will be dependent largely on identifying companies undergoing Positive Dynamic Change, which we believe offer the best long-term growth potential for our clients. We have been utilizing this approach since 1964 and it has been the driving force behind our investment philosophy.
At Alger, we are bullish on the future of U.S. equity investing. However, we think the stock markets will, and probably should, pause in their rally since March 2009 – and that such a period of consolidation is likely in 2010. Economic uncertainty is high, and that alone should give investors reason to doubt in 2010. We have already seen in 2009 that the vast majority of investment flows in the mutual fund industry has been into cash, short term bond funds, and international (especially emerging market equities), and out of U.S. equities generally. However, publicly traded U.S. equities are not a simple representation of the U.S. economy; in fact, they represent an elite subset of Corporate America. In general, they are the leaders in their industries – some by innovations long ago, and others by innovations so recent we have trouble remembering that they didn’t exist a decade or two ago. They represent some of the most astute global competitors, and derive a significant percentage of their revenues and profits from their success in international markets. Their fundamental operating results so far in 2009 have significantly outperformed investor expectations and led those of the broader U.S. economy. Moreover, we believe these companies are likely to continue to improve as global economic recovery takes hold in late 2010 and the years beyond. Thus, we believe 2010 will offer investors an excellent period to “buy the dips” and for stock investing based on identifying companies with superior growth long term and the financial and other strengths to capitalize on their market opportunities globally. As investors become comfortable with the strength of the U.S. and global economic recovery, we believe U.S. equities, particularly “growth” equities, will once again find strong favor, offering a combination of fundamental performance, growth opportunities and sector leadership, and attractive valuation within a global universe. Thus, while credit and international stocks have led the first phase of this recovery in financial markets, we think it is the natural course of the investment cycle to return to U.S. equities in the years ahead.
Portfolio Matters
Alger Spectra Fund
The Alger Spectra Fund returned 31.40% for the fiscal twelve-month period ended October 31, 2009, compared with a return of 17.03% for the Russell 3000 Growth Index.
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 Financials. The largest sector underweight for the period was in Industrials. Relative outperformance in the Information Technology and Health Care sectors were the most important contributors to performance. Sectors that detracted from the portfolio included Consumer Discretionary and Consumer Staples.
Among the most important relative contributors were Apple Inc., GSI Commerce Inc., Chesapeake Energy Corp., Expedia Inc., and Tyco International Ltd. 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 Schering-Plough Corp.
Alger Green Fund
The Alger Green Fund returned 15.93% for the fiscal twelve-month period ended October 31, 2009, compared to the Russell 3000 Growth Index, which returned 17.03%.
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 Consumer Staples. Relative outperformance in the Consumer Staples and Health Care sectors were the most important contributors to performance. Sectors that detracted from the portfolio included Industrials and Information Technology.
Among the most important relative contributors were Whole Foods Market Inc., Expedia Inc., EnergySolutions Inc., Diedrich Coffee Inc., and General Cable 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 JA Solar Holdings Co. Ltd. (ADS).
Alger International Opportunities Fund
The Alger International Opportunities Fund returned 22.45% for the fiscal twelve-month period ended October 31, 2009. During the same period, the Fund’s benchmarks, the MSCI EAFE Index and the MSCI All Country World Index ex U.S. Index returned 10.18% and 10.27%, 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 Information Technology and Energy sectors were the most important contributors to performance. Sectors that detracted from the portfolio included Financials and Consumer Staples.
Among the most important relative contributors were Vale S.A. (ADS), Petrobras Petroleo Brasileiro, Mellanox Technologies Ltd., Netease.com Inc. (ADS), and Vedanta Resources PLC. Conversely, detracting from overall results on a relative
basis were Satyam Computer Services Ltd. (ADS), Ubisoft Entertainment S.A., BHP Billiton Ltd., Nintendo Co. Ltd., and Smith & Nephew PLC.
Alger Analyst Fund
The Alger Analyst Fund returned 22.07% for the fiscal twelve-month period ended October 31, 2009. The Fund’s benchmark, the Russell 3000 Growth Index, returned 17.03% during the same period.
During the period, the largest portfolio weightings in the Alger Analyst Composite portfolio 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 Energy 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 were Optimer Pharmaceuticals Inc., Ardea Biosciences Inc., Marvell Technology Group Ltd., Expedia Inc., and Whole Foods Market Inc. Conversely, detracting from overall results on a relative basis were United Therapeutics Corp., Gildan Activewear Inc., CME Group Inc. (Cl A), Apple Inc., and THQ Inc.
As always, we strive to deliver consistently superior investment results for you, our shareholders, and we thank you for your business and your continued confidence in Alger.
| Respectfully submitted, |
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| Daniel C. Chung |
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| Chief Investment Officer |
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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 twelve-month period return of Class A shares prior to the deduction of any sales charges and include the reinvestment of any dividends or distributions.
The performance data quoted represents past performance, which is not an indication or guarantee of future results. Standardized performance results can be found on the following pages. The investment return and principal value of an investment in a fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Recent performance has been
impacted by an unusually strong period in the U.S. equity market and there is no guarantee that such conditions will be repeated. 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 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 October 31, 2009. Securities mentioned in the Shareholders letter, if not found in the Schedule of Investments, may have been held by the Funds during the twelve-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.
Index Definitions:
· Standard & Poor’s 500 Index is an index of the 500 largest and most profitable companies in the United States.
· Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 90% of the U.S. market.
· Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.
· Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap Index represents approximately 27% of the total market capitalization of the Russell 1000 companies.
· Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
· Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
· Morgan Stanley Capital International Europe Index, a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe.
· MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.
· Barclays Capital U.S. Corporate High Yield Index covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba 1/BB+/BB+ or below. The index excludes Emerging Markets debt. The index was created in 1986, with index history backfilled to January 1, 1983. The U.S. Corporate High-Yield Index is part of the U.S. Universal and Global High-Yield Indices.
· Barclays Capital U.S. Credit Index is comprised of the U.S. Corporate Index and the non-native currency subcomponent of the U.S. Government-
Related Index. The U.S. Credit Index was called the U.S. Corporate Investment Grade Index until July 2000, when it was renamed to reflect the index’s composition of both corporate and non-corporate issuers. The U.S. Credit Index includes publicly issued U.S. corporates, specified foreign debentures and secured notes denominated in USD. Index history is available since 1973. The U.S. Credit Index is a subset of the U.S. Government/Credit Index and the U.S. Aggregate Index.
· 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.
· The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
· 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.
FUND PERFORMANCE AS OF 9/30/09 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS(1)
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| 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) |
| 9.58 | % | 9.98 | % | 0.56 | % | n/a |
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Alger Spectra Class C |
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(Inception 9/24/08) |
| 13.92 | % | 10.40 | % | 0.37 | % | n/a |
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Alger Spectra Class I |
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(Inception 9/24/08) |
| 15.99 | % | 11.26 | % | 1.14 | % | n/a |
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Alger Green Class A(2) |
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(Inception 12/4/00) |
| (6.64 | )% | (5.31 | )% | n/a |
| (4.22 | )% |
Alger Green Class C(2) |
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(Inception 9/24/08) |
| (3.36 | )% | 5.63 | % | n/a |
| (4.37 | )% |
Alger Green Class I(2) |
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(Inception 9/24/08) |
| (1.65 | )% | 6.41 | % | n/a |
| (3.66 | )% |
Alger Analyst Class A |
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(Inception 3/30/07) |
| (3.53 | )% | n/a |
| n/a |
| (6.98 | )% |
Alger Analyst Class C |
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(Inception 9/24/08) |
| 0.09 | % | n/a |
| n/a |
| (5.71 | )% |
Alger Analyst Class I |
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(Inception 9/24/08) |
| 1.82 | % | n/a |
| n/a |
| (5.00 | )% |
Alger International Opportunities Class A |
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(Inception 2/28/07) |
| (8.93 | )% | n/a |
| n/a |
| (9.81 | )% |
Alger International Opportunities Class C |
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(Inception 9/24/08) |
| (5.65 | )% | n/a |
| n/a |
| (8.73 | )% |
Alger International Opportunities Class I |
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(Inception 9/24/08) |
| (3.70 | )% | n/a |
| n/a |
| (7.93 | )% |
(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 the Alger Socially Responsible Growth 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.
ALGER SPECTRA FUND
Fund Highlights Through October 31, 2009 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Spectra Fund Class A shares, with an initial 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged index of common stocks) for the ten years ended October 31, 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 10/31/09(1)
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
|
| SINCE |
|
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 7/28/69) |
| 24.50 | % | 8.55 | % | (0.58 | )% | n/a |
|
Russell 3000 Growth Index |
| 17.03 | % | 1.26 | % | (3.15 | )% | n/a |
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Class C (Inception 9/24/08) |
| 29.55 | % | 8.95 | % | (0.77 | )% | n/a |
|
Russell 3000 Growth Index |
| 17.03 | % | 1.26 | % | (3.15 | )% | n/a |
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Class I (Inception 9/24/08) |
| 31.82 | % | 9.80 | % | (0.01 | )% | n/a |
|
Russell 3000 Growth Index |
| 17.03 | % | 1.26 | % | (3.15 | )% | 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.
(1) 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 redesignated 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.
ALGER GREEN FUND
Fund Highlights Through October 31, 2009 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Green Fund Class A shares, with an initial 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged index of common stocks) on December 4, 2000 through October 31, 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 10/31/09(1)
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
|
| SINCE |
|
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 12/4/00)(2) |
| 9.84 | % | 4.28 | % | n/a |
| (4.47 | )% |
Russell 3000 Growth Index |
| 17.03 | % | 1.26 | % | n/a |
| (2.51 | )% |
|
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|
|
|
|
|
|
|
|
Class C (Inception 9/24/08)(2) |
| 14.30 | % | 4.64 | % | n/a |
| (4.60 | )% |
Russell 3000 Growth Index |
| 17.03 | % | 1.26 | % | n/a |
| (2.51 | )% |
|
|
|
|
|
|
|
|
|
|
Class I (Inception 9/24/08)(2) |
| 15.93 | % | 5.41 | % | n/a |
| (3.89 | )% |
Russell 3000 Growth Index |
| 17.03 | % | 1.26 | % | n/a |
| (2.51 | )% |
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.
(1) 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 redesignated 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.
(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 the Alger Socially Responsible Growth 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.
ALGER ANALYST FUND
Fund Highlights Through October 31, 2009 (Unaudited)
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Analyst Fund Class A shares, with an initial 5.25% maximum sales charge, and the Russell 3000 Growth Index (an unmanaged index of common stocks) on March 30, 2007, the inception date of the Alger Analyst Fund Class A, through October 31, 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 10/31/09(1)
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
|
| SINCE |
|
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 3/30/07) |
| 15.66 | % | n/a |
| n/a |
| (8.45 | )% |
Russell 3000 Growth Index |
| 17.03 | % | n/a |
| n/a |
| (6.26 | )% |
|
|
|
|
|
|
|
|
|
|
Class C (Inception 9/24/08) |
| 20.19 | % | n/a |
| n/a |
| (7.26 | )% |
Russell 3000 Growth Index |
| 17.03 | % | n/a |
| n/a |
| (6.26 | )% |
|
|
|
|
|
|
|
|
|
|
Class I (Inception 9/24/08) |
| 22.10 | % | n/a |
| n/a |
| (6.57 | )% |
Russell 3000 Growth Index |
| 17.03 | % | n/a |
| n/a |
| (6.26 | )% |
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.
(1) 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 redesignated 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.
ALGER INTERNATIONAL OPPORTUNITIES FUND
Fund Highlights Through October 31, 2009 (Unaudited)
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 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 October 31, 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 10/31/09(1)
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
|
|
| SINCE |
|
|
| 1 YEAR |
| 5 YEARS |
| 10 YEARS |
| INCEPTION |
|
Class A (Inception 2/28/07) |
| 16.02 | % | n/a |
| n/a |
| (10.25 | )% |
MSCI EAFE Index |
| 10.18 | % | n/a |
| n/a |
| (14.18 | )% |
MSCI All Country World Index ex U.S. Index |
| 10.27 | % | n/a |
| n/a |
| (13.51 | )% |
|
|
|
|
|
|
|
|
|
|
Class C (Inception 9/24/08) |
| 20.61 | % | n/a |
| n/a |
| (9.17 | )% |
MSCI EAFE Index |
| 10.18 | % | n/a |
| n/a |
| (14.18 | )% |
MSCI All Country World Index ex U.S. Index |
| 10.27 | % | n/a |
| n/a |
| (13.51 | )% |
|
|
|
|
|
|
|
|
|
|
Class I (Inception 9/24/08) |
| 22.92 | % | n/a |
| n/a |
| (8.40 | )% |
MSCI EAFE Index |
| 10.18 | % | n/a |
| n/a |
| (14.18 | )% |
MSCI All Country World Index ex U.S. Index |
| 10.27 | % | n/a |
| n/a |
| (13.51 | )% |
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.
(1) 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 redesignated 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.
PORTFOLIO SUMMARY†
October 31, 2009 (Unaudited)
|
| Alger Spectra |
| Alger Green |
| Alger Analyst |
|
SECTORS |
| Fund‡ |
| Fund |
| Fund |
|
Consumer Discretionary |
| 10.7 | % | 17.5 | % | 15.4 | % |
Consumer Staples |
| 6.9 |
| 7.0 |
| 5.7 |
|
Energy |
| 10.3 |
| 2.4 |
| 3.7 |
|
Financials |
| 8.8 |
| 5.4 |
| 4.9 |
|
Health Care |
| 16.2 |
| 9.2 |
| 24.5 |
|
Industrials |
| 5.1 |
| 19.6 |
| 5.6 |
|
Information Technology |
| 33.5 |
| 26.1 |
| 24.5 |
|
Materials |
| 4.8 |
| 3.4 |
| 2.4 |
|
Telecommunication Services |
| (0.3 | ) | 0.0 |
| 1.4 |
|
Utilities |
| 0.0 |
| 1.6 |
| 0.0 |
|
Short-Term Investments and Net Other Assets |
| 4.0 |
| 7.8 |
| 11.9 |
|
|
| 100.0 | % | 100.0 | % | 100.0 | % |
|
| Alger |
|
|
|
|
|
|
| International |
|
|
|
|
|
|
| Opportunities |
|
|
|
|
|
COUNTRY |
| Fund |
|
|
|
|
|
Australia |
| 4.3 | % |
|
|
|
|
Belgium |
| 0.1 |
|
|
|
|
|
Bermuda |
| 2.2 |
|
|
|
|
|
Brazil |
| 7.1 |
|
|
|
|
|
Canada |
| 1.4 |
|
|
|
|
|
China |
| 6.2 |
|
|
|
|
|
Denmark |
| 1.6 |
|
|
|
|
|
France |
| 4.5 |
|
|
|
|
|
Germany |
| 5.5 |
|
|
|
|
|
Greece |
| 0.2 |
|
|
|
|
|
Hong Kong |
| 3.9 |
|
|
|
|
|
India |
| 3.4 |
|
|
|
|
|
Ireland |
| 0.6 |
|
|
|
|
|
Israel |
| 7.3 |
|
|
|
|
|
Italy |
| 0.4 |
|
|
|
|
|
Japan |
| 13.8 |
|
|
|
|
|
Netherlands |
| 2.7 |
|
|
|
|
|
Norway |
| 0.6 |
|
|
|
|
|
Portugal |
| 0.1 |
|
|
|
|
|
South Africa |
| 0.7 |
|
|
|
|
|
Spain |
| 1.2 |
|
|
|
|
|
Sweden |
| 2.6 |
|
|
|
|
|
Switzerland |
| 8.6 |
|
|
|
|
|
Taiwan |
| 1.7 |
|
|
|
|
|
United Kingdom |
| 12.2 |
|
|
|
|
|
United States |
| 1.2 |
|
|
|
|
|
Cash and Net Other Assets |
| 5.9 |
|
|
|
|
|
|
| 100.0 | % |
|
|
|
|
† Based on net assets for each Fund.
‡ Includes short sales as a reduction of sector exposure.
(This page has been intentionally left blank)
THE ALGER FUNDS II | ALGER SPECTRA FUND
Schedule of Investments‡ October 31, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—103.6% |
|
|
|
|
| |
ADVERTISING—0.2% |
|
|
|
|
| |
Focus Media Holding Ltd.#* |
| 53,300 |
| $ | 641,732 |
|
|
|
|
|
|
| |
AEROSPACE & DEFENSE—2.3% |
|
|
|
|
| |
BE Aerospace Inc. * |
| 142,741 |
| 2,530,798 |
| |
General Dynamics Corp. |
| 60,768 |
| 3,810,154 |
| |
Lockheed Martin Corp. |
| 25,586 |
| 1,760,061 |
| |
|
|
|
| 8,101,013 |
| |
APPLICATION SOFTWARE—1.2% |
|
|
|
|
| |
Adobe Systems Inc. * |
| 106,197 |
| 3,498,129 |
| |
Nice Systems Ltd. #* |
| 22,015 |
| 681,805 |
| |
|
|
|
| 4,179,934 |
| |
ASSET MANAGEMENT & CUSTODY BANKS—0.3% |
|
|
|
|
| |
Affiliated Managers Group Inc. * |
| 8,060 |
| 511,729 |
| |
Invesco Ltd. |
| 39,400 |
| 833,310 |
| |
|
|
|
| 1,345,039 |
| |
AUTO PARTS & EQUIPMENT—1.4% |
|
|
|
|
| |
ArvinMeritor Inc. |
| 16,300 |
| 127,303 |
| |
Dana Holding Corp. * |
| 898,100 |
| 5,083,246 |
| |
|
|
|
| 5,210,549 |
| |
BIOTECHNOLOGY—3.7% |
|
|
|
|
| |
Amgen Inc. * |
| 78,375 |
| 4,211,089 |
| |
Celgene Corp. * |
| 84,149 |
| 4,295,806 |
| |
Gilead Sciences Inc. * |
| 54,500 |
| 2,318,975 |
| |
Human Genome Sciences Inc. * |
| 125,330 |
| 2,342,418 |
| |
|
|
|
| 13,168,288 |
| |
BROADCASTING & CABLE TV—0.7% |
|
|
|
|
| |
CBS Corp., Cl. B |
| 198,400 |
| 2,335,168 |
| |
|
|
|
|
|
| |
CASINOS & GAMING—0.9% |
|
|
|
|
| |
Las Vegas Sands Corp.* |
| 198,600 |
| 2,996,874 |
| |
|
|
|
|
|
| |
COAL & CONSUMABLE FUELS—1.8% |
|
|
|
|
| |
Patriot Coal Corp.* |
| 542,391 |
| 6,129,018 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—4.4% |
|
|
|
|
| |
Alcatel-Lucent #* |
| 311,882 |
| 1,150,845 |
| |
Brocade Communications Systems Inc. *,+ |
| 754,744 |
| 6,475,703 |
| |
Cisco Systems Inc. *,+ |
| 153,092 |
| 3,498,152 |
| |
Qualcomm Inc. |
| 101,837 |
| 4,217,070 |
| |
|
|
|
| 15,341,770 |
| |
COMPUTER HARDWARE—5.7% |
|
|
|
|
| |
Apple Inc. *,+ |
| 67,572 |
| 12,737,322 |
| |
Hewlett-Packard Co. + |
| 89,884 |
| 4,265,895 |
| |
International Business Machines Corp. + |
| 22,613 |
| 2,727,354 |
| |
|
|
|
| 19,730,571 |
| |
COMPUTER STORAGE & PERIPHERALS—2.7% |
|
|
|
|
| |
EMC Corp. * |
| 187,699 |
| 3,091,403 |
| |
Seagate Technology |
| 454,253 |
| 6,336,829 |
| |
|
|
|
| 9,428,232 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
DATA PROCESSING & OUTSOURCED SERVICES—1.6% |
|
|
|
|
| |
Mastercard Inc.+ |
| 26,365 |
| $ | 5,774,462 |
|
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.3% |
|
|
|
|
| |
Banco Santander Brasil SA#* |
| 84,900 |
| 1,006,914 |
| |
|
|
|
|
|
| |
DIVERSIFIED CHEMICALS—1.0% |
|
|
|
|
| |
Ashland Inc. |
| 55,100 |
| 1,903,154 |
| |
FMC Corporation |
| 28,218 |
| 1,441,940 |
| |
|
|
|
| 3,345,094 |
| |
DIVERSIFIED METALS & MINING—0.1% |
|
|
|
|
| |
Grande Cache Coal Corp.* |
| 118,400 |
| 409,981 |
| |
|
|
|
|
|
| |
EDUCATION SERVICES—0.5% |
|
|
|
|
| |
ITT Educational Services Inc.* |
| 17,764 |
| 1,604,977 |
| |
|
|
|
|
|
| |
ELECTRICAL COMPONENTS & EQUIPMENT—0.3% |
|
|
|
|
| |
Cooper Industries PLC, CL. A |
| 23,000 |
| 889,870 |
| |
|
|
|
|
|
| |
FERTILIZERS & AGRICULTURAL CHEMICALS—0.8% |
|
|
|
|
| |
Monsanto Co. |
| 8,728 |
| 586,347 |
| |
Mosaic Co., /The |
| 47,293 |
| 2,210,002 |
| |
|
|
|
| 2,796,349 |
| |
GENERAL MERCHANDISE STORES—0.8% |
|
|
