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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: October 31, 2006

ITEM 1. REPORTS 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 GREEN INSTITUTIONAL FUND
ALGER TECHNOLOGY INSTITUTIONAL FUND
ALGER CORE FIXED-INCOME INSTITUTIONAL FUND

ANNUAL REPORT
OCTOBER 31, 2006

[ALGER LOGO]

TABLE OF CONTENTS

THE ALGER INSTITUTIONAL FUNDS
Letter to Our Shareholders ............................................... 1
Fund Highlights (Unaudited) .............................................. 11
Portfolio Summary (Unaudited) ............................................ 19
Schedules of Investments ................................................. 20
Statements of Assets and Liabilities ..................................... 52
Statements of Operations ................................................. 54
Statements of Changes in Net Assets ...................................... 56
Financial Highlights ..................................................... 60
Notes to Financial Statements ............................................ 66
Report of Independent Registered Public Accounting Firm .................. 81
Additional Information (Unaudited) ....................................... 82

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Dear Shareholders, December 6, 2006

Looking back on the fiscal year that ended October 31, 2006, we were
reminded of the famous quotation from Shakespeare's THE TEMPEST: "O Wonder! How
many goodly creatures are there here! How beauteous mankind is! O brave new
world that has such people in't!"

"Brave New World" strikes us as a good metaphor for where U.S. investors
find themselves today. Early in 2006, Federal Reserve Chairman Ben Bernanke
discussed his own uncertainty about the "conundrum" of why long-term interest
rates weren't moving in sync with short-term rates. If Bernanke, a skilled and
experienced economist and policymaker, is perplexed about the world today, it is
hardly surprising that so many investors are feeling unsettled. More than at any
point in recent memory, the data that most of us use to gauge the health or
weakness of the economy and the markets offers little clarity. Inflation was a
concern, and then it wasn't; the job market was strong statistically, yet people
seem concerned about employment; corporate profits have accelerated at a
double-digit pace, yet the markets have held back. And overall, Wall Street
pundits and U.S. investors spent a good part of the year worrying and waiting
for a "Tempest" that never came.

One reason for the confusion, in our view, is that today's economic
reality reflects an international macro-economy, not just a national one. But
there are few metrics to track global data the way the major U.S. indicators
track our national economy. A few economists, market mavens, and commentators
have begun to grapple with this issue, but until systems can be created that
effectively gauge factors such as global inflation or global labor data, U.S.
investors may feel like Shakespeare's Miranda, washed up on the shores of an
uncharted, potentially dangerous island - with no overarching point of reference
and a profound sense of unease.

Take inflation. While gas prices soared until the summer, they came down
after. Home prices also began to soften, and in some regions of the country,
plummet. The earlier increase in both was widely felt by most consumers to be
proof of inflation, and for most people, it was. But statistically, it was a
different matter. Gasoline prices are not included in so-called "core
inflation," and home prices aren't either. Even core inflation is a strange
statistic, because nearly one-third of the core index is made up of "owner's
equivalent rent" - a component that reflects potential homebuyers who choose to
rent during a cooling housing market, while waiting for a more opportune time to
buy. As this group grew in the early months of the year, demand for rental units
increased, and rents went up. That meant that inflation readings went up as
well, largely because home prices didn't! And to add insult to injury, the rise
in inflation was triggered by the Fed raising rates - which meant that the very
act of increasing interest rates to contain inflation was instead causing it. No
wonder there has been such unease.

But as in Shakespeare's brave new world, unease sits side by side with
opportunity. Today's better companies are much farther ahead in their thinking
and planning than most countries and governments - think Prospero and his bag of
magic tricks. Because of the imperatives of competition and the demands of the
market, they are constantly innovating and changing their business models. In
fact, in our view, the best way a modern investor can stay informed is to follow
what the better managed com-

-2-

panies do: ignore trends, and look at investments on a case-by-case corporate
basis. (And of course, today's interested investors have a remarkable tool for
this research: the Internet. O Brave New World, indeed.)

Apart from the ongoing tectonic shifts, 2006 saw a number of milestones
nationally and globally. In early October, the Dow Jones Industrial Average(i)
broke 12,000 for the first time and showed no signs of retreating. In later
October, the Industrial & Commercial Bank of China held the world's largest IPO
ever, raising more than $21 billion in its initial public offering, most of it
from foreign institutional investors, which was yet one more sign that China has
emerged as the second engine of international growth, one which is directly
impacting a majority of the dynamic growth companies that we focus on.

And spurring the U.S. equity markets to their fall rally was one of the
year's most significant developments, when the Federal Open Market Committee
decided on August 8th to stop raising interest rates after 17 consecutive hikes
dating back to June 2004. For the first half of the year, relentless scrutiny of
whether or not the Fed would ever pause was actually obscuring what the better
companies were doing, and impeding multiple expansion. To the relief of U.S.
pundits, investors, and the equity markets in general, the Fed continued to hold
steady at 5.25% for the remainder of the year, and we believe that rates are not
likely to rise in the foreseeable future. The fact that the 10-year Treasury, at
about 4.5% is trading at the same level it was when the Fed began in 2004, is
yet another sign in our view that the global market is determining the economic
landscape more than any one central bank - even one as powerful as the Federal
Reserve.

What has been most surprising this year is how strong corporate earnings
have remained; and even though U.S. equity markets have risen they have still
lagged earnings. The companies of the S&P 500 Index(ii) have registered earnings
growth in the high teens -- not to mention having increased almost 75% over the
past five years -- while the S&P 500 itself was up approximately 12%
year-to-date through October 31. The major U.S. indices have fared about the
same, with the Nasdaq(iii) weaker. The result has been a steady compression of
valuations, with the forward multiple for the S&P 500 going from over 18x in
2002 to just over 14x in 2006, a compression of nearly 25%.

One other positive for the market occurred just after the end of our
fiscal year, namely the fall congressional elections. The uncertainty about the
outcome was for a time a headwind, and judging by the upward move of the markets
after, investors were apparently relieved by the outcome -- not the victory of
the Democrats necessarily, but rather the end of the flurry of debates. Soon
enough attention will turn to the presidential election of 2008, but for a while
at least, politics will be less of a distraction.

As for our outlook for 2007: more of the same. We expect the gap between
how the U.S. economy is doing (fine but not spectacular) and how innovative
growth companies are doing (extremely well) to continue. We also expect the
international economy to benefit U.S. companies that are competing in the global
marketplace, even as all of us continue to grapple with the unknowns of the new
and evolving landscape.

-3-

PORTFOLIO MATTERS
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND

The Alger SmallCap Growth Institutional Fund provided shareholders with a
20.08% return during the twelve months ended October 31, 2006. This compared
favorably to the Fund's benchmark, the Russell 2000 Growth Index(iv), which
gained 17.08% during the same period. These favorable returns were the result of
very strong stock selection throughout the fiscal year that was only slightly
offset by weak sector allocation.

During the most recent fiscal year, the Fund's largest average sector
exposures were in Information Technology and Health Care. The Information
Technology's average sector weighting of 23.1% has been slightly below the
average benchmark weighting of 24.7% and its return has also been below the
index's performance. Favorable performers in this sector have included Open
Solutions, Inc., WebEx Communications, Inc. and Veritas DGC Inc. On the other
hand, the legal investigations into the alleged backdating of corporate options
have negatively impacted several technology companies and were a contributing
factor to the Fund's subpar stock selection in this sector.

The Fund's weighting in Health Care stocks relative to the benchmark
remained relatively similar over the course of the year, but strong stock
selection was an important contributor to its favorable relative performance.
During the fiscal year, the Fund initiated positions in several companies
competing in the generic pharmaceutical, medical device, managed care and
biotech industries. Strong contributors to overall performance included
Illumina, Inc., Hologic Inc. and Myogen, Inc.

The Consumer Discretionary sector average weight of 15.0% was in line with
the benchmark weight of 15.3%, but its stock performance considerably
outperformed the index return. Several specialty and internet retailers were
among the stronger performers in this group, including Gymboree Corp., AnnTaylor
Stores, Inc. and priceline.com Inc.

The Industrials sector had an average weight of 13.4% during the year that
represented an underweighting versus the average benchmark weighting of 15.9%.
In addition, the Fund's holdings in this sector slightly underperformed the
benchmark return, but among the stronger performers were Bucyrus Intl. Inc.,
Gardner Denver, Inc. and BE Aerospace Inc.

The Fund's Energy sector weighting has been somewhat below the benchmark
at about 7.1% of Fund assets. However, the Fund's stock selection returns
exceeded the index as the primary exposure has generally been in the better
performing oil and gas exploration and production companies as well as in the
offshore drillers.

ALGER MIDCAP GROWTH INSTITUTIONAL FUND

The Alger MidCap Growth Institutional Fund provided shareholders with a
9.47% return during the twelve months ended October 31, 2006. This compared
unfavorably to the Fund's benchmark, the Russell MidCap Growth Index(v), which
gained 14.51% during the same period. Stock selection was the primary factor
most responsible for the underperformance as overall sector allocation was
reasonably neutral.

The Fund's largest average sector exposure during the year was in
Information Technology with an average weighting of 23.0%. This exposure to the
tech sector exceeded the average benchmark weighting of 20.5%. Over the course
of the year,

-4-

the weighting in Information Technology was reduced as many of the Fund's
holdings either achieved favorable price targets or were sold because the
ongoing fundamentals did not meet our expectations. While stock selection fell
slightly below the index as earnings shortfalls and the impact of the options
backdating investigations negatively impacted several Fund holdings, there were
many strong performers including Western Digital, Inc., Garmin, Inc. and
Business Objects, S.A.

The Fund's next largest average exposure was to the Health Care sector.
The sector's average weighting during the year was 17.9%, somewhat above the
index exposure of 15.9%; however, the Fund's holdings provided a return that was
below the benchmark's return. This sector had both strong contributors to
overall performance as well as several negative detractors. Stocks that
performed well during the fiscal year included Myogen, Inc., Wellcare Group,
Inc. and Cephalon, Inc. Stocks that detracted from overall performance included
Tenet Healthcare, Syneron Medical Ltd. and HealthExtras, Inc.

The Consumer Discretionary sector had an average sector weight less than
the benchmark and stock performance that was considerably below the benchmark.
While several stocks in this sector performed well, including Nintendo, Hansen
Natural and GameStop, the primary weakness was caused by holdings in XM
Satellite Radio and Netflix.

The Industrials sector had an average weight of 11.8% during the year that
represented a modest underweight versus the average benchmark weighting of
13.7%. The performance of the Fund's holdings in this sector exceeded the
benchmark with strong gains posted by Jacobs Engineering, Inc., Roper Industries
and Joy Global, Inc. On the other hand, the Fund's exposure to the Energy sector
exceeded that of the index and stock performance was also slightly positive, led
by Valero Energy, Inc., and Peabody Energy, Inc.

ALGER LARGECAP GROWTH INSTITUTIONAL FUND

The Alger LargeCap Growth Institutional Fund posted a positive return of
5.82% for the twelve months ended October 31, 2006. This compared unfavorably to
the Fund's benchmark, the Russell 1000 Growth Index(vi), which gained 10.86%
during the same period.

The Fund's largest average sector exposure during the year was in
Information Technology with an average weighting of 23.7%. This exposure to the
tech sector was less than the average benchmark weighting of 25.9%. However, our
stock selection in the tech sector was strong during the fiscal year as the
Fund's holdings had an average return of 22.4% compared to the benchmark sector
return of 9.4%. Among the stocks that performed well were Apple Computer, Google
and Cisco Systems.

Health Care was the Fund's second largest sector with a 14.0% weight
although it was significantly underweighted versus the benchmark weight of
18.8%. The relatively lackluster returns provided by the major pharmaceutical
companies weighed heavily on the entire sector although several major biotech
and medical device companies performed well. The Fund's stock selection lagged
the benchmark as stocks such as Tenet Healthcare, Aetna and Medtronic all
provided negative returns during the year. On the other hand, Humana, Inc.,
Gilead Sciences, Inc. and Johnson & Johnson all performed reasonably well.

-5-

The Consumer Discretionary sector had an average weighting 13.8%, slightly
below the benchmark weighting of 14.4%. Further, the Fund's holdings provided a
return that was well below the benchmark's return, primarily due to the poor
performance of XM Satellite Radio.

The overweight position in the Financials sector contributed to the Fund's
fiscal year return. During the year, Financials comprised 10.2% of Fund assets
compared to a 7.2% weighting in the benchmark. The primary exposure during most
of the year was to capital markets participants rather than to the commercial
banking industry. Strong performers in this sector included Goldman Sachs, Inc.,
Bear Stearns, Inc., Merrill Lynch & Company, Inc. and the Chicago Mercantile
Exchange Holdings, Inc.

ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND

The Alger Capital Appreciation Institutional Fund provided shareholders
with a 18.71% return during the twelve months ended October 31, 2006. This
compared favorably to the Fund's benchmark, the Russell 3000 Growth Index(vii),
which gained 11.39% during the same period. These favorable results were
achieved because of the combination of allocating assets to the correct sectors
as well as strong stock selection. The performance of the Fund's stock picks
exceeded those in every one of the major Russell sector groups.

During the fiscal year, the Fund's largest average exposure was in the
Information Technology sector. This sector accounted for an average of 25.3% of
the Fund's assets during the year and was in line with the index weighting of
25.7%. Also, the Fund's technology stock selection exceeded the benchmark's
return, 19.1% versus 9.9%. Several stocks importantly contributed to this
positive margin including ATI Technologies, Inc. (acquired by Advanced Micro
Devices), Google, Inc. and Atheros Communications, Inc.

The Fund's underweighted exposure to Health Care stocks was an important
contributor to overall performance. The sector's average weighting during the
year was well below the index and the Fund's holding performed better than the
benchmark's return. During the fiscal year, the Fund invested in many aspects of
the health care industry including companies in the pharmaceutical, generic
drug, medical device, managed care and biotech industries. Strong contributors
to overall performance included Myogen, Inc., Gilead Sciences Inc. and Hologic
Inc.

The Industrials sector had an average weight of 12.0% during the year that
represented a moderate underweighting versus the average benchmark weighting of
14.7%. The performance of the Fund's holdings in this sector was much stronger
than the benchmark, led by Terex Inc., Caterpillar Inc. and United Technologies.

In the Consumer Discretionary sector, the Fund's average sector weight was
below that of the benchmark, but its stock performance considerably outperformed
the benchmark. Among the stronger performers in this sector were Crocs Inc.,
Polo Ralph Lauren Corp., and CVS Corp.

-6-

oil and gas exploration and production companies as well as in the onshore and
offshore drillers. Stocks that were important contributors included Valero
Energy Corp., Peabody Energy Corp. and Exxon Mobil Corp.

ALGER BALANCED INSTITUTIONAL FUND

The Alger Balanced Institutional Fund provided shareholders with a 4.53%
return during the twelve months ended October 31, 2006. This compared
unfavorably to the Fund's benchmark, the Russell 1000 Growth Index, which gained
10.86% during the same period.

The Fund's largest average sector exposure during the year was in
Information Technology with an average weighting of 23.3%. This exposure to the
tech sector was less than the average benchmark weighting of 25.9%. However, our
stock selection in the tech sector was strong during the fiscal year as the
Fund's holdings had an average return of 19.2% compared to the benchmark sector
return of 9.4%. Among the stocks that performed well were Apple Computer, Google
and Cisco Systems.

Health Care was the Fund's second largest sector with a 13.5% weight
although it was significantly underweighted versus the benchmark weight of
18.8%. The relatively lackluster returns provided by the major pharmaceutical
companies weighed heavily on the entire sector although several major biotech
and medical device companies performed well. The Fund's stock selection lagged
the benchmark as stocks such as Tenet Healthcare, Aetna and Medtronic all
provided negative returns during the year. On the other hand, Humana, Inc.,
Gilead Sciences, Inc. and Johnson & Johnson all performed reasonably well.

The Consumer Discretionary sector had an average weighting of 13.4%,
somewhat below the benchmark weighting of 14.4%. Further, the Fund's holdings
provided a return that was well below the benchmark's return, primarily due to
the poor performance of XM Satellite Radio.

The overweight position in the Financials sector contributed to the Fund's
fiscal year return. During the year, Financials comprised 10.2% of Fund assets
compared to a 7.2% weighting in the benchmark. The primary exposure during most
of the year was to capital markets participants rather than to the commercial
banking industry. Several Fund holdings in this sector were among the stronger
performers including Goldman Sachs, Inc., Bear Stearns, Inc., Merrill Lynch &
Company, Inc. and the Chicago Mercantile Exchange Holdings, Inc.

The Fixed Income component of the Institutional Balanced Fund returned
4.63% for the 12 months ended October 31, 2006 versus the Lehman Brothers
Intermediate Government/Credit Bond Index(viii) return of 4.88%. During the
course of the year, the Federal Reserve ended its campaign of tighter monetary
policy as the economy slowed and signs of rising inflation expectations began to
abate. The effect of six 25 basis point increases in the overnight target
lending rate over the year caused an inversion in the U.S. Yield Curve as the 2
year Treasury yield rose 32 basis points and longer interest rates remained
relatively unchanged. Corporate returns outpaced Treasuries and U.S. Agency
returns on the heels of solid balance sheets and a relatively benign interest
rate environment.

-7-

ALGER CORE FIXED-INCOME INSTITUTIONAL FUND

The Alger Core Fixed-Income Institutional Fund returned 2.47% for the 8
months ended October 31, 2006 versus the Lehman Brothers Intermediate
Government/Credit Bond Index return of 3.50%. During the course of the year, the
Federal Reserve ended its campaign of tighter monetary policy as the economy
slowed and signs of rising inflation expectations began to abate. The effect of
six 25 basis point increases in the overnight target lending rate over the year
caused an inversion in the U.S. Yield Curve as 2 year Treasury yields rose 32
basis points and longer interest rates remained relatively unchanged. Corporate
returns outpaced Treasuries and U.S. Agency returns on the heels of solid
balance sheets and a relatively benign interest rate environment.

The Fund was liquidated on November 17, 2006.

ALGER TECHNOLOGY INSTITUTIONAL FUND

The Alger Technology Institutional Fund returned 0.80% for the 8
months(xi) ended October 31, 2006 versus the Merrill Lynch High Tech 100
Index(xii) return of 1.95%. Like the benchmark the Fund was heavily weighted
towards information technology. At an average weight of 89.15% the Fund was
underweight to the benchmark and under-performed. Leading detractors included
Multi-Fineline Electronix, Inc., one of the largest US based flex circuit
manufacturers, and Secure Computing Corp., a leading developer of Internet
security products. The Fund had minor weightings (less than 7% in total) in the
health care, industrials, consumer discretionary, and telecommunications
sectors. In each of these sectors the Fund outperformed the benchmark.

The Fund was liquidated on November 17, 2006.

ALGER GREEN INSTITUTIONAL FUND(ix)

The Alger Green Institutional Fund provided shareholders with an 18.88%
return during the twelve months ended October 31, 2006. This compared favorably
to the Fund's benchmark, the Russell 3000 Growth Index, which gained 11.39%
during the same period. These favorable results were achieved because of the
combination of allocating assets to the correct sectors as well as strong stock
selection. The performance of the Fund's stock picks exceeded those in every one
of the major Russell sector groups.

During the fiscal year, the Fund's largest average exposure and most
favorable stock selection was in the Information Technology sector. This sector
accounted for an average of 27.6% of the Fund's assets during the year and was
in line with the index weighting of 25.7%. Also, the Fund's technology stock
selection exceeded the benchmark's return, 16.7% versus 9.9%. Several stocks
importantly contributed to this positive margin including ATI Technologies, Inc.
(acquired by Advanced Micro Devices), Google, Inc. and Atheros Communications,
Inc.

The Fund's underweighted exposure to Health Care stocks was an important
contributor to overall performance. The sector's average weighting during the
year was well below the index and the Fund's holding performed in line with the
benchmark's return. During the fiscal year, the Fund invested in all aspects of
the health care industry, including companies in the pharmaceutical, generic
drug, medical device, managed care and biotech industries. Strong contributors
to overall performance included Myogen, Inc., Gilead Sciences Inc. and Hologic
Inc.

-8-

The Industrials sector had an average weight of 7.4% during the year that
represented a substantial underweighting versus the average benchmark weighting
of 14.7%. The performance of the Fund's holdings in this sector was much
stronger than the benchmark, led by Terex Inc., Caterpillar Inc. and Roper
Industries.

In the Consumer Discretionary sector, the Fund's average sector weight was
below that of the benchmark, but its stock performance outperformed the
benchmark. Among the stronger performers in this sector were Crocs Inc., Polo
Ralph Lauren Corp., and Focus Media Holdings Ltd.

The Energy sector is not a major component of the Russell 3000 Growth
Index, comprising only 4.3% of the benchmark. The Fund's energy exposure was
greater than the Index averaging 9.1% over the course of the fiscal year. In
addition, the Fund's stock selection returns broadly exceeded the index return
as its exposure has been in the oil and gas exploration and production companies
as well as in the onshore and offshore drillers. Stocks that were important
contributors included Transocean Corp., Peabody Energy Corp. and Schlumberger.

IN SUMMARY

Shakespeare's THE TEMPEST ended with kings and navigators leaving an old,
brittle world behind, and looking towards a new world of possibilities and
rewards. We are all in that position today, heading towards an uncertain future
laden with unknowns and opportunities. At Alger, we are as passionate about
investing and about discovering innovative, dynamic companies as we have been
for the past four decades. And as the year comes to a close, we thank you for
the trust you place in us and for joining us as we explore this brave new world.

Respectfully submitted,

/s/ Daniel C. Chung /s/ Zachary Karabell
Daniel C. Chung Zachary Karabell
CHIEF INVESTMENT OFFICER CHIEF ECONOMIST

- ----------
(i) The Dow Jones Industrial Average is an index of common stocks comprised
of major industrial companies and assumes reinvestment of dividends. It
is frequently used as a general measure of stock market performance.

