| 1 |
| |
| 20 |
| |
| 40 |
| |
| 42 |
| |
| 79 |
| |
| 89 |
| |
| 94 |
| |
| 104 |
| |
| 142 |
| |
| 187 |
| |
| 189 |
Shareholders’ Letter (Unaudited) | October 31, 2021 |
Dear Shareholders,
Instant Gratification Gives Way to Fundamentals
Pity poor Ralph. After an evening of gluttony, he suffered from major digestive issues while repeating, “I can’t believe I ate the whole thing.” Ralph appeared in a 1970s commercial, during which Alka-Seltzer miraculously cured his stomach woes. One can hardly blame Ralph: Overeating is common and one of many examples of instant gratification, such as conspicuous consumption, gambling and a wide range of other vices. Indeed, researchers say instant gratification floods our brains with short-term mood-enhancing blasts of dopamine, yet like Ralph’s stomach issues, comes at a high cost.
We believe the fiscal 12-month period ended October 31, 2021, illustrates many investors’ preference for short-term gratification. Despite growth equities exhibiting strong and durable fundamentals, investors favored lower-quality cyclical “value” stocks in the past year based on the reopening of the U.S. and other economies post the peak of the COVID-19 pandemic that occurred in late 2020. These kinds of companies benefited disproportionately during the reporting period from the “easy” growth occurring after they experienced massive revenue and earnings declines triggered by forced closures as the COVID-19 pandemic struck in 2020. In our view, the current high growth in revenues and profits reported by many cyclicals that dominate value indices is deceptive. As societies worldwide return to “normal” life as COVID-19 recedes – thanks to the amazing medical advances in vaccines and treatment we’ve seen these past nearly two years—we believe that these companies, and value stocks generally, will be faced with the reality that their long-term, “true” growth and fundamentals are, in many cases, quite poor and deteriorating. As that happens, we believe the longer-term fundamental outperformance of growth companies, innovative leaders in many sectors, will re-assert themselves, and that growth stocks will outperform value stocks again.
Investors Flock to Lower-Quality Cyclicals
Value equities rallied for most of the reporting period. Yet a strong rotation into growth equities that started in early June resulted in the 44.97% return of the Russell 3000 Value Index only modestly outperforming the 42.81% return of the Russell 3000 Growth Index during the fiscal 12-month period. Within the broad Russell 3000 Index, Energy led as investors anticipated that economic growth would support demand for oil, natural gas and other energy commodities, while Financials was the second-best performing sector, a result of increasing interest rates. The Real Estate sector also outperformed with particular strength in cyclical residential real estate investment trusts (REITs) and specialty REITs, such as timber and billboard companies. One interesting fact: small cap growth underperformed small cap value by a very large amount in the past year. In addition, small cap stocks generally are cheap on a historical basis relative to large cap stocks. We think this presents an interesting starting point for small cap growth stocks to potentially outperform in future periods.
Economic Outlook Becomes Less Clear
As the reporting period progressed, investors watched for signs of inflation due to deficit spending, strong labor demand, rising input costs and accelerating economic growth. These concerns appeared to be realized when the May Consumer Price Index climbed 5% year over year, its highest reading since August 2008. The Federal Reserve also helped dampen enthusiasm in June when it adopted a less dovish approach to inflation, signaling that it may raise interest rates in 2023 and discussing tapering its bond buying. Supply chain issues, including a shortage of semiconductors, also surfaced, with AutoForecast Solutions estimating that the problem caused Ford to cut production by some 566,000 vehicles. A muddled view of Washington negotiations on President Biden’s proposed $3.5 trillion stimulus plan also weighed upon sentiment.
We believe the reporting period illustrates that outperformance of value equities can be short lived and occurs within longer periods of growth equities outperforming. Even with the strong performance of value equities prior to June, the Russell 3000 Growth Index has generated an annualized return of 19.09%, outpacing the 12.79% return of the Russell 3000 Value Index during the 10-year period ended October 31, 2021.
Market Rally Extends Beyond the U.S.
Global markets as measured by the MSCI ACWI Index were also strong during the reporting period, with the index generating a 37.86% return, while the MSCI Emerging Markets Index generated a 17.33% return. Within the global benchmark, France, Hong Kong, Germany, the United States, the Netherlands and Switzerland were among the top performing countries.
The Appeal of Growth Equity Fundamentals
The aforementioned rotation to value equities occurred despite growth equities exhibiting the following characteristics at the start of the reporting period and to a similar degree throughout the 12 months:
| • | Long-term earnings per share growth based on consensus estimates for the Russell 1000 Growth Index was approximately 17.6% at the start of the re- porting period compared to only 7.8% for the Russell 1000 Value Index. |
| • | Return on equity, or the ratio of net income to shareholders' equity, for the Russell 1000 Growth Index was approximately 29.7% compared to only 8.7% for the Russell 1000 Value Index. |
| • | Risk as determined by the ratio of net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) for the Russell 1000 Growth Index was only 0.7X compared to a substantially higher rate of 2.9X for the Russell 1000 Value Index. |
The rotation into value equities, furthermore, appears to have overlooked another metric— the price to earnings growth ratio (PEG), which measures the cost per unit of future earnings growth. At the start of the reporting period, the S&P 500 Growth Index PEG ratio was 1.76 compared to the 2.6 ratio of the S&P 500 Value Index.
Comparing Drivers of Performance
The drivers of cyclical companies’ performance in the Energy and Financials sectors illustrate why rotations to value equities can be short lived unlike the potential for long-term gains of secular growth leaders with durable fundamentals.
| • | Energy: During the second quarter of calendar year 2021, S&P 500 Energy sector earnings soared to $13.9 billion as commodity prices climbed, while during the same period last year the sector recorded a loss of $10.6 billion as the recession dramatically curtailed demand. We believe the long-term fu- ture performance of traditional oil and gas companies, however, faces many challenges. With the accelerated adoption of electric vehicles, as well as solar, wind and other renewable energy sources, we think the long-term outlook for oil and gas presents a difficult environment for these companies’ stocks to outperform. In comparison, companies that are squarely involved with the growth opportunities in electric vehicles, renewable power, battery storage and technology, etc. will be, we believe, much better opportunities for long- term appreciation for investors. Tesla, of course, is the leading example of both a company and stock that has benefitted from its innovation and leader- ship, and handsomely rewarded its long-term shareholders. |
| • | Financials: This sector is one of the most traditional and conservative, and thus lacking in innovation within its dominant companies (in terms of cur- rent size and brand). However, the major banks, credit card companies and other financial institutions are all, we believe, now faced with challenges from innovative, technology enabled, “fintech” companies that are upsetting the long-held status quo. Upstart Holdings, for example, has developed big data techniques, powered by artificial intelligence (AI), to advance credit scoring of loans. Banking companies using their technology can offer loans at much lower interest rates but make the same returns (or better) because of the ability to better price credit risk and reduce loan losses. Loans are a com- modity – as are most financial services in the banking world – so Upstart has seen rapid and massive growth through the adoption of its technology by its banking customers. Similarly, other fintech companies like PayPal and Square are offering merchants and consumers better point-of-sale systems, integrated with financial and cash management systems for businesses or, for consumers, in better electronic wallets and cash “apps” for managing personal finances. The competitive pressures in this sector are enormous, and thus there are also traditional banks that have responded by innovating and developing solutions for emerging new customer profiles. For example, Signature Bank is growing well above the rate of growth of the traditional brick and mortar banking industry with its branchless banking services and apps that, in our view, are superior to most and also by targeting high growth customer segments within the cryptocurrency marketplaces. |
Going Forward
At Alger, we will continue to focus on secular growth leaders that we believe have strong long-term fundamentals. We are in a highly innovative period in our society and in the world. The numerous initial public offerings of a new generation of growth companies have attracted tremendous attention. Many, if not most, are disruptors in their industries: changing how we purchase everything and anything, how it is delivered to us, changing what we drive and how we power and live in our homes, changing how we travel and how we engage with both friends and colleagues. Businesses of all sizes are realizing efficiency benefits from “digitizing” their internal processes – from marketing, to contract negotiation, to billing and expense payment. We intend to continue to use our time-tested fundamental research to understand these changes and innovations in business and our society and to find the companies that we think offer strong potential for attractive long-term performance for our portfolios and clients.