|
|
| |
Target Corp. |
| 57,773 |
| 2,797,946 |
| |
|
|
|
|
|
| |
GOLD—0.2% |
|
|
|
|
| |
Yamana Gold Inc. |
| 81,600 |
| 869,040 |
| |
|
|
|
|
|
| |
HEALTH CARE EQUIPMENT—5.7% |
|
|
|
|
| |
Baxter International Inc. |
| 82,069 |
| 4,436,650 |
| |
Covidien PLC + |
| 181,412 |
| 7,641,074 |
| |
Given Imaging Ltd |
| 138,313 |
| 1,969,577 |
| |
Insulet Corp. * |
| 234,201 |
| 2,599,631 |
| |
Select Medical Holdings Corp. * |
| 273,500 |
| 2,652,950 |
| |
Thoratec Corp. * |
| 12,200 |
| 320,372 |
| |
|
|
|
| 19,620,254 |
| |
HEALTH CARE SERVICES—0.4% |
|
|
|
|
| |
Express Scripts Inc.* |
| 17,489 |
| 1,397,721 |
| |
|
|
|
|
|
| |
HEALTH CARE SUPPLIES—0.9% |
|
|
|
|
| |
Inverness Medical Innovations Inc.*,+ |
| 85,279 |
| 3,241,455 |
| |
|
|
|
|
|
| |
HOME IMPROVEMENT RETAIL—0.7% |
|
|
|
|
| |
Lowe’s Companies, Inc. |
| 123,072 |
| 2,408,519 |
| |
|
|
|
|
|
| |
HOUSEHOLD PRODUCTS—0.9% |
|
|
|
|
| |
Energizer Holdings Inc.* |
| 53,210 |
| 3,238,893 |
| |
|
|
|
|
|
| |
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.1% |
|
|
|
|
| |
Watson Wyatt Worldwide Inc., Cl. A |
| 11,800 |
| 514,244 |
| |
|
|
|
|
|
| |
HYPERMARKETS & SUPER CENTERS—3.7% |
|
|
|
|
| |
Costco Wholesale Corp. |
| 35,500 |
| 2,018,175 |
| |
Wal-Mart Stores Inc. + |
| 223,983 |
| 11,127,475 |
| |
|
|
|
| 13,145,650 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
INDUSTRIAL CONGLOMERATES—1.2% |
|
|
|
|
| |
McDermott International Inc. * |
| 129,155 |
| $ | 2,871,115 |
|
Tyco International Ltd. |
| 35,621 |
| 1,195,085 |
| |
|
|
|
| 4,066,200 |
| |
INDUSTRIAL MACHINERY—0.2% |
|
|
|
|
| |
SPX Corp. |
| 10,200 |
| 538,356 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—3.1% |
|
|
|
|
| |
Chevron Corp.+ |
| 142,961 |
| 10,942,235 |
| |
|
|
|
|
|
| |
INTERNET RETAIL—2.3% |
|
|
|
|
| |
Amazon.com Inc. * |
| 16,900 |
| 2,007,889 |
| |
Expedia Inc. *,+ |
| 155,790 |
| 3,531,760 |
| |
Shutterfly Inc. * |
| 190,372 |
| 2,684,245 |
| |
|
|
|
| 8,223,894 |
| |
INTERNET SOFTWARE & SERVICES—7.2% |
|
|
|
|
| |
eBay Inc. * |
| 150,093 |
| 3,342,571 |
| |
Google Inc., Cl. A *,+ |
| 14,155 |
| 7,588,778 |
| |
GSI Commerce Inc. *,+ |
| 164,550 |
| 3,121,514 |
| |
IAC/InterActiveCorp. *,+ |
| 84,046 |
| 1,591,831 |
| |
Sina Corp. * |
| 97,395 |
| 3,641,599 |
| |
Yahoo! Inc. *,+ |
| 358,835 |
| 5,705,477 |
| |
|
|
|
| 24,991,770 |
| |
INVESTMENT BANKING & BROKERAGE—0.8% |
|
|
|
|
| |
Lazard Ltd., Cl. A |
| 12,500 |
| 471,875 |
| |
Morgan Stanley |
| 75,885 |
| 2,437,426 |
| |
|
|
|
| 2,909,301 |
| |
LEISURE PRODUCTS—0.4% |
|
|
|
|
| |
Brunswick Corp. |
| 43,100 |
| 408,588 |
| |
Fossil Inc. * |
| 37,800 |
| 1,010,394 |
| |
|
|
|
| 1,418,982 |
| |
LIFE & HEALTH INSURANCE—2.3% |
|
|
|
|
| |
Lincoln National Corp. |
| 152,718 |
| 3,639,270 |
| |
Prudential Financial Inc. + |
| 97,179 |
| 4,395,406 |
| |
|
|
|
| 8,034,676 |
| |
LIFE SCIENCES TOOLS & SERVICES—1.3% |
|
|
|
|
| |
Life Technologies Corp. * |
| 65,917 |
| 3,109,305 |
| |
Thermo Fisher Scientific Inc. * |
| 28,530 |
| 1,283,850 |
| |
|
|
|
| 4,393,155 |
| |
MANAGED HEALTH CARE—0.2% |
|
|
|
|
| |
WellPoint Inc.* |
| 15,589 |
| 728,942 |
| |
|
|
|
|
|
| |
METAL & GLASS CONTAINERS—1.7% |
|
|
|
|
| |
Owens-Illinois Inc.*,+ |
| 180,258 |
| 5,746,625 |
| |
|
|
|
|
|
| |
MOVIES & ENTERTAINMENT—1.4% |
|
|
|
|
| |
Liberty Media Corp., Capital, Cl. A *,+ |
| 174,293 |
| 3,606,122 |
| |
Regal Entertainment Group, Cl. A |
| 105,578 |
| 1,331,339 |
| |
|
|
|
| 4,937,461 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
MULTI-LINE INSURANCE—0.9% |
|
|
|
|
| |
Genworth Financial Inc., CI. A* |
| 299,912 |
| $ | 3,185,065 |
|
|
|
|
|
|
| |
OIL & GAS DRILLING—0.4% |
|
|
|
|
| |
Transocean Ltd.* |
| 15,498 |
| 1,300,437 |
| |
|
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—0.5% |
|
|
|
|
| |
Weatherford International Ltd.* |
| 97,500 |
| 1,709,175 |
| |
|
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—4.1% |
|
|
|
|
| |
Atlas Energy Inc. |
| 120,900 |
| 3,165,162 |
| |
Chesapeake Energy Corp. + |
| 68,756 |
| 1,684,522 |
| |
Kodiak Oil & Gas Corp. * |
| 1,200,700 |
| 2,893,687 |
| |
Nexen Inc. + |
| 230,863 |
| 4,956,629 |
| |
Plains Exploration & Production Co. * |
| 63,464 |
| 1,681,796 |
| |
|
|
|
| 14,381,796 |
| |
OIL & GAS STORAGE & TRANSPORTATION—0.4% |
|
|
|
|
| |
Magellan Midstream Partners LP |
| 29,341 |
| 1,139,604 |
| |
NuStar GP Holdings LLC. |
| 13,800 |
| 336,168 |
| |
|
|
|
| 1,475,772 |
| |
OTHER DIVERSIFIED FINANCIAL SERVICES—3.3% |
|
|
|
|
| |
Bank of America Corp. |
| 279,617 |
| 4,076,816 |
| |
BM&F Bovespa SA |
| 266,000 |
| 1,737,616 |
| |
JPMorgan Chase & Co. + |
| 123,843 |
| 5,172,923 |
| |
|
|
|
| 10,987,355 |
| |
PHARMACEUTICALS—5.9% |
|
|
|
|
| |
Abbott Laboratories + |
| 128,574 |
| 6,501,987 |
| |
Allergan Inc. |
| 20,885 |
| 1,174,781 |
| |
Auxilium Pharmaceuticals Inc. * |
| 10,600 |
| 333,476 |
| |
Medicis Pharmaceutical Corp., CI. A |
| 134,900 |
| 2,855,833 |
| |
Optimer Pharmaceuticals Inc. * |
| 229,500 |
| 2,653,020 |
| |
Pfizer Inc. |
| 416,199 |
| 7,087,868 |
| |
|
|
|
| 20,606,965 |
| |
PROPERTY & CASUALTY INSURANCE—1.9% |
|
|
|
|
| |
Travelers Cos., Inc., /The |
| 133,944 |
| 6,669,072 |
| |
|
|
|
|
|
| |
PUBLISHING—0.4% |
|
|
|
|
| |
McGraw-Hill Cos., Inc., /The+ |
| 47,022 |
| 1,353,293 |
| |
|
|
|
|
|
| |
RAILROADS—0.9% |
|
|
|
|
| |
Burlington Northern Santa Fe Corp. |
| 42,747 |
| 3,219,704 |
| |
|
|
|
|
|
| |
RESTAURANTS—1.4% |
|
|
|
|
| |
McDonald’s Corp. |
| 73,931 |
| 4,333,096 |
| |
Yum! Brands Inc. |
| 14,798 |
| 487,594 |
| |
|
|
|
| 4,820,690 |
| |
SEMICONDUCTOR EQUIPMENT—0.2% |
|
|
|
|
| |
Lam Research Corp.* |
| 23,500 |
| 792,420 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—9.4% |
|
|
|
|
| |
Broadcom Corp., CI. A * |
| 62,730 |
| 1,669,245 |
| |
Intel Corp. |
| 557,305 |
| 10,650,100 |
| |
Marvell Technology Group Ltd. *,+ |
| 330,954 |
| 4,540,689 |
| |
Monolithic Power Systems Inc. * |
| 76,900 |
| 1,537,231 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
SEMICONDUCTORS—(CONT.) |
|
|
|
|
| |
ON Semiconductor Corp. *,+ |
| 962,048 |
| $ | 6,436,101 |
|
RF Micro Devices Inc. * |
| 215,900 |
| 859,282 |
| |
Skyworks Solutions Inc. *,+ |
| 678,366 |
| 7,075,357 |
| |
|
|
|
| 32,768,005 |
| |
SOFT DRINKS—1.2% |
|
|
|
|
| |
Hansen Natural Corp. * |
| 28,913 |
| 1,045,205 |
| |
PepsiCo Inc. |
| 49,215 |
| 2,979,968 |
| |
|
|
|
| 4,025,173 |
| |
STEEL—1.0% |
|
|
|
|
| |
Cliffs Natural Resources Inc. |
| 98,608 |
| 3,507,487 |
| |
|
|
|
|
|
| |
SYSTEMS SOFTWARE—2.6% |
|
|
|
|
| |
Microsoft Corp.+ |
| 320,963 |
| 8,900,304 |
| |
|
|
|
|
|
| |
THRIFTS & MORTGAGE FINANCE—0.6% |
|
|
|
|
| |
Ocwen Financial Corp. * |
| 137,000 |
| 1,497,410 |
| |
TFS Financial Corp. |
| 63,573 |
| 741,261 |
| |
|
|
|
| 2,238,671 |
| |
TOBACCO—1.1% |
|
|
|
|
| |
Philip Morris International Inc.+ |
| 79,094 |
| 3,745,892 |
| |
|
|
|
|
|
| |
TRUCKING—1.8% |
|
|
|
|
| |
Dollar Thrifty Automotive Group Inc. * |
| 143,390 |
| 2,654,149 |
| |
Hertz Global Holdings Inc. * |
| 387,413 |
| 3,606,815 |
| |
|
|
|
| 6,260,964 |
| |
WIRELESS TELECOMMUNICATION SERVICES—0.2% |
|
|
|
|
| |
Syniverse Holdings Inc.* |
| 34,600 |
| 592,698 |
| |
TOTAL COMMON STOCKS |
|
|
| 361,142,092 |
| |
|
| PRINCIPAL |
|
|
| |
|
| AMOUNT |
|
|
| |
SHORT-TERM INVESTMENTS—1.1% |
|
|
|
|
| |
TIME DEPOSITS—1.1% |
|
|
|
|
| |
Wells Fargo Grand Cayman, 0.03%, 11/02/09 |
| 3,749,903 |
| 3,749,903 |
| |
|
|
|
|
|
| |
Total Investments |
| 104.7 | % | 364,891,995 |
| |
Liabilities in Excess of Other Assets |
| (4.7 | ) | (16,347,899 | ) | |
|
|
|
|
|
|
|
NET ASSETS |
| 100.0 | % | $ | 348,544,096 |
|
‡ Securities classified as Level 1 for ASC 820 disclosure purposes based on valuation inputs unless otherwise noted.
+ All or a portion of this security is held as collateral for securities sold short.
* Non-income producing security.
# American Depository Receipts.
(a) | At October 31, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $371,647,962 amounted to $6,755,967 which consisted of aggregate gross unrealized appreciation of $14,559,623 and aggregate gross unrealized depreciation of $21,315,590. |
Industry classifications are unaudited.
See Notes to Financial Statements.
THE ALGER FUNDS II | ALGER SPECTRA FUND
Securities Sold Short‡ October 31, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(7.6)% |
|
|
|
|
| |
APPLICATION SOFTWARE—(0.4)% |
|
|
|
|
| |
SAP AG# |
| 28,000 |
| $ | 1,267,560 |
|
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—(0.5)% |
|
|
|
|
| |
Telefonos de Mexico SAB de CV# |
| 98,700 |
| 1,639,407 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—(0.4)% |
|
|
|
|
| |
Telefonaktiebolaget LM Ericsson# |
| 122,300 |
| 1,271,920 |
| |
|
|
|
|
|
| |
ELECTRICAL COMPONENTS & EQUIPMENT—(0.4)% |
|
|
|
|
| |
Acuity Brands Inc. |
| 43,500 |
| 1,377,210 |
| |
|
|
|
|
|
| |
CONSUMER FINANCE—(0.1)% |
|
|
|
|
| |
American Express Co.* |
| 5,950 |
| 207,298 |
| |
|
|
|
|
|
| |
BIOTECHNOLOGY—(0.5)% |
|
|
|
|
| |
Arena Pharmaceuticals Inc* |
| 195,000 |
| 688,350 |
| |
Genzyme Corp.* |
| 23,400 |
| 1,184,040 |
| |
|
|
|
| 1,872,390 |
| |
REGIONAL BANKS—(0.7)% |
|
|
|
|
| |
BB&T Corp.* |
| 106,100 |
| 2,536,851 |
| |
|
|
|
|
|
| |
HEALTH CARE EQUIPMENT—(1.3)% |
|
|
|
|
| |
CR Bard Inc.* |
| 25,900 |
| 1,944,313 |
| |
CareFusion Corp.* |
| 122,000 |
| 2,729,140 |
| |
|
|
|
| 4,673,453 |
| |
DATA PROCESSING & OUTSOURCED SERVICES—(0.1)% |
|
|
|
|
| |
Computer Sciences Corp.* |
| 7,900 |
| 400,609 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—(0.2)% |
|
|
|
|
| |
Danaher Corp. |
| 12,200 |
| 832,406 |
| |
|
|
|
|
|
| |
ASSET MANAGEMENT & CUSTODY BANKS—(0.7)% |
|
|
|
|
| |
Franklin Resources Inc. |
| 18,300 |
| 1,914,729 |
| |
Waddell & Reed Financial Inc., Cl. A |
| 12,000 |
| 336,720 |
| |
|
|
|
| 2,251,449 |
| |
TRUCKING—(0.1)% |
|
|
|
|
| |
Landstar System Inc. |
| 12,500 |
| 440,500 |
| |
|
|
|
|
|
| |
CASINOS & GAMING—(0.1)% |
|
|
|
|
| |
MGM Mirage* |
| 38,300 |
| 355,041 |
| |
|
|
|
|
|
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—(0.9)% |
|
|
|
|
| |
Navistar International Corp.* |
| 22,500 |
| 745,650 |
| |
PACCAR Inc. |
| 65,500 |
| 2,450,355 |
| |
|
|
|
| 3,196,005 |
| |
THRIFTS & MORTGAGE FINANCE—(0.3)% |
|
|
|
|
| |
New York Community Bancorp Inc. |
| 80,400 |
| 867,516 |
| |
|
|
|
|
|
| |
APPAREL RETAIL—(0.2)% |
|
|
|
|
| |
Ross Stores Inc. |
| 18,800 |
| 827,388 |
| |
|
|
|
|
|
| |
IT CONSULTING & OTHER SERVICES—(0.5)% |
|
|
|
|
| |
SAIC Inc.* |
| 102,900 |
| 1,822,359 |
| |
|
|
|
|
|
| |
SPECIALTY STORES—(0.1)% |
|
|
|
|
| |
Tractor Supply Co.* |
| 5,200 |
| 232,440 |
| |
|
|
|
|
|
| |
SYSTEMS SOFTWARE—(0.1)% |
|
|
|
|
| |
VMware Inc., Cl. A* |
| 8,300 |
| 318,969 |
| |
|
|
|
|
|
| |
TOTAL (proceeds $25,979,267) |
|
|
| $ | 26,390,771 |
|
‡ Securities classified as Level 1 for ASC 820 disclosure purposes based on valuation inputs unless otherwise noted.
* Non-income producing security.
# American Depository Receipts.
Industry classifications are unaudited.
See Notes to Financial Statements.
(This page has been intentionally left black)
THE ALGER FUNDS II | ALGER GREEN FUND
Schedule of Investments‡ October 31, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—91.8% |
|
|
|
|
| |
AEROSPACE & DEFENSE—0.6% |
|
|
|
|
| |
General Dynamics Corp. |
| 3,395 |
| $ | 212,867 |
|
|
|
|
|
|
| |
AIR FREIGHT & LOGISTICS—1.6% |
|
|
|
|
| |
FedEx Corp. |
| 4,565 |
| 331,830 |
| |
United Parcel Service Inc., Cl. B |
| 4,090 |
| 219,551 |
| |
|
|
|
| 551,381 |
| |
APPAREL RETAIL—1.3% |
|
|
|
|
| |
Coldwater Creek Inc. * |
| 35,255 |
| 202,716 |
| |
Gap Inc., /The |
| 11,390 |
| 243,063 |
| |
|
|
|
| 445,779 |
| |
APPLICATION SOFTWARE—1.0% |
|
|
|
|
| |
Adobe Systems Inc.* |
| 10,665 |
| 351,305 |
| |
|
|
|
|
|
| |
AUTO PARTS & EQUIPMENT—1.8% |
|
|
|
|
| |
Fuel Systems Solutions Inc. * |
| 5,185 |
| 169,757 |
| |
Johnson Controls Inc. |
| 19,645 |
| 469,908 |
| |
|
|
|
| 639,665 |
| |
BIOTECHNOLOGY—1.1% |
|
|
|
|
| |
Metabolix Inc.* |
| 36,475 |
| 369,857 |
| |
|
|
|
|
|
| |
BROADCASTING & CABLE TV—1.0% |
|
|
|
|
| |
Discovery Communications Inc.* |
| 13,035 |
| 358,463 |
| |
|
|
|
|
|
| |
CABLE & SATELLITE—1.0% |
|
|
|
|
| |
DIRECTV Group Inc., /The* |
| 12,675 |
| 333,353 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—1.7% |
|
|
|
|
| |
Cisco Systems Inc.* |
| 25,700 |
| 587,245 |
| |
|
|
|
|
|
| |
COMPUTER & ELECTRONICS RETAIL—0.8% |
|
|
|
|
| |
GameStop Corp., Cl. A* |
| 11,500 |
| 279,335 |
| |
|
|
|
|
|
| |
COMPUTER HARDWARE—6.4% |
|
|
|
|
| |
Apple Inc. * |
| 6,365 |
| 1,199,803 |
| |
Hewlett-Packard Co. |
| 10,490 |
| 497,855 |
| |
International Business Machines Corp. |
| 4,705 |
| 567,470 |
| |
|
|
|
| 2,265,128 |
| |
CONSTRUCTION & ENGINEERING—0.8% |
|
|
|
|
| |
Aecom Technology Corp.* |
| 10,490 |
| 264,768 |
| |
|
|
|
|
|
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—1.0% |
|
|
|
|
| |
Cummins Inc. |
| 7,775 |
| 334,792 |
| |
|
|
|
|
|
| |
DATA PROCESSING & OUTSOURCED SERVICES—1.1% |
|
|
|
|
| |
Visa Inc., Cl. A |
| 5,235 |
| 396,604 |
| |
|
|
|
|
|
| |
DEPARTMENT STORES—1.1% |
|
|
|
|
| |
Kohl’s Corp.* |
| 6,435 |
| 368,211 |
| |
|
|
|
|
|
| |
DISTRIBUTORS—1.0% |
|
|
|
|
| |
LKQ Corp.* |
| 20,070 |
| 346,609 |
| |
|
|
|
|
|
| |
DIVERSIFIED CHEMICALS—0.7% |
|
|
|
|
| |
FMC Corporation |
| 4,865 |
| 248,602 |
| |
|
|
|
|
|
| |
ELECTRIC UTILITIES—1.6% |
|
|
|
|
| |
Duke Energy Corp. |
| 19,965 |
| 315,847 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
ELECTRIC UTILITIES—(CONT.) |
|
|
|
|
| |
ITC Holdings Corp. |
| 5,715 |
| $ | 253,860 |
|
|
|
|
| 569,707 |
| |
ELECTRICAL COMPONENTS & EQUIPMENT—7.0% |
|
|
|
|
| |
A123 Systems Inc. * |
| 8,675 |
| 170,551 |
| |
American Superconductor Corp. * |
| 8,395 |
| 281,400 |
| |
First Solar Inc. * |
| 3,510 |
| 427,973 |
| |
General Cable Corp. * |
| 5,410 |
| 168,467 |
| |
SunPower Corp., Cl. A * |
| 12,050 |
| 298,961 |
| |
Trina Solar Ltd. #* |
| 11,370 |
| 369,298 |
| |
Woodward Governor Co. |
| 16,875 |
| 396,731 |
| |
Yingli Green Energy Holding Co., Ltd. #* |
| 32,310 |
| 374,150 |
| |
|
|
|
| 2,487,531 |
| |
ELECTRONIC COMPONENTS—1.1% |
|
|
|
|
| |
Dolby Laboratories Inc., Cl. A* |
| 8,825 |
| 370,121 |
| |
|
|
|
|
|
| |
ELECTRONIC EQUIPMENT MANUFACTURERS—1.2% |
|
|
|
|
| |
Itron Inc.* |
| 6,785 |
| 407,371 |
| |
|
|
|
|
|
| |
ELECTRONIC MANUFACTURING SERVICES—0.8% |
|
|
|
|
| |
Trimble Navigation Ltd.* |
| 12,590 |
| 264,012 |
| |
|
|
|
|
|
| |
ENVIRONMENTAL & FACILITIES SERVICES—4.4% |
|
|
|
|
| |
Covanta Holding Corp. * |
| 12,940 |
| 222,309 |
| |
EnergySolutions Inc. |
| 35,825 |
| 298,781 |
| |
RINO International Corp. * |
| 16,165 |
| 315,541 |
| |
Tetra Tech Inc. * |
| 14,580 |
| 375,142 |
| |
Waste Management Inc. |
| 10,720 |
| 320,314 |
| |
|
|
|
| 1,532,087 |
| |
FOOD RETAIL—1.2% |
|
|
|
|
| |
Whole Foods Market Inc.* |
| 12,630 |
| 404,918 |
| |
|
|
|
|
|
| |
FOOTWEAR—1.1% |
|
|
|
|
| |
NIKE Inc., Cl. B |
| 6,135 |
| 381,474 |
| |
|
|
|
|
|
| |
GENERAL MERCHANDISE STORES—1.8% |
|
|
|
|
| |
Target Corp. |
| 13,250 |
| 641,697 |
| |
|
|
|
|
|
| |
HEALTH CARE DISTRIBUTORS—0.5% |
|
|
|
|
| |
Cardinal Health Inc. |
| 6,760 |
| 191,578 |
| |
|
|
|
|
|
| |
HEALTH CARE EQUIPMENT—0.4% |
|
|
|
|
| |
Covidien PLC |
| 3,690 |
| 155,423 |
| |
|
|
|
|
|
| |
HEALTH CARE SERVICES—0.6% |
|
|
|
|
| |
Express Scripts Inc.* |
| 2,805 |
| 224,176 |
| |
|
|
|
|
|
| |
HEALTH CARE SUPPLIES—0.8% |
|
|
|
|
| |
Inverness Medical Innovations Inc.* |
| 7,025 |
| 267,020 |
| |
|
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—1.0% |
|
|
|
|
| |
Vestas Wind Systems A/S*, (L2) |
| 5,130 |
| 360,738 |
| |
|
|
|
|
|
| |
HOMEBUILDING—0.6% |
|
|
|
|
| |
KB Home |
| 15,530 |
| 220,215 |
| |
|
|
|
|
|
| |
HOTELS RESORTS & CRUISE LINES—1.7% |
|
|
|
|
| |
Carnival Corp. |
| 7,355 |
| 214,178 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
HOTELS RESORTS & CRUISE LINES—(CONT.) |
|
|
|
|
| |
Marriott International Inc., Cl. A |
| 14,561 |
| $ | 364,898 |
|
|
|
|
| 579,076 |
| |
HOUSEHOLD PRODUCTS—1.0% |
|
|
|
|
| |
Procter & Gamble Co., /The |
| 6,109 |
| 354,322 |
| |
|
|
|
|
|
| |
HYPERMARKETS & SUPER CENTERS—1.9% |
|
|
|
|
| |
Wal-Mart Stores Inc. |
| 13,660 |
| 678,629 |
| |
|
|
|
|
|
| |
INDUSTRIAL GASES—0.5% |
|
|
|
|
| |
Praxair Inc. |
| 2,080 |
| 165,235 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—1.6% |
|
|
|
|
| |
Duoyuan Global Water Inc. #* |
| 10,180 |
| 333,701 |
| |
SmartHeat Inc. * |
| 24,330 |
| 217,510 |
| |
|
|
|
| 551,211 |
| |
INTEGRATED OIL & GAS—2.1% |
|
|
|
|
| |
BP PLC #* |
| 4,950 |
| 280,269 |
| |
Chevron Corp. |
| 5,020 |
| 384,231 |
| |
Hess Corp. |
| 915 |
| 50,087 |
| |
|
|
|
| 714,587 |
| |
INTERNET RETAIL—2.1% |
|
|
|
|
| |
Amazon.com Inc. * |
| 3,385 |
| 402,171 |
| |
Expedia Inc. * |
| 16,025 |
| 363,287 |
| |
|
|
|
| 765,458 |
| |
INTERNET SOFTWARE & SERVICES—5.3% |
|
|
|
|
| |
eBay Inc. * |
| 19,750 |
| 439,833 |
| |
Google Inc., Cl. A * |
| 1,370 |
| 734,483 |
| |
IAC/InterActiveCorp. * |
| 15,620 |
| 295,843 |
| |
Yahoo! Inc. * |
| 26,505 |
| 421,430 |
| |
|
|
|
| 1,891,589 |
| |
INVESTMENT BANKING & BROKERAGE—1.6% |
|
|
|
|
| |
Goldman Sachs Group Inc., /The |
| 1,755 |
| 298,649 |
| |
Morgan Stanley |
| 8,060 |
| 258,887 |
| |
|
|
|
| 557,536 |
| |
LIFE & HEALTH INSURANCE—0.7% |
|
|
|
|
| |
Prudential Financial Inc. |
| 5,520 |
| 249,670 |
| |
|
|
|
|
|
| |
LIFE SCIENCES TOOLS & SERVICES—0.8% |
|
|
|
|
| |
Life Technologies Corp.* |
| 5,580 |
| 263,209 |
| |
|
|
|
|
|
| |
MANAGED HEALTH CARE—0.8% |
|
|
|
|
| |
WellPoint Inc.* |
| 5,915 |
| 276,585 |
| |
|
|
|
|
|
| |
METAL & GLASS CONTAINERS—0.9% |
|
|
|
|
| |
Crown Holdings Inc.* |
| 11,935 |
| 318,068 |
| |
|
|
|
|
|
| |
MOVIES & ENTERTAINMENT—1.0% |
|
|
|
|
| |
Walt Disney Co., /The |
| 12,150 |
| 332,546 |
| |
|
|
|
|
|
| |
OFFICE REITS—0.3% |
|
|
|
|
| |
Digital Realty Trust Inc. |
| 2,505 |
| 113,051 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
OIL & GAS EXPLORATION & PRODUCTION—0.3% |
|
|
|
|
| |
Nexen Inc. |
| 5,455 |
| $ | 117,119 |
|
|
|
|
|
|
| |
OTHER DIVERSIFIED FINANCIAL SERVICES—2.2% |
|
|
|
|
| |
Bank of America Corp. |
| 25,925 |
| 377,986 |
| |
JPMorgan Chase & Co. |
| 8,875 |
| 370,708 |
| |
|
|
|
| 748,694 |
| |
PACKAGED FOODS & MEATS—0.9% |
|
|
|
|
| |
General Mills Inc. |
| 4,560 |
| 300,595 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—4.2% |
|
|
|
|
| |
Abbott Laboratories |
| 7,800 |
| 394,446 |
| |
Johnson & Johnson |
| 7,120 |
| 420,435 |
| |
Merck & Co., Inc. |
| 9,975 |
| 308,527 |
| |
Pfizer Inc. |
| 20,672 |
| 352,044 |
| |
|
|
|
| 1,475,452 |
| |
RAILROADS—1.2% |
|
|
|
|
| |
Norfolk Southern Corp. |
| 8,870 |
| 413,519 |
| |
|
|
|
|
|
| |
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.6% |
|
|
|
|
| |
Brookfield Asset Management Inc. |
| 9,860 |
| 206,074 |
| |
|
|
|
|
|
| |
RESTAURANTS—1.2% |
|
|
|
|
| |
Starbucks Corp.* |
| 21,950 |
| 416,611 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—3.6% |
|
|
|
|
| |
Atheros Communications Inc. * |
| 11,590 |
| 285,346 |
| |
Broadcom Corp., Cl. A * |
| 7,585 |
| 201,837 |
| |
Cree Inc. * |
| 6,790 |
| 285,859 |
| |
Intel Corp. |
| 24,765 |
| 473,259 |
| |
|
|
|
| 1,246,301 |
| |
SOFT DRINKS—2.0% |
|
|
|
|
| |
Coca-Cola Co., /The |
| 9,390 |
| 500,581 |
| |
Hansen Natural Corp. * |
| 5,700 |
| 206,055 |
| |
|
|
|
| 706,636 |
| |
SPECIALTY CHEMICALS—1.3% |
|
|
|
|
| |
Nalco Holding Co. |
| 13,415 |
| 283,727 |
| |
Rockwood Holdings Inc. * |
| 8,825 |
| 175,441 |
| |
|
|
|
| 459,168 |
| |
SYSTEMS SOFTWARE—3.9% |
|
|
|
|
| |
Microsoft Corp. |
| 38,330 |
| 1,062,890 |
| |
Oracle Corp. |
| 16,105 |
| 339,816 |
| |
|
|
|
| 1,402,706 |
| |
TOTAL COMMON STOCKS |
|
|
| 32,135,679 |
| |
|
| PRINCIPAL |
|
|
|
CONVERTIBLE CORPORATE BONDS—0.4% |
|
|
|
|
|
CORPORATE BOND - DOMESTIC—0.4% |
|
|
|
|
|
|
|
|
|
|
|
ENVIRONMENTAL & FACILITIES SERVICES—0.4% |
|
|
|
|
|
Covanta Holding Corp., 3.25%, 6/1/14(L2)(a) |
| 110,000 |
| 123,750 |
|
|
| PRINCIPAL |
| VALUE |
| ||
SHORT-TERM INVESTMENTS—6.4% |
|
|
|
|
| ||
TIME DEPOSITS—6.4% |
|
|
|
|
| ||
Citibank London, 0.03%, 11/2/09 |
| $ | 838,037 |
| $ | 838,037 |
|
Wells Fargo Grand Cayman, 0.03%, 11/2/09 |
| 1,400,000 |
| 1,400,000 |
| ||
TOTAL TIME DEPOSITS |
|
|
| 2,238,037 |
| ||
|
|
|
|
|
| ||
Total Investments |
| 98.6 | % | 34,497,466 |
| ||
Other Assets in Excess of Liabilities |
| 1.4 |
| 490,891 |
| ||
|
|
|
|
|
|
| |
NET ASSETS |
| 100.0 | % | $ | 34,988,357 |
| |
‡ | Securities classified as Level 1 for ASC 820 disclosure purposes based on valuation inputs unless otherwise noted. |
|
|
* | Non-income producing security. |
# | American Depository Receipts. |
(a) | Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. These securities are deemed to be liquid and represent 0.4%, of the net assets of the Fund. |
(b) | At October 31, 2009, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $33,406,406 amounted to $1,091,060 which consisted of aggregate gross unrealized appreciation of $3,472,206 and aggregate gross unrealized depreciation of $2,381,146. |
(L2) | Security classified as Level 2 for ASC 820 disclosure purposes based on valuation inputs. |
Industry classifications are unaudited.
