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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. Hal Liebes
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, 2006
ITEM 1. REPORT(S) TO STOCKHOLDERS.
THE ALGER
INSTITUTIONAL FUNDS
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
ALGER TECHNOLOGY INSTITUTIONAL FUND
ALGER CORE FIXED-INCOME INSTITUTIONAL FUND
SEMI-ANNUAL REPORT
APRIL 30, 2006
(UNAUDITED)
[ALGER LOGO]
TABLE OF CONTENTS
THE ALGER INSTITUTIONAL FUNDS
Letter to Our Shareholders.................................................. 1
Portfolio Summary........................................................... 3
Schedules of Investments.................................................... 4
Statements of Assets and Liabilities........................................ 36
Statements of Operations.................................................... 38
Statements of Changes in Net Assets......................................... 40
Financial Highlights........................................................ 44
Notes to Financial Statements............................................... 50
Additional Information...................................................... 64
GO PAPERLESS WITH ALGER ELECTRONIC DELIVERY SERVICE
Alger is pleased to provide you with the ability to access regulatory materials
online. When documents such as prospectuses and annual and semi-annual reports
are available, we'll send you an e-mail notification with a convenient link that
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this free service, simply enroll at www.icsdelivery.com/alger.
Dear Shareholders, April 30, 2006
In the six months ended April 30, 2006, the U.S. economy remained strong,
with inflation contained and overall Gross Domestic Product ("GDP") growth
increasing at an annual rate of 4.8% as of March 31, 2006, three percentage
points over the previous quarter's rate. And it wasn't simply that the economy
overall was solid. During this period, corporate profits exceeded expectations;
productivity stayed high; and growth companies in particular saw healthy stock
appreciation.
At the same time, the continued strength of the economy led to uncertainty
about interest rates and inflation, and that in turn, kept the markets from
breaking out of their trading range. At the Federal Open Market Committee (FOMC)
meeting on March 28th, the Fed once again raised the key interest rate from
4.50% to 4.75%-the 15th consecutive increase since June 2004. The Fed noted that
the current business climate is showing remarkable growth "but appears likely to
moderate to a more sustainable pace."1
After new Fed Chairman Ben Bernanke appeared before the U.S. Congress on
April 27th, it was widely believed that the Fed would stop raising rates before
the summer. Subsequent economic data clouded the picture yet again, and the
markets retreated. Nonetheless, rates remain low relative to historical levels,
and while the precise number of future increases is uncertain, it is our belief
that we are close to the peak of the current cycle.
Rising interest rates have been a headwind for the markets, but the
uncertainty over when the increases will stop has been even more of an
impediment. Even with that uncertainty hovering over the market, solid GDP
growth and robust corporate profit growth propelled equities higher during the
six months that ended on April 30th, and nearly every market sector posted
positive returns. And because corporate profits have increased at a faster rate
than the major indices, the market overall has continued to become less
expensive. For the six months ending April 30, 2006, the major indices ended up,
with the Dow Jones Industrials up 10.21%, the Standard & Poor's 500 Index up
15.27% and the NASDAQ up 9.55%.
Globally, foreign markets and emerging economies have been torrid. Asian
stock markets offered substantial gains in 2005, and by the end of December,
China had revised its official GDP figures upward by about $300 billion, more
accurately reflecting the size and scope of its economy and the growing power of
its consumers. Even those investors not directly exposed to those markets tended
to benefit. Many companies have global exposure, and their earnings growth
reflects the strong global economy.
In the bond market, we saw a dramatic re-steepening of the yield curve for
the six months ending April 30, 2006, with yields on the 2-year bond up 34 basis
points to 4.86% and rates on the 10-year rising more than 50 basis points to
5.05%. The dramatic move upward in interest rates corresponded to renewed fears
of inflation spurred on by rising energy and commodity prices as well as two
more potential increases in the overnight target lending rate by the Fed. The
10-year Treasury note
- ------------------
(1) As of this writing, the key interest rate experienced another quarter
percentage point hike on May 10, 2006 to 5.0%.
-2-
pierced 5.00% for the first time in nearly four years on the heels of a
continued robust economic landscape, ever-increasing capacity utilization and
tight labor markets.
Despite the continued rise in interest rates, we believe that the overall
low rates by historical standards and record levels of household net worth have
buoyed consumer spending, with U.S. consumers now sustaining higher levels of
debt than they have in years. In fact, in 2005 U.S. consumers defied
expectations by absorbing rising energy prices without substantial decreases in
spending. The first months of 2006 saw no significant change in these trends, as
both growth and productivity outpaced expectations.
Going forward, we believe that both the U.S. and the global economy will
continue to expand, and our outlook for corporate earnings for 2006 is positive.
U.S. markets may remain range-bound so long as the interest rate picture stays
uncertain, but by most measures, the markets are trading at reasonable
valuations backed by strong fundamentals.
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 business and marketplaces of tomorrow, bringing growth opportunities to our
investors.
Respectfully submitted,
/s/ Daniel C. Chung
Daniel C. Chung
Chief Investment Officer
This report and the financial statements contained herein are submitted
for the general information of shareholders of the Fund. This report is not
authorized for distribution to prospective investors in the Fund unless preceded
or accompanied by an effective prospectus for the Fund.
The views of the Funds' management are as of June 8, 2006 and Fund
holdings described in this document are as of April 30, 2006; these views and
the fund holdings may have changed subsequent to these dates. Nothing in this
document should be construed as a recommendation to purchase or sell securities,
markets, or industries.
MUTUAL FUNDS ARE NOT INSURED BY THE FDIC, ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY BANKS, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVE, RISKS AND
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT (800) 254-3796, OR VISITING OUR WEBSITE AT
www.alger.com, OR CONTACTING THE FUND'S DISTRIBUTOR, FRED ALGER & COMPANY,
INCORPORATED, 30 MONTGOMERY STREET, JERSEY CITY, NEW JERSEY 07302. READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
PORTFOLIO SUMMARY* (UNAUDITED) -3-
SOCIALLY
LARGECAP SMALLCAP MIDCAP CAPITAL RESPONSIBLE
GROWTH GROWTH GROWTH APPRECIATION GROWTH
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL TECHNOLOGY
SECTORS FUND FUND FUND FUND FUND FUND
- ------- ------------- ------------- ------------- ------------- ------------- ----------
Consumer Discretionary ....... 8.0% 15.1% 15.1% 11.1% 8.8% 0.0%
Consumer Staples ............. 8.5 1.0 0.5 6.9 5.7 0.0
Energy ....................... 5.2 8.1 9.6 8.2 7.7 0.0
Financials ................... 10.4 9.5 9.5 7.8 9.5 0.0
Health Care .................. 5.9 17.5 13.2 13.3 13.4 0.0
Industrials .................. 10.6 13.5 13.5 11.0 5.0 2.6
Information Technology ....... 26.8 22.7 27.9 31.0 36.0 94.0
Materials .................... 6.7 3.2 5.9 4.0 3.9 0.0
Telecommunication Services ... 1.2 2.5 1.9 4.8 5.7 1.5
Utilities .................... 0.9 0.0 0.0 0.0 0.0 0.0
Cash and Net Other Assets .... 15.8 6.9 2.9 1.9 4.3 1.9
----- ----- ----- ----- ----- -----
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
===== ===== ===== ===== ===== =====
BALANCED CORE
INSTITUTIONAL FIXED-INCOME
SECTORS/SECURITY TYPE FUND FUND
- --------------------- ------------- ------------
Consumer Discretionary ................................................................ 5.9%
Consumer Staples ...................................................................... 6.3
Energy ................................................................................ 3.8
Financials ............................................................................ 7.8
Health Care ........................................................................... 4.4
Industrials ........................................................................... 7.8
Information Technology ................................................................ 19.6
Materials ............................................................................. 5.0
Telecommunication Services ............................................................ 0.9
Utilities ............................................................................. 0.7
-----
Total Common Stocks ................................................................. 62.2%
-----
Corporate Bonds ....................................................................... 10.7% 25.8%
Agency Bonds .......................................................................... 11.6 29.6
US Treasury Bonds ..................................................................... 10.9 41.4
----- -----
Total Bonds ......................................................................... 33.2% 96.8%
----- -----
Cash and Net Other Assets ............................................................. 4.6% 3.2%
----- -----
100.0% 100.0%
===== =====
- ------------------
* Based on Net Assets
THE ALGER INSTITUTIONAL FUNDS -4-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
SHARES COMMON STOCKS--84.2% VALUE
--------- --------
AEROSPACE & DEFENSE--1.5%
23,700 Boeing Company ................................... $ 1,977,765
------------
BIOTECHNOLOGY--2.3%
20,350 Biogen Idec Inc.* ................................ 912,698
18,100 Genentech, Inc.* ................................. 1,442,751
13,700 Vertex Pharmaceuticals Incorporated* ............. 498,269
------------
2,853,718
------------
CAPITAL MARKETS--1.4%
6,350 Bear Stearns Companies Inc. ...................... 904,939
6,050 Goldman Sachs Group, Inc. ........................ 969,755
------------
1,874,694
------------
CHEMICALS--.6%
10,900 Air Products and Chemicals, Inc. ................. 746,868
------------
COMMUNICATION EQUIPMENT--4.8%
143,750 Cisco Systems, Inc.* ............................. 3,011,563
26,850 Corning Incorporated* ............................ 741,866
33,800 Motorola, Inc. ................................... 721,630
24,000 Nokia Oyj ADR# ................................... 543,840
9,550 QUALCOMM Inc. .................................... 490,297
------------
5,509,196
------------
COMPUTERS & PERIPHERALS--5.0%
41,200 Apple Computer, Inc.* ............................ 2,900,068
47,000 Network Appliance, Inc.* ......................... 1,742,290
46,750 Seagate Technology ............................... 1,241,680
------------
5,884,038
------------
DIVERSIFIED FINANCIAL SERVICES--3.0%
20,600 Citigroup Inc. ................................... 1,028,970
14,500 Principal Financial Group (The) .................. 743,995
23,800 Prudential Financial, Inc. ....................... 1,859,494
------------
3,632,459
------------
DIVERSIFIED TELECOMMUNICATION SERVICES--1.0%
21,200 ALLTEL Corporation ............................... 1,364,644
------------
ELECTRIC UTILITIES--.9%
19,100 Exelon Corporation ............................... 1,031,400
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.5%
20,300 Emerson Electric Co. ............................. 1,724,485
------------
ELECTRONICS--1.7%
103,150 Nintendo Co., Ltd. ADR# .......................... 1,919,384
------------
ENERGY EQUIPMENT & SERVICES--3.5%
28,900 National-Oilwell Varco Inc.* ..................... 1,993,233
24,400 Transocean Inc.* ................................. 1,978,108
------------
3,971,341
------------
FINANCIAL INFORMATION SERVICES--.4%
14,750 Genworth Financial Inc. Cl. A .................... 489,700
------------
THE ALGER INSTITUTIONAL FUNDS -5-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
FINANCIAL SERVICES--2.3%
69,150 Hong Kong Exchanges & Clearing Limited ........... $ 497,280
63,150 Janus Capital Group Inc. ......................... 1,228,899
54,800 Schwab (Charles) Corporation (The) ............... 980,920
------------
2,707,099
------------
FOOD PRODUCTS--1.5%
47,050 Archer-Daniels-Midland Company ................... 1,709,796
------------
FOOD & STAPLES RETAILING--2.6%
99,250 CVS Corporation .................................. 2,949,710
------------
FREIGHT & LOGISTICS--1.5%
16,350 FedEx Corp. ...................................... 1,882,375
------------
HEALTH CARE PROVIDERS & SERVICES--1.2%
26,750 Medco Health Solutions, Inc.* .................... 1,423,903
------------
HOTELS, RESTAURANTS & LEISURE--4.3%
13,250 Starbucks Corporation* ........................... 493,828
------------
HOUSEHOLD PRODUCTS--1.8%
36,456 Procter & Gamble Company ......................... 2,122,104
------------
INDUSTRIAL CONGLOMERATES--2.9%
103,950 General Electric Company ......................... 3,595,631
------------
INSURANCE--1.7%
23,450 Hartford Financial Services Group, Inc. (The) .... 2,155,759
------------
INTERNET & CATALOG RETAIL--4.0%
100,700 eBay Inc.* ....................................... 3,465,087
45,600 Netflix Inc.* ................................... 1,351,584
------------
4,816,671
------------
INTERNET SOFTWARE & SERVICES--2.8%
105,850 Yahoo! Inc. * .................................... 3,469,762
------------
MACHINERY--1.7%
25,750 Caterpillar Inc. ................................. 1,950,304
------------
MEDIA--3.6%
87,050 News Corporation Cl. A ........................... 1,493,778
151,000 XM Satellite Radio Holdings Inc. Cl. A* .......... 3,053,220
------------
4,546,998
------------
METALS & MINING--7.5%
23,600 Cameco Corporation ............................... 959,340
18,000 Freeport-McMoRan Copper & Gold, Inc. Cl. B ....... 1,162,440
61,750 Inco Limited ..................................... 3,487,023
14,750 Peabody Energy Corporation ....................... 941,935
14,100 Phelps Dodge Corporation ......................... 1,215,279
35,550 Vedanta Resources PLC ............................ 1,022,063
------------
8,788,080
------------
MULTILINE RETAIL--1.9%
16,550 Costco Wholesale Corporation* .................... 900,817
18,650 Federated Department Stores, Inc. ................ 1,451,903
------------
2,352,720
------------
THE ALGER INSTITUTIONAL FUNDS -6-
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
PHARMACEUTICALS--2.0%
61,749 Teva Pharmaceutical Industries Ltd. ADR# ......... $ 2,500,834
------------
SAVINGS & LOANS--.9%
14,550 Golden West Financial Corp. ...................... 1,045,708
------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT--7.8%
42,625 Broadcom Corporation Cl. A * ..................... 1,752,314
88,700 Freescale Semiconductor Inc. Cl. A* .............. 2,804,694
36,000 Marvell Technology Group Ltd.* ................... 2,055,240
38,000 Rambus Inc.* ..................................... 1,475,540
29,750 Texas Instruments Incorporated ................... 1,032,623
------------
9,120,411
------------
SOFTWARE--.9%
48,300 Microsoft Corporation ............................ 1,166,444
------------
SPECIALTY RETAIL--1.1%
31,150 Home Depot, Inc. ................................. 1,243,820
------------
TOBACCO--1.8%
27,800 Altria Group, Inc. ............................... 2,033,847
------------
TRANSPORTATION--.8%
10,700 Textron Inc. ..................................... 962,464
------------
Total Common Stocks
(Cost $92,592,448) ............................. 96,017,960
------------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--4.0%
----------
U.S. AGENCY OBLIGATIONS
$4,547,000 Federal Home Loan Banks, 4.52%, 5/1/06
(Cost $4,545,858) .............................. 4,545,858
------------
Total Investments
(Cost $97,138,306) (a) .............................. 88.2% 100,563,818
Other Assets in Excess of Liabilities ................. 11.8 13,438,419
----- -------------
Net Assets ............................................ 100.0% $114,002,237
===== =============
- ------------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2006, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $98,020,698 amounted to $2,543,120
which consisted of aggregate gross unrealized appreciation of $6,164,133 and
aggregate gross unrealized depreciation of $3,621,013.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -7-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
SHARES COMMON STOCKS--93.1% VALUE
--------- --------
AEROSPACE & DEFENSE--3.2%
60,350 BE Aerospace, Inc.* ............................. $ 1,570,911
32,500 Esterline Technologies Corporation* ............. 1,440,400
33,200 SI International Inc.* .......................... 1,131,124
------------
4,142,435
