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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, 2005
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, 2005
(UNAUDITED)
[LOGO OMITTED]
TABLE OF CONTENTS
THE ALGER INSTITUTIONAL FUNDS
Letter to Our Shareholders............................................ 1
Shareholder Expense Example........................................... 2
Portfolio Summary..................................................... 4
Schedules of Investments.............................................. 5
Statements of Assets and Liabilities.................................. 32
Statements of Operations.............................................. 34
Statements of Changes in Net Assets................................... 36
Financial Highlights.................................................. 40
Notes to Financial Statements......................................... 44
Dear Shareholders, May 31, 2005
The more things change, the more they remain the same, or so it seemed for
the six months ended April 30, 2005. The markets rallied strongly at the end of
2004 after the U.S. presidential election was decided, but they retreated in the
first weeks of 2005 as investors confronted uncertainties about the direction of
the economy, the pace of interest rate hikes, elections in Iraq, and rising
energy costs. Through the winter and into spring, the markets traded in a narrow
range and drifted down. While the broader economic data were positive and
corporate earnings were stronger in the first quarter of 2005 than many had
anticipated, general investor skepticism weighed on the markets.
During the six-month reporting period, the S&P 500 was up 3.28%, the Dow
was up 2.78% and the NASDAQ was down 2.38%.
Corporate earnings continued to beat Wall Street's expectations. Energy
companies thrived, as did innovative companies across sectors, especially those
that were able to increase productivity and tap into growing global markets. The
S&P 500's earnings grew by 13.6% in the first quarter of 2005, handily beating
analysts' January estimates of approximately 8%.
We continue to believe that the strength of the economy and the potential
of the markets are being underestimated by both investors and commentators. Both
the U.S. and the global economy have been expanding at more than a 4% annual
rate, and many companies are generating double-digit earnings growth. Growth
stocks in particular are trading at very modest multiples relative to the
projected growth rates, and if past patterns hold, we believe it is only a
matter of time before such stocks begin to outperform.
We want you to know that we value the trust you have placed in Alger. We
will continue to look for dynamic, forward-looking companies that are creating
the businesses and marketplaces of tomorrow, bringing growth opportunities to
our investors.
Respectfully submitted,
/s/ Daniel C. Chung
-------------------
Daniel C. Chung
CHIEF INVESTMENT OFFICER
THE ALGER INSTITUTIONAL FUNDS -2-
SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: transaction
costs, if applicable, and ongoing costs, including management fees, distribution
(12b-1) fees, if applicable, and other fund expenses. This example is intended
to help you understand your ongoing costs (in dollars) of investing in the Fund
and to compare these costs with the ongoing costs of investing in other mutual
funds.
The example below is based on an investment of $1,000 invested at the
beginning of the six-month period starting November 1, 2004 and ending April 30,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides
information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the
expenses that you would have paid over the period. Simply divide your account
value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6),
then multiply the result by the number in the first line under the heading
entitled "Expenses Paid During the Period" to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides
information about hypothetical account values and hypothetical expenses based on
the Fund's actual expense ratios for each class of shares and an assumed rate of
return of 5% per year before expenses, which is not the Fund's actual return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transaction costs. Therefore, the
second line under each class of shares in the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
THE ALGER INSTITUTIONAL FUNDS -3-
SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) (CONTINUED)
RATIO OF
EXPENSES TO
AVERAGE
EXPENSES PAID NET ASSETS
BEGINNING ENDING DURING THE PERIOD FOR THE SIX
ACCOUNT VALUE ACCOUNT VALUE NOVEMBER 1, 2004 TO MONTHS ENDED
NOVEMBER 1, 2004 APRIL 30, 2005 APRIL 30, 2005(b) APRIL 30, 2005(c)
---------------- -------------- ------------------- -----------------
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual ................. $1,000.00 $1,028.50 $5.43 1.08%
Hypothetical(a) ........ 1,000.00 1,019.44 5.41 1.08
CLASS R:
Actual ................. 1,000.00 1,027.00 7.94 1.58%
Hypothetical(a) ........ 1,000.00 1,016.96 7.90 1.58
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual ................. $1,000.00 $1,027.40 $6.13 1.22%
Hypothetical(a) ........ 1,000.00 1,018.74 6.11 1.22
CLASS R:
Actual ................. 1,000.00 1,027.00 8.39 1.67%
Hypothetical(a) ........ 1,000.00 1,016.51 8.35 1.67
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual ................. $1,000.00 $1,026.30 $5.58 1.11%
Hypothetical(a) ........ 1,000.00 1,019.29 5.56 1.11
CLASS R:
Actual ................. 1,000.00 1,024.40 8.03 1.60%
Hypothetical(a) ........ 1,000.00 1,016.86 8.00 1.60
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
CLASS I:
Actual ................. $1,000.00 $1,051.60 $6.05 1.19%
Hypothetical(a) ........ 1,000.00 1,018.89 5.96 1.19
CLASS R:
Actual ................. 1,000.00 1,049.30 8.59 1.69%
Hypothetical(a) ........ 1,000.00 1,016.41 8.45 1.69
ALGER BALANCED INSTITUTIONAL FUND
CLASS I:
Actual ................. $1,000.00 $1,020.60 $6.01 1.20%
Hypothetical(a) ........ 1,000.00 1,018.84 6.01 1.20
CLASS R:
Actual ................. 1,000.00 1,019.40 8.46 1.69%
Hypothetical(a) ........ 1,000.00 1,016.41 8.45 1.69
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
CLASS I:
Actual ................. $1,000.00 $1,042.70 $6.03 1.19%
Hypothetical(a) ........ 1,000.00 1,018.89 5.96 1.19
CLASS R:
Actual ................. 1,000.00 1,037.20 8.49 1.68%
Hypothetical(a) ........ 1,000.00 1,016.46 8.40 1.68
- ---------------
(a) 5% annual return before expenses.
(b) Expenses are equal to the annualized expense ratio of the respective share
class, multiplied by the average account value over the period, multiplied
by 181/365 (to reflect the one-half year period).
(c) Annualized.
THE ALGER INSTITUTIONAL FUNDS -4-
PORTFOLIO SUMMARY* (UNAUDITED)
SOCIALLY
LARGECAP SMALLCAP MIDCAP CAPITAL RESPONSIBLE
GROWTH GROWTH GROWTH APPRECIATION GROWTH
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
SECTORS FUND FUND FUND FUND FUND
- ------- ------------- ------------- ------------- ------------- -------------
Consumer Discretionary ............... 20.0% 13.5% 26.2% 9.9% 10.2%
Consumer Staples ..................... 9.8 1.7 1.9 7.0 10.2
Energy ............................... 8.3 9.1 13.2 6.7 7.9
Financials ........................... 6.9 8.0 5.9 7.1 6.8
Health Care .......................... 23.0 19.9 17.6 25.5 22.2
Industrials .......................... 8.8 14.1 8.8 9.5 7.2
Information Technology ............... 17.1 25.0 21.2 25.2 26.2
Materials ............................ 2.5 2.3 2.0 0.7 0.6
Telecommunication Services ........... 2.7 2.8 1.6 1.5 1.5
Utilities ............................ 0.8 0.0 0.0 0.0 0.0
Cash and Net Other Assets ............ 0.1 3.6 1.6 6.9 7.2
------ ------ ------ ------ ------
100.0% 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ====== ======
BALANCED
INSTITUTIONAL
SECTORS/SECURITY TYPE FUND
- --------------------- -------------
Consumer Discretionary ........................................... 12.0%
Consumer Staples ................................................. 6.4
Energy ........................................................... 5.3
Financials ....................................................... 4.5
Health Care ...................................................... 14.7
Industrials ...................................................... 4.8
Information Technology ........................................... 11.0
Materials ........................................................ 1.6
Telecommunication Services ....................................... 1.6
Utilities ........................................................ 0.5
-------
Total Common Stocks ............................................ 62.4
-------
Corporate Bonds .................................................. 9.0
Agency Bonds ..................................................... 9.5
US Treasury Bonds ................................................ 16.5
-------
Total Bonds .................................................... 35.0
-------
Cash and Net Other Assets ........................................ 2.6
-------
................................................................. 100.0%
=======
- ----------
* Based on Net Assets
THE ALGER INSTITUTIONAL FUNDS -5-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2005
SHARES COMMON STOCKS--99.9% VALUE
--------- -------
AEROSPACE & DEFENSE--3.4%
27,200 Boeing Company (The) .............................. $ 1,618,944
14,100 General Dynamics Corporation ...................... 1,481,205
-----------
3,100,149
-----------
BEVERAGES--2.1%
34,600 PepsiCo, Inc. ..................................... 1,925,144
-----------
BIOTECHNOLOGY--1.2%
15,100 Genentech, Inc.* .................................. 1,071,194
-----------
BUILDING & CONSTRUCTION--1.9%
24,100 Pulte Homes Inc. .................................. 1,721,945
-----------
CAPITAL MARKETS--2.4%
22,900 Merrill Lynch & Co., Inc. ......................... 1,234,997
17,600 Morgan Stanley .................................... 926,112
-----------
2,161,109
-----------
CHEMICALS--2.5%
35,200 Dow Chemical Company (The) ........................ 1,616,736
16,100 Rohm and Haas Company ............................. 702,926
-----------
2,319,662
-----------
COMMUNICATION EQUIPMENT--2.4%
46,200 Nokia Oyj ADR# .................................... 738,276
41,900 QUALCOMM Inc. ..................................... 1,461,891
-----------
2,200,167
-----------
COMMUNICATION TECHNOLOGY--.8%
31,000 Nextel Partners, Inc. Cl. A* ...................... 729,120
-----------
COMPUTERS & PERIPHERALS--3.0%
49,500 Apple Computer, Inc.* ............................. 1,784,970
76,600 EMC Corporation* .................................. 1,004,992
-----------
2,789,962
-----------
CONSUMER PRODUCTS--1.2%
44,400 Eastman Kodak Company ............................. 1,110,000
-----------
DIVERSIFIED FINANCIAL SERVICES--2.1%
28,400 Franklin Resources, Inc. .......................... 1,950,512
-----------
ELECTRICAL EQUIPMENT--.4%
8,200 Rockwell Automation, Inc. ......................... 379,086
-----------
ELECTRIC UTILITIES--.8%
9,900 Entergy Corporation ............................... 725,670
-----------
ENERGY EQUIPMENT & SERVICES--3.9%
30,900 National-Oilwell Varco Inc.* ...................... 1,227,966
11,700 Suncor Energy, Inc. ............................... 431,262
18,000 Transocean Inc.* .................................. 834,660
64,700 Williams Companies, Inc. (The) .................... 1,101,194
-----------
3,595,082
-----------
FINANCIAL INFORMATION SERVICES--1.0%
33,200 Genworth Financial Inc. Cl. A ..................... 927,940
-----------
THE ALGER INSTITUTIONAL FUNDS -6-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
FOOD & BEVERAGES--.4%
9,100 Yum! Brands, Inc. ................................. $ 427,336
-----------
FOOD & STAPLES RETAILING--3.7%
33,900 CVS Corporation ................................... 1,748,562
33,750 Wal-Mart Stores, Inc. ............................. 1,590,975
-----------
3,339,537
-----------
FREIGHT & LOGISTICS--1.5%
16,250 FedEx Corp. ....................................... 1,380,437
-----------
HEALTH CARE--1.6%
11,100 WellPoint Inc. * .................................. 1,418,025
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--3.0%
13,600 Baxter International Inc. ......................... 504,560
33,800 Medtronic, Inc. ................................... 1,781,260
13,700 Varian Medical Systems, Inc.* ..................... 462,238
-----------
2,748,058
-----------
HEALTH CARE PROVIDERS & SERVICES--8.1%
23,400 Caremark Rx, Inc.* ................................ 937,170
18,300 CIGNA Corporation ................................. 1,683,234
43,400 HCA, Inc. ......................................... 2,423,456
45,600 Health Management Associates, Inc. Cl. A .......... 1,127,688
22,600 Humana Inc.* ...................................... 783,090
8,500 PacifiCare Health Systems, Inc.* .................. 507,960
-----------
7,462,598
-----------
HOTELS, RESTAURANTS & LEISURE--4.5%
24,200 Harrah's Entertainment, Inc. ...................... 1,588,004
84,400 Hilton Hotels Corporation ......................... 1,842,452
12,100 Starwood Hotels & Resorts Worldwide, Inc. ......... 657,514
-----------
4,087,970
-----------
INDUSTRIAL CONGLOMERATES--1.4%
41,800 Tyco International Ltd. ........................... 1,308,758
-----------
INSURANCE--1.4%
36,900 St. Paul Travelers Companies, Inc. (The) .......... 1,321,020
-----------
INTERNET & CATALOG RETAIL--2.0%
26,300 eBay Inc.* ........................................ 834,499
85,100 Netflix Inc.* ..................................... 983,756
-----------
1,818,255
-----------
INTERNET SOFTWARE & SERVICES--4.1%
7,400 Google Inc. Cl. A* ................................ 1,628,000
62,700 Yahoo! Inc. * ..................................... 2,163,777
-----------
3,791,777
-----------
MACHINERY--2.1%
21,400 Caterpillar Inc. .................................. 1,884,270
-----------
THE ALGER INSTITUTIONAL FUNDS -7-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
MEDIA--5.1%
51,800 Disney (Walt) Company ............................. $ 1,367,520
109,700 News Corporation Cl. A ............................ 1,676,216
13,600 Viacom Inc. Cl. B ................................. 470,832
41,650 XM Satellite Radio Holdings Inc. Cl. A* ........... 1,155,371
-----------
4,669,939
-----------
METALS & MINING--.8%
15,600 Peabody Energy Corporation ........................ 682,812
