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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-7986
The Alger Institutional Funds
(Exact name of registrant as specified in charter)
111 Fifth Avenue New York, New York 10003
(Address of principal executive offices) (Zip code)
Mr. Frederick A. Blum
Fred Alger Management, Inc.
111 Fifth Avenue
New York, New York 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, 2004
ITEM 1. REPORT(S) TO STOCKHOLDERS.
THE ALGER
INSTITUTIONAL FUNDS
(FORMERLY THE ALGER INSTITUTIONAL FUND)
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
ALGER BALANCED INSTITUTIONAL FUND
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SEMI-ANNUAL REPORT
APRIL 30, 2004
(UNAUDITED)
[ALGER LOGO]
Dear Shareholders,
June 10, 2004
Early in 2004, the economy shifted into high gear. In addition to some of
the strongest economic data in four years, corporate earnings consistently beat
Wall Street's expectations. Consumer spending continued to fuel various aspects
of the economy; industrial production soared; and after a multi-year drought,
companies began to ramp up their spending.
The housing market also remained strong, as people took advantage of low
interest rates. Even the employment situation improved, although job growth
lagged the economic recovery and did not begin to show signs of real strength
until March.
The equity markets, however, had an ambivalent reaction to the positive
economic data. Initially, there was some exuberance, and the markets rose
steadily through February. Then, the difficult situation in Iraq, oil price
increases, and a fear of rising interest rates led to a cooling of investor
sentiment. Even with the pullback in early spring, for the six months ended
April 30, 2004, the Dow rose 5.43%, the S&P 500 was up 6.27%, and the NASDAQ was
down .42%.
Looking ahead, as we enter the heart of the 2004 presidential election,
politics and international security will dominate the headlines, along with
high-profile events such as the Democratic and Republican Party conventions, the
2004 Olympic Games in Athens, and the transition of power in Iraq. It is likely
that these events will continue to distract investors.
Nevertheless, we believe that the economy and the markets remain strong.
Rising interest rates may have a short-term dampening effect, but we expect
growth over the next six months to be very robust. In fact, we believe that many
of the growth companies we follow will experience as much as 15% to 25% annual
earnings growth between 2004 and 2006. Over time, shareholders of those
companies should reap the benefits of that growth.
Finally, we want to thank you for the confidence you have placed in Alger
Management. It is our goal not only to find the best investments for you, but
also to continue to earn your trust in every aspect of our business.
Respectfully submitted,
/s/ Dan C. Chung
------------------------
Dan C. Chung
Chief Investment Officer
THE ALGER INSTITUTIONAL FUNDS -2-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2004
SHARES COMMON STOCKS--99.3% VALUE
--------- --------
BEVERAGES--2.1%
40,700 Anheuser-Busch Companies, Inc. ................... $ 2,085,468
-----------
BIOTECHNOLOGY--6.1%
30,400 Biogen Idec Inc.* ................................ 1,793,600
18,950 Genentech, Inc.* ................................. 2,327,060
30,100 ICOS Corporation*+ ............................... 962,899
58,100 Millennium Pharmaceuticals, Inc.* ................ 870,919
-----------
5,954,478
-----------
CAPITAL MARKETS--3.7%
15,750 Affiliated Managers Group, Inc.*+ ................ 767,025
15,500 Goldman Sachs Group, Inc. ........................ 1,499,625
26,000 T. Rowe Price Group Inc. ......................... 1,333,280
-----------
3,599,930
-----------
CHEMICALS--1.0%
25,000 Dow Chemical Co. ................................. 992,250
-----------
COMMERCIAL SERVICES & SUPPLIES--1.9%
39,900 First Data Corporation ........................... 1,811,061
-----------
COMMUNICATION EQUIPMENT--4.3%
50,200 Advanced Fibre Communications, Inc.* ............. 838,340
137,000 Cisco Systems, Inc.* ............................. 2,859,190
43,400 Corning Incorporated* ............................ 478,702
-----------
4,176,232
-----------
COMPUTERS & PERIPHERALS--.7%
57,550 EMC Corporation* ................................. 642,258
-----------
CONSUMER FINANCE--1.5%
30,100 American Express Company ......................... 1,473,395
-----------
ENERGY EQUIPMENT & SERVICES--.3%
6,900 BJ Services Company* ............................. 307,050
-----------
FOOD & STAPLES RETAILING--2.4%
40,100 Wal-Mart Stores, Inc. ............................ 2,285,700
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--4.7%
55,350 Boston Scientific Corporation* ................... 2,279,866
7,700 Guidant Corporation .............................. 485,177
34,800 Medtronic, Inc. .................................. 1,756,008
-----------
4,521,051
-----------
HEALTH CARE PROVIDERS & SERVICES--7.2%
22,900 Aetna Inc. ....................................... 1,894,975
11,800 Anthem, Inc.* .................................... 1,045,244
60,500 Caremark Rx, Inc.* ............................... 2,047,925
25,200 HCA Inc. ......................................... 1,023,876
26,200 PacifiCare Health Systems, Inc.*+ ................ 936,912
-----------
6,948,932
-----------
THE ALGER INSTITUTIONAL FUNDS -3-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
HOTELS, RESTAURANTS & LEISURE--3.1%
34,000 International Game Technology .................... $ 1,283,160
24,500 Royal Caribbean Cruises Ltd.+ .................... 992,985
18,200 Starwood Hotels & Resorts Worldwide, Inc. ........ 724,178
-----------
3,000,323
-----------
HOUSEHOLD PRODUCTS--1.6%
20,800 Fortune Brands, Inc. ............................. 1,586,000
-----------
INDUSTRIAL CONGLOMERATES--5.0%
66,500 General Electric Company ......................... 1,991,675
105,550 Tyco International Ltd. .......................... 2,897,348
-----------
4,889,023
-----------
INFORMATION TECHNOLOGY SERVICES--2.1%
45,800 Automatic Data Processing, Inc. .................. 2,006,498
-----------
INSURANCE--2.1%
28,150 American International Group, Inc. ............... 2,016,947
-----------
INTERNET & CATALOG RETAIL--6.4%
34,550 Amazon.com, Inc.*+ ............................... 1,501,543
33,400 eBay Inc.* ....................................... 2,665,988
80,800 NetFlix Inc.*+ ................................... 2,043,432
-----------
6,210,963
-----------
INTERNET SOFTWARE & SERVICES--2.9%
56,100 Yahoo! Inc.* ..................................... 2,830,806
-----------
MACHINERY--.6%
13,450 Dover Corporation ................................ 538,403
-----------
MEDIA--6.8%
80,333 DIRECTV Group, Inc. (The)* ....................... 1,437,961
29,900 Disney (Walt) Company ............................ 688,597
17,500 Gannett Co., Inc. ................................ 1,516,900
18,300 Viacom Inc. Cl. B ................................ 707,295
92,350 XM Satellite Radio Holdings Inc. Cl. A*+ ......... 2,212,706
-----------
6,563,459
-----------
MULTILINE RETAIL--2.8%
63,500 Target Corporation ............................... 2,753,995
-----------
OIL & GAS--1.3%
21,075 Devon Energy Corporation ......................... 1,289,790
-----------
PHARMACEUTICALS--5.1%
114,900 Pfizer Inc. ...................................... 4,108,824
13,850 Teva Pharmaceutical Industries Ltd. ADR# ......... 852,606
-----------
4,961,430
-----------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--14.2%
58,300 Advanced Micro Devices, Inc.* .................... 829,026
99,700 Altera Corporation* .............................. 1,994,997
41,400 Analog Devices, Inc. ............................. 1,763,640
162,050 Applied Materials, Inc.* ......................... 2,954,171
THE ALGER INSTITUTIONAL FUNDS -4-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30,2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (CONTINUED)
24,700 Broadcom Corporation Cl. A* ...................... $ 932,672
70,650 Linear Technology Corporation .................... 2,517,260
23,600 Novellus Systems, Inc.* .......................... 683,456
104,300 Teradyne, Inc.* .................................. 2,125,634
-------------
13,800,856
-------------
SOFTWARE--7.7%
150,700 Microsoft Corporation ............................ 3,913,679
170,000 Oracle Corporation* .............................. 1,907,400
61,850 VERITAS Software Corporation* .................... 1,649,540
-------------
7,470,619
-------------
SPECIALTY RETAIL--1.0%
28,750 Home Depot, Inc. ................................. 1,011,713
-------------
TEXTILES, APPAREL & LUXURY GOODS--.7%
9,600 NIKE, Inc. Cl. B ................................. 690,720
-------------
Total Common Stocks
(Cost $93,118,601) ............................. 96,419,350
-------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--8.2%
----------
U.S. AGENCY OBLIGATIONS--1.3%
$1,280,000 Student Loan Marketing Association, 0.76%, 5/3/04
(Cost $1,279,946) .............................. 1,279,946
-------------
SHARES OTHER SHORT-TERM INVESTMENTS--6.9%
----------
6,704,664 Securities Lending Quality Trust
(Cost $6,704,664)(b) ........................... 6,704,664
-------------
Total Short-Term Investments
(Cost $7,984,610) .............................. 7,984,610
-------------
Total Investments
(Cost $101,103,211)(a) ................................ 107.5% 104,403,960
Liabilities in Excess of Other Assets ................. (7.5) (7,256,718)
----- -------------
Net Assets ............................................ 100.0% $ 97,147,242
===== =============
- ------------------
* Non-income producing security.
+ Securities partially or fully on loan.
# American Depositary Receipts.
(a) At April 30, 2004, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $101,859,165, amounted to
$2,544,795 which consisted of aggregate gross unrealized appreciation of
$7,537,088 and aggregate gross unrealized depreciation of $4,992,293.
(b) Represents investments of cash collateral received for securities on loan.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -5-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2004
SHARES COMMON STOCKS--90.3% VALUE
--------- --------
AEROSPACE & DEFENSE--1.1%
18,050 Alliant Techsystems Inc.* ........................ $ 1,070,185
-----------
AIR FREIGHT & LOGISTICS--1.1%
33,900 J.B. Hunt Transport Services, Inc.* .............. 1,073,274
-----------
BIOTECHNOLOGY--6.0%
53,600 Alkermes, Inc.* .................................. 821,688
53,300 Ligand Pharmaceuticals Incorporated Cl. B* ....... 1,141,153
84,600 Medarex Inc.* .................................... 806,238
26,150 Onyx Pharmaceuticals, Inc.* ...................... 1,289,718
41,600 QLT Inc.* ........................................ 1,121,952
30,400 Telik, Inc.* ..................................... 713,488
-----------
5,894,237
-----------
BUSINESS SERVICES--.5%
52,700 Digitas Inc.* .................................... 522,257
-----------
CAPITAL MARKETS--2.4%
22,500 Affiliated Managers Group, Inc.* ................. 1,095,750
40,600 National Financial Partners Corporation .......... 1,268,750
-----------
2,364,500
-----------
COMMERCIAL BANKS--2.5%
32,800 UCBH Holdings, Inc. .............................. 1,214,256
28,700 Westcorp ......................................... 1,265,670
-----------
2,479,926
-----------
COMMERCIAL SERVICES & SUPPLIES--6.6%
48,900 Asset Acceptance Capital Corp.* .................. 918,342
25,850 CoStar Group Inc.* ............................... 1,019,266
34,200 Education Management Corporation* ................ 1,212,732
39,200 First Marblehead Corporation (The)* .............. 1,162,672
51,100 Gevity HR, Inc. .................................. 1,125,733
21,900 Universal Technical Institute Inc.* .............. 974,331
-----------
6,413,076
-----------
COMMUNICATION EQUIPMENT--2.8%
46,800 Advanced Fibre Communications, Inc.* ............. 781,560
123,450 Brocade Communications Systems, Inc.* ............ 660,458
78,600 Ixia* ............................................ 701,898
26,150 SafeNet, Inc.* ................................... 562,225
-----------
2,706,141
-----------
COMPUTER SERVICES--2.5%
35,100 Ascential Software Corporation* .................. 596,700
79,400 Intelligroup, Inc.*+ ............................. 479,576
53,500 Open Solutions Inc.* ............................. 1,323,055
-----------
2,399,331
-----------
COMPUTERS & PERIPHERALS--1.1%
23,250 Avid Technology, Inc.* ........................... 1,115,303
-----------
ELECTRIC AND ELECTRONIC EQUIPMENT--1.2%
24,900 Roper Industries, Inc. ........................... 1,208,895
-----------
THE ALGER INSTITUTIONAL FUNDS
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) -6-
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.3%
50,200 Trimble Navigation Limited* ...................... $ 1,257,510
-----------
ENERGY--1.2%
55,300 Swift Energy Company* ............................ 1,199,457
-----------
ENERGY EQUIPMENT & SERVICES--1.2%
54,700 Varco International, Inc.* ....................... 1,131,743
-----------
FINANCIAL SERVICES--.9%
18,850 Piper Jaffray Companies, Inc.* ................... 912,717
-----------
FOOD & STAPLES RETAILING--1.1%
46,900 NeighborCare, Inc.* .............................. 1,085,266
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--5.1%
58,650 ALARIS Medical Systems, Inc.* .................... 1,138,983
21,250 Dade Behring Holdings Inc.* ...................... 977,500
26,400 Immucor, Inc.* ................................... 650,760
52,900 Intuitive Surgical, Inc.* ........................ 854,335
39,060 Wright Medical Group, Inc.* ...................... 1,341,320
-----------
4,962,898
-----------
HEALTH CARE PROVIDERS & SERVICES--7.3%
31,200 Accredo Health, Incorporated* .................... 1,205,880
32,900 LifePoint Hospitals, Inc.* ....................... 1,176,504
35,800 Molina Healthcare Inc.* .......................... 1,276,628
81,050 PSS World Medical, Inc.* ......................... 906,949
62,400 Psychiatric Solutions, Inc.* ..................... 1,450,800
30,200 Sierra Health Services, Inc.* .................... 1,121,930
-----------
7,138,691
-----------
HOTELS, RESTAURANTS & LEISURE--5.5%
41,600 Alliance Gaming Corporation* ..................... 1,038,752
32,975 Applebee's International, Inc. ................... 1,278,771
30,700 Multimedia Games, Inc.*+ ......................... 683,996
20,000 P.F. Chang's China Bistro, Inc.* ................. 977,200
30,400 Station Casinos, Inc. ............................ 1,370,432
-----------
5,349,151
-----------
INFORMATION TECHNOLOGY
CONSULTING & SERVICES--2.1%
40,150 Alliance Data Systems Corporation* ............... 1,396,016
70,700 Lionbridge Technologies, Inc.* ................... 637,714
-----------
2,033,730
-----------
INSURANCE--1.0%
25,150 Arch Capital Group Ltd.* ......................... 1,010,527
-----------
INTERNET SOFTWARE & SERVICES--3.1%
219,100 Chordiant Software Inc.* ......................... 854,490
71,800 Openwave Systems, Inc.* .......................... 611,736
17,300 SINA Corp.* ...................................... 493,050
99,300 ValueClick, Inc.* ................................ 1,028,748
-----------
2,988,024
-----------
THE ALGER INSTITUTIONAL FUNDS -7-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
MACHINERY--2.1%
35,000 Actuant Corporation Cl. A* ....................... $ 1,196,300
27,600 Terex Corporation* ............................... 906,660
-----------
2,102,960
-----------
MEDIA--3.5%
18,340 Media General, Inc. Cl. A ........................ 1,318,279
73,900 Playboy Enterprises, Inc. Cl. B* ................. 964,395
121,100 Spanish Broadcasting System, Inc. Cl. A* ......... 1,177,092
-----------
3,459,766
-----------
MEDICAL DEVICES--1.1%
33,000 Advanced Medical Optics, Inc.* ................... 1,040,820
-----------
OIL & GAS--1.4%
34,000 Evergreen Resources, Inc.* ....................... 1,364,420
-----------
PAPER & FOREST PRODUCTS--1.1%
45,900 Louisiana-Pacific Corporation .................... 1,082,781
-----------
PHARMACEUTICALS--2.0%
35,000 Angiotech Pharmaceuticals, Inc.* ................. 729,750
38,500 Medicines Company* ............................... 1,259,335
-----------
1,989,085
-----------
SEMICONDUCTOR CAPITAL EQUIPMENT--.6%
37,600 SiRF Technology Holdings, Inc.* .................. 601,600
-----------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--5.1%
77,400 Axcelis Technologies, Inc.* ...................... 813,474
45,100 Brooks Automation, Inc.* ......................... 750,464
57,200 Fairchild Semiconductor International, Inc.* ..... 1,113,684
33,850 Integrated Circuit Systems, Inc.* ................ 801,906
25,450 Power Integrations, Inc.* ........................ 626,833
40,300 Semtech Corporation* ............................. 847,106
-----------
4,953,467
-----------
SOFTWARE--4.3%
27,037 Fair Isaac Corporation ........................... 911,688
28,200 Hyperion Solutions Corporation* .................. 1,082,316
47,300 Quest Software, Inc.* ............................ 532,125
29,100 Take-Two Interactive Software, Inc.* ............. 840,699
69,600 Verity, Inc.* .................................... 863,040
-----------
4,229,868
-----------
SPECIALTY RETAIL--7.0%
45,775 Aeropostale, Inc.* ............................... 1,006,592
31,800 AnnTaylor Stores Corporation* .................... 1,288,854
34,350 Children's Place Retail Stores, Inc.* ............ 904,779
30,100 Cost Plus Inc.* .................................. 1,089,620
35,900 Guitar Center Inc.* .............................. 1,490,568
38,400 PETCO Animal Supplies, Inc.* ..................... 1,127,424
-----------
6,907,837
-----------
THE ALGER INSTITUTIONAL FUNDS -8-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
TEXTILES, APPAREL & LUXURY GOODS--.9%
42,950 Quiksilver, Inc.* ................................ $ 929,008
------------
THRIFTS & MORTGAGE FINANCE--1.8%
90,883 Bank Mutual Corporation .......................... 959,724
25,600 Doral Financial Corp. ............................ 839,424
------------
1,799,148
------------
TRADING COMPANIES & DISTRIBUTORS--1.0%
32,700 MSC Industrial Direct Co., Cl. A ................. 937,182
------------
TRANSPORTATION SERVICES--.8%
34,900 Sirva Inc.* ...................................... 810,727
------------
Total Common Stocks
(Cost $79,994,616) ............................. 88,525,508
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--9.8%
----------
U.S. AGENCY OBLIGATIONS
$9,650,000 Student Loan Marketing Association, 0.76%, 5/3/04
(Cost $9,649,593) .............................. 9,649,593
------------
Total Investments
(Cost $89,644,209)(a) ................................. 100.1% 98,175,101
Liabilities in Excess of Other Assets ................. (.1) (133,552)
----- -----------
Net Assets ............................................ 100.0% $98,041,549
===== ===========
- -------------------
* Non-income producing security.
+ Securities partially or fully on loan.
(a) At April 30, 2004, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $90,039,540, amounted to $8,135,561
which consisted of aggregate gross unrealized appreciation of $12,060,399
and aggregate gross unrealized depreciation of $3,924,838.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -9-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2004
SHARES COMMON STOCKS--94.7% VALUE
--------- --------
AEROSPACE & DEFENSE--2.2%
257,125 L-3 Communications Holdings, Inc. ................ $ 15,874,898
------------
AUTO COMPONETS--.8%
144,000 Autoliv, Inc. .................................... 6,124,320
------------
BIOTECHNOLOGY--4.8%
138,700 ICOS Corporation* ................................ 4,437,013
225,000 ImClone Systems Incorporated* .................... 15,048,000
102,100 Invitrogen Corporation* .......................... 7,374,683
578,050 Millennium Pharmaceuticals, Inc.* ................ 8,664,970
------------
35,524,666
------------
BUSINESS SERVICES--.9%
228,900 Robert Half International Inc.* .................. 6,242,103
------------
CAPITAL MARKETS--4.9%
339,993 Affiliated Managers Group, Inc.* ................. 16,557,659
1,243,200 E*TRADE Financial Corporation* ................... 14,122,752
61,100 Legg Mason, Inc. ................................. 5,624,866
------------
36,305,277
------------
CHEMICALS--1.1%
473,000 Millennium Chemicals Inc.* ....................... 7,743,010
------------
COMMERCIAL BANKS--.4%
94,800 SouthTrust Corporation ........................... 2,946,384
------------
COMMERCIAL SERVICES & SUPPLIES--2.1%
162,400 Gevity HR, Inc. .................................. 3,577,672
1,636,700 Service Corporation International* ............... 12,095,213
------------
15,672,885
------------
COMMUNICATION EQUIPMENT--2.9%
179,900 Advanced Fibre Communications, Inc.* ............. 3,004,330
873,750 Avaya Inc.* ...................................... 11,952,900
366,800 Comverse Technology, Inc.* ....................... 6,000,848
------------
20,958,078
------------
COMPUTER SOFTWARE--.7%
4,338,600 i2 Technologies, Inc.* ........................... 4,772,460
------------
COMPUTER TECHNOLOGY--.5%
92,700 Gentex Corp. ..................................... 3,645,891
------------
COMPUTERS & PERIPHERALS--.9%
385,950 PalmOne, Inc.*+ .................................. 6,298,704
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--4.7%
418,900 Rockwell Automation, Inc. ........................ 13,693,841
250,650 Thermo Electron Corporation* ..................... 7,318,980
526,100 Trimble Navigation Limited* ...................... 13,178,805
------------
34,191,626
------------
THE ALGER INSTITUTIONAL FUNDS -10-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
ENERGY EQUIPMENT & SERVICES--3.5%
401,175 Cooper Cameron Corporation* ...................... $ 19,396,811
------------
118,200 Smith International, Inc.* ....................... 6,471,450
------------
25,868,261
------------
HEALTH CARE EQUIPMENT & SUPPLIES--3.3%
38,000 C.R. Bard, Inc. .................................. 4,038,260
169,800 Cytyc Corporation* ............................... 3,633,720
100,700 Fisher Scientific International Inc.* ............ 5,895,985
71,100 INAMED Corporation* .............................. 4,183,524
78,800 Varian Medical Systems, Inc.* .................... 6,764,192
------------
24,515,681
------------
HEALTH CARE PROVIDERS & SERVICES--6.9%
1,502,600 Beverly Enterprises, Inc.* ....................... 8,940,470
241,300 Omnicare, Inc. ................................... 10,009,124
292,600 PacifiCare Health Systems, Inc.* ................. 10,463,376
162,100 Quest Diagnostics Incorporated ................... 13,673,135
324,200 VISX, Incorporated* .............................. 7,096,738
------------
50,182,843
------------
HOTELS, RESTAURANTS & LEISURE--8.1%
230,800 Alliance Gaming Corporation* ..................... 5,763,076
303,800 GTECH Holdings Corporation ....................... 18,507,496
88,050 International Speedway Corporation Cl. A ......... 3,709,546
119,400 MGM MIRAGE* ...................................... 5,469,714
611,800 Multimedia Games, Inc.*+ ......................... 13,630,904
129,600 Royal Caribbean Cruises Ltd. ..................... 5,252,688
148,700 Station Casinos, Inc. ............................ 6,703,396
------------
59,036,820
------------
INFORMATION TECHNOLOGY SERVICES--1.2%
260,700 Alliance Data Systems Corporation* ............... 9,064,539
------------
INSURANCE--.3%
26,900 MGIC Investment Corporation ...................... 1,980,378
------------
INTERNET & CATALOG RETAIL--2.6%
760,300 NetFlix Inc.*+ ................................... 19,227,987
------------
INTERNET SOFTWARE & SERVICES--.3%
549,800 Chordiant Software Inc.* ......................... 2,144,220
------------
MACHINERY--1.0%
185,200 Dover Corporation ................................ 7,413,556
------------
MEDIA--5.9%
163,335 Entercom Communications Corp.* ................... 7,448,076
490,550 Gemstar-TV Guide International, Inc.* ............ 2,742,174
147,850 Meredith Corporation ............................. 7,531,479
262,400 Westwood One, Inc.* .............................. 7,751,296
727,950 XM Satellite Radio Holdings Inc. Cl. A* .......... 17,441,682
------------
42,914,707
------------
THE ALGER INSTITUTIONAL FUNDS -11-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
OIL & GAS--1.5%
229,500 EOG Resources, Inc. .............................. $ 11,302,875
------------
PHARMACEUTICALS--5.6%
456,000 Elan Corporation PLC Sponsored ADR*# ............. 9,849,600
301,900 IVAX Corporation* ................................ 6,430,470
292,400 King Pharmaceuticals, Inc.* ...................... 5,043,900
91,600 MGI Pharma, Inc.* ................................ 5,662,712
294,900 Sepracor Inc.* ................................... 14,099,169
------------
41,085,851
------------
RETAIL--1.0%
144,800 American Eagle Outfitters, Inc.* ................. 3,719,912
99,300 Finish Line Inc. Cl. A* .......................... 3,329,529
------------
7,049,441
------------
ROAD & RAIL-1.3%
288,500 Yellow Roadway Corporation* ...................... 9,823,425
------------
SEMICONDUCTOR CAPITAL EQUIPMENT
6,000 SiRF Technology Holdings, Inc.* .................. 96,000
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--11.9%
621,150 Altera Corporation* .............................. 12,429,212
322,700 Broadcom Corporation Cl. A* ...................... 12,185,152
634,300 Novellus Systems, Inc.* .......................... 18,369,328
398,400 Rambus Inc.* ..................................... 7,422,192
475,900 RF Micro Devices, Inc.*+ ......................... 3,502,624
593,900 Semiconductor Manufacturing International
Corporation ADR*# .............................. 6,942,691
1,108,700 Skyworks Solutions, Inc.* ........................ 9,490,472
836,400 Teradyne, Inc.* .................................. 17,045,832
------------
87,387,503
------------
SOFTWARE--6.2%
124,200 Activision Inc.* ................................. 1,870,452
339,525 Amdocs Limited* .................................. 9,014,389
133,825 Fair Isaac Corporation ........................... 4,512,579
980,700 Manugistics Group, Inc.* ......................... 5,305,587
434,880 PalmSource, Inc.* ................................ 9,058,550
638,800 PeopleSoft, Inc.* ................................ 10,782,944
173,900 Take-Two Interactive Software, Inc.* ............. 5,023,971
------------
45,568,472
------------
SPECIALTY RETAIL--4.8%
2,400 Gander Mountain Company* ......................... 53,880
167,600 Hot Topic, Inc.* ................................. 3,730,776
212,400 Pacific Sunwear of California, Inc.* ............. 4,560,228
265,450 Sharper Image Corporation* ....................... 8,112,152
141,900 Tiffany & Co. .................................... 5,534,100
329,400 Tractor Supply Company* .......................... 12,866,364
------------
34,857,500
------------
THE ALGER INSTITUTIONAL FUNDS -12-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
TEXTILES, APPAREL & LUXURY GOODS--1.0%
293,900 Fossil, Inc.* .................................... $ 7,197,611
------------
WIRELESS TELECOMMUNICATION SERVICES--1.4%
282,750 SpectraSite, Inc.* ............................... 10,566,367
------------
Total Common Stocks
(Cost $663,461,875) ............................ 693,584,339
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--4.9%
----------
U.S. AGENCY OBLIGATIONS
$36,050,000 Student Loan Marketing Association, 0.76%, 5/3/04
(Cost $36,048,478) ............................. 36,048,478
------------
Total Investments
(Cost $699,510,353) .................................... 99.6% 729,632,817
Other Assets in Excess of Liabilities .................. .4 2,793,208
----- ------------
Net Assets ............................................. 100.0% $732,426,025
===== ============
- ------------------
* Non-income producing security.
+ Securities partially or fully on loan.
# American Depositary Receipts.
(a) At April 30, 2004, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $700,891,211, amounted to
$28,741,606 which consisted of aggregate gross unrealized appreciation of
$66,234,572 and aggregate gross unrealized depreciation of $37,492,966.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -13-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2004
SHARES COMMON STOCKS--97.4% VALUE
--------- --------
BIOTECHNOLOGY--12.1%
57,500 Biogen Idec Inc.* ................................ $ 3,392,500
58,000 Genentech, Inc.* ................................. 7,122,400
30,200 Invitrogen Corporation* .......................... 2,181,346
144,400 Millennium Pharmaceuticals, Inc.* ................ 2,164,556
17,600 OSI Pharmaceuticals, Inc.* ....................... 1,298,704
30,200 Protein Design Labs, Inc.* ....................... 739,296
43,500 QLT Inc.*+ ....................................... 1,173,195
------------
18,071,997
------------
COMMERCIAL SERVICES & SUPPLIES--2.5%
19,850 Apollo Group, Inc. Cl. A* ........................ 1,803,968
18,600 First Data Corporation ........................... 844,254
43,100 Monster Worldwide Inc.* .......................... 1,103,791
------------
3,752,013
------------
COMMUNICATION EQUIPMENT--7.4%
100,300 Advanced Fibre Communications, Inc.* ............. 1,675,010
205,000 Brocade Communications Systems, Inc.*+ ........... 1,096,750
197,300 CIENA Corporation* ............................... 816,822
182,900 Cisco Systems, Inc.* ............................. 3,817,123
270,100 Corning Incorporated* ............................ 2,979,203
32,000 Sierra Wireless Inc.* ............................ 715,200
------------
11,100,108
------------
COMPUTER SOFTWARE--.7%
47,600 Check Point Software Technologies Ltd.* .......... 1,115,268
------------
COMPUTER TECHNOLOGY--1.9%
27,900 Gentex Corp. ..................................... 1,097,307
19,700 Research in Motion Limited* ...................... 1,709,172
------------
2,806,479
------------
CONSUMER FINANCE--1.3%
30,600 Capital One Financial Corporation ................ 2,005,218
------------
DIVERSIFIED FINANCIAL SERVICES--1.6%
48,200 Citigroup Inc. ................................... 2,317,938
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--2.2%
111,700 Celestica Inc.*+ ................................. 1,963,686
110,500 Symbol Technologies, Inc. ........................ 1,326,000
------------
3,289,686
------------
FINANCIAL SERVICES--.8%
22,100 Piper Jaffray Companies, Inc.*+ .................. 1,070,082
------------
HEALTH CARE EQUIPMENT & SUPPLIES--6.1%
79,000 Boston Scientific Corporation* ................... 3,254,010
40,900 Guidant Corporation .............................. 2,577,109
13,400 Varian Medical Systems, Inc.* .................... 1,150,256
27,300 Zimmer Holdings, Inc.* ........................... 2,179,905
------------
9,161,280
------------
HEALTH CARE PROVIDERS & SERVICES--6.7%
23,100 Aetna Inc. ....................................... 1,911,525
24,700 Anthem, Inc.* .................................... 2,187,926
THE ALGER INSTITUTIONAL FUNDS -14-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
HEALTH CARE PROVIDERS & SERVICES (CONTINUED)
27,800 Oxford Health Plans, Inc. ........................ $ 1,513,432
41,400 PacifiCare Health Systems, Inc.* ................. 1,480,464
34,100 Quest Diagnostics Incorporated ................... 2,876,335
------------
9,969,682
------------
HOTELS, RESTAURANTS & LEISURE--3.1%
30,200 Alliance Gaming Corporation* ..................... 754,094
63,400 International Game Technology .................... 2,392,716
37,300 Royal Caribbean Cruises Ltd.+ .................... 1,511,769
------------
4,658,579
------------
INFORMATION TECHNOLOGY SERVICES--.9%
30,900 Cognizant Technology Solutions Corporation Cl. A* 1,336,734
------------
INSURANCE--1.3%
28,900 AFLAC Incorporated ............................... 1,220,447
10,700 MGIC Investment Corporation ...................... 787,734
------------
2,008,181
------------
INTERNET & CATALOG RETAIL--6.9%
86,100 eBay Inc.* ....................................... 6,872,502
69,400 NetFlix Inc.*+ ................................... 1,755,126
68,900 Priceline.com*+ .................................. 1,669,447
------------
10,297,075
------------
INTERNET SOFTWARE & SERVICES--4.3%
128,700 Yahoo! Inc.* ..................................... 6,494,202
------------
MACHINERY--1.1%
39,800 Dover Corporation ................................ 1,593,194
------------
MEDIA--6.4%
68,200 Disney (Walt) Company ............................ 1,570,646
26,000 Pixar, Inc.*+ .................................... 1,775,800
182,700 Time Warner Inc.* ................................ 3,073,014
129,800 XM Satellite Radio Holdings Inc. Cl. A* .......... 3,110,008
------------
9,529,468
------------
PHARMACEUTICALS--7.9%
27,900 Allergan, Inc. ................................... 2,456,595
90,200 King Pharmaceuticals, Inc.* ...................... 1,555,950
156,230 Pfizer Inc. ...................................... 5,586,785
36,800 Teva Pharmaceutical Industries Ltd. ADR# ......... 2,265,408
------------
11,864,738
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--9.1%
84,100 Applied Materials, Inc.* ......................... 1,533,143
123,500 Broadcom Corporation Cl. A* ...................... 4,663,360
187,500 Kulicke & Soffa Industries Inc.*+ ................ 1,861,875
85,100 Micron Technology, Inc.* ......................... 1,159,062
69,200 National Semiconductor Corporation* .............. 2,822,668
52,900 Novellus Systems, Inc.* .......................... 1,531,984
------------
13,572,092
------------
THE ALGER INSTITUTIONAL FUNDS -14-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUUED) VALUE
--------- --------
SOFTWARE--6.8%
119,600 Microsoft Corporation ............................ $ 3,106,011
216,500 Oracle Corporation* .............................. 2,429,130
205,600 Red Hat, Inc.*+ .................................. 4,669,176
-------------
10,204,317
-------------
SPECIALTY RETAIL--4.3%
52,950 Aeropostale, Inc.* ............................... 1,164,372
40,300 Bed Bath & Beyond Inc.* .......................... 1,495,936
65,900 Home Depot, Inc. ................................. 2,319,021
23,400 Sharper Image Corporation*+ ...................... 715,104
19,000 Tiffany & Co. .................................... 741,000
-------------
6,435,433
-------------
TEXTILES, APPAREL & LUXURY GOODS--1.4%
48,500 Coach, Inc.* ..................................... 2,066,100
-------------
WIRELESS TELECOMMUNICATION SERVICES--.6%
23,000 SpectraSite, Inc.* ............................... 859,510
-------------
Total Common Stocks (Cost $130,830,179) .......... 145,579,374
-------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--13.3%
----------
U.S. AGENCY OBLIGATIONS--2.1%
$3,150,000 Student Loan Marketing Association, 0.76%, 5/3/04
(Cost $3,149,867) .............................. 3,149,867
-------------
SHARES OTHER SHORT-TERM INVESTMENTS--11.2%
----------
16,795,258 Security Lending Quality Trust
(Cost $16,795,258)(b) .......................... 16,795,258
-------------
Total Short-Term Investments
(Cost $19,945,125) ............................. 19,945,125
-------------
Total Investments
(Cost $150,775,304)(a) ................................ 110.7% 165,524,499
Liabilities in Excess of Other Assets ................. (10.7) (16,051,454)
----- -------------
Net Assets ............................................ 100.0% $149,473,044
===== =============
- -----------------
* Non-income producing security.
+ Securities partially or fully on loan.
# American Depositary Receipts.
(a) At April 30, 2004, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $150,986,925 amounted to
$14,537,574 which consisted of aggregate gross unrealized appreciation of
$21,733,736 and aggregate gross unrealized depreciation of $7,196,162. (b)
Represents investments of cash collateral received for securities on loan.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -15-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2004
SHARES COMMON STOCKS--61.6% VALUE
--------- --------
BEVERAGES--1.2%
350 Anheuser-Busch Companies, Inc. ................... $ 17,934
--------
BIOTECHNOLOGY--3.9%
300 Biogen Idec Inc.* ................................ 17,700
200 Genentech, Inc.* ................................. 24,560
250 ICOS Corporation* ................................ 7,997
600 Millennium Pharmaceuticals, Inc.* ................ 8,994
--------
59,251
--------
CAPITAL MARKETS--2.3%
150 Affiliated Managers Group, Inc.* ................. 7,305
150 Goldman Sachs Group, Inc. ........................ 14,513
250 T. Rowe Price Group Inc. ......................... 12,820
--------
34,638
--------
CHEMICALS--.5%
200 Dow Chemical Co. ................................. 7,938
--------
COMMERCIAL SERVICES & SUPPLIES--.9%
300 First Data Corporation ........................... 13,617
--------
COMMUNICATION EQUIPMENT--2.8%
500 Advanced Fibre Communications, Inc.* ............. 8,350
1,380 Cisco Systems, Inc.* ............................. 28,800
450 Corning Incorporated* ............................ 4,964
--------
42,114
--------
COMPUTERS & PERIPHERALS--.4%
500 EMC Corporation* ................................. 5,580
--------
CONSUMER FINANCE--1.0%
300 American Express Company ......................... 14,685
--------
FOOD & STAPLES RETAILING--1.5%
400 Wal-Mart Stores, Inc. ............................ 22,800
--------
HEALTH CARE EQUIPMENT & SUPPLIES--3.0%
520 Boston Scientific Corporation* ................... 21,419
100 Guidant Corporation .............................. 6,301
350 Medtronic, Inc. .................................. 17,661
--------
45,381
--------
HEALTH CARE PROVIDERS & SERVICES--4.1%
200 Aetna Inc. ....................................... 16,551
75 Anthem, Inc.* .................................... 6,643
550 Caremark Rx, Inc.* ............................... 18,617
300 HCA Inc. ......................................... 12,189
200 PacifiCare Health Systems, Inc.* ................. 7,152
--------
61,152
--------
HOTELS, RESTAURANTS & LEISURE--2.2%
350 International Game Technology .................... 13,209
300 Royal Caribbean Cruises Ltd. ..................... 12,159
200 Starwood Hotels & Resorts Worldwide, Inc. ........ 7,958
--------
33,326
--------
THE ALGER INSTITUTIONAL FUNDS -17-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
HOUSEHOLD PRODUCTS--1.1%
225 Fortune Brands, Inc. ............................. $ 17,156
--------
INDUSTRIAL CONGLOMERATES--3.5%
750 General Electric Company ......................... 22,462
1,100 Tyco International Ltd. .......................... 30,195
--------
52,657
--------
INFORMATION TECHNOLOGY SERVICES--1.2%
400 Automatic Data Processing, Inc. .................. 17,524
--------
INSURANCE--1.1%
235 American International Group, Inc. ............... 16,838
--------
INTERNET & CATALOG RETAIL--3.8%
300 Amazon.com, Inc.* ................................ 13,038
330 eBay Inc.* ....................................... 26,341
700 NetFlix Inc.* .................................... 17,703
--------
57,082
--------
INTERNET SOFTWARE & SERVICES--1.7%
500 Yahoo! Inc.* ..................................... 25,230
--------
MACHINERY--.5%
175 Dover Corporation ................................ 7,005
--------
MEDIA--4.1%
799 DIRECTV Group, Inc. (The)* ....................... 14,302
225 Disney (Walt) Company ............................ 5,182
175 Gannett Co., Inc. ................................ 15,169
150 Viacom Inc. Cl. B ................................ 5,798
850 XM Satellite Radio Holdings Inc. Cl. A* .......... 20,366
--------
60,817
--------
MULTILINE RETAIL--1.7%
600 Target Corporation ............................... 26,022
--------
OIL & GAS--1.0%
250 Devon Energy Corporation ......................... 15,300
--------
PHARMACEUTICALS--3.2%
1,000 Pfizer Inc. ...................................... 35,760
200 Teva Pharmaceutical Industries Ltd. ADR# ......... 12,312
--------
48,072
--------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--9.0%
500 Advanced Micro Devices, Inc.* .................... 7,110
950 Altera Corporation* .............................. 19,010
350 Analog Devices, Inc. ............................. 14,910
1,550 Applied Materials, Inc.* ......................... 28,256
300 Broadcom Corporation Cl. A* ...................... 11,328
700 Linear Technology Corporation .................... 24,941
300 Novellus Systems, Inc.* .......................... 8,688
1,050 Teradyne, Inc.* .................................. 21,399
--------
135,642
--------
THE ALGER INSTITUTIONAL FUNDS -18-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SOFTWARE--4.9%
1,500 Microsoft Corporation ............................ $ 38,955
1,650 Oracle Corporation* .............................. 18,513
600 VERITAS Software Corporation* .................... 16,002
--------
73,470
--------
SPECIALTY RETAIL--.5%
200 Home Depot, Inc. ................................. 7,038
--------
TEXTILES, APPAREL & LUXURY GOODS--.5%
100 NIKE, Inc. Cl. B ................................. 7,195
--------
Total Common Stocks
(Cost $904,486) ................................ 925,464
--------
PRINCIPAL
AMOUNT CORPORATE BONDS--8.8%
----------
AEROSPACE & DEFENSE--.4%
$ 5,000 United Technologies, 4.875%, 11/1/06 ............. 5,240
--------
AUTO EQUIPMENT & SERVICES--.3%
4,000 Hertz Corp., 4.70%, 10/2/06 ...................... 4,053
--------
AUTOMOTIVE--1.2%
8,000 Ford Motor Credit Company, 6.50%, 1/25/07 ........ 8,489
5,000 Ford Motor Credit Company, 7.875%, 6/15/10 ....... 5,500
4,000 General Motors Acceptance Corp., 4.50%, 7/15/06 .. 4,088
--------
18,077
--------
CAPITAL MARKETS--.2%
3,000 J.P. Morgan Chase & Co., 3.625%, 5/1/08 .......... 2,977
--------
COMMUNICATION SERVICES--1.1%
15,000 AT&T Wireless Services Inc., 7.50%, 5/1/07 ....... 16,668
--------
COMPUTERS & PERIPHERALS--.3%
4,000 International Business Machines Corporation,
8.375%, 11/1/19 ................................ 5,130
--------
DIVERSIFIED TELECOMMUNICATION SERVICES--.9%
6,000 Sprint Capital Corp., 6.00%, 1/15/07 ............. 6,382
6,000 Verizon New York Inc., Series A, 6.875%, 4/1/12 .. 6,572
--------
12,954
--------
FOOD CHAINS--.2%
3,000 Fred Meyer, Inc., Senior Note, 7.45%, 3/1/08 ..... 3,378
--------
FOOD PRODUCTS--.2%
3,000 Kraft Foods Inc., 6.25%, 6/1/12 .................. 3,219
--------
INDUSTRIAL CONGLOMERATES--1.7%
16,000 General Electric Company, 5.00%, 2/1/13 .......... 15,936
10,000 Tyco International Group SA, 6.00%, 11/15/13(a) .. 10,155
--------
26,091
--------
THE ALGER INSTITUTIONAL FUNDS -19-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
PRINCIPAL
AMOUNT CORPORATE BONDS (CONTINUED) VALUE
--------- --------
MEDIA--.9%
$ 3,000 Comcast Corporation, 6.50%, 1/15/15 .............. $ 3,169
5,000 Cox Enterprises, Inc., 4.375%, 5/1/08(a) ......... 5,029
5,000 Liberty Media Corporation Floating Rate Note,
2.61%, 9/17/06 ................................. 5,091
----------
13,289
----------
PAPER PACKAGING & FOREST PRODUCTS--1.1%
15,000 Domtar Inc., 8.75%, 8/1/06 ....................... 16,742
----------
UTILITIES--.3%
4,000 Southern California Edison Co., 5.00%, 1/15/14 ... 3,932
----------
Total Corporate Bonds
(Cost $133,706) ................................ 131,750
U.S. GOVERNMENT & AGENCY OBLIGATIONS--25.3%
Federal National Mortgage Association,
18,000 1.875%, 9/15/05 ................................ 17,978
10,000 2.30%, 1/20/06 ................................. 10,003
7,000 3.25%, 8/15/08 ................................. 6,866
U.S. Treasury Bonds,
13,000 7.25%, 5/15/16 ................................. 15,842
5,000 7.50%, 11/15/16 ................................ 6,218
6,000 6.25%, 8/15/23 ................................. 6,669
41,000 6.875%, 8/15/25 ................................ 48,936
50,000 5.375%, 2/15/31 ................................ 50,672
U.S. Treasury Notes,
75,000 2.125%, 10/31/04 ............................... 75,360
17,000 3.50%, 11/15/06 ................................ 17,361
73,000 3.25%, 8/15/07 ................................. 73,627
10,000 3.125%, 9/15/08 ................................ 9,870
40,000 4.375%, 8/15/12 ................................ 40,089
----------
Total U.S. Government & Agency Obligations
(Cost $385,229) ................................ 379,491
----------
Total Investments
(Cost $1,423,421)(b) ................................... 95.7% 1,436,705
Other Assets in Excess of Liabilities .................. 4.3 65,244
----- ----------
Net Assets ............................................. 100.0% $1,501,949
===== ==========
- ---------------
* Non-income producing security.
# American Depositary Receipts.
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
are liquid and may be sold prior to their maturity only to qualified
institutional buyers. These securities represent 1.0% of net assets of the
Fund.
(b) At April 30, 2004, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,432,396, amounted to $4,309
which consisted of aggregate gross unrealized appreciation of $61,998 and
aggregate gross unrealized depreciation of $57,689.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -20-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2004
SHARES COMMON STOCKS--93.1% VALUE
--------- --------
BIOTECHNOLOGY--11.8%
550 Biogen Idec Inc.* ................................ $ 32,450
500 Genentech, Inc.* ................................. 61,400
250 Invitrogen Corporation* .......................... 18,057
1,200 Millennium Pharmaceuticals, Inc.* ................ 17,988
300 Protein Design Labs, Inc.* ....................... 7,344
200 OSI Pharmaceuticals, Inc.* ....................... 14,758
400 QLT Inc.* ........................................ 10,788
--------
162,785
--------
COMMERCIAL SERVICES & SUPPLIES--2.4%
150 Apollo Group, Inc. Cl. A* ........................ 13,632
200 First Data Corporation ........................... 9,078
400 Monster Worldwide Inc.* .......................... 10,244
--------
32,954
--------
COMMUNICATION EQUIPMENT--7.3%
900 Advanced Fibre Communications, Inc.* ............. 15,030
1,900 Brocade Communications Systems, Inc.* ............ 10,165
1,800 CIENA Corporation* ............................... 7,452
1,600 Cisco Systems, Inc.* ............................. 33,392
2,200 Corning Incorporated* ............................ 24,266
450 Sierra Wireless Inc.* ............................ 10,058
--------
100,363
--------
COMPUTER SOFTWARE--.7%
400 Check Point Software Technologies LTD.* .......... 9,372
--------
COMPUTER TECHNOLOGY--1.8%
200 Gentex Corp. ..................................... 7,866
200 Research in Motion Limited* ...................... 17,352
--------
25,218
--------
CONSUMER FINANCE--1.2%
250 Capital One Financial Corporation ................ 16,382
--------
DIVERSIFIED FINANCIAL SERVICES--1.4%
400 Citigroup Inc. ................................... 19,236
--------
ELECTRONIC EQUIPMENT & INSTRUMENTS--2.2%
1,000 Celestica Inc.* .................................. 17,580
1,000 Symbol Technologies, Inc. ........................ 12,000
--------
29,580
--------
FINANCIAL SERVICES--.7%
200 Piper Jaffray Companies, Inc.* ................... 9,684
--------
HEALTH CARE EQUIPMENT & SUPPLIES--5.5%
700 Boston Scientific Corporation* ................... 28,833
350 Guidant Corporation .............................. 22,054
100 Varian Medical Systems, Inc.* .................... 8,584
200 Zimmer Holdings, Inc.* ........................... 15,970
--------
75,441
--------
THE ALGER INSTITUTIONAL FUNDS -21-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
HEALTH CARE PROVIDERS & SERVICES--7.2%
250 Aetna Inc. ....................................... $ 20,688
250 Anthem, Inc.* .................................... 22,145
300 Oxford Health Plans, Inc. ........................ 16,332
400 PacifiCare Health Systems, Inc.* ................. 14,304
300 Quest Diagnostics Incorporated ................... 25,305
--------
98,774
--------
HOTELS, RESTAURANTS & LEISURE--1.0%
350 Royal Caribbean Cruises Ltd. ..................... 14,185
--------
INFORMATION TECHNOLOGY SERVICES--1.0%
300 Cognizant Technology Solutions Corporation Cl. A* 12,978
--------
INSURANCE--1.5%
300 AFLAC INCORPORATED ............................... 12,669
100 MGIC Investment Corporation ...................... 7,362
--------
20,031
--------
INTERNET & CATALOG RETAIL--6.6%
750 eBay Inc.* ....................................... 59,865
650 NetFlix Inc.* .................................... 16,439
600 Priceline.com* ................................... 14,538
--------
90,842
--------
INTERNET SOFTWARE & SERVICES--4.4%
1,200 Yahoo! Inc.* ..................................... 60,552
--------
MACHINERY--.9%
300 Dover Corporation ................................ 12,009
--------
MEDIA--6.3%
600 Disney (Walt) Company ............................ 13,818
250 Pixar, Inc.* ..................................... 17,075
1,700 Time Warner Inc.* ................................ 28,594
1,150 XM Satellite Radio Holdings Inc. Cl. A* .......... 27,554
--------
87,041
--------
PHARMACEUTICALS--7.6%
300 Allergan, Inc. ................................... 26,415
850 King Pharmaceuticals, Inc.* ...................... 14,662
1,250 Pfizer Inc. ...................................... 44,700
300 Teva Pharmaceutical Industries Ltd. ADR# ......... 18,468
--------
104,245
--------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--8.6%
800 Applied Materials, Inc.* ......................... 14,584
1,050 Broadcom Corporation Cl. A* ...................... 39,648
1,700 Kulicke & Soffa Industries Inc.* ................. 16,881
750 Micron Technology, Inc.* ......................... 10,215
600 National Semiconductor Corporation* .............. 24,474
450 Novellus Systems, Inc.* .......................... 13,032
--------
118,834
--------
THE ALGER INSTITUTIONAL FUNDS -22-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2004
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SOFTWARE--6.8%
1,100 Microsoft Corporation ............................ $ 28,567
2,000 Oracle Corporation* .............................. 22,440
1,900 Red Hat, Inc.* ................................... 43,149
----------
94,156
----------
SPECIALTY RETAIL--4.5%
525 Aeropostale, Inc.* ............................... 11,545
400 Bed Bath & Beyond Inc.* .......................... 14,848
600 Home Depot, Inc. ................................. 21,114
200 Sharper Image Corporation* ....................... 6,112
200 Tiffany & Co. .................................... 7,800
----------
61,419
----------
TEXTILES, APPAREL & LUXURY GOODS--1.2%
400 Coach, Inc.* ..................................... 17,040
----------
WIRELESS TELECOMMUNICATION SERVICES--.5%
200 SpectraSite, Inc.* ............................... 7,474
----------
Total Common Stocks
(Cost $1,158,852) .............................. 1,280,595
----------
Total Investments
(Cost $1,158,852)(a) .................................. 93.1% 1,280,595
Other Assets in Excess of Liabilities ................. 6.9 94,940
----- ----------
Net Assets ............................................ 100.0% $1,375,535
===== ==========
- ------------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2004, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,158,852, amounted to $121,743
which consisted of aggregate gross unrealized appreciation of $185,674 and
aggregate gross unrealized depreciation of $63,931.
See Notes to Financial Statements.
[This page intentionally left blank.]
THE ALGER INSTITUTIONAL FUNDS -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 LARGECAP GROWTH INSTITUTIONAL FUND (i)
CLASS I
Six months ended 4/30/04(v)(vi) ............. $ 10.71 $ (0.03)(iv) $ 0.24 $ 0.21 $ -- $ 10.92
Year ended 10/31/03 ......................... 8.70 (0.03)(iv) 2.04 2.01 -- 10.71
Year ended 10/31/02 ......................... 11.63 (0.03)(iv) (2.90) (2.93) -- 8.70
Year ended 10/31/01 ......................... 17.15 (0.03)(iv) (4.50) (4.53) (0.99) 11.63
Year ended 10/31/00 ......................... 17.17 (0.03)(iv) 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
CLASS R
Six months ended 4/30/04(v)(vi) ............. $ 10.66 $ (0.06)(iv) $ 0.25 $ 0.19 $ -- $ 10.85
From 1/27/03 to 10/31/03(iii)(v) ............ 8.12 (0.06)(iv) 2.60 2.54 -- 10.66
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND (ii)
CLASS I
Six months ended 4/30/04(v)(vi) ............. $ 15.10 $ (0.08)(iv) $ 1.06 $ 0.98 $ -- $ 16.08
Year ended 10/31/03 ......................... 10.97 (0.12)(iv) 4.25 4.13 -- 15.10
Year ended 10/31/02 ......................... 13.35 (0.13)(iv) (2.25) (2.38) -- 10.97
Year ended 10/31/01 ......................... 23.78 (0.08)(iv) (10.35) (10.43) -- 13.35
Year ended 10/31/00 ......................... 22.82 (0.06)(iv) 2.50 2.44 (1.48) 23.78
Year ended 10/31/99 ......................... 16.37 (0.12)(iv) 8.65 8.53 (2.08) 22.82
CLASS R
Six months ended 4/30/04(v)(vi) ............. $ 15.05 $ (0.12)(iv) $ 1.05 $ 0.93 $ -- $ 15.98
From 1/27/03 to 10/31/03(iii)(v) ............ 10.72 (0.14)(iv) 4.47 4.33 -- 15.05
ALGER MIDCAP GROWTH INSTITUTIONAL FUND (vii)
CLASS I
Six months ended 4/30/04(v)(vi) ............. $ 14.78 $ (0.07)(iv) $ 0.36 $ 0.29 $ -- $ 15.07
Year ended 10/31/03 ......................... 10.76 (0.11)(iv) 4.13 4.02 -- 14.78
Year ended 10/31/02 ......................... 13.34 (0.10)(iv) (2.48) (2.58) -- 10.76
Year ended 10/31/01 ......................... 17.53 (0.08)(iv) (3.44) (3.52) (0.67) 13.34
Year ended 10/31/00 ......................... 11.80 (0.04)(iv) 6.07 6.03 (0.30) 17.53
Year ended 10/31/99 ......................... 8.83 (0.05)(iv) 3.78 3.73 (0.76) 11.80
CLASS R
Six months ended 4/30/04(v)(vi) ............. $ 14.73 $ (0.12)(iv) $ 0.37 $ 0.25 $ -- $ 14.98
From 1/27/03 to 10/31/03(iii)(v) ............ 10.25 (0.14)(iv) 4.62 4.48 -- 14.73
- ----------------------
(i) Prior to February 28, 2004, the Alger LargeCap Growth Institutional Fund
was the Alger LargeCap Growth Institutional Portfolio and prior to March
1, 2002 it was the Alger Growth Retirement Portfolio.
(ii) Prior to February 28, 2004, the Alger SmallCap Growth Institutional Fund
was the Alger Small Cap Institutional Portfolio.
(iii) Commenced operations January 27, 2003.
(iv) Amount was computed based on average shares outstanding during the
period.
(v) Ratios have been annualized; total return has not been annualized.
(vi) Unaudited.
(vii) Prior to February 28, 2004, the Alger MidCap Growth Institutional Fund
was the Alger MidCap Growth Institutional Portfolio.
See Notes to Financial Statements.
-25-
Ratios/Supplemental Data
---------------------------------------------------
Net Ratio of 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
---------- --------- -------- ----------- -----------
ALGER LARGECAP GROWTH INSTITUTIONAL FUND (i)
CLASS I
Six months ended 4/30/04(v)(vi) ............. 2.0% $ 95,804 1.12% (0.50)% 100.71%
Year ended 10/31/03 ......................... 23.1 91,588 1.14 (0.31) 255.49
Year ended 10/31/02 ......................... (25.2) 108,660 1.14 (0.24) 202.07
Year ended 10/31/01 ......................... (27.5) 97,308 1.09 (0.20) 89.54
Year ended 10/31/00 ......................... 10.3 126,573 1.06 (0.16) 101.29
Year ended 10/31/99 ......................... 42.0 72,746 1.07 (0.39) 143.80
CLASS R
Six months ended 4/30/04(v)(vi) ............. 1.8% $ 1,343 1.62% (1.05)% 100.71%
From 1/27/03 to 10/31/03(iii)(v) ............ 31.3 133 1.62 (0.84) 255.49
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND (ii)
CLASS I
Six months ended 4/30/04(v)(vi) ............. 6.5% $ 97,912 1.23% (0.99)% 72.50%
Year ended 10/31/03 ......................... 37.7 93,300 1.24 (0.99) 139.97
Year ended 10/31/02 ......................... (17.8) 62,780 1.25 (1.01) 138.01
Year ended 10/31/01 ......................... (43.9) 86,790 1.19 (0.46) 191.89
Year ended 10/31/00 ......................... 10.1 187,973 1.17 (0.23) 242.45
Year ended 10/31/99 ......................... 52.7 63,711 1.02 (0.57) 193.32
CLASS R
Six months ended 4/30/04(v)(vi) ............. 6.2% $ 130 1.74% (1.50)% 72.50%
From 1/27/03 to 10/31/03(iii)(v) ............ 40.4 70 1.74 (1.49) 139.97
ALGER MIDCAP GROWTH INSTITUTIONAL FUND (vii)
CLASS I
Six months ended 4/30/04(v)(vi) ............. 2.0% $725,424 1.15% (0.90)% 78.85%
Year ended 10/31/03 ......................... 37.4 540,742 1.17 (0.89) 217.33
Year ended 10/31/02 ......................... (19.3) 215,727 1.17 (0.81) 284.69
Year ended 10/31/01 ......................... (20.6) 217,153 1.13 (0.51) 130.93
Year ended 10/31/00 ......................... 51.3 177,566 1.12 (0.24) 113.14
Year ended 10/31/99 ......................... 42.4 28,233 1.23 (0.49) 165.68
CLASS R
Six months ended 4/30/04(v)(vi) ............. 1.7% $ 7,002 1.65% (1.41)% 78.85%
From 1/27/03 to 10/31/03(iii)(v) ............ 43.7 790 1.66 (1.40) 217.33
THE ALGER INSTITUTIONAL FUNDS -26-
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 FUND (ix)
CLASS I
Six months ended 4/30/04(iv)(v) .................. $ 11.06 $ (0.05) $ 0.14 $ 0.09 $ -- $ 11.15
Year ended 10/31/03 .............................. 8.97 (0.06) 2.15 2.09 -- 11.06
Year ended 10/31/02 .............................. 11.66 (0.08) (2.61) (2.69) -- 8.97
Year ended 10/31/01 .............................. 18.12 (0.03) (6.37) (6.40) (0.06) 11.66
Year ended 10/31/00 .............................. 16.19 (0.09) 2.24 2.15 (0.22) 18.12
Year ended 10/31/99 .............................. 8.98 (0.09) 7.63 7.54 (0.33) 16.19
CLASS R
Six months ended 4/30/04(iv)(v) .................. $ 11.01 $ (0.08) $ 0.15 $ 0.07 $ -- $ 11.08
From 1/27/03 to 10/31/03(ii)(iv) ................. 8.36 (0.08) 2.73 2.65 -- 11.01
ALGER BALANCED INSTITUTIONAL FUND (x)
CLASS I
SIX MONTHS ENDED 4/30/04(IV)(V) .................. $ 7.41 $ 0.01 $ 0.05 $ 0.06 $ -- $ 7.47
Year ended 10/31/03 .............................. 6.67 (0.01) 0.75 0.74 -- 7.41
Year ended 10/31/02 .............................. 8.20 (0.39) (1.14) (1.53) -- 6.67
From 12/4/00 to 10/31/01(i)(iv) .................. 10.00 (0.11) (1.69) (1.80) -- 8.20
CLASS R
Six months ended 4/30/04(iv)(v) .................. $ 7.38 $ (0.01) $ 0.06 $ 0.05 $ -- $ 7.43
From 1/27/03 to 10/31/03(ii)(iv) ................. 6.43 (0.04) 0.99 0.95 -- 7.38
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND (xi)
CLASS I
Six months ended 4/30/04(iv)(v) .................. $ 5.38 $ (0.04) $ 0.07 $ 0.03 $ (0.03) $ 5.38
Year ended 10/31/03 .............................. 4.43 (0.09) 1.04 0.95 -- 5.38
Year ended 10/31/02 .............................. 6.37 (0.77) (1.17) (1.94) -- 4.43
From 12/4/00 to 10/31/01(i)(iv) .................. 10.00 (0.30) (3.33) (3.63) -- 6.37
CLASS R
Six months ended 4/30/04(iv)(v) .................. $ 5.37 $ (0.05) $ 0.07 $ 0.02 $ (0.03) $ 5.36
From 1/27/03 to 10/31/03(ii)(iv) ................. 4.13 (0.08) 1.32 1.24 -- 5.37
- ------------------
(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.
(vi) Amount has been reduced by 0.73% due to expense reimbursement.
(vii) Amount has been reduced by 0.34% due to expense reimbursement.
(viii) Amount has been reduced by 0.35% due to expense reimbursement.
(ix) Prior to February 28, 2004 the Alger Capital Appreciation Institutional
Fund was the Alger Capital Appreciation Institutional Portfolio.
(x) Prior to February 28, 2004 the Alger Balanced Institutional Fund was the
Alger Balanced Institutional Portfolio.
(xi) Prior to February 28, 2004 the Alger Socially Responsible Growth
Institutional Fund was the Alger Socially Responsible Growth
Institutional Portfolio.
See Notes to Financial Statements
-27-
Ratios/Supplemental Data
---------------------------------------------------
Net Ratio of 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
---------- --------- -------- ----------- -----------
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND (ix)
CLASS I
Six months ended 4/30/04(iv)(v) .................. 0.8% $148,950 1.24% (0.83)% 70.97%
Year ended 10/31/03 .............................. 23.3 160,569 1.23 (0.59) 187.72
Year ended 10/31/02 .............................. (23.1) 132,010 1.23 (0.73) 180.39
Year ended 10/31/01 .............................. (35.4) 187,187 1.18 (0.21) 104.17
Year ended 10/31/00 .............................. 13.1 279,916 1.14 (0.43) 144.16
Year ended 10/31/99 .............................. 84.3 96,711 1.29 (0.59) 155.40
CLASS R
Six months ended 4/30/04(iv)(v) .................. 0.6% $ 523 1.74% (1.33)% 70.97%
From 1/27/03 to 10/31/03(ii)(iv) ................. 31.7 66 1.72 (1.01) 187.72
ALGER BALANCED INSTITUTIONAL FUND (x)
CLASS I
SIX MONTHS ENDED 4/30/04(IV)(V) .................. 0.9% $ 1,444 1.43%(VI) 0.28% 94.88%
Year ended 10/31/03 .............................. 11.1 1,409 2.00 (0.15) 149.42
Year ended 10/31/02 .............................. (18.7) 225 6.72 (5.21) 321.89
From 12/4/00 to 10/31/01(i)(iv) .................. (18.0) 108 3.13 (1.44) 15.99
CLASS R
Six months ended 4/30/04(iv)(v) .................. 0.7% $ 58 1.93%(vi) (0.22)% 94.88%
From 1/27/03 to 10/31/03(ii)(iv) ................. 14.8 58 2.56 (0.74) 149.42
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND (xi)
CLASS I
Six months ended 4/30/04(iv)(v) .................. 0.5% $ 1,288 1.67%(vii) (1.30)% 74.48%
Year ended 10/31/03 .............................. 21.4 1,277 2.26 (1.69) 187.82
Year ended 10/31/02 .............................. (30.5) 46 13.48 (13.17) 205.83
From 12/4/00 to 10/31/01(i)(iv) .................. (36.3) 77 5.31 (4.75) 114.33
CLASS R
Six months ended 4/30/04(iv)(v) .................. 0.3% $ 88 2.17%(viii) (1.80)% 74.48%
From 1/27/03 to 10/31/03(ii)(iv) ................. 30.0 66 2.92 (2.29) 187.82
THE ALGER INSTITUTIONAL FUNDS -28-
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
April 30, 2004
LargeCap SmallCap
Growth Growth
Fund Fund
------------- -------------
ASSETS:
Investments in securities, at value (identified cost*)
--see accompanying schedules of investments
(value of securities loaned**) ..................... $ 104,403,960 $ 98,175,101
Cash ................................................. 15,154 20,495
Receivable for investment securities sold ............ 163,337 2,107,434
Receivable for shares of beneficial interest sold .... 77,633 114,496
Dividends and interest receivable .................... 16,532 4,018
Receivable from Investment Manager--Note 3(a) ........ -- --
Prepaid expenses ..................................... 2,626 4,171
------------- -------------
Total Assets ....................................... 104,679,242 100,425,715
------------- -------------
LIABILITIES:
Payable for securities loaned ........................ 6,704,664 --
Payable for investment securities purchased .......... -- 2,250,582
Payable for shares of beneficial interest redeemed ... 713,318 18,729
Accrued investment management fees ................... 63,757 70,193
Accrued transfer agent fees .......................... 4,251 4,129
Accrued expenses ..................................... 46,010 40,533
------------- -------------
Total Liabilities .................................. 7,532,000 2,384,166
------------- -------------
NET ASSETS ........................................... $ 97,147,242 $ 98,041,549
============= =============
Net Assets Consist of:
Paid-in capital .................................... $ 130,189,470 $ 169,123,782
Accumulated net investment loss .................... (247,683) (478,995)
Undistributed net realized gain (accumulated loss) . (36,095,294) (79,134,130)
Net unrealized appreciation (depreciation) ......... 3,300,749 8,530,892
------------- -------------
NET ASSETS ........................................... $ 97,147,242 $ 98,041,549
============= =============
Shares of beneficial interest outstanding--Note 6
Class I ............................................ 8,772,696 6,089,958
============= =============
Class R ............................................ 123,825 8,132
============= =============
Net Asset Value Per Share
Class I ............................................ $ 10.92 $ 16.08
============= =============
Class R ............................................ $ 10.85 $ 15.98
============= =============
*Identified cost ..................................... $ 101,103,211 $ 89,644,209
============= =============
**Value of securities loaned ......................... $ 6,331,943 $ 969,713
============= =============
See Notes to Financial Statements.
-29-
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Fund Fund Fund Fund
------------- ------------- ------------- -------------
ASSETS:
Investments in securities, at value (identified cost*)
--see accompanying schedules of investments
(value of securities loaned**) ..................... $ 729,632,817 $ 165,524,499 $ 1,436,705 $ 1,280,595
Cash ................................................. 16,151 14,076 59,974 56,746
Receivable for investment securities sold ............ 8,308,802 9,899,614 -- 79,951
Receivable for shares of beneficial interest sold .... 2,070,268 144,445 -- --
Dividends and interest receivable .................... 8,740 20,219 5,906 167
Receivable from Investment Manager--Note 3(a) ........ -- -- 2,951 1,107
Prepaid expenses ..................................... 15,924 4,242 393 711
------------- ------------- ------------- -------------
Total Assets ....................................... 740,052,702 175,607,095 1,505,929 1,419,277
------------- ------------- ------------- -------------
LIABILITIES:
Payable for securities loaned ........................ -- 16,795,258 -- --
Payable for investment securities purchased .......... 3,560,482 4,322,140 -- 40,109
Payable for shares of beneficial interest redeemed ... 3,233,075 4,830,225 -- --
Accrued investment management fees ................... 505,769 111,742 953 902
Accrued transfer agent fees .......................... 31,611 6,573 64 60
Accrued expenses ..................................... 295,740 68,113 2,963 2,671
------------- ------------- ------------- -------------
Total Liabilities .................................. 7,626,677 26,134,051 3,980 43,742
------------- ------------- ------------- -------------
NET ASSETS ........................................... $ 732,426,025 $ 149,473,044 $ 1,501,949 $ 1,375,535
============= ============= ============= =============
Net Assets Consist of:
Paid-in capital .................................... $ 695,709,093 $ 260,972,296 $ 1,405,673 $ 1,204,482
Accumulated net investment loss .................... (3,000,298) (666,871) (518) (9,364)
Undistributed net realized gain (accumulated loss) . 9,594,766 (125,581,576) 83,510 58,674
Net unrealized appreciation (depreciation) ......... 30,122,464 14,749,195 13,284 121,743
------------- ------------- ------------- -------------
NET ASSETS ........................................... $ 732,426,025 $ 149,473,044 $ 1,501,949 $ 1,375,535
============= ============= ============= =============
Shares of beneficial interest outstanding--Note 6
Class I ............................................ 48,148,728 13,358,312 193,266 239,297
============= ============= ============= =============
Class R ............................................ 467,530 47,206 7,776 16,350
============= ============= ============= =============
Net Asset Value Per Share
Class I ............................................ $ 15.07 $ 11.15 $ 7.47 $ 5.38
============= ============= ============= =============
Class R ............................................ $ 14.98 $ 11.08 $ 7.43 $ 5.36
============= ============= ============= =============
*Identified cost ..................................... $ 699,510,353 $ 150,775,304 $ 1,423,421 $ 1,158,852
============= ============= ============= =============
**Value of securities loaned ......................... $ 37,111,976 $ 15,989,068 $ -- $ --
============= ============= ============= =============
THE ALGER INSTITUTIONAL FUNDS -30-
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended April 30, 2004
LargeCap SmallCap
Growth Growth
Fund Fund
------------ ------------
INVESTMENT INCOME
Income:
Dividends ............................. $ 293,697 $ 89,081
Interest .............................. 8,545 26,129
Stock loan income ..................... 6,411 583
------------ ------------
Total income ......................... 308,653 115,793
------------ ------------
Expenses:
Management fees--Note 3(a) ............ 371,702 409,492
Shareholder servicing fees ............ 123,901 120,439
Custodian fees ........................ 12,678 18,245
Transfer agent fees--Note 3(d) ........ 24,780 24,088
Professional Fees ..................... 3,973 4,239
Printing Fees ......................... 8,804 9,535
Distribution fees--Note 3(b) .......... 1,892 242
Trustees' fees ........................ 1,476 1,439
Miscellaneous ......................... 7,130 7,069
------------ ------------
556,336 594,788
Less expense reimbursement--Note 3(a) ... -- --
------------ ------------
Total Expenses ........................ 556,336 594,788
------------ ------------
NET INVESTMENT INCOME (LOSS) ............ (247,683) (478,995)
------------ ------------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments ...... 11,477,637 15,287,803
Net change in unrealized appreciation
(depreciation) on investments ......... (9,561,080) (9,237,230)
------------ ------------
Net realized and unrealized gain (loss)
on investments ...................... 1,916,557 6,050,573
------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................... $ 1,668,874 $ 5,571,578
============ ============
See Notes to Financial Statements.
-31-
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Fund Fund Fund Fund
------------ ------------ ------------ ------------
INVESTMENT INCOME
Income:
Dividends ............................. $ 638,486 $ 310,499 $ 2,622 $ 2,598
Interest .............................. 147,933 7,048 10,368 --
Stock loan income ..................... 39,679 11,996 -- --
------------ ------------ ------------ ------------
Total income ......................... 826,098 329,543 12,990 2,598
------------ ------------ ------------ ------------
Expenses:
Management fees--Note 3(a) ............ 2,646,018 684,637 5,682 5,283
Shareholder servicing fees ............ 826,881 201,364 -- --
Custodian fees ........................ 48,010 14,707 6,119 5,322
Transfer agent fees--Note 3(d) ........ 165,376 40,273 379 352
Professional Fees ..................... 21,923 5,171 2,426 1,425
Printing Fees ......................... 48,880 13,280 878 896
Distribution fees--Note 3(b) .......... 10,916 1,203 148 214
Trustees' fees ........................ 9,797 2,408 22 21
Miscellaneous ......................... 48,595 33,371 905 820
------------ ------------ ------------ ------------
3,826,396 996,414 16,559 14,333
Less expense reimbursement--Note 3(a) ... -- -- (5,565) (2,371)
------------ ------------ ------------ ------------
Total Expenses ........................ 3,826,396 996,414 10,994 11,962
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) ............ (3,000,298) (666,871) 1,996 (9,364)
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments ...... 38,919,587 8,259,321 98,839 58,833
Net change in unrealized appreciation
(depreciation) on investments ......... (33,457,756) (5,739,585) (89,158) (41,530)
------------ ------------ ------------ ------------
Net realized and unrealized gain (loss)
on investments ...................... 5,461,831 2,519,736 9,681 17,303
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................... $ 2,461,533 $ 1,852,865 $ 11,677 $ 7,939
============ ============ ============ ============
THE ALGER INSTITUTIONAL FUNDS -32-
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
For the six months ended April 30, 2004
LargeCap SmallCap
Growth Growth
Fund Fund
------------- -------------
Net investment income (loss) ....................................... $ (247,683) $ (478,995)
Net realized gain on investments ................................... 11,477,637 15,287,803
Net change in unrealized appreciation
(depreciation) on investments .................................... (9,561,080) (9,237,230)
------------- -------------
Net increase in net assets
resulting from operations ........................................ 1,668,874 5,571,578
------------- -------------
Dividends and distributions to
shareholders from:
Net investment income
Class I .......................................................... -- --
Class R .......................................................... -- --
Net realized gains
Class I .......................................................... -- --
Class R .......................................................... -- --
------------- -------------
Total Dividends and distributions to shareholders .................. -- --
------------- -------------
Increase (decrease) from shares of beneficial interest transactions:
Class I .......................................................... 2,480,542 (957,073)
Class R .......................................................... 1,276,775 57,133
------------- -------------
Net increase (decrease) from shares
of beneficial interest
transactions--Note 6 ............................................. 3,757,317 (899,940)
------------- -------------
Total increase (decrease) ...................................... 5,426,191 4,671,638
Net Assets:
Beginning of period .............................................. 91,721,051 93,369,911
End of period .................................................... $ 97,147,242 $ 98,041,549
============= =============
Accumulated net investment loss .................................... $ (247,683) $ (478,995)
============= =============
THE ALGER INSTITUTIONAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended October 31, 2003
LargeCap SmallCap
Growth Growth
Fund Fund
------------- -------------
Net investment income (loss) ....................................... $ (261,009) $ (710,692)
Net realized gain on investments ................................... 1,152,603 6,987,791
Net change in unrealized appreciation
(depreciation) on investments .................................... 15,611,686 18,406,668
------------- -------------
Net increase in net assets resulting
from operations .................................................. 16,503,280 24,683,767
Increase (decrease) from shares
of beneficial interest transactions:
Class I .......................................................... (33,554,980) 5,856,223
Class R .......................................................... 113,202 50,000
------------- -------------
Net increase (decrease) from shares
of beneficial interest transactions--Note 6 ...................... (33,441,778) 5,906,223
------------- -------------
Total increase (decrease) ...................................... (16,938,498) 30,589,990
Net Assets:
Beginning of year ................................................ 108,659,549 62,779,921
------------- -------------
End of year ...................................................... $ 91,721,051 $ 93,369,911
============= =============
Accumulated net investment loss .................................... $ -- $ --
============= =============
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -33-
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
For the six months ended April 30, 2004
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Fund Fund Fund Fund
------------- ------------- ------------- -------------
Net investment income (loss) ....................................... $ (3,000,298) $ (666,871) $ 1,996 $ (9,364)
Net realized gain on investments ................................... 38,919,587 8,259,321 98,839 58,833
Net change in unrealized appreciation
(depreciation) on investments .................................... (33,457,756) (5,739,585) (89,158) (41,530)
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations ........................................ 2,461,533 1,852,865 11,677 7,939
------------- ------------- ------------- -------------
Dividends and distributions to
shareholders from:
Net investment income
Class I .......................................................... -- -- (756) --
Class R .......................................................... -- -- -- --
Net realized gains
Class I .......................................................... -- -- -- (6,181)
Class R .......................................................... -- -- -- (397)
------------- ------------- ------------- -------------
Total Dividends and distributions to shareholders .................. -- -- (756) (6,578)
------------- ------------- ------------- -------------
Increase (decrease) from shares of beneficial interest transactions:
Class I .......................................................... 181,955,552 (13,483,326) 24,351 9,197
Class R .......................................................... 6,476,818 468,666 -- 21,688
------------- ------------- ------------- -------------
Net increase (decrease) from shares
of beneficial interest
transactions--Note 6 ............................................. 188,432,370 (13,014,660) 24,351 30,885
------------- ------------- ------------- -------------
Total increase (decrease) ...................................... 190,893,903 (11,161,795) 35,272 32,246
Net Assets:
Beginning of period .............................................. 541,532,122 160,634,839 1,466,677 1,343,289
------------- ------------- ------------- -------------
End of period .................................................... $ 732,426,025 $ 149,473,044 $ 1,501,949 $ 1,375,535
============= ============= ============= =============
Accumulated net investment loss .................................... $ (3,000,298) $ (666,871) $ (518) $ (9,364)
============= ============= ============= =============
THE ALGER INSTITUTIONAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended October 31, 2003
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Fund Fund Fund Fund
------------- ------------- ------------- -------------
Net investment income (loss) ................ $ (2,845,362) $ (810,731) $ (2,146) $ (19,332)
Net realized gain on investments ............ 56,150,560 6,960,195 38,966 71,228
Net change in unrealized appreciation
(depreciation) on investments ............. 62,853,285 24,157,024 99,718 164,707
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations ........................... 116,158,483 30,306,488 136,538 216,603
Increase (decrease) from shares
of beneficial interest transactions:
Class I ................................... 208,938,090 (1,731,344) 1,055,634 1,029,125
Class R ................................... 708,160 50,000 50,000 51,231
------------- ------------- ------------- -------------
Net increase (decrease) from shares
of beneficial interest transactions--Note 6 209,646,250 (1,681,344) 1,105,634 1,080,356
------------- ------------- ------------- -------------
Total increase (decrease) ............... 325,804,733 28,625,144 1,242,172 1,296,959
Net Assets:
Beginning of year ......................... 215,727,389 132,009,695 224,505 46,330
------------- ------------- ------------- -------------
End of year ............................... $ 541,532,122 $ 160,634,839 $ 1,466,677 $ 1,343,289
============= ============= ============= =============
Accumulated net investment loss ............. $ -- $ -- $ (1,758) $--
============= ============= ============= =============
THE ALGER INSTITUTIONAL FUNDS -34-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--GENERAL:
The Alger Institutional Funds (formerly The Alger Institutional Fund) (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 and currently issues an unlimited number of shares
of beneficial interest in six funds--LargeCap Growth Fund, SmallCap Growth Fund,
MidCap Growth Fund, Capital Appreciation Fund, Balanced Fund and Socially
Responsible Growth Fund (the "Funds"). Prior to February 28, 2004, the LargeCap
Growth Fund was the LargeCap Growth Portfolio, the SmallCap Growth Fund was the
Small Cap Portfolio, the MidCap Growth Fund was the MidCap Growth Portfolio, the
Capital Appreciation Fund was the Capital Appreciation Portfolio, the Balanced
Fund was the Balanced Portfolio and the Socially Responsible Growth Fund was the
Socially Responsible Growth Portfolio. The LargeCap Growth Fund, SmallCap Growth
Fund, MidCap Growth Fund, Capital Appreciation Fund and Socially Responsible
Growth Fund normally invest primarily in equity securities and each has an
investment objective of long-term capital appreciation. The Balanced Fund'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 Fund 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 Funds 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 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
included within the Nasdaq market shall be valued at the Nasdaq official closing
price (NOCP) on the day of valuation, or if there be no NOCP issued, at the last
sale price on such day. Securities included within the Nasdaq market for which
there is no NOCP and no last sale price on the day of valuation shall be valued
at the mean between the last bid and asked prices on such day.
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.
THE ALGER INSTITUTIONAL FUNDS -35-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
(c) REPURCHASE AGREEMENTS: The Funds 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 custodian 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 Funds. Additional collateral is
obtained when necessary.
(d) LENDING OF FUND SECURITIES: The Funds lend their securities to financial
institutions, provided that the market value of the securities loaned will not
at any time exceed one third of a Fund's total assets, as defined. The Funds
earn fees on the securities loaned. In order to protect against the risk of
failure by the borrower to return the securities loaned or any delay in the
delivery of such securities, the loan is collateralized by cash, letters of
credit or U.S. Government securities that are maintained in an amount equal to
at least 100 percent of the current market value of the loaned securities. The
market value of the loaned securities is determined at the close of business of
the Funds and any required additional collateral is delivered to the Funds on
the next business day. At April 30, 2004, the value of securities loaned and
collateral received thereon were as follows:
VALUE OF
SECURITIES VALUE OF
LOANED COLLATERAL
--------- ---------
LargeCap Growth Fund ......................... $ 6,331,943 $ 6,704,664
SmallCap Growth Fund ......................... 969,713 1,027,997
MidCap Growth Fund ........................... 37,111,976 40,048,197
Capital Appreciation Fund .................... 15,989,068 16,795,258
Balanced Fund ................................ -- --
Socially Responsible Growth Fund ............. -- --
(3) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on
the ex-dividend date. With respect to all Funds, dividends from net investment
income and distributions from net realized gains, offset by any loss carry
THE ALGER INSTITUTIONAL FUNDS -36-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 Funds' 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 paid-in capital,
depending on the type of book/tax differences that may exist.
At October 31, 2003, the LargeCap Growth Fund, the SmallCap Growth Fund,
the MidCap Growth Fund, the Capital Appreciation Fund, the Balanced Fund and the
Socially Responsible Growth Fund reclassified $261,009, $710,692, $2,845,362,
$810,731, $388 and $19,332, respectively, from undistributed net investment
income (accumulated loss) and $0, $0, $0, $0, $392 and $19,332, 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 Funds and are designed to present the Funds' capital accounts on a tax
basis.
(f) FEDERAL INCOME TAXES: It is each Fund'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 Fund maintains such compliance, no federal income tax
provision is required. Each Fund is treated as a separate entity for the purpose
of determining such compliance. At October 31, 2003, the net capital loss
carryforwards of the LargeCap Growth Fund, the SmallCap Growth Fund, the MidCap
Growth Fund, the Capital Appreciation Fund, the Balanced Fund and the Socially
Responsible Growth Fund which may be used to offset future net realized gains
were approximately $46,816,979, $94,026,601, $27,943,965, $133,629,281, $8,862
and $0, respectively, and expire 2008 through 2010.
(g) 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, which are only applicable to Class R shares.
(h) INDEMNIFICATION: The Trust enters into contracts that contain a variety of
indemnification provisions. The Trust's maximum exposure under these
arrangements is unknown. The Trust does not anticipate recognizing any loss
related to these arrangements.
THE ALGER INSTITUTIONAL FUNDS -37-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(i) 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 Fund, pursuant to the pro
visions 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 Fund at the following annual rates:
LargeCap Growth Fund .............................. .75%
SmallCap Growth Fund .............................. .85
MidCap Growth Fund ................................ .80
Capital Appreciation Fund ......................... .85
Balanced Fund ..................................... .75
Socially Responsible Growth Fund .................. .75
Alger Management has established an expense cap for the Balanced Fund and
the Socially Responsible Growth Fund effective March 1, 2004. Alger Management
will reimburse these Funds if annualized operating expenses exceed 1.25% and
1.75% for Class I Shares and Class R Shares, respectively, of average daily net
assets. For the period ended April 30, 2004, Alger Management reimbursed the
Balanced Fund and the Socially Responsible Growth Fund $5,565 and $2,371,
respectively. Alger Management has undertaken to reimburse fees exceeding the
expense cap thru October 31, 2004.
(b) DISTRIBUTION FEES: Class R Shares--The Funds have adopted a Distribution
Plan pursuant to which Class R shares of each Fund pay Fred Alger & Company,
Incorporated, the Trust'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 Funds 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, 2004, the
LargeCap Growth Fund, the Small Cap Fund, the MidCap Growth Fund, the Capital
Appreciation Fund, the Balanced Fund and the Socially Responsible Growth Fund
paid the Distributor commissions of $181,896, $83,368, $944,546, $214,948,
$1,742 and $1,790, 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 Trust. During
the six months ended April 30, 2004, the LargeCap Growth Fund, the Small Cap
Fund, the MidCap Growth Fund, the Capital Appreciation Fund, the
THE ALGER INSTITUTIONAL FUNDS -38-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Balanced Fund and the Socially Responsible Growth Fund incurred fees of $24,780,
$24,088, $165,376, $40,273, $379 and $352, respectively, for services provided
by Alger Services.
(e) OTHER TRANSACTIONS WITH AFFILIATES: Certain trustees and officers of the
Trust are directors and officers of Alger Management, the Distributor and Alger
Services. At April 30, 2004, Alger Management and its affiliates owned 41,969
shares, 24,046 shares, 52,972 shares, 11,243 shares and 3,640 shares of the
LargeCap Growth Fund, the SmallCap Growth Fund, the MidCap Growth Fund, the
Capital Appreciation Fund and the Balanced Fund, respectively.
NOTE 4--SECURITIES TRANSACTIONS:
The following summarizes the securities transactions by the Funds, other
than short-term securities, for the six months ended April 30, 2004:
PURCHASES SALES
---------- -----
LargeCap Growth Fund ......................... $101,355,092 $ 97,532,714
SmallCap Growth Fund ......................... 65,919,591 71,931,433
MidCap Growth Fund ........................... 700,811,847 491,649,163
Capital Appreciation Fund .................... 114,336,822 132,290,539
Balanced Fund ................................ 1,419,557 1,376,485
Socially Responsible Growth Fund ............. 1,018,246 1,077,660
NOTE 5--LINES OF CREDIT:
The Trust 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 Fund, the Trust borrows under such lines
of credit exclusively for temporary or emergency purposes.
The Capital Appreciation Fund may borrow up to 1/3 of the value of its
assets, as defined, to purchase additional securities. To the extent the Capital
Appreciation Fund 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, 2004, the Fund had borrowings which averaged $2,513,187 at a weighted
average interest rate of 0.78%.
NOTE 6--SHARE CAPITAL:
The Trust 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 ALGER INSTITUTIONAL FUNDS -39-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
During the six months ended April 30, 2004, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
-------- --------
LargeCap Growth Fund
Class I
Shares sold ........................ 1,990,672 $ 22,642,158
Shares redeemed .................... (1,772,587) (20,161,616)
------------- -------------
Net increase ....................... 218,085 $ 2,480,542
============= =============
Class R
Shares sold ........................ 128,919 $ 1,476,830
Shares redeemed .................... (17,551) (200,055)
------------- -------------
Net increase ....................... 111,368 $ 1,276,775
============= =============
SmallCap Growth Fund
Class I
Shares sold ........................ 1,573,840 $ 25,536,957
Shares redeemed .................... (1,661,655) (26,494,030)
------------- -------------
Net decrease ....................... (87,815) $ (957,073)
============= =============
Class R
Shares sold ........................ 3,476 $ 57,245
Shares redeemed .................... (8) (112)
------------- -------------
Net increase ....................... 3,468 $ 57,133
============= =============
MidCap Growth Fund
Class I
Shares sold ........................ 18,896,519 $ 296,550,472
Shares redeemed .................... (7,323,220) (114,594,920)
------------- -------------
Net increase ....................... 11,573,299 $ 181,955,552
============= =============
Class R
Shares sold ........................ 511,525 $ 8,005,676
Shares redeemed .................... (97,647) (1,528,858)
------------- -------------
Net increase ....................... 413,878 $ 6,476,818
============= =============
Capital Appreciation Fund
Class I
Shares sold ........................ 4,066,582 $ 47,169,151
Shares redeemed .................... (5,230,982) (60,652,477)
------------- -------------
Net decrease ....................... (1,164,400) $ (13,483,326)
============= =============
Class R
Shares sold ........................ 50,418 $ 575,270
Shares redeemed .................... (9,193) (106,604)
------------- -------------
Net increase ....................... 41,225 $ 468,666
============= =============
THE ALGER INSTITUTIONAL FUNDS -40-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SHARES AMOUNT
-------- --------
Balanced Fund
Class I
Shares sold ................................ 6,195 $ 47,734
Dividends reinvested ....................... 100 756
Shares redeemed ............................ (3,182) (24,139)
------------ ------------
Net increase ............................... 3,113 $ 24,351
============ ============
Socially Responsible Growth Fund
Class I
Shares sold ................................ 632 $ 3,477
Dividends reinvested ....................... 1,124 6,014
Shares redeemed ............................ (55) (294)
------------ ------------
Net increase ............................... 1,701 $ 9,197
======== ========
Class R
Shares sold ................................ 4,329 $ 23,490
Dividends reinvested ....................... 74 398
Shares redeemed ............................ (388) (2,200)
------------ ------------
Net increase ............................... 4,015 $ 21,688
============ ============
During the year ended October 31, 2003, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
-------- --------
LargeCap Growth Fund
Class I
Shares sold ............................... 3,441,255 $ 31,652,971
Shares redeemed ........................... (7,375,519) (65,207,951)
------------ ------------
Net decrease .............................. (3,934,264) $(33,554,980)
============ ============
Class R*
Shares sold ............................... 12,585 $ 114,463
Shares redeemed ........................... (128) (1,261)
------------ ------------
Net increase .............................. 12,457 $ 113,202
============ ============
SmallCap Growth Fund
Class I
Shares sold ............................... 2,571,061 $ 32,428,232
Shares redeemed ........................... (2,118,720) (26,572,009)
------------ ------------
Net increase .............................. 452,341 $ 5,856,223
============ ============
Class R*
Shares sold ............................... 4,664 $ 50,000
============ ============
THE ALGER INSTITUTIONAL FUNDS -41-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SHARES AMOUNT
-------- --------
MidCap Growth Fund
Class I
Shares sold ............................ 25,008,417 $ 310,763,082
Shares redeemed ........................ (8,479,728) (101,824,992)
------------- -------------
Net increase ........................... 16,528,689 $ 208,938,090
============= =============
Class R*
Shares sold ............................ 56,993 $ 754,543
Shares redeemed ........................ (3,341) (46,383)
------------- -------------
Net increase ........................... 53,652 $ 708,160
============= =============
Capital Appreciation Fund
Class I
Shares sold ............................ 5,572,926 $ 54,110,955
Shares redeemed ........................ (5,763,698) (55,842,299)
------------- -------------
Net decrease ............................. (190,772) $ (1,731,344)
============= =============
Class R*
Shares sold ............................ 5,981 $ 50,000
============= =============
Balanced Fund
Class I
Shares sold ............................ 167,211 $ 1,126,128
Shares redeemed ........................ (10,703) (70,494)
------------- -------------
Net increase ........................... 156,508 $ 1,055,634
============= =============
Class R*
Shares sold ............................ 7,776 $ 50,000
============= =============
Socially Responsible Growth Fund
Class I
Shares sold ............................ 254,629 $ 1,157,804
Shares redeemed ........................ (27,498) (128,679)
------------- -------------
Net increase ........................... 227,131 $ 1,029,125
============= =============
Class R*
Shares sold ............................ 12,335 $ 51,231
============= =============
- ------------
* Initially offered January 27, 2003.
THE ALGER INSTITUTIONAL FUNDS -42-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 7--DISTRIBUTIONS TO SHAREHOLDERS:
Distributions paid by the Funds during the six months ended April 30,
2004, consisted entirely of ordinary income. There were no distributions paid
for the year ended October 31, 2003.
As of October 31, 2003, the components of distributable earnings on a tax
basis were as follows:
LargeCap Growth Fund
Undistributed ordinary income ................................. --
Undistributed long-term gain .................................. --
Capital loss carryforward ..................................... $ 46,816,979
Unrealized appreciation (depreciation) ........................ 12,105,875
SmallCap Growth Fund
Undistributed ordinary income ................................. --
Undistributed long-term gain .................................. --
Capital loss carryforward ..................................... $ 94,026,601
Unrealized appreciation (depreciation) ........................ 17,372,791
MidCap Growth Fund
Undistributed ordinary income ................................. --
Undistributed long-term gain .................................. --
Capital loss carryforward ..................................... $ 27,943,965
Unrealized appreciation (depreciation) ........................ 62,199,362
Capital Appreciation Fund
Undistributed ordinary income ................................. --
Undistributed long-term gain .................................. --
Capital loss carryforward ..................................... $133,629,281
Unrealized appreciation (depreciation) ........................ 20,277,159
Balanced Fund
Undistributed ordinary income ................................. $145
Undistributed long-term gain .................................. --
Capital loss carryforward ..................................... 8,862
Unrealized appreciation (depreciation) ........................ 94,072
Socially Responsible Growth Fund
Undistributed ordinary income ................................. $6,419
Undistributed long-term gain .................................. --
Capital loss carryforward ..................................... --
Unrealized appreciation (depreciation) ........................ 163,273
The difference between book basis and tax basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales.
THE ALGER INSTITUTIONAL FUNDS -43-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 8--REGULATORY MATTERS:
The Office of the New York State Attorney General, the Attorney General of
West Virginia, the Massachusetts Securities Division of the Office of the
Secretary of the Commonwealth, and the United States Securities and Exchange
Commission ("SEC") have contacted Alger Management in connection with their
investigation of practices in the mutual fund industry identified as "market
timing" and "late trading" of mutual fund shares. In response to these
inquiries, Alger Management and its counsel have been investigating certain
shareholder trading practices, both in the Trust and in other mutual funds that
it manages (the "Alger Mutual Funds"). Alger Management has assured the board
that if it be determined that improper trading practices in the Trust
detrimentally affected its performance, Alger Management will make appropriate
restitution. At the present time, Alger Management is unable to estimate the
impact, if any, that the outcome of these investigations may have on the Trust's
results of operations or financial condition.
On October 16, 2003, the SEC commenced a civil proceeding against a former
vice chairman of Alger Management's immediate parent, in connection with alleged
market timing arrangements with certain investors in The Alger Funds (another
complex of Alger Mutual Funds). That settlement specifically provided: "The
findings herein are made pursuant to [the former vice chairman's settlement]
Offer and are not binding on any other person or entity in this or any other
proceeding." Neither Alger Management nor any of the Alger Mutual Funds was a
party to this proceeding.
On October 31, 2003, Peter D. DeMayo, as Custodian for James Liam DeMayo,
identifying himself as a shareholder of Spectra Fund, filed a purported class
action lawsuit against The Alger Funds, Spectra Fund, various portfolios of The
Alger Funds, Alger Management, the former vice chairman, Veras Management
Partners, LLP et al., in the United States District Court for the Southern
District of New York, and served the complaint in the lawsuit on Alger
Management and the fund defendants on November 10, 2003. The suit, based
primarily upon the SEC settlement with the former vice chairman, alleges, among
other things, that the fund defendants made false and misleading statements in
their prospectuses in violation of Section 11 of the Securities Act of 1933,
that other defendants violated the "control person" provisions of Section 15 of
the Securities Act and Section 20(a) of the Securities Exchange Act of 1934,
that all defendants committed fraud in violation of Section 10(b) of the
Securities Exchange Act and Rule 10b-5 thereunder, and that Alger Management
breached a fiduciary duty to plaintiffs. The suit seeks, among other things,
compensatory damages, recovery of advisory fees paid to Alger Management, and
payment of the plaintiff's counsel and expert fees.
The Judicial Panel on Multi District Litigation has referred the DEMAYO
case to the District of Maryland for consolidation with other federal cases
involving
THE ALGER INSTITUTIONAL FUNDS -44-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the mutual fund industry. Other securities class actions have been commenced
after DEMAYO that make substantially similar allegations for the same class
period. These cases have also been transferred to the District of Maryland and
they include: BILLMAN V. FRED ALGER MANAGEMENT, INC., 03 CV 9167; BUHS V. FRED
ALGER MANAGEMENT, INC., 03 CV 8959; GARFIELD V. FRED ALGER MANAGEMENT, INC., ET
AL., 03 CV 9239; HENZEL V. ALGER SMALL PORTFOLIO, ET AL., 03 CV 8747; CROCKET V.
ALGER SMALL PORTFOLIO, 03 CV 9915, FRIEDMAN V. ALGER SMALL PORTFOLIO, 03 CV
9426, JOHNSON V. ALGER SMALL PORTFOLIO, ET AL., 03 CV 9858, and NEEYAF
DISTRIBUTING V. ALGER SMALL PORTFOLIO, 03 CV 9501. Of these, the BILLMAN and
BUHS cases include the Trust's funds as defendants.
In addition, on November 25, 2003 a derivative action was filed in the U.S.
District Court for the Eastern District of New York against Fred Alger
Management, Inc. See BERNSTEIN V. FRED ALGER MANAGEMENT, INC., 03 CV 5958. This
matter has also been transferred to the District of Maryland.
Finally, three derivative actions have been filed in The Superior Court of
the Commonwealth of Massachusetts, County of Suffolk, against certain officers
and trustees of Alger - related funds. These matters include, JONATHAN CLAIN V.
FRED M. ALGER, III, ET AL., JAMES LAUFER V. FRED M. ALGER, III, ET AL. and DAVID
GRANT V. FRED M. ALGER, III, ET AL.
Alger Management does not believe that the foregoing lawsuits will
materially affect its ability to perform its management contracts with any of
the funds that it manages, and the management of the Trust believes that it will
not be materially adversely affected by the pending lawsuits.
THE ALGER INSTITUTIONAL FUNDS
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 Funds. It is not authorized for distribution to prospective
investors unless accompanied by an effective Prospectus for the Trust, which
contains information concerning the Trust's investment policies, fees and
expenses as well as other pertinent information.
PROXY VOTING POLICIES
A description of the policies and procedures the Trust uses to determine how to
vote proxies relating to portfolio securities is available, without charge, by
calling (800) 992-3362.
[ALGER LOGO]
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, NJ 07302
SAIF161404 L1
ITEM 2. CODE OF ETHICS.
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Not applicable
(e) Not applicable
(f) 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. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
At a meeting of the Board of Trustees held May 11, 2004, the Board adopted a
policy that it shall decline to consider candidates recommended by shareholders
to fill a vacancy or a likely vacancy on the Board. The Board believes that the
independent Trustees are in the best position to screen and select qualified
candidates for Board membership who will provide the experience, perspective,
skills and other attributes necessary to effectively advance the interests of
registrant's shareholders. Prior to May 11, 2004, the Board did not have a
formal policy with respect to consideration of shareholder nominees for the
Board. In screening and selecting qualified candidates for Board membership, the
independent Trustees may consider candidates recommended by Fred Alger
Management, Inc., and may retain an executive search firm and/or outside legal,
financial or other external counsel that they deem necessary or desirable to
assist in the nominating and/or screening process.
ITEM 10. 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 last fiscal half-year that materially affected,
or are reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable
(a)(2) Certifications of principal executive officer and principal financial
officer as required by rule 30a-2(a) under the Investment Company Act of
1940 are attached as Exhibit 99.CERT
(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 Institutional Funds
By: /s/Dan C. Chung
Dan C. Chung
President
Date: June 30, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/Dan C. Chung
Dan C. Chung
President
Date: June 30, 2004
By: /s/Frederick A. Blum
Frederick A. Blum
Treasurer
Date: June 30, 2004