See Notes to Financial Statements.
THE ALGER FUNDS II | ALGER ANALYST FUND
Schedule of Investments‡ October 31, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—88.1% |
|
|
|
|
| |
ADVERTISING—0.3% |
|
|
|
|
| |
Lamar Advertising Co., Cl. A* |
| 221 |
| $ | 5,370 |
|
|
|
|
|
|
| |
AEROSPACE & DEFENSE—1.1% |
|
|
|
|
| |
BE Aerospace Inc. * |
| 915 |
| 16,223 |
| |
L-3 Communications Holdings Inc. |
| 89 |
| 6,434 |
| |
|
|
|
| 22,657 |
| |
AIR FREIGHT & LOGISTICS—0.3% |
|
|
|
|
| |
United Parcel Service Inc., Cl. B |
| 109 |
| 5,851 |
| |
|
|
|
|
|
| |
APPAREL RETAIL—2.1% |
|
|
|
|
| |
Abercrombie & Fitch Co., Cl. A |
| 337 |
| 11,061 |
| |
Chico’s FAS Inc. * |
| 804 |
| 9,608 |
| |
Coldwater Creek Inc. * |
| 900 |
| 5,175 |
| |
Gap Inc., /The |
| 44 |
| 939 |
| |
J Crew Group Inc. * |
| 251 |
| 10,236 |
| |
Urban Outfitters Inc. * |
| 230 |
| 7,217 |
| |
|
|
|
| 44,236 |
| |
APPLICATION SOFTWARE—4.1% |
|
|
|
|
| |
Adobe Systems Inc. * |
| 204 |
| 6,720 |
| |
Ansys Inc. * |
| 180 |
| 7,304 |
| |
Intuit Inc. * |
| 241 |
| 7,006 |
| |
Nice Systems Ltd. #* |
| 318 |
| 9,848 |
| |
Pegasystems Inc. |
| 517 |
| 14,823 |
| |
Salesforce.com Inc. * |
| 142 |
| 8,059 |
| |
SolarWinds Inc. * |
| 659 |
| 11,730 |
| |
Synchronoss Technologies Inc. * |
| 461 |
| 5,260 |
| |
Taleo Corp., Cl. A * |
| 460 |
| 10,000 |
| |
|
|
|
| 80,750 |
| |
ASSET MANAGEMENT & CUSTODY BANKS—0.5% |
|
|
|
|
| |
Affiliated Managers Group Inc.* |
| 160 |
| 10,158 |
| |
|
|
|
|
|
| |
BIOTECHNOLOGY—6.3% |
|
|
|
|
| |
Alexion Pharmaceuticals Inc. * |
| 262 |
| 11,635 |
| |
Celgene Corp. * |
| 555 |
| 28,333 |
| |
Cephalon Inc. * |
| 368 |
| 20,085 |
| |
Human Genome Sciences Inc. * |
| 2,954 |
| 55,210 |
| |
Seattle Genetics Inc. * |
| 1,094 |
| 9,934 |
| |
|
|
|
| 125,197 |
| |
BROADCASTING & CABLE TV—0.4% |
|
|
|
|
| |
CBS Corp., Cl. B |
| 627 |
| 7,380 |
| |
|
|
|
|
|
| |
CASINOS & GAMING—1.6% |
|
|
|
|
| |
Las Vegas Sands Corp. * |
| 939 |
| 14,170 |
| |
Penn National Gaming Inc. * |
| 224 |
| 5,629 |
| |
WMS Industries Inc. * |
| 286 |
| 11,434 |
| |
|
|
|
| 31,233 |
| |
COAL & CONSUMABLE FUELS—0.2% |
|
|
|
|
| |
Patriot Coal Corp.* |
| 321 |
| 3,627 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—2.8% |
|
|
|
|
| |
Alcatel-Lucent #* |
| 2,587 |
| 9,546 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—(CONT.) |
|
|
|
|
| |
F5 Networks Inc. * |
| 89 |
| $ | 3,995 |
|
Polycom Inc. * |
| 423 |
| 9,082 |
| |
Qualcomm Inc. |
| 220 |
| 9,110 |
| |
Research In Motion Ltd. * |
| 133 |
| 7,811 |
| |
Starent Networks Corp. * |
| 255 |
| 8,604 |
| |
|
|
|
| 56,534 |
| |
COMPUTER & ELECTRONICS RETAIL—1.0% |
|
|
|
|
| |
Best Buy Co., Inc. |
| 314 |
| 11,989 |
| |
GameStop Corp., Cl. A * |
| 312 |
| 7,578 |
| |
|
|
|
| 19,567 |
| |
COMPUTER HARDWARE—3.0% |
|
|
|
|
| |
Apple Inc. * |
| 136 |
| 25,636 |
| |
Hewlett-Packard Co. |
| 706 |
| 33,507 |
| |
|
|
|
| 59,143 |
| |
COMPUTER STORAGE & PERIPHERALS—0.5% |
|
|
|
|
| |
EMC Corp.* |
| 663 |
| 10,920 |
| |
|
|
|
|
|
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—1.3% |
|
|
|
|
| |
Bucyrus International Inc. |
| 571 |
| 25,364 |
| |
|
|
|
|
|
| |
DATA PROCESSING & OUTSOURCED SERVICES—1.2% |
|
|
|
|
| |
Affiliated Computer Services Inc., Cl. A * |
| 37 |
| 1,927 |
| |
Mastercard Inc. |
| 58 |
| 12,703 |
| |
VeriFone Holdings Inc. * |
| 755 |
| 10,042 |
| |
|
|
|
| 24,672 |
| |
DEPARTMENT STORES—0.7% |
|
|
|
|
| |
Kohl’s Corp.* |
| 231 |
| 13,218 |
| |
|
|
|
|
|
| |
DISTILLERS & VINTNERS—0.6% |
|
|
|
|
| |
Central European Distribution Corp.* |
| 366 |
| 11,386 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.1% |
|
|
|
|
| |
Wells Fargo & Co. |
| 102 |
| 2,807 |
| |
|
|
|
|
|
| |
DIVERSIFIED REITS—0.3% |
|
|
|
|
| |
Vornado Realty Trust |
| 96 |
| 5,718 |
| |
|
|
|
|
|
| |
DRUG RETAIL—0.3% |
|
|
|
|
| |
CVS Caremark Corp. |
| 89 |
| 3,142 |
| |
Walgreen Co. |
| 88 |
| 3,329 |
| |
|
|
|
| 6,471 |
| |
EDUCATION SERVICES—0.7% |
|
|
|
|
| |
Corinthian Colleges Inc. * |
| 501 |
| 7,946 |
| |
ITT Educational Services Inc. * |
| 60 |
| 5,421 |
| |
|
|
|
| 13,367 |
| |
ELECTRONIC COMPONENTS—0.2% |
|
|
|
|
| |
Dolby Laboratories Inc., Cl. A* |
| 102 |
| 4,278 |
| |
|
|
|
|
|
| |
ENVIRONMENTAL & FACILITIES SERVICES—0.3% |
|
|
|
|
| |
Waste Connections Inc.* |
| 168 |
| 5,280 |
| |
|
|
|
|
|
| |
FOOD RETAIL—0.9% |
|
|
|
|
| |
Kroger Co., /The |
| 221 |
| 5,112 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
FOOD RETAIL—(CONT.) |
|
|
|
|
| |
Whole Foods Market Inc. * |
| 411 |
| $ | 13,176 |
|
|
|
|
| 18,288 |
| |
FOOTWEAR—0.6% |
|
|
|
|
| |
NIKE Inc., Cl. B |
| 185 |
| 11,503 |
| |
|
|
|
|
|
| |
GENERAL MERCHANDISE STORES—0.9% |
|
|
|
|
| |
Target Corp. |
| 377 |
| 18,258 |
| |
|
|
|
|
|
| |
GOLD—1.0% |
|
|
|
|
| |
Goldcorp Inc. |
| 187 |
| 6,876 |
| |
Yamana Gold Inc. |
| 1,325 |
| 14,110 |
| |
|
|
|
| 20,986 |
| |
HEALTH CARE DISTRIBUTORS—0.3% |
|
|
|
|
| |
Owens & Minor Inc. |
| 72 |
| 2,944 |
| |
PharMerica Corp. * |
| 153 |
| 2,361 |
| |
|
|
|
| 5,305 |
| |
HEALTH CARE EQUIPMENT—1.4% |
|
|
|
|
| |
Boston Scientific Corp. * |
| 1,327 |
| 10,776 |
| |
Insulet Corp. * |
| 632 |
| 7,015 |
| |
Masimo Corp. * |
| 72 |
| 1,913 |
| |
NuVasive Inc. * |
| 53 |
| 1,923 |
| |
Select Medical Holdings Corp. * |
| 354 |
| 3,434 |
| |
Thoratec Corp. * |
| 146 |
| 3,834 |
| |
|
|
|
| 28,895 |
| |
HEALTH CARE FACILITIES—1.1% |
|
|
|
|
| |
Community Health Systems Inc. * |
| 225 |
| 7,038 |
| |
Universal Health Services Inc., Cl. B |
| 275 |
| 15,304 |
| |
|
|
|
| 22,342 |
| |
HEALTH CARE SERVICES—1.0% |
|
|
|
|
| |
Express Scripts Inc. * |
| 88 |
| 7,033 |
| |
Gentiva Health Services Inc. * |
| 273 |
| 6,552 |
| |
Medco Health Solutions Inc. * |
| 125 |
| 7,015 |
| |
|
|
|
| 20,600 |
| |
HEALTH CARE SUPPLIES—0.8% |
|
|
|
|
| |
Inverness Medical Innovations Inc.* |
| 427 |
| 16,230 |
| |
|
|
|
|
|
| |
HOME ENTERTAINMENT SOFTWARE—1.4% |
|
|
|
|
| |
Activision Blizzard Inc. * |
| 907 |
| 9,823 |
| |
Nintendo Co., Ltd. # |
| 373 |
| 11,715 |
| |
Take-Two Interactive Software Inc. * |
| 612 |
| 6,714 |
| |
|
|
|
| 28,252 |
| |
HOME FURNISHING RETAIL—0.5% |
|
|
|
|
| |
Williams-Sonoma, Inc. |
| 531 |
| 9,972 |
| |
|
|
|
|
|
| |
HOME IMPROVEMENT RETAIL—0.5% |
|
|
|
|
| |
Lowe’s Companies, Inc. |
| 525 |
| 10,274 |
| |
|
|
|
|
|
| |
HOMEBUILDING—0.6% |
|
|
|
|
| |
KB Home |
| 412 |
| 5,842 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
HOMEBUILDING—(CONT.) |
|
|
|
|
| |
Toll Brothers Inc. * |
| 367 |
| $ | 6,357 |
|
|
|
|
| 12,199 |
| |
HOTELS RESORTS & CRUISE LINES—1.9% |
|
|
|
|
| |
Carnival Corp. |
| 310 |
| 9,027 |
| |
Choice Hotels International Inc. |
| 239 |
| 7,127 |
| |
Gaylord Entertainment Co. * |
| 396 |
| 5,952 |
| |
Marriott International Inc., Cl. A |
| 289 |
| 7,242 |
| |
Royal Caribbean Cruises Ltd. * |
| 452 |
| 9,144 |
| |
|
|
|
| 38,492 |
| |
HOUSEHOLD PRODUCTS—0.6% |
|
|
|
|
| |
Church & Dwight Co., Inc. |
| 96 |
| 5,460 |
| |
Energizer Holdings Inc. * |
| 117 |
| 7,122 |
| |
|
|
|
| 12,582 |
| |
HOUSEWARES & SPECIALTIES—0.2% |
|
|
|
|
| |
Tupperware Brands Corp. |
| 87 |
| 3,917 |
| |
|
|
|
|
|
| |
HYPERMARKETS & SUPER CENTERS—0.3% |
|
|
|
|
| |
Wal-Mart Stores Inc. |
| 116 |
| 5,763 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.8% |
|
|
|
|
| |
Clarcor Inc. |
| 292 |
| 8,594 |
| |
SPX Corp. |
| 154 |
| 8,128 |
| |
|
|
|
| 16,722 |
| |
INTEGRATED OIL & GAS—0.9% |
|
|
|
|
| |
Chevron Corp. |
| 225 |
| 17,222 |
| |
|
|
|
|
|
| |
INTERNET RETAIL—1.4% |
|
|
|
|
| |
Amazon.com Inc. * |
| 16 |
| 1,901 |
| |
Expedia Inc. * |
| 1,043 |
| 23,645 |
| |
Shutterfly Inc. * |
| 212 |
| 2,989 |
| |
|
|
|
| 28,535 |
| |
INTERNET SOFTWARE & SERVICES—3.4% |
|
|
|
|
| |
eBay Inc. * |
| 448 |
| 9,977 |
| |
Google Inc., Cl. A * |
| 6 |
| 3,217 |
| |
GSI Commerce Inc. * |
| 1,129 |
| 21,416 |
| |
IAC/InterActiveCorp. * |
| 253 |
| 4,792 |
| |
Netease.com #* |
| 203 |
| 7,840 |
| |
VistaPrint Ltd. * |
| 282 |
| 14,396 |
| |
Yahoo! Inc. * |
| 414 |
| 6,583 |
| |
|
|
|
| 68,221 |
| |
INVESTMENT BANKING & BROKERAGE—0.6% |
|
|
|
|
| |
Investment Technology Group Inc. * |
| 212 |
| 4,573 |
| |
Morgan Stanley |
| 218 |
| 7,002 |
| |
|
|
|
| 11,575 |
| |
IT CONSULTING & OTHER SERVICES—1.4% |
|
|
|
|
| |
Cognizant Technology Solutions Corp., Cl. A* |
| 731 |
| 28,253 |
| |
|
|
|
|
|
| |
LEISURE PRODUCTS—0.2% |
|
|
|
|
| |
Fossil Inc.* |
| 176 |
| 4,704 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
LIFE & HEALTH INSURANCE—0.7% |
|
|
|
|
| |
Lincoln National Corp. |
| 290 |
| $ | 6,911 |
|
Prudential Financial Inc. |
| 138 |
| 6,242 |
| |
|
|
|
| 13,153 |
| |
LIFE SCIENCES TOOLS & SERVICES—0.3% |
|
|
|
|
| |
ICON PLC #* |
| 100 |
| 2,470 |
| |
Parexel International Corp. * |
| 300 |
| 3,756 |
| |
|
|
|
| 6,226 |
| |
MANAGED HEALTH CARE—0.3% |
|
|
|
|
| |
Aetna Inc. |
| 32 |
| 833 |
| |
Amerigroup Corp. * |
| 200 |
| 4,410 |
| |
WellPoint Inc. * |
| 12 |
| 561 |
| |
|
|
|
| 5,804 |
| |
METAL & GLASS CONTAINERS—0.7% |
|
|
|
|
| |
Owens-Illinois Inc.* |
| 420 |
| 13,390 |
| |
|
|
|
|
|
| |
MOVIES & ENTERTAINMENT—1.1% |
|
|
|
|
| |
Regal Entertainment Group, Cl. A |
| 704 |
| 8,878 |
| |
Viacom Inc., Cl. B * |
| 221 |
| 6,097 |
| |
Walt Disney Co., /The |
| 277 |
| 7,581 |
| |
|
|
|
| 22,556 |
| |
MULTI-LINE INSURANCE—0.3% |
|
|
|
|
| |
Genworth Financial Inc., Cl. A* |
| 636 |
| 6,754 |
| |
|
|
|
|
|
| |
OIL & GAS DRILLING—0.5% |
|
|
|
|
| |
Transocean Ltd.* |
| 121 |
| 10,153 |
| |
|
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—0.2% |
|
|
|
|
| |
Dril-Quip Inc. * |
| 8 |
| 389 |
| |
Schlumberger Ltd. |
| 50 |
| 3,110 |
| |
Weatherford International Ltd. * |
| 49 |
| 859 |
| |
|
|
|
| 4,358 |
| |
OIL & GAS EXPLORATION & PRODUCTION—1.8% |
|
|
|
|
| |
Chesapeake Energy Corp. |
| 282 |
| 6,909 |
| |
Concho Resources Inc. * |
| 103 |
| 3,925 |
| |
Mariner Energy Inc. * |
| 97 |
| 1,236 |
| |
Nexen Inc. |
| 626 |
| 13,439 |
| |
Penn Virginia Corp. |
| 82 |
| 1,661 |
| |
Plains Exploration & Production Co. * |
| 227 |
| 6,016 |
| |
Quicksilver Resources Inc. * |
| 268 |
| 3,270 |
| |
|
|
|
| 36,456 |
| |
OIL & GAS REFINING & MARKETING—0.1% |
|
|
|
|
| |
Sunoco Inc. |
| 80 |
| 2,464 |
| |
|
|
|
|
|
| |
OTHER DIVERSIFIED FINANCIAL SERVICES—0.1% |
|
|
|
|
| |
JPMorgan Chase & Co. |
| 69 |
| 2,882 |
| |
|
|
|
|
|
| |
PACKAGED FOODS & MEATS—0.8% |
|
|
|
|
| |
Flowers Foods Inc. |
| 224 |
| 5,233 |
| |
General Mills Inc. |
| 100 |
| 6,592 |
| |
Ralcorp Holdings Inc. * |
| 87 |
| 4,672 |
| |
|
|
|
| 16,497 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
PERSONAL PRODUCTS—0.4% |
|
|
|
|
| |
Avon Products Inc. |
| 220 |
| $ | 7,051 |
|
|
|
|
|
|
| |
PHARMACEUTICALS—13.0% |
|
|
|
|
| |
Abbott Laboratories |
| 38 |
| 1,922 |
| |
Allergan Inc. |
| 263 |
| 14,794 |
| |
AstraZeneca PLC #* |
| 333 |
| 14,955 |
| |
Auxilium Pharmaceuticals Inc. * |
| 1,221 |
| 38,413 |
| |
Medicis Pharmaceutical Corp., Cl. A |
| 2,301 |
| 48,712 |
| |
Mylan Inc. * |
| 1,085 |
| 17,620 |
| |
Optimer Pharmaceuticals Inc. * |
| 4,371 |
| 50,529 |
| |
Roche Holding AG (L2) |
| 225 |
| 36,095 |
| |
Shire PLC # |
| 713 |
| 38,003 |
| |
|
|
|
| 261,043 |
| |
PROPERTY & CASUALTY INSURANCE—0.6% |
|
|
|
|
| |
Travelers Cos., Inc., /The |
| 236 |
| 11,751 |
| |
|
|
|
|
|
| |
PUBLISHING—0.3% |
|
|
|
|
| |
McGraw-Hill Cos., Inc., /The |
| 233 |
| 6,706 |
| |
|
|
|
|
|
| |
RAILROADS—0.3% |
|
|
|
|
| |
Burlington Northern Santa Fe Corp. |
| 74 |
| 5,574 |
| |
|
|
|
|
|
| |
REGIONAL BANKS—0.2% |
|
|
|
|
| |
Boston Private Financial Holdings Inc. |
| 128 |
| 762 |
| |
PNC Financial Services Group Inc. |
| 54 |
| 2,642 |
| |
|
|
|
| 3,404 |
| |
REINSURANCE—0.0% |
|
|
|
|
| |
Platinum Underwriters Holdings Ltd. |
| 17 |
| 608 |
| |
|
|
|
|
|
| |
RESEARCH & CONSULTING SERVICES—0.2% |
|
|
|
|
| |
FTI Consulting Inc.* |
| 119 |
| 4,856 |
| |
|
|
|
|
|
| |
RESTAURANTS—0.4% |
|
|
|
|
| |
PF Chang’s China Bistro Inc.* |
| 255 |
| 7,443 |
| |
|
|
|
|
|
| |
RETAIL REITS—0.6% |
|
|
|
|
| |
Macerich Co., /The |
| 184 |
| 5,483 |
| |
Simon Property Group Inc. |
| 87 |
| 5,907 |
| |
|
|
|
| 11,390 |
| |
SECURITY & ALARM SERVICES—0.7% |
|
|
|
|
| |
Geo Group Inc., /The* |
| 681 |
| 14,403 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—5.3% |
|
|
|
|
| |
Atheros Communications Inc. * |
| 394 |
| 9,700 |
| |
Avago Technologies Ltd. * |
| 170 |
| 2,550 |
| |
Broadcom Corp., Cl. A * |
| 389 |
| 10,351 |
| |
Intel Corp. |
| 817 |
| 15,613 |
| |
Marvell Technology Group Ltd. * |
| 1,132 |
| 15,531 |
| |
Monolithic Power Systems Inc. * |
| 329 |
| 6,577 |
| |
Netlogic Microsystems Inc. * |
| 306 |
| 11,631 |
| |
ON Semiconductor Corp. * |
| 1,324 |
| 8,858 |
| |
Skyworks Solutions Inc. * |
| 1,360 |
| 14,185 |
| |
Taiwan Semiconductor Manufacturing Co., Ltd. # |
| 587 |
| 5,600 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
SEMICONDUCTORS—(CONT.) |
|
|
|
|
| |
Texas Instruments Inc. |
| 183 |
| $ | 4,291 |
|
|
|
|
| 104,887 |
| |
SOFT DRINKS—1.1% |
|
|
|
|
| |
Coca-Cola Co., /The |
| 139 |
| 7,410 |
| |
Hansen Natural Corp. * |
| 170 |
| 6,146 |
| |
PepsiCo Inc. |
| 128 |
| 7,750 |
| |
|
|
|
| 21,306 |
| |
SPECIALIZED FINANCE—0.3% |
|
|
|
|
| |
NYSE Euronext |
| 217 |
| 5,609 |
| |
|
|
|
|
|
| |
SPECIALIZED REITS—0.2% |
|
|
|
|
| |
Host Hotels & Resorts Inc. |
| 486 |
| 4,913 |
| |
|
|
|
|
|
| |
STEEL—0.7% |
|
|
|
|
| |
Cliffs Natural Resources Inc. |
| 401 |
| 14,264 |
| |
|
|
|
|
|
| |
SYSTEMS SOFTWARE—1.2% |
|
|
|
|
| |
Microsoft Corp. |
| 254 |
| 7,043 |
| |
Oracle Corp. |
| 248 |
| 5,233 |
| |
Red Hat Inc. * |
| 464 |
| 11,976 |
| |
|
|
|
| 24,252 |
| |
THRIFTS & MORTGAGE FINANCE—0.4% |
|
|
|
|
| |
Brookline Bancorp Inc. |
| 528 |
| 5,170 |
| |
TFS Financial Corp. |
| 190 |
| 2,215 |
| |
|
|
|
| 7,385 |
| |
TOBACCO—0.7% |
|
|
|
|
| |
Philip Morris International Inc. |
| 309 |
| 14,634 |
| |
|
|
|
|
|
| |
TRUCKING—0.6% |
|
|
|
|
| |
Hertz Global Holdings Inc.* |
| 1,328 |
| 12,364 |
| |
|
|
|
|
|
| |
WIRELESS TELECOMMUNICATION SERVICES—1.4% |
|
|
|
|
| |
American Tower Corp., Cl. A * |
| 169 |
| 6,223 |
| |
SBA Communications Corp. * |
| 634 |
| 17,884 |
| |
Syniverse Holdings Inc. * |
| 175 |
| 2,998 |
| |
|
|
|
| 27,105 |
| |
TOTAL COMMON STOCKS |
|
|
| 1,765,915 |
| |
|
| PRINCIPAL |
|
|
|
|
| AMOUNT |
|
|
|
SHORT-TERM INVESTMENTS—11.4% |
|
|
|
|
|
TIME DEPOSITS—11.4% |
|
|
|
|
|
Bank of American NA, 0.03%, 11/2/09 |
| 75,000 |
| 75,000 |
|
Brown Bothers Harriman Cayman, 0.03%, 11/2/09 |
| 2,664 |
| 2,664 |
|
Citibank London, 0.03%, 11/2/09 |
| 75,000 |
| 75,000 |
|
|
| PRINCIPAL |
|
|
| ||
|
| AMOUNT |
| VALUE |
| ||
SHORT-TERM INVESTMENTS—(CONT.) |
|
|
|
|
| ||
TIME DEPOSITS—(CONT.) |
|
|
|
|
| ||
Wells Fargo Grand Cayman, 0.03%, 11/2/09 |
| $ | 75,000 |
| $ | 75,000 |
|
|
|
|
|
|
| ||
TOTAL TIME DEPOSITS |
|
|
| 227,664 |
| ||
|
|
|
|
|
| ||
Total Investments |
| 99.5 | % | 1,993,579 |
| ||
Other Assets in Excess of Liabilities |
| 0.5 |
| 9,461 |
| ||
|
|
|
|
|
| ||
NET ASSETS |
| 100.0 | % | $ | 2,003,040 |
| |
‡ | Securities classified as Level 1 for ASC 820 disclosure purposes based on valuation inputs unless otherwise noted. |
|
|
* | Non-income producing security. |
# | American Depository Receipts. |
(a) | At October 31, 2009, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,839,964 amounted to $153,615 which consisted of aggregate gross unrealized appreciation of $251,724 and aggregate gross unrealized depreciation of $98,109. |
(L2) | Security classified as Level 2 for ASC 820 disclosure purposes based on valuation inputs. |
Industry classifications are unaudited.