-----------
MULTILINE RETAIL--2.4%
14,600 Federated Department Stores, Inc. ................. 839,500
29,000 Penny, (JC) Co. Inc. .............................. 1,374,890
-----------
2,214,390
-----------
OIL & GAS--3.7%
11,300 BP PLC Sponsored ADR# ............................. 688,170
8,700 Enterprise Products Partners L.P. ................. 224,721
31,400 Exxon Mobil Corporation ........................... 1,790,742
27,600 Sasol Ltd. ADR# ................................... 641,700
-----------
3,345,333
-----------
PERSONAL PRODUCTS--3.6%
33,400 Avon Products, Inc. ............................... 1,338,672
37,400 Gillette Company (The) ............................ 1,931,336
-----------
3,270,008
-----------
PHARMACEUTICALS--9.0%
24,200 Johnson & Johnson ................................. 1,660,846
39,700 Merck & Co. Inc. .................................. 1,345,830
19,000 Novartis AG ADR# .................................. 925,870
32,200 Sanofi-Aventis ADR# ............................... 1,428,714
94,100 Schering-Plough Corporation ....................... 1,963,867
20,900 Wyeth ............................................. 939,246
-----------
8,264,373
-----------
RETAIL--1.0%
50,400 Saks Incorporated ................................. 858,816
-----------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--4.0%
73,250 Intel Corporation ................................. 1,722,840
42,150 Linear Technology Corporation ..................... 1,506,441
16,100 Xilinx, Inc. ...................................... 433,734
-----------
3,663,015
-----------
SOFTWARE--3.5%
9,300 Electronic Arts Inc.* ............................. 496,527
58,200 Microsoft Corporation ............................. 1,472,460
107,000 Oracle Corporation* ............................... 1,236,920
-----------
3,205,907
-----------
SPECIALTY RETAIL--1.5%
26,450 Lowe's Companies, Inc. ............................ 1,378,310
-----------
THE ALGER INSTITUTIONAL FUNDS -8-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
TOBACCO--.5%
7,200 Altria Group, Inc. ................................ $ 467,928
-----------
WIRELESS TELECOMMUNICATION SERVICES--1.9%
76,500 Sprint Corporation ................................ 1,702,890
-----------
Total Common Stocks
(Cost $90,401,501) .............................. 91,418,504
-----------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--0.2%
---------
U.S. AGENCY OBLIGATIONS
$160,000 Federal Home Loan Banks, 2.61%, 5/2/05
(Cost $159,977) ............................... 159,977
-----------
Total Investments
(Cost $90,561,478)(a) ................................ 100.1% 91,578,481
Liabilities in Excess of Other Assets .................. (0.1) (50,632)
----- -----------
Net Assets ............................................. 100.0% $91,527,849
===== ===========
- ------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30,2005, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $90,561,478, amounted to
$1,017,003 which consisted of aggregate gross unreliazed appreciation of
$4,163,607 and aggregate gross unrealized depreciation of $3,146,604.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -9-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2005
SHARES COMMON STOCKS--96.4% VALUE
--------- -------
AEROSPACE & DEFENSE--3.1%
47,300 BE Aerospace, Inc.* ............................... $ 574,222
20,150 Esterline Technologies Corporation* ............... 651,248
20,050 SI International Inc.* ............................ 451,927
-----------
1,677,397
-----------
AIRLINES--.9%
58,900 AirTran Holdings, Inc.* ........................... 488,870
-----------
BIOTECHNOLOGY--5.1%
40,700 Encysive Pharmaceuticals Inc.* .................... 397,232
21,700 Protein Design Labs, Inc.* ........................ 387,996
23,650 Rigel Pharmaceuticals, Inc.* ...................... 405,597
16,850 Serologicals Corporation* ......................... 362,781
26,500 Theravance, Inc.* ................................. 469,050
41,850 Vicuron Pharmaceuticals Inc.* ..................... 684,248
-----------
2,706,904
-----------
BUSINESS SERVICES--.8%
9,350 MicroStrategy Incorporated* ....................... 407,005
-----------
CAPITAL MARKETS--2.5%
11,250 Affiliated Managers Group, Inc.* .................. 703,462
17,450 National Financial Partners Corporation ........... 667,288
-----------
1,370,750
-----------
CHEMICALS--1.3%
18,300 Lubrizol Corporation .............................. 709,491
-----------
COMMERCIAL BANKS--1.9%
28,200 Boston Private Financial Holdings, Inc. ........... 629,988
11,150 East West Bancorp, Inc. ........................... 358,138
-----------
988,126
-----------
COMMERCIAL SERVICES & SUPPLIES--4.1%
15,350 CoStar Group Inc.* ................................ 607,093
31,950 FTI Consulting, Inc.* ............................. 705,456
37,100 Gevity HR, Inc. ................................... 595,455
7,600 Universal Technical Institute Inc.* ............... 265,316
-----------
2,173,320
-----------
COMMUNICATION EQUIPMENT--2.9%
82,800 Arris Group Inc.* ................................. 628,452
20,500 NETGEAR, Inc.* .................................... 330,665
84,500 Powerwave Technologies, Inc.* ..................... 610,090
-----------
1,569,207
-----------
COMMUNICATION TECHNOLOGY--.8%
28,500 Cox Radio, Inc. Cl. A* ............................ 448,020
-----------
THE ALGER INSTITUTIONAL FUNDS -10-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
COMPUTERS & PERIPHERALS--4.1%
21,000 Applied Films Corporation* ........................ $ 502,110
11,900 Avid Technology, Inc.* ............................ 589,169
103,850 Maxtor Corporation* ............................... 503,672
58,150 Silicon Image, Inc.* .............................. 585,571
-----------
2,180,522
-----------
COMPUTER SERVICES--1.0%
28,750 Open Solutions Inc.* .............................. 537,625
-----------
ELECTRIC AND ELECTRONIC EQUIPMENT--1.3%
9,950 Roper Industries, Inc. ............................ 673,317
-----------
ENERGY--.7%
8,700 Arch Coal, Inc. ................................... 385,758
-----------
ENERGY EQUIPMENT & SERVICES--2.9%
24,400 Core Laboratories N.V.* ........................... 575,840
17,400 Lone Star Technologies, Inc.* ..................... 677,556
21,500 Pioneer Drilling Company* ......................... 283,585
-----------
1,536,981
-----------
FINANCIAL INFORMATION SERVICES--1.0%
22,850 GFI Group Inc.* ................................... 533,547
-----------
FOOD & STAPLES RETAILING--.8%
16,150 Performance Food Group Co.* ....................... 434,273
-----------
FOOD PRODUCTS--.9%
11,650 Ralcorp Holdings, Inc.* ........................... 461,573
-----------
HEALTH CARE EQUIPMENT & SUPPLIES--3.3%
24,100 ABIOMED, Inc.* .................................... 244,615
9,050 Given Imaging Ltd.* ............................... 242,178
22,150 Immucor, Inc.* .................................... 660,956
10,600 Intuitive Surgical, Inc.* ......................... 455,164
4,300 Sybron Dental Specialties, Inc.* .................. 160,175
-----------
1,763,088
-----------
HEALTH CARE PROVIDERS & SERVICES--8.1%
17,500 Psychiatric Solutions, Inc.* ...................... 752,850
11,800 Sierra Health Services, Inc.* ..................... 763,342
16,000 Sunrise Senior Living Inc.* ....................... 819,840
33,600 Symbion, Inc.* .................................... 715,008
22,700 VCA Antech, Inc.* ................................. 528,456
26,050 WellCare Health Plans Inc.* ....................... 768,475
-----------
4,347,971
-----------
HOTELS, RESTAURANTS & LEISURE--2.3%
27,242 Applebee's International, Inc. .................... 675,057
11,950 Red Robin Gourmet Burgers Inc.* ................... 579,097
-----------
1,254,154
-----------
THE ALGER INSTITUTIONAL FUNDS -11-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
INFORMATION TECHNOLOGY SERVICES--2.4%
12,300 Global Payments Inc. .............................. $ 796,548
27,600 Kanbay International Inc.* ........................ 496,248
-----------
1,292,796
-----------
INSURANCE--1.6%
16,800 Ohio Casualty Corporation* ........................ 393,960
15,750 Platinum Underwriters Holdings, Inc. .............. 466,200
-----------
860,160
-----------
INTERNET SOFTWARE & SERVICES--4.7%
66,950 aQuantive, Inc.* .................................. 743,145
20,400 Arbinet Holdings, Inc. * .......................... 393,924
10,400 Netease.com Inc. ADR*# ............................ 513,656
35,650 Openwave Systems, Inc.* ........................... 477,353
40,200 ValueClick, Inc.* ................................. 416,472
-----------
2,544,550
-----------
LEISURE EQUIPMENT & PRODUCTS--1.4%
27,700 LIFE TIME FITNESS, Inc.* .......................... 749,839
-----------
MACHINERY--4.8%
15,350 Actuant Corporation Cl. A* ........................ 653,756
5,400 CUNO Incorporated* ................................ 273,888
16,200 Gardner Denver Inc.* .............................. 591,948
20,050 Joy Global Inc. ................................... 679,093
12,350 Watts Water Technologies, Inc. Cl. A .............. 385,938
-----------
2,584,623
-----------
MEDIA--4.4%
102,750 Harris Interactive Inc.* .......................... 427,440
12,890 Media General, Inc. Cl. A ......................... 789,899
73,800 Spanish Broadcasting System, Inc. Cl. A * ......... 616,230
50,100 World Wrestling Entertainment, Inc. ............... 535,569
-----------
2,369,138
-----------
MEDICAL TECHNOLOGY--.7%
12,700 Syneron Medical Ltd.* ............................. 368,300
-----------
METALS & MINING--2.0%
24,100 Alpha Natural Resources, Inc.* .................... 557,915
8,800 Cleveland-Cliffs Inc. ............................. 510,488
-----------
1,068,403
-----------
OIL & GAS--4.5%
108,150 Grey Wolf, Inc.* .................................. 648,900
29,750 Range Resources Corporation ....................... 673,838
29,014 Todco * ........................................... 645,562
14,600 Whiting Petroleum Corporation* .................... 441,942
-----------
2,410,242
-----------
THE ALGER INSTITUTIONAL FUNDS -12-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
PHARMACEUTICALS--1.4%
30,450 Impax Laboratories, Inc.* ......................... $ 495,421
10,850 Pharmion Corp.* ................................... 250,635
-----------
746,056
-----------
ROAD & RAIL--1.3%
22,150 Landstar Systems, Inc.* ........................... 678,897
-----------
SEMICONDUCTOR CAPITAL EQUIPMENT--2.0%
18,400 FormFactor Inc.* .................................. 420,256
61,450 SiRF Technology Holdings, Inc.* ................... 701,145
-----------
1,121,401
-----------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--3.2%
17,100 ATMI, Inc.* ....................................... 391,846
24,300 Microsemi Corporation* ............................ 411,156
35,100 Semtech Corporation* .............................. 592,839
11,800 Sigmatel Incorporated* ............................ 309,042
-----------
1,704,883
-----------
SOFTWARE--5.1%
11,950 Cerner Corporation* ............................... 693,817
15,137 Fair Isaac Corporation ............................ 497,705
17,150 Hyperion Solutions Corporation* ................... 697,491
36,400 Quest Software, Inc. * ............................ 431,704
39,050 VeriFone Holdings, Inc.* .......................... 419,787
-----------
2,740,504
-----------
SPECIALTY RETAIL--4.0%
23,150 AnnTaylor Stores Corporation* ..................... 566,944
10,750 Guitar Center, Inc.* .............................. 530,513
18,450 Pacific Sunwear of California, Inc.* .............. 417,154
19,300 PETCO Animal Supplies, Inc.* ...................... 604,090
-----------
2,118,701
-----------
THRIFTS & MORTGAGE FINANCE--1.0%
48,483 Bank Mutual Corporation ........................... 510,526
-----------
WIRELESS TELECOMMUNICATION SERVICES--2.1%
25,850 InPhonic, Inc.* ................................... 398,607
98,650 UbiquiTel Inc.* ................................... 713,240
-----------
1,111,847
-----------
Total Common Stocks
(Cost $49,462,719) .............................. 51,628,765
-----------
THE ALGER INSTITUTIONAL FUNDS -13-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--3.1% VALUE
--------- -------
U.S. AGENCY OBLIGATIONS
$1,650,000 Federal Home Loan Banks, 2.61%, 5/2/05
(Cost $1,649,761) $ 1,649,761
-----------
Total Investments
(Cost $51,112,480)(a) ................................... 99.5% 53,278,526
Other Assets in Excess of Liabilities ..................... .5 251,338
---- -----------
Net Assets ................................................ 100% $53,529,864
==== ===========
- -------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2005, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $51,112,480 amounted to
$2,166,046 which consisted of aggregate gross unrealized appreciation of
$5,390,991 and aggregate gross unrealized depreciation of $3,224,945.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -14-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2005
SHARES COMMON STOCKS--98.4% VALUE
--------- -------
AEROSPACE & DEFENSE--2.0%
267,775 L-3 Communications Holdings, Inc. ................. $ 19,003,992
------------
BIOTECHNOLOGY--4.3%
309,650 Charles River Laboratories International, Inc.* ... 14,668,120
456,900 ImClone Systems Incorporated* ..................... 14,552,265
231,800 OSI Pharmaceuticals, Inc.* ........................ 10,972,253
------------
40,192,638
------------
BUILDING & CONSTRUCTION--2.5%
195,100 Pulte Homes Inc. .................................. 13,939,895
119,650 Toll Brothers, Inc.* .............................. 9,069,470
------------
23,009,365
------------
CAPITAL MARKETS--2.3%
209,830 Affiliated Managers Group, Inc.* .................. 13,120,670
70,150 Greenhill & Co., Inc. ............................. 2,209,725
139,050 Investors Financial Services Corp. ................ 5,833,148
------------
21,163,543
------------
CHEMICALS--1.5%
561,367 Lyondell Chemical Company ......................... 14,084,698
------------
COMMERCIAL SERVICES & SUPPLIES--4.0%
607,100 Education Management Corporation* ................. 16,998,800
297,550 First Marblehead Corporation (The)* ............... 11,464,601
1,245,500 Service Corporation International ................. 8,768,320
------------
37,231,721
------------
COMMUNICATION EQUIPMENT--1.7%
1,255,800 Arris Group Inc.* ................................. 9,531,522