(ii) Standard & Poor's 500 Index is an index of the 500 largest and most
profitable companies in the United States.

(iii) Nasdaq is an index of 4000 domestic and non-U.S. companies listed on
the Nasdaq stock market.

(iv) Russell 2000 Growth Index is an unmanaged index designed to measure the
performance of those Russell 2000 Index companies with higher
price-to-book ratios and higher forecasted growth values.

(v) Russell MidCap Growth Index is an unmanaged index designed to measure
the performance of those Russell Midcap companies with higher
price-to-book ratios and higher forecasted growth values.

(vi) Russell 1000 Growth Index is an unmanaged index designed to measure the
performance of those Russell 1000 Index companies with higher
price-to-book ratios and higher forecasted growth values.

-9-

(vii) Russell 3000 Growth Index is an unmanaged index designed to measure the
performance of those Russell 3000 Index companies with higher
price-to-book ratios and higher forecasted growth values.

(viii) Lehman Brothers Intermediate Government/Credit Bond Index is an index
designed to track performance of intermediate government and corporate
bonds.

(ix) On October 19, 2006 the Alger Socially Responsible Institutional Fund
changed its name to the Alger Green Institutional Fund.

(x) The inception date of the Alger Core Fixed-Income Institutional Fund
was March 1, 2006.

(xi) The inception date of the Alger Technology Institutional Fund was March
1, 2006.

(xii) The Merrill Lynch High Tech 100 Index is a modified
capitalization-weighted index based on a universe of technology-related
stocks.

Investors can not invest directly in an index.

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. Fund returns represent
the annual return of Class I shares.

The views and opinions of the Fund's management in this report are as of
the date of the shareholder letter and are subject to change at any time. There
is no guarantee that any of the assumptions that formed the basis for the
opinions stated herein are accurate or that they will materialize. Moreover, the
information forming the basis for such assumptions is from sources believed to
be reliable, however, there is no guarantee that such information is accurate.
Any securities mentioned, whether owned in a portfolio or otherwise, are
considered in the context of the construction of an overall portfolio of
securities and therefore reference to them should not be construed as a
recommendation or offer to purchase or sell any such security. Inclusion of such
securities in a portfolio and transactions in such securities, if any, may be
for a variety of reasons, including without limitation, in response to cash
flows, inclusion in a benchmark and risk control. The reference to a specific
security should also be understood in such context and not viewed as a statement
that the security is a significant holding in a portfolio. Please refer to the
Schedule of Investments for each fund which is included in this report for a
complete list of fund holdings as of October 31, 2006.

A WORD ABOUT RISK

Growth stocks tend to be more volatile than other stocks as the price of
growth stocks tends to be higher in relation to their companies' earnings and
may be more sensitive to market, political and economic developments. Stocks of
small- and mid-sized companies are subject to greater risk than stocks of
larger, more established companies owing to such factors as limited liquidity,
inexperienced management, and limited financial resources. Funds that invest in
fixed-income securities, such as the Balanced Institutional Fund and Core
Fixed-Income Institutional Fund, are subject to the fixed-income securities'
sensitivity to interest rate movements; their market values tend to fall when
interest rates rise and to rise when interest rates fall. These portfolios are
also subject to the risk of a decline in the value of the portfolio's securities
in the event of an issue's falling credit rating or actual default. Funds that
participate in leveraging, such as the, Capital Appreciation Institutional Fund
and Technology Institutional Fund, are subject to the risk that borrowing money
to leverage will exceed the returns for securities purchased or that the
securities purchased may actually go down in value;

-10-

thus, the portfolio's net asset value can decrease more quickly than if the
portfolio had not borrowed. For a more detailed discussion of the risks
associated with a Fund, please see the Fund's Prospectus.

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.

BEFORE INVESTING IN ANY PORTFOLIO IN THE ALGER INSTITUTIONAL FUNDS,
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVE, RISKS AND CHARGES AND
EXPENSES CAREFULLY. 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) 992-3863, OR VISITING OUR WEBSITE AT WWW.ALGER.COM, OR CONTACTING THE
FUND'S DISTRIBUTOR, FRED ALGER & COMPANY, INCORPORATED, 111 FIFTH AVENUE, NEW
YORK, NY 10003. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.

-11-

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ALGER LARGECAP GROWTH INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------

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$10,000 HYPOTHETICAL INVESTMENT IN CLASS I SHARES--10 YEARS ENDED 10/31/06
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger LargeCap Growth
Institutional Class I Russell 1000 Growth Index
11/1/1996 $10,000 $10,000
10/31/1997 $12,884 $13,046
10/31/1998 $16,159 $16,260
10/31/1998 $22,945 $21,829
10/31/2000 $25,302 $23,865
10/31/2001 $18,338 $14,335
10/31/2002 $13,718 $11,523
10/31/2003 $16,887 $14,036
10/31/2004 $17,124 $14,511
10/31/2005 $19,804 $15,792
10/31/2006 $20,957 $17,507

The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Alger LargeCap Growth Institutional Class I shares and
the Russell 1000 Growth Index (an unmanaged index of common stocks) for the ten
years ended October 31, 2006. The figures for the Alger LargeCap Growth
Institutional Class I shares and the Russell 1000 Growth Index include
reinvestment of dividends. Performance for the Alger LargeCap Growth
Institutional Class R shares may vary from the results shown above due to
differences in expenses the class bears.

- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON AS OF OCTOBER 31, 2006
- --------------------------------------------------------------------------------

AVERAGE ANNUAL RETURNS
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
----------------------------------------------
Class I (INCEPTION 11/8/93) ... 5.82% 2.71% 7.68% 9.44%
Russell 1000 Growth Index ..... 10.86% 4.08% 5.76% 8.51%
- --------------------------------------------------------------------------------
Class R (INCEPTION 1/27/03) ... 5.25% -- -- 13.41%
Russell 1000 Growth Index ..... 10.86% -- -- 12.94%
- --------------------------------------------------------------------------------

THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NOT AN
INDICATION OR A GUARANTEE OF FUTURE RESULTS. THE FUND'S AVERAGE ANNUAL TOTAL
RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL
GAINS. THE GRAPH AND TABLE ABOVE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD HAVE PAID ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND
SHARES. INVESTMENT RETURN AND PRINCIPAL WILL FLUCTUATE AND THE FUND'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.ALGER.COM OR CALL US AT
(800) 992-3863.

-12-

- --------------------------------------------------------------------------------
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger SmallCap Growth
Institutional Class I Russell 2000 Growth Index
11/1/1996 $10,000 $10,000
10/31/1997 $11,900 $12,117
10/31/1998 $11,688 $10,197
10/31/1999 $17,851 $13,183
10/31/2000 $19,646 $15,313
10/31/2001 $11,029 $10,488
10/31/2002 $ 9,063 $ 8,227
10/31/2003 $12,475 $12,055
10/31/2004 $13,277 $12,722
10/31/2005 $16,499 $14,109
10/31/2006 $19,812 $16,518

The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Alger SmallCap Growth Institutional Class I shares and
the Russell 2000 Growth Index (an unmanaged index of common stocks) for the ten
years ended October 31, 2006. The figures for the Alger SmallCap Growth
Institutional Class I shares and the Russell 2000 Growth Index include
reinvestment of dividends. Performance for the Alger SmallCap Growth
Institutional Class R shares may vary from the results shown above due to
differences in expenses the class bears.

AVERAGE ANNUAL RETURNS
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
---------------------------------------------
Class I (INCEPTION 11/8/93) ... 20.08% 12.43% 7.08% 11.04%
Russell 2000 Growth Index ..... 17.08% 9.51% 5.15% 6.47%
- --------------------------------------------------------------------------------
Class R (INCEPTION 1/27/03) ... 19.45% -- -- 23.29%
Russell 2000 Growth Index ..... 17.08% -- -- 20.37%
- --------------------------------------------------------------------------------

-13-

- --------------------------------------------------------------------------------
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger MidCap Growth
Institutional Class I Russell MidCap Growth Index
11/1/1996 $10,000 $10,000
10/31/1997 $12,858 $12,461
10/31/1998 $14,337 $12,763
10/31/1998 $20,414 $17,571
10/31/2000 $30,883 $24,365
10/31/2001 $24,538 $13,941
10/31/2002 $19,792 $11,436
10/31/2003 $27,187 $16,000
10/31/2004 $28,290 $17,404
10/31/2005 $32,807 $20,170
10/31/2006 $35,913 $23,096

The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Alger MidCap Growth Institutional Class I shares and the
Russell Midcap Growth Index (an unmanaged index of common stocks) for the ten
years ended October 31, 2006. Figures for the Alger MidCap Growth Institutional
Class I shares and the Russell Midcap Growth Index include reinvestment of
dividends. Performance for the Alger MidCap Growth Institutional Class R shares
may vary from the results shown above due to differences in expenses the class
bears.

AVERAGE ANNUAL RETURNS
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
---------------------------------------------
Class I (INCEPTION 11/8/93) ... 9.47% 7.92% 13.64% 15.98%
Russell Midcap Growth Index ... 14.51% 10.63% 8.73% 10.10%
- --------------------------------------------------------------------------------
Class R (INCEPTION 1/27/03) ... 9.04% -- -- 18.12%
Russell Midcap Growth Index ... 14.51% -- -- 20.25%
- --------------------------------------------------------------------------------

-14-

- --------------------------------------------------------------------------------
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger Capital Appreciation
Institutional Class I Russell 3000 Growth Index
11/1/1996 $10,000 $10,000
10/31/1997 $12,607 $12,964
10/31/1998 $16,151 $15,607
10/31/1999 $29,773 $20,898
10/31/2000 $33,686 $22,947
10/31/2001 $21,757 $13,919
10/31/2002 $16,738 $11,171
10/31/2003 $20,637 $13,778
10/31/2004 $20,619 $14,264
10/31/2005 $24,780 $15,546
10/31/2006 $29,416 $17,316

The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Alger Capital Appreciation Institutional Class I shares
and the Russell 3000 Growth Index (an unmanaged index of common stocks) for the
ten years ended October 31, 2006. Figures for the Alger Capital Appreciation
Institutional Class I shares and the Russell 3000 Growth Index include
reinvestment of dividends. Performance for the Alger Capital Appreciation
Institutional Class R shares may vary from the results shown above due to
differences in expenses the class bears.

AVERAGE ANNUAL RETURNS
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
---------------------------------------------

Class I shares (INCEPTION 11/8/93) .... 18.71% 6.22% 11.39% 12.95%
Russell 3000 Growth Index ............. 11.39% 4.46% 5.64% 8.34%
- --------------------------------------------------------------------------------------
Class R shares (INCEPTION 1/27/03) .... 18.18% -- -- 17.76%
Russell 3000 Growth Index ............. 11.39% -- -- 13.47%
- --------------------------------------------------------------------------------------

-15-

- --------------------------------------------------------------------------------
ALGER BALANCED INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
$10,000 HYPOTHETICAL INVESTMENT SINCE INCEPTION DECEMBER 4, 2000
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger Balanced Russell 1000 Lehman Brothers Int.
Institutional Class I Growth Index Gov't/Credit Bond Index
12/4/2000 $10,000 $10,000 $10,000
10/31/2001 $ 8,200 $ 7,067 $11,139
10/31/2002 $ 6,670 $ 5,680 $11,749
10/31/2003 $ 7,410 $ 6,919 $12,475
10/31/2004 $ 7,504 $ 7,154 $13,172
10/31/2005 $ 8,258 $ 7,785 $13,280
10/31/2006 $ 8,632 $ 8,630 $14,206

The chart above illustrates the change in value of a hypothetical $10,000
investment made in the Alger Balanced Institutional Class I shares, the Russell
1000 Growth Index (an unmanaged index of common stocks) and the Lehman Brothers
Intermediate Gov't/Credit Bond Index (an unmanaged index of government and
corporate bonds) on December 4, 2000, the inception date of the Alger Balanced
Institutional Class I shares, through October 31, 2006. Figures for the Alger
Balanced Institutional Class I shares, the Russell 1000 Growth Index and the
Lehman Brothers Intermediate Gov't/Credit Bond Index include reinvestment of
dividends and/or interest. Performance for the Alger Balanced Institutional
Class R shares may vary from the results shown above due to differences in
expenses the class bears.

AVERAGE ANNUAL RETURNS
1 YEAR SINCE INCEPTION
--------------------------
Class I shares (INCEPTION 12/4/00) ............... 4.53% (2.46)%
Russell 1000 Growth Index ........................ 10.86% (2.46)%
Lehman Brothers Int. Gov't/Credit Bond Index ..... 4.87% 6.12%
- --------------------------------------------------------------------------------
Class R shares (INCEPTION 1/27/03) ............... 3.66% 7.49%
Russell 1000 Growth Index ........................ 10.86% 12.94%
Lehman Brothers Int. Gov't/Credit Bond Index ..... 4.87% 3.91%
- --------------------------------------------------------------------------------

THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NOT AN
INDICATION OR A GUARANTEE OF FUTURE RESULTS. THE FUND'S AVERAGE ANNUAL TOTAL
RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL
GAINS. THE GRAPH AND TABLE ABOVE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD HAVE PAID ON THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN
AND PRINCIPAL WILL FLUCTUATE AND THE FUND'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE HIGHER OR
LOWER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE CURRENT TO THE MOST RECENT
MONTH END, VISIT US AT WWW.ALGER.COM OR CALL US AT (800) 992-3863.

-16-

- --------------------------------------------------------------------------------
ALGER GREEN INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
Prior to October 19, 2006, the Alger Green Institutional Fund was the Alger
Socially Responsible Growth Institutional Fund.
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger Green Institutional Class I Russell 3000 Growth Index
12/4/2000 $10,000 $10,000
10/31/2001 $ 6,370 $ 7,305
10/31/2002 $ 4,430 $ 5,863
10/31/2003 $ 5,380 $ 7,232
10/31/2004 $ 5,396 $ 7,487
10/31/2005 $ 6,463 $ 8,159
10/31/2006 $ 7,634 $ 9,089

The chart above illustrates the change in value of a hypothetical $10,000
investment made in the Alger Green Institutional Class I shares and the Russell
3000 Growth Index (an unmanaged index of common stocks) on December 4, 2000, the
inception date of the Alger Green Institutional Class I shares, through October
31, 2006. Figures for the Alger Green Institutional Class I shares and the
Russell 3000 Growth Index include reinvestment of dividends. Performance for the
Alger Green Institutional Class R shares may vary from the results shown above
due to differences in expenses the class bears.

AVERAGE ANNUAL RETURNS
1 YEAR 5 YEARS SINCE INCEPTION
-----------------------------------
Class I (INCEPTION 12/4/00) ............. 18.88% 3.82% (4.36)%
Russell 3000 Growth Index ............... 11.39% 4.46% (1.60)%
- --------------------------------------------------------------------------------
Class R (INCEPTION 1/27/03) ............. 18.44% -- 17.42%
Russell 3000 Growth Index ............... 11.39% -- 13.47%
- --------------------------------------------------------------------------------

THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NOT AN
INDICATION OR A GUARANTEE OF FUTURE RESULTS. THE FUND'S AVERAGE ANNUAL TOTAL
RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL
GAINS. THE GRAPH AND TABLE ABOVE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD HAVE PAID ON THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN
AND PRINCIPAL WILL FLUCTUATE AND THE FUND'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE HIGHER OR
LOWER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE CURRENT TO THE MOST RECENT
MONTH END, VISIT US AT WWW.ALGER.COM OR CALL US AT (800) 992-3863.

-17-

- --------------------------------------------------------------------------------
ALGER TECHNOLOGY INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
$10,000 HYPOTHETICAL INVESTMENT SINCE INCEPTION MARCH 1, 2006
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger Technology Merrill Lynch
Institutional Class I High Tech 100 Index
3/1/2006 $10,000 $10,000
10/31/2006 $10,080 $10,195

The chart above illustrates the change in value of a hypothetical $10,000
investment made in the Alger Technology Institutional Class I shares and the
Merrill Lynch High Tech 100 Index (an unmanaged index of common stocks) on March
1, 2006, the inception date of the Alger Technology Institutional Class I
shares, through October 31, 2006. Figures for the Alger Technology Institutional
Class I shares and the Merrill Lynch High Tech 100 Index include reinvestment of
dividends. Performance for the Alger Technology Institutional Class R shares may
vary from the results shown above due to differences in expenses the class
bears.

SINCE INCEPTION
----------------
Class I (INCEPTION 3/1/06) .................................. 0.80%
Merrill Lynch High Tech 100 Index ........................... 1.95%
- --------------------------------------------------------------------------------
Class R (INCEPTION 3/1/06) .................................. 0.40%
Merrill Lynch High Tech 100 Index ........................... 1.95%
- --------------------------------------------------------------------------------

THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NOT AN
INDICATION OR A GUARANTEE OF FUTURE RESULTS. THE FUND'S AVERAGE ANNUAL TOTAL
RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL
GAINS. THE GRAPH AND TABLE ABOVE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD HAVE PAID ON THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN
AND PRINCIPAL WILL FLUCTUATE AND THE FUND'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE HIGHER OR
LOWER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE CURRENT TO THE MOST RECENT
MONTH END, VISIT US AT WWW.ALGER.COM OR CALL US AT (800) 992-3863.

-18-

- --------------------------------------------------------------------------------
ALGER CORE FIXED-INCOME INSTITUTIONAL FUND
FUND HIGHLIGHTS THROUGH OCTOBER 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH]

Alger Core Fixed-Income Lehman Brothers Int.
Institutional Class I Gov't/Credit Bond Index
3/1/2006 $10,000 $10,000
10/31/2006 $10,247 $10,350

The chart above illustrates the change in value of a hypothetical $10,000
investment made in the Alger Core Fixed-Income Institutional Class I shares and
the Lehman Brothers Intermediate Gov't/Credit Bond Index (an unmanaged index of
government and corporate bonds) on March 1, 2006, the inception date of the
Alger Core Fixed-Income Institutional Class I shares, through October 31, 2006.
Figures for the Alger Core Fixed-Income Institutional Class I shares and the
Lehman Brothers Intermediate Gov't/Credit Bond Index include reinvestment of
dividends. Performance for the Alger Core Fixed-Income Institutional Class R
shares may vary from the results shown above due to differences in expenses the
class bears.

SINCE INCEPTION
----------------
Class I (INCEPTION 3/1/06) .................................. 2.47%
Lehman Brothers Int. Gov't/Credit Bond Index ................ 3.50%
- --------------------------------------------------------------------------------
Class R (INCEPTION 3/1/06) .................................. 2.03%
Lehman Brothers Int. Gov't/Credit Bond Index ................ 3.50%
- --------------------------------------------------------------------------------

THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NOT AN
INDICATION OR A GUARANTEE OF FUTURE RESULTS. THE FUND'S AVERAGE ANNUAL TOTAL
RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL
GAINS. THE GRAPH AND TABLE ABOVE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD HAVE PAID ON THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN
AND PRINCIPAL WILL FLUCTUATE AND THE FUND'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE HIGHER OR
LOWER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE CURRENT TO THE MOST RECENT
MONTH END, VISIT US AT WWW.ALGER.COM OR CALL US AT (800) 992-3863.

-19-

PORTFOLIO SUMMARY* (UNAUDITED)

LARGECAP SMALLCAP MIDCAP CAPITAL
GROWTH GROWTH GROWTH APPRECIATION GREEN TECHNOLOGY
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
SECTORS FUND FUND FUND FUND FUND FUND
- ------- ------------- ------------- ------------- -------------- ------------- -------------

Consumer Discretionary .......... 14.1% 15.9% 20.8% 11.4% 14.4% 13.2%
Consumer Staples ................ 5.7 1.2 0.2 6.4 4.7 --
Energy .......................... 5.7 7.6 7.5 9.9 9.8 --
Financials ...................... 10.3 8.1 9.3 5.4 5.4 --
Health Care ..................... 16.0 20.9 19.5 12.8 11.5 2.1
Industrials ..................... 9.3 13.1 13.2 15.8 9.4 --
Information Technology .......... 27.9 20.7 20.1 24.6 25.1 78.8
Materials ....................... 3.9 1.8 2.9 3.5 3.5 --
Telecommunication Services ...... 4.0 3.1 2.9 7.8 9.0 --
Utilities ....................... 2.3 0.5 1.1 1.1 1.1 --
Cash and Net Other Assets ....... 0.8 7.1 2.5 1.3 6.1 5.9
------ ------ ------ ------ ------ ------
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ====== ====== ======

CORE
BALANCED FIXED-INCOME
INSTITUTIONAL INSTITUTIONAL
SECTORS/SECURITY TYPE FUND FUND
- --------------------- ------------- -------------

Consumer Discretionary ......................................................... 10.8% --
Consumer Staples ............................................................... 3.5 --
Energy ......................................................................... 4.0 --
Financials ..................................................................... 7.4 --
Health Care .................................................................... 9.6 --
Industrials .................................................................... 6.7 --
Information Technology ......................................................... 19.8 --
Materials ...................................................................... 2.0 --
Telecommunication Services ..................................................... 2.9 --
Utilities ...................................................................... 1.4 --
------ ------
Total Common Stocks ......................................................... 68.1% --
------ ------
Corporate Bonds ................................................................ -- --
Agency Bonds ................................................................... -- --
US Treasury Bonds .............................................................. -- --
------ ------
Total Bonds ................................................................. -- --
------ ------

Cash and Net Other Assets ...................................................... 31.9% 100.0%
------ ------
100.0% 100.0%
====== ======

- ----------
* Based on net assets for each Fund.