See Notes to Financial Statements.
(This page has been intentionally left blank)
THE ALGER FUNDS II | ALGER INTERNATIONAL OPPORTUNITIES FUND
Schedule of Investments‡ October 31, 2009
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—93.5% |
|
|
|
|
| |
AUSTRALIA—4.3% |
|
|
|
|
| |
BIOTECHNOLOGY—0.9% |
|
|
|
|
| |
CSL Ltd.(L2) |
| 796 |
| $ | 22,436 |
|
|
|
|
|
|
| |
COAL & CONSUMABLE FUELS—0.4% |
|
|
|
|
| |
Linc Energy Ltd.*,(L2) |
| 7,604 |
| 10,590 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.2% |
|
|
|
|
| |
Westpac Banking Corp.(L2) |
| 209 |
| 4,904 |
| |
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—1.0% |
|
|
|
|
| |
Rio Tinto Ltd.(L2) |
| 431 |
| 23,982 |
| |
|
|
|
|
|
| |
FOOD RETAIL—0.4% |
|
|
|
|
| |
Woolworths Ltd.(L2) |
| 404 |
| 10,380 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—1.4% |
|
|
|
|
| |
Origin Energy Ltd.*,(L2) |
| 2,333 |
| 33,581 |
| |
|
|
|
|
|
| |
TOTAL AUSTRALIA |
|
|
| 105,873 |
| |
|
|
|
|
|
| |
BELGIUM—0.1% |
|
|
|
|
| |
FOOD RETAIL—0.1% |
|
|
|
|
| |
Colruyt SA*,(L2) |
| 14 |
| 3,340 |
| |
|
|
|
|
|
| |
BERMUDA—2.2% |
|
|
|
|
| |
INVESTMENT BANKING & BROKERAGE—0.8% |
|
|
|
|
| |
Lazard Ltd., Cl. A |
| 532 |
| 20,083 |
| |
|
|
|
|
|
| |
REINSURANCE—1.4% |
|
|
|
|
| |
Platinum Underwriters Holdings Ltd. |
| 948 |
| 33,910 |
| |
|
|
|
|
|
| |
TOTAL BERMUDA |
|
|
| 53,993 |
| |
|
|
|
|
|
| |
BRAZIL—6.5% |
|
|
|
|
| |
DATA PROCESSING & OUTSOURCED SERVICES—0.5% |
|
|
|
|
| |
Companhia Brasileira de Meios de Pagamento |
| 1,240 |
| 11,518 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.2% |
|
|
|
|
| |
Banco Santander Brasil SA#* |
| 378 |
| 4,483 |
| |
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—2.5% |
|
|
|
|
| |
Vale S.A.#* |
| 2,524 |
| 64,336 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—2.9% |
|
|
|
|
| |
Petroleo Brasileiro SA# |
| 1,558 |
| 72,010 |
| |
|
|
|
|
|
| |
OTHER DIVERSIFIED FINANCIAL SERVICES—0.4% |
|
|
|
|
| |
BM&F Bovespa SA |
| 1,626 |
| 10,622 |
| |
|
|
|
|
|
| |
TOTAL BRAZIL |
|
|
| 162,969 |
| |
|
|
|
|
|
| |
CANADA—1.4% |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—1.1% |
|
|
|
|
| |
Research In Motion Ltd.* |
| 477 |
| 28,014 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
CANADA—(CONT.) |
|
|
|
|
| |
PUBLISHING—0.3% |
|
|
|
|
| |
Thomson Reuters Corp. |
| 201 |
| $ | 6,362 |
|
|
|
|
|
|
| |
TOTAL CANADA |
|
|
| 34,376 |
| |
|
|
|
|
|
| |
CHINA—6.2% |
|
|
|
|
| |
ADVERTISING—0.6% |
|
|
|
|
| |
Focus Media Holding Ltd.#* |
| 1,141 |
| 13,738 |
| |
|
|
|
|
|
| |
BREWERS—0.5% |
|
|
|
|
| |
Tsingtao Brewery Co., Ltd.(L2) |
| 3,244 |
| 13,179 |
| |
|
|
|
|
|
| |
COAL & CONSUMABLE FUELS—0.4% |
|
|
|
|
| |
China Shenhua Energy Co.(L2) |
| 2,112 |
| 9,461 |
| |
|
|
|
|
|
| |
COMPUTER & ELECTRONICS RETAIL—0.4% |
|
|
|
|
| |
GOME Electrical Appliances Holdings Ltd.*,(L2) |
| 34,060 |
| 9,977 |
| |
|
|
|
|
|
| |
CONSTRUCTION MATERIALS—0.2% |
|
|
|
|
| |
China National Building Material Co., Ltd.(L2) |
| 1,770 |
| 3,809 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.7% |
|
|
|
|
| |
China Construction Bank Corp. (L2) |
| 12,524 |
| 10,797 |
| |
Industrial & Commercial Bank of China (L2) |
| 8,424 |
| 6,702 |
| |
|
|
|
| 17,499 |
| |
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—0.2% |
|
|
|
|
| |
China Metal Recycling Holdings Ltd.* |
| 2,565 |
| 3,740 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.5% |
|
|
|
|
| |
Duoyuan Global Water Inc.#* |
| 390 |
| 12,784 |
| |
|
|
|
|
|
| |
INTERNET SOFTWARE & SERVICES—1.7% |
|
|
|
|
| |
Netease.com#* |
| 1,101 |
| 42,521 |
| |
|
|
|
|
|
| |
LIFE & HEALTH INSURANCE—0.5% |
|
|
|
|
| |
China Life Insurance Co., Ltd.(L2) |
| 2,469 |
| 11,336 |
| |
|
|
|
|
|
| |
PACKAGED FOODS & MEATS—0.3% |
|
|
|
|
| |
China Yurun Food Group Ltd.(L2) |
| 3,473 |
| 7,120 |
| |
|
|
|
|
|
| |
PAPER PRODUCTS—0.2% |
|
|
|
|
| |
Nine Dragons Paper Holdings Ltd.(L2) |
| 3,332 |
| 4,748 |
| |
|
|
|
|
|
| |
TOTAL CHINA |
|
|
| 149,912 |
| |
|
|
|
|
|
| |
DENMARK—1.6% |
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—1.5% |
|
|
|
|
| |
Vestas Wind Systems A/S*,(L2) |
| 535 |
| 37,621 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—0.1% |
|
|
|
|
| |
Novo Nordisk A/S(L2) |
| 57 |
| 3,550 |
| |
|
|
|
|
|
| |
TOTAL DENMARK |
|
|
| 41,171 |
| |
|
|
|
|
|
| |
FRANCE—4.5% |
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—0.4% |
|
|
|
|
| |
Alcatel-Lucent#*,(L2) |
| 2,917 |
| 10,952 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
FRANCE—(CONT.) |
| �� |
|
|
| |
HEALTH CARE SUPPLIES—0.2% |
|
|
|
|
| |
Essilor International SA(L2) |
| 72 |
| $ | 4,042 |
|
|
|
|
|
|
| |
INTEGRATED OIL & GAS—0.9% |
|
|
|
|
| |
Total SA(L2) |
| 385 |
| 23,098 |
| |
|
|
|
|
|
| |
LEISURE PRODUCTS—0.7% |
|
|
|
|
| |
Hermes International(L2) |
| 127 |
| 17,707 |
| |
|
|
|
|
|
| |
MULTI-UTILITIES—1.3% |
|
|
|
|
| |
Veolia Environnement(L2) |
| 962 |
| 31,509 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—1.0% |
|
|
|
|
| |
Ipsen SA(L2) |
| 491 |
| 25,082 |
| |
|
|
|
|
|
| |
TOTAL FRANCE |
|
|
| 112,390 |
| |
|
|
|
|
|
| |
GERMANY—5.5% |
|
|
|
|
| |
AIR FREIGHT & LOGISTICS—0.4% |
|
|
|
|
| |
Deutsche Post AG(L2) |
| 558 |
| 9,464 |
| |
|
|
|
|
|
| |
AUTOMOBILE MANUFACTURERS—1.6% |
|
|
|
|
| |
Porsche Automobil Holding SE*,(L2) |
| 529 |
| 40,569 |
| |
|
|
|
|
|
| |
FERTILIZERS & AGRICULTURAL CHEMICALS—0.7% |
|
|
|
|
| |
K & S AG*,(L2) |
| 310 |
| 16,966 |
| |
|
|
|
|
|
| |
INDUSTRIAL CONGLOMERATES—0.3% |
|
|
|
|
| |
Siemens AG(L2) |
| 75 |
| 6,795 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—2.5% |
|
|
|
|
| |
Bayer AG (L2) |
| 491 |
| 34,154 |
| |
Merck KGaA (L2) |
| 285 |
| 26,862 |
| |
|
|
|
| 61,016 |
| |
TOTAL GERMANY |
|
|
| 134,810 |
| |
|
|
|
|
|
| |
GREECE—0.2% |
|
|
|
|
| |
CASINOS & GAMING—0.2% |
|
|
|
|
| |
OPAP SA*,(L2) |
| 213 |
| 5,436 |
| |
|
|
|
|
|
| |
HONG KONG—3.9% |
|
|
|
|
| |
ELECTRIC UTILITIES—0.1% |
|
|
|
|
| |
Hongkong Electric Holdings Ltd.(L2) |
| 601 |
| 3,206 |
| |
|
|
|
|
|
| |
ELECTRONIC COMPONENTS—0.3% |
|
|
|
|
| |
AAC Acoustic Technologies Holdings Inc.(L2) |
| 5,440 |
| 6,824 |
| |
|
|
|
|
|
| |
MARINE PORTS & SERVICES—0.2% |
|
|
|
|
| |
China Merchants Holdings International Co., Ltd.(L2) |
| 1,442 |
| 4,608 |
| |
|
|
|
|
|
| |
RAILROADS—0.2% |
|
|
|
|
| |
MTR Corp.(L2) |
| 1,706 |
| 6,064 |
| |
|
|
|
|
|
| |
REAL ESTATE MANAGEMENT & DEVELOPMENT—1.7% |
|
|
|
|
| |
Cheung Kong Holdings Ltd. (L2) |
| 610 |
| 7,780 |
| |
China Resources Enterprise Ltd (L2) |
| 4,785 |
| 16,056 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
HONG KONG—(CONT.) |
|
|
|
|
| |
China Resources Land Ltd. (L2) |
| 2,875 |
| $ | 6,933 |
|
Hang Lung Properties Ltd. (L2) |
| 2,924 |
| 11,032 |
| |
|
|
|
| 41,801 |
| |
SPECIALIZED FINANCE—1.2% |
|
|
|
|
| |
Hong Kong Exchanges and Clearing Ltd.(L2) |
| 1,756 |
| 30,866 |
| |
|
|
|
|
|
| |
WIRELESS TELECOMMUNICATION SERVICES—0.2% |
|
|
|
|
| |
China Mobile Ltd.(L2) |
| 519 |
| 4,865 |
| |
|
|
|
|
|
| |
TOTAL HONG KONG |
|
|
| 98,234 |
| |
|
|
|
|
|
| |
INDIA—3.4% |
|
|
|
|
| |
DIVERSIFIED BANKS—0.5% |
|
|
|
|
| |
ICICI Bank Ltd.# |
| 358 |
| 11,259 |
| |
|
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—1.5% |
|
|
|
|
| |
ABB Ltd. *,(L2) |
| 928 |
| 14,952 |
| |
Bharat Heavy Electricals Ltd. *,(L2) |
| 466 |
| 21,776 |
| |
|
|
|
| 36,728 |
| |
IT CONSULTING & OTHER SERVICES—1.4% |
|
|
|
|
| |
Infosys Technologies Ltd.# |
| 764 |
| 35,143 |
| |
|
|
|
|
|
| |
TOTAL INDIA |
|
|
| 83,130 |
| |
|
|
|
|
|
| |
IRELAND—0.6% |
|
|
|
|
| |
LIFE SCIENCES TOOLS & SERVICES—0.6% |
|
|
|
|
| |
ICON PLC#* |
| 590 |
| 14,573 |
| |
|
|
|
|
|
| |
ISRAEL—7.3% |
|
|
|
|
| |
APPLICATION SOFTWARE—1.7% |
|
|
|
|
| |
Nice Systems Ltd.#* |
| 1,366 |
| 42,305 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—1.7% |
|
|
|
|
| |
Ceragon Networks Ltd.* |
| 4,449 |
| 39,685 |
| |
|
|
|
|
|
| |
IT CONSULTING & OTHER SERVICES—1.2% |
|
|
|
|
| |
Ness Technologies Inc.* |
| 4,371 |
| 28,805 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—1.0% |
|
|
|
|
| |
Teva Pharmaceutical Industries Ltd.# |
| 488 |
| 24,634 |
| |
|
|
|
|
|
| |
SEMICONDUCTORS—1.7% |
|
|
|
|
| |
Mellanox Technologies Ltd.* |
| 2,347 |
| 40,956 |
| |
|
|
|
|
|
| |
TOTAL ISRAEL |
|
|
| 176,385 |
| |
|
|
|
|
|
| |
ITALY—0.4% |
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—0.4% |
|
|
|
|
| |
Tenaris SA(L2) |
| 609 |
| 10,866 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
JAPAN—13.8% |
|
|
|
|
| |
APPAREL RETAILB—0.7% |
|
|
|
|
| |
Fast Retailing Co., Ltd.(L2) |
| 105 |
| $ | 17,186 |
|
|
|
|
|
|
| |
AUTOMOBILE MANUFACTURERS—0.6% |
|
|
|
|
| |
Honda Motor Co., Ltd. (L2) |
| 390 |
| 11,979 |
| |
Suzuki Motor Corp (L2) |
| 133 |
| 3,200 |
| |
|
|
|
| 15,179 |
| |
BREWERS—1.0% |
|
|
|
|
| |
Kirin Holdings Co., Ltd.(L2) |
| 1,454 |
| 23,602 |
| |
|
|
|
|
|
| |
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS—0.3% |
|
|
|
|
| |
Kubota Corp.(L2) |
| 925 |
| 7,148 |
| |
|
|
|
|
|
| |
ELECTRIC UTILITIES—0.1% |
|
|
|
|
| |
Kyushu Electric Power Co., Inc.(L2) |
| 131 |
| 2,660 |
| |
|
|
|
|
|
| |
ELECTRONIC EQUIPMENT MANUFACTURERS—1.5% |
|
|
|
|
| |
FUJIFILM Holdings Corp. (L2) |
| 217 |
| 6,135 |
| |
Keyence Corp. (L2) |
| 105 |
| 20,729 |
| |
Kyocera Corp. (L2) |
| 111 |
| 9,259 |
| |
|
|
|
| 36,123 |
| |
FOOD RETAIL—0.6% |
|
|
|
|
| |
Seven & I Holdings Co., Ltd.(L2) |
| 607 |
| 13,215 |
| |
|
|
|
|
|
| |
HOME ENTERTAINMENT SOFTWARE—2.3% |
|
|
|
|
| |
Nintendo Co., Ltd.(L2) |
| 228 |
| 56,869 |
| |
|
|
|
|
|
| |
HOUSEHOLD PRODUCTS—0.4% |
|
|
|
|
| |
Kao Corp.(L2) |
| 475 |
| 10,521 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—0.2% |
|
|
|
|
| |
Fanuc Ltd.(L2) |
| 65 |
| 5,369 |
| |
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.4% |
|
|
|
|
| |
Nippon Telegraph & Telephone Corp.(L2) |
| 235 |
| 9,643 |
| |
|
|
|
|
|
| |
OFFICE ELECTRONICS—0.2% |
|
|
|
|
| |
Ricoh Co., Ltd.(L2) |
| 381 |
| 5,149 |
| |
|
|
|
|
|
| |
PERSONAL PRODUCTS—0.1% |
|
|
|
|
| |
Shiseido Co., Ltd.(L2) |
| 106 |
| 1,924 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—1.8% |
|
|
|
|
| |
Astellas Pharma Inc. (L2) |
| 435 |
| 15,929 |
| |
Chugai Pharmaceutical Co., Ltd. (L2) |
| 493 |
| 9,591 |
| |
Eisai Co., Ltd. (L2) |
| 101 |
| 3,567 |
| |
Mitsubishi Tanabe Pharma Corp. *,(L2) |
| 130 |
| 1,650 |
| |
Shionogi & Co., Ltd. (L2) |
| 91 |
| 1,952 |
| |
Takeda Pharmaceutical Co., Ltd. (L2) |
| 287 |
| 11,414 |
| |
|
|
|
| 44,103 |
| |
RAILROADS—0.4% |
|
|
|
|
| |
East Japan Railway Co. (L2) |
| 28 |
| 1,783 |
| |
Kintetsu Corp. *,(L2) |
| 1,154 |
| 4,081 |
| |
West Japan Railway Co. (L2) |
| 1 |
| 3,524 |
| |
|
|
|
| 9,388 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
JAPAN—(CONT.) |
|
|
|
|
| |
REGIONAL BANKS—0.2% |
|
|
|
|
| |
Resona Holdings Inc.(L2) |
| 500 |
| $ | 5,920 |
|
|
|
|
|
|
| |
SECURITY & ALARM SERVICES—0.2% |
|
|
|
|
| |
Secom Co., Ltd.(L2) |
| 133 |
| 6,171 |
| |
|
|
|
|
|
| |
TIRES & RUBBER—0.1% |
|
|
|
|
| |
Bridgestone Corp.(L2) |
| 132 |
| 2,165 |
| |
|
|
|
|
|
| |
TOBACCO—0.9% |
|
|
|
|
| |
Japan Tobacco Inc.(L2) |
| 8 |
| 22,319 |
| |
|
|
|
|
|
| |
TRADING COMPANIES & DISTRIBUTORS—0.1% |
|
|
|
|
| |
ITOCHU Corp.(L2) |
| 450 |
| 2,828 |
| |
|
|
|
|
|
| |
WIRELESS TELECOMMUNICATION SERVICES—1.7% |
|
|
|
|
| |
KDDI Corp. (L2) |
| 3 |
| 15,834 |
| |
NTT DoCoMo Inc. (L2) |
| 19 |
| 27,401 |
| |
|
|
|
| 43,235 |
| |
TOTAL JAPAN |
|
|
| 340,717 |
| |
|
|
|
|
|
| |
NETHERLANDS—2.7% |
|
|
|
|
| |
AEROSPACE & DEFENSE—0.4% |
|
|
|
|
| |
European Aeronautic Defence and Space Co., NV(L2) |
| 537 |
| 10,082 |
| |
|
|
|
|
|
| |
CONSTRUCTION & ENGINEERING—0.8% |
|
|
|
|
| |
Chicago Bridge & Iron Co., NV# |
| 1,032 |
| 19,412 |
| |
|
|
|
|
|
| |
CONSUMER ELECTRONICS—0.8% |
|
|
|
|
| |
Koninklijke Philips Electronics NV(L2) |
| 751 |
| 18,914 |
| |
|
|
|
|
|
| |
DIVERSIFIED CHEMICALS—0.2% |
|
|
|
|
| |
Akzo Nobel NV(L2) |
| 91 |
| 5,387 |
| |
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.5% |
|
|
|
|
| |
Koninklijke KPN NV(L2) |
| 722 |
| 13,130 |
| |
|
|
|
|
|
| |
TOTAL NETHERLANDS |
|
|
| 66,925 |
| |
|
|
|
|
|
| |
NORWAY—0.6% |
|
|
|
|
| |
OIL & GAS EQUIPMENT & SERVICES—0.6% |
|
|
|
|
| |
Acergy SA(L2) |
| 1,160 |
| 14,561 |
| |
|
|
|
|
|
| |
PORTUGAL—0.1% |
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.1% |
|
|
|
|
| |
Portugal Telecom SGPS SA(L2) |
| 230 |
| 2,636 |
| |
|
|
|
|
|
| |
SOUTH AFRICA—0.7% |
|
|
|
|
| |
APPLICATION SOFTWARE—0.7% |
|
|
|
|
| |
Net 1 UEPS Technologies Inc.* |
| 1,030 |
| 18,015 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS—(CONT.) |
|
|
|
|
| |
SPAIN—1.2% |
|
|
|
|
| |
CONSTRUCTION & ENGINEERING—1.2% |
|
|
|
|
| |
ACS Actividades de Construccion y Servicios SA*,(L2) |
| 613 |
| $ | 29,510 |
|
|
|
|
|
|
| |
SWEDEN—2.6% |
|
|
|
|
| |
APPAREL RETAIL—0.7% |
|
|
|
|
| |
Hennes & Mauritz AB(L2) |
| 298 |
| 17,021 |
| |
|
|
|
|
|
| |
COMMUNICATIONS EQUIPMENT—0.5% |
|
|
|
|
| |
Telefonaktiebolaget LM Ericsson(L2) |
| 1,255 |
| 13,185 |
| |
|
|
|
|
|
| |
INDUSTRIAL MACHINERY—1.4% |
|
|
|
|
| |
Atlas Copco AB(L2) |
| 2,524 |
| 34,033 |
| |
|
|
|
|
|
| |
TOTAL SWEDEN |
|
|
| 64,239 |
| |
|
|
|
|
|
| |
SWITZERLAND—8.6% |
|
|
|
|
| |
DIVERSIFIED CAPITAL MARKETS—1.7% |
|
|
|
|
| |
Credit Suisse Group AG (L2) |
| 359 |
| 19,222 |
| |
UBS AG *,(L2) |
| 1,344 |
| 22,447 |
| |
|
|
|
| 41,669 |
| |
FERTILIZERS & AGRICULTURAL CHEMICALS—0.1% |
|
|
|
|
| |
Syngenta AG(L2) |
| 15 |
| 3,557 |
| |
|
|
|
|
|
| |
HEALTH CARE EQUIPMENT—1.1% |
|
|
|
|
| |
Synthes Inc.*,(L2) |
| 225 |
| 26,735 |
| |
|
|
|
|
|
| |
HEALTH CARE SUPPLIES—0.5% |
|
|
|
|
| |
Alcon Inc. |
| 95 |
| 13,565 |
| |
|
|
|
|
|
| |
HEAVY ELECTRICAL EQUIPMENT—0.6% |
|
|
|
|
| |
ABB Ltd.*,(L2) |
| 852 |
| 15,874 |
| |
|
|
|
|
|
| |
INTEGRATED TELECOMMUNICATION SERVICES—0.6% |
|
|
|
|
| |
Swisscom AG(L2) |
| 37 |
| 13,375 |
| |
|
|
|
|
|
| |
LEISURE PRODUCTS—1.1% |
|
|
|
|
| |
Compagnie Financiere Richemont SA(L2) |
| 988 |
| 27,702 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—2.9% |
|
|
|
|
| |
Novartis AG (L2) |
| 628 |
| 32,755 |
| |
Roche Holding AG (L2) |
| 268 |
| 42,992 |
| |
|
|
|
| 75,747 |
| |
TOTAL SWITZERLAND |
|
|
| 218,224 |
| |
|
|
|
|
|
| |
TAIWAN—1.7% |
|
|
|
|
| |
COMPUTER HARDWARE—0.2% |
|
|
|
|
| |
Wistron Corp.*,(L2) |
| 3,616 |
| 6,053 |
| |
|
|
|
|
|
| |
DISTRIBUTORS—0.2% |
|
|
|
|
| |
WPG Holdings Co., Ltd.*,(L2) |
| 3,674 |
| 5,026 |
| |
|
|
|
|
|
| |
ELECTRONIC MANUFACTURING SERVICES—0.4% |
|
|
|
|
| |
HON HAI Precision Industry Co., Ltd.*,(L2) |
| 2,610 |