1,395,200 Brocade Communications Systems, Inc.* ............. 6,083,072
------------
15,614,594
------------
COMMUNICATION TECHNOLOGY--1.5%
617,000 Nextel Partners, Inc. Cl. A* ...................... 14,511,840
------------
COMPUTERS & PERIPHERALS--4.7%
592,800 Apple Computer, Inc.* ............................. 21,376,368
719,350 PalmOne, Inc.* .................................... 15,415,671
560,600 Western Digital Corporation* ...................... 7,114,014
------------
43,906,053
------------
COMPUTER SERVICES--1.1%
911,400 Akamai Technologies, Inc.* ........................ 10,763,634
------------
CONSTRUCTION & ENGINEERING--.4%
153,350 Chicago Bridge & Iron Company N.V. ................ 3,431,973
------------
DIVERSIFIED FINANCIAL SERVICES--1.4%
638,900 CapitalSource Inc.* ............................... 13,416,900
------------
ELECTRICAL EQUIPMENT--1.5%
307,700 Rockwell Automation, Inc. ......................... 14,224,971
------------
ELECTRIC AND ELECTRONIC EQUIPMENT--2.2%
301,100 Roper Industries, Inc. ............................ 20,375,437
------------
THE ALGER INSTITUTIONAL FUNDS -15-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.2%
318,850 Trimble Navigation Limited* ....................... $ 10,974,817
------------
ENERGY EQUIPMENT & SERVICES--6.6%
357,800 BJ Services Company ............................... 17,442,750
313,600 Lone Star Technologies, Inc.* ..................... 12,211,584
498,900 National-Oilwell Varco Inc.* ...................... 19,826,286
94,100 Transocean Inc.* .................................. 4,363,417
432,200 Williams Companies, Inc. (The) .................... 7,356,044
------------
61,200,081
------------
FINANCIAL INFORMATION SERVICES--1.0%
340,300 Genworth Financial Inc. Cl. A ..................... 9,511,385
------------
HEALTH CARE EQUIPMENT & SUPPLIES--2.3%
202,050 C.R. Bard, Inc. ................................... 14,379,898
215,500 Varian Medical Systems, Inc.* ..................... 7,270,970
------------
21,650,868
------------
HEALTH CARE PROVIDERS & SERVICES--9.4%
245,900 AMERIGROUP Corporation* ........................... 8,636,008
496,700 Community Health Systems Inc.* .................... 18,104,715
103,950 Covance Inc.* ..................................... 4,744,278
199,200 DaVita, Inc.* ..................................... 8,027,760
477,400 Health Management Associates, Inc. Cl. A .......... 11,806,102
273,300 Humana Inc.* ...................................... 9,469,845
93,900 Medco Health Solutions, Inc.* ..................... 4,786,083
211,000 PacifiCare Health Systems, Inc.* .................. 12,609,360
92,800 Quest Diagnostics Incorporated .................... 9,818,240
------------
88,002,391
------------
HOTELS, RESTAURANTS & LEISURE--5.4%
229,300 Applebee's International, Inc. .................... 5,682,054
177,950 Harrah's Entertainment, Inc. ...................... 11,677,079
288,900 Hilton Hotels Corporation ......................... 6,306,687
147,700 Kerzner International Limited* .................... 8,136,793
317,900 Penn National Gaming, Inc.* ....................... 10,013,850
152,000 Starwood Hotels & Resorts Worldwide, Inc. ......... 8,259,680
------------
50,076,143
------------
HOUSEHOLD DURABLES--.4%
88,800 Garmin Ltd. ....................................... 3,507,600
------------
INFORMATION TECHNOLOGY SERVICES--1.5%
216,000 Global Payments Inc. .............................. 13,988,160
------------
INTERNET & CATALOG RETAIL--1.9%
1,525,817 Netflix Inc.* ..................................... 17,638,445
------------
INTERNET SOFTWARE & SERVICES--1.6%
301,850 Netease.com Inc. ADR*# ............................ 14,908,371
------------
LEISURE & ENTERTAINMENT--1.9%
550,600 Shanda Interactive Entertainment Ltd.* ............ 17,712,802
------------
THE ALGER INSTITUTIONAL FUNDS -16-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
MACHINERY--2.7%
283,375 Joy Global Inc. ................................... $ 9,597,911
403,600 Pentair, Inc. ..................................... 16,055,208
------------
25,653,119
------------
MACHINERY - OIL WELL EQUIPMENT &
SERVICES--1.7%
648,000 Patterson-UTI Energy, Inc. ........................ 15,532,560
------------
MEDIA--6.9%
341,700 DreamWorks Animation SKG, Inc.* ................... 12,813,750
333,050 Lamar Advertising Company, Cl. A* ................. 12,449,409
284,400 Liberty Media International, Inc.* ................ 11,794,068
368,900 Univision Communications Inc. Cl. A* .............. 9,698,381
418,700 Westwood One, Inc.* ............................... 7,662,210
372,950 XM Satellite Radio Holdings Inc. Cl. A* ........... 10,345,633
------------
64,763,451
------------
METALS & MINING--2.7%
75,700 Cleveland-Cliffs Inc. ............................. 4,391,357
478,800 Peabody Energy Corporation ........................ 20,957,076
------------
25,348,433
------------
OIL & GAS--2.8%
277,300 Enterprise Products Partners L.P. ................. 7,162,659
300,800 EOG Resources, Inc. ............................... 14,303,040
145,400 Talisman Energy Inc. .............................. 4,383,810
------------
25,849,509
------------
PERSONAL PRODUCTS--.8%
176,500 Avon Products, Inc. ............................... 7,074,120
------------
PHARMACEUTICALS--1.5%
241,550 Sepracor Inc.* .................................... 14,473,676
------------
RETAIL--3.3%
269,000 Estee Lauder Companies Inc. Cl. A ................. 10,332,290
1,182,700 Saks Incorporated ................................. 20,153,208
------------
30,485,498
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--4.8%
530,100 ATI Technologies Inc.* ............................ 7,845,480
393,500 Linear Technology Corporation ..................... 14,063,690
842,000 Teradyne, Inc.* ................................... 9,278,840
526,100 Xilinx, Inc. ...................................... 14,173,134
------------
45,361,144
------------
SOFTWARE--2.6%
179,200 Electronic Arts Inc.* ............................. 9,567,488
189,750 Intuit Inc.* ...................................... 7,646,925
312,150 Take-Two Interactive Software, Inc.* .............. 7,344,890
------------
24,559,303
------------
THE ALGER INSTITUTIONAL FUNDS -17-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
SPECIALTY RETAIL--1.9%
117,400 Electronics Boutique Holdings Corp.* .............. $ 6,542,702
426,800 PETsMART, Inc. .................................... 11,374,220
------------
17,916,922
------------
TEXTILES, APPAREL & LUXURY GOODS--2.4%
482,300 Coach, Inc.* ...................................... 12,925,640
418,200 Fossil, Inc.* ..................................... 9,727,332
------------
22,652,972
------------
Total Common Stocks
(Cost $908,825,843) ............................. 919,773,129
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--1.3%
----------
U.S. AGENCY OBLIGATIONS
$12,200,000 Federal Home Loan Banks, 2.61%, 5/2/05
(Cost $12,198,231) .............................. 12,198,231
------------
Total Investments
(Cost $921,024,074) (a) ............................... 99.7% 931,971,360
Other Assets in Excess of Liabilities ................... .3 2,560,350
----- ------------
Net Assets .............................................. 100.0% $934,531,710
===== ============
- ------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2005, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $921,024,074, amounted to
$10,947,286 which consisted of aggregate gross unrealized appreciation of
$62,107,005 and aggregate gross unrealized depreciation of $51,159,719.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -18-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2005
SHARES COMMON STOCKS--93.1% VALUE
--------- -------
AEROSPACE & DEFENSE--2.4%
12,900 General Dynamics Corporation ...................... $ 1,355,145
15,200 United Technologies Corporation ................... 1,546,144
------------
2,901,289
------------
AIR FREIGHT & LOGISTICS--1.8%
33,700 UTI Worldwide, Inc. ............................... 2,161,518
------------
BEVERAGES--.8%
17,800 PepsiCo, Inc. ..................................... 990,392
------------
BIOTECHNOLOGY--6.2%
26,700 Amgen Inc.* ....................................... 1,554,207
35,100 Genentech, Inc.* .................................. 2,489,994
55,500 Gilead Sciences, Inc. * ........................... 2,059,050
12,700 OSI Pharmaceuticals, Inc.* ........................ 601,154
37,100 Serologicals Corporation* ......................... 798,763
------------
7,503,168
------------
BUSINESS SERVICES--.4%
11,700 MicroStrategy Incorporated* ....................... 509,301
------------
CAPITAL MARKETS--1.0%
23,100 Merrill Lynch & Co., Inc. ......................... 1,245,783
------------
CHEMICALS--.7%
8,800 Huntsman Corporation .............................. 185,152
15,700 Lubrizol Corporation .............................. 608,689
------------
793,841
------------
COMMERCIAL BANKS--.8%
15,300 Wells Fargo & Company ............................. 917,082
------------
COMMERCIAL SERVICES & SUPPLIES--.6%
19,800 First Marblehead Corporation (The)* ............... 762,894
------------
COMMUNICATION EQUIPMENT--2.9%
36,500 Arris Group Inc.* ................................. 277,035
93,000 Brocade Communications Systems, Inc.* ............. 405,480
124,900 Nokia Oyj ADR# .................................... 1,995,902
26,150 QUALCOMM Inc. ..................................... 912,373
------------
3,590,790
------------
COMMUNICATION TECHNOLOGY--1.1%
55,800 Nextel Partners, Inc. Cl. A* ...................... 1,312,416
------------
COMPUTERS & PERIPHERALS--2.3%
30,600 Apple Computer, Inc.* ............................. 1,103,436
48,600 EMC Corporation* .................................. 637,632
41,800 Memc Electronic Materials, Inc.* .................. 490,314
44,500 Western Digital Corporation* ...................... 564,705
------------
2,796,087
------------
THE ALGER INSTITUTIONAL FUNDS -19-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
COMPUTER TECHNOLOGY--.2%
8,000 NAVTEQ* ........................................... $ 291,360
------------
CONSUMER FINANCE--.2%
4,200 Capital One Financial Corporation ................. 297,738
------------
DIVERSIFIED FINANCIAL SERVICES--2.0%
26,300 Citigroup Inc. .................................... 1,235,048
13,300 Lehman Brothers Holdings Inc. ..................... 1,219,876
------------
2,454,924
------------
ENERGY EQUIPMENT & SERVICES--3.4%
78,100 National-Oilwell Varco Inc.* ...................... 3,103,694
14,300 Schlumberger Limited .............................. 978,263
------------
4,081,957
------------
FINANCIAL INFORMATION SERVICES--1.6%
71,200 Genworth Financial Inc. Cl. A ..................... 1,990,040
------------
FOOD & STAPLES RETAILING--3.6%
69,100 CVS Corporation ................................... 3,564,178
29,000 Performance Food Group Co.* ....................... 779,810
------------
4,343,988
------------
FREIGHT & LOGISTICS--1.1%
15,800 FedEx Corp. ....................................... 1,342,210
------------
HEALTH CARE--.8%
7,400 WellPoint Inc. * .................................. 945,350
------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.7%
19,200 Beckman Coulter, Inc. ............................. 1,280,832
19,400 St. Jude Medical, Inc.* ........................... 757,182
------------
2,038,014
------------
HEALTH CARE PROVIDERS & SERVICES--6.3%
17,500 AMERIGROUP Corporation* ........................... 614,600
26,400 Caremark Rx, Inc.* ................................ 1,057,320
8,200 CIGNA Corporation ................................. 754,236
26,300 Community Health Systems Inc.* .................... 958,635
25,000 HCA, Inc. ......................................... 1,396,000
23,000 McKesson Corporation .............................. 851,000
23,100 PacifiCare Health Systems, Inc.* .................. 1,380,456
6,500 UnitedHealth Group Incorporated ................... 614,315
------------
7,626,562
------------
HOTELS, RESTAURANTS & LEISURE--2.1%
117,200 Hilton Hotels Corporation ......................... 2,558,476
------------
HOUSEHOLD DURABLES--.1%
3,300 Garmin Ltd. ....................................... 130,350
------------
HOUSEHOLD PRODUCTS--1.3%
28,700 Procter & Gamble Company .......................... 1,554,105
------------
THE ALGER INSTITUTIONAL FUNDS -20-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
INDUSTRIAL CONGLOMERATES--3.3%
54,700 General Electric Company .......................... $ 1,980,140
66,400 Tyco International Ltd. ........................... 2,078,984
------------
4,059,124
------------
INFORMATION TECHNOLOGY SERVICES--0.2%
5,600 Automatic Data Processing, Inc. ................... 243,264
------------
INSURANCE--.8%
28,400 St. Paul Travelers Companies, Inc. (The) .......... 1,016,720
------------
INTERNET SOFTWARE & SERVICES--8.4%
22,700 Google Inc. Cl. A* ................................ 4,994,000
27,200 Netease.com Inc. ADR*# ............................ 1,343,408
113,100 Yahoo! Inc. * ..................................... 3,903,081
------------
10,240,489
------------
LEISURE & ENTERTAINMENT--1.7%
64,800 Shanda Interactive Entertainment Ltd. * ........... 2,084,616
------------
MACHINERY--OIL WELL EQUIPMENT &
SERVICES--.6%
29,900 Patterson-UTI Energy, Inc. ........................ 716,703
------------
MEDIA--3.6%
20,200 Entercom Communications Corp.* .................... 651,046
121,800 News Corporation Cl. A ............................ 1,861,104
108,300 Time Warner Inc.* ................................. 1,820,523
------------
4,332,673
------------
METALS & MINING--1.8%
14,300 Alpha Natural Resources, Inc.* .................... 331,045
41,400 Peabody Energy Corporation ........................ 1,812,078
------------
2,143,123
------------
OIL & GAS--1.0%
20,300 BP PLC Sponsored ADR# ............................. 1,236,270
------------
PERSONAL PRODUCTS--1.4%
31,900 Gillette Company (The) ............................ 1,647,316
------------
PHARMACEUTICALS--10.6%
12,000 Eli Lilly and Company ............................. 701,640
74,175 IVAX Corporation* ................................. 1,401,907
43,000 Johnson & Johnson ................................. 2,951,090
18,000 Merck & Co. Inc. .................................. 610,200
29,100 Novartis AG ADR# .................................. 1,418,043
88,830 Pfizer Inc. ....................................... 2,413,511
30,300 Sanofi-Aventis ADR# ............................... 1,344,411
58,600 Schering-Plough Corporation ....................... 1,222,982
14,400 Sepracor Inc.* .................................... 862,848
------------
12,926,632
------------
RETAIL--1.0%
12,300 Neiman Marcus Group, Inc. ......................... 1,209,336
------------
THE ALGER INSTITUTIONAL FUNDS -21-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
ROAD & RAIL--1.0%
24,200 Burlington Northern Santa Fe Corporation .......... $ 1,167,650
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--4.1%
34,500 ATI Technologies Inc.* ............................ 510,600
18,600 Broadcom Corporation Cl. A* ....................... 556,326
62,700 Intel Corporation ................................. 1,474,704
36,400 Marvell Technology Group Ltd.* .................... 1,218,672
232,500 Skyworks Solutions, Inc.* ......................... 1,218,300
------------
4,978,602
------------
SOFTWARE--4.9%
25,600 Cognos, Inc.* ..................................... 968,704
14,700 Intuit Inc.* ...................................... 592,410
80,700 Microsoft Corporation ............................. 2,041,710
167,700 Oracle Corporation* ............................... 1,938,612
44,350 VeriFone Holdings, Inc.* .......................... 476,763
------------
6,018,199
------------
SPECIALTY RETAIL--2.2%
4,700 Abercrombie & Fitch Co. Cl. A ..................... 253,565
32,500 Bed Bath & Beyond Inc.* ........................... 1,209,325
22,850 Lowe's Companies, Inc. ............................ 1,190,714
------------
2,653,604
------------
TEXTILES, APPAREL & LUXURY GOODS--.9%
42,600 Coach, Inc.* ...................................... 1,141,680
------------
WIRELESS TELECOMMUNICATION SERVICES--.4%
8,700 SpectraSite, Inc.* ................................ 488,332
------------
Total Common Stocks
(Cost $108,140,133 ) ............................ 113,443,968
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--3.9%
----------
U.S. AGENCY OBLIGATIONS
$4,700,000 Federal Home Loan Banks, 2.61%, 5/2/05
(Cost $4,699,319) ............................... 4,699,318
------------
Total Investments
(Cost $112,839,452)(a) ................................ 97.0% 118,143,286
Other Assets in Excess of Liabilities ................... 3.0 3,668,626
----- ------------
Net Assets .............................................. 100.0% $121,811,912
===== ============
- -------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2005, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $112,839,452 amounted to
$5,303,834 which consisted of aggregate gross unrealized appreciation of
$8,982,116 and aggregate gross unrealized depreciation of $3,678,282.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -22-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2005
SHARES COMMON STOCKS--62.4% VALUE
--------- -------
AEROSPACE & DEFENSE--1.5%
50 Boeing Company (The) .............................. $ 2,976
200 General Dynamics Corporation ...................... 21,010
----------
23,986
----------
BEVERAGES--1.4%
400 PepsiCo, Inc. ..................................... 22,256
----------
BIOTECHNOLOGY--.9%
200 Genentech, Inc.* .................................. 14,188
----------
BUILDING & CONSTRUCTION--1.1%
250 Pulte Homes Inc. .................................. 17,863
----------
CAPITAL MARKETS--1.6%
300 Merrill Lynch & Co., Inc. ......................... 16,179
200 Morgan Stanley .................................... 10,524
----------
26,703
----------
CHEMICALS--1.5%
400 Dow Chemical Company (The) ........................ 18,372
150 Rohm and Haas Company ............................. 6,549
----------
24,921
----------
COMMUNICATION EQUIPMENT--1.5%
500 Nokia Oyj ADR# .................................... 7,990
450 QUALCOMM Inc. ..................................... 15,701
----------
23,691
----------
COMMUNICATION TECHNOLOGY--.5%
350 Nextel Partners, Inc. Cl. A* ...................... 8,232
----------
COMPUTERS & PERIPHERALS--1.9%
550 Apple Computer, Inc.* ............................. 19,833
850 EMC Corporation* .................................. 11,152
----------
30,985
----------
CONSUMER PRODUCTS--.8%
500 Eastman Kodak Company ............................. 12,500
----------
DIVERSIFIED FINANCIAL SERVICES--1.3%
300 Franklin Resources, Inc. .......................... 20,604
----------
ELECTRICAL EQUIPMENT--.3%
100 Rockwell Automation, Inc. ......................... 4,623
----------
ELECTRIC UTILITIES--.4%
100 Entergy Corporation ............................... 7,330
----------
ENERGY EQUIPMENT & SERVICES--2.5%
350 National-Oilwell Varco Inc.* ...................... 13,909
150 Suncor Energy, Inc. ............................... 5,529
200 Transocean Inc.* .................................. 9,274
700 Williams Companies, Inc. (The) .................... 11,914
----------
40,626
----------
FINANCIAL INFORMATION SERVICES--.7%
400 Genworth Financial Inc. Cl. A ..................... 11,180
----------
THE ALGER INSTITUTIONAL FUNDS -23-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
FOOD & BEVERAGES--.3%
100 Yum! Brands, Inc. ................................. $ 4,696
----------
FOOD & STAPLES RETAILING--2.5%
400 CVS Corporation ................................... 20,632
400 Wal-Mart Stores, Inc. ............................. 18,856
----------
39,488
----------
FREIGHT & LOGISTICS--1.1%
200 FedEx Corp. ....................................... 16,990
----------
HEALTH CARE--.8%
100 WellPoint Inc. * .................................. 12,775
----------
HEALTH CARE EQUIPMENT & SUPPLIES--2.1%
150 Baxter International Inc. ......................... 5,565
400 Medtronic, Inc. ................................... 21,080
200 Varian Medical Systems, Inc.* ..................... 6,748
----------
33,393
----------
HEALTH CARE PROVIDERS & SERVICES--5.1%
250 Caremark Rx, Inc.* ................................ 10,012
200 CIGNA Corporation ................................. 18,396
450 HCA, Inc. ......................................... 25,128
500 Health Management Associates, Inc. Cl. A .......... 12,365
200 Humana Inc.* ...................................... 6,930
150 PacifiCare Health Systems, Inc.* .................. 8,964
----------
81,795
----------
HOTELS, RESTAURANTS & LEISURE--2.5%
250 Harrah's Entertainment, Inc. ...................... 16,405
700 Hilton Hotels Corporation ......................... 15,281
150 Starwood Hotels & Resorts Worldwide, Inc. ......... 8,151
----------
39,837
----------
INDUSTRIAL CONGLOMERATES--.9%
450 Tyco International Ltd. ........................... 14,090
----------
INSURANCE--.9%
400 St. Paul Travelers Companies, Inc. (The) .......... 14,320
----------
INTERNET & CATALOG RETAIL--1.3%
300 eBay Inc.* ........................................ 9,519
950 Netflix Inc.* ..................................... 10,982
----------
20,501
----------
INTERNET SOFTWARE & SERVICES--2.9%
100 Google Inc. Cl. A* ................................ 22,000
700 Yahoo! Inc. * ..................................... 24,157
----------
46,157
----------
MACHINERY--1.1%
200 Caterpillar Inc. .................................. 17,610
----------
THE ALGER INSTITUTIONAL FUNDS -24-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
MEDIA--2.8%
600 Disney (Walt) Company ............................. $ 15,840
900 News Corporation Cl. A ............................ 13,752
100 Viacom Inc. Cl. B ................................. 3,462
450 XM Satellite Radio Holdings Inc. Cl. A* ........... 12,483
----------
45,537
----------
METALS & MINING--.4%
150 Peabody Energy Corporation ........................ 6,565
----------
MULTILINE RETAIL--1.6%
200 Federated Department Stores, Inc. ................. 11,500
300 Penny, (JC) Co. Inc. .............................. 14,223
----------
25,723
----------
OIL & GAS--2.4%
150 BP PLC Sponsored ADR# ............................. 9,135
100 Enterprise Products Partners L.P. ................. 2,583
350 Exxon Mobil Corporation ........................... 19,960
300 Sasol Ltd. ADR# ................................... 6,975
----------
38,653
----------
PERSONAL PRODUCTS--2.2%
350 Avon Products, Inc. ............................... 14,028
400 Gillette Company (The) ............................ 20,656
----------
34,684
----------
PHARMACEUTICALS--5.8%
250 Johnson & Johnson ................................. 17,157
450 Merck & Co. Inc. .................................. 15,255
200 Novartis AG ADR# .................................. 9,746
400 Sanofi-Aventis ADR# ............................... 17,748
1,050 Schering-Plough Corporation ....................... 21,914
250 Wyeth ............................................. 11,235
----------
93,055
----------
RETAIL--.6%
600 Saks Incorporated ................................. 10,224
----------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--2.6%
800 Intel Corporation ................................. 18,816
500 Linear Technology Corporation ..................... 17,870
200 Xilinx, Inc. ...................................... 5,388
----------
42,074
----------
SOFTWARE--2.2%
100 Electronic Arts Inc.* ............................. 5,339
650 Microsoft Corporation ............................. 16,445
1,100 Oracle Corporation* ............................... 12,716
----------
34,500
----------
THE ALGER INSTITUTIONAL FUNDS -25-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
SPECIALTY RETAIL--1.0%
300 Lowe's Companies, Inc. ............................ $ 15,633
----------
TOBACCO--.4%
100 Altria Group, Inc. ................................ 6,499
----------
WIRELESS TELECOMMUNICATION SERVICES--1.0%
750 Sprint Corporation ................................ 16,695
----------
Total Common Stocks
(Cost $990,021) ................................. 1,001,182
----------
PRINCIPAL
AMOUNT CORPORATE BONDS--9.0%
----------
AEROSPACE & DEFENSE--.7%
$ 5,000 United Technologies, 4.875%, 11/1/06 .............. 5,074
6,504 Systems 2001 Asset Trust Cl. G,
6.664%, 9/15/13 (a) ............................. 7,098
----------
12,172
----------
AUTOMOTIVE--.6%
6,000 General Motors Acceptance, 6.875%, 9/15/11 ........ 5,263
4,000 General Motors Acceptance Corp., 4.50%, 7/15/06 ... 3,913
----------
9,176
----------
BUILDING & CONSTRUCTION--.3%
5,000 Pulte Homes Inc., 5.20%, 2/15/15 .................. 4,820
----------
CABLE--.4%
6,000 Cox Communications, Inc., 5.45%, 12/15/14(a) ...... 5,989
----------
CAPITAL MARKETS--.8%
10,000 Goldman Sachs Group, Inc., 4.75%, 7/15/13 ......... 9,842
3,000 J.P. Morgan Chase & Co., 3.625%, 5/1/08 ........... 2,947
----------
12,789
----------
COMMERCIAL BANKS--1.3%
4,000 Associates Corp. North America, 6.95%, 11/1/18 .... 4,698
5,000 Bank of America Corp., 5.375%, 6/15/14 ............ 5,219
10,000 Wells Fargo & Co. Sr. Global Notes, 6.375%, 8/1/11 11,048
----------
20,965
----------
COMPUTERS & PERIPHERALS--.4%
5,000 International Business Machines Corp.,
6.50%, 1/15/28 .................................. 5,739
----------
DIVERSIFIED TELECOMMUNICATION SERVICES--.4%
6,000 Verizon New York Inc. Series A, 6.875%, 4/1/12 .... 6,581
----------
FINANCE--.3%
5,000 Caterpillar Financial Services Corporation,
3.70%, 8/15/08 .................................. 4,909
----------
FINANCIAL SERVICES--.6%
10,000 John Deere Capital Corp., 4.125%, 1/15/10 ......... 9,875
----------
HEALTH CARE PROVIDERS & SERVICES--.3%
5,000 UnitedHealth Group, 4.75%, 2/10/14 ................ 4,974
----------
THE ALGER INSTITUTIONAL FUNDS -26-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
PRINCIPAL
AMOUNT CORPORATE BONDS (CONTINUED) VALUE
--------- -------
INSURANCE--.9%
$ 10,000 Berkshire Hathaway Financial Rule,
4.85%, 1/15/15 (a) .............................. $ 9,946
5,000 Markel Corp., 7.00%, 5/15/08 ...................... 5,345
----------
15,291
----------
LEASING--.9%
14,000 International Lease Finance Corp., 4.75%, 1/13/12 . 13,779
----------
MEDIA--.5%
3,000 Comcast Corporation, 6.50%, 1/15/15 ............... 3,309
5,000 Liberty Media Corporation Floating Rate Note,
3.99%, 9/17/06 .................................. 5,061
----------
8,370
----------
PHARMACEUTICALS--.6%
10,000 Merck & Co. Inc., 4.75%, 3/1/15 ................... 9,855
----------
Total Corporate Bonds
(Cost $146,771) ................................. 145,284
U.S. GOVERNMENT & AGENCY OBLIGATIONS--26.0%
Federal National Mortgage Association,
25,000 3.125%, 7/15/06 ................................... 24,843
7,000 3.25%, 8/15/08 .................................... 6,827
5,000 4.25%, 5/15/09 .................................... 5,022
20,000 4.30%, 1/19/10 .................................... 19,984
10,000 5.00%, 4/19/10 .................................... 10,090
9,681 4.80%, 4/25/10 .................................... 9,808
15,000 4.125%, 4/15/14 ................................... 14,597
5,000 6.625%, 11/15/30 .................................. 6,185
Federal Home Loan Mortgage Corporation,
20,000 4.125%, 11/18/09 .................................. 19,915
10,000 4.50%, 1/15/14 .................................... 10,019
Federal Home Loan Bank,
15,000 4.30%, 2/3/11 ..................................... 14,805
10,000 5.50%, 5/18/15 .................................... 10,038
U.S. Treasury Bonds,
10,000 3.75%, 3/31/07 .................................... 10,022
73,000 3.25%, 8/15/07 .................................... 72,364
5,000 3.125%, 9/15/08 ................................... 4,898
5,000 7.50%, 11/15/16 ................................... 6,424
40,000 5.375%, 2/15/31 ................................... 45,191
U.S. Treasury Notes,
17,000 3.50%, 11/15/06 ................................... 16,994
20,000 3.00%, 11/15/07 ................................... 19,674
20,000 3.50%, 11/15/09 ................................... 19,709
27,000 4.375%, 8/15/12 ................................... 27,629
10,000 4.25%, 8/15/13 .................................... 10,084
10,000 4.75%, 5/15/14 .................................... 10,427
22,000 4.0%, 2/15/15 ..................................... 21,652
----------
Total U.S. Government & Agency Obligations
(Cost $416,828) ................................. 417,201
----------
THE ALGER INSTITUTIONAL FUNDS -27-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
VALUE
-------
Total Investments
(Cost $1,553,620) (b) .................................. 97.4% $1,563,667
Other Assets in Excess of Liabilities .................... 2.6 42,206
----- ----------
Net Assets ............................................... 100.0% $1,605,873
===== ==========
- -------------
* Non-income producing security.
# American Depositary Receipts.
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional
buyers. These securities are deemed to be liquid and represent 1.4% of net
assets of the fund.
(b) At April 30,2005, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,553,620, amounted to $10,047
which consisted of aggregate gross unrealized appreciation of $52,013 and
aggregate gross unrealized depreciation of $41,966.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -28-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2005
SHARES COMMON STOCKS--92.8% VALUE
--------- -------
AIR FREIGHT & LOGISTICS--1.5%
350 UTI Worldwide, Inc. ............................... $ 22,449
----------
BEVERAGES--2.9%
800 PepsiCo, Inc. ..................................... 44,512
----------
BIOTECHNOLOGY--6.2%
350 Amgen Inc.* ....................................... 20,373
400 Genentech, Inc.* .................................. 28,376
700 Gilead Sciences, Inc. * ........................... 25,970
200 OSI Pharmaceuticals, Inc.* ........................ 9,467
450 Serologicals Corporation* ......................... 9,688
----------
93,874
----------
BUSINESS SERVICES--.4%
150 MicroStrategy Incorporated* ....................... 6,529
----------
CAPITAL MARKETS--1.1%
300 Merrill Lynch & Co., Inc. ......................... 16,179
----------
CHEMICALS--.6%
100 Huntsman Corporation .............................. 2,104
200 Lubrizol Corporation .............................. 7,754
----------
9,858
----------
COMMERCIAL BANKS--.6%
150 Wells Fargo & Company ............................. 8,991
----------
COMMERCIAL SERVICES & SUPPLIES--.6%
250 First Marblehead Corporation (The)* ............... 9,632
----------
COMMUNICATION EQUIPMENT--2.9%
450 Arris Group Inc.* ................................. 3,415
1,150 Brocade Communications Systems, Inc.* ............. 5,014
1,550 Nokia Oyj ADR# .................................... 24,769
300 QUALCOMM Inc. ..................................... 10,467
----------
43,665
----------
COMMUNICATION TECHNOLOGY--1.1%
700 Nextel Partners, Inc. Cl. A* ...................... 16,464
----------
COMPUTERS & PERIPHERALS--2.8%
400 Apple Computer, Inc.* ............................. 14,424
650 EMC Corporation* .................................. 8,528
500 Memc Electronic Materials, Inc.* .................. 5,865
1,050 Western Digital Corporation* ...................... 13,324
----------
42,141
----------
COMPUTER TECHNOLOGY--.2%
100 NAVTEQ* ........................................... 3,642
----------
CONSUMER FINANCE--.2%
50 Capital One Financial Corporation ................. 3,544
----------
THE ALGER INSTITUTIONAL FUNDS -29-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
DIVERSIFIED FINANCIAL SERVICES--1.8%
300 Citigroup Inc. .................................... $ 14,088
150 Lehman Brothers Holdings Inc. ..................... 13,758
----------
27,846
----------
ELECTRICAL AND ELECTRONIC EQUIPMENT--1.3%
300 Roper Industries, Inc. ............................ 20,301
----------
ENERGY EQUIPMENT & SERVICES--4.7%
600 Lone Star Technologies, Inc.* ..................... 23,364
850 National-Oilwell Varco Inc.* ...................... 33,779
200 Schlumberger Limited .............................. 13,682
----------
70,825
----------
FINANCIAL INFORMATION SERVICES--1.6%
850 Genworth Financial Inc. Cl. A ..................... 23,758
----------
FOOD & STAPLES RETAILING--4.3%
1,025 CVS Corporation ................................... 52,869
450 Performance Food Group Co.* ....................... 12,101
----------
64,970
----------
FREIGHT & LOGISTICS--0.8%
150 FedEx Corp. ....................................... 12,743
----------
HEALTH CARE--.8%
100 WellPoint Inc. * .................................. 12,775
----------
HEALTH CARE EQUIPMENT & SUPPLIES--1.7%
250 Beckman Coulter, Inc. ............................. 16,677
250 St. Jude Medical, Inc.* ........................... 9,758
----------
26,435
----------
HEALTH CARE PROVIDERS & SERVICES--5.4%
250 AMERIGROUP Corporation* ........................... 8,780
100 CIGNA Corporation ................................. 9,198
300 Community Health Systems Inc.* .................... 10,935
300 HCA, Inc. ......................................... 16,752
300 McKesson Corporation .............................. 11,100
300 PacifiCare Health Systems, Inc.* .................. 17,928
70 UnitedHealth Group Incorporated ................... 6,616
----------
81,309
----------
HOTELS, RESTAURANTS & LEISURE--2.1%
1,450 Hilton Hotels Corporation ......................... 31,653
----------
HOUSEHOLD DURABLES--.1%
50 Garmin Ltd. ....................................... 1,975
----------
HOUSEHOLD PRODUCTS--1.2%
350 Procter & Gamble Company .......................... 18,953
----------
INDUSTRIAL CONGLOMERATES--2.6%
1,250 Tyco International Ltd. ........................... 39,138
----------
INFORMATION TECHNOLOGY SERVICES--.1%
50 Automatic Data Processing, Inc. ................... 2,172
----------
THE ALGER INSTITUTIONAL FUNDS -30-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
INSURANCE--.8%
350 St. Paul Travelers Companies, Inc. (The) .......... $ 12,530
----------
INTERNET SOFTWARE & SERVICES--9.1%
400 aQuantive, Inc.* .................................. 4,440
300 Google Inc. Cl. A* ................................ 66,000
350 Netease.com Inc. ADR*# ............................ 17,287
1,450 Yahoo! Inc. * ..................................... 50,040
----------
137,767
----------
LEISURE & ENTERTAINMENT--1.7%
800 Shanda Interactive Entertainment Ltd. * ........... 25,736
----------
MACHINERY--OIL WELL EQUIPMENT &
SERVICES--0.6%
350 Patterson-UTI Energy, Inc. ........................ 8,390
----------
MEDIA--3.4%
250 Entercom Communications Corp.* .................... 8,057
1,450 News Corporation Cl. A ............................ 22,156
1,300 Time Warner Inc.* ................................. 21,853
----------
52,066
----------
METALS & MINING--1.7%
150 Alpha Natural Resources, Inc.* .................... 3,472
500 Peabody Energy Corporation ........................ 21,885
----------
25,357
----------
MULTILINE RETAIL--.5%
150 Kohl's Corporation* ............................... 7,140
----------
OIL & GAS--1.0%
250 BP PLC Sponsored ADR# ............................. 15,225
----------
PERSONAL PRODUCTS--1.7%
500 Gillette Company (The) ............................ 25,820
----------
PHARMACEUTICALS--8.1%
150 Eli Lilly and Company ............................. 8,770
900 IVAX Corporation* ................................. 17,010
200 Merck & Co. Inc. .................................. 6,780
350 Novartis AG ADR# .................................. 17,056
1,100 Pfizer Inc. ....................................... 29,887
350 Sanofi-Aventis ADR# ............................... 15,530
750 Schering-Plough Corporation ....................... 15,653
200 Sepracor Inc.* .................................... 11,984
----------
122,670
----------
RETAIL--1.0%
150 Neiman Marcus Group, Inc. ......................... 14,748
----------
ROAD & RAIL--1.0%
300 Burlington Northern Santa Fe Corporation .......... 14,475
----------
THE ALGER INSTITUTIONAL FUNDS -31-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2005
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--4.2%
450 ATI Technologies Inc.* ............................ $ 6,660
250 Broadcom Corporation Cl. A * ...................... 7,477
800 Intel Corporation ................................. 18,816
450 Marvell Technology Group Ltd.* .................... 15,066
2,900 Skyworks Solutions, Inc.* ......................... 15,196
----------
63,215
----------
SOFTWARE--4.9%
300 Cognos, Inc.* ..................................... 11,352
200 Intuit Inc.* ...................................... 8,060
1,000 Microsoft Corporation ............................. 25,300
2,100 Oracle Corporation* ............................... 24,276
525 VeriFone Holdings, Inc.* .......................... 5,644
----------
74,632
----------
SPECIALTY RETAIL--2.4%
150 Abercrombie & Fitch Co. Cl. A ..................... 8,092
400 Bed Bath & Beyond Inc.* ........................... 14,884
250 Lowe's Companies, Inc. ............................ 13,028
----------
36,004
----------
TEXTILES, APPAREL & LUXURY GOODS--.7%
400 Coach, Inc.* ...................................... 10,720
----------
WIRELESS TELECOMMUNICATION SERVICES--.4%
100 SpectraSite, Inc.* ................................ 5,613
----------
Total Common Stocks
(Cost $1,347,242) ............................... 1,408,441
----------
Total Investments
(Cost $1,347,242)(a) .................................. 92.8% 1,408,441
Other Assets in Excess of Liabilities ................... 7.2 109,652
----- ----------
Net Assets .............................................. 100.0% $1,518,093
===== ==========
- ------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2005, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $1,347,242 amounted to $61,199
which consisted of aggregate gross unrealized appreciation of $110,961 and
aggregate gross unrealized depreciation of $49,762.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -32-
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
April 30, 2005
LargeCap SmallCap
Growth Growth
Fund Fund
------------ ------------
ASSETS:
Investments in securities, at value (identified cost*)
--see accompanying schedules of investments ............ $ 91,578,481 $ 53,278,526
Cash ..................................................... 7,656 36,598
Receivable for investment securities sold ................ -- 935,827
Receivable for shares of beneficial interest sold ........ 147,203 355,221
Dividends and interest receivable ........................ 41,402 2,531
Receivable from Investment Manager--Note 3(a) ............ -- --
Prepaid expenses ......................................... 7,052 8,431
------------ ------------
Total Assets ........................................... 91,781,794 54,617,134
------------ ------------
LIABILITIES:
Payable for investment securities purchased .............. -- 732,770
Payable for shares of beneficial interest redeemed ....... 157,583 292,149
Accrued investment management fees ....................... 55,337 37,477
Accrued transfer agent fees .............................. 1,068 1,944
Accrued expenses ......................................... 39,957 22,930
------------ ------------
Total Liabilities ...................................... 253,945 1,087,270
------------ ------------
NET ASSETS ............................................... $ 91,527,849 $ 53,529,864
============ ============
Net Assets Consist of:
Paid-in capital ........................................ $121,718,934 $120,365,026
Accumulated net investment loss ........................ 385,232 (299,918)
Undistributed net realized gain (accumulated loss) ..... (31,593,320) (68,701,290)
Net unrealized appreciation (depreciation) ............. 1,017,003 2,166,046
------------ ------------
NET ASSETS ............................................... $ 91,527,849 $ 53,529,864
============ ============
Shares of beneficial interest outstanding--Note 6
Class I ................................................ 7,895,220 3,150,891
============ ============
Class R ................................................ 299,548 91,566
============ ============
Net Asset Value Per Share
Class I ................................................ $ 11.17 $ 16.51
============ ============
Class R ................................................ $ 11.05 $ 16.36
============ ============
*Identified cost ......................................... $ 90,561,478 $ 51,112,480
============ ============
See Notes to Financial Statements.
-33-
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Fund Fund Fund Fund
------------- ------------- ---------- ----------
$931,971,360 $ 118,143,286 $1,563,667 $1,408,441
45,516 18,478 52,353 70,838
2,703,885 4,544,537 15,777 53,238
4,113,713 1,272,194 1,658 287
245,342 51,986 6,640 631
-- -- 2,478 1,250
59,182 10,751 483 797
------------- ------------- ---------- ----------
939,138,998 124,041,232 1,646,056 1,535,482
------------- ------------- ---------- ----------
1,688,315 918,252 33,277 10,998
1,987,308 1,174,365 -- --
613,471 84,032 961 918
4,612 5,568 77 100
313,582 47,103 5,868 5,373
------------- ------------- ---------- ----------
4,607,288 2,229,320 40,183 17,389
------------- ------------- ---------- ----------
$934,531,710 $ 121,811,912 $1,605,873 $1,518,093
============ ============= ========== ==========
$866,755,843 $ 226,990,151 $1,522,925 $1,341,040
(3,075,086) 282,968 (658) 1,239
59,903,667 (110,765,041) 73,559 114,615
10,947,286 5,303,834 10,047 61,199
------------- ------------- ---------- ----------
$934,531,710 $ 121,811,912 $1,605,873 $1,518,093
============ ============= ========== ==========
59,038,002 10,403,757 191,777 244,561
============ ============= ========== ==========
1,054,083 75,843 25,036 38,667
============ ============= ========== ==========
$ 15.55 $ 11.62 $ 7.41 $ 5.37
============ ============= ========== ==========
$ 15.39 $ 11.49 $ 7.35 $ 5.31
============ ============= ========== ==========
$921,024,074 $ 112,839,452 $1,553,620 $1,347,242
============ ============= ========== ==========
THE ALGER INSTITUTIONAL FUNDS -34-
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended April 30, 2005
LargeCap SmallCap
Growth Growth
Fund Fund
----------- -----------
INVESTMENT INCOME
Income:
Dividends ................................ $ 875,853 $ 84,477
Interest ................................. 19,747 23,146
----------- -----------
Total income ............................ 895,600 107,623
----------- -----------
Expenses:
Management fees--Note 3(a) ............... 348,401 283,937
Shareholder servicing fees ............... 116,134 83,511
Custodian fees ........................... 14,502 11,134
Transfer agent fees--Note 3(d) ........... 5,524 6,675
Professional fees ........................ 3,453 2,981
Printing fees ............................ 2,790 3,780
Distribution fees--Note 3(b) ............. 7,708 1,703
Trustees' fees ........................... 1,228 892
Interest expense ......................... 66 3,196
Miscellaneous ............................ 10,562 9,732
----------- -----------
510,368 407,541
Less expense reimbursement--Note 3(a) ...... -- --
----------- -----------
Total Expenses ........................... 510,368 407,541
----------- -----------
NET INVESTMENT INCOME (LOSS) ............... 385,232 (299,918)
----------- -----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments ......... 7,619,185 6,372,223
Net change in unrealized appreciation
(depreciation) on investments ............ (5,325,260) (2,410,203)
----------- -----------
Net realized and unrealized gain
on investments ......................... 2,293,925 3,962,020
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................ $ 2,679,157 $ 3,662,102
=========== ===========
See Notes to Financial Statements.
-35-
Socially
MidCap Capital Responsible
Growth Appreciation Balanced Growth
Fund Fund Fund Fund
------------ ------------ -------- -----------
$ 1,679,612 $ 1,001,080 $ 9,806 $ 10,666
518,238 44,996 10,326 69
------------ ------------ -------- ---------
2,197,850 1,046,076 20,132 10,735
------------ ------------ -------- ---------
3,781,675 542,540 6,061 5,696
1,181,773 159,571 901 867
48,330 15,266 7,119 6,825
48,998 12,042 217 300
22,253 4,594 1,753 1,257
56,700 5,790 845 845
37,696 1,997 448 455
12,457 1,689 21 20
-- 545 -- --
83,054 19,074 821 809
------------ ------------ -------- ---------
5,272,936 763,108 18,186 17,074
-- -- (8,081) (7,578)
------------ ------------ -------- ---------
5,272,936 763,108 10,105 9,496
------------ ------------ -------- ---------
(3,075,086) 282,968 10,027 1,239
------------ ------------ -------- ---------
65,269,792 12,793,605 85,424 115,986
(41,754,355) (6,298,251) (61,381) (60,472)
------------ ------------ -------- ---------
23,515,437 6,495,354 24,043 55,514
------------ ------------ -------- ---------
$ 20,440,351 $ 6,778,322 $ 34,070 $ 56,753
============ ============ ======== =========
THE ALGER INSTITUTIONAL FUNDS -36-
STATEMENTS OF CHANGES IN NET ASSETS
LargeCap
Growth
Fund
-------------------------------
For the
Six Months For the
Ended Year Ended
April 30, 2005 October 31,
(Unaudited) 2004
-------------- --------------
Net investment income (loss) ......................... $ 385,232 $ (501,149)
Net realized gain on investments ..................... 7,619,185 8,360,426
Net change in unrealized appreciation
(depreciation) on investments ...................... (5,325,260) (6,519,566)
------------ ------------
Net increase in net assets
resulting from operations .......................... 2,679,157 1,339,711
------------ ------------
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 ............................................ (2,501,538) (4,892,989)
Class R ............................................ 758,926 2,423,531
------------ ------------
Net increase (decrease) from shares
of beneficial interest
transactions--Note 6 ............................... (1,742,612) (2,469,458)
------------ ------------
Total increase (decrease) ........................ 936,545 (1,129,747)
Net Assets:
Beginning of period ................................ 90,591,304 91,721,051
------------ ------------
End of period ...................................... $ 91,527,849 $ 90,591,304
============ ============
Undistributed net investment income
(accumulated loss) ................................. $ 385,232 $ (501,149)
============ ============
See Notes to Financial Statements.
-37-
SmallCap MidCap
Growth Growth
Fund Fund
------------------------------ -------------------------------
For the For the
Six Months For the Six Months For the
Ended Year Ended Ended Year Ended
April 30, 2005 October 31, April 30, 2005 October 31,
(Unaudited) 2004 (Unaudited) 2004
-------------- -------------- -------------- --------------
$ (299,918) $ (918,437) $ (3,075,086) $ (6,352,257)
6,372,223 19,348,420 65,269,792 38,265,061
(2,410,203) (13,191,873) (41,754,355) (10,878,579)
------------ ------------ ------------- -------------
3,662,102 5,238,110 20,440,351 21,034,225
------------ ------------ ------------- -------------
-- -- -- --
-- -- -- --
-- -- (14,080,915) --
-- -- (225,450) --
------------ ------------ ------------- -------------
-- -- (14,306,365) --
------------ ------------ ------------- -------------
(21,491,873) (28,739,464) 72,803,527 277,510,949
1,287,700 203,378 4,321,273 11,195,628
------------ ------------ ------------- -------------
(20,204,173) (28,536,086) 77,124,800 288,706,577
------------ ------------ ------------- -------------
(16,542,071) (23,297,976) 83,258,786 309,740,802
70,071,935 93,369,911 851,272,924 541,532,122
------------ ------------ ------------- -------------
$ 53,529,864 $ 70,071,935 $ 934,531,710 $ 851,272,924
============ ============ ============= =============
$ (299,918) $ (918,437) $ (3,075,086) $ (6,352,257)
============ ============ ============= =============
THE ALGER INSTITUTIONAL FUNDS -38-
STATEMENTS OF CHANGES IN NET ASSETS
Capital
Appreciation
Fund
-------------------------------
For the
Six Months For the
Ended Year Ended
April 30, 2005 October 31,
(Unaudited) 2004
-------------- --------------
Net investment income (loss) .......................... $ 282,968 $ (1,322,488)
Net realized gain on investments ...................... 12,793,605 10,282,251
Net change in unrealized appreciation
(depreciation) on investments ....................... (6,298,251) (8,886,695)
------------- -------------
Net increase in net assets
resulting from operations ........................... 6,778,322 73,068
------------- -------------
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 ............................................. (10,694,748) (35,772,587)
Class R ............................................. 133,403 659,615
------------- -------------
Net increase (decrease) from shares
of beneficial interest
transactions--Note 6 ................................ (10,561,345) (35,112,972)
------------- -------------
Total increase (decrease) ......................... (3,783,023) (35,039,904)
Net Assets:
Beginning of period ................................. 125,594,935 160,634,839
------------- -------------
End of period ....................................... $ 121,811,912 $ 125,594,935
============= =============
Undistributed net investment income
(accumulated loss) .................................. $ 282,968 $ (1,322,488)
============= =============
See Notes to Financial Statements.
-39-
Socially
Responsible
Balanced Growth
Fund Fund
------------------------------ -------------------------------
For the For the
Six Months For the Six Months For the
Ended Year Ended Ended Year Ended
April 30, 2005 October 31, April 30, 2005 October 31,
(Unaudited) 2004 (Unaudited) 2004
-------------- -------------- -------------- --------------
$ 10,027 $ 3,788 $ 1,239 $ (14,986)
85,424 45,169 115,986 62,678
(61,381) (31,014) (60,472) (41,602)
----------- ----------- ----------- -----------
34,070 17,943 56,753 6,090
----------- ----------- ----------- -----------
(12,752) (756) -- --
(1,011) -- -- --
(35,778) -- (56,378) (6,181)
(4,123) -- (7,512) (397)
----------- ----------- ----------- -----------
(53,664) (756) (63,890) (6,578)
----------- ----------- ----------- -----------
3,914 11,547 38,091 951
20,861 105,281 102,723 40,664
----------- ----------- ----------- -----------
24,775 116,828 140,814 41,615
----------- ----------- ----------- -----------
5,181 134,015 133,677 41,127
1,600,692 1,466,677 1,384,416 1,343,289
----------- ----------- ----------- -----------
$ 1,605,873 $ 1,600,692 $ 1,518,093 $ 1,384,416
=========== =========== =========== ===========
$ (658) $ 1,274 $ 1,239 $ (14,986)
=========== =========== =========== ===========
THE ALGER INSTITUTIONAL FUNDS -40-
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)(iv) Investments Operations Gains Period
----------- ---------- ----------- ----------- ----------- -----------
ALGER LARGECAP GROWTH INSTITUTIONAL FUND (i)
CLASS I
Six months ended
4/30/05(ii)(v) ............................. $10.86 $ 0.05 $ 0.26 $ 0.31 $ -- $11.17
Year ended 10/31/04 .......................... 10.71 (0.06) 0.21 0.15 -- 10.86
Year ended 10/31/03 .......................... 8.70 (0.03) 2.04 2.01 -- 10.71
Year ended 10/31/02 .......................... 11.63 (0.03) (2.90) (2.93) -- 8.70
Year ended 10/31/01 .......................... 17.15 (0.03) (4.50) (4.53) (0.99) 11.63
Year ended 10/31/00 .......................... 17.17 (0.03) 1.92 1.89 (1.91) 17.15
CLASS R
Six months ended
4/30/05(ii)(v) ............................. $10.76 $ 0.01 $ 0.28 $ 0.29 $ -- $11.05
Year ended 10/31/04 .......................... 10.66 (0.12) 0.22 0.10 -- 10.76
From 1/27/03 to 10/31/03(iii)(v) ............. 8.12 (0.06) 2.60 2.54 -- 10.66
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended
4/30/05(ii)(v) ............................. $16.07 $(0.08) $ 0.52 $ 0.44 $ -- $16.51
Year ended 10/31/04 .......................... 15.10 (0.16) 1.13 0.97 -- 16.07
Year ended 10/31/03 .......................... 10.97 (0.12) 4.25 4.13 -- 15.10
Year ended 10/31/02 .......................... 13.35 (0.13) (2.25) (2.38) -- 10.97
Year ended 10/31/01 .......................... 23.78 (0.08) (10.35) 10.43) -- 13.35
Year ended 10/31/00 .......................... 22.82 (0.06) 2.50 2.44 (1.48) 23.78
CLASS R
Six months ended
4/30/05(ii)(v) ............................. $15.93 $(0.11) $ 0.54 $ 0.43 $ -- $16.36
Year ended 10/31/04 .......................... 15.05 (0.25) 1.13 0.88 -- 15.93
From 1/27/03 to 10/31/03(iii)(v) ............. 10.72 (0.14) 4.47 4.33 -- 15.05
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended
4/30/05(ii)(v) ............................. $15.38 $(0.05) $ 0.47 $ 0.42 $(0.25) $15.55
Year ended 10/31/04 .......................... 14.78 (0.13) 0.73 0.60 -- 15.38
Year ended 10/31/03 .......................... 10.76 (0.11) 4.13 4.02 -- 14.78
Year ended 10/31/02 .......................... 13.34 (0.10) (2.48) (2.58) -- 10.76
Year ended 10/31/01 .......................... 17.53 (0.08) (3.44) (3.52) (0.67) 13.34
Year ended 10/31/00 .......................... 11.80 (0.04) 6.07 6.03 (0.30) 17.53
CLASS R
Six months ended
4/30/05(ii)(v) ............................. $15.25 $(0.09) $ 0.48 $ 0.39 $(0.25) $15.39
Year ended 10/31/04 .......................... 14.73 (0.21) 0.73 0.52 -- 15.25
From 1/27/03 to 10/31/03(iii)(v) ............. 10.25 (0.14) 4.62 4.48 -- 14.73
- ------------
(i) Prior to March 1, 2002, the Alger LargeCap Growth Institutional Fund was
the Alger Growth Retirement Portfolio.
(ii) Unaudited.
(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.
See Notes to Financial Statements.
-41-
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
----------- ---------- ----------- ----------- -----------
2.9% $ 88,218 1.08% 0.85% 133.98%
1.4 88,098 1.13 (0.51) 191.48
23.1 91,588 1.14 (0.31) 255.49
(25.2) 108,660 1.14 (0.24) 202.07
(27.5) 97,308 1.09 (0.20) 89.54
10.3 126,573 1.06 (0.16) 101.29
2.7% $ 3,309 1.58% 0.24% 133.98%
0.9 2,493 1.64 (1.05) 191.48
31.3 133 1.62 (0.84) 255.49
2.7% $ 52,031 1.22% (0.89)% 58.04%
6.4 69,788 1.25 (1.03) 135.80
37.7 93,300 1.24 (0.99) 139.97
(17.8) 62,780 1.25 (1.01) 138.01
(43.9) 86,790 1.19 (0.46) 191.89
10.1 187,973 1.17 (0.23) 242.45
2.7% $ 1,498 1.67% (1.36)% 58.04%
5.8 284 1.75 (1.55) 135.80
40.4 70 1.74 (1.49) 139.97
2.6% $918,313 1.11% (0.64)% 103.72%
4.1 839,273 1.15 (0.87) 190.93
37.4 540,742 1.17 (0.89) 217.33
(19.3) 215,727 1.17 (0.81) 284.69
(20.6) 217,153 1.13 (0.51) 130.93
51.3 177,566 1.12 (0.24) 113.14
2.4% $ 16,219 1.60% (1.14)% 103.72%
3.5 12,000 1.65 (1.37) 190.93
43.7 790 1.66 (1.40) 217.33
THE ALGER INSTITUTIONAL FUNDS -42-
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from
Investment Operations
------------------------
Net
Realized and
Net Asset Net Unrealized Total Dividends Distributions
Value, Investment Gain from from Net from
Beginning Income (Loss) on Investment Investment Net Realized
of Period (Loss)(iii) Investments Operations Income Gains
----------- ---------- ----------- ----------- ----------- -----------
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/05(iv)(xii) ..................... $11.05 $ 0.03 $ 0.54 $ 0.57 $ -- $ --
Year ended 10/31/04 ................................... 11.06 (0.10) 0.09 (0.01) -- --
Year ended 10/31/03 ................................... 8.97 (0.06) 2.15 2.09 -- --
Year ended 10/31/02 ................................... 11.66 (0.08) (2.61) (2.69) -- --
Year ended 10/31/01 ................................... 18.12 (0.03) (6.37) (6.40) -- (0.06)
Year ended 10/31/00 ................................... 16.19 (0.09) 2.24 2.15 -- (0.22)
CLASS R
Six months ended 4/30/05(iv)(xii) ..................... $10.95 $ -- $ 0.54 $ 0.54 $ -- $ --
Year ended 10/31/04 ................................... 11.01 (0.16) 0.10 (0.06) -- --
From 1/27/03 to 10/31/03(ii)(iv) ...................... 8.36 (0.08) 2.73 2.65 -- --
ALGER BALANCED INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/05(iv)(xii) ..................... $ 7.50 $ 0.05 $ 0.11 $ 0.16 $(0.07) $(0.18)
Year ended 10/31/04 ................................... 7.41 0.02 0.07 0.09 -- --
Year ended 10/31/03 ................................... 6.67 (0.01) 0.75 0.74 -- --
Year ended 10/31/02 ................................... 8.20 (0.39) (1.14) (1.53) -- --
From 12/4/00 to 10/31/01(i)(iv) ....................... 10.00 (0.11) (1.69) (1.80) -- --
CLASS R
Six months ended 4/30/05(iv)(xii) ..................... $ 7.43 $ 0.03 $ 0.12 $ 0.15 $(0.05) $(0.18)
Year ended 10/31/04 ................................... 7.38 (0.02) 0.07 0.05 -- --
From 1/27/03 to 10/31/03(ii)(iv) ...................... 6.43 (0.04) 0.99 0.95 -- --
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/05(iv)(xii) ..................... $ 5.37 $ 0.01 $ 0.23 $ 0.24 $ -- $(0.24)
Year ended 10/31/04 ................................... 5.38 (0.05) 0.07 0.02 -- (0.03)
Year ended 10/31/03 ................................... 4.43 (0.09) 1.04 0.95 -- --
Year ended 10/31/02 ................................... 6.37 (0.77) (1.17) (1.94) -- --
From 12/4/00 to 10/31/01(i)(iv) ....................... 10.00 (0.30) (3.33) (3.63) -- --
CLASS R
Six months ended 4/30/05(iv)(xii) ..................... $ 5.34 $(0.01) $ 0.22 $ 0.21 $ -- $(0.24)
Year ended 10/31/04 ................................... 5.37 (0.08) 0.08 -- -- (0.03)
From 1/27/03 to 10/31/03(ii)(iv) ...................... 4.13 (0.08) 1.32 1.24 -- --
- ------------
(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) Amount has been reduced by 1.01% due to expense reimbursement.
(vi) Amount has been reduced by 1.00% due to expense reimbursement.
(vii) Amount has been reduced by 0.90% due to expense reimbursement.
(viii) Amount has been reduced by 0.94% due to expense reimbursement.
(ix) Amount has been reduced by 1.02% due to expense reimbursement.
(x) Amount has been reduced by 0.99% due to expense reimbursement.
(xi) Amount has been reduced by 1.03% due to expense reimbursement.
(xii) Unaudited
See Notes to Financial Statements.
-43-
Ratios/Supplemental Data
----------------------------------------------------
Net Ratio of Ratio of Net
Net Assets, Expenses Investment
Asset End of to Income
Value, Period Average (Loss) to Portfolio
Total End of Total (000's Net Average Turnover
Distributions Period Return omitted) Assets Net Assets Rate
------------- ----------- ----------- ----------- ----------- ----------- -----------
$ -- $11.62 5.2% $120,940 1.19% 0.45% 84.23%
-- 11.05 (0.1) 124,889 1.23 (0.87) 160.00
-- 11.06 23.3 160,569 1.23 (0.59) 187.72
-- 8.97 (23.1) 132,010 1.23 (0.73) 180.39
(0.06) 11.66 (35.4) 187,187 1.18 (0.21) 104.17
(0.22) 18.12 13.1 279,916 1.14 (0.43) 144.16
$ -- $11.49 4.9% $ 872 1.69% (0.06)% 84.23%
-- 10.95 (0.5) 706 1.73 (1.39) 160.00
-- 11.01 31.7 66 1.72 (1.01) 187.72
$(0.25) $ 7.41 2.1% $ 1,422 1.20%(vi) 1.30% 114.71%
-- 7.50 1.3 1,435 1.35(v) 0.28 184.21
-- 7.41 11.1 1,409 2.00 (0.15) 149.42
-- 6.67 (18.7) 225 6.72 (5.21) 321.89
-- 8.20 (18.0) 108 3.13 (1.44) 15.99
$(0.23) $ 7.35 1.9% $ 184 1.69%(ix) 0.77% 114.71%
-- 7.43 0.7 166 1.82(vi) (0.28) 184.21
-- 7.38 14.8 58 2.56 (0.74) 149.42
$(0.24) $ 5.37 4.3% $ 1,313 1.19% 0.26% 89.36%
(0.03) 5.37 0.3 1,277 1.34(vii) (1.04) 166.03
-- 5.38 21.4 1,277 2.26 (1.69) 187.82
-- 4.43 (30.5) 46 13.48 (13.17) 205.83
-- 6.37 (36.3) 77 5.31 (4.75) 114.33
$(0.24) $ 5.31 3.7% $ 205 1.68% (0.54)% 89.36%
(0.03) 5.34 (0.1) 107 1.83(viii) (1.53) 166.03
-- 5.37 30.0 66 2.92 (2.29) 187.82
THE ALGER INSTITUTIONAL FUNDS -44-
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 -45-
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. As of April 30, 2005, there were no securities on loan.
(e) 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 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 return of capital,
depending on the type of book/tax differences that may exist. Capital accounts
within the
THE ALGER INSTITUTIONAL FUNDS -46-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
financial statements are adjusted for permanent book/tax differences.
Reclassifications result primarily from the differences in tax treatment of net
operating losses and amortization adjustments on debt securities. 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.
(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.
(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
provisions of its Investment Management Agreement with Fred Alger Management,
Inc. ("Alger Management"), are payable monthly and are computed based on the
value of the average daily net assets of each 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,
THE ALGER INSTITUTIONAL FUNDS -47-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
of average daily net assets. For the six months ended April 30, 2005, Alger
Management reimbursed the Balanced Fund and the Socially Responsible Growth Fund
$8,081 and $7,578, respectively.
(b) DISTRIBUTION FEES: Class R Shares--The Funds have adopted a Distribution
Plan pursuant to which Class R shares of each Fund pays Fred Alger & Company,
Incorporated, the Trust's distributor (the "Distributor") and an affiliate of
Alger Management, 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, 2005, 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 paid the Distributor commissions of $198,761, $57,427, $1,422,873,
$134,499, $2,278 and $1,577, 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, 2005, the LargeCap Growth Fund, the Small Cap
Growth Fund, the MidCap Growth Fund, the Capital Appreciation Fund, the Balanced
Fund and the Socially Responsible Growth Fund incurred fees of $3,840, $3,084,
$37,195, $5,321, $67 and $60, respectively, for services provided by Alger
Services. Effective November 22, 2004, State Street Bank and Trust Company
replaced Alger Services as the Funds' transfer agent. Transfer agent services
are provided by State Street Bank and Trust Company's affiliate, Boston
Financial Data Services, Inc. ("BFDS").
Effective February 28, 2005, the Trust has entered into a shareholder
administrative services agreement with Alger Services to compensate Alger
Services on a per account basis for its liaison and administrative oversight
ofBFDSand related services. During the six months ended April 30, 2005, 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 incurred fees of $52, $179, $755, $108, $3 and $11, respectively,
for these 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, 2005, Alger Management and its affiliates owned 59,545
shares, 29,456 shares, 86,647 shares, 19,170 shares, 187,394 shares and 243,785
shares 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, respectively.
THE ALGER INSTITUTIONAL FUNDS -48-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
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, 2005:
PURCHASES SALES
--------- -----
LargeCap Growth Fund ......................... $123,939,153 $124,160,814
SmallCap Growth Fund ......................... 37,936,790 59,506,973
MidCap Growth Fund ........................... 1,021,393,233 945,621,746
Capital Appreciation Fund .................... 104,586,692 119,734,979
Balanced Fund ................................ 1,860,414 1,790,081
Socially Responsible Growth Fund ............. 1,387,146 1,235,180
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, 2005, the Fund had borrowings which averaged $20,877 at a weighted
average interest rate of 2.61%.
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 -49-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
During the six months ended April 30, 2005, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
------ ------
LargeCap Growth Fund
Class I
Shares sold .................. 1,167,371 $ 13,352,148
Shares redeemed .............. (1,386,211) (15,853,686)
---------- -------------
Net decrease ................. (218,840) $ (2,501,538)
========== =============
Class R
Shares sold .................. 114,250 $ 1,292,473
Shares redeemed .............. (46,375) (533,547)
---------- -------------
Net increase ................. 67,875 $ 758,926
========== =============
SmallCap Growth Fund
Class I
Shares sold .................. 652,018 $ 11,291,692
Shares redeemed .............. (1,843,903) (32,783,565)
---------- -------------
Net decrease ................. (1,191,885) $ (21,491,873)
========== =============
Class R
Shares sold .................. 99,867 $ 1,738,604
Shares redeemed .............. (26,096) (450,904)
---------- -------------
Net increase ................. 73,771 $ 1,287,700
========== =============
MidCap Growth Fund
Class I
Shares sold .................. 12,693,949 $ 207,657,230
Dividends reinvested ......... 843,221 14,005,908
Shares redeemed .............. (9,084,168) (148,859,611)
---------- -------------
Net increase ................. 4,453,002 $ 72,803,527
========== =============
Class R
Shares sold .................. 503,317 $ 8,185,542
Dividends reinvested ......... 13,818 227,446
Shares redeemed .............. (250,091) (4,091,715)
---------- -------------
Net increase ................. 267,044 $ 4,321,273
========== =============
Capital Appreciation Fund
Class I
Shares sold .................. 1,560,595 $ 18,581,249
Shares redeemed .............. (2,459,578) (29,275,997)
---------- -------------
Net decrease ................. (898,983) $ (10,694,748)
========== =============
Class R
Shares sold .................. 28,591 $ 333,948
Shares redeemed .............. (17,186) (200,545)
---------- -------------
Net increase ................. 11,405 $ 133,403
========== =============
THE ALGER INSTITUTIONAL FUNDS -50-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
SHARES AMOUNT
------ ------
Balanced Fund
Class I
Shares sold .................. 6,805 $ 51,878
Dividends reinvested ......... 5,423 41,217
Shares redeemed .............. (11,832) (89,181)
---------- -------------
Net increase ................. 396 $ 3,914
========== =============
Class R
Shares sold .................. 2,763 $ 20,812
Dividends reinvested ......... 685 5,169
Shares redeemed .............. (686) (5,120)
---------- -------------
Net increase ................. 2,762 $ 20,861
========== =============
Socially Responsible Growth Fund
Class I
Shares sold .................. 33 $ 188
Dividends reinvested ......... 9,429 52,611
Shares redeemed .............. (2,640) (14,708)
---------- -------------
Net increase ................. 6,822 $ 38,091
========== =============
Class R
Shares sold .................. 18,199 $ 100,274
Dividends reinvested ......... 1,012 5,594
Shares redeemed .............. (574) (3,145)
---------- -------------
Net increase ................. 18,637 $ 102,723
========== =============
During the year ended October 31, 2004, transactions of shares of
beneficial interest were as follows:
LargeCap Growth Fund
Class I
Shares sold .................. 3,182,162 $ 35,531,451
Shares redeemed .............. (3,622,713) (40,424,440)
---------- -------------
Net decrease ................. (440,551) $ (4,892,989)
========== =============
Class R
Shares sold .................. 262,650 $ 2,902,113
Shares redeemed .............. (43,434) (478,582)
---------- -------------
Net increase ................. 219,216 $ 2,423,531
========== =============
SmallCap Growth Fund
Class I
Shares sold .................. 2,187,748 $ 35,342,244
Shares redeemed .............. (4,022,745) (64,081,708)
---------- -------------
Net decrease ................. (1,834,997) $ (28,739,464)
========== =============
Class R
Shares sold .................. 21,118 $ 328,354
Shares redeemed .............. (7,987) (124,976)
---------- -------------
Net increase ................. 13,131 $ 203,378
========== =============
THE ALGER INSTITUTIONAL FUNDS -51-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
SHARES AMOUNT
------ ------
MidCap Growth Fund
Class I
Shares sold .................. 34,583,348 $ 531,972,510
Shares redeemed .............. (16,573,777) (254,461,561)
----------- --------------
Net increase ................. 18,009,571 $ 277,510,949
=========== ==============
Class R
Shares sold .................. 936,539 $ 14,301,063
Shares redeemed .............. (203,152) (3,105,435)
----------- --------------
Net increase ................. 733,387 $ 11,195,628
=========== ==============
Capital Appreciation Fund
Class I
Shares sold .................. 5,719,480 $ 65,521,012
Shares redeemed .............. (8,939,452) (101,293,599)
----------- --------------
Net decrease ................. (3,219,972) $ (35,772,587)
=========== ==============
Class R
Shares sold .................. 72,246 $ 816,970
Shares redeemed .............. (13,789) (157,355)
----------- --------------
Net increase ................. 58,457 $ 659,615
=========== ==============
Balanced Fund
Class I
Shares sold .................. 12,405 $ 93,926
Dividends reinvested ......... 100 756
Shares redeemed .............. (11,277) (83,135)
----------- --------------
Net increase ................. 1,228 $ 11,547
=========== ==============
Class R
Shares sold .................. 14,498 $ 105,281
Shares redeemed .............. -- --
----------- --------------
Net increase ................. 14,498 $ 105,281
=========== ==============
Socially Responsible Growth Fund
Class I
Shares sold .................. 632 $ 3,477
Dividends reinvested ......... 1,124 6,014
Shares redeemed .............. (1,613) (8,540)
----------- --------------
Net increase ................. 143 $ 951
=========== ==============
Class R
Shares sold .................. 9,021 $ 47,809
Dividends reinvested ......... 74 398
Shares redeemed .............. (1,400) (7,543)
----------- --------------
Net increase ................. 7,695 $ 40,664
=========== ==============
THE ALGER INSTITUTIONAL FUNDS -52-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
NOTE 7--DISTRIBUTIONS TO SHAREHOLDERS:
Distributions paid by the Funds during the year ended October 31, 2004,
consisted entirely of ordinary income. The tax character of distributions paid
during the six months ended April 30, 2005 were as follows:
MidCap Growth Fund
Distributions paid from:
Ordinary income ................................ $ --
Long-term capital gain ......................... 14,306,365
--------------
Total distributions paid ....................... $ 14,306,365
==============
Balanced Fund
Distributions paid from:
Ordinary income ................................ $ 18,724
Long-term capital gain ......................... 34,940
--------------
Total distributions paid ....................... $ 53,664
==============
Socially Responsible Growth Fund
Distributions paid from:
Ordinary income ................................ $ --
Long-term capital gain ......................... 63,890
--------------
Total distributions paid ....................... $ 63,890
==============
As of October 31, 2004, the components of distributable earnings on a tax
basis were as follows:
LargeCap Growth Fund
Undistributed ordinary income .................. --
Undistributed long-term gain ................... --
Unrealized appreciation ........................ $ 5,718,792
SmallCap Growth Fund
Undistributed ordinary income .................. --
Undistributed long-term gain ................... --
Unrealized appreciation ........................ $ 4,361,517
MidCap Growth Fund
Undistributed ordinary income .................. --
Undistributed long-term gain ................... $ 14,299,602
Unrealized appreciation ........................ 47,342,278
Capital Appreciation Fund
Undistributed ordinary income .................. --
Undistributed long-term gain ................... --
Unrealized appreciation ........................ $ 11,465,876
THE ALGER INSTITUTIONAL FUNDS -53-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Balanced Fund
Undistributed ordinary income .................. $ 11,953
Undistributed long-term gain ................... 34,771
Unrealized appreciation ........................ 55,818
Socially Responsible Growth Fund
Undistributed ordinary income .................. --
Undistributed long-term gain ................... $ 63,841
Unrealized appreciation ........................ 120,349
The differences between book basis and tax basis unrealized appreciation
is attributable primarily to the tax deferral of losses on wash sales.
At October 31, 2004, the Funds, for federal income tax purposes, had
capital loss carryforwards which expire as set forth in the table below. These
amounts may be applied against future net realized gains until the earlier of
their utilization or expiration.
LARGECAP SMALLCAP CAPITAL
GROWTH GROWTH APPRECIATION
EXPIRATION DATE FUND FUND FUND
- --------------- ----------- ----------- ------------
2009 $10,902,646 $62,515,944 $ 76,937,585
2010 22,615,727 12,342,837 46,484,857
2011 5,070,663 -- --
----------- ----------- ------------
$38,589,036 $74,858,781 $123,422,442
=========== =========== ============
NOTE 8--REGULATORY MATTERS AND LEGAL PROCEEDINGS:
Alger Management has been responding to inquiries, document requests
and/or subpoenas from regulatory authorities, including the United States
Securities and Exchange Commission ("SEC"), the Office of the New York State
Attorney General, and the Attorney General of New Jersey, in connection with
their investigation of practices in the mutual fund industry identified as
"market timing" and "late trading." Alger Management has assured the board of
the Trust that if it is determined that improper trading practices in the Trust
detrimentally affected its performance, Alger Management will make appropriate
restitution.
Certain civil actions have developed out of the regulatory investigations.
Several purported class actions and shareholder derivative suits have been filed
against various parties, including, depending on the lawsuit, Alger Management,
certain of the mutual funds managed by Alger Management (the "Alger Mutual
Funds"), and certain current and former Alger Mutual Fund trustees and officers,
alleging wrongful market-timing and late-trading activities. These cases have
been transferred to the U.S. District Court of Maryland by the Judicial Panel on
Multidistrict Litigation for consolidated pre-trial proceedings. On September
29, 2004, consolidated amended complaints involving these cases
THE ALGER INSTITUTIONAL FUNDS -54-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- -- a Consolidated Amended Fund Derivative Complaint (the "Derivative Complaint")
and two substantially identical Consolidated Amended Class Action Complaints
(together, the "Class Action Complaint") -- were filed in the Maryland federal
district court under the caption number 1:04-MD-15863 (JFM).
The Derivative Complaint, brought on behalf of the Alger Mutual Funds and
Castle Convertible Fund, Inc., a registered closed-end fund managed by Alger
Management, alleges (i) violations, by Alger Management and, depending on the
specific offense alleged, by its immediate parent the Distributor (Fred Alger &
Company, Incorporated) and/or the fund trustee defendants, of Sections 36(a),
36(b), 47, and 48 of the Investment Company Act of 1940 and of Sections 206 and
215 of the Investment Advisers Act of 1940, breach of fiduciary duty, and breach
of contract, (ii) various offenses by other, unrelated, third-party defendants,
and (iii) unjust enrichment by all the named defendants, all by virtue of the
alleged wrongful market-timing and late-trading activities. The complaint seeks,
among other things, removal of the trustee defendants and of Alger Management,
certain rescissory relief, disgorgement of management fees and allegedly
unlawful profits, compensatory and punitive monetary damages, and plaintiffs'
fees and expenses (including attorney and expert fees). The Class Action
Complaint names the Alger-related defendants named in the Derivative Complaint
as well as certain defendants not named in the Derivative Complaint, including
certain entities affiliated with Alger Management, certain Alger Mutual Funds,
including the Trust, and certain additional former trustees and a former officer
of the defendant Alger Mutual Funds. It alleges, on the basis of factual
allegations similar to those of the Derivative Complaint with respect to the
Alger defendants, (i) offenses by Alger defendants similar to those alleged in
the Derivative Complaint, (ii) violations, by Alger Management, the Distributor,
their affiliates, the funds named as defendants, and the current and former fund
trustees and officers, of Sections 11, 12(a)(2), and 15 of the Securities Act of
1933, Sections 10(b) (and Rule 10b-5 thereunder) and 20(a) of the Securities
Exchange Act of 1934, and Section 34(b) of the Investment Company Act of 1940,
(iii) breach of contract by the funds named as defendants, and (iv) unjust
enrichment by all of the named defendants. It seeks relief similar to that
sought in the Derivative Complaint.
On or about April 12, 2005, the Attorney General of the State of West
Virginia filed a complaint in the Circuit Court of Marshall County, West
Virginia against a number of mutual fund investment advisers, distributors and
others, including Alger Management and the Distributor, alleging violations of
the West Virginia Consumer Credit and Protection Act and other wrongful conduct.
Insofar as the factual allegations in the complaint relate to Alger Management
and the Distributor, they ascribe improper conduct to these entities relating to
"market timing" in one or more of the Alger Mutual Funds. The complaint seeks
injunctive relief, civil monetary penalties, costs and attorney fees, and other
relief.
THE ALGER INSTITUTIONAL FUNDS -55-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Alger Management continues to cooperate with the SEC and state
investigations, which have not, as of the present date, been resolved. Although
Alger Management does not believe that the Alger Mutual Funds are themselves
targets of these regulators' investigations as potential enforcement defendants,
the actions of Alger Management and certain of its affiliates and their senior
executives and Alger Mutual Fund senior personnel are of interest to the
investigators. Although no regulatory enforcement action has yet been commenced
against Alger Management, board members or personnel in connection with the
matters being investigated (other than the actions resolved in the fall of 2003
against James P. Connelly, Jr., former Vice Chairman of the Distributor), it is
possible that the SEC and the states may pursue actions in the future. The
potential timing of any such action or the relief or remedies that may be sought
are not known at this time. Alger Management is not yet able to predict whether
or on what terms matters might be resolved with the SEC or the states. The SEC
and, in some cases, state government authorities have a variety of
administrative and civil enforcement powers, including injunctive powers,
authority to assess substantial fines and penalties and order restitution,
authority to limit the activities of a person or company (including license and
registration revocations, injunctive authority and prohibition from engaging in
the investment or securities businesses) and other enforcement powers, that may
be exercised administratively or by going into court.
Under Section 9(a) of the Investment Company Act, if any of the various
regulatory investigations or lawsuits were to result in a court injunction
against Alger Management or the Distributor, both companies would, in the
absence of exemptive relief granted by the SEC, be barred from serving as
investment adviser/sub-adviser or principal underwriter for any registered
investment company, including the Trust. There is no assurance that such
exemptive relief would be granted if sought. In addition, it is possible that
these matters and/or other developments resulting from these matters could
result in increased Trust redemptions, loss of Alger Management personnel or
Trust board members, diversion of time and attention of Alger Management
personnel, diminishment of financial resources of Alger Management, or other
consequences potentially adverse to the Trust. Alger Management cannot predict
the potential effect of such actions upon Alger Management or the Trust. There
can be no assurance that the effect, if any, would not be material.
NOTES:
NOTES:
NOTES:
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
Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266
This report is submitted for the general information of the shareholders of The
Alger 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 and the proxy voting record is
available, without charge, by calling (800) 992-3362 or online on the Funds'
website at http://www.alger.com or on the SEC's website at http://www.sec.gov.
QUARTERLY FUND HOLDINGS
The Funds file their complete schedule of portfolio holdings with the SEC for
the first and third quarter of each fiscal year on Form N-Q. Forms N-Q are
available online on the Funds' website at http://www.alger.com or on the SEC's
website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed and copied
at the SEC's Public Reference Room in Washington, D.C. Information regarding the
operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330. A copy of the most recent quarterly holdings may also be
obtained from the Funds by calling (800) 992-3362.
[LOGO OMITTED]
The Alger Institutional Funds
Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266
ISAR 43005 L2
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended)
are effective based on their evaluation of the disclosure controls and
procedures as of a date within 90 days of the filing date of this document.
(b) No changes in the registrant's internal control over financial reporting
occurred during the registrant's second fiscal quarter of the period covered by
this report that materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable
(a) (2) Certifications of principal executive officer and principal financial
officer as required by rule 30a-2(a) under the Investment Company Act of 1940
are attached as Exhibit 99.CERT
(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 28, 2005
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 28, 2005
By: /s/ Frederick A. Blum
---------------------
Frederick A. Blum
Treasurer
Date: June 28, 2005