------------
AIRLINES--.7%
66,950 AirTran Holdings, Inc.* ......................... 935,961
------------
APPAREL--1.3%
55,650 Gymboree Corp.* ................................. 1,673,952
------------
AUTOMOTIVE COMPONENTS--1.2%
73,300 LKQ Corporation* ................................ 1,542,232
------------
AUTOMOTIVE EQUIPMENT & SERVICES--.7%
36,250 Tenneco Inc.* ................................... 871,813
------------
BIOTECHNOLOGY--4.6%
34,850 Alkermes, Inc. * ................................ 748,230
36,750 Cubist Pharmaceuticals, Inc.* ................... 833,123
42,850 Keryx Biopharmaceuticals, Inc. * ................ 729,735
74,350 Medarex, Inc.* .................................. 892,943
23,000 Myogen, Inc.* ................................... 760,380
42,650 Theravance, Inc.* ............................... 1,196,759
24,300 Vertex Pharmaceuticals Incorporated* ............ 883,791
------------
6,044,961
------------
CAPITAL MARKETS--2.4%
9,500 Affiliated Managers Group, Inc.* ................ 962,350
17,700 Greenhill & Co., Inc. ........................... 1,255,284
16,250 National Financial Partners Corporation ......... 845,000
------------
3,062,634
------------
CHEMICALS--1.0%
49,600 Zoltek Companies, Inc.* ......................... 1,264,304
------------
COMMERCIAL BANKS--2.3%
28,800 Boston Private Financial Holdings, Inc. ......... 957,600
40,850 Signature Bank* ................................. 1,444,865
12,600 Wintrust Financial Corporation .................. 652,050
------------
3,054,515
------------
COMMERCIAL SERVICES & SUPPLIES--4.2%
31,600 American Reprographics Co.* ..................... 1,120,852
18,050 CoStar Group Inc.* .............................. 1,018,923
49,350 FTI Consulting, Inc.* ........................... 1,418,319
38,200 Gevity HR, Inc. ................................. 981,357
41,350 Navigant Consulting, Inc.* ...................... 871,658
------------
5,411,109
------------
THE ALGER INSTITUTIONAL FUNDS -8-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
COMMUNICATION EQUIPMENT--1.7%
59,350 Polycom, Inc.* .................................. $ 1,305,700
76,500 Powerwave Technologies, Inc.* ................... 852,975
------------
2,158,675
------------
COMPUTER SERVICES--1.7%
621,000 Internap Network Services Corporation* .......... 813,510
50,050 Open Solutions Inc.* ............................ 1,362,361
------------
2,175,871
------------
COMPUTER TECHNOLOGY--1.4%
33,850 Atheros Communications* ......................... 859,452
83,800 Secure Computing Corporation* ................... 900,850
------------
1,760,302
------------
COMPUTERS & PERIPHERALS--.6%
112,850 Mobility Electronics, Inc.* ..................... 803,492
------------
CONSTRUCTION & ENGINEERING--1.0%
31,900 URS Corporation* ................................ 1,373,933
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.1%
24,050 Multi-Fineline Electronix, Inc.* ................ 1,401,634
------------
ELECTRONICS: SEMICONDUCTORS/COMPONENTS--.5%
16,100 Netlogic Microsystems Inc. * .................... 648,347
------------
ENERGY--1.2%
32,200 Veritas DGC Inc.* ............................... 1,543,024
------------
ENERGY EQUIPMENT & SERVICES--1.2%
21,950 Dril-Quip Inc. .................................. 1,579,961
------------
FINANCIAL INFORMATION SERVICES--1.0%
22,600 GFI Group Inc.* ................................. 1,285,488
------------
FOOD & BEVERAGES--1.0%
49,550 Hain Celestial Group Inc. (The)* ................ 1,332,895
------------
HEALTH CARE EQUIPMENT & SUPPLIES--5.8%
29,700 ArthroCare Corporation* ......................... 1,346,301
22,300 Haemonetics Corporation* ........................ 1,215,349
27,450 Hologic, Inc.* .................................. 1,308,542
45,900 Illumina, Inc.* ................................. 1,451,817
5,550 Intuitive Surgical, Inc.* ....................... 704,850
31,100 Ventana Medical Systems, Inc.* .................. 1,514,570
------------
7,541,429
------------
HEALTH CARE PROVIDERS & SERVICES--5.3%
43,550 Psychiatric Solutions, Inc.* .................... 1,439,763
34,100 Radiation Therapy Services, Inc.* ............... 871,255
30,100 Sierra Health Services, Inc.* ................... 1,180,221
35,350 Sunrise Senior Living Inc.* ..................... 1,315,020
23,900 VCA Antech, Inc.* ............................... 743,051
31,650 WellCare Health Plans Inc.* ..................... 1,325,502
------------
6,874,812
------------
THE ALGER INSTITUTIONAL FUNDS -9-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
HOTELS, RESTAURANTS & LEISURE--2.0%
36,292 Applebee's International, Inc. .................. $ 842,337
60,800 Morgans Hotel Group* ............................ 1,094,400
16,400 Orient-Express Hotels Ltd. Cl. A ................ 672,400
------------
2,609,137
------------
INSURANCE--1.3%
40,550 Ohio Casualty Corporation ....................... 1,202,308
16,000 Platinum Underwriters Holdings , Inc. ........... 441,120
------------
1,643,428
------------
INTERNET & CATALOG RETAIL--1.1%
58,200 Priceline.com Incorporated* ..................... 1,422,408
------------
INTERNET SOFTWARE & SERVICES--5.2%
72,950 Allscripts Healthcare Solutions, Inc.* .......... 1,242,339
64,150 DealerTrack Holdings Inc.* ...................... 1,430,545
85,150 Jupitermedia Corporation* ....................... 1,500,343
60,600 Openwave Systems, Inc.* ......................... 1,127,765
43,500 WebEx Communications, Inc.* ..................... 1,537,725
------------
6,838,717
------------
IT SERVICES--1.3%
54,050 Wright Express Corp.* ........................... 1,664,200
------------
LEISURE & ENTERTAINMENT--1.0%
41,800 WMS Industries Inc.* ............................ 1,306,250
------------
LEISURE EQUIPMENT & PRODUCTS--.9%
26,450 LIFE TIME FITNESS, Inc.* ........................ 1,211,410
------------
MACHINERY--4.3%
19,350 Actuant Corporation Cl. A ....................... 1,237,433
31,125 Bucyrus International, Inc. Cl. A ............... 1,615,698
18,550 ESCO Technologies Inc.* ......................... 940,485
24,300 Gardner Denver Inc.* ............................ 1,811,078
------------
5,604,694
------------
MEDIA--2.7%
17,100 Focus Media Holding Limited ADR*# ............... 1,032,669
36,800 NeuStar, Inc. Cl. A* ............................ 1,291,680
69,350 World Wrestling Entertainment, Inc. Cl. A ....... 1,202,529
------------
3,526,878
------------
METALS--.8%
45,800 RBC Bearings, Inc. * ............................ 1,085,002
------------
METALS & MINING--2.2%
979,750 Breakwater Resources, Ltd.* ..................... 1,234,485
472,250 Paladin Resources Limited* ...................... 1,676,488
------------
2,910,973
------------
THE ALGER INSTITUTIONAL FUNDS -10-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
OIL & GAS--4.5%
25,500 Carrizo Oil & Gas, Inc.* ........................ $ 749,190
20,450 Giant Industries, Inc.* ......................... 1,469,945
120,650 Grey Wolf, Inc.* ................................ 941,070
14,950 Holly Corporation ............................... 1,153,692
33,164 TODCO Cl. A* .................................... 1,521,233
------------
5,835,130
------------
OIL & GAS EXPLORATION SERVICES--1.2%
123,400 Petrobank Energy and Resources Ltd.* ............ 1,531,394
------------
PHARMACEUTICAL PREPARATIONS--.8%
24,800 Adams Respiratory Therapeutics, Inc.* ........... 1,063,672
------------
REAL ESTATE--.8%
13,000 Jones Lang LaSalle Incorporated ................. 1,101,880
------------
RESTAURANTS--1.2%
62,200 McCormick & Schmick's Seafood Restaurants,
Inc.* ......................................... 1,555,000
------------
RETAIL--1.1%
34,150 Phillips-Van Heusen Corporation ................. 1,372,830
------------
ROAD & RAIL--.9%
26,300 Landstar Systems, Inc. .......................... 1,117,487
------------
SEMICONDUCTOR CAPITAL EQUIPMENT--1.8%
32,150 FormFactor Inc.* ................................ 1,340,334
29,800 SiRF Technology Holdings, Inc.* ................. 1,017,670
------------
2,358,004
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.3%
40,600 ATMI, Inc.* ..................................... 1,153,040
31,750 Ikanos Communications* .......................... 588,010
50,450 Microsemi Corporation* .......................... 1,378,294
37,150 Tessera Technologies Inc.* ...................... 1,191,401
50,450 Trident Microsystems, Inc.* ..................... 1,341,970
------------
5,652,715
------------
SOFTWARE--2.4%
92,000 Quest Software, Inc. * .......................... 1,583,320
51,950 VeriFone Holdings Inc.* ......................... 1,608,372
------------
3,191,692
------------
SPECIALTY RETAIL--2.5%
32,750 Aeropostale, Inc.* .............................. 1,005,753
26,050 AnnTaylor Stores Corporation* ................... 972,447
40,950 DSW Inc. Cl. A* ................................. 1,281,733
------------
3,259,933
------------
TEXTILES, APPAREL & LUXURY GOODS--.5%
15,100 Deckers Outdoor Corporation* .................... 644,619
------------
THE ALGER INSTITUTIONAL FUNDS -11-
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
THRIFTS & MORTGAGE FINANCE--1.7%
60,200 Brookline Bancorp, Inc. ........................ $ 890,960
84,600 Flagstar Bancorp, Inc. ......................... 1,353,600
------------
2,244,560
------------
WIRELESS TELECOMMUNICATION SERVICES--1.5%
76,050 SBA Communications Corporation Cl. A* .......... 1,910,376
------------
Total Common Stocks
(Cost $99,806,607) ........................... 121,146,168
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--10.2%
-----------
U.S. AGENCY OBLIGATIONS
$13,300,000 Federal HomeLoan Banks, 4.52%, 5/1/06
(Cost $13,296,660) ............................ 13,296,660
------------
Total Investments
(Cost $113,103,267)(a) ............................. 103.3% 134,442,828
Liabilities in Excess of Other Assets ................ (3.3) (4,319,479)
----- -------------
Net Assets ........................................... 100.0% $130,123,349
===== =============
- ------------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2006, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $113,201,965 amounted to $21,240,863
which consisted of aggregate gross unrealized appreciation of $22,379,039
and aggregate gross unrealized depreciation of $1,138,176.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -12-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
SHARES COMMON STOCKS--97.1% VALUE
--------- --------
AEROSPACE & DEFENSE--3.7%
787,300 BE Aerospace, Inc.* ........................... $ 20,493,419
483,800 Hexcel Corporation* ........................... 10,687,142
261,875 L-3 Communications Holdings, Inc. ............. 21,395,188
--------------
52,575,749
--------------
BEVERAGES--.5%
52,100 Hansen Natural Corporation* ................... 6,744,866
--------------
CAPITAL MARKETS--2.2%
187,180 Affiliated Managers Group, Inc.* .............. 18,961,334
232,600 National Financial Partners Corporation ....... 12,095,200
--------------
31,056,534
--------------
CASINOS & RESORTS--.9%
721,300 Bally Technologies Inc.* ...................... 12,911,270
--------------
COMMERCIAL SERVICES & SUPPLIES--7.3%
1,032,900 Net 1 UEPS Technologies, Inc.* ................ 32,391,744
938,000 Traffic.com, Inc.* ............................ 5,881,260
583,700 Weight Watchers International, Inc. ........... 28,805,596
806,000 West Corporation* ............................. 37,333,920
--------------
104,412,520
--------------
COMMUNICATION EQUIPMENT--1.5%
4,310,000 Sonus Networks, Inc.* ......................... 21,420,700
--------------
COMPUTERS & PERIPHERALS--4.9%
343,250 Apple Computer, Inc.* ......................... 24,161,368
922,200 Network Appliance, Inc. * ..................... 34,185,954
272,600 Seagate Technology ............................ 7,240,256
184,300 Western Digital Corporation* .................. 3,877,672
--------------
69,465,250
--------------
COMPUTER SERVICES--.5%
666,500 CNET Networks, Inc.* .......................... 7,184,870
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES--.6%
340,300 Global Crossing Ltd.* ......................... 8,381,589
--------------
ELECTRIC AND ELECTRONIC EQUIPMENT--.9%
286,100 Roper Industries, Inc. ........................ 13,578,306
--------------
ELECTRONICS--1.1%
854,900 Nintendo Co., Ltd. ADR# ....................... 15,907,723
--------------
ENERGY EQUIPMENT & SERVICES--4.7%
311,500 Diamond Offshore Drilling Inc. ................ 28,274,855
558,150 National-Oilwell Varco Inc.* .................. 38,495,606
--------------
66,770,461
--------------
ENGINEERING--1.2%
206,810 Jacobs Engineering Group Inc.* ................ 17,103,187
--------------
FINANCIAL INFORMATION SERVICES--.7%
172,200 GFI Group Inc.* ............................... 9,794,736
--------------
THE ALGER INSTITUTIONAL FUNDS -13-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
FINANCIAL SERVICES--4.0%
29,100 Chicago Mercantile Exchange Holdings Inc. ..... $ 13,327,800
985,900 Hong Kong Exchanges & Clearing Limited ........ 7,089,247
1,477,600 Hudson City Bancorp Inc. ...................... 19,814,616
182,800 International Securities Exchange,
Inc. Cl. A .................................. 8,034,060
420,100 Janus Capital Group Inc. ...................... 8,175,146
--------------
56,440,869
--------------
HEALTH CARE EQUIPMENT & SUPPLIES--5.1%
296,200 ArthroCare Corporation* ....................... 13,426,746
385,300 Hologic, Inc.* ................................ 18,367,251
191,900 Intuitive Surgical, Inc.* ..................... 24,371,300
172,100 Mentor Corporation ............................ 7,457,093
488,100 Thoratec Corporation* ......................... 8,790,681
--------------
72,413,071
--------------
HEALTH CARE PROVIDERS & SERVICES--6.5%
259,400 DaVita, Inc.* ................................. 14,593,844
340,300 Health Net Inc.* .............................. 13,850,210
329,200 HealthExtras, Inc.* ........................... 9,566,552
202,500 Medco Health Solutions, Inc.* ................. 10,779,075
584,500 Psychiatric Solutions, Inc.* .................. 19,323,570
577,600 WellCare Health Plans Inc.* ................... 24,189,888
--------------
92,303,139
--------------
HOTELS, RESTAURANTS & LEISURE--2.4
441,000 Orient-Express Hotels Ltd. Cl. A .............. 18,081,000
145,300 P.F. Chang's China Bistro, Inc.* .............. 6,191,233
131,300 Wynn Resorts, Limited* ........................ 9,993,244
--------------
34,265,477
--------------
HOUSEHOLD DURABLES--.1%
18,600 Garmin Ltd. ................................... 1,606,296
--------------
INFORMATION TECHNOLOGY SERVICES--.8%
1,401,600 Sapient Corporation* .......................... 10,974,528
--------------
INSURANCE--1.6%
732,200 Endurance Specialty Holdings Limited .......... 22,668,912
--------------
INTERNET & CATALOG RETAIL--2.2%
1,085,617 Netflix Inc.* ................................ 32,177,688
--------------
INTERNET SOFTWARE & SERVICES--5.6%
738,000 Allscripts Healthcare Solutions, Inc.* ........ 12,568,140
633,082 DealerTrack Holdings Inc.* .................... 14,117,729
1,166,800 Expedia, Inc.* ................................ 21,760,820
492,400 Openwave Systems, Inc.* ....................... 9,163,564
636,500 WebEx Communications, Inc.* ................... 22,500,275
--------------
80,110,528
--------------
THE ALGER INSTITUTIONAL FUNDS -14-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
IT SERVICES--1.9%
230,850 SRA International, Inc.* ...................... $ 7,391,817
626,500 Wright Express Corp.* ......................... 19,289,935
--------------
26,681,752
--------------
LEISURE EQUIPMENT & PRODUCTS--1.0%
306,400 UbiSoft Entertainment SA* ..................... 13,968,776
--------------
MACHINERY--4.7%
197,100 ESCO Technologies Inc.* ....................... 9,992,970
190,400 Manitowoc Company, Inc. ....................... 9,441,936
332,500 Terex Corporation* ............................ 28,777,875
308,300 Trinity Industries, Inc. ...................... 19,577,050
--------------
67,789,831
--------------
MEDIA--3.0%
307,100 Imax Corporation* ............................. 3,061,787
2,002,550 XM Satellite Radio Holdings Inc. Cl. A* ....... 40,491,561
--------------
43,553,348
--------------
METALS & MINING--8.9%
573,800 Cameco Corporation ............................ 23,324,970
390,800 Freeport-McMoRan Copper & Gold, Inc. Cl. B .... 25,237,864
550,500 Inco Limited .................................. 31,086,735
3,585,600 Paladin Resources Limited* .................... 12,728,880
302,400 Peabody Energy Corporation .................... 19,311,264
531,360 Vedanta Resources PLC ......................... 15,276,600
--------------
126,966,313
--------------
OIL & GAS--2.0%
168,300 Quicksilver Resources Inc.* ................... 6,974,352
378,700 Southwestern Energy Co. ....................... 13,640,774
138,200 Western Gas Resources, Inc. ................... 7,186,400
--------------
27,801,526
--------------
PHARMACEUTICALS--.8%
255,550 Sepracor Inc.* ................................ 11,407,752
--------------
REAL ESTATE--1.1%
190,300 Jones Lang LaSalle Incorporated ............... 16,129,828
--------------
SEMICONDUCTOR CAPITAL EQUIPMENT--.8%
335,540 SiRF Technology Holdings, Inc.* ............... 11,458,691
--------------
SEMICONDUCTORS--.5%
794,300 Himax Technologies, Inc. ADR*# ................ 7,069,270
--------------
THE ALGER INSTITUTIONAL FUNDS -15-
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--7.2%