| 10,223 |
| |
|
| SHARES |
| VALUE |
| |
COMMON STOCKS (CONT.) |
|
|
|
|
| |
TAIWAN (CONT.) |
|
|
|
|
| |
SEMICONDUCTORS—0.9% |
|
|
|
|
| |
Taiwan Semiconductor Manufacturing Co., Ltd.# |
| 2,373 |
| $ | 22,638 |
|
|
|
|
|
|
| |
TOTAL TAIWAN |
|
|
| 43,940 |
| |
|
|
|
|
|
| |
UNITED KINGDOM—12.2% |
|
|
|
|
| |
COMPUTER & ELECTRONICS RETAIL—0.4% |
|
|
|
|
| |
Game Group PLC*,(L2) |
| 4,474 |
| 10,904 |
| |
|
|
|
|
|
| |
DIVERSIFIED BANKS—0.8% |
|
|
|
|
| |
HSBC Holdings PLC(L2) |
| 1,994 |
| 22,129 |
| |
|
|
|
|
|
| |
DIVERSIFIED METALS & MINING—2.9% |
|
|
|
|
| |
Antofagasta PLC (L2) |
| 1,232 |
| 15,590 |
| |
Eurasian Natural Resources Corp. (L2) |
| 2,412 |
| 32,965 |
| |
Vedanta Resources PLC (L2) |
| 708 |
| 24,330 |
| |
|
|
|
| 72,885 |
| |
HEALTH CARE EQUIPMENT—1.1% |
|
|
|
|
| |
Smith & Nephew PLC(L2) |
| 3,010 |
| 26,723 |
| |
|
|
|
|
|
| |
INTEGRATED OIL & GAS—3.5% |
|
|
|
|
| |
BG Group PLC (L2) |
| 1,326 |
| 22,924 |
| |
BP PLC (L2) |
| 6,871 |
| 64,661 |
| |
|
|
|
| 87,585 |
| |
MULTI-UTILITIES—0.5% |
|
|
|
|
| |
Centrica PLC(L2) |
| 3,168 |
| 12,926 |
| |
|
|
|
|
|
| |
PHARMACEUTICALS—2.8% |
|
|
|
|
| |
AstraZeneca PLC (L2) |
| 560 |
| 25,248 |
| |
GlaxoSmithKline PLC (L2) |
| 194 |
| 3,997 |
| |
Shire PLC (L2) |
| 2,200 |
| 39,077 |
| |
|
|
|
| 68,322 |
| |
RESTAURANTS—0.2% |
|
|
|
|
| |
Compass Group PLC(L2) |
| 932 |
| 5,936 |
| |
|
|
|
|
|
| |
TOTAL UNITED KINGDOM |
|
|
| 307,410 |
| |
|
|
|
|
|
| |
UNITED STATES—1.2% |
|
|
|
|
| |
DISTILLERS & VINTNERS—1.2% |
|
|
|
|
| |
Central European Distribution Corp.* |
| 972 |
| 30,239 |
| |
|
|
|
|
|
| |
TOTAL COMMON STOCKS |
|
|
| 2,323,874 |
| |
|
|
|
|
|
| |
CONVERTIBLE PREFERRED STOCK—0.6% |
|
|
|
|
| |
BRAZIL—0.6% |
|
|
|
|
| |
DIVERSIFIED METALS & MINING—0.6% |
|
|
|
|
| |
Vale Capital II, 6.75%, 6/15/2012* |
| 200 |
| 15,786 |
| |
|
| PRINCIPAL |
|
|
| ||
|
| AMOUNT |
| VALUE |
| ||
SHORT-TERM INVESTMENTS—4.7% |
|
|
|
|
| ||
TIME DEPOSITS—4.7% |
|
|
|
|
| ||
Wells Fargo Grand Cayman, 0.03%, 11/2/09 |
| $ | 100,000 |
| $ | 100,000 |
|
Brown Bothers Harriman Cayman, 0.03%, 11/2/09 |
| 15,870 |
| 15,870 |
| ||
TOTAL1 TIME DEPOSITS |
|
|
| 115,870 |
| ||
|
|
|
|
|
| ||
Total Investments |
| 98.8 | % | 2,455,530 |
| ||
Other Assets in Excess of Liabilities |
| 1.2 |
| 30,846 |
| ||
|
|
|
|
|
| ||
NET ASSETS |
| 100.0 | % | $ | 2,486,376 |
| |
‡ | Securities classified as Level 1 for ASC 820 disclosure purposes based on valuation inputs unless otherwise noted. |
|
|
* | Non-income producing security. |
# | American Depository Receipts. |
(a) | At October 31, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $2,587,673 amounted to $132,143 which consisted of aggregate gross unrealized appreciation of $226,165 and aggregate gross unrealized depreciation of $358,308. |
(L2) | Security classified as Level 2 for ASC 820 disclosure purposes based on valuation inputs. |
Industry classifications are unaudited.
See Notes to Financial Statements.
THE ALGER FUNDS II
Statements of Assets and Liabilities October 31, 2009
|
| Alger Spectra |
|
|
| ||
|
| Fund |
| Alger Green Fund |
| ||
ASSETS: |
|
|
|
|
| ||
Investments in securities, at value (Identified cost)* see accompanying schedules of investments |
| $ | 364,891,995 |
| $ | 34,497,466 |
|
Cash# |
| 3,055,192 |
| — |
| ||
Foreign cash*** |
| — |
| — |
| ||
Receivable for investment securities sold |
| 18,148,203 |
| 563,424 |
| ||
Receivable for shares of beneficial interest sold |
| 2,297,200 |
| 327,030 |
| ||
Dividends and interest receivable |
| 154,054 |
| 14,226 |
| ||
Receivable from Investment Manager |
| 3,099 |
| 16,700 |
| ||
Prepaid expenses |
| 49,727 |
| 20,531 |
| ||
Total Assets |
| 388,599,470 |
| 35,439,377 |
| ||
LIABILITIES: |
|
|
|
|
| ||
Securities sold short, at value** |
| 26,390,771 |
| — |
| ||
Payable for investment securities purchased |
| 12,804,904 |
| 312,677 |
| ||
Payable for shares of beneficial interest redeemed |
| 344,817 |
| 66,172 |
| ||
Accrued investment advisory fees |
| 269,846 |
| 21,839 |
| ||
Accrued transfer agent fees |
| 41,784 |
| 8,938 |
| ||
Accrued distribution fees |
| 77,314 |
| 8,246 |
| ||
Accrued administrative fees |
| 8,245 |
| 846 |
| ||
Dividends payable |
| 27,973 |
| — |
| ||
Accrued other expenses |
| 89,720 |
| 32,302 |
| ||
Total Liabilities |
| 40,055,374 |
| 451,020 |
| ||
NET ASSETS |
| $ | 348,544,096 |
| $ | 34,988,357 |
|
Net Assets Consist of: |
|
|
|
|
| ||
Paid in capital (par value of $.001 per share) |
| 495,472,845 |
| 42,345,050 |
| ||
Undistributed net investment income (accumulated loss) |
| 90,081 |
| (96 | ) | ||
Undistributed net realized gain (accumulated realized loss) |
| (143,718,208 | ) | (8,746,456 | ) | ||
Net unrealized appreciation (depreciation) on investments |
| (3,300,622 | ) | 1,389,859 |
| ||
NET ASSETS |
| $ | 348,544,096 |
| $ | 34,988,357 |
|
*Identified Cost |
| $ | 367,781,112 |
| $ | 33,107,607 |
|
**Proceeds received on short sales |
| $ | 25,979,267 |
| $ | — |
|
***Cost of Foreign Cash |
| $ | — |
| $ | — |
|
# Includes cash of $650,000 held as collateral for short sales.
See Notes to Financial Statements.
|
|
|
| Alger |
| ||
|
|
|
| International |
| ||
|
| Alger Analyst |
| Opportunities |
| ||
|
| Fund |
| Fund |
| ||
ASSETS: |
|
|
|
|
| ||
Investments in securities, at value (Identified cost)* see accompanying schedules of investments |
| $ | 1,993,579 |
| $ | 2,455,530 |
|
Cash# |
| — |
| — |
| ||
Foreign cash*** |
| — |
| 18,522 |
| ||
Receivable for investment securities sold |
| 25,311 |
| 25,704 |
| ||
Receivable for shares of beneficial interest sold |
| — |
| — |
| ||
Dividends and interest receivable |
| 238 |
| 7,197 |
| ||
Receivable from Investment Manager |
| 19,509 |
| 19,807 |
| ||
Prepaid expenses |
| 18,433 |
| 18,520 |
| ||
Total Assets |
| 2,057,070 |
| 2,545,280 |
| ||
LIABILITIES: |
|
|
|
|
| ||
Securities sold short, at value** |
| — |
| — |
| ||
Payable for investment securities purchased |
| 26,865 |
| 19,937 |
| ||
Payable for shares of beneficial interest redeemed |
| — |
| — |
| ||
Accrued investment advisory fees |
| 1,512 |
| 2,184 |
| ||
Accrued transfer agent fees |
| 179 |
| 683 |
| ||
Accrued distribution fees |
| 529 |
| 615 |
| ||
Accrued administrative fees |
| 49 |
| 60 |
| ||
Dividends payable |
| — |
| — |
| ||
Accrued other expenses |
| 24,896 |
| 35,425 |
| ||
Total Liabilities |
| 54,030 |
| 58,904 |
| ||
NET ASSETS |
| $ | 2,003,040 |
| $ | 2,486,376 |
|
Net Assets Consist of: |
|
|
|
|
| ||
Paid in capital (par value of $.001 per share) |
| 2,467,284 |
| 3,435,134 |
| ||
Undistributed net investment income (accumulated loss) |
| (105 | ) | (857 | ) | ||
Undistributed net realized gain (accumulated realized loss) |
| (630,381 | ) | (851,140 | ) | ||
Net unrealized appreciation (depreciation) on investments |
| 166,242 |
| (96,761 | ) | ||
NET ASSETS |
| $ | 2,003,040 |
| $ | 2,486,376 |
|
*Identified Cost |
| $ | 1,827,337 |
| $ | 2,551,572 |
|
**Proceeds received on short sales |
| $ | — |
| $ | — |
|
***Cost of Foreign Cash |
| $ | — |
| $ | 19,431 |
|
|
| Alger Spectra |
|
|
| ||
|
| Fund |
| Alger Green Fund |
| ||
NET ASSETS BY CLASS |
|
|
|
|
| ||
Class A |
| $ | 280,139,409 |
| $ | 27,335,306 |
|
Class C |
| $ | 4,685,349 |
| $ | 1,040,939 |
|
Class I |
| $ | 63,719,338 |
| $ | 6,612,112 |
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING—NOTE 6 |
|
|
|
|
| ||
Class A |
| 30,177,815 |
| 5,215,239 |
| ||
Class C |
| 507,821 |
| 200,341 |
| ||
Class I |
| 6,835,970 |
| 1,263,055 |
| ||
|
|
|
|
|
| ||
NET ASSET VALUE AND OFFERING PRICE PER SHARE |
|
|
|
|
| ||
Class A — Net Asset Value Per Share |
| $ | 9.28 |
| $ | 5.24 |
|
|
|
|
|
|
| ||
Class A — Offering Price Per Share (includes 5.25% sales charge) |
| $ | 9.80 |
| $ | 5.53 |
|
Class C — Net Asset Value Per Share |
| $ | 9.23 |
| $ | 5.20 |
|
Class I — Net Asset Value Per Share |
| $ | 9.32 |
| $ | 5.24 |
|
See Notes to Financial Statements.
|
|
|
| Alger |
| ||
|
|
|
| International |
| ||
|
| Alger Analyst |
| Opportunities |
| ||
|
| Fund |
| Fund |
| ||
NET ASSETS BY CLASS |
|
|
|
|
| ||
Class A |
| $ | 1,721,692 |
| $ | 1,882,994 |
|
Class C |
| $ | 126,023 |
| $ | 103,742 |
|
Class I |
| $ | 155,325 |
| $ | 499,640 |
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING—NOTE 6 |
|
|
|
|
| ||
Class A |
| 214,696 |
| 244,033 |
| ||
Class C |
| 15,849 |
| 13,618 |
| ||
Class I |
| 19,390 |
| 64,955 |
| ||
|
|
|
|
|
| ||
NET ASSET VALUE AND OFFERING PRICE PER SHARE |
|
|
|
|
| ||
Class A — Net Asset Value Per Share |
| $ | 8.02 |
| $ | 7.72 |
|
|
|
|
|
|
| ||
Class A — Offering Price Per Share (includes 5.25% sales charge) |
| $ | 8.46 |
| $ | 8.14 |
|
Class C — Net Asset Value Per Share |
| $ | 7.95 |
| $ | 7.62 |
|
Class I — Net Asset Value Per Share |
| $ | 8.01 |
| $ | 7.69 |
|
THE ALGER FUNDS II
Statements of Operations
For the year ended October 31, 2009
|
| Alger Spectra |
|
|
| ||
|
| Fund |
| Alger Green Fund |
| ||
INCOME |
|
|
|
|
| ||
Dividends (net of foreign withholding taxes*) |
| $ | 3,126,686 |
| $ | 272,039 |
|
Interest |
| 26,319 |
| 7,361 |
| ||
Other |
| 2,668 |
| 20 |
| ||
Total Income |
| 3,155,673 |
| 279,420 |
| ||
EXPENSES |
|
|
|
|
| ||
Advisory fees—Note 3(a) |
| 1,819,891 |
| 175,390 |
| ||
Distribution fees—Note3(f): |
|
|
|
|
| ||
Class A |
| 476,179 |
| 54,221 |
| ||
Class C |
| 8,929 |
| 3,069 |
| ||
Class I |
| 27,114 |
| 6,769 |
| ||
Administrative fees—Note 3(a) |
| 55,608 |
| 6,793 |
| ||
Dividends on securities sold short |
| 241,841 |
| — |
| ||
Custodian fees |
| 152,025 |
| 18,904 |
| ||
Interest expenses |
| 350,305 |
| — |
| ||
Transfer agent fees and expenses—Note 3(b) |
| 317,116 |
| 57,295 |
| ||
Printing fees |
| 52,750 |
| 11,120 |
| ||
Professional fees |
| 140,112 |
| 40,160 |
| ||
Registration fees |
| 128,960 |
| 62,142 |
| ||
Trustee fees—Note 3(e) |
| 13,001 |
| 13,001 |
| ||
Miscellaneous |
| 28,325 |
| 8,861 |
| ||
Total Expenses |
| 3,812,156 |
| 457,725 |
| ||
Less, expense reimbursements Note 3(a) |
| (5,319 | ) | (146,621 | ) | ||
Net Expenses |
| 3,806,837 |
| 311,104 |
| ||
NET INVESTMENT INCOME (LOSS) |
| (651,164 | ) | (31,684 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY |
|
|
|
|
| ||
Net realized gain (loss) on investments and options |
| 5,324,117 |
| (4,972,892 | ) | ||
Net realized gain (loss) on foreign currency transactions |
| 4,684 |
| (457 | ) | ||
Net change in unrealized appreciation (depreciation) on investments, options and foreign currency |
| 49,721,977 |
| 9,225,788 |
| ||
Net realized and unrealized gain on investments, options and foreign currency |
| 55,050,778 |
| 4,252,439 |
| ||
|
|
|
|
|
| ||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
| $ | 54,399,614 |
| $ | 4,220,755 |
|
*Foreign withholding taxes |
| $ | 62,163 |
| $ | (512 | ) |
See Notes to Financial Statements.
|
|
|
| Alger |
| ||
|
|
|
| International |
| ||
|
| Alger Analyst |
| Opportunities |
| ||
|
| Fund |
| Fund |
| ||
INCOME |
| $ | 10,652 |
| $ | 44,305 |
|
Dividends (net of foreign withholding taxes*) |
| 137 |
| 65 |
| ||
Interest |
| 39 |
| (884 | ) | ||
Other |
| 10,828 |
| 43,486 |
| ||
Total Income |
|
|
|
|
| ||
EXPENSES |
| 13,863 |
| 21,041 |
| ||
Advisory fees—Note 3(a) |
|
|
|
|
| ||
Distribution fees—Note3(f): |
| 3,605 |
| 4,655 |
| ||
Class A |
| 965 |
| 833 |
| ||
Class C |
| 231 |
| 397 |
| ||
Class I |
| 449 |
| 579 |
| ||
Administrative fees—Note 3(a) |
| — |
| — |
| ||
Dividends on securities sold short |
| 14,866 |
| 67,643 |
| ||
Custodian fees |
| — |
| 19 |
| ||
Interest expenses |
| 1,048 |
| 3,103 |
| ||
Transfer agent fees and expenses—Note 3(b) |
| 1,183 |
| 1,857 |
| ||
Printing fees |
| 25,097 |
| 26,404 |
| ||
Professional fees |
| 49,996 |
| 49,684 |
| ||
Registration fees |
| 13,001 |
| 13,001 |
| ||
Trustee fees—Note 3(e) |
| 968 |
| 1,239 |
| ||
Miscellaneous |
| 125,272 |
| 190,455 |
| ||
Total Expenses |
| (104,997 | ) | (155,462 | ) | ||
Less, expense reimbursements Note 3(a) |
| 20,275 |
| 34,993 |
| ||
Net Expenses |
| (9,447 | ) | 8,493 |
| ||
NET INVESTMENT INCOME (LOSS) |
|
|
|
|
| ||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND FOREIGN CURRENCY |
| (395,079 | ) | (739,548 | ) | ||
Net realized gain (loss) on investments and options |
| (300 | ) | 671 |
| ||
Net realized gain (loss) on foreign currency transactions |
|
|
|
|
| ||
Net change in unrealized appreciation (depreciation) on investments, options and foreign currency |
| 750,734 |
| 1,189,972 |
| ||
Net realized and unrealized gain on investments, options and foreign currency |
| 355,355 |
| 451,095 |
| ||
|
|
|
|
|
| ||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
| $ | 345,908 |
| $ | 459,588 |
|
*Foreign withholding taxes |
| $ | 115 |
| $ | 3,884 |
|
THE ALGER FUNDS II
Statements of Changes in Net Assets
|
| Alger Spectra Fund |
| ||||
|
| For the |
| For the |
| ||
|
| Year Ended |
| Year Ended |
| ||
|
| October 31, 2009 |
| October 31, 2008 |
| ||
Net investment income (loss) |
| $ | (651,164 | ) | $ | (1,758,898 | ) |
Net realized gain (loss) on investments, options and foreign currency |
| 5,328,801 |
| (41,239,314 | ) | ||
Net change in unrealized appreciation (depreciation) on investments, options and foreign currency |
| 49,721,977 |
| (88,559,592 | ) | ||
Net increase (decrease) in net assets resulting from operations |
| 54,399,614 |
| (131,557,804 | ) | ||
Dividends and distributions to shareholders from: |
|
|
|
|
| ||
Net investment income |
|
|
|
|
| ||
Class A |
| — |
| — |
| ||
Class C |
| — |
| — |
| ||
Class I |
| — |
| — |
| ||
Net realized gains |
|
|
|
|
| ||
Class A |
| — |
| — |
| ||
Return of capital |
|
|
|
|
| ||
Class A |
| — |
| — |
| ||
Class C |
| — |
| — |
| ||
Class I |
| — |
| — |
| ||
Total dividends and distributions to shareholders |
| — |
| — |
| ||
Increase (decrease) from shares of beneficial interest transactions: |
|
|
|
|
| ||
Class A |
| 56,635,704 |
| (28,163,994 | ) | ||
Class C |
| 4,460,220 |
| 109,840 |
| ||
Class I |
| 62,730,510 |
| 100,000 |
| ||
Net increase (decrease) from shares of beneficial interest transactions—Note 6 |
| 123,826,434 |
| (27,954,154 | ) | ||
Total increase (decrease) |
| 178,226,048 |
| (159,511,958 | ) | ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 170,318,048 |
| 329,830,006 |
| ||
END OF PERIOD |
| $ | 348,544,096 |
| $ | 170,318,048 |
|
Undistributed net investment income (accumulated loss) |
| $ | 90,081 |
| $ | — |
|
See Notes to Financial Statements.
