| | OMB APPROVAL |
| | OMB Number: 3235-0570
Expires: July 31, 2022
Estimated average burden hours per
response 20.6 |
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 811-01355
The Alger Funds
(Exact name of registrant as specified in charter)
360 Park Avenue South New York, New York 10010
(Address of principal executive offices) (Zip code)
Mr. Hal Liebes
Fred Alger Management, LLC
360 Park Avenue South
New York, New York 10010
(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, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission, not later than 10 days after the transmission to Stockholders of any report to be transmitted to Stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Table of Contents
The Alger Funds
| Shareholders’ Letter (Unaudited) | 1 |
| | |
| Fund Highlights (Unaudited) | 19 |
| | |
| Portfolio Summary (Unaudited) | 41 |
| | |
| Schedules of Investments | 43 |
| | |
| Statements of Assets and Liabilities | 80 |
| | |
| Statements of Operations | 92 |
| | |
| Statements of Changes in Net Assets | 98 |
| | |
| Financial Highlights | 109 |
| | |
| Notes to Financial Statements | 147 |
| | |
| Report of Independent Registered Public Accounting Firm | 193 |
| | |
| Additional Information (Unaudited) | 195 |
Optional Internet Availability of Alger Shareholder Reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by signing up for paperless delivery at www.icsdelivery.com/alger. If you own these shares through a financial intermediary, contact your financial intermediary.
You may elect to receive all future reports in paper free of charge. If you invest directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 1-866-345-5954 or fundreports.com. If you own these shares through a financial intermediary, contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held within the Alger Fund Complex or your financial intermediary.
| Shareholders’ Letter (Unaudited) | October 31, 2020 |
Dear Shareholders,
The New Normal Provides Reason for Optimism
As I write this letter, we are experiencing some of the most significant events in our country in many years, with voters preparing to cast ballots for the 46th presidential term in an election that is expected to have more participation than any in our history. At the same time, work to create Covid-19 vaccines is advancing quickly. This past year has been tremendously challenging for us all. The Covid-19 pandemic continues to spread across the U.S. and the world; the economic challenges and losses it has created will haunt many for years to come—even as we hopefully begin to see the end of the pandemic itself as public vaccination programs are expected to ramp up in 2021. During the past 12 months, our healthcare system was challenged by the Covid-19 pandemic while at the same time social justice issues became front and center in America. These issues are daunting and Alger has responded by supporting several causes related to social justice organizations and frontline healthcare workers.
I am proud to say our employees quickly adjusted to a remote work environment and achieved notable and attractive investment performance. As sobering as the past months have been, we remain hopeful for our future, notwithstanding the challenges that lie ahead.
We believe the following points are essential:
| · | Investors may want to consider seeking companies that are benefiting from dramatic changes occurring throughout the economy, including innovation, rather than align portfolios based on the outcome of elections. |
| · | A “New Normal” may continue after the pandemic, which has dramatically accelerated the speed at which digitization and other forms of innovation are occurring in our personal lives and the business world. |
| · | The rapid transformation occurring across industries, we believe, will continue after the pandemic and potentially create attractive opportunities for well-managed, innovative companies to reward investors by generating strong earnings growth with new products that disrupt entire industries. |
A Challenging Time
For the year ended October 31, 2020, the S&P 500 Index generated a 9.71% return. Corporate fundamentals initially supported investor sentiment, and from November 1, 2019 to the middle of February 2020, the S&P 500 Index climbed 12.18%. The spread of the novel coronavirus across the globe, however, caused investor sentiment to plummet and from the February 19 historical market peak to March 23, the S&P 500 Index dropped 33.79% as investors grew increasingly concerned that efforts to slow the growth of the virus, such as stay-at-home orders and economic shutdowns, would trigger a global recession.
Sentiment quickly reversed when the Federal Reserve (the Fed) responded aggressively with two rate cuts totaling 150 basis points, bringing the fed funds target rate to 0.0% - 0.25%. The Fed also unveiled a round of quantitative easing while U.S. legislators began creating programs initially valued at more than $2 trillion to support businesses, increase unemployment benefits and provide one-time payments to certain individuals. Optimism about these stimulus efforts caused equities to reverse course and from late March until early September, the S&P 500 Index climbed more than 50%, even though fears of a recession were eventually realized when the U.S. reported that second quarter gross domestic product (GDP) contracted at an annual rate of 31.4%. Yet, other economic data supported optimistic sentiment. After peaking in May at approximately 25 million, U.S. continuing unemployment claims decreased while monthly retail sales (ex. food services) strengthened in June, July and August. Housing starts and the median sale price for existing homes also strengthened. Investors also remained optimistic that reopening the economy would support renewed GDP growth and a potential second wave of the coronavirus wouldn’t require extensive shutdowns of states’ economies.
The Fed, however, had a mixed impact on sentiment. On one hand, the Fed expressed its willingness to maintain low interest rates, but on the other hand, Fed Chairman Jerome Powell explained that additional stimulus from Congress was needed to support the economy. This concern was echoed by Federal Reserve Bank of Richmond President, Thomas Barkin, who stated in early August that the pandemic-sparked recession could take a turn for the worse if Congress doesn’t provide additional aid to workers and businesses.
As stimulus debates in Congress deteriorated and the pandemic appeared to strengthen, sentiment plunged and the S&P 500 Index declined 6.36% in September and October even though analysts surveyed by Bloomberg in early October said they believed the U.S. government would report that GDP grew at a 30% annualized rate in the third quarter. The U.S. Commerce Department in late October eventually reported 33.1% annualized GDP growth for the quarter.
International Markets Provide a Glimmer of Hope
Foreign equity markets also exhibited considerable volatility with MSCI ACWI ex USA Index declining 2.19% during the 12-month reporting period, although the MSCI Emerging Markets Index generated a positive 8.62% return over the same time period. Most of the positive performance of emerging markets was attributable to China and a handful of other Asian countries that implemented early and aggressive measures to curtail the pandemic. By containing the spread and reopening their economies, or in the case of Taiwan, avoiding the need for a shutdown, these countries are generating notable economic growth.
The Beneficiaries of Change
The pandemic is accelerating the already rapid pace at which new products and services disrupt their industries and capture market share. Many of these changes, we believe, will continue even after the pandemic.
| · | Remote working: The widespread implementation of work from home has created strong demand for new technologies that support online collaboration, videoconferencing, business process management, network capacity and security. As remote working has grown, firms such as CrowdStrike Holdings, Inc. that provide end-point protection against viruses, malware and other digital threats are experiencing increased demand for cloud-based security systems. We believe this trend may continue after the pandemic. In a June study by Gartner, Inc., 82% of executives said they plan on letting employees work remotely some of the time and 47% said they will allow employees to work remotely all of the time (executives could select more than one answer). |
| · | Communications: In both government and commercial firms, the need for real-time communication with the public or their employees has driven the adoption of new communications platforms to manage dialogues. Everbridge, which provides text messaging and other digital communications for governments, employers and other organizations, is an example. During its second quarter earnings call, the company announced it had processed more than 700 million messages related to the pandemic. |
| · | E-commerce: Online shopping has seen near exponential acceleration while people have been under stay-at-home orders. In fact, FedEx recently said shipping volumes that were previously expected to be reached by 2026 will now be reached by 2023 due to increased e-commerce. This acceleration is occurring after decades of growth in online retailing, which increased 14.9% last year while overall retail sales increased only 3.8%. For this year, e-commerce has grown 27% through August, compared to only 2% for brick and mortar retailing. This trend benefits large online retailers such as Amazon.com, Inc., but it is also helping smaller retailers who had the foresight to adopt and even primarily build their businesses online, often using technology from companies such as Shopify, Square and HubSpot. |
| · | Healthcare: The adoption of telemedicine has accelerated as healthcare consumers and medical professionals embrace the technology to practice social distancing. In addition to convenience for patients, telemedicine is helping healthcare providers reduce their reliance on costly offices within hospitals or other facilities. We believe the adoption of this technology will continue after the pandemic. Separately, the rapid advancements in developing vaccines have illustrated the groundbreaking power of genetic sequencing. It took only three months for researchers to prepare a Covid-19 vaccine for human trial, compared to 20 months for preparing a vaccine for SARS in 2003 and 11 months for Influenza A in Indonesia in 2006. |
Going Forward
At Alger, we focus on in-depth fundamental research while striving to understand how large-scale changes, such as innovation, create investment opportunities. A potential change in the president, of course, is a significant factor, with each political party having meaningful differences in their platforms. Aligning portfolios based on the political party of a president, however, may be misguided and would have yielded disappointing results in recent years. For example, a portfolio of $10,000 invested in the S&P 500 Index only during either Republican or Democratic presidents from 1968 until 2020 would have grown to less than $200,000 compared to approximately $1.4 million that would have resulted from staying fully invested, regardless of the party in the White House. We believe our in-depth fundamental research may be better suited for finding companies that are potentially positioned to thrive during the new normal. At the same time, we are optimistic that an eventual recovery in earnings growth, low interest rates and a return to more normal conditions resulting from a potential coronavirus vaccine or new treatments for Covid-19 could support equity markets.
Portfolio Matters
Alger Capital Appreciation Fund
The Alger Capital Appreciation Fund returned 34.79% for the fiscal year ended October 31, 2020, compared to the 29.22% return of the Russell 1000 Growth Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Consumer Discretionary. The largest sector overweight was Consumer Discretionary and the largest sector underweight was Consumer Staples.
The Consumer Discretionary and Healthcare sectors provided the largest contributions to relative performance. Regarding individual positions, Amazon.com, Inc.; Microsoft Corp.; Apple, Inc.; Alibaba Group Holding Ltd. Sponsored ADR; and Danaher Corp. were among the top contributors to performance. Amazon.com continues to generate strong high unit volume growth by taking market share from brick and mortar retailing and by growing its cloud computing service. During the reporting period, consumer uptake of one-day shipping supported the acceleration of the company’s online retailing. Later in the reporting period, investors became excited about the significant revenue gains associated with coronavirus quarantining and social distancing that are accelerating the pace at which e-commerce is capturing market share from traditional retailers. Additionally, investors reacted favorably to increased demand for Amazon.com’s cloud service, AWS, during the pandemic.
Detractors from Performance
The Consumer Staples and Utilities sectors were among the sectors that detracted from results. Regarding individual positions, Raytheon Company; Aptiv PLC; Boeing Company; Dollar Tree, Inc.; and Western Digital Corp. were among the top detractors from performance. Boeing is a leading producer of passenger jets and is a significant U.S. defense contractor. Boeing’s leading proprietary technology has allowed the company to be a stronger exporter of high-value, high-ticket capital goods. Shares of Boeing underperformed early in the reporting period in response to the company struggling to address software-related safety issues that have grounded 737 MAX planes for longer than originally anticipated. Additionally, regulators scrutinized the safety of the product and Boeing announced that it was suspending production of the MAX beginning in January while a resolution to the problem is sought. Boeing’s board of directors also terminated the company’s chief executive officer.
Alger 25 Fund
Class P shares of the Alger 25 Fund generated a 38.86% return during the fiscal year ended October 31, 2020, compared to the 9.71% return of the S&P 500 Index.
Contributors to Performance
During the reporting period, the largest sector weightings were Information Technology and Consumer Discretionary. The largest sector overweight was Information Technology. The fund had no exposure to the Consumer Staples, Energy or Utilities sectors. The Information Technology and Consumer Discretionary sectors provided the greatest contributions to relative performance. Regarding individual positions, Amazon.com, Inc.; Microsoft Corp.; Apple, Inc.; NVIDIA Corp.; and Alibaba Group Holding Ltd., Sponsored ADR, Cl. A were among the top contributors to performance. Shares of Amazon.com performed strongly in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
Among sectors, the Communication Services sector was the most significant detractor from performance. Regarding individual positions, Live Nation Entertainment, Inc.; TransDigm Group, Inc.; Pinterest, Inc., Cl. A; Luckin Coffee, Inc., Sponsored ADR, Cl. A; and CME Group Inc., Cl. A. were among the top detractors from performance. Shares of Live Nation Entertainment underperformed in response to developments identified in the Alger Mid Cap Growth Fund discussion.
Alger 35 Fund
Class P shares of the Alger 35 Fund generated a 50.22% return during the fiscal year ended October 31, 2020, compared to the 9.71% return of the S&P 500 Index.
Contributors to Performance
During the reporting period, the largest sector weightings were Information Technology and Consumer Discretionary. The largest sector overweight was Information Technology. The fund had no exposure to the Materials, Utilities or Energy sectors. The Information Technology and Consumer Discretionary sectors provided the greatest contributions to relative performance. Regarding individual positions, Amazon.com, Inc.; CrowdStrike Holdings, Inc., Cl. A; Apple, Inc.; Microsoft Corp.; and Tesla Inc. were among the top contributors to performance. Shares of Amazon.com performed strongly in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
The Communication Services sector was the largest detractor from relative performance. Regarding individual positions, Cintas Corp.; TransDigm Group Inc.; Luckin Coffee. Inc., Sponsored ADR, Cl. A; Facebook, Inc., Cl. A; and Live Nation Entertainment, Inc. were among the top detractors from performance. TransDigm Group designs, produces and supplies aircraft components in the U.S. and internationally. The company operates through three segments: Power & Control, Airframe, and Non-Aviation. TransDigm had a strong first six weeks of the year with its share price climbing approximately 17% after the company delivered positive results in its early February earnings announcement. However, the subsequent and pervasive slowdown of the U.S. airline industry as a result of the Covid-19 pandemic has weighed particularly heavily across the aviation supply chain, including parts suppliers like TransDigm, and resulting in shares of the company underperforming. Additionally, the announced resumption of 737 “Max-8” production by Boeing could bring new airframes online that will not require significant maintenance as they log initial airframe hours.
Alger Growth & Income Fund
The Alger Growth & Income Fund returned 5.98% for the fiscal year ended October 31, 2020, compared to the 9.71% return of the S&P 500 Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Healthcare. The largest sector overweight was Financials and the largest sector underweight was Information Technology.
The Information Technology and Real Estate sectors provided the largest contributions to relative performance. Regarding individual positions, Microsoft Corp.; Apple, Inc.; Amazon. com, Inc.; Facebook, Inc., Cl. A; and Alphabet, Inc., Cl. A were among the top contributors to performance. Shares of Amazon.com outperformed in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
The Consumer Discretionary and Industrials sectors were the most significant detractors from relative performance. Regarding individual positions, JPMorgan Chase & Co.; Boeing Company; CME Group, Inc., Cl. A; Wells Fargo & Company; and Blackstone Mortgage Trust, Inc., Cl. A were among the most significant detractors from performance. Shares of Boeing underperformed in response to developments identified in the Alger Capital Appreciation Fund discussion.
Alger Mid Cap Growth Fund
The Alger Mid Cap Growth Fund returned 41.34% for the fiscal year ended October 31, 2020, compared to the 21.14% return of the Russell Midcap Growth Index.
Contributors to Performance
During the reporting period, the largest sector weightings were Information Technology and Healthcare. The largest sector overweight was Healthcare and the largest underweight was Information Technology.
The Healthcare and Consumer Discretionary sectors provided the greatest contributions to relative performance. Regarding individual positions, DexCom, Inc.; CrowdStrike Holdings, Inc., Cl. A; Forte Biosciences warrants; DraftKings, Inc., Cl. A; and Advanced Micro Devices, Inc. were among the top contributors to performance. Forte Biosciences is developing a live biotherapeutic spray that has demonstrated encouraging response rates and safety for treating mild and moderate cases of adult and pediatric atopic dermatitis, a condition that causes red and itchy skin. While topical steroids are the front-line treatment of choice for these patients, there are significant shortcomings in their use. They need to be applied multiple times each day, symptoms may go unresolved and skin atrophy can occur. The mild/moderate atopic dermatitis market is sizeable and if Forte’s biotherapeutic is efficient and safe, then even on conservative market penetration assumptions, we believe its revenue opportunity is substantial. Forte’s shares performed strongly in response to trial data demonstrating excellent tolerability and significant improvement in disease activity in both adults and children.
Detractors from Performance
The Industrials and Consumer Staples sectors were among the sectors that detracted from results. Regarding individual positions, Bed Bath & Beyond, Inc.; Live Nation Entertainment, Inc.; Middleby Corp.; Benefitfocus, Inc.; and Tolero CDR/REC were among the top detractors from performance. Live Nation Entertainment is the music industry’s largest concert promotor. Prior to the coronavirus pandemic, it was rapidly increasing the list of artists whose concerts it promotes and the volume of the company’s ticket sales was also growing significantly. In February, fears that the spread of the coronavirus could dramatically curtail live concerts sparked a selloff of Live Nation Entertainment stock. Investors’ fear materialized when Live Nation Entertainment was forced to cancel thousands of concerts in response to government stay-at-home orders and bans on events that attract large crowds of individuals. Live Nation Entertainment also announced that it would refund tickets for the cancelled events.
Alger Mid Cap Focus Fund
Class I shares of the Alger Mid Cap Focus Fund generated a 55.35% return compared to the 21.14% return of the Russell Midcap Growth Index for the fiscal year ended October 31, 2020.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Healthcare. The largest sector overweight was Healthcare and the largest sector underweight was Information Technology. The Healthcare and Consumer Discretionary sectors provided the largest contributions to relative performance.
Regarding individual positions, Quidel Corp.; Teladoc Health, Inc.; MarketAxess Holdings, Inc.; DexCom, Inc.; and CrowdStrike Holdings, Inc., Cl. A were among the top contributors to performance. Quidel develops, manufactures and markets rapid point-of-care diagnostic testing solutions worldwide that are used for infectious disease, cardiovascular, toxicology, women’s health, gastrointestinal diseases and other healthcare areas. Quidel’s diagnostics are mainly used at point-of-care locations, such as physicians’ offices, hospitals, urgent care clinics, pharmacies, wellness screening clinics and clinical laboratories. Quidel announced strong results for the last three months of 2019 and strong guidance for calendar year 2020. Quidel’s results benefitted from a stronger-than-expected 2019-2020 U.S. flu season. Additionally, the performance of Quidel shares benefited from the Covid-19 outbreak because the company’s influenza and other respiratory tests can rule out non-coronavirus causes of a patient’s symptoms. Quidel also has various potential drivers of growth, including a new toxicology panel, a high sensitivity troponin test in Europe for cardiac healthcare and a new Lyme Disease test. Quidel also offers diagnostic test solutions for the ongoing Covid-19 pandemic.
Detractors from Performance
The Real Estate and Consumer Staples sectors were among the top detractors from performance. Regarding individual positions, Manhattan Associates, Inc.; Cantel Medical Corp.; Paylocity Holding Corp.; HEICO Corp.; and Motorola Solutions, Inc. were among the top detractors from performance. Cantel Medical develops and manufactures infection prevention products and services for healthcare. These products include capital equipment, consumables and services for the endoscopy, dental, dialysis and life sciences markets to help prevent the occurrence or spread of infections on a worldwide basis. Shares of Cantel Medical underperformed early in 2020 due to both an announcement that Cantel will not sell its hemodialysis water segment as expected and weaker-than-expected organic growth in its fiscal 2020 second quarter for its endoscopy business, a result of increased competition.
Alger Weatherbie Specialized Growth Fund
The Alger Weatherbie Specialized Growth Fund generated a 36.57% return during the fiscal year ended October 31, 2020, compared to the 21.71% return of the Russell 2500 Growth Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Information Technology and Healthcare. The largest sector overweight was Information Technology. The fund had no exposure to Communication Services, Consumer Staples, Materials or Utilities and insignificant exposure to the Energy Sector. The Consumer Discretionary and Information Technology sectors provided the greatest contributions to relative performance.
Among individual positions, Chegg, Inc.; Nevro Corp.; Insulet Corp.; Paylocity Holding Corp.; and Trade Desk, Inc., Cl. A were among the top contributors to performance. Chegg provides online textbook rentals and other internet-delivered services, such as homework help, tutoring and assistance with obtaining scholarships and finding internships. The company has been acquiring customers at a low cost, in part because it is a leader in providing supplementary educational services to college students. Its Chegg Services offering helps students master subjects, improve their grades, graduate and pursue careers. The Covid-19 pandemic saw four-year college students across the country leave campuses and complete the spring semester remotely. As face-to-face learning was suspended, the company’s online tutoring became a sought-after resource. Chegg shares have performed strongly in large part due to the company generating strong subscriber growth. In our opinion, Chegg’s encouraging results underscore the company’s strong fundamentals.
Detractors from Performance
The Healthcare and Energy sectors were the largest detractors from relative performance. Regarding individual positions, U.S. Physical Therapy, Inc.; Glaukos Corp; Portola Pharmaceuticals, Inc.; Ebix, Inc.; and Canada Goose Holdings, Inc. were among the most significant detractors from performance. U.S. Physical Therapy, through its subsidiaries, operates outpatient physical therapy clinics that provide pre- and post-operative care and treatment for orthopedic-related disorders and sports-related injuries. The company also provides preventative care and rehabilitation of injured workers. With the Covid-19 pandemic, large segments of the U.S. population sheltered in place and maintained “social distancing.” Additionally, large team sporting events were cancelled and individuals with sports injuries deferred diagnosis, treatment and physical rehabilitation, which created a business disruption for the company.
Alger Small Cap Growth Fund
The Alger Small Cap Growth Fund returned 42.80% for the fiscal year ended October 31, 2020, compared to the 13.37% return of the Russell 2000 Growth Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Healthcare and Information Technology. The largest sector overweight was Information Technology and the largest underweight was Industrials. The Healthcare and Information Technology sectors provided the greatest contributions to relative performance.
Regarding individual positions, Quidel Corp.; Shopify, Inc., Cl. A; Veeva Systems, Inc., Cl. A; DexCom, Inc.; and Avalara Inc. were among the top contributors to performance. Shares of Quidel performed strongly in response to developments identified in the Mid Cap Focus Fund discussion.
Detractors from Performance
The Communication Services and Energy sectors were among the sectors that detracted from results. Regarding individual positions, Cantel Medical Corp.; Live Nation Entertainment, Inc.; Blackbaud, Inc.; Magnolia Oil & Gas Corp., Cl. A; and Bed Bath & Beyond, Inc. were among the most significant detractors from performance. Shares of Live Nation Entertainment underperformed in response to developments identified in the Alger Mid Cap Growth Fund discussion.
Alger Small Cap Focus Fund
The Alger Small Cap Focus Fund returned 34.74% during the fiscal year ended October 31, 2020, compared to the 13.37% return of the Russell 2000 Growth Index.
Contributors to Performance
During the reporting period, the Healthcare and Information Technology sectors were the largest portfolio sector weightings. The largest sector overweight was Information Technology. The fund had no exposure to Energy, Consumer Staples, Communication Services, Real Estate or Utilities. The Healthcare and Information Technology sectors were the most important contributors to relative performance.
Regarding individual positions Quidel Corp.; Veeva Systems, Inc., Cl. A; Everbridge, Inc.; Chegg, Inc.; and CryoPort, Inc. were among the most significant contributors to performance. Shares of Quidel performed strongly in response to developments identified in the Mid Cap Focus Fund discussion.
Detractors from Performance
The fund’s lack of Consumer Staples holdings was the most significant detractor from relative performance. Regarding individual positions, Cantel Medical Corp.; Glaukos Corp.; PROS Holdings, Inc.; FLIR Systems, Inc.; and Blackbaud, Inc. were the largest detractors from performance. Shares of Cantel underperformed in response to developments identified in the Alger Mid Cap Focus Fund discussion.
Alger International Focus Fund
The Alger International Focus Fund recorded a 25.69% return for the fiscal year ended October 31, 2020, compared to the -2.19% return of the MSCI ACWI ex USA Index.
Contributors to Performance
During the reporting period, the largest portfolio sector weightings were Consumer Discretionary and Information Technology. The largest sector overweight was Information Technology and the largest sector underweight was Financials. The Information Technology and Financials sectors provided the greatest contributions to relative performance. From a country perspective, Japan, Denmark, Australia, Italy and the Netherlands were among the most significant contributors to relative performance.
Regarding individual positions, Adyen NV; Lasertec Corp.; EQT AB; Eurofins Scientific Societe Europeenne; and Lululemon Athletica, Inc. were among the top contributors to performance. Lasertec of Japan is a world leader in testing equipment for masks used in the production of semiconductors and liquid crystal displays. It was the first company to commercialize extreme ultra-violet light lithography (EUV) mask inspection systems. Lasertec beat expectations when announcing results in February and said orders expanded 48% year over year. With above-average revenue visibility over the next three years, relatively conservative accounting policies (revenues are recognized only after customers start using the inspection equipment) and a strong balance sheet (net cash), Lasertec is viewed favorably by many investors.
Detractors from Performance
The Utilities and Consumer Staples sectors were among the sectors that detracted from results. From a country perspective, China, Ireland, Russia and South Korea were among the top detractors from performance.
Regarding individual positions, Rightmove plc; IRB Brasil Resseguros SA; Safran S.A.; Burberry Group plc; and Eurazeo SA were among the top detractors from performance. Burberry Group is a British luxury fashion house headquartered in London. It focuses on the manufacturing and distribution of trench coats, ready-to-wear outerwear, fashion accessories, fragrances, sunglasses and cosmetics. The company was undergoing a successful and significant transformation under the leadership of a new management team and a new creative designer. However, the Covid-19 outbreak and the lockdown announcements that began in Asia and later spread to other major parts of the world created significant uncertainty about the company’s short-term outlook. Concerns about the impact from store closures and travel restrictions around the globe weighed on the share price.
Alger Health Sciences Fund
The Alger Health Sciences Fund returned 28.09% for the fiscal year ended October 31, 2020, compared to the 9.71% return of the S&P 500 Index and the 15.37% return of the Russell 3000 Healthcare Index. Dan Chung, Chief Executive Officer and Chief Investment Officer, and Teresa McRoberts, Senior Vice President, have been jointly responsible for day-to-day management of the fund’s portfolio. Effective August 28, 2020, Ms. McRoberts retired and Dan Chung became solely responsible for managing the fund. The fund’s investment strategy remains unchanged.
Contributors to Performance
Among the most important contributors to performance were DexCom, Inc.; Forte Biosciences, Inc.; Forte Biosciences Warrants, Sarepta Therapeutics, Inc.; and Danaher Corp. Shares of Forte Biosciences performed strongly in response to developments identified in the Alger Mid Cap Growth Fund discussion.
Detractors from Performance
Among individual positions, Tolero CDR/REC; GW Pharmaceuticals Plc; SAGE Therapeutics, Inc.; Amarin Corp. Plc and Cigna Corp. were among the largest detractors from performance. GW Pharmaceuticals is producing cannabinoid-based pharmaceuticals without tetrahydrocannabinol, or THC, which is the mood-altering component in marijuana. These cannabinoids enable the identification of unique chemotypes that have positive effects on different diseases, including epilepsy, inflammatory disorders and psychosis. GW’s near-term focus is developing Epidiolex for use with treatment resistant epilepsy, with up to 40% of epileptic patients continuing to have seizures after using three or more different drugs. The sales growth of Epidiolex has been disappointing because the virtual nature of diagnosis and prescribing drugs during the Covid-19 pandemic is challenging the adoption of this newer type of therapy; shares of GW Pharmaceuticals thus underperformed.
I thank you for putting your trust in Alger.
Sincerely,
Daniel C. Chung, CFA
Chief Investment Officer
Fred Alger Management, LLC
Investors cannot invest directly in an index. Index performance does not reflect the deduction for fees, expenses, or taxes.
This report and the financial statements contained herein are submitted for the general information of shareholders of the funds. This report is not authorized for distribution to prospective investors in a fund unless preceded or accompanied by an effective prospectus for the fund. Performance of funds discussed above other than the Alger 25 Fund, the Alger 35 Fund and the Alger Mid Cap Focus Fund represents the return of Class A shares prior to the deduction of any sales charges and includes the reinvestment of any dividends or distributions. Performance for the Alger 25 Fund and the Alger 35 Fund represents the returns of Class P shares. Performance for the Alger Mid Cap Focus Fund represents the return of Class I shares.
The performance data quoted represents past performance, which is not an indication or guarantee of future results.
Standardized performance results can be found on the following pages. The investment return and principal value of an investment in a fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, visit us at www.alger.com or call us at (800) 992-3863.
The views and opinions of the funds’ management in this report are as of the date of the Shareholders’ Letter and are subject to change at any time subsequent to this date. 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 fund 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 fund 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 fund. 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, 2020. Securities mentioned in the Shareholders’ Letter, if not found in the Schedule of Investments, may have been held by the funds during the 12-month fiscal period ended October 31, 2020.
Risk Disclosures
Alger Capital Appreciation Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumer’s disposable income, consumer preferences and social trends. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility.
Alger 25 Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumer’s disposable income, consumer preferences and social trends. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger 35 Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger Growth & Income Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Income-producing securities may cut or fail to declare dividends due to market downturns or for other reasons.
Alger Mid Cap Growth Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Mid Cap Focus Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Investing in companies of medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. The fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Weatherbie Specialized Growth Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign securities and emerging markets involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility.
Alger Small Cap Growth Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities and emerging markets involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility.
Alger Small Cap Focus Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger International Focus Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign securities and emerging markets involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Health Sciences Fund
Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Private placements are offerings of a company’s securities not registered with the SEC and not offered to the public, for which limited information may be available. Such investments are generally considered to be illiquid. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
For a more detailed discussion of the risks associated with a fund, please see the Prospectus.
Before investing, carefully consider a fund’s investment objective, risks, charges, and expenses.
For a prospectus or a summary prospectus containing this and other information about The Alger Funds call us at (800) 992-3863 or visit us at www.alger.com. Read it carefully before investing.
Fred Alger & Company, LLC, Distributor. Member NYSE Euronext, SIPC.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
Definitions:
| · | The S&P 500 Index: An index of large company stocks considered to be representative of the U.S. stock market. |
| · | The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. |
| · | The MSCI ACWI ex USA Index (gross) captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 26 emerging markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the US. |
| · | The Morgan Stanley Capital International (MSCI) Emerging Markets Index (gross) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. |
| · | The Russell 3000 Healthcare Index is an unmanaged index that measures the performance of those companies in the Russell 3000 Index involved in the medical services or healthcare field. Also included are companies involved in research, development and production of pharmaceuticals and biotechnology. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on the total market capitalization, which represents 99% of the U.S. equity market. |
| · | The Russell Mid-cap Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Mid-cap Index companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell Mid-cap Growth Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. |
| · | The Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 2500 Growth Index is constructed to provide a comprehensive and unbiased barometer of the small to mid-cap growth market. |
| · | The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher growth earning potential as defined by Russell’s leading style methodology. The Russell 2000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the small-cap growth segment. |
FUND PERFORMANCE AS OF 9/30/20 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
| | | | 1 | | | | 5 | | | | 10 | | | | SINCE | |
| | | | YEAR | | | | YEARS | | | | YEARS | | | | INCEPTION | |
| Alger Capital Appreciation Class A (Inception 12/31/96) | | | 35.53 | % | | | 18.10 | % | | | 16.26 | % | | | 10.67 | % |
| Alger Capital Appreciation Class C (Inception 7/31/97)* | | | 41.00 | % | | | 18.52 | % | | | 16.01 | % | | | 10.48 | % |
| Alger Capital Appreciation Class Z (Inception 12/29/10) | | | 43.44 | % | | | 19.80 | % | | | n/a | | | | 16.33 | % |
| | | | | | | | | | | | | | | | | |
| Alger 25 Fund Class P (Inception 12/28/17) | | | 48.36 | % | | | n/a | | | | n/a | | | | 23.37 | % |
| Alger 25 Fund Class P-2 (Inception 10/31/18) | | | 48.37 | % | | | n/a | | | | n/a | | | | 31.03 | % |
| | | | | | | | | | | | | | | | | |
| Alger 35 Fund Class P (Inception 3/29/18) | | | 56.28 | % | | | n/a | | | | n/a | | | | 26.15 | % |
| Alger 35 Fund Class P-2 (Inception 10/31/18) | | | 56.08 | % | | | n/a | | | | n/a | | | | 32.70 | % |
| | | | | | | | | | | | | | | | | |
| Alger Growth & Income Class A (Inception 12/31/96) | | | 5.66 | % | | | 11.10 | % | | | 11.07 | % | | | 8.32 | % |
| Alger Growth & Income Class C (Inception 7/31/97)* | | | 9.70 | % | | | 11.46 | % | | | 10.83 | % | | | 8.14 | % |
| Alger Growth & Income Class Z (Inception 3/1/12) | | | 11.90 | % | | | 12.67 | % | | | n/a | | | | 11.88 | % |
| | | | | | | | | | | | | | | | | |
| Alger Mid Cap Growth Class A (Inception 12/31/96) | | | 36.64 | % | | | 16.28 | % | | | 13.31 | % | | | 9.73 | % |
| Alger Mid Cap Growth Class B (Inception 5/24/93) | | | 39.37 | % | | | 16.75 | % | | | 13.26 | % | | | 9.70 | % |
| Alger Mid Cap Growth Class C (Inception 7/31/97)* | | | 42.15 | % | | | 16.59 | % | | | 12.98 | % | | | 9.10 | % |
| Alger Mid Cap Growth Class Z (Inception 5/28/15) | | | 44.69 | % | | | 17.89 | % | | | n/a | | | | 13.53 | % |
| | | | | | | | | | | | | | | | | |
| Alger Mid Cap Focus Class I (Inception 6/14/19) | | | 54.90 | % | | | n/a | | | | n/a | | | | 38.19 | % |
| Alger Mid Cap Focus Class Z (Inception 6/14/19) | | | 55.31 | % | | | n/a | | | | n/a | | | | 38.47 | % |
| | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized Growth Class A (Inception 5/8/02) | | | 28.61 | % | | | 18.27 | % | | | 13.92 | % | | | 10.52 | % |
| Alger Weatherbie Specialized Growth Class C (Inception 5/8/02) | | | 33.71 | % | | | 18.64 | % | | | 13.66 | % | | | 10.31 | % |
| Alger Weatherbie Specialized Growth Class I (Inception 8/5/07) | | | 35.74 | % | | | 19.57 | % | | | 14.56 | % | | | 10.90 | % |
| Alger Weatherbie Specialized Growth Class Y (Inception 8/31/17) | | | 36.32 | % | | | n/a | | | | n/a | | | | 22.82 | % |
| Alger Weatherbie Specialized Growth Class Z (Inception 12/29/10) | | | 36.19 | % | | | 19.96 | % | | | n/a | | | | 13.92 | % |
| | | | | | | | | | | | | | | | | |
| Alger Small Cap Growth Class A (Inception 12/31/96) | | | 36.42 | % | | | 18.95 | % | | | 13.97 | % | | | 6.86 | % |
| Alger Small Cap Growth Class B (Inception 11/11/86) | | | 38.81 | % | | | 19.29 | % | | | 13.96 | % | | | 6.84 | % |
| Alger Small Cap Growth Class C (Inception 7/31/97)* | | | 41.95 | % | | | 19.26 | % | | | 13.59 | % | | | 6.70 | % |
| Alger Small Cap Growth Class Z (Inception 12/29/10) | | | 44.48 | % | | | 20.67 | % | | | n/a | | | | 13.74 | % |
| | | | | | | | | | | | | | | | | |
| Alger Small Cap Focus Class A (Inception 3/3/08) | | | 27.14 | % | | | 19.93 | % | | | 15.39 | % | | | 11.98 | % |
| Alger Small Cap Focus Class C (Inception 3/3/08) | | | 32.28 | % | | | 20.33 | % | | | 15.20 | % | | | 11.67 | % |
| Alger Small Cap Focus Class I (Inception 3/3/08) | | | 34.29 | % | | | 21.25 | % | | | 16.17 | % | | | 12.62 | % |
| Alger Small Cap Focus Class Y (Inception 2/28/17) | | | 34.71 | % | | | n/a | | | | n/a | | | | 24.94 | % |
| Alger Small Cap Focus Class Z (Inception 12/29/10) | | | 34.76 | % | | | 21.62 | % | | | n/a | | | | 15.34 | % |
| | | | | | | | | | | | | | | | | |
| Alger International Focus Class A (Inception 12/31/96) | | | 24.90 | % | | | 6.90 | % | | | 6.92 | % | | | 5.61 | % |
| Alger International Focus Class B (Inception 11/11/86) | | | 27.03 | % | | | 7.27 | % | | | 6.90 | % | | | 5.58 | % |
| Alger International Focus Class C (Inception 7/31/97)* | | | 29.85 | % | | | 7.21 | % | | | 6.64 | % | | | 5.43 | % |
| Alger International Focus Class I (Inception 5/31/13) | | | 32.16 | % | | | 8.30 | % | | | n/a | | | | 6.59 | % |
| Alger International Focus Class Z (Inception 12/29/10) | | | 32.45 | % | | | 8.56 | % | | | n/a | | | | 7.05 | % |
| | | | | | | | | | | | | | | | | |
| Alger Health Sciences Fund Class A (Inception 5/1/02) | | | 32.28 | % | | | 15.28 | % | | | 15.65 | % | | | 12.73 | % |
| Alger Health Sciences Fund Class C (Inception 5/1/02) | | | 37.60 | % | | | 15.63 | % | | | 15.38 | % | | | 12.50 | % |
| Alger Health Sciences Fund Class Z (Inception 5/28/15) | | | 40.05 | % | | | 16.97 | % | | | n/a | | | | 12.44 | % |
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.
Beginning August 7, 2015, Alger Small Cap Focus Fund (formerly Alger Growth Opportunities Fund) changed its investment strategy to normally invest at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that, at the time of purchase of the securities, have a total market capitalization within the range of companies included in the Russell 2000 Growth Index.
Alger International Focus Fund, prior to March 28, 2018, followed different investment strategies and was managed by different portfolio managers. Prior to August 15, 2018, the Fund was named “Alger International Growth Fund”. Beginning May 31, 2013, Alger International Growth Fund (formerly Alger Large Cap Growth Fund) changed its investment strategy to include securities of foreign companies of any market capitalization; its previous investment strategy considered securities of United States companies with a market capitalization equal to or greater than the companies in the Russell 1000 Growth Index. Performance prior to March 28, 2018, reflects these prior management styles and does not reflect the Fund’s current investment strategies and investment personnel.
Beginning April 1, 2011, Alger Growth & Income Fund changed its investment strategy to focus on securities that offer opportunities for capital appreciation as well as pay dividends. Previously, under the name “Alger Balanced Fund”, its investment strategy focused on securities, including fixed-income, with an emphasis on income-producing and a potential for capital appreciation.
Alger Weatherbie Specialized Growth Fund current portfolio managers began managing the Fund in March 2017. The Fund changed its name and investment strategy from “Alger SMid Cap Growth Fund” to “Alger SMid Cap Focus Fund” in August 2017 and the Fund changed its name from “Alger SMid Cap Focus Fund” to “Alger Weatherbie Specialized Growth Fund” in September 2019.
| * | Historical performance prior to the inception of the Class, is that of the Fund’s Class A shares, which has been adjusted to remove the sales charge imposed by Class A shares and adding the higher operating expenses of the Class C shares. |
ALGER CAPITAL APPRECIATION FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Capital Appreciation Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 1000 Growth Index (an unmanaged index of common stocks) for the ten years ended October 31, 2020. Figures for the Alger Capital Appreciation Fund Class A shares and the Russell 1000 Growth Index include reinvestment of dividends. Figures for the Alger Capital Appreciation Fund Class A shares also include reinvestment of capital gains. Performance for Alger Capital Appreciation Fund Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER CAPITAL APPRECIATION FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 11/1/1993 | |
| Class A (Inception 12/31/96) | | | 27.73 | % | | | 15.54 | % | | | 15.40 | % | | | 10.49 | % |
| Class C (Inception 7/31/97)* | | | 32.82 | % | | | 15.93 | % | | | 15.15 | % | | | 10.30 | % |
| Russell 1000 Growth Index | | | 29.22 | % | | | 17.32 | % | | | 16.31 | % | | | 9.09 | % |
| | | | | | | | | | | | | | | | Since | |
| | | | 1 YEAR | | | | 5 YEARS | | | | 10 YEARS | | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 35.26 | % | | | 17.18 | % | | | n/a | | | | 15.82 | % |
| Russell 1000 Growth Index | | | 29.22 | % | | | 17.32 | % | | | n/a | | | | 15.79 | % |
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. Class A returns reflect the maximum initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
| * | Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to July 31, 1997, inception of the class, is that of the Fund’s Class A shares, reduced to reflect the current maximum sales charge and the higher operating expenses of Class C shares. |
ALGER 25 FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS P SHARES
from 12/28/17 to 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger 25 Fund Class P shares and the S&P 500 Index (an unmanaged index of common stocks) from December 28, 2017, the inception date of the Alger 25 Fund Class P shares, through October 31, 2020. Figures for the Alger 25 Fund Class P shares and the S&P 500 Index include reinvestment of dividends. Figures for the Alger 25 Fund Class P shares also include reinvestment of capital gains. Performance for the Alger 25 Fund Class P-2 shares will vary from results shown above due to differences in the expenses that the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER 25 FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/28/2017 | |
| Class P (Inception 12/28/17) | | | 38.86 | % | | | n/a | | | | n/a | | | | 20.75 | % |
| S&P 500 Index | | | 9.71 | % | | | n/a | | | | n/a | | | | 9.24 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 10/31/2018 | |
| Class P-2 (Inception 10/31/18) | | | 38.70 | % | | | n/a | | | | n/a | | | | 26.75 | % |
| S&P 500 Index | | | 9.71 | % | | | n/a | | | | n/a | | | | 11.99 | % |
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 chart 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
ALGER 35 FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS P SHARES
from 3/29/18 to 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger 35 Fund Class P shares and the S&P 500 Index (an unmanaged index of common stocks) from March 29, 2018, the inception date of the Alger 35 Fund Class P shares, through October 31, 2020. Figures for the Alger 35 Fund Class P shares and the S&P 500 Index include reinvestment of dividends. Figures for the Alger 35 Fund Class P shares also include reinvestment of capital gains. Performance for the Alger 35 Fund Class P-2 shares will vary from results shown above due to differences in the expenses that the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER 35 FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 3/29/2018 | |
| Class P (Inception 3/29/18) | | | 50.22 | % | | | n/a | | | | n/a | | | | 24.51 | % |
| S&P 500 Index | | | 9.71 | % | | | n/a | | | | n/a | | | | 10.71 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 10/31/2018 | |
| Class P-2 (Inception 10/31/18) | | | 49.83 | % | | | n/a | | | | n/a | | | | 30.15 | % |
| S&P 500 Index | | | 9.71 | % | | | n/a | | | | n/a | | | | 11.99 | % |
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 chart 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
ALGER GROWTH & INCOME FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Growth & Income Fund Class A shares, with a maximum sales charge of 5.25%, and the S&P 500 Index (an unmanaged index of common stocks) for the ten years ended October 31, 2020. Previously, Alger Growth & Income Fund followed a different investment objective and different strategies under the name “Alger Balanced Fund.” Performance prior to April 1, 2011 does not reflect the Fund’s current investment objective and strategies. Figures for the Alger Growth & Income Fund Class A shares and the S&P 500 Index include reinvestment of dividends. Figures for the Alger Growth & Income Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Growth & Income Fund Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER GROWTH & INCOME FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 0.43 | % | | | 8.88 | % | | | 10.52 | % | | | 8.17 | % |
| Class C (Inception 7/31/97)* | | | 4.19 | % | | | 9.24 | % | | | 10.29 | % | | | 7.99 | % |
| S&P 500 Index | | | 9.71 | % | | | 11.71 | % | | | 13.01 | % | | | 8.45 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since
3/1/2012 | |
| Class Z (Inception 3/1/12) | | | 6.39 | % | | | 10.44 | % | | | n/a | | | | 11.44 | % |
| S&P 500 Index | | | 9.71 | % | | | 11.71 | % | | | n/a | | | | 12.82 | % |
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. Class A returns reflect the maximum initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart 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. Previously, Alger Growth & Income Fund followed a different investment objective and different strategies under the name “Alger Balanced Fund.” Performance prior to April 1, 2011 does not reflect the Fund’s current investment objective and strategies. 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
| * | Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to July 31, 1997, inception of the class, is that of the Fund’s Class A shares, reduced to reflect the current maximum sales charge and the higher operating expenses of Class C shares. |
ALGER MID CAP GROWTH FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Mid Cap Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell Midcap Growth Index (an unmanaged index of common stocks) for the ten years ended October 31, 2020. Figures for the Alger Mid Cap Growth Fund Class A shares and Russell Midcap Growth Index include reinvestment of dividends. Figures for the Alger Mid Cap Growth Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Mid Cap Growth Fund Class B, Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER MID CAP GROWTH FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 33.93 | % | | | 14.71 | % | | | 12.73 | % | | | 9.63 | % |
| Class B (Inception 5/24/93) | | | 36.41 | % | | | 15.17 | % | | | 12.68 | % | | | 9.59 | % |
| Class C (Inception 7/31/97)* | | | 39.26 | % | | | 15.03 | % | | | 12.40 | % | | | 8.99 | % |
| Russell Midcap Growth Index | | | 21.14 | % | | | 14.15 | % | | | 14.13 | % | | | 9.63 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/28/2015 | |
| Class Z (Inception 5/28/15) | | | 41.75 | % | | | 16.29 | % | | | n/a | | | | 12.98 | % |
| Russell Midcap Growth Index | | | 21.14 | % | | | 14.15 | % | | | n/a | | | | 12.05 | % |
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. Class A returns reflect the maximum initial sales charge and Class B and C returns reflect the applicable contingent deferred sales charge. The chart 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
| * | Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to July 31, 1997, inception of the class, is that of the Fund’s Class A shares, reduced to reflect the current maximum sales charge and the higher operating expenses of Class C shares. |
ALGER MID CAP FOCUS FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS I SHARES
from 6/14/19 to 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Mid Cap Focus Fund Class I shares and the Russell Midcap Growth Index (an unmanaged index of common stocks) from June 14, 2019, the inception date of the Alger Mid Cap Focus Fund Class I shares, through October 31, 2020. Figures for the Alger Mid Cap Focus Fund Class I shares and the Russell Midcap Growth Index include reinvestment of dividends. Figures for the Alger Mid Cap Focus Fund Class I shares also include reinvestment of capital gains. Performance for the Alger Mid Cap Focus Fund Class Z shares will vary from the results shown above due to differences in the expenses that the class bears. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER MID CAP FOCUS FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 6/14/2019 | |
| Class I (Inception 6/14/19) | | | 55.35 | % | | | n/a | | | | n/a | | | | 34.94 | % |
| Class Z (Inception 6/14/19) | | | 55.70 | % | | | n/a | | | | n/a | | | | 35.26 | % |
| Russell Midcap Growth Index | | | 21.14 | % | | | n/a | | | | n/a | | | | 17.51 | % |
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 chart 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Weatherbie Specialized Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 2500 Growth Index (an unmanaged index of common stocks) for the ten years ended October 31, 2020. From August 30, 2017 to September 30, 2019, the Fund was named “Alger SMid Cap Focus Fund.” Prior to August 30, 2017, the Fund followed different investment strategies under the name “Alger SMid Cap Growth Fund” and prior to March 1, 2017 was managed by different portfolio managers. Accordingly, performance prior to those dates does not reflect the Fund’s current investment strategies and investment personnel. Figures for the Alger Weatherbie Specialized Growth Fund Class A shares and the Russell 2500 Growth Index include reinvestment of dividends. Figures for the Alger Weatherbie Specialized Growth Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Weatherbie Specialized Growth Fund Class C, Class I, Class Y and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/8/2002 | |
| Class A (Inception 5/8/02) | | | 29.37 | % | | | 17.41 | % | | | 13.69 | % | | | 10.52 | % |
| Class C (Inception 5/8/02) | | | 34.62 | % | | | 17.79 | % | | | 13.43 | % | | | 10.31 | % |
| Class I (Inception 8/5/07)* | | | 36.69 | % | | | 18.73 | % | | | 14.34 | % | | | 10.90 | % |
| Russell 2500 Growth Index | | | 21.71 | % | | | 13.30 | % | | | 13.77 | % | | | 10.08 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 8/30/2017 | |
| Class Y (Inception 8/30/17) | | | 37.08 | % | | | n/a | | | | n/a | | | | 22.45 | % |
| Russell 2500 Growth Index | | | 21.71 | % | | | n/a | | | | n/a | | | | 14.91 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 37.00 | % | | | 19.08 | % | | | n/a | | | | 13.88 | % |
| Russell 2500 Growth Index | | | 21.71 | % | | | 13.30 | % | | | n/a | | | | 12.66 | % |
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. Class A returns reflect the maximum initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart 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. From August 30, 2017 to September 30, 2019, the Fund was named “Alger SMid Cap Focus Fund.” Prior to August 30, 2017, the Fund followed different investment strategies under the name “Alger SMid Cap Growth Fund” and prior to March 1, 2017 was managed by different portfolio managers. Accordingly, performance prior to those dates does not reflect the Fund’s current investment strategies and investment personnel. 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 updated performance, visit us at www.alger. com or call us at (800) 992-3863.
| * | Historical performance prior to August 5, 2007, inception of the class, is that of the Fund’s Class A shares, which has been adjusted to remove the sales charge imposed by Class A shares. |
ALGER SMALL CAP GROWTH FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Small Cap Growth Fund Class A shares, with a maximum sales charge of 5.25%, and the Russell 2000 Growth Index (an unmanaged index of common stocks) for the ten years ended October 31, 2020. Figures for the Alger Small Cap Growth Fund Class A shares and the Russell 2000 Growth Index include reinvestment of dividends. Figures for the Alger Small Cap Growth Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Small Cap Growth Fund Class B, Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER SMALL CAP GROWTH FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 35.27 | % | | | 17.55 | % | | | 13.43 | % | | | 6.76 | % |
| Class B (Inception 11/11/86) | | | 37.68 | % | | | 17.92 | % | | | 13.41 | % | | | 6.75 | % |
| Class C (Inception 7/31/97)* | | | 40.76 | % | | | 17.86 | % | | | 13.04 | % | | | 6.60 | % |
| Russell 2000 Growth Index | | | 13.37 | % | | | 10.36 | % | | | 11.95 | % | | | 7.04 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 43.38 | % | | | 19.26 | % | | | n/a | | | | 13.43 | % |
| Russell 2000 Growth Index | | | 13.37 | % | | | 10.36 | % | | | n/a | | | | 10.75 | % |
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. Class A returns reflect the maximum initial sales charge and Class B and C returns reflect the applicable contingent deferred sales charge. The chart 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
| * | Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to July 31, 1997, inception of the class, is that of the Fund’s Class A shares, reduced to reflect the current maximum sales charge and the higher operating expenses of Class C shares. |
ALGER SMALL CAP FOCUS FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Small Cap Focus Fund Class A shares, with an initial 5.25% maximum sales charge, and the Russell 2000 Growth (an unmanaged index of common stocks) for the ten years ended October 31, 2020. Prior to August 7, 2015, the Fund followed different investment strategies under the name “Alger Growth Opportunities Fund” and prior to February 12, 2015 was managed by a different portfolio manager. Accordingly, performance prior to those dates does not reflect the Fund’s current investment strategies and investment personnel. Figures for the Alger Small Cap Focus Fund Class A shares and the Russell 2000 Growth Index include reinvestment of dividends. Figures for the Alger Small Cap Focus Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Small Cap Focus Fund Class C, Class I, Class Y and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER SMALL CAP FOCUS FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 3/3/2008 | |
| Class A (Inception 3/3/08) | | | 27.70 | % | | | 18.80 | % | | | 14.97 | % | | | 11.85 | % |
| Class C (Inception 3/3/08) | | | 32.85 | % | | | 19.23 | % | | | 14.78 | % | | | 11.55 | % |
| Class I (Inception 3/3/08) | | | 34.86 | % | | | 20.12 | % | | | 15.75 | % | | | 12.50 | % |
| Russell 2000 Growth Index | | | 13.37 | % | | | 10.36 | % | | | 11.95 | % | | | 10.04 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 2/28/2017 | |
| Class Y (Inception 2/28/17) | | | 35.32 | % | | | n/a | | | | n/a | | | | 24.18 | % |
| Russell 2000 Growth Index | | | 13.37 | % | | | n/a | | | | n/a | | | | 10.26 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 35.30 | % | | | 20.48 | % | | | n/a | | | | 15.16 | % |
| Russell 2000 Growth Index | | | 13.37 | % | | | 10.36 | % | | | n/a | | | | 10.75 | % |
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. Class A returns reflect the maximum initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart 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. Prior to August 7, 2015, the Fund followed different investment strategies under the name “Alger Growth Opportunities Fund” and prior to February 12, 2015 was managed by a different portfolio manager. Accordingly, performance prior to those dates does not reflect the Fund’s current investment strategies and investment personnel. 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
ALGER INTERNATIONAL FOCUS FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger International Focus Fund Class A shares, with a maximum sales charge of 5.25%, and MSCI AC World Index ex USA (an unmanaged index of common stocks) for the ten years ended October 31, 2020. Before March 28, 2018, the Fund followed different investment strategies and was managed by different portfolio managers. Prior to May 31, 2013, the Fund was named “Alger Large Cap Growth Fund,” and from May 31, 2013 to August 15, 2018 the Fund was named “Alger International Growth Fund.” Performance prior to March 28, 2018 reflects these prior management styles and does not reflect the Fund’s current investment strategies and investment personnel. Figures for the Alger International Focus Fund Class A shares and the index include reinvestment of dividends. Figures for the Alger International Focus Fund Class A shares also include reinvestment of capital gains. Performance for the Alger International Focus Fund Class B, Class C, Class I and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER INTERNATIONAL FOCUS FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 19.09 | % | | | 5.59 | % | | | 6.38 | % | | | 5.56 | % |
| Class B (Inception 11/11/86) | | | 20.83 | % | | | 5.96 | % | | | 6.35 | % | | | 5.53 | % |
| Class C (Inception 7/31/97)* | | | 23.68 | % | | | 5.88 | % | | | 6.09 | % | | | 5.38 | % |
| MSCI AC World Index ex USA | | | (2.19 | )% | | | 4.76 | % | | | 3.91 | % | | | 5.11 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/31/2013 | |
| Class I (Inception 5/31/13) | | | 25.98 | % | | | 6.96 | % | | | n/a | | | | 6.43 | % |
| MSCI AC World Index ex USA | | | (2.19 | )% | | | 4.76 | % | | | n/a | | | | 3.89 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 26.23 | % | | | 7.22 | % | | | n/a | | | | 6.92 | % |
| MSCI AC World Index ex USA | | | (2.19 | )% | | | 4.76 | % | | | n/a | | | | 3.65 | % |
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. Class A returns reflect the maximum initial sales charge and Class B and C returns reflect the applicable contingent deferred sales charge. The chart 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. Before March 28, 2018, the Fund followed different investment strategies and was managed by different portfolio managers. Prior to May 31, 2013, the Fund was named “Alger Large Cap Growth Fund,” and from May 31, 2013 to August 15, 2018 the Fund was named “Alger International Growth Fund.” Performance prior to March 28, 2018 reflects these prior management styles and does not reflect the Fund’s current investment strategies and investment personnel. Current performance may be higher or lower than the performance quoted. For updated performance, visit us at www.alger.com or call us at (800) 992-3863.
| * | Since inception performance is calculated since the inception of the Class A shares. Historical performance prior to July 31, 1997, inception of the class, is that of the Fund’s Class A shares, reduced to reflect the current maximum sales charge and the higher operating expenses of Class C shares. |
ALGER HEALTH SCIENCES FUND
Fund Highlights Through October 31, 2020 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
—10 years ended 10/31/20
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger Health Sciences Fund Class A shares, with a maximum sales charge of 5.25%, the Russell 3000 Healthcare Index and the S&P 500 Index (each an unmanaged index of common stocks) for the ten years ended October 31, 2020. Figures for the Alger Health Sciences Fund Class A shares, the Russell 3000 Healthcare Index and the S&P 500 Index include reinvestment of dividends. Figures for the Alger Health Sciences Fund Class A shares also include reinvestment of capital gains. Performance for the Alger Health Sciences Fund Class C and Class Z shares will vary from the results shown above due to differences in expenses and sales charges those classes bear. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
ALGER HEALTH SCIENCES FUND
Fund Highlights Through October 31, 2020 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/20
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/1/2002 | |
| Class A (Inception 5/1/02) | | | 21.37 | % | | | 13.94 | % | | | 14.95 | % | | | 12.41 | % |
| Class C (Inception 5/1/02) | | | 26.12 | % | | | 14.29 | % | | | 14.69 | % | | | 12.19 | % |
| Russell 3000 Healthcare Index | | | 15.37 | % | | | 10.49 | % | | | 15.51 | % | | | 9.44 | % |
| S&P 500 Index | | | 9.71 | % | | | 11.71 | % | | | 13.01 | % | | | 8.31 | % |
| | | | | | | | | | | | Since | |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | 5/28/2015 | |
| Class Z (Inception 5/28/15) | | | 28.50 | % | | | 15.62 | % | | | n/a | | | | 11.37 | % |
| Russell 3000 Healthcare Index | | | 15.37 | % | | | 10.49 | % | | | n/a | | | | 8.45 | % |
| S&P 500 Index | | | 9.71 | % | | | 11.71 | % | | | n/a | | | | 10.51 | % |
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. Class A returns reflect the maximum initial sales charge and Class C returns reflect the applicable contingent deferred sales charge. The chart 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 updated performance, visit us at www.alger.com or call us at (800) 992-3863.
PORTFOLIO SUMMARY†
October 31, 2020 (Unaudited)
| | | Alger Capital | | | | | | | | | Alger Growth & | |
| SECTORS | | Appreciation Fund | | | Alger 25 Fund | | | Alger 35 Fund | | | Income Fund | |
| Communication Services | | | 13.8 | % | | | 14.1 | % | | | 13.0 | % | | | 13.0 | % |
| Consumer Discretionary | | | 22.7 | | | | 22.2 | | | | 24.7 | | | | 9.4 | |
| Consumer Staples | | | 0.7 | | | | 0.0 | | | | 2.9 | | | | 8.0 | |
| Energy | | | 0.0 | | | | 0.0 | | | | 0.0 | | | | 2.4 | |
| Financials | | | 2.9 | | | | 2.7 | | | | 1.4 | | | | 12.4 | |
| Healthcare | | | 8.7 | | | | 4.2 | | | | 16.9 | | | | 13.8 | |
| Industrials | | | 4.2 | | | | 3.5 | | | | 4.3 | | | | 6.1 | |
| Information Technology | | | 43.0 | | | | 45.3 | | | | 31.3 | | | | 26.6 | |
| Materials | | | 2.7 | | | | 3.2 | | | | 0.0 | | | | 2.1 | |
| Real Estate | | | 1.0 | | | | 3.2 | | | | 0.0 | | | | 4.1 | |
| Utilities | | | 0.0 | | | | 0.0 | | | | 0.0 | | | | 1.5 | |
| Short-Term Investments and Net Other Assets | | | 0.3 | | | | 1.6 | | | | 5.5 | | | | 0.6 | |
| | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | | Alger Mid Cap | | | | | | Alger Weatherbie | | | | |
| | | Growth | | | Alger Mid Cap Focus | | | Specialized Growth | | | Alger Small Cap | |
| SECTORS | | Fund | | | Fund | | | Fund | | | Growth Fund | |
| Communication Services | | | 6.0 | % | | | 6.3 | % | | | 0.0 | % | | | 3.1 | % |
| Consumer Discretionary | | | 17.4 | | | | 27.4 | | | | 12.3 | | | | 10.9 | |
| Consumer Staples | | | 1.9 | | | | 0.0 | | | | 0.0 | | | | 2.0 | |
| Energy | | | 0.0 | | | | 0.0 | | | | 0.4 | | | | 0.4 | |
| Financials | | | 2.3 | | | | 2.3 | | | | 8.4 | | | | 2.8 | |
| Healthcare | | | 27.2 | | | | 20.7 | | | | 30.7 | | | | 38.2 | |
| Industrials | | | 12.5 | | | | 12.4 | | | | 9.2 | | | | 3.3 | |
| Information Technology | | | 29.4 | | | | 25.7 | | | | 25.2 | | | | 26.5 | |
| Materials | | | 0.7 | | | | 0.0 | | | | 0.0 | | | | 1.0 | |
| Real Estate | | | 2.3 | | | | 1.3 | | | | 6.0 | | | | 1.6 | |
| Short-Term Investments and Net Other Assets | | | 0.3 | | | | 3.9 | | | | 7.8 | | | | 10.2 | |
| | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | | | Alger Small Cap | | | | Alger Health Sciences | | | | | | | | | |
| SECTORS | | | Focus Fund | | | | Fund | | | | | | | | | |
| Communication Services | | | 1.4 | % | | | 0.0 | % | | | | | | | | |
| Consumer Discretionary | | | 9.2 | | | | 0.0 | | | | | | | | | |
| Financials | | | 0.0 | | | | 0.4 | | | | | | | | | |
| Healthcare | | | 47.4 | | | | 97.4 | | | | | | | | | |
| Industrials | | | 3.8 | | | | 0.0 | | | | | | | | | |
| Information Technology | | | 34.7 | | | | 0.0 | | | | | | | | | |
| Materials | | | 1.3 | | | | 0.0 | | | | | | | | | |
| Short-Term Investments and Net Other Assets | | | 2.2 | | | | 2.2 | | | | | | | | | |
| | | | 100.0 | % | | | 100.0 | % | | | | | | | | |
PORTFOLIO SUMMARY†
October 31, 2020 (Unaudited) (Continued)
| | | Alger International | |
| COUNTRY | | Focus Fund | |
| Australia | | | 5.8 | % |
| Belgium | | | 1.9 | |
| Brazil | | | 1.8 | |
| China | | | 13.1 | |
| Denmark | | | 4.4 | |
| France | | | 10.0 | |
| Germany | | | 2.0 | |
| Hong Kong | | | 6.1 | |
| India | | | 4.3 | |
| Ireland | | | 2.2 | |
| Italy | | | 6.0 | |
| Japan | | | 11.8 | |
| Netherlands | | | 7.6 | |
| New Zealand | | | 3.3 | |
| Spain | | | 2.1 | |
| Sweden | | | 4.7 | |
| Switzerland | | | 4.9 | |
| Taiwan | | | 2.2 | |
| United Kingdom | | | 2.0 | |
| United States | | | 2.4 | |
| Cash and Net Other Assets | | | 1.4 | |
| | | | 100.0 | % |
| † | Based on net assets for each Fund. |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—98.6% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—0.8% | | | | | | | | |
| TransDigm Group, Inc. | | | 57,726 | | | $ | 27,558,970 | |
| | | | | | | | | |
| AIR FREIGHT & LOGISTICS—0.3% | | | | | | | | |
| XPO Logistics, Inc.* | | | 115,823 | | | | 10,424,070 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—0.7% | | | | | | | | |
| LVMH Moet Hennessy Louis Vuitton SE | | | 49,943 | | | | 23,411,669 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—9.0% | | | | | | | | |
| Adobe, Inc.* | | | 252,661 | | | | 112,964,733 | |
| Five9, Inc.* | | | 51,952 | | | | 7,882,157 | |
| Intuit, Inc. | | | 97,279 | | | | 30,611,756 | |
| Palantir Technologies, Inc., Cl. A* | | | 85,825 | | | | 869,407 | |
| Palantir Technologies, Inc., Cl. A*,@,(a) | | | 687,886 | | | | 5,958,331 | |
| RingCentral, Inc., Cl. A* | | | 68,346 | | | | 17,656,506 | |
| salesforce.com, Inc.* | | | 541,734 | | | | 125,828,556 | |
| | | | | | | | 301,771,446 | |
| AUTOMOBILE MANUFACTURERS—0.9% | | | | | | | | |
| Tesla, Inc.* | | | 75,446 | | | | 29,276,066 | |
| | | | | | | | | |
| AUTOMOTIVE RETAIL—0.4% | | | | | | | | |
| Carvana Co., Cl. A* | | | 7,772 | | | | 1,440,540 | |
| Lithia Motors, Inc., Cl. A | | | 47,650 | | | | 10,939,011 | |
| | | | | | | | 12,379,551 | |
| BIOTECHNOLOGY—1.4% | | | | | | | | |
| Genmab AS#,* | | | 258,024 | | | | 8,685,088 | |
| Sage Therapeutics, Inc.* | | | 96,775 | | | | 7,101,350 | |
| Sarepta Therapeutics, Inc.* | | | 36,724 | | | | 4,991,159 | |
| Vertex Pharmaceuticals, Inc.* | | | 131,912 | | | | 27,485,184 | |
| | | | | | | | 48,262,781 | |
| CASINOS & GAMING—0.4% | | | | | | | | |
| Las Vegas Sands Corp. | | | 307,086 | | | | 14,758,553 | |
| | | | | | | | | |
| COMPUTER & ELECTRONICS RETAIL—0.2% | | | | | | | | |
| Best Buy Co., Inc. | | | 46,529 | | | | 5,190,310 | |
| | | | | | | | | |
| CONSTRUCTION MACHINERY & HEAVY TRUCKS—0.3% | | | | | | | | |
| PACCAR, Inc. | | | 127,770 | | | | 10,909,003 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—9.3% | | | | | | | | |
| Fidelity National Information Services, Inc. | | | 179,867 | | | | 22,409,630 | |
| Fiserv, Inc.* | | | 547,780 | | | | 52,296,557 | |
| PayPal Holdings, Inc.* | | | 460,310 | | | | 85,677,499 | |
| Square, Inc., Cl. A* | | | 13,611 | | | | 2,108,072 | |
| Visa, Inc., Cl. A | | | 823,629 | | | | 149,661,625 | |
| | | | | | | | 312,153,383 | |
| DIVERSIFIED SUPPORT SERVICES—0.6% | | | | | | | | |
| Cintas Corp. | | | 69,121 | | | | 21,742,011 | |
| | | | | | | | | |
| ENVIRONMENTAL & FACILITIES SERVICES—0.6% | | | | | | | | |
| Waste Connections, Inc. | | | 191,221 | | | | 18,992,070 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—1.8% | | | | | | | | |
| Intercontinental Exchange, Inc. | | | 254,067 | | | | 23,983,925 | |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—98.6% (CONT.) | | SHARES | | | VALUE | |
| FINANCIAL EXCHANGES & DATA—1.8% (CONT.) | | | | | | | | |
| S&P Global, Inc. | | | 110,738 | | | $ | 35,738,475 | |
| | | | | | | | 59,722,400 | |
| FOOD DISTRIBUTORS—0.7% | | | | | | | | |
| Sysco Corp. | | | 405,630 | | | | 22,435,395 | |
| | | | | | | | | |
| FOOTWEAR—0.9% | | | | | | | | |
| NIKE, Inc., Cl. B | | | 243,469 | | | | 29,235,758 | |
| | | | | | | | | |
| GENERAL MERCHANDISE STORES—0.2% | | | | | | | | |
| Target Corp. | | | 38,237 | | | | 5,820,436 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—5.3% | | | | | | | | |
| Boston Scientific Corp.* | | | 1,344,588 | | | | 46,079,031 | |
| Danaher Corp. | | | 529,479 | | | | 121,536,610 | |
| DexCom, Inc.* | | | 28,468 | | | | 9,097,803 | |
| | | | | | | | 176,713,444 | |
| HEALTHCARE SERVICES—0.3% | | | | | | | | |
| Guardant Health, Inc.* | | | 108,822 | | | | 11,606,955 | |
| | | | | | | | | |
| HEALTHCARE SUPPLIES—0.5% | | | | | | | | |
| Align Technology, Inc.* | | | 37,889 | | | | 16,143,745 | |
| | | | | | | | | |
| HOME IMPROVEMENT RETAIL—1.7% | | | | | | | | |
| Lowe’s Cos., Inc. | | | 352,751 | | | | 55,769,933 | |
| | | | | | | | | |
| INDUSTRIAL GASES—0.9% | | | | | | | | |
| Air Products & Chemicals, Inc. | | | 111,617 | | | | 30,833,080 | |
| | | | | | | | | |
| INTERACTIVE MEDIA & SERVICES—9.6% | | | | | | | | |
| Alphabet, Inc., Cl. C* | | | 69,406 | | | | 112,507,820 | |
| Facebook, Inc., Cl. A* | | | 553,357 | | | | 145,593,759 | |
| Pinterest, Inc., Cl. A* | | | 698,543 | | | | 41,179,110 | |
| Snap, Inc., Cl. A* | | | 64,407 | | | | 2,536,992 | |
| Tencent Holdings Ltd. | | | 244,360 | | | | 18,670,365 | |
| | | | | | | | 320,488,046 | |
| INTERNET & DIRECT MARKETING RETAIL—16.3% | | | | | | | | |
| Alibaba Group Holding Ltd.#,* | | | 548,311 | | | | 167,064,878 | |
| Altaba, Inc.*,@,(b) | | | 259,825 | | | | 5,734,338 | |
| Amazon.com, Inc.* | | | 107,021 | | | | 324,931,808 | |
| Booking Holdings, Inc.* | | | 10,970 | | | | 17,798,825 | |
| MercadoLibre, Inc.* | | | 26,239 | | | | 31,855,458 | |
| | | | | | | | 547,385,307 | |
| INTERNET SERVICES & INFRASTRUCTURE—1.1% | | | | | | | | |
| Shopify, Inc., Cl. A* | | | 15,498 | | | | 14,342,314 | |
| Twilio, Inc., Cl. A* | | | 83,405 | | | | 23,267,493 | |
| | | | | | | | 37,609,807 | |
| INVESTMENT BANKING & BROKERAGE—0.7% | | | | | | | | |
| Morgan Stanley | | | 507,618 | | | | 24,441,807 | |
| | | | | | | | | |
| LEISURE FACILITIES—0.2% | | | | | | | | |
| Vail Resorts, Inc. | | | 26,860 | | | | 6,232,594 | |
| | | | | | | | | |
| MANAGED HEALTHCARE—0.8% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 85,401 | | | | 26,059,261 | |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—98.6% (CONT.) | | SHARES | | | VALUE | |
| METAL & GLASS CONTAINERS—0.5% | | | | | | | | |
| Ball Corp. | | | 187,672 | | | $ | 16,702,808 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—1.1% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 144,930 | | | | 7,072,584 | |
| Netflix, Inc.* | | | 52,588 | | | | 25,018,215 | |
| The Walt Disney Co. | | | 42,579 | | | | 5,162,704 | |
| | | | | | | | 37,253,503 | |
| PHARMACEUTICALS—0.4% | | | | | | | | |
| Horizon Therapeutics PLC* | | | 167,051 | | | | 12,517,131 | |
| | | | | | | | | |
| PROPERTY & CASUALTY INSURANCE—0.4% | | | | | | | | |
| The Progressive Corp. | | | 145,424 | | | | 13,364,466 | |
| | | | | | | | | |
| RAILROADS—1.0% | | | | | | | | |
| Union Pacific Corp. | | | 187,468 | | | | 33,217,455 | |
| | | | | | | | | |
| RESEARCH & CONSULTING SERVICES—0.5% | | | | | | | | |
| CoStar Group, Inc.* | | | 21,678 | | | | 17,854,218 | |
| | | | | | | | | |
| RESTAURANTS—0.8% | | | | | | | | |
| Chipotle Mexican Grill, Inc., Cl. A* | | | 16,753 | | | | 20,128,394 | |
| Starbucks Corp. | | | 83,058 | | | | 7,222,724 | |
| | | | | | | | 27,351,118 | |
| SEMICONDUCTOR EQUIPMENT—0.9% | | | | | | | | |
| Lam Research Corp. | | | 86,574 | | | | 29,615,234 | |
| | | | | | | | | |
| SEMICONDUCTORS—7.8% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 168,580 | | | | 12,692,388 | |
| Micron Technology, Inc.* | | | 338,890 | | | | 17,059,723 | |
| NVIDIA Corp. | | | 142,311 | | | | 71,349,043 | |
| NXP Semiconductors NV | | | 375,821 | | | | 50,780,934 | |
| QUALCOMM, Inc. | | | 638,057 | | | | 78,710,711 | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 351,815 | | | | 29,506,724 | |
| | | | | | | | 260,099,523 | |
| SPECIALTY CHEMICALS—1.3% | | | | | | | | |
| The Sherwin-Williams Co. | | | 61,576 | | | | 42,363,056 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—8.2% | | | | | | | | |
| Microsoft Corp. | | | 1,284,617 | | | | 260,096,404 | |
| ServiceNow, Inc.* | | | 28,919 | | | | 14,389,227 | |
| | | | | | | | 274,485,631 | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.6% | | | | | | | | |
| Apple, Inc. | | | 2,021,555 | | | | 220,066,477 | |
| | | | | | | | | |
| TRUCKING—0.1% | | | | | | | | |
| Uber Technologies, Inc.* | | | 113,435 | | | | 3,789,863 | |
| | | | | | | | | |
| WIRELESS TELECOMMUNICATION SERVICES—3.1% | | | | | | | | |
| T-Mobile US, Inc.* | | | 958,670 | | | | 105,041,472 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $1,949,566,312) | | | | | | | 3,301,049,806 | |
THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments October 31, 2020 (Continued)
| REAL ESTATE INVESTMENT TRUST—1.0% | | SHARES | | | VALUE | |
| SPECIALIZED—1.0% | | | | | | | | |
| Crown Castle International Corp. | | | 224,244 | | | $ | 35,026,913 | |
| (Cost $28,163,120) | | | | | | | 35,026,913 | |
| SPECIAL PURPOSE VEHICLE—0.1% | | SHARES | | | VALUE | |
| DATA PROCESSING & OUTSOURCED SERVICES —0.1% | | | | | | | | |
| Crosslink Ventures Capital LLC*,@,(b),(c) | | | 111 | | | | 2,775,000 | |
| (Cost $2,775,000) | | | | | | | 2,775,000 | |
| Total Investments | | | | | | | | |
| (Cost $1,980,504,432) | | | 99.7 | % | | $ | 3,338,851,719 | |
| Affiliated Securities (Cost $2,775,000) | | | | | | | 2,775,000 | |
| Unaffiliated Securities (Cost $1,977,729,432) | | | | | | | 3,336,076,719 | |
| Other Assets in Excess of Liabilities | | | 0.3 | % | | | 9,171,367 | |
| NET ASSETS | | | 100.0 | % | | $ | 3,348,023,086 | |
| # | American Depositary Receipts. |
| (a) | Restricted security - Security restricted from resale until the public disclosure of the company’s financial results for the year ending December 31, 2020. |
| (b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| (c) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 10/31/2020 | |
| Altaba, Inc. | | | 10/24/18 | | | $ | 805,470 | | | | 0.03 | % | | $ | 1,011,203 | | | | 0.03 | % |
| Altaba, Inc. | | | 10/25/18 | | | | 1,188,343 | | | | 0.04 | % | | | 1,484,803 | | | | 0.04 | % |
| Altaba, Inc. | | | 10/29/18 | | | | 1,156,773 | | | | 0.04 | % | | | 1,505,042 | | | | 0.05 | % |
| Altaba, Inc. | | | 10/30/18 | | | | 751,641 | | | | 0.03 | % | | | 996,350 | | | | 0.03 | % |
| Altaba, Inc. | | | 10/31/18 | | | | 271,272 | | | | 0.01 | % | | | 342,306 | | | | 0.01 | % |
| Altaba, Inc. | | | 11/6/18 | | | | 321,297 | | | | 0.01 | % | | | 394,634 | | | | 0.01 | % |
| Crosslink Ventures Capital LLC | | | 10/2/20 | | | | 2,775,000 | | | | 0.08 | % | | | 2,775,000 | | | | 0.08 | % |
| Palantir Technologies, Inc., Cl. A | | | 10/1/20 | | | | 4,530,544 | | | | 0.13 | % | | | 5,958,331 | | | | 0.18 | % |
| Total | | | | | | | | | | | | | | $ | 14,467,669 | | | | 0.43 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER 25 FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—95.2% | | SHARES | | | VALUE | |
| APPLICATION SOFTWARE—10.5% | | | | | | | | |
| Adobe, Inc.* | | | 2,484 | | | $ | 1,110,597 | |
| RingCentral, Inc., Cl. A* | | | 1,227 | | | | 316,983 | |
| salesforce.com, Inc.* | | | 4,038 | | | | 937,907 | |
| | | | | | | | 2,365,487 | |
| CASINOS & GAMING—1.3% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 8,191 | | | | 289,961 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—9.3% | | | | | | | | |
| PayPal Holdings, Inc.* | | | 5,370 | | | | 999,518 | |
| Visa, Inc., Cl. A | | | 5,960 | | | | 1,082,992 | |
| | | | | | | | 2,082,510 | |
| DIVERSIFIED SUPPORT SERVICES—3.5% | | | | | | | | |
| Cintas Corp. | | | 2,493 | | | | 784,173 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—2.7% | | | | | | | | |
| S&P Global, Inc. | | | 1,906 | | | | 615,123 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—1.6% | | | | | | | | |
| DexCom, Inc.* | | | 1,108 | | | | 354,095 | |
| | | | | | | | | |
| INTERACTIVE MEDIA & SERVICES—10.2% | | | | | | | | |
| Alphabet, Inc., Cl. C* | | | 764 | | | | 1,238,452 | |
| Facebook, Inc., Cl. A* | | | 4,012 | | | | 1,055,597 | |
| | | | | | | | 2,294,049 | |
| INTERNET & DIRECT MARKETING RETAIL—16.0% | | | | | | | | |
| Alibaba Group Holding Ltd.#,* | | | 4,090 | | | | 1,246,182 | |
| Amazon.com, Inc.* | | | 768 | | | | 2,331,764 | |
| | | | | | | | 3,577,946 | |
| LEISURE FACILITIES—1.3% | | | | | | | | |
| Vail Resorts, Inc. | | | 1,302 | | | | 302,116 | |
| | | | | | | | | |
| MANAGED HEALTHCARE—2.6% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 1,896 | | | | 578,545 | |
| | | | | | | | | |
| RESTAURANTS—3.6% | | | | | | | | |
| Starbucks Corp. | | | 9,247 | | | | 804,119 | |
| | | | | | | | | |
| SEMICONDUCTOR EQUIPMENT—2.4% | | | | | | | | |
| Applied Materials, Inc. | | | 9,217 | | | | 545,923 | |
| | | | | | | | | |
| SEMICONDUCTORS—7.4% | | | | | | | | |
| NVIDIA Corp. | | | 1,712 | | | | 858,328 | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 9,433 | | | | 791,146 | |
| | | | | | | | 1,649,474 | |
| SPECIALTY CHEMICALS—3.2% | | | | | | | | |
| The Sherwin-Williams Co. | | | 1,045 | | | | 718,939 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—8.4% | | | | | | | | |
| Microsoft Corp. | | | 9,288 | | | | 1,880,541 | |
| | | | | | | | | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.3% | | | | | | | | |
| Apple, Inc. | | | 15,026 | | | | 1,635,730 | |
THE ALGER FUNDS | ALGER 25 FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—95.2% (CONT.) | | SHARES | | | VALUE | |
| WIRELESS TELECOMMUNICATION SERVICES—3.9% | | | | | | | | |
| T-Mobile US, Inc.* | | | 8,065 | | | $ | 883,682 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $14,963,653) | | | | | | | 21,362,413 | |
| REAL ESTATE INVESTMENT TRUST—3.2% | | SHARES | | | VALUE | |
| SPECIALIZED—3.2% | | | | | | | | |
| Crown Castle International Corp. | | | 4,560 | | | | 712,272 | |
| (Cost $632,455) | | | | | | | 712,272 | |
| Total Investments | | | | | | | | |
| (Cost $15,596,108) | | | 98.4 | % | | $ | 22,074,685 | |
| Unaffiliated Securities (Cost $15,596,108) | | | | | | | 22,074,685 | |
| Other Assets in Excess of Liabilities | | | 1.6 | % | | | 360,978 | |
| NET ASSETS | | | 100.0 | % | | $ | 22,435,663 | |
| * | Non-income producing security. |
| # | American Depositary Receipts. |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER 35 FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—94.5% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—2.3% | | | | | | | | |
| HEICO Corp. | | | 3,112 | | | $ | 326,916 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—2.9% | | | | | | | | |
| Adobe, Inc.* | | | 917 | | | | 409,991 | |
| | | | | | | | | |
| AUTOMOBILE MANUFACTURERS—1.8% | | | | | | | | |
| Tesla, Inc.* | | | 659 | | | | 255,718 | |
| | | | | | | | | |
| BIOTECHNOLOGY—0.9% | | | | | | | | |
| Moderna, Inc.* | | | 1,928 | | | | 130,082 | |
| | | | | | | | | |
| CASINOS & GAMING—0.8% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 3,173 | | | | 112,324 | |
| | | | | | | | | |
| CONSUMER FINANCE—0.5% | | | | | | | | |
| dMY Technology Group, Inc. II, Cl. A* | | | 7,386 | | | | 74,229 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—4.1% | | | | | | | | |
| PayPal Holdings, Inc.* | | | 1,805 | | | | 335,965 | |
| Square, Inc., Cl. A* | | | 1,625 | | | | 251,680 | |
| | | | | | | | 587,645 | |
| FOOD DISTRIBUTORS—2.9% | | | | | | | | |
| US Foods Holding Corp.* | | | 20,127 | | | | 420,654 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—7.6% | | | | | | | | |
| DexCom, Inc.* | | | 455 | | | | 145,409 | |
| Insulet Corp.* | | | 1,058 | | | | 235,141 | |
| Intuitive Surgical, Inc.* | | | 663 | | | | 442,273 | |
| Tandem Diabetes Care, Inc.* | | | 2,525 | | | | 275,225 | |
| | | | | | | | 1,098,048 | |
| HEALTHCARE SUPPLIES—2.2% | | | | | | | | |
| Quidel Corp.* | | | 1,189 | | | | 318,997 | |
| | | | | | | | | |
| HEALTHCARE TECHNOLOGY—4.3% | | | | | | | | |
| Teladoc Health, Inc.* | | | 1,402 | | | | 275,437 | |
| Veeva Systems, Inc., Cl. A* | | | 1,293 | | | | 349,175 | |
| | | | | | | | 624,612 | |
| INTERACTIVE MEDIA & SERVICES—11.6% | | | | | | | | |
| Alphabet, Inc., Cl. C* | | | 285 | | | | 461,988 | |
| Facebook, Inc., Cl. A* | | | 2,905 | | | | 764,334 | |
| Pinterest, Inc., Cl. A* | | | 7,404 | | | | 436,466 | |
| | | | | | | | 1,662,788 | |
| INTERNET & DIRECT MARKETING RETAIL—17.8% | | | | | | | | |
| Alibaba Group Holding Ltd.#,* | | | 1,501 | | | | 457,340 | |
| Amazon.com, Inc.* | | | 563 | | | | 1,709,353 | |
| MercadoLibre, Inc.* | | | 339 | | | | 411,563 | |
| | | | | | | | 2,578,256 | |
| INTERNET SERVICES & INFRASTRUCTURE—1.9% | | | | | | | | |
| Shopify, Inc., Cl. A* | | | 288 | | | | 266,524 | |
| | | | | | | | | |
| LEISURE FACILITIES—4.3% | | | | | | | | |
| Vail Resorts, Inc. | | | 2,644 | | | | 613,514 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—1.9% | | | | | | | | |
| Bio-Techne Corp. | | | 1,096 | | | | 276,641 | |
THE ALGER FUNDS | ALGER 35 FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—94.5% (CONT.) | | SHARES | | | VALUE | |
| MOVIES & ENTERTAINMENT—1.4% | | | | | | | | |
| Netflix, Inc.* | | | 416 | | | $ | 197,908 | |
| | | | | | | | | |
| REGIONAL BANKS—0.9% | | | | | | | | |
| SVB Financial Group* | | | 442 | | | | 128,489 | |
| | | | | | | | | |
| RESEARCH & CONSULTING SERVICES—2.0% | | | | | | | | |
| CoStar Group, Inc.* | | | 354 | | | | 291,558 | |
| | | | | | | | | |
| SEMICONDUCTORS—5.9% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 4,649 | | | | 350,023 | |
| QUALCOMM, Inc. | | | 2,052 | | | | 253,135 | |
| Universal Display Corp. | | | 1,208 | | | | 239,558 | |
| | | | | | | | 842,716 | |
| SYSTEMS SOFTWARE—8.8% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 1,470 | | | | 182,045 | |
| Microsoft Corp. | | | 4,052 | | | | 820,408 | |
| ServiceNow, Inc.* | | | 519 | | | | 258,239 | |
| | | | | | | | 1,260,692 | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.7% | | | | | | | | |
| Apple, Inc. | | | 10,232 | | | | 1,113,856 | |
| | | | | | | | | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $10,077,818) | | | | | | | 13,592,158 | |
| Total Investments | | | | | | | | |
| (Cost $10,077,818) | | | 94.5 | % | | $ | 13,592,158 | |
| Unaffiliated Securities (Cost $10,077,818) | | | | | | | 13,592,158 | |
| Other Assets in Excess of Liabilities | | | 5.5 | % | | | 786,628 | |
| NET ASSETS | | | 100.0 | % | | $ | 14,378,786 | |
| * | Non-income producing security. |
| # | American Depositary Receipts. |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—94.0% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.6% | | | | | | | | |
| General Dynamics Corp. | | | 4,078 | | | $ | 535,564 | |
| Raytheon Technologies Corp. | | | 8,937 | | | | 485,458 | |
| TransDigm Group, Inc. | | | 1,455 | | | | 694,631 | |
| | | | | | | | 1,715,653 | |
| ASSET MANAGEMENT & CUSTODY BANKS—3.7% | | | | | | | | |
| BlackRock, Inc., Cl. A | | | 3,851 | | | | 2,307,557 | |
| The Blackstone Group, Inc., Cl. A | | | 21,938 | | | | 1,106,114 | |
| The Carlyle Group, Inc. | | | 22,818 | | | | 568,625 | |
| | | | | | | | 3,982,296 | |
| BIOTECHNOLOGY—2.3% | | | | | | | | |
| AbbVie, Inc. | | | 13,491 | | | | 1,148,085 | |
| Amgen, Inc. | | | 3,959 | | | | 858,865 | |
| Gilead Sciences, Inc. | | | 9,368 | | | | 544,749 | |
| | | | | | | | 2,551,699 | |
| BROADCASTING—0.3% | | | | | | | | |
| ViacomCBS, Inc., Cl. B | | | 12,912 | | | | 368,896 | |
| | | | | | | | | |
| BUILDING PRODUCTS—0.5% | | | | | | | | |
| Johnson Controls International PLC | | | 13,534 | | | | 571,270 | |
| | | | | | | | | |
| CABLE & SATELLITE—1.4% | | | | | | | | |
| Comcast Corp., Cl. A | | | 36,605 | | | | 1,546,195 | |
| | | | | | | | | |
| COMMODITY CHEMICALS—0.3% | | | | | | | | |
| Dow, Inc. | | | 8,245 | | | | 375,065 | |
| | | | | | | | | |
| COMMUNICATIONS EQUIPMENT—1.1% | | | | | | | | |
| Cisco Systems, Inc. | | | 32,297 | | | | 1,159,462 | |
| | | | | | | | | |
| COMPUTER & ELECTRONICS RETAIL—0.5% | | | | | | | | |
| Best Buy Co., Inc. | | | 5,340 | | | | 595,677 | |
| | | | | | | | | |
| CONSTRUCTION MACHINERY & HEAVY TRUCKS—0.2% | | | | | | | | |
| PACCAR, Inc. | | | 3,193 | | | | 272,618 | |
| | | | | | | | | |
| CONSUMER ELECTRONICS—0.6% | | | | | | | | |
| Garmin Ltd. | | | 6,386 | | | | 664,272 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—0.7% | | | | | | | | |
| Visa, Inc., Cl. A | | | 4,185 | | | | 760,456 | |
| | | | | | | | | |
| DIVERSIFIED BANKS—4.6% | | | | | | | | |
| Bank of America Corp. | | | 51,526 | | | | 1,221,166 | |
| JPMorgan Chase & Co. | | | 38,992 | | | | 3,822,776 | |
| | | | | | | | 5,043,942 | |
| ELECTRIC UTILITIES—0.9% | | | | | | | | |
| NextEra Energy, Inc. | | | 13,080 | | | | 957,587 | |
| | | | | | | | | |
| ELECTRICAL COMPONENTS & EQUIPMENT—0.9% | | | | | | | | |
| Eaton Corp. PLC | | | 9,174 | | | | 952,169 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—1.0% | | | | | | | | |
| CME Group, Inc., Cl. A | | | 7,229 | | | | 1,089,555 | |
| | | | | | | | | |
| FOOD DISTRIBUTORS—0.5% | | | | | | | | |
| Sysco Corp. | | | 10,761 | | | | 595,191 | |
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—94.0% (CONT.) | | SHARES | | | VALUE | |
| GOLD—0.3% | | | | | | | | |
| Newmont Corp. | | | 4,573 | | | $ | 287,367 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—0.7% | | | | | | | | |
| Medtronic PLC | | | 7,677 | | | | 772,076 | |
| | | | | | | | | |
| HEALTHCARE SERVICES—1.0% | | | | | | | | |
| CVS Health Corp. | | | 19,361 | | | | 1,085,958 | |
| | | | | | | | | |
| HOME IMPROVEMENT RETAIL—3.6% | | | | | | | | |
| The Home Depot, Inc. | | | 14,637 | | | | 3,903,834 | |
| | | | | | | | | |
| HOUSEHOLD PRODUCTS—2.1% | | | | | | | | |
| The Procter & Gamble Co. | | | 16,512 | | | | 2,263,795 | |
| | | | | | | | | |
| HYPERMARKETS & SUPER CENTERS—1.1% | | | | | | | | |
| Walmart, Inc. | | | 8,590 | | | | 1,191,863 | |
| | | | | | | | | |
| INDUSTRIAL CONGLOMERATES—2.1% | | | | | | | | |
| Honeywell International, Inc. | | | 14,038 | | | | 2,315,568 | |
| | | | | | | | | |
| INDUSTRIAL GASES—1.5% | | | | | | | | |
| Air Products & Chemicals, Inc. | | | 5,816 | | | | 1,606,612 | |
| | | | | | | | | |
| INTEGRATED OIL & GAS—1.5% | | | | | | | | |
| Chevron Corp. | | | 15,195 | | | | 1,056,052 | |
| TOTAL SE# | | | 18,551 | | | | 562,652 | |
| | | | | | | | 1,618,704 | |
| INTEGRATED TELECOMMUNICATION SERVICES—2.7% | | | | | | | | |
| AT&T, Inc. | | | 31,054 | | | | 839,079 | |
| Verizon Communications, Inc. | | | 37,786 | | | | 2,153,424 | |
| | | | | | | | 2,992,503 | |
| INTERACTIVE MEDIA & SERVICES—8.4% | | | | | | | | |
| Alphabet, Inc., Cl. A* | | | 2,002 | | | | 3,235,453 | |
| Alphabet, Inc., Cl. C* | | | 1,941 | | | | 3,146,380 | |
| Facebook, Inc., Cl. A* | | | 10,523 | | | | 2,768,707 | |
| | | | | | | | 9,150,540 | |
| INTERNET & DIRECT MARKETING RETAIL—2.7% | | | | | | | | |
| Amazon.com, Inc.* | | | 981 | | | | 2,978,463 | |
| | | | | | | | | |
| INVESTMENT BANKING & BROKERAGE—2.0% | | | | | | | | |
| Morgan Stanley | | | 45,840 | | | | 2,207,196 | |
| | | | | | | | | |
| LEISURE FACILITIES—0.7% | | | | | | | | |
| Vail Resorts, Inc. | | | 3,192 | | | | 740,672 | |
| | | | | | | | | |
| MANAGED HEALTHCARE—2.2% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 8,036 | | | | 2,452,105 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—0.2% | | | | | | | | |
| Warner Music Group Corp., Cl. A | | | 9,306 | | | | 246,888 | |
| | | | | | | | | |
| MULTI-LINE INSURANCE—0.4% | | | | | | | | |
| The Hartford Financial Services Group, Inc. | | | 9,936 | | | | 382,735 | |
| MULTI-UTILITIES—0.6% | | | | | | | | |
| Sempra Energy | | | 5,217 | | | | 654,003 | |
| | | | | | | | | |
| OIL & GAS STORAGE & TRANSPORTATION—0.3% | | | | | | | | |
| ONEOK, Inc. | | | 10,099 | | | | 292,871 | |
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—94.0% (CONT.) | | SHARES | | | VALUE | |
| PHARMACEUTICALS—7.6% | | | | | | | | |
| AstraZeneca PLC# | | | 19,380 | | | $ | 972,101 | |
| Bristol-Myers Squibb Co. | | | 13,462 | | | | 786,854 | |
| Eli Lilly & Co. | | | 6,696 | | | | 873,560 | |
| GlaxoSmithKline PLC# | | | 19,014 | | | | 635,448 | |
| Johnson & Johnson | | | 16,211 | | | | 2,222,691 | |
| Merck & Co., Inc. | | | 10,553 | | | | 793,691 | |
| Novartis AG# | | | 8,155 | | | | 636,742 | |
| Pfizer, Inc. | | | 38,801 | | | | 1,376,659 | |
| | | | | | | | 8,297,746 | |
| RAILROADS—0.8% | | | | | | | | |
| Union Pacific Corp. | | | 4,822 | | | | 854,410 | |
| RESTAURANTS—1.3% | | | | | | | | |
| McDonald’s Corp. | | | 4,437 | | | | 945,081 | |
| Starbucks Corp. | | | 5,237 | | | | 455,410 | |
| | | | | | | | 1,400,491 | |
| SEMICONDUCTOR EQUIPMENT—1.7% | | | | | | | | |
| KLA Corp. | | | 9,338 | | | | 1,841,267 | |
| | | | | | | | | |
| SEMICONDUCTORS—4.1% | | | | | | | | |
| Broadcom, Inc. | | | 5,840 | | | | 2,041,839 | |
| QUALCOMM, Inc. | | | 12,840 | | | | 1,583,942 | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 10,109 | | | | 847,842 | |
| | | | | | | | 4,473,623 | |
| SOFT DRINKS—3.0% | | | | | | | | |
| PepsiCo, Inc. | | | 13,527 | | | | 1,803,013 | |
| The Coca-Cola Co. | | | 30,625 | | | | 1,471,838 | |
| | | | | | | | 3,274,851 | |
| SYSTEMS SOFTWARE—10.4% | | | | | | | | |
| Microsoft Corp. | | | 55,492 | | | | 11,235,466 | |
| | | | | | | | | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—8.6% | | | | | | | | |
| Apple, Inc. | | | 86,412 | | | | 9,406,811 | |
| | | | | | | | | |
| TOBACCO—1.3% | | | | | | | | |
| Altria Group, Inc. | | | 26,806 | | | | 967,160 | |
| Philip Morris International, Inc. | | | 6,888 | | | | 489,186 | |
| | | | | | | | 1,456,346 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $47,480,990) | | | | | | | 102,586,767 | |
| | | | | | | | | |
| MASTER LIMITED PARTNERSHIP—0.6% | | | SHARES | | | | VALUE | |
| OIL & GAS STORAGE & TRANSPORTATION—0.6% | | | | | | | | |
| Cheniere Energy Partners LP | | | 17,250 | | | | 621,863 | |
| (Cost $584,260) | | | | | | | 621,863 | |
| | | | | | | | | |
| REAL ESTATE INVESTMENT TRUST—4.8% | | | SHARES | | | | VALUE | |
| HEALTHCARE—0.6% | | | | | | | | |
| Welltower, Inc. | | | 12,873 | | | | 692,181 | |
| | | | | | | | | |
| INDUSTRIAL—0.6% | | | | | | | | |
| Americold Realty Trust | | | 19,006 | | | | 688,587 | |
THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments October 31, 2020 (Continued)
| REAL ESTATE INVESTMENT TRUST—4.8% (CONT.) | | SHARES | | | VALUE | |
| MORTGAGE—0.7% | | | | | | | | |
| Blackstone Mortgage Trust, Inc., Cl. A | | | 33,724 | | | $ | 731,811 | |
| | | | | | | | | |
| SPECIALIZED—2.9% | | | | | | | | |
| Crown Castle International Corp. | | | 11,141 | | | | 1,740,224 | |
| CyrusOne, Inc. | | | 9,552 | | | | 678,670 | |
| Lamar Advertising Co., Cl. A | | | 10,535 | | | | 652,749 | |
| | | | | | | | 3,071,643 | |
| TOTAL REAL ESTATE INVESTMENT TRUST | | | | | | | | |
| (Cost $4,120,447) | | | | | | | 5,184,222 | |
| Total Investments | | | | | | | | |
| (Cost $52,185,697) | | | 99.4 | % | | $ | 108,392,852 | |
| Unaffiliated Securities (Cost $52,185,697) | | | | | | | 108,392,852 | |
| Other Assets in Excess of Liabilities | | | 0.6 | % | | | 657,322 | |
| NET ASSETS | | | 100.0 | % | | $ | 109,050,174 | |
| # | American Depositary Receipts. |
| * | Non-income producing security. |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—95.0% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—2.3% | | | | | | | | |
| HEICO Corp. | | | 12,707 | | | $ | 1,334,870 | |
| Mercury Systems, Inc.* | | | 23,161 | | | | 1,595,330 | |
| Teledyne Technologies, Inc.* | | | 3,806 | | | | 1,176,625 | |
| TransDigm Group, Inc. | | | 2,844 | | | | 1,357,754 | |
| | | | | | | | 5,464,579 | |
| ALTERNATIVE CARRIERS—0.4% | | | | | | | | |
| Bandwidth, Inc., Cl. A* | | | 6,035 | | | | 967,742 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.4% | | | | | | | | |
| Lululemon Athletica, Inc.* | | | 12,374 | | | | 3,950,894 | |
| Moncler SpA | | | 43,837 | | | | 1,754,069 | |
| | | | | | | | 5,704,963 | |
| APPAREL RETAIL—0.5% | | | | | | | | |
| Burlington Stores, Inc.* | | | 6,305 | | | | 1,220,522 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—14.6% | | | | | | | | |
| ANSYS, Inc.* | | | 11,124 | | | | 3,385,812 | |
| Atlassian Corp., PLC, Cl. A* | | | 11,954 | | | | 2,290,625 | |
| Avalara, Inc.* | | | 8,096 | | | | 1,206,709 | |
| Benefitfocus, Inc.* | | | 114,350 | | | | 1,174,375 | |
| Bill.com Holdings, Inc.* | | | 19,330 | | | | 1,933,000 | |
| Cadence Design Systems, Inc.* | | | 33,940 | | | | 3,712,018 | |
| Coupa Software, Inc.* | | | 7,691 | | | | 2,058,881 | |
| DocuSign, Inc., Cl. A* | | | 20,389 | | | | 4,123,675 | |
| Dynatrace, Inc.* | | | 48,897 | | | | 1,726,553 | |
| Fair Isaac Corp.* | | | 6,464 | | | | 2,530,333 | |
| Five9, Inc.* | | | 15,725 | | | | 2,385,797 | |
| Palantir Technologies, Inc., Cl. A*,@,(a) | | | 73,492 | | | | 636,573 | |
| Paycom Software, Inc.* | | | 6,497 | | | | 2,365,493 | |
| PTC, Inc.* | | | 12,375 | | | | 1,038,015 | |
| Vertex, Inc., Cl. A* | | | 64,400 | | | | 1,561,056 | |
| Zoom Video Communications, Inc., Cl. A* | | | 4,811 | | | | 2,217,438 | |
| | | | | | | | 34,346,353 | |
| BIOTECHNOLOGY—6.0% | | | | | | | | |
| BioMarin Pharmaceutical, Inc.* | | | 12,152 | | | | 904,473 | |
| BioNTech SE#,* | | | 9,389 | | | | 801,445 | |
| Constellation Pharmaceuticals, Inc.* | | | 37,029 | | | | 726,509 | |
| Exact Sciences Corp.* | | | 9,353 | | | | 1,158,182 | |
| Forte Biosciences, Inc.* | | | 81,733 | | | | 3,118,932 | |
| Genmab AS#,* | | | 39,455 | | | | 1,328,055 | |
| Moderna, Inc.* | | | 17,578 | | | | 1,185,988 | |
| Natera, Inc.* | | | 33,178 | | | | 2,231,553 | |
| Sarepta Therapeutics, Inc.* | | | 6,322 | | | | 859,223 | |
| Seagen, Inc.* | | | 6,245 | | | | 1,041,666 | |
| Twist Bioscience Corp.* | | | 10,021 | | | | 768,009 | |
| | | | | | | | 14,124,035 | |
| CASINOS & GAMING—1.8% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 57,059 | | | | 2,019,889 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—95.0% (CONT.) | | SHARES | | | VALUE | |
| CASINOS & GAMING—1.8% (CONT.) | | | | | | | | |
| Penn National Gaming, Inc.* | | | 40,163 | | | $ | 2,167,998 | |
| | | | | | | | 4,187,887 | |
| CONSUMER FINANCE—0.5% | | | | | | | | |
| dMY Technology Group, Inc. II, Cl. A* | | | 120,088 | | | | 1,206,884 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—0.8% | | | | | | | | |
| Square, Inc., Cl. A* | | | 11,381 | | | | 1,762,689 | |
| | | | | | | | | |
| DISTRIBUTORS—1.3% | | | | | | | | |
| Pool Corp. | | | 8,688 | | | | 3,039,323 | |
| | | | | | | | | |
| DIVERSIFIED SUPPORT SERVICES—3.5% | | | | | | | | |
| Cintas Corp. | | | 11,076 | | | | 3,483,956 | |
| Copart, Inc.* | | | 43,930 | | | | 4,848,115 | |
| | | | | | | | 8,332,071 | |
| EDUCATION SERVICES—0.9% | | | | | | | | |
| Chegg, Inc.* | | | 28,671 | | | | 2,105,598 | |
| | | | | | | | | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.6% | | | | | | | | |
| AMETEK, Inc. | | | 11,745 | | | | 1,153,359 | |
| Generac Holdings, Inc.* | | | 12,142 | | | | 2,551,641 | |
| | | | | | | | 3,705,000 | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.4% | | | | | | | | |
| Keysight Technologies, Inc.* | | | 11,804 | | | | 1,237,885 | |
| Trimble, Inc.* | | | 42,648 | | | | 2,052,649 | |
| | | | | | | | 3,290,534 | |
| FINANCIAL EXCHANGES & DATA—1.0% | | | | | | | | |
| MarketAxess Holdings, Inc. | | | 4,319 | | | | 2,327,293 | |
| | | | | | | | | |
| FOOD DISTRIBUTORS—1.9% | | | | | | | | |
| US Foods Holding Corp.* | | | 212,428 | | | | 4,439,745 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—5.3% | | | | | | | | |
| ABIOMED, Inc.* | | | 5,078 | | | | 1,279,047 | |
| DexCom, Inc.* | | | 11,092 | | | | 3,544,781 | |
| Insulet Corp.* | | | 10,653 | | | | 2,367,629 | |
| Masimo Corp.* | | | 8,917 | | | | 1,995,803 | |
| Nevro Corp.* | | | 7,914 | | | | 1,180,848 | |
| Tandem Diabetes Care, Inc.* | | | 18,385 | | | | 2,003,965 | |
| | | | | | | | 12,372,073 | |
| HEALTHCARE SERVICES—1.3% | | | | | | | | |
| Guardant Health, Inc.* | | | 28,440 | | | | 3,033,410 | |
| | | | | | | | | |
| HEALTHCARE SUPPLIES—4.8% | | | | | | | | |
| Align Technology, Inc.* | | | 9,510 | | | | 4,052,021 | |
| Quidel Corp.* | | | 22,825 | | | | 6,123,719 | |
| Silk Road Medical, Inc.* | | | 20,070 | | | | 1,216,242 | |
| | | | | | | | 11,391,982 | |
| HEALTHCARE TECHNOLOGY—3.1% | | | | | | | | |
| Livongo Health, Inc.* | | | 11,218 | | | | 1,431,753 | |
| Teladoc Health, Inc.* | | | 5,347 | | | | 1,050,472 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—95.0% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE TECHNOLOGY—3.1% (CONT.) | | | | | | | | |
| Veeva Systems, Inc., Cl. A* | | | 17,623 | | | $ | 4,759,091 | |
| | | | | | | | 7,241,316 | |
| HOMEFURNISHING RETAIL—0.6% | | | | | | | | |
| Williams-Sonoma, Inc. | | | 14,538 | | | | 1,326,011 | |
| | | | | | | | | |
| HOTELS RESORTS & CRUISE LINES—0.2% | | | | | | | | |
| Extended Stay America, Inc. | | | 51,824 | | | | 588,202 | |
| | | | | | | | | |
| INDUSTRIAL MACHINERY—1.4% | | | | | | | | |
| Lincoln Electric Holdings, Inc. | | | 12,355 | | | | 1,257,986 | |
| The Middleby Corp.* | | | 11,452 | | | | 1,139,932 | |
| Woodward, Inc. | | | 10,845 | | | | 862,720 | |
| | | | | | | | 3,260,638 | |
| INTERACTIVE HOME ENTERTAINMENT—1.2% | | | | | | | | |
| Activision Blizzard, Inc. | | | 22,522 | | | | 1,705,591 | |
| Take-Two Interactive Software, Inc.* | | | 7,502 | | | | 1,162,210 | |
| | | | | | | | 2,867,801 | |
| INTERACTIVE MEDIA & SERVICES—2.7% | | | | | | | | |
| Pinterest, Inc., Cl. A* | | | 106,270 | | | | 6,264,617 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—5.0% | | | | | | | | |
| Booking Holdings, Inc.* | | | 1,063 | | | | 1,724,718 | |
| Etsy, Inc.* | | | 11,485 | | | | 1,396,461 | |
| Farfetch Ltd., Cl. A* | | | 68,180 | | | | 1,917,903 | |
| Fiverr International Ltd.* | | | 16,063 | | | | 2,351,944 | |
| MercadoLibre, Inc.* | | | 2,277 | | | | 2,764,392 | |
| Stamps.com, Inc.* | | | 7,486 | | | | 1,671,175 | |
| | | | | | | | 11,826,593 | |
| INTERNET SERVICES & INFRASTRUCTURE—2.4% | | | | | | | | |
| Akamai Technologies, Inc.* | | | 11,324 | | | | 1,077,139 | |
| Shopify, Inc., Cl. A* | | | 1,141 | | | | 1,055,916 | |
| Twilio, Inc., Cl. A* | | | 6,565 | | | | 1,831,437 | |
| VeriSign, Inc.* | | | 9,008 | | | | 1,717,826 | |
| | | | | | | | 5,682,318 | |
| LEISURE FACILITIES—2.0% | | | | | | | | |
| Vail Resorts, Inc. | | | 20,088 | | | | 4,661,220 | |
| | | | | | | | | |
| LEISURE PRODUCTS—0.6% | | | | | | | | |
| Peloton Interactive, Inc., Cl. A* | | | 13,588 | | | | 1,497,533 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—3.6% | | | | | | | | |
| Bio-Techne Corp. | | | 15,560 | | | | 3,927,500 | |
| Lonza Group AG | | | 3,383 | | | | 2,049,794 | |
| Repligen Corp.* | | | 14,734 | | | | 2,454,242 | |
| | | | | | | | 8,431,536 | |
| METAL & GLASS CONTAINERS—0.7% | | | | | | | | |
| Ball Corp. | | | 18,872 | | | | 1,679,608 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—1.7% | | | | | | | | |
| Roku, Inc., Cl. A* | | | 19,789 | | | | 4,005,294 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—95.0% (CONT.) | | SHARES | | | VALUE | |
| PHARMACEUTICALS—0.6% | | | | | | | | |
| Horizon Therapeutics PLC* | | | 18,442 | | | $ | 1,381,859 | |
| | | | | | | | | |
| REAL ESTATE SERVICES—0.6% | | | | | | | | |
| FirstService Corp. | | | 11,376 | | | | 1,526,204 | |
| | | | | | | | | |
| REGIONAL BANKS—0.8% | | | | | | | | |
| SVB Financial Group* | | | 6,677 | | | | 1,941,004 | |
| | | | | | | | | |
| RESEARCH & CONSULTING SERVICES—2.8% | | | | | | | | |
| CoStar Group, Inc.* | | | 4,018 | | | | 3,309,265 | |
| Verisk Analytics, Inc., Cl. A | | | 17,861 | | | | 3,178,722 | |
| | | | | | | | 6,487,987 | |
| RESTAURANTS—2.1% | | | | | | | | |
| Chipotle Mexican Grill, Inc., Cl. A* | | | 2,895 | | | | 3,478,285 | |
| Shake Shack, Inc., Cl. A* | | | 23,049 | | | | 1,556,268 | |
| | | | | | | | 5,034,553 | |
| SEMICONDUCTOR EQUIPMENT—2.6% | | | | | | | | |
| Lam Research Corp. | | | 9,083 | | | | 3,107,112 | |
| SolarEdge Technologies, Inc.* | | | 11,875 | | | | 3,060,069 | |
| | | | | | | | 6,167,181 | |
| SEMICONDUCTORS—5.3% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 77,733 | | | | 5,852,519 | |
| Inphi Corp.* | | | 12,528 | | | | 1,750,913 | |
| Microchip Technology, Inc. | | | 11,274 | | | | 1,184,672 | |
| Universal Display Corp. | | | 18,629 | | | | 3,694,317 | |
| | | | | | | | 12,482,421 | |
| SYSTEMS SOFTWARE—1.8% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 22,061 | | | | 2,732,034 | |
| Palo Alto Networks, Inc.* | | | 7,004 | | | | 1,549,215 | |
| | | | | | | | 4,281,249 | |
| TRUCKING—0.9% | | | | | | | | |
| Old Dominion Freight Line, Inc. | | | 10,925 | | | | 2,079,792 | |
| | | | | | | | | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $166,211,654) | | | | | | | 223,737,620 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(b),(c) | | | 219,610 | | | | 32,942 | |
| (Cost $988,245) | | | | | | | 32,942 | |
| WARRANTS—2.3% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—2.3% | | | | | | | | |
| Forte Biosciences, Inc., 2/20/21*,@ | | | 193,270 | | | | 5,333,479 | |
| (Cost $0) | | | | | | | 5,333,479 | |
| RIGHTS—0.2% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.2% | | | | | | | | |
| Tolero CDR*,@,(b),(d) | | | 590,059 | | | | 407,141 | |
| (Cost $315,501) | | | | | | | 407,141 | |
THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| REAL ESTATE INVESTMENT TRUST—1.7% | | SHARES | | | VALUE | |
| INDUSTRIAL—0.6% | | | | | | | | |
| Rexford Industrial Realty, Inc. | | | 28,102 | | | $ | 1,305,619 | |
| | | | | | | | | |
| SPECIALIZED—1.1% | | | | | | | | |
| Crown Castle International Corp. | | | 17,797 | | | | 2,779,891 | |
| TOTAL REAL ESTATE INVESTMENT TRUST | | | | | | | | |
| (Cost $3,548,823) | | | | | | | 4,085,510 | |
| SPECIAL PURPOSE VEHICLE—0.5% | | SHARES | | | VALUE | |
| DATA PROCESSING & OUTSOURCED SERVICES —0.5% | | | | | | | | |
| Crosslink Ventures Capital LLC*,@,(b),(c) | | | 48 | | | | 1,200,000 | |
| (Cost $1,200,000) | | | | | | | 1,200,000 | |
| Total Investments | | | | | | | | |
| (Cost $172,264,223) | | | 99.7 | % | | $ | 234,796,692 | |
| Affiliated Securities (Cost $2,188,245) | | | | | | | 1,232,942 | |
| Unaffiliated Securities (Cost $170,075,978) | | | | | | | 233,563,750 | |
| Other Assets in Excess of Liabilities | | | 0.3 | % | | | 660,682 | |
| NET ASSETS | | | 100.0 | % | | $ | 235,457,374 | |
| # | American Depositary Receipts. |
| (a) | Restricted security - Security restricted from resale until the public disclosure of the company’s financial results for the year ending December 31, 2020. |
| (b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| (c) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (d) | Contingent Deferred Rights. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 10/31/2020 | |
| Crosslink Ventures Capital LLC | | | 10/2/20 | | | $ | 1,200,000 | | | | 0.50 | % | | $ | 1,200,000 | | | | 0.51 | % |
| Forte Biosciences, Inc., Warrant | | | 2/19/20 | | | | 0 | | | | 0.00 | % | | | 5,333,479 | | | | 2.27 | % |
| Palantir Technologies, Inc., Cl. A | | | 10/1/20 | | | | 483,715 | | | | 0.20 | % | | | 636,573 | | | | 0.27 | % |
| Prosetta Biosciences, Inc., Series D | | | 2/6/15 | | | | 988,245 | | | | 0.50 | % | | | 32,942 | | | | 0.01 | % |
| Tolero CDR | | | 2/6/17 | | | | 315,501 | | | | 0.19 | % | | | 407,141 | | | | 0.17 | % |
| Total | | | | | | | | | | | | | | $ | 7,610,135 | | | | 3.23 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER MID CAP FOCUS FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—96.1% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.5% | | | | | | | | |
| HEICO Corp., Cl. A | | | 58,869 | | | $ | 5,504,252 | |
| | | | | | | | | |
| AIR FREIGHT & LOGISTICS—2.5% | | | | | | | | |
| XPO Logistics, Inc.* | | | 104,183 | | | | 9,376,470 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.1% | | | | | | | | |
| Lululemon Athletica, Inc.* | | | 24,719 | | | | 7,892,530 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—12.8% | | | | | | | | |
| Bill.com Holdings, Inc.* | | | 51,741 | | | | 5,174,100 | |
| DocuSign, Inc., Cl. A* | | | 34,984 | | | | 7,075,514 | |
| Dynatrace, Inc.* | | | 209,789 | | | | 7,407,649 | |
| Manhattan Associates, Inc.* | | | 90,703 | | | | 7,755,106 | |
| RingCentral, Inc., Cl. A* | | | 25,755 | | | | 6,653,547 | |
| Vertex, Inc., Cl. A* | | | 253,298 | | | | 6,139,944 | |
| Zoom Video Communications, Inc., Cl. A* | | | 17,692 | | | | 8,154,419 | |
| | | | | | | | 48,360,279 | |
| AUTOMOBILE MANUFACTURERS—1.3% | | | | | | | | |
| Tesla, Inc.* | | | 12,977 | | | | 5,035,595 | |
| | | | | | | | | |
| BIOTECHNOLOGY—4.2% | | | | | | | | |
| Exact Sciences Corp.* | | | 52,791 | | | | 6,537,110 | |
| Invitae Corp.* | | | 235,494 | | | | 9,233,719 | |
| | | | | | | | 15,770,829 | |
| CASINOS & GAMING—4.3% | | | | | | | | |
| DraftKings, Inc. Cl. A* | | | 202,917 | | | | 7,183,262 | |
| Penn National Gaming, Inc.* | | | 166,227 | | | | 8,972,933 | |
| | | | | | | | 16,156,195 | |
| DATA PROCESSING & OUTSOURCED SERVICES—1.7% | | | | | | | | |
| Square, Inc., Cl. A* | | | 40,969 | | | | 6,345,279 | |
| | | | | | | | | |
| DISTRIBUTORS—2.4% | | | | | | | | |
| Pool Corp. | | | 26,051 | | | | 9,113,421 | |
| | | | | | | | | |
| DIVERSIFIED SUPPORT SERVICES—1.8% | | | | | | | | |
| Copart, Inc.* | | | 60,603 | | | | 6,688,147 | |
| | | | | | | | | |
| ELECTRICAL COMPONENTS & EQUIPMENT—2.7% | | | | | | | | |
| Generac Holdings, Inc.* | | | 47,330 | | | | 9,946,400 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—2.3% | | | | | | | | |
| MarketAxess Holdings, Inc. | | | 15,892 | | | | 8,563,404 | |
| | | | | | | | | |
| GENERAL MERCHANDISE STORES—1.3% | | | | | | | | |
| Ollie’s Bargain Outlet Holdings, Inc.* | | | 58,085 | | | | 5,058,623 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—3.8% | | | | | | | | |
| Cantel Medical Corp. | | | 158,397 | | | | 7,577,712 | |
| DexCom, Inc.* | | | 21,231 | | | | 6,785,003 | |
| | | | | | | | 14,362,715 | |
| HEALTHCARE SERVICES—1.2% | | | | | | | | |
| 1Life Healthcare, Inc.* | | | 164,695 | | | | 4,646,046 | |
| | | | | | | | | |
| HEALTHCARE SUPPLIES—5.5% | | | | | | | | |
| Quidel Corp.* | | | 55,152 | | | | 14,796,729 | |
THE ALGER FUNDS | ALGER MID CAP FOCUS FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—96.1% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE SUPPLIES—5.5% (CONT.) | | | | | | | | |
| Silk Road Medical, Inc.* | | | 94,535 | | | $ | 5,728,821 | |
| | | | | | | | 20,525,550 | |
| HEALTHCARE TECHNOLOGY—3.0% | | | | | | | | |
| Teladoc Health, Inc.* | | | 22,662 | | | | 4,452,177 | |
| Veeva Systems, Inc., Cl. A* | | | 24,577 | | | | 6,637,018 | |
| | | | | | | | 11,089,195 | |
| HOMEFURNISHING RETAIL—1.7% | | | | | | | | |
| RH* | | | 19,042 | | | | 6,383,450 | |
| | | | | | | | | |
| INDUSTRIAL MACHINERY—2.0% | | | | | | | | |
| The Middleby Corp.* | | | 75,392 | | | | 7,504,520 | |
| | | | | | | | | |
| INTERACTIVE MEDIA & SERVICES—3.3% | | | | | | | | |
| Pinterest, Inc., Cl. A* | | | 213,166 | | | | 12,566,136 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—11.5% | | | | | | | | |
| Chewy, Inc., Cl. A* | | | 102,655 | | | | 6,323,548 | |
| Etsy, Inc.* | | | 43,280 | | | | 5,262,415 | |
| Farfetch Ltd., Cl. A* | | | 168,038 | | | | 4,726,909 | |
| Fiverr International Ltd.* | | | 56,462 | | | | 8,267,166 | |
| MercadoLibre, Inc.* | | | 9,173 | | | | 11,136,480 | |
| Stamps.com, Inc.* | | | 33,158 | | | | 7,402,192 | |
| | | | | | | | 43,118,710 | |
| INTERNET SERVICES & INFRASTRUCTURE—1.2% | | | | | | | | |
| Shopify, Inc., Cl. A* | | | 4,713 | | | | 4,361,552 | |
| | | | | | | | | |
| LEISURE FACILITIES—1.3% | | | | | | | | |
| Vail Resorts, Inc. | | | 21,627 | | | | 5,018,329 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—1.8% | | | | | | | | |
| Bio-Techne Corp. | | | 26,626 | | | | 6,720,669 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—3.0% | | | | | | | | |
| Roku, Inc., Cl. A* | | | 55,449 | | | | 11,222,878 | |
| | | | | | | | | |
| PHARMACEUTICALS—1.2% | | | | | | | | |
| Zoetis, Inc., Cl. A | | | 28,680 | | | | 4,547,214 | |
| | | | | | | | | |
| REAL ESTATE SERVICES—1.3% | | | | | | | | |
| Redfin Corp.* | | | 113,236 | | | | 4,729,868 | |
| | | | | | | | | |
| RESTAURANTS—1.5% | | | | | | | | |
| Chipotle Mexican Grill, Inc., Cl. A* | | | 4,589 | | | | 5,513,592 | |
| | | | | | | | | |
| SEMICONDUCTOR EQUIPMENT—2.0% | | | | | | | | |
| Enphase Energy, Inc.* | | | 77,181 | | | | 7,570,684 | |
| | | | | | | | | |
| SEMICONDUCTORS—3.1% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 43,653 | | | | 3,286,634 | |
| Universal Display Corp. | | | 41,917 | | | | 8,312,561 | |
| | | | | | | | 11,599,195 | |
| SYSTEMS SOFTWARE—4.9% | | | | | | | | |
| Cloudflare, Inc., Cl. A* | | | 209,319 | | | | 10,878,308 | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 60,519 | | | | 7,494,673 | |
| | | | | | | | 18,372,981 | |
THE ALGER FUNDS | ALGER MID CAP FOCUS FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—96.1% (CONT.) | | SHARES | | | VALUE | |
| TRADING COMPANIES & DISTRIBUTORS—1.9% | | | | | | | | |
| SiteOne Landscape Supply, Inc.* | | | 59,822 | | | $ | 7,148,131 | |
TOTAL COMMON STOCKS
(Cost $311,932,191) | | | | | | | 360,812,839 | |
Total Investments
(Cost $311,932,191) | | | 96.1 | % | | $ | 360,812,839 | |
| Unaffiliated Securities (Cost $311,932,191) | | | | | | | 360,812,839 | |
| Other Assets in Excess of Liabilities | | | 3.9 | % | | | 14,514,739 | |
| NET ASSETS | | | 100.0 | % | | $ | 375,327,578 | |
| * | Non-income producing security. |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—92.2% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.4% | | | | | | | | |
| Kratos Defense & Security Solutions, Inc.* | | | 690,304 | | | $ | 13,039,843 | |
| | | | | | | | | |
| AIR FREIGHT & LOGISTICS—1.3% | | | | | | | | |
| XPO Logistics, Inc.* | | | 139,644 | | | | 12,567,960 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—0.6% | | | | | | | | |
| Canada Goose Holdings, Inc.* | | | 171,681 | | | | 5,353,014 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—22.9% | | | | | | | | |
| Altair Engineering, Inc., Cl. A* | | | 59,142 | | | | 2,544,880 | |
| Avalara, Inc.* | | | 154,417 | | | | 23,015,854 | |
| Bill.com Holdings, Inc.* | | | 36,936 | | | | 3,693,600 | |
| Cerence, Inc.* | | | 300,608 | | | | 16,407,185 | |
| Ebix, Inc. | | | 176,192 | | | | 3,182,028 | |
| Everbridge, Inc.* | | | 298,505 | | | | 31,250,487 | |
| Globant SA* | | | 118,157 | | | | 21,340,336 | |
| HubSpot, Inc.* | | | 73,743 | | | | 21,390,632 | |
| LivePerson, Inc.* | | | 37,687 | | | | 2,014,747 | |
| Mimecast Ltd.* | | | 169,132 | | | | 6,462,534 | |
| Paylocity Holding Corp.* | | | 307,482 | | | | 57,044,060 | |
| Pluralsight, Inc., Cl. A* | | | 604,383 | | | | 9,488,813 | |
| SPS Commerce, Inc.* | | | 125,317 | | | | 10,725,882 | |
| Vertex, Inc., Cl. A* | | | 431,422 | | | | 10,457,669 | |
| | | | | | | | 219,018,707 | |
| ASSET MANAGEMENT & CUSTODY BANKS—3.7% | | | | | | | | |
| Hamilton Lane, Inc., Cl. A | | | 342,230 | | | | 23,853,431 | |
| StepStone Group, Inc., Cl. A* | | | 465,272 | | | | 11,962,143 | |
| | | | | | | | 35,815,574 | |
| BIOTECHNOLOGY—8.8% | | | | | | | | |
| ACADIA Pharmaceuticals, Inc.* | | | 818,433 | | | | 38,016,213 | |
| Natera, Inc.* | | | 431,672 | | | | 29,034,259 | |
| Puma Biotechnology, Inc.* | | | 1,036,671 | | | | 8,676,936 | |
| Ultragenyx Pharmaceutical, Inc.* | | | 85,414 | | | | 8,584,107 | |
| | | | | | | | 84,311,515 | |
| CONSUMER FINANCE—0.9% | | | | | | | | |
| LendingTree, Inc.* | | | 26,456 | | | | 8,560,897 | |
| | | | | | | | | |
| EDUCATION SERVICES—5.6% | | | | | | | | |
| Chegg, Inc.* | | | 726,553 | | | | 53,358,052 | |
| | | | | | | | | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—0.6% | | | | | | | | |
| Novanta, Inc.* | | | 57,283 | | | | 6,227,808 | |
| | | | | | | | | |
| ENVIRONMENTAL & FACILITIES SERVICES—4.0% | | | | | | | | |
| Casella Waste Systems, Inc., Cl. A* | | | 709,089 | | | | 38,283,715 | |
| | | | | | | | | |
| GENERAL MERCHANDISE STORES—3.8% | | | | | | | | |
| Ollie’s Bargain Outlet Holdings, Inc.* | | | 414,811 | | | | 36,125,890 | |
| | | | | | | | | |
| HEALTHCARE DISTRIBUTORS—1.2% | | | | | | | | |
| PetIQ, Inc., Cl. A* | | | 395,980 | | | | 11,309,189 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—10.8% | | | | | | | | |
| Glaukos Corp.* | | | 205,663 | | | | 11,500,675 | |
THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—92.2% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE EQUIPMENT—10.8% (CONT.) | | | | | | | | |
| Insulet Corp.* | | | 163,385 | | | $ | 36,312,316 | |
| Nevro Corp.* | | | 374,018 | | | | 55,807,225 | |
| | | | | | | | 103,620,216 | |
| HEALTHCARE FACILITIES—0.8% | | | | | | | | |
| US Physical Therapy, Inc. | | | 101,750 | | | | 8,071,828 | |
| | | | | | | | | |
| HEALTHCARE SUPPLIES—1.0% | | | | | | | | |
| Eargo, Inc.* | | | 59,372 | | | | 2,057,240 | |
| Silk Road Medical, Inc.* | | | 124,765 | | | | 7,560,759 | |
| | | | | | | | 9,617,999 | |
| HEALTHCARE TECHNOLOGY—1.2% | | | | | | | | |
| Inspire Medical Systems, Inc.* | | | 13,445 | | | | 1,605,736 | |
| Tabula Rasa HealthCare, Inc.* | | | 282,514 | | | | 9,758,034 | |
| | | | | | | | 11,363,770 | |
| INSURANCE BROKERS—2.4% | | | | | | | | |
| eHealth, Inc.* | | | 15,641 | | | | 1,049,668 | |
| Goosehead Insurance, Inc., Cl. A | | | 176,160 | | | | 21,586,646 | |
| | | | | | | | 22,636,314 | |
| LEISURE FACILITIES—1.6% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 263,101 | | | | 15,593,996 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—2.5% | | | | | | | | |
| NeoGenomics, Inc.* | | | 616,204 | | | | 24,173,683 | |
| | | | | | | | | |
| MANAGED HEALTHCARE—4.1% | | | | | | | | |
| Progyny, Inc.* | | | 1,597,376 | | | | 38,928,053 | |
| | | | | | | | | |
| OIL & GAS EQUIPMENT & SERVICES—0.4% | | | | | | | | |
| Core Laboratories NV | | | 270,728 | | | | 3,912,020 | |
| | | | | | | | | |
| PHARMACEUTICALS—0.3% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 285,179 | | | | 3,025,749 | |
| | | | | | | | | |
| REAL ESTATE SERVICES—6.0% | | | | | | | | |
| FirstService Corp. | | | 427,067 | | | | 57,295,309 | |
| | | | | | | | | |
| REGIONAL BANKS—1.0% | | | | | | | | |
| Signature Bank | | | 116,475 | | | | 9,404,192 | |
| | | | | | | | | |
| RESTAURANTS—0.7% | | | | | | | | |
| Wingstop, Inc. | | | 60,174 | | | | 7,000,041 | |
| | | | | | | | | |
| SEMICONDUCTORS—0.8% | | | | | | | | |
| Impinj, Inc.* | | | 315,247 | | | | 8,041,951 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—0.9% | | | | | | | | |
| Rapid7, Inc.* | | | 145,536 | | | | 9,013,044 | |
| | | | | | | | | |
| THRIFTS & MORTGAGE FINANCE—0.4% | | | | | | | | |
| Axos Financial, Inc.* | | | 128,429 | | | | 3,500,975 | |
| | | | | | | | | |
| TRADING COMPANIES & DISTRIBUTORS—2.5% | | | | | | | | |
| SiteOne Landscape Supply, Inc.* | | | 200,989 | | | | 24,016,176 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $658,135,672) | | | | | | | 883,187,480 | |
THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 231,474 | | | $ | 34,721 | |
| (Cost $1,041,633) | | | | | | | 34,721 | |
Total Investments
(Cost $659,177,305) | | | 92.2 | % | | $ | 883,222,201 | |
| Affiliated Securities (Cost $1,041,633) | | | | | | | 34,721 | |
| Unaffiliated Securities (Cost $658,135,672) | | | | | | | 883,187,480 | |
| Other Assets in Excess of Liabilities | | | 7.8 | % | | | 74,984,827 | |
| NET ASSETS | | | 100.0 | % | | $ | 958,207,028 | |
| (a) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 10/31/2020 | |
| Prosetta Biosciences, Inc., Series D | | | 2/6/15 | | | $ | 1,041,633 | | | | 0.10 | % | | $ | 34,721 | | | | 0.00 | % |
| Total | | | | | | | | | | | | | | $ | 34,721 | | | | 0.00 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—87.7% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.1% | | | | | | | | |
| Hexcel Corp. | | | 30,156 | | | $ | 1,009,623 | |
| Mercury Systems, Inc.* | | | 47,606 | | | | 3,279,101 | |
| | | | | | | | 4,288,724 | |
| ALTERNATIVE CARRIERS—1.0% | | | | | | | | |
| Bandwidth, Inc., Cl. A* | | | 24,176 | | | | 3,876,742 | |
| | | | | | | | | |
| APPAREL RETAIL—0.9% | | | | | | | | |
| Burlington Stores, Inc.* | | | 18,755 | | | | 3,630,593 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—18.5% | | | | | | | | |
| ACI Worldwide, Inc.* | | | 122,687 | | | | 3,578,780 | |
| Avalara, Inc.* | | | 63,691 | | | | 9,493,144 | |
| Benefitfocus, Inc.* | | | 99,156 | | | | 1,018,332 | |
| Bill.com Holdings, Inc.* | | | 48,273 | | | | 4,827,300 | |
| Blackbaud, Inc. | | | 45,952 | | | | 2,267,272 | |
| Blackline, Inc.* | | | 22,908 | | | | 2,237,653 | |
| Coupa Software, Inc.* | | | 23,979 | | | | 6,419,178 | |
| Everbridge, Inc.* | | | 50,138 | | | | 5,248,947 | |
| Guidewire Software, Inc.* | | | 34,278 | | | | 3,294,459 | |
| HubSpot, Inc.* | | | 21,229 | | | | 6,157,896 | |
| Manhattan Associates, Inc.* | | | 38,354 | | | | 3,279,267 | |
| Medallia, Inc.* | | | 83,880 | | | | 2,386,386 | |
| Paycom Software, Inc.* | | | 19,767 | | | | 7,196,967 | |
| Q2 Holdings, Inc.* | | | 46,570 | | | | 4,249,047 | |
| Smartsheet, Inc., Cl. A* | | | 44,207 | | | | 2,203,719 | |
| SPS Commerce, Inc.* | | | 37,071 | | | | 3,172,907 | |
| Tyler Technologies, Inc.* | | | 8,902 | | | | 3,421,751 | |
| Vertex, Inc., Cl. A* | | | 90,258 | | | | 2,187,854 | |
| | | | | | | | 72,640,859 | |
| ASSET MANAGEMENT & CUSTODY BANKS—0.7% | | | | | | | | |
| Affiliated Managers Group, Inc. | | | 36,814 | | | | 2,774,671 | |
| | | | | | | | | |
| BIOTECHNOLOGY—4.5% | | | | | | | | |
| Biodesix, Inc.* | | | 54,061 | | | | 671,978 | |
| BioNTech SE#,* | | | 23,142 | | | | 1,975,401 | |
| CareDx, Inc.* | | | 138,503 | | | | 6,793,572 | |
| Exact Sciences Corp.* | | | 36,367 | | | | 4,503,326 | |
| Moderna, Inc.* | | | 30,127 | | | | 2,032,669 | |
| Turning Point Therapeutics, Inc.* | | | 16,773 | | | | 1,546,303 | |
| | | | | | | | 17,523,249 | |
| CASINOS & GAMING—2.8% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 140,914 | | | | 4,988,356 | |
| Penn National Gaming, Inc.* | | | 109,363 | | | | 5,903,414 | |
| | | | | | | | 10,891,770 | |
| CONSUMER FINANCE—0.6% | | | | | | | | |
| dMY Technology Group, Inc. II, Cl. A* | | | 217,156 | | | | 2,182,418 | |
| | | | | | | | | |
| DIVERSIFIED SUPPORT SERVICES—0.5% | | | | | | | | |
| IAA, Inc.* | | | 36,890 | | | | 2,087,605 | |
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—87.7% (CONT.) | | SHARES | | | VALUE | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.7% | | | | | | | | |
| Sunrun, Inc.* | | | 124,592 | | | $ | 6,481,276 | |
| | | | | | | | | |
| ELECTRONIC COMPONENTS—0.7% | | | | | | | | |
| Dolby Laboratories, Inc., Cl. A | | | 35,035 | | | | 2,630,428 | |
| | | | | | | | | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.2% | | | | | | | | |
| Cognex Corp. | | | 71,118 | | | | 4,686,676 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—0.9% | | | | | | | | |
| Tradeweb Markets, Inc., Cl. A | | | 66,907 | | | | 3,645,093 | |
| | | | | | | | | |
| FOOD DISTRIBUTORS—1.1% | | | | | | | | |
| The Chefs’ Warehouse, Inc.* | | | 38,729 | | | | 523,616 | |
| US Foods Holding Corp.* | | | 184,624 | | | | 3,858,642 | |
| | | | | | | | 4,382,258 | |
| HEALTHCARE EQUIPMENT—10.6% | | | | | | | | |
| ABIOMED, Inc.* | | | 18,933 | | | | 4,768,844 | |
| Cantel Medical Corp. | | | 92,696 | | | | 4,434,577 | |
| CryoPort, Inc.* | | | 86,255 | | | | 3,462,276 | |
| DexCom, Inc.* | | | 20,127 | | | | 6,432,187 | |
| Inmode Ltd.* | | | 15,105 | | | | 552,239 | |
| Inogen, Inc.* | | | 26,058 | | | | 761,154 | |
| Insulet Corp.* | | | 51,812 | | | | 11,515,216 | |
| Mesa Laboratories, Inc. | | | 8,265 | | | | 2,160,554 | |
| Tandem Diabetes Care, Inc.* | | | 68,893 | | | | 7,509,337 | |
| | | | | | | | 41,596,384 | |
| HEALTHCARE SERVICES—2.2% | | | | | | | | |
| 1Life Healthcare, Inc.* | | | 108,006 | | | | 3,046,849 | |
| Guardant Health, Inc.* | | | 43,942 | | | | 4,686,854 | |
| Progenity, Inc.* | | | 175,679 | | | | 876,638 | |
| | | | | | | | 8,610,341 | |
| HEALTHCARE SUPPLIES—7.5% | | | | | | | | |
| Neogen Corp.* | | | 73,846 | | | | 5,150,020 | |
| Quidel Corp.* | | | 89,712 | | | | 24,068,833 | |
| | | | | | | | 29,218,853 | |
| HEALTHCARE TECHNOLOGY—6.1% | | | | | | | | |
| Livongo Health, Inc.* | | | 19,998 | | | | 2,552,345 | |
| Teladoc Health, Inc.* | | | 26,056 | | | | 5,118,962 | |
| Veeva Systems, Inc., Cl. A* | | | 48,382 | | | | 13,065,559 | |
| Vocera Communications, Inc.* | | | 96,971 | | | | 3,178,709 | |
| | | | | | | | 23,915,575 | |
| HOME IMPROVEMENT RETAIL—0.0% | | | | | | | | |
| Leslie’s, Inc.* | | | 6,001 | | | | 131,842 | |
| | | | | | | | | |
| HOMEFURNISHING RETAIL—0.6% | | | | | | | | |
| Bed Bath & Beyond, Inc. | | | 123,464 | | | | 2,444,587 | |
| | | | | | | | | |
| HYPERMARKETS & SUPER CENTERS—0.9% | | | | | | | | |
| BJ’s Wholesale Club Holdings, Inc.* | | | 87,127 | | | | 3,336,093 | |
| | | | | | | | | |
| INTERACTIVE HOME ENTERTAINMENT—1.1% | | | | | | | | |
| Take-Two Interactive Software, Inc.* | | | 26,800 | | | | 4,151,856 | |
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—87.7% (CONT.) | | SHARES | | | VALUE | |
| INTERACTIVE MEDIA & SERVICES—0.2% | | | | | | | | |
| Eventbrite, Inc., Cl. A* | | | 100,603 | | | $ | 928,566 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—2.5% | | | | | | | | |
| Farfetch Ltd., Cl. A* | | | 174,390 | | | | 4,905,591 | |
| Fiverr International Ltd.* | | | 29,096 | | | | 4,260,236 | |
| The RealReal, Inc.* | | | 49,549 | | | | 623,822 | |
| | | | | | | | 9,789,649 | |
| INTERNET SERVICES & INFRASTRUCTURE—2.4% | | | | | | | | |
| BigCommerce Holdings, Inc.* | | | 2,827 | | | | 207,502 | |
| Shopify, Inc., Cl. A* | | | 9,833 | | | | 9,099,753 | |
| | | | | | | | 9,307,255 | |
| LEISURE FACILITIES—0.5% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 31,960 | | | | 1,894,269 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—6.5% | | | | | | | | |
| 10X Genomics, Inc., Cl. A* | | | 18,033 | | | | 2,468,718 | |
| Bio-Techne Corp. | | | 41,475 | | | | 10,468,704 | |
| NanoString Technologies, Inc.* | | | 83,281 | | | | 3,052,249 | |
| NeoGenomics, Inc.* | | | 79,696 | | | | 3,126,474 | |
| PRA Health Sciences, Inc.* | | | 20,113 | | | | 1,959,811 | |
| Repligen Corp.* | | | 26,892 | | | | 4,479,400 | |
| | | | | | | | 25,555,356 | |
| MANAGED HEALTHCARE—0.6% | | | | | | | | |
| HealthEquity, Inc.* | | | 43,268 | | | | 2,227,869 | |
| | | | | | | | | |
| MOVIES & ENTERTAINMENT—0.8% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 63,338 | | | | 3,090,894 | |
| | | | | | | | | |
| OIL & GAS EXPLORATION & PRODUCTION—0.4% | | | | | | | | |
| Magnolia Oil & Gas Corp., Cl. A* | | | 398,442 | | | | 1,729,238 | |
| | | | | | | | | |
| PHARMACEUTICALS—0.2% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 66,293 | | | | 703,369 | |
| | | | | | | | | |
| REGIONAL BANKS—0.6% | | | | | | | | |
| Webster Financial Corp. | | | 69,071 | | | | 2,224,777 | |
| | | | | | | | | |
| RESTAURANTS—2.5% | | | | | | | | |
| Shake Shack, Inc., Cl. A* | | | 76,316 | | | | 5,152,856 | |
| Wingstop, Inc. | | | 37,985 | | | | 4,418,795 | |
| | | | | | | | 9,571,651 | |
| SEMICONDUCTOR EQUIPMENT—1.1% | | | | | | | | |
| SolarEdge Technologies, Inc.* | | | 16,226 | | | | 4,181,278 | |
| | | | | | | | | |
| SEMICONDUCTORS—1.1% | | | | | | | | |
| Universal Display Corp. | | | 20,901 | | | | 4,144,877 | |
| | | | | | | | | |
| SPECIALTY CHEMICALS—1.0% | | | | | | | | |
| Balchem Corp. | | | 37,168 | | | | 3,714,942 | |
| | | | | | | | | |
| SPECIALTY STORES—1.1% | | | | | | | | |
| Five Below, Inc.* | | | 24,171 | | | | 3,222,961 | |
| Sportsman’s Warehouse Holdings, Inc.* | | | 74,150 | | | | 965,433 | |
| | | | | | | | 4,188,394 | |
THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—87.7% (CONT.) | | SHARES | | | VALUE | |
| SYSTEMS SOFTWARE—1.0% | | | | | | | | |
| Proofpoint, Inc.* | | | 40,809 | | | $ | 3,907,054 | |
TOTAL COMMON STOCKS
(Cost $207,540,176) | | | | | | | 342,287,331 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 50,688 | | | | 7,603 | |
| (Cost $228,096) | | | | | | | 7,603 | |
| RIGHTS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Tolero CDR*,@,(a),(c) | | | 174,782 | | | | 120,600 | |
| (Cost $94,483) | | | | | | | 120,600 | |
| REAL ESTATE INVESTMENT TRUST—1.6% | | SHARES | | | VALUE | |
| SPECIALIZED—1.6% | | | | | | | | |
| Digital Realty Trust, Inc. | | | 42,881 | | | | 6,187,728 | |
| (Cost $5,612,706) | | | | | | | 6,187,728 | |
| SPECIAL PURPOSE VEHICLE—0.5% | | SHARES | | | VALUE | |
| DATA PROCESSING & OUTSOURCED SERVICES —0.1% | | | | | | | | |
| Crosslink Ventures Capital LLC*,@,(a),(b) | | | 72 | | | | 1,800,000 | |
| (Cost $1,800,000) | | | | | | | 1,800,000 | |
Total Investments
(Cost $215,275,461) | | | 89.8 | % | | $ | 350,403,262 | |
| Affiliated Securities (Cost $2,028,096) | | | | | | | 1,807,603 | |
| Unaffiliated Securities (Cost $213,247,365) | | | | | | | 348,595,659 | |
| Other Assets in Excess of Liabilities | | | 10.2 | % | | | 39,821,630 | |
| NET ASSETS | | | 100.0 | % | | $ | 390,224,892 | |
| # | American Depositary Receipts. |
| (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| (b) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (c) | Contingent Deferred Rights. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 10/31/2020 | |
| Crosslink Ventures Capital LLC | | | 10/2/20 | | | $ | 1,800,000 | | | | 0.49 | % | | $ | 1,800,000 | | | | 0.46 | % |
| Prosetta Biosciences, Inc., Series D | | | 2/6/15 | | | | 228,096 | | | | 0.10 | % | | | 7,603 | | | | 0.00 | % |
| Tolero CDR | | | 2/6/17 | | | | 94,483 | | | | 0.08 | % | | | 120,600 | | | | 0.03 | % |
| Total | | | | | | | | | | | | | | $ | 1,928,203 | | | | 0.49 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—97.8% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.8% | | | | | | | | |
| Mercury Systems, Inc.* | | | 1,572,692 | | | $ | 108,327,025 | |
| | | | | | | | | |
| ALTERNATIVE CARRIERS—1.4% | | | | | | | | |
| Bandwidth, Inc., Cl. A* | | | 532,488 | | | | 85,387,113 | |
| | | | | | | | | |
| APPLICATION SOFTWARE—25.9% | | | | | | | | |
| Alteryx, Inc., Cl. A* | | | 470,899 | | | | 59,027,190 | |
| ANSYS, Inc.* | | | 445,432 | | | | 135,576,139 | |
| Avalara, Inc.* | | | 956,049 | | | | 142,499,104 | |
| Blackline, Inc.* | | | 1,360,409 | | | | 132,884,751 | |
| Coupa Software, Inc.* | | | 237,312 | | | | 63,528,422 | |
| Datadog, Inc., Cl. A* | | | 1,323,105 | | | | 120,071,779 | |
| Everbridge, Inc.* | | | 1,101,915 | | | | 115,359,481 | |
| Guidewire Software, Inc.* | | | 1,006,464 | | | | 96,731,255 | |
| Medallia, Inc.* | | | 2,423,081 | | | | 68,936,654 | |
| Model N, Inc.* | | | 3,107,542 | | | | 109,478,705 | |
| Paycom Software, Inc.* | | | 336,925 | | | | 122,671,023 | |
| Pluralsight, Inc., Cl. A* | | | 3,346,469 | | | | 52,539,563 | |
| PROS Holdings, Inc.* | | | 2,065,118 | | | | 58,174,374 | |
| Q2 Holdings, Inc.* | | | 989,802 | | | | 90,309,534 | |
| Smartsheet, Inc., Cl. A* | | | 1,266,537 | | | | 63,136,869 | |
| Tyler Technologies, Inc.* | | | 266,038 | | | | 102,259,686 | |
| | | | | | | | 1,533,184,529 | |
| BIOTECHNOLOGY—7.6% | | | | | | | | |
| CareDx, Inc.* | | | 4,197,582 | | | | 205,891,397 | |
| Natera, Inc.* | | | 3,697,466 | | | | 248,691,563 | |
| | | | | | | | 454,582,960 | |
| BUILDING PRODUCTS—2.0% | | | | | | | | |
| Trex Co., Inc.* | | | 1,722,720 | | | | 119,797,949 | |
| | | | | | | | | |
| EDUCATION SERVICES—3.3% | | | | | | | | |
| Chegg, Inc.* | | | 2,693,974 | | | | 197,845,451 | |
| | | | | | | | | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—2.2% | | | | | | | | |
| Cognex Corp. | | | 2,004,491 | | | | 132,095,957 | |
| | | | | | | | | |
| HEALTHCARE DISTRIBUTORS—1.1% | | | | | | | | |
| PetIQ, Inc., Cl. A* | | | 2,207,971 | | | | 63,059,652 | |
| | | | | | | | | |
| HEALTHCARE EQUIPMENT—20.0% | | | | | | | | |
| ABIOMED, Inc.* | | | 433,882 | | | | 109,286,198 | |
| AtriCure, Inc.* | | | 2,360,131 | | | | 81,566,127 | |
| Cantel Medical Corp. | | | 2,659,134 | | | | 127,212,971 | |
| CryoPort, Inc.* | | | 4,676,882 | | | | 187,730,043 | |
| Heska Corp.* | | | 1,095,146 | | | | 128,493,480 | |
| Insulet Corp.* | | | 668,080 | | | | 148,480,780 | |
| iRhythm Technologies, Inc.* | | | 425,030 | | | | 89,872,594 | |
| Nevro Corp.* | | | 933,911 | | | | 139,348,860 | |
| Tactile Systems Technology, Inc.* | | | 1,903,368 | | | | 69,625,201 | |
| Tandem Diabetes Care, Inc.* | | | 928,579 | | | | 101,215,111 | |
| | | | | | | | 1,182,831,365 | |
THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—97.8% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE SERVICES—1.4% | | | | | | | | |
| Guardant Health, Inc.* | | | 772,549 | | | $ | 82,400,076 | |
| | | | | | | | | |
| HEALTHCARE SUPPLIES—6.5% | | | | | | | | |
| Neogen Corp.* | | | 1,531,679 | | | | 106,819,293 | |
| Quidel Corp.* | | | 1,035,340 | | | | 277,771,369 | |
| | | | | | | | 384,590,662 | |
| HEALTHCARE TECHNOLOGY—4.5% | | | | | | | | |
| Teladoc Health, Inc.* | | | 331,036 | | | | 65,035,333 | |
| Veeva Systems, Inc., Cl. A* | | | 755,764 | | | | 204,094,068 | |
| | | | | | | | 269,129,401 | |
| INTERNET & DIRECT MARKETING RETAIL—1.5% | | | | | | | | |
| Stamps.com, Inc.* | | | 388,937 | | | | 86,826,296 | |
| | | | | | | | | |
| INTERNET SERVICES & INFRASTRUCTURE—1.1% | | | | | | | | |
| Shopify, Inc., Cl. A* | | | 69,592 | | | | 64,402,525 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—4.8% | | | | | | | | |
| Bio-Techne Corp. | | | 540,332 | | | | 136,385,200 | |
| Repligen Corp.* | | | 898,903 | | | | 149,730,273 | |
| | | | | | | | 286,115,473 | |
| MANAGED HEALTHCARE—1.5% | | | | | | | | |
| HealthEquity, Inc.* | | | 1,755,193 | | | | 90,374,888 | |
| | | | | | | | | |
| RESTAURANTS—4.4% | | | | | | | | |
| Shake Shack, Inc., Cl. A* | | | 1,739,863 | | | | 117,475,550 | |
| Wingstop, Inc. | | | 1,246,810 | | | | 145,041,407 | |
| | | | | | | | 262,516,957 | |
| SEMICONDUCTORS—2.7% | | | | | | | | |
| Monolithic Power Systems, Inc. | | | 509,287 | | | | 162,768,125 | |
| | | | | | | | | |
| SPECIALTY CHEMICALS—1.3% | | | | | | | | |
| Balchem Corp. | | | 777,388 | | | | 77,699,931 | |
| | | | | | | | | |
| SYSTEMS SOFTWARE—2.8% | | | | | | | | |
| Proofpoint, Inc.* | | | 849,064 | | | | 81,289,387 | |
| Sailpoint Technologies Holdings, Inc.* | | | 2,052,903 | | | | 85,216,004 | |
| | | | | | | | 166,505,391 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $4,029,971,382) | | | | | | | 5,810,441,726 | |
| RIGHTS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Tolero CDR*,@,(b),(c) | | | 11,905 | | | | 8,214 | |
| (Cost $6,436) | | | | | | | 8,214 | |
| Total Investments | | | | | | | | |
| (Cost $4,029,977,818) | | | 97.8 | % | | $ | 5,810,449,940 | |
| Unaffiliated Securities (Cost $4,029,977,818) | | | | | | | 5,810,449,940 | |
| Other Assets in Excess of Liabilities | | | 2.2 | % | | | 131,890,639 | |
| NET ASSETS | | | 100.0 | % | | $ | 5,942,340,579 | |
| (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| (b) | Contingent Deferred Rights. |
THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments October 31, 2020 (Continued)
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 10/31/2020 | |
| Tolero CDR | | | 2/6/17 | | | $ | 6,436 | | | | 0.00 | % | | $ | 8,214 | | | | 0.00 | % |
| Total | | | | | | | | | | | | | | $ | 8,214 | | | | 0.00 | % |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—98.6% | | SHARES | | | VALUE | |
| AUSTRALIA—5.8% | | | | | | | | |
| HEALTHCARE SUPPLIES—1.1% | | | | | | | | |
| Nanosonics Ltd.* | | | 490,062 | | | $ | 1,776,115 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—2.6% | | | | | | | | |
| Kogan.com Ltd. | | | 276,253 | | | | 4,000,469 | |
| | | | | | | | | |
| IT CONSULTING & OTHER SERVICES—2.1% | | | | | | | | |
| Appen Ltd. | | | 143,200 | | | | 3,262,751 | |
TOTAL AUSTRALIA
(Cost $6,684,831) | | | | | | | 9,039,335 | |
| | | | | | | | | |
| BELGIUM—1.9% | | | | | | | | |
| APPLICATION SOFTWARE—1.9% | | | | | | | | |
| Unifiedpost Group SA* | | | 112,287 | | | | 2,916,409 | |
| (Cost $2,879,104) | | | | | | | | |
| | | | | | | | | |
| BRAZIL—1.8% | | | | | | | | |
| SPECIALTY STORES—1.8% | | | | | | | | |
| Pet Center Comercio e Participacoes SA*,(a) | | | | | | | | |
| (Cost $2,524,959) | | | 914,962 | | | | 2,830,478 | |
| | | | | | | | | |
| CHINA—13.1% | | | | | | | | |
| AUTOMOBILE MANUFACTURERS—2.4% | | | | | | | | |
| Geely Automobile Holdings Ltd. | | | 1,804,000 | | | | 3,706,939 | |
| | | | | | | | | |
| CONSTRUCTION MACHINERY & HEAVY TRUCKS—2.8% | | | | | | | | |
| Sany Heavy Industry Co., Ltd., Cl. A | | | 1,099,843 | | | | 4,276,096 | |
| | | | | | | | | |
| INTERACTIVE MEDIA & SERVICES—3.5% | | | | | | | | |
| Tencent Holdings Ltd. | | | 72,200 | | | | 5,516,453 | |
| | | | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—4.4% | | | | | | | | |
| JD.com, Inc.#,* | | | 40,200 | | | | 3,277,104 | |
| Meituan, Cl. B* | | | 94,000 | | | | 3,504,221 | |
| | | | | | | | 6,781,325 | |
TOTAL CHINA
(Cost $15,000,865) | | | | | | | 20,280,813 | |
| DENMARK—4.4% | | | | | | | | |
| AIR FREIGHT & LOGISTICS—2.4% | | | | | | | | |
| DSV PANALPINA AS | | | 23,600 | | | | 3,829,079 | |
| | | | | | | | | |
| BIOTECHNOLOGY—2.0% | | | | | | | | |
| Genmab AS* | | | 9,200 | | | | 3,073,175 | |
TOTAL DENMARK
(Cost $3,958,831) | | | | | | | 6,902,254 | |
| FRANCE—10.0% | | | | | | | | |
| AEROSPACE & DEFENSE—2.0% | | | | | | | | |
| Airbus SE* | | | 42,700 | | | | 3,124,326 | |
| | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.6% | | | | | | | | |
| LVMH Moet Hennessy Louis Vuitton SE | | | 8,700 | | | | 4,078,280 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—3.0% | | | | | | | | |
| Eurofins Scientific SE* | | | 5,750 | | | | 4,579,039 | |
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—98.6% (CONT.) | | SHARES | | | VALUE | |
| FRANCE—10.0% (CONT.) | | | | | | | | |
| RESEARCH & CONSULTING SERVICES—2.4% | | | | | | | | |
| Teleperformance | | | 12,557 | | | $ | 3,769,561 | |
| TOTAL FRANCE | | | | | | | | |
| (Cost $11,375,559) | | | | | | | 15,551,206 | |
| GERMANY—2.0% | | | | | | | | |
| FOOTWEAR—2.0% | | | | | | | | |
| Puma SE | | | 35,300 | | | | 3,090,408 | |
| (Cost $1,845,665) | | | | | | | | |
| | | | | | | | | |
| HONG KONG—6.1% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.5% | | | | | | | | |
| Samsonite International SA*,(a) | | | 2,357,000 | | | | 2,404,478 | |
| | | | | | | | | |
| FINANCIAL EXCHANGES & DATA—2.5% | | | | | | | | |
| Hong Kong Exchanges & Clearing Ltd. | | | 80,000 | | | | 3,833,473 | |
| | | | | | | | | |
| INDUSTRIAL MACHINERY—2.1% | | | | | | | | |
| Techtronic Industries Co., Ltd. | | | 237,000 | | | | 3,192,213 | |
| TOTAL HONG KONG | | | | | | | | |
| (Cost $6,764,691) | | | | | | | 9,430,164 | |
| | | | | | | | | |
| INDIA—4.3% | | | | | | | | |
| DIVERSIFIED BANKS—2.2% | | | | | | | | |
| HDFC Bank Ltd.#,* | | | 59,000 | | | | 3,388,960 | |
| | | | | | | | | |
| OIL & GAS REFINING & MARKETING—2.1% | | | | | | | | |
| Reliance Industries Ltd. | | | 121,100 | | | | 3,353,544 | |
| TOTAL INDIA | | | | | | | | |
| (Cost $5,645,510) | | | | | | | 6,742,504 | |
| | | | | | | | | |
| IRELAND—2.2% | | | | | | | | |
| PACKAGED FOODS & MEATS—2.2% | | | | | | | | |
| Kerry Group PLC, Cl. A | | | 28,041 | | | | 3,356,707 | |
| (Cost $2,962,801) | | | | | | | | |
| | | | | | | | | |
| ITALY—6.0% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.8% | | | | | | | | |
| Moncler SpA | | | 70,986 | | | | 2,840,393 | |
| | | | | | | | | |
| AUTOMOBILE MANUFACTURERS—2.4% | | | | | | | | |
| Ferrari NV | | | 21,062 | | | | 3,757,882 | |
| | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—1.8% | | | | | | | | |
| Nexi SpA*,(a) | | | 177,900 | | | | 2,738,729 | |
| TOTAL ITALY | | | | | | | | |
| (Cost $7,699,318) | | | | | | | 9,337,004 | |
| | | | | | | | | |
| JAPAN—11.8% | | | | | | | | |
| ELECTRONIC COMPONENTS—2.8% | | | | | | | | |
| Murata Manufacturing Co., Ltd. | | | 61,400 | | | | 4,305,489 | |
| | | | | | | | | |
| HEALTHCARE SUPPLIES—2.0% | | | | | | | | |
| Hoya Corp. | | | 27,900 | | | | 3,148,408 | |
| | | | | | | | | |
| INDUSTRIAL MACHINERY—2.9% | | | | | | | | |
| FANUC Corp. | | | 21,600 | | | | 4,562,021 | |
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—98.6% (CONT.) | | SHARES | | | VALUE | |
| JAPAN—11.8% (CONT.) | | | | | | | | |
| INTERACTIVE HOME ENTERTAINMENT—2.2% | | | | | | | | |
| Nintendo Co., Ltd. | | | 6,200 | | | $ | 3,351,950 | |
| | | | | | | | | |
| SEMICONDUCTOR EQUIPMENT—1.9% | | | | | | | | |
| Lasertec Corp. | | | 33,299 | | | | 2,884,111 | |
| TOTAL JAPAN | | | | | | | | |
| (Cost $13,041,253) | | | | | | | 18,251,979 | |
| NETHERLANDS—7.6% | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—2.6% | | | | | | | | |
| Adyen NV*,(a) | | | 2,400 | | | | 4,033,959 | |
| | | | | | | | | |
| HEAVY ELECTRICAL EQUIPMENT—2.3% | | | | | | | | |
| Alfen Beheer BV*,(a) | | | 55,300 | | | | 3,534,161 | |
| | | | | | | | | |
| SEMICONDUCTOR EQUIPMENT—2.7% | | | | | | | | |
| ASML Holding NV | | | 11,500 | | | | 4,160,914 | |
| TOTAL NETHERLANDS | | | | | | | | |
| (Cost $6,044,882) | | | | | | | 11,729,034 | |
| | | | | | | | | |
| NEW ZEALAND—3.3% | | | | | | | | |
| APPLICATION SOFTWARE—2.3% | | | | | | | | |
| Xero Ltd.* | | | 46,600 | | | | 3,616,443 | |
| | | | | | | | | |
| PACKAGED FOODS & MEATS—1.0% | | | | | | | | |
| a2 Milk Co., Ltd.* | | | 154,000 | | | | 1,480,301 | |
| TOTAL NEW ZEALAND | | | | | | | | |
| (Cost $3,171,712) | | | | | | | 5,096,744 | |
| | | | | | | | | |
| SPAIN—2.1% | | | | | | | | |
| BIOTECHNOLOGY—2.1% | | | | | | | | |
| Grifols SA# | | | 192,941 | | | | 3,276,138 | |
| (Cost $3,850,069) | | | | | | | | |
| | | | | | | | | |
| SWEDEN—4.7% | | | | | | | | |
| ASSET MANAGEMENT & CUSTODY BANKS—2.0% | | | | | | | | |
| EQT AB | | | 162,898 | | | | 3,095,530 | |
| | | | | | | | | |
| INTERACTIVE HOME ENTERTAINMENT—2.7% | | | | | | | | |
| Stillfront Group AB* | | | 36,337 | | | | 4,270,840 | |
TOTAL SWEDEN
(Cost $4,664,261) | | | | | | | 7,366,370 | |
| | | | | | | | | |
| SWITZERLAND—4.9% | | | | | | | | |
| ASSET MANAGEMENT & CUSTODY BANKS—2.3% | | | | | | | | |
| Partners Group Holding AG | | | 3,884 | | | | 3,496,789 | |
| | | | | | | | | |
| SPECIALTY CHEMICALS—2.6% | | | | | | | | |
| Sika AG | | | 16,700 | | | | 4,108,283 | |
TOTAL SWITZERLAND
(Cost $5,132,132) | | | | | | | 7,605,072 | |
| TAIWAN—2.2% | | | | | | | | |
| SEMICONDUCTORS—2.2% | | | | | | | | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 41,700 | | | | 3,497,379 | |
| (Cost $3,552,591) | | | | | | | | |
THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—98.6% (CONT.) | | SHARES | | | VALUE | |
| UNITED KINGDOM—2.0% | | | | | | | |
| FINANCIAL EXCHANGES & DATA—2.0% | | | | | | | |
| London Stock Exchange Group PLC | | 28,500 | | | $ | 3,072,122 | |
| (Cost $1,822,124) | | | | | | | |
| UNITED STATES—2.4% | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.4% | | | | | | | |
| Lululemon Athletica, Inc.* | | 11,891 | | | | 3,796,677 | |
| (Cost $2,246,530) | | | | | | | |
| TOTAL COMMON STOCKS | | | | | | | |
| (Cost $110,867,688) | | | | | | 153,168,797 | |
| Total Investments | | | | | | | |
| (Cost $110,867,688) | | 98.6 | % | | $ | 153,168,797 | |
| Unaffiliated Securities (Cost $110,867,688) | | | | | | 153,168,797 | |
| Other Assets in Excess of Liabilities | | 1.4 | % | | | 2,113,400 | |
| NET ASSETS | | 100.0 | % | | $ | 155,282,197 | |
| # | American Depositary Receipts. |
| (a) | Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. These securities represent 10.0% of the net assets of the Fund. |
| * | Non-income producing security. |
See Notes to Financial Statements.
THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments October 31, 2020
| COMMON STOCKS—95.1% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—24.1% | | | | | | | | |
| AbbVie, Inc. | | | 33,914 | | | $ | 2,886,081 | |
| Acceleron Pharma, Inc.* | | | 7,251 | | | | 758,310 | |
| Adverum Biotechnologies, Inc.* | | | 14,618 | | | | 159,482 | |
| Argenx SE#,* | | | 11,416 | | | | 2,832,652 | |
| Arrowhead Pharmaceuticals, Inc.* | | | 36,117 | | | | 2,069,504 | |
| Avidity Biosciences, Inc.* | | | 16,243 | | | | 401,689 | |
| BeiGene Ltd.#,* | | | 4,390 | | | | 1,301,723 | |
| BioMarin Pharmaceutical, Inc.* | | | 30,735 | | | | 2,287,606 | |
| BioNTech SE#,* | | | 19,845 | | | | 1,693,969 | |
| Black Diamond Therapeutics, Inc.* | | | 16,617 | | | | 523,602 | |
| Castle Biosciences, Inc.* | | | 22,331 | | | | 1,036,828 | |
| ChemoCentryx, Inc.* | | | 23,759 | | | | 1,140,432 | |
| Constellation Pharmaceuticals, Inc.* | | | 64,417 | | | | 1,263,862 | |
| Exact Sciences Corp.* | | | 40,263 | | | | 4,985,767 | |
| Fate Therapeutics, Inc.* | | | 15,171 | | | | 673,592 | |
| Forte Biosciences, Inc.* | | | 177,801 | | | | 6,784,887 | |
| Genmab AS#,* | | | 59,796 | | | | 2,012,733 | |
| Halozyme Therapeutics, Inc.* | | | 47,931 | | | | 1,342,068 | |
| Invitae Corp.* | | | 61,763 | | | | 2,421,727 | |
| Iovance Biotherapeutics, Inc.* | | | 19,246 | | | | 686,697 | |
| Moderna, Inc.* | | | 38,590 | | | | 2,603,667 | |
| Natera, Inc.* | | | 72,318 | | | | 4,864,109 | |
| Sage Therapeutics, Inc.* | | | 31,161 | | | | 2,286,594 | |
| Sarepta Therapeutics, Inc.* | | | 15,398 | | | | 2,092,742 | |
| Seagen, Inc.* | | | 8,264 | | | | 1,378,435 | |
| TG Therapeutics, Inc.* | | | 66,274 | | | | 1,674,744 | |
| Trillium Therapeutics, Inc.* | | | 26,790 | | | | 333,536 | |
| Turning Point Therapeutics, Inc.* | | | 33,998 | | | | 3,134,276 | |
| Twist Bioscience Corp.* | | | 25,848 | | | | 1,980,991 | |
| Vertex Pharmaceuticals, Inc.* | | | 33,459 | | | | 6,971,518 | |
| Zymeworks, Inc.* | | | 15,716 | | | | 614,810 | |
| | | | | | | | 65,198,633 | |
| HEALTHCARE EQUIPMENT—25.5% | | | | | | | | |
| Abbott Laboratories | | | 78,331 | | | | 8,233,371 | |
| ABIOMED, Inc.* | | | 11,369 | | | | 2,863,624 | |
| Boston Scientific Corp.* | | | 28,422 | | | | 974,022 | |
| CryoPort, Inc.* | | | 63,245 | | | | 2,538,654 | |
| Danaher Corp. | | | 48,462 | | | | 11,123,968 | |
| DexCom, Inc.* | | | 24,368 | | | | 7,787,525 | |
| Edwards Lifesciences Corp.* | | | 42,843 | | | | 3,071,415 | |
| IDEXX Laboratories, Inc.* | | | 19,904 | | | | 8,455,617 | |
| Insulet Corp.* | | | 20,644 | | | | 4,588,129 | |
| Intuitive Surgical, Inc.* | | | 5,998 | | | | 4,001,146 | |
| iRhythm Technologies, Inc.* | | | 8,781 | | | | 1,856,742 | |
| Masimo Corp.* | | | 14,453 | | | | 3,234,870 | |
| Nevro Corp.* | | | 13,618 | | | | 2,031,942 | |
| Sartorius AG | | | 9,983 | | | | 4,225,789 | |
THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—95.1% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE EQUIPMENT—25.5% (CONT.) | | | | | | | | |
| Tandem Diabetes Care, Inc.* | | | 35,725 | | | $ | 3,894,025 | |
| | | | | | | | 68,880,839 | |
| HEALTHCARE SERVICES—3.5% | | | | | | | | |
| 1Life Healthcare, Inc.* | | | 69,642 | | | | 1,964,601 | |
| Cigna Corp. | | | 9,999 | | | | 1,669,533 | |
| Guardant Health, Inc.* | | | 55,317 | | | | 5,900,111 | |
| | | | | | | | 9,534,245 | |
| HEALTHCARE SUPPLIES—7.6% | | | | | | | | |
| Align Technology, Inc.* | | | 6,496 | | | | 2,767,816 | |
| Quidel Corp.* | | | 36,704 | | | | 9,847,316 | |
| Silk Road Medical, Inc.* | | | 47,347 | | | | 2,869,228 | |
| STAAR Surgical Co.* | | | 32,482 | | | | 2,354,945 | |
| West Pharmaceutical Services, Inc. | | | 9,911 | | | | 2,696,486 | |
| | | | | | | | 20,535,791 | |
| HEALTHCARE TECHNOLOGY—5.4% | | | | | | | | |
| Livongo Health, Inc.* | | | 21,432 | | | | 2,735,366 | |
| Phreesia, Inc.* | | | 16,673 | | | | 616,401 | |
| Schrodinger, Inc.* | | | 23,815 | | | | 1,161,696 | |
| Teladoc Health, Inc.* | | | 11,973 | | | | 2,352,216 | |
| Veeva Systems, Inc., Cl. A* | | | 28,760 | | | | 7,766,637 | |
| | | | | | | | 14,632,316 | |
| INSURANCE BROKERS—0.4% | | | | | | | | |
| eHealth, Inc.* | | | 17,801 | | | | 1,194,625 | |
| | | | | | | | | |
| LIFE SCIENCES TOOLS & SERVICES—12.7% | | | | | | | | |
| 10X Genomics, Inc., Cl. A* | | | 18,946 | | | | 2,593,707 | |
| Adaptive Biotechnologies Corp.* | | | 47,178 | | | | 2,173,962 | |
| Berkeley Lights, Inc.* | | | 11,569 | | | | 839,562 | |
| Bio-Techne Corp. | | | 18,827 | | | | 4,752,123 | |
| Illumina, Inc.* | | | 7,040 | | | | 2,060,608 | |
| Lonza Group AG | | | 6,743 | | | | 4,085,653 | |
| Personalis, Inc.* | | | 80,915 | | | | 2,001,028 | |
| Repligen Corp.* | | | 28,053 | | | | 4,672,788 | |
| Thermo Fisher Scientific, Inc. | | | 23,598 | | | | 11,164,686 | |
| | | | | | | | 34,344,117 | |
| MANAGED HEALTHCARE—5.7% | | | | | | | | |
| HealthEquity, Inc.* | | | 11,578 | | | | 596,151 | |
| Humana, Inc. | | | 13,806 | | | | 5,512,460 | |
| UnitedHealth Group, Inc. | | | 30,834 | | | | 9,408,687 | |
| | | | | | | | 15,517,298 | |
| PHARMACEUTICALS—10.2% | | | | | | | | |
| AstraZeneca PLC# | | | 80,442 | | | | 4,034,971 | |
| Axsome Therapeutics, Inc.* | | | 15,001 | | | | 994,716 | |
| Catalent, Inc.* | | | 35,127 | | | | 3,083,097 | |
| Eli Lilly & Co. | | | 20,085 | | | | 2,620,289 | |
| Horizon Therapeutics PLC* | | | 56,266 | | | | 4,216,011 | |
| Ocular Therapeutix, Inc.* | | | 73,125 | | | | 694,688 | |
THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments October 31, 2020 (Continued)
| COMMON STOCKS—95.1% (CONT.) | | SHARES | | | VALUE | |
| PHARMACEUTICALS—10.2% (CONT.) | | | | | | | | |
| Provention Bio, Inc.* | | | 30,209 | | | $ | 358,279 | |
| Reata Pharmaceuticals, Inc., Cl. A* | | | 8,209 | | | | 958,072 | |
| Roche Holding AG# | | | 89,321 | | | | 3,571,947 | |
| Royalty Pharma PLC, Cl. A | | | 29,363 | | | | 1,077,622 | |
| Zoetis, Inc., Cl. A | | | 38,164 | | | | 6,050,902 | |
| | | | | | | | 27,660,594 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $193,184,973) | | | | | | | 257,498,458 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 897,366 | | | | 134,605 | |
| (Cost $4,038,147) | | | | | | | 134,605 | |
| WARRANTS—2.2% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—2.2% | | | | | | | | |
| Forte Biosciences, Inc., 2/20/21*,@ | | | 211,625 | | | | 5,840,004 | |
| (Cost $0) | | | | | | | 5,840,004 | |
| RIGHTS—0.5% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.5% | | | | | | | | |
| Tolero CDR*,@,(a),(c) | | | 1,956,996 | | | | 1,350,327 | |
| (Cost $1,044,370) | | | | | | | 1,350,327 | |
| Total Investments | | | | | | | | |
| (Cost $198,267,490) | | | 97.8 | % | | $ | 264,823,394 | |
| Affiliated Securities (Cost $4,038,147) | | | | | | | 134,605 | |
| Unaffiliated Securities (Cost $194,229,343) | | | | | | | 264,688,789 | |
| Other Assets in Excess of Liabilities | | | 2.2 | % | | | 6,072,156 | |
| NET ASSETS | | | 100.0 | % | | $ | 270,895,550 | |
| # | American Depositary Receipts. |
| (a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| (b) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 11 - Affiliated Securities. |
| (c) | Contingent Deferred Rights. |
| * | Non-income producing security. |
| @ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
| | | | | | | | | % of net assets | | | | | | % of net assets | |
| | | Acquisition | | | Acquisition | | | (Acquisition | | | Market | | | as of | |
| Security | | Date(s) | | | Cost | | | Date) | | | Value | | | 10/31/2020 | |
| Forte Biosciences, Inc. Warrants | | | 2/19/20 | | | $ | 0 | | | | 0.00 | % | | $ | 5,840,004 | | | | 2.15 | % |
| Prosetta Biosciences, Inc., Series D | | | 2/6/15 | | | | 4,038,147 | | | | 2.00 | % | | | 134,605 | | | | 0.05 | % |
| Tolero CDR | | | 2/6/17 | | | | 1,044,370 | | | | 0.90 | % | | | 1,350,327 | | | | 0.50 | % |
| Total | | | | | | | | | | | | | | $ | 7,324,936 | | | | 2.70 | % |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020
| | | Alger Capital | | | | |
| | | Appreciation Fund | | | Alger 25 Fund | |
| ASSETS: | | | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 3,336,076,719 | | | $ | 22,074,685 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | 2,775,000 | | | | — | |
| Cash and cash equivalents | | | 8,429,354 | | | | 466,920 | |
| Receivable for investment securities sold | | | 66,535,001 | | | | — | |
| Receivable for shares of beneficial interest sold | | | 1,486,663 | | | | — | |
| Dividends and interest receivable | | | 703,843 | | | | — | |
| Receivable from Investment Manager | | | — | | | | 11,979 | |
| Prepaid expenses | | | 204,004 | | | | 14,942 | |
| Total Assets | | | 3,416,210,584 | | | | 22,568,526 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 59,438,289 | | | | — | |
| Payable for shares of beneficial interest redeemed | | | 5,073,572 | | | | — | |
| Accrued investment advisory fees | | | 2,194,408 | | | | 97,969 | |
| Accrued transfer agent fees | | | 608,991 | | | | 207 | |
| Accrued distribution fees | | | 480,555 | | | | — | |
| Accrued printing fees | | | 114,799 | | | | 757 | |
| Accrued administrative fees | | | 82,331 | | | | 551 | |
| Accrued fund accounting fees | | | 77,902 | | | | 1,472 | |
| Accrued professional fees | | | 39,552 | | | | 20,992 | |
| Accrued shareholder administrative fees | | | 38,840 | | | | 242 | |
| Accrued custodian fees | | | 25,747 | | | | 9,129 | |
| Accrued trustee fees | | | 8,218 | | | | 54 | |
| Accrued tax payable | | | 2,245 | | | | 344 | |
| Accrued other expenses | | | 2,049 | | | | 1,146 | |
| Total Liabilities | | | 68,187,498 | | | | 132,863 | |
| NET ASSETS | | $ | 3,348,023,086 | | | $ | 22,435,663 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 1,609,733,782 | | | | 14,425,624 | |
| Distributable earnings | | | 1,738,289,304 | | | | 8,010,039 | |
| NET ASSETS | | $ | 3,348,023,086 | | | $ | 22,435,663 | |
| * Identified cost | | $ | 1,977,729,432 | (a) | | $ | 15,596,108 | (b) |
| ** Identified cost | | $ | 2,775,000 | (a) | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Capital | | | | |
| | | Appreciation Fund | | | Alger 25 Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 1,320,072,958 | | | $ | — | |
| Class C | | $ | 204,908,677 | | | $ | — | |
| Class P | | $ | — | | | $ | 21,764,490 | |
| Class P-2 | | $ | — | | | $ | 671,173 | |
| Class Z | | $ | 1,823,041,451 | | | $ | — | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 39,102,877 | | | | — | |
| Class C | | | 8,265,030 | | | | — | |
| Class P | | | — | | | | 1,294,345 | |
| Class P-2 | | | — | | | | 39,809 | |
| Class Z | | | 51,863,365 | | | | — | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 33.76 | | | $ | — | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 35.63 | | | $ | — | |
| Class C — Net Asset Value Per Share Class C | | $ | 24.79 | | | $ | — | |
| Class P — Net Asset Value Per Share Class P | | $ | — | | | $ | 16.82 | |
| Class P-2 — Net Asset Value Per Share Class P-2 | | $ | — | | | $ | 16.86 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 35.15 | | | $ | — | |
See Notes to Financial Statements.
| (a) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $2,010,415,342, amounted to $1,328,436,377 which consisted of aggregate gross unrealized appreciation of $1,365,154,678 and aggregate gross unrealized depreciation of $36,718,301. |
| (b) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $15,610,783, amounted to $6,463,902 which consisted of aggregate gross unrealized appreciation of $6,493,133 and aggregate gross unrealized depreciation of $29,231. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | | | | Alger Growth & | |
| | | Alger 35 Fund | | | Income Fund | |
| ASSETS: | | | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 13,592,158 | | | $ | 108,392,852 | |
| Cash and cash equivalents | | | 905,917 | | | | 605,561 | |
| Receivable for investment securities sold | | | — | | | | 660,322 | |
| Receivable for shares of beneficial interest sold | | | — | | | | 65,007 | |
| Dividends and interest receivable | | | 498 | | | | 173,657 | |
| Receivable from Investment Manager | | | 11,285 | | | | 244 | |
| Prepaid expenses | | | 16,399 | | | | 48,484 | |
| Total Assets | | | 14,526,257 | | | | 109,946,127 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 51,548 | | | | 644,566 | |
| Payable for shares of beneficial interest redeemed | | | — | | | | 87,533 | |
| Accrued investment advisory fees | | | 61,570 | | | | 48,276 | |
| Accrued professional fees | | | 21,265 | | | | 22,905 | |
| Accrued custodian fees | | | 8,662 | | | | 9,911 | |
| Accrued fund accounting fees | | | 1,298 | | | | 3,641 | |
| Accrued tax payable | | | 1,117 | | | | 2,519 | |
| Accrued printing | | | 536 | | | | 8,040 | |
| Accrued administrative fees | | | 351 | | | | 2,655 | |
| Accrued transfer agent fees | | | 210 | | | | 30,176 | |
| Accrued distribution fees | | | — | | | | 28,052 | |
| Accrued shareholder administrative fees | | | 141 | | | | 1,469 | |
| Accrued trustee fees | | | 34 | | | | 278 | |
| Accrued other expenses | | | 739 | | | | 5,932 | |
| Total Liabilities | | | 147,471 | | | | 895,953 | |
| NET ASSETS | | $ | 14,378,786 | | | $ | 109,050,174 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 8,362,182 | | | | 50,499,727 | |
| Distributable earnings | | | 6,016,604 | | | | 58,550,447 | |
| NET ASSETS | | $ | 14,378,786 | | | $ | 109,050,174 | |
| * Identified cost | | $ | 10,077,818 | (a) | | $ | 52,185,697 | (b) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | | | | Alger Growth & | |
| | | Alger 35 Fund | | | Income Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | — | | | $ | 74,250,864 | |
| Class C | | $ | — | | | $ | 13,126,917 | |
| Class P | | $ | 14,127,712 | | | $ | — | |
| Class P-2 | | $ | 251,074 | | | $ | — | |
| Class Z | | $ | — | | | $ | 21,672,393 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | — | | | | 1,692,057 | |
| Class C | | | — | | | | 303,757 | |
| Class P | | | 811,646 | | | | — | |
| Class P-2 | | | 14,401 | | | | — | |
| Class Z | | | — | | | | 493,279 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | — | | | $ | 43.88 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | — | | | $ | 46.31 | |
| Class C — Net Asset Value Per Share Class C | | $ | — | | | $ | 43.22 | |
| Class P — Net Asset Value Per Share Class P | | $ | 17.41 | | | $ | — | |
| Class P-2 — Net Asset Value Per Share Class P-2 | | $ | 17.43 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | — | | | $ | 43.94 | |
See Notes to Financial Statements.
| (a) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $10,077,838, amounted to $3,514,320 which consisted of aggregate gross unrealized appreciation of $3,575,547 and aggregate gross unrealized depreciation of $61,227. |
| (b) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $51,620,630, amounted to $56,772,222 which consisted of aggregate gross unrealized appreciation of $59,429,934 and aggregate gross unrealized depreciation of $2,657,712. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Mid Cap | | | Alger Mid Cap Focus | |
| | | Growth Fund | | | Fund | |
| ASSETS: | | | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 233,563,750 | | | $ | 360,812,839 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | 1,232,942 | | | | — | |
| Cash and cash equivalents | | | 2,506,276 | | | | 19,649,253 | |
| Receivable for investment securities sold | | | — | | | | 3,753,347 | |
| Receivable for shares of beneficial interest sold | | | 90,036 | | | | 3,780,387 | |
| Dividends and interest receivable | | | 5,280 | | | | 6,244 | |
| Receivable from Investment Manager | | | 11,908 | | | | — | |
| Prepaid expenses | | | 71,498 | | | | 53,023 | |
| Total Assets | | | 237,481,690 | | | | 388,055,093 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 1,554,658 | | | | 11,823,869 | |
| Payable for shares of beneficial interest redeemed | | | 105,477 | | | | 610,976 | |
| Accrued investment advisory fees | | | 159,433 | | | | 214,717 | |
| Accrued distribution fees | | | 60,639 | | | | 15,203 | |
| Accrued transfer agent fees | | | 41,347 | | | | 4,949 | |
| Accrued professional fees | | | 37,454 | | | | 22,192 | |
| Accrued custodian fees | | | 25,839 | | | | 9,817 | |
| Accrued printing fees | | | 19,023 | | | | 3,857 | |
| Accrued fund accounting fees | | | 6,843 | | | | 7,709 | |
| Accrued administrative fees | | | 5,769 | | | | 8,435 | |
| Accrued shareholder administrative fees | | | 3,308 | | | | 3,068 | |
| Accrued tax payable | | | 3,139 | | | | 1,861 | |
| Accrued trustee fees | | | 549 | | | | 712 | |
| Accrued other expenses | | | 838 | | | | 150 | |
| Total Liabilities | | | 2,024,316 | | | | 12,727,515 | |
| NET ASSETS | | $ | 235,457,374 | | | $ | 375,327,578 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 149,284,361 | | | | 319,695,575 | |
| Distributable earnings | | | 86,173,013 | | | | 55,632,003 | |
| NET ASSETS | | $ | 235,457,374 | | | $ | 375,327,578 | |
| * Identified cost | | $ | 170,075,978 | (a) | | $ | 311,932,191 | (b) |
| ** Identified cost | | $ | 2,188,245 | (a) | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Mid Cap Growth | | | Alger Mid Cap Focus | |
| | | Fund | | | Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 187,551,851 | | | $ | — | |
| Class B | | $ | 15,410,739 | | | $ | — | |
| Class C | | $ | 5,691,062 | | | $ | — | |
| Class I | | $ | — | | | $ | 67,796,006 | |
| Class Z | | $ | 26,803,722 | | | $ | 307,531,572 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 9,723,097 | | | | — | |
| Class B | | | 1,048,349 | | | | — | |
| Class C | | | 399,017 | | | | — | |
| Class I | | | — | | | | 4,490,476 | |
| Class Z | | | 1,365,115 | | | | 20,305,005 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 19.29 | | | $ | — | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 20.36 | | | $ | — | |
| Class B — Net Asset Value Per Share Class B | | $ | 14.70 | | | $ | — | |
| Class C — Net Asset Value Per Share Class C | | $ | 14.26 | | | $ | — | |
| Class I — Net Asset Value Per Share Class I | | $ | — | | | $ | 15.10 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 19.63 | | | $ | 15.15 | |
See Notes to Financial Statements.
| (a) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $175,700,312, amounted to $59,096,380 which consisted of aggregate gross unrealized appreciation of $65,253,936 and aggregate gross unrealized depreciation of $6,157,556. |
| (b) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $312,393,083, amounted to $48,419,756 which consisted of aggregate gross unrealized appreciation of $53,726,668 and aggregate gross unrealized depreciation of $5,306,912. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Weatherbie | | | | |
| | | Specialized Growth | | | Alger Small Cap | |
| | | Fund | | | Growth Fund | |
| ASSETS: | | | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 883,187,480 | | | $ | 348,595,659 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | 34,721 | | | | 1,807,603 | |
| Cash and cash equivalents | | | 71,821,782 | | | | 64,929,222 | |
| Receivable for investment securities sold | | | 9,711,965 | | | | — | |
| Receivable for shares of beneficial interest sold | | | 4,425,982 | | | | 1,337,554 | |
| Dividends and interest receivable | | | 68,961 | | | | — | |
| Receivable from Investment Manager | | | 1,345 | | | | 3,724 | |
| Prepaid expenses | | | 83,442 | | | | 88,340 | |
| Total Assets | | | 969,335,678 | | | | 416,762,102 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 8,589,904 | | | | 25,388,724 | |
| Payable for shares of beneficial interest redeemed | | | 1,475,354 | | | | 658,568 | |
| Accrued investment advisory fees | | | 676,398 | | | | 269,208 | |
| Accrued transfer agent fees | | | 113,738 | | | | 43,843 | |
| Accrued distribution fees | | | 109,554 | | | | 62,181 | |
| Accrued printing fees | | | 47,983 | | | | 23,063 | |
| Accrued professional fees | | | 36,345 | | | | 41,385 | |
| Accrued administrative fees | | | 22,973 | | | | 9,140 | |
| Accrued fund accounting | | | 22,366 | | | | 9,702 | |
| Accrued custodian fees | | | 14,592 | | | | 21,512 | |
| Accrued shareholder administrative fees | | | 9,726 | | | | 4,542 | |
| Accrued tax payable | | | 4,713 | | | | 2,325 | |
| Accrued trustee fees | | | 2,147 | | | | 829 | |
| Accrued other expenses | | | 2,857 | | | | 2,188 | |
| Total Liabilities | | | 11,128,650 | | | | 26,537,210 | |
| NET ASSETS | | $ | 958,207,028 | | | $ | 390,224,892 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 699,795,799 | | | | 258,027,400 | |
| Distributable earnings | | | 258,411,229 | | | | 132,197,492 | |
| NET ASSETS | | $ | 958,207,028 | | | $ | 390,224,892 | |
| * Identified cost | | $ | 658,135,672 | (a) | | $ | 213,247,365 | (b) |
| ** Identified cost | | $ | 1,041,633 | (a) | | $ | 2,028,096 | (b) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Weatherbie | | | | |
| | | Specialized Growth | | | Alger Small Cap | |
| | | Fund | | | Growth Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 174,709,084 | | | $ | 187,488,516 | |
| Class B | | $ | — | | | $ | 5,094,923 | |
| Class C | | $ | 64,496,752 | | | $ | 18,365,194 | |
| Class I | | $ | 66,294,079 | | | $ | — | |
| Class Y | | $ | 32,701,841 | | | $ | — | |
| Class Z | | $ | 620,005,272 | | | $ | 179,276,259 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 10,007,953 | | | | 14,886,166 | |
| Class B | | | — | | | | 573,727 | |
| Class C | | | 5,600,725 | | | | 2,175,783 | |
| Class I | | | 3,696,112 | | | | — | |
| Class Y | | | 1,799,347 | | | | — | |
| Class Z | | | 33,189,532 | | | | 13,682,548 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 17.46 | | | $ | 12.59 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 18.42 | | | $ | 13.29 | |
| Class B — Net Asset Value Per Share Class B | | $ | — | | | $ | 8.88 | |
| Class C — Net Asset Value Per Share Class C | | $ | 11.52 | | | $ | 8.44 | |
| Class I — Net Asset Value Per Share Class I | | $ | 17.94 | | | $ | — | |
| Class Y — Net Asset Value Per Share Class Y | | $ | 18.17 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 18.68 | | | $ | 13.10 | |
See Notes to Financial Statements.
| (a) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $673,659,291, amounted to $209,562,910 which consisted of aggregate gross unrealized appreciation of $245,098,807 and aggregate gross unrealized depreciation of $35,535,897. |
| | | |
| (b) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $218,414,694, amounted to $131,988,568 which consisted of aggregate gross unrealized appreciation of $143,271,802 and aggregate gross unrealized depreciation of $11,283,234. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Small Cap | | | Alger International | |
| | | Focus Fund | | | Focus Fund | |
| ASSETS: | | | | | | | | |
Investments in unaffiliated securities, at value (Identified cost below )* see accompanying
schedules of investments | | $ | 5,810,449,940 | | | $ | 153,168,797 | |
| Cash and cash equivalents | | | 142,998,721 | | | | 1,262,993 | |
| Foreign cash † | | | — | | | | 160,804 | |
| Receivable for investment securities sold | | | — | | | | 961,658 | |
| Receivable for shares of beneficial interest sold | | | 15,154,974 | | | | 2,118 | |
| Dividends and interest receivable | | | — | | | | 299,209 | |
| Receivable for foreign capital gain tax | | | — | | | | 115,559 | |
| Receivable from Investment Manager | | | — | | | | 15,720 | |
| Prepaid expenses | | | 255,726 | | | | 59,931 | |
| Total Assets | | | 5,968,859,361 | | | | 156,046,789 | |
| | | | | | | | | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 4,650,529 | | | | 463,814 | |
| Payable for shares of beneficial interest redeemed | | | 16,168,400 | | | | 25,905 | |
| Accrued investment advisory fees | | | 3,960,759 | | | | 96,140 | |
| Accrued transfer agent fees | | | 625,735 | | | | 34,993 | |
| Accrued distribution fees | | | 430,910 | | | | 45,113 | |
| Accrued printing fees | | | 254,884 | | | | 19,130 | |
| Accrued administrative fees | | | 145,228 | | | | 3,724 | |
| Accrued fund accounting fees | | | 139,246 | | | | 5,101 | |
| Accrued shareholder administrative fees | | | 57,563 | | | | 2,162 | |
| Accrued professional fees | | | 35,341 | | | | 32,792 | |
| Accrued custodian fees | | | 33,258 | | | | 23,513 | |
| Accrued trustee fees | | | 13,602 | | | | 370 | |
| Accrued tax payable | | | 748 | | | | 8,447 | |
| Accrued other expenses | | | 2,579 | | | | 3,388 | |
| Total Liabilities | | | 26,518,782 | | | | 764,592 | |
| NET ASSETS | | $ | 5,942,340,579 | | | $ | 155,282,197 | |
| | | | | | | | | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 4,288,747,349 | | | | 129,341,127 | |
| Distributable earnings | | | 1,653,593,230 | | | | 25,941,070 | |
| NET ASSETS | | $ | 5,942,340,579 | | | $ | 155,282,197 | |
| * Identified cost | | $ | 4,029,977,818 | (a) | | $ | 110,867,688 | (b) |
| † Cost of foreign cash | | $ | — | | | $ | 163,044 | (b) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Small Cap Focus | | | Alger International | |
| | | Fund | | | Focus Fund | |
| NET ASSETS BY CLASS: | | | | | | | | |
| Class A | | $ | 566,606,029 | | | $ | 120,831,895 | |
| Class B | | $ | — | | | $ | 18,427,416 | |
| Class C | | $ | 248,576,894 | | | $ | 2,759,778 | |
| Class I | | $ | 360,756,236 | | | $ | 642,178 | |
| Class Y | | $ | 266,569,609 | | | $ | — | |
| Class Z | | $ | 4,499,831,811 | | | $ | 12,620,930 | |
| | | | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | | | | | |
| Class A | | | 21,606,595 | | | | 6,472,644 | |
| Class B | | | — | | | | 1,138,305 | |
| Class C | | | 10,623,893 | | | | 176,029 | |
| Class I | | | 13,394,432 | | | | 34,306 | |
| Class Y | | | 9,725,958 | | | | — | |
| Class Z | | | 164,190,746 | | | | 667,816 | |
| | | | | | | | | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 26.22 | | | $ | 18.67 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 27.68 | | | $ | 19.70 | |
| Class B — Net Asset Value Per Share Class B | | $ | — | | | $ | 16.19 | |
| Class C — Net Asset Value Per Share Class C | | $ | 23.40 | | | $ | 15.68 | |
| Class I — Net Asset Value Per Share Class I | | $ | 26.93 | | | $ | 18.72 | |
| Class Y — Net Asset Value Per Share Class Y | | $ | 27.41 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 27.41 | | | $ | 18.90 | |
See Notes to Financial Statements.
| (a) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $4,063,273,049, amounted to $1,747,176,891 which consisted of aggregate gross unrealized appreciation of $1,975,272,523 and aggregate gross unrealized depreciation of $228,095,632. |
| | | |
| (b) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $112,959,568, amounted to $40,209,229 which consisted of aggregate gross unrealized appreciation of $43,286,197 and aggregate gross unrealized depreciation of $3,076,968. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Health | |
| | | Sciences Fund | |
| ASSETS: | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedule of investments | | $ | 264,688,789 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedule of investments | | | 134,605 | |
| Cash and cash equivalents | | | 6,148,853 | |
| Receivable for shares of beneficial interest sold | | | 1,010,517 | |
| Dividends and interest receivable | | | 157,906 | |
| Prepaid expenses | | | 47,175 | |
| Total Assets | | | 272,187,845 | |
| | | | | |
| LIABILITIES: | | | | |
| Payable for shares of beneficial interest redeemed | | | 982,369 | |
| Accrued investment advisory fees | | | 132,840 | |
| Accrued transfer agent fees | | | 55,865 | |
| Accrued distribution fees | | | 39,101 | |
| Accrued professional fees | | | 31,926 | |
| Accrued custodian fees | | | 12,938 | |
| Accrued printing fees | | | 9,354 | |
| Accrued fund accounting fees | | | 7,912 | |
| Accrued administrative fees | | | 6,642 | |
| Accrued tax payable | | | 4,713 | |
| Accrued shareholder administrative fees | | | 3,226 | |
| Accrued trustee fees | | | 706 | |
| Accrued other expenses | | | 4,703 | |
| Total Liabilities | | | 1,292,295 | |
| NET ASSETS | | $ | 270,895,550 | |
| | | | | |
| NET ASSETS CONSIST OF: | | | | |
| Paid in capital (par value of $.001 per share) | | | 174,407,313 | |
| Distributable earnings | | | 96,488,237 | |
| NET ASSETS | | $ | 270,895,550 | |
| * Identified cost | | $ | 194,229,343 | (a) |
| ** Identified cost | | $ | 4,038,147 | (a) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2020 (Continued)
| | | Alger Health Sciences | |
| | | Fund | |
| NET ASSETS BY CLASS: | | | | |
| Class A | | $ | 127,924,502 | |
| Class C | | $ | 11,862,247 | |
| Class Z | | $ | 131,108,801 | |
| | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | | | | |
| Class A | | | 4,029,158 | |
| Class C | | | 499,573 | |
| Class Z | | | 4,098,069 | |
| | | | | |
| NET ASSET VALUE PER SHARE: | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 31.75 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 33.51 | |
| Class C — Net Asset Value Per Share Class C | | $ | 23.74 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 31.99 | |
See Notes to Financial Statements.
| (a) | At October 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $201,028,388, amounted to $63,795,006 which consisted of aggregate gross unrealized appreciation of $73,837,071 and aggregate gross unrealized depreciation of $10,042,065. |
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2020
| | | Alger Capital | | | | |
| | | Appreciation Fund | | | Alger 25 Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 23,160,273 | | | $ | 168,797 | |
| Interest | | | 46,412 | | | | 1,166 | |
| Other Income | | | 17,849 | | | | — | |
| Total Income | | | 23,224,534 | | | | 169,963 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 23,089,935 | | | | 147,149 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 3,108,646 | | | | — | |
| Class B | | | 45,168 | | | | — | |
| Class C | | | 2,189,283 | | | | — | |
| Shareholder servicing fees — Note 3(k) | | | — | | | | 384 | |
| Shareholder administrative fees — Note 3(f) | | | 402,645 | | | | 1,792 | |
| Administration fees — Note 3(b) | | | 845,064 | | | | 5,060 | |
| Custodian fees | | | 172,095 | | | | 46,916 | |
| Interest expenses | | | 23,505 | | | | 16 | |
| Transfer agent fees — Note 3(f) | | | 1,328,483 | | | | 1,538 | |
| Printing fees | | | 224,692 | | | | 3,777 | |
| Professional fees | | | 144,445 | | | | 34,618 | |
| Registration fees | | | 94,624 | | | | 40,552 | |
| Trustee fees — Note 3(g) | | | 99,900 | | | | 596 | |
| Fund accounting fees | | | 411,797 | | | | 13,221 | |
| Other expenses | | | 170,794 | | | | 3,965 | |
| Total Expenses | | | 32,351,076 | | | | 299,584 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | — | | | | (133,553 | ) |
| Net Expenses | | | 32,351,076 | | | | 166,031 | |
| NET INVESTMENT INCOME (LOSS) | | | (9,126,542 | ) | | | 3,932 | |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized gain on unaffiliated investments | | | 459,117,848 | | | | 1,624,580 | |
| Net realized (loss) on foreign currency transactions | | | (78,862 | ) | | | — | |
| Net change in unrealized appreciation on unaffiliated investments | | | 458,064,458 | | | | 4,505,895 | |
| Net change in unrealized (depreciation) on foreign currency | | | (3,561 | ) | | | — | |
| Net realized and unrealized gain on investments and foreign currency | | | 917,099,883 | | | | 6,130,475 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 907,973,341 | | | $ | 6,134,407 | |
| * Foreign withholding taxes | | $ | 280,741 | | | $ | 1,542 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2020 (Continued)
| | | | | | Alger Growth & | |
| | | Alger 35 Fund | | | Income Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 61,201 | | | $ | 2,970,221 | |
| Interest | | | 1,346 | | | | 4,126 | |
| Income from securities lending | | | — | | | | 862 | |
| Total Income | | | 62,547 | | | | 2,975,209 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 92,501 | | | | 557,987 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | — | | | | 185,547 | |
| Class C | | | — | | | | 142,728 | |
| Shareholder servicing fees — Note 3(f) | | | 131 | | | | — | |
| Shareholder administrative fees — Note 3(f) | | | 1,140 | | | | 16,912 | |
| Administration fees — Note 3(b) | | | 3,180 | | | | 30,689 | |
| Custodian fees | | | 42,825 | | | | 51,755 | |
| Interest expenses | | | 6 | | | | 417 | |
| Transfer agent fees — Note 3(f) | | | 945 | | | | 69,145 | |
| Printing fees | | | 2,467 | | | | 14,666 | |
| Professional fees | | | 34,497 | | | | 38,079 | |
| Registration fees | | | 40,440 | | | | 52,642 | |
| Trustee fees — Note 3(g) | | | 373 | | | | 3,849 | |
| Fund accounting fees | | | 12,325 | | | | 26,595 | |
| Other expenses | | | 3,419 | | | | 21,313 | |
| Total Expenses | | | 234,249 | | | | 1,212,324 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (129,916 | ) | | | (10,208 | ) |
| Net Expenses | | | 104,333 | | | | 1,202,116 | |
| NET INVESTMENT INCOME (LOSS) | | | (41,786 | ) | | | 1,773,093 | |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized gain on unaffiliated investments | | | 2,591,700 | | | | 1,585,950 | |
| Net change in unrealized appreciation on unaffiliated investments | | | 2,214,765 | | | | 1,439,738 | |
| Net change in unrealized appreciation on foreign currency | | | 21 | | | | — | |
| Net realized and unrealized gain on investments and foreign currency | | | 4,806,486 | | | | 3,025,688 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 4,764,700 | | | $ | 4,798,781 | |
| * Foreign withholding taxes | | $ | 65 | | | $ | 19,378 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2020 (Continued)
| | | Alger Mid Cap Growth | | | Alger Mid Cap Focus | |
| | | Fund | | | Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 1,024,399 | | | $ | 111,752 | |
| Interest | | | 13,340 | | | | 5,970 | |
| Other Income | | | 22,247 | | | | — | |
| Total Income | | | 1,059,986 | | | | 117,722 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 1,476,240 | | | | 938,266 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 387,214 | | | | — | |
| Class B | | | 136,013 | | | | — | |
| Class C | | | 57,430 | | | | — | |
| Class I | | | — | | | | 73,074 | |
| Shareholder administrative fees — Note 3(f) | | | 30,749 | | | | 13,404 | |
| Administration fees — Note 3(b) | | | 53,417 | | | | 36,862 | |
| Custodian fees | | | 115,302 | | | | 54,236 | |
| Interest expenses | | | 331 | | | | 1,428 | |
| Transfer agent fees — Note 3(f) | | | 108,992 | | | | 16,932 | |
| Printing fees | | | 38,185 | | | | 9,934 | |
| Professional fees | | | 60,149 | | | | 38,600 | |
| Registration fees | | | 65,769 | | | | 67,743 | |
| Fund accounting fees | | | 41,271 | | | | 28,654 | |
| Trustee fees — Note 3(g) | | | 6,295 | | | | 4,169 | |
| Other expenses | | | 34,683 | | | | 5,517 | |
| Total Expenses | | | 2,612,040 | | | | 1,288,819 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (111,429 | ) | | | (57,824 | ) |
| Net Expenses | | | 2,500,611 | | | | 1,230,995 | |
| NET INVESTMENT LOSS | | | (1,440,625 | ) | | | (1,113,273 | ) |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized gain on unaffiliated investments | | | 27,184,561 | | | | 9,490,123 | |
| Net realized gain (loss) on foreign currency transactions | | | 2,121 | | | | (19 | ) |
| Net change in unrealized appreciation on unaffiliated investments | | | 42,832,619 | | | | 48,509,336 | |
| Net change in unrealized (depreciation) on affiliated investments | | | (199,845 | ) | | | — | |
| Net change in unrealized appreciation on foreign currency | | | 21 | | | | — | |
| Net realized and unrealized gain on investments and foreign currency | | | 69,819,477 | | | | 57,999,440 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 68,378,852 | | | $ | 56,886,167 | |
| * Foreign withholding taxes | | $ | 3,684 | | | $ | 1,166 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2020 (Continued)
| | | Alger Weatherbie
Specialized Growth | | |
Alger Small Cap | |
| | | Fund | | | Growth Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 1,170,229 | | | $ | 413,751 | |
| Interest | | | 112,463 | | | | 57,160 | |
| Total Income | | | 1,282,692 | | | | 470,911 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 5,833,828 | | | | 1,878,223 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 383,743 | | | | 360,415 | |
| Class B | | | — | | | | 46,913 | |
| Class C | | | 541,885 | | | | 100,429 | |
| Class I | | | 178,455 | | | | — | |
| Shareholder administrative fees — Note 3(f) | | | 85,525 | | | | 33,516 | |
| Administration fees — Note 3(b) | | | 198,071 | | | | 63,767 | |
| Custodian fees | | | 79,117 | | | | 96,772 | |
| Transfer agent fees — Note 3(f) | | | 263,726 | | | | 103,926 | |
| Printing fees | | | 110,743 | | | | 41,980 | |
| Professional fees | | | 71,745 | | | | 64,032 | |
| Registration fees | | | 141,957 | | | | 68,824 | |
| Fund accounting fees | | | 109,649 | | | | 48,992 | |
| Trustee fees — Note 3(g) | | | 23,162 | | | | 7,185 | |
| Other expenses | | | 42,520 | | | | 33,518 | |
| Total Expenses | | | 8,064,126 | | | | 2,948,492 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (15,769 | ) | | | (51,759 | ) |
| Net Expenses | | | 8,048,357 | | | | 2,896,733 | |
| NET INVESTMENT LOSS | | | (6,765,665 | ) | | | (2,425,822 | ) |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | |
| Net realized gain on unaffiliated investments | | | 53,346,045 | | | | 2,220,607 | |
| Net realized gain on foreign currency transactions | | | 34 | | | | 21 | |
| Net change in unrealized appreciation on unaffiliated investments | | | 170,488,681 | | | | 79,250,855 | |
| Net change in unrealized (depreciation) on affiliated investments | | | (210,641 | ) | | | (46,126 | ) |
| Net realized and unrealized gain on investments and foreign currency | | | 223,624,119 | | | | 81,425,357 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 216,858,454 | | | $ | 78,999,535 | |
| * Foreign withholding taxes | | $ | 40,147 | | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2020 (Continued)
| | | Alger Small Cap Focus | | | Alger International | |
| | | Fund | | | Focus Fund | |
| INCOME: | | | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 4,389,087 | | | $ | 1,307,534 | |
| Interest | | | 624,617 | | | | 10,266 | |
| Other Income | | | — | | | | 19,888 | |
| Total Income | | | 5,013,704 | | | | 1,337,688 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 35,082,647 | | | | 979,111 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 1,312,888 | | | | 267,173 | |
| Class B | | | — | | | | 168,431 | |
| Class C | | | 2,295,078 | | | | 32,489 | |
| Class I | | | 1,176,410 | | | | 2,035 | |
| Shareholder administrative fees — Note 3(f) | | | 516,822 | | | | 22,042 | |
| Administration fees — Note 3(b) | | | 1,286,364 | | | | 37,923 | |
| Custodian fees | | | 171,432 | | | | 123,678 | |
| Interest expenses | | | — | | | | 1,571 | |
| Transfer agent fees — Note 3(f) | | | 1,503,819 | | | | 95,110 | |
| Printing fees | | | 485,430 | | | | 30,047 | |
| Professional fees | | | 167,473 | | | | 60,710 | |
| Registration fees | | | 435,538 | | | | 76,891 | |
| Fund accounting fees | | | 632,404 | | | | 35,545 | |
| Trustee fees — Note 3(g) | | | 148,357 | | | | 4,551 | |
| Other expenses | | | 246,879 | | | | 22,616 | |
| Total Expenses | | | 45,461,541 | | | | 1,959,923 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (7,468 | ) | | | (162,779 | ) |
| Net Expenses | | | 45,454,073 | | | | 1,797,144 | |
| NET INVESTMENT LOSS | | | (40,440,369 | ) | | | (459,456 | ) |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | | | | | |
| Net realized gain (loss) on unaffiliated investments | | | (66,037,625 | ) | | | 5,182,419 | |
| Net realized (loss) on foreign currency transactions | | | — | | | | (56,447 | ) |
| Net change in unrealized appreciation on unaffiliated investments | | | 1,477,061,927 | | | | 26,507,936 | |
| Net change in unrealized appreciation on foreign currency | | | — | | | | 11,797 | |
| Net realized and unrealized gain on investments and foreign currency | | | 1,411,024,302 | | | | 31,645,705 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 1,370,583,933 | | | $ | 31,186,249 | |
| * Foreign withholding taxes | | $ | — | | | $ | 188,211 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2020 (Continued)
| | | Alger Health Sciences | |
| | | Fund | |
| INCOME: | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 1,812,575 | |
| Interest | | | 5,432 | |
| Total Income | | | 1,818,007 | |
| | | | | |
| EXPENSES: | | | | |
| Investment advisory fees — Note 3(a) | | | 1,384,198 | |
| Distribution fees — Note 3(c) | | | | |
| Class A | | | 295,375 | |
| Class C | | | 113,404 | |
| Shareholder administrative fees — Note 3(f) | | | 33,584 | |
| Administration fees — Note 3(b) | | | 69,210 | |
| Custodian fees | | | 72,614 | |
| Interest expenses | | | 1,184 | |
| Transfer agent fees — Note 3(f) | | | 110,264 | |
| Printing fees | | | 37,244 | |
| Professional fees | | | 46,132 | |
| Registration fees | | | 62,546 | |
| Fund accounting fees | | | 45,336 | |
| Trustee fees — Note 3(g) | | | 8,070 | |
| Other expenses | | | 27,192 | |
| Total Expenses | | | 2,306,353 | |
| NET INVESTMENT LOSS | | | (488,346 | ) |
| | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | | | | |
| Net realized gain on unaffiliated investments | | | 32,284,862 | |
| Net realized gain on foreign currency transactions | | | 118 | |
| Net change in unrealized appreciation on unaffiliated investments | | | 35,208,193 | |
| Net change in unrealized (depreciation) on affiliated investments | | | (816,603 | ) |
| Net change in unrealized appreciation on foreign currency | | | 24 | |
| Net realized and unrealized gain on investments and foreign currency | | | 66,676,594 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 66,188,248 | |
| * Foreign withholding taxes | | $ | 62,367 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets
| | | Alger Capital Appreciation Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (9,126,542 | ) | | $ | (4,796,653 | ) |
| Net realized gain on investments and foreign currency | | | 459,038,986 | | | | 217,577,308 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 458,060,897 | | | | 181,857,597 | |
| Net increase in net assets resulting from operations | | | 907,973,341 | | | | 394,638,252 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (92,851,822 | ) | | | (118,060,867 | ) |
| Class B | | | (812,864 | ) | | | (1,233,773 | ) |
| Class C | | | (22,831,979 | ) | | | (29,263,718 | ) |
| Class Z | | | (109,764,275 | ) | | | (117,391,542 | ) |
| Total dividends and distributions to shareholders | | | (226,260,940 | ) | | | (265,949,900 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (127,292,115 | ) | | | (136,481,080 | ) |
| Class B | | | (9,299,807 | ) | | | (1,725,137 | ) |
| Class C | | | (55,925,340 | ) | | | (26,423,752 | ) |
| Class Z | | | 46,690,469 | | | | 95,557,167 | |
| Net decrease from shares of beneficial interest transactions — Note 6 | | | (145,826,793 | ) | | | (69,072,802 | ) |
| Total increase | | | 535,885,608 | | | | 59,615,550 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 2,812,137,478 | | | | 2,752,521,928 | |
| END OF PERIOD | | $ | 3,348,023,086 | | | $ | 2,812,137,478 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger 25 Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment income | | $ | 3,932 | | | $ | 51,768 | |
| Net realized gain on investments | | | 1,624,580 | | | | 201,448 | |
| Net change in unrealized appreciation on investments | | | 4,505,895 | | | | 1,552,559 | |
| Net increase in net assets resulting from operations | | | 6,134,407 | | | | 1,805,775 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class P | | | (170,106 | ) | | | (39,246 | ) |
| Class P-2 | | | (2,586 | ) | | | — | |
| Total dividends and distributions to shareholders | | | (172,692 | ) | | | (39,246 | ) |
| | | | | | | | | |
| Increase from shares of beneficial interest transactions: | | | | | | | | |
| Class P | | | 2,564,308 | | | | 475,653 | |
| Class P-2 | | | 305,722 | | | | 101,083 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 2,870,030 | | | | 576,736 | |
| Total increase | | | 8,831,745 | | | | 2,343,265 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 13,603,918 | | | | 11,260,653 | |
| END OF PERIOD | | $ | 22,435,663 | | | $ | 13,603,918 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger 35 Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment income (loss) | | $ | (41,786 | ) | | $ | 25,639 | |
| Net realized gain (loss) on investments and foreign currency | | | 2,591,700 | | | | (19,488 | ) |
| Net change in unrealized appreciation on investments and foreign currency | | | 2,214,786 | | | | 1,068,121 | |
| Net increase in net assets resulting from operations | | | 4,764,700 | | | | 1,074,272 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class P | | | (16,599 | ) | | | (87,537 | ) |
| Class P-2 | | | (166 | ) | | | (680 | ) |
| Total dividends and distributions to shareholders | | | (16,765 | ) | | | (88,217 | ) |
| | | | | | | | | |
| Increase from shares of beneficial interest transactions: | | | | | | | | |
| Class P | | | 350,508 | | | | 337,537 | |
| Class P-2 | | | 73,651 | | | | 730 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 424,159 | | | | 338,267 | |
| Total increase | | | 5,172,094 | | | | 1,324,322 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 9,206,692 | | | | 7,882,370 | |
| END OF PERIOD | | $ | 14,378,786 | | | $ | 9,206,692 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Growth & Income Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment income | | $ | 1,773,093 | | | $ | 1,908,291 | |
| Net realized gain on investments | | | 1,585,950 | | | | 4,117,426 | |
| Net change in unrealized appreciation on investments | | | 1,439,738 | | | | 8,762,349 | |
| Net increase in net assets resulting from operations | | | 4,798,781 | | | | 14,788,066 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (3,822,521 | ) | | | (4,267,931 | ) |
| Class C | | | (676,121 | ) | | | (860,393 | ) |
| Class Z | | | (1,411,694 | ) | | | (1,532,408 | ) |
| Total dividends and distributions to shareholders | | | (5,910,336 | ) | | | (6,660,732 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (1,102,296 | ) | | | (1,035,270 | ) |
| Class C | | | (1,751,688 | ) | | | (2,191,446 | ) |
| Class Z | | | (3,833,530 | ) | | | 411,883 | |
| Net decrease from shares of beneficial interest transactions — Note 6 | | | (6,687,514 | ) | | | (2,814,833 | ) |
| Total increase (decrease) | | | (7,799,069 | ) | | | 5,312,501 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 116,849,243 | | | | 111,536,742 | |
| END OF PERIOD | | $ | 109,050,174 | | | $ | 116,849,243 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Mid Cap Growth Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (1,440,625 | ) | | $ | (1,226,647 | ) |
| Net realized gain on investments and foreign currency | | | 27,186,682 | | | | 13,726,499 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 42,632,795 | | | | 6,223,169 | |
| Net increase in net assets resulting from operations | | | 68,378,852 | | | | 18,723,021 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (11,109,875 | ) | | | (6,913,344 | ) |
| Class B | | | (1,356,457 | ) | | | (922,266 | ) |
| Class C | | | (613,248 | ) | | | (462,452 | ) |
| Class Z | | | (1,392,461 | ) | | | (720,658 | ) |
| Total dividends and distributions to shareholders | | | (14,472,041 | ) | | | (9,018,720 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | 4,900,132 | | | | (7,132,064 | ) |
| Class B | | | (1,905,314 | ) | | | (2,176,257 | ) |
| Class C | | | (1,560,597 | ) | | | (1,838,948 | ) |
| Class Z | | | 3,662,413 | | | | 2,288,901 | |
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | | | 5,096,634 | | | | (8,858,368 | ) |
| Total increase | | | 59,003,445 | | | | 845,933 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 176,453,929 | | | | 175,607,996 | |
| END OF PERIOD | | $ | 235,457,374 | | | $ | 176,453,929 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Mid Cap Focus Fund | |
| | | | | | From June 14, 2019 | |
| | | For the | | | (commencement of | |
| | | Year Ended | | | operations) to | |
| | | | October 31, 2020 | | | | October 31, 2019 | |
| Net investment loss | | $ | (1,113,273 | ) | | $ | (80,734 | ) |
| Net realized gain (loss) on investments and foreign currency | | | 9,490,104 | | | | (1,625,476 | ) |
| Net change in unrealized appreciation on investments and foreign currency | | | 48,509,336 | | | | 371,312 | |
| Net increase (decrease) in net assets resulting from operations | | | 56,886,167 | | | | (1,334,898 | ) |
| | | | | | | | | |
| Increase from shares of beneficial interest transactions: | | | | | | | | |
| Class I | | | 50,845,888 | | | | 2,479,227 | |
| Class Z | | | 237,342,329 | | | | 29,108,865 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 288,188,217 | | | | 31,588,092 | |
| Total increase | | | 345,074,384 | | | | 30,253,194 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 30,253,194 | | | | — | |
| END OF PERIOD | | $ | 375,327,578 | | | $ | 30,253,194 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Weatherbie Specialized Growth Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (6,765,665 | ) | | $ | (4,429,177 | ) |
| Net realized gain on investments and foreign currency | | | 53,346,079 | | | | 15,654,402 | |
| Net change in unrealized appreciation on investments | | | 170,278,040 | | | | 19,596,739 | |
| Net increase in net assets resulting from operations | | | 216,858,454 | | | | 30,821,964 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (5,872,548 | ) | | | (8,577,662 | ) |
| Class C | | | (2,781,983 | ) | | | (3,989,889 | ) |
| Class I | | | (2,486,337 | ) | | | (2,940,481 | ) |
| Class Y | | | (527,262 | ) | | | (413,909 | ) |
| Class Z | | | (11,293,720 | ) | | | (10,810,370 | ) |
| Total dividends and distributions to shareholders | | | (22,961,850 | ) | | | (26,732,311 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (4,899,235 | ) | | | 27,097,922 | |
| Class C | | | 6,415,884 | | | | 9,110,599 | |
| Class I | | | (10,869,282 | ) | | | 20,352,474 | |
| Class Y | | | 11,917,428 | | | | 9,162,635 | |
| Class Z | | | 220,558,571 | | | | 136,427,172 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 223,123,366 | | | | 202,150,802 | |
| Total increase | | | 417,019,970 | | | | 206,240,455 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 541,187,058 | | | | 334,946,603 | |
| END OF PERIOD | | $ | 958,207,028 | | | $ | 541,187,058 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Small Cap Growth Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (2,425,822 | ) | | $ | (1,650,376 | ) |
| Net realized gain on investments and foreign currency | | | 2,220,628 | | | | 9,022,056 | |
| Net change in unrealized appreciation on investments | | | 79,204,729 | | | | 4,509,507 | |
| Net increase in net assets resulting from operations | | | 78,999,535 | | | | 11,881,187 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (6,939,023 | ) | | | (10,924,773 | ) |
| Class B | | | (349,658 | ) | | | (619,622 | ) |
| Class C | | | (491,758 | ) | | | (738,714 | ) |
| Class Z | | | (1,376,642 | ) | | | (1,257,803 | ) |
| Total dividends and distributions to shareholders | | | (9,157,081 | ) | | | (13,540,912 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | 27,313,206 | | | | 5,644,081 | |
| Class B | | | (802,698 | ) | | | (247,946 | ) |
| Class C | | | 9,409,589 | | | | 753,743 | |
| Class Z | | | 135,592,383 | | | | 9,134,248 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 171,512,480 | | | | 15,284,126 | |
| Total increase | | | 241,354,934 | | | | 13,624,401 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 148,869,958 | | | | 135,245,557 | |
| END OF PERIOD | | $ | 390,224,892 | | | $ | 148,869,958 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Small Cap Focus Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (40,440,369 | ) | | $ | (24,849,375 | ) |
| Net realized gain (loss) on investments and foreign currency | | | (66,037,625 | ) | | | 109,865,767 | |
| Net change in unrealized appreciation on investments | | | 1,477,061,927 | | | | 59,208,815 | |
| Net increase in net assets resulting from operations | | | 1,370,583,933 | | | | 144,225,207 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (12,366,187 | ) | | | (2,493,271 | ) |
| Class C | | | (4,565,291 | ) | | | (1,216,518 | ) |
| Class I | | | (11,171,919 | ) | | | (2,785,387 | ) |
| Class Y | | | (3,303,098 | ) | | | (204,286 | ) |
| Class Z | | | (66,937,210 | ) | | | (10,527,912 | ) |
| Total dividends and distributions to shareholders | | | (98,343,705 | ) | | | (17,227,374 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (90,496,777 | ) | | | 205,073,139 | |
| Class C | | | (24,308,168 | ) | | | 74,722,490 | |
| Class I | | | (226,680,974 | ) | | | 97,987,756 | |
| Class Y | | | 120,173,869 | | | | 70,358,202 | |
| Class Z | | | 1,144,959,252 | | | | 1,043,553,749 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 923,647,202 | | | | 1,491,695,336 | |
| Total increase | | | 2,195,887,430 | | | | 1,618,693,169 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 3,746,453,149 | | | | 2,127,759,980 | |
| END OF PERIOD | | $ | 5,942,340,579 | | | $ | 3,746,453,149 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger International Focus Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (459,456 | ) | | $ | (154,751 | ) |
| Net realized gain (loss) on investments, forward foreign currency contracts and foreign currency | | | 5,125,972 | | | | (11,595,078 | ) |
| Net change in unrealized appreciation on investments and foreign currency | | | 26,519,733 | | | | 26,857,357 | |
| Net increase in net assets resulting from operations | | | 31,186,249 | | | | 15,107,528 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (4,436,636 | ) | | | (2,881,102 | ) |
| Class B | | | (771,794 | ) | | | (467,635 | ) |
| Class C | | | (151,921 | ) | | | (92,353 | ) |
| Class I | | | (44,402 | ) | | | (57,640 | ) |
| Class Z | | | (626,032 | ) | | | (450,854 | ) |
| Total dividends and distributions to shareholders | | | (6,030,785 | ) | | | (3,949,584 | ) |
| | | | | | | | | |
| Decrease from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (566,538 | ) | | | (5,449,789 | ) |
| Class B | | | (2,317,236 | ) | | | (1,512,935 | ) |
| Class C | | | (1,405,415 | ) | | | (1,412,171 | ) |
| Class I | | | (459,458 | ) | | | (1,276,123 | ) |
| Class Z | | | (1,618,647 | ) | | | (2,221,033 | ) |
| Net decrease from shares of beneficial interest transactions — Note 6 | | | (6,367,294 | ) | | | (11,872,051 | ) |
| Total increase (decrease) | | | 18,788,170 | | | | (714,107 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 136,494,027 | | | | 137,208,134 | |
| END OF PERIOD | | $ | 155,282,197 | | | $ | 136,494,027 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Health Sciences Fund | |
| | | For the | | | For the | |
| | | Year Ended | | | Year Ended | |
| | | October 31, 2020 | | | October 31, 2019 | |
| Net investment loss | | $ | (488,346 | ) | | $ | (556,327 | ) |
| Net realized gain on investments and foreign currency | | | 32,284,980 | | | | 14,507,755 | |
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | | | 34,391,614 | | | | (12,063,682 | ) |
| Net increase in net assets resulting from operations | | | 66,188,248 | | | | 1,887,746 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (7,652,345 | ) | | | (8,894,519 | ) |
| Class C | | | (996,378 | ) | | | (1,259,487 | ) |
| Class Z | | | (5,601,401 | ) | | | (3,853,831 | ) |
| Total dividends and distributions to shareholders | | | (14,250,124 | ) | | | (14,007,837 | ) |
| | | | | | | | | |
| Increase (decrease) from shares of beneficial interest transactions: | | | | | | | | |
| Class A | | | (1,239,325 | ) | | | (16,012,044 | ) |
| Class C | | | (687,111 | ) | | | (3,330,267 | ) |
| Class Z | | | 24,802,883 | | | | 22,850,359 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 22,876,447 | | | | 3,508,048 | |
| Total increase (decrease) | | | 74,814,571 | | | | (8,612,043 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 196,080,979 | | | | 204,693,022 | |
| END OF PERIOD | | $ | 270,895,550 | | | $ | 196,080,979 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class A | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Capital Appreciation Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 27.12 | | | $ | 26.20 | | | $ | 25.86 | | | $ | 20.09 | | | $ | 21.83 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.12 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.02 | ) | | | – | |
| Net realized and unrealized gain (loss) on investments | | | 8.96 | | | | 3.53 | | | | 2.07 | | | | 5.96 | | | | (0.07 | ) |
| Total from investment operations | | | 8.84 | | | | 3.46 | | | | 2.01 | | | | 5.94 | | | | (0.07 | ) |
| Distributions from net realized gains | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) | | | (1.67 | ) |
| Net asset value, end of period | | $ | 33.76 | | | $ | 27.12 | | | $ | 26.20 | | | $ | 25.86 | | | $ | 20.09 | |
| Total return(ii) | | | 34.79 | % | | | 15.29 | % | | | 8.15 | % | | | 29.84 | % | | | (0.42 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 1,320,073 | | | $ | 1,174,346 | | | $ | 1,257,811 | | | $ | 1,506,389 | | | $ | 1,360,963 | |
| Ratio of gross expenses to average net assets | | | 1.17 | % | | | 1.21 | % | | | 1.21 | % | | | 1.23 | % | | | 1.22 | % |
| Ratio of net expenses to average net assets | | | 1.17 | % | | | 1.21 | % | | | 1.21 | % | | | 1.23 | % | | | 1.22 | % |
| Ratio of net investment loss to average net assets | | | (0.41 | )% | | | (0.27 | )% | | | (0.23 | )% | | | (0.10 | )% | | | (0.02 | )% |
| Portfolio turnover rate | | | 89.91 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % | | | 103.80 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class C | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Capital Appreciation Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 20.60 | | | $ | 20.69 | | | $ | 20.91 | | | $ | 16.39 | | | $ | 18.24 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.25 | ) | | | (0.20 | ) | | | (0.20 | ) | | | (0.15 | ) | | | (0.13 | ) |
| Net realized and unrealized gain (loss) on investments | | | 6.64 | | | | 2.65 | | | | 1.65 | | | | 4.84 | | | | (0.05 | ) |
| Total from investment operations | | | 6.39 | | | | 2.45 | | | | 1.45 | | | | 4.69 | | | | (0.18 | ) |
| Distributions from net realized gains | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) | | | (1.67 | ) |
| Net asset value, end of period | | $ | 24.79 | | | $ | 20.60 | | | $ | 20.69 | | | $ | 20.91 | | | $ | 16.39 | |
| Total return(ii) | | | 33.82 | % | | | 14.44 | % | | | 7.35 | % | | | 28.88 | % | | | (1.17 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 204,909 | | | $ | 219,511 | | | $ | 243,523 | | | $ | 297,044 | | | $ | 309,114 | |
| Ratio of gross expenses to average net assets | | | 1.91 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % | | | 1.98 | % |
| Ratio of net expenses to average net assets | | | 1.91 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % | | | 1.98 | % |
| Ratio of net investment loss to average net assets | | | (1.13 | )% | | | (1.01 | )% | | | (0.96 | )% | | | (0.83 | )% | | | (0.78 | )% |
| Portfolio turnover rate | | | 89.91 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % | | | 103.80 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class Z | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Capital Appreciation Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 28.06 | | | $ | 26.94 | | | $ | 26.46 | | | $ | 20.48 | | | $ | 22.15 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.03 | ) | | | 0.02 | | | | 0.03 | | | | 0.05 | | | | 0.06 | |
| Net realized and unrealized gain (loss) on investments | | | 9.32 | | | | 3.64 | | | | 2.12 | | | | 6.10 | | | | (0.06 | ) |
| Total from investment operations | | | 9.29 | | | | 3.66 | | | | 2.15 | | | | 6.15 | | | | – | |
| Distributions from net realized gains | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) | | | (1.67 | ) |
| Net asset value, end of period | | $ | 35.15 | | | $ | 28.06 | | | $ | 26.94 | | | $ | 26.46 | | | $ | 20.48 | |
| Total return(ii) | | | 35.26 | % | | | 15.69 | % | | | 8.51 | % | | | 30.25 | % | | | (0.08 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 1,823,041 | | | $ | 1,409,374 | | | $ | 1,240,605 | | | $ | 983,006 | | | $ | 735,889 | |
| Ratio of gross expenses to average net assets | | | 0.84 | % | | | 0.87 | % | | | 0.87 | % | | | 0.88 | % | | | 0.89 | % |
| Ratio of net expenses to average net assets | | | 0.84 | % | | | 0.87 | % | | | 0.87 | % | | | 0.88 | % | | | 0.89 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.09 | )% | | | 0.06 | % | | | 0.10 | % | | | 0.23 | % | | | 0.30 | % |
| Portfolio turnover rate | | | 89.91 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % | | | 103.80 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class P | |
| | | | | | | | | From 12/28/2017 | |
| | | | | | | | | (commencement | |
| | | Year ended | | | Year ended | | | of operations) to | |
| Alger 25 Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018(i) | |
| Net asset value, beginning of period | | $ | 12.26 | | | $ | 10.61 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income(ii) | | | – | (iii) | | | 0.05 | | | | – | (iii) |
| Net realized and unrealized gain on investments | | | 4.71 | | | | 1.64 | | | | 0.61 | |
| Total from investment operations | | | 4.71 | | | | 1.69 | | | | 0.61 | |
| Dividends from net investment income | | | (0.02 | ) | | | (0.04 | ) | | | – | |
| Distributions from net realized gains | | | (0.13 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 16.82 | | | $ | 12.26 | | | $ | 10.61 | |
| Total return(iv) | | | 38.86 | % | | | 15.98 | % | | | 6.10 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 21,764 | | | $ | 13,379 | | | $ | 11,161 | |
| Ratio of gross expenses to average net assets | | | 1.63 | % | | | 1.87 | % | | | 2.35 | % |
| Ratio of expense reimbursements to average net assets | | | (0.73 | )% | | | (1.32 | )% | | | (1.60 | )% |
| Ratio of net expenses to average net assets | | | 0.90 | % | | | 0.55 | % | | | 0.75 | % |
| Ratio of net investment income to average net assets | | | 0.03 | % | | | 0.42 | % | | | 0.01 | % |
| Portfolio turnover rate | | | 58.64 | % | | | 102.98 | % | | | 64.02 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the eleven months then ended. |
| (ii) | Amount was computed based on average shares outstanding during the period. |
| (iii) | Amount was less than $0.005 per share. |
| (iv) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class P-2 | |
| | | | | | | | | From 10/31/2018 | |
| | | | | | | | | (commencement | |
| | | Year ended | | | Year ended | | | of operations) to | |
| Alger 25 Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018(i),(ii) | |
| Net asset value, beginning of period | | $ | 12.29 | | | $ | 10.61 | | | $ | 10.61 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss)(iii) | | | (0.03 | ) | | | 0.03 | | | | – | |
| Net realized and unrealized gain on investments | | | 4.74 | | | | 1.65 | | | | – | |
| Total from investment operations | | | 4.71 | | | | 1.68 | | | | – | |
| Dividends from net investment income | | | (0.01 | ) | | | – | | | | – | |
| Distributions from net realized gains | | | (0.13 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 16.86 | | | $ | 12.29 | | | $ | 10.61 | |
| Total return(iv) | | | 38.70 | % | | | 15.83 | % | | | – | |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 671 | | | $ | 224 | | | $ | 100 | |
| Ratio of gross expenses to average net assets | | | 1.68 | % | | | 3.18 | % | | | – | |
| Ratio of expense reimbursements to average net assets | | | (0.70 | )% | | | (2.55 | )% | | | – | |
| Ratio of net expenses to average net assets | | | 0.98 | % | | | 0.63 | % | | | – | |
| Ratio of net investment income (loss) to average net assets | | | (0.19 | )% | | | 0.27 | % | | | – | |
| Portfolio turnover rate | | | 58.64 | % | | | 102.98 | % | | | 64.02 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the eleven months then ended. |
| (ii) | Class P-2 inception date was October 31, 2018, no income or expenses were recorded. |
| (iii) | Amount was computed based on average shares outstanding during the period. |
| (iv) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class P | |
| | | | | | | | | From 3/29/2018 | |
| | | | | | | | | (commencement | |
| | | Year ended | | | Year ended | | | of operations) to | |
| Alger 35 Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018(i) | |
| Net asset value, beginning of period | | $ | 11.61 | | | $ | 10.38 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss)(ii) | | | (0.05 | ) | | | 0.03 | | | | 0.01 | |
| Net realized and unrealized gain on investments | | | 5.87 | | | | 1.31 | | | | 0.37 | |
| Total from investment operations | | | 5.82 | | | | 1.34 | | | | 0.38 | |
| Dividends from net investment income | | | (0.02 | ) | | | (0.04 | ) | | | – | |
| Distributions from net realized gains | | | – | | | | (0.07 | ) | | | – | |
| Net asset value, end of period | | $ | 17.41 | | | $ | 11.61 | | | $ | 10.38 | |
| Total return(iii) | | | 50.22 | % | | | 13.19 | % | | | 3.80 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 14,128 | | | $ | 9,094 | | | $ | 7,782 | |
| Ratio of gross expenses to average net assets | | | 2.02 | % | | | 2.37 | % | | | 2.46 | % |
| Ratio of expense reimbursements to average net assets | | | (1.12 | )% | | | (1.97 | )% | | | (2.06 | )% |
| Ratio of net expenses to average net assets | | | 0.90 | % | | | 0.40 | % | | | 0.40 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.36 | )% | | | 0.30 | % | | | 0.23 | % |
| Portfolio turnover rate | | | 121.74 | % | | | 115.25 | % | | | 31.20 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the seven months then ended. |
| (ii) | Amount was computed based on average shares outstanding during the period. |
| (iii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class P-2 | |
| | | | | | | | | From 10/31/2018 | |
| | | | | | | | | (commencement | |
| | | Year ended | | | Year ended | | | of operations) to | |
| Alger 35 Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018(i),(ii) | |
| Net asset value, beginning of period | | $ | 11.65 | | | $ | 10.38 | | | $ | 10.38 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss)(iii) | | | (0.08 | ) | | | 0.01 | | | | – | |
| Net realized and unrealized gain on investments | | | 5.88 | | | | 1.33 | | | | – | |
| Total from investment operations | | | 5.80 | | | | 1.34 | | | | – | |
| Dividends from net investment income | | | (0.02 | ) | | | – | | | | – | |
| Distributions from net realized gains | | | – | | | | (0.07 | ) | | | – | |
| Net asset value, end of period | | $ | 17.43 | | | $ | 11.65 | | | $ | 10.38 | |
| Total return(iv) | | | 49.83 | % | | | 13.06 | % | | | – | |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 251 | | | $ | 113 | | | $ | 100 | |
| Ratio of gross expenses to average net assets | | | 2.10 | % | | | 4.43 | % | | | – | |
| Ratio of expense reimbursements to average net assets | | | (1.04 | )% | | | (3.81 | )% | | | – | |
| Ratio of net expenses to average net assets | | | 1.06 | % | | | 0.62 | % | | | – | |
| Ratio of net investment income (loss) to average net assets | | | (0.56 | )% | | | 0.09 | % | | | – | |
| Portfolio turnover rate | | | 121.74 | % | | | 115.25 | % | | | 31.20 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the seven months then ended. |
| (ii) | Class P-2 inception date was October 31, 2018, no income or expenses were recorded. |
| (iii) | Amount was computed based on average shares outstanding during the period. |
| (iv) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class A | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Growth & Income Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 43.55 | | | $ | 40.77 | | | $ | 39.68 | | | $ | 32.66 | | | $ | 33.37 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income(i) | | | 0.69 | | | | 0.70 | | | | 0.65 | | | | 0.56 | | | | 0.59 | |
| Net realized and unrealized gain on investments | | | 1.88 | | | | 4.54 | | | | 1.64 | | | | 6.97 | | | | 0.24 | |
| Total from investment operations | | | 2.57 | | | | 5.24 | | | | 2.29 | | | | 7.53 | | | | 0.83 | |
| Dividends from net investment income | | | (0.66 | ) | | | (0.61 | ) | | | (0.57 | ) | | | (0.50 | ) | | | (0.50 | ) |
| Distributions from net realized gains | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) | | | (1.04 | ) |
| Net asset value, end of period | | $ | 43.88 | | | $ | 43.55 | | | $ | 40.77 | | | $ | 39.68 | | | $ | 32.66 | |
| Total return(ii) | | | 5.98 | % | | | 13.94 | % | | | 5.78 | % | | | 23.22 | % | | | 2.62 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 74,251 | | | $ | 74,924 | | | $ | 70,859 | | | $ | 72,427 | | | $ | 64,123 | |
| Ratio of gross expenses to average net assets | | | 1.06 | % | | | 1.07 | % | | | 1.06 | % | | | 1.19 | % | | | 1.14 | % |
| Ratio of net expenses to average net assets | | | 1.06 | % | | | 1.07 | % | | | 1.06 | % | | | 1.19 | % | | | 1.14 | % |
| Ratio of net investment income to average net assets | | | 1.60 | % | | | 1.72 | % | | | 1.59 | % | | | 1.52 | % | | | 1.85 | % |
| Portfolio turnover rate | | | 9.29 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % | | | 5.36 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class C | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Growth & Income Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 42.93 | | | $ | 40.20 | | | $ | 39.14 | | | $ | 32.23 | | | $ | 32.95 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | |
| Net investment income(i) | | | 0.36 | | | | 0.39 | | | | 0.34 | | | | 0.28 | | | | 0.35 | |
| Net realized and unrealized gain on investments | | | 1.85 | | | | 4.49 | | | | 1.60 | | | | 6.88 | | | | 0.24 | |
| Total from investment operations | | | 2.21 | | | | 4.88 | | | | 1.94 | | | | 7.16 | | | | 0.59 | |
| Dividends from net investment income | | | (0.34 | ) | | | (0.30 | ) | | | (0.25 | ) | | | (0.24 | ) | | | (0.27 | ) |
| Distributions from net realized gains | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) | | | (1.04 | ) |
| Net asset value, end of period | | $ | 43.22 | | | $ | 42.93 | | | $ | 40.20 | | | $ | 39.14 | | | $ | 32.23 | |
| Total return(ii) | | | 5.19 | % | | | 13.12 | % | | | 4.96 | % | | | 22.28 | % | | | 1.87 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 13,127 | | | $ | 14,946 | | | $ | 16,074 | | | $ | 22,266 | | | $ | 20,790 | |
| Ratio of gross expenses to average net assets | | | 1.81 | % | | | 1.82 | % | | | 1.82 | % | | | 1.94 | % | | | 1.88 | % |
| Ratio of net expenses to average net assets | | | 1.81 | % | | | 1.82 | % | | | 1.82 | % | | | 1.94 | % | | | 1.88 | % |
| Ratio of net investment income to average net assets | | | 0.86 | % | | | 0.97 | % | | | 0.84 | % | | | 0.76 | % | | | 1.09 | % |
| Portfolio turnover rate | | | 9.29 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % | | | 5.36 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class Z | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Growth & Income Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 43.60 | | | $ | 40.81 | | | $ | 39.71 | | | $ | 32.69 | | | $ | 33.39 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income(i) | | | 0.86 | | | | 0.85 | | | | 0.80 | | | | 0.65 | | | | 0.67 | |
| Net realized and unrealized gain on investments | | | 1.88 | | | | 4.56 | | | | 1.64 | | | | 6.99 | | | | 0.26 | |
| Total from investment operations | | | 2.74 | | | | 5.41 | | | | 2.44 | | | | 7.64 | | | | 0.93 | |
| Dividends from net investment income | | | (0.82 | ) | | | (0.77 | ) | | | (0.71 | ) | | | (0.61 | ) | | | (0.59 | ) |
| Distributions from net realized gains | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) | | | (1.04 | ) |
| Net asset value, end of period | | $ | 43.94 | | | $ | 43.60 | | | $ | 40.81 | | | $ | 39.71 | | | $ | 32.69 | |
| Total return(ii) | | | 6.39 | % | | | 14.39 | % | | | 6.16 | % | | | 23.55 | % | | | 2.91 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 21,672 | | | $ | 26,979 | | | $ | 24,604 | | | $ | 22,487 | | | $ | 11,422 | |
| Ratio of gross expenses to average net assets | | | 0.73 | % | | | 0.76 | % | | | 0.76 | % | | | 0.90 | % | | | 0.87 | % |
| Ratio of expense reimbursements to average net assets | | | (0.04 | )% | | | (0.07 | )% | | | (0.05 | )% | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 0.69 | % | | | 0.69 | % | | | 0.71 | % | | | 0.90 | % | | | 0.87 | % |
| Ratio of net investment income to average net assets | | | 2.00 | % | | | 2.10 | % | | | 1.96 | % | | | 1.75 | % | | | 2.09 | % |
| Portfolio turnover rate | | | 9.29 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % | | | 5.36 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class A | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Mid Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 14.81 | | | $ | 14.13 | | | $ | 13.47 | | | $ | 10.20 | | | $ | 10.66 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.12 | ) | | | (0.09 | ) | | | (0.11 | ) | | | (0.07 | ) | | | (0.03 | ) |
| Net realized and unrealized gain (loss) on investments | | | 5.80 | | | | 1.48 | | | | 0.88 | | | | 3.34 | | | | (0.43 | ) |
| Total from investment operations | | | 5.68 | | | | 1.39 | | | | 0.77 | | | | 3.27 | | | | (0.46 | ) |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 19.29 | | | $ | 14.81 | | | $ | 14.13 | | | $ | 13.47 | | | $ | 10.20 | |
| Total return(ii) | | | 41.34 | % | | | 10.95 | % | | | 5.78 | % | | | 32.06 | % | | | (4.32 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 187,552 | | | $ | 139,110 | | | $ | 138,370 | | | $ | 136,795 | | | $ | 111,423 | |
| Ratio of gross expenses to average net assets | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % | | | 1.32 | % | | | 1.33 | % |
| Ratio of net expenses to average net assets | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % | | | 1.32 | % | | | 1.33 | % |
| Ratio of net investment loss to average net assets | | | (0.76 | )% | | | (0.65 | )% | | | (0.77 | )% | | | (0.55 | )% | | | (0.32 | )% |
| Portfolio turnover rate | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class B | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Mid Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 11.55 | | | $ | 11.22 | | | $ | 10.80 | | | $ | 8.23 | | | $ | 8.67 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.08 | ) | | | (0.10 | ) | | | (0.17 | ) | | | (0.12 | ) | | | (0.09 | ) |
| Net realized and unrealized gain (loss) on investments | | | 4.43 | | | | 1.14 | | | | 0.70 | | | | 2.69 | | | | (0.35 | ) |
| Total from investment operations | | | 4.35 | | | | 1.04 | | | | 0.53 | | | | 2.57 | | | | (0.44 | ) |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 14.70 | | | $ | 11.55 | | | $ | 11.22 | | | $ | 10.80 | | | $ | 8.23 | |
| Total return(ii) | | | 41.41 | % | | | 10.66 | % | | | 4.98 | % | | | 31.23 | % | | | (5.07 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 15,411 | | | $ | 13,772 | | | $ | 15,361 | | | $ | 18,375 | | | $ | 19,005 | |
| Ratio of gross expenses to average net assets | | | 2.03 | % | | | 2.04 | % | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % |
| Ratio of expense reimbursements to average net assets | | | (0.82 | )% | | | (0.47 | )% | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.21 | % | | | 1.57 | % | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % |
| Ratio of net investment loss to average net assets | | | (0.66 | )% | | | (0.92 | )% | | | (1.50 | )% | | | (1.28 | )% | | | (1.05 | )% |
| Portfolio turnover rate | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class C | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Mid Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 11.33 | | | $ | 11.08 | | | $ | 10.67 | | | $ | 8.15 | | | $ | 8.58 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.18 | ) | | | (0.16 | ) | | | (0.18 | ) | | | (0.13 | ) | | | (0.09 | ) |
| Net realized and unrealized gain (loss) on investments | | | 4.31 | | | | 1.12 | | | | 0.70 | | | | 2.65 | | | | (0.34 | ) |
| Total from investment operations | | | 4.13 | | | | 0.96 | | | | 0.52 | | | | 2.52 | | | | (0.43 | ) |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 14.26 | | | $ | 11.33 | | | $ | 11.08 | | | $ | 10.67 | | | $ | 8.15 | |
| Total return(ii) | | | 40.26 | % | | | 10.03 | % | | | 4.94 | % | | | 30.92 | % | | | (5.01 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 5,691 | | | $ | 6,014 | | | $ | 7,647 | | | $ | 15,438 | | | $ | 18,495 | |
| Ratio of gross expenses to average net assets | | | 2.10 | % | | | 2.14 | % | | | 2.11 | % | | | 2.13 | % | | | 2.16 | % |
| Ratio of net expenses to average net assets | | | 2.10 | % | | | 2.14 | % | | | 2.11 | % | | | 2.13 | % | | | 2.16 | % |
| Ratio of net investment loss to average net assets | | | (1.52 | )% | | | (1.48 | )% | | | (1.55 | )% | | | (1.35 | )% | | | (1.16 | )% |
| Portfolio turnover rate | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class Z | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Mid Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 15.01 | | | $ | 14.27 | | | $ | 13.56 | | | $ | 10.24 | | | $ | 10.67 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.07 | ) | | | (0.06 | ) | | | (0.07 | ) | | | (0.04 | ) | | | 0.04 | |
| Net realized and unrealized gain (loss) on investments | | | 5.89 | | | | 1.51 | | | | 0.89 | | | | 3.36 | | | | (0.47 | ) |
| Total from investment operations | | | 5.82 | | | | 1.45 | | | | 0.82 | | | | 3.32 | | | | (0.43 | ) |
| Distributions from net realized gains | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 19.63 | | | $ | 15.01 | | | $ | 14.27 | | | $ | 13.56 | | | $ | 10.24 | |
| Total return(ii) | | | 41.75 | % | | | 11.27 | % | | | 6.03 | % | | | 32.52 | % | | | (4.03 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 26,804 | | | $ | 17,558 | | | $ | 14,230 | | | $ | 13,306 | | | $ | 7,508 | |
| Ratio of gross expenses to average net assets | | | 0.99 | % | | | 1.03 | % | | | 1.03 | % | | | 1.07 | % | | | 1.23 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.02 | )% | | | (0.21 | )% |
| Ratio of net expenses to average net assets | | | 0.99 | % | | | 1.03 | % | | | 1.03 | % | | | 1.05 | % | | | 1.02 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.46 | )% | | | (0.38 | )% | | | (0.49 | )% | | | (0.29 | )% | | | 0.40 | % |
| Portfolio turnover rate | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % | | | 99.42 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class I | |
| | | Year ended | | | From 6/14/2019
(commencement
of operations) to | |
| Alger Mid Cap Focus Fund | | 10/31/2020 | | | 10/31/2019(i) | |
| Net asset value, beginning of period | | $ | 9.70 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | |
| Net investment loss(ii) | | | (0.14 | ) | | | (0.04 | ) |
| Net realized and unrealized gain (loss) on investments | | | 5.54 | | | | (0.26 | ) |
| Total from investment operations | | | 5.40 | | | | (0.30 | ) |
| Net asset value, end of period | | $ | 15.10 | | | $ | 9.70 | |
| Total return(iii) | | | 55.35 | % | | | (3.00 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 67,796 | | | $ | 2,023 | |
| Ratio of gross expenses to average net assets | | | 1.14 | % | | | 1.91 | % |
| Ratio of expense reimbursements to average net assets | | | (0.03 | )% | | | (0.71 | )% |
| Ratio of net expenses to average net assets | | | 1.11 | % | | | 1.20 | % |
| Ratio of net investment loss to average net assets | | | (1.04 | )% | | | (0.97 | )% |
| Portfolio turnover rate | | | 123.43 | % | | | 65.50 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the five months then ended. |
| (ii) | Amount was computed based on average shares outstanding during the period. |
| (iii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class Z | |
| | | | | | From 6/14/2019 | |
| | | | | | (commencement | |
| | | Year ended | | | of operations) to | |
| Alger Mid Cap Focus Fund | | 10/31/2020 | | | 10/31/2019(i) | |
| Net asset value, beginning of period | | $ | 9.71 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | |
| Net investment loss(ii) | | | (0.10 | ) | | | (0.03 | ) |
| Net realized and unrealized gain (loss) on investments | | | 5.54 | | | | (0.26 | ) |
| Total from investment operations | | | 5.44 | | | | (0.29 | ) |
| Net asset value, end of period | | $ | 15.15 | | | $ | 9.71 | |
| Total return(iii) | | | 55.70 | % | | | (2.80 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 307,532 | | | $ | 28,230 | |
| Ratio of gross expenses to average net assets | | | 0.91 | % | | | 1.86 | % |
| Ratio of expense reimbursements to average net assets | | | (0.05 | )% | | | (0.87 | )% |
| Ratio of net expenses to average net assets | | | 0.86 | % | | | 0.99 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.77 | )% | | | (0.74 | )% |
| Portfolio turnover rate | | | 123.43 | % | | | 65.50 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the five months then ended. |
| (ii) | Amount was computed based on average shares outstanding during the period. |
| (iii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class A | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Weatherbie Specialized Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 13.30 | | | $ | 13.08 | | | $ | 12.87 | | | $ | 10.64 | | | $ | 16.72 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.16 | ) | | | (0.14 | ) | | | (0.15 | ) | | | (0.12 | ) | | | (0.08 | ) |
| Net realized and unrealized gain (loss) on investments | | | 4.88 | | | | 1.39 | | | | 1.90 | | | | 3.58 | | | | (0.04 | ) |
| Total from investment operations | | | 4.72 | | | | 1.25 | | | | 1.75 | | | | 3.46 | | | | (0.12 | ) |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) |
| Net asset value, end of period | | $ | 17.46 | | | $ | 13.30 | | | $ | 13.08 | | | $ | 12.87 | | | $ | 10.64 | |
| Total return(ii) | | | 36.57 | % | | | 11.57 | % | | | 15.02 | % | | | 35.64 | % | | | (0.92 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 174,709 | | | $ | 140,368 | | | $ | 111,456 | | | $ | 84,644 | | | $ | 82,618 | |
| Ratio of gross expenses to average net assets | | | 1.27 | % | | | 1.31 | % | | | 1.33 | % | | | 1.35 | % | | | 1.35 | % |
| Ratio of net expenses to average net assets | | | 1.27 | % | | | 1.31 | % | | | 1.33 | % | | | 1.35 | % | | | 1.35 | % |
| Ratio of net investment loss to average net assets | | | (1.09 | )% | | | (1.08 | )% | | | (1.16 | )% | | | (1.02 | )% | | | (0.69 | )% |
| Portfolio turnover rate | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % |
See Notes to Financial Statements.
(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class C | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Weatherbie Specialized Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 9.01 | | | $ | 9.30 | | | $ | 9.65 | | | $ | 8.32 | | | $ | 14.45 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.19 | ) | | | (0.17 | ) | | | (0.18 | ) | | | (0.15 | ) | | | (0.13 | ) |
| Net realized and unrealized gain (loss) on investments | | | 3.26 | | | | 0.91 | | | | 1.37 | | | | 2.71 | | | | (0.04 | ) |
| Total from investment operations | | | 3.07 | | | | 0.74 | | | | 1.19 | | | | 2.56 | | | | (0.17 | ) |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) |
| Net asset value, end of period | | $ | 11.52 | | | $ | 9.01 | | | $ | 9.30 | | | $ | 9.65 | | | $ | 8.32 | |
| Total return(ii) | | | 35.62 | % | | | 10.70 | % | | | 14.11 | % | | | 34.64 | % | | | (1.72 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 64,497 | | | $ | 44,908 | | | $ | 36,325 | | | $ | 31,651 | | | $ | 32,183 | |
| Ratio of gross expenses to average net assets | | | 2.03 | % | | | 2.05 | % | | | 2.08 | % | | | 2.12 | % | | | 2.15 | % |
| Ratio of net expenses to average net assets | | | 2.03 | % | | | 2.05 | % | | | 2.08 | % | | | 2.12 | % | | | 2.15 | % |
| Ratio of net investment loss to average net assets | | | (1.85 | )% | | | (1.82 | )% | | | (1.91 | )% | | | (1.79 | )% | | | (1.49 | )% |
| Portfolio turnover rate | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class I | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Weatherbie Specialized Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 13.64 | | | $ | 13.38 | | | $ | 13.14 | | | $ | 10.84 | | | $ | 16.91 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.16 | ) | | | (0.14 | ) | | | (0.16 | ) | | | (0.11 | ) | | | (0.07 | ) |
| Net realized and unrealized gain (loss) on investments | | | 5.02 | | | | 1.43 | | | | 1.94 | | | | 3.64 | | | | (0.04 | ) |
| Total from investment operations | | | 4.86 | | | | 1.29 | | | | 1.78 | | | | 3.53 | | | | (0.11 | ) |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) |
| Net asset value, end of period | | $ | 17.94 | | | $ | 13.64 | | | $ | 13.38 | | | $ | 13.14 | | | $ | 10.84 | |
| Total return(ii) | | | 36.69 | % | | | 11.61 | % | | | 14.94 | % | | | 35.63 | % | | | (0.79 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 66,294 | | | $ | 58,615 | | | $ | 35,669 | | | $ | 23,374 | | | $ | 32,606 | |
| Ratio of gross expenses to average net assets | | | 1.24 | % | | | 1.26 | % | | | 1.35 | % | | | 1.35 | % | | | 1.25 | % |
| Ratio of net expenses to average net assets | | | 1.24 | % | | | 1.26 | % | | | 1.35 | % | | | 1.35 | % | | | 1.25 | % |
| Ratio of net investment loss to average net assets | | | (1.07 | )% | | | (1.03 | )% | | | (1.18 | )% | | | (0.99 | )% | | | (0.58 | )% |
| Portfolio turnover rate | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class Y | |
| | | | | | | | | | | | From 8/31/2017 | |
| | | | | | | | | | | | (commencement | |
| | | Year ended | | | Year ended | | | Year ended | | | of operations) to | |
| Alger Weatherbie Specialized Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017(i) | |
| Net asset value, beginning of period | | $ | 13.77 | | | $ | 13.44 | | | $ | 13.14 | | | $ | 12.27 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.11 | ) | | | (0.09 | ) | | | (0.10 | ) | | | (0.02 | ) |
| Net realized and unrealized gain on investments | | | 5.07 | | | | 1.45 | | | | 1.94 | | | | 0.89 | |
| Total from investment operations | | | 4.96 | | | | 1.36 | | | | 1.84 | | | | 0.87 | |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | – | |
| Net asset value, end of period | | $ | 18.17 | | | $ | 13.77 | | | $ | 13.44 | | | $ | 13.14 | |
| Total return(iii) | | | 37.08 | % | | | 12.12 | % | | | 15.45 | % | | | 7.09 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 32,702 | | | $ | 12,903 | | | $ | 3,832 | | | $ | 107 | |
| Ratio of gross expenses to average net assets | | | 0.94 | % | | | 0.97 | % | | | 1.05 | % | | | 9.54 | % |
| Ratio of expense reimbursements to average net assets | | | (0.07 | )% | | | (0.10 | )% | | | (0.18 | )% | | | (8.67 | )% |
| Ratio of net expenses to average net assets | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % |
| Ratio of net investment loss to average net assets | | | (0.69 | )% | | | (0.64 | )% | | | (0.67 | )% | | | (0.78 | )% |
| Portfolio turnover rate | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended. |
| (ii) | Amount was computed based on average shares outstanding during the period. |
| (iii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class Z | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Weatherbie Specialized Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 14.15 | | | $ | 13.80 | | | $ | 13.46 | | | $ | 11.04 | | | $ | 17.08 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.12 | ) | | | (0.10 | ) | | | (0.12 | ) | | | (0.09 | ) | | | (0.05 | ) |
| Net realized and unrealized gain (loss) on investments | | | 5.21 | | | | 1.48 | | | | 2.00 | | | | 3.74 | | | | (0.03 | ) |
| Total from investment operations | | | 5.09 | | | | 1.38 | | | | 1.88 | | | | 3.65 | | | | (0.08 | ) |
| Distributions from net realized gains | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) | | | (5.96 | ) |
| Net asset value, end of period | | $ | 18.68 | | | $ | 14.15 | | | $ | 13.80 | | | $ | 13.46 | | | $ | 11.04 | |
| Total return(ii) | | | 37.00 | % | | | 11.94 | % | | | 15.37 | % | | | 36.11 | % | | | (0.57 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 620,005 | | | $ | 284,393 | | | $ | 147,665 | | | $ | 52,736 | | | $ | 29,565 | |
| Ratio of gross expenses to average net assets | | | 0.94 | % | | | 0.97 | % | | | 1.00 | % | | | 1.06 | % | | | 1.01 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | (0.01 | )% | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 0.94 | % | | | 0.97 | % | | | 0.99 | % | | | 1.06 | % | | | 1.01 | % |
| Ratio of net investment loss to average net assets | | | (0.76 | )% | | | (0.73 | )% | | | (0.82 | )% | | | (0.77 | )% | | | (0.40 | )% |
| Portfolio turnover rate | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % | | | 164.36 | % |
See Notes to Financial Statements.
(i) Amount was computed based on average shares outstanding during the period.
(ii) Does not reflect the effect of sales charges, if applicable.
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class A | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 9.34 | | | $ | 9.54 | | | $ | 8.40 | | | $ | 6.15 | | | $ | 8.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.12 | ) | | | (0.11 | ) | | | (0.10 | ) | | | (0.06 | ) | | | (0.05 | ) |
| Net realized and unrealized gain (loss) on investments | | | 3.91 | | | | 0.85 | | | | 1.34 | | | | 2.31 | | | | (0.21 | ) |
| Total from investment operations | | | 3.79 | | | | 0.74 | | | | 1.24 | | | | 2.25 | | | | (0.26 | ) |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) |
| Net asset value, end of period | | $ | 12.59 | | | $ | 9.34 | | | $ | 9.54 | | | $ | 8.40 | | | $ | 6.15 | |
| Total return(ii) | | | 42.80 | % | | | 9.94 | % | | | 14.94 | % | | | 36.59 | % | | | (3.92 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 187,489 | | | $ | 116,308 | | | $ | 111,271 | | | $ | 102,318 | | | $ | 85,556 | |
| Ratio of gross expenses to average net assets | | | 1.33 | % | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % | | | 1.38 | % |
| Ratio of net expenses to average net assets | | | 1.33 | % | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % | | | 1.38 | % |
| Ratio of net investment loss to average net assets | | | (1.11 | )% | | | (1.17 | )% | | | (1.06 | )% | | | (0.88 | )% | | | (0.79 | )% |
| Portfolio turnover rate | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class B | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 6.74 | | | $ | 7.20 | | | $ | 6.42 | | | $ | 4.73 | | | $ | 6.57 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.08 | ) | | | (0.11 | ) | | | (0.13 | ) | | | (0.09 | ) | | | (0.08 | ) |
| Net realized and unrealized gain (loss) on investments | | | 2.76 | | | | 0.59 | | | | 1.01 | | | | 1.78 | | | | (0.17 | ) |
| Total from investment operations | | | 2.68 | | | | 0.48 | | | | 0.88 | | | | 1.69 | | | | (0.25 | ) |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) |
| Net asset value, end of period | | $ | 8.88 | | | $ | 6.74 | | | $ | 7.20 | | | $ | 6.42 | | | $ | 4.73 | |
| Total return(ii) | | | 42.68 | % | | | 9.51 | % | | | 13.93 | % | | | 35.73 | % | | | (4.80 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 5,095 | | | $ | 4,523 | | | $ | 4,958 | | | $ | 5,397 | | | $ | 4,998 | |
| Ratio of gross expenses to average net assets | | | 2.07 | % | | | 2.19 | % | | | 2.23 | % | | | 2.19 | % | | | 2.18 | % |
| Ratio of expense reimbursements to average net assets | | | (0.73 | )% | | | (0.41 | )% | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.34 | % | | | 1.78 | % | | | 2.23 | % | | | 2.19 | % | | | 2.18 | % |
| Ratio of net investment loss to average net assets | | | (1.11 | )% | | | (1.57 | )% | | | (1.90 | )% | | | (1.68 | )% | | | (1.59 | )% |
| Portfolio turnover rate | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class C | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 6.47 | | | $ | 6.99 | | | $ | 6.22 | | | $ | 4.59 | | | $ | 6.42 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.14 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.09 | ) | | | (0.08 | ) |
| Net realized and unrealized gain (loss) on investments | | | 2.65 | | | | 0.55 | | | | 0.99 | | | | 1.72 | | | | (0.16 | ) |
| Total from investment operations | | | 2.51 | | | | 0.42 | | | | 0.87 | | | | 1.63 | | | | (0.24 | ) |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) |
| Net asset value, end of period | | $ | 8.44 | | | $ | 6.47 | | | $ | 6.99 | | | $ | 6.22 | | | $ | 4.59 | |
| Total return(ii) | | | 41.76 | % | | | 8.87 | % | | | 14.22 | % | | | 35.51 | % | | | (4.79 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 18,365 | | | $ | 6,257 | | | $ | 5,837 | | | $ | 8,007 | | | $ | 8,708 | |
| Ratio of gross expenses to average net assets | | | 2.09 | % | | | 2.20 | % | | | 2.16 | % | | | 2.17 | % | | | 2.22 | % |
| Ratio of net expenses to average net assets | | | 2.09 | % | | | 2.20 | % | | | 2.16 | % | | | 2.17 | % | | | 2.22 | % |
| Ratio of net investment loss to average net assets | | | (1.90 | )% | | | (1.98 | )% | | | (1.82 | )% | | | (1.64 | )% | | | (1.64 | )% |
| Portfolio turnover rate | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class Z | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 9.66 | | | $ | 9.80 | | | $ | 8.60 | | | $ | 6.27 | | | $ | 8.10 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.10 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.04 | ) | | | (0.03 | ) |
| Net realized and unrealized gain (loss) on investments | | | 4.08 | | | | 0.87 | | | | 1.36 | | | | 2.37 | | | | (0.21 | ) |
| Total from investment operations | | | 3.98 | | | | 0.80 | | | | 1.30 | | | | 2.33 | | | | (0.24 | ) |
| Distributions from net realized gains | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | | | | (1.59 | ) |
| Net asset value, end of period | | $ | 13.10 | | | $ | 9.66 | | | $ | 9.80 | | | $ | 8.60 | | | $ | 6.27 | |
| Total return(ii) | | | 43.38 | % | | | 10.33 | % | | | 15.30 | % | | | 37.16 | % | | | (3.55 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 179,276 | | | $ | 21,782 | | | $ | 13,179 | | | $ | 26,953 | | | $ | 21,357 | |
| Ratio of gross expenses to average net assets | | | 1.00 | % | | | 1.12 | % | | | 1.12 | % | | | 1.08 | % | | | 1.06 | % |
| Ratio of expense reimbursements to average net assets | | | (0.03 | )% | | | (0.13 | )% | | | (0.13 | )% | | | (0.09 | )% | | | (0.07 | )% |
| Ratio of net expenses to average net assets | | | 0.97 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % |
| Ratio of net investment loss to average net assets | | | (0.81 | )% | | | (0.78 | )% | | | (0.65 | )% | | | (0.50 | )% | | | (0.41 | )% |
| Portfolio turnover rate | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % | | | 55.25 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class A | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Small Cap Growth Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 19.93 | | | $ | 18.86 | | | $ | 14.91 | | | $ | 11.16 | | | $ | 10.95 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.25 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.11 | ) | | | (0.09 | ) |
| Net realized and unrealized gain on investments | | | 7.03 | | | | 1.41 | | | | 4.26 | | | | 3.86 | | | | 0.30 | |
| Total from investment operations | | | 6.78 | | | | 1.22 | | | | 4.09 | | | | 3.75 | | | | 0.21 | |
| Dividends from net investment income | | | (0.19 | ) | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 26.22 | | | $ | 19.93 | | | $ | 18.86 | | | $ | 14.91 | | | $ | 11.16 | |
| Total return(ii) | | | 34.74 | % | | | 6.59 | % | | | 27.72 | % | | | 33.60 | % | | | 1.92 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 566,606 | | | $ | 523,291 | | | $ | 300,066 | | | $ | 77,791 | | | $ | 23,653 | |
| Ratio of gross expenses to average net assets | | | 1.22 | % | | | 1.19 | % | | | 1.18 | % | | | 1.22 | % | | | 1.36 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.02 | )% | | | (0.11 | )% |
| Ratio of net expenses to average net assets | | | 1.22 | % | | | 1.19 | % | | | 1.18 | % | | | 1.20 | % | | | 1.25 | % |
| Ratio of net investment loss to average net assets | | | (1.11 | )% | | | (0.95 | )% | | | (0.92 | )% | | | (0.86 | )% | | | (0.84 | )% |
| Portfolio turnover rate | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | | Class C | |
| | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | |
| Alger Small Cap Focus Fund | | | 10/31/2020 | | | | 10/31/2019 | | | | 10/31/2018 | | | | 10/31/2017 | | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 17.85 | | | $ | 17.04 | | | $ | 13.58 | | | $ | 10.25 | | | $ | 10.12 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.37 | ) | | | (0.31 | ) | | | (0.27 | ) | | | (0.20 | ) | | | (0.15 | ) |
| Net realized and unrealized gain on investments | | | 6.30 | | | | 1.27 | | | | 3.87 | | | | 3.53 | | | | 0.28 | |
| Total from investment operations | | | 5.93 | | | | 0.96 | | | | 3.60 | | | | 3.33 | | | | 0.13 | |
| Dividends from net investment income | | | (0.08 | ) | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 23.40 | | | $ | 17.85 | | | $ | 17.04 | | | $ | 13.58 | | | $ | 10.25 | |
| Total return(ii) | | | 33.85 | % | | | 5.76 | % | | | 26.82 | % | | | 32.49 | % | | | 1.28 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 248,577 | | | $ | 212,737 | | | $ | 131,655 | | | $ | 48,345 | | | $ | 15,928 | |
| Ratio of gross expenses to average net assets | | | 1.94 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % | | | 2.12 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.02 | )% | | | (0.13 | )% |
| Ratio of net expenses to average net assets | | | 1.94 | % | | | 1.95 | % | | | 1.94 | % | | | 1.95 | % | | | 1.99 | % |
| Ratio of net investment loss to average net assets | | | (1.83 | )% | | | (1.71 | )% | | | (1.66 | )% | | | (1.61 | )% | | | (1.57 | )% |
| Portfolio turnover rate | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | | Class I | |
| | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | |
| Alger Small Cap Focus Fund | | | 10/31/2020 | | | | 10/31/2019 | | | | 10/31/2018 | | | | 10/31/2017 | | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 20.44 | | | $ | 19.34 | | | $ | 15.28 | | | $ | 11.44 | | | $ | 11.22 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.24 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.11 | ) | | | (0.09 | ) |
| Net realized and unrealized gain on investments | | | 7.22 | | | | 1.44 | | | | 4.37 | | | | 3.95 | | | | 0.31 | |
| Total from investment operations | | | 6.98 | | | | 1.25 | | | | 4.20 | | | | 3.84 | | | | 0.22 | |
| Dividends from net investment income | | | (0.19 | ) | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 26.93 | | | $ | 20.44 | | | $ | 19.34 | | | $ | 15.28 | | | $ | 11.44 | |
| Total return(ii) | | | 34.86 | % | | | 6.58 | % | | | 27.77 | % | | | 33.57 | % | | | 1.96 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 360,756 | | | $ | 455,937 | | | $ | 340,636 | | | $ | 109,146 | | | $ | 75,648 | |
| Ratio of gross expenses to average net assets | | | 1.15 | % | | | 1.18 | % | | | 1.17 | % | | | 1.21 | % | | | 1.32 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.01 | )% | | | (0.09 | )% |
| Ratio of net expenses to average net assets | | | 1.15 | % | | | 1.18 | % | | | 1.17 | % | | | 1.20 | % | | | 1.23 | % |
| Ratio of net investment loss to average net assets | | | (1.04 | )% | | | (0.93 | )% | | | (0.90 | )% | | | (0.80 | )% | | | (0.81 | )% |
| Portfolio turnover rate | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | | Class Y | |
| | | | | | | | | | | | | | | | From 3/1/2017 | |
| | | | | | | | | | | | | | | | (commencement | |
| | | | Year ended | | | | Year ended | | | | Year ended | | | | of operations) to | |
| Alger Small Cap Focus Fund | | | 10/31/2020 | | | | 10/31/2019 | | | | 10/31/2018 | | | | to10 /31/2017(i) | |
| Net asset value, beginning of period | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 12.93 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.18 | ) | | | (0.14 | ) | | | (0.12 | ) | | | (0.08 | ) |
| Net realized and unrealized gain on investments | | | 7.36 | | | | 1.48 | | | | 4.42 | | | | 2.59 | |
| Total from investment operations | | | 7.18 | | | | 1.34 | | | | 4.30 | | | | 2.51 | |
| Dividends from net investment income | | | (0.26 | ) | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | |
| Net asset value, end of period | | $ | 27.41 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | |
| Total return(iii) | | | 35.32 | % | | | 6.96 | % | | | 28.13 | % | | | 19.41 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 266,570 | | | $ | 94,694 | | | $ | 25,691 | | | $ | 3,279 | |
| Ratio of gross expenses to average net assets | | | 0.84 | % | | | 0.87 | % | | | 0.88 | % | | | 1.51 | % |
| Ratio of expense reimbursements to average net assets | | | – | (iv) | | | (0.02 | )% | | | – | | | | (0.61 | )% |
| Ratio of net expenses to average net assets | | | 0.84 | % | | | 0.85 | % | | | 0.88 | % | | | 0.90 | % |
| Ratio of net investment loss to average net assets | | | (0.74 | )% | | | (0.64 | )% | | | (0.63 | )% | | | (0.83 | )% |
| Portfolio turnover rate | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % |
See Notes to Financial Statements.
| (i) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the twelve months then ended. |
| (ii) | Amount was computed based on average shares outstanding during the period. |
| (iii) | Does not reflect the effect of sales charges, if applicable. |
| (iv) | Amount was more than (0.005)%. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | | Class Z | |
| | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | |
| Alger Small Cap Focus Fund | | | 10/31/2020 | | | | 10/31/2019 | | | | 10/31/2018 | | | | 10/31/2017 | | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 11.53 | | | $ | 11.28 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.18 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.08 | ) | | | (0.07 | ) |
| Net realized and unrealized gain on investments | | | 7.36 | | | | 1.47 | | | | 4.42 | | | | 3.99 | | | | 0.32 | |
| Total from investment operations | | | 7.18 | | | | 1.34 | | | | 4.30 | | | | 3.91 | | | | 0.25 | |
| Dividends from net investment income | | | (0.26 | ) | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 27.41 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 11.53 | |
| Total return(ii) | | | 35.30 | % | | | 6.96 | % | | | 28.13 | % | | | 33.91 | % | | | 2.22 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 4,499,832 | | | $ | 2,459,793 | | | $ | 1,329,712 | | | $ | 350,097 | | | $ | 68,253 | |
| Ratio of gross expenses to average net assets | | | 0.85 | % | | | 0.86 | % | | | 0.87 | % | | | 0.90 | % | | | 1.01 | % |
| Ratio of net expenses to average net assets | | | 0.85 | % | | | 0.86 | % | | | 0.87 | % | | | 0.90 | % | | | 1.01 | % |
| Ratio of net investment loss to average net assets | | | (0.74 | )% | | | (0.62 | )% | | | (0.61 | )% | | | (0.58 | )% | | | (0.58 | )% |
| Portfolio turnover rate | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % | | | 75.50 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | | Class A | |
| | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | | | | Year ended | |
| Alger International Focus Fund | | | 10/31/2020 | | | | 10/31/2019 | | | | 10/31/2018 | | | | 10/31/2017 | | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 15.51 | | | $ | 14.30 | | | $ | 17.58 | | | $ | 14.58 | | | $ | 15.57 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.06 | ) | | | (0.02 | ) | | | 0.06 | | | | 0.13 | | | | 0.16 | |
| Net realized and unrealized gain (loss) on investments | | | 3.91 | | | | 1.66 | | | | (2.46 | ) | | | 3.11 | | | | (1.14 | ) |
| Total from investment operations | | | 3.85 | | | | 1.64 | | | | (2.40 | ) | | | 3.24 | | | | (0.98 | ) |
| Dividends from net investment income | | | (0.69 | ) | | | (0.43 | ) | | | (0.88 | ) | | | (0.24 | ) | | | (0.01 | ) |
| Net asset value, end of period | | $ | 18.67 | | | $ | 15.51 | | | $ | 14.30 | | | $ | 17.58 | | | $ | 14.58 | |
| Total return(ii) | | | 25.69 | % | | | 11.99 | % | | | (14.35 | )% | | | 22.63 | % | | | (6.32 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 120,832 | | | $ | 100,814 | | | $ | 98,105 | | | $ | 119,477 | | | $ | 107,398 | |
| Ratio of gross expenses to average net assets | | | 1.34 | % | | | 1.37 | % | | | 1.29 | % | | | 1.34 | % | | | 1.35 | % |
| Ratio of net expenses to average net assets | | | 1.34 | % | | | 1.37 | % | | | 1.29 | % | | | 1.34 | % | | | 1.35 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.37 | )% | | | (0.11 | )% | | | 0.38 | % | | | 0.83 | % | | | 1.08 | % |
| Portfolio turnover rate | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class B | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 13.44 | | | $ | 12.38 | | | $ | 15.35 | | | $ | 12.76 | | | $ | 13.71 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.02 | ) | | | (0.04 | ) | | | (0.06 | ) | | | 0.02 | | | | 0.05 | |
| Net realized and unrealized gain (loss) on investments | | | 3.38 | | | | 1.44 | | | | (2.13 | ) | | | 2.73 | | | | (1.00 | ) |
| Total from investment operations | | | 3.36 | | | | 1.40 | | | | (2.19 | ) | | | 2.75 | | | | (0.95 | ) |
| Dividends from net investment income | | | (0.61 | ) | | | (0.34 | ) | | | (0.78 | ) | | | (0.16 | ) | | | – | |
| Net asset value, end of period | | $ | 16.19 | | | $ | 13.44 | | | $ | 12.38 | | | $ | 15.35 | | | $ | 12.76 | |
| Total return(ii) | | | 25.83 | % | | | 11.82 | % | | | (15.00 | )% | | | 21.71 | % | | | (6.86 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 18,427 | | | $ | 17,646 | | | $ | 17,639 | | | $ | 24,777 | | | $ | 25,033 | |
| Ratio of gross expenses to average net assets | | | 2.05 | % | | | 2.09 | % | | | 2.01 | % | | | 2.05 | % | | | 2.06 | % |
| Ratio of expense reimbursements to average net assets | | | (0.88 | )% | | | (0.51 | )% | | | – | | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.17 | % | | | 1.58 | % | | | 2.01 | % | | | 2.05 | % | | | 2.06 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.18 | )% | | | (0.30 | )% | | | (0.40 | )% | | | 0.13 | % | | | 0.37 | % |
| Portfolio turnover rate | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class C | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 13.11 | | | $ | 12.07 | | | $ | 14.98 | | | $ | 12.44 | | | $ | 13.57 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.15 | ) | | | (0.12 | ) | | | (0.06 | ) | | | 0.01 | | | | 0.04 | |
| Net realized and unrealized gain (loss) on investments | | | 3.29 | | | | 1.41 | | | | (2.09 | ) | | | 2.66 | | | | (0.99 | ) |
| Total from investment operations | | | 3.14 | | | | 1.29 | | | | (2.15 | ) | | | 2.67 | | | | (0.95 | ) |
| Dividends from net investment income | | | (0.57 | ) | | | (0.25 | ) | | | (0.76 | ) | | | (0.13 | ) | | | (0.18 | ) |
| Net asset value, end of period | | $ | 15.68 | | | $ | 13.11 | | | $ | 12.07 | | | $ | 14.98 | | | $ | 12.44 | |
| Total return(ii) | | | 24.68 | % | | | 11.07 | % | | | (15.08 | )% | | | 21.70 | % | | | (7.04 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 2,760 | | | $ | 3,603 | | | $ | 4,712 | | | $ | 12,130 | | | $ | 15,190 | |
| Ratio of gross expenses to average net assets | | | 2.13 | % | | | 2.23 | % | | | 2.09 | % | | | 2.13 | % | | | 2.14 | % |
| Ratio of net expenses to average net assets | | | 2.13 | % | | | 2.23 | % | | | 2.09 | % | | | 2.13 | % | | | 2.14 | % |
| Ratio of net investment income (loss) to average net assets | | | (1.13 | )% | | | (0.99 | )% | | | (0.41 | )% | | | 0.06 | % | | | 0.29 | % |
| Portfolio turnover rate | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class I | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 15.54 | | | $ | 14.31 | | | $ | 17.54 | | | $ | 14.55 | | | $ | 15.55 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.02 | ) | | | 0.01 | | | | 0.09 | | | | 0.17 | | | | 0.21 | |
| Net realized and unrealized gain (loss) on investments | | | 3.93 | | | | 1.67 | | | | (2.48 | ) | | | 3.09 | | | | (1.16 | ) |
| Total from investment operations | | | 3.91 | | | | 1.68 | | | | (2.39 | ) | | | 3.26 | | | | (0.95 | ) |
| Dividends from net investment income | | | (0.73 | ) | | | (0.45 | ) | | | (0.84 | ) | | | (0.27 | ) | | | (0.05 | ) |
| Net asset value, end of period | | $ | 18.72 | | | $ | 15.54 | | | $ | 14.31 | | | $ | 17.54 | | | $ | 14.55 | |
| Total return(ii) | | | 25.98 | % | | | 12.41 | % | | | (14.27 | )% | | | 22.84 | % | | | (6.12 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 642 | | | $ | 970 | | | $ | 2,156 | | | $ | 1,742 | | | $ | 14,202 | |
| Ratio of gross expenses to average net assets | | | 1.34 | % | | | 1.48 | % | | | 1.19 | % | | | 1.48 | % | | | 1.33 | % |
| Ratio of expense reimbursements to average net assets | | | (0.27 | )% | | | (0.36 | )% | | | (0.04 | )% | | | (0.33 | )% | | | (0.18 | )% |
| Ratio of net expenses to average net assets | | | 1.07 | % | | | 1.12 | % | | | 1.15 | % | | | 1.15 | % | | | 1.15 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.10 | )% | | | 0.06 | % | | | 0.51 | % | | | 1.14 | % | | | 1.43 | % |
| Portfolio turnover rate | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class Z | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger International Focus Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 15.69 | | | $ | 14.46 | | | $ | 17.77 | | | $ | 14.74 | | | $ | 15.73 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income(i) | | | — | (ii) | | | 0.05 | | | | 0.12 | | | | 0.20 | | | | 0.23 | |
| Net realized and unrealized gain (loss) on investments | | | 3.98 | | | | 1.67 | | | | (2.48 | ) | | | 3.14 | | | | (1.15 | ) |
| Total from investment operations | | | 3.98 | | | | 1.72 | | | | (2.36 | ) | | | 3.34 | | | | (0.92 | ) |
| Dividends from net investment income | | | (0.77 | ) | | | (0.49 | ) | | | (0.95 | ) | | | (0.31 | ) | | | (0.07 | ) |
| Net asset value, end of period | | $ | 18.90 | | | $ | 15.69 | | | $ | 14.46 | | | $ | 17.77 | | | $ | 14.74 | |
| Total return(iii) | | | 26.23 | % | | | 12.64 | % | | | (14.03 | )% | | | 23.16 | % | | | (5.88 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 12,621 | | | $ | 13,462 | | | $ | 14,597 | | | $ | 21,317 | | | $ | 18,477 | |
| Ratio of gross expenses to average net assets | | | 1.02 | % | | | 1.10 | % | | | 1.01 | % | | | 1.03 | % | | | 1.04 | % |
| Ratio of expense reimbursements to average net assets | | | (0.13 | )% | | | (0.21 | )% | | | (0.12 | )% | | | (0.14 | )% | | | (0.15 | )% |
| Ratio of net expenses to average net assets | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % |
| Ratio of net investment income to average net assets | | | 0.01 | % | | | 0.36 | % | | | 0.71 | % | | | 1.27 | % | | | 1.57 | % |
| Portfolio turnover rate | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % | | | 134.84 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Amount was less than $0.005 per share. |
| (iii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class A | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Health Sciences Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 26.55 | | | $ | 28.04 | | | $ | 25.16 | | | $ | 16.01 | | | $ | 21.94 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.09 | ) | | | (0.09 | ) | | | (0.19 | ) | | | (0.19 | ) | | | (0.15 | ) |
| Net realized and unrealized gain (loss) on investments | | | 7.20 | | | | 0.48 | | | | 3.82 | | | | 9.34 | | | | (2.39 | ) |
| Total from investment operations | | | 7.11 | | | | 0.39 | | | | 3.63 | | | | 9.15 | | | | (2.54 | ) |
| Distributions from net realized gains | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | | | | (3.39 | ) |
| Net asset value, end of period | | $ | 31.75 | | | $ | 26.55 | | | $ | 28.04 | | | $ | 25.16 | | | $ | 16.01 | |
| Total return(ii) | | | 28.09 | % | | | 1.96 | % | | | 14.92 | % | | | 57.15 | % | | | (14.06 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 127,925 | | | $ | 108,095 | | | $ | 131,731 | | | $ | 95,913 | | | $ | 68,686 | |
| Ratio of gross expenses to average net assets | | | 1.04 | % | | | 1.12 | % | | | 1.15 | % | | | 1.38 | % | | | 1.41 | % |
| Ratio of net expenses to average net assets | | | 1.04 | % | | | 1.12 | % | | | 1.15 | % | | | 1.38 | % | | | 1.41 | % |
| Ratio of net investment loss to average net assets | | | (0.30 | )% | | | (0.34 | )% | | | (0.68 | )% | | | (0.86 | )% | | | (0.87 | )% |
| Portfolio turnover rate | | | 131.29 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % | | | 93.49 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class C | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Health Sciences Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 20.44 | | | $ | 22.21 | | | $ | 20.23 | | | $ | 12.98 | | | $ | 18.53 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.23 | ) | | | (0.23 | ) | | | (0.31 | ) | | | (0.28 | ) | | | (0.24 | ) |
| Net realized and unrealized gain (loss) on investments | | | 5.44 | | | | 0.34 | | | | 3.04 | | | | 7.53 | | | | (1.92 | ) |
| Total from investment operations | | | 5.21 | | | | 0.11 | | | | 2.73 | | | | 7.25 | | | | (2.16 | ) |
| Distributions from net realized gains | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | | | | (3.39 | ) |
| Net asset value, end of period | | $ | 23.74 | | | $ | 20.44 | | | $ | 22.21 | | | $ | 20.23 | | | $ | 12.98 | |
| Total return(ii) | | | 27.12 | % | | | 1.20 | % | | | 14.03 | % | | | 55.86 | % | | | (14.70 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 11,862 | | | $ | 10,963 | | | $ | 15,322 | | | $ | 31,148 | | | $ | 28,242 | |
| Ratio of gross expenses to average net assets | | | 1.81 | % | | | 1.89 | % | | | 1.93 | % | | | 2.15 | % | | | 2.18 | % |
| Ratio of net expenses to average net assets | | | 1.81 | % | | | 1.89 | % | | | 1.93 | % | | | 2.15 | % | | | 2.18 | % |
| Ratio of net investment loss to average net assets | | | (1.07 | )% | | | (1.12 | )% | | | (1.46 | )% | | | (1.63 | )% | | | (1.65 | )% |
| Portfolio turnover rate | | | 131.29 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % | | | 93.49 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| | Class Z | |
| | | Year ended | | | Year ended | | | Year ended | | | Year ended | | | Year ended | |
| Alger Health Sciences Fund | | 10/31/2020 | | | 10/31/2019 | | | 10/31/2018 | | | 10/31/2017 | | | 10/31/2016 | |
| Net asset value, beginning of period | | $ | 26.69 | | | $ | 28.09 | | | $ | 25.11 | | | $ | 15.92 | | | $ | 21.76 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | — | (ii) | | | 0.01 | | | | (0.09 | ) | | | (0.11 | ) | | | (0.08 | ) |
| Net realized and unrealized gain (loss) on investments | | | 7.25 | | | | 0.47 | | | | 3.82 | | | | 9.30 | | | | (2.37 | ) |
| Total from investment operations | | | 7.25 | | | | 0.48 | | | | 3.73 | | | | 9.19 | | | | (2.45 | ) |
| Dividends from net investment income | | | (0.04 | ) | | | – | | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | | | | (3.39 | ) |
| Net asset value, end of period | | $ | 31.99 | | | $ | 26.69 | | | $ | 28.09 | | | $ | 25.11 | | | $ | 15.92 | |
| Total return(iii) | | | 28.50 | % | | | 2.34 | % | | | 15.32 | % | | | 57.73 | % | | | (13.63 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | $ | 131,109 | | | $ | 77,023 | | | $ | 57,640 | | | $ | 25,644 | | | $ | 4,980 | |
| Ratio of gross expenses to average net assets | | | 0.71 | % | | | 0.79 | % | | | 0.84 | % | | | 1.12 | % | | | 1.16 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | (0.04 | )% | | | (0.06 | )% | | | (0.13 | )% | | | (0.17 | )% |
| Ratio of net expenses to average net assets | | | 0.71 | % | | | 0.75 | % | | | 0.78 | % | | | 0.99 | % | | | 0.99 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.01 | )% | | | 0.02 | % | | | (0.32 | )% | | | (0.48 | )% | | | (0.45 | )% |
| Portfolio turnover rate | | | 131.29 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % | | | 93.49 | % |
See Notes to Financial Statements.
| (i) | Amount was computed based on average shares outstanding during the period. |
| (ii) | Amount was less than $0.005 per share. |
| (ii) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — General:
The Alger Funds (the “Trust”) is an open-end registered investment company organized as a business trust under the laws of the Commonwealth of Massachusetts. The Trust qualifies as an investment company as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946-Financial Services – Investment Companies. The Trust operates as a series company currently offering an unlimited number of shares of beneficial interest in eleven series — Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund (collectively, the “Funds” or individually, each a “Fund”). Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation. Alger Growth & Income Fund also normally invests primarily in equity securities but has an investment objective of both capital appreciation and current income.
Each Fund offers one or more of the following share classes: Class A, B, C, I, P, P-2, Y and Z. Class A shares are generally subject to an initial sales charge while Class B and C shares are generally subject to a deferred sales charge. Class B shares will automatically convert to Class A shares eight years after the end of the calendar month in which the order to purchase was accepted. The conversion is completed without the imposition of any sales charges or other fees. Class C shares will automatically convert to Class A shares on the fifth business day of the month following the tenth anniversary of the purchase date of a shareholder’s Class C shares, without the imposition of any sales load, fee or other charge. Class B or Class C shares held at certain dealers may not convert to Class A shares or may be converted on a different schedule. At conversion, a proportionate amount of shares representing reinvested dividends and distributions will also be converted into Class A shares. Effective August 27, 2019, Class C shares were closed to direct shareholders and are only available for purchase through certain financial intermediaries and group retirement plan recordkeeping platforms. Class I, P, P-2, Y and Z shares are sold to investors without an initial or deferred sales charge. Each class has identical rights to assets and earnings, except that each share class bears the pro rata allocation of the Fund’s expenses other than a class expense (not including advisory or custodial fees or other expenses related to the management of the Fund’s assets).
The Board of Trustees of the Trust (the “Board”) has authorized a partial closing of the Alger Small Cap Focus Fund effective July 31, 2019. Class A, C, I and Z shares will be available for purchase by existing shareholders who maintain open accounts and new investors that utilize certain retirement record keeping platforms identified by Fred Alger & Company, LLC, the Fund’s distributor. Class I and Z shares will also be available for purchase by investors who transact with certain brokers identified by the distributor. Class Y shares will remain open to all qualifying investors.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
The Class B Shares of Alger Capital Appreciation Fund were converted into Class A Shares on June 1, 2020.
NOTE 2 — Significant Accounting Policies:
(a) Investment Valuation: The Funds value their financial instruments at fair value using independent dealers or pricing services under policies approved by the Board. Investments held by the Funds are valued on each day the New York Stock Exchange (the “NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern Time).
Investments in money market funds and short-term securities held by the Funds having a remaining maturity of sixty days or less are valued at amortized cost which approximates market value.
Equity securities, including traded rights, warrants and option contracts for which valuation information is readily available, are valued at the last quoted sales price or official closing price on the primary market or exchange on which they are traded as reported by an independent pricing service. In the absence of quoted sales, such securities are valued at the bid price or, in the absence of a recent bid price, the equivalent as obtained from one or more of the major market makers for the securities to be valued.
Debt securities generally trade in the over-the-counter market. Debt securities with remaining maturities of more than sixty days at the time of acquisition are valued on the basis of the last available bid prices or current market quotations provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures based on valuation technology commonly employed in the market for such investments. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche. Debt securities with a remaining maturity of sixty days or less are valued at amortized cost which approximates market value.
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 and described further herein.
Securities in which the Funds invest may be traded in foreign markets that close before the close of the NYSE. Developments that occur between the close of the foreign markets and the close of the NYSE may result in adjustments to the closing foreign prices to reflect what the Trust’s investment adviser, pursuant to policies established by the Board, believes to be the fair value 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.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
FASB Accounting Standards Codification 820 – Fair Value Measurements and Disclosures (“ASC 820”) defines fair value as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability and may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds’ own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
| · | Level 1 – quoted prices in active markets for identical investments |
| · | Level 2 – significant other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| · | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The Funds’ valuation techniques are generally consistent with either the market or the income approach to fair value. The market approach considers prices and other relevant information generated by market transactions involving identical or comparable assets to measure fair value. The income approach converts future amounts to a current, or discounted, single amount. These fair value measurements are determined on the basis of the value indicated by current market expectations about such future events. Inputs for Level 1 include exchange-listed prices and broker quotes in an active market. Inputs for Level 2 include the last trade price in the case of a halted security, an exchange-listed price which has been adjusted for fair value factors, and prices of closely related securities. Additional Level 2 inputs include an evaluated price which is based upon a compilation of observable market information such as spreads for fixed income and preferred securities. Inputs for Level 3 include, but are not limited to, revenue multiples, earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, discount rates, time to exit and the probabilities of success of certain outcomes. Such unobservable market information may be obtained from a company’s financial statements and from industry studies, market data, and market indicators such as benchmarks and indexes. Because of the inherent uncertainty and often limited markets for restricted securities, the valuations assigned to such securities by the Funds may significantly differ from the valuations that would have been assigned by the Funds had there been an active market for such securities.
Valuation processes are determined by a Valuation Committee (“Committee”) authorized by the Board and comprised of representatives of the Trust’s investment adviser and officers of the Trust. The Committee reports its fair valuation determinations and related valuation information to the Board. The Board is responsible for approving the valuation policy and procedures.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
While the Committee meets on an as-needed basis, the Committee generally meets quarterly to review and evaluate the effectiveness of the procedures for making fair value determinations. The Committee considers, among other things, the results of quarterly back testing of the fair value model for foreign securities, pricing comparisons between primary and secondary price sources, the outcome of price challenges put to the Funds’ pricing vendor, and variances between transactional prices and the previous day’s price.
(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars, foreign cash and overnight time deposits.
(c) 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.
(d) Foreign Currency Transactions: 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 accompanying Statements of Operations.
(e) Forward Foreign Exchange Contracts: Certain Funds may enter into forward foreign currency contracts to hedge against foreign currency exchange rate risk on their non-U.S. dollar denominated securities or to facilitate settlement of foreign currency denominated portfolio transactions. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency.
These contracts may involve market risk in excess of the unrealized gain or loss reflected on the Statements of Assets and Liabilities. In addition, the Funds could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the base currency.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(f) Option Contracts: When a Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to reflect the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.
Certain Funds may also purchase put and call options. Such Funds pay a premium which is included in each Fund’s accompanying Statement of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire unexercised are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying security to determine the realized gain or loss.
(g) 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 including borrowings, as defined in its prospectuses. The Funds earn fees on the securities loaned, which are included in income from securities lending in the accompanying Statements of Operations. In order to protect against the risk of failure by the borrower to return the securities loaned or any delay in the delivery of such securities, the loan is collateralized by cash or securities that are maintained with Brown Brothers Harriman & Company, the Funds’ Custodian (“BBH” or the “Custodian”), in an amount equal to at least 102 percent of the current market value of U.S. loaned securities or 105 percent for non-U.S. loaned securities. The market value of the loaned securities is determined at the close of business of the Funds. Any required additional collateral is delivered to the Custodian and any excess collateral is returned to the borrower on the next business day. In the event the borrower fails to return the loaned securities when due, the Funds may take the collateral to replace the securities. If the value of the collateral is less than the purchase cost of replacement securities, the Custodian shall be responsible for any shortfall, but only to the extent that the shortfall is not due to any diminution in collateral value, as defined in the securities lending agreement. The Funds are required to maintain the collateral in a segregated account and determine its value each day until the loaned securities are returned. Cash collateral may be invested as determined by the Funds. Collateral is returned to the borrower upon settlement of the loan. There were no securities loaned as of October 31, 2020.
(h) Dividends to Shareholders: Dividends and distributions payable to shareholders are recorded on the ex-dividend date. The Funds declare and pay dividends from net investment income, if available, annually except that Alger Growth & Income Fund declares and pays such dividends quarterly. With respect to all Funds, dividends from net realized gains, offset by any loss carryforward, are declared and paid annually after the end of the fiscal year in which earned.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Each class is treated separately in determining the amounts of dividends from 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 a Fund’s 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, foreign currency transactions and premium/discount of debt securities. The reclassifications are done annually at fiscal year-end and have no impact on the net asset values of the Funds and are designed to present each Fund’s capital accounts on a tax basis.
(i) Federal Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code Subchapter M applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Provided that the Funds maintain such compliance, no federal income tax provision is required. Each Fund is treated as a separate entity for the purpose of determining such compliance.
FASB Accounting Standards Codification 740 – Income Taxes (“ASC 740”) requires the Funds to measure and recognize in their financial statements the benefit of a tax position taken (or expected to be taken) on an income tax return if such position will more likely than not be sustained upon examination based on the technical merits of the position. No tax years are currently under investigation. The Funds file income tax returns in the U.S. Federal jurisdiction, as well as the New York State and New York City jurisdictions. The statute of limitations on the Funds’ tax returns remains open for the tax years 2017-2020. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
(j) 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 each Fund’s classes based on relative net assets, with the exception of distribution fees, transfer agency fees, and shareholder servicing and related fees.
(k) Estimates: These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates. All such estimates are of a normal recurring nature.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(l) Recent Accounting Pronouncements: In August 2018, FASB issued Accounting Standards Update 2018-13 “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”) which modifies disclosure requirements for fair value measurements, principally for Level 3 securities and transfers between levels of the fair value hierarchy. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The Funds have complied with ASU 2018-13 for the year ended October 31, 2020, resulting in (1) new disclosures for the total unrealized gain or loss attributable to fair value changes in Level 3 securities, and (2) the elimination of the disclosure of (a) the reasons for and amounts of transfers between Level 1 and Level 2, and (b) the Funds’ valuation processes for Level 3 securities.
NOTE 3 — Investment Advisory Fees and Other Transactions with Affiliates:
(a) Investment Advisory Fees: Fees incurred by each Fund, pursuant to the provisions of the Trust’s Investment Advisory Agreement with Fred Alger Management, LLC (“Alger Management” or the “Investment Manager”), are payable monthly and computed based on the following rates. The actual rate paid as a percentage of average daily net assets, for the year ended October 31, 2020, is set forth below under the heading “Actual Rate”:
| | | | Tier 1 | | | | Tier 2 | | | | Tier 3 | | | | Tier 4 | | | | Tier 5 | | | | Actual Rate | |
| Alger Capital Appreciation Fund(a) | | | 0.81 | % | | | 0.65 | % | | | 0.60 | % | | | 0.55 | % | | | 0.45 | % | | | 0.75 | % |
| Alger 25 Fund(b) | | | 0.30-0.80 | | | | — | | | | — | | | | — | | | | — | | | | 0.80 | |
| Alger 35 Fund(b) | | | 0.30-0.80 | | | | — | | | | — | | | | — | | | | — | | | | 0.80 | |
| Alger Growth & Income Fund(c) | | | 0.50 | | | | — | | | | — | | | | — | | | | — | | | | 0.50 | |
| Alger Mid Cap Growth Fund(d) | | | 0.76 | | | | 0.70 | | | | — | | | | — | | | | — | | | | 0.76 | |
| Alger Mid Cap Focus Fund(c) | | | 0.70 | | | | — | | | | — | | | | — | | | | — | | | | 0.70 | |
| Alger Weatherbie Specialized Growth Fund(d) | | | 0.81 | | | | 0.75 | | | | — | | | | — | | | | — | | | | 0.81 | |
| Alger Small Cap Growth Fund(d) | | | 0.81 | | | | 0.75 | | | | — | | | | — | | | | — | | | | 0.81 | |
| Alger Small Cap Focus Fund(c) | | | 0.75 | | | | — | | | | — | | | | — | | | | — | | | | 0.75 | |
| Alger International Focus Fund(d) | | | 0.71 | | | | 0.60 | | | | — | | | | — | | | | — | | | | 0.71 | |
| Alger Health Sciences Fund(c) | | | 0.55 | | | | — | | | | — | | | | — | | | | — | | | | 0.55 | |
(a) Tier 1 rate is paid on assets up to $2 billion, Tier 2 rate is paid on assets between $2 billion and $3 billion, Tier 3 rate is paid on assets between $3 billion and $4 billion, Tier 4 rate is paid on assets between $4 billion and $5 billion, and Tier 5 rate is paid on assets in excess of $5 billion.
(b) The management fee paid to Alger Management consists of a base fee at an annual rate of 0.55% of the Fund’s average daily net assets and a positive or negative performance adjustment of up to an annual rate of 0.25% based upon the Fund’s performance relative to the S&P 500 Index, resulting in a minimum, total fee of 0.30%o and a maximum total fee of 0.80%.
(c) Tier 1 rate is paid on all assets.
(d) Tier 1 rate is paid on assets up to $1 billion and Tier 2 rate is paid on assets in excess of $1 billion.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
The sub-advisor to the Alger Weatherbie Specialized Growth Fund, Weatherbie Capital, LLC (“Weatherbie” or the “Sub-Advisor”), an affiliate of Alger Management, is paid a fee, out of the management fee that Alger Management receives at no additional cost to the Alger Weatherbie Specialized Growth Fund. The sub-advisory fee is equal to 70% of the net management fee paid by the Alger Weatherbie Specialized Growth Fund to Alger Management with respect to the sub-advised assets. For the year ended October 31, 2020, Alger Management paid a sub-advisory fee of $3,857,739 to Weatherbie.
Alger Management has agreed to limit the expenses for certain share classes, effective through February 28, 2021, whereby it reimburses the share classes if annualized operating expenses (excluding acquired fund fees and expenses, interest, taxes, brokerage, dividend expense on short sales, borrowing costs and extraordinary expenses) exceed the rates, based on average daily net assets, listed in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FEES WAIVED /
REIMBURSED FOR |
|
| | | CLASS | | | THE YEAR ENDED | |
| | | A | | | C | | | I | | | Y | | | Z | | | OCTOBER 31,
2020 | |
| Alger Growth & Income Fund | | | — | | | | — | | | | — | | | | — | | | | 0.69 | % | | $ | 10,208 | |
| Alger Mid Cap Growth Fund | | | — | | | | — | | | | — | | | | — | | | | 1.05 | | | | 139 | |
| Alger Mid Cap Focus Fund | | | — | | | | — | | | | 1.20 | % | | | — | | | | 0.99 | | | | 57,824 | |
| Alger Weatherbie Specialized Growth Fund | | | — | | | | — | | | | — | | | | 0.87 | % | | | 0.99 | | | | 15,769 | |
| Alger Small Cap Growth Fund | | | — | | | | — | | | | — | | | | — | | | | 0.99 | | | | 17,370 | |
| Alger Small Cap Focus Fund | | | — | | | | — | | | | — | | | | 0.85 | | | | — | | | | 7,468 | |
| Alger International Focus Fund | | | — | | | | — | | | | 1.10 | | | | — | | | | 0.89 | | | | 14,995 | |
| Alger Health Sciences Fund | | | — | | | | — | | | | — | | | | — | | | | 0.75 | | | | — | |
Alger Management has also agreed to limit expenses of the Class P and Class P-2 share classes of Alger 25 Fund and Alger 35 Fund, for the life of the applicable Funds, whereby it reimburses expenses to the extent Fund operating expenses, excluding advisory fees (and sub-transfer agency fees and shareholder service fees for Class P-2) exceed 0.10%, based on average daily net assets. The expense reimbursement arrangement does not include interest, taxes, brokerage, dividend expense on short sales, borrowing costs and extraordinary expenses. Fees waived for the Alger 25 Fund and Alger 35 Fund were $133,553 and $129,916, respectively, for the year ended October 31, 2020.
In addition, Alger Management voluntarily reduced its 12b-1 fee effective April 1, 2019, for the Class B shares of the Alger Mid Cap Growth Fund, Alger Small Cap Growth Fund and Alger International Focus Fund by $111,290, $34,389 and $147,784, respectively, for the year ended October 31, 2020.
Alger Management may, during the first year of the two-year term of the expense limitation contract, recoup any fees waived or expenses reimbursed for share classes A, C, I, Y and Z pursuant to the expense limitation contract to the extent that such recoupment would not cause the expense ratio to exceed the lesser of the stated limitation in effect at the time of (i) the waiver or reimbursement and (ii) the recoupment after the repayment of the recoupment is taken into account. For the period ended February 28, 2020, when the recoupment provision ended, the recoupments made by the Funds to the Investment Manager for the Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund were $1,043, $241, $301, $250 and $1,613, respectively.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(b) Administration Fees: Fees incurred by each Fund, pursuant to the provisions of the Trust’s Fund Administration Agreement with Alger Management, are payable monthly and computed based on the average daily net assets of each Fund at the annual rate of 0.0275%.
(c) Distribution Fees:
Class A Shares: The Trust has adopted a Plan of Distribution pursuant to which each Fund pays Fred Alger & Company, LLC, the Funds’ distributor and an affiliate of Alger Management (the “Distributor” or “Alger LLC”), a fee at the annual rate of 0.25% of the respective average daily net assets of the Class A shares of the designated Fund to compensate Alger LLC for its activities and expenses incurred in distributing the Class A shares and/or shareholder servicing. Fees paid may be more or less than the expenses incurred by Alger LLC.
Class B Shares: The Trust has adopted an Amended and Restated Plan of Distribution pursuant to which Class B shares of each Fund issuing such shares reimburse Alger LLC for costs and expenses incurred by Alger LLC in connection with advertising, marketing and selling the Class B shares, and shareholder servicing, not to exceed an annual rate of 1% of the respective average daily net assets of the Class B shares of the designated Fund. If in any month, the costs incurred by Alger LLC relating to the Class B shares are in excess of the distribution fees charged to the Class B shares of the Fund, the excess may be carried forward, with interest, and sought to be reimbursed in future periods. As of October 31, 2020, such excess carried forward was $11,854,472, $18,698,945 and $18,476,862 for Class B shares of Alger Mid Cap Growth Fund, Alger Small Cap Growth Fund and Alger International Focus Fund, respectively. Contingent deferred sales charges imposed on redemptions of Class B shares will reduce the amount of distribution expenses for which reimbursement may be sought. See Note 3(d) below.
Class C Shares: The Trust has adopted a Distribution Plan pursuant to which Class C shares of each Fund pays Alger LLC a fee at the annual rate of 1% of the respective average daily net assets of the Class C shares of the designated Fund to compensate Alger LLC for its activities and expenses incurred in distributing the Class C shares and/or shareholder servicing. Fees paid may be more or less than the expenses incurred by Alger LLC.
Class I Shares: The Trust has adopted a Distribution Plan pursuant to which Class I shares of Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Focus Fund and Alger International Focus Fund each pay Alger LLC a fee at the annual rate of 0.25% of the average daily net assets of the Fund’s Class I shares to compensate Alger LLC for its activities and expenses incurred in distributing the Class I shares and/or shareholder servicing. Fees paid may be more or less than the expenses incurred by Alger LLC.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(d) Sales Charges: Purchases and sales of shares of the Funds may be subject to initial sales charges or contingent deferred sales charges. The contingent deferred sales charges are used by Alger LLC to offset distribution expenses previously incurred. Sales charges do not represent expenses of the Trust. Effective July 24, 2020, Alger LLC does not collect any sales charges on assets held by direct shareholders. For the year ended October 31, 2020, the initial sales charges and contingent deferred sales charges imposed, all of which were retained by Alger LLC, were as follows:
| | | | | | CONTINGENT | |
| | | INITIAL SALES | | | DEFERRED SALES | |
| | | CHARGES | | | CHARGES | |
| Alger Capital Appreciation Fund | | $ | 407 | | | $ | 15,137 | |
| Alger Growth & Income Fund | | | — | | | | 1,180 | |
| Alger Mid Cap Growth Fund | | | 157 | | | | 1,156 | |
| Alger Weatherbie Specialized Growth Fund | | | — | | | | 122,104 | |
| Alger Small Cap Growth Fund | | | 142 | | | | 23,807 | |
| Alger Small Cap Focus Fund | | | 3,700 | | | | 47,438 | |
| Alger International Focus Fund | | | 240 | | | | 1,988 | |
| Alger Health Sciences Fund | | | — | | | | 3,066 | |
(e) Brokerage Commissions: During the year ended October 31, 2020, Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund paid Alger LLC commissions of $440,030, $3,069, $486, $1,729, $70,053, $26,487, $24,763, $253,111, $4,871 and $29,684, respectively, in connection with securities transactions.
(f) Shareholder Administrative Fees: The Trust has entered into a Shareholder Administrative Services Agreement with Alger Management to compensate Alger Management for liaising with, and providing administrative oversight of, the Fund’s transfer agent, and for other related services. The Funds compensate Alger Management at the annual rate of 0.0165% of their respective average daily net assets for the Class A, Class B and Class C shares and 0.01% of their respective average daily net assets of the Class I, Class P, Class P-2, Class Y and Class Z shares for these services.
Alger Management makes payments to intermediaries that provide sub-accounting services to omnibus accounts invested in the Funds. A portion of the fees paid by Alger Management to intermediaries that provide sub-accounting services are charged back to the appropriate Fund, subject to certain limitations, as approved by the Board. For the year ended October 31, 2020, Alger Management charged back to Alger Capital Appreciation Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund, $993,420, $35,572, $47,796, $955, $150,592, $40,472, $821,836, $27,552 and $62,252, respectively, for these services, which are included in transfer agent fees in the accompanying Statements of Operations.
(g) Trustee Fees: Each trustee who is not an “interested person” of the Trust, as defined in the Investment Company Act of 1940, as amended (“Independent Trustee”) receives a fee of $134,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex, plus travel expenses incurred for attending board meetings. The term “Alger Fund Complex” refers to the Trust, The Alger Institutional Funds, The Alger Funds II, The Alger Portfolios and Alger Global Focus Fund, each of which is a registered investment company managed by Alger Management. The Independent Trustee appointed as Chairman of the Board receives additional compensation of $20,000 per annum paid pro rata based on net assets by each fund in the Alger Fund Complex. Additionally, each member of the Audit Committee receives a fee of $13,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Prior to January 1, 2020, each Independent Trustee received a fee of $122,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex, plus travel expenses incurred for attending board meetings. The Independent Trustee appointed as Chairman of the Board received additional compensation of $30,000 per annum paid pro rata based on net assets by each fund in the Alger Fund Complex. Additionally, each member of the Audit Committee received a fee of $11,000 per annum, paid pro rata based on net assets by each fund in the Alger Fund Complex.
(h) Interfund Trades: The Funds may engage in purchase and sale transactions with other funds advised by Alger Management or Weatherbie. For the year ended October 31, 2020, these purchases and sales were as follows:
| | | Purchases | | | Sales | | | Realized loss | |
| Alger Small Cap Growth Fund | | $ | 271,219 | | | $ | — | | | $ | — | |
| Alger Small Cap Focus Fund | | | — | | | | 271,219 | | | | 210,799 | |
(i) Interfund Loans: The Funds, along with other funds in the Alger Fund Complex, may borrow money from and lend money to each other for temporary or emergency purposes with the exception of the Alger International Focus Fund, which can only borrow for temporary or emergency purposes. To the extent permitted under its investment restrictions, each fund may lend uninvested cash in an amount up to 15% of its net assets to other funds. If a fund has borrowed from other funds and has aggregate borrowings from all sources that exceed 10% of the fund’s total assets, such fund will secure all of its loans from other funds. The interest rate charged on interfund loans is equal to the average of the overnight time deposit rate and bank loan rate available to the funds. There were no interfund loans outstanding as of October 31, 2020.
During the year ended October 31, 2020, Alger Capital Appreciation Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund incurred interfund loan interest expenses of $20,687, $373, $308, $1,420, $818, and $1,152, respectively, and Alger Capital Appreciation Fund and Alger Small Cap Focus Fund earned interfund loan interest income of $19 and $62,979, respectively, which is included in interest in the accompanying Statements of Operations.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(j) Other Transactions With Affiliates: Certain officers of the Trust are directors and/or officers of Alger Management, the Distributor, or their affiliates. At October 31, 2020, Alger Management and its affiliated entities owned the following shares:
| | | | SHARE CLASS | |
| | | | A | | | | I | | | | P | | | | P-2 | | | | Y | | | | Z | |
| Alger Capital Appreciation Fund | | | 73,980 | | | | — | | | | — | | | | — | | | | — | | | | 28,882 | |
| Alger 25 Fund | | | — | | | | — | | | | 250,933 | | | | 9,425 | | | | — | | | | — | |
| Alger 35 Fund | | | — | | | | — | | | | 759,019 | | | | 9,705 | | | | — | | | | — | |
| Alger Growth & Income Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | 32,241 | |
| Alger Mid Cap Growth Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | 91,394 | |
| Alger Mid Cap Focus Fund | | | — | | | | 100,000 | | | | — | | | | — | | | | — | | | | 900,000 | |
| Alger Weatherbie Specialized Growth Fund | | | 187,751 | | | | — | | | | — | | | | — | | | | 10,066 | | | | 185 | |
| Alger Small Cap Growth Fund | | | 71,040 | | | | — | | | | — | | | | — | | | | — | | | | 88,731 | |
| Alger Small Cap Focus Fund | | | — | | | | — | | | | — | | | | — | | | | 787 | | | | 304,233 | |
| Alger International Focus Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | 63,226 | |
| Alger Health Sciences Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5,232 | |
(k) Shareholder Servicing Fees: The Trust has entered into a shareholder servicing agreement with Alger LLC whereby Alger LLC provides Class P-2I shares of the Trust with ongoing servicing of shareholder accounts. As compensation for such services, the Class P-2 shares of the Fund pay Alger LLC a monthly fee at an annual rate of 0.08% of the value of the average daily net assets of those classes. The fees paid may be more or less than the expenses incurred by the Distributor.
NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by each Fund, other than U.S. Government securities and short-term securities, for the year ended October 31, 2020:
| | | PURCHASES | | | SALES | |
| Alger Capital Appreciation Fund | | $ | 2,738,723,502 | | | $ | 3,126,397,340 | |
| Alger 25 Fund | | | 13,253,126 | | | | 10,583,907 | |
| Alger 35 Fund | | | 13,599,775 | | | | 13,790,253 | |
| Alger Growth & Income Fund | | | 10,238,268 | | | | 20,173,582 | |
| Alger Mid Cap Growth Fund | | | 343,932,724 | | | | 350,192,267 | |
| Alger Mid Cap Focus Fund | | | 432,111,893 | | | | 159,144,884 | |
| Alger Weatherbie Specialized Growth Fund | | | 614,675,260 | | | | 459,032,403 | |
| Alger Small Cap Growth Fund | | | 168,398,270 | | | | 27,065,870 | |
| Alger Small Cap Focus Fund | | | 2,589,699,539 | | | | 1,699,419,517 | |
| Alger International Focus Fund | | | 141,606,453 | | | | 151,877,526 | |
| Alger Health Sciences Fund | | | 327,770,480 | | | | 321,183,321 | |
Transactions in foreign securities may involve certain considerations and risks not typically associated with those of U.S. companies because of, among other factors, the level of governmental supervision and regulation of foreign security markets, and the possibility of political or economic instability. Additional risks associated with investing in emerging markets include increased volatility, limited liquidity, and less stringent regulatory and legal systems.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 5 — Borrowing:
The Funds may borrow from Brown Brothers Harriman & Co., the Funds’ Custodian (“BBH” or the “Custodian”), on an uncommitted basis. Each Fund pays the Custodian a market rate of interest, generally based upon a rate of return with respect to each respective currency borrowed taking into consideration relevant overnight and short-term reference rates, the range of distribution between and among the interest rates paid on deposits to other institutions, less applicable commissions, if any. The Funds may also borrow from other funds in the Alger Fund Complex, as discussed in Note 3(i). For the year ended October 31, 2020, the Funds had the following borrowings from the Custodian and other funds in the Alger Fund Complex:
| | | AVERAGE DAILY | | | WEIGHTED AVERAGE | |
| | | BORROWING | | | INTEREST RATE | |
| Alger Capital Appreciation Fund | | $ | 1,497,260 | | | | 1.55 | % |
| Alger 25 Fund | | | 744 | | | | 2.21 | |
| Alger 35 Fund | | | 328 | | | | 2.24 | |
| Alger Growth & Income Fund | | | 25,451 | | | | 1.64 | |
| Alger Mid Cap Growth Fund | | | 13,885 | | | | 2.39 | |
| Alger Mid Cap Focus Fund | | | 57,465 | | | | 2.49 | |
| Alger Weatherbie Specialized Growth Fund | | | 35 | | | | 3.81 | |
| Alger Small Cap Growth Fund | | | 22 | | | | 3.79 | |
| Alger Small Cap Focus Fund | | | 148 | | | | 3.81 | |
| Alger International Focus Fund | | | 78,755 | | | | 2.02 | |
| Alger Health Sciences Fund | | | 64,796 | | | | 1.83 | |
The highest amount borrowed from the Custodian and other funds during the year ended October 31, 2020 by each Fund was as follows:
| | | HIGHEST BORROWING | |
| Alger Capital Appreciation Fund | | $ | 23,478,000 | |
| Alger 25 Fund | | | 67,620 | |
| Alger 35 Fund | | | 40,136 | |
| Alger Growth & Income Fund | | | 2,300,018 | |
| Alger Mid Cap Growth Fund | | | 2,370,274 | |
| Alger Mid Cap Focus Fund | | | 6,989,844 | |
| Alger Weatherbie Specialized Growth Fund | | | 12,643 | |
| Alger Small Cap Growth Fund | | | 7,994 | |
| Alger Small Cap Focus Fund | | | 54,116 | |
| Alger International Focus Fund | | | 3,507,389 | |
| Alger Health Sciences Fund | | | 4,238,000 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
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 eleven series. Each series is divided into separate classes. The transactions of shares of beneficial interest were as follows:
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Capital Appreciation Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 7,180,370 | | | $ | 211,280,486 | | | | 5,409,646 | | | $ | 134,594,348 | |
| Shares converted from Class B | | | 24,727 | | | | 668,188 | | | | 56,679 | | | | 1,442,230 | |
| Shares converted from Class C | | | 86,714 | | | | 2,362,603 | | | | 53,610 | | | | 1,383,010 | |
| Dividends reinvested | | | 2,937,814 | | | | 78,087,090 | | | | 4,389,837 | | | | 97,586,145 | |
| Shares redeemed | | | (14,430,334 | ) | | | (419,690,482 | ) | | | (14,606,803 | ) | | | (371,486,813 | ) |
| Net decrease | | | (4,200,709 | ) | | $ | (127,292,115 | ) | | | (4,697,031 | ) | | $ | (136,481,080 | ) |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 15,128 | | | $ | 302,171 | | | | 25,852 | | | $ | 500,372 | |
| Shares converted to Class A | | | (33,469 | ) | | | (668,188 | ) | | | (74,375 | ) | | | (1,442,230 | ) |
| Dividends reinvested | | | 41,410 | | | | 807,917 | | | | 71,787 | | | | 1,213,205 | |
| Shares redeemed | | | (457,984 | ) | | | (9,741,707 | ) | | | (102,456 | ) | | | (1,996,484 | ) |
| Net decrease | | | (434,915 | ) | | $ | (9,299,807 | ) | | | (79,192 | ) | | $ | (1,725,137 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 899,144 | | | $ | 19,063,091 | | | | 1,128,309 | | | $ | 20,701,966 | |
| Shares converted to Class A | | | (117,059 | ) | | | (2,362,603 | ) | | | (70,119 | ) | | | (1,383,010 | ) |
| Dividends reinvested | | | 934,025 | | | | 18,353,590 | | | | 1,416,976 | | | | 24,088,590 | |
| Shares redeemed | | | (4,104,569 | ) | | | (90,979,418 | ) | | | (3,591,490 | ) | | | (69,831,298 | ) |
| Net decrease | | | (2,388,459 | ) | | $ | (55,925,340 | ) | | | (1,116,324 | ) | | $ | (26,423,752 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 11,841,043 | | | $ | 364,289,219 | | | | 9,367,565 | | | $ | 244,340,144 | |
| Dividends reinvested | | | 3,577,911 | | | | 98,750,345 | | | | 4,615,566 | | | | 105,881,077 | |
| Shares redeemed | | | (13,775,650 | ) | | | (416,349,095 | ) | | | (9,816,320 | ) | | | (254,664,054 | ) |
| Net increase | | | 1,643,304 | | | $ | 46,690,469 | | | | 4,166,811 | | | $ | 95,557,167 | |
| | | | | | | | | | | | | | | | | |
| Alger 25 Fund | | | | | | | | | | | | | | | | |
| Class P: | | | | | | | | | | | | | | | | |
| Shares sold | | | 193,007 | | | $ | 2,433,323 | | | | 40,097 | | | $ | 500,000 | |
| Dividends reinvested | | | 10,217 | | | | 130,985 | | | | 3,929 | | | | 39,245 | |
| Shares redeemed | | | — | | | | — | | | | (5,067 | ) | | | (63,592 | ) |
| Net increase | | | 203,224 | | | $ | 2,564,308 | | | | 38,959 | | | $ | 475,653 | |
| Class P-2: | | | | | | | | | | | | | | | | |
| Shares sold | | | 32,610 | | | $ | 448,449 | | | | 9,286 | | | $ | 106,215 | |
| Dividends reinvested | | | 98 | | | | 1,252 | | | | — | | | | — | |
| Shares redeemed | | | (11,163 | ) | | | (143,979 | ) | | | (447 | ) | | | (5,132 | ) |
| Net increase | | | 21,545 | | | $ | 305,722 | | | | 8,839 | | | $ | 101,083 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger 35 Fund | | | | | | | | | | | | | | | | |
| Class P: | | | | | | | | | | | | | | | | |
| Shares sold | | | 28,618 | | | $ | 350,000 | | | | 23,801 | | | $ | 250,000 | |
| Dividends reinvested | | | 42 | | | | 508 | | | | 9,185 | | | | 87,537 | |
| Net increase | | | 28,660 | | | $ | 350,508 | | | | 32,986 | | | $ | 337,537 | |
| Class P-2: | | | | | | | | | | | | | | | | |
| Shares sold | | | 14,559 | | | $ | 236,787 | | | | 5 | | | $ | 50 | |
| Dividends reinvested | | | — | | | | — | | | | 71 | | | | 680 | |
| Shares redeemed | | | (9,868 | ) | | | (163,136 | ) | | | — | | | | — | |
| Net increase | | | 4,691 | | | $ | 73,651 | | | | 76 | | | $ | 730 | |
| | | | | | | | | | | | | | | | | |
| Alger Growth & Income Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 166,028 | | | $ | 7,230,027 | | | | 158,691 | | | $ | 6,395,146 | |
| Shares converted from Class C | | | 5,418 | | | | 230,594 | | | | 4,571 | | | | 185,960 | |
| Dividends reinvested | | | 79,229 | | | | 3,448,814 | | | | 103,036 | | | | 3,845,341 | |
| Shares redeemed | | | (278,890 | ) | | | (12,011,731 | ) | | | (284,192 | ) | | | (11,461,717 | ) |
| Net decrease | | | (28,215 | ) | | $ | (1,102,296 | ) | | | (17,894 | ) | | $ | (1,035,270 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 52,246 | | | $ | 2,232,137 | | | | 63,968 | | | $ | 2,451,716 | |
| Shares converted to Class A | | | (5,503 | ) | | | (230,594 | ) | | | (4,639 | ) | | | (185,960 | ) |
| Dividends reinvested | | | 14,947 | | | | 643,564 | | | | 22,069 | | | | 805,489 | |
| Shares redeemed | | | (106,117 | ) | | | (4,396,795 | ) | | | (133,031 | ) | | | (5,262,691 | ) |
| Net decrease | | | (44,427 | ) | | $ | (1,751,688 | ) | | | (51,633 | ) | | $ | (2,191,446 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 123,441 | | | $ | 5,384,534 | | | | 125,149 | | | $ | 4,862,200 | |
| Dividends reinvested | | | 28,083 | | | | 1,221,091 | | | | 36,266 | | | | 1,360,433 | |
| Shares redeemed | | | (276,987 | ) | | | (10,439,155 | ) | | | (145,528 | ) | | | (5,810,750 | ) |
| Net increase (decrease) | | | (125,463 | ) | | $ | (3,833,530 | ) | | | 15,887 | | | $ | 411,883 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 683,420 | | | $ | 11,230,660 | | | | 497,105 | | | $ | 6,947,149 | |
| Shares converted from Class B | | | 697,095 | | | | 10,686,941 | | | | 52,502 | | | | 749,952 | |
| Shares converted from Class C | | | 5,184 | | | | 80,661 | | | | 14,106 | | | | 208,811 | |
| Dividends reinvested | | | 718,109 | | | | 10,161,234 | | | | 495,829 | | | | 6,009,462 | |
| Shares redeemed | | | (1,774,141 | ) | | | (27,259,364 | ) | | | (1,461,310 | ) | | | (21,047,438 | ) |
| Net increase (decrease) | | | 329,667 | | | $ | 4,900,132 | | | | (401,768 | ) | | $ | (7,132,064 | ) |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 766,194 | | | $ | 8,988,482 | | | | 27,558 | | | $ | 288,473 | |
| Shares converted to Class A | | | (901,373 | ) | | | (10,686,941 | ) | | | (67,138 | ) | | | (749,952 | ) |
| Dividends reinvested | | | 123,931 | | | | 1,335,978 | | | | 94,332 | | | | 893,322 | |
| Shares redeemed | | | (132,984 | ) | | | (1,542,833 | ) | | | (231,702 | ) | | | (2,608,100 | ) |
| Net decrease | | | (144,232 | ) | | $ | (1,905,314 | ) | | | (176,950 | ) | | $ | (2,176,257 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 110,698 | | | $ | 1,351,444 | | | | 96,099 | | | $ | 1,044,631 | |
| Shares converted to Class A | | | (6,962 | ) | | | (80,661 | ) | | | (18,362 | ) | | | (208,811 | ) |
| Dividends reinvested | | | 43,750 | | | | 461,119 | | | | 36,385 | | | | 339,838 | |
| Shares redeemed | | | (279,162 | ) | | | (3,292,499 | ) | | | (273,590 | ) | | | (3,014,606 | ) |
| Net decrease | | | (131,676 | ) | | $ | (1,560,597 | ) | | | (159,468 | ) | | $ | (1,838,948 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 383,063 | | | $ | 6,586,907 | | | | 287,124 | | | $ | 3,997,992 | |
| Dividends reinvested | | | 56,154 | | | | 806,942 | | | | 34,439 | | | | 422,221 | |
| Shares redeemed | | | (243,910 | ) | | | (3,731,436 | ) | | | (149,060 | ) | | | (2,131,312 | ) |
| Net increase | | | 195,307 | | | $ | 3,662,413 | | | | 172,503 | | | $ | 2,288,901 | |
| | | | | | | | | | | | | | | | | |
| Alger Mid Cap Focus Fund | | | | | | | | | | | | | | | | |
| Class I:* | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,205,360 | | | $ | 63,455,538 | | | | 1,014,523 | | | $ | 10,401,362 | |
| Shares redeemed | | | (923,353 | ) | | | (12,609,650 | ) | | | (806,054 | ) | | | (7,922,135 | ) |
| Net increase | | | 4,282,007 | | | $ | 50,845,888 | | | | 208,469 | | | $ | 2,479,227 | |
| Class Z:* | | | | | | | | | | | | | | | | |
| Shares sold | | | 18,710,358 | | | $ | 255,789,347 | | | | 2,962,115 | | | $ | 29,644,747 | |
| Shares redeemed | | | (1,312,798 | ) | | | (18,447,018 | ) | | | (54,670 | ) | | | (535,882 | ) |
| Net increase | | | 17,397,560 | | | $ | 237,342,329 | | | | 2,907,445 | | | $ | 29,108,865 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 4,404,952 | | | $ | 68,046,713 | | | | 5,688,891 | | | $ | 76,692,198 | |
| Shares converted from Class C | | | 52,158 | | | | 747,539 | | | | 30,603 | | | | 419,531 | |
| Dividends reinvested | | | 393,895 | | | | 5,475,142 | | | | 761,268 | | | | 8,085,010 | |
| Shares redeemed | | | (5,400,289 | ) | | | (79,168,629 | ) | | | (4,445,803 | ) | | | (58,098,817 | ) |
| Net increase (decrease) | | | (549,284 | ) | | $ | (4,899,235 | ) | | | 2,034,959 | | | $ | 27,097,922 | |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,895,581 | | | $ | 18,949,256 | | | | 2,129,592 | | | $ | 19,585,283 | |
| Shares converted to Class A | | | (78,426 | ) | | | (747,539 | ) | | | (44,988 | ) | | | (419,531 | ) |
| Dividends reinvested | | | 290,701 | | | | 2,683,170 | | | | 519,008 | | | | 3,757,614 | |
| Shares redeemed | | | (1,491,233 | ) | | | (14,469,003 | ) | | | (1,525,881 | ) | | | (13,812,767 | ) |
| Net increase | | | 616,623 | | | $ | 6,415,884 | | | | 1,077,731 | | | $ | 9,110,599 | |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 3,499,097 | | | $ | 52,548,644 | | | | 6,551,855 | | | $ | 89,713,141 | |
| Dividends reinvested | | | 139,279 | | | | 1,988,908 | | | | 206,658 | | | | 2,250,504 | |
| Shares redeemed | | | (4,238,615 | ) | | | (65,406,834 | ) | | | (5,127,346 | ) | | | (71,611,171 | ) |
| Net increase (decrease) | | | (600,239 | ) | | $ | (10,869,282 | ) | | | 1,631,167 | | | $ | 20,352,474 | |
| Class Y: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,210,303 | | | $ | 17,155,111 | | | | 796,709 | | | $ | 11,239,481 | |
| Dividends reinvested | | | 22,542 | | | | 325,051 | | | | 37,800 | | | | 413,909 | |
| Shares redeemed | | | (370,845 | ) | | | (5,562,734 | ) | | | (182,177 | ) | | | (2,490,755 | ) |
| Net increase | | | 862,000 | | | $ | 11,917,428 | | | | 652,332 | | | $ | 9,162,635 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 22,656,106 | | | $ | 368,505,246 | | | | 15,933,666 | | | $ | 229,349,153 | |
| Dividends reinvested | | | 759,385 | | | | 11,261,680 | | | | 953,077 | | | | 10,731,650 | |
| Shares redeemed | | | (10,331,118 | ) | | | (159,208,355 | ) | | | (7,484,513 | ) | | | (103,653,631 | ) |
| Net increase | | | 13,084,373 | | | $ | 220,558,571 | | | | 9,402,230 | | | $ | 136,427,172 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 4,331,791 | | | $ | 48,331,960 | | | | 1,167,060 | | | $ | 10,800,783 | |
| Shares converted from Class B | | | 191,239 | | | | 1,931,695 | | | | 191,897 | | | | 1,777,871 | |
| Shares converted from Class C | | | 12,551 | | | | 123,962 | | | | 12,949 | | | | 123,857 | |
| Dividends reinvested | | | 703,588 | | | | 6,494,119 | | | | 1,327,983 | | | | 10,198,906 | |
| Shares redeemed | | | (2,811,745 | ) | | | (29,568,530 | ) | | | (1,899,859 | ) | | | (17,257,336 | ) |
| Net increase | | | 2,427,424 | | | $ | 27,313,206 | | | | 800,030 | | | $ | 5,644,081 | |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 180,405 | | | $ | 1,256,084 | | | | 221,477 | | | $ | 1,479,400 | |
| Shares converted to Class A | | | (267,059 | ) | | | (1,931,695 | ) | | | (263,994 | ) | | | (1,777,871 | ) |
| Dividends reinvested | | | 53,607 | | | | 348,979 | | | | 111,241 | | | | 618,499 | |
| Shares redeemed | | | (64,535 | ) | | | (476,066 | ) | | | (85,867 | ) | | | (567,974 | ) |
| Net decrease | | | (97,582 | ) | | $ | (802,698 | ) | | | (17,143 | ) | | $ | (247,946 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,594,809 | | | $ | 12,146,901 | | | | 446,180 | | | $ | 2,944,370 | |
| Shares converted to Class A | | | (18,581 | ) | | | (123,962 | ) | | | (18,533 | ) | | | (123,857 | ) |
| Dividends reinvested | | | 72,948 | | | | 454,464 | | | | 126,861 | | | | 679,974 | |
| Shares redeemed | | | (439,985 | ) | | | (3,067,814 | ) | | | (423,092 | ) | | | (2,746,744 | ) |
| Net increase | | | 1,209,191 | | | $ | 9,409,589 | | | | 131,416 | | | $ | 753,743 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 13,634,150 | | | $ | 160,892,760 | | | | 1,386,207 | | | $ | 13,495,541 | |
| Dividends reinvested | | | 136,279 | | | | 1,304,192 | | | | 153,409 | | | | 1,214,997 | |
| Shares redeemed | | | (2,343,101 | ) | | | (26,604,569 | ) | | | (628,827 | ) | | | (5,576,290 | ) |
| Net increase | | | 11,427,328 | | | $ | 135,592,383 | | | | 910,789 | | | $ | 9,134,248 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Small Cap Focus Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,208,591 | | | $ | 117,294,890 | | | | 24,526,769 | | | $ | 483,804,839 | |
| Shares converted from Class C | | | 2,966 | | | | 67,602 | | | | 13,598 | | | | 292,342 | |
| Dividends reinvested | | | 535,855 | | | | 11,038,609 | | | | 134,336 | | | | 2,275,658 | |
| Shares redeemed | | | (10,396,362 | ) | | | (218,897,878 | ) | | | (14,329,320 | ) | | | (281,299,700 | ) |
| Net increase (decrease) | | | (4,648,950 | ) | | $ | (90,496,777 | ) | | | 10,345,383 | | | $ | 205,073,139 | |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 854,346 | | | $ | 17,176,073 | | | | 5,872,226 | | | $ | 104,857,343 | |
| Shares converted to Class A | | | (3,312 | ) | | | (67,602 | ) | | | (15,155 | ) | | | (292,342 | ) |
| Dividends reinvested | | | 213,864 | | | | 3,956,482 | | | | 69,301 | | | | 1,058,917 | |
| Shares redeemed | | | (2,357,386 | ) | | | (45,373,121 | ) | | | (1,737,269 | ) | | | (30,901,428 | ) |
| Net increase (decrease) | | | (1,292,488 | ) | | $ | (24,308,168 | ) | | | 4,189,103 | | | $ | 74,722,490 | |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 11,716,100 | | | $ | 270,460,844 | | | | 20,978,750 | | | $ | 426,127,765 | |
| Dividends reinvested | | | 497,619 | | | | 10,524,647 | | | | 146,344 | | | | 2,541,988 | |
| Shares redeemed | | | (21,124,546 | ) | | | (507,666,465 | ) | | | (16,437,079 | ) | | | (330,681,997 | ) |
| Net increase (decrease) | | | (8,910,827 | ) | | $ | (226,680,974 | ) | | | 4,688,015 | | | $ | 97,987,756 | |
| Class Y: | | | | | | | | | | | | | | | | |
| Shares sold | | | 8,822,105 | | | $ | 207,222,610 | | | | 3,807,324 | | | $ | 82,404,302 | |
| Dividends reinvested | | | 133,682 | | | | 2,868,815 | | | | 7,242 | | | | 127,601 | |
| Shares redeemed | | | (3,784,003 | ) | | | (89,917,556 | ) | | | (571,021 | ) | | | (12,173,701 | ) |
| Net increase | | | 5,171,784 | | | $ | 120,173,869 | | | | 3,243,545 | | | $ | 70,358,202 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 91,276,709 | | | $ | 2,183,836,177 | | | | 84,385,806 | | | $ | 1,736,307,318 | |
| Dividends reinvested | | | 2,555,372 | | | | 54,838,281 | | | | 488,759 | | | | 8,611,931 | |
| Shares redeemed | | | (47,965,380 | ) | | | (1,093,715,206 | ) | | | (34,394,271 | ) | | | (701,365,500 | ) |
| Net increase | | | 45,866,701 | | | $ | 1,144,959,252 | | | | 50,480,294 | | | $ | 1,043,553,749 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger International Focus Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 289,777 | | | $ | 4,740,621 | | | | 232,258 | | | $ | 3,367,227 | |
| Shares converted from Class B | | | 442,500 | | | | 7,095,292 | | | | 646,187 | | | | 9,281,241 | |
| Shares converted from Class C | | | 2,852 | | | | 45,483 | | | | 7,673 | | | | 112,382 | |
| Dividends reinvested | | | 249,682 | | | | 3,957,495 | | | | 199,154 | | | | 2,563,105 | |
| Shares redeemed | | | (1,013,866 | ) | | | (16,405,429 | ) | | | (1,446,047 | ) | | | (20,773,744 | ) |
| Net decrease | | | (29,055 | ) | | $ | (566,538 | ) | | | (360,775 | ) | | $ | (5,449,789 | ) |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 430,047 | | | $ | 6,099,558 | | | | 692,182 | | | $ | 8,548,811 | |
| Shares converted to Class A | | | (510,496 | ) | | | (7,095,292 | ) | | | (745,819 | ) | | | (9,281,241 | ) |
| Dividends reinvested | | | 48,677 | | | | 667,850 | | | | 36,342 | | | | 405,944 | |
| Shares redeemed | | | (143,024 | ) | | | (1,989,352 | ) | | | (94,543 | ) | | | (1,186,449 | ) |
| Net decrease | | | (174,796 | ) | | $ | (2,317,236 | ) | | | (111,838 | ) | | $ | (1,512,935 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 17,191 | | | $ | 234,371 | | | | 19,353 | | | $ | 232,779 | |
| Shares converted to Class A | | | (3,383 | ) | | | (45,483 | ) | | | (9,057 | ) | | | (112,382 | ) |
| Dividends reinvested | | | 8,313 | | | | 111,390 | | | | 6,179 | | | | 67,724 | |
| Shares redeemed | | | (120,921 | ) | | | (1,705,693 | ) | | | (132,169 | ) | | | (1,600,292 | ) |
| Net decrease | | | (98,800 | ) | | $ | (1,405,415 | ) | | | (115,694 | ) | | $ | (1,412,171 | ) |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 9,635 | | | $ | 142,072 | | | | 11,775 | | | $ | 168,474 | |
| Dividends reinvested | | | 2,417 | | | | 38,342 | | | | 4,470 | | | | 57,531 | |
| Shares redeemed | | | (40,160 | ) | | | (639,872 | ) | | | (104,424 | ) | | | (1,502,128 | ) |
| Net decrease | | | (28,108 | ) | | $ | (459,458 | ) | | | (88,179 | ) | | $ | (1,276,123 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 258,994 | | | $ | 4,789,619 | | | | 116,704 | | | $ | 1,664,093 | |
| Dividends reinvested | | | 35,504 | | | | 567,345 | | | | 34,224 | | | | 443,891 | |
| Shares redeemed | | | (484,662 | ) | | | (6,975,611 | ) | | | (302,144 | ) | | | (4,329,017 | ) |
| Net decrease | | | (190,164 | ) | | $ | (1,618,647 | ) | | | (151,216 | ) | | $ | (2,221,033 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Health Sciences Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 854,557 | | | $ | 24,745,630 | | | | 1,092,551 | | | $ | 29,383,122 | |
| Shares converted from Class C | | | 7,001 | | | | 187,283 | | | | 31,125 | | | | 847,116 | |
| Dividends reinvested | | | 248,077 | | | | 6,740,256 | | | | 316,696 | | | | 7,721,044 | |
| Shares redeemed | | | (1,151,412 | ) | | | (32,912,494 | ) | | | (2,067,110 | ) | | | (53,963,326 | ) |
| Net decrease | | | (41,777 | ) | | $ | (1,239,325 | ) | | | (626,738 | ) | | $ | (16,012,044 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 153,760 | | | $ | 3,349,184 | | | | 110,814 | | | $ | 2,331,623 | |
| Shares converted to Class A | | | (9,237 | ) | | | (187,283 | ) | | | (40,088 | ) | | | (847,116 | ) |
| Dividends reinvested | | | 43,515 | | | | 889,878 | | | | 59,612 | | | | 1,126,072 | |
| Shares redeemed | | | (224,816 | ) | | | (4,738,890 | ) | | | (283,916 | ) | | | (5,940,846 | ) |
| Net decrease | | | (36,778 | ) | | $ | (687,111 | ) | | | (153,578 | ) | | $ | (3,330,267 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 4,814,272 | | | $ | 133,968,058 | | | | 2,540,997 | | | $ | 68,194,857 | |
| Dividends reinvested | | | 201,739 | | | | 5,507,481 | | | | 154,247 | | | | 3,768,246 | |
| Shares redeemed | | | (3,803,485 | ) | | | (114,672,656 | ) | | | (1,861,957 | ) | | | (49,112,744 | ) |
| Net increase | | | 1,212,526 | | | $ | 24,802,883 | | | | 833,287 | | | $ | 22,850,359 | |
* Inception date 6/14/19.
NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2020 and the year ended October 31, 2019 were as follows:
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| Alger Capital Appreciation Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | — | | | $ | — | |
| Long-term capital gain | | | 226,260,940 | | | | 265,949,900 | |
| Total distributions paid | | $ | 226,260,940 | | | $ | 265,949,900 | |
| | | | | | | | | |
| Alger 25 Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | 23,813 | | | $ | 39,246 | |
| Long-term capital gain | | | 148,879 | | | | — | |
| Total distributions paid | | $ | 172,692 | | | $ | 39,246 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| Alger 35 Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | 16,765 | | | $ | 88,217 | |
| Long-term capital gain | | | — | | | | — | |
| Total distributions paid | | $ | 16,765 | | | $ | 88,217 | |
| | | | | | | | | |
| Alger Growth & Income Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | 1,753,078 | | | $ | 1,658,134 | |
| Long-term capital gain | | | 4,157,258 | | | | 5,002,598 | |
| Total distributions paid | | $ | 5,910,336 | | | $ | 6,660,732 | |
| | | | | | | | | |
| Alger Mid Cap Growth Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | — | | | $ | 1,188,196 | |
| Long-term capital gain | | | 14,472,041 | | | | 7,830,524 | |
| Total distributions paid | | $ | 14,472,041 | | | $ | 9,018,720 | |
| | | | | | | | | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | — | | | $ | — | |
| Long-term capital gain | | | 22,961,850 | | | | 26,732,311 | |
| Total distributions paid | | $ | 22,961,850 | | | $ | 26,732,311 | |
| | | | | | | | | |
| Alger Small Cap Growth Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | — | | | $ | — | |
| Long-term capital gain | | | 9,157,081 | | | | 13,540,912 | |
| Total distributions paid | | $ | 9,157,081 | | | $ | 13,540,912 | |
| | | | | | | | | |
| Alger Small Cap Focus Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | 42,353,237 | | | $ | — | |
| Long-term capital gain | | | 55,990,468 | | | | 17,227,374 | |
| Total distributions paid | | $ | 98,343,705 | | | $ | 17,227,374 | |
| | | | | | | | | |
| Alger International Focus Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | 6,030,785 | | | $ | 3,949,584 | |
| Long-term capital gain | | | — | | | | — | |
| Total distributions paid | | $ | 6,030,785 | | | $ | 3,949,584 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED | | | FOR THE YEAR ENDED | |
| | | OCTOBER 31, 2020 | | | OCTOBER 31, 2019 | |
| Alger Health Sciences Fund | | | | | | | | |
| Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | 105,080 | | | $ | 1,800,933 | |
| Long-term capital gain | | | 14,145,044 | | | | 12,206,904 | |
| Total distributions paid | | $ | 14,250,124 | | | $ | 14,007,837 | |
As of October 31, 2020, the components of accumulated gains (losses) on a tax basis were as follows:
| Alger Capital Appreciation Fund | | | | |
| Undistributed ordinary income | | $ | — | |
| Undistributed long-term gains | | | 421,751,297 | |
| Net accumulated earnings | | | 421,751,297 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | (11,848,143 | ) |
| Net unrealized appreciation | | | 1,328,386,150 | |
| Total accumulated earnings | | $ | 1,738,289,304 | |
| | | | | |
| Alger 25 Fund | | | | |
| Undistributed ordinary income | | $ | 396,351 | |
| Undistributed long-term gains | | | 1,149,786 | |
| Net accumulated earnings | | | 1,546,137 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | — | |
| Net unrealized appreciation | | | 6,463,902 | |
| Total accumulated earnings | | $ | 8,010,039 | |
| | | | | |
| Alger 35 Fund | | | | |
| Undistributed ordinary income | | $ | 902,462 | |
| Undistributed long-term gains | | | 1,599,819 | |
| Net accumulated earnings | | | 2,502,281 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | — | |
| Net unrealized appreciation | | | 3,514,323 | |
| Total accumulated earnings | | $ | 6,016,604 | |
| | | | | |
| Alger Growth & Income Fund | | | | |
| Undistributed ordinary income | | $ | 108,851 | |
| Undistributed long-term gains | | | 1,671,215 | |
| Net accumulated earnings | | | 1,780,066 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | — | |
| Net unrealized appreciation | | | 56,770,381 | |
| Total accumulated earnings | | $ | 58,550,447 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Mid Cap Growth Fund | | | | |
| Undistributed ordinary income | | $ | 9,985,370 | |
| Undistributed long-term gains | | | 17,091,242 | |
| Net accumulated earnings | | | 27,076,612 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | — | |
| Net unrealized appreciation | | | 59,096,401 | |
| Total accumulated earnings | | $ | 86,173,013 | |
| | | | | |
| Alger Mid Cap Focus Fund | | | | |
| Undistributed ordinary income | | $ | 4,476,380 | |
| Undistributed long-term gains | | | 2,735,867 | |
| Net accumulated earnings | | | 7,212,247 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | — | |
| Net unrealized appreciation | | | 48,419,756 | |
| Total accumulated losses | | $ | 55,632,003 | |
| | | | | |
| Alger Weatherbie Specialized Growth Fund | | | | |
| Undistributed ordinary income | | $ | — | |
| Undistributed long-term gains | | | 54,751,214 | |
| Net accumulated earnings | | | 54,751,214 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | (5,902,894 | ) |
| Net unrealized appreciation | | | 209,562,909 | |
| Total accumulated earnings | | $ | 258,411,229 | |
| | | | | |
| Alger Small Cap Growth Fund | | | | |
| Undistributed ordinary income | | $ | — | |
| Undistributed long-term gains | | | 2,403,784 | |
| Net accumulated earnings | | | 2,403,784 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | (2,194,860 | ) |
| Net unrealized appreciation | | | 131,988,568 | |
| Total accumulated earnings | | $ | 132,197,492 | |
| | | | | |
| Alger Small Cap Focus Fund | | | | |
| Undistributed ordinary income | | $ | — | |
| Undistributed long-term gains | | | — | |
| Net accumulated earnings | | | — | |
| Capital loss carryforwards | | | (58,079,170 | ) |
| Late year ordinary income losses | | | (35,504,491 | ) |
| Net unrealized appreciation | | | 1,747,176,891 | |
| Total accumulated earnings | | $ | 1,653,593,230 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger International Focus Fund | | | | |
| Undistributed ordinary income | | $ | — | |
| Undistributed long-term gains | | | — | |
| Net accumulated earnings | | | — | |
| Capital loss carryforwards | | | (13,431,827 | ) |
| Late year ordinary income losses | | | (666,247 | ) |
| Net unrealized appreciation | | | 40,039,144 | |
| Total accumulated earnings | | $ | 25,941,070 | |
| | | | | |
| Alger Health Sciences Fund | | | | |
| Undistributed ordinary income | | $ | 5,700,622 | |
| Undistributed long-term gains | | | 26,992,539 | |
| Net accumulated earnings | | | 32,693,161 | |
| Capital loss carryforwards | | | — | |
| Late year ordinary income losses | | | — | |
| Net unrealized appreciation | | | 63,795,076 | |
| Total accumulated earnings | | $ | 96,488,237 | |
At October 31, 2020, Alger Small Cap Focus Fund and Alger International Focus Fund, for federal income tax purposes, had capital loss carryforwards of $58,079,170 and $13,431,827, respectively. These amounts will not be subject to expiration under the Regulated Investment Company Modernization Act of 2010, and these amounts may be applied against future net realized gains until their utilization.
Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Funds on or after January 1, 2011 (Post Act) will not be subject to expiration.
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is determined annually and is attributable primarily to the tax deferral of losses on wash sales, U.S. Internal Revenue Code Section 988 currency transactions, nondeductible expenses on dividends sold short, the tax treatment of partnership investments, the realization of unrealized appreciation of passive foreign investment companies, and return of capital from real estate investment trust investments.
Permanent differences, primarily from net operating losses and real estate investment trusts and partnership investments sold by the Fund, resulted in the following reclassifications among the Fund’s components of net assets at October 31, 2020:
| Alger Capital Appreciation Fund | | | | |
| Distributable earnings | | $ | (40,865,047 | ) |
| Paid-in Capital | | $ | 40,865,047 | |
| | | | | |
| Alger 25 Fund | | | | |
| Distributable earnings | | $ | 1,094 | |
| Paid-in Capital | | $ | (1,094 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger 35 Fund | | | | |
| Distributable earnings | | $ | 244 | |
| Paid-in Capital | | $ | (244 | ) |
| | | | | |
| Alger Growth & Income Fund | | | | |
| Distributable earnings | | $ | 1 | |
| Paid-in Capital | | $ | (1 | ) |
| | | | | |
| Alger Weatherbie Specialized Growth Fund | | | | |
| Distributable earnings | | $ | 2,299,100 | |
| Paid-in Capital | | $ | (2,299,100 | ) |
| | | | | |
| Alger Small Cap Growth Fund | | | | |
| Distributable earnings | | $ | 253,636 | |
| Paid-in Capital | | $ | (253,636 | ) |
| | | | | |
| Alger Small Cap Focus Fund | | | | |
| Distributable earnings | | $ | 4,958,731 | |
| Paid-in Capital | | $ | (4,958,731 | ) |
| | | | | |
| Alger International Focus Fund | | | | |
| Distributable earnings | | $ | 489,806 | |
| Paid-in Capital | | $ | (489,806 | ) |
NOTE 8 — Fair Value Measurements:
The following is a summary of the inputs used as of October 31, 2020 in valuing the Funds’ investments carried at fair value on a recurring basis. Based upon the nature, characteristics, and risks associated with their investments, the Funds have determined that presenting them by security type and sector is appropriate.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Capital Appreciation Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 462,783,021 | | | $ | 444,112,656 | | | $ | 18,670,365 | | | $ | — | |
| Consumer Discretionary | | | 756,811,295 | | | | 727,665,288 | | | | 23,411,669 | | | | 5,734,338 | |
| Consumer Staples | | | 22,435,395 | | | | 22,435,395 | | | | — | | | | — | |
| Financials | | | 97,528,673 | | | | 97,528,673 | | | | — | | | | — | |
| Healthcare | | | 291,303,317 | | | | 291,303,317 | | | | — | | | | — | |
| Industrials | | | 144,487,660 | | | | 144,487,660 | | | | — | | | | — | |
| Information Technology | | | 1,435,801,501 | | | | 1,429,843,170 | | | | 5,958,331 | | | | — | |
| Materials | | | 89,898,944 | | | | 89,898,944 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 3,301,049,806 | | | $ | 3,247,275,103 | | | $ | 48,040,365 | | | $ | 5,734,338 | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 35,026,913 | | | | 35,026,913 | | | | — | | | | — | |
| SPECIAL PURPOSE VEHICLE | | | | | | | | | | | | | | | | |
| Information Technology | | | 2,775,000 | | | | — | | | | — | | | | 2,775,000 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 3,338,851,719 | | | $ | 3,282,302,016 | | | $ | 48,040,365 | | | $ | 8,509,338 | |
| | | | | | | | | | | | | | | | | |
| Alger 25 Fund | | | TOTAL | | | | LEVEL 1 | | | | LEVEL 2 | | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 3,177,731 | | | $ | 3,177,731 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 4,974,142 | | | | 4,974,142 | | | | — | | | | — | |
| Financials | | | 615,123 | | | | 615,123 | | | | — | | | | — | |
| Healthcare | | | 932,640 | | | | 932,640 | | | | — | | | | — | |
| Industrials | | | 784,173 | | | | 784,173 | | | | — | | | | — | |
| Information Technology | | | 10,159,665 | | | | 10,159,665 | | | | — | | | | — | |
| Materials | | | 718,939 | | | | 718,939 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 21,362,413 | | | $ | 21,362,413 | | | $ | — | | | $ | — | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 712,272 | | | | 712,272 | | | | — | | | | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 22,074,685 | | | $ | 22,074,685 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | |
| Alger 35 Fund | | | TOTAL | | | | LEVEL 1 | | | | LEVEL 2 | | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 1,860,696 | | | $ | 1,860,696 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 3,559,812 | | | | 3,559,812 | | | | — | | | | — | |
| Consumer Staples | | | 420,654 | | | | 420,654 | | | | — | | | | — | |
| Financials | | | 202,718 | | | | 202,718 | | | | — | | | | — | |
| Healthcare | | | 2,448,380 | | | | 2,448,380 | | | | — | | | | — | |
| Industrials | | | 618,474 | | | | 618,474 | | | | — | | | | — | |
| Information Technology | | | 4,481,424 | | | | 4,481,424 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 13,592,158 | | | $ | 13,592,158 | | | $ | — | | | $ | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 13,592,158 | | | $ | 13,592,158 | | | $ | — | | | $ | — | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Growth & Income Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 14,305,022 | | | $ | 14,305,022 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 10,283,409 | | | | 10,283,409 | | | | — | | | | — | |
| Consumer Staples | | | 8,782,046 | | | | 8,782,046 | | | | — | | | | — | |
| Energy | | | 1,911,575 | | | | 1,911,575 | | | | — | | | | — | |
| Financials | | | 12,705,724 | | | | 12,705,724 | | | | — | | | | — | |
| Healthcare | | | 15,159,584 | | | | 15,159,584 | | | | — | | | | — | |
| Industrials | | | 6,681,688 | | | | 6,681,688 | | | | — | | | | — | |
| Information Technology | | | 28,877,085 | | | | 28,877,085 | | | | — | | | | — | |
| Materials | | | 2,269,044 | | | | 2,269,044 | | | | — | | | | — | |
| Utilities | | | 1,611,590 | | | | 1,611,590 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 102,586,767 | | | $ | 102,586,767 | | | $ | — | | | $ | — | |
| MASTER LIMITED PARTNERSHIP | | | | | | | | | | | | | | | | |
| Energy | | | 621,863 | | | | 621,863 | | | | — | | | | — | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Financials | | | 731,811 | | | | 731,811 | | | | — | | | | — | |
| Real Estate | | | 4,452,411 | | | | 4,452,411 | | | | — | | | | — | |
| TOTAL REAL ESTATE INVESTMENT TRUST | | $ | 5,184,222 | | | $ | 5,184,222 | | | $ | — | | | $ | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 108,392,852 | | | $ | 108,392,852 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | |
| Alger Mid Cap Growth Fund | | | TOTAL | | | | LEVEL 1 | | | | LEVEL 2 | | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 14,105,454 | | | $ | 14,105,454 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 41,192,405 | | | | 39,438,336 | | | | 1,754,069 | | | | — | |
| Consumer Staples | | | 4,439,745 | | | | 4,439,745 | | | | — | | | | — | |
| Financials | | | 5,475,181 | | | | 5,475,181 | | | | — | | | | — | |
| Healthcare | | | 57,976,211 | | | | 54,494,664 | | | | 3,481,547 | | | | — | |
| Industrials | | | 29,330,067 | | | | 29,330,067 | | | | — | | | | — | |
| Information Technology | | | 68,012,745 | | | | 67,376,172 | | | | 636,573 | | | | — | |
| Materials | | | 1,679,608 | | | | 1,679,608 | | | | — | | | | — | |
| Real Estate | | | 1,526,204 | | | | 1,526,204 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 223,737,620 | | | $ | 217,865,431 | | | $ | 5,872,189 | | | $ | — | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 32,942 | | | | — | | | | — | | | | 32,942 | |
| WARRANTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 5,333,479 | | | | — | | | | 5,333,479 | | | | — | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 407,141 | | | | — | | | | — | | | | 407,141 | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 4,085,510 | | | | 4,085,510 | | | | — | | | | — | |
| SPECIAL PURPOSE VEHICLE | | | | | | | | | | | | | | | | |
| Information Technology | | | 1,200,000 | | | | — | | | | — | | | | 1,200,000 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 234,796,692 | | | $ | 221,950,941 | | | $ | 11,205,668 | | | $ | 1,640,083 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Mid Cap Focus Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 23,789,014 | | | $ | 23,789,014 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 103,290,445 | | | | 103,290,445 | | | | — | | | | — | |
| Financials | | | 8,563,404 | | | | 8,563,404 | | | | — | | | | — | |
| Healthcare | | | 77,662,218 | | | | 77,662,218 | | | | — | | | | — | |
| Industrials | | | 46,167,920 | | | | 46,167,920 | | | | — | | | | — | |
| Information Technology | | | 96,609,970 | | | | 96,609,970 | | | | — | | | | — | |
| Real Estate | | | 4,729,868 | | | | 4,729,868 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 360,812,839 | | | $ | 360,812,839 | | | $ | — | | | $ | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 360,812,839 | | | $ | 360,812,839 | | | $ | — | | | $ | — | |
| Alger Weatherbie Specialized Growth Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Consumer Discretionary | | $ | 117,430,993 | | | $ | 117,430,993 | | | $ | — | | | $ | — | |
| Energy | | | 3,912,020 | | | | 3,912,020 | | | | — | | | | — | |
| Financials | | | 79,917,952 | | | | 79,917,952 | | | | — | | | | — | |
| Healthcare | | | 294,422,002 | | | | 294,422,002 | | | | — | | | | — | |
| Industrials | | | 87,907,694 | | | | 87,907,694 | | | | — | | | | — | |
| Information Technology | | | 242,301,510 | | | | 242,301,510 | | | | — | | | | — | |
| Real Estate | | | 57,295,309 | | | | 57,295,309 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 883,187,480 | | | $ | 883,187,480 | | | $ | — | | | $ | — | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 34,721 | | | | — | | | | — | | | | 34,721 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 883,222,201 | | | $ | 883,187,480 | | | $ | — | | | $ | 34,721 | |
| Alger Small Cap Growth Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 12,048,058 | | | $ | 12,048,058 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 42,542,755 | | | | 42,542,755 | | | | — | | | | — | |
| Consumer Staples | | | 7,718,351 | | | | 7,718,351 | | | | — | | | | — | |
| Energy | | | 1,729,238 | | | | 1,729,238 | | | | — | | | | — | |
| Financials | | | 10,826,959 | | | | 10,826,959 | | | | — | | | | — | |
| Healthcare | | | 149,350,996 | | | | 146,798,651 | | | | 2,552,345 | | | | — | |
| Industrials | | | 12,857,605 | | | | 12,857,605 | | | | — | | | | — | |
| Information Technology | | | 101,498,427 | | | | 101,498,427 | | | | — | | | | — | |
| Materials | | | 3,714,942 | | | | 3,714,942 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 342,287,331 | | | $ | 339,734,986 | | | $ | 2,552,345 | | | $ | — | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 7,603 | | | | — | | | | — | | | | 7,603 | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 120,600 | | | | — | | | | — | | | | 120,600 | |
| REAL ESTATE INVESTMENT TRUST | | | | | | | | | | | | | | | | |
| Real Estate | | | 6,187,728 | | | | 6,187,728 | | | | — | | | | — | |
| SPECIAL PURPOSE VEHICLE | | | | | | | | | | | | | | | | |
| Information Technology | | | 1,800,000 | | | | — | | | | — | | | | 1,800,000 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 350,403,262 | | | $ | 345,922,714 | | | $ | 2,552,345 | | | $ | 1,928,203 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| Alger Small Cap Focus Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 85,387,113 | | | $ | 85,387,113 | | | $ | — | | | $ | — | |
| Consumer Discretionary | | | 547,188,704 | | | | 547,188,704 | | | | — | | | | — | |
| Healthcare | | | 2,813,084,477 | | | | 2,813,084,477 | | | | — | | | | — | |
| Industrials | | | 228,124,974 | | | | 228,124,974 | | | | — | | | | — | |
| Information Technology | | | 2,058,956,527 | | | | 2,058,956,527 | | | | — | | | | — | |
| Materials | | | 77,699,931 | | | | 77,699,931 | | | | — | | | | — | |
| TOTAL COMMON STOCKS | | $ | 5,810,441,726 | | | $ | 5,810,441,726 | | | $ | — | | | $ | — | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 8,214 | | | | — | | | | — | | | | 8,214 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 5,810,449,940 | | | $ | 5,810,441,726 | | | $ | — | | | $ | 8,214 | |
| Alger International Focus Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Communication Services | | $ | 13,139,243 | | | $ | — | | | $ | 13,139,243 | | | $ | — | |
| Consumer Discretionary | | | 37,287,329 | | | | 13,662,141 | | | | 23,625,188 | | | | — | |
| Consumer Staples | | | 4,837,008 | | | | — | | | | 4,837,008 | | | | — | |
| Energy | | | 3,353,544 | | | | — | | | | 3,353,544 | | | | — | |
| Financials | | | 16,886,874 | | | | 3,388,960 | | | | 13,497,914 | | | | — | |
| Healthcare | | | 15,852,875 | | | | 3,276,138 | | | | 12,576,737 | | | | — | |
| Industrials | | | 26,287,457 | | | | — | | | | 26,287,457 | | | | — | |
| Information Technology | | | 31,416,184 | | | | 6,413,788 | | | | 25,002,396 | | | | — | |
| Materials | | | 4,108,283 | | | | — | | | | 4,108,283 | | | | — | |
| TOTAL COMMON STOCKS | | $ | 153,168,797 | | | $ | 26,741,027 | | | $ | 126,427,770 | | | $ | — | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 153,168,797 | | | $ | 26,741,027 | | | $ | 126,427,770 | | | $ | — | |
| Alger Health Sciences Fund | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| COMMON STOCKS | | | | | | | | | | | | | | | | |
| Financials | | $ | 1,194,625 | | | $ | 1,194,625 | | | $ | — | | | $ | — | |
| Healthcare | | | 256,303,833 | | | | 245,257,025 | | | | 11,046,808 | | | | — | |
| TOTAL COMMON STOCKS | | $ | 257,498,458 | | | $ | 246,451,650 | | | $ | 11,046,808 | | | $ | — | |
| PREFERRED STOCKS | | | | | | | | | | | | | | | | |
| Healthcare | | | 134,605 | | | | — | | | | — | | | | 134,605 | |
| WARRANTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 5,840,004 | | | | — | | | | 5,840,004 | | | | — | |
| RIGHTS | | | | | | | | | | | | | | | | |
| Healthcare | | | 1,350,327 | | | | — | | | | — | | | | 1,350,327 | |
| TOTAL INVESTMENTS IN SECURITIES | | $ | 264,823,394 | | | $ | 246,451,650 | | | $ | 16,886,812 | | | $ | 1,484,932 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Capital Appreciation Fund | | Common Stocks | |
| Opening balance at November 1, 2019 | | $ | 6,002,522 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | (5,663,177 | ) |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | 729,222 | |
| Purchases and sales | | | | |
| Purchases/ Conversions | | | 4,665,771 | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 5,734,338 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | 613,187 | |
| Alger Capital Appreciation Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 4,062,807 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | 602,964 | |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales/ Conversions | | | (4,665,771 | ) |
| Closing balance at October 31, 2020 | | | — | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | — | |
| Alger Capital Appreciation Fund | | Special Purpose Vehicle | |
| Opening balance at November 1, 2019 | | $ | — | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | — | |
| Purchases and sales | | | | |
| Purchases | | | 2,775,000 | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 2,775,000 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | — | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Mid Cap Growth Fund | | Common Stocks | |
| Opening balance at November 1, 2019 | | $ | 94,162 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | (605,033 | ) |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | 12,397 | |
| Purchases and sales | | | | |
| Purchases/ Conversions | | | 498,474 | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | — | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | — | |
| Alger Mid Cap Growth Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 666,843 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (135,427 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales/ Conversions | | | (498,474 | ) |
| Closing balance at October 31, 2020 | | | 32,942 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (199,845 | ) |
| Alger Mid Cap Growth Fund | | Rights | |
| Opening balance at November 1, 2019 | | $ | 1,905,891 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (1,498,750 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 407,141 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (1,498,750 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| | | Special Purpose | |
| Alger Mid Cap Growth Fund | | Vehicle | |
| Opening balance at November 1, 2019 | | $ | — | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | — | |
| Purchases and sales | | | | |
| Purchases | | | 1,200,000 | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 1,200,000 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | — | |
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Weatherbie Specialized Growth Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 245,362 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (210,641 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 34,721 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (210,641 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Small Cap Growth Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 53,729 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (46,126 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 7,603 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (46,126 | ) |
| Alger Small Cap Growth Fund | | Rights | |
| Opening balance at November 1, 2019 | | $ | 564,546 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (443,946 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 120,600 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (443,946 | ) |
| | | Special Purpose | |
| Alger Small Cap Growth Fund | | Vehicle | |
| Opening balance at November 1, 2019 | | $ | — | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | — | |
| Purchases and sales | | | | |
| Purchases | | | 1,800,000 | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 1,800,000 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | — | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Small Cap Focus Fund | | Rights | |
| Opening balance at November 1, 2019 | | $ | 38,453 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (30,239 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 8,214 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (30,239 | ) |
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Health Sciences Fund | | Preferred Stocks | |
| Opening balance at November 1, 2019 | | $ | 951,208 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (816,603 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 134,605 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (816,603 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FAIR VALUE | |
| | | MEASUREMENTS | |
| | | USING SIGNIFICANT | |
| | | UNOBSERVABLE | |
| | | INPUTS (LEVEL 3) | |
| Alger Health Sciences Fund | | Rights | |
| Opening balance at November 1, 2019 | | $ | 6,321,097 | |
| Transfers into Level 3 | | | — | |
| Transfers out of Level 3 | | | — | |
| Total gains or losses | | | | |
| Included in net realized gain (loss) on investments | | | — | |
| Included in net change in unrealized appreciation (depreciation) on investments | | | (4,970,770 | ) |
| Purchases and sales | | | | |
| Purchases | | | — | |
| Sales | | | — | |
| Closing balance at October 31, 2020 | | | 1,350,327 | |
| Net change in unrealized appreciation (depreciation) attributable to investments still held at October 31, 2020* | | $ | (4,970,770 | ) |
* Net change in unrealized appreciation (depreciation) is included in net change in unrealized appreciation (depreciation) on investments in the accompanying statement of operations.
The following table provides quantitative information about each Fund’s Level 3 fair value measurements of the Funds’ investments as of October 31, 2020. The table below is not intended to be all-inclusive, but rather provides information on the Level 3 inputs as they relate to the Funds’ fair value measurements.
| | | Fair Value | | | Valuation | | | Unobservable | | | | | Weighted | |
| | | October 31, 2020 | | | Methodology | | | Input | | Input/Range | | | Average Inputs | |
| Alger Capital Appreciation Fund | | | | | | | | | | | | | | | | | | |
| Common Stocks | | $ | 5,734,338 | | | | Income | | | Probability of | | | 15.00%-50.00% | | | | N/A | |
| | | | | | | | Approach | | | Success | | | | | | | | |
| | | | | | | | | | | Discount Rate | | | 4.83% | | | | N/A | |
| Special Purpose Vehicle | | | 2,775,000 | | | | Cost | | | Priced at Cost | | | N/A | | | | N/A | |
| | | | | | | | Approach | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | $ | 32,942 | | | | Income | | | Discount Rate | | | 72.50%-77.50% | | | | N/A | |
| | | | | | | | Approach | | | | | | | | | | | |
| Rights | | | 407,141 | | | | Income | | | Probability of | | | 0.00%-60.00% | | | | N/A | |
| | | | | | | | Approach | | | Success | | | | | | | | |
| | | | | | | | | | | Discount Rate | | | 5.52%-6.16% | | | | N/A | |
| Special Purpose Vehicle | | | 1,200,000 | | | | Cost | | | Priced at Cost | | | N/A | | | | N/A | |
| | | | | | | | Approach | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | $ | 34,721 | | | | Income | | | Discount Rate | | | 72.50%-77.50% | | | | N/A | |
| | | | | | | | Approach | | | | | | | | | | | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | Fair Value | | | Valuation | | | Unobservable | | | | | Weighted | |
| | | October 31, 2020 | | | Methodology | | | Input | | Input/Range | | | Average Inputs | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | $ | 7,603 | | | | Income | | | Discount Rate | | | 72.50%-77.50% | | | | N/A | |
| | | | | | | | Approach | | | | | | | | | | | |
| Rights | | | 120,600 | | | | Income | | | Probability of | | | 0.00%-60.00% | | | | N/A | |
| | | | | | | | Approach | | | Success | | | | | | | | |
| | | | | | | | | | | Discount Rate | | | 5.52%-6.16% | | | | N/A | |
| Special Purpose Vehicle | | | 1,800,000 | | | | Cost | | | Priced at Cost | | | N/A | | | | N/A | |
| | | | | | | | Approach | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Alger Small Cap Focus Fund | | | | | | | | | | | | | | | | | | |
| Rights | | $ | 8,214 | | | | Income | | | Probability of | | | 0.00%-60.00% | | | | N/A | |
| | | | | | | | Approach | | | Success | | | | | | | | |
| | | | | | | | | | | Discount Rate | | | 5.52%-6.16% | | | | N/A | |
| | | | | | | | | | | | | | | | | | | |
| Alger Health Sciences Fund | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | $ | 134,605 | | | | Income | | | Discount Rate | | | 72.50%-77.50% | | | | N/A | |
| | | | | | | | Approach | | | | | | | | | | | |
| Rights | | | 1,350,327 | | | | Income | | | Probability of | | | 0.00%-60.00% | | | | N/A | |
| | | | | | | | Approach | | | Success | | | | | | | | |
| | | | | | | | | | | Discount Rate | | | 5.52%-6.16% | | | | N/A | |
The significant unobservable inputs used in the fair value measurement of the Fund’s securities are revenue and EBITDA multiples, discount rates, and the probabilities of success of certain outcomes. Significant increases and decreases in these inputs in isolation and interrelationships between these inputs could result in significantly higher or lower fair value measurements than those noted in the table above. Generally, all other things being equal, increases in revenue and EBITDA multiples, decreases in discount rates, and increases in the probabilities of success result in higher fair value measurements, whereas decreases in revenues and EBITDA multiples, increases in discount rates, and decreases in the probabilities of success result in lower fair value measurements.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statements purposes. As of October 31, 2020, such assets were categorized within the ASC 820 disclosure hierarchy as follows:
| | | TOTAL | | | LEVEL 1 | | | LEVEL 2 | | | LEVEL 3 | |
| Cash, Foreign Cash and Cash Equivalents: | | | | | | | | | | | | | | | | |
| Alger Capital Appreciation Fund | | $ | 8,429,354 | | | $ | – | | | $ | 8,429,354 | | | $ | – | |
| Alger 25 Fund | | | 466,920 | | | | – | | | | 466,920 | | | | – | |
| Alger 35 Fund | | | 905,917 | | | | – | | | | 905,917 | | | | – | |
| Alger Growth & Income Fund | | | 605,561 | | | | – | | | | 605,561 | | | | – | |
| Alger Mid Cap Growth Fund | | | 2,506,276 | | | | – | | | | 2,506,276 | | | | – | |
| Alger Mid Cap Focus Fund | | | 19,649,253 | | | | – | | | | 19,649,253 | | | | – | |
| Alger Weatherbie Specialized Growth Fund | | | 71,821,782 | | | | – | | | | 71,821,782 | | | | – | |
| Alger Small Cap Growth Fund | | | 64,929,222 | | | | – | | | | 64,929,222 | | | | – | |
| Alger Small Cap Focus Fund | | | 142,998,721 | | | | – | | | | 142,998,721 | | | | – | |
| Alger International Focus Fund | | | 1,423,797 | | | | 160,804 | | | | 1,262,993 | | | | – | |
| Alger Health Sciences Fund | | | 6,148,853 | | | | – | | | | 6,148,853 | | | | – | |
NOTE 9 — Derivatives:
FASB Accounting Standards Codification 815 – Derivatives and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
Options—The Funds seek to capture the majority of the returns associated with equity market investments. To meet this investment goal, the Funds invest in a broadly diversified portfolio of common stocks, the Funds may also buy and sell call and put options on equities and equity indexes. The Funds may also purchase call options to increase their exposure to the stock market and also provide diversification of risk. The Funds may also purchase put options in order to protect from significant market declines that may occur over a short period of time. The Funds may also write covered call and cash secured put options to generate cash flows while reducing the volatility of the Funds’ portfolios. The cash flows may be an important source of the Funds’ returns, although written call options may reduce the Funds’ ability to profit from increases in the value of the underlying security or equity portfolio. The value of a call option generally increases as the price of the underlying stock increases and decreases as the stock decreases in price. Conversely, the value of a put option generally increases as the price of the underlying stock decreases and decreases as the stock increases in price. The combination of the diversified stock portfolio and the purchase and sale of options is intended to provide the Funds with the majority of the returns associated with equity market investments but with reduced volatility and returns that are augmented with the cash flows from the sale of options.
The Funds’ option contracts were not subject to any rights of offset with any counterparty. All of the Funds’ options were exchange traded which utilize a clearinghouse that acts as an intermediary between buyer and seller, receiving initial and maintenance margin from both, and guaranteeing performance of the option contract.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Forward Foreign Currency Contracts—In connection with portfolio purchases and sales of securities denominated in foreign currencies, the Funds may enter into forward foreign currency contracts. Additionally, each Fund may enter into such contracts to economically hedge certain other foreign currency denominated investments. These contracts are valued at the current cost of covering or offsetting such contracts and the related realized and unrealized foreign exchange gains and losses are included in the Statements of Operations. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations.
There were no derivative instruments held by the Funds throughout the year or as of October 31, 2020.
NOTE 10 — Principal Risks:
Alger Capital Appreciation Fund — Investing in the stock market involves risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumer’s disposable income, consumer preferences and social trends. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions.
Alger 25 Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumer’s disposable income, consumer preferences and social trends. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Alger 35 Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
Alger Growth & Income Fund — Investing in the stock market involves risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Income-producing securities may cut or fail to declare dividends due to market downturns or for other reasons.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Alger Mid Cap Growth Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Mid Cap Focus Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Investing in companies of medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Alger Weatherbie Specialized Growth Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign and Emerging Market securities involve special risks including currency risk and risks related to political, social, or economic conditions.
Alger Small Cap Growth Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Foreign and Emerging Market securities involve special risks including currency risk and risks related to political, social, or economic conditions.
Alger Small Cap Focus Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Alger International Focus Fund — Investing in the stock market involves certain risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio. Foreign and emerging Markets securities involves special risks including currency fluctuations, less liquidity, inefficient trading, political instability, and increased volatility. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
Alger Health Sciences Fund — Investing in the stock market involves risks, including the potential loss of principal. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investing in companies of small capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. Private placements are offerings of a company’s securities not registered with the SEC and not offered to the public, for which limited information may be available. Such investments are generally considered to be illiquid. Foreign securities involve special risks including currency risk and risks related to political, social, or economic conditions. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 11 — Affiliated Securities:
The issuers of the securities listed below are deemed to be affiliates of the Funds because the Funds or their affiliates owned 5% or more of the issuer’s voting securities during all or part of the year ended October 31, 2020. Purchase and sale transactions, interest income and dividend income earned during the year were as follows:
| | | | | | | | | | | | | | | | | | Net Increase | | | | |
| | | | | | | | | | | | | | | | | | (Decrease) | | | | |
| | | Value | | | | | | | | | Dividend/ | | | | | | in | | | Value at | |
| | | October 31, | | | Purchases/ | | | Sales/ | | | Interest | | | Realized | | | Unrealized | | | October 31, | |
| Security | | 2019 | | | Conversion | | | Conversion | | | Income | | | Gain (Loss) | | | App(Dep) | | | 2020 | |
| Alger Capital Appreciation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Special Purpose Vehicle | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Crosslink Ventures Capital LLC | | $ | – | | | $ | 2,775,000 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | 2,775,000 | |
| Total | | $ | – | | | $ | 2,775,000 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | 2,775,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Net Increase | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | (Decrease) | | | | | |
| | | | Value | | | | | | | | | | | | Dividend/ | | | | | | | | in | | | | Value at | |
| | | | October 31, | | | | Purchases/ | | | | Sales/ | | | | Interest | | | | Realized | | | | Unrealized | | | | October 31, | |
| Security | | | 2019 | | | | Conversion | | | | Conversion | | | | Income | | | | Gain (Loss) | | | | App(Dep) | | | | 2020 | |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | $ | 232,787 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (199,845 | ) | | $ | 32,942 | |
| Special Purpose Vehicle | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Crosslink Ventures Capital LLC | | | – | | | | 1,200,000 | | | | – | | | | – | | | | – | | | | – | | | | 1,200,000 | |
| Total | | $ | 232,787 | | | $ | 1,200,000 | | | $ | – | | | $ | – | | | $ | – | | | $ | (199,845 | ) | | $ | 1,232,942 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Net Increase | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | (Decrease) | | | | | |
| | | | Value | | | | | | | | | | | | Dividend/ | | | | | | | | in | | | | Value at | |
| | | | October 31, | | | | Purchases/ | | | | Sales/ | | | | Interest | | | | Realized | | | | Unrealized | | | | October 31, | |
| Security | | | 2019 | | | | Conversion | | | | Conversion | | | | Income | | | | Gain (Loss) | | | | App(Dep) | | | | 2020 | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | $ | 245,362 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (210,641 | ) | | $ | 34,721 | |
| Total | | $ | 245,362 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (210,641 | ) | | $ | 34,721 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | | | | | | | | | | | | | | | | Net Increase | | | | |
| | | | | | | | | | | | | | | | | | (Decrease) | | | | |
| | | Value | | | | | | | | | Dividend/ | | | | | | in | | | Value at | |
| | | October 31, | | | Purchases/ | | | Sales/ | | | Interest | | | Realized | | | Unrealized | | | October 31, | |
| Security | | 2019 | | | Conversion | | | Conversion | | | Income | | | Gain (Loss) | | | App(Dep) | | | 2020 | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | $ | 53,729 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (46,126 | ) | | $ | 7,603 | |
| Special Purpose Vehicle | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Crosslink Ventures Capital LLC | | | – | | | | 1,800,000 | | | | – | | | | – | | | | – | | | | – | | | | 1,800,000 | |
| Total | | $ | 53,729 | | | $ | 1,800,000 | | | $ | – | | | $ | – | | | $ | – | | | $ | (46,126 | ) | | $ | 1,807,603 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Net Increase | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | (Decrease) | | | | | |
| | | | Value | | | | | | | | | | | | Dividend/ | | | | | | | | in | | | | Value at | |
| | | | October 31, | | | | Purchases/ | | | | Sales/ | | | | Interest | | | | Realized | | | | Unrealized | | | | October 31, | |
| Security | | | 2019 | | | | Conversion | | | | Conversion | | | | Income | | | | Gain (Loss) | | | | App(Dep) | | | | 2020 | |
| Alger Health Sciences Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prosetta Biosciences, Inc., Series D | | $ | 951,208 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (816,603 | ) | | $ | 134,605 | |
| Total | | $ | 951,208 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (816,603 | ) | | $ | 134,605 | |
NOTE 12 — Subsequent Events:
Management of each Fund has evaluated events that have occurred subsequent to October 31, 2020, through the issuance date of the Financial Statements. The following items were noted which require recognition and/or disclosure:
On September 29, 2020, Alger Management and the Board, including the Independent Trustees, agreed to amend the investment advisory agreement between Alger Management and the Trust, on behalf of the Alger 25 Fund and the Alger 35 Fund, subject to shareholder approval. The proposed amendment (the “Amendment”) would remove the existing fulcrum fee for each Fund, and implement a new advisory fee at a rate of 0.45% of average daily net assets of the Fund.
On October 30, 2020, at a special meeting of shareholders, shareholders of record of the Alger 25 Fund approved the Amendment. Therefore, effective November 1, 2020, the advisory fee for the Alger 25 Fund will be 0.45% of average daily net assets of the Fund.
On December 18, 2020, at a special meeting of shareholders, shareholders of Alger 35 Fund approved a proposal to amend the investment advisory agreement to remove the fulcrum fee structure and implement an advisory fee of 0.45% of average daily net assets of the Fund. The advisory fee for the fiscal year ending October 31, 2021, will be the lesser of (i) 0.45% of average daily net assets of Alger 35 Fund; and (ii) the fulcrum fee of a minimum of 0.30% if performance matches or falls below the return of the S&P 500 Index, and a maximum of 0.80% if performance exceeds the S&P 500 Index. The advisory fee of 0.45% will become effective on November 1, 2021.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
On September 29, 2020 the Board approved a change in the advisory fee rate for Alger Mid Cap Focus Fund. Effective November 1, 2020, the advisory fee rate, based on a percentage of average daily net assets, for Alger Mid Cap Focus Fund is 0.70% for assets up to $250 million and 0.50% for assets in excess of $250 million.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of The Alger Funds:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of The Alger Funds comprised of Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund, and Alger Health Sciences Fund (collectively, the “Funds”), including the schedules of investments, as of October 31, 2020, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended for Alger Capital Appreciation Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund, and Alger Health Sciences Fund, the related changes in net assets, and the financial highlights for the periods indicated in the table below for Alger 25 Fund, Alger 35 Fund, and Alger Mid Cap Focus Fund, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the funds listed above constituting The Alger Funds as of October 31, 2020, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended (or for the period listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the period listed in the table below), in conformity with accounting principles generally accepted in the United States of America.
| Individual Fund comprising | | Statements of | | |
| The Alger Funds | | Changes in Net Assets | | Financial Highlights |
| Alger 25 Fund | | For the years ended October 31, 2020 and 2019 | | For the years ended October 31, 2020, 2019, and the period from December 28, 2017 (commencement of operations) through October 31, 2018 |
| | | | | |
| Alger 35 Fund | | For the years ended October 31, 2020 and 2019 | | For the years ended October 31, 2020, 2019, and the period from March 29, 2018 (commencement of operations) through October 31, 2018 |
| | | | | |
| Alger Mid Cap Focus Fund | | For the year ended October 31, 2020, and the period from June 14, 2019 (commencement of operations) through October 31, 2019 |
| | | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
New York, New York
December 21, 2020
We have served as the auditor of one or more investment companies within the group of investment companies since 2009.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited)
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: transaction costs, if applicable, including sales charges (loads) and redemption fees; 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, 2020 and ending October 31, 2020 and held for the entire period.
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 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 Six Months Ended October 31, 2020” 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 actual expense ratio for each class of the Fund’s 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, such as sales charges (loads) and redemption fees. Therefore, the second line under each class of shares in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| | | | | | | | | | | | Annualized | |
| | | | | | | | | Expenses | | | Expense Ratio | |
| | | | | | | | | Paid During | | | For the | |
| | | Beginning | | | Ending | | | the Six Months | | | Six Months | |
| | | Account | | | Account | | | Ended | | | Ended | |
| | | Value | | | Value | | | October 31, | | | October 31, | |
| | | May 1, 2020 | | | October 31, 2020 | | | 2020(a) | | | 2020(b) | |
| Alger Capital Appreciation Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,166.60 | | | $ | 6.37 | | | | 1.17 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.25 | | | | 5.94 | | | | 1.17 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,216.60 | | | | 10.64 | | | | 1.91 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,015.53 | | | | 9.68 | | | | 1.91 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,233.30 | | | | 4.72 | | | | 0.84 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.91 | | | | 4.27 | | | | 0.84 | |
| | | | | | | | | | | | | | | | | | | |
| Alger 25 Fund | | | | | | | | | | | | | | | | |
| Class P | | Actual | | $ | 1,000.00 | | | $ | 1,259.00 | | | $ | 5.11 | | | | 0.90 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.61 | | | | 4.57 | | | | 0.90 | |
| Class P-2 | | Actual | | | 1,000.00 | | | | 1,257.30 | | | | 5.56 | | | | 0.98 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.21 | | | | 4.98 | | | | 0.98 | |
| | | | | | | | | | | | | | | | | | | |
| Alger 35 Fund | | | | | | | | | | | | | | | | |
| Class P | | Actual | | $ | 1,000.00 | | | $ | 1,319.90 | | | $ | 5.25 | | | | 0.90 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.61 | | | | 4.57 | | | | 0.90 | |
| Class P-2 | | Actual | | | 1,000.00 | | | | 1,318.50 | | | | 6.18 | | | | 1.06 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.81 | | | | 5.38 | | | | 1.06 | |
| | | | | | | | | | | | | | | | | | | |
| Alger Growth & Income Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,050.50 | | | $ | 5.46 | | | | 1.06 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.81 | | | | 5.38 | | | | 1.06 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,094.90 | | | | 9.53 | | | | 1.81 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,016.04 | | | | 9.17 | | | | 1.81 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,111.20 | | | | 3.66 | | | | 0.69 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,021.67 | | | | 3.51 | | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,298.80 | | | $ | 7.51 | | | | 1.30 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,018.60 | | | | 6.60 | | | | 1.30 | |
| Class B | | Actual | | | 1,000.00 | | | | 1,321.30 | | | | 7.06 | | | | 1.21 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.05 | | | | 6.14 | | | | 1.21 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,355.60 | | | | 12.43 | | | | 2.10 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,014.58 | | | | 10.63 | | | | 2.10 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,372.50 | | | | 5.90 | | | | 0.99 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.16 | | | | 5.03 | | | | 0.99 | |
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| | | | | | | | | | | | Annualized | |
| | | | | | | | | Expenses | | | Expense Ratio | |
| | | | | | | | | Paid During | | | For the | |
| | | Beginning | | | Ending | | | the Six Months | | | Six Months | |
| | | Account | | | Account | | | Ended | | | Ended | |
| | | Value | | | Value | | | October 31, | | | October 31, | |
| | | May 1, 2020 | | | October 31, 2020 | | | 2020(a) | | | 2020(b) | |
| Alger Mid Cap Focus Fund | | | | | | | | | | | | | | | | |
| Class I | | Actual | | $ | 1,000.00 | | | $ | 1,359.10 | | | $ | 6.58 | | | | 1.11 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.56 | | | | 5.63 | | | | 1.11 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,361.20 | | | | 5.10 | | | | 0.86 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.81 | | | | 4.37 | | | | 0.86 | |
| | | | | | | | | | | | | | | | | | | |
| Alger Weatherbie Specialized Growth Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,210.80 | | | $ | 7.06 | | | | 1.27 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,018.75 | | | | 6.44 | | | | 1.27 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,264.30 | | | | 11.55 | | | | 2.03 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,014.93 | | | | 10.28 | | | | 2.03 | |
| Class I | | Actual | | | 1,000.00 | | | | 1,278.70 | | | | 7.10 | | | | 1.24 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,018.90 | | | | 6.29 | | | | 1.24 | |
| Class Y | | Actual | | | 1,000.00 | | | | 1,280.50 | | | | 4.99 | | | | 0.87 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.76 | | | | 4.42 | | | | 0.87 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,280.30 | | | | 5.39 | | | | 0.94 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.41 | | | | 4.77 | | | | 0.94 | |
| | | | | | | | | | | | | | | | | | | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,222.10 | | | $ | 7.43 | | | | 1.33 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,018.45 | | | | 6.75 | | | | 1.33 | |
| Class B | | Actual | | | 1,000.00 | | | | 1,238.80 | | | | 7.54 | | | | 1.34 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,018.40 | | | | 6.80 | | | | 1.34 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,274.60 | | | | 11.95 | | | | 2.09 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,014.63 | | | | 10.58 | | | | 2.09 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,291.60 | | | | 5.59 | | | | 0.97 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.26 | | | | 4.93 | | | | 0.97 | |
| | | | | | | | | | | | | | | | | | | |
| Alger Small Cap Focus Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,179.50 | | | $ | 6.68 | | | | 1.22 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.00 | | | | 6.19 | | | | 1.22 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,230.70 | | | | 10.88 | | | | 1.94 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,015.38 | | | | 9.83 | | | | 1.94 | |
| Class I | | Actual | | | 1,000.00 | | | | 1,245.00 | | | | 6.49 | | | | 1.15 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.36 | | | | 5.84 | | | | 1.15 | |
| Class Y | | Actual | | | 1,000.00 | | | | 1,247.00 | | | | 4.74 | | | | 0.84 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.91 | | | | 4.27 | | | | 0.84 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,247.00 | | | | 4.80 | | | | 0.85 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.86 | | | | 4.32 | | | | 0.85 | |
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| | | | | | | | | | | | Annualized | |
| | | | | | | | | Expenses | | | Expense Ratio | |
| | | | | | | | | Paid During | | | For the | |
| | | Beginning | | | Ending | | | the Six Months | | | Six Months | |
| | | Account | | | Account | | | Ended | | | Ended | |
| | | Value | | | Value | | | October 31, | | | October 31, | |
| | | May 1, 2020 | | | October 31, 2020 | | | 2020(a) | | | 2020(b) | |
| Alger International Focus Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,240.50 | | | $ | 7.55 | | | | 1.34 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,018.40 | | | | 6.80 | | | | 1.34 | |
| Class B | | Actual | | | 1,000.00 | | | | 1,260.90 | | | | 6.65 | | | | 1.17 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.25 | | | | 5.94 | | | | 1.17 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,294.50 | | | | 12.28 | | | | 2.13 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,014.43 | | | | 10.79 | | | | 2.13 | |
| Class I | | Actual | | | 1,000.00 | | | | 1,310.00 | | | | 6.21 | | | | 1.07 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.76 | | | | 5.43 | | | | 1.07 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,311.60 | | | | 5.17 | | | | 0.89 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,020.66 | | | | 4.52 | | | | 0.89 | |
| | | | | | | | | | | | | | | | | | | |
| Alger Health Sciences Fund | | | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | | $ | 1,102.70 | | | $ | 5.50 | | | | 1.04 | % |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,019.91 | | | | 5.28 | | | | 1.04 | |
| Class C | | Actual | | | 1,000.00 | | | | 1,149.00 | | | | 9.78 | | | | 1.81 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,016.04 | | | | 9.17 | | | | 1.81 | |
| Class Z | | Actual | | | 1,000.00 | | | | 1,165.30 | | | | 3.86 | | | | 0.71 | |
| | | Hypothetical(c) | | | 1,000.00 | | | | 1,021.57 | | | | 3.61 | | | | 0.71 | |
(a) Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
(b) Annualized.
(c) 5% annual return before expenses.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Tax Information
Alger Capital Appreciation Fund, Alger 25 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund and Alger Health Sciences Fund designate $226,260,940, $148,879, $4,157,258, $14,472,041, $22,961,850, $9,157,081, $55,990,468 and $14,145,044, respectively, as approximate amounts of capital gain dividend for the purpose of dividends paid deduction.
In accordance with subchapter M of the Internal Revenue Code of 1986, as amended, for the year ended October 31, 2020, 100.00%, 100.00%, 100.00%, 100.00%, 11.27%, 0.00% of the Alger 25 Fund’s, Alger 35 Fund’s, Alger Growth & Income Fund’s, Alger Health Sciences Fund’s, Alger Small Cap Focus Fund’s and Alger International Focus Fund’s dividends qualified for the dividends deduction for corporations, respectively. For the year ended October 31, 2020, 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, 100.00% of the Alger 25 Fund’s, Alger 35 Fund’s, Alger Growth & Income Fund’s and Alger Health Sciences Fund’s, 24.56% of Alger International Focus Fund’s and 7.63% of Alger Small Cap Focus Fund’s dividends may be considered qualified dividend income.
Shareholders should not use the above information to prepare their tax returns. Since the Fund’s fiscal year is not the calendar year, another notification will be sent with respect to calendar year 2020. Such notification, which will reflect the amount to be used by tax payers on their federal income tax returns, will be made in conjunction with Form 1099 DIV and will be mailed in January 2021. Shareholders are advised to consult their own tax advisers with respect to the tax consequences of their investment in the Fund.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Trustees and Officers of the Trust
Information about the trustees and officers of the Trust is set forth below. In the table the term “Alger Fund Complex” refers to the Trust, The Alger Portfolios, The Alger Institutional Funds, Alger Global Focus Fund and The Alger Funds II, each of which is a registered investment company managed by Alger Management. Each Trustee serves until an event of termination, such as death or resignation, or until his or her successor is duly elected; each officer’s term of office is one year. Unless otherwise noted, the address of each person named below is 360 Park Avenue South, New York, NY 10010.
Additional information regarding the Trustees and Officers of the Trust is available in the Trust’s Statement of Additional Information.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| | | | | | | Number | | | |
| | | | | | | of Trusts | | | Other |
| | | | | | | in the | | | Directorships |
| | | Position(s) | | | | Alger Fund | | | Held by |
| | | Held with | | | | Complex(3) | | | Trustee |
| | | the Trust and | | | | which are | | | During |
| Name (Year of Birth) | | Length of | | Principal Occupation(s) | | Overseen | | | Past Five |
| and Address(1) | | Time Served | | During Past Five Years | | by Trustee | | | Years |
| Interested Trustee(2): | | | | | | | | | | |
| | | | | | | | | | | |
| Hilary M. Alger (1961) | | Trustee since 2003 | | Fundraising Consultant since 2015, Schultz & Williams; Trustee since 2013, Pennsylvania Ballet; School Committee Member since 2017, Germantown Friends School. | | | 27 | | | Board of Directors, Alger Associates, Inc.; Trustee of Target Margin Theater |
| | | | | | | | | | | |
| Non-Interested Trustees: | | | | | | | | | | |
| | | | | | | | | | | |
| Charles F. Baird, Jr. (1953) | | Trustee since 2000 | | Managing Director since 1997, North Castle Partners (private equity securities group). | | | 27 | | | None |
| | | | | | | | | | | |
| Roger P. Cheever (1945) | | Trustee since 2000 | | Associate Vice President for Principal Gifts since 2008, Harvard University. | | | 27 | | | Board of Directors, Alger SICAV Fund |
| | | | | | | | | | | |
| Stephen E. O’Neil (1932) | | Trustee since 1986 | | Retired. | | | 27 | | | None |
| | | | | | | | | | | |
| David Rosenberg (1962) | | Trustee since 2007 | | Associate Professor of Law since August 2000, Zicklin School of Business, Baruch College, City University of New York. | | | 27 | | | None |
| | | | | | | | | | | |
| Nathan E. Saint-Amand M.D. (1938) | | Trustee since 1986 | | Medical doctor in private practice since 1970; Member of the Board of the Manhattan Institute (non-profit policy research) since 1988. | | | 27 | | | None |
(1) The address of each Trustee is c/o Fred Alger Management, LLC, 360 Park Avenue South, New York, NY 10010.
(2) Ms. Alger is an “interested person” (as defined in the Investment Company Act of 1940, as amended) of the Funds by virtue of her ownership control of Alger Associates, Inc. (“Alger Associates”), which controls Alger Management and its affiliates.
(3) “Alger Fund Complex” refers to the Fund and the four other registered investment companies managed by Alger Management. Each Trustee serves until an event of termination, such as death or resignation, or until his or her successor is duly elected. Each of the Trustees serves on the Boards of Trustees of the other four registered investment companies in the Alger Fund Complex.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| Name (Year of Birth), Position | | | | Officer |
| with Trust and Address(1) | | Principal Occupations | | Since |
| Officers(2): | | | | |
| | | | | |
Hal Liebes (1964) President | | Executive Vice President, Chief Operating Officer (“COO”) and Secretary of Alger Management; COO and Secretary of Alger Associates, Inc. and Alger Alternative Holdings, LLC; Director of Alger SICAV, Alger International Holdings, and Alger Dynamic Return Offshore Fund; Vice President, COO, Member, and Secretary, Alger Capital, LLC and Alger Group Holdings, LLC; Executive Director and Chairman, Alger Management, Ltd.; Manager and Secretary, Weatherbie Capital, LLC and Alger Apple Real Estate LLC; Manager, Alger Partners Investors I, LLC and Alger Partners Investors KEIGF; Secretary of Alger-Weatherbie Holdings, LLC and Alger Boulder I LLC; and Director and Secretary, The Foundation for Alger Families. | | 2005 |
| | | | | |
Tina Payne (1974) Secretary, Chief Compliance Officer | | Since 2017, Senior Vice President, General Counsel, and Chief Compliance Officer (“CCO”), Alger Management; Senior Vice President, General Counsel, and Secretary, Alger LLC; CCO, Alger Management, Ltd.; Assistant Secretary, Weatherbie Capital, LLC and Alger Alternative Holdings, LLC; and since 2019, Assistant Secretary, Alger-Weatherbie Holdings, LLC. Formerly, Senior Vice President and Associate General Counsel, Cohen & Steers Capital Management, from 2007 to 2017. | | 2017 |
| | | | | |
Michael D. Martins (1965) Treasurer, AML Compliance Officer | | Senior Vice President of Alger Management. | | 2005 |
| | | | | |
Anthony S. Caputo (1955) Assistant Treasurer | | Vice President of Alger Management. | | 2007 |
| | | | | |
Sergio M. Pavone (1961) Assistant Treasurer | | Vice President of Alger Management. | | 2007 |
| | | | | |
Mia G. Pillinger (1989) Assistant Secretary | | Associate Counsel of Alger Management. | | 2020 |
| | | | | |
Rachel I. Winters (1987) Assistant Secretary | | Paralegal and Compliance Officer of Alger Management. | | 2020 |
(1) The address of each officer is c/o Fred Alger Management, LLC, 360 Park Avenue South, New York, NY 10010.
(2) Each officer’s term of office is one year. Each officer serves in the same capacity for the other funds in the Alger Fund Complex.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Board Approval of Investment Advisory Agreements
At a meeting held on September 29, 2020 (Meeting), the Board of Trustees (Board) of The Alger Funds (Trust), including a majority of the trustees who are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the Trust (Independent Trustees), reviewed and approved the continuance of the investment advisory agreement between Fred Alger Management, LLC (Fred Alger Management) and the Trust, on behalf of each Fund, and the investment sub-advisory agreement between Fred Alger Management and Weatherbie Capital, LLC (Sub-Adviser), an affiliate of Fred Alger Management, on behalf of Alger Weatherbie Specialized Growth Fund (each, a Management Agreement), for an additional one-year period. The Independent Trustees received advice from, and met separately with, their Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. The Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate. Fred Alger Management and the Sub-Adviser are collectively referred to herein as the “Manager.”
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed request for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process, as well as information provided in response to a supplemental request list. The materials for the Meeting included a presentation and analysis of the Funds and the Manager’s services by FUSE Research Network LLC (FUSE), an independent consulting firm. In addition, prior to the Meeting, the chair of the Board conferred with Independent Trustee counsel about the contract renewal process. The Board reviewed the materials provided and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of each Fund; (iii) the costs of the services the Manager provided and profits it realized; (iv) the extent to which economies of scale are realized as a Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors. As part of the Board’s review, the Board received and considered information on the impact of the COVID-19 pandemic on the Funds and the Funds’ performance and operations.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the Management Agreement are fair and reasonable and that the continuance of the Management Agreement is in the best interests of the applicable Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager to the Funds. This information included, among other things, the qualifications, background and experience of the professional personnel who perform services for a Fund; the structure of investment professional compensation; oversight of third-party service providers; investment performance, fee information and related financial information for each Fund; fees and payments to intermediaries for fund administration, transfer agency and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and the range of management fees charged by the Manager and its affiliates to other funds and accounts, including management’s explanation of differences among accounts where relevant.
The Board noted Fred Alger Management’s history and expertise in the “growth” style of investment management and management’s ongoing efforts to develop strategies and adjust portfolios to address the changing investment landscape. The Board also noted Fred Alger Management’s continuing efforts in connection with business continuity plans, including the effectiveness of those plans during the pandemic. The Board further noted Fred Alger Management’s engagement with key service providers regarding the COVID-19 pandemic. The Board noted the length of time the Manager had provided services as an investment adviser to each Fund and also noted FUSE’s analysis that certain of the Manager’s offerings should sustain growth and maintain interest in the Manager’s investment capabilities.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a Fund that is part of the Alger family of funds. The Board noted the strong financial position of the Manager and its commitment to the mutual fund business as evidenced, in part, by a continued focus on offerings in focused strategies. The Board also noted that certain administrative, compliance, reporting and accounting services necessary for the conduct of the Funds’ affairs are provided separately under a Fund Administration Agreement and a Shareholder Administrative Services Agreement with Fred Alger Management.
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds.
Fund Performance
The Board reviewed and considered the performance results of each Fund over various time periods. The Board considered the performance returns for each Fund in comparison to the performance returns of a universe of mutual funds deemed comparable to the Fund based on various investment, operational, and pricing characteristics (Peer Universe), and a group of mutual funds from within such Peer Universe deemed comparable to the Fund based primarily on investment strategy similarity (Peer Group), each as selected by FUSE, as well as the Fund’s benchmark index. Class A shares (each Fund’s oldest share class) were used as the representative share class for each Fund’s performance results (except for the Alger 25 Fund and Alger 35 Fund, for which Class P shares were used, and Alger Mid Cap Focus Fund, for which Class I shares were used (such Funds’ oldest share class)). It was noted that each class of a Fund would have substantially similar returns because the shares are invested in the same portfolio of securities and the returns would differ only to the extent that the classes do not have the same expenses. The Board received a description of the methodology FUSE used to select the mutual funds included in a Peer Universe and Peer Group. The Board noted that long-term performance could be impacted by even one period of significant outperformance or underperformance.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
The Board also reviewed and considered Fund performance reports provided and discussions that occurred with investment personnel and senior management at Board meetings throughout the year. As had been the practice at every quarterly meeting of Trustees throughout the year, representatives of the Manager discussed with the Trustees the recent and longer term performance of each Fund and the measures that the Manager was in the process of instituting, or had instituted, to seek to improve the performance of those Funds, if necessary. In expanding orally on the written materials they had provided to the Trustees, the FUSE representatives commented further on the performance of the Funds and discussed the enhancements FUSE has made to its reports.
A summary of each Fund’s performance results is below.
Alger Capital Appreciation Fund – The Peer Group for this Fund consisted of the Fund and 14 other large cap growth funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other large cap growth funds. The Board noted that the Fund’s annualized total return for the one-, three-, five- and 10-year periods outperformed or was equal to the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one-, three- and 10-year periods was in the first quartile of its Peer Universe, and for the five-year period was in the second quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one- and three-year periods and underperformed for the five- and 10-year periods. The Board concluded that the Fund’s performance was acceptable.
Alger 25 Fund and Alger 35 Fund – The Peer Group for each Fund consisted of the Fund and 13 other large cap growth funds. The Peer Universe for each Fund included the Fund, the other funds of the Peer Group, and other large cap growth funds. The Board noted that each Fund’s annualized total return since the respective Fund’s inception and one-year period outperformed the median of its Peer Group. The Board also noted that each Fund’s annualized total return since the respective Fund’s inception and one-year period was in the first quartile of its Peer Universe. The Board further noted that each Fund had outperformed the Fund’s respective benchmark index for the one-year and since inception periods. The Board noted that each Fund had less than three years of performance as of June 30, 2020. The Board concluded that each Fund’s performance was acceptable, noting the short period of the Funds’ operations.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Alger Growth & Income Fund – The Peer Group for this Fund consisted of the Fund and 14 other large blend funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other large blend funds. The Board noted that the Fund’s annualized total return for the one-, three- and five-year periods outperformed the median of its Peer Group, and for the 10-year period underperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one-year period was in the first quartile of its Peer Universe, for the three- and five-year periods was in the second quartile of its Peer Universe, and for the 10-year period was in the third quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one-year period and underperformed for the three-, five-and 10-year periods. The Board concluded that the Fund’s performance was acceptable, noting the Fund’s outstanding near-term performance.
Alger Mid Cap Growth Fund – The Peer Group for this Fund consisted of the Fund and 12 other mid cap growth funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other mid cap growth funds. The Board noted that the Fund’s annualized total return for the one-, three and five-year periods outperformed or was equal to the median of its Peer Group, and for the 10-year period underperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one- and three-year periods was in the second quartile of its Peer Universe, and for the five and 10-year periods was in the third quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one- and three-year periods and underperformed for the five- and 10-year periods. The Board concluded that the Fund’s performance was acceptable.
Alger Mid Cap Focus Fund – The Peer Group for this Fund consisted of the Fund and 14 other mid cap growth funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other mid cap growth funds. The Board noted that the Fund’s annualized total return for the one-year and since inception periods outperformed the median of its Peer Group. The Board also noted that Fund’s annualized total return for the one-year and since inception periods was in the first quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one-year and since inception periods. The Board concluded that the Fund’s performance was acceptable, noting the short period of the Fund’s operations.
Alger Weatherbie Specialized Growth Fund – The Peer Group for this Fund consisted of the Fund and 14 other smid cap growth funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other mid cap growth funds. The Board noted that the Fund’s annualized total return for the one-, three-, five- and 10-year periods outperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one-, three- and five-year periods was in the first quartile of its Peer Universe, and for the 10-year periods was in the second quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one-, three-, five- and 10-year periods. It was noted that the Sub-Adviser began sub-advising the Fund in March 2017. The Board concluded that the Fund’s performance was acceptable.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Alger Small Cap Growth Fund – The Peer Group for this Fund consisted of the Fund and 14 other small cap growth funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other small cap growth funds. The Board noted that the Fund’s annualized total return for the one-, three-, five and 10-year periods outperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one-, three- and five-year periods was in the first quartile of its Peer Universe, and for the 10-year period was in the second quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one-, three-, five- and 10-year periods. The Board concluded that the Fund’s performance was acceptable.
Alger Small Cap Focus Fund – The Peer Group for this Fund consisted of the Fund and 14 other small cap growth funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other small cap growth funds. The Board noted that the Fund’s annualized total return for the one-, three-, five- and 10-year periods outperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one-, three-, five- and 10-year periods was in the first quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one-, three-, five- and 10-year periods. The Board concluded that the Fund’s performance was acceptable.
Alger International Focus Fund – The Peer Group for this Fund consisted of the Fund and 14 other foreign large cap growth funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other foreign large cap growth funds. The Board noted that the Fund’s annualized total return for the one- and 10-year periods outperformed or was equal to the median of its Peer Group, and for the three- and five-year periods underperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the one-year period was in the first quartile of its Peer Universe, for the three-year period was in the second quartile of its Peer Universe, for the five-year period was in the fourth quartile of its Peer Universe, and for the 10-year period was in the third quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one-, three-, five- and 10-year periods. The Board noted the Fund’s improved short-term performance since both the Fund’s current portfolio managers began managing the Fund in March 2018 and the Fund changed its name and investment strategy from “Alger International Growth Fund” to “Alger International Focus Fund” in August 2018. The Board concluded that the Fund’s performance was acceptable, noting the Fund’s improved one-year performance under the Fund’s new portfolio managers and strategy, and that the Fund had outperformed its benchmark for the one-, three-, five-, and 10-year periods.
Alger Health Sciences Fund – The Peer Group for this Fund consisted of the Fund and 10 other health funds. The Peer Universe for this Fund included the Fund, the other funds of the Peer Group, and other health funds. The Board noted that the Fund’s annualized total return for the one-, three-, five- and 10-year periods outperformed the median of its Peer Group. The Board also noted that the Fund’s annualized total return for the three- and five-year periods was in the first quartile of its Peer Universe, and for the one- and 10-year periods was in the third quartile of its Peer Universe. The Board further noted that the Fund had outperformed the Fund’s benchmark index for the one-, three- and five-year periods and underperformed for the 10-year period. The Board concluded that the Fund’s performance was acceptable.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Comparative Fees and Expenses
The Board considered the contractual management fee rate without the effect of fee waivers or expense reimbursements, if any (Management Rate), of each Fund in comparison to the median Management Rate of the Fund’s respective Peer Group. FUSE fee data was based upon information taken from each Peer Group fund’s most recent annual report, which reflects historical asset levels that may be different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board noted that the independent analysis conducted by FUSE was an appropriate measure of comparative fees and expenses. The FUSE Management Rate included administrative charges. The Board received a description of the methodology FUSE used to select the mutual funds included in a Peer Group. The Board discussed those factors that could contribute to each Fund’s total expense ratio or management fee being above the median of the Fund’s Peer Group, including, for example, considerations related to unique or specialty strategies and related costs to implement such strategies, the nature and quality of services provided by the Manager, and strategy capacity considerations.
Alger Capital Appreciation Fund. The Board noted that the Management Rate for the Alger Capital Appreciation Fund was above the median and in the third quartile of its Peer Group.
Alger 25 Fund and Alger 35 Fund. The Board noted that the Management Rates for the Alger 25 Fund and Alger 35 Fund were better than the medians and in the first (least expensive) quartiles of their respective Peer Group. The Board also noted the fulcrum fee structure of the investment management fee for the Alger 25 Fund and Alger 35 Fund. Furthermore, the Board noted Fred Alger Management’s proposal to remove the Alger 25 Fund’s and Alger 35 Fund’s fulcrum fee structure and implement an advisory fee of 0.45% of average daily net assets for each Fund, subject to approval by each Fund’s shareholders, respectively.
Alger Growth & Income Fund. The Board noted that the Management Rate for the Alger Growth & Income Fund was better than the median and in the first (least expensive) quartile of its Peer Group.
Alger Mid Cap Growth Fund. The Board noted that the Management Rate for the Alger Mid Cap Growth Fund was better than the median and in the second quartile of its Peer Group.
Alger Mid Cap Focus Fund. The Board noted that the Management Rate for the Alger Mid Cap Focus Fund was better than the median and in the first (least expensive) quartile of its Peer Group. The Board also considered, and subsequently approved, Fred Alger Management’s proposal to amend the Management Agreement with Alger Mid Cap Focus Fund to implement a management fee breakpoint schedule.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Alger Weatherbie Specialized Growth Fund. The Board noted that the total net expense ratio for the Alger Weatherbie Specialized Growth Fund was above the median and in the fourth (most expensive) quartile of its Peer Group.
Alger Small Cap Growth Fund. The Board noted that the Management Rate for the Alger Small Cap Growth Fund was better than the median and in the second quartile of its Peer Group.
Alger Small Cap Focus Fund. The Board noted that the Management Rate for the Alger Small Cap Focus Fund was above the median and in the third quartile of its Peer Group.
Alger International Focus Fund. The Board noted that the Management Rate for the Alger International Focus Fund was better than the median and in the first (least expensive) quartile of its Peer Group.
Alger Health Sciences Fund. The Board noted that the Management Rate for the Alger Health Sciences Fund was better than the median and in the first (least expensive) quartile of its Peer Group.
The Board reviewed and considered information regarding each Fund’s total expense ratio and its various components, including, as applicable, management fees, operating expenses, and Rule 12b-1 fees. The Board considered the total net expense ratio of each Fund in comparison to the median expense ratio of the Fund’s respective Peer Group. The total net expense ratio, for comparative consistency, was shown for Class A shares for funds with multiple classes of shares (except for (i) the Alger 25 Fund and Alger 35 Fund, for which Class P shares of each Fund and similarly structured share classes of funds in the Peer Group with multiple classes of shares were shown, and (ii) the Alger Mid Cap Focus Fund, for which Class I shares of the Fund and similarly structured share classes of funds in the Peer Group with multiple classes of shares were shown).
Alger Capital Appreciation Fund. The Board noted that the total net expense ratio for the Alger Capital Appreciation Fund was above the median and in the fourth (most expensive) quartile of its Peer Group. It was noted that Fred Alger Management considered the total net expense ratio of the Fund and concluded the fee arrangements for all share classes were appropriate, with the exception of Class Z shares. The Board noted that Fred Alger Management had agreed to enter into an agreement to cap expenses for Class Z shares of the Fund at 0.85% effective February 28, 2021.
Alger 25 Fund and Alger 35 Fund. The Board noted that the total net expense ratio for the Alger 25 Fund and Alger 35 Fund were better than the medians and in the first (least expensive) quartiles of their respective.
Alger Growth & Income Fund. The Board noted that the total net expense ratios for the Alger Growth & Income Fund was better than the median and in the first (least expensive) quartile of its Peer Group. It was noted that Fred Alger Management considered the total net expense ratio of the Fund and concluded the fee arrangements for all share classes were appropriate, with the exception of Class Z shares. The Board considered Fred Alger Management’s proposal to remove the expense cap for Class Z shares for the Fund at the end of its current term, noting the rationale for such change, and the impact to the Fund.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Alger Mid Cap Growth Fund. The Board noted that the total net expense ratio for the Alger Mid Cap Growth Fund was above the median and in the third quartile of its Peer Group. It was noted that Fred Alger Management considered the total net expense ratio of the Fund and concluded the fee arrangements for all share classes were appropriate, with the exception of Class Z shares. The Board considered that Fred Alger Management had agreed to lower the expense cap for Class Z shares of the Fund to 0.99% effective February 28, 2021.
Alger Mid Cap Focus Fund. The Board noted that the total net expense ratio for the Alger Mid Cap Focus Fund was better than the median and in the first (least expensive) quartile of its Peer Group.
Alger Weatherbie Specialized Growth Fund. The Board noted that the total net expense ratio for the Alger Weatherbie Specialized Growth Fund was above the median and in the fourth (most expensive) quartile of its Peer Group. It was noted that Fred Alger Management considered the total net expense ratio of the Fund and concluded the fee arrangements for all share classes were appropriate, with the exception of Class Z shares. The Board also considered Fred Alger Management’s proposal to remove the expense cap for Class Z shares for the Fund at the end of its current term, noting the rationale for such change, and the impact to the Fund.
Alger Small Cap Growth Fund. The Board noted that the total net expense ratio for the Alger Small Cap Growth Fund was above the median and in the fourth (most expensive) quartile of its Peer Group.
Alger Small Cap Focus Fund. The Board noted that the total net expense ratio for the Alger Small Cap Focus Fund was equal to the median and in the second quartile of its Peer Group.
Alger International Focus Fund. The Board noted that the total net expense ratio for the Alger International Focus Fund was above the median and in the third quartile of its Peer Group. The Board noted that the Fund’s total net expense ratio for Class I and Class Z shares reflected a fee waiver from management. It was noted that Fred Alger Management considered the total net expense ratio of the Fund and concluded the fee arrangements for all share classes were appropriate, with the exception of Class I shares. The Board considered, and subsequently approved, Fred Alger Management’s proposal to change the expense cap for Class I shares of the Fund to 1.25% effective February 28, 2021, noting the rationale for such change, and the impact to the Fund.
Alger Health Sciences Fund. The Board noted that the total net expense ratio for the Alger Health Sciences Fund was better than the median and in the first (least expensive) quartile of its Peer Group.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
The Board concluded that the Management Rate charged to each Fund is reasonable. In doing so, the Board noted that, with respect to the Alger Weatherbie Specialized Growth Fund, the Sub-Adviser is paid by Fred Alger Management out of the management fee Fred Alger Management receives from the Fund.
Profitability
The Board reviewed and considered information regarding the profits realized by Fred Alger Management and its affiliates in connection with the operation of each Fund. In this respect, the Board considered overall profitability, as well as the profits, of Fred Alger Management and its affiliates, in providing investment management and other services to each Fund during the year ended June 30, 2020. The Board also reviewed the profitability methodology and the changes thereto, noting that management applies its methods consistently from year to year.
The Board noted that costs incurred in establishing the infrastructure necessary for the type of mutual fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining the Manager’s profitability. The Board also noted management’s expenditures related to additional regulatory and compliance requirements resulting from recent SEC and other regulatory developments.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.
Economies of Scale
The Board reviewed and considered the extent to which each Manager may realize economies of scale, if any, as each Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board noted the existence of management fee breakpoints for Alger Capital Appreciation Fund, Alger International Focus Fund, Alger Mid Cap Growth Fund, Alger Weatherbie Specialized Growth Fund, and Alger Small Cap Growth Fund, as well as Fred Alger Management’s proposal to amend the Management Agreement with Alger Mid Cap Focus Fund to implement a management fee breakpoint schedule, which operate to share economies of scale with a Fund’s shareholders by reducing the Fund’s effective management fees as the Fund grows in size. The Board considered the Manager’s view that the overall size of Fred Alger Management allows it to realize other economies of scale, such as with office space, purchases of technology, and other general business expenses. The Board concluded that for each Fund, to the extent economies of scale may be realized by Fred Alger Management and its affiliates, the benefits of such economies of scale would be shared with the Fund and its shareholders as the Fund grows, including through the management fee breakpoints in place for applicable Funds.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Privacy Policy
| U.S. Consumer Privacy Notice | Rev. 12/20/16 |
| FACTS | | WHAT DOES ALGER DO WITH YOUR PERSONAL INFORMATION? |
| Why? | | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | | The types of personal information we collect and share depend on the product or service |
| | | you have with us. |
| | | This information can include: |
| | | · Social Security number and |
| | | · Account balances and |
| | | · Transaction history and |
| | | · Purchase history and |
| | | · Assets |
| | | When you are no longer our customer, we continue to share your information as described in this notice. |
| How? | | All financial companies need to share personal information to run their everyday business. In the section below, we list the reasons financial companies can share personal information; the reasons Alger chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal
information | | Does
Alger share? | | Can you limit
this sharing? |
| For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | | Yes | | No |
| For our marketing purposes — to offer our products and services to you | | Yes | | No |
| For joint marketing with other financial companies | | No | | We don’t share |
| For our affiliates’ everyday business purposes — information about your transactions and experiences | | Yes | | No |
| For our affiliates’ everyday business purposes — information about your creditworthiness | | No | | We don’t share |
| For nonaffiliates to market to you | | No | | We don’t share |
| Questions? Call 1-800-342-2186 | | | | |
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
| Who we are | | |
| | | |
| Who is providing this notice? | | Alger includes Fred Alger Management, LLC and Fred Alger & Company, LLC as well as the following funds: The Alger Funds, The Alger Funds II, The Alger Institutional Funds, The Alger Portfolios, and Alger Global Focus Fund. |
| | | |
| What we do | | |
| | | |
| How does Alger protect my personal information? | | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| | | |
| How does Alger collect my personal information? | | We collect your personal information, for example, when you:
· Open an account or
· Make deposits or withdrawals from your account or
· Give us your contact information or
· Provide account information or
· Pay us by check. |
| | | |
| Why can’t I limit all sharing? | | Federal law gives you the right to limit some but not all sharing related to:
· sharing for affiliates’ everyday business purposes - information about your credit worthiness · affiliates from using your information to market to you · sharing for non affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
| | | |
| Definitions | | |
| | | |
| Affiliates | | Companies related by common ownership or control.
They can be financial and nonfinancial companies.
· Our affiliates include Fred Alger Management, LLC ., Weatherbie Capital, LLC and Fred Alger & Company, Incorporated as well as the following funds: The Alger Funds, The Alger Funds II, The Alger Institutional Funds, The Alger Portfolios, and Alger Global Focus Fund. |
| | | |
| Nonaffiliates | | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
| | | |
| Joint marketing | | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
Proxy Voting Policies
A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities and the proxy voting record is available, without charge, by calling (800) 992-3863 or online on the Funds’ website at http://www.alger.com or on the SEC’s website at http://www.sec.gov.
Fund Holdings
The Board of Trustees has adopted policies and procedures relating to disclosure of the Funds’ portfolio securities. These policies and procedures recognize that there may be legitimate business reasons for holdings to be disclosed and seek to balance those interests to protect the proprietary nature of the trading strategies and implementation thereof by the Funds.
Generally, the policies prohibit the release of information concerning portfolio holdings, which have not previously been made public, to individual investors, institutional investors, intermediaries that distribute the Funds’ shares and other parties which are not employed by the Investment Manager or its affiliates except when the legitimate business purposes for selective disclosure and other conditions (designed to protect the Funds) are acceptable.
The Funds file their complete schedules of portfolio holdings with the SEC semi-annually in shareholder reports on Form N-CSR and after the first and third fiscal quarters as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-CSR and N-PORT are available online on the SEC’s website at www.sec.gov.
In addition, the Funds make publicly available their month-end top 10 holdings with a 10 day lag and their month-end full portfolios with a 60 day lag on their website www.alger.com and through other marketing communications (including printed advertising/sales literature and/or shareholder telephone customer service centers). No compensation or other consideration is received for the non-public disclosure of portfolio holdings information.
In accordance with the foregoing, the Funds provide portfolio holdings information to third parties including financial intermediaries and service providers who need access to this information in the performance of their services and are subject to duties of confidentiality (1) imposed by law, including a duty not to trade on non-public information, and/or (2) pursuant to an agreement that confidential information is not to be disclosed or used (including trading on such information) other than as required by law. From time to time, the Funds will communicate with these third parties to confirm that they understand the Funds’ policies and procedures regarding such disclosure. This agreement must be approved by the Trust’s Chief Compliance Officer.
The Board of Trustees periodically reviews a report disclosing the third parties to whom each Fund’s holdings information has been disclosed and the purpose for such disclosure, and it considers whether or not the release of information to such third parties is in the best interest of the Fund and its shareholders.
THE ALGER FUNDS
ADDITIONAL INFORMATION (Unaudited) (Continued)
In addition to material the Funds routinely provide to shareholders, the Investment Manager may make additional statistical information available regarding the Alger Family of Funds. Such information may include, but not be limited to, relative weightings and characteristics of the Fund versus an index (such as P/E ratio, alpha, beta, capture ratio, maximum drawdown, standard deviation, EPS forecasts, Sharpe ratio, information ratio, R-squared, and market cap analysis), security specific impact on overall portfolio performance, month-end top ten contributors to and detractors from performance, portfolio turnover, and other similar information. Shareholders should visit www.alger.com or may also contact the Funds at (800) 992-3863 to obtain such information.
THE ALGER FUNDS
360 Park Avenue South
New York, NY 10010
(800) 992-3863
www.alger.com
Investment Manager
Fred Alger Management, LLC
360 Park Avenue South
New York, NY 10010
Distributor
Fred Alger & Company, LLC
360 Park Avenue South
New York, NY 10010
Transfer Agent and Dividend Disbursing Agent
UMB Fund Services, Inc.
235 W. Galena Street
Milwaukee, WI 53212
Custodian
Brown Brothers Harriman & Company
50 Post Office Square
Boston, MA 02110
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, NY 10112
This report is submitted for the general information of the shareholders of The Alger 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.
(This page has been intentionally left blank.)
(This page has been intentionally left blank.)
(This page has been intentionally left blank.)
(This page has been intentionally left blank.)
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. |
| (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. |
| (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, 2020 | | $ | 369,800 | |
| October 31, 2019 | | $ | 369,800 | |
b) Audit-Related Fees: NONE
c) Tax Fees for tax advice, tax compliance and tax planning:
| October 31, 2020 | | $ | 71,350 | |
| October 31, 2019 | | $ | 66,781 | |
d) All Other Fees:
| October 31, 2020 | | $ | 15,776 | |
| October 31, 2019 | | $ | 15,776 | |
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, 2020 | | $ | 232,670 | | | € | 72,885 | |
| October 31, 2019 | | $ | 230,152 | | | € | 75,612 | |
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. INVESTMENTS.
(a) A Schedule of Investments in securities of unaffiliated issuers is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
ITEM 13. 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
(a) (3) Not applicable
(a) (4) Not applicable
(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 Funds | |
| | |
| By: | /s/Hal Liebes | |
| | | |
| | Hal Liebes | |
| | | |
| | President | |
Date: December 21, 2020
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/Hal Liebes | |
| | | |
| | Hal Liebes | |
| | | |
| | President | |
Date: December 21, 2020
| By: | /s/Michael D. Martins | |
| | | |
| | Michael D. Martins | |
| | | |
| | Treasurer | |
Date: December 21, 2020