443,825 Broadcom Corporation Cl. A * .................. $ 18,245,646
697,300 Ikanos Communications* ........................ 12,913,996
364,400 Marvell Technology Group Ltd.* ................ 20,803,596
251,100 Microsemi Corporation* ........................ 6,860,052
374,300 Rambus Inc.* .................................. 14,534,069
543,250 Tessera Technologies Inc.* .................... 17,422,028
409,800 Xilinx, Inc. .................................. 11,339,166
--------------
102,118,553
--------------
SOFTWARE--2.7%
1,272,300 Activision, Inc.* ............................. 18,053,937
657,100 VeriFone Holdings Inc.* ....................... 20,343,816
--------------
38,397,753
--------------
SPECIALTY RETAIL--1.5%
447,293 Gamestop Corp Cl. A* .......................... 21,112,230
--------------
TEXTILES, APPAREL & LUXURY GOODS--.4%
422,700 Quiksilver, Inc.* ............................ 5,778,309
--------------
TRANSPORTATION BY AIR--.3%
129,700 UAL Corporation* .............................. 4,670,497
--------------
WIRELESS TELECOMMUNICATION SERVICES--1.3%
304,900 NII Holdings Inc. Cl. B* ...................... 18,263,510
--------------
Total Common Stocks
(Cost $1,268,927,471) ....................... 1,383,436,208
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--3.7%
-----------
U.S. AGENCY OBLIGATIONS
$53,077,000 Federal Home Loan Banks, 4.52%, 5/1/06 53,063,672
(Cost $53,063,672) --------------
Total Investments
(Cost $1,321,991,143)(a) .......................... 100.8% 1,436,499,880
Liabilities in Excess of Other Assets ............... (0.8) (10,830,903)
----- --------------
Net Assets .......................................... 100.0% $1,425,668,977
===== ==============
- ------------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2006, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,328,677,732 amounted to
$107,822,148 which consisted of aggregate gross unrealized appreciation of
$162,779,086 and aggregate gross unrealized depreciation of $54,956,938.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -16-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
SHARES COMMON STOCKS--98.1% VALUE
--------- --------
AEROSPACE & DEFENSE--2.6%
59,600 BE Aerospace, Inc.* ............................. $ 1,551,388
47,600 Hexcel Corporation* ............................. 1,051,484
21,900 United Technologies Corporation ................. 1,375,539
------------
3,978,411
------------
AIR FREIGHT & LOGISTICS--.5%
24,800 UTI Worldwide, Inc. ............................. 773,512
------------
BIOTECHNOLOGY--2.8%
12,700 Amgen Inc. ...................................... 859,790
38,500 DOV Pharmaceutical, Inc.* ....................... 313,390
19,300 Gilead Sciences, Inc. ........................... 1,109,750
30,900 ImClone Systems Incorporated* ................... 1,115,490
24,700 Vertex Pharmaceuticals Incorporated* ............ 898,339
------------
4,296,759
------------
CAPITAL MARKETS--2.4%
15,100 Bear Stearns Companies Inc. ..................... 2,151,901
10,000 Goldman Sachs Group, Inc. ....................... 1,602,900
------------
3,754,801
------------
CASINOS & RESORTS--.2%
14,800 Bally Technologies Inc.* ........................ 264,920
------------
COMMERCIAL SERVICES & SUPPLIES--.8%
33,100 Net 1 UEPS Technologies, Inc.* .................. 1,038,016
44,000 Traffic.com, Inc.* .............................. 275,880
------------
1,313,896
------------
COMMUNICATION EQUIPMENT--3.0%
31,600 Comverse Technology, Inc.* ...................... 715,740
106,800 Motorola, Inc. .................................. 2,280,180
34,350 QUALCOMM Inc. ................................... 1,763,529
------------
4,759,449
------------
COMPUTER SERVICES--.6%
29,500 Akamai Technologies, Inc.* ...................... 993,855
------------
COMPUTER TECHNOLOGY--.5%
19,200 NAVTEQ* ......................................... 797,184
------------
COMPUTERS & PERIPHERALS--3.0%
13,300 Apple Computer, Inc.* ........................... 936,187
64,000 EMC Corporation* ................................ 864,640
95,400 Mobility Electronics, Inc.* ..................... 679,248
61,500 Network Appliance, Inc. * ....................... 2,279,805
------------
4,759,880
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--.5%
12,900 Multi-Fineline Electronix, Inc.* ................ 751,812
------------
THE ALGER INSTITUTIONAL FUNDS -17-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
ENERGY EQUIPMENT & SERVICES--3.8%
43,700 Cooper Cameron Corporation* ..................... $ 2,195,488
33,000 National-Oilwell Varco Inc.* .................... 2,276,010
18,600 Transocean Inc.* ................................ 1,507,902
------------
5,979,400
------------
FINANCIAL INFORMATION SERVICES--1.6%
63,200 Genworth Financial Inc. Cl. A ................... 2,098,240
8,000 GFI Group Inc.* ................................. 455,040
------------
2,553,280
------------
FINANCIAL SERVICES--1.9%
2,200 Chicago Mercantile Exchange Holdings Inc. ....... 1,007,600
107,000 Hong Kong Exchanges & Clearing Limited .......... 769,449
85,700 Hudson City Bancorp Inc. ........................ 1,149,237
------------
2,926,286
------------
FREIGHT & LOGISTICS--1.1%
14,800 FedEx Corp. ..................................... 1,703,924
------------
FOOD & STAPLES RETAILING--2.4%
127,300 CVS Corporation ................................. 3,783,356
------------
HEALTH CARE EQUIPMENT & SUPPLIES--3.1%
33,300 Boston Scientific Corporation* .................. 773,892
35,000 Hologic, Inc.* .................................. 1,668,450
17,000 St. Jude Medical, Inc.* ......................... 671,160
35,300 Ventana Medical Systems, Inc.* .................. 1,719,110
------------
4,832,612
------------
HEALTH CARE PROVIDERS & SERVICES--3.0%
50,460 UnitedHealth Group Incorporated ................. 2,509,880
50,100 WellCare Health Plans Inc.* ..................... 2,098,188
------------
4,608,068
------------
HOTELS, RESTAURANTS & LEISURE--1.8%
59,800 GTECH Holdings Corporation ...................... 2,042,768
17,800 MGM MIRAGE ...................................... 799,220
------------
2,841,988
------------
HOUSEHOLD PRODUCTS--2.5%
67,102 Procter & Gamble Company ........................ 3,906,007
------------
INDUSTRIAL CONGLOMERATES--1.7%
76,900 General Electric Company ........................ 2,659,971
------------
INFORMATION TECHNOLOGY SERVICES--.5%
93,400 Sapient Corporation* ............................ 731,322
------------
INSURANCE--1.0%
49,000 Endurance Specialty Holdings Limited ............ 1,517,040
------------
INTERNET & CATALOG RETAIL--1.1%
49,000 eBay Inc.* ...................................... 1,686,090
------------
THE ALGER INSTITUTIONAL FUNDS -18-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
INTERNET SOFTWARE & SERVICES--6.5%
35,400 DealerTrack Holdings Inc.* ...................... $ 789,420
6,900 Google Inc. Cl. A* .............................. 2,883,786
400 Netease.com Inc. ADR*# .......................... 8,672
75,400 Openwave Systems, Inc.* ......................... 1,403,194
154,100 Yahoo! Inc. * ................................... 5,051,398
------------
10,136,470
------------
IT SERVICES--.8%
38,400 Wright Express Corp.* ........................... 1,182,336
------------
MACHINERY--2.4%
10,200 Caterpillar Inc. ................................ 772,548
15,700 ESCO Technologies Inc.* ......................... 795,990
25,600 Terex Corporation* .............................. 2,215,680
------------
3,784,218
------------
MEDIA--2.7%
22,000 Focus Media Holding Limited ADR*# ............... 1,328,580
45,100 NeuStar, Inc. Cl. A* ............................ 1,583,010
64,700 XM Satellite Radio Holdings Inc. Cl. A* ......... 1,308,234
------------
4,219,824
------------
MEDICAL PRODUCTS--.3%
19,200 Par Pharmaceutical Companys Inc.* ............... 494,400
------------
METALS & MINING--4.0%
1,336,700 Breakwater Resources, Ltd.* ..................... 1,684,242
44,000 Inco Limited .................................... 2,484,680
583,900 Paladin Resources Limited* ...................... 2,072,845
------------
6,241,767
------------
MULTILINE RETAIL--4.3%
25,600 Federated Department Stores, Inc. ............... 1,992,960
83,300 Kohl's Corporation* ............................. 4,651,472
------------
6,644,432
------------
OIL & GAS--4.1%
62,800 Exxon Mobil Corporation ......................... 3,961,424
15,800 Talisman Energy Inc. ............................ 892,384
23,600 Valero Energy Corporation ....................... 1,527,864
------------
6,381,672
------------
OIL & GAS EXPLORATION SERVICES--.3%
30,800 Petrobank Energy and Resources Ltd.* ............ 382,228
------------
PHARMACEUTICAL PREPARATIONS--1.7%
62,300 Adams Respiratory Therapeutics, Inc.* ........... 2,672,047
------------
PHARMACEUTICALS--2.5%
31,500 Novartis AG ADR# ................................ 1,811,565
52,452 Teva Pharmaceutical Industries Ltd. ADR# ........ 2,124,306
------------
3,935,871
------------
THE ALGER INSTITUTIONAL FUNDS -19-
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
ROAD & RAIL--.5%
8,800 Burlington Northern Santa Fe Corporation ........ $ 699,864
------------
SAVINGS & LOANS--.9%
18,770 Golden West Financial Corp. ..................... 1,349,000
------------
SEMICONDUCTOR CAPITAL EQUIPMENT--1.9%
70,900 FormFactor Inc.* ................................ 2,955,821
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--5.7%
502,400 Applied Micro Circuits Corporation* ............. 1,843,808
1,900 ATMI, Inc.* ..................................... 53,960
31,050 Broadcom Corporation Cl. A * .................... 1,276,466
23,400 Marvell Technology Group Ltd.* .................. 1,335,906
83,800 Tessera Technologies Inc.* ...................... 2,687,466
64,600 Trident Microsystems, Inc.* ..................... 1,718,360
------------
8,915,966
------------
SOFTWARE--6.0%
30,000 Electronic Arts Inc.* ........................... 1,704,000
159,000 Microsoft Corporation ........................... 3,839,850
58,100 Oracle Corporation* ............................. 847,679
96,750 VeriFone Holdings Inc.* ......................... 2,995,380
------------
9,386,909
------------
SPECIALTY RETAIL--2.6%
27,500 Abercrombie & Fitch Co. Cl. A ................... 1,670,075
18,900 Lowe's Companies, Inc. ......................... 1,191,645
45,300 PETsMART, Inc. .................................. 1,252,998
------------
4,114,718
------------
TEXTILES, APPAREL & LUXURY GOODS--.5%
55,600 Quiksilver, Inc.* .............................. 760,052
------------
TOBACCO--2.0%
42,300 Altria Group, Inc. .............................. 3,094,668
------------
TRANSPORTATION--2.2%
38,600 Textron Inc. .................................... 3,472,070
------------
WIRELESS TELECOMMUNICATION SERVICES--3.8%
36,900 America Movil S.A. de C.V. Series L ADR# ........ 1,361,979
61,669 American Tower Corporation Cl. A* ............... 2,105,380
41,200 NII Holdings Inc. Cl. B* ........................ 2,467,880
------------
5,935,239
------------
Total Common Stocks
(Cost $138,083,172) ........................... 152,933,395
------------
-20-
THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30 2006
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--3.8% VALUE
---------- --------
U.S. AGENCY OBLIGATIONS
$5,944,000 Federal Home Loan Banks, 4.52%, 5/1/06
(Cost $5,942,507) ............................. $ 5,942,507
------------
Total Investments
(Cost $144,025,679) (a) ............................ 101.9% 158,875,902
Liabilities in Excess of Other Assets ................. (1.9) (3,043,039)
----- -------------
Net Assets ............................................ 100.0% $155,832,863
===== ============
- ------------------
* Non-income producing securities.
# American Depositary Receipts.
a) At April 30, 2006, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $144,081,536, amounted to
$14,794,366, which consisted of aggregate gross unrealized appreciation of
$17,972,872 and aggregate gross unrealized depreciation of $3,178,506.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -21-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
SHARES COMMON STOCKS--62.2% VALUE
--------- --------
AEROSPACE & DEFENSE--1.2%
290 Boeing Company ..................................... $ 24,201
----------
BIOTECHNOLOGY--1.8%
250 Biogen Idec Inc.* .................................. 11,213
220 Genentech, Inc.* ................................... 17,536
170 Vertex Pharmaceuticals Incorporated* ............... 6,183
----------
34,932
----------
CAPITAL MARKETS--1.2%
85 Bear Stearns Companies Inc. ........................ 12,113
75 Goldman Sachs Group, Inc. .......................... 12,022
----------
24,135
----------
CHEMICALS--.5%
135 Air Products and Chemicals, Inc. ................... 9,250
----------
COMMUNICATION EQUIPMENT--3.6%
1,760 Cisco Systems, Inc.* ............................... 36,872
340 Corning Incorporated* .............................. 9,394
410 Motorola, Inc. ..................................... 8,754
290 Nokia Oyj ADR# ..................................... 6,571
120 QUALCOMM Inc. ...................................... 6,161
----------
67,752
----------
COMPUTERS & PERIPHERALS--3.8%
500 Apple Computer, Inc.* .............................. 35,195
570 Network Appliance, Inc. * .......................... 21,130
590 Seagate Technology ................................. 15,670
----------
71,995
----------
DIVERSIFIED FINANCIAL SERVICES--2.4%
255 Citigroup Inc. ..................................... 12,737
180 Principal Financial Group (The) .................... 9,236
310 Prudential Financial, Inc. ......................... 24,220
----------
46,193
----------
DIVERSIFIED TELECOMMUNICATION SERVICES--1.0%
280 ALLTEL Corporation ................................. 18,024
----------
ELECTRIC UTILITIES--.7%
230 Exelon Corporation ................................. 12,420
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.1%
260 Emerson Electric Co. ............................... 22,087
----------
ELECTRONICS--1.3%
1,305 Nintendo Co., Ltd. ADR# 24,283
----------
ENERGY EQUIPMENT & SERVICES--2.6%
360 National-Oilwell Varco Inc.* ....................... 24,829
305 Transocean Inc.* ................................... 24,727
----------
49,556
----------
THE ALGER INSTITUTIONAL FUNDS -22-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
FINANCIAL INFORMATION SERVICES--.3%
180 Genworth Financial Inc. Cl. A ...................... $ 5,976
----------
FINANCIAL SERVICES--1.8%
830 Hong Kong Exchanges & Clearing Limited ............. 5,968
795 Janus Capital Group Inc. ........................... 15,471
685 Schwab (Charles) Corporation (The) ................. 12,262
----------
33,701
----------
FOOD & STAPLES RETAILING--1.9%
1,240 CVS Corporation .................................... 36,853
----------
FOOD PRODUCTS--1.1%
575 Archer-Daniels-Midland Company ..................... 20,896
----------
FREIGHT & LOGISTICS--1.2%
200 FedEx Corp. ........................................ 23,026
----------
HEALTH CARE PROVIDERS & SERVICES--1.0%
340 Medco Health Solutions, Inc.* ...................... 18,098
----------
HOTELS, RESTAURANTS & LEISURE--.3%
155 Starbucks Corporation* ............................. 5,777
----------
HOUSEHOLD PRODUCTS--1.4%
471 Procter & Gamble Company ........................... 27,417
----------
INDUSTRIAL CONGLOMERATES--2.3%
1,255 General Electric Company ........................... 43,410
----------
INSURANCE--1.4%
285 Hartford Financial Services Group, Inc. (The) ...... 26,200
----------
INTERNET & CATALOG RETAIL--3.1%
1,230 eBay Inc.* ......................................... 42,324
550 Netflix Inc.* ...................................... 16,302
----------
58,626
----------
INTERNET SOFTWARE & SERVICES--2.2%
1,275 Yahoo! Inc. * ...................................... 41,795
----------
MACHINERY--1.2%
310 Caterpillar Inc. ................................... 23,479
----------
MEDIA--3.0%
1,090 News Corporation Cl. A ............................. 18,704
1,905 XM Satellite Radio Holdings Inc. Cl. A* ............ 38,519
----------
57,223
----------
METALS & MINING--5.7%
285 Cameco Corporation ................................. 11,585
230 Freeport-McMoRan Copper & Gold, Inc. Cl. B ......... 14,853
750 Inco Limited ....................................... 42,353
175 Peabody Energy Corporation ......................... 11,176
170 Phelps Dodge Corporation ........................... 14,652
470 Vedanta Resources Plc .............................. 13,513
----------
108,132
----------
THE ALGER INSTITUTIONAL FUNDS -23-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
MULTILINE RETAIL--1.5%
200 Costco Wholesale Corporation* ...................... $ 10,886
225 Federated Department Stores, Inc. .................. 17,516
----------
28,402
----------
PHARMACEUTICALS--1.6%
744 Teva Pharmaceutical Industries Ltd. ADR# ........... 30,132
----------
SAVINGS & LOANS--.7%
180 Golden West Financial Corp. ........................ 12,937
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--5.9%
535 Broadcom Corporation Cl. A* ........................ 21,993
1,080 Freescale Semiconductor Inc. Cl. A* ................ 34,150
435 Marvell Technology Group Ltd.* ..................... 24,833
465 Rambus Inc.* ....................................... 18,055
375 Texas Instruments Incorporated ..................... 13,016
----------
112,047
----------
SOFTWARE--.8%