|
| Alger Green Fund |
| Alger Analyst Fund |
| Alger International Opportunities Fund |
| ||||||||||||
|
| For the |
| For the |
| For the |
| For the |
| For the |
| For the |
| ||||||
|
| Year Ended |
| Year Ended |
| Year Ended |
| Year Ended |
| Year Ended |
| Year Ended |
| ||||||
|
| October 31, 2009 |
| October 31, 2008 |
| October 31, 2009 |
| October 31, 2008 |
| October 31, 2009 |
| October 31, 2008 |
| ||||||
Net investment income (loss) |
| $ | (31,684 | ) | $ | (53,054 | ) | $ | (9,447 | ) | $ | (13,596 | ) | $ | 8,493 |
| $ | 11,556 |
|
Net realized gain (loss) on investments, options and foreign currency |
| (4,973,349 | ) | (3,755,271 | ) | (395,379 | ) | (232,918 | ) | (738,877 | ) | (125,483 | ) | ||||||
Net change in unrealized appreciation (depreciation) on investments, options and foreign currency |
| 9,225,788 |
| (10,063,441 | ) | 750,734 |
| (911,280 | ) | 1,189,972 |
| (2,080,077 | ) | ||||||
Net increase (decrease) in net assets resulting from operations |
| 4,220,755 |
| (13,871,766 | ) | 345,908 |
| (1,157,794 | ) | 459,588 |
| (2,194,004 | ) | ||||||
Dividends and distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Class A |
| — |
| — |
| — |
| — |
| (10,661 | ) | (7,082 | ) | ||||||
Class C |
| — |
| — |
| — |
| — |
| (477 | ) | — |
| ||||||
Class I |
| — |
| — |
| — |
| — |
| (495 | ) | — |
| ||||||
Net realized gains |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Class A |
| — |
| (389,174 | ) | — |
| (113,818 | ) | — |
| (27,987 | ) | ||||||
Return of capital |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Class A |
| — |
| — |
| — |
| — |
| (16,071 | ) | — |
| ||||||
Class C |
| — |
| — |
| — |
| — |
| (719 | ) | — |
| ||||||
Class I |
| — |
| — |
| — |
| — |
| (745 | ) | — |
| ||||||
Total dividends and distributions to shareholders |
| — |
| (389,174 | ) | — |
| (113,818 | ) | (29,168 | ) | (35,069 | ) | ||||||
Increase (decrease) from shares of beneficial interest transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Class A |
| 1,599,587 |
| 22,783,781 |
| 55,079 |
| (89,672 | ) | (391,239 | ) | 442,089 |
| ||||||
Class C |
| 889,187 |
| 110,000 |
| 28,608 |
| 100,000 |
| 14,668 |
| 100,000 |
| ||||||
Class I |
| 5,802,181 |
| 100,000 |
| 59,882 |
| 100,000 |
| 386,609 |
| 100,000 |
| ||||||
Net increase (decrease) from shares of beneficial interest transactions—Note 6 |
| 8,290,955 |
| 22,993,781 |
| 143,569 |
| 110,328 |
| 10,038 |
| 642,089 |
| ||||||
Total increase (decrease) |
| 12,511,710 |
| 8,732,841 |
| 489,477 |
| (1,161,284 | ) | 440,458 |
| (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 |
| $ | 34,988,357 |
| $ | 22,476,647 |
| $ | 2,003,040 |
| $ | 1,513,563 |
| $ | 2,486,376 |
| $ | 2,045,918 |
|
Undistributed net investment income (accumulated loss) |
| $ | (96 | ) | $ | — |
| $ | (105 | ) | $ | — |
| $ | 16,678 |
| $ | 28,476 |
|
THE ALGER FUNDS II
Statement of Cash Flows
For the year ended October 31, 2009
|
| Alger Spectra Fund |
| |
INCREASE (DECREASE) IN CASH |
|
|
| |
|
|
|
| |
Cash flows from operating activities: |
|
|
| |
Net Increase in net assets resulting from operations |
| $ | 54,399,614 |
|
|
|
|
| |
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: |
|
|
| |
Purchases of investment securities |
| (847,040,055 | ) | |
Proceeds from disposition of investment securities |
| 756,135,467 |
| |
Sale of short-term investments securities, net |
| 1,476,903 |
| |
Increase in securities sold short |
| 13,778,932 |
| |
Decrease in interest and dividends receivable |
| 44,570 |
| |
Decrease in prepaid expenses |
| 38,339 |
| |
Increase in receivable from Investment Advisor |
| (3,099 | ) | |
Increase in accrued expenses |
| 124,613 |
| |
Unrealized appreciation on investments and currencies |
| (49,721,977 | ) | |
Realized loss on investments and currencies |
| (3,259,266 | ) | |
Net use of cash in operating activities |
| (74,025,959 | ) | |
|
|
|
| |
Cash flows from financing activities: |
|
|
| |
Proceeds from shares sold |
| 100,560,006 |
| |
Payments on shares redeemed |
| (36,668,348 | ) | |
Cash from borrowing ** |
| 495,632,994 |
| |
Borrowing repayment |
| (495,632,994 | ) | |
Net use of cash in financing activities |
| 63,891,658 |
| |
|
|
|
| |
Net decrease in cash |
| (10,134,301 | ) | |
|
|
|
| |
Unrestricted Cash: |
|
|
| |
Beginning balance* |
| 12,539,493 |
| |
Ending balance* |
| $ | 2,405,192 |
|
* Excludes cash of $650,000 held as collateral for short sales.
** Cash paid for interest on borrowing was $350,305.
Noncash financing activities not included herein consist of subscriptions-in-kind of $57,789,822.
See Notes to Financial Statements.
THE ALGER FUNDS II |
Financial Highlights for a share outstanding throughout the period |
Alger Spectra Fund
|
| Class A | ||||||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| |||||
|
| 10/31/2009 |
| 10/31/2008 |
| 10/31/2007 |
| 10/31/2006 |
| 10/31/2005 |
| |||||
Net asset value, beginning of period |
| $ | 7.07 |
| $ | 12.00 |
| $ | 8.49 |
| $ | 6.94 |
| $ | 5.84 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net investment loss(i) |
| (0.02 | ) | (0.07 | ) | (0.08 | ) | (0.10 | ) | (0.05 | ) | |||||
Net realized and unrealized gain (loss) on investments |
| 2.23 |
| (4.86 | ) | 3.59 |
| 1.65 |
| 1.15 |
| |||||
Total from investment operations |
| 2.21 |
| (4.93 | ) | 3.51 |
| 1.55 |
| 1.10 |
| |||||
Net asset value, end of period |
| $ | 9.28 |
| $ | 7.07 |
| $ | 12.00 |
| $ | 8.49 |
| $ | 6.94 |
|
Total return(ii) |
| 31.4 | % | (41.1 | )% | 41.3 | % | 22.3 | % | 18.8 | % | |||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net assets, end of period (000’s omitted) |
| $ | 280,139 |
| $ | 170,147 |
| $ | 329,830 |
| $ | 191,387 |
| $ | 187,542 |
|
Ratio of gross expenses to average net assets |
| 1.90 | %(iii) | 2.01 | % | 2.07 | % | 2.01 | % | 2.07 | % | |||||
Ratio of expense reimbursements to average net assets |
| 0.00 | % | (0.48 | )% | (0.48 | )% | 0.00 | % | 0.00 | % | |||||
Ratio of net expenses to average net assets |
| 1.90 | % | 1.53 | % | 1.59 | % | 2.01 | % | 2.07 | % | |||||
Ratio of net investment income (loss) to average net assets |
| (0.29 | )% | (0.65 | )% | (0.79 | )% | (1.20 | )% | (0.81 | )% | |||||
Portfolio turnover rate |
| 362.48 | % | 313.46 | % | 282.13 | % | 232.20 | % | 247.72 | % |
(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
(iii) Includes 0.29% related to dividend expense on short positions and interest expense for the period ended 10/31/2009.
See Notes to Financial Statements.
Alger Spectra Fund
|
| Class C |
| Class I |
| ||||||||
|
|
|
| From |
|
|
| From |
| ||||
|
|
|
| 9/24/2008 |
|
|
| 9/24/2008 |
| ||||
|
|
|
| (commencement |
|
|
| (commencement |
| ||||
|
|
|
| of |
|
|
| of |
| ||||
|
| Year ended |
| operations) to |
| Year ended |
| operations) to |
| ||||
|
| 10/31/2009 |
| 10/31/2008(i) |
| 10/31/2009 |
| 10/31/2008(i) |
| ||||
Net asset value, beginning of period |
| $ | 7.07 |
| $ | 8.78 |
| $ | 7.08 |
| $ | 8.78 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
| ||||
Net investment loss(ii) |
| (0.12 | ) | (0.01 | ) | (0.07 | ) | — |
| ||||
Net realized and unrealized gain (loss) on investments |
| 2.28 |
| (1.70 | ) | 2.31 |
| (1.70 | ) | ||||
Total from investment operations |
| 2.16 |
| (1.71 | ) | 2.24 |
| (1.70 | ) | ||||
Net asset value, end of period |
| $ | 9.23 |
| $ | 7.07 |
| $ | 9.32 |
| $ | 7.08 |
|
Total return(iii) |
| 30.6 | % | (19.5 | )% | 31.8 | % | (19.4 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
| ||||
Net assets, end of period (000’s omitted) |
| $ | 4,685 |
| $ | 90 |
| $ | 63,719 |
| $ | 81 |
|
Ratio of gross expenses to average net assets |
| 2.48 | %(iv) | 2.27 | % | 1.50 | %(v) | 1.53 | % | ||||
Ratio of expense reimbursements to average net assets |
| 0.00 | % | (0.02 | )% | (0.05 | )% | (0.28 | )% | ||||
Ratio of net expenses to average net assets |
| 2.48 | % | 2.25 | % | 1.45 | % | 1.25 | % | ||||
Ratio of net investment income (loss) to average net assets |
| (1.35 | )% | (0.92 | )% | (0.77 | )% | 0.09 | % | ||||
Portfolio turnover rate |
| 362.48 | % | 313.46 | % | 362.48 | % | 313.46 | % |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
(iv) Includes 0.25% related to dividend expense on short positions and interest expense for the period ended 10/31/2009.
(v) Includes 0.20% related to dividend expense of short positions and interest expense for the period ended 10/31/2009.
Alger Green Fund(i)
|
| Class A |
| |||||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| |||||
|
| 10/31/2009 |
| 10/31/2008 |
| 10/31/2007 |
| 10/31/2006 |
| 10/31/2005 |
| |||||
Net asset value, beginning of period |
| $ | 4.52 |
| $ | 7.90 |
| $ | 6.61 |
| $ | 6.17 |
| $ | 5.37 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net investment loss(ii) |
| 0.00 |
| (0.01 | ) | (0.03 | ) | (0.03 | ) | (0.01 | ) | |||||
Net realized and unrealized gain (loss) on investments |
| 0.72 |
| (3.19 | ) | 2.09 |
| 1.13 |
| 1.05 |
| |||||
Total from investment operations |
| 0.72 |
| (3.20 | ) | 2.06 |
| 1.10 |
| 1.04 |
| |||||
Distributions from net realized gains |
| — |
| (0.18 | ) | (0.77 | ) | (0.66 | ) | (0.24 | ) | |||||
Net asset value, end of period |
| $ | 5.24 |
| $ | 4.52 |
| $ | 7.90 |
| $ | 6.61 |
| $ | 6.17 |
|
Total return(iii) |
| 15.9 | % | (41.4 | )% | 34.4 | % | 19.1 | % | 19.8 | % | |||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net assets, end of period (000’s omitted) |
| $ | 27,335 |
| $ | 22,307 |
| $ | 13,744 |
| $ | 2,446 |
| $ | 1,505 |
|
Ratio of gross expenses to average net assets |
| 1.87 | % | 1.49 | % | 2.15 | % | 7.04 | % | 2.00 | % | |||||
Ratio of expense reimbursements to average net assets |
| (0.62 | )% | (0.24 | )% | (0.90 | )% | (5.79 | )% | (0.75 | )% | |||||
Ratio of net expenses to average net assets |
| 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | |||||
Ratio of net investment income (loss) to average net assets |
| (0.10 | )% | (0.21 | )% | (0.42 | )% | (0.53 | )% | (0.25 | )% | |||||
Portfolio turnover rate |
| 79.75 | % | 106.34 | % | 131.66 | % | 209.65 | % | 152.60 | % |
(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) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
See Notes to Financial Statements.
Alger Green Fund(i)
|
| Class C |
| Class I |
| ||||||||
|
|
|
| From |
|
|
| From |
| ||||
|
|
|
| 9/24/2008 |
|
|
| 9/24/2008 |
| ||||
|
|
|
| (commence- |
|
|
| (commence- |
| ||||
|
|
|
| ment of |
|
|
| ment of |
| ||||
|
| Year ended |
| operations) to |
| Year ended |
| operations) to |
| ||||
|
| 10/31/2009 |
| 10/31/2008(ii) |
| 10/31/2009 |
| 10/31/2008(ii) |
| ||||
Net asset value, beginning of period |
| $ | 4.51 |
| $ | 5.65 |
| $ | 4.52 |
| $ | 5.65 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
| ||||
Net investment loss(iii) |
| (0.05 | ) | — |
| (0.01 | ) | — |
| ||||
Net realized and unrealized gain (loss) on investments |
| 0.74 |
| (1.14 | ) | 0.73 |
| (1.13 | ) | ||||
Total from investment operations |
| 0.69 |
| (1.14 | ) | 0.72 |
| (1.13 | ) | ||||
Net asset value, end of period |
| $ | 5.20 |
| $ | 4.51 |
| $ | 5.24 |
| $ | 4.52 |
|
Total return(iv) |
| 15.3 | % | (20.2 | )% | 15.9 | % | (20.0 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
| ||||
Net assets, end of period (000’s omitted) |
| $ | 1,041 |
| $ | 90 |
| $ | 6,612 |
| $ | 80 |
|
Ratio of gross expenses to average net assets |
| 2.49 | % | 2.17 | % | 1.63 | % | 1.42 | % | ||||
Ratio of expense reimbursements to average net assets |
| (0.49 | )% | (0.17 | )% | (0.38 | )% | (0.17 | )% | ||||
Ratio of net expenses to average net assets |
| 2.00 | % | 2.00 | % | 1.25 | % | 1.25 | % | ||||
Ratio of net investment income (loss) to average net assets |
| (1.05 | )% | (1.01 | )% | (0.28 | )% | (0.26 | )% | ||||
Portfolio turnover rate |
| 79.75 | % | 106.34 | % | 79.75 | % | 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) 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, if applicable.
Alger Analyst Fund
|
| Class A |
| Class C |
| |||||||||||
|
|
|
|
|
| From |
|
|
| From |
| |||||
|
|
|
|
|
| 3/30/2007 |
|
|
| 9/24/2008 |
| |||||
|
|
|
|
|
| (commencement |
|
|
| (commencement |
| |||||
|
|
|
|
|
| of |
|
|
| of |
| |||||
|
| Year ended |
| Year ended |
| operations) to |
| Year ended |
| operations) to |
| |||||
|
| 10/31/2009 |
| 10/31/2008 |
| 10/31/2007(i) |
| 10/31/2009 |
| 10/31/2008(i) |
| |||||
Net asset value, beginning of period |
| $ | 6.57 |
| $ | 12.07 |
| $ | 10.00 |
| $ | 6.56 |
| $ | 8.55 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net investment loss(ii) |
| (0.04 | ) | (0.06 | ) | (0.04 | ) | (0.09 | ) | (0.01 | ) | |||||
Net realized and unrealized gain (loss) on investments |
| 1.49 |
| (4.93 | ) | 2.11 |
| 1.48 |
| (1.98 | ) | |||||
Total from investment operations |
| 1.45 |
| (4.99 | ) | 2.07 |
| 1.39 |
| (1.99 | ) | |||||
Distributions from net realized gains |
| — |
| (0.51 | ) | — |
| — |
| — |
| |||||
Net asset value, end of period |
| $ | 8.02 |
| $ | 6.57 |
| $ | 12.07 |
| $ | 7.95 |
| $ | 6.56 |
|
Total return(iii) |
| 22.1 | % | (43.0 | )% | 20.7 | % | 21.2 | % | (23.3 | )% | |||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net assets, end of period (000’s omitted) |
| $ | 1,722 |
| $ | 1,360 |
| $ | 2,675 |
| $ | 126 |
| $ | 77 |
|
Ratio of gross expenses to average net assets |
| 7.62 | % | 3.04 | % | 2.50 | % | 8.49 | % | 6.60 | % | |||||
Ratio of expense reimbursements to average net assets |
| (6.42 | )% | (1.84 | )% | (1.30 | )% | (6.54 | )% | (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 (loss) to average net assets |
| (0.53 | )% | (0.60 | )% | (0.66 | )% | (1.29 | )% | (1.31 | )% | |||||
Portfolio turnover rate |
| 144.99 | % | 124.91 | % | 67.44 | % | 144.99 | % | 124.91 | % |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
See Notes to Financial Statements.
Alger Analyst Fund
|
| Class I |
| ||||
|
|
|
| From |
| ||
|
|
|
| 9/24/2008 |
| ||
|
|
|
| (commencement |
| ||
|
|
|
| of |
| ||
|
| Year ended |
| operations) to |
| ||
|
| 10/31/2009 |
| 10/31/2008(i) |
| ||
Net asset value, beginning of period |
| $ | 6.56 |
| $ | 8.55 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
| ||
Net investment loss(ii) |
| (0.04 | ) | — |
| ||
Net realized and unrealized gain (loss) on investments |
| 1.49 |
| (1.99 | ) | ||
Total from investment operations |
| 1.45 |
| (1.99 | ) | ||
Net asset value, end of period |
| $ | 8.01 |
| $ | 6.56 |
|
Total return(iii) |
| 22.1 | % | (23.3 | )% | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
| ||
Net assets, end of period (000’s omitted) |
| $ | 155 |
| $ | 77 |
|
Ratio of gross expenses to average net assets |
| 7.75 | % | 5.85 | % | ||
Ratio of expense reimbursements to average net assets |
| (6.55 | )% | (4.65 | )% | ||
Ratio of net expenses to average net assets |
| 1.20 | % | 1.20 | % | ||
Ratio of net investment income (loss) to average net assets |
| (0.56 | )% | (0.56 | )% | ||
Portfolio turnover rate |
| 144.99 | % | 124.91 | % |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
Alger International Opportunities Fund
|
| Class A |
| Class C |
| |||||||||||
|
|
|
|
|
| From |
|
|
| From |
| |||||
|
|
|
|
|
| 2/28/2007 |
|
|
| 9/24/2008 |
| |||||
|
|
|
|
|
| (commencement |
|
|
| (commencement |
| |||||
|
|
|
|
|
| of |
|
|
| of |
| |||||
|
| Year ended |
| Year ended |
| operations) to |
| Year ended |
| operations) to |
| |||||
|
| 10/31/2009 |
| 10/31/2008 |
| 10/31/2007(i) |
| 10/31/2009 |
| 10/31/2008(i) |
| |||||
Net asset value, beginning of period |
| $ | 6.39 |
| $ | 13.56 |
| $ | 10.00 |
| $ | 6.37 |
| $ | 8.87 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net investment income (loss)(ii) |
| 0.03 |
| 0.04 |
| 0.05 |
| (0.02 | ) | — |
| |||||
Net realized and unrealized gain (loss) on investments |
| 1.39 |
| (7.09 | ) | 3.51 |
| 1.37 |
| (2.50 | ) | |||||
Total from investment operations |
| 1.42 |
| (7.05 | ) | 3.56 |
| 1.35 |
| (2.50 | ) | |||||
Dividends from net investment income |
| (0.04 | ) | (0.02 | ) | — |
| (0.04 | ) | — |
| |||||
Distributions from net realized gains |
| — |
| (0.10 | ) | — |
| — |
| — |
| |||||
Return of capital |
| (0.05 | ) | — |
| — |
| (0.06 | ) | — |
| |||||
Net asset value, end of period |
| $ | 7.72 |
| $ | 6.39 |
| $ | 13.56 |
| $ | 7.62 |
| $ | 6.37 |
|
Total return(iii) |
| 22.5 | % | (52.4 | )% | 35.6 | % | 21.6 | % | (28.2 | )% | |||||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net assets, end of period (000’s omitted) |
| $ | 1,883 |
| $ | 1,902 |
| $ | 3,633 |
| $ | 104 |
| $ | 72 |
|
Ratio of gross expenses to average net assets |
| 9.14 | % | 4.67 | % | 4.12 | % | 9.79 | % | 6.66 | % | |||||
Ratio of expense reimbursements to average net assets |
| (7.49 | )% | (3.02 | )% | (2.47 | )% | (7.39 | )% | (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 (loss) to average net assets |
| 0.44 | % | 0.35 | % | 0.64 | % | (0.36 | )% | (0.65 | )% | |||||
Portfolio turnover rate |
| 63.24 | % | 72.00 | % | 40.19 | % | 63.24 | % | 72.00 | % |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
See Notes to Financial Statements.
Alger International Opportunities Fund
|
| Class I |
| ||||
|
|
|
| From |
| ||
|
|
|
| 9/24/2008 |
| ||
|
|
|
| (commencement |
| ||
|
|
|
| of |
| ||
|
| Year ended |
| operations) to |
| ||
|
| 10/31/2009 |
| 10/31/2008(i) |
| ||
Net asset value, beginning of period |
| $ | 6.37 |
| $ | 8.87 |
|
INCOME FROM INVESTMENT OPERATIONS: |
|
|
|
|
| ||
Net investment income(ii) |
| 0.03 |
| — |
| ||
Net realized and unrealized gain (loss) on investments |
| 1.40 |
| (2.50 | ) | ||
Total from investment operations |
| 1.43 |
| (2.50 | ) | ||
Dividends from net investment income |
| (0.04 | ) | — |
| ||
Return of capital |
| (0.07 | ) | — |
| ||
Net asset value, end of period |
| $ | 7.69 |
| $ | 6.37 |
|
Total return(iii) |
| 22.9 | % | (28.2 | )% | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
|
| ||
Net assets, end of period (000’s omitted) |
| $ | 500 |
| $ | 72 |
|
Ratio of gross expenses to average net assets |
| 7.61 | % | 5.91 | % | ||
Ratio of expense reimbursements to average net assets |
| (6.21 | )% | (4.51 | )% | ||
Ratio of net expenses to average net assets |
| 1.40 | % | 1.40 | % | ||
Ratio of net investment income (loss) to average net assets |
| 0.37 | % | (0.35 | )% | ||
Portfolio turnover rate |
| 63.24 | % | 72.00 | % |
(i) Ratios have been annualized; total return and portfolio turnover rate have not been annualized.
(ii) Amount was computed based on average shares outstanding during the period.
(iii) Does not reflect the effect of sales charges, if applicable.
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — Summary of Significant Accounting Policies:
The Alger Funds II (the “Trust”) is a diversified open-end registered investment company organized as a business trust under the laws of the Commonwealth of Massachusetts. The Trust 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.
NOTE 2 — Summary of Significant Accounting Policies:
(a) Investment Valuation: Investments of the Funds are valued on each day the New York Stock Exchange (the “NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern time). Equity securities and option contracts 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 ask price or, in the absence of a recent bid or ask price, the equivalent as obtained from one or more of the major market makers for the securities to be valued.
Debt securities generally trade in the over-the-counter market. Securities with remaining maturities of more than sixty days at the time of acquisition are valued at prices furnished by dealers who make markets in such securities or by an independent pricing service, which considers the yield or price of bonds of comparable quality, coupon, maturity and type, as well as prices quoted by dealers who make markets in such securities.
Short-term securities held by the Funds having a remaining maturity of sixty days or less, are valued at amortized cost which approximates market value. Shares of mutual funds are valued at the net asset value of the underlying mutual fund.
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
Securities for which market quotations are not readily available are valued at fair value, as determined in good faith pursuant to procedures established by the Board 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 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.
Financial Accounting Standards Board Accounting Standards Codification 820 – Fair Value Measurements and Disclosures (“ASC 820”) defines fair value as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability and may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds’ own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
· Level 1 – quoted prices in active markets for identical investments
· Level 2 – significant other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
· Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)
The Funds’ valuation techniques are consistent with the market approach whereby prices and other relevant information generated by market transactions involving identical or comparable assets are used to measure fair value. Inputs for Level 1 include exchange listed prices and broker quotes in an active market. Inputs for Level 2 include the last trade price in the case of a halted security, a broker quote in an inactive market, an exchange listed price which has been adjusted for fair value factors, and prices of closely related securities. Additional Level 2 inputs include an evaluated price which is based upon on a compilation of observable market information such as spreads for fixed income and preferred securities. Inputs for Level 3 include derived prices from unobservable market information which can include cash flows and other information obtained from a company’s financial statements, or from market indicators such as benchmarks and indices.
(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
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
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. During the year ended October 31, 2009, there were no written options.
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 year ended October 31, 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
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
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 year ending October 31, 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 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 each Fund’s policy to comply with the requirements of the Internal Revenue Code Subchapter M applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Provided the Funds maintain such compliance, no federal income tax provision is required. Each Fund is treated as a separate entity for the purpose of determining such compliance.
Financial Accounting Standards Board Accounting Standards Codification 740 – Income Taxes (“ASC 740”) requires the Funds to measure and recognize in their financial statements the benefit of a tax position taken (or expected to be taken) on an income tax return if such position will more likely than not be sustained upon examination based on
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
the technical merits of the position. The Funds file income tax returns in the U.S. 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 2006-2009 in these jurisdictions, the Funds have determined that ASC 740 did not have a material impact on the Funds’ financial statements for the year ended October 31, 2009.
(i) Allocation Methods: The Trust accounts separately for the assets, liabilities and operations of each Fund. Expenses directly attributable to each Fund are charged to that Fund’s operations; expenses which are applicable to all Funds are allocated among them based on net assets. Income, realized and unrealized gains and losses, and expenses of each Fund are allocated among the Fund’s classes based on relative net assets, with the exception of distribution fees and transfer agency fees.
(j) Estimates: These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates.
NOTE 3 — 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 |
|
Alger Management has established an expense cap for each of the Funds effective through February 28, 2010, 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 |
| |
|
| Class |
| Year Ended |
| |||||
|
| A |
| C |
| I |
| October 31, 2009 |
| |
Alger Spectra Fund |
| N/A |
| 2.25 | % | 1.25 | % | $ | 5,319 |
|
Alger Green Fund |
| 1.25 | % | 2.00 |
| 1.25 |
| 146,621 |
| |
Alger Analyst Fund |
| 1.20 |
| 1.95 |
| 1.20 |
| 104,997 |
| |
Alger International Opportunities Fund |
| 1.65 |
| 2.40 |
| 1.40 |
| 155,462 |
| |
(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
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
services. During the year ended October 31, 2009, the Alger Spectra Fund, Alger Green Fund, Alger Analyst Fund, and the Alger International Opportunities Fund incurred fees of $50,306, $8,232, $77, and $337, 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 year ended October 31, 2009, the initial sales charges and contingent deferred sales charges retained by the Distributor were approximately $8,634 and $227, 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 year ended October 31, 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, $1,386,968, $31,564, $1,580, and $7, 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 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) Interfund Loans: The Funds, along with other funds advised by Alger Management, may borrow money from and lend money to each other for temporary or emergency purposes. To the extent permitted under its investment restrictions, each Fund may lend uninvested cash in an amount up to 15% of its net assets to other Funds, and each Fund may borrow in an amount up to 10% of its net assets from other Funds. If a Fund has borrowed from other Funds and has aggregate borrowings from all sources that exceed 10% of the Fund’s total assets, such Fund will secure all of its loans from other Funds. The interest
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
rate charged on interfund loans is equal to the average of the overnight time deposit rate and bank loan rate available to the Funds. There were no interfund loans outstanding during the year ended October 31, 2009.
(h) Other Transactions with Affiliates: Certain trustees and officers of the Trust are directors and officers of Alger Management, Alger Inc. and Alger Services. At October 31, 2009, Alger Management and its affiliates owned the following shares:
|
| Share Class |
| ||||
|
| A |
| C |
| I |
|
Alger Spectra Fund |
| 1,197,006 |
| 11,390 |
| 11,390 |
|
Alger Green Fund |
| 438,941 |
| 17,699 |
| 17,699 |
|
Alger Analyst Fund |
| 200,290 |
| 11,696 |
| 11,696 |
|
Alger International Opportunities Fund |
| 182,126 |
| 11,461 |
| 11,480 |
|
NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by the Trust, other than short-term securities, for the year ended October 31, 2009:
|
| PURCHASES |
| SALES |
| ||
Alger Spectra Fund |
| $ | 902,604,664 |
| $ | 752,571,718 |
|
Alger Green Fund |
| 26,106,800 |
| 18,306,433 |
| ||
Alger Analyst Fund |
| 2,130,330 |
| 1,991,796 |
| ||
Alger International Opportunities Fund |
| 1,234,107 |
| 1,267,413 |
| ||
NOTE 5 — Borrowings:
The Funds may borrow from their custodian on an uncommitted basis. Each Fund pays the custodian a market rate of interest, generally based upon the London Inter-Bank Offer Rate. The Funds may also borrow from other funds advised by Alger Management, as discussed in Note 3 (g). For the year ended October 31, 2009, the Funds had the following borrowings:
|
| AVERAGE |
| WEIGHTED AVERAGE |
| |
|
| BORROWING |
| INTEREST RATE |
| |
Alger Spectra Fund |
| $ | 4,210,131 |
| 2.55 | % |
Alger International Opportunities Fund |
| 843 |
| 2.27 |
| |
The highest amount borrowed during the year ended October 31, 2009, for each Fund was as follows:
|
| Highest Borrowing |
| |
Alger Spectra Fund |
| $ | 23,840,423 |
|
Alger International Opportunities Fund |
| 303,234 |
| |
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 6 — Share Capital:
(a) The Trust has an unlimited number of authorized shares of beneficial interest of $.001 par value which are presently divided into four series. Each series is divided into separate classes. The transactions of shares of beneficial interest were as follows:
|
| FOR THE YEAR ENDED |
| FOR THE YEAR ENDED |
| ||||||
|
| OCTOBER 31, 2009 |
| OCTOBER 31, 2008 |
| ||||||
|
| SHARES |
| AMOUNT |
| SHARES |
| AMOUNT |
| ||
Alger Spectra Fund |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 11,051,128 |
| $ | 93,100,552 |
| 7,743,896 |
| $ | 83,315,712 |
|
Shares redeemed |
| (4,938,361 | ) | (36,464,848 | ) | (11,169,039 | ) | (111,479,706 | ) | ||
Net increase (decrease) |
| 6,112,767 |
| $ | 56,635,704 |
| (3,425,143 | ) | $ | (28,163,994 | ) |
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 500,468 |
| $ | 4,508,798 |
| 12,768 |
| $ | 109,840 |
|
Shares redeemed |
| (5,414 | ) | (48,578 | ) | — |
| — |
| ||
Net increase |
| 495,054 |
| $ | 4,460,220 |
| 12,768 |
| $ | 109,840 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 6,852,971 |
| $ | 62,988,664 |
| 11,390 |
| $ | 100,000 |
|
Shares redeemed |
| (28,390 | ) | (258,154 | ) | — |
| — |
| ||
Net increase |
| 6,824,581 |
| $ | 62,730,510 |
| 11,390 |
| $ | 100,000 |
|
|
|
|
|
|
|
|
|
|
| ||
Alger Green Fund |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 2,483,463 |
| $ | 11,221,664 |
| 4,475,056 |
| $ | 30,118,066 |
|
Dividends reinvested |
| — |
| — |
| 47,758 |
| 357,227 |
| ||
Shares redeemed |
| (2,205,457 | ) | (9,622,077 | ) | (1,325,378 | ) | (7,691,512 | ) | ||
Net increase |
| 278,006 |
| $ | 1,599,587 |
| 3,197,436 |
| $ | 22,783,781 |
|
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 184,581 |
| $ | 908,705 |
| 19,872 |
| $ | 110,000 |
|
Shares redeemed |
| (4,112 | ) | (19,518 | ) | — |
| — |
| ||
Net increase |
| 180,469 |
| $ | 889,187 |
| 19,872 |
| $ | 110,000 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 1,394,748 |
| $ | 6,506,264 |
| 17,699 |
| $ | 100,000 |
|
Shares redeemed |
| (149,392 | ) | (704,083 | ) | — |
| — |
| ||
Net increase |
| 1,245,356 |
| $ | 5,802,181 |
| 17,699 |
| $ | 100,000 |
|
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
|
| FOR THE YEAR ENDED |
| FOR THE YEAR ENDED |
| ||||||
|
| OCTOBER 31, 2009 |
| OCTOBER 31, 2008 |
| ||||||
|
| SHARES |
| AMOUNT |
| SHARES |
| AMOUNT |
| ||
Alger Analyst Fund |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 17,078 |
| $ | 127,140 |
| 4,431 |
| $ | 43,969 |
|
Dividends reinvested |
| — |
| — |
| 10,190 |
| 111,272 |
| ||
Shares redeemed |
| (9,494 | ) | (72,061 | ) | (29,070 | ) | (244,913 | ) | ||
Net increase (decrease) |
| 7,584 |
| $ | 55,079 |
| (14,449 | ) | $ | (89,672 | ) |
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 6,363 |
| $ | 43,618 |
| 11,696 |
| $ | 100,000 |
|
Shares redeemed |
| (2,210 | ) | (15,010 | ) | — |
| — |
| ||
Net increase |
| 4,153 |
| $ | 28,608 |
| 11,696 |
| $ | 100,000 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 7,694 |
| $ | 59,883 |
| 11,696 |
| $ | 100,000 |
|
Shares redeemed |
| 0 |
| (1 | ) | — |
| — |
| ||
Net increase |
| 7,694 |
| $ | 59,882 |
| 11,696 |
| $ | 100,000 |
|
Alger International Opportunities Fund |
|
|
|
|
|
|
|
|
| ||
Class A: |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 40,338 |
| $ | 254,379 |
| 168,676 |
| $ | 1,857,745 |
|
Dividends reinvested |
| 3,666 |
| 22,215 |
| 2,612 |
| 31,947 |
| ||
Shares redeemed |
| (97,703 | ) | (667,833 | ) | (141,396 | ) | (1,447,603 | ) | ||
Net increase (decrease) |
| (53,699 | ) | $ | (391,239 | ) | 29,892 |
| $ | 442,089 |
|
Class C:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 2,805 |
| $ | 18,598 |
| 11,274 |
| $ | 100,000 |
|
Dividends reinvested |
| 199 |
| 1,196 |
| — |
| — |
| ||
Shares redeemed |
| (660 | ) | (5,126 | ) | — |
| — |
| ||
Net increase |
| 2,344 |
| $ | 14,668 |
| 11,274 |
| $ | 100,000 |
|
Class I:* |
|
|
|
|
|
|
|
|
| ||
Shares sold |
| 65,340 |
| $ | 478,328 |
| 11,274 |
| $ | 100,000 |
|
Dividends reinvested |
| 206 |
| 1,240 |
| — |
| — |
| ||
Shares redeemed |
| (11,865 | ) | (92,959 | ) | — |
| — |
| ||
Net increase |
| 53,681 |
| $ | 386,609 |
| 11,274 |
| $ | 100,000 |
|
* Initially offered September 24, 2008.
During the year ended October 31, 2009, shares sold for the Alger Spectra Fund include a subscription-in-kind of 54,355 Class I shares valued at $57,789,822.
(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:
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
|
| FOR THE YEAR ENDED |
| FOR THE YEAR ENDED |
| ||
|
| OCTOBER 31, 2009 |
| OCTOBER 31, 2008 |
| ||
Alger Spectra Fund |
| $ | 1,204 |
| $ | 12,015 |
|
Alger Green Fund |
| 1,250 |
| 8,949 |
| ||
Alger Analyst Fund |
| — |
| — |
| ||
Alger International Opportunities Fund |
| — |
| 10,209 |
| ||
NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2009 and the year ended October 31, 2008 was as follows:
|
| FOR THE YEAR ENDED |
| FOR THE YEAR ENDED |
| ||
|
| OCTOBER 31, 2009 |
| OCTOBER 31, 2008 |
| ||
Alger Spectra Fund |
|
|
|
|
| ||
Distributions paid from: |
|
|
|
|
| ||
Ordinary Income |
| — |
| — |
| ||
Long-term capital gain |
| — |
| — |
| ||
Return of capital |
| — |
| — |
| ||
Total distributions paid |
| — |
| — |
| ||
|
|
|
|
|
| ||
Alger Green Fund |
|
|
|
|
| ||
Distributions paid from: |
|
|
|
|
| ||
Ordinary Income |
| — |
| $ | 221,757 |
| |
Long-term capital gain |
| — |
| 167,417 |
| ||
Return of capital |
| — |
| — |
| ||
Total distributions paid |
| — |
| $ | 389,174 |
| |
|
|
|
|
|
| ||
Alger Analyst Fund |
|
|
|
|
| ||
Distributions paid from: |
|
|
|
|
| ||
Ordinary Income |
| — |
| 113,818 |
| ||
Long-term capital gain |
| — |
| — |
| ||
Return of capital |
| — |
| — |
| ||
Total distributions paid |
| — |
| $ | 113,818 |
| |
|
|
|
|
|
| ||
Alger International Opportunities Fund |
|
|
|
|
| ||
Distributions paid from: |
|
|
|
|
| ||
Ordinary Income |
| $ | 11,633 |
| 35,069 |
| |
Long-term capital gain |
| — |
| — |
| ||
Return of capital |
| 17,535 |
| — |
| ||
Total distributions paid |
| $ | 29,168 |
| $ | 35,069 |
|
As of October 31, 2009, the components of distributable earnings on a tax basis were as follows:
Alger Spectra Fund |
|
|
| |
Undistributed ordinary income |
| $ | — |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | (7,167,472 | ) |
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
Alger Green Fund |
|
|
| |
Undistributed ordinary income |
| $ | — |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | 1,091,059 |
|
|
|
|
| |
Alger Analyst Fund |
|
|
| |
Undistributed ordinary income |
| $ | — |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | 153,615 |
|
|
|
|
| |
Alger International Opportunities Fund |
|
|
| |
Undistributed ordinary income |
| $ | — |
|
Undistributed long-term gain |
| — |
| |
Unrealized appreciation |
| $ | (132,862 | ) |
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, 2009, 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.
|
| EXPIRATION DATES |
|
|
| ||||||||
|
| 2010 |
| 2016 |
| 2017 |
| TOTAL |
| ||||
Alger Spectra Fund |
| $ | 107,067,302 |
| $ | 31,478,777 |
| $ | 1,215,200 |
| $ | 139,761,279 |
|
Alger Green Fund |
| $ | — |
| $ | 3,405,353 |
| $ | 5,042,397 |
| $ | 8,447,750 |
|
Alger Analyst Fund |
| $ | — |
| $ | 226,801 |
| $ | 391,053 |
| $ | 617,854 |
|
Alger International Opportunities Fund |
| $ | — |
| $ | 13,573 |
| $ | 802,324 |
| $ | 815,897 |
|
NOTE 8 — Fair Value Measurements:
The major categories of securities and their respective fair value inputs are detailed in each Fund’s Schedule of Investments. The following is a summary of the inputs used as of October 31, 2009 in valuing the Funds’ investments and securities sold short carried at fair value:
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
|
| TOTAL FUND |
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| ||
Alger Spectra Fund |
|
|
|
|
|
|
|
|
| ||
COMMON STOCKS |
|
|
|
|
|
|
|
|
| ||
Consumer Discretionary |
| $ | 38,750,085 |
| $ | 38,750,085 |
| — |
| — |
|
Consumer Staples |
| 24,155,608 |
| 24,155,608 |
| — |
| — |
| ||
Energy |
| 35,938,433 |
| 35,938,433 |
| — |
| — |
| ||
Financials |
| 36,376,093 |
| 36,376,093 |
| — |
| — |
| ||
Health Care |
| 63,156,780 |
| 63,156,780 |
| — |
| — |
| ||
Industrials |
| 23,590,351 |
| 23,590,351 |
| — |
| — |
| ||
Information Technology |
| 121,907,468 |
| 121,907,468 |
| — |
| — |
| ||
Materials |
| 16,674,576 |
| 16,674,576 |
| — |
| — |
| ||
Telecommunication Services |
| 592,698 |
| 592,698 |
| — |
| — |
| ||
TOTAL COMMON STOCKS |
| 361,142,092 |
| 361,142,092 |
| — |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
SHORT-TERM INVESTMENTS |
|
|
|
|
|
|
|
|
| ||
TIME DEPOSITS |
| 3,749,903 |
| 3,749,903 |
| — |
| — |
| ||
TOTAL INVESTMENTS IN SECURITIES |
| $ | 364,891,995 |
| $ | 364,891,995 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
| ||
SECURITIES SOLD SHORT |
|
|
|
|
|
|
|
|
| ||
COMMON STOCKS |
|
|
|
|
|
|
|
|
| ||
Consumer Discretionary |
| 1,414,869 |
| 1,414,869 |
| — |
| — |
| ||
Financials |
| 5,863,114 |
| 5,863,114 |
| — |
| — |
| ||
Health Care |
| 6,545,843 |
| 6,545,843 |
| — |
| — |
| ||
Industrials |
| 5,846,121 |
| 5,846,121 |
| — |
| — |
| ||
Information Technology |
| 5,081,417 |
| 5,081,417 |
| — |
| — |
| ||
Telecommunication Services |
| 1,639,407 |
| 1,639,407 |
| — |
| — |
| ||
TOTAL SECURITIES SOLD SHORT |
| $ | 26,390,771 |
| $ | 26,390,771 |
| — |
| — |
|
|
| TOTAL FUND |
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| |||
Alger Green Fund |
|
|
|
|
|
|
|
|
| |||
COMMON STOCKS |
|
|
|
|
|
|
|
|
| |||
Consumer Discretionary |
| 6,108,492 |
| 6,108,492 |
| — |
| — |
| |||
Consumer Staples |
| 2,445,100 |
| 2,445,100 |
| — |
| — |
| |||
Energy |
| 831,706 |
| 831,706 |
| — |
| — |
| |||
Financials |
| 1,875,025 |
| 1,875,025 |
| — |
| — |
| |||
Health Care |
| 3,223,300 |
| 3,223,300 |
| — |
| — |
| |||
Industrials |
| 6,708,894 |
| 6,348,156 |
| 360,738 |
| — |
| |||
Information Technology |
| 9,182,382 |
| 9,182,382 |
| — |
| — |
| |||
Materials |
| 1,191,073 |
| 1,191,073 |
| — |
| — |
| |||
Utilities |
| 569,707 |
| 569,707 |
| — |
| — |
| |||
TOTAL COMMON STOCKS |
| 32,135,679 |
| 31,774,941 |
| 360,738 |
| — |
| |||
|
|
|
|
|
|
|
|
|
| |||
CONVERTIBLE CORPORATE BONDS |
|
|
|
|
|
|
|
|
| |||
Corporate Bond - Domestic |
| 123,750 |
| — |
| 123,750 |
| — |
| |||
SHORT-TERM INVESTMENTS |
|
|
|
|
|
|
|
|
| |||
TIME DEPOSITS |
| 2,238,037 |
| 2,238,037 |
| — |
| — |
| |||
TOTAL INVESTMENTS IN SECURITIES |
| $ | 34,497,466 |
| $ | 34,012,978 |
| $ | 484,488 |
| — |
|
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
|
| TOTAL FUND |
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| |||
Alger Analyst Fund |
|
|
|
|
|
|
|
|
| |||
COMMON STOCKS |
|
|
|
|
|
|
|
|
| |||
Consumer Discretionary |
| $ | 308,930 |
| $ | 308,930 |
| — |
| — |
| |
Consumer Staples |
| 113,978 |
| 113,978 |
| — |
| — |
| |||
Energy |
| 74,280 |
| 74,280 |
| — |
| — |
| |||
Financials |
| 98,107 |
| 98,107 |
| — |
| — |
| |||
Health Care |
| 491,642 |
| 455,547 |
| 36,095 |
| — |
| |||
Industrials |
| 113,071 |
| 113,071 |
| — |
| — |
| |||
Information Technology |
| 490,162 |
| 490,162 |
| — |
| — |
| |||
Materials |
| 48,640 |
| 48,640 |
| — |
| — |
| |||
Telecommunication Services |
| 27,105 |
| 27,105 |
| — |
| — |
| |||
TOTAL COMMON STOCKS |
| 1,765,915 |
| 1,729,820 |
| 36,095 |
| — |
| |||
|
|
|
|
|
|
|
|
|
| |||
SHORT-TERM INVESTMENTS |
|
|
|
|
|
|
|
|
| |||
TIME DEPOSITS |
| 227,664 |
| 227,664 |
| — |
| — |
| |||
TOTAL INVESTMENTS IN SECURITIES |
| $ | 1,993,579 |
| $ | 1,957,484 |
| $ | 36,095 |
| — |
|
|
| TOTAL FUND |
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| |||
Alger International Opportunities Fund |
|
|
|
|
|
|
|
|
| |||
COMMON STOCKS |
|
|
|
|
|
|
|
|
| |||
Consumer Discretionary |
| 213,822 |
| 20,100 |
| 193,722 |
| — |
| |||
Consumer Staples |
| 135,839 |
| 30,239 |
| 105,600 |
| — |
| |||
Energy |
| 247,191 |
| 72,010 |
| 175,181 |
| — |
| |||
Financials |
| 256,481 |
| 80,357 |
| 176,124 |
| — |
| |||
Health Care |
| 410,528 |
| 52,772 |
| 357,756 |
| — |
| |||
Industrials |
| 268,440 |
| 32,196 |
| 236,244 |
| — |
| |||
Information Technology |
| 454,978 |
| 309,600 |
| 145,378 |
| — |
| |||
Materials |
| 199,410 |
| 68,076 |
| 131,334 |
| — |
| |||
Telecommunication Services |
| 86,884 |
| — |
| 86,884 |
| — |
| |||
Utilities |
| 50,301 |
| — |
| 50,301 |
| — |
| |||
TOTAL COMMON STOCKS |
| 2,323,874 |
| 665,350 |
| 1,658,524 |
| — |
| |||
|
|
|
|
|
|
|
|
|
| |||
CONVERTIBLE PREFERRED STOCK |
|
|
|
|
|
|
|
|
| |||
Materials |
| 15,786 |
| 15,786 |
| — |
| — |
| |||
SHORT-TERM INVESTMENTS |
|
|
|
|
|
|
|
|
| |||
TIME DEPOSITS |
| 115,870 |
| 115,870 |
| — |
| — |
| |||
TOTAL INVESTMENTS IN SECURITIES |
| $ | 2,455,530 |
| $ | 797,006 |
| $ | 1,658,524 |
|
|
|
NOTE 9 — Derivatives:
Financial Accounting Standards Board Accounting Standards Codification 815 — Derivatives and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The application of ASC 815 is required for fiscal years and interim periods beginning after November 15, 2008. The Trust early adopted the provisions of ASC 815 on November 1, 2008.
Forward currency contracts—In connection with portfolio purchases and sales of securities denominated in foreign currencies, the Funds may enter into forward currency contracts. Additionally, each Fund may enter into such contracts to economically hedge certain other foreign currency denominated investments. These contracts are valued at the
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
current cost of covering or offsetting such contracts, and the related realized and unrealized foreign exchange gains and losses are included in the statement of operations. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations.
Options—In order to produce incremental earnings or protect against changes in the value of portfolio securities, the Funds may buy and sell put and call options, write covered call options on portfolio securities and write cash-secured put options.
The Funds purchase put options or writes covered call options for speculative purposes or to economically hedge against adverse movements in the value of portfolio holdings. The Funds will segregate assets to cover its obligations under option contracts.
NOTE 10 — 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.
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 11 — Subsequent Event:
Management of each Fund has evaluated events that have occurred subsequent to October 31, 2009 through December 23, 2009, the date that these financial statements were issued. No such events have been identified which require recognition and disclosure as of October 31, 2009.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of
The Alger Funds II:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of The Alger Funds II comprising the Alger Green Fund, Alger Analyst Fund, and Alger International Opportunities Fund as of October 31, 2009, and the related statements of operations, changes in net assets and the financial highlights for the year then ended. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Alger Spectra Fund (one of the portfolios of The Alger Funds II) as of October 31, 2009, and the related statements of operations, changes in net assets, cash flows and the financial highlights for the year then ended. The Alger Spectra Fund, Alger Green Fund, Alger Analyst Fund, and Alger International Opportunities Fund collectively are referred to as the “Funds”. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The Funds’ statements of changes in net assets for the period ended October 31, 2008, and the financial highlights for the respective periods ended October 31, 2008 were audited by other auditors, whose reports dated December 16, 2008, expressed unqualified opinions on such statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Alger Green Fund, Alger Analyst Fund and Alger International Opportunities Fund as of October 31, 2009, the results of their operations, the changes in their net assets, and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above, present fairly, in all material respects, the financial position of the Alger Spectra Fund as of October 31, 2009, the results of its operations, the changes in its net assets, its cash flows and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
New York, New York
December 23, 2009
THE ALGER FUNDS II
ADDITIONAL INFORMATION (Unaudited)
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: transaction costs, if applicable, including sales charges (loads) and redemption fees; and ongoing costs, including management fees, distribution (12b-1) fees, if applicable, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning of the six-month period starting May 1, 2009 and ending October 31, 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.
|
|
|
|
|
|
|
| Ratio of |
| ||||
|
|
|
|
|
|
|
| Expenses to |
| ||||
|
|
|
|
|
|
|
| Average |
| ||||
|
|
|
|
|
| Expenses |
| Net Assets |
| ||||
|
|
|
|
|
| Paid During |
| For the |
| ||||
|
| Beginning |
| Ending |
| the Six Months |
| Six Months |
| ||||
|
| Account |
| Account |
| Ended |
| Ended |
| ||||
|
| Value |
| Value |
| October 31, |
| October 31, |
| ||||
|
| May 1, 2009 |
| October 31, 2009 |
| 2009(a) |
| 2009(b) |
| ||||
Alger Spectra Fund |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Class A | Actual |
| $ | 1,000.00 |
| $ | 1,290.30 |
| $ | 10.97 |
| 1.90 | % |
| Hypothetical(c) |
| 1,000.00 |
| 1,015.63 |
| 9.65 |
| 1.90 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
Class C | Actual |
| 1,000.00 |
| 1,283.70 |
| 14.28 |
| 2.48 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,012.70 |
| 12.58 |
| 2.48 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
Class I | Actual |
| 1,000.00 |
| 1,289.10 |
| 8.37 |
| 1.45 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,017.90 |
| 7.38 |
| 1.45 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
Alger Green Fund |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Class A | Actual |
| $ | 1,000.00 |
| $ | 1,213.00 |
| $ | 6.97 |
| 1.25 | % |
| Hypothetical(c) |
| 1,000.00 |
| 1,018.90 |
| 6.36 |
| 1.25 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
Class C | Actual |
| 1,000.00 |
| 1,209.30 |
| 11.14 |
| 2.00 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,015.12 |
| 10.16 |
| 2.00 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
Class I | Actual |
| 1,000.00 |
| 1,213.00 |
| 6.97 |
| 1.25 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,018.90 |
| 6.36 |
| 1.25 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
Alger Analyst Fund |
|
|
|
|
|
|
|
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Class A | Actual |
| $ | 1,000.00 |
| $ | 1,188.10 |
| $ | 6.62 |
| 1.20 | % |
| Hypothetical(c) |
| 1,000.00 |
| 1,019.16 |
| 6.11 |
| 1.20 |
| |||
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| |||
Class C | Actual |
| 1,000.00 |
| 1,183.00 |
| 10.73 |
| 1.95 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,015.38 |
| 9.91 |
| 1.95 |
| |||
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Class I | Actual |
| 1,000.00 |
| 1,186.70 |
| 6.61 |
| 1.20 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,019.16 |
| 6.11 |
| 1.20 |
| |||
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Alger International Opportunities Fund |
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Class A | Actual |
| $ | 1,000.00 |
| $ | 1,188.10 |
| $ | 9.10 |
| 1.65 | % |
| Hypothetical(c) |
| 1,000.00 |
| 1,016.89 |
| 8.39 |
| 1.65 |
| |||
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Class C | Actual |
| 1,000.00 |
| 1,235.00 |
| 13.52 |
| 2.40 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,013.11 |
| 12.18 |
| 2.40 |
| |||
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Class I | Actual |
| 1,000.00 |
| 1,240.30 |
| 7.91 |
| 1.40 |
| |||
| Hypothetical(c) |
| 1,000.00 |
| 1,018.15 |
| 7.12 |
| 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 184/365 (to reflect the one-half year period). |
(b) | Annualized |
(c) | 5% annual return before expenses. |
Tax Information
In accordance with subchapter M of the Internal Revenue Code of 1986, as amended, for the year ended October 31, 2009, 0% of the Alger International Opportunities Fund’s ordinary dividend qualified for the dividends received deduction for corporations. For the year ended October 31, 2009, certain dividends paid by the Funds may be subject to a maximum rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, the following represents the maximum amount that may be considered qualified dividend income:
Alger International Opportunities Fund |
| $ | 29,168 |
|
Shareholders should not use the above information to prepare their tax returns. Since the Fund’s fiscal year is not the calendar year, another notification will be sent with respect to calendar year 2009. Such notification, which will reflect the amount to be used by tax payers on their federal income tax returns, will be made in conjunction with Form 1099 DIV and will be mailed in January 2010. Shareholders are advised to consult their own tax advisers with respect to the tax consequences of their investment in the Fund.
Trustees and Officers of the Fund
Information about the trustees and officers of the Fund is set forth below. In the table the term “Alger Fund Complex” refers to the Fund, The Alger Funds, The Alger Portfolios, Alger Institutional Funds, and Alger China-U.S. Growth, each of which is a registered investment company managed by Fred Alger Management, Inc. (“Alger Management”). Each Trustee serves until an event of termination, such as death or resignation, or until his successor is duly elected; each officer’s term of office is one year. Unless otherwise noted, the address of each person named below is 111 Fifth Avenue, New York, NY 10003.
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| Funds in |
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| the Alger |
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| Fund |
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| Trustee |
| Complex |
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| and/or |
| which are |
Name, Age, Position with the |
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| Officer |
| Overseen |
Fund |
| Principal Occupations |
| Since |
| by Trustee |
INTERESTED TRUSTEE |
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Hilary M. Alger (48) |
| Director of Development, Pennsylvania Ballet since 2004; Associate Director of Development, College of Arts and Sciences and Graduate School, University of Virginia 1999-2003. |
| 2003 |
| 27 |
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NON-INTERESTED TRUSTEE |
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Charles F. Baird, Jr. (56) |
| Managing Partner of North Castle Partners, a private equity securities group; Chairman of Leiner Health Products, Enzymatic Therapy and Caleel & Hayden (skincare business); former Chairman of Elizabeth Arden Day Spas, Naked Juice, Equinox (fitness company) and EAS (manufacturer of nutritional products). Formerly Managing Director of AEA Investors, Inc. |
| 2000 |
| 27 |
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Roger P. Cheever (64) |
| Associate Vice President for Principal Gifts, and Senior Associate Dean for Development in the Faculty of Arts and Sciences at Harvard University; Formerly Deputy Director of the Harvard College Fund. |
| 2000 |
| 27 |
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Lester L. Colbert Jr. (75) |
| Private investor since 1988; Formerly Chairman of the Board, President and Chief Executive Officer of Xidex Corporation (manufacturer of computer information media). |
| 2000 |
| 27 |
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Stephen E. O’Neil (77) |
| Attorney. Private Investor since 1981. Formerly of Counsel to the law firm of Kohler��& Barnes. |
| 1993 |
| 27 |
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David Rosenberg (47) |
| Associate Professor of Law since January 2006 (Assistant Professor 2000-2005), Zicklin School of Business, Baruch College, City University of New York. |
| 2007 |
| 27 |
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Nathan E. Saint-Amand M.D. (72) |
| Medical doctor in private practice; Member of the Board of the Manhattan Institute (non-profit policy research) since 1988; Formerly Co-Chairman, Special Projects Committee, Memorial Sloan Kettering. |
| 1993 |
| 27 |
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| Number of |
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| Funds in |
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| the Alger |
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| Fund |
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| Trustee |
| Complex |
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| and/or |
| which are |
Name, Age, Position with the |
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| Officer |
| Overseen |
Fund |
| Principal Occupations |
| Since |
| by Trustee |
OFFICERS |
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Dan C. Chung (47) |
| Chief Investment Officer and Director since 2001, and Chief Executive Officer since 2006, of Alger Management; President since 2003 of Alger Associates, Inc. (“Associates”); President and Director since 2003 of Fred Alger International Advisory S.A. (“International”); President since 2003 and Director since 2003 of Analysts Resources, Inc. (“Resources”); Formerly Trustee of the Trust from 2001 to 2007. |
| 2001 |
| N/A |
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Michael D. Martins (44) |
| Senior Vice President of Alger Management; Assistant Treasurer since 2004. |
| 2005 |
| N/A |
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Hal Liebes (45) |
| Executive Vice President, Chief Legal Officer, Chief Operating Officer and Secretary of Alger Management; Director since 2006 of International and Resources. Formerly Chief Compliance Officer 2004- 2005, AMVESCAP PLC. |
| 2005 |
| N/A |
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Lisa A. Moss (44) |
| Senior Vice President since 2009, and Vice President and Assistant General Counsel of Alger Management since June 2006. Formerly Director of Merrill Lynch Investment Managers, L.P. from 2005-2006. |
| 2006 |
| N/A |
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Anthony S. Caputo (54) |
| Employed by Alger Management since 1986, currently serving as Vice President. |
| 2007 |
| N/A |
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Sergio M. Pavone (48) |
| Employed by Alger Management since 2002, currently serving as Vice President. |
| 2007 |
| N/A |
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Barry J. Mullen (56) |
| Senior Vice President and Director of Compliance of Alger Management since May 2006. Formerly Director of BlackRock, Inc. from 2004-2006. |
| 2006 |
| N/A |
Ms. Alger is an “interested person” (as defined in the Investment Company Act) of the Fund because of her affiliations with Alger Management. No Trustee is a director of any public company except as indicated under “Principal Occupations”.
The Statement of Additional Information contains additional information about the Fund’s Trustees and is available without charge upon request by calling (800) 992-3863.
Investment Management Agreement Renewal
At an in-person meeting held on September 22, 2009, the Trustees of The Alger Funds II (the “Trust”), including the Independent Trustees, unanimously approved renewal of the Investment Advisory Agreement between the Trust and Alger Management (the “Agreement”). The Independent Trustees were assisted in their review by independent legal counsel and met with such counsel in executive session separate from representatives of Alger Management.
In evaluating the Agreement, the Trustees drew on materials that they had requested and which were provided to them in advance of the meeting by Alger Management and by counsel. The materials covered, among other matters, (i) the nature, extent and quality of the services provided by Alger Management under the Agreement, (ii) the investment performance of the Trust’s portfolios (each a “Fund”), (iii) the costs to Alger Management of its services and the profits realized by Alger Management and Alger Inc. from their relationship with the Trust, and (iv) the extent to which economies of scale would be realized if and as the Funds grow and whether the fee levels in the Agreement reflect these economies of scale. These materials included an analysis of the Funds and Alger Management’s services by Callan Associates Inc. (“Callan”), an independent consulting firm whose specialties include assistance to fund trustees and directors in their review of advisory contracts pursuant to section 15(c) of the 1940 Act. At the meeting, senior Callan personnel provided a presentation to the Trustees based on the Callan materials. At the outset of the presentation the Trustees were informed that from time to time Callan may recommend Alger Management to certain of Callan’s consulting or other clients as an investment adviser and that this fact might be deemed to give rise to a potential conflict of interest for Callan in its services to the Trust.
In deciding whether to approve renewal of the Agreement, the Trustees considered various factors, including those enumerated above. They also considered other direct and indirect benefits to Alger Management and its affiliates from their relationship with the Trust.
Nature, Extent and Quality of Services. In considering the nature, extent and quality of the services provided by Alger Management pursuant to the Agreement, the Trustees relied on their prior experience as Trustees of the Trust, their familiarity with the personnel and resources of Alger Management and its affiliates, and the materials provided at the meeting. They noted that under the Agreement Alger Management is responsible for managing the investment operations of the Funds. They also noted that administrative, compliance, reporting and accounting services necessary for the conduct of the Trust’s affairs are provided under the separate Administration Agreement with Alger Management. The Trustees reviewed the background and experience of Alger Management’s senior investment management personnel, including the individuals currently responsible for the investment operations of the Funds. They also considered the resources, operational structures and practices of Alger Management in managing each Fund’s portfolio, as well as Alger Management’s overall investment management business. They noted especially Alger Management’s established expertise in managing portfolios of “growth” stocks and that, according to an analysis provided by Callan, the characteristics of each Fund had been typical of a fund that holds itself out to investors as growth-
oriented. The Trustees concluded that Alger Management’s experience, resources and strength in the areas of importance to the Funds are considerable. The Trustees considered the level and depth of Alger Management’s ability to execute portfolio transactions to effect investment decisions, including those through Alger Inc. The Trustees also considered the ongoing enhancements to the control and compliance environment at Alger Management and within the Trust.
Investment Performance of the Funds. Drawing upon information provided at the meeting by Alger Management as well as Callan and upon reports provided to the Trustees by Alger Management throughout the preceding year, the Trustees reviewed each Fund’s returns for the year-to-date (at 8/31/09), second-quarter, and 1-, 3-, 5-, and 10-year periods to the extent available (and its year-by-year returns) and compared them with benchmark and peer-group data for the same periods. They noted that, for the reported periods predating 2009, one of the Funds, Spectra Fund, outperformed its benchmark and placed above the median for its peer group in almost all such periods (usually by a wide margin), while others’ performance by these measures was mixed, but that for the year to date each of the Funds outperformed its benchmark and all but one, International Opportunities Fund, placed above the median in its peer group.
Fund Fees and Expense Ratios; Profitability to Alger Management and its Affiliates. The Trustees considered the profitability of the Investment Advisory Agreement to Alger Management and its affiliates, and the methodology used by Alger Management in determining such profitability. The Trustees reviewed previously-provided data on each Fund’s profitability to Alger Management and its affiliates for the year ended June 30, 2009. In addition, the Trustees reviewed each Fund’s management fee and expense ratio and compared them with a group of comparable funds. In order to assist the Trustees in this comparison, Callan had provided the Trustees with comparative information with respect to fees paid, and expense ratios incurred, by similar funds. That information indicated that the fee and expense ratio for Spectra Fund were significantly higher than most of the fees and expense ratios in the Callan reference group. The expense ratios for most classes of the other Funds and their fees were also above the respective medians. The Trustees determined that this information should be taken into account in weighing the size of the fee against the nature, extent and quality of the services provided. After discussing with representatives of the Adviser and Callan the methodologies used in computing the costs that formed the bases of the profitability calculations, the Trustees turned to the profitability data provided. After analysis and discussion, they concluded that, to the extent that Alger Management’s and its affiliates’ relationships with the Funds had been profitable to either or both of those entities, the profit margin in each case was not unacceptable.
Economies of Scale. On the basis of their discussions with management and their analysis of information provided at the meeting, the Trustees determined that the nature of the Funds and their operations is such that Alger Management is likely to realize economies of scale in the management of the Funds at some point as each grows in size, but that adoption of breakpoints in one or more advisory fees, while possibly appropriate at a later date, could await further analysis of the sources and potential scale of the economies and the fee structure that would best reflect them. Accordingly, the Trustees requested that Alger Management address this topic with the Trustees at future meetings.
Other Benefits to Alger Management. The Trustees considered whether Alger Management benefits in other ways from its relationship with the Trust. They noted that Alger Management maintains soft-dollar arrangements in connection with the Funds’ brokerage transactions, reports on which are regularly supplied to the Trustees at their quarterly meetings and summaries of which, listing soft-dollar commissions by Fund for the six months through June 30, 2009 and the twelve months through December 31, 2008, had been included in the materials supplied prior to the meeting. The Trustees also noted that Alger, Inc. provides a substantial portion of the Funds’ equity brokerage and receives shareholder servicing fees from the Funds as well. The Trustees had been provided with information regarding, and had considered, the brokerage and shareholder servicing fee benefits in connection with their review of the profitability to Alger Management and its affiliates of their relationships with the Funds. As to other benefits received, the Trustees decided that none were so significant as to render Alger Management’s fees excessive.
Conclusions and Determinations. At the conclusion of these discussions, each of the Independent Trustees expressed the opinion that he had been furnished with sufficient information to make an informed business decision with respect to renewal of the Trust’s Investment Advisory Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations, as to each Fund:
· The Board concluded that the nature, extent and quality of the services provided by Alger Management are adequate and appropriate.
· The Board was satisfied with the performance of the Funds.
· The Board concluded that each advisory fee paid to Alger Management was reasonable in light of comparative performance and expense and advisory fee information, costs of the services provided and profits to be realized and benefits derived or to be derived by Alger Management from the relationship with the applicable Fund.
· The Board determined that there were not at this time significant economies of scale to be realized by Alger Management in managing the Funds’ assets but that, to the extent that material economies of scale should be realized in the future, the Board would seek to ensure that they were shared with the applicable Fund.
The Board considered these conclusions and determinations and, without any one factor being dispositive, determined with respect to each Fund that renewal of the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.
Privacy Policy
Your Privacy Is Our Priority
At Fred Alger & Company, Incorporated (“Alger”) we value the confidence you have placed in us. In trusting us with your assets, you provide us with personal and financial
data. Alger is committed to maintaining the confidentiality of the personal nonpublic information (“personal information”) entrusted to us by our customers. Your privacy is very important to us, and we are dedicated to safeguarding your personal information as we serve your financial needs.
Our Privacy Policy
We believe you should know about Alger’s Privacy Policy and how we collect and protect your personal information. This Privacy Policy (“Policy”) describes our practices and policy for collecting, sharing and protecting the personal information of our prospective, current and former customers. The Policy is applicable to Alger and its affiliate, Fred Alger Management, Inc., as well as the following funds: The Alger Funds, The Alger Institutional Funds, The Alger Portfolios, Alger China-U.S. Growth Fund and The Alger Funds II. We are proud of our Policy and hope you will take a moment to read about it.
Information We Collect
The type of personal information we collect and use varies depending on the Alger products or services you select.
We collect personal information that enables us to serve your financial needs, develop and offer new products and services, and fulfill legal and regulatory requirements. Depending on the products or services you request, we obtain personal information about you from the following sources:
· Information, such as your name, address and social security number, provided on applications and other forms we receive from you or your representative;
· Information from your communications with Alger employees or from your representative, which may be provided to us by telephone, in writing or through Internet transactions; and
· Information about your transactions, such as the purchase and redemption of fund shares, account balances and parties to the transactions, which we receive from our affiliates or other third parties.
Sharing of Personal Information
We may share your personal information with our affiliates so that they may process and service your transactions.
However, Alger never sells customer lists to any third party. Further, we do not disclose personal information to nonaffiliated third parties, except as required by law or as permitted by law to service your account, such as follows:
· To third-party service providers that assist us in servicing your accounts (e.g. securities clearinghouses);
· To governmental agencies and law enforcement officials (e.g. valid subpoenas, court orders); and
· To financial institutions that perform marketing services on our behalf or with whom we have joint marketing agreements that provide for the confidentiality of personal information.
Our Security Practices
We protect your personal information by maintaining physical, electronic and procedural safeguards. When you visit Alger’s Internet sites your information is protected by our systems that utilize 128-bit data encryption, Secure Socket Layer (SSL) protocol, user names, passwords and other precautions. We have implemented safeguards to ensure that access to customer information is limited to employees, such as customer service representatives, who require such information to carry out their job responsibilities. Our employees are aware of their strict responsibility to respect the confidentiality of your personal information.
Thank you for choosing to invest with Alger. We value your relationship with us and assure you we will abide by our policy to protect your information.
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.
(This page has been intentionally left blank.)
THE ALGER FUNDS II
111 Fifth Avenue
New York, NY 10003
(800) 992-3863
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 II. It is not authorized for distribution to prospective investors unless accompanied by an effective Prospectus for the Trust, which contains information concerning the Trust’s investment policies, fees and expenses as well as other pertinent information.
SAS 103109
ITEM 2. CODE OF ETHICS.
(a) The Registrant has adopted a code of ethics (the “Code of Ethics”) that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
(b) Not applicable.
(c) The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.
(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.
(e) Not applicable.
(f) The Registrant’s Code of Ethics is attached as an Exhibit hereto.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the Registrant determined that Stephen E. O’Neil is an audit committee finan cial expert (within the meaning of that phrase specified in the instructions to Form N-CSR) on the Registrant’s audit committee. Mr. O’Neil is an “independent” trustee — i.e., he is not an interested person of the Registrant as defined in the Investment Company Act of 1940, nor has he accepted directly or indirectly any consulting, advisory or other compensatory fee from the Registrant, other than in his capacity as Trustee.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
a) Audit Fees:
October 31, 2009 |
| $ | 106,500 |
|
October 31, 2008 |
| $ | 131,250 |
|
b) Audit-Related Fees: NONE
c) Tax Fees for tax advice, tax compliance and tax planning:
October 31, 2009 |
| $ | 18,250 |
|
October 31, 2008 |
| $ | 17,700 |
|
d) All Other Fees:
October 31, 2009 |
| $ | 6,000 |
|
October 31, 2008 |
| $ | 16,100 |
|
Other fees include a review and consent for Registrants registration statement filing and a review of the semi-annual financial statements.
e) 1) Audit Committee Pre-Approval Policies And Procedures:
Audit and non-audit services provided by the Registrant’s independent registered public accounting firm (the “Auditors”) on behalf the Registrant must be pre-approved by the Audit Committee. Non-audit services provided by the Auditors on behalf of the Registrant’s Investment Adviser or any entity controlling, controlled by, or under common control with the Investment Adviser must be pre-approved by the Audit Committee if such non-audit services directly relate to the operations or financial reporting of the Registrant.
2) All fees in item 4(b) through 4(d) above were approved by the Registrants’ Audit Committee.
f) Not Applicable
g) Non-Audit Fees:
October 31, 2009 |
| $145,700 |
|
October 31, 2008 |
| $282,950 and 15,068 Euros |
|
h) The audit committee of the board of trustees has considered whether the provision of the non-audit services that were rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control, with the adviser that provides ongoing services to the registrant that were not approved pursuant to (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principle accountant’s independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. INVESTMENTS.
Not applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this document.
(b) No changes in the Registrant’s internal control over financial reporting occurred during the Registrant’s second fiscal half-year that materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Code of Ethics as Exhibit 99.CODE ETH
(a) (2) Certifications of principal executive officer and principal financial officer as required by rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT
(b) Certifications of principal executive officer and principal financial officer as required by rule 30a-2(b) under the Investment Company Act of 1940 are attached as Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Alger Funds II |
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By: | /s/Dan C. Chung |
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Dan C. Chung |
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President |
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Date: December 22, 2009 |
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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 |
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Dan C. Chung |
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President |
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Date: December 22, 2009 |
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By: | /s/Michael D. Martins |
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Michael D. Martins |
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Treasurer |
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Date: December 22, 2009 |
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