-20-

THE ALGER INSTITUTIONAL FUNDS
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS--99.2%
AEROSPACE & DEFENSE--2.6%
13,900 Boeing Company. ............................ $ 1,110,054
22,350 L-3 Communications Holdings, Inc. .......... 1,799,622
---------------
2,909,676
---------------
BIOTECHNOLOGY--4.0%
37,190 Amgen Inc. ................................. 2,823,093
20,150 Genentech, Inc.* ........................... 1,678,495
---------------
4,501,588
---------------
BROADCASTING--1.0%
30,000 EchoStar Communications Corp., Cl. A* ...... 1,065,600
---------------
CAPITAL MARKETS--3.2%
10,900 Bear Stearns Companies Inc. ................ 1,649,715
10,250 Goldman Sachs Group, Inc. .................. 1,945,347
---------------
3,595,062
---------------
CHEMICALS--1.0%
16,450 Air Products and Chemicals, Inc. ........... 1,146,071
---------------
COMMUNICATION EQUIPMENT--5.8%
103,300 Cisco Systems, Inc.* ....................... 2,492,629
53,650 Motorola, Inc. ............................. 1,237,169
15,200 QUALCOMM Inc. .............................. 553,128
18,350 Research In Motion Limited* ................ 2,155,758
---------------
6,438,684
---------------
COMPUTER SERVICES--1.5%
76,850 Satyam Computer Services ADR# .............. 1,699,154
---------------
COMPUTERS & PERIPHERALS--4.7%
29,250 Apple Computer, Inc.* ...................... 2,371,590
45,050 EMC Corporation* ........................... 551,862
65,600 Memc Electronic Materials, Inc.* ........... 2,328,800
---------------
5,252,252
---------------
CONGLOMERATE--1.3%
25,650 ITT Industries, Inc. ....................... 1,395,103
---------------
EDUCATION--.6%
12,700 Laureate Education Inc.* ................... 669,544
---------------
ELECTRIC UTILITIES--.8%
13,700 Exelon Corporation ......................... 849,126
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.5%
19,500 Emerson Electric Co. ....................... 1,645,800
---------------
ELECTRONICS--2.0%
64,700 Nintendo Co., Ltd. ADR# .................... 1,651,254
13,400 SONY CORPORATION ........................... 549,132
---------------
2,200,386
---------------

-21-

THE ALGER INSTITUTIONAL FUNDS
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
ENERGY EQUIPMENT & SERVICES--5.1%
31,300 National-Oilwell Varco Inc.* ............... $ 1,890,520
27,150 Schlumberger Limited ....................... 1,712,622
28,100 Transocean Inc.* ........................... 2,038,374
---------------
5,641,516
---------------
FINANCE--.6%
7,600 Intercontinental Exchange Inc. * ........... 641,592
---------------
FINANCIAL SERVICES--3.6%
2,250 Chicago Mercantile Exchange Holdings Inc. .. 1,127,250
69,150 Hong Kong Exchanges & Clearing Limited ..... 547,615
2,844,700 Industrial and Commercial Bank Of China* ... 1,272,677
18,250 UBS AG ..................................... 1,092,080
---------------
4,039,622
---------------
FOOD & STAPLES RETAILING--1.5%
37,350 CVS Corporation ............................ 1,172,043
8,650 Whole Foods Market, Inc. ................... 552,216
---------------
1,724,259
---------------
HEALTH & PERSONAL CARE--.7%
16,400 Brookdale Senior Living Inc. ............... 789,168
---------------
HEALTH CARE--.8%
10,950 WellPoint Inc. * ........................... 835,704
---------------
HEALTH CARE EQUIPMENT & SUPPLIES--2.2%
19,650 Baxter International Inc. .................. 903,310
15,200 Biomet, Inc. ............................... 575,168
10,100 Intuitive Surgical, Inc.* .................. 1,001,718
---------------
2,480,196
---------------
HEALTH CARE PROVIDERS & SERVICES--6.3%
12,350 DaVita, Inc.* .............................. 687,030
48,900 Health Management Associates, Inc. Cl. A ... 963,330
12,450 Health Net Inc.* ........................... 516,800
26,050 Humana Inc.* ............................... 1,563,000
22,000 McKesson Corporation ....................... 1,101,980
42,150 Medco Health Solutions, Inc.* .............. 2,255,025
---------------
7,087,165
---------------
HOTELS, RESTAURANTS & LEISURE--2.0%
14,850 Las Vegas Sands Corp.* ..................... 1,131,570
28,250 Royal Caribbean Cruises Ltd. ............... 1,144,125
---------------
2,275,695
---------------
HOUSEHOLD PRODUCTS--2.0%
34,400 Procter & Gamble Company ................... 2,180,616
---------------
INFORMATION TECHNOLOGY SERVICES--.5%
7,350 Cognizant Technology Solutions Corporation
Cl. A* ..................................... 553,308
---------------

-22-

THE ALGER INSTITUTIONAL FUNDS
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
INSURANCE--1.5%
18,650 Hartford Financial Services Group, Inc.
(The) .................................... $ 1,625,721
---------------
INTERNET & CATALOG RETAIL--2.8%
95,500 eBay Inc.* ................................. 3,068,415
---------------
INTERNET SOFTWARE & SERVICES--4.4%
5,350 Google Inc. Cl. A* ......................... 2,548,687
91,700 Yahoo! Inc. * .............................. 2,415,378
---------------
4,964,065
---------------
MACHINERY--1.2%
34,350 Joy Global Inc. ............................ 1,343,429
---------------
MEDIA--5.3%
67,550 Cablevision Systems New York Group Cl.
A * ...................................... 1,877,214
26,550 Disney (Walt) Company ...................... 835,263
21,800 Viacom Inc. Cl. B New* ..................... 848,456
201,600 XM Satellite Radio Holdings Inc. Cl. A* .... 2,350,656
---------------
5,911,589
---------------
METALS & MINING--3.6%
22,150 Cameco Corporation ......................... 778,129
20,550 Freeport-McMoRan Copper & Gold, Inc.
Cl. B .................................... 1,242,864
6,000 Phelps Dodge Corporation ................... 602,280
50,550 Vedanta Resources Plc ...................... 1,409,774
---------------
4,033,047
---------------
MULTILINE RETAIL--1.7%
44,100 Federated Department Stores, Inc. .......... 1,936,431
---------------
PERSONAL PRODUCTS--.7%
26,900 Avon Products, Inc. ........................ 818,029
---------------
PHARMACEUTICALS--2.0%
19,550 Eli Lilly and Company ...................... 1,094,996
16,750 Johnson & Johnson .......................... 1,128,950
---------------
2,223,946
---------------
REAL ESTATE--1.4%
17,500 Jones Lang LaSalle Incorporated ............ 1,610,000
---------------
ROAD & RAIL--1.0%
14,350 Burlington Northern Santa Fe Corporation ... 1,112,555
---------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT--2.1%
35,950 Freescale Semiconductor Inc. Cl. A* ........ 1,415,351
19,400 KLA-Tencor Corporation ..................... 953,898
---------------
2,369,249
---------------
SOFTWARE--4.3%
79,300 Microsoft Corporation ...................... 2,276,703
74,600 Oracle Corporation* ........................ 1,377,862
58,100 Symantec Corporation* ...................... 1,152,704
---------------
4,807,269
---------------

-23-

THE ALGER INSTITUTIONAL FUNDS
ALGER LARGECAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
SPECIALTY RETAIL--1.7%
19,550 Best Buy Co., Inc. ......................... $ 1,080,138
22,200 Home Depot, Inc. ........................... 828,726
---------------
1,908,864
---------------
TEXTILES, APPAREL & LUXURY GOODS--1.3%
22,000 Coach, Inc.* ............................... 872,080
8,450 Polo Ralph Lauren Corporation Cl. A ........ 599,950
---------------
1,472,030
---------------
TOBACCO--1.5%
20,900 Altria Group, Inc. ......................... 1,699,797
---------------
TRANSPORTATION--1.8%
22,250 Textron Inc. ............................... 2,023,193
---------------
UTILITIES--1.6%
28,800 Veolia Environnement ....................... 1,762,560
---------------
WIRELESS TELECOMMUNICATION SERVICES--4.0%
22,800 American Tower Corporation Cl. A* .......... 821,256
22,100 NII Holdings Inc. Cl. B* ................... 1,437,163
41,450 SBA Communications Corporation Cl. A* ...... 1,107,130
59,900 Sprint Nextel Corporation .................. 1,119,531
---------------
4,485,080
---------------
Total Common Stocks
(Cost $104,319,325) ...................... 110,792,156
---------------

PRINCIPAL
AMOUNT
- --------------
SHORT-TERM INVESTMENTS--.7%
U.S. AGENCY OBLIGATIONS
$ 820,000 Federal National Mortgage Association,
4.95%, 11/1/06
(Cost $820,000) .......................... 820,000
---------------

Total Investments
(Cost $105,139,325)(a) ............................ 99.9% 111,612,156
Other Assets in Excess of Liabilities ............... 0.1 94,946
----- ---------------
Net Assets .......................................... 100.0% $ 111,707,102
===== ===============

- ----------
* Non-income producing security.

# American Depositary Receipts.

(a) At October 31, 2006, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $107,053,960 amounted to
$4,558,196 which consisted of aggregate gross unrealized appreciation of
$7,998,829 and aggregate gross unrealized depreciation of $3,440,633.

See Notes to Financial Statements.

-24-

THE ALGER INSTITUTIONAL FUNDS
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS--92.9%
AEROSPACE & DEFENSE--2.9%
131,855 BE Aerospace, Inc.* ........................ $ 3,333,294
68,425 Esterline Technologies Corporation* ........ 2,579,623
100,130 SI International Inc.* ..................... 3,320,311
---------------
9,233,228
---------------
AIRLINES--.7%
208,740 AirTran Holdings, Inc.* .................... 2,081,138
---------------
APPAREL--.8%
55,200 Gymboree Corp.* ............................ 2,564,592
---------------
AUTO COMPONENTS--1.2%
158,770 LKQ Corporation* ........................... 3,673,938
---------------
AUTOMOTIVE EQUIPMENT & SERVICES--.9%
128,005 Tenneco Inc.* .............................. 2,905,714
---------------
BIOTECHNOLOGY--5.9%
78,170 Cubist Pharmaceuticals, Inc.* .............. 1,740,846
239,215 Human Genome Sciences, Inc.* ............... 3,193,520
115,305 InterMune Inc.* ............................ 2,548,241
134,925 Keryx Biopharmaceuticals, Inc.* ............ 1,894,347
55,705 Myogen, Inc.* .............................. 2,913,372
121,965 Neurocrine Biosciences, Inc.* .............. 1,408,696
116,220 Onyx Pharmaceuticals, Inc.* ................ 2,182,612
132,590 Regeneron Pharmaceuticals, Inc.* ........... 2,658,430
---------------
18,540,064
---------------
CAPITAL MARKETS--1.2%
55,410 Greenhill & Co., Inc. ...................... 3,764,555
---------------
CHEMICALS--.9%
110,080 Zoltek Companies, Inc.* .................... 2,759,706
---------------
COMMERCIAL BANKS--2.8%
111,005 Boston Private Financial Holdings, Inc. .... 3,068,178
102,010 Signature Bank* ............................ 3,093,963
54,190 Wintrust Financial Corporation ............. 2,615,209
---------------
8,777,350
---------------
COMMERCIAL SERVICES & SUPPLIES--3.7%
109,025 American Reprographics Co.* ................ 3,870,387
50,385 CoStar Group Inc.* ......................... 2,385,730
103,910 FTI Consulting, Inc.* ...................... 2,952,083
111,060 Gevity HR, Inc. ............................ 2,509,956
---------------
11,718,156
---------------
COMMUNICATION EQUIPMENT--1.7%
129,655 Polycom, Inc.* ............................. 3,552,547
345,135 Sonus Networks, Inc.* ...................... 1,805,056
---------------
5,357,603
---------------
COMMUNICATION TECHNOLOGY--.8%
316,200 Dobson Communications Corp. ................ 2,453,712
---------------

-25-

THE ALGER INSTITUTIONAL FUNDS
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
COMPUTER SERVICES--2.0%
208,705 Internap Network Services Corporation* ..... $ 3,439,458
76,430 Open Solutions Inc.* ....................... 2,856,189
---------------
6,295,647
---------------
COMPUTER TECHNOLOGY--1.2%
169,585 Atheros Communications* .................... 3,685,082
---------------
CONSTRUCTION & ENGINEERING--2.3%
87,755 URS Corporation* ........................... 3,546,180
151,980 Williams Scotsman International Inc.* ...... 3,576,089
---------------
7,122,269
---------------
DRUGS & PHARMACEUTICALS--1.1%
58,165 United Therapeutics Corporation* ........... 3,481,175
---------------
ELECTRIC SERVICES--.5%
43,370 ITC Holdings Corp.* ........................ 1,540,502
---------------
ENERGY--.8%
35,850 Veritas DGC Inc.* .......................... 2,581,559
---------------
ENERGY EQUIPMENT & SERVICES--1.3%
105,920 Dril-Quip Inc. ............................. 4,171,130
---------------
FINANCE--.8%
84,090 WNS Holdings Limited* ...................... 2,501,678
---------------
FINANCIAL INFORMATION SERVICES--1.0%
52,370 GFI Group Inc.* ............................ 3,020,178
---------------
FINANCIAL SERVICES--.8%
46,720 International Securities Exchange, Inc. .... 2,399,072
---------------
FOOD & BEVERAGES--1.2%
133,015 Hain Celestial Group Inc. (The)* ........... 3,755,013
---------------
HEALTH CARE--1.1%
188,465 Gentiva Health Services Inc.* .............. 3,496,026
---------------
HEALTH CARE EQUIPMENT & SUPPLIES--4.5%
85,225 ArthroCare Corporation* .................... 3,443,942
15,130 Haemonetics Corporation* ................... 689,928
68,450 Hologic, Inc.* ............................. 3,295,868
84,680 Illumina, Inc.* ............................ 3,722,533
74,505 Ventana Medical Systems, Inc.* ............. 3,009,257
---------------
14,161,528
---------------
HEALTH CARE PROVIDERS & SERVICES--4.4%
117,130 Parexel International Corporation* ......... 3,467,048
106,120 Psychiatric Solutions, Inc.* ............... 3,523,184
76,290 Sierra Health Services, Inc.* .............. 2,612,170
44,885 VCA Antech, Inc.* .......................... 1,452,927
47,820 WellCare Health Plans Inc.* ................ 2,809,425
---------------
13,864,754
---------------

-26-

THE ALGER INSTITUTIONAL FUNDS
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
HOTELS, RESTAURANTS & LEISURE--.8%
63,440 Orient-Express Hotels Ltd. Cl. A ........... $ 2,502,708
---------------
INSURANCE--1.5%
64,400 First Mercury Financial Corporation* ....... 1,333,080
116,915 Ohio Casualty Corporation .................. 3,206,978
---------------
4,540,058
---------------
INTERNET & CATALOG RETAIL--2.4%
109,255 Coldwater Creek Inc.* ...................... 3,331,185
102,560 Priceline.com Incorporated* ................ 4,132,142
---------------
7,463,327
---------------
INTERNET SOFTWARE & SERVICES--4.2%
59,200 Acme Packet, Inc.* ......................... 1,018,240
143,900 Allscripts Healthcare Solutions, Inc.* ..... 3,394,601
144,695 DealerTrack Holdings Inc.* ................. 3,688,276
195,355 Omniture Inc.* ............................. 1,773,823
83,550 WebEx Communications, Inc.* ................ 3,212,498
---------------
13,087,438
---------------
IT SERVICES--1.7%
89,950 SRA International, Inc.* ................... 2,882,898
90,395 Wright Express Corp.* ...................... 2,474,111
---------------
5,357,009
---------------
LEISURE & ENTERTAINMENT--1.1%
100,025 WMS Industries Inc.* ....................... 3,533,883
---------------
LEISURE EQUIPMENT & PRODUCTS--1.1%
66,845 LIFE TIME FITNESS, Inc.* ................... 3,444,523
---------------
MACHINERY--3.5%
60,930 Actuant Corporation Cl. A .................. 3,128,146
63,430 Bucyrus International, Inc. Cl. A .......... 2,657,717
47,585 ESCO Technologies Inc.* .................... 2,066,141
95,500 Gardner Denver Inc.* ....................... 3,246,045
---------------
11,098,049
---------------
MEDIA--2.8%
50,250 Focus Media Holding Limited ADR*# .......... 2,657,723
113,060 NeuStar, Inc. Cl. A* ....................... 3,303,613
177,245 World Wrestling Entertainment, Inc. Cl. A .. 2,954,674
---------------
8,916,010
---------------
MEDICAL TECHNOLOGY--.6%
75,500 Conor Medsystems, Inc.* .................... 1,854,280
---------------
METALS--2.0%
116,840 RBC Bearings, Inc. * ....................... 3,175,711
274,400 SXR Uranium One, Inc.* ..................... 3,065,048
---------------
6,240,759
---------------
METALS & MINING--.9%
2,004,935 Breakwater Resources, Ltd.* ................ 2,806,909
---------------

-27-

THE ALGER INSTITUTIONAL FUNDS
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
OIL & GAS--3.5%
86,760 Carrizo Oil & Gas, Inc.* ................... $ 2,477,866
47,120 Holly Corporation .......................... 2,241,027
129,050 Mariner Energy Inc.* ....................... 2,557,771
63,600 Massey Energy Company ...................... 1,605,900
186,365 Warren Resources Inc.* ..................... 2,197,243
---------------
11,079,807
---------------
OIL AND GAS EXPLORATION SERVICES--.9%
182,560 Petrobank Energy and Resources Ltd.* ....... 2,842,459
---------------
PHARMACEUTICAL PREPARATIONS--1.2%
86,205 Adams Respiratory Therapeutics, Inc.* ...... 3,715,435
---------------
PHARMACEUTICALS--1.0%
186,370 POZEN Inc.* ................................ 3,099,333
---------------
REAL ESTATE--1.0%
33,380 Jones Lang LaSalle Incorporated ............ 3,070,960
---------------
RESTAURANTS--1.2%
140,650 McCormick & Schmick's Seafood Restaurants,
Inc.* .................................... 3,697,689
---------------
RETAIL--1.3%
86,320 Phillips-Van Heusen Corporation ............ 3,950,003
---------------
ROAD & RAIL--.9%
57,540 Landstar Systems, Inc. ..................... 2,672,158
---------------
SEMICONDUCTOR CAPITAL EQUIPMENT--1.2%
30,030 FormFactor Inc.* ........................... 1,146,545
93,215 SiRF Technology Holdings, Inc.* ............ 2,621,206
---------------
3,767,751
---------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT--3.3%
104,805 ATMI, Inc.* ................................ 3,321,270
33,650 Cymer, Inc.* ............................... 1,559,004
120,305 Microsemi Corporation* ..................... 2,357,978
91,920 Tessera Technologies Inc.* ................. 3,208,927
---------------
10,447,179
---------------
SOFTWARE--3.8%
144,740 Quest Software, Inc. * ..................... 2,132,020
272,375 Synchronoss Technologies Inc. * ............ 2,742,816
388,830 Tibco Software Inc.* ....................... 3,596,678
119,245 VeriFone Holdings Inc.* .................... 3,483,146
---------------
11,954,660
---------------
SPECIALTY RETAIL--1.5%
83,155 Aeropostale, Inc.* ......................... 2,437,273
68,690 DSW Inc. Cl. A* ............................ 2,376,674
---------------
4,813,947
---------------
TEXTILES & APPAREL--1.1%
184,075 Iconix Brand Group, Inc.* .................. 3,431,158
---------------

-28-

THE ALGER INSTITUTIONAL FUNDS
ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
TEXTILES, APPAREL & LUXURY GOODS--.7%
43,400 Deckers Outdoor Corporation* ............... $ 2,307,578
---------------
WIRELESS TELECOMMUNICATION SERVICES--1.2%
147,075 SBA Communications Corporation Cl. A* ...... 3,928,373
---------------
Total Common Stocks
(Cost $261,451,209) ...................... 291,528,812
---------------
PRINCIPAL
AMOUNT
- --------------
SHORT-TERM INVESTMENTS--6.9%
U.S. AGENCY OBLIGATIONS
$21,740,000 Federal National Mortgage Association,
4.95%, 11/1/06
(Cost $21,740,000) ....................... 21,740,000
---------------
Total Investments
(Cost $283,191,209)(a) ............................ 99.8% 313,268,812
Other Assets in Excess of Liabilities ............... .2 592,448
----- ---------------
Net Assets .......................................... 100.0% $ 313,861,260
===== ===============

- ----------
* Non-income producing securities.

# American Depositary Receipts.

(a) At October 31, 2006, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $283,569,740 amounted to
$29,699,072 which consisted of aggregate gross unrealized appreciation of
$33,598,341 and aggregate gross unrealized depreciation of $3,899,269.

See Notes to Financial Statements.

-29-

THE ALGER INSTITUTIONAL FUNDS
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS--97.5%
AEROSPACE & DEFENSE--1.9%
243,215 Armour Holdings, Inc.* ...................... $ 12,515,844
538,290 BE Aerospace, Inc.* ......................... 13,607,971
---------------
26,123,815
---------------
APPAREL--.7%
312,985 J Crew Group Inc. * ......................... 9,652,457
---------------
AUTOMOTIVE EQUIPMENT & SERVICES--.8%
465,725 Tenneco Inc. Inc.* .......................... 10,571,958
---------------
BIOTECHNOLOGY--1.4%
192,125 Cephalon, Inc.* ............................. 13,483,332
197,715 MedImmune, Inc.* ............................ 6,334,789
---------------
19,818,121
---------------
CAPITAL MARKETS--1.8%
144,375 Affiliated Managers Group, Inc.* ............ 14,457,712
634,565 TD Ameritrade Holding Corp. ................. 10,451,286
---------------
24,908,998
---------------
CASINOS & RESORTS--.8%
535,835 Bally Technologies Inc.* .................... 10,636,325
---------------
COMMERCIAL SERVICES & SUPPLIES--2.1%
1,204,707 Net 1 UEPS Technologies, Inc.* .............. 29,671,933
---------------
COMMUNICATION EQUIPMENT--2.0%
232,865 Research In Motion Limited* ................. 27,356,980
---------------
COMPUTER SERVICES--1.9%
83,500 IHS Inc. Cl. A* ............................. 2,886,595
1,062,200 Satyam Computer Services--ADR# .............. 23,485,242
---------------
26,371,837
---------------
COMPUTER TECHNOLOGY--2.0%
499,235 Atheros Communications* ..................... 10,848,377
498,685 NAVTEQ* ..................................... 16,556,342
---------------
27,404,719
---------------
COMPUTERS & PERIPHERALS--1.2%
483,545 Memc Electronic Materials, Inc.* ............ 17,165,848
---------------
CONSTRUCTION & ENGINEERING--1.5%
486,540 McDermott International, Inc.* .............. 21,748,338
---------------
DRUGS & PHARMACEUTICALS--1.7%
395,855 United Therapeutics Corporation* ............ 23,691,922
---------------
ELECTRIC AND ELECTRONIC EQUIPMENT--1.4%
410,045 Roper Industries, Inc. ...................... 19,620,653
---------------
ELECTRICAL EQUIPMENT--.5%
150,840 AMETEK, Inc. ................................ 7,041,211
---------------
ELECTRONICS--1.9%
1,025,730 Nintendo Co., Ltd. ADR# ..................... 26,178,373
---------------

-30-

THE ALGER INSTITUTIONAL FUNDS
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
ENERGY--.6%
239,775 SunPower Corporation Cl. A* ................. $ 8,068,429
---------------
ENERGY EQUIPMENT & SERVICES--4.3%
485,730 Cameron International Corp.* ................ 24,335,073
317,335 National-Oilwell Varco Inc.* ................ 19,167,034
619,710 Suntech Power Holdings Co., Ltd. ADR*# ...... 16,112,460
---------------
59,614,567
---------------
ENGINEERING--.7%
130,015 Jacobs Engineering Group Inc.* .............. 9,821,333
---------------
FINANCE--2.1%
342,000 Intercontinental Exchange Inc. * ............ 28,871,640
---------------
FINANCIAL SERVICES--3.9%
21,615 Chicago Mercantile Exchange Holdings Inc. ... 10,829,115
1,277,860 Hong Kong Exchanges & Clearing Limited ...... 10,119,673
975,020 Hudson City Bancorp Inc. .................... 13,387,025
200,230 International Securities Exchange, Inc. ..... 10,281,811
387,375 Wadell & Reed Financial, Inc. ............... 9,878,063
---------------
54,495,687
---------------
HEALTH & PERSONAL CARE--.7%
213,500 Brookdale Senior Living Inc. ................ 10,273,620
---------------
HEALTH CARE EQUIPMENT & SUPPLIES--4.3%
171,730 ArthroCare Corporation* ..................... 6,939,609
191,100 Biomet, Inc. ................................ 7,231,224
346,595 Hologic, Inc.* .............................. 16,688,549
184,155 Intuitive Surgical, Inc.* ................... 18,264,493
113,105 Mentor Corporation .......................... 5,293,314
358,595 Thoratec Corporation* ....................... 5,647,871
---------------
60,065,060
---------------
HEALTH CARE PROVIDERS & SERVICES--9.5%
436,115 DaVita, Inc.* ............................... 24,261,077
632,160 Health Management Associates, Inc. Cl. A .... 12,453,552
451,950 Health Net Inc.* ............................ 18,760,445
565,070 HealthExtras, Inc.* ......................... 13,013,562
392,760 Medco Health Solutions, Inc.* ............... 21,012,660
641,070 Psychiatric Solutions, Inc.* ................ 21,283,524
200,860 Quest Diagnostics Incorporated .............. 9,990,776
232,405 Universal Health Services, Inc., Cl. B* ..... 12,305,845
---------------
133,081,441
---------------
HOTELS, RESTAURANTS & LEISURE--4.4%
512,100 Cheesecake Factory Incorporated (The)* ...... 14,466,825
253,695 Orient-Express Hotels Ltd. Cl. A ............ 10,008,268
84,700 P.F. Chang's China Bistro, Inc.* ............ 3,542,154
254,515 Royal Caribbean Cruises Ltd. ................ 10,307,858
344,510 Scientific Games Corporation* ............... 9,656,615
215,110 Station Casinos, Inc. ....................... 12,971,133
---------------
60,952,853
---------------

-31-

THE ALGER INSTITUTIONAL FUNDS
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
HOUSEHOLD DURABLES--1.3%
334,000 Garmin Ltd. ................................. $ 17,838,940
---------------
INFORMATION TECHNOLOGY SERVICES--.5%
595,140 BISYS Group, Inc. (The)* .................... 6,570,346
---------------
INSURANCE--.8%
559,640 Covanta Holding Corporation* ................ 11,377,481
---------------
INTERNET & CATALOG RETAIL--1.3%
628,587 Netflix Inc.* ............................... 17,386,716
---------------
INTERNET SOFTWARE & SERVICES--3.4%
1,026,355 Allscripts Healthcare Solutions, Inc.* ...... 24,211,714
399,172 DealerTrack Holdings Inc.* .................. 10,174,894
342,760 WebEx Communications, Inc.* ................. 13,179,122
---------------
47,565,730
---------------
IT SERVICES--.5%
228,720 SRA International, Inc.* .................... 7,330,476
---------------
LEISURE EQUIPMENT & PRODUCTS--.7%
166,244 UbiSoft Entertainment SA* ................... 10,268,126
---------------
MACHINERY--3.1%
174,980 Joy Global Inc. ............................. 6,843,468
252,490 Manitowoc Company, Inc. ..................... 13,856,651
447,575 Terex Corporation* .......................... 23,166,482
---------------
43,866,601
---------------
MEDIA--4.6%
407,430 Clear Channel Communications, Inc.* ......... 14,198,935
202,500 DreamWorks Animation SKG, Inc. Cl. A* ....... 5,356,125
285,840 Focus Media Holding Limited ADR*# ........... 15,118,078
2,556,850 XM Satellite Radio Holdings Inc. Cl. A* ..... 29,812,871
---------------
64,486,009
---------------
METALS--1.1%
130,900 First Quantum Minerals Ltd. ................. 7,490,098
681,850 SXR Uranium One, Inc.* ...................... 7,616,265
---------------
15,106,363
---------------
METALS & MINING--3.1%
210,645 Freeport-McMoRan Copper & Gold, Inc. Cl. B .. 12,739,810
2,402,880 Paladin Resources Limited* .................. 10,512,600
76,550 Phelps Dodge Corporation .................... 7,684,089
450,260 Vedanta Resources Plc ....................... 12,562,254
---------------
43,498,753
---------------
OIL & GAS--2.1%
1,032,700 Denbury Resources Inc. * .................... 29,679,798
---------------
OIL AND GAS EXPLORATION SERVICES--1.0%
886,200 Petrobank Energy and Resources Ltd.* ........ 13,798,134
---------------

-32-

THE ALGER INSTITUTIONAL FUNDS
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
PERSONAL PRODUCTS--.2%
104,715 Bare Escentuals, Inc.* ...................... $ 3,207,420
---------------
REAL ESTATE--1.5%
233,295 Jones Lang LaSalle Incorporated ............. 21,463,140
---------------
SEMICONDUCTOR CAPITAL EQUIPMENT--1.5%
717,835 SiRF Technology Holdings, Inc.* ............. 20,185,520
---------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT--3.7%
550,395 Microsemi Corporation* ...................... 10,787,742
1,022,100 STMicroelectronics N.V. ..................... 17,743,656
670,145 Tessera Technologies Inc.* .................. 23,394,762
---------------
51,926,160
---------------
SOFTWARE--.9%
353,080 Activision, Inc.* ........................... 5,444,494
325,660 Symantec Corporation* ....................... 6,461,094
---------------
11,905,588
---------------
SPECIALTY RETAIL--4.6%
86,570 Bed Bath & Beyond Inc.* ..................... 3,487,905
154,200 CarMax, Inc.* ............................... 6,831,060
966,670 Circuit City Stores, Inc. ................... 26,080,757
537,258 Gamestop Corp. Cl. A* ....................... 27,432,393
---------------
63,832,115
---------------
TEXTILES, APPAREL & LUXURY GOODS--1.7%
323,070 Polo Ralph Lauren Corporation Cl. A ......... 22,937,970
---------------
TRANSPORTATION--1.8%
272,835 Textron Inc. ................................ 24,808,887
---------------
UTILITIES--1.1%
239,480 Veolia Environnement ........................ 14,656,175
---------------
WIRELESS TELECOMMUNICATION SERVICES--2.9%
277,645 NII Holdings Inc. Cl. B* .................... 18,055,254
860,665 SBA Communications Corporation Cl. A* ....... 22,988,362
---------------
41,043,616
---------------
Total Common Stocks
(Cost $1,272,517,774) .................... 1,357,948,182
---------------

-33-

THE ALGER INSTITUTIONAL FUNDS
ALGER MIDCAP GROWTH INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

PRINCIPAL
AMOUNT VALUE
- -------------- ----------------
SHORT-TERM INVESTMENTS--3.1%
U.S. AGENCY OBLIGATIONS
$ 43,930,000 Federal National Mortgage Association,
4.95%, 11/1/06
(Cost $43,930,000) ....................... $ 43,930,000
---------------
Total Investments
(Cost $1,316,447,774)(a) ........................... 100.6% 1,401,878,182
Liabilities in Excess of Other Assets ................. (.6) (9,023,239)
----- ---------------
Net Assets ............................................ 100.0% $ 1,392,854,943
===== ===============

- ----------
* Non-income producing securities.

# American Depositary Receipts.

(a) At October 31, 2006, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $1,339,371,432 amounted to
$62,506,750 which consisted of aggregate gross unrealized appreciation of
$109,898,969 and aggregate gross unrealized depreciation of $47,392,219.

See Notes to Financial Statements.

-34-

THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS--98.7%
AEROSPACE & DEFENSE--6.4%
76,500 Armour Holdings, Inc.* ..................... $ 3,936,690
134,650 BE Aerospace, Inc.* ........................ 3,403,952
20,500 Boeing Company ............................. 1,637,130
25,200 L-3 Communications Holdings, Inc. .......... 2,029,104
---------------
11,006,876
---------------
BIOTECHNOLOGY--2.4%
46,450 Amgen Inc. ................................. 3,526,019
8,750 Gilead Sciences, Inc. ...................... 602,875
---------------
4,128,894
---------------
BROADCASTING--.5%
23,800 EchoStar Communications Corp., Cl. A* ...... 845,376
---------------
CAPITAL MARKETS--.8%
5,950 Bear Stearns Companies Inc. ................ 900,532
5,050 Legg Mason, Inc. ........................... 454,601
---------------
1,355,133
---------------
CHEMICALS--.7%
47,100 Zoltek Companies, Inc.* .................... 1,180,797
---------------
COMMERCIAL BANKS--1.0%
31,250 Bank of America Corporation ................ 1,683,437
---------------
COMMERCIAL SERVICES & SUPPLIES--.4%
29,900 Net 1 UEPS Technologies, Inc.* ............. 736,437
---------------
COMMUNICATION EQUIPMENT--4.3%
91,400 Cisco Systems, Inc.* ....................... 2,205,482
78,400 Comverse Technology, Inc.* ................. 1,706,768
72,900 Corning Incorporated* ...................... 1,489,347
43,800 Motorola, Inc. ............................. 1,010,028
168,700 Sonus Networks, Inc.* ...................... 882,301
---------------
7,293,926
---------------
COMPUTER SERVICES--.4%
20,100 IHS Inc. Cl. A* ............................ 694,857
---------------
COMPUTER TECHNOLOGY--2.2%
117,100 Atheros Communications* .................... 2,544,583
34,900 NAVTEQ* .................................... 1,158,680
---------------
3,703,263
---------------
COMPUTERS & PERIPHERALS--2.0%
66,900 EMC Corporation* ........................... 819,525
37,800 Memc Electronic Materials, Inc.* ........... 1,341,900
31,300 NCR Corporation* ........................... 1,299,576
---------------
3,461,001
---------------
CONSTRUCTION & ENGINEERING--1.1%
42,200 McDermott International, Inc.* ............. 1,886,340
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES--.4%
130,915 Level 3 Communication Inc.* ................ 692,540
---------------

-35-

THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
DRUGS & PHARMACEUTICALS--1.5%
42,000 United Therapeutics Corporation* ........... $ 2,513,700
---------------
ELECTRICAL EQUIPMENT--.7%
27,100 AMETEK, Inc. ............................... 1,265,028
---------------
ENERGY EQUIPMENT & SERVICES--3.9%
45,800 Cameron International Corp.* ............... 2,294,580
2,500 Diamond Offshore Drilling Inc. ............. 173,075
23,300 National-Oilwell Varco Inc.* ............... 1,407,320
53,600 Suntech Power Holdings Co., Ltd. ADR*# ..... 1,393,600
19,100 Transocean Inc.* ........................... 1,385,514
---------------
6,654,089
---------------
FINANCE--.3%
6,000 Intercontinental Exchange Inc. * ........... 506,520
---------------
FINANCIAL INFORMATION SERVICES--.8%
23,700 Genworth Financial Inc. Cl. A .............. 792,528
10,100 GFI Group Inc.* ............................ 582,467
---------------
1,374,995
---------------
FINANCIAL SERVICES--1.6%
3,100 Chicago Mercantile Exchange Holdings Inc. .. 1,553,100
2,606,300 Industrial and Commercial Bank Of China* ... 1,166,020
---------------
2,719,120
---------------
FOOD & STAPLES RETAILING--2.0%
108,600 CVS Corporation ............................ 3,407,868
---------------
FREIGHT & LOGISTICS--.7%
10,100 FedEx Corp. ................................ 1,156,854
---------------
HEALTH CARE EQUIPMENT & SUPPLIES--2.1%
28,200 Hologic, Inc.* ............................. 1,357,830
27,900 Kyphon Inc.* ............................... 1,102,050
27,900 Ventana Medical Systems, Inc.* ............. 1,126,881
---------------
3,586,761
---------------
HEALTH CARE PROVIDERS & SERVICES--3.5%
28,300 Aetna Inc. ................................. 1,166,526
24,400 Health Net Inc.* ........................... 1,012,844
43,400 Medco Health Solutions, Inc.* .............. 2,321,900
18,800 Psychiatric Solutions, Inc.* ............... 624,160
18,710 UnitedHealth Group Incorporated ............ 912,674
---------------
6,038,104
---------------
HOTELS, RESTAURANTS & LEISURE--.5%
20,000 MGM MIRAGE ................................. 860,400
---------------
HOUSEHOLD PRODUCTS--1.7%
47,002 Procter & Gamble Company ................... 2,979,457
---------------

-36-

THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
INSURANCE--1.0%
25,650 Endurance Specialty Holdings Limited ....... $ 914,423
8,800 Hartford Financial Services Group, Inc.
(The) ................................... 767,096
---------------
1,681,519
---------------
INTERNET & CATALOG RETAIL--.9%
50,800 eBay Inc.* ................................. 1,632,204
---------------
INTERNET SOFTWARE & SERVICES--4.2%
93,275 DealerTrack Holdings Inc.* ................. 2,377,580
5,100 Google Inc. Cl. A* ......................... 2,429,589
91,130 Yahoo! Inc. * .............................. 2,400,364
---------------
7,207,533
---------------
IT SERVICES--.3%
17,050 Wright Express Corp.* ...................... 466,659
---------------
MACHINERY--1.8%
59,600 Terex Corporation* ......................... 3,084,896
---------------
MEDIA--3.5%
2,200 Dolby Laboratories Inc. Cl. A* ............. 43,538
27,400 DreamWorks Animation SKG, Inc. Cl. A* ...... 724,730
69,050 Focus Media Holding Limited ADR*# .......... 3,652,055
55,200 NeuStar, Inc. Cl. A* ....................... 1,612,944
---------------
6,033,267
---------------
METALS--1.0%
83,000 SXR Uranium One, Inc.* ..................... 927,110
27,900 Vedanta Resources Plc ...................... 777,347
---------------
1,704,457
---------------
METALS & MINING--2.3%
985,700 Breakwater Resources, Ltd.* ................ 1,379,980
26,000 Phelps Dodge Corporation ................... 2,609,880
---------------
3,989,860
---------------
MULTILINE RETAIL--.9%
33,400 Federated Department Stores, Inc. .......... 1,466,594
---------------
OIL & GAS--4.0%
5,700 Denbury Resources Inc. * ................... 163,818
13,400 Exxon Mobil Corporation .................... 957,028
87,600 Sunoco, Inc. ............................... 5,792,988
---------------
6,913,834
---------------
OIL AND GAS EXPLORATION SERVICES--2.2%
248,900 Petrobank Energy and Resources Ltd.* ....... 3,875,373
---------------
PHARMACEUTICAL PREPARATIONS--1.0%
39,200 Adams Respiratory Therapeutics, Inc.* ...... 1,689,520
---------------

-37-

THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS--2.3%
1,300 Auxilium Pharmaceuticals Inc.* ............. $ 16,380
77,800 Salix Pharmaceuticals, Ltd.* ............... 1,037,074
83,500 Schering-Plough Corporation ................ 1,848,690
19,100 Shire Plc .................................. 1,047,635
---------------
3,949,779
---------------
ROAD & RAIL--.9%
19,400 Burlington Northern Santa Fe Corporation ... 1,504,082
---------------
SEMICONDUCTOR CAPITAL EQUIPMENT--.5%
21,100 FormFactor Inc.* ........................... 805,598
---------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT--4.7%
45,200 Advanced Micro Devices, Inc.* .............. 961,404
125,653 Microsemi Corporation* ..................... 2,462,799
90,200 Tessera Technologies Inc.* ................. 3,148,882
69,300 Trident Microsystems, Inc.* ................ 1,465,002
---------------
8,038,087
---------------
SOFTWARE--5.0%
21,100 Citrix Systems, Inc.* ...................... 623,083
77,900 Microsoft Corporation ...................... 2,236,509
109,800 Symantec Corporation* ...................... 2,178,432
115,400 Synchronoss Technologies Inc. * ............ 1,162,078
14,000 THQ Inc. * ................................. 420,980
68,550 VeriFone Holdings Inc.* .................... 2,002,346
---------------
8,623,428
---------------
SPECIALTY RETAIL--6.2%
12,900 Abercrombie & Fitch Co. Cl. A .............. 988,785
21,800 Best Buy Co., Inc. ......................... 1,204,450
19,300 CarMax, Inc.* .............................. 854,990
158,800 Circuit City Stores, Inc. .................. 4,284,424
12,300 Crocs, Inc.* ............................... 487,326
54,800 Gamestop Corp. Cl. A* ...................... 2,798,088
---------------
10,618,063
---------------
TEXTILES, APPAREL & LUXURY GOODS--.8%
18,900 Polo Ralph Lauren Corporation Cl. A ........ 1,341,900
---------------
TOBACCO--2.7%
57,150 Altria Group, Inc. ......................... 4,648,009
---------------
TRANSPORTATION--3.0%
56,700 Textron Inc. ............................... 5,155,731
---------------
UTILITIES--1.1%
30,100 Veolia Environnement ....................... 1,842,120
---------------

-38-

THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
WIRELESS TELECOMMUNICATION SERVICES--6.5%
23,500 America Movil S.A. de C.V. Series L ADR# ... $ 1,007,445
167,969 American Tower Corporation Cl. A* .......... 6,050,243
40,550 NII Holdings Inc. Cl. B* ................... 2,636,967
74,100 Sprint Nextel Corporation .................. 1,384,929
---------------
11,079,584
---------------
Total Common Stocks
(Cost $156,748,386) ..................... 169,083,870
---------------

PRINCIPAL
AMOUNT
- --------------
SHORT-TERM INVESTMENTS--2.4%
U.S. AGENCY OBLIGATIONS
$4,180,000 Federal National Mortgage Association,
4.95%, 11/1/06
(Cost $4,180,000) ....................... 4,180,000
---------------

Total Investments
(Cost $160,928,386)(a) ............................. 101.1% 173,263,870
Liabilities in Excess of Other Assets ................. (1.1) (1,872,410)
----- ---------------
Net Assets ............................................ 100.0% $ 171,391,460
===== ===============

- ----------
* Non-income producing securities.

# American Depositary Receipts.

(a) At October 31, 2006, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $161,447,055 amounted to
$11,816,815 which consisted of aggregate gross unrealized appreciation of
$15,659,888 and aggregate gross unrealized depreciation of $3,843,073.

See Notes to Financial Statements.

-39-

THE ALGER INSTITUTIONAL FUNDS
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS--68.1%
AEROSPACE & DEFENSE--1.8%
5 Boeing Company ............................. $ 399
10 L-3 Communications Holdings, Inc. .......... 805
---------------
1,204
---------------
BIOTECHNOLOGY--2.9%
15 Amgen Inc. ................................. 1,139
10 Genentech, Inc.* ........................... 833
---------------
1,972
---------------
BROADCASTING--.8%
15 EchoStar Communications Corp., Cl. A* ...... 533
---------------
CAPITAL MARKETS--2.5%
5 Bear Stearns Companies Inc. ................ 757
5 Goldman Sachs Group, Inc. .................. 949
---------------
1,706
---------------
CHEMICALS--.5%
5 Air Products and Chemicals, Inc. ........... 348
---------------
COMMUNICATION EQUIPMENT--4.0%
40 Cisco Systems, Inc.* ....................... 965
15 Motorola, Inc. ............................. 346
5 QUALCOMM Inc. .............................. 182
10 Research In Motion Limited* ................ 1,175
---------------
2,668
---------------
COMPUTER SERVICES--.3%
10 Satyam Computer Services ADR# .............. 221
---------------
COMPUTERS & PERIPHERALS--4.9%
25 Apple Computer, Inc.* ...................... 2,027
15 EMC Corporation* ........................... 184
30 Memc Electronic Materials, Inc.* ........... 1,065
---------------
3,276
---------------
CONGLOMERATE--.8%
10 ITT Industries, Inc. ....................... 544
---------------
EDUCATION--.4%
5 Laureate Education Inc.* ................... 264
---------------
ELECTRIC UTILITIES--.5%
5 Exelon Corporation ......................... 310
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.3%
10 Emerson Electric Co. ....................... 844
---------------
ELECTRONICS--2.6%
60 Nintendo Co., Ltd. ADR# .................... 1,531
5 SONY CORPORATION ........................... 205
---------------
1,736
---------------

-40-

THE ALGER INSTITUTIONAL FUNDS
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
ENERGY EQUIPMENT & SERVICES--3.4%
10 National-Oilwell Varco Inc.* ............... $ 604
10 Schlumberger Limited ....................... 631
15 Transocean Inc.* ........................... 1,088
---------------
2,323
---------------
FINANCE--.6%
5 Intercontinental Exchange Inc. * ........... 422
---------------
FINANCIAL SERVICES--1.6%
30 Hong Kong Exchanges & Clearing Limited ..... 238
1,230 Industrial and Commercial Bank Of China* ... 550
5 UBS AG ..................................... 299
---------------
1,087
---------------
FOOD & STAPLES RETAILING--.9%
10 CVS Corporation ............................ 314
5 Whole Foods Market, Inc. ................... 319
---------------
633
---------------
HEALTH & PERSONAL CARE--.4%
5 Brookdale Senior Living Inc. ............... 241
---------------
HEALTH CARE--.6%
5 WellPoint Inc. * ........................... 382
---------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.7%
10 Baxter International Inc. .................. 460
5 Biomet, Inc. ............................... 189
5 Intuitive Surgical, Inc.* .................. 496
---------------
1,145
---------------
HEALTH CARE PROVIDERS & SERVICES--3.1%
5 DaVita, Inc.* .............................. 278
5 Health Net Inc.* ........................... 208
5 Humana Inc.* ............................... 300
10 McKesson Corporation ....................... 501
15 Medco Health Solutions, Inc.* .............. 802
---------------
2,089
---------------
HOTELS, RESTAURANTS & LEISURE--1.2%
5 Las Vegas Sands Corp.* ..................... 381
10 Royal Caribbean Cruises Ltd. ............... 405
---------------
786
---------------
HOUSEHOLD PRODUCTS--.9%
10 Procter & Gamble Company ................... 634
---------------
INFORMATION TECHNOLOGY SERVICES--.6%
5 Cognizant Technology Solutions Corporation
Cl. A* .................................. 376
---------------
INSURANCE--1.3%
10 Hartford Financial Services Group, Inc.
(The) ................................... 872
---------------
INTERNET & CATALOG RETAIL--1.2%
25 eBay Inc.* ................................. 803
---------------

-41-

THE ALGER INSTITUTIONAL FUNDS
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
INTERNET SOFTWARE & SERVICES--2.7%
70 Yahoo! Inc. * .............................. $ 1,844
---------------
MACHINERY--.9%
15 Joy Global Inc. ............................ 587
---------------
MEDIA--4.7%
50 Cablevision Systems New York Group Cl. A* .. 1,389
10 Disney (Walt) Company ...................... 315
10 Viacom Inc. Cl. B New* ..................... 389
90 XM Satellite Radio Holdings Inc. Cl. A* .... 1,049
---------------
3,142
---------------
METALS--.6%
15 Vedanta Resources Plc ...................... 418
---------------
METALS & MINING--1.4%
10 Cameco Corporation ......................... 351
10 Freeport-McMoRan Copper & Gold, Inc.
C1. B ................................... 605
---------------
956
---------------
MULTILINE RETAIL--1.0%
15 Federated Department Stores, Inc. .......... 659
---------------
PERSONAL PRODUCTS--.5%
10 Avon Products, Inc. ........................ 304
---------------
PHARMACEUTICALS--.9%
5 Eli Lilly and Company ...................... 280
5 Johnson & Johnson .......................... 337
---------------
617
---------------
REAL ESTATE--1.4%
10 Jones Lang LaSalle Incorporated ............ 920
---------------
ROAD & RAIL--.6%
5 Burlington Northern Santa Fe Corporation ... 388
---------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--1.6%
15 Freescale Semiconductor Inc. Cl. A* ........ 591
10 KLA-Tencor Corporation ..................... 492
---------------
1,083
---------------
SOFTWARE--2.3%
20 Microsoft Corporation ...................... 574
25 Oracle Corporation* ........................ 462
25 Symantec Corporation* ...................... 496
---------------
1,532
---------------
SPECIALTY RETAIL--1.4%
10 Best Buy Co., Inc. ......................... 552
10 Home Depot, Inc. ........................... 373
---------------
925
---------------

-42-

THE ALGER INSTITUTIONAL FUNDS
ALGER BALANCED INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
TEXTILES, APPAREL & LUXURY GOODS--1.1%
10 Coach, Inc.* ............................... $ 396
5 Polo Ralph Lauren Corporation Cl. A ........ 355
---------------
751
---------------
TOBACCO--1.2%
10 Altria Group, Inc. ......................... 813
---------------
TRANSPORTATION--1.3%
10 Textron Inc. ............................... 909
---------------
UTILITIES--.9%
10 Veolia Environnement ....................... 612
---------------
WIRELESS TELECOMMUNICATION SERVICES--2.8%
10 American Tower Corporation Cl. A* .......... 360
10 NII Holdings Inc. Cl. B* ................... 650
20 SBA Communications Corporation Cl. A* ...... 534
20 Sprint Nextel Corporation .................. 379
---------------
1,923
---------------
Total Common Stocks (Cost $43,033) ......... 45,802
---------------
Total Investments (Cost $43,033)(a) ................. 68.1% 45,802
Other Assets in Excess of Liabilities ............... 31.9 21,416
----- ---------------
Net Assets .......................................... 100.0% $ 67,218
===== ===============

- ----------
* Non-income producing securities.

# American Depositary Receipts.

(a) At October 31, 2006, the net unrealized depreciation on investments, based
on cost for federal income tax purposes of $53,335 amounted to $7,533
which consisted of aggregate gross unrealized appreciation of $3,192 and
aggregate gross unrealized depreciation of $10,725.

See Notes to Financial Statements.

-43-

THE ALGER INSTITUTIONAL FUNDS
ALGER GREEN INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS--93.9%
AEROSPACE & DEFENSE--2.0%
2,540 BE Aerospace, Inc.* ........................ $ 64,211
---------------
BIOTECHNOLOGY--2.0%
295 Amgen Inc. ................................. 22,393
160 Gilead Sciences, Inc. ...................... 11,024
590 Myogen, Inc.* .............................. 30,857
---------------
64,274
---------------
BROADCASTING--.5%
440 EchoStar Communications Corp., Cl. A.* ..... 15,629
---------------
CAPITAL MARKETS--1.2%
210 Bear Stearns Companies Inc. ................ 31,783
90 Legg Mason, Inc. ........................... 8,102
---------------
39,885
---------------
CHEMICALS--.8%
1,040 Zoltek Companies, Inc.* .................... 26,073
---------------
COMMERCIAL BANKS--1.0%
580 Bank of America Corporation ................ 31,245
---------------
COMMERCIAL SERVICES & SUPPLIES--.4%
575 Net 1 UEPS Technologies, Inc.* ............. 14,162
---------------
COMMUNICATION EQUIPMENT--2.9%
1,720 Cisco Systems, Inc.* ....................... 41,504
1,445 Comverse Technology, Inc.* ................. 31,458
810 Motorola, Inc. ............................. 18,679
---------------
91,641
---------------
COMPUTER TECHNOLOGY--1.5%
2,170 Atheros Communications* .................... 47,154
---------------
COMPUTERS & PERIPHERALS--2.1%
1,240 EMC Corporation* ........................... 15,190
510 Memc Electronic Materials, Inc.* ........... 18,105
370 Network Appliance, Inc. * .................. 13,505
905 Seagate Technology ......................... 20,435
---------------
67,235
---------------
CONSTRUCTION & ENGINEERING--1.1%
770 McDermott International, Inc.* ............. 34,419
105 Stanley Inc.* .............................. 1,829
---------------
36,248
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES--1.3%
470 ALLTEL Corporation ......................... 25,056
2,965 Level 3 Communication Inc.* ................ 15,685
---------------
40,741
---------------
DRUGS & PHARMACEUTICALS--1.1%
585 United Therapeutics Corporation* ........... 35,012
---------------
ELECTRICAL EQUIPMENT--.7%
495 AMETEK, Inc. ............................... 23,107
---------------

-44-

THE ALGER INSTITUTIONAL FUNDS
ALGER GREEN INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
ELECTRONICS--1.0%
755 SONY CORPORATION $ 30,940
---------------
ENERGY EQUIPMENT & SERVICES--3.9%
845 Cameron International Corp.* ............... 42,334
45 Diamond Offshore Drilling Inc. ............. 3,115
420 National-Oilwell Varco Inc.* ............... 25,368
1,030 Suntech Power Holdings Co., Ltd. ADR*# ..... 26,780
360 Transocean Inc.* ........................... 26,114
---------------
123,711
---------------
FINANCE--.5%
105 Intercontinental Exchange Inc. * ........... 8,864
255 WNS Holdings Limited* ...................... 7,586
---------------
16,450
---------------
FINANCIAL SERVICES--.9%
55 Chicago Mercantile Exchange Holdings Inc. .. 27,555
4,830 Industrial and Commercial Bank Of China* ... 2,161
---------------
29,716
---------------
FREIGHT & LOGISTICS--.5%
150 FedEx Corp. ................................ 17,181
---------------
FINANCIAL INFORMATION SERVICES--.6%
620 Genworth Financial Inc. Cl. A .............. 20,733
---------------
FOOD & STAPLES RETAILING--3.0%
3,000 CVS Corporation ............................ 94,140
---------------
HEALTH CARE EQUIPMENT & SUPPLIES--2.1%
510 Hologic, Inc.* ............................. 24,557
505 Kyphon Inc.* ............................... 19,948
535 Ventana Medical Systems, Inc.* ............. 21,609
---------------
66,114
---------------
HEALTH CARE PROVIDERS & SERVICES--2.3%
600 Aetna Inc. ................................. 24,732
485 Health Net Inc.* ........................... 20,132
345 Psychiatric Solutions, Inc.* ............... 11,454
345 UnitedHealth Group Incorporated ............ 16,829
---------------
73,147
---------------
HOUSEHOLD PRODUCTS--1.8%
889 Procter & Gamble Company ................... 56,354
---------------
INSURANCE--2.1%
250 American International Group, Inc. ......... 16,792
1,145 Covanta Holding Corporation* ............... 23,278
300 Hartford Financial Services Group, Inc.
(The) ................................... 26,151
---------------
66,221
---------------
INTERNET & CATALOG RETAIL--.9%
940 eBay Inc.* ................................. 30,202
---------------

-45-

THE ALGER INSTITUTIONAL FUNDS
ALGER GREEN INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
INTERNET SOFTWARE & SERVICES--4.8%
2,105 DealerTrack Holdings Inc.* ................. $ 53,656
95 Google Inc. Cl. A* ......................... 45,257
625 Jupitermedia Corporation* .................. 5,494
1,878 Yahoo! Inc. * .............................. 49,467
---------------
153,874
---------------
IT SERVICES--.3%
320 Wright Express Corp.* ...................... 8,758
---------------
MACHINERY--2.6%
645 Joy Global Inc. ............................ 25,226
1,105 Terex Corporation* ......................... 57,195
---------------
82,421
---------------
MEDIA--4.1%
965 Dolby Laboratories Inc. Cl. A* ............. 19,097
525 DreamWorks Animation SKG, Inc. Cl. A* ...... 13,886
1,245 Focus Media Holding Limited ADR*# .......... 65,848
1,055 NeuStar, Inc. Cl. A* ....................... 30,827
---------------
129,658
---------------
METALS--.4%
480 Vedanta Resources Plc ...................... 13,374
---------------
METALS & MINING--3.4%
17,530 Breakwater Resources, Ltd.* ................ 24,542
8,390 Paladin Resources Limited* ................. 36,706
485 Phelps Dodge Corporation ................... 48,684
---------------
109,932
---------------
MULTILINE RETAIL--.8%
615 Federated Department Stores, Inc. .......... 27,005
---------------
OIL & GAS--3.4%
160 Denbury Resources Inc. * ................... 4,598
250 Exxon Mobil Corporation .................... 17,855
1,285 Sunoco, Inc. ............................... 84,977
---------------
107,430
---------------
OIL AND GAS EXPLORATION SERVICES--2.2%
4,615 Petrobank Energy and Resources Ltd.* ....... 71,856
---------------
PHARMACEUTICAL PREPARATIONS--1.0%
714 Adams Respiratory Therapeutics, Inc.* ...... 30,773
---------------
PHARMACEUTICALS--3.1%
1,185 Auxilium Pharmaceuticals Inc.* ............. 14,931
1,395 Salix Pharmaceuticals, Ltd.* ............... 18,595
2,100 Schering-Plough Corporation ................ 46,494
350 Shire Plc .................................. 19,198
---------------
99,218
---------------
RESTAURANTS--.9%
1,045 McCormick & Schmick's Seafood Restaurants,
Inc.* ................................... 27,473
---------------

-46-

THE ALGER INSTITUTIONAL FUNDS
ALGER GREEN INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
ROAD & RAIL--.8%
345 Burlington Northern Santa Fe Corporation ... 26,748
---------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--4.8%
840 Advanced Micro Devices, Inc.* .............. 17,867
1,160 Marvell Technology Group Ltd.* ............. 21,205
1,975 Microsemi Corporation* ..................... 38,710
1,720 Tessera Technologies Inc.* ................. 60,045
1,100 Ultra Clean Holdings, Inc.* ................ 14,355
---------------
152,182
---------------
SOFTWARE--6.5%
500 Adobe Systems Incorporated ................. 19,125
425 Citrix Systems, Inc.* ...................... 12,550
1,480 Microsoft Corporation ...................... 42,491
2,360 Symantec Corporation* ...................... 46,822
3,155 Synchronoss Technologies Inc. * ............ 31,771
260 THQ Inc. * ................................. 7,818
1,570 VeriFone Holdings Inc.* .................... 45,860
---------------
206,437
---------------
SPECIALTY RETAIL--6.7%
285 Abercrombie & Fitch Co. Cl. A .............. 21,845
430 Best Buy Co., Inc. ......................... 23,757
360 CarMax, Inc.* .............................. 15,948
2,805 Circuit City Stores, Inc. .................. 75,679
670 Crocs, Inc.* ............................... 26,545
1,010 Gamestop Corp. Cl. A* ...................... 51,571
---------------
215,345
---------------
TEXTILES, APPAREL & LUXURY GOODS--1.2%
535 Polo Ralph Lauren Corporation Cl. A ........ 37,985
---------------
TEXTILES & APPAREL--.8%
1,420 Iconix Brand Group, Inc.* .................. 26,469
---------------
UTILITIES--1.1%
570 Veolia Environnement ....................... 34,884
---------------
WIRELESS TELECOMMUNICATION SERVICES--6.8%
590 America Movil S.A. de C.V. Series L ADR# ... 25,293
3,253 American Tower Corporation Cl. A* .......... 117,173
750 NII Holdings Inc. Cl. B* ................... 48,773
1,345 Sprint Nextel Corporation .................. 25,139
---------------
216,378
---------------
Total Common Stocks
(Cost $2,713,889) ....................... 2,999,726
---------------

-47-

THE ALGER INSTITUTIONAL FUNDS
ALGER GREEN INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

PRINCIPAL
AMOUNT VALUE
- -------------- ---------------
SHORT-TERM INVESTMENTS--7.0%
U.S. AGENCY OBLIGATIONS
$ 225,000 Federal National Mortgage Association,
4.95%, 11/1/06
(Cost $225,000) ......................... $ 225,000
---------------
Total Investments
(Cost $2,938,889)(a) ............................. 100.9% 3,224,726
Liabilities in Excess of Other Assets ............... (.9) (26,223)
----- ---------------
Net Assets .......................................... 100.0% $ 3,198,503
===== ===============

- ----------
* Non-income producing securities.

# American Depositary Receipts.

(a) At October 31, 2006, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $2,950,479 amounted to $274,247
which consisted of aggregate gross unrealized appreciation of $335,192 and
aggregate gross unrealized depreciation of $60,945.

See Notes to Financial Statements.

-48-

THE ALGER INSTITUTIONAL FUNDS
ALGER TECHNOLOGY INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS--94.1%
COMMERCIAL SERVICES & SUPPLIES--4.4%
2,470 Net 1 UEPS Technologies, Inc.* ............. $ 60,836
10,880 Traffic.com, Inc.* ......................... 58,534
---------------
119,370
---------------
COMMUNICATION EQUIPMENT--9.0%
3,865 Cisco Systems, Inc.* ....................... 93,262
2,340 Corning Incorporated* ...................... 47,806
1,945 Motorola, Inc. ............................. 44,852
480 Research In Motion Limited* ................ 56,390
---------------
242,310
---------------
COMPUTER SERVICES--1.0%
3,310 Embarcadero Technologies, Inc.* ............ 27,473
---------------
COMPUTER SOFTWARE--1.0%
1,395 Parametric Technology Corporation* ......... 27,258
---------------
COMPUTERS & PERIPHERALS--7.5%
1,220 Apple Computer, Inc.* ...................... 98,918
4,325 EMC Corporation* ........................... 52,981
1,400 Network Appliance, Inc. * .................. 51,100
---------------
202,999
---------------
INFORMATION TECHNOLOGY SERVICES--4.9%
485 Cognizant Technology Solutions Corporation
Cl. A* .................................. 36,511
3,340 Kanbay International Inc.* ................. 94,856
---------------
131,367
---------------
INTERNET & CATALOG RETAIL--5.4%
4,540 eBay Inc.* ................................. 145,870
---------------
INTERNET SOFTWARE & SERVICES--17.0%
2,460 Allscripts Healthcare Solutions, Inc.* ..... 58,031
3,280 DealerTrack Holdings Inc.* ................. 83,607
205 Google Inc. Cl. A* ......................... 97,660
6,720 Omniture Inc.* ............................. 61,018
1,280 WebEx Communications, Inc.* ................ 49,216
1,975 WebSideStory, Inc.* ........................ 25,774
3,140 Yahoo! Inc. * .............................. 82,708
---------------
458,014
---------------
LEISURE & ENTERTAINMENT--2.4%
4,840 CKX, Inc.* ................................. 66,308
---------------
MEDIA--10.8%
2,365 Cablevision Systems New York Group Cl. A* .. 65,723
1,225 Clear Channel Communications, Inc.* ........ 42,691
295 DreamWorks Animation SKG, Inc. Cl. A* ...... 7,803
1,120 Focus Media Holding Limited ADR*# .......... 59,237
14,485 Sirius Satellite Radio Inc.* ............... 55,478
5,200 XM Satellite Radio Holdings Inc. Cl. A* .... 60,632
---------------
291,564
---------------

-49-

THE ALGER INSTITUTIONAL FUNDS
ALGER TECHNOLOGY INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2006

SHARES VALUE
- -------------- ---------------
COMMON STOCKS (CONTINUED)
SEMICONDUCTOR CAPITAL EQUIPMENT--3.0%
2,885 SIRF Technology Holdings, Inc.* ............ $ 81,126
---------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--6.4%
3,110 Marvell Technology Group Ltd.* ............. 56,851
2,770 Microsemi Corporation* ..................... 54,292
1,770 Tessera Technologies Inc.* ................. 61,791
---------------
172,934
---------------
SOFTWARE--21.3%
1,375 Adobe Systems Incorporated ................. 52,594
3,575 BEA Systems, Inc.* ......................... 58,165
715 Electronic Arts Inc.* ...................... 37,816
3,575 Microsoft Corporation ...................... 102,638
4,855 Oracle Corporation* ........................ 89,672
1,945 Quest Software, Inc. * ..................... 28,650
3,965 Symantec Corporation* ...................... 78,666
4,415 Synchronoss Technologies Inc. * ............ 44,459
2,960 Tibco Software Inc.* ....................... 27,380
1,895 VeriFone Holdings Inc.* .................... 55,353
---------------
575,393
---------------
Total Common Stocks
(Cost $2,299,379) ....................... 2,541,986
---------------

PRINCIPAL
AMOUNT
- --------------
SHORT-TERM INVESTMENTS--4.6%
U.S. AGENCY OBLIGATIONS
$ 124,000 Federal National Mortgage Association,
4.95%, 11/1/06 (Cost $124,000) .......... 124,000
---------------
Total Investments
(Cost $2,423,379)(a) ............................. 98.7% 2,665,986
Other Assets in Excess of Liabilities ............... 1.3 36,047
----- ---------------
Net Assets .......................................... 100.0% $ 2,702,033
===== ===============

- ----------
* Non-income producing securities.

# American Depositary Receipts.

(a) At October 31, 2006, the net unrealized appreciation on investments, based
on cost for federal income tax purposes of $2,494,537 amounted to $171,449
which consisted of aggregate gross unrealized appreciation of $335,345 and
aggregate gross unrealized depreciation of $163,896.

See Notes to Financial Statements.

-50-

THE ALGER FUNDS
ALGER CORE FIXED-INCOME INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2006

PRINCIPAL
AMOUNT VALUE
- -------------- ---------------
SHORT-TERM INVESTMENTS--99.2%
U.S. AGENCY OBLIGATIONS
$ 2,610,000 Federal National Mortgage Association,
4.95%, 11/1/06
(Cost $2,610,000) ....................... $ 2,610,000
---------------

Total Investments
(Cost $2,610,000)(a) ............................. 99.2% 2,610,000
Other Assets in Excess of Liabilities ............... .8 21,079
----- ---------------
Net Assets .......................................... 100.0% $ 2,631,079
===== ===============

- ----------
(a) At October 31, 2006, the net unrealized appreciation on investments, based
on cost for federal income tax purposes was the same as the cost for
financial reporting purposes.

See Notes to Financial Statements.

-51-

[This page intentionally left blank.]

-52-

THE ALGER INSTITUTIONAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 2006

LargeCap SmallCap MidCap
Growth Growth Growth
Fund Fund Fund
------------ ------------ --------------

ASSETS:
Investments In securities, at value
(Identified cost)*--see accompanying
schedules of investments .................. $111,612,156 $313,268,812 $1,401,878,182
Cash ......................................... 16,915 17,031 1,898,811
Receivable for investment securities sold .... 5,834,358 6,599,681 90,925,098
Receivable for shares of beneficial
interest sold ............................. 222,261 2,743,405 1,241,482
Dividends and interest receivable ............ 38,062 11,735 151,087
Receivable from Investment Manager
--Note 3(a) ............................... -- -- --
Prepaid Expenses ............................. 37,835 60,395 296,765
------------ ------------ --------------
Total Assets .............................. 117,761,587 322,701,059 1,496,391,425
------------ ------------ --------------
LIABILITIES:
Payable for investment securities purchased .. 5,758,350 6,923,692 96,753,934
Payable for shares of beneficial interest
redeemed .................................. 139,809 1,535,439 5,139,109
Accured investment management fees ........... 72,972 204,677 958,161
Accured transfer agent fees .................. 9,060 44,687 30,731
Accured distribution fees .................... 2,331 3,323 18,880
Accured shareholder servicing fees ........... 24,324 46,119 299,425
Accured expenses ............................. 47,639 81,862 336,242
------------ ------------ --------------
Total Liabilites .......................... 6,054,485 8,839,799 103,536,482
------------ ------------ --------------
NET ASSETS ................................... $111,707,102 $313,861,260 $1,392,854,943
============ ============ ==============
Net assets Consist of:
Paid in capital ........................... $125,837,052 $336,948,552 $1,220,951,497
Undistributed net investment income
(accumulated loss) ...................... -- -- --
Undistributed net realized gain
(accumulated loss) ...................... (20,602,781) (53,164,895) 86,473,038
Net unrealized appreciation (depreciation)
of investments .......................... 6,472,831 30,077,603 85,430,408
------------ ------------ --------------
NET ASSETS ................................... $111,707,102 $313,861,260 $1,392,854,943
============ ============ ==============
Shares of beneficial interest
outstanding--Note 6
Class I ................................... 8,027,519 12,754,611 78,060,307
============ ============ ==============
Class R ................................... 411,972 340,000 2,557,653
============ ============ ==============
Net Asset Value Per Share
Class I ................................... $ 13.25 $ 23.98 $ 17.29
============ ============ ==============
Class R ................................... $ 13.04 $ 23.58 $ 16.95
============ ============ ==============
* Identified Cost ............................ $105,139,325 $283,191,209 $1,316,447,774
============ ============ ==============

See Notes to Financial Statements.

-53-

Capital Core
Appreciation Balanced Green Technology Fixed-Income
Fund Fund Fund Fund Fund
------------- ----------- ---------- ---------- ------------

ASSETS:
Investments In securities, at value
(Identified cost)*--see accompanying
schedules of investments .................. $ 173,263,870 $ 45,802 $3,224,726 $2,665,986 $ 2,610,000
Cash ......................................... 17,764 12,728 8,136 54,591 4,056
Receivable for investment securities sold .... 4,904,438 4,496 41,943 23,828 5,207
Receivable for shares of beneficial
interest sold ............................. 689,043 -- 3,729 -- --
Dividends and interest receivable ............ 22,180 517 398 676 --
Receivable from Investment Manager
--Note 3(a) ............................... -- 13,979 20,123 10,167 10,081
Prepaid Expenses ............................. 45,980 14,012 14,477 14,363 14,473
------------- ----------- ---------- ---------- ------------
Total Assets .............................. 178,943,275 91,534 3,313,532 2,769,611 2,643,817
------------- ----------- ---------- ---------- ------------
LIABILITIES:
Payable for investment securities purchased .. 6,900,437 3,451 86,496 53,739 --
Payable for shares of beneficial interest
redeemed .................................. 422,645 -- -- -- --
Accured investment management fees ........... 125,129 88 2,058 1,952 863
Accured transfer agent fees .................. 10,213 5,283 5,262 5,419 5,354
Accured distribution fees .................... 2,581 29 318 43 45
Accured shareholder servicing fees ........... 36,803 29 686 574 575
Accured expenses ............................. 54,007 15,436 20,209 5,851 5,901
------------- ----------- ---------- ---------- ------------
Total Liabilites .......................... 7,551,815 24,316 115,029 67,578 12,738
------------- ----------- ---------- ---------- ------------
NET ASSETS ................................... $ 171,391,460 $ 67,218 $3,198,503 $2,702,033 $ 2,631,079
============= =========== ========== ========== ============
Net assets Consist of:
Paid in capital ........................... $ 233,036,721 $ (39,331) $2,567,370 $2,774,246 $ 2,641,636
Undistributed net investment income
(accumulated loss) ...................... -- 14,202 -- -- 784
Undistributed net realized gain
(accumulated loss) ...................... (73,980,745) 89,578 345,296 (314,820) (11,341)
Net unrealized appreciation (depreciation)
of investments .......................... 12,335,484 2,769 285,837 242,607 --
------------- ----------- ---------- ---------- ------------
NET ASSETS ................................... $ 171,391,460 $ 67,218 $3,198,503 $2,702,033 $ 2,631,079
============= =========== ========== ========== ============
Shares of beneficial interest
outstanding--Note 6
Class I ................................... 10,493,001 1 369,990 258,177 255,240
============= =========== ========== ========== ============
Class R ................................... 385,751 8,866 116,158 10,000 10,306
============= =========== ========== ========== ============
Net Asset Value Per Share
Class I ................................... $ 15.77 $ 7.82 $ 6.61 $ 10.08 $ 9.91
============= =========== ========== ========== ============
Class R ................................... $ 15.47 $ 7.58 $ 6.48 $ 10.04 $ 9.90
============= =========== ========== ========== ============
* Identified Cost ............................ $ 160,928,386 $ 43,033 $2,938,889 $2,423,379 $ 2,610,000
============= =========== ========== ========== ============

-54-

THE ALGER INSTITUTIONAL FUNDS
STATEMENTS OF OPERATIONS
For the year ended October 31, 2006

LargeCap SmallCap MidCap
Growth Growth Growth
Fund Fund Fund
------------ ------------ --------------

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding
taxes*) ................................. $ 993,505 $ 282,102 $ 5,622,807
Interest .................................. 153,845 517,604 2,185,436
------------ ------------ --------------
Total Income ............................ 1,147,350 799,706 7,808,243
------------ ------------ --------------

Expenses:
Management Fees--Note 3(a) ................ 760,483 1,186,483 10,511,251
Shareholder servicing fees--Note 3 (d) .... 253,494 274,051 3,284,766
Custodian Fees ............................ 47,971 37,349 131,930
Transfer agent fees and expenses--
Note 3 (e) .............................. 79,131 185,807 168,891
Professional Fees ......................... 26,534 43,237 264,194
Printing fees ............................. 18,798 47,553 268,767
Distribution fees--Note 3(b) .............. 22,943 23,927 179,716
Trustees fees ............................. 1,780 2,337 23,056
Interest expense .......................... 156 3,345 13,421
Registration Fees ......................... 23,747 36,747 30,159
Miscellaneous ............................. 14,421 16,836 154,505
------------ ------------ --------------
1,249,458 1,857,672 15,030,656

Less, expense reimbursements Note 3(a) ....... -- -- --
------------ ------------ --------------
Total Expenses ............................ 1,249,458 1,857,672 15,030,656
------------ ------------ --------------
NET INVESTMENT INCOME (LOSS) ................. (102,108) (1,057,966) (7,222,413)
------------ ------------ --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) on investments ... 4,639,319 9,465,333 100,431,744
Net realized gain (loss) on foreign
currency transactions ................... 1,752 -- (44,787)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ................... 398,233 21,907,507 13,901,396
------------ ------------ --------------
Net realized and unrealized gain (loss) on
investments and foreign currency ........ 5,039,304 31,372,840 114,288,353
------------ ------------ --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............... $ 4,937,196 $ 30,314,874 $ 107,065,940
============ ============ ==============
* Foreign withholding taxes $ 1,428 -- $ 33,292
============ ============ ==============

- ----------
** Commenced operations March 1, 2006.

See Notes to Financial Statements.

-55-

Capital Core
Appreciation Balanced Green Technology Fixed-Income
Fund Fund Fund Fund** Fund**
------------- ----------- ---------- ---------- ------------

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding
taxes*) ................................. $ 1,145,643 $ 10,999 $ 13,099 $ 2,829 $ --
Interest .................................. 196,924 26,213 4,658 8,046 161,661
------------- ----------- ---------- ---------- ------------
Total Income ............................ 1,342,567 37,212 17,757 10,875 161,661
------------- ----------- ---------- ---------- ------------

Expenses:
Management Fees--Note 3(a) ................ 1,291,980 12,287 18,503 24,696 11,814
Shareholder servicing fees--Note 3 (d) .... 379,994 4,096 6,168 7,263 7,876
Custodian Fees ............................ 47,414 38,187 37,282 4,306 4,184
Transfer agent fees and expenses--
Note 3 (e) .............................. 82,712 69,954 70,375 42,043 41,996
Professional Fees ......................... 33,468 8,843 7,734 3,411 3,572
Printing fees ............................. 34,403 1,624 5,824 306 361
Distribution fees--Note 3(b) .............. 17,384 898 2,308 310 337
Trustees fees ............................. 2,669 31 55 50 54
Interest expense .......................... 8,591 83 220 518 --
Registration Fees ......................... 23,542 23,541 23,559 23,443 23,443
Miscellaneous ............................. 22,894 1,715 1,774 1,549 1,559
------------- ----------- ---------- ---------- ------------
1,945,051 161,259 173,802 107,895 95,196

Less, expense reimbursements Note 3(a) ....... -- (139,875) (140,651) (71,266) (75,955)
------------- ----------- ---------- ---------- ------------
Total Expenses ............................ 1,945,051 21,384 33,151 36,629 19,241
------------- ----------- ---------- ---------- ------------
NET INVESTMENT INCOME (LOSS) ................. (602,484) 15,828 (15,394) (25,754) 142,420
------------- ----------- ---------- ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) on investments ... 28,626,224 94,353 361,216 (314,820) (11,341)
Net realized gain (loss) on foreign
currency transactions ................... (3,355) (23) (18) -- --
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ................... (2,086,159) (64,495) 78,477 242,607 --
------------- ----------- ---------- ---------- ------------
Net realized and unrealized gain (loss) on
investments and foreign currency ........ 26,536,710 29,835 439,675 (72,213) (11,341)
------------- ----------- ---------- ---------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............... $ 25,934,226 $ 45,663 $ 424,281 $ (97,967) $ 131,079
============= =========== ========== ========== ============
* Foreign withholding taxes $ 1,678 $ 16 $ 35 -- --
============= =========== ========== ========== ============

-56-
THE ALGER INSTITUTIONAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS

LargeCap
Growth
Fund
-----------------------------
For the For the
Year Ended Year Ended
October 31, October 31,
2006 2005
------------- -------------

Net investment income (loss) ........................... $ (102,108) $ 274,397
Net realized gain on investments and foreign
currency transactions ............................... 4,641,071 13,970,405
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ............................... 398,233 (267,665)
------------- -------------
Net increase in net assets
resulting from operations ........................... 4,937,196 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 ............................................. 15,167,055 (14,888,992)
Class R ............................................. 1,326,484 871,501
------------- -------------
Net increase (decrease) from shares
of beneficial interest transactions--Note 6 ......... 16,493,539 (14,017,491)
------------- -------------
Total increase (decrease) ........................... 21,156,152 (40,354)
Net Assets:
Beginning of year ................................... 90,550,950 90,591,304
------------- -------------
End of year ......................................... $ 111,707,102 $ 90,550,950
============= =============
Undistributed net investment income
(accumulated loss) .................................. -- $ 274,397
============= =============

See Notes to Financial Statements.

-57-

SmallCap MidCap
Growth Growth
Fund Fund
---------------------------------- ----------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
October 31, October 31, October 31, October 31,
2006 2005 2006 2005
--------------- --------------- --------------- ---------------

Net investment income (loss) .......................... $ (1,057,966) $ (520,700) $ (7,222,413) $ (6,585,119)
Net realized gain on investments and foreign
currency transactions .............................. 9,465,333 12,443,285 100,386,957 128,514,342
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations .............................. 21,907,507 3,593,847 13,901,396 18,827,371
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations .......................... 30,314,874 15,516,432 107,065,940 140,756,594
--------------- --------------- --------------- ---------------
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 ............................................ 205,029,616 (13,839,314) 271,608,898 129,721,799
Class R ............................................ 4,805,444 1,962,273 21,821,311 8,168,446
--------------- --------------- --------------- ---------------
Net increase (decrease) from shares
of beneficial interest transactions--Note 6 ........ 209,835,060 (11,877,041) 293,430,209 137,890,245
--------------- --------------- --------------- ---------------
Total increase (decrease) .......................... 240,149,934 3,639,391 277,241,545 264,340,474
Net Assets:
Beginning of year .................................. 73,711,326 70,071,935 1,115,613,398 851,272,924
--------------- --------------- --------------- ---------------
End of year ........................................ $ 313,861,260 $ 73,711,326 $ 1,392,854,943 $ 1,115,613,398
=============== =============== =============== ===============
Undistributed net investment income
(accumulated loss) ................................. -- -- -- --
=============== =============== =============== ===============

-58-

THE ALGER INSTITUTIONAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS

Capital
Appreciation
Fund
-----------------------------
For the For the
Year Ended Year Ended
October 31, October 31,
2006 2005
------------- -------------

Net investment income (loss) ........................... $ (602,484) $ 46,145
Net realized gain (loss) on investments and foreign
currency transactions ............................... 28,622,869 20,951,677
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations ............................... (2,086,159) 2,819,558
------------- -------------
Net increase (decrease) in net assets resulting
from operations ..................................... 25,934,226 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 ............................................. 11,370,464 (19,901,503)
Class R ............................................. 4,414,281 208,163
------------- -------------
Net increase (decrease) from shares
of beneficial interest transactions--Note 6 ......... 15,784,745 (19,693,340)
------------- -------------
Total increase (decrease) ........................... 41,672,485 4,124,040
Net Assets:
Beginning of period ................................. 129,718,975 125,594,935
------------- -------------
End of period ....................................... $ 171,391,460 $ 129,718,975
============= =============
Undistributed net investment income
(accumulated loss) .................................. -- $ 46,145
============= =============

- ----------
* Commenced operations March 1, 2006.

See Notes to Financial Statements.

-59-

Core
Balanced Green Technology Fixed-Income
Fund Fund Fund* Fund*
------------------------ ------------------------ ------------ ------------
For the For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Period Ended Period Ended
October 31, October 31, October 31, October 31, October 31, October 31,
2006 2005 2006 2005 2006 2006
----------- ----------- ----------- ----------- ----------- ------------

Net investment income (loss) ...................... $ 15,828 $ 14,180 $ (15,394) $ (5,952) $ (25,754) $ 142,420
Net realized gain (loss) on investments
and foreign currency transactions .............. 94,330 147,670 361,198 209,975 (314,820) (11,341)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations .......................... (64,495) (4,164) 78,477 85,690 242,607 --
----------- ----------- ----------- ----------- ----------- ------------
Net increase (decrease) in net assets resulting
from operations ................................ 45,663 157,686 424,281 289,713 (97,967) 131,079
----------- ----------- ----------- ----------- ----------- ------------
Dividends and distributions to shareholders from:
Net investment income
Class I ........................................ (11,462) (12,752) -- -- -- (138,607)
Class R ........................................ (566) (1,011) -- -- -- (3,029)
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) -- (141,636)
----------- ----------- ----------- ----------- ----------- ------------
Increase (decrease) from shares
of beneficial interest transactions:
Class I ........................................ (1,458,018) 20,615 775,455 34,899 2,700,000 2,538,607
Class R ........................................ (123,131) 23,053 342,318 214,520 100,000 103,029
----------- ----------- ----------- ----------- ----------- ------------
Net increase (decrease) from shares
of beneficial interest transactions--Note 6 .... (1,581,149) 43,668 1,117,773 249,419 2,800,000 2,641,636
----------- ----------- ----------- ----------- ----------- ------------
Total increase (decrease) ...................... (1,681,164) 147,690 1,338,845 475,242 2,702,033 2,631,079
Net Assets:
Beginning of period ............................ 1,748,382 1,600,692 1,859,658 1,384,416 -- --
----------- ----------- ----------- ----------- ----------- ------------
End of period .................................. $ 67,218 $ 1,748,382 $ 3,198,503 $ 1,859,658 $ 2,702,033 $ 2,631,079
=========== =========== =========== =========== =========== ============
Undistributed net investment income
(accumulated loss) ............................. -- -- -- -- -- --
=========== =========== =========== =========== =========== ============

-60-

THE ALGER INSTITUTIONAL FUNDS
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
Year ended 10/31/06 ............... $ 12.56 $ (0.01) $ 0.74 $ 0.73 $ (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) -- --

CLASS R
Year ended 10/31/06 ............... $ 12.39 $ (0.08) $ 0.73 $ 0.65 $ -- $ --
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
Year ended 10/31/06 ............... $ 19.97 $ (0.16) $ 4.17 $ 4.01 $ -- $ --
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) -- --

CLASS R
Year ended 10/31/06 ............... $ 19.74 $ (0.28) $ 4.12 $ 3.84 $ -- $ --
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
Year ended 10/31/06 ............... $ 17.57 $ (0.09) $ 1.69 $ 1.60 $ -- $ (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) -- --

CLASS R
Year ended 10/31/06 ............... $ 17.34 $ (0.18) $ 1.67 $ 1.49 $ -- $ (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.

See Notes to Financial Statements.

-61-

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
Year ended 10/31/06 ............... $ (0.04) $ 13.25 5.8% $ 106,335 1.21% (0.08)% 322.72%
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

CLASS R
Year ended 10/31/06 ............... $ -- $ 13.04 5.3% $ 5,372 1.71% (0.59)% 322.72%
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
Year ended 10/31/06 ............... $ -- $ 23.98 20.1% $ 305,843 1.31% (0.74)% 88.67%
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

CLASS R
Year ended 10/31/06 ............... $ -- $ 23.58 19.5% $ 8,018 1.83% (1.26)% 88.67%
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
Year ended 10/31/06 ............... $ (1.88) $ 17.29 9.5% $ 1,349,500 1.13% (0.54)% 253.59%
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

CLASS R
Year ended 10/31/06 ............... $ (1.88) $ 16.95 9.0% $ 43,355 1.63% (1.05)% 253.59%
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

-62-

THE ALGER INSTITUTIONAL FUNDS
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
Year ended 10/31/06 ............... $ 13.28 $ (0.06) $ 2.55 $ 2.49 $ -- $ --
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) -- --

CLASS R
Year ended 10/31/06 ............... $ 13.09 $ (0.15) $ 2.53 $ 2.38 $ -- $ --
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
Year ended 10/31/06 ............... $ 7.99 $ 0.08 $ 0.42 $ 0.50 $ (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) -- --

CLASS R
Year ended 10/31/06 ............... $ 7.90 $ 0.05 $ 0.26 $ 0.31 $ (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 GREEN INSTITUTIONAL FUND

CLASS I
Year ended 10/31/06 ............... $ 6.17 $ (0.03) $ 1.13 $ 1.10 $ -- $ (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) -- --

CLASS R
Year ended 10/31/06 ............... $ 6.09 $ (0.06) $ 1.11 $ 1.05 $ -- $ (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 -- --

- ----------
(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.

(x) Amount has been reduced by 0.75% due to expense reimbursement.

(xi) Amount has been reduced by 0.94% due to expense reimbursement.

See Notes to Financial Statements.

-63-

ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND

CLASS I
Year ended 10/31/06 ............... $ -- $ 15.77 18.7% $ 165,422 1.27% (0.38)% 225.25%
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

CLASS R
Year ended 10/31/06 ............... $ -- $ 15.47 18.2% $ 5,969 1.79% (0.9)% 225.25%
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
Year ended 10/31/06 ............... $ (0.67) $ 7.82 4.5% $ --(xvii) 1.25%(xiii) 1.01% 299.37%
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

CLASS R
Year ended 10/31/06 ............... $ (0.63) $ 7.58 3.9% $ 67 1.75%(xiv) 0.62% 299.37%
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 GREEN INSTITUTIONAL FUND

CLASS I
Year ended 10/31/06 ............... $ (0.66) $ 6.61 19.1% $ 2,446 1.25%(xv) (0.53)% 209.65%
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

CLASS R
Year ended 10/31/06 ............... $ (0.66) $ 6.48 18.4% $ 753 1.75%(xvi) (1.04)% 209.65%
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

- -----------
(xii) Amount has been reduced by 0.73% due to expense reimbursement.

(xiii) Amount has been reduced by 7.95% due to expense reimbursement.

(xiv) Amount has been reduced by 13.24% due to expense reimbursement.

(xv) Amount has been reduced by 5.79% due to expense reimbursement.

(xvi) Amount has been reduced by 1.75% due to expense reimbursement.

(xvii) Amount is less than $1,000.00.

-64-

THE ALGER INSTITUTIONAL FUNDS
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 10/31/06(i)(ii) .... $10.00 $ (0.06) $ 0.14 $ 0.08 $ --

CLASS R
From 3/1/06 to 10/31/06(i)(ii) .... $10.00 $ (0.09) $ 0.13 $ 0.04 $ --

ALGER CORE FIXED-INCOME INSTITUTIONAL FUND

CLASS I
From 3/1/06 to 10/31/06(i)(ii) .... $10.00 $ 0.32 $(0.08) $ 0.24 $(0.33)

CLASS R
From 3/1/06 to 10/31/06(i)(ii) .... $10.00 $ 0.27 $(0.06) $ 0.21 $(0.31)

- ----------
(i) Commenced operations March 1, 2006.

(ii) 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 2.45% due to expense reimbursement.

(v) Amount has been reduced by 2.41% due to expense reimbursement.

See Notes to Financial Statements.

-65-

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 10/31/06(i)(ii) .... $10.08 0.8% $ 2,602 1.25%(iv) (0.88)% 144.96%

CLASS R
From 3/1/06 to 10/31/06(i)(ii) .... $10.04 0.4% $ 100 1.75%(iv) (1.38)% 144.96%

ALGER CORE FIXED-INCOME INSTITUTIONAL FUND

CLASS I
From 3/1/06 to 10/31/06(i)(ii) .... $ 9.91 2.5% $ 2,529 0.60%(v) 4.53% 279.74%

CLASS R
From 3/1/06 to 10/31/06(i)(ii) .... $ 9.90 2.0% $ 102 1.10%(v) 4.00% 279.74%

-66-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS

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, Green Fund,
Technology Fund and Core Fixed-Income Fund (collectively, the "Funds" or
individually, each a "Fund"). Prior to October 19, 2006, the Socially
Responsible Growth Fund was renamed the Alger Green Institutional Fund. The
LargeCap Growth Fund, SmallCap Growth Fund, MidCap Growth Fund, Capital
Appreciation Fund, Green 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.

-67-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (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, pursuant to
policies established by 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.

In September 2006, the Financial Accounting Standards Board (FASB) issued
STATEMENT ON FINANCIAL ACCOUNTING STANDARDS NO. 157, "FAIR VALUE MEASUREMENTS"
(FAS 157). This standard clarifies the definition of fair value for financial
reporting, establishes a framework for measuring fair value and requires
additional disclosures about the use of fair value measurements. FAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007 and interim periods within those fiscal years. As of October
31, 2006 the Funds do not believe the adoption of FAS 157 will impact the
amounts reported in the financial statements, however, additional disclosures
will be required about the inputs used to develop the measurements of fair value
and the effect of certain of the measurements reported in the statement of
operations for a fiscal period.

(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.

-68-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(d) REPURCHASE AGREEMENTS: The Funds enter into repurchase agreements with
approved institutions. The repurchase agreements are collateralized by U.S.
Government and agency 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 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. There were no securities on loan during the
year ended October 31, 2006.

(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

-69-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

tax provision is required. Each Fund is treated as a separate entity for the
purpose of determining such compliance.

On July 13, 2006, the Financial Accounting Standards Board (FASB) released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Adoption of
FIN 48 is required for fiscal years beginning after December 15, 2006 and is to
be applied to all open tax years as of the effective date. At this time,
management is evaluating the implications of FIN 48 and its impact in the
financial statements has not yet been determined.

(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.

(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, ADVISORY AND ADMINISTRATION FEES: Prior to September
12, 2006, Fred Alger Management, Inc. ("Alger Management") provided both
advisory services and administrative services to each Fund pursuant to a
separate investment management agreement with each Fund. Effective September 12,
2006, the services provided by Alger Management to each Fund were bifurcated
into two separate agreements--an investment advisory agreement and an
administration agreement. Fees for these services incurred by each Fund,
pursuant to the relevant agreement, are payable monthly and computed based on
the value of the average daily net assets of each Fund, at the following rates:

-70-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

MANAGEMENT FEE ADVISORY FEE ADMINISTRATION FEE
THROUGH EFFECTIVE EFFECTIVE
SEPTEMBER 11, 2006 SEPTEMBER 12, 2006 SEPTEMBER 12, 2006
------------------ ------------------ ------------------

LargeCap Growth Fund ....... .750% .710% .04%
SmallCap Growth Fund ....... .850 .810 .04
MidCap Growth Fund ......... .800 .760 .04
Capital Appreciation Fund .. .850 .810 .04
Balanced Fund .............. .750 .710 .04
Green Fund ................. .750 .710 .04
Technology Fund ............ .850 .810 .04
Core Fixed-Income Fund ..... .375 .335 .04

Alger Management has established an expense cap for the Balanced Fund and
the Green Fund effective March 1, 2004 and for the Technology Fund and the Core
Fixed-Income Fund effective March 1, 2006. Alger Management will reimburse the
Balanced Fund, Green 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 R shares,
respectively, of average daily net assets. For the year ended October 31, 2006,
Alger Management reimbursed the Balanced Fund, the Green Fund, the Technology
Fund and the Core Fixed-Income Fund $139,875, $140,651, $71,266 and $75,955,
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 year ended October 31, 2006, the LargeCap
Growth Fund, the SmallCap Growth Fund, the MidCap Growth Fund, the Capital
Appreciation Fund, the Balanced Fund, the Green Fund and the Technology Fund
paid the Distributor commissions of $378,136, $203,537, $3,575,887, $378,403,
$4,485, $5,833 and $4,804 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 of Boston Financial Data Services, Inc., the
transfer agent ("BFDS") and other related services. During the year

-71-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

ended October 31, 2006, the LargeCap Growth Fund, the SmallCap Growth Fund, the
MidCap Growth Fund, the Capital Appreciation Fund, the Balanced Fund, Green
Fund, Technology Fund and the Core Fixed-Income Fund incurred fees of $269,
$27,318, $5,878, $547, $15, $117, $5 and $5 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. The Trust pays each trustee who is not affiliated with Alger
Management or its affiliates an annual fee of $8,000. At October 31, 2006, Alger
Management and its affiliates owned 4,815 shares, 270,956 shares, 268,177 shares
and 265,546 shares of the SmallCap Growth Fund, the Green 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 year ended October 31, 2006:

PURCHASES SALES
--------------- --------------
LargeCap Growth Fund ........................ $ 334,447,924 $ 316,570,095
SmallCap Growth Fund ........................ 311,447,986 119,090,953
MidCap Growth Fund .......................... 3,382,197,587 3,192,133,467
Capital Appreciation Fund ................... 348,298,911 331,992,824
Balanced Fund ............................... 4,154,979 5,810,283
Green Fund .................................. 5,620,408 4,835,422
Technology Fund ............................. 8,334,323 5,720,124
Core Fixed-Income Fund ...................... 10,280,663 10,273,246

NOTE 5--LINES OF CREDIT:

The Trust participates in committed lines of credit with other mutual
funds managed by Alger Management. All borrowings have variable interest rates
and are payable on demand.

With the exception of the Capital Appreciation Fund and the Technology
Fund, the Trust borrows under such lines of credit exclusively for temporary or
emergency purposes. The Capital Appreciation Fund and the Technology Fund, may
each borrow under these lines up to 1/3 of the value of their assets, to
purchase additional securities. To the extent the Capital Appreciation Fund or
the Technology Fund borrow under these lines, they must pledge securities with
a total value of at least twice the amount borrowed. For the year ended October
31, 2006, the Trust had the following borrowings:

-72-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

AVERAGE WEIGHTED AVERAGE
BORROWING INTEREST RATE
--------- ----------------
LargeCap Growth Fund ............................ $ 3,126 4.90%
SmallCap Growth Fund ............................ 64,970 5.15
MidCap Growth Fund .............................. 233,625 5.59
Capital Appreciation Fund ....................... 157,534 5.42
Balanced Fund ................................... 1,407 5.91
Green Fund ...................................... 3,709 5.93
Technology Fund ................................. 8,726 5.94

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 year ended October 31, 2006, transactions of shares of
beneficial interest were as follows:

SHARES AMOUNT
----------- --------------
LargeCap Growth Fund
Class I
Shares sold ............................... 3,921,109 $ 51,683,461
Dividends reinvested ...................... 20,722 273,536
Shares redeemed ........................... (2,817,147) (36,789,942)
----------- --------------
Net increase .............................. 1,124,684 $ 15,167,055
=========== ==============
Class R
Shares sold ............................... 219,484 $ 2,803,283
Shares redeemed ........................... (116,309) (1,476,799)
----------- --------------
Net increase .............................. 103,175 $ 1,326,484
=========== ==============
SmallCap Growth Fund
Class I
Shares sold ............................... 12,642,855 $ 281,936,224
Shares redeemed ........................... (3,454,359) (76,906,608)
----------- --------------
Net increase .............................. 9,188,496 $ 205,029,616
=========== ==============
Class R
Shares sold ............................... 298,488 $ 6,671,538
Shares redeemed ........................... (84,486) (1,866,094)
----------- --------------
Net increase .............................. 214,002 $ 4,805,444
=========== ==============
MidCap Growth Fund
Class I
Shares sold ............................... 32,177,723 $ 552,880,702
Dividends reinvested ...................... 7,207,281 119,857,101
Shares redeemed ........................... (23,558,169) (401,128,905)
----------- --------------
Net increase .............................. 15,826,835 $ 271,608,898
=========== ==============

-73-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SHARES AMOUNT
----------- --------------
Class R
Shares sold ............................... 1,899,043 $ 32,142,686
Dividends reinvested ...................... 160,761 2,631,661
Shares redeemed ........................... (778,583) (12,953,036)
----------- --------------
Net increase .............................. 1,281,221 $ 21,821,311
=========== ==============
Capital Appreciation Fund
Class I
Shares sold ............................... 4,726,152 $ 68,538,809
Dividends reinvested ...................... 3,291 46,419
Shares redeemed ........................... (3,925,581) (57,214,762)
----------- --------------
Net increase .............................. 803,862 $ 11,370,464
=========== ==============
Class R
Shares sold ............................... 388,014 $ 5,631,245
Shares redeemed ........................... (84,179) (1,216,964)
----------- --------------
Net increase .............................. 303,835 $ 4,414,281
=========== ==============
Balanced Fund
Class I
Shares sold ............................... 4,926 $ 37,550
Dividends reinvested ...................... 16,963 129,256
Shares redeemed ........................... (215,802) (1,624,824)
----------- --------------
Net decrease .............................. (193,913) $ (1,458,018)
=========== ==============
Class R
Shares sold ............................... 10,378 $ 79,612
Dividends reinvested ...................... 2,172 16,421
Shares redeemed ........................... (29,004) (219,164)
----------- --------------
Net decrease .............................. (16,454) $ (123,131)
=========== ==============
Green Fund(i)
Class I
Shares sold ............................... 105,469 $ 653,995
Dividends reinvested ...................... 25,842 153,241
Shares redeemed ........................... (5,334) (31,781)
----------- --------------
Net increase .............................. 125,977 $ 775,455
=========== ==============
Class R
Shares sold ............................... 99,235 $ 597,158
Dividends reinvested ...................... 7,133 41,659
Shares redeemed ........................... (48,444) (296,499)
----------- --------------
Net increase .............................. 57,924 $ 342,318
=========== ==============

-74-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SHARES AMOUNT
----------- --------------
Technology Fund*
Class I
Shares sold ............................... 490,000 $ 4,900,000
Shares redeemed ........................... (231,823) (2,200,000)
----------- --------------
Net increase .............................. 258,177 $ 2,700,000
=========== ==============
Class R
Shares sold ............................... 10,000 $ 100,000
----------- --------------
Core Fixed-Income Fund*
Class I
Shares sold ............................... 490,000 $ 4,900,000
Dividends reinvested ...................... 13,996 138,607
Shares redeemed ........................... (248,756) (2,500,000)
----------- --------------
Net increase .............................. 255,240 $ 2,538,607
=========== ==============
Class R
Shares sold ............................... 10,000 $ 100,000
Dividends reinvested ...................... 306 3,029
----------- --------------
Net increase .............................. 10,306 $ 103,029
=========== ==============

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)
=========== ==============

-75-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SHARES AMOUNT
----------- --------------
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
=========== ==============
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
=========== ==============
Green Fund(i)
Class I
Shares sold ............................... 50 $ 288
Dividends reinvested ...................... 9,429 52,611
Shares redeemed ........................... (3,205) (18,000)
----------- --------------
Net increase .............................. 6,274 $ 34,899
=========== ==============

-76-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SHARES AMOUNT
----------- --------------
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.

NOTE 7--TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS:

The tax character of distributions paid during the year ended October 31,
2006 and the year ended October 31, 2005 were as follows:

YEAR ENDED YEAR ENDED
OCTOBER 31, 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 Fund
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
================ ================
Green 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 ....................... $ 141,636 $ --
Long-term capital gains ............... -- --
---------------- ----------------
Total distributions paid .............. $ 141,636 $ --
================ ================

-77-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

As of October 31, 2006, the components of distributable earnings on a tax
basis were as follows:

LargeCap Growth Fund
Undistributed ordinary income ............................... $ --
Undistributed long-term gain ................................ --
Unrealized appreciation ..................................... 4,558,196

SmallCap Growth Fund
Undistributed ordinary income ............................... $ --
Undistributed long-term gain ................................ --
Unrealized appreciation ..................................... 29,699,072

MidCap Growth Fund
Undistributed ordinary income ............................... $ 48,715,396
Undistributed long-term gain ................................ 60,681,299
Unrealized appreciation ..................................... 62,506,750

Capital Appreciation Fund
Undistributed ordinary income ............................... $ --
Undistributed long-term gain ................................ --
Unrealized appreciation ..................................... 11,816,815

Balanced Fund
Undistributed ordinary income ............................... $ 111,655
Undistributed long-term gain ................................ 2,427
Unrealized depreciation ..................................... 7,533

Green Fund
Undistributed ordinary income ............................... $ 187,179
Undistributed long-term gain ................................ 169,707
Unrealized appreciation ..................................... 274,247

Technology Fund
Undistributed ordinary income ............................... $ --
Undistributed long-term gain ................................ --
Unrealized appreciation ..................................... 171,449

Core Fixed-Income Fund
Undistributed ordinary income ............................... $ 784
Undistributed long-term gain ................................ --
Unrealized appreciation ..................................... --

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.

At October 31, 2006, 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.

-78-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

LARGECAP SMALLCAP CAPITAL CORE
EXPIRATION GROWTH GROWTH APPRECIATION TECHNOLOGY FIXED-INCOME
DATE FUND FUND FUND FUND FUND
- ---------- ------------ ------------- ------------ ---------- ------------

2009 $ -- $ 40,443,527 $ 26,977,224 $ -- $ --
2010 13,617,485 12,342,837 46,484,857 -- --
2011 5,070,663 -- -- -- --
2012 -- -- -- -- --
2013 -- -- -- -- --
2014 -- -- -- 243,662 11,341
------------ ------------ ------------ ---------- ------------
$ 18,688,148 $ 52,786,364 $ 73,462,081 $ 243,662 $ 11,341
============ ============ ============ ========== ============

NOTE 8--LITIGATION:

Alger Management has responded to inquiries, document requests and/or
subpoenas from various regulatory authorities, in connection with their
investigations of practices in the mutual fund industry identified as "market
timing" and "late trading." On October 11, 2006, Alger Management, Alger Inc.
and Alger Shareholder Services, Inc. executed an Assurance of Discontinuance
with the Office of the New York State Attorney General ("NYAG"). On December 7,
2006, Alger Management and Alger Inc. executed Offers of Settlement with the
Commission, and the settlement is subject to approval of the Commission. As part
of the settlements with the Commission and the NYAG, without admitting or
denying liability, the firms will consent to the payment of $30 million to
reimburse fund shareholders; a fine of $10 million; and certain other remedial
measures including a reduction in management fees of $1 million per year for
five years. The entire $40 million and fee reduction will be available for the
benefit of investors. Alger Management has advised the Funds that the proposed
settlement payment is not expected to adversely affect the operations of Alger
Management, Alger Inc. or their affiliates, or adversely affect their ability to
continue to provide services to the Funds.

On August 31, 2005, the West Virginia Securities Commissioner (the "WVSC")
in an ex parte Summary Order to Cease and Desist and Notice of Right to Hearing
concluded that Alger Management and Alger Inc. had violated the West Virginia
Uniform Securities Act (the "WVUSA"), and ordered Alger Management and Alger
Inc. to cease and desist from further violations of the WVUSA by engaging in the
market-timing related conduct described in the order. The ex parte order
provided notice of their right to a hearing with respect to the violations of
law asserted by the WVSC. Other firms unaffiliated with 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

-79-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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
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, but such lawsuit
has since been withdrawn.

The Derivative Complaint alleged (i) violations, by Alger Management and,
depending on the specific offense alleged, by Alger Inc. and/or the fund trustee
defendants, of Sections 36(a), 36(b), 47, and 48 of the Investment Company Act
of 1940, as amended, (the "Investment Company Act") and of Sections 206 and 215
of the Investment Advisers Act of 1940, as amended, 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,
including the Funds, and the current and former fund trustees and officers, of
Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as amended,
Sections 10(b) (and Rule 10b-5 thereunder) and 20(a) of the Securities Exchange
Act of 1934, as amended, (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.

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 1940 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 were entered. On March 31, 2006, attorneys for the class action
plaintiffs informed the district court that they had decided not to file amended
complaints with respect to the plaintiffs' state law claims. Answers to the
Class Action Complaint were filed by the Alger defendants on April 24, 2006.

In subsequent orders, all remaining claims in the Class Action Complaint
and the Derivative Complaint have been dismissed, other than claims under the

-80-

THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1934 Act against Alger Management, Alger Inc., Alger Associates, Inc. and Alger
Shareholder Services, Inc., and certain present and former members of the senior
management of Alger Management and/or Alger Inc., and claims under Section 36(b)
of the 1940 Act against Alger Management, Alger Inc., Alger Associates, Inc. and
Alger Shareholder Services, Inc.

NOTE 9--LIQUIDATION:

The Balanced Institutional Fund, Technology Institutional Fund and the
Core Fixed-Income Institutional Fund were liquidated on November 20, 2006,
pursuant to a plan of liquidation approved by the Board of Trustees.

-81-

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of
The Alger Institutional Funds:

We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of The Alger Institutional Funds
(comprising the LargeCap Growth Institutional Fund, SmallCap Growth
Institutional Fund, MidCap Growth Institutional Fund, Capital Appreciation
Institutional Fund, Balanced Institutional Fund, Core Fixed-Income Institutional
Fund, Technology Institutional Fund and Green Institutional Fund) (collectively,
the "Funds"), as of October 31, 2006, and the related statements of operations
for the year then ended, and the statements of changes in net assets and the
financial highlights for each of the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
We were not engaged to perform an audit of the Funds' internal control over
financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Funds' internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2006, by correspondence with the custodian
and brokers. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of The
Alger Institutional Funds at October 31, 2006, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for each of the indicated periods, in conformity with U.S. generally
accepted accounting principles.

/s/ Ernst & Young LLP

December 12, 2006

-82-

THE ALGER INSTITUTIONAL FUNDS
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 May 1, 2006 and ending October 31,
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.

-83-

SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) (CONTINUED)

RATIO OF
EXPENSES
EXPENSES TO AVERAGE
BEGINNING ENDING PAID DURING NET ASSETS
ACCOUNT ACCOUNT THE PERIOD FOR THE SIX
VALUE VALUE MAY 1, 2006 TO MONTHS ENDED
MAY 1, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2006 2006 2006(b) 2006(c)
--------- ----------- -------------- ------------

ALGER LARGECAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual ...................................... $1,000.00 $ 984.40 $6.05 1.21%
Hypothetical(a) ............................. 1,000.00 1,019.11 6.16 1.21
CLASS R:
Actual ...................................... 1,000.00 981.90 8.54 1.71
Hypothetical(a) ............................. 1,000.00 1,016.59 8.69 1.71

ALGER SMALLCAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual ...................................... $1,000.00 $ 999.20 $6.60 1.31%
Hypothetical(a) ............................. 1,000.00 1,018.60 6.67 1.31
CLASS R:
Actual ...................................... 1,000.00 996.20 9.21 1.83
Hypothetical(a) ............................. 1,000.00 1,015.98 9.30 1.83

ALGER MIDCAP GROWTH INSTITUTIONAL FUND
CLASS I:
Actual ...................................... $1,000.00 $ 953.60 $5.56 1.13%
Hypothetical(a) ............................. 1,000.00 1,019.51 5.75 1.13
CLASS R:
Actual ...................................... 1,000.00 951.70 8.02 1.63
Hypothetical(a) ............................. 1,000.00 1,016.99 8.29 1.63

ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
CLASS I:
Actual ...................................... $1,000.00 $1,045.80 $6.55 1.27%
Hypothetical(a) ............................. 1,000.00 1,018.80 6.46 1.27
CLASS R:
Actual ...................................... 1,000.00 1,043.20 9.22 1.79
Hypothetical(a) ............................. 1,000.00 1,016.18 9.10 1.79

ALGER BALANCED INSTITUTIONAL FUND
CLASS I:
Actual ...................................... $1,000.00 $ 998.70 $6.30 1.25%
Hypothetical(a) ............................. 1,000.00 1,018.90 6.36 1.25
CLASS R:
Actual ...................................... 1,000.00 989.50 8.78 1.75
Hypothetical(a) ............................. 1,000.00 1,016.38 8.89 1.75

ALGER GREEN INSTITUTIONAL FUND
CLASS I:
Actual ...................................... $1,000.00 $1,041.00 $6.43 1.25%
Hypothetical(a) ............................. 1,000.00 1,018.90 6.36 1.25
CLASS R:
Actual ...................................... 1,000.00 1,038.50 8.99 1.75
Hypothetical(a) ............................. 1,000.00 1,016.38 8.89 1.75

-84-

SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) (CONTINUED)

ALGER TECHNOLOGY INSTITUTIONAL FUND
CLASS I:
Actual* ..................................... $1,000.00 $1,012.00 $6.34 1.25%
Hypothetical(a) ............................. 1,000.00 1,018.90 6.36 1.25
CLASS R:
Actual* ..................................... 1,000.00 1,009.00 8.86 1.75
Hypothetical(a) ............................. 1,000.00 1,016.38 8.89 1.75

ALGER CORE FIXED-INCOME INSTITUTIONAL FUND
CLASS I:
Actual* ..................................... $1,000.00 $1,028.10 $3.07 0.60%
Hypothetical(a) ............................. 1,000.00 1,022.18 3.06 0.60
CLASS R:
Actual* ..................................... 1,000.00 1,024.50 5.61 1.10
Hypothetical(a) ............................. 1,000.00 1,019.66 5.60 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 184/365 (to reflect the one-half year period).

-85-

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-86-

TAX INFORMATION
(UNAUDITED)

In accordance with subchapter M of the Internal Revenue Code of 1986, as
amended, for the year ended October 31, 2006, 100.00%, 4.79%, 100.00%, 8.05% and
7.26% of the LargeCap Growth, MidCap Growth, Capital Appreciation, Balanced and
Green Funds ordinary dividend, respectively, qualified for the dividends
received deduction for corporations. For the year ended October 31, 2006,
certain dividends paid by the funds may be subject to a maximum rate of 15%, as
provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the
distributions paid during the fiscal year, the following represents the maximum
amount that may be considered qualified dividend income:

LargeCap Growth Fund $ 274,583
MidCap Growth Fund 93,050,670
Capital Appreciation Fund 46,486
Balanced Fund 115,159
Green Fund 144,437

Shareholders should not use the above information to prepare their tax
returns. Since the Trust's fiscal year is not the calendar year, another
notification will be sent with respect to calendar year 2005. Such notification,
which will reflect the amount to be used by taxpayers on their federal income
tax returns, will be made in conjunction with Form 1099 DIV and will be mailed
in January 2006. Shareholders are advised to consult their own tax advisers with
respect to the tax consequences of their investment in the Trust.

-87-

TRUSTEES AND OFFICERS OF THE FUNDS (UNAUDITED)

Information about the Trustees and officers of the Funds is set forth
below. In the table the term "Alger Fund Complex" refers to the Funds, The Alger
Funds, The Alger American Fund, Spectra Fund, The China-U.S. Growth Fund and
Castle Convertible Fund, Inc., each of which is a registered investment company
managed by Fred Alger Management, Inc. ("Alger Management"). Each Trustee serves
until an event of termination, such as death or resignation, or until his
successor is duly elected; each officer's term of office is one year. Unless
otherwise noted, the address of each person named below is 111 Fifth Avenue, New
York, NY 10003.

NUMBER OF
PORTFOLIOS
IN THE
ALGER FUND
TRUSTEE COMPLEX
AND/OR WHICH ARE
NAME, AGE, POSITION OFFICER OVERSEEN
WITH THE FUND PRINCIPAL OCCUPATIONS SINCE BY TRUSTEE
- --------------------------------------------------------------------------------------------------

Dan C. Chung (44) President since September 2003 and Chief 2001 16
Trustee and Investment Officer and Director since 2001 of
President Alger Management; President since 2003 and
Director since 2001 of Alger Associates, Inc.
("Associates"), Alger Shareholder Services,
Inc. ("Services"), Fred Alger International
Advisory S.A. ("International") (Director
since 2003), Director of Fred Alger & Co.,
Inc. ("Alger Inc.") and Analysts Resources,
Inc. ("ARI"); President of the five
investment companies in the Alger Fund
Complex since September 2003;
Trustee/Director of four of the six
investment companies in the Alger Fund
Complex since 2001; senior analyst with Alger
Management 1998-2001.

Hilary M. Alger, CFA (44) Trustee/Director of all of the six investment 2003 23
Trustee companies in the Alger Fund Complex since
2003; Director of Development, Pennsylvania
Ballet since 2004; Associate Director of
Development, College of Arts and Sciences and
Graduate School, University of Virginia
1999-2003; Director of Development and
Communications, Lenox Hill Neighborhood House
1997-99.

-88-

TRUSTEES AND OFFICERS OF THE FUNDS (UNAUDITED) (CONTINUED)

NON-INTERESTED TRUSTEES

Charles F. Baird, Jr. (52) Managing Partner of North Castle Partners, a 2000 16
Trustee private equity securities group; Chairman of
Equinox, Leiner Health Products, Elizabeth
Arden Day Spas, Grand Expeditions of EAS;
Trustee/Director of four of the six
investment companies in the Alger Fund
Complex. Formerly Managing Director of AEA
Investors, Inc.

Roger P. Cheever (60) Senior Associate Dean of Development, Harvard 2000 16
Trustee University; Trustee/Director of four of the
six investment companies in the Alger Fund
Complex. Formerly Deputy Director of the
Harvard College Fund.

Lester L. Colbert, Jr. (72) Private investor since 1988; Trustee/Director 2000 17
Trustee of three of the six investment companies in
the Alger Fund Complex since 2000, of one
since 2003, and of another since 1974.
Chairman of the Board, President and Chief
Executive Officer of Xidex Corporation
1972-87.

Stephen E. O'Neil (73) Attorney; Private investor since 1981; 1993 23
Trustee Director of Brown-Forman Corporation since
1978; Trustee/ Director of the six investment
companies in the Alger Fund Complex since the
inception of each; of Counsel to the law firm
of Kohler & Barnes to 1998.

Nathan E. Saint-Amand Medical doctor in private practice; Member of 1993 23
M.D. (68) the Board of the Manhattan Institute since
1988; Trustee/Director of each of the six
investment companies in the Alger Fund
Complex since the later of 1986 or its
inception; formerly Co-Chairman, Special
Projects Committee, Memorial Sloan Kettering.

OFFICERS

Frederick A. Blum (52) Executive Vice President, Chief Financial 1996 N/A
Treasurer Officer and Treasurer of Alger Inc., Alger
Management, ARI and Services since September
2003 and Senior Vice President prior thereto;
Executive Vice President of Associates since
September 2003; Treasurer or Assistant
Treasurer of each of the six investment
companies in the Alger Fund Complex since the
later of 1996 or its inception; Director of
SICAV and International and Chairman of the
Board (and prior thereto Senior Vice
President) since 2003.

-89-

TRUSTEES AND OFFICERS OF THE FUNDS (UNAUDITED) (CONTINUED)

Hal Liebes (42) Executive Vice President, Chief Legal 2005 N/A
Secretary and Officer, Director and Secretary of Alger
Chief Operating Management, Chief Operating Officer, Director
Officer and Secretary of Services, Director of
Associates; Executive Vice President, Chief
Legal Officer and Director of Alger Inc.;
Secretary of the six investment companies in
the Alger Fund Complex. Formerly Chief
Compliance Officer 2004-2005, AMVESCAP PLC;
U.S. General Counsel 1994-2002 and Global
General Counsel 2002-2004, Credit Suisse
Asset Management.

Michael D. Martins (41) Senior Vice President of Alger Management; 2005 N/A
Assistant Treasurer Assistant Treasurer of the six investment
companies in the Alger Fund Complex since
2004. Formerly Vice President, Brown Brothers
Harriman & Co. 1997-2004.

Lisa A. Moss (41) Vice President and Assistant General Counsel 2006 N/A
Assistant Secretary of Alger Management since June 2006. Formerly
Director of Merrill Lynch Investment
Managers, L.P. from 2005-2006; Assistant
General Counsel of AIM Management, Inc. from
1995-2005.

Barry J. Mullen (53) Senior Vice President and Chief Compliance 2006 N/A
Chief Compliance Officer of Alger Management since May 2006.
Officer Formerly, Director of BlackRock, Inc. from
2004-2006; Vice President of J.P. Morgan
Investment Management from 1996-2004.

Ms. Alger and Mr. Chung are "interested persons" (as defined in the
Investment Company Act) of the Fund because of their affiliations with Alger
Management. No Trustee is a director of any public company except as may be
indicated under "Principal Occupations."

The Statement of Additional Information contains additional information
about the Funds' Trustees and is available without charge upon request by
calling (800) 992-3863.

-90-

INVESTMENT MANAGEMENT AGREEMENT RENEWAL (UNAUDITED)

At an in-person meeting held on September 12, 2006, the Trustees, including the
Independent Trustees, unanimously approved, subject to the required shareholder
approval described herein, the New Investment Advisory Agreement for each Fund.
The Independent Trustees were assisted in their review by independent legal
counsel and met with counsel in executive session separate from representatives
of Alger Management.

For each Fund, in evaluating the New Investment Advisory Agreement, the Trustees
drew on materials that they requested and which were provided to them in advance
of the meeting by Alger Management and by counsel to the Trust. The materials
covered, among other matters, (i) the nature, extent and quality of the services
provided by Alger Management under the Current Investment Advisory Agreement,
(ii) the investment performance of the Fund, (iii) the costs to Alger Management
of its services and the profits realized by Alger Management and Alger Inc. from
their relationship with the Fund, and (iv) the extent to which economies of
scale would be realized if and as the Fund grows and whether the fee level in
the New Investment Advisory Agreement reflects these economies of scale. These
materials included an analysis of the Fund and Alger Management's services by
Callan Associates Inc. ("Callan"), an independent consulting firm whose
specialties include assistance to fund trustees and directors in their review of
advisory contracts pursuant to Section 15(c) of the 1940 Act. At the meeting,
senior Callan personnel provided a presentation to the Trustees based on the
Callan materials.

In deciding whether to approve the New Investment Advisory Agreements, the
Trustees considered various factors, including those enumerated above. They also
considered other direct and indirect benefits to Alger Management and its
affiliates from their relationship with the Funds.

NATURE, EXTENT AND QUALITY OF SERVICES

In considering the nature, extent and quality of the services proposed to be
provided by Alger Management pursuant to each Fund's New Investment Advisory
Agreement, the Trustees relied on their prior experience as Trustees of the
Trust, their familiarity with the personnel and resources of Alger Management
and its affiliates and the materials provided at the meeting, and considered the
nature, extent and quality of the services provided by Alger Management pursuant
to the Current Investment Advisory Agreements. For each Fund, they noted that
under the Advisory Agreements, Alger Management is responsible for managing the
investment operations of the Fund. They also noted that administrative,
compliance, reporting and accounting services necessary for the conduct of the
Fund's affairs are provided under the separate Administration Agreement. The
Trustees reviewed the background and experience of Alger Management's senior
investment management personnel, including the individuals currently responsible
for the investment operations of the Funds. They also considered the resources,
operational

-91-

structures and practices of Alger Management in managing each Fund's portfolio
and administering the Fund's affairs, as well as Alger Management's overall
investment management business. The Trustees concluded that Alger Management's
experience, resources and strength in those areas of importance to the Funds are
considerable. The Trustees considered the level and depth of Alger Management's
ability to execute portfolio transactions to effect investment decisions,
including those through Alger Inc. The Trustees also considered the ongoing
enhancements to the control and compliance environment at Alger Management and
within the Trust.

TRANSFER OF OWNERSHIP OF ALGER ASSOCIATES

The Trustees assessed the implications for Alger Management of the pending
transfer of ownership control of Alger Associates and Alger Management's ability
to continue to provide services to the Funds of the same scope and quality as
are currently provided. In particular, the Board inquired as to the impact of
the pending transfer on Alger Management's personnel, management, facilities and
financial capabilities, and received assurances in this regard from senior
management of Alger Management that the pending transfer would not adversely
affect Alger Management's ability to fulfill its obligations under the New
Investment Advisory Agreements, and to operate its business in a manner
consistent with past practices. The Board also considered that each Fund's New
Investment Advisory Agreement, and the fees paid thereunder, are substantively
identical in all respects to that Fund's Current Investment Advisory Agreement,
except for the time periods covered by the Agreements and, that for
administrative convenience, the separate Current Investment Advisory Agreements
were being combined into a single New Investment Advisory Agreement between
Alger Management and the Trust, on behalf of the Funds.

INVESTMENT PERFORMANCE OF THE FUNDS

Drawing upon information provided at the meeting by Alger Management as well as
Callan and upon reports provided to the Trustees by Alger Management throughout
the preceding year, the Trustees noted that the performance of some of the Funds
(SmallCap, Capital Appreciation and Socially Responsible) had been generally
excellent, consistently outperforming the relevant benchmarks and fund peer
groups for various periods through August 31, 2006, while other Funds (LargeCap
and MidCap) had underperformed their benchmarks and fund peer groups for at
least the year ended August 31, 2006. The Trustees discussed with Alger
Management the performance of the two under-performing Funds, inquiring into
both the reasons for the underperformance and Alger Management's plans for
upgrading the Funds' performance.

FUND FEES AND EXPENSE RATIOS; PROFITABILITY TO ALGER MANAGEMENT AND ITS
AFFILIATES

The Trustees considered the profitability of each Current Investment Advisory
Agreement to Alger Management and its affiliates, and the methodology used

-92-

by Alger Management in determining such profitability. The Trustees reviewed
previously-provided data on each Fund's profitability to Alger Management and
its affiliates for the year ended June 30, 2006. In addition, the Trustees
reviewed each Fund's management fees and expense ratios and compared them with a
group of comparable funds. In order to assist the Trustees in this comparison,
Callan had provided the Trustees with comparative information with respect to
fees paid, and expense ratios incurred, by similar funds. That information
indicated that, while some of the Funds' advisory fees and expense ratios were
at or near (and in one case below) the median for the Fund's Callan peer group,
other Funds' fees (LargeCap, MidCap and Capital Appreciation) and/or expense
ratios (LargeCap, MidCap, Socially Responsible, SmallCap R Shares, and Capital
Appreciation R Shares) were higher than those of most of the funds in the Callan
peer group. In the latter cases, the Trustees determined that such information
should be taken into account in weighing the size of the fee against the nature,
extent and quality of the services provided. After discussing with
representatives of the Adviser and Callan the methodologies used in computing
the costs that formed the bases of the profitability calculations, the Trustees
turned to the profitability data provided. After analysis and discussion, they
concluded that, to the extent that Alger Management's and its affiliates'
relationships with the Funds had been profitable to either or both of those
entities, the profit margin in each case was modest.

ECONOMIES OF SCALE

On the basis of their discussions with management and their analysis of
information provided at the meeting, the Trustees determined that the nature of
the Funds and their operations is such that Alger Management is likely to
realize economies of scale in the management of each Fund at some point as it
grows in size, but that in view of the current levels of profitability of each
of the Funds to Alger Management and its affiliates, such economies as might
already exist were subsumed in the level of the management fees, and that
adoption of breakpoints in one or more advisory fees, while possibly appropriate
at a later date, could await further analysis of the sources and potential scale
of the economies and the fee structure that would best reflect them.
Accordingly, the Trustees requested that Alger Management address this topic
with the Trustees at future meetings.

OTHER BENEFITS TO ALGER MANAGEMENT

The Trustees considered whether Alger Management benefits in other ways from its
relationship with the Funds. They noted that Alger Management maintains
soft-dollar arrangements in connection with the Funds' brokerage transactions,
data on which is regularly supplied to the Trustees at their quarterly meetings.
The Trustees also noted that Alger, Inc. provides a substantial portion of the
Funds' equity brokerage and receives shareholder servicing fees from the Funds
as well, and that Alger Shareholder Services, Inc. receives fees from the Funds
under a shareholder services agreement. The Trustees had

-93-

been provided with information regarding, and had considered, the brokerage and
shareholder servicing fee benefits in connection with their review of the
profitability to Alger Management and its affiliates of their relationships with
the Funds. As to other benefits received, the Trustees decided that none were so
significant as to render Alger Management's fees excessive.

At the conclusion of these discussions, each of the Independent Trustees
expressed the opinion that he had been furnished with sufficient information to
make an informed business decision with respect to approval of each Fund's New
Investment Advisory Agreement. Based on its discussions and considerations as
described above, the Board made the following conclusions and determinations, as
to each Fund:

o The Board concluded that the nature, extent and quality of the
services provided by Alger Management are adequate and appropriate.

o The Board determined that the pending transfer of ownership control
of Alger Associates would not be a detriment to Alger Management's
ability to continue to provide services to the Fund of the same
scope and quality as provided under the Current Investment Advisory
Agreement, and that the pending transfer would not adversely affect
Alger Management's ability to fulfill its obligations under the New
Investment Advisory Agreement, and to operate its business in a
manner consistent with past practices.

o The Board was satisfied with the performance of the Funds that had
shown excellent performance, but determined to monitor the progress
of Alger Management's steps to improve the performance of the
underperforming Funds.

o The Board concluded that the Fund's fee paid to Alger Management,
which was proposed to be the same under the New Investment Advisory
Agreement as under the Current Investment Advisory Agreement, was
reasonable in light of comparative performance and expense and
advisory fee information, costs of the services provided and profits
to be realized and benefits derived or to be derived by Alger
Management from the relationship with the Fund.

o The Board determined that there were not at this time significant
economies of scale to be realized by Alger Management in managing
the Fund's assets and that, to the extent that material economies of
scale had not been shared with the Fund, the Board would seek to do
so.

The Board considered these conclusions and determinations and, without any one
factor being dispositive, determined that approval of the New Investment
Advisory Agreement was in the best interests of each Fund and its shareholders.

-94-

PROXY VOTING POLICIES

A description of the policies and procedures the Trust uses to determine how to
vote proxies relating to portfolio securities and the proxy voting record is
available, without charge, by calling (800) 992-3362 or online on the Funds'
website at http://www.alger.com or on the SEC's website at http://www.sec.gov.

QUARTERLY FUND HOLDINGS

The Funds file their complete schedule of portfolio holdings with the SEC for
the first and third quarter of each fiscal year on Form N-Q. Forms N-Q are
available online on the Funds' website at http://www.alger.com or on the SEC's
website at HTTP://WWW.SEC.GOV. The Funds' Forms N-Q may be reviewed and copied
at the SEC's Public Reference Room in Washington, D.C. Information regarding the
operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330. A copy of the most recent quarterly holdings may also be
obtained from the Funds by calling (800) 992-3362.

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]

AAIF 103106

[ALGER LOGO] The Alger Institutional Funds
Boston Financial Data Services, Inc.
P.O. Box 8480
Boston, MA 02266

SAIF 103106

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics (the "Code of Ethics")
that applies to its principal executive officer, principal financial
officer, principal accounting officer or controller, or persons
performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended its Code of Ethics during the period
covered by the shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a
provision of its Code of Ethics during the period covered by the
shareholder report presented in Item 1 hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as an Exhibit hereto.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the Registrant determined that Stephen E. O'Neil
is an audit committee financial expert (within the meaning of that phrase
specified in the instructions to Form N-CSR) on the Registrant's audit
committee. Mr. O'Neil is an "independent" trustee - i.e., he is not an
interested person of the Registrant as defined in the Investment Company
Act of 1940, nor has he accepted directly or indirectly any consulting,
advisory or other compensatory fee from the Registrant, other than in his
capacity as Trustee.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

a) Audit Fees:
October 31, 2006 $163,520
October 31, 2005 $117,600

b) Audit-Related Fees: NONE

c) Tax Fees for tax advice, tax compliance and tax planning:
October 31, 2006 $26,545
October 31, 2005 $24,570

d) All Other Fees:
October 31, 2006 $23,800
October 31, 2005 $13,500

Other fees include a review and consent for Registrants registration
statement filing and a review of the semi-annual financial statements.

e) 1) Audit Committee Pre-Approval Policies And Procedures:

Audit and non-audit services provided by the Registrant's independent
registered public accounting firm (the "Auditors") on behalf the Registrant
must be pre-approved by the Audit Committee. Non-audit services provided by
the Auditors on behalf of the Registrant's Investment Adviser or any entity
controlling, controlled by, or under common control with the Investment
Adviser must be pre-approved by the Audit Committee if such non-audit
services directly relate to the operations or financial reporting of the
Registrant.

2) All fees in item 4(b) through 4(d) above were approved by the
Registrants' Audit Committee.

f) Not Applicable

g) Non-Audit Fees:
October 31, 2006 $217,212 and 26,884 Euros
October 31, 2005 $201,831 and 56,050 Euros

h) The audit committee of the board of trustees has considered whether the
provision of the non-audit services that were rendered to the registrant's
investment adviser and any entity controlling, controlled by, or under
common control, with the adviser that provides ongoing services to the
registrant that were not approved pursuant to (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principle accountant's
independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable

ITEM 6. 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.

None

ITEM 11. CONTROLS AND PROCEDURES.

(a) The Registrant's principal executive officer and principal financial
officer have concluded that the Registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940, as amended) are effective based on their evaluation of the disclosure
controls and procedures as of a date within 90 days of the filing date of
this document.

(b) No changes in the Registrant's internal control over financial
reporting occurred during the Registrant's second fiscal half-year that
materially affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1) Code of Ethics as Exhibit 99.CODE ETH

(a) (2) Certifications of principal executive officer and principal
financial officer as required by rule 30a-2(a) under the Investment Company
Act of 1940 are attached as Exhibit 99.CERT

(b) Certifications of principal executive officer and principal financial
officer as required by rule 30a-2(b) under the Investment Company Act of
1940 are attached as Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.

The Alger Institutional Funds

By: /s/Dan C. Chung

Dan C. Chung

President

Date: December 20, 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: December 20, 2006

By: /s/Frederick A. Blum

Frederick A. Blum

Treasurer

Date: December 20, 2006