Portfolio Matters
Alger Capital Appreciation Fund
The Alger Capital Appreciation Fund returned 35.41% for the fiscal 12-month period ended October 31, 2021, compared to the 43.21% return of the Russell 1000 Growth Index.
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 Healthcare.
Contributors to Performance
The Financials and Industrials sectors provided the largest contributions to relative performance. Regarding individual positions, Microsoft Corp.; Alphabet, Inc., Cl. C; Tesla, Inc.; Apple, Inc.; and NVIDIA Corp. were among the top contributors to absolute performance.
We believe that Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. This high unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s operating execution has enabled notable margin expansion. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.
Detractors from Performance
The Healthcare and Consumer Discretionary sectors were among the sectors that detracted from relative performance. Regarding individual positions, Alibaba Group Holding Ltd.; Expedia Group, Inc.; Snap, Inc., Cl. A; Discovery, Inc., Cl. A; and General Motors Company were among the top detractors from absolute performance.
The Fund owns Alibaba shares because of the large addressable market opportunities in e-commerce and cloud computing, as well as the company’s potential for exploiting those opportunities due to state-enacted barriers that block meaningful foreign competitors. Unfortunately, the Chinese communist party has exhibited increased regulatory oversight of Alibaba, which precluded the company from consummating a potentially value-creating initial public offering of ANT Financial, its formidable fintech platform. As a result of this near-term regulatory uncertainty, the Alibaba investment detracted from portfolio performance.
Alger 35 Fund
The Alger 35 Fund generated a 44.27% return during the fiscal 12-month period ended October 31, 2021, compared to the 42.91% return of the S&P 500 Index. 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 Materials, Utilities or Energy sectors.
The Information Technology and Healthcare sectors provided the greatest contributions to relative performance. Regarding individual positions, Alphabet, Inc., Cl. C; Microsoft Corp.; Applied Materials, Inc.; US Foods Holding Corp.; and Genius Sports Ltd. were among the top contributors to absolute performance. Shares of Microsoft outperformed in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
The Financials sector and the Fund’s lack of Energy holdings detracted from relative performance. Regarding individual positions, Snap, Inc., Cl. A; Shake Shack, Inc., Cl. A; Magnite, Inc.; Quidel Corp.; and Core Laboratories NV were among the top detractors from absolute performance. Quidel develops, manufactures and markets rapid point-of- care diagnostic solutions worldwide that are used for cardiac, toxicology and infectious disease testing. Quidel’s solutions are mainly used at point-of-care locations, such as physicians’ offices, hospitals, urgent care clinics, pharmacies, wellness screening clinics and clinical laboratories when quality, highly sensitive, low-cost, easy-to-use and fast diagnosis is particularly important. Shares of the company underperformed due to general concern that COVID-19 vaccines could result in decreased demand for Quidel’s COVID-19 testing products. Alger believes the need for testing can potentially last longer than the market is currently assuming. Additionally, Quidel has a significantly enhanced position in rapid point- of-care infectious disease testing, with a significant number of new instrument customers as a result of the pandemic.
Alger Growth & Income Fund
The Alger Growth & Income Fund returned 44.12% for the fiscal 12-month period ended October 31, 2021, compared to the 42.91% return of the S&P 500 Index.
During the reporting period, the largest portfolio sector weightings were Information Technology and Financials. The largest sector overweight was Financials and the largest sector underweight was Consumer Discretionary.
Contributors to Performance
The Financials and Communication Services sectors provided the largest contributions to relative performance. Regarding individual positions, Microsoft Corp.; Apple, Inc.; JPMorgan Chase & Co.; Morgan Stanley; and Alphabet, Inc., Cl. A were among the contributors to absolute performance. Shares of Microsoft outperformed in response to developments identified in the Alger Capital Appreciation Fund discussion.
Detractors from Performance
The Consumer Discretionary and Materials sectors were the most significant detractors from relative performance. Regarding individual positions, Americold Realty Trust; Southern Copper Corp.; General Motors Company; Verizon Communications, Inc.; and Organon & Co. were among the top detractors from absolute performance.
Alger believes that General Motors (GM) leads a small group of legacy automakers that are not only demonstrating effective electric vehicle strategies, but also rethinking the way their businesses work to make for more profitable, less cyclical financial profiles over time. The car will no longer represent a discrete, low-margin hardware sale; instead, like smartphones, cars will become conduits for high-value software, and we believe there is potential for GM to enter new addressable markets like energy storage. GM has been valued as a low-margin cyclical for most of its history, and in recent years, there has been substantial concern that it will be difficult for the company to compete as electric vehicles become more prevalent. Alger believes that GM will not only keep up but build a much more profitable business in the future.
GM’s share price increased during the reporting period due to a cyclical recovery in the automobile industry, but the position detracted from performance as the portfolio holding was underweight during the period in which the share price rose the most.
Alger Mid Cap Growth Fund
The Alger Mid Cap Growth Fund returned 44.05% for the fiscal 12-month period ended October 31, 2021, compared to the 39.43% return of the Russell Midcap Growth Index. During the reporting period, the largest sector weightings were Information Technology and Healthcare. The largest sector overweight was Consumer Discretionary and the largest underweight was Information Technology.
Contributors to Performance
The Communication Services and Financials sectors provided the largest contributions to relative performance. Regarding individual positions, Upstart Holdings, Inc.; Moderna, Inc.; Bio-Techne Corp.; US Foods Holding Corp.; and CrowdStrike Holdings, Inc., Cl. A were among the top contributors to absolute performance.
Upstart Holdings provides an online marketplace lending platform that is powered by artificial intelligence. The platform facilitates the origination of prime and near prime unsecured consumer loans by acting as an intermediary between consumers and lending institutions, which is a capital-light model.
Shares of Upstart outperformed after the company said it delivered strong results for the second quarter and raised full-year 2021 guidance. In our view, the results showed that volume growth in the core personal loan business is strong as Upstart’s marketing funnel is gaining scale benefits while EBITDA margins are expanding and tracking well ahead of guidance. Upstart also continues to gain further traction in bank partnerships and make solid progress with its nascent auto loan product that is available in many states. In our view, the results demonstrate that Upstart has the potential to address a very large market over the coming years in a highly profitable way, and that the company’s investments in growth initiatives are bearing fruit.
Detractors from Performance
The Information Technology and Healthcare sectors were among the sectors that detracted from relative performance.
Regarding individual positions, Quidel Corp.; Forte Biosciences Inc.; Discovery, Inc., Cl. A; DermTech, Inc.; and Cheesecake Factory, Inc. were among the top detractors from absolute performance. Shares of Quidel underperformed in response to developments identified in the Alger 35 Fund discussion.
Alger Mid Cap Focus Fund
The Alger Mid Cap Focus Fund generated a 57.36% return for the fiscal 12-month period ended October 31, 2021, compared to the 39.43% return of the Russell Midcap Growth Index.
Contributors to Performance
During the quarter, the largest portfolio sector weightings were Information Technology and Industrials. The largest sector overweight was Industrials and the largest sector underweight was Information Technology. The Industrials and Consumer Discretionary sectors provided the largest contributions to relative performance.
Regarding individual positions, Cloudflare., Inc., Cl. A; Upstart Holdings, Inc.; InMode Ltd.; Roku, Inc., Cl. A; and MicroStrategy, Inc., Cl. A were among the top contributors to absolute performance. Shares of Upstart outperformed in response to developments identified in the Alger Mid Cap Growth Fund discussion.
Detractors from Performance
The Energy and Real Estate sectors were among the top detractors from relative performance. Regarding individual positions, Quidel Corp.; EHang Holdings Ltd.; ChargePoint Holdings, Inc., Cl. A; DMC Global, Inc.; and Yalla Group Ltd., Cl. A were among the top detractors from absolute performance. Shares of Quidel underperformed in response to developments identified in the Alger 35 Fund discussion.
Alger Weatherbie Specialized Growth Fund
The Alger Weatherbie Specialized Growth Fund generated a 49.80% return during the fiscal 12-month period ended October 31, 2021, compared to the 37.12% return of the Russell 2500 Growth Index.
During the reporting period, the largest portfolio sector weightings were Information Technology and Healthcare. The largest sector overweight was Financials. The Fund had no exposure to Communication Services, Consumer Staples, Materials or Utilities sectors.
Contributors to Performance
The Financials and Healthcare sectors provided the greatest contributions to relative performance. Regarding individual positions, Upstart Holdings, Inc.; Progyny, Inc.; Signature Bank; Paylocity Holding Corp.; and Natera, Inc. were among top contributors to absolute performance. Shares of Upstart outperformed in response to developments identified in the Alger Mid Cap Growth Fund discussion.
Detractors from Performance
The Consumer Discretionary sector was the largest detractor from relative performance. Regarding individual positions, ACADIA Pharmaceuticals, Inc.; Eargo, Inc.; Ollie's Bargain Outlet Holdings, Inc.; Nevro Corp.; and Latham Group, Inc. were among the top detractors from absolute performance.
Ollie's Bargain Outlet is a retailer of brand name merchandise such as food, houseware, books and stationery, bed and bath products, floor coverings, electronics and toys. Other products include hardware, personal healthcare items, candy, clothing, sporting equipment, pet and lawn goods, and garden items. Ollie’s faced a challenging comparison to the second quarter of 2020, when it was one of the traditional brick-and-mortar retailers that benefited from the COVID-19 pandemic as food offerings made the company an essential service and the Ollie’s Army brand loyalty program expanded. Ollie’s posted a negative same store sales comparison for the second quarter of this year as expected, but other factors contributed to the stock’s underperformance, including supply chain disruptions and a tight labor market.
Alger Small Cap Growth Fund
The Alger Small Cap Growth Fund returned 29.27% for the fiscal 12-month period ended October 31, 2021, compared to the 38.45% return of the Russell 2000 Growth Index. 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.
Contributors to Performance
The Healthcare and Information Technology sectors provided the greatest contributions to relative performance. Regarding individual positions, HubSpot, Inc.; Bio-Techne Corp.; InMode Ltd.; Bill.com Holdings, Inc.; and Magnolia Oil & Gas Corp., Cl. A were among the top contributors to absolute performance.
Bill.com is an emerging growth company that provides software as a solution services for business-to-business (B2B) payments. Its services target small and medium-size businesses (SMB). We believe SMBs are in the very early stages of digitizing their B2B payments and that Bill.com has a strong first-mover advantage to capitalize on secular tailwinds. In our view, Bill.com offers a clear value add to customers, attractive unit economics and an emerging network effect that could drive revenue acceleration. Shares of Bill.com outperformed after the company announced strong results led by a material beat in volume and transaction revenue, well-received fiscal-year 2022 guidance and incremental details on recently acquired Divvy, which is an expense management and smart corporate credit card solutions provider. Details about Bill.com’s invoice2go, which includes mobile device and web-based invoicing, expense tracking and reporting tools, also supported performance. The company’s fiscal fourth quarter results underscored ongoing strength in organic Bill.com trends coupled with incremental revenue and cross-selling potential with Divvy and Invoice2go customers.
Detractors from Performance
The Industrials and Consumer Discretionary sectors were among the sectors that detracted from results. Regarding individual positions, Quidel Corp.; Bandwidth, Inc., Cl. A; Quotient Technology, Inc.; BigCommerce Holdings, Inc.; and Forte Biosciences, Inc. were among the top detractors from absolute performance. Shares of Quidel underperformed in response to developments identified in the Alger 35 Fund discussion.
Alger Small Cap Focus Fund
The Alger Small Cap Focus Fund returned 21.05% during the fiscal 12-month period ended October 31, 2021, compared to the 38.45% return of the Russell 2000 Growth Index. During the reporting period, the Healthcare and Information Technology sectors were the largest portfolio sector weightings. The largest sector overweight was Healthcare. The Fund had no exposure to Financials, Materials, Real Estate or Utilities and insignificant exposure to Energy and Consumer Staples.
Contributors to Performance
The Healthcare sector provided the greatest contribution to relative performance. Regarding individual positions Natera, Inc.; CryoPort, Inc.; Bio-Techne Corp.; Shockwave Medical, Inc.; and Repligen Corp. were among the top contributors to absolute performance.
Repligen is a leading provider of advanced bioprocessing technologies and solutions used in manufacturing biologic drugs. Repligen’s main product areas are in filtration, which involves removing cellular metabolic waste during fermentation; chromatography, which purifies the final biologic drugs; growth factor products, which are used during manufacturing; and process analytics, which is used to analyze the purity of drug substances. The performance of Repligen shares benefited from the company announcing in July that it generated strong second quarter results. Repligen posted impressive organic growth resulting from strong demand for its core products and COVID-19 vaccine manufacturing. In addition, Repligen closed the acquisition of Polymem SA in July to significantly expand its filtration manufacturing capacity and add new technologies. The company also announced the acquisition of Avitidei, which could strengthen its protein and growth factor business.
Detractors from Performance
The Consumer Discretionary sector was the top detractor from relative performance. Regarding individual positions, Quidel Corp.; Berkeley Lights, Inc.; Eargo, Inc.; BigCommerce Holdings, Inc.; and WM Technology, Inc., Cl. A were the top detractors from absolute performance. Shares of Quidel underperformed in response to developments identified in the Alger 35 Fund discussion.
Alger International Focus Fund
The Alger International Focus Fund recorded a 34.87% return for the fiscal 12-month period ended October 31, 2021, compared to the 30.23% return of the MSCI ACWI ex USA Index.
During the quarter, the largest portfolio sector weightings were Consumer Discretionary and Information Technology. The largest sector overweight was Consumer Discretionary and the largest sector underweight was Financials.
Contributors to Performance
The Industrials and Consumer Discretionary sectors provided the greatest contributions to relative performance. From a country perspective, the Netherlands, Hong Kong, France, Sweden, Italy and China were among the top contributors to relative performance.
Regarding individual positions, ASML Holding NV; EQT AB; Indian Railway Catering & Tourism Corp. Ltd.; Lasertec Corp.; and Samsonite International S.A. were among the top contributors to absolute performance. ASML Holding is a global leader in advanced semiconductor lithography equipment. Increased demand for new semiconductors is increasing demand for ASML’s cutting edge extreme ultraviolet (EUV) lithography, which is a technology that is critical to the newest generation of chip development.
Detractors from Performance
The Financials and Energy sectors were among the sectors that detracted from results. From a country perspective, Brazil, Spain, Australia and the United Kingdom were among the top detractors from relative performance.
Regarding individual positions, Kogan.com Ltd.; Vinci Partners Investments Ltd., Cl. A; Tencent Holdings Ltd.; Trip.com Group Ltd.; and StoneCo Ltd., Cl. A were among the top detractors from absolute performance. Kogan.com is one of Australia’s largest pure-play online retailers of consumer electronics, general merchandise and adjacent services with its own private label and third-party brands. Kogan is benefitting from the structural shift toward e-commerce; however, the company has faced cost pressures and transitory charges related to logistics, personal protective equipment and compensation awards resulting in a deceleration of EBITDA growth. While website data and app downloads have shown continued strong momentum, the stock’s performance took a breather after generating an extremely strong 2020 return.
Alger Health Sciences Fund
The Alger Health Sciences Fund returned 29.12% for the fiscal 12-month period ended October 31, 2021, compared to the 42.91% return of the S&P 500 Index and the 30.86% return of the Russell 3000 Healthcare Index. As of July 1, 2021, Dr. Sanjiv Talwar became one of the Fund’s portfolio managers.
Contributors to Performance
Regarding individual positions, Moderna, Inc.; DexCom, Inc.; InMode Ltd.; Bio-Techne Corp.; and UnitedHealth Group, Inc. were among the top contributors to absolute performance.
Bio-Techne develops, manufactures and sells biotechnology reagents, clinical diagnostic products and instruments for medical research and clinical diagnostic applications. With its deep product portfolio and application expertise, Bio-Techne provides life science customers with innovative, high-quality scientific tools to better understand biological processes and drive discovery of diagnostic and therapeutic products. Bio-Techne also sells a portfolio of assays, or clinical molecular diagnostic oncology products, including a test used in the diagnosis of prostate cancer. Bio-Techne has generated strong earnings growth with a faster-than-expected rebound from the pandemic due to demand from academic customers, while demand from biopharmaceutical customers has remained robust.
Detractors from Performance
Forte Biosciences, Inc.; Nevro Corp.; Invitae Corp.; Livongo Health, Inc.; and Novavax, Inc. were among the top detractors from absolute performance. Forte Biosciences is a clinical-stage biotechnology company that was focused on developing FB-401, its lead biotherapeutic drug candidate for treating atopic dermatitis (AD), which is an inflammatory skin condition. In early September, Forte Biosciences provided top-line data from its highly anticipated Phase 2b trial, which evaluated FB-401 versus a placebo for the first time and would have potentially been a big catalyst for the company by providing further scientific validation of the drug; however, the results showed no statistically significant improvement in clinical benefit relative to the placebo, which sparked a selloff of Forte Biosciences shares. The company intends to discontinue further investments in FB-401 and we have sold the position.
I thank you for putting your trust in Alger.
Sincerely,
Daniel C. Chung, CFA
Chief Executive 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 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 35 Fund represents Class Z shares. Performance for the Alger Mid Cap Focus Fund represents 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, 2021. 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, 2021.
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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility.
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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium capitalizations involves 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. 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.
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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. 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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of medium capitalizations involves 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. 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 investments. Investing in companies of medium capitalizations involves 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 may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. 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. 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 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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium capitalizations involves 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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small capitalizations involves 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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small capitalizations involves 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. 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 investments. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector 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 involves 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. 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 investments. 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 involves 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 and summary prospectus containing this and other information or for the Alger Funds’ most recent month-end performance data, visit www.alger. com, call (800) 992-3863 or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing.
Distributor: Fred Alger & Company, LLC.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE
Definitions:
| • | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. |
| • | The Russell 3000 Growth Index combines the large-cap Russell 1000 Growth, the small-cap Russell 2000 Growth and the Russell Microcap Growth Index. It includes companies that are considered more growth oriented relative to the overall market as defined by Russell's leading style methodology. The Russell 3000 Growth Index is constructed to provide a comprehensive, un- biased, and stable barometer of the growth opportunities within the broad market. |
| • | The Russell 3000 Value Index measures the performance of the broad value segment of the US equity value universe. It includes those Russell 3000 com- panies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000 Value Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad value market. |
| • | The Russell 3000 Index is a market-capitalization-weighted equity index maintained by FTSE Russell that provides exposure to the entire U.S. stock market. The index tracks the performance of the 3,000 largest U.S.-traded stocks, which represent about 98% of all U.S.-incorporated equity securities. The Russell 3000 Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market |
| • | The MSCI ACWI Index (gross) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI captures large and mid cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries. |
| • | The MSCI ACWI ex USA Index (gross) captures large and mid cap represen- tation 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 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 lead- ing style methodology. The Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. |
| • | The Russell 1000 Value Index measures the performance of the large cap val- ue segment of the U.S. equity universe. It includes those Russell 1000 com- panies with lower price-to-book ratios and lower forecasted growth values. |
The Russell 1000 Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment.
| • | The S&P 500 Growth Index is an unmanaged index considered representa- tive of large-cap growth stocks. |
| • | The S&P 500 Value Index is an unmanaged index considered representative of large-cap value stocks. |
| • | The S&P 500 Index is an index of large company stocks considered to be representative of the U.S. stock market. |
| • | The Russell Midcap Growth Index measures the performance of the mid- cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher growth earning potential as defined by Russell's leading style methodology. The Russell Midcap 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. |
| • | 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 biotech- nology. |
FUND PERFORMANCE AS OF 9/30/21 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | SINCE INCEPTION | |
Alger Capital Appreciation Class A (Inception 12/31/96) | | | 15.79 | % | | | 20.47 | % | | | 18.45 | % | | | 11.11 | % |
Alger Capital Appreciation Class C (Inception 7/31/97)* | | | 20.31 | % | | | 20.88 | % | | | 18.21 | % | | | 10.94 | % |
Alger Capital Appreciation Class Z (Inception 12/29/10) | | | 22.62 | % | | | 22.18 | % | | | 19.49 | % | | | 16.90 | % |
Alger 35 Fund Class Z (Inception 10/31/18)** | | | 32.10 | % | | | n/a | | | | n/a | | | | 27.82 | % |
Alger Growth & Income Class A (Inception 12/31/96) | | | 24.56 | % | | | 14.63 | % | | | 14.40 | % | | | 9.17 | % |
Alger Growth & Income Class C (Inception 7/31/97)* | | | 29.44 | % | | | 15.00 | % | | | 14.16 | % | | | 8.99 | % |
Alger Growth & Income Class Z (Inception 3/1/12) | | | 31.87 | % | | | 16.27 | % | | | n/a | | | | 13.81 | % |
Alger Mid Cap Growth Class A (Inception 12/31/96) | | | 27.61 | % | | | 22.05 | % | | | 17.66 | % | | | 10.65 | % |
Alger Mid Cap Growth Class B (Inception 5/24/93) | | | 29.76 | % | | | 22.78 | % | | | 17.66 | % | | | 10.61 | % |
Alger Mid Cap Growth Class C (Inception 7/31/97)* | | | 32.62 | % | | | 22.37 | % | | | 17.32 | % | | | 9.99 | % |
Alger Mid Cap Growth Class Z (Inception 5/28/15) | | | 35.08 | % | | | 23.72 | % | | | n/a | | | | 16.68 | % |
Alger Mid Cap Focus Class A (Inception 7/29/2021) | | | n/a | | | | n/a | | | | n/a | | | | 4.16 | % |
Alger Mid Cap Focus Class C (Inception 7/29/2021) | | | n/a | | | | n/a | | | | n/a | | | | 4.06 | % |
Alger Mid Cap Focus Class I (Inception 6/14/19) | | | 43.90 | % | | | n/a | | | | n/a | | | | 40.66 | % |
Alger Mid Cap Focus Class Y (Inception 2/26/21) | | | n/a | | | | n/a | | | | n/a | | | | 4.89 | % |
Alger Mid Cap Focus Class Z (Inception 6/14/19) | | | 44.32 | % | | | n/a | | | | n/a | | | | 40.99 | % |
Alger Weatherbie Specialized Growth Class A (Inception 5/8/02) | | | 34.54 | % | | | 24.38 | % | | | 18.63 | % | | | 11.96 | % |
Alger Weatherbie Specialized Growth Class C (Inception 5/8/02) | | | 39.92 | % | | | 24.78 | % | | | 18.36 | % | | | 11.75 | % |
Alger Weatherbie Specialized Growth Class I (Inception 8/5/07) | | | 42.07 | % | | | 25.75 | % | | | 19.29 | % | | | 12.33 | % |
Alger Weatherbie Specialized Growth Class Y (Inception 8/31/17) | | | 42.47 | % | | | n/a | | | | n/a | | | | 27.37 | % |
Alger Weatherbie Specialized Growth Class Z (Inception 12/29/10) | | | 42.45 | % | | | 26.15 | % | | | 19.67 | % | | | 16.31 | % |
Alger Small Cap Growth Class A (Inception 12/31/96) | | | 16.17 | % | | | 22.11 | % | | | 16.90 | % | | | 7.46 | % |
Alger Small Cap Growth Class B (Inception 11/11/86) | | | 17.66 | % | | | 22.74 | % | | | 16.92 | % | | | 7.44 | % |
Alger Small Cap Growth Class C (Inception 7/31/97)* | | | 20.72 | % | | | 22.47 | % | | | 16.50 | % | | | 7.30 | % |
Alger Small Cap Growth Class Z (Inception 12/29/10) | | | 23.02 | % | | | 23.88 | % | | | 17.86 | % | | | 14.57 | % |
Alger Small Cap Focus Class A (Inception 3/3/08) | | | 11.37 | % | | | 20.48 | % | | | 17.86 | % | | | 12.38 | % |
Alger Small Cap Focus Class C (Inception 3/3/08) | | | 15.67 | % | | | 20.89 | % | | | 17.66 | % | | | 12.10 | % |
Alger Small Cap Focus Class I (Inception 3/3/08) | | | 17.60 | % | | | 21.80 | % | | | 18.63 | % | | | 12.98 | % |
Alger Small Cap Focus Class Y (Inception 2/28/17) | | | 17.96 | % | | | n/a | | | | n/a | | | | 23.39 | % |
Alger Small Cap Focus Class Z (Inception 12/29/10) | | | 17.96 | % | | | 22.20 | % | | | 18.97 | % | | | 15.58 | % |
Alger International Focus Class A (Inception 12/31/96) | | | 21.75 | % | | | 11.99 | % | | | 9.71 | % | | | 6.45 | % |
Alger International Focus Class B (Inception 11/11/86) | | | 23.69 | % | | | 12.62 | % | | | 9.71 | % | | | 6.42 | % |
Alger International Focus Class C (Inception 7/31/97)* | | | 26.42 | % | | | 12.29 | % | | | 9.41 | % | | | 6.27 | % |
Alger International Focus Class I (Inception 5/31/13) | | | 28.52 | % | | | 13.40 | % | | | n/a | | | | 9.01 | % |
Alger International Focus Class Z (Inception 12/29/10) | | | 28.88 | % | | | 13.68 | % | | | 10.76 | % | | | 8.91 | % |
Alger Health Sciences Fund Class A (Inception 5/1/02) | | | 14.42 | % | | | 20.16 | % | | | 17.06 | % | | | 13.13 | % |
Alger Health Sciences Fund Class C (Inception 5/1/02) | | | 18.87 | % | | | 20.53 | % | | | 16.78 | % | | | 12.91 | % |
Alger Health Sciences Fund Class Z (Inception 5/28/15) | | | 21.17 | % | | | 21.89 | % | | | n/a | | | | 13.77 | % |
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, the 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.
Before March 28, 2018, the Alger International Focus 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.
Previously, the 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.
From August 30, 2017 to September 30, 2019, the Alger Weatherbie Specialized Growth 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.
Effective May 7, 2021, Class P shares of the Alger 35 Fund were reclassified as Class Z shares of the Fund. Class P-2 Shares of the Alger 35 Fund were converted to Class Z Shares after the close of business on October 29, 2021.
| * | 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. |
| ** | On May 7, 2021 Class P Shares of the Alger 35 Fund were reclassified as Class Z Shares of the Alger 35 Fund. After the close of business on October 29, 2021, Class P-2 Shares of the Alger 35 Fund converted to Class Z Shares of the Fund. Historical performance prior to May 7, 2021 is that of the Fund's Class P shares. |
ALGER CAPITAL APPRECIATION FUND
Fund Highlights Through October 31, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 11/1/1993 | |
| Class A (Inception 12/31/96) | | | 28.31 | % | | | 22.87 | % | | | 17.98 | % | | | 11.40 | % |
| Class C (Inception 7/31/97)* | | | 33.43 | % | | | 23.29 | % | | | 17.73 | % | | | 11.22 | % |
Russell 1000 Growth Index | | | 43.21 | % | | | 25.49 | % | | | 19.42 | % | | | 10.29 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 35.85 | % | | | 24.61 | % | | | 19.01 | % | | | 17.53 | % |
Russell 1000 Growth Index | | | 43.21 | % | | | 25.49 | % | | | 19.42 | % | | | 18.08 | % |
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 35 FUND
Fund Highlights Through October 31, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS Z SHARES
The chart above illustrates the change in value of a hypothetical $10,000 investment made in the Alger 35 Fund Class Z 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 Z shares, through October 31, 2021. Effective May 7, 2021, Class P shares of the Alger 35 Fund were reclassified as Class Z shares. The reclassified Class Z shares have the same annual returns as the Class P shares because the shares are invested in the same portfolio of securities and the reclassified Class Z shares have the same expenses as the Fund’s Class P shares. Historical performance prior to May 7, 2021 is that of the Fund's Class P shares. Figures for the Alger 35 Fund Class Z shares and the S&P 500 Index include reinvestment of dividends. Figures for the Alger 35 Fund Class Z shares also include reinvestment of capital gains. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 3/29/2018 | |
| Class Z (Inception 3/29/18) | | | 44.27 | % | | | n/a | | | | n/a | | | | 29.72 | % |
S&P 500 Index | | | 42.91 | % | | | n/a | | | | n/a | | | | 18.87 | % |
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. Effective May 7, 2021, Class P shares of the Alger 35 Fund were reclassified as Class Z shares. The reclassified Class Z shares have the same annual returns as the Class P shares because the shares are invested in the same portfolio of securities and the reclassified Class Z shares have the same expenses as the Fund's Class P shares. 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, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 36.56 | % | | | 16.54 | % | | | 14.10 | % | | | 9.43 | % |
| Class C (Inception 7/31/97)* | | | 42.01 | % | | | 16.91 | % | | | 13.85 | % | | | 9.25 | % |
S&P 500 Index | | | 42.91 | % | | | 18.93 | % | | | 16.21 | % | | | 9.66 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 3/1/2012 | |
| Class Z (Inception 3/1/12) | | | 44.54 | % | | | 18.20 | % | | | n/a | | | | 14.47 | % |
S&P 500 Index | | | 42.91 | % | | | 18.93 | % | | | n/a | | | | 15.61 | % |
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." Perfor- mance 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, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 36.48 | % | | | 24.48 | % | | | 16.70 | % | | | 10.84 | % |
| Class B (Inception 5/24/93) | | | 39.24 | % | | | 25.31 | % | | | 16.68 | % | | | 10.81 | % |
| Class C (Inception 7/31/97)* | | | 41.91 | % | | | 24.82 | % | | | 16.35 | % | | | 10.19 | % |
Russell Midcap Growth Index | | | 39.43 | % | | | 21.90 | % | | | 16.86 | % | | | 10.70 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 5/28/2015 | |
| Class Z (Inception 5/28/15) | | | 44.55 | % | | | 26.22 | % | | | n/a | | | | 17.40 | % |
Russell Midcap Growth Index | | | 39.43 | % | | | 21.90 | % | | | n/a | | | | 15.93 | % |
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. |
| ** | Pursuant to the U.S. Securities and Exchange Commission’s rules on Fair Fund and Disgorgement Plans, the Alger Mid Cap Growth Fund received a Fair Fund distribution of $9,346,397, which contributed approximately 3.89% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
ALGER MID CAP FOCUS FUND
Fund Highlights Through October 31, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS I SHARES
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, 2021. 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 A, C, Y and Z shares will vary from the results shown above due to differences in the expenses and sales charges that those classes bear. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 6/14/2019 | |
| Class I (Inception 6/14/19) | | | 57.36 | % | | | n/a | | | | n/a | | | | 43.96 | % |
| Class Z (Inception 6/14/19) | | | 57.77 | % | | | n/a | | | | n/a | | | | 44.32 | % |
Russell Midcap Growth Index | | | 39.43 | % | | | n/a | | | | n/a | | | | 26.28 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 2/26/2021 | |
| Class Y (Inception 2/26/21) | | | n/a | | | | n/a | | | | n/a | | | | 14.09 | % |
Russell Midcap Growth Index | | | n/a | | | | n/a | | | | n/a | | | | 15.71 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 7/29/2021 | |
| Class A (Inception 7/29/21) | | | n/a | | | | n/a | | | | n/a | | | | 13.35 | % |
| Class C (Inception 7/29/21) | | | n/a | | | | n/a | | | | n/a | | | | 13.16 | % |
Russell Midcap Growth Index | | | n/a | | | | n/a | | | | n/a | | | | 4.66 | % |
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. 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, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 5/8/2002 | |
| Class A (Inception 5/8/02) | | | 41.92 | % | | | 27.54 | % | | | 17.79 | % | | | 12.26 | % |
| Class C (Inception 5/8/02) | | | 47.68 | % | | | 27.95 | % | | | 17.52 | % | | | 12.05 | % |
| Class I (Inception 8/5/07)* | | | 49.81 | % | | | 28.93 | % | | | 18.44 | % | | | 12.62 | % |
Russell 2500 Growth Index | | | 37.12 | % | | | 20.68 | % | | | 16.11 | % | | | 11.33 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 8/30/2017 | |
| Class Y (Inception 8/30/17) | | | 50.35 | % | | | n/a | | | | n/a | | | | 28.63 | % |
Russell 2500 Growth Index | | | 37.12 | % | | | n/a | | | | n/a | | | | 19.89 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 50.32 | % | | | 29.34 | % | | | 18.81 | % | | | 16.84 | % |
Russell 2500 Growth Index | | | 37.12 | % | | | 20.68 | % | | | 16.11 | % | | | 14.72 | % |
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, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 22.47 | % | | | 24.73 | % | | | 15.68 | % | | | 7.59 | % |
| Class B (Inception 11/11/86) | | | 24.38 | % | | | 25.44 | % | | | 15.71 | % | | | 7.57 | % |
| Class C (Inception 7/31/97)* | | | 27.41 | % | | | 25.13 | % | | | 15.29 | % | | | 7.43 | % |
Russell 2000 Growth Index | | | 38.45 | % | | | 17.90 | % | | | 14.57 | % | | | 8.16 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 29.66 | % | | | 26.53 | % | | | 16.64 | % | | | 14.84 | % |
Russell 2000 Growth Index | | | 38.45 | % | | | 17.90 | % | | | 14.57 | % | | | 13.05 | % |
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. |
| ** | Pursuant to the U.S. Securities and Exchange Commission's Rules on Fair Fund and Disgorgement Plans, the Alger Small Cap Growth Fund received a Fair Fund distribution of $3,738,004, which contributed approximately 0.72% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
ALGER SMALL CAP FOCUS FUND
Fund Highlights Through October 31, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 3/3/2008 | |
| Class A (Inception 3/3/08) | | | 14.71 | % | | | 22.96 | % | | | 16.54 | % | | | 12.50 | % |
| Class C (Inception 3/3/08) | | | 19.17 | % | | | 23.37 | % | | | 16.34 | % | | | 12.22 | % |
| Class I (Inception 3/3/08) | | | 21.09 | % | | | 24.33 | % | | | 17.31 | % | | | 13.10 | % |
Russell 2000 Growth Index | | | 38.45 | % | | | 17.90 | % | | | 14.57 | % | | | 11.91 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 2/28/2017 | |
| Class Y (Inception 2/28/17) | | | 21.45 | % | | | n/a | | | | n/a | | | | 23.59 | % |
Russell 2000 Growth Index | | | 38.45 | % | | | n/a | | | | n/a | | | | 15.76 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 21.45 | % | | | 24.70 | % | | | 17.64 | % | | | 15.73 | % |
Russell 2000 Growth Index | | | 38.45 | % | | | 17.90 | % | | | 14.57 | % | | | 13.05 | % |
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 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, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/31/1996 | |
| Class A (Inception 12/31/96) | | | 27.82 | % | | | 13.57 | % | | | 8.94 | % | | | 6.61 | % |
| Class B (Inception 11/11/86) | | | 30.02 | % | | | 14.24 | % | | | 8.96 | % | | | 6.58 | % |
| Class C (Inception 7/31/97)* | | | 32.86 | % | | | 13.89 | % | | | 8.65 | % | | | 6.43 | % |
MSCI AC World Index ex USA | | | 30.23 | % | | | 10.28 | % | | | 7.15 | % | | | 6.02 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 5/31/2013 | |
| Class I (Inception 5/31/13) | | | 34.94 | % | | | 15.01 | % | | | n/a | | | | 9.47 | % |
MSCI AC World Index ex USA | | | 30.23 | % | | | 10.28 | % | | | n/a | | | | 6.72 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 12/29/2010 | |
| Class Z (Inception 12/29/10) | | | 35.34 | % | | | 15.30 | % | | | 9.99 | % | | | 9.27 | % |
MSCI AC World Index ex USA | | | 30.23 | % | | | 10.28 | % | | | 7.15 | % | | | 5.85 | % |
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. |
| ** | Pursuant to the U.S. Securities and Exchange Commission's Rules on Fair Fund and Disgorgement Plans, the Alger International Focus Fund received a Fair Fund distribution of $159,091, which contributed approximately 0.11% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
ALGER HEALTH SCIENCES FUND**
Fund Highlights Through October 31, 2021 (Unaudited)
HYPOTHETICAL $10,000 INVESTMENT IN CLASS A SHARES
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, 2021. 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, 2021 (Unaudited) (Continued)
PERFORMANCE COMPARISON AS OF 10/31/21
AVERAGE ANNUAL TOTAL RETURNS
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 5/1/2002 | |
| Class A (Inception 5/1/02) | | | 22.34 | % | | | 23.60 | % | | | 16.70 | % | | | 13.22 | % |
| Class C (Inception 5/1/02) | | | 27.11 | % | | | 23.98 | % | | | 16.44 | % | | | 13.00 | % |
Russell 3000 Healthcare Index | | | 30.86 | % | | | 17.68 | % | | | 17.53 | % | | | 10.45 | % |
S&P 500 Index | | | 42.91 | % | | | 18.93 | % | | | 16.21 | % | | | 9.86 | % |
| | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | | | Since 5/28/2015 | |
| Class Z (Inception 5/28/15) | | | 29.53 | % | | | 25.38 | % | | | n/a | | | | 14.02 | % |
Russell 3000 Healthcare Index | | | 30.86 | % | | | 17.68 | % | | | n/a | | | | 11.67 | % |
S&P 500 Index | | | 42.91 | % | | | 18.93 | % | | | n/a | | | | 15.02 | % |
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.
| ** | Pursuant to the U.S. Securities and Exchange Commission's Rules on Fair Fund and Disgorgement Plans, the Alger Health Sciences Fund received a Fair Fund distribution of $179,832, which contributed approximately 0.07% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
October 31, 2021 (Unaudited)
SECTORS | | Alger Capital Appreciation Fund | | | Alger 35 Fund | | | Alger Growth & Income Fund | | | Alger Mid Cap Growth Fund | |
| Communication Services | | | 12.1 | % | | | 6.1 | % | | | 12.1 | % | | | 7.5 | % |
| Consumer Discretionary | | | 22.8 | | | | 8.1 | | | | 8.1 | | | | 11.6 | |
| Consumer Staples | | | 0.0 | | | | 0.0 | | | | 6.4 | | | | 0.0 | |
| Energy | | | 0.1 | | | | 2.0 | | | | 3.4 | | | | 0.9 | |
| Financials | | | 3.9 | | | | 6.1 | | | | 15.0 | | | | 6.8 | |
| Healthcare | | | 7.8 | | | | 17.2 | | | | 12.2 | | | | 22.6 | |
| Industrials | | | 4.7 | | | | 6.2 | | | | 5.8 | | | | 11.8 | |
| Information Technology | | | 47.2 | | | | 48.3 | | | | 26.4 | | | | 35.7 | |
| Materials | | | 0.4 | | | | 0.0 | | | | 1.8 | | | | 0.5 | |
| Real Estate | | | 0.4 | | | | 3.1 | | | | 3.7 | | | | 0.8 | |
| Utilities | | | 0.0 | | | | 0.0 | | | | 1.1 | | | | 0.0 | |
| Short-Term Investments and Net Other Assets | | | 0.6 | | | | 2.9 | | | | 4.0 | | | | 1.8 | |
| | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
SECTORS | | Alger Mid Cap Focus Fund | | | Alger Weatherbie Specialized Growth Fund | | | Alger Small Cap Growth Fund | | | Alger Small Cap Focus Fund | |
| Communication Services | | | 4.8 | % | | | 0.0 | % | | | 6.7 | % | | | 2.3 | % |
| Consumer Discretionary | | | 7.7 | | | | 11.8 | | | | 8.2 | | | | 7.1 | |
| Consumer Staples | | | 2.2 | | | | 0.0 | | | | 2.5 | | | | 1.3 | |
| Energy | | | 1.8 | | | | 2.4 | | | | 1.9 | | | | 2.0 | |
| Financials | | | 6.2 | | | | 12.7 | | | | 2.0 | | | | 0.0 | |
| Healthcare | | | 17.1 | | | | 20.8 | | | | 35.9 | | | | 46.6 | |
| Industrials | | | 22.0 | | | | 16.4 | | | | 5.7 | | | | 10.3 | |
| Information Technology | | | 37.3 | | | | 24.5 | | | | 27.6 | | | | 29.3 | |
| Materials | | | 0.0 | | | | 1.0 | | | | 2.3 | | | | 0.0 | |
| Real Estate | | | 0.0 | | | | 5.7 | | | | 0.7 | | | | 0.0 | |
| Short-Term Investments and Net Other Assets | | | 0.9 | | | | 4.7 | | | | 6.5 | | | | 1.1 | |
| | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
SECTORS | | Alger Health Sciences Fund | |
Consumer Staples | | | 1.7 | % |
Financials | | | 1.4 | |
Healthcare | | | 90.6 | |
Information Technology | | | 6.3 | |
Short-Term Investments and Net Other Assets | | | 0.0 | |
| | | | 100.0 | % |
PORTFOLIO SUMMARY†
October 31, 2021 (Unaudited) (Continued)
COUNTRY | | Alger International Focus Fund | |
Argentina | | | 1.9 | % |
Australia | | | 5.5 | |
Belgium | | | 1.1 | |
China | | | 6.6 | |
France | | | 10.1 | |
Germany | | | 5.3 | |
Hong Kong | | | 4.9 | |
India | | | 2.2 | |
Ireland | | | 2.1 | |
Italy | | | 9.4 | |
Japan | | | 10.0 | |
Netherlands | | | 11.6 | |
Norway | | | 4.2 | |
Singapore | | | 2.6 | |
South Korea | | | 2.6 | |
Spain | | | 1.4 | |
Sweden | | | 2.7 | |
Switzerland | | | 7.0 | |
Taiwan | | | 1.9 | |
United Kingdom | | | 2.1 | |
United States | | | 2.1 | |
| Short-Term Investments, Cash and Net Other Assets | | | 2.7 | |
| | | 100.0 | % |
| † | Based on net assets for each Fund. |
| THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND |
Schedule of Investments October 31, 2021 |
| COMMON STOCKS—98.8% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.4% | | | | | | |
| HEICO Corp. | | | 77,819 | | | $ | 10,847,191 | |
| TransDigm Group, Inc.* | | | 59,727 | | | | 37,258,897 | |
| | | | | | | | 48,106,088 | |
| AIR FREIGHT & LOGISTICS—0.3% | | | | | | | | |
| GXO Logistics, Inc.* | | | 134,738 | | | | 11,964,734 | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.8% | | | | | | | | |
| Capri Holdings Ltd.* | | | 473,060 | | | | 25,185,714 | |
| Lululemon Athletica, Inc.* | | | 47,253 | | | | 22,020,371 | |
| LVMH Moet Hennessy Louis Vuitton SE | | | 18,139 | | | | 14,222,568 | |
| | | | | | | | 61,428,653 | |
| APPLICATION SOFTWARE—10.1% | | | | | | | | |
| Adobe, Inc.* | | | 212,579 | | | | 138,252,878 | |
| Bill.com Holdings, Inc.* | | | 65,585 | | | | 19,302,321 | |
| Cadence Design Systems, Inc.* | | | 163,614 | | | | 28,323,219 | |
| Five9, Inc.* | | | 29,964 | | | | 4,734,612 | |
| Intuit, Inc. | | | 103,439 | | | | 64,751,780 | |
| salesforce.com, Inc.* | | | 251,282 | | | | 75,306,703 | |
| Unity Software, Inc.* | | | 105,271 | | | | 15,928,555 | |
| | | | | | | | 346,600,068 | |
| AUTOMOBILE MANUFACTURERS—5.0% | | | | | | | | |
| General Motors Co.* | | | 629,329 | | | | 34,254,378 | |
| Tesla, Inc.* | | | 121,759 | | | | 135,639,526 | |
| | | | | | | | 169,893,904 | |
| AUTOMOTIVE RETAIL—1.1% | | | | | | | | |
| Carvana Co., Cl. A* | | | 50,905 | | | | 15,433,378 | |
| Lithia Motors, Inc., Cl. A | | | 73,070 | | | | 23,325,405 | |
| | | | | | | | 38,758,783 | |
| BIOTECHNOLOGY—1.0% | | | | | | | | |
| Horizon Therapeutics PLC* | | | 166,509 | | | | 19,966,094 | |
| Natera, Inc.* | | | 125,393 | | | | 14,366,276 | |
| | | | | | | | 34,332,370 | |
| CASINOS & GAMING—2.5% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 221,621 | | | | 10,325,322 | |
| Evolution AB | | | 83,770 | | | | 13,598,670 | |
| Flutter Entertainment PLC* | | | 97,413 | | | | 18,440,126 | |
| MGM Resorts International | | | 934,920 | | | | 44,090,827 | |
| | | | | | | | 86,454,945 | |
| CONSUMER FINANCE—1.1% | | | | | | | | |
| Upstart Holdings, Inc.* | | | 117,987 | | | | 37,996,534 | |
| DATA PROCESSING & OUTSOURCED SERVICES—7.3% | |
| Dlocal Ltd., Cl. A* | | | 390,004 | | | | 18,919,094 | |
| PayPal Holdings, Inc.* | | | 296,260 | | | | 68,907,113 | |
| Square, Inc., Cl. A* | | | 186,886 | | | | 47,562,487 | |
| Visa, Inc., Cl. A | | | 535,214 | | | | 113,342,269 | |
| | | | | | | | 248,730,963 | |
| DIVERSIFIED SUPPORT SERVICES—0.6% | | | | | | | | |
| Cintas Corp. | | | 50,985 | | | | 22,081,604 | |
| THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND |
Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—98.8% (CONT.) | | SHARES | | | VALUE | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.1% | | | | | | |
| AMETEK, Inc. | | | 95,165 | | | $ | 12,599,846 | |
| Eaton Corp. PLC | | | 157,234 | | | | 25,905,874 | |
| | | | | | | | 38,505,720 | |
| FINANCIAL EXCHANGES & DATA—1.1% | | | | | | | | |
| CME Group, Inc., Cl. A | | | 8,672 | | | | 1,912,610 | |
| S&P Global, Inc. | | | 77,020 | | | | 36,519,803 | |
| | | | | | | | 38,432,413 | |
| FOOTWEAR—0.9% | | | | | | | | |
| NIKE, Inc., Cl. B | | | 182,956 | | | | 30,606,709 | |
| GENERAL MERCHANDISE STORES—0.6% | | | | | | | | |
| Target Corp. | | | 75,298 | | | | 19,548,867 | |
| HEALTHCARE EQUIPMENT—4.1% | | | | | | | | |
| Danaher Corp. | | | 257,623 | | | | 80,319,123 | |
| Dexcom, Inc.* | | | 23,887 | | | | 14,886,617 | |
| Intuitive Surgical, Inc.* | | | 120,738 | | | | 43,602,114 | |
| | | | | | | | 138,807,854 | |
| HEALTHCARE SERVICES—0.2% | | | | | | | | |
| Guardant Health, Inc.* | | | 57,246 | | | | 6,685,760 | |
| HEALTHCARE SUPPLIES—0.6% | | | | | | | | |
| Align Technology, Inc.* | | | 33,909 | | | | 21,171,762 | |
| HEALTHCARE TECHNOLOGY—0.2% | | | | | | | | |
| Doximity, Inc., Cl. A* | | | 119,777 | | | | 8,322,106 | |
| HOME IMPROVEMENT RETAIL—0.8% | | | | | | | | |
| Lowe's Cos., Inc. | | | 113,371 | | | | 26,508,407 | |
| HOTELS RESORTS & CRUISE LINES—0.5% | | | | | | | | |
| Booking Holdings, Inc.* | | | 5,688 | | | | 13,769,396 | |
| Expedia Group, Inc.* | | | 20,248 | | | | 3,328,974 | |
| | | | | | | | 17,098,370 | |
| INTERACTIVE HOME ENTERTAINMENT—2.2% | | | | | | | | |
| ROBLOX Corