UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7986
The Alger Institutional Fund
----------------------------
(Exact name of registrant as specified in charter)
111 Fifth Avenue, New York, New York 10003
------------------------------------------
(Address of principal executive offices) (Zip code)
MR. GREGORY S. DUCH
FRED ALGER MANAGEMENT, INC.
111 FIFTH AVENUE
NEW YORK, NY 10003
------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-806-8800
------------
Date of fiscal year end: October 31
Date of reporting period: April 30, 2003
Item 1. REPORTS TO STOCKHOLDERS
THE ALGER
INSTITUTIONAL FUND
(FORMERLY THE ALGER RETIREMENT FUND)
ALGER LARGECAP GROWTH INSTITUTIONAL PORTFOLIO
ALGER SMALL CAP INSTITUTIONAL PORTFOLIO
ALGER MIDCAP GROWTH INSTITUTIONAL PORTFOLIO
ALGER CAPITAL APPRECIATION INSTITUTIONAL PORTFOLIO
ALGER BALANCED INSTITUTIONAL PORTFOLIO
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL PORTFOLIO
SEMI-ANNUAL REPORT
APRIL 30, 2003
(UNAUDITED)
[LOGO]
Dear Shareholders,
June 16, 2003
Slow, steady economic growth; reliable consumers; tentative corporations;
and war. That is the short answer to the question: what happened during the six
months ended April 30? The last two months of 2002 saw the equity markets
recover from their lows of October 9, though a significant portion of those
gains were in technology stocks and were then given up in the first weeks of
2003 because the fundamentals had not yet improved.
However, throughout this period, the economy remained in a steady growth
pattern. It was not a dramatic period. Consumer spending accounted for most of
the economic growth. Consumers were aided by historically low interest rates,
already well below 4% on the 10-year note by April and continually decreasing
thereafter. Low rates led to another wave of mortgage refinancing, which put
more money in people's pockets. That refinancing boom, combined with increased
federal spending, tax cuts, and a Federal Reserve that has kept short-term rates
very low, buoyed consumer spending during a time of weak employment, tentative
companies, and tumultuous international affairs.
A cold and snowy February of 2003 combined with rising tension and concern
about Iraq dampened economic activity across the board. Consumers pared back
purchases on certain items, and companies were loathe to undertake capital
expenditures ahead of the war. As a result, the economy grew at an annual rate
of less than 2% for the first quarter of 2003. However, when it became clear in
early March that war was inevitable, the markets rallied. It is often said that
the markets hate uncertainty. The rally that began in March was certainly a
testament to that notion. The markets seesawed during the uncertain first days
of the war, but then resumed their upward movement as Saddam Hussein's regime
crumbled. The result was that from November 1, 2002 through April 30, 2003, the
Dow rose 2.1%, the S&P 500 was up 4.5%, and the NASDAQ gained 10.1%.
Now, for the first time in over two years, Wall Street has begun to look
to the future. Companies that can show healthy balance sheets and an ability to
improve productivity and expand their businesses are becoming attractive to
investors. That is as it should be, but it has not been the case for quite a
while. The markets and the country in general are beginning to emerge from two
years that included a recession, terrorism, war, and corporate scandals.
Sentiment has slowly been shifting away from fear and toward guarded hope. That
shift should lead to support for higher levels for the equity markets. That does
not mean a return to irrational exuberance, but it does mean a more balanced
market where good companies and good stock picking are rewarded.
Respectfully submitted,
/s/ Dan C. Chung
Dan C. Chung
Chief Investment Officer
THE ALGER INSTITUTIONAL FUND -2-
ALGER LARGECAP GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2003
SHARES COMMON STOCKS--95.2% VALUE
--------- --------
AUTOMOTIVE--1.6%
26,700 Harley-Davidson, Inc. ............................... $ 1,186,548
-----------
BANKS--1.1%
32,150 Mellon Financial Corporation ........................ 850,367
-----------
BIOTECHNOLOGY--4.0%
17,888 Amgen Inc.* ......................................... 1,096,713
30,700 Biogen, Inc.* ....................................... 1,166,293
18,500 Genzyme Corp.--General Division* .................... 745,180
-----------
3,008,186
-----------
COMMERCIAL SERVICES & SUPPLIES--1.9%
103,400 Concord EFS, Inc.* .................................. 1,430,022
-----------
COMMUNICATION EQUIPMENT--5.3%
132,500 Cisco Systems, Inc.* ................................ 1,992,800
119,575 Nokia Corporation, ADR .............................. 1,981,358
-----------
3,974,158
-----------
COMPUTERS & PERIPHERALS--5.0%
50,175 Dell Computer Corporation* .......................... 1,450,559
138,700 EMC Corporation* .................................... 1,260,783
320,500 Sun Microsystems, Inc.* ............................. 1,057,650
-----------
3,768,992
-----------
DIVERSIFIED FINANCIALS--4.0%
15,900 Affiliated Managers Group, Inc.*+ ................... 736,329
38,675 Citigroup Inc. ...................................... 1,517,994
19,200 Merrill Lynch & Co., Inc. ........................... 788,160
-----------
3,042,483
-----------
ENERGY EQUIPMENT & SERVICES--.5%
10,300 BJ Services Company* ................................ 376,053
-----------
FREIGHT & LOGISTICS--1.8%
22,300 FedEx Corp. ......................................... 1,335,324
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--4.7%
27,850 Alcon, Inc.*+ ....................................... 1,226,793
27,775 Boston Scientific Corporation* ...................... 1,195,714
23,850 Zimmer Holdings, Inc.* .............................. 1,118,565
-----------
3,541,072
-----------
HEALTH CARE PROVIDERS & SERVICES--3.0%
38,150 HCA Inc. ............................................ 1,224,615
11,550 UnitedHealth Group Incorporated ..................... 1,064,101
-----------
2,288,716
-----------
INDUSTRIAL CONGLOMERATES--5.8%
76,950 General Electric Company ............................ 2,266,177
135,200 Tyco International Ltd. ............................. 2,109,120
-----------
4,375,297
-----------
THE ALGER INSTITUTIONAL FUND -3-
ALGER LARGECAP GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
INSURANCE--3.7%
16,000 AFLAC Incorporated .................................. $ 523,360
30,550 American International Group, Inc. .................. 1,770,372
33,400 Travelers Property Casualty Corp. Cl. A ............. 542,082
-----------
2,835,814
-----------
INTERNET & CATALOG RETAIL--4.2%
14,200 Amazon.com, Inc.* ................................... 407,114
22,450 eBay Inc.* .......................................... 2,082,687
24,000 USA Interactive*+ ................................... 718,800
-----------
3,208,601
-----------
INTERNET SOFTWARE & SERVICES--1.0%
29,000 Yahoo! Inc.* ........................................ 718,620
-----------
MEDIA--3.5%
48,250 Disney (Walt) Company ............................... 900,345
41,075 Viacom Inc. Cl. B* .................................. 1,783,066
-----------
2,683,411
-----------
MULTILINE RETAIL--2.7%
36,450 Wal-Mart Stores, Inc. ............................... 2,052,864
-----------
OIL & GAS--1.8%
28,825 Devon Energy Corporation ............................ 1,361,981
-----------
PERSONAL PRODUCTS--1.0%
13,300 Avon Products, Inc. ................................. 773,661
-----------
PHARMACEUTICALS--13.1%
35,450 Abbott Laboratories ................................. 1,440,334
56,600 Bristol-Myers Squibb Company ........................ 1,445,564
36,525 Johnson & Johnson ................................... 2,058,549
25,000 Merck & Co., Inc. ................................... 1,454,500
62,860 Pfizer Inc. ......................................... 1,932,945
9,100 Teva Pharmaceutical Industries Ltd. ADR+ ............ 424,970
25,500 Wyeth ............................................... 1,110,015
-----------
9,866,877
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS--6.0%
24,850 Applied Materials, Inc.* ............................ 362,810
101,300 Intel Corporation ................................... 1,863,920
32,950 Linear Technology Corporation ....................... 1,135,786
139,370 Taiwan Semiconductor Manufacturing Company
Ltd. ADR*+ ........................................ 1,166,527
-----------
4,529,043
-----------
SOFTWARE--9.5%
96,650 Microsoft Corporation ............................... 2,471,341
155,600 Oracle Corporation* ................................. 1,848,528
23,750 Synopsys, Inc.* ..................................... 1,155,200
75,700 VERITAS Software Corporation* ....................... 1,666,157
-----------
7,141,226
-----------
THE ALGER INSTITUTIONAL FUND -4-
ALGER LARGECAP GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SPECIALTY RETAIL--7.0%
46,700 Best Buy Co., Inc.* ................................ $ 1,614,886
108,400 Gap, Inc.+ ......................................... 1,802,692
40,200 Home Depot, Inc. ................................... 1,130,826
16,375 Lowe's Companies, Inc. ............................. 718,699
-----------
5,267,103
-----------
WIRELESS TELECOMMUNICATION SERVICES--3.0%
113,300 Vodafone Group PLC Sponsored ADR+ .................. 2,238,808
-----------
Total Common Stocks
(Cost $66,241,174) ............................... 71,855,227
-----------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--10.7%
---------
U.S. GOVERNMENT & AGENCY OBLIGATIONS--4.8%
$3,550,000 Federal National Mortgage Association 1.25%, 5/1/03
(Cost $3,550,000) ................................ 3,550,000
-----------
SHARES OTHER SHORT-TERM INVESTMENTS--5.9%
---------
4,478,579 Securities Lending Quality Trust
(Cost $4,478,579)(b) ............................. 4,478,579
-----------
Total Short-Term Investments
(Cost $8,028,579) ................................ 8,028,579
-----------
Total Investments
(Cost $74,269,753)(a) ................................. 105.9% 79,883,806
Liabilities in Excess of Other Assets ................... (5.9) (4,435,153)
----- -----------
Net Assets .............................................. 100.0% $75,448,653
===== ===========
- ----------
* Non-income producing security.
+ Securities Partially or Fully on Loan.
(a) At April 30, 2003, the net unrealized depreciation on investments, based on
cost for federal income tax purposes of $81,248,972, amounted to $1,365,166
which consisted of aggregate gross unrealized appreciation of $4,650,807 and
aggregate gross unrealized depreciation of $6,015,973.
(b) Represents investment of cash collateral received for securities on loan.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUND -5-
ALGER SMALL CAP INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2003
SHARES COMMON STOCKS--93.0% VALUE
--------- --------
AEROSPACE & DEFENSE--2.2%
15,050 Alliant Techsystems Inc.* ........................... $ 808,486
38,550 Veridian Corporation* ............................... 732,065
-----------
1,540,551
-----------
AIR FREIGHT & LOGISTICS--2.6%
24,700 J.B. Hunt Transport Services, Inc.* ................. 853,385
56,830 Pacer International, Inc.* .......................... 903,597
-----------
1,756,982
-----------
AUTO COMPONENTS--.4%
5,050 BorgWarner, Inc. .................................... 296,283
-----------
BANKS--5.2%
30,300 BankAtlantic Bancorp, Inc. Cl. A .................... 349,056
38,750 Brookline Bancorp, Inc. ............................. 518,088
8,850 City National Corporation ........................... 364,354
29,300 Independence Community Bank Corp. ................... 766,195
15,000 Southwest Bancorporation of Texas, Inc.* ............ 509,700
42,900 UCBH Holdings, Inc. ................................. 1,091,376
-----------
3,598,769
-----------
BEVERAGES--1.2%
30,450 Constellation Brands, Inc. Cl. A* ................... 816,365
-----------
BIOTECHNOLOGY--4.0%
17,750 Affymetrix Inc.* .................................... 329,263
41,050 Alkermes, Inc.* ..................................... 409,679
28,400 BioMarin Pharmaceutical Inc.* ....................... 311,832
14,300 Charles River Laboratories International, Inc.* ..... 388,245
61,500 Millennium Pharmaceuticals, Inc.* ................... 676,500
6,900 Neurocrine Biosciences, Inc.* ....................... 312,225
12,000 QLT Inc.* ........................................... 139,680
3,735 Trimeris, Inc.* ..................................... 165,797
-----------
2,733,221
-----------
COMMERCIAL SERVICES & SUPPLIES--10.1%
26,800 Alliance Data Systems Corporation* .................. 562,800
62,450 Amdocs Limited* ..................................... 1,102,867
59,260 BISYS Group, Inc. (The)* ............................ 1,000,309
11,430 Career Education Corporation* ....................... 687,286
16,816 ChoicePoint Inc.* ................................... 593,268
23,250 Corinthian Colleges, Inc.* .......................... 1,064,617
18,050 Education Management Corporation* ................... 881,201
15,000 FTI Consulting, Inc.* ............................... 678,750
11,850 Hewitt Associates, Inc.* ............................ 328,364
-----------
6,899,462
-----------
THE ALGER INSTITUTIONAL FUND -6-
ALGER SMALL CAP INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
COMMUNICATION EQUIPMENT--1.5%
23,900 Emulex Corporation* ................................. $ 489,711
13,000 Foundry Networks, Inc.* ............................. 141,440
18,800 NetScreen Technologies, Inc.* ....................... 381,264
-----------
1,012,415
-----------
COMPUTERS & PERIPHERALS--.6%
41,000 Western Digital Corporation* ........................ 382,530
-----------
DIVERSIFIED FINANCIALS--3.5%
17,850 Affiliated Managers Group, Inc.* .................... 826,634
26,400 Doral Financial Corp. ............................... 1,056,264
40,350 First Niagara Financial Group Inc. .................. 490,252
-----------
2,373,150
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES--1.0%
16,900 Commonwealth Telephone Enterprises, Inc.* ........... 671,775
-----------
ELECTRICAL EQUIPMENT--1.2%
22,050 AMETEK, Inc. ........................................ 831,285
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.4%
16,780 Benchmark Electronics, Inc.* ........................ 435,441
10,350 FLIR Systems, Inc.* ................................. 539,028
-----------
974,469
-----------
ENERGY EQUIPMENT & SERVICES--2.4%
16,600 Cooper Cameron Corporation* ......................... 794,476
25,000 Smith International, Inc.* .......................... 889,000
-----------
1,683,476
-----------
FOOD PRODUCTS--1.1%
17,650 American Italian Pasta Company Cl. A* ............... 778,365
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--4.7%
29,850 CTI Molecular Imaging, Inc.*+ ....................... 548,046
18,600 Edwards Lifesciences Corporation* ................... 536,982
22,350 Respironics, Inc.* .................................. 858,687
35,220 STERIS Corporation* ................................. 799,494
25,160 Wright Medical Group, Inc.* ......................... 477,536
-----------
3,220,745
-----------
HEALTH CARE PROVIDERS & SERVICES--3.9%
30,220 Covance Inc.* ....................................... 535,801
33,400 LifePoint Hospitals, Inc.* .......................... 651,968
21,650 Mid Atlantic Medical Services, Inc.* ................ 942,857
31,000 VCA Antech, Inc.* ................................... 520,459
-----------
2,651,085
-----------
HOTELS, RESTAURANTS & LEISURE--4.5%
56,950 Alliance Gaming Corporation* ........................ 909,491
28,975 Applebee's International, Inc. ...................... 793,915
29,750 California Pizza Kitchen, Inc.* ..................... 599,760
36,600 Station Casinos, Inc.* .............................. 790,926
-----------
3,094,092
-----------
THE ALGER INSTITUTIONAL FUND -7-
ALGER SMALL CAP INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
INFORMATION TECHNOLOGY CONSULTING &
SERVICES--3.2%
32,900 Acxiom Corporation* ................................. $ 459,284
19,600 CACI International Inc. Cl. A* ...................... 684,628
14,400 Cognizant Technology Solutions Corporation Cl. A* ... 258,624
31,950 Manhattan Associates, Inc.* ......................... 772,870
-----------
2,175,406
-----------
INSURANCE--3.7%
25,750 Arch Capital Group Ltd.* ............................ 896,358
20,900 RenaissanceRe Holdings Ltd. ......................... 925,661
14,975 W. R. Berkley Corporation ........................... 695,439
-----------
2,517,458
-----------
INTERNET SOFTWARE & SERVICES--.8%
34,150 Digital Insight Corporation* ........................ 551,864
-----------
LEISURE EQUIPMENT & PRODUCTS--1.0%
25,100 Leapfrog Enterprises, Inc.* ......................... 670,170
-----------
MACHINERY--2.7%
21,600 Actuant Corporation Cl. A* .......................... 801,360
21,150 AGCO Corporation* ................................... 385,142
17,250 Pentair, Inc. ....................................... 664,815
-----------
1,851,317
-----------
MEDIA--3.6%
11,700 Entercom Communications Corp.* ...................... 568,503
15,240 Media General, Inc. Cl. A ........................... 837,590
31,600 Radio One, Inc. Cl. A* .............................. 490,748
32,850 TMP Worldwide, Inc.* ................................ 550,895
-----------
2,447,736
-----------
MULTILINE RETAIL--.5%
19,800 Nordstom, Inc. ...................................... 343,134
-----------
OIL & GAS--2.4%
22,950 Noble Energy, Inc. .................................. 761,940
22,600 Pogo Producing Company .............................. 894,960
-----------
1,656,900
-----------
PHARMACEUTICALS--5.6%
55,100 IVAX Corporation* ................................... 885,457
24,450 NPS Pharmaceuticals, Inc.* .......................... 465,773
17,700 Pharmaceutical Resources, Inc.* ..................... 777,915
16,500 Sepracor Inc.* ...................................... 315,975
38,200 SICOR Inc.* ......................................... 684,926
15,150 Taro Pharmaceutical Industries Ltd.* ................ 693,264
-----------
3,823,310
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS--6.3%
19,180 Cymer, Inc.* ........................................ 547,589
52,550 Fairchild Semiconductor International, Inc. Cl. A* .. 623,768
22,150 Integrated Circuit Systems, Inc.* ................... 481,098
THE ALGER INSTITUTIONAL FUND -8-
ALGER SMALL CAP INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (CONTINUED)
27,750 International Rectifier Corporation* ................ $ 627,705
30,900 Marvell Technology Group Ltd.* ...................... 713,141
15,000 Power Integrations, Inc.* ........................... 331,980
33,250 Semtech Corporation* ................................ 528,675
20,250 Varian Semiconductor Equipment Associates, Inc.* .... 466,762
-----------
4,320,718
-----------
SOFTWARE--6.0%
70,200 Borland Software Corporation* ....................... 636,714
39,300 Business Objects S.A. Sponsored ADR* ................ 853,989
26,100 Documentum, Inc.* ................................... 479,979
18,775 Fair, Isaac, Incorporation .......................... 977,802
53,500 J. D. Edwards & Company* ............................ 640,930
11,000 Synopsys, Inc.* ..................................... 535,040
-----------
4,124,454
-----------
SPECIALTY RETAIL--4.4%
36,700 AnnTaylor Stores Corporation* ....................... 868,322
31,400 Chico's FAS, Inc.* .................................. 764,276
21,550 Hollywood Entertainment Corporation* ................ 382,512
10,260 Rent-A-Center, Inc.* ................................ 658,692
12,200 Urban Outfitters, Inc.* ............................. 363,804
-----------
3,037,606
-----------
TEXTILES, APPAREL & LUXURY GOODS--1.3%
20,350 Coach, Inc.* ........................................ 885,429
-----------
Total Common Stocks
(Cost $57,073,827) ................................ 63,720,522
-----------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--6.4%
----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS
$4,350,000 Federal National Mortgage Association, 1.25%, 5/1/03
(Cost $4,350,000) ................................. 4,350,000
-----------
Total Investments
(Cost $61,423,827)(a) ................................. 99.4% 68,070,522
Other Assets in Excess of Liabilities ................... 0.6 432,807
----- -----------
Net Assets .............................................. 100.0% $68,503,329
===== ===========
- -----------
* Non-income producing security.
+ Securities Partially or Fully on Loan.
(a) At April 30, 2003, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $61,905,325, amounted to $6,165,197
which consisted of aggregate gross unrealized appreciation of $9,417,278 and
aggregate gross unrealized depreciation of $3,252,081.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUND -9-
ALGER MIDCAP GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2003
SHARES COMMON STOCKS -- 93.8% VALUE
--------- --------
AEROSPACE & DEFENSE--2.0%
124,875 L-3 Communications Holdings, Inc.* .................. $ 5,544,450
-----------
BANKS--1.0%
134,100 Synovus Financial Corp. ............................. 2,610,927
-----------
BEVERAGES--.5%
50,825 Constellation Brands, Inc. Cl. A* ................... 1,362,618
-----------
BIOTECHNOLOGY--5.1%
73,000 Biogen, Inc.* ....................................... 2,773,270
76,400 Genzyme Corp.--General Division* .................... 3,077,392
87,900 Gilead Sciences, Inc.* .............................. 4,055,706
135,050 IDEC Pharmaceuticals Corporation* ................... 4,422,887
-----------
14,329,255
-----------
COMMERCIAL SERVICES & SUPPLIES--8.5%
454,225 Amdocs Limited* ..................................... 8,021,614
497,275 BISYS Group, Inc. (The)* ............................ 8,394,002
157,350 Corinthian Colleges, Inc.* .......................... 7,205,057
-----------
23,620,673
-----------
COMMUNICATION EQUIPMENT--4.7%
536,400 Comverse Technology, Inc.* .......................... 7,010,748
120,000 Foundry Networks, Inc.* ............................. 1,305,600
746,300 Tellabs, Inc.* ...................................... 4,612,134
-----------
12,928,482
-----------
COMPUTERS & PERIPHERALS--2.1%
54,155 Lexmark International, Inc. Cl. A* .................. 4,035,089
140,300 Network Appliance, Inc.* ............................ 1,863,184
-----------
5,898,273
-----------
DIVERSIFIED FINANCIALS--2.3%
140,429 Affiliated Managers Group, Inc.* .................... 6,503,267
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS--2.4%
769,600 Flextronics International Ltd.* ..................... 6,734,000
-----------
ENERGY EQUIPMENT & SERVICES--1.8%
69,375 BJ Services Company* ................................ 2,532,881
52,225 Cooper Cameron Corporation* ......................... 2,499,489
-----------
5,032,370
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--3.2%
69,250 Varian Medical Systems, Inc.* ....................... 3,729,805
110,945 Zimmer Holdings, Inc.* .............................. 5,203,321
-----------
8,933,126
-----------
HEALTH CARE PROVIDERS & SERVICES--7.3%
139,800 Aetna Inc. .......................................... 6,962,040
75,100 Anthem, Inc.* ....................................... 5,154,864
143,600 Laboratory Corporation of America Holdings* ......... 4,230,456
151,350 Omnicare, Inc. ...................................... 4,013,802
-----------
20,361,162
-----------
THE ALGER INSTITUTIONAL FUND -10-
ALGER MIDCAP GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
HOTELS, RESTAURANTS & LEISURE--3.0%
171,050 Alliance Gaming Corporation* ........................ $ 2,731,669
69,900 MGM MIRAGE* ......................................... 1,986,558
146,800 Starbucks Corporation* .............................. 3,448,332
-----------
8,166,559
-----------
INSURANCE--3.9%
85,850 Lincoln National Corporation ........................ 2,743,766
175,400 Willis Group Holdings Limited ....................... 5,470,726
56,400 W. R. Berkley Corporation ........................... 2,619,216
-----------
10,833,708
-----------
INTERNET & CATALOG RETAIL--5.1%
261,800 Amazon.com, Inc.* ................................... 7,505,806
296,850 NetFlix Inc.*+ ...................................... 6,797,865
-----------
14,303,671
-----------
INTERNET SOFTWARE & SERVICES--3.7%
401,400 VeriSign, Inc.* ..................................... 4,985,388
207,950 Yahoo! Inc.* ........................................ 5,153,001
-----------
10,138,389
-----------
LEISURE EQUIPMENT & PRODUCTS--2.3%
243,850 Leapfrog Enterprises, Inc.* ......................... 6,510,795
-----------
MEDIA--5.9%
105,785 Entercom Communications Corp.* ...................... 5,140,093
76,400 McClatchy Company Cl. A ............................. 4,477,040
698,600 XM Satellite Radio Holdings Inc. Cl. A*+ ............ 6,755,462
-----------
16,372,595
-----------
OIL & GAS--3.6%
136,575 EOG Resources, Inc. ................................. 5,105,174
136,500 Valero Energy Corporation ........................... 5,016,375
-----------
10,121,549
-----------
PHARMACEUTICALS--4.1%
35,550 Allergan, Inc. ...................................... 2,497,388
94,900 Mylan Laboratories Inc. ............................. 2,682,823
83,700 Teva Pharmaceutical Industries Ltd. ADR ............. 3,908,790
76,675 Watson Pharmaceuticals Inc.* ........................ 2,228,942
-----------
11,317,943
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS--5.8%
124,200 Altera Corporation* ................................. 1,963,602
338,600 Fairchild Semiconductor International, Inc. Cl. A* .. 4,019,182
72,925 International Rectifier Corporation* ................ 1,649,563
161,050 Intersil Corporation Cl. A* ......................... 2,979,425
43,300 Novellus Systems, Inc.* ............................. 1,214,132
333,450 Photronics, Inc.* ................................... 4,191,466
-----------
16,017,370
-----------
THE ALGER INSTITUTIONAL FUND -11-
ALGER MIDCAP GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SOFTWARE--7.2%
236,450 BEA Systems, Inc.* .................................. $ 2,532,379
169,300 BMC Software, Inc.* ................................. 2,525,956
97,200 Fair, Isaac Corporation ............................. 5,062,176
66,000 Intuit Inc.* ........................................ 2,559,480
233,000 Legato Systems, Inc.* ............................... 1,379,360
69,400 Synopsys, Inc.* ..................................... 3,375,616
116,600 Take-Two Interactive Software, Inc.* ................ 2,623,500
-----------
20,058,467
-----------
SPECIALTY RETAIL--7.2%
146,500 AnnTaylor Stores Corporation* ....................... 3,466,190
165,200 Best Buy Co., Inc.* ................................. 5,712,616
149,950 Chico's FAS, Inc.* .................................. 3,649,783
287,350 PETsMART, Inc.* ..................................... 4,347,605
99,250 Urban Outfitters, Inc.* ............................. 2,959,635
-----------
20,135,829
-----------
TRADING COMPANIES & DISTRIBUTORS--1.1%
67,045 W. W. Grainger, Inc. ................................ 3,094,127
-----------
Total Common Stocks
(Cost $239,799,298) ............................... 260,929,605
-----------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--6.2%
----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS $17,050,000 Federal National
Mortgage Association, 1.25%, 5/1/03
(Cost $17,050,000) ................................ 17,050,000
-----------
Total Investments
(Cost $256,849,298)(a) ................................ 100.0% 277,979,605
Other Assets In Excess of Liabilities ................... 0.0 108,972
----- ------------
Net Assets .............................................. 100.0% $278,088,577
===== ============
- -----------
* Non-income producing security.
+ Securities Partially or Fully on Loan.
(a) At April 30, 2003, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $271,124,279, amounted to $6,855,326
which consisted of aggregate gross unrealized appreciation of $23,765,407
and aggregate gross unrealized depreciation of $16,910,081.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUND -12-
ALGER CAPITAL APPRECIATION INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2003
SHARES COMMON STOCKS -- 91.7% VALUE
--------- --------
BANKS--1.6%
82,000 Mellon Financial Corporation ........................ $ 2,168,900
-----------
BIOTECHNOLOGY--7.1%
86,700 Amgen Inc.* ......................................... 5,315,577
55,900 Genzyme Corp.--General Division* .................... 2,251,652
41,200 Gilead Sciences, Inc.* .............................. 1,900,968
-----------
9,468,197
-----------
COMMERCIAL SERVICES & SUPPLIES--1.0%
25,250 Apollo Group, Inc. Cl. A* ........................... 1,368,525
-----------
COMMUNICATION EQUIPMENT--4.5%
215,600 CIENA Corporation* .................................. 1,049,972
194,700 Cisco Systems, Inc.* ................................ 2,928,288
195,000 Juniper Networks, Inc.*+ ............................ 1,992,900
-----------
5,971,160
-----------
COMPUTERS & PERIPHERALS--3.4%
293,600 EMC Corporation* .................................... 2,668,824
141,000 Network Appliance, Inc.* ............................ 1,872,480
-----------
4,541,304
-----------
DIVERSIFIED FINANCIALS--5.8%
106,800 Citigroup Inc. ...................................... 4,191,900
62,300 Merrill Lynch & Co., Inc. ........................... 2,557,415
8,700 SLM Corporation ..................................... 974,400
-----------
7,723,715
-----------
ENERGY EQUIPMENT & SERVICES--1.6%
101,900 Halliburton Company ................................. 2,181,679
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--4.7%
26,700 Alcon, Inc.* ........................................ 1,176,135
23,150 Boston Scientific Corporation* ...................... 996,608
44,400 Guidant Corporation* ................................ 1,731,156
49,700 Zimmer Holdings, Inc.* .............................. 2,330,930
-----------
6,234,829
-----------
HOTELS, RESTAURANTS & LEISURE--.8%
45,400 Starbucks Corporation* .............................. 1,066,446
-----------
INDUSTRIAL CONGLOMERATES--3.8%
173,200 General Electric Company ............................ 5,100,740
-----------
INSURANCE--2.4%
28,000 AFLAC Incorporated .................................. 915,880
40,600 American International Group, Inc. .................. 2,352,770
-----------
3,268,650
-----------
INTERNET & CATALOG RETAIL--3.5%
23,800 Amazon.com, Inc.* ................................... 682,346
43,600 eBay Inc.*+ ......................................... 4,044,772
-----------
4,727,118
-----------
THE ALGER INSTITUTIONAL FUND -13-
ALGER CAPITAL APPRECIATION INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
INTERNET SOFTWARE & SERVICES--1.7%
93,400 Yahoo! Inc.* ........................................ $ 2,314,452
-----------
MACHINERY--.8%
14,500 Danaher Corporation ................................. 1,000,210
-----------
MEDIA--5.4%
161,900 AOL Time Warner Inc.* ............................... 2,214,792
54,300 Comcast Corporation Cl. A* .......................... 1,732,713
166,300 Liberty Media Corporation Series A* ................. 1,829,300
32,700 Viacom Inc. Cl. B* .................................. 1,419,507
-----------
7,196,312
-----------
MULTILINE RETAIL--1.7%
39,500 Wal-Mart Stores, Inc. ............................... 2,224,640
-----------
PERSONAL PRODUCTS--1.3%
56,600 Gillette Company .................................... 1,723,470
-----------
PHARMACEUTICALS--12.5%
40,200 Allergan, Inc. ...................................... 2,824,050
46,300 Barr Laboratories, Inc.* ............................ 2,574,280
23,100 Johnson & Johnson ................................... 1,301,916
67,400 Merck & Co., Inc. ................................... 3,921,332
85,780 Pfizer Inc. ......................................... 2,637,735
39,300 Teva Pharmaceutical Industries Ltd. ADR+ ............ 1,835,310
36,650 Wyeth ............................................... 1,595,374
-----------
16,689,997
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS--8.0%
72,200 Broadcom Corporation Cl. A* ......................... 1,291,658
171,600 Intersil Corporation Cl. A* ......................... 3,174,600
40,800 KLA-Tencor Corporation*+ ............................ 1,672,800
47,800 Maxim Integrated Products, Inc. ..................... 1,878,062
91,800 Micron Technology, Inc.* ............................ 780,300
96,300 National Semiconductor Corporation* ................. 1,803,699
-----------
10,601,119
-----------
SOFTWARE--9.2%
217,400 Microsoft Corporation ............................... 5,558,918
435,700 Oracle Corporation* ................................. 5,176,116
71,900 VERITAS Software Corporation* ....................... 1,582,519
-----------
12,317,553
-----------
SPECIALTY RETAIL--8.4%
120,600 Abercrombie & Fitch Co. Cl. A* ...................... 3,965,328
67,100 Best Buy Co., Inc.* ................................. 2,320,318
251,800 Gap, Inc. ........................................... 4,187,434
24,300 Home Depot Inc. ..................................... 683,559
-----------
11,156,639
-----------
TEXTILES, APPAREL & LUXURY GOODS--1.2%
29,500 NIKE, Inc. Cl. B .................................... 1,579,135
-----------
THE ALGER INSTITUTIONAL FUND -14-
ALGER CAPITAL APPRECIATION INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
WIRELESS TELECOMMUNICATION SERVICES--1.3%
84,700 Vodafone Group PLC Sponsored ADR+ ................. $ 1,673,672
------------
Total Common Stocks
(Cost $111,219,833) ............................. 122,298,462
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--14.5%
----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS--7.9%
$10,550,000 Federal National Mortgage Association, 1.25%, 5/1/03
(Cost $10,550,000) .............................. 10,550,000
------------
SHARES OTHER SHORT-TERM INVESTMENTS--6.6%
----------
8,744,235 Securities Lending Quality Trust
(Cost $8,744,235)(b) ............................ 8,744,235
------------
Total Short-Term Investments
(Cost $19,294,235) .............................. 19,294,235
------------
Total Investments
(Cost $130,514,068)(a) ............................... 106.2% 141,592,697
Liabilities In Excess of Other Assets .................. (6.2) (8,276,112)
----- ------------
Net Assets ............................................. 100.0% $133,316,585
===== ============
- -----------
* Non-income producing security.
+ Securities Partially or Fully on Loan.
(a) At April 30, 2003, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $132,221,996, amounted to $9,370,701
which consisted of aggregate gross unrealized appreciation of $12,371,758
and aggregate gross unrealized depreciation of $3,001,057.
(b) Represents investment of cash collateral received for securities on loan.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUND -15-
ALGER BALANCED INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2003
SHARES COMMON STOCKS -- 47.9% VALUE
--------- --------
AEROSPACE & DEFENSE--.1%
10 General Dynamics Corporation ........................ $ 621
-----------
AUTOMOTIVE--.7%
200 Harley-Davidson, Inc. ............................... 8,888
-----------
BANKS--.5%
270 Mellon Financial Corporation ........................ 7,142
-----------
BIOTECHNOLOGY--1.9%
130 Amgen Inc.* ......................................... 7,970
290 Biogen, Inc.* ....................................... 11,017
150 Genzyme Corp.--General Division* .................... 6,042
-----------
25,029
-----------
COMMERCIAL SERVICES & SUPPLIES--1.0%
950 Concord EFS, Inc.* .................................. 13,138
-----------
COMMUNICATION EQUIPMENT--2.6%
1,080 Cisco Systems, Inc.* ................................ 16,243
1,100 Nokia Corporation, ADR .............................. 18,227
-----------
34,470
-----------
COMPUTERS & PERIPHERALS--2.5%
430 Dell Computer Corporation* .......................... 12,431
1,200 EMC Corporation* .................................... 10,908
2,805 Sun Microsystems, Inc.* ............................. 9,257
-----------
32,596
-----------
DIVERSIFIED FINANCIALS--1.9%
100 Affiliated Managers Group, Inc.* .................... 4,631
315 Citigroup Inc. ...................................... 12,363
200 Merrill Lynch & Co., Inc. ........................... 8,210
-----------
25,204
-----------
ENERGY EQUIPMENT & SERVICES--.4%
125 BJ Services Company* ................................ 4,564
-----------
FREIGHT & LOGISTICS--1.1%
230 FedEx Corp. ......................................... 13,772
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--2.6%
265 Alcon, Inc.* ........................................ 11,673
260 Boston Scientific Corporation* ...................... 11,193
225 Zimmer Holdings, Inc.* .............................. 10,553
-----------
33,419
-----------
HEALTH CARE PROVIDERS & SERVICES--1.6%
350 HCA Inc. ............................................ 11,235
110 UnitedHealth Group Incorporated ..................... 10,134
-----------
21,369
-----------
INDUSTRIAL CONGLOMERATES--3.0%
700 General Electric Company ............................ 20,615
1,200 Tyco International Ltd. ............................. 18,720
-----------
39,335
-----------
THE ALGER INSTITUTIONAL FUND -16-
ALGER BALANCED INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
INSURANCE--1.9%
125 AFLAC Incorporated .................................. $ 4,089
285 American International Group, Inc. .................. 16,516
250 Travelers Property Casualty Corp. Cl. A ............. 4,058
-----------
24,663
-----------
INTERNET & CATALOG RETAIL--1.9%
100 Amazon.com, Inc.* ................................... 2,867
165 eBay Inc.* .......................................... 15,307
200 USA Interactive* .................................... 5,990
-----------
24,164
-----------
INTERNET SOFTWARE & SERVICES--.7%
350 Yahoo! Inc.* ........................................ 8,673
-----------
MEDIA--1.7%
400 Disney (Walt) Company ............................... 7,464
350 Viacom Inc. Cl. B* .................................. 15,194
-----------
22,658
-----------
MULTILINE RETAIL--1.2%
275 Wal-Mart Stores, Inc. ............................... 15,488
-----------
OIL & GAS--.9%
250 Devon Energy Corporation ............................ 11,812
-----------
PERSONAL PRODUCTS--.4%
100 Avon Products, Inc. ................................. 5,817
-----------
PHARMACEUTICALS--6.3%
275 Abbott Laboratories ................................. 11,173
500 Bristol-Myers Squibb Company ........................ 12,770
280 Johnson & Johnson ................................... 15,781
200 Merck & Co., Inc. ................................... 11,636
504 Pfizer Inc. ......................................... 15,498
100 Teva Pharmaceutical Industries Ltd. ADR ............. 4,670
250 Wyeth ............................................... 10,883
-----------
82,411
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS--3.0%
200 Applied Materials, Inc.* ............................ 2,920
850 Intel Corporation ................................... 15,640
300 Linear Technology Corporation ....................... 10,341
1,190 Taiwan Semiconductor Manufacturing Company Ltd. ADR* 9,960
-----------
38,861
-----------
SOFTWARE--4.9%
850 Microsoft Corporation ............................... 21,735
1,400 Oracle Corporation* ................................. 16,632
220 Synopsys, Inc.* ..................................... 10,701
700 VERITAS Software Corporation* ....................... 15,407
-----------
64,475
-----------
THE ALGER INSTITUTIONAL FUND -17-
ALGER BALANCED INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SPECIALTY RETAIL--3.6%
450 Best Buy Co., Inc.* ................................. $ 15,561
1,000 Gap, Inc. ........................................... 16,630
350 Home Depot, Inc. .................................... 9,845
125 Lowe's Companies, Inc. .............................. 5,486
-----------
47,522
-----------
WIRELESS TELECOMMUNICATION SERVICES--1.5%
1,000 Vodafone Group PLC Sponsored ADR .................... 19,760
-----------
Total Common Stocks
(Cost $581,715) ................................... 625,851
-----------
PRINCIPAL
AMOUNT
----------
U.S. GOVERNMENT OBLIGATIONS--45.0%
$ 84,000 U.S. Treasury Bonds,
5.375%, 2/15/31 ................................... 91,625
U.S. Treasury Notes,
87,000 3.375%, 4/30/04 ................................... 88,930
100,000 2.125%, 10/31/04 .................................. 101,203
45,000 3.50%, 11/15/06 ................................... 46,899
100,000 3.25%, 8/15/07 .................................... 102,719
150,000 4.375%, 8/15/12 ................................... 156,609
-----------
Total U.S. Government Obligations
(Cost $581,759) ................................... 587,985
-----------
SHORT-TERM INVESTMENTS--3.1%
U.S. GOVERNMENT & AGENCY OBLIGATIONS
40,000 U.S. Treasury Bills,
1.10%, 6/12/03
(Cost $39,949) .................................... 39,949
-----------
Total Investments
(Cost $1,203,423)(a) .................................... 96.0% 1,253,785
Other Assets in Excess of Liabilities ................... 4.0 52,631
----- -----------
Net Assets .............................................. 100.0% $ 1,306,416
===== ===========
- -----------
* Non-income producing security.
(a) At April 30, 2003, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,214,888, amounted to $38,897
which consisted of aggregate gross unrealized appreciation of $50,746 and
aggregate gross unrealized depreciation of $11,849.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUND -18-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2003
SHARES COMMON STOCKS -- 89.9% VALUE
--------- --------
BANKS--1.6%
650 Mellon Financial Corporation ........................ $ 17,193
-----------
BIOTECHNOLOGY-- 7.4%
700 Amgen Inc.* ......................................... 42,917
500 Genzyme Corp.--General Division* .................... 20,140
350 Gilead Sciences, Inc. * ............................. 16,149
-----------
79,206
-----------
COMMERCIAL SERVICES & SUPPLIES--1.0%
200 Apollo Group, Inc. Cl. A* ........................... 10,840
-----------
COMMUNICATION EQUIPMENT--4.4%
1,800 CIENA Corporation* .................................. 8,766
1,550 Cisco Systems, Inc.* ................................ 23,312
1,600 Juniper Networks, Inc.* ............................. 16,352
-----------
48,430
-----------
COMPUTERS & PERIPHERALS--3.6%
2,400 EMC Corporation * ................................... 21,816
1,250 Network Appliance, Inc. * ........................... 16,600
-----------
38,416
-----------
DIVERSIFIED FINANCIALS--6.2%
900 Citigroup Inc. ...................................... 35,325
550 Merrill Lynch & Co., Inc. ........................... 22,578
75 SLM Corporation ..................................... 8,400
-----------
66,303
-----------
ENERGY EQUIPMENT & SERVICES--1.7%
850 Halliburton Company ................................. 18,198
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--4.6%
250 Alcon, Inc.* ........................................ 11,013
150 Boston Scientific Corporation* ...................... 6,457
350 Guidant Corporation* ................................ 13,647
400 Zimmer Holdings, Inc.* .............................. 18,760
-----------
49,877
-----------
HOTELS, RESTAURANTS & LEISURE--.9%
400 Starbucks Corporation* .............................. 9,396
-----------
INDUSTRIAL CONGLOMERATES--4.1%
1,500 General Electric Company ............................ 44,175
-----------
INSURANCE--2.8%
250 AFLAC Incorporated .................................. 8,178
375 American International Group, Inc. .................. 21,731
-----------
29,909
-----------
INTERNET & CATALOG RETAIL--3.7%
250 Amazon.com, Inc.* ................................... 7,167
350 eBay Inc.* .......................................... 32,469
-----------
39,636
-----------
THE ALGER INSTITUTIONAL FUND -19-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
INTERNET SOFTWARE & SERVICES--1.7%
750 Yahoo! Inc.* ........................................ $ 18,585
-----------
MACHINERY--.6%
100 Danaher Corporation ................................. 6,898
-----------
MEDIA--5.7%
1,300 AOL Time Warner Inc.* ............................... 17,784
450 Comcast Corporation Cl. A* .......................... 14,359
1,300 Liberty Media Corporation Series A* ................. 14,300
350 Viacom Inc. Cl. B* .................................. 15,193
-----------
61,636
-----------
MULTILINE RETAIL--1.8%
350 Wal-Mart Stores, Inc. ............................... 19,712
-----------
PERSONAL PRODUCTS--1.3%
450 Gillette Company .................................... 13,703
-----------
PHARMACEUTICALS--7.8%
350 Allergan, Inc. ...................................... 24,588
550 Merck & Co., Inc. ................................... 31,999
300 Teva Pharmaceutical Industries Ltd. ADR ............. 14,010
300 Wyeth ............................................... 13,059
-----------
83,656
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS--7.9%
600 Broadcom Corp., Cl. A* .............................. 10,734
1,450 Intersil Corporation Cl. A* ......................... 26,825
300 KLA-Tencor Corporation* ............................. 12,300
400 Maxim Integrated Products, Inc. ..................... 15,716
700 Micron Technology, Inc.* ............................ 5,950
700 National Semiconductor Corporation* ................. 13,111
-----------
84,636
-----------
SOFTWARE--9.5%
1,850 Microsoft Corporation ............................... 47,304
3,550 Oracle Corporation* ................................. 42,174
600 Veritas Software Corporation* ....................... 13,206
-----------
102,684
-----------
SPECIALTY RETAIL--9.1%
1,200 Abercrombie & Fitch Co. Cl. A * ..................... 39,456
550 Best Buy Co., Inc.* ................................. 19,019
2,050 Gap, Inc. ........................................... 34,092
200 Home Depot, Inc. .................................... 5,626
-----------
98,193
-----------
THE ALGER INSTITUTIONAL FUND -20-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2003
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
TEXTILES, APPAREL & LUXURY GOODS--1.2%
250 NIKE, Inc. Cl. B .................................... $ 13,382
-----------
WIRELESS TELECOMMUNICATION SERVICES--1.3%
700 Vodafone Group PLC Sponsored ADR .................... 13,832
-----------
Total Common Stocks
(Cost $879,318) ................................... 968,496
-----------
Total Investments
(Cost $879,318)(a) .................................... 89.9% 968,496
Other Assets in Excess of Liabilities ................... 10.1 108,823
----- -----------
Net Assets .............................................. 100.0% $ 1,077,319
===== ===========
- -----------
* Non-income producing security.
(a) At April 30, 2003, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $880,401, amounted to $88,095 which
consisted of aggregate gross unrealized appreciation of $94,308 and
aggregate gross unrealized depreciation of $6,213.
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
ALGER INSTITUTIONAL FUND -22-
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIOD
Income from
Investment Operations
-----------------------
Net
Realized
and Net
Net Asset Net Unrealized Total Distributions Asset
Value, Investment Gain from from Value,
Beginning Income (Loss) on Investment Net Realized End of
of Period (Loss) Investments Operations Gains Period
--------- ---------- ----------- ---------- ------------- ------
ALGER LARGECAP GROWTH INSTITUTIONAL PORTFOLIO (i)
CLASS I
Six months ended 4/30/03(iv) ...... $ 8.70 $(0.02)(iii) $ 0.35 $ 0.33 $ -- $ 9.03
Year ended 10/31/02 ............... 11.63 (0.03)(iii) (2.90) (2.93) -- 8.70
Year ended 10/31/01 ............... 17.15 (0.03)(iii) (4.50) (4.53) (0.99) 11.63
Year ended 10/31/00 ............... 17.17 (0.03)(iii) 1.92 1.89 (1.91) 17.15
Year ended 10/31/99 ............... 12.37 (0.05) 5.23 5.18 (0.38) 17.17
Year ended 10/31/98 ............... 10.78 (0.01)(iii) 2.82 2.81 (1.22) 12.37
CLASS R
From 1/27/03 to 4/30/03(ii)(iv) ... $ 8.12 $(0.02)(iii) $ 0.92 $ 0.90 -- $ 9.02
ALGER SMALL CAP INSTITUTIONAL PORTFOLIO
CLASS I
Six months ended 4/30/03(iv) ...... $10.97 $(0.10)(iii) $ 0.65 $ 0.55 $ -- $11.52
Year ended 10/31/02 ............... 13.35 (0.13)(iii) (2.25) (2.38) -- 10.97
Year ended 10/31/01 ............... 23.78 (0.08)(iii) (10.35) (10.43) -- 13.35
Year ended 10/31/00 ............... 22.82 (0.06)(iii) 2.50 2.44 (1.48) 23.78
Year ended 10/31/99 ............... 16.37 (0.12)(iii) 8.65 8.53 (2.08) 22.82
Year ended 10/31/98 ............... 18.00 (0.08) 0.02 (0.06) (1.57) 16.37
CLASS R
From 1/27/03 to 4/30/03(ii)(iv) ... $10.72 $(0.04)(iii) $ 0.83 $ 0.79 -- $11.51
ALGER MIDCAP GROWTH INSTITUTIONAL PORTFOLIO
CLASS I
Six months ended 4/30/03(iv) ...... $10.76 $(0.09)(iii) $ 0.76 $ 0.67 $ -- $11.43
Year ended 10/31/02 ............... 13.34 (0.10)(iii) (2.48) (2.58) -- 10.76
Year ended 10/31/01 ............... 17.53 (0.08)(iii) (3.44) (3.52) (0.67) 13.34
Year ended 10/31/00 ............... 11.80 (0.04)(iii) 6.07 6.03 (0.30) 17.53
Year ended 10/31/99 ............... 8.83 (0.05)(iii) 3.78 3.73 (0.76) 11.80
Year ended 10/31/98 ............... 11.36 (0.06)(iii) 1.78 1.72 (4.25) 8.83
CLASS R
From 1/27/03 to 4/30/03(ii)(iv) ... $10.25 $(0.04)(iii) $ 1.20 $ 1.16 -- $11.41
- -----------
(i) Prior to March 1, 2002, the Alger LargeCap Growth Institutional Portfolio
was the Alger Growth Retirement Portfolio.
(ii) Commenced operations January 27, 2003.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Unaudited. Ratios have been annualized; total return has not been
annualized.
See Notes to Financial Statements.
-23-
Ratios/Supplemental Data
-------------------------------------------
Ratio of
Net Ratio of Net
Assets, Expenses Investment
End of to Income
Period Average (Loss) to Portfolio
Total (000's Net Average Turnover
Return omitted) Assets Net Assets Rate
------ -------- -------- ---------- ---------
3.8% $ 75,393 1.18% (0.26)% 173.90%
(25.2) 108,660 1.14 (0.24) 202.07
(27.5) 97,308 1.09 (0.20) 89.54
10.3 126,573 1.06 (0.16) 101.29
42.0 72,746 1.07 (0.39) 143.80
25.4 40,196 1.11 (0.06) 130.31
11.1% $ 56 1.67% (0.80)% 173.90%
5.0% $ 68,450 1.26% (0.95)% 40.71%
(17.8) 62,780 1.25 (1.01) 138.01
(43.9) 86,790 1.19 (0.46) 191.89
10.1 187,973 1.17 (0.23) 242.45
52.7 63,711 1.02 (0.57) 193.32
(1.8) 29,938 1.03 (0.55) 169.97
7.4% $ 54 1.75% (1.42)% 40.71%
6.2% $278,033 1.19% (0.88)% 127.20%
(19.3) 215,727 1.17 (0.81) 284.69
(20.6) 217,153 1.13 (0.51) 130.93
51.3 177,566 1.12 (0.24) 113.14
42.4 28,233 1.23 (0.49) 165.68
11.5 6,667 1.22 (0.52) 184.23
11.3% $ 56 1.69% (1.41)% 127.20%
ALGER INSTITUTIONAL FUND -24-
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIOD
Income from
Investment Operations
-----------------------
Net
Realized
and Net
Net Asset Net Unrealized Total Distributions Asset
Value, Investment Gain from from Value,
Beginning Income (Loss) on Investment Net Realized End of
of Period (Loss) Investments Operations Gains Period
---------- ---------- ----------- ---------- ------------- ------
ALGER CAPITAL APPRECIATION INSTITUTIONAL PORTFOLIO
CLASS I
Six months ended 4/30/03(iv)(v) ...... $ 8.97 $(0.06)(iii) $ 0.48 $ 0.42 $ -- $ 9.39
Year ended 10/31/02 .................. 11.66 (0.08)(iii) (2.61) (2.69) -- 8.97
Year ended 10/31/01 .................. 18.12 (0.03)(iii) (6.37) (6.40) (0.06) 11.66
Year ended 10/31/00 .................. 16.19 (0.09)(iii) 2.24 2.15 (0.22) 18.12
Year ended 10/31/99 .................. 8.98 (0.09)(iii) 7.63 7.54 (0.33) 16.19
Year ended 10/31/98 .................. 9.70 (0.08)(iii) 2.96 2.88 (3.60) 8.98
CLASS R
From 1/27/03 to 4/30/03(ii)(iv)(v) ... $ 8.36 $(0.02)(iii) $ 1.03 $ 1.01 -- $ 9.37
ALGER BALANCED INSTITUTIONAL PORTFOLIO
CLASS I
Six months ended 4/30/03(iv)(v) ...... $ 6.67 $ 0.01(iii) $ 0.13 $ 0.14 -- $ 6.81
Year ended 10/31/02 .................. 8.20 (0.39)(iii) (1.14) (1.53) -- 6.67
From 12/4/00 to 10/31/01(i)(iv) ...... 10.00 (0.11)(iii) (1.69) (1.80) -- 8.20
CLASS R
From 1/27/03 to 4/30/03(ii)(iv)(v) ... $ 6.43 $(0.01)(iii) $ 0.38 $ 0.37 -- $ 6.80
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL PORTFOLIO
CLASS I
Six months ended 4/30/03(iv)(v) ...... $ 4.43 $(0.07)(iii) $ 0.27 $ 0.20 -- $ 4.63
Year ended 10/31/02 .................. 6.37 (0.77)(iii) (1.17) (1.94) -- 4.43
From 12/4/00 to 10/31/01(i)(iv) ...... 10.00 (0.30)(iii) (3.33) (3.63) -- 6.37
CLASS R
From 1/27/03 to 4/30/03(ii)(iv)(v) ... $ 4.13 $(0.03)(iii) $ 0.53 $ 0.50 -- $ 4.63
- -----------
(i) Commenced operations December 4, 2000.
(ii) Commenced operations January 27, 2003.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Ratios have been annualized; total return has not been annualized.
(v) Unaudited.
See Notes to Financial Statements.
-25-
Ratios/Supplemental Data
--------------------------------------------
Ratio of
Net Ratio of Net
Assets, Expenses Investment
End of to Income
Period Average (Loss) to Portfolio
Total (000's Net Average Turnover
Return omitted) Assets Net Assets Rate
------ -------- -------- ---------- ---------
4.7% $133,261 1.25% (0.70)% 96.23%
(23.1) 132,010 1.23 (0.73) 180.39
(35.4) 187,187 1.18 (0.21) 104.17
13.1 279,916 1.14 (0.43) 144.16
84.3 96,711 1.29 (0.59) 155.40
28.1 5,587 1.44 (0.79) 177.09
12.1% $ 56 1.75% (1.07)% 96.23%
2.1% $ 1,254 1.84% 0.12% 74.93%
(18.7) 225 6.72 (5.21) 321.89
(18.0) 108 3.13 (1.44) 15.99
5.8% $ 53 2.38% (0.45)% 74.93%
4.5% $ 1,021 2.14% (1.64)% 98.63%
(30.5) 46 13.48 (13.17) 205.83
(36.3) 77 5.31 (4.75) 114.33
12.1% $ 56 3.05% (2.43)% 98.63%
THE ALGER INSTITUTIONAL FUND -26-
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
April 30, 2003
LargeCap
Growth Small Cap
Portfolio Portfolio
------------- -------------
ASSETS:
Investments in securities, at value (identified cost*)--
see accompanying schedules of investments ............ $ 79,883,806 $ 68,070,522
Cash ................................................... 16,857 16,530
Receivable for investment securities sold .............. -- 885,726
Receivable for shares of beneficial interest sold ...... 154,597 227,846
Dividends and interest receivable ...................... 33,308 9,843
Prepaid expenses ....................................... 395 5,807
------------- -------------
Total Assets ......................................... 80,088,963 69,216,274
------------- -------------
LIABILITIES:
Payable for securities loaned .......................... 4,478,579 --
Payable for investment securities purchased ............ -- 604,474
Payable for shares of beneficial interest redeemed ..... 82,771 35,961
Accrued investment management fees ..................... 44,372 45,354
Accrued transfer agent fees ............................ 2,958 2,668
Accrued expenses ....................................... 31,630 24,488
------------- -------------
Total Liabilities .................................... 4,640,310 712,945
------------- -------------
NET ASSETS ............................................. $ 75,448,653 $ 68,503,329
============= =============
Net Assets Consist of:
Paid-in capital ...................................... $ 124,930,129 $ 167,284,724
Accumulated net investment income (loss) ............. (102,524) (299,361)
Undistributed net realized gain (accumulated loss) ... (54,993,005) (105,128,729)
Net unrealized appreciation (depreciation) ........... 5,614,053 6,646,695
------------- -------------
NET ASSETS ............................................. $ 75,448,653 $ 68,503,329
============= =============
Shares of beneficial interest outstanding--Note 6
Class I .............................................. 8,346,583 5,940,075
============= =============
Class R ................................................ 6,158 4,664
============= =============
Net Asset Value Per Share
Class I .............................................. $ 9.03 $ 11.52
============= =============
Class R .............................................. $ 9.02 $ 11.51
============= =============
*Identified cost ....................................... $ 74,269,753 $ 61,423,827
============= =============
See Notes to Financial Statements.
-27-
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Portfolio Portfolio Portfolio Portfolio
--------- ------------ ---------- ------------
$277,979,605 $141,592,697 $ 1,253,785 $ 968,496
49,321 30,223 49,206 101,485
373,667 1,563,293 -- 17,054
1,221,439 307,325 -- --
14,388 19,963 3,999 164
23,212 364 1,254 1,340
------------ ------------ ----------- ----------
279,661,632 143,513,865 1,308,244 1,088,539
------------ ------------ ----------- ----------
-- 8,744,235 -- --
228,019 1,072,705 -- 9,532
1,055,752 238,012 -- --
170,095 89,932 786 643
10,631 5,290 52 43
108,558 47,106 990 1,002
------------ ------------ ----------- ----------
1,573,055 10,197,280 1,828 11,220
------------ ------------ ----------- ----------
$278,088,577 $133,316,585 $ 1,306,416 $1,077,319
============ ============ =========== ==========
$346,903,139 $271,773,723 $ 1,338,082 $1,091,785
(1,031,415) (431,338) 655 (8,104)
(88,913,454) (149,104,429) (82,683) (95,540)
21,130,307 11,078,629 50,362 89,178
------------ ------------ ----------- ----------
$278,088,577 $133,316,585 $ 1,306,416 $1,077,319
============ ============ =========== ==========
24,334,390 14,197,417 184,116 220,735
============ ============ =========== ==========
4,878 5,981 7,776 12,107
============ ============ =========== ==========
$ 11.43 $ 9.39 $ 6.81 $ 4.63
============ ============ =========== ==========
$ 11.41 $ 9.37 $ 6.80 $ 4.63
============ ============ =========== ==========
$256,849,298 $130,514,068 $ 1,203,423 $ 879,318
============ ============ =========== ==========
THE ALGER INSTITUTIONAL FUND -28-
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended April 30, 2003
LargeCap
Growth Small Cap
Portfolio Portfolio
----------- -----------
INVESTMENT INCOME
Income:
Dividends ...................................... $ 339,939 $ 66,986
Interest ....................................... 26,432 29,405
----------- -----------
Total income .................................. 366,371 96,391
----------- -----------
Expenses:
Management fees--Note 3(a) ..................... 298,415 267,848
Shareholder servicing fees ..................... 99,472 78,779
Custodian fees ................................. 16,462 13,617
Transfer agent fees--Note 3(d) ................. 19,894 15,756
Trustees' fees ................................. 2,564 2,015
Miscellaneous .................................. 32,088 17,737
----------- -----------
Total Expenses ............................... 468,895 395,752
----------- -----------
NET INVESTMENT INCOME (LOSS) ..................... (102,524) (299,361)
----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments ............... (6,267,471) (3,719,005)
Net change in unrealized appreciation
(depreciation) on investments .................. 8,363,910 7,285,241
----------- -----------
Net realized and unrealized gain
on investments ............................... 2,096,439 3,566,236
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .............................. $ 1,993,915 $ 3,266,875
=========== ===========
See Notes to Financial Statements.
-29-
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Portfolio Portfolio Portfolio Portfolio
--------- ------------ ---------- -----------
$ 250,541 $ 281,973 $ 2,472 $ 2,299
108,288 54,471 9,331 154
----------- ----------- ---------- ----------
358,829 336,444 11,803 2,453
----------- ----------- ---------- ----------
934,125 520,495 4,522 3,664
291,914 153,087 -- --
28,412 18,075 4,478 5,117
58,383 30,617 301 244
7,432 3,909 38 31
69,978 41,599 1,809 1,501
----------- ----------- ---------- ----------
1,390,244 767,782 11,148 10,557
----------- ----------- ---------- ----------
(1,031,415) (431,338) 655 (8,104)
----------- ----------- ---------- ----------
(3,438,073) (8,303,337) (28,780) (50,063)
20,403,372 14,746,873 47,638 90,612
----------- ----------- ---------- ----------
16,965,299 6,443,536 18,858 40,549
----------- ----------- ---------- ----------
$15,933,884 $ 6,012,198 $ 19,513 $ 32,445
=========== =========== ========== ==========
THE ALGER INSTITUTIONAL FUND -30-
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
For the six months ended April 30, 2003
LargeCap
Growth Small Cap
Portfolio Portfolio
------------- -------------
Net investment income (loss) ................ $ (102,524) $ (299,361)
Net realized loss on investments ............ (6,267,471) (3,719,005)
Net change in unrealized appreciation
(depreciation) on investments ............. 8,363,910 7,285,241
------------- -------------
Net increase in net assets resulting
from operations ........................... 1,993,915 3,266,875
Increase (decrease) from shares
of beneficial interest transactions:
Class I ................................... (35,254,811) 2,406,533
Class R ................................... 50,000 50,000
------------- -------------
Net increase (decrease) from shares
of beneficial interest transactions--Note 6 (35,204,811) 2,456,533
------------- -------------
Total increase (decrease) ............... (33,210,896) 5,723,408
Net Assets:
Beginning of period ....................... 108,659,549 62,779,921
------------- -------------
End of period ............................. $ 75,448,653 $ 68,503,329
============= =============
Accumulated net investment income (loss) .... $ (102,524) $ (299,361)
============= =============
THE ALGER INSTITUTIONAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended October 31, 2002
LargeCap
Growth Small Cap
Portfolio (i) Portfolio
------------- -------------
Net investment loss ......................... $ (229,136) $ (773,111)
Net realized loss on investments ............ (27,697,261) (12,084,103)
Net change in unrealized appreciation
(depreciation) on investments ............. 1,175,696 240,343
------------- -------------
Net decrease in net assets
resulting from operations ................. (26,750,701) (12,616,871)
Net increase (decrease) from shares
of beneficial interest
transactions--Note 6 ...................... 38,102,406 (11,393,196)
------------- -------------
Total increase (decrease) ............... 11,351,705 (24,010,067)
Net Assets:
Beginning of year ......................... 97,307,844 86,789,988
------------- -------------
End of year ............................... $ 108,659,549 $ 62,779,921
============= =============
Accumulated net investment loss ............. $ -- $ --
============= =============
- ---------------
(i) Prior to March 1, 2002, the Alger LargeCap Growth Institutional Portfolio
was the Alger Growth Retirement Portfolio.
See Notes to Financial Statements.
-31-
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Portfolio Portfolio Portfolio Portfolio
--------- ------------ ---------- -----------
$ (1,031,415) $ (431,338) $ 655 $ (8,104)
(3,438,073) (8,303,337) (28,780) (50,063)
20,403,372 14,746,873 47,638 90,612
------------ ------------ ---------- ----------
15,933,884 6,012,198 19,513 32,445
46,377,304 (4,755,308) 1,012,398 948,544
50,000 50,000 50,000 50,000
------------ ------------ ---------- ----------
46,427,304 (4,705,308) 1,062,398 998,544
------------ ------------ ---------- ----------
62,361,188 1,306,890 1,081,911 1,030,989
215,727,389 132,009,695 224,505 46,330
------------ ------------ ---------- ----------
$278,088,577 $133,316,585 $1,306,416 $1,077,319
============ ============ ========== ==========
$ (1,031,415) $ (431,338) $ 655 $ (8,104)
============ ============ ========== ==========
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Portfolio Portfolio Portfolio Portfolio
--------- ------------ ---------- -----------
$ (1,934,588) $ (1,249,372) $ (9,207) $ (8,132)
(55,077,406) (47,548,125) (43,449) (17,379)
4,572,841 7,506,733 11,714 5,649
------------ ------------ ---------- ----------
(52,439,153) (41,290,764) (40,942) (19,862)
51,013,257 (13,886,073) 157,906 (11,288)
------------ ------------ ---------- ----------
(1,425,896) (55,176,837) 116,964 (31,150)
217,153,285 187,186,532 107,541 77,480
------------ ------------ ---------- ----------
$215,727,389 $132,009,695 $ 224,505 $ 46,330
============ ============ ========== ==========
$ -- $ -- $ -- $ --
============ ============ ========== ==========
THE ALGER INSTITUTIONAL FUND -32-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--GENERAL:
The Alger Institutional Fund (the "Fund"), which was The Alger Retirement
Fund prior to March 1, 2002, is a diversified, open-end registered investment
company organized as a business trust under the laws of the Commonwealth of
Massachusetts. The Fund operates as a series company and currently issues six
Portfolios of shares of beneficial interest --LargeCap Growth Portfolio, Small
Cap Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio, Balanced
Portfolio and Socially Responsible Growth Portfolio (the "Portfolios"). Prior to
March 1, 2002, the LargeCap Growth Portfolio was the Growth Portfolio. The
LargeCap Growth Portfolio, Small Cap Portfolio, MidCap Growth Portfolio, Capital
Appreciation Portfolio and Socially Responsible Growth Portfolio normally invest
primarily in equity securities and each has an investment objective of long-term
capital appreciation. The Balanced Portfolio's investment objectives are current
income and long-term capital appreciation which it seeks to achieve through
investing in equity and fixed income securities.
Each Portfolio offers Class I and Class R shares. Class R shares were
first offered January 27, 2003. Each class has identical rights to assets and
earnings except that only Class R shares have a plan of distribution and bear
the related expenses.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES:
(a) INVESTMENT VALUATION: Investments of the Portfolios are valued on each day
the New York Stock Exchange (the "NYSE") is open as of the close of the NYSE
(currently 4:00 p.m. Eastern time). Listed and unlisted securities for which
such information is regularly reported are valued at the last reported sales
price or, in the absence of reported sales, at the mean between the bid and
asked price or, in the absence of a recent bid or asked price, the equivalent as
obtained from one or more of the major market makers for the securities to be
valued.
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.
Short-term securities 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.
(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 identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income is recognized on the
accrual basis.
Premiums and discounts on debt securities purchased are amortized or
accreted over the lives of the respective securities.
THE ALGER INSTITUTIONAL FUND -32-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(c) REPURCHASE AGREEMENTS: The Portfolios enter into repurchase agreements with
approved institutions. The repurchase agreements are collateralized by U.S.
Government securities, which are either received and held in physical possession
by the custo dian or received by such custodian in book-entry form through the
Federal Reserve book-entry system. The collateral is valued on a daily basis
during the term of the agreement to ensure that its value equals or exceeds the
agreed-upon repurchase price to be repaid to the Portfolio. Additional
collateral is obtained when necessary.
(d) LENDING OF PORTFOLIO SECURITIES: The Portfolios 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 Portfolio's total assets, as
defined. The Portfolios earn fees on the securities loaned, which are included
in interest income in the accompanying Statements of Operations. In order to
protect against the risk of failure by the borrower to return the securities
loaned or any delay in the delivery of such securities, the loan is
collateralized by cash, letters of credit or U.S. Government securities that are
maintained in an amount equal to at least 100 percent of the current market
value of the loaned securities. The market value of the loaned securities is
determined at the close of business of the Portfolios and any required
additional collateral is delivered to the Portfolios on the next business day.
At April 30, 2003, the value of securities loaned and collateral received
thereon were as follows:
VALUE OF
SECURITIES VALUE OF
LOANED COLLATERAL
----------- -----------
LargeCap Growth Portfolio ..................... $ 4,266,601 $ 4,478,579
Small Cap Portfolio ........................... 381,888 439,334
MidCap Growth Portfolio ....................... 12,390,900 13,400,079
Capital Appreciation
Portfolio ................................... 8,378,489 8,744,235
Balanced Portfolio ............................ -- --
Socially Responsible
Growth Portfolio ............................ -- --
(e) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on
the ex-dividend date. With respect to all Portfolios, dividends from net
investment income and distributions from net realized gains, offset by any loss
carry forward, are declared and paid annually after the end of the fiscal year
in which earned.
Each class is treated separately in determining the amounts of dividends
of net investment income and capital gains payable to holders of its shares.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Portfolios' distributions may be shown in the
accompanying financial statements as either from, or in excess of net invest-
THE ALGER INSTITUTIONAL FUND -34-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
ment income, net realized gain on investment transactions or paid-in capital,
depending on the type of book/tax differences that may exist.
At October 31, 2002, the LargeCap Growth Portfolio, the Small Cap
Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the
Balanced Portfolio and the Socially Responsible Growth Portfolio reclassified
$448,891, $1,387,729, $2,987,425, $1,714,108, $10,570 and $11,800, respectively,
from undistributed net investment income (accumulated loss) and $4,303,
$359,645, $20,841, $14,329, $0 and $0, respectively, from undistributed net
realized gain (accumulated loss) to paid-in capital. Reclassifications result
primarily from the difference in tax treatment of net operating losses. The
reclassifications had no impact on the net asset values of the Portfolios and
are designed to present the Portfolios' capital accounts on a tax basis.
(f) FEDERAL INCOME TAXES: It is each Portfolio's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its investment company taxable income to its
shareholders. Provided a Portfolio maintains such compliance, no federal income
tax provision is required. Each Portfolio is treated as a separate entity for
the purpose of determining such compliance. At October 31, 2002, the net capital
loss carryforwards of the LargeCap Growth Portfolio, the Small Cap Portfolio,
the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the Balanced
Portfolio and the Socially Responsible Growth Portfolio which may be used to
offset future net realized gains were approximately $41,746,316, $100,928,226,
$71,200,401, $139,093,169, $42,439 and $44,393, respectively, and expire in 2008
and 2010.
(g) ALLOCATION METHODS: The Fund accounts separately for the assets, liabilities
and operations of each Portfolio. Expenses directly attributable to each
Portfolio are charged to that Portfolio's operations; expenses which are
applicable to all Portfolios are allocated among them based on net assets.
Income, realized and unrealized gains and losses, and expenses of each
Portfolio, are allocated among the Portfolio's classes based on relative net
assets, with the exception of distribution fees, which are only applicable to
Class R shares.
(h) OTHER: These financial statements have been prepared using estimates and
assumptions that affect the reported amounts therein. Actual results may differ
from those estimates.
NOTE 3--INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the
provisions of its Investment Management Agreement with Fred Alger Management,
Inc. ("Alger Management"), are payable monthly and are computed based on the
value of the average daily net assets of each Portfolio at the following annual
rates:
LargeCap Growth Portfolio ......................... .75%
Small Cap Portfolio ............................... .85
MidCap Growth Portfolio ........................... .80
THE ALGER INSTITUTIONAL FUND -35-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Capital Appreciation Portfolio .................... .85
Balanced Portfolio ................................ .75
Socially Responsible Growth Portfolio ............. .75
(b) DISTRIBUTION FEES: Class R Shares--The Fund has adopted a Distribution Plan
pursuant to which Class R shares of each Portfolio pay Fred Alger & Company,
Incorporated, the Fund's distributor and an affiliate of Alger Management (the
"Distributor"), a fee at the annual rate of .50% of the respective average daily
net assets of the Class R shares of the designated Portfolios to compensate the
Distributor for its activities and expenses incurred in distributing the Class R
shares. The fees charged may be more or less than the expenses incurred by the
Distributor.
(c) BROKERAGE COMMISSIONS: During the six months ended April 30, 2003, the
LargeCap Growth Portfolio, the Small Cap Portfolio, the MidCap Growth Portfolio,
the Capital Appreciation Portfolio, the Balanced Portfolio and the Socially
Responsible Growth Portfolio paid the Distributor commissions of $325,394,
$50,410, $713,934, $250,869, $2,768 and $2,507, respectively, in connection with
securities transactions.
(d) TRANSFER AGENT FEES: Alger Shareholder Services, Inc. ("Alger Services"), an
affiliate of Alger Management, serves as transfer agent for the Fund. During the
six months ended April 30, 2003, the LargeCap Growth Portfolio, the Small Cap
Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio, the
Balanced Portfolio and the Socially Responsible Growth Portfolio incurred fees
of $19,894, $15,756, $58,383, $30,617, $301 and $244, respectively, for services
provided by Alger Services.
(e) OTHER TRANSACTIONS WITH AFFILIATES: Certain trustees and officers of the
Fund are directors and officers of Alger Management, the Distributor and Alger
Services. At April 30, 2003, Alger Management and its affiliates owned 42,749
shares, 100,339 shares, 132,267 shares, 12,072 shares and 3,639 shares of the
LargeCap Growth Portfolio, the Small Cap Portfolio, the MidCap Growth Portfolio,
the Capital Appreciation Portfolio and the Balanced Portfolio, respectively.
NOTE 4--SECURITIES TRANSACTIONS:
The following summarizes the securities transactions by the Fund, other
than short-term securities, for the six months ended April 30, 2003:
PURCHASES SALES
---------- -----
LargeCap Growth Portfolio .................... $127,293,668 $133,475,903
Small Cap Portfolio .......................... 25,565,994 24,498,972
MidCap Growth Portfolio ...................... 321,135,171 282,889,201
Capital Appreciation Portfolio ............... 112,247,178 112,046,221
Balanced Portfolio ........................... 1,776,444 773,702
Socially Responsible
Growth Portfolio ........................... 1,675,217 786,616
THE ALGER INSTITUTIONAL FUND -36-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 5--LINES OF CREDIT:
The Fund has both committed and uncommitted lines of credit with banks.
All borrowings have variable interest rates and are payable on demand. With the
exception of the Capital Appreciation Portfolio, the Fund borrows under such
lines of credit exclusively for temporary or emergency purposes.
The Capital Appreciation Portfolio may borrow up to 1/3 of the value of
its assets, as defined, to purchase additional securities. To the extent the
Capital Appreciation Portfolio borrows under these lines, it must pledge
securities with a total value of at least twice the amount borrowed. For the six
months ended April 30, 2003, the Portfolio had no such borrowings.
NOTE 6--SHARE CAPITAL:
The Fund has an unlimited number of authorized shares of beneficial
interest of $.001 par value which are presently divided into six series. Each
series is divided into two separate classes. The transactions of shares of
beneficial interest were as follows:
During the six months ended April 30, 2003, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
------- --------
LargeCap Growth Portfolio
Class I
Shares sold ................................. 1,916,763 $ 16,446,131
Shares redeemed ............................. (6,059,055) (51,700,942)
---------- ------------
Net decrease ................................ (4,142,292) $(35,254,811)
========== ============
Class R*
Shares sold ................................. 6,158 $ 50,000
========== ============
Small Cap Portfolio
Class I
Shares sold ................................. 978,718 $ 10,780,963
Shares redeemed ............................. (764,075) (8,374,430)
---------- ------------
Net increase ................................ 214,643 $ 2,406,533
========== ============
Class R*
Shares sold ................................. 4,664 $ 50,000
========== ============
MidCap Growth Portfolio
Class I
Shares sold ................................. 8,499,422 $ 91,551,216
Shares redeemed ............................. (4,211,772) (45,173,912)
---------- ------------
Net increase ................................ 4,287,650 $ 46,377,304
========== ============
Class R*
Shares sold ................................. 4,878 $ 50,000
========== ============
THE ALGER INSTITUTIONAL FUND -37-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SHARES AMOUNT
------- --------
Capital Appreciation Portfolio
Class I
Shares sold ................................. 2,274,676 $ 19,895,017
Shares redeemed ............................. (2,790,743) (24,650,325)
---------- ------------
Net decrease ................................ (516,067) $ (4,755,308)
========== ============
Class R*
Shares sold ................................. 5,981 $ 50,000
========== ============
Balanced Portfolio
Class I
Shares sold ................................. 159,522 $ 1,070,894
Shares redeemed ............................. (9,051) (58,496)
---------- ------------
Net increase ................................ 150,471 $ 1,012,398
========== ============
Class R*
Shares sold ................................. 7,776 $ 50,000
========== ============
Socially Responsible Growth Portfolio
Class I
Shares sold ................................. 222,752 $ 1,000,153
Shares redeemed ............................. (12,482) (51,609)
---------- ------------
Net increase ................................ 210,270 $ 948,544
========== ============
Class R*
Shares sold ................................. 12,107 $ 50,000
========== ============
- -----------
* Initially offered January 27, 2003.
During the year ended October 31, 2002, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
------- --------
LargeCap Growth Portfolio
Shares sold ................................. 6,419,729 $ 62,640,855
Shares redeemed ............................. (2,299,828) (24,538,449)
---------- ------------
Net increase ................................ 4,119,901 $ 38,102,406
========== ============
Small Cap Portfolio
Shares sold ................................. 2,520,386 $ 32,558,156
Shares redeemed ............................. (3,294,748) (43,951,352)
---------- ------------
Net decrease ................................ (774,362) $(11,393,196)
========== ============
MidCap Growth Portfolio
Shares sold ................................. 10,842,827 $140,338,726
Shares redeemed ............................. (7,075,491) (89,325,469)
---------- ------------
Net increase ................................ 3,767,336 $ 51,013,257
========== ============
THE ALGER INSTITUTIONAL FUND -38-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SHARES AMOUNT
------- --------
Capital Appreciation Portfolio
Shares sold ................................. 3,932,670 $ 43,390,389
Shares redeemed ............................. (5,268,245) (57,276,462)
---------- ------------
Net decrease ................................ (1,335,575) $(13,886,073)
========== ============
Balanced Portfolio
Shares sold ................................. 40,497 $ 305,334
Shares redeemed ............................. (19,972) (147,428)
---------- ------------
Net increase ................................ 20,525 $ 157,906
========== ============
Socially Responsible Growth Portfolio
Shares sold ................................. 55 $ 352
Shares redeemed ............................. (1,761) (11,640)
---------- ------------
Net decrease ................................ (1,706) $ (11,288)
========== ============
NOTE 7--DISTRIBUTIONS TO SHAREHOLDERS:
During the six months ended April 30, 2003 and the year ended October 31,
2002, there were no distributions paid.
As of October 31, 2002, the components of distributable earnings on a tax
basis were as follows:
LargeCap Growth Portfolio
Undistributed ordinary income ............................... --
Undistributed long-term gain ................................ --
Capital loss carryforward ................................... $ 41,746,316
Unrealized appreciation (depreciation) ...................... (9,729,076)
Small Cap Portfolio
Undistributed ordinary income ............................... --
Undistributed long-term gain ................................ --
Capital loss carryforward ................................... $100,928,226
Unrealized appreciation (depreciation) ...................... (1,120,044)
MidCap Growth Portfolio
Undistributed ordinary income ............................... --
Undistributed long-term gain ................................ --
Capital loss carryforward ................................... $ 71,200,401
Unrealized appreciation (depreciation) ...................... (13,548,046)
THE ALGER INSTITUTIONAL FUND -39-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Capital Appreciation Portfolio
Undistributed ordinary income ............................... --
Undistributed long-term gain ................................ --
Capital loss carryforward ................................... $139,093,169
Unrealized appreciation (depreciation) ...................... (5,376,172)
Balanced Portfolio
Undistributed ordinary income ............................... --
Undistributed long-term gain ................................ --
Capital loss carryforward ................................... $ 42,439
Unrealized appreciation (depreciation) ...................... (8,741)
Socially Responsible Growth Portfolio
Undistributed ordinary income ............................... --
Undistributed long-term gain ................................ --
Capital loss carryforward ................................... $ 44,393
Unrealized appreciation (depreciation) ...................... (2,518)
The difference between book basis and tax basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales.
[This Page Intentionally Left Blank]
THE ALGER INSTITUTIONAL FUND
111 Fifth Avenue
New York, NY 10003
(800) 992-3362
www.alger.com
INVESTMENT MANAGER
Fred Alger Management, Inc.
111 Fifth Avenue
New York, NY 10003
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, NJ 07302
This report is submitted for the general information of the shareholders of The
Alger Institutional Fund. It is not authorized for distribution to prospective
investors unless accompanied by an effective Prospectus for the Fund, which
contains information concerning the Fund's investment policies, fees and
expenses as well as other pertinent information.
-------------------
PRESORTED
STANDARD
US POSTAGE
PAID
FARMINGDALE, NY
PERMIT NO. 225
-------------------
SAIFI L1
Item 2. CODE OF ETHICS
Not applicable.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
Item 6. Reserved
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
Item 8. Reserved
Item 9. 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-2(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) In the last 90 days, there have been no significant changes in the
registrant's internal controls or in other factors that could significantly
affect these controls.
Item 10. EXHIBITS
(a) Not applicable.
(b) Attached hereto
Exhibit 99.CERT Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
Exhibit 99.906CERT Certification pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
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 Institutional Fund
By: /s/Fred M. Alger
Fred M. Alger
Chairman and President
Date: July 8, 2003
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/Fred M. Alger
Fred M. Alger
Chairman and President
Date: July 8, 2003
By: /s/Gregory S. Duch
Gregory S. Duch
Treasurer
Date: July 8, 2003