610 Microsoft Corporation .............................. 14,732
----------
SPECIALTY RETAIL--.8%
390 Home Depot, Inc. ................................... 15,573
----------
TOBACCO--1.3%
330 Altria Group, Inc. ................................. 24,143
----------
TRANSPORTATION--.6%
130 Textron Inc. ....................................... 11,694
----------
Total Common Stocks
(Cost $1,144,960) ................................ 1,185,097
----------
PRINCIPAL
AMOUNT CORPORATE BONDS--10.7%
---------
AEROSPACE & DEFENSE--.5%
$ 3,000 Alliant Techsystems Inc., 6.75%, 4/1/16 ............ 2,970
6,192 Systems 2001 Asset Trust Cl. G, 6.66%, 9/15/13(a) .. 6,424
----------
9,394
----------
APPAREL--.3%
5,000 Levi Strauss & Co., 8.875%, 4/1/16(a) .............. 5,038
----------
AUTOMOTIVE EQUIPMENT & SERVICES--.2%
3,000 Tenneco Inc., 8.625%, 11/15/14(a) .................. 3,053
----------
AUTOMOTIVE--.5%
10,000 Honda Auto Receivables Owner Trust, 5.07%, 2/18/10 . 9,973
----------
BUSINESS SERVICES--.3%
5,000 Preferred Term XXI, 5.71%, 3/22/38(a) .............. 4,927
----------
CAPITAL MARKETS--1.0%
10,000 Goldman Sachs Group, Inc., 4.75%, 7/15/13 .......... 9,406
10,000 J.P. Morgan Chase & Co., 4.60%, 1/17/11 ............ 9,614
----------
19,020
----------
THE ALGER INSTITUTIONAL FUNDS -24-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
PRINCIPAL
AMOUNT CORPORATE BONDS (CONTINUED) VALUE
--------- --------
COMMERCIAL BANKS--.6%
$ 4,000 Associates Corp. North America, 6.95%, 11/1/18 ..... $ 4,371
8,000 First Tennessee Bank , 5.65%, 4/1/16 ............... 7,787
----------
12,158
----------
ELECTRIC UTILITIES--.5%
5,000 General Electric Capital Corp., 5.50%, 4/28/11 ..... 5,008
5,000 Sierra Pacific Power Company, 6.00%, 5/15/16(a) .... 4,868
----------
9,876
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS--.3%
5,000 GE Equipment Small Ticket, 4.88%, 10/22/09(a) ...... 4,965
----------
ELECTRONICS--.3%
5,000 Centerpoint Energy Transition Bond Company,
4.97%, 8/1/14 .................................... 4,923
----------
ENERGY--.3%
5,000 Encana Holdings Financial Corp., 5.80%, 5/1/14 ..... 4,980
----------
FINANCE--.4%
2,000 Residential Capital, 6.50%, 4/17/13 ................ 1,996
5,000 SLM Corp., 5.45%, 4/25/11 .......................... 4,971
----------
6,967
----------
FINANCIAL SERVICES--.5%
5,000 HSBC Bank USA, 5.625%, 8/15/35 ..................... 4,510
5,000 Jefferies Group, Inc., 6.25%, 1/15/36 .............. 4,583
----------
9,093
----------
FOOD & STAPLES RETAILING--.3%
5,000 CVS Corporation, 4.875%, 9/15/14 ................... 4,651
----------
HEALTH CARE PROVIDERS & SERVICES--.5%
5,000 Omnicare, Inc., 6.75%, 12/15/13 .................... 4,969
5,000 UnitedHealth Group, 5.375%, 3/15/16 ................ 4,807
----------
9,776
----------
HOTELS, RESTAURANTS & LEISURE--.7%
8,000 Boyd Gaming Corp., 7.125%, 2/1/16 .................. 8,050
5,000 MGM MIRAGE, 6.75%, 4/1/13(a) ....................... 4,950
----------
13,000
----------
INSURANCE--.8%
10,000 Franklin Auto Trust Series 2005-1, 4.91%, 4/20/10 .. 9,939
5,000 The Chubb Corporation, 4.93%, 11/16/07 ............. 4,965
----------
14,904
----------
MACHINERY--.7%
5,000 CNH Equipment Trust, 5.20%, 8/16/10 ................ 4,991
7,000 The Manitowoc Co., Inc., 7.125%, 11/1/13 ........... 7,193
----------
12,184
----------
THE ALGER INSTITUTIONAL FUNDS -25-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
PRINCIPAL
AMOUNT CORPORATE BONDS (CONTINUED) VALUE
--------- --------
MEDIA--.4%
$ 5,000 Clear Channel Communications, Inc. Senior Notes,
5.75%, 1/15/13 ................................... $ 4,755
2,000 Liberty Media Corporation Floating Rate Note,
6.41%, 9/17/06 ................................... 2,010
----------
6,765
----------
METAL FABRICATING--.3%
5,000 Timken Co., 5.75%, 2/15/10 ......................... 4,924
----------
METALS & MINING--.3%
5,000 Alcan Inc., 5.00%, 6/1/15 .......................... 4,671
----------
OIL & GAS--.1%
3,000 Inergy LP, 8.25%, 3/1/26(a) ........................ 3,098
----------
OIL AND GAS EXTRACTION--.3%
5,000 Enterprise Products Partners L.P., 6.875%, 3/1/33 .. 4,998
----------
REAL ESTATE--.2%
5,000 ProLogis, 5.75%, 4/1/16 ............................ 4,878
----------
SOFTWARE--.2%
5,000 Oracle Corporation, 5.25%, 1/15/16(a) .............. 4,735
----------
SPECIALTY RETAIL--.3%
5,000 Home Depot, Inc., 5.20%, 3/1/11 .................... 4,955
----------
WIRELESS TELECOMMUNICATION SERVICES--.2%
5,000 Vodafone Group PLC, 5.50%, 6/15/11 ................. 4,950
----------
Total Corporate Bonds
(Cost $206,209) .................................. 202,856
----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS--22.5%
Federal National Mortgage Association,
20,000 4.25%, 7/15/07 ................................... 19,790
7,000 3.25%, 8/15/08 ................................... 6,721
5,000 4.25%, 5/15/09 ................................... 4,881
5,000 4.01%, 10/21/09 .................................. 4,820
20,000 4.75%, 4/19/10 ................................... 19,586
10,000 5.00%, 4/19/10 ................................... 9,928
15,000 4.125%, 4/15/14 .................................. 13,872
9,646 6.00%, 1/25/15 ................................... 9,728
4,742 5.00%, 4/1/18 .................................... 4,628
5,000 5.00%, 1/25/20 ................................... 4,896
4,953 5.75%, 9/25/20 ................................... 4,908
5,000 6.625%, 11/15/30 ................................. 5,727
10,000 6.00%, 4/25/35 ................................... 9,847
Final Maturity Amortizing Notes
7,364 4.80%, 4/25/10 ................................... 7,228
Federal Home Loan Mortgage Corporation,
15,000 4.30%, 2/3/11 .................................... 14,290
5,000 5.125%, 12/15/13 ................................. 4,856
10,000 4.50%, 1/15/14 ................................... 9,502
9,434 5.50%, 11/15/14 .................................. 9,413
THE ALGER INSTITUTIONAL FUNDS -26-
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
PRINCIPAL
AMOUNT U.S. GOVERNMENT &AGENCY OBLIGATIONS (CONTINUED) VALUE
--------- --------
Federal Home Loan Mortgage Corporation (Continued)
$ 4,787 5.00%, 4/15/16 ................................... $ 4,739
9,709 5.50%, 7/15/16 ................................... 9,662
3,525 5.00%, 8/15/16 ................................... 3,447
10,000 5.75%, 12/15/18 .................................. 9,963
10,000 5.00%, 10/15/28 .................................. 9,734
5,000 5.50%, 10/15/31 .................................. 4,855
5,000 5.00%, 9/15/33 ................................... 4,879
Federal Home Loan Bank,
10,000 5.50%, 5/18/15 ................................... 9,773
U.S. Treasury Bonds,
5,000 7.50%, 11/15/16 .................................. 5,953
52,000 5.375%, 2/15/31 .................................. 52,796
U.S. Treasury Notes,
10,000 3.75%, 3/31/07 ................................... 9,896
73,000 3.25%, 8/15/07 ................................... 71,523
20,000 3.00%, 11/15/07 .................................. 19,448
5,000 3.125%, 9/15/08 .................................. 4,807
20,000 3.50%, 11/15/09 .................................. 19,106
10,000 4.25%, 8/15/13 ................................... 9,542
10,000 4.75%, 5/15/14 ................................... 9,816
5,000 4.50%, 2/15/16 ................................... 4,784
----------
Total U.S. Government & Agency Obligations
(Cost $440,107) .................................. 429,344
----------
Total Investments
(Cost $1,791,276)(b) ................................... 95.4% 1,817,297
Other Assets in Excess of Liabilities .................... 4.6 87,561
----- ----------
Net Assets ............................................... 100.0% $1,904,858
===== ==========
- ------------------
* Non-income producing security.
# American Depositary Receipts.
(a) Pursuant to Securites and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified instituitonal buyers.
These securities are deemed to be liquid and represent 2.2% of net assets of
the Fund.
(b) At April 30, 2006, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $1,795,113 amounted to $22,184 which
consisted of aggregate gross unrealized appreciation of $74,956 and
aggregate gross unrealized depreciation of $52,772.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -27-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
SHARES COMMON STOCKS--95.7% VALUE
--------- --------
AIR FREIGHT & LOGISTICS--.5%
415 UTI Worldwide, Inc. ............................... $ 12,944
----------
AEROSPACE & DEFENSE--.9%
895 BE Aerospace, Inc.* ............................... 23,297
----------
BIOTECHNOLOGY--2.4%
165 Amgen Inc. ........................................ 11,171
330 Gilead Sciences, Inc. ............................. 18,975
470 ImClone Systems Incorporated* ..................... 16,967
465 Vertex Pharmaceuticals Incorporated* .............. 16,912
----------
64,025
----------
CAPITAL MARKETS--2.1%
230 Bear Stearns Companies Inc. ....................... 32,777
145 Goldman Sachs Group, Inc. ......................... 23,242
----------
56,019
----------
COMMERCIAL SERVICES & SUPPLIES--.8%
535 Net 1 UEPS Technologies, Inc.* .................... 16,778
685 Traffic.com, Inc.* ................................ 4,295
----------
21,073
----------
COMMUNICATION EQUIPMENT--2.8%
560 Comverse Technology, Inc.* ........................ 12,684
1,655 Motorola, Inc. .................................... 35,334
515 QUALCOMM Inc. ..................................... 26,440
----------
74,458
----------
COMMUNICATION TECHNOLOGY--.8%
800 Nextel Partners, Inc. Cl. A* ...................... 22,672
----------
COMPUTERS & PERIPHERALS--3.1%
215 Apple Computer, Inc.* ............................. 15,134
1,225 EMC Corporation* .................................. 16,550
2,045 Mobility Electronics, Inc.* ....................... 14,560
970 Network Appliance, Inc. * ......................... 35,958
----------
82,202
----------
COMPUTER SERVICES--.7%
544 Akamai Technologies, Inc.* ........................ 18,327
----------
COMPUTER TECHNOLOGY--.5%
300 NAVTEQ* ........................................... 12,456
----------
DIVERSIFIED FINANCIAL SERVICES--1.0%
335 Prudential Financial, Inc. ........................ 26,174
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS--.6%
260 Multi--Fineline Electronix, Inc.* ................. 15,153
----------
ELECTRONICS: SEMI-CONDUCTORS/COMPONENTS--2.1%
4,150 PLX Technology, Inc. * ............................ 55,071
----------
THE ALGER INSTITUTIONAL FUNDS -28-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
ENERGY EQUIPMENT & SERVICES--3.7%
775 Cooper Cameron Corporation* ....................... $ 38,936
495 National-Oilwell Varco Inc.* ...................... 34,140
195 Suntech Power Holdings Co., Ltd. ADR*# ............ 6,687
250 Transocean Inc.* .................................. 20,268
----------
100,031
----------
FINANCIAL INFORMATION SERVICES--2.1%
1,090 Genworth Financial Inc. Cl. A ..................... 36,188
345 GFI Group Inc.* ................................... 19,624
----------
55,812
----------
FINANCIAL SERVICES--2.0%
35 Chicago Mercantile Exchange Holdings Inc. ......... 16,030
1,710 Hong Kong Exchanges & Clearing Limited ............ 12,296
1,255 Hudson City Bancorp Inc. .......................... 16,830
200 International Securities Exchange, Inc. Cl. A .... 8,790
----------
53,946
----------
FOOD & STAPLES RETAILING--3.0%
2,685 CVS Corporation ................................... 79,798
----------
FREIGHT & LOGISTICS--.6%
150 FedEx Corp. ....................................... 17,270
----------
HEALTH CARE EQUIPMENT & SUPPLIES--3.1%
610 Boston Scientific Corporation* .................... 14,176
510 Hologic, Inc.* .................................... 24,312
285 St. Jude Medical, Inc.* ........................... 11,252
665 Ventana Medical Systems, Inc.* .................... 32,386
----------
82,126
----------
HEALTH CARE PROVIDERS & SERVICES--3.3%
1,130 UnitedHealth Group Incorporated ................... 56,206
755 WellCare Health Plans Inc.* ....................... 31,619
----------
87,825
----------
HOUSEHOLD PRODUCTS--2.7%
1,244 Procter & Gamble Company .......................... 72,413
----------
INFORMATION TECHNOLOGY SERVICES--.5%
1,615 Sapient Corporation* .............................. 12,645
----------
INSURANCE--1.4%
250 American International Group, Inc. ................ 16,313
710 Endurance Specialty Holdings Limited .............. 21,982
----------
38,295
----------
INTERNET & CATALOG RETAIL--.9%
710 eBay Inc.* ........................................ 24,431
----------
THE ALGER INSTITUTIONAL FUNDS -29-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
INTERNET SOFTWARE & SERVICES--8.0%
515 DealerTrack Holdings Inc.* ........................ $ 11,485
120 Google Inc. Cl. A* ................................ 50,153
1,490 Jupitermedia Corporation* ......................... 26,254
150 Netease.com Inc. ADR*# ............................ 3,252
1,295 Openwave Systems, Inc.* ........................... 24,100
3,035 Yahoo! Inc. * ..................................... 99,487
----------
214,731
----------
IT SERVICES--1.9%
1,615 Wright Express Corp.* ............................. 49,726
----------
MACHINERY--2.3%
170 Caterpillar Inc. .................................. 12,876
305 ESCO Technologies Inc.* ........................... 15,464
385 Terex Corporation* ................................ 33,322
----------
61,662
----------
MEDIA--2.5%
350 Focus Media Holding Limited ADR*# ................. 21,137
755 NeuStar, Inc. Cl. A* .............................. 26,501
935 XM Satellite Radio Holdings Inc. Cl. A* ........... 18,906
----------
66,544
----------
MEDICAL PRODUCTS--.3%
365 Par Pharmaceutical Company's Inc.* ................ 9,399
----------
METALS & MINING--3.9%
23,115 Breakwater Resources, Ltd.* ....................... 29,125
775 Inco Limited ...................................... 43,764
8,600 Paladin Resources Limited* ........................ 30,530
----------
103,419
----------
MULTILINE RETAIL--4.5%
455 Federated Department Stores, Inc. ................. 35,422
1,545 Kohl's Corporation* ............................... 86,273
----------
121,695
----------
OIL & GAS--4.3%
1,110 Exxon Mobil Corporation ........................... 70,019
300 Talisman Energy Inc. .............................. 16,944
445 Valero Energy Corporation ......................... 28,809
----------
115,772
----------
OIL & GAS EXPLORATION SERVICES--.8%
1,735 Petrobank Energy and Resources Ltd.* .............. 21,531
----------
PHARMACEUTICAL PREPARATIONS--2.1%
1,280 Adams Respiratory Therapeutics, Inc.* ............. 54,899
----------
PHARMACEUTICALS--2.2%
485 Novartis AG ADR# .................................. 27,892
790 Teva Pharmaceutical Industries Ltd. ADR# .......... 31,995
----------
59,887
----------
THE ALGER INSTITUTIONAL FUNDS -30-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
ROAD & RAIL--.3%
115 Burlington Northern Santa Fe Corporation .......... $ 9,146
----------
SAVINGS & LOANS--1.0%
360 Golden West Financial Corp. ....................... 25,873
----------
SEMICONDUCTOR CAPITAL EQUIPMENT--2.0%
1,285 FormFactor Inc.* .................................. 53,572
----------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--6.0%
8,420 Applied Micro Circuits Corporation* ............... 30,901
60 ATMI, Inc.* ....................................... 1,704
570 Broadcom Corporation Cl. A * ...................... 23,433
375 Marvell Technology Group Ltd.* .................... 21,409
1,255 Tessera Technologies Inc.* ........................ 40,248
1,185 Trident Microsystems, Inc.* ....................... 31,521
1,100 Ultra Clean Holdings, Inc.* ....................... 9,856
----------
159,072
----------
SOFTWARE--5.4%
455 Electronic Arts Inc.* ............................. 25,844
2,360 Microsoft Corporation ............................. 56,994
885 Oracle Corporation* ............................... 12,912
1,590 VeriFone Holdings Inc.* ........................... 49,220
----------
144,970
----------
SPECIALTY RETAIL--2.3%
430 Abercrombie & Fitch Co. Cl. A ..................... 26,114
300 Lowe's Companies, Inc. ............................ 18,915
645 PETsMART, Inc. .................................... 17,841
----------
62,870
----------
TEXTILES, APPAREL & LUXURY GOODS--.4%
825 Quiksilver, Inc.* ................................ 11,278
----------
WIRELESS TELECOMMUNICATION SERVICES--3.9%
895 America Movil S.A. de C.V. Series L ADR# .......... 33,034
923 American Tower Corporation Cl. A* ................. 31,511
650 NII Holdings Inc. Cl. B* .......................... 38,935
----------
103,480
----------
Total Common Stocks
(Cost $2,331,920) ............................... 2,557,989
----------
THE ALGER INSTITUTIONAL FUNDS -31-
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
PRINCIPAL
AMOUNT COMMON STOCKS (CONTINUED) VALUE
--------- --------
SHORT-TERM INVESTMENTS--13.5%
U. S. AGENCY OBLIGATIONS
$360,000 Federal Home Loan Banks, 4.52% 5/1/06 $ 359,910
(Cost $359,910) ----------
Total Investments
(Cost $2,691,830) (a) ................................ 109.2% 2,917,899
Liabilities in Excess of Other Assets ................... (9.2) (245,469)
----- ----------
Net Assets .............................................. 100.0% $2,672,430
===== ==========
- ------------------
* Non-income producing securities.
# American Depositary Receipts.
a) At April 30, 2006, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $2,692,313, amounted to $225,586,
which consisted of aggregate gross unrealized appreciation of $269,833 and
aggregate gross unrealized depreciation of $44,247.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -32-
ALGER TECHNOLOGY INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
SHARES COMMON STOCKS--98.1% VALUE
--------- --------
COMMERCIAL SERVICES & SUPPLIES--2.6%
500 Traffic.com, Inc.* ................................ $ 3,135
2,750 West Corporation* ................................. 127,380
----------
130,515
----------
COMMUNICATION EQUIPMENT--6.7%
3,900 Cisco Systems, Inc.* .............................. 81,705
4,100 Corning Incorporated* ............................. 113,283
3,405 Motorola, Inc. .................................... 72,697
840 Research In Motion Limited* ....................... 64,369
----------
332,054
----------
COMPUTER SERVICES--1.0%
8,495 Embarcadero Technologies, Inc.* ................... 51,735
----------
COMPUTER TECHNOLOGY--2.1%
9,585 Secure Computing Corporation* ..................... 103,039
----------
COMPUTERS & PERIPHERALS--12.5%
3,000 Apple Computer, Inc.* ............................. 211,170
19,500 Mobility Electronics, Inc.* ....................... 138,840
4,550 Network Appliance, Inc. * ......................... 168,669
5,080 Western Digital Corporation* ...................... 106,883
----------
625,562
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS--7.6%
18,500 International DisplayWorks Inc.* .................. 103,970
4,750 Multi-Fineline Electronix, Inc.* .................. 276,830
----------
380,800
----------
INFORMATION TECHNOLOGY SERVICES--7.9%
3,380 Accenture Ltd. Cl. A* ............................. 98,257
850 Cognizant Technology Solutions Corporation Cl. A* . 54,069
6,630 Kanbay International Inc.* ........................ 102,764
17,650 Sapient Corporation* .............................. 138,200
----------
393,290
----------
INTERNET SOFTWARE & SERVICES--9.4
9,350 DealerTrack Holdings Inc.* ........................ 208,505
2,240 WebEx Communications, Inc.* ....................... 79,184
5,495 Yahoo! Inc. * ..................................... 180,126
----------
467,815
----------
INTERNET & CATALOG RETAIL--2.3%
3,300 eBay Inc.* ........................................ 113,553
----------
IT SERVICES--2.1%
3,240 SRA International, Inc.* .......................... 103,745
----------
MEDIA--1.6%
2,230 NeuStar, Inc. Cl. A* .............................. 78,273
----------
SEMICONDUCTORS--.3%
1,595 Himax Technologies, Inc. ADR*# .................... 14,196
----------
THE ALGER INSTITUTIONAL FUNDS -33-
ALGER TECHNOLOGY INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- --------
SEMICONDUCTOR CAPITAL EQUIPMENT--5.0%
1,890 FormFactor Inc.* $ 78,794
5,050 SiRF Technology Holdings, Inc.* 172,458
----------
251,252
----------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT--9.6%
2,845 Freescale Semiconductor Inc. Cl. A* 89,959
2,385 Ikanos Communications* 44,170
1,550 Marvell Technology Group Ltd.* 88,490
3,600 Microsemi Corporation* 98,352
3,105 Tessera Technologies Inc.* 99,577
1,600 Texas Instruments Incorporated 55,536
----------
476,084
----------
SOFTWARE--27.4%
3,710 BEA Systems, Inc.* 49,158
5,035 Check Point Software Technologies Ltd.* 97,426
1,450 Electronic Arts Inc.* 82,360
10,550 Microsoft Corporation 254,782
17,750 Oracle Corporation* 258,973
6,205 Quest Software, Inc. * 106,788
11,600 Symantec Corporation* 190,008
13,400 Tibco Software Inc.* 115,507
6,750 VeriFone Holdings Inc.* 208,980
----------
1,363,982
----------
Total Common Stocks
(Cost $4,899,683) 4,885,895
----------
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--8.4%
---------
U.S. AGENCY OBLIGATIONS
$417,000 Federal Home Loan Banks, 4.52%, 5/1/06
(Cost $416,895) ................................. 416,895
----------
Total Investments
(Cost $5,316,578)(a) .................................. 106.5% 5,302,790
Liabilities In Excess of Other Assets ................... (6.5) (322,383)
----- ----------
Net Assets .............................................. 100.0% $4,980,407
===== ==========
- ------------------
* Non-income producing security.
# American Depositary Receipts.
(a) At April 30, 2006, the net unrealized depreciation on investments, based on
cost for federal income tax purposes of $5,316,578 amounted to $13,788 which
consisted of aggregate gross unrealized appreciation of $193,406 and
aggregate gross unrealized depreciation of $207,194.
See Notes to Financial Statements.
THE ALGER FUNDS -34-
ALGER INSTITUTIONAL CORE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
April 30, 2006
PRINCIPAL
AMOUNT CORPORATE BONDS--25.8% VALUE
--------- --------
APPAREL--.3%
$ 15,000 Levi Strauss & Co., 8.88%, 4/1/16(a) .............. $ 15,113
----------
AUTOMOTIVE EQUIPMENT & SERVICES--.7%
35,000 Tenneco Inc., 8.625%, 11/15/14(a) ................. 35,613
----------
AUTOMOTIVE--2.0%
100,000 Honda Auto Receivables Owner Trust, 5.07%,
2/18/10 ......................................... 99,726
----------
COMMERCIAL BANKS--1.5%
75,000 First Tennessee Bank, 5.65%, 4/1/16 ............... 73,001
----------
ELECTRIC UTILITIES--3.9%
85,000 Appalachian Power Co., 5.55%, 4/1/11 .............. 84,502
75,000 General Electric Capital Corp., 5.50%, 4/28/11 .... 75,113
40,000 Sierra Pacific Power Company, 6.00%, 5/15/16(a) ... 38,944
----------
198,559
----------
ENERGY--1.5%
75,000 Encana Holdings Financial Corp., 5.80%, 5/1/14 .... 74,697
----------
FINANCE--2.0%
25,000 Residential Capital, 6.50%, 4/17/13 ............... 24,952
75,000 SLM Corp., 5.45%, 4/25/11 ......................... 74,563
----------
99,515
----------
HEALTH CARE PROVIDERS & SERVICES--1.5%
75,000 UnitedHealth Group, 5.375%, 3/15/16 ............... 72,105
----------
HOTELS, RESTAURANTS & LEISURE--1.5%
60,000 Boyd Gaming Corp., 7.125%, 2/1/16 ................. 60,375
15,000 MGM MIRAGE, 6.75%, 4/1/13(a) ...................... 14,850
----------
75,225
----------
INDUSTRIAL CONGLOMERATES--1.5%
75,000 Textron Financial Corporation, 5.875%, 6/1/07 ..... 75,453
----------
MACHINERY--3.5%
100,000 CNH Equipment Trust, 5.20%, 8/16/10 ............... 99,811
73,000 The Manitowoc Co., Inc., 7.125%, 11/1/13 .......... 75,008
----------
174,819
----------
MEDIA--1.4%
75,000 Clear Channel Communications, Inc. Senior Notes,
5.75%, 1/15/13 .................................. 71,335
----------
REAL ESTATE--1.5%
75,000 ProLogis, 5.75%, 4/1/16 ........................... 73,164
----------
SPECIALTY RETAIL--1.5%
75,000 Home Depot, Inc., 5.20%, 3/1/11 ................... 74,321
----------
WIRELESS TELECOMMUNICATION SERVICES--1.5%
75,000 Vodafone Group PLC, 5.50%, 6/15/11 ................ 74,248
----------
Total Corporate Bonds
(Cost $1,295,565) ............................... 1,286,894
----------
THE ALGER FUNDS -35-
ALGER INSTITUTIONAL CORE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
April 30, 2006
PRINCIPAL
AMOUNT VALUE
--------- --------
U.S. GOVERNMENT & AGENCY OBLIGATIONS--71.0%
Federal Home Loan Bank,
$200,000 5.10%, 3/6/08 ................................... $ 199,549
Federal Home Loan Mortgage Corporation,
200,000 5.10%, 3/14/08 .................................. 199,522
175,000 5.25%, 3/16/09 .................................. 174,571
100,000 5.125%, 12/15/13 ................................ 97,116
100,000 5.75%, 12/15/18 ................................. 99,625
75,000 5.50%, 10/15/31 ................................. 72,826
Federal National Mortgage Association,
175,000 5.17%, 2/23/09 .................................. 174,341
100,000 4.75%, 4/19/10 .................................. 97,930
150,000 4.50%, 2/15/11 .................................. 145,446
99,065 5.75%, 9/25/20 .................................. 98,151
120,000 6.00%, 4/25/35 .................................. 118,169
U.S. Treasury Notes,
225,000 4.375%, 5/15/07 ................................. 223,857
275,000 4.375%, 1/31/08 ................................. 272,712
380,000 4.75%, 11/15/08 ................................. 378,961
480,000 4.50%, 2/15/09 .................................. 475,425
230,000 3.50%, 11/15/09 ................................. 219,722
150,000 4.50%, 2/28/11 .................................. 147,305
150,000 4.875%, 2/15/12 ................................. 149,496
100,000 4.25%, 11/15/13 ................................. 95,219
105,000 4.25%, 8/15/15 .................................. 98,762
----------
Total U.S. Government & Agency Obligations
(Cost $3,562,188 ) .............................. 3,538,705
----------
SHORT-TERM INVESTMENTS--3.2%
U.S. AGENCY OBLIGATIONS
160,000 Federal Home Loan Banks, 4.52%, 5/1/06
(Cost $159,960) ................................. 159,960
----------
Total Investments
(Cost $5,017,713)(b) .................................. 100.0% 4,985,559
Liabilities in Excess of Other Assets ................... 0.0 (1,945)
----- ----------
Net Assets .............................................. 100.0% $4,983,614
===== ==========
- ------------------
* Non-income producing security.
(a) Pursuant to Securites and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified instituitonal buyers.
These securities are deemed to be liquid and represent 2.1% of net assets of
the Fund.
(b) At April 30, 2006, the net unrealized depreciation on investments, based on
cost for federal income tax purposes of $5,017,713 amounted to $32,154 which
consisted of aggregate gross unrealized appreciation of $688 and aggregate
gross unrealized depreciation of $32,842.
See Notes to Financial Statements.
THE ALGER INSTITUTIONAL FUNDS -36-
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
April 30, 2006
LargeCap SmallCap MidCap
Growth Growth Growth
Fund Fund Fund
--------- --------- -----------
ASSETS:
Investments in securities, at value
(identified cost*)--see accompanying
schedules of investments .............. $ 100,563,818 $ 134,442,828 $ 1,436,499,880
Cash .................................... 21,748 28,303 775,662
Receivable for investment
securities sold ....................... 6,355,081 2,917,420 22,980,453
Receivable for shares of beneficial
interest sold ......................... 15,133,770 1,226,005 9,015,962
Dividends and interest receivable ....... 39,765 7,491 188,057
Receivable from Investment Manager
--Note 3(a) ........................... -- -- --
Prepaid expenses ........................ 30,850 32,326 48,456
------------- ------------- ---------------
Total Assets .......................... 122,145,032 138,654,373 1,469,508,470
------------- ------------- ---------------
LIABILITIES:
Payable for investment securities
purchased ............................. 7,698,317 8,277,284 39,217,275
Payable for shares of beneficial interest
redeemed .............................. 323,193 114,111 3,291,192
Accrued investment management
fees .................................. 57,470 79,624 880,046
Accrued transfer agent fees ............. 13,847 14,239 17,207
Accrued expenses ........................ 49,968 45,766 433,773
------------- ------------- ---------------
Total Liabilities ..................... 8,142,795 8,531,024 43,839,493
------------- ------------- ---------------
NET ASSETS .............................. $ 114,002,237 $ 130,123,349 $ 1,425,668,977
============= ============= ===============
Net Assets Consist of:
Paid-in capital ....................... $ 126,402,292 $ 167,649,282 $ 1,188,593,324
Accumulated net investment
income (loss) ....................... (85,883) (354,727) (2,956,327)
Undistributed net realized gain
(accumulated loss) .................. (15,739,684) 125,523,243 (84,228,424)
Net unrealized appreciation
(depreciation) ...................... 3,425,512 21,339,561 114,508,737
------------- ------------- ---------------
NET ASSETS .............................. $ 114,002,237 $ 130,123,349 $ 1,425,668,977
============= ============= ===============
Shares of beneficial interest
outstanding--Note 6
Class I ............................... 8,107,717 5,226,425 76,437,894
============= ============= ===============
Class R ............................... 366,169 197,903 2,281,713
============= ============= ===============
Net Asset Value Per Share
Class I ............................... $ 13.46 $ 24.00 $ 18.12
============= ============= ===============
Class R ............................... $ 13.28 $ 23.67 $ 17.81
============= ============= ===============
*Identified cost ........................ $ 97,138,306 $ 113,103,267 $ 1,321,991,143
============= ============= ===============
See Notes to Financial Statements.
-37-
Socially
Capital Responsible Core
Appreciation Balanced Growth Technology Fixed-Income
Fund Fund Fund Fund Fund
------------- ---------- ----------- ----------- ------------
ASSETS:
Investments in securities, at value
(identified cost*)--see accompanying
schedules of investments .............. $ 158,875,902 $1,817,297 $ 2,917,899 $ 5,302,790 $ 4,985,559
Cash .................................... 24,495 59,110 16,805 802 885
Receivable for investment
securities sold ....................... 5,371,651 92,298 94,465 -- --
Receivable for shares of beneficial
interest sold ......................... 696,022 1,823 9,655 -- --
Dividends and interest receivable ....... 39,085 6,375 607 48 49,524
Receivable from Investment Manager
--Note 3(a) ........................... -- 18,379 10,815 7,822 8,497
Prepaid expenses ........................ 31,159 29,397 29,718 29,484 29,485
------------- ---------- ----------- ----------- -----------
Total Assets .......................... 165,038,314 2,024,679 3,079,964 5,340,946 5,073,950
------------- ---------- ----------- ----------- -----------
LIABILITIES:
Payable for investment securities
purchased ............................. 8,880,716 99,461 375,625 343,344 75,008
Payable for shares of beneficial interest
redeemed .............................. 148,218 -- 8,201 -- --
Accrued investment management
fees .................................. 101,649 1,093 1,488 3,287 1,432
Accrued transfer agent fees ............. 13,814 13,459 13,482 11,358 11,358
Accrued expenses ........................ 61,054 5,808 8,738 2,550 2,538
------------- ---------- ----------- ----------- -----------
Total Liabilities ..................... 9,205,451 119,821 407,534 360,539 90,336
------------- ---------- ----------- ----------- -----------
NET ASSETS .............................. $ 155,832,863 $1,904,858 $ 2,672,430 $ 4,980,407 $ 4,983,614
============= ========== =========== =========== ===========
Net Assets Consist of:
Paid-in capital ....................... $ 225,375,953 $1,761,662 $ 2,190,599 $ 5,000,000 $ 5,033,377
Accumulated net investment
income (loss) ....................... (164,889) 2,850 (5,255) (6,583) 618
Undistributed net realized gain
(accumulated loss) .................. 114,325 261,017 778 (18,227)
Net unrealized appreciation
(depreciation) ...................... 14,850,223 26,021 226,069 (13,788) (32,154)
------------- ---------- ----------- ----------- -----------
NET ASSETS .............................. $ 155,832,863 $1,904,858 $ 2,672,430 $ 4,980,407 $ 4,983,614
============= ========== =========== =========== ===========
Shares of beneficial interest
outstanding--Note 6
Class I ............................... 10,102,444 213,374 354,698 490,000 493,305
============= ========== =========== =========== ===========
Class R ............................... 241,427 34,476 68,043 10,000 10,059
============= ========== =========== =========== ===========
Net Asset Value Per Share
Class I ............................... $ 15.07 $ 7.69 $ 6.34 $ 9.96 $ 9.90
============= ========== =========== =========== ===========
Class R ............................... $ 14.83 $ 7.64 $ 6.24 $ 9.95 $ 9.90
============= ========== =========== =========== ===========
*Identified cost ........................ $ 144,025,679 $1,791,276 $ 2,691,830 $ 5,316,578 $ 5,017,713
============= ========== =========== =========== ===========
THE ALGER INSTITUTIONAL FUNDS -38-
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended April 30, 2005
LargeCap SmallCap MidCap
Growth Growth Growth
Fund Fund Fund
------------- ------------- -------------
INVESTMENT INCOME
Income:
Dividends (net of foreign withholding
taxes*) ................................. $ 420,351 $ 130,472 $ 2,759,498
Interest .................................. 60,680 144,437 1,432,549
------------- ------------- -------------
Total income ............................. 481,031 274,909 4,192,047
------------- ------------- -------------
Expenses:
Management fees--Note 3(a) ................ 351,946 407,475 5,105,302
Shareholder servicing fees ................ 117,315 119,846 1,595,407
Custodian fees ............................ 14,106 18,036 64,970
Transfer agent fees--Note 3(d) ............ 43,393 46,025 62,085
Professional fees ......................... 15,272 15,001 137,330
Printing fees ............................. 3,580 3,759 48,435
Distribution fees--Note 3(b) .............. 10,743 8,007 76,154
Trustees' fees ............................ 855 852 11,581
Interest expense .......................... 156 1,583 --
Registration fees ......................... 5,142 5,142 5,384
Miscellaneous ............................. 4,220 3,910 41,726
------------- ------------- -------------
566,728 629,636 7,148,374
Less expense reimbursement--Note 3(a) ....... -- -- --
------------- ------------- -------------
Total Expenses ............................ 566,728 629,636 7,148,374
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ................ (85,697) (354,727) (2,956,327)
------------- ------------- -------------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss)on investments
and foreign currency transactions ....... 9,502,416 4,119,461 132,214,749
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ................... (2,649,086) 13,169,465 42,979,725
------------- ------------- -------------
Net realized and unrealized gain (loss)
on investments and foreign currency ..... 6,853,330 17,288,926 175,194,474
------------- ------------- -------------
NET INCREASE (DECREASE)IN NET ASSETS
RESULTING FROM OPERATIONS ............... $ 6,767,633 $ 16,934,199 $ 172,238,147
============= ============= =============
*Foreign withholding taxes .................. $ 393 $ -- $ 22,970
============= ============= =============
- ------------------
** Commenced operations March 1, 2006
See Notes to Financial Statements.
-39-
Socially
Capital Responsible Core
Appreciation Balanced Growth Technology Fixed-Income
Fund Fund Fund Fund** Fund**
------------- ------------- ------------- ------------- -------------
INVESTMENT INCOME
Income:
Dividends (net of foreign withholding
taxes*) ................................. $ 659,717 $ 5,338 $ 7,429 $ 48 $ --
Interest .................................. 110,831 13,371 1,358 3,556 38,913
------------- ------------- ------------- ------------- -------------
Total income ............................. 770,548 18,709 8,787 3,604 38,913
------------- ------------- ------------- ------------- -------------
Expenses:
Management fees--Note 3(a) ................ 635,894 6,840 7,906 6,872 3,023
Shareholder servicing fees ................ 187,028 2,280 2,635 2,021 2,015
Custodian fees ............................ 15,663 10,108 9,498 1,087 1,087
Transfer agent fees--Note 3(d) ............ 43,658 41,543 41,740 11,358 11,358
Professional fees ......................... 20,331 2,560 3,856 179 179
Printing fees ............................. 8,465 306 306 74 74
Distribution fees--Note 3(b) .............. 5,105 588 866 81 81
Trustees' fees ............................ 1,361 17 19 14 14
Interest expense .......................... 3,232 -- -- -- --
Registration fees ......................... 5,142 5,065 5,083 5,065 5,065
Miscellaneous ............................. 9,217 788 799 305 305
------------- ------------- ------------- ------------- -------------
935,096 70,095 72,708 27,056 23,201
Less expense reimbursement--Note 3(a) ....... -- (58,907) (58,666) (16,869) (18,283)
------------- ------------- ------------- ------------- -------------
Total Expenses ............................ 935,096 11,188 14,042 10,187 4,918
------------- ------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ................ (164,548) 7,521 (5,255) (6,583) 33,995
------------- ------------- ------------- ------------- -------------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss)on investments
and foreign currency transactions ....... 18,378,545 116,032 261,525 778 (18,227)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ................... 428,580 (41,243) 18,708 (13,788) (32,154)
------------- ------------- ------------- ------------- -------------
Net realized and unrealized gain (loss)
on investments and foreign currency ..... 18,807,125 74,789 280,233 (13,010) (50,381)
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE)IN NET ASSETS
RESULTING FROM OPERATIONS ............... $ 18,642,577 $ 82,310 $ 274,978 $ (19,593) $ (16,386)
============= ============= ============= ============= =============
*Foreign withholding taxes .................. $ 885 $ 5 $ 21 $ -- $ --
============= ============= ============= ============= =============
THE ALGER INSTITUTIONAL FUNDS -40-
STATEMENTS OF CHANGES IN NET ASSETS
LargeCap
Growth
Fund
----------------------------------
For the
Six Months For the
Ended Year Ended
April 30, 2006 October 31,
(Unaudited) 2005
--------------- ---------------
Net investment income (loss) .................... $ (85,697) $ 274,397
Net realized gain on investments and foreign
currency transactions ......................... 9,502,416 13,970,405
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ......................... (2,649,086) (267,665)
--------------- ---------------
Net increase in net assets
resulting from operations ..................... 6,767,633 13,977,137
--------------- ---------------
Dividends and distributions to shareholders from:
Net investment income
Class I ....................................... (274,583) --
Class R ....................................... -- --
Net realized gains
Class I ....................................... -- --
Class R ....................................... -- --
--------------- ---------------
Total dividends and distributions to shareholders (274,583) --
--------------- ---------------
Increase (decrease) from shares of beneficial
interest transactions:
Class I ....................................... 16,200,691 (14,888,992)
Class R ....................................... 757,546 871,501
--------------- ---------------
Net increase (decrease) from shares of beneficial
interest transactions--Note 6 ................. 16,958,237 (14,017,491)
--------------- ---------------
Total increase (decrease) ................... 23,451,287 (40,354)
Net Assets:
Beginning of period ........................... 90,550,950 90,591,304
--------------- ---------------
End of period ................................. $ 114,002,237 $ 90,550,950
=============== ===============
Undistributed net investment income
(accumulated loss) ............................ $ (85,883) $ 274,397
=============== ===============
See Notes to Financial Statements.
-41-
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, 2006 October 31, April 30, 2006 October 31,
(Unaudited) 2005 (Unaudited) 2005
--------------- --------------- --------------- ---------------
Net investment income (loss) .................... $ (354,727) $ (520,700) $ (2,956,327) $ (6,585,119)
Net realized gain on investments and foreign
currency transactions ......................... 4,119,461 12,443,285 132,214,749 128,514,342
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ......................... 13,169,465 3,593,847 42,979,725 18,827,371
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations ..................... 16,934,199 15,516,432 172,238,147 140,756,594
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders from:
Net investment income
Class I ....................................... -- -- -- --
Class R ....................................... -- -- -- --
Net realized gains
Class I ....................................... -- -- (120,622,354) (14,080,915)
Class R ....................................... -- -- (2,632,250) (225,450)
--------------- --------------- --------------- ---------------
Total dividends and distributions to shareholders -- -- (123,254,604) (14,306,365)
--------------- --------------- --------------- ---------------
Increase (decrease) from shares of beneficial
interest transactions:
Class I ....................................... 37,850,236 (13,839,314) 243,685,215 129,721,799
Class R ....................................... 1,627,588 1,962,273 17,386,821 8,168,446
--------------- --------------- --------------- ---------------
Net increase (decrease) from shares of beneficial
interest transactions--Note 6 ................. 39,477,824 (11,877,041) 261,072,036 137,890,245
--------------- --------------- --------------- ---------------
Total increase (decrease) ................... 56,412,023 3,639,391 310,055,579 264,340,474
Net Assets:
Beginning of period ........................... 73,711,326 70,071,935 1,115,613,398 851,272,924
--------------- --------------- --------------- ---------------
End of period ................................. $ 130,123,349 $ 73,711,326 $ 1,425,668,977 $ 1,115,613,398
=============== =============== =============== ===============
Undistributed net investment income
(accumulated loss) ............................ $ (354,727) $ -- $ (2,956,327) $ --
=============== =============== =============== ===============
THE ALGER INSTITUTIONAL FUNDS -42-
STATEMENTS OF CHANGES IN NET ASSETS
Capital
Appreciation
Fund
------------------------------
For the
Six Months For the
Ended Year Ended
April 30, 2006 October 31,
(Unaudited) 2005
-------------- -------------
Net investment income (loss) ..................... $ (164,548) $ 46,145
Net realized gain (loss)on investments and foreign
currency transactions .......................... 18,378,545 20,951,677
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations .......................... 428,580 2,819,558
------------- -------------
Net increase (decrease)in net assets
resulting from operations ...................... 18,642,577 23,817,380
------------- -------------
Dividends and distributions to shareholders from:
Net investment income
Class I ........................................ (46,486) --
Class R ........................................ -- --
Net realized gains
Class I ........................................ -- --
Class R ........................................ -- --
------------- -------------
Total dividends and distributions to shareholders (46,486) --
------------- -------------
Increase (decrease) from shares of beneficial
interest transactions:
Class I ........................................ 5,200,969 (19,901,503)
Class R ........................................ 2,316,828 208,163
------------- -------------
Net increase (decrease) from shares of beneficial
interest transactions--Note 6 .................. 7,517,797 (19,693,340)
------------- -------------
Total increase ............................... 26,113,888 4,124,040
Net Assets:
Beginning of period ............................ 129,718,975 125,594,935
------------- -------------
End of period .................................. $ 155,832,863 $ 129,718,975
============= =============
Undistributed net investment income
(accumulated loss) ............................. $ (164,889) $ 46,145
============= =============
- ------------------
* Commenced operations March 1, 2006.
See Notes to Financial Statements.
-43-
Socially
Responsible Core
Balanced Growth Technology Fixed-Income
Fund Fund Fund Fund
----------------------- ----------------------- ---------- ------------
For the For the
Six Months Six Months For the For the
Ended For the Ended For the Period Ended Period Ended
April 30, Year Ended April 30, Year Ended April 30, April 30,
2006 October 31, 2006 October 31, 2006 2006
(Unaudited) 2005 (Unaudited) 2005 (Unaudited)* (Unaudited)*
----------- ----------- ----------- ----------- ------------ ------------
Net investment income (loss) ..................... $ 7,521 $ 14,180 $ (5,255) $ (5,952) $ (6,583) $ 33,995
Net realized gain (loss)on investments and foreign
currency transactions .......................... 116,032 147,670 261,525 209,975 778 (18,227)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations .......................... (41,243) (4,164) 18,708 85,690 (13,788) (32,154)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease)in net assets
resulting from operations ...................... 82,310 157,686 274,978 289,713 (19,593) (16,386)
---------- ---------- ---------- ---------- ---------- ----------
Dividends and distributions to shareholders from:
Net investment income
Class I ........................................ (11,462) (12,752) -- -- -- (32,787)
Class R ........................................ (566) (1,011) -- -- -- (590)
Net realized gains
Class I ........................................ (117,795) (35,778) (161,550) (56,378) -- --
Class R ........................................ (15,855) (4,123) (41,659) (7,512) -- --
---------- ---------- ---------- ---------- ---------- ----------
Total dividends and distributions to shareholders (145,678) (53,664) (203,209 (63,890) -- (33,377)
---------- ---------- ---------- ---------- ---------- ----------
Increase (decrease) from shares of beneficial
interest transactions:
Class I ........................................ 148,630 20,615 680,981 34,899 4,900,000 4,932,787
Class R ........................................ 71,214 23,053 60,022 214,520 100,000 100,590
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) from shares of beneficial
interest transactions--Note 6 .................. 219,844 43,668 741,003 249,419 5,000,000 5,033,377
---------- ---------- ---------- ---------- ---------- ----------
Total increase ............................... 156,476 147,690 812,772 475,242 4,980,407 4,983,614
Net Assets:
Beginning of period ............................ 1,748,382 1,600,692 1,859,658 1,384,416 -- --
---------- ---------- ---------- ---------- ---------- ----------
End of period .................................. $1,904,858 $1,748,382 $2,672,430 $1,859,658 $4,980,407 $4,983,614
========== ========== ========== ========== ========== ==========
Undistributed net investment income
(accumulated loss) ............................. $ 2,850 $ 7,357 $ (5,255) $ -- $ (6,583) $ 618
========== ========== ========== ========== ========== ==========
THE ALGER INSTITUTIONAL FUNDS -44-
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from
Investment Operations
---------------------------
Net
Realized and
Net Asset Net Unrealized Total Dividend 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 LARGECAP GROWTH INSTITUTIONAL FUND (I)
CLASS I
Six months ended 4/30/06(iv)(v) $12.56 $(0.01) $ 0.95 $ 0.94 $(0.04) $ --
Year ended 10/31/05 ............ 10.86 0.04 1.66 1.70 -- --
Year ended 10/31/04 ............ 10.71 (0.06) 0.21 0.15 -- --
Year ended 10/31/03 ............ 8.70 (0.03) 2.04 2.01 -- --
Year ended 10/31/02 ............ 11.63 (0.03) (2.90) (2.93) -- --
Year ended 10/31/01 ............ 17.15 (0.03) (4.50) (4.53) -- (0.99)
CLASS R
Six months ended 4/30/06(iv)(v) $12.39 $(0.04) $ 0.93 $ 0.89 $ -- $ --
Year ended 10/31/05 ............ 10.76 (0.03) 1.66 1.63 -- --
Year ended 10/31/04 ............ 10.66 (0.12) 0.22 0.10 -- --
From 1/27/03 to 10/31/03(ii)(iv) 8.12 (0.06) 2.60 2.54 -- --
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/06(iv)(v) $19.97 $(0.08) $ 4.11 $ 4.03 $ -- $ --
Year ended 10/31/05 ............ 16.07 (0.14) 4.04 3.90 -- --
Year ended 10/31/04 ............ 15.10 (0.16) 1.13 0.97 -- --
Year ended 10/31/03 ............ 10.97 (0.12) 4.25 4.13 -- --
Year ended 10/31/02 ............ 13.35 (0.13) (2.25) (2.38) -- --
Year ended 10/31/01 ............ 23.78 (0.08) (10.35) (10.43) -- --
CLASS R
Six months ended 4/30/06(iv)(v) $19.74 $(0.13) $ 4.06 $ 3.93 $ -- $ --
Year ended 10/31/05 ............ 15.93 (0.22) 4.03 3.81 -- --
Year ended 10/31/04 ............ 15.05 (0.25) 1.13 0.88 -- --
From 1/27/03 to 10/31/03(ii)(iv) 10.72 (0.14) 4.47 4.33 -- --
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/06(iv)(v) $17.57 $(0.04) $ 2.47 $ 2.43 $ -- $(1.88)
Year ended 10/31/05 ............ 15.38 (0.11) 2.55 2.44 -- (0.25)
Year ended 10/31/04 ............ 14.78 (0.13) 0.73 0.60 -- --
Year ended 10/31/03 ............ 10.76 (0.11) 4.13 4.02 -- --
Year ended 10/31/02 ............ 13.34 (0.10) (2.48) (2.58) -- --
Year ended 10/31/01 ............ 17.53 (0.08) (3.44) (3.52) -- (0.67)
CLASS R
Six months ended 4/30/06(iv)(v) $17.34 $(0.08) $ 2.43 $ 2.35 $ -- $(1.88)
Year ended 10/31/05 ............ 15.25 (0.19) 2.53 2.34 -- (0.25)
Year ended 10/31/04 ............ 14.73 (0.21) 0.73 0.52 -- --
From 1/27/03 to 10/31/03(ii)(iv) 10.25 (0.14) 4.62 4.48 -- --
- ------------------
(i) Prior to March 1, 2002, the Alger LargeCap Growth Institutional Fund was
the Alger Growth Retirement Portfolio.
(ii) Commenced operations January 27, 2003.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Ratios have been annualized; total return has not been annualized.
(v) Unaudited.
See Notes to Financial Statements.
-45-
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
------------- ------ ------ -------- -------- ------------ ---------
ALGER LARGECAP GROWTH INSTITUTIONAL FUND (I)
CLASS I
Six months ended 4/30/06(iv)(v) $(0.04) $13.46 7.5% $ 109,138 1.18% (0.16)% 146.05%
Year ended 10/31/05 ............ -- 12.56 15.7 86,725 1.08 0.31 249.06
Year ended 10/31/04 ............ -- 10.86 1.4 88,098 1.13 (0.51) 191.48
Year ended 10/31/03 ............ -- 10.71 23.1 91,588 1.14 (0.31) 255.49
Year ended 10/31/02 ............ -- 8.70 (25.2) 108,660 1.14 (0.24) 202.07
Year ended 10/31/01 ............ -- 11.63 (27.5) 97,308 1.09 (0.20) 89.54
CLASS R
Six months ended 4/30/06(iv)(v) $ -- $13.28 7.2% $ 4,864 1.69% (0.66)% 146.05%
Year ended 10/31/05 ............ -- 12.39 15.2 3,826 1.57 (0.29) 249.06
Year ended 10/31/04 ............ -- 10.76 0.9 2,493 1.64 (1.05) 191.48
From 1/27/03 to 10/31/03(ii)(iv) -- 10.66 31.3 133 1.62 (0.84) 255.49
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/06(iv)(v) $ -- $24.00 20.2% $ 125,439 1.30% (0.72)% 52.54%
Year ended 10/31/05 ............ -- 19.97 24.3 71,224 1.20 (0.77) 116.16
Year ended 10/31/04 ............ -- 16.07 6.4 69,788 1.25 (1.03) 135.80
Year ended 10/31/03 ............ -- 15.10 37.7 93,300 1.24 (0.99) 139.97
Year ended 10/31/02 ............ -- 10.97 (17.8) 62,780 1.25 (1.01) 138.01
Year ended 10/31/01 ............ -- 13.35 (43.9) 86,790 1.19 (0.46) 191.89
CLASS R
Six months ended 4/30/06(iv)(v) $ -- $23.67 19.9% $ 4,684 1.80% (1.23)% 52.54%
Year ended 10/31/05 ............ -- 19.74 23.9 2,487 1.68 (1.20) 116.16
Year ended 10/31/04 ............ -- 15.93 5.8 284 1.75 (1.55) 135.80
From 1/27/03 to 10/31/03(ii)(iv) -- 15.05 40.4 70 1.74 (1.49) 139.97
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/06(iv)(v) $(1.88) $18.12 14.8% $1,385,027 1.11% (0.45)% 104.58%
Year ended 10/31/05 ............ (0.25) 17.57 16.0 1,093,486 1.10 (0.64) 237.74
Year ended 10/31/04 ............ -- 15.38 4.1 839,273 1.15 (0.87) 190.93
Year ended 10/31/03 ............ -- 14.78 37.4 540,742 1.17 (0.89) 217.33
Year ended 10/31/02 ............ -- 10.76 (19.3) 215,727 1.17 (0.81) 284.69
Year ended 10/31/01 ............ (0.67) 13.34 (20.6) 217,153 1.13 (0.51) 130.93
CLASS R
Six months ended 4/30/06(iv)(v) $(1.88) $17.81 14.6% $ 40,642 1.61% (0.96)% 104.58%
Year ended 10/31/05 ............ (0.25) 17.34 15.4 22,127 1.60 (1.15) 237.74
Year ended 10/31/04 ............ -- 15.25 3.5 12,000 1.65 (1.37) 190.93
From 1/27/03 to 10/31/03(ii)(iv) -- 14.73 43.7 790 1.66 (1.40) 217.33
THE ALGER INSTITUTIONAL FUNDS -46-
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 4/30/06(iv)(xvii) $13.28 $(0.02) $ 1.81 $ 1.79 $ -- $ --
Year ended 10/31/05 .............. 11.05 -- 2.23 2.23 -- --
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)
CLASS R
Six months ended 4/30/06(iv)(xvii) $13.09 $(0.06) $ 1.80 $ 1.74 $ -- $ --
Year ended 10/31/05 .............. 10.95 (0.06) 2.20 2.14 -- --
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 4/30/06(iv)(xvii) $ 7.99 $ 0.03 $ 0.34 $ 0.37 $(0.06) $(0.61)
Year ended 10/31/05 .............. 7.50 0.07 0.67 0.74 (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 4/30/06(iv)(xvii) $ 7.90 $ 0.01 $ 0.36 $ 0.37 $(0.02) $(0.61)
Year ended 10/31/05 .............. 7.43 0.03 0.67 0.70 (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 4/30/06(iv)(xvii) $ 6.17 $(0.01) $ 0.84 $ 0.83 $ -- $(0.66)
Year ended 10/31/05 .............. 5.37 (0.01) 1.05 1.04 -- (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 4/30/06(iv)(xvii) $ 6.09 $(0.03) $ 0.84 $ 0.81 $ -- $(0.66)
Year ended 10/31/05 .............. 5.34 (0.05) 1.04 0.99 -- (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 0.80% due to expense reimbursement.
(vii) Amount has been reduced by 1.00% due to expense reimbursement.
(viii) Amount has been reduced by 0.81% due to expense reimbursement.
(ix) Amount has been reduced by 0.90% due to expense reimbursement.
See Notes to Financial Statements.
-47-
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
------------- ------ ------ -------- -------- ------------ ---------
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/06(iv)(xvii) $ -- $15.07 13.5% $152,252 1.24% (0.21)% 96.53%
Year ended 10/31/05 .............. -- 13.28 20.2 128,646 1.17 0.04 148.91
Year ended 10/31/04 .............. -- 11.05 (0.1) 124,889 1.23 (0.87) 160.00
Year ended 10/31/03 .............. -- 11.06 23.3 160,569 1.23 (0.59) 187.72
Year ended 10/31/02 .............. -- 8.97 (23.1) 132,010 1.23 (0.73) 180.39
Year ended 10/31/01 .............. (0.06) 11.66 (35.4) 187,187 1.18 (0.21) 104.17
CLASS R
Six months ended 4/30/06(iv)(xvii) $ -- $14.83 13.3% $ 3,581 1.77% (0.85)% 96.53%
Year ended 10/31/05 .............. -- 13.09 19.5 1,073 1.67 (0.51) 148.91
Year ended 10/31/04 .............. -- 10.95 (0.5) 706 1.73 (1.39) 160.00
From 1/27/03 to 10/31/03(ii)(iv) . -- 11.01 31.7 66 1.72 (1.01) 187.72
ALGER BALANCED INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/06(iv)(xvii) $(0.67) $ 7.69 4.7% $ 1,641 1.25%(xiii) 0.80% 129.74%
Year ended 10/31/05 .............. (0.25) 7.99 10.1 1,548 1.25%(vi) 0.90 211.26
Year ended 10/31/04 .............. -- 7.50 1.3 1,435 1.35(v) 0.28 184.21
Year ended 10/31/03 .............. -- 7.41 11.1 1,409 2.00 (0.15) 149.42
Year ended 10/31/02 .............. -- 6.67 (18.7) 225 6.72 (5.21) 321.89
From 12/4/00 to 10/31/01(i)(iv) .. -- 8.20 (18.0) 108 3.13 (1.44) 15.99
CLASS R
Six months ended 4/30/06(iv)(xvii) $(0.63) $ 7.64 4.8% $ 264 1.75%(xiv) 0.31% 129.74%
Year ended 10/31/05 .............. (0.23) 7.90 9.6 200 1.75%(viii) (0.38) 211.26
Year ended 10/31/04 .............. -- 7.43 0.7 166 1.82(vii) (0.28) 184.21
From 1/27/03 to 10/31/03(ii)(iv) . -- 7.38 14.8 58 2.56 (0.74) 149.42
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
CLASS I
Six months ended 4/30/06(iv)(xvii) $(0.66) $ 6.34 14.2% $ 2,248 1.25%(xv) (0.42)% 89.32%
Year ended 10/31/05 .............. (0.24) 6.17 19.8 1,505 1.25(x) (0.25) 152.60
Year ended 10/31/04 .............. (0.03) 5.37 0.3 1,277 1.34(ix) (1.04) 166.03
Year ended 10/31/03 .............. -- 5.38 21.4 1,277 2.26 (1.69) 187.82
Year ended 10/31/02 .............. -- 4.43 (30.5) 46 13.48 (13.17) 205.83
From 12/4/00 to 10/31/01(i)(iv) .. -- 6.37 (36.3) 77 5.31 (4.75) 114.33
CLASS R
Six months ended 4/30/06(iv)(xvii) $(0.66) $ 6.24 14.1% $ 424 1.75%(xvi) (0.91)% 89.32%
Year ended 10/31/05 .............. (0.24) 6.09 18.9 355 1.75(xii) (0.97) 152.60
Year ended 10/31/04 .............. (0.03) 5.34 (0.1) 107 1.83(xi) (1.53) 166.03
From 1/27/03 to 10/31/03(ii)(iv) . -- 5.37 30.0 66 2.92 (2.29) 187.82
(x) Amount has been reduced by 0.75% due to expense reimbursement.
(xi) Amount has been reduced by 0.94% due to expense reimbursement.
(xii) Amount has been reduced by 0.73% due to expense reimbursement.
(xiii) Amount has been reduced by 6.31% due to expense reimbursement.
(xiv) Amount has been reduced by 7.44% due to expense reimbursement.
(xv) Amount has been reduced by 5.74% due to expense reimbursement.
(xvi) Amount has been reduced by 4.66% due to expense reimbursement.
(xvii) Unaudited.
THE ALGER INSTITUTIONAL FUNDS -48-
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from
Investment Operations
----------------------------
Net
Realized and
Net Asset Net Unrealized Total Dividends
Value, Investment Gain from from Net
Beginning Income (Loss) on Investment Investment
of Period (Loss)(iii) Investments Operations Income
--------- ----------- ------------ ---------- ----------
ALGER TECHNOLOGY INSTITUTIONAL FUND
CLASS I
From 3/1/06 to 4/30/06(i)(ii)...... $10.00 $(0.01) $(0.03) $(0.04) $ --
CLASS R
From 3/1/06 to 4/30/06(i)(ii)...... $10.00 $(0.02) $(0.03) $(0.05) $ --
ALGER CORE FIXED-INCOME INSTITUTIONAL FUND
CLASS I
From 3/1/06 to 4/30/06(i)(ii)...... $10.00 $ 0.07 $(0.10) $(0.03) $(0.07)
CLASS R
From 3/1/06 to 4/30/06(i)(ii)...... $10.00 $ 0.06 $(0.09) $(0.03) $(0.07)
- ------------------
(i) Commenced operations March 1, 2006.
(ii) Unaudited. Ratios have been annualized; total return has not been
annualized.
(iii) Amount was computed based on average shares outstanding during the period.
(iv) Amount has been reduced by 2.09% due to expense reimbursement.
(v) Amount has been reduced by 2.27% due to expense reimbursement.
See Notes to Financial Statements.
-49-
Net Ratio of Ratio of Net
Net Assets, Expenses Investment
Asset End of to Income
Value, Period Average (Loss)to Portfolio
End of Total (000's Net Average Turnover
Period Return omitted) Assets Net Assets Rate
------ ------ -------- -------- ------------ ---------
ALGER TECHNOLOGY INSTITUTIONAL FUND
CLASS I
From 3/1/06 to 4/30/06(i)(ii)...... $9.96 (0.4)% $4,881 1.25%(iv) (0.80)% 24.98%
CLASS R
From 3/1/06 to 4/30/06(i)(ii)...... $9.95 (0.5)% $ 100 1.75%(iv) (1.30)% 24.98%
ALGER CORE FIXED-INCOME
INSTITUTIONAL FUND
CLASS I
From 3/1/06 to 4/30/06(i)(ii)...... $9.90 (0.3)% $4,884 0.60%(v) 4.23% 58.11%
CLASS R
From 3/1/06 to 4/30/06(i)(ii)...... $9.90 (0.4)% $ 100 1.10%(v) 3.73% 58.11%
THE ALGER INSTITUTIONAL FUNDS -50-
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 eight funds--LargeCap Growth Fund, SmallCap Growth
Fund, MidCap Growth Fund, Capital Appreciation Fund, Balanced Fund, Socially
Responsible Growth Fund, Technology Fund and Core Fixed-Income Fund
(collectively, the "Funds" or individually, each a "Fund"). The LargeCap Growth
Fund, SmallCap Growth Fund, MidCap Growth Fund, Capital Appreciation Fund,
Socially Responsible Growth Fund and Technology 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. The Core Fixed-Income Fund's investment
objective is current income consistent with the preservation of capital value,
which it seeks by investing in 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 readily available 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
listed on foreign exchanges are valued at the last reported sales price or, in
the absence of reported sales, at the mean between the bid and asked price.
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.
Securities in which the Funds invest may be traded in markets that close
before the close of the NYSE. Normally, developments that occur between the
close of the foreign markets and the close of the NYSE(normally 4:00 p.m.
THE ALGER INSTITUTIONAL FUNDS -51-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Eastern time) will not be reflected in the Fund's net asset value. However, if
it be determined that such developments are so significant that they will
materially affect the values of the Funds' securities, the Funds may adjust the
previous closing prices to reflect what the investment manager, under the
direction of the Board of Trustees, believes to be the fair values of these
securities as of the close of the NYSE.The Funds may also fair value securities
in other situations, for example, when a particular foreign market is closed but
the Funds are open.
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) FOREIGN CURRENCY TRANSLATIONS: The books and records of the Funds are
maintained in U.S. dollars. Foreign currencies, investments and other assets and
liabilities are translated into U.S. dollars at the prevailing rates of exchange
on the valuation date. Purchases and sales of investment securities and income
and expenses are translated into U.S.dollars at the prevailing exchange rates on
the respective dates of such transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from the disposition of foreign currencies, currency gains
and losses realized between the trade dates and settlement dates of security
transactions, and the difference between the amount of net investment income
accrued and the U.S. dollar amount actually received.The effects of changes in
foreign currency exchange rates on investments in securities are included in
realized and unrealized gain or loss on investments in the Statements of
Operations.
(d) 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.
(e) LENDING OF FUND SECURITIES: The Funds may lend their securities to financial
institutions, provided that the market value of the securities loaned will not
at any time exceed one third of a Fund's total assets, as defined. The Funds
THE ALGER INSTITUTIONAL FUNDS -52-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, 2006, there were no securities on loan.
(f) 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 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 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.
(g) 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.
(h) 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.
(i) INDEMNIFICATION: The Trust enters into contracts that contain a variety of
indemnification provisions. The Trust's maximum exposure under these
arrangements is unknown. The Trust does not anticipate recognizing any loss
related to these arrangements.
THE ALGER INSTITUTIONAL FUNDS -53-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(j) OTHER: These financial statements have been prepared in accordance with U.S.
generally accepted accounting principles, which require 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 ............................. .750%
SmallCap Growth Fund ............................. .850
MidCap Growth Fund ............................... .800
Capital Appreciation Fund ........................ .850
Balanced Fund .................................... .750
Socially Responsible Growth Fund ................. .750
Technology Fund .................................. .850
Core Fixed-Income Fund ........................... .375
Alger Management has established an expense cap for the Balanced Fund and
the Socially Responsible Growth Fund effective March 1, 2004 and for the
Technology Fund and the Core Fixed-Income Fund effective March 1, 2006. Alger
Management will reimburse these Balanced Fund, Socially Responsible Growth Fund
and the Technology Fund if annualized operating expenses exceed 1.25% and 1.75%
for Class I shares and Class R shares, respectively, and will Reimburse the Core
Fixed-Income Fund if annualized operating expenses exceed .60% and 1.10% for
Class I shares and Class Rshares, respectively, of average daily net assets. For
the six months ended April 30, 2006, Alger Management reimbursed the Balanced
Fund, the Socially Responsible Growth Fund, the Technology Fund and the Core
Fixed-Income Fund $58,907, $58,665, $16,869 and $18,283, respectively. Alger
Management has contractually agreed to extend the expense cap through February
28, 2007.
(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, 2006, the
LargeCap Growth Fund, the SmallCap Growth Fund, the MidCap Growth Fund,
THE ALGER INSTITUTIONAL FUNDS -54-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the Capital Appreciation Fund, the Balanced Fund, the Socially Responsible
Growth Fund and the Technology Fund paid the Distributor commissions of
$146,611, $70,588, $1,342,384, $148,463, $1,838, $2,090 and $3,035 respectively,
in connection with securities transactions.
(d) SHAREHOLDER ADMINISTRATIVE FEES:The Trust has entered into a shareholder
administrative services agreement with Alger Shareholder Services, Inc. ("Alger
Services") to compensate Alger Services on a per account basis for its liaison
and administrative oversight ofBoston Financial Data Services, Inc., the
transfer agent ("BFDS")and other related services. During the six months ended
April 30, 2006, 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 $139, $964, $2,723, $277, $9 and $50
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, 2006, Alger Management and its affiliates owned 7,333
shares, 4,815 shares, 9,136 shares, 7,349 shares, 193,150 shares, 270,956
shares, 500,000 shares and 503,365 shares of the LargeCap Growth Fund, the
SmallCap Growth Fund, the MidCap Growth Fund, the Capital Appreciation Fund, the
Balanced Fund, the Socially Responsible Growth Fund, the Technology Fund and the
Core Fixed-Income Fund, respectively.
NOTE 4--SECURITIES TRANSACTIONS:
The following summarizes the securities transactions by the Funds, other
than short-term securities, for the six months ended April 30, 2006:
PURCHASES SALES
----------- -------
LargeCap Growth Fund ....................... $ 135,687,711 $ 134,404,767
SmallCap Growth Fund ....................... 84,668,996 48,616,755
MidCap Growth Fund ......................... 1,434,288,294 1,279,598,150
Capital Appreciation Fund .................. 149,069,398 141,180,908
Balanced Fund .............................. 2,132,919 2,062,068
Socially Responsible Growth Fund ........... 2,320,021 1,817,327
Technology Fund ............................ 6,122,288 1,223,384
Core Fixed-Income Fund ..................... 7,698,877 2,823,855
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, to purchase additional securities. To the extent the Capital
Appreciation
THE ALGER INSTITUTIONAL FUNDS -55-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, 2006, the
Funds had the following borrowings:
AVERAGE WEIGHTED AVERAGE
BORROWING INTEREST RATE
----------- ----------------
LargeCap Growth Fund ......................... $ 6,431 4.83%
SmallCap Growth Fund ......................... 67,757 4.65
Capital Appreciation Fund .................... 129,481 4.96
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 eight series. Each
series is divided into two separate classes.
During the six months ended April 30, 2006, transactions of shares of
beneficial interest were as follows:
SHARES AMOUNT
-------- --------
LargeCap Growth Fund
Class I
Shares sold ................................ 2,785,638 $ 37,278,343
Dividends reinvested ....................... 20,722 273,536
Shares redeemed ............................ (1,601,478) (21,351,188)
----------- -------------
Net increase ............................... 1,204,882 $ 16,200,691
=========== =============
Class R
Shares sold ................................ 107,256 $ 1,409,172
Shares redeemed ............................ (49,884) (651,626)
----------- -------------
Net increase ............................... 57,372 $ 757,546
=========== =============
SmallCap Growth Fund
Class I
Shares sold ................................ 2,544,733 $ 57,082,566
Shares redeemed ............................ (884,423) (19,232,330)
----------- -------------
Net increase ............................... 1,660,310 $ 37,850,236
=========== =============
Class R
Shares sold ................................ 95,939 $ 2,156,309
Shares redeemed ............................ (24,034) (528,721)
----------- -------------
Net increase ............................... 71,905 $ 1,627,588
=========== =============
MidCap Growth Fund
Class I
Shares sold ................................ 18,175,876 $ 320,686,873
Dividends reinvested ....................... 7,207,281 119,857,101
Shares redeemed ............................ (11,178,735) (196,858,759)
----------- -------------
Net increase ............................... 14,204,422 $ 243,685,215
=========== =============
THE ALGER INSTITUTIONAL FUNDS -56-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SHARES AMOUNT
-------- --------
Class R
Shares sold ................................ 1,260,737 $ 21,896,003
Dividends reinvested ....................... 160,762 2,631,661
Shares redeemed ............................ (416,218) (7,140,843)
----------- ------------
Net increase ............................... 1,005,281 $ 17,386,821
=========== ============
Capital Appreciation Fund
Class I
Shares sold ................................ 2,650,267 $ 37,979,681
Dividends reinvested ....................... 3,291 46,419
Shares redeemed ............................ (2,240,253) (32,825,131)
----------- ------------
Net increase ............................... 413,305 $ 5,200,969
=========== ============
Class R
Shares sold ................................ 183,686 $ 2,661,900
Shares redeemed ............................ (24,175) (345,072)
----------- ------------
Net increase ............................... 159,511 $ 2,316,828
=========== ============
Balanced Fund
Class I
Shares sold ................................ 5,308 $ 41,024
Dividends reinvested ....................... 16,963 129,256
Shares redeemed ............................ (2,811) (21,650)
----------- ------------
Net increase ............................... 19,460 $ 148,630
=========== ============
Class R
Shares sold ................................ 7,266 $ 56,971
Dividends reinvested ....................... 2,172 16,421
Shares redeemed ............................ (282) (2,178)
----------- ------------
Net increase ............................... 9,156 $ 71,214
=========== ============
Socially Responsible Growth Fund
Class I
Shares sold ................................ 88,664 $ 550,484
Dividends reinvested ....................... 25,842 153,241
Shares redeemed ............................ (3,821) (22,744)
----------- ------------
Net increase ............................... 110,685 $ 680,981
=========== ============
Class R
Shares sold ................................ 43,301 $ 267,040
Dividends reinvested ....................... 7,134 41,659
Shares redeemed ............................ (40,625) (248,677)
----------- ------------
Net increase ............................... 9,810 $ 60,022
=========== ============
Technology Fund*
Class I
Shares sold ................................ 490,000 $ 4,900,000
=========== ============
THE ALGER INSTITUTIONAL FUNDS -57-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SHARES AMOUNT
-------- --------
Class R
Shares sold ................................ 10,010 $ 100,100
Shares redeemed ............................ (10) (100)
----------- -------------
Net increase ............................... 10,000 $ 100,000
=========== =============
Core Fixed-Income Fund*
Class I
Shares sold ................................ 490,000 $ 4,900,000
Dividends reinvested ....................... 3,305 $ 32,787
----------- -------------
Net increase ............................... 493,305 $ 4,932,787
=========== =============
Class R
Shares sold ................................ 10,000 $ 100,000
Dividends reinvested ....................... 59 590
----------- -------------
Net increase ............................... 10,059 $ 100,590
=========== =============
During the year ended October 31, 2005, transactions of shares of beneficial
interest were as follows:
LargeCap Growth Fund
Class I
Shares sold ................................ 2,200,355 $ 26,022,349
Shares redeemed ............................ (3,411,580) (40,911,341)
----------- -------------
Net decrease ............................... (1,211,225) $ (14,888,992)
=========== =============
Class R
Shares sold ................................ 154,719 $ 1,781,735
Shares redeemed ............................ (77,595) (910,234)
----------- -------------
Net increase ............................... 77,124 $ 871,501
=========== =============
SmallCap Growth Fund
Class I
Shares sold ................................ 1,548,513 $ 28,225,343
Shares redeemed ............................ (2,325,174) (42,064,657)
----------- -------------
Net decrease ............................... (776,661) $ (13,839,314)
=========== =============
Class R
Shares sold ................................ 153,157 $ 2,767,356
Shares redeemed ............................ (44,954) (805,083)
----------- -------------
Net increase ............................... 108,203 $ 1,962,273
=========== =============
MidCap Growth Fund
Class I
Shares sold ................................ 23,802,074 $ 401,271,219
Dividends reinvested ....................... 843,221 14,005,908
Shares redeemed ............................ (16,996,823) (285,555,328)
----------- -------------
Net increase ............................... 7,648,472 $ 129,721,799
=========== =============
THE ALGER INSTITUTIONAL FUNDS -58-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SHARES AMOUNT
-------- --------
Class R
Shares sold ................................ 904,309 $ 15,093,802
Dividends reinvested ....................... 13,818 227,446
Shares redeemed ............................ (428,734) (7,152,802)
----------- ------------
Net increase ............................... 489,393 $ 8,168,446
=========== =============
Capital Appreciation Fund
Class I
Shares sold ................................ 2,623,699 $ 32,136,928
Shares redeemed ............................ (4,237,300) (52,038,431)
----------- ------------
Net decrease ............................... (1,613,601) $ (19,901,503)
=========== =============
Class R
Shares sold ................................ 40,879 $ 488,568
Shares redeemed ............................ (23,401) (280,405)
----------- ------------
Net increase ............................... 17,478 $ 208,163
=========== =============
Balanced Fund
Class I
Shares sold ................................ 9,813 $ 75,364
Dividends reinvested ....................... 5,423 41,217
Shares redeemed ............................ (12,703) (95,966)
----------- ------------
Net increase ............................... 2,533 $ 20,615
=========== =============
Class R
Shares sold ................................ 3,179 $ 24,043
Dividends reinvested ....................... 685 5,169
Shares redeemed ............................ (818) (6,159)
----------- ------------
Net increase ............................... 3,046 $ 23,053
=========== =============
Socially Responsible Growth Fund
Class I
Shares sold ................................ 50 $ 288
Dividends reinvested ....................... 9,429 52,611
Shares redeemed ............................ (3,205) (18,000)
----------- ------------
Net increase ............................... 6,274 $ 34,899
=========== =============
Class R
Shares sold ................................ 39,735 $ 223,738
Dividends reinvested ....................... 1,012 5,594
Shares redeemed ............................ (2,544) (14,812)
----------- ------------
Net increase ............................... 38,203 $ 214,520
=========== =============
- ------------------
*Commenced operations March 1, 2006.
THE ALGER INSTITUTIONAL FUNDS -59-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 7--TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the six months ended April
30, 2006 and the year ended October 31, 2005 were as follows:
SIX
MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
-------------- ----------------
LargeCap Growth Fund
Distributions paid from:
Ordinary income ............................ $ 274,583 $ --
Long-term capital gain ..................... -- --
------------ ------------
Total distributions paid ................... $ 274,583 $ --
============ ============
MidCap Growth Fund
Distributions paid from:
Ordinary income ............................ $ 93,050,670 $ --
Long-term capital gain ..................... 30,203,934 14,306,365
------------ ------------
Total distributions paid ................... $123,254,604 $ 14,306,365
============ ============
Capital Appreciation
Distributions paid from:
Ordinary income ............................ $ 46,486 $ --
Long-term capital gain ..................... -- --
------------ ------------
Total distributions paid ................... $ 46,486 $ --
============ ============
Balanced Fund
Distributions paid from:
Ordinary income ............................ $ 115,159 $ 18,724
Long-term capital gain ..................... 30,519 34,940
------------ ------------
Total distributions paid ................... $ 145,678 $ 53,664
============ ============
Socially Responsible Growth Fund
Distributions paid from:
Ordinary income ............................ $ 144,437 $ --
Long-term capital gain ..................... 58,772 63,890
------------ ------------
Total distributions paid ................... $ 203,209 $ 63,890
============ ============
Core Fixed-Income Fund
Distributions paid from:
Ordinary income ............................ $ 33,377 $ --
Long-term capital gains .................... -- --
------------ ------------
Total distributions paid ................... $ 33,377 $ --
============ ============
As of October 31, 2005, the components of distributable earnings on a tax
basis were as follows:
LargeCap Growth Fund
Undistributed ordinary income ............................. $ 274,397
Undistributed long-term gain .............................. --
Unrealized appreciation ................................... 5,192,206
THE ALGER INSTITUTIONAL FUNDS -60-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SmallCap Growth Fund
Undistributed ordinary income ............................. --
Undistributed long-term gain .............................. --
Unrealized appreciation ................................... $ 8,071,398
MidCap Growth Fund
Undistributed ordinary income ............................. $ 93,048,523
Undistributed long-term gain .............................. 30,201,163
Unrealized appreciation ................................... 64,842,423
Capital Appreciation Fund
Undistributed ordinary income ............................. $ 46,145
Undistributed long-term gain .............................. --
Unrealized appreciation ................................... 14,365,786
Balanced Fund
Undistributed ordinary income ............................. $ 112,638
Undistributed long-term gain .............................. 30,499
Unrealized appreciation ................................... 63,427
Socially Responsible Growth Fund
Undistributed ordinary income ............................. $ 144,418
Undistributed long-term gain .............................. 58,766
Unrealized appreciation ................................... 206,878
The differences between book basis and tax basis unrealized appreciation
is determined annually and is attributable primarily to the tax deferral of
losses on wash sales. Tax basis unrealized appreciation as of April 30, 2006
does not reflect any potential tax adjustments subsequent to October 31, 2005.
At October 31, 2005, 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 $ -- $50,188,693 $ 56,066,260
2010 19,289,047 12,342,837 46,484,857
2011 5,070,663 -- --
----------- ----------- ------------
$24,359,710 $62,531,530 $102,551,117
=========== =========== ============
NOTE 8--LITIGATION:
Alger Management has responded 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, the Attorney General of New Jersey, and the West Virginia Securities
Commissioner, in connection with their investigations of practices in the mutual
fund industry identified as "market timing" and "late trading."
THE ALGER INSTITUTIONAL FUNDS -61-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
On December 16, 2005, Alger Management received from the staff of the SEC
a "Wells Notice" which indicated that the staff intends to recommend that the
Commission bring civil enforcement action for possible violations of the federal
securities laws. "Wells Notices" also have been sent to certain companies
affiliated with Alger Management, as well as certain present and former members
of its senior management. The Wells Notices arose out of the SEC's staff ongoing
investigation of market timing and late trading practices in the mutual fund
industry. Alger Management and the other recipients have the opportunity to
respond to the staff before the staff makes a formal recommendation. Alger
Management submitted a response in January 2006.
On June 7, 2006, Alger Management, its parent, Alger Inc., and their
affiliated companies reached an agreement in principle with the staff of the New
York Regional Office of the SEC and with the staff of the New York State
Attorney General's office ("NYAG") resolving all issues with the SEC and the
NYAG related to the allegations of mutual fund market timing and late trading
that were the subject of the December 2005 Wells Notice. Alger Management and
Alger Inc. are working with the staff of the SEC and the NYAG to finalize the
agreement. The agreement is subject to the approval of the SEC and the NYAG. In
the proposed settlement agreement, without admitting or denying liability, the
firm will consent to the payment of $30 million dollars to reimburse fund
shareholders; a fine of $10 million; and certain other remedial measures
including a reduction in management fees of $1 million per year for five years.
The entire $40 million and fee reduction will be available for the benefit of
investors. Alger Management has advised the Fund that the proposed settlement
payment is not expected to adversely affect the operations of the Manager, Alger
Inc. or their affilates, or adversely affect their ability to continue to
provide services to the Fund.
On August 31, 2005, the West Virginia Securities Commissioner in an ex
parte Summary Order to Cease and Desist and Notice of Right to Hearing concluded
that Alger Management and Alger Inc. had violated the West Virginia Uniform
Securities Act, and ordered Alger Management and Alger Inc. to cease and desist
from further violations of the Act by engaging in the market-timing related
conduct described in the order. The ex parte order provided notice of their
right to a hearing with respect to the violations of law asserted by the
Commissioner. Other firms unaffiliated with Alger Management were served with
similar orders. Alger Management and Alger Inc. intend to request a hearing for
the purpose of seeking to vacate or modify the order.
In addition, in 2003 and 2004 several purported class actions and
shareholder derivative suits were filed against various parties in the mutual
fund industry, including Alger Management, certain mutual funds managed by Alger
Management (the "Alger Mutual Funds"), and certain current and former Alger
Mutual Fund trustees and officers, alleging wrongful conduct related to
market-timing and late-trading by mutual fund shareholders. These cases were
THE ALGER INSTITUTIONAL FUNDS -62-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
transferred to the U.S. District Court of Maryland by the Judicial Panel on
Multidistrict Litigation for consolidated pre-trial proceedings. In September
2004, consolidated amended complaints involving these cases -- 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). In April 2005, a civil
lawsuit involving similar allegations was filed by the West Virginia Attorney
General and also transferred to the Maryland District Court.
The Derivative Complaint alleged (i) violations, by Alger Management and,
depending on the specific offense alleged, by its immediate parent, Alger Inc.,
which is the Distributor of the Alger Mutual Funds, and/or the fund trustee
defendants, of Sections 36(a), 36(b), 47, and 48 of the Investment Company Act
of 1940 (the "Investment Company Act") 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 third-party defendants, and (iii)
unjust enrichment by all the named defendants. The Class Action Complaint
alleged, in addition to the offenses listed above, (i) violations, by Alger
Management, Alger Inc., 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 (the "1934 Act"), and Section 34(b)
of the Investment Company Act of 1940, (ii) breach of contract by the funds
named as defendants, and (iii) unjust enrichment of the defendants. The West
Virginia attorney general action also alleges violations of the West Virginia
Consumer Credit and Protection Act and other wrongful conduct.
Motions to dismiss the Class Action Complaint and the Derivative Complaint
were subsequently filed. On November 3, 2005, the district court issued letter
rulings dismissing both complaints in their entirety with respect to the Alger
Mutual Funds and dismissing all claims against the other Alger defendants, other
than the claims under the 1934 Act and Section 36(b) of the Investment Company
Act (as to which the court deferred ruling with respect to the Alger Mutual Fund
Trustees), with leave to the class action plaintiffs to file amended complaints
against those defendants with respect to claims under state law.Orders
implementing the letter rulings are being entered. On January 11, 2006, the
Alger defendants filed a motion for partial reconsideration of the district
court's ruling with respect to the Section 10(b), Rule 10b-5 and Section 36(b)
claims against them; the district court denied the motion on February 9, 2006.
Alger Management does not believe that the Alger Mutual Funds are
themselves targets of the regulatory investigations as potential enforcement
defendants.
THE ALGER INSTITUTIONAL FUNDS -63-
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The SEC and, in some cases, state government authorities have a variety of
administrative and civil enforcement powers, including injunctive powers,
authority to assess fines and penalties and order restitution, authority to
limit the activities of a person or company and other enforcement powers, that
may be exercised administratively or through the courts.
Under Section 9(a) of the Investment Company Act, if any of the various
regulatory proceedings or lawsuits were to result in a court injunction against
Alger Management or Alger Inc., Alger Management would, in the absence of
exemptive relief granted by the SEC, be barred from serving as investment
adviser/sub-adviser for any registered investment company, including the Fund.
While exemptive relief from Section 9(a) has been granted in certain other
cases, 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 loss of Alger Management personnel,
diversion of time and attention of Alger Management personnel, diminishment of
financial resources of Alger Management, or other consequences potentially
adverse to the Fund. Alger Management cannot predict the potential effect of
such actions upon Alger Management or the Fund. There can be no assurance that
the effect, if any, would not be material.
THE ALGER INSTITUTIONAL FUNDS -64-
ADDITIONAL INFORMATION (UNAUDITED)
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, 2005 and ending April 30,
2006.
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.
SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) (CONTINUED) -65-
RATIO OF
EXPENSES TO
AVERAGE
EXPENSES PAID NET ASSETS
BEGINNING ENDING DURING THE PERIOD FOR THE SIX
ACCOUNT VALUE ACCOUNT VALUE NOVEMBER 1, 2005 TO MONTHS ENDED
NOVEMBER 1, 2005 APRIL 30, 2006 APRIL 30, 2006(b) APRIL 30, 2006(c)
---------------- -------------- ----------------- -----------------
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual $1,000.00 $1,075.00 $6.07 1.18%
Hypothetical(a) 1,000.00 1,018.94 5.91 1.18
CLASS R:
Actual 1,000.00 1,071.80 8.68 1.69
Hypothetical(a) 1,000.00 1,016.41 8.45 1.69
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual $1,000.00 $1,201.80 $7.10 1.30%
Hypothetical(a) 1,000.00 1,018.35 6.51 1.30
CLASS R:
Actual 1,000.00 1,199.10 9.81 1.80
Hypothetical(a) 1,000.00 1,015.87 9.00 1.80
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual $1,000.00 $1,147.90 $5.91 1.11%
Hypothetical(a) 1,000.00 1,019.29 5.56 1.11
CLASS R:
Actual 1,000.00 1,145.70 8.57 1.61
Hypothetical(a) 1,000.00 1,016.81 8.05 1.61
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
CLASS I:
Actual $1,000.00 $1,135.10 $6.56 1.24%
Hypothetical(a) 1,000.00 1,018.65 6.21 1.24
CLASS R:
Actual 1,000.00 1,132.90 9.36 1.77
Hypothetical(a) 1,000.00 1,016.02 8.85 1.77
ALGER BALANCED INSTITUTIONAL FUND
CLASS I:
Actual $1,000.00 $1,046.60 $6.34 1.25%
Hypothetical(a) 1,000.00 1,018.60 6.26 1.25
CLASS R:
Actual 1,000.00 1,047.60 8.88 1.75
Hypothetical(a) 1,000.00 1,016.12 8.75 1.75
ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND
CLASS I:
Actual $1,000.00 $1,142.00 $6.64 1.25%
Hypothetical(a) 1,000.00 1,018.60 6.26 1.25
CLASS R:
Actual 1,000.00 1,140.50 9.29 1.75
Hypothetical(a) 1,000.00 1,016.12 8.75 1.75
SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) (CONTINUED) -66-
RATIO OF
EXPENSES TO
AVERAGE
EXPENSES PAID NET ASSETS
BEGINNING ENDING DURING THE PERIOD FOR THE SIX
ACCOUNT VALUE ACCOUNT VALUE NOVEMBER 1, 2005 MONTHS ENDED
NOVEMBER 1, 2005 APRIL 30, 2006 APRIL 30, 2006(b) APRIL 30, 2006(c)
---------------- -------------- ----------------- -----------------
ALGER TECHNOLOGY INSTITUTIONAL FUND
CLASS I:
Actual* $1,000.00 $ 996.00 $6.19 1.25%
Hypothetical(a) 1,000.00 1,018.60 6.26 1.25
CLASS R:
Actual* 1,000.00 995.00 8.66 1.75
Hypothetical(a) 1,000.00 1,016.12 8.75 1.75
ALGER CORE FIXED-INCOME INSTITUTIONAL FUND
CLASS I:
Actual* $1,000.00 $ 996.70 $2.97 0.60%
Hypothetical(a) 1,000.00 1,021.82 3.01 0.60
CLASS R:
Actual* 1,000.00 995.90 5.44 1.10
Hypothetical(a) 1,000.00 1,019.34 5.51 1.10
- ------------------
* From March 1, 2006--Commencement of operations.
(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.
PROXY VOTING POLICIES -67-
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.
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.
[ALGER LOGO]
ISAR 43006
[ALGER LOGO]
The Alger Institutional Funds
Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266
ISAR 43006
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 22, 2006
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 22, 2006
By: /s/ Frederick A. Blum
Frederick A. Blum
Treasurer
Date: June 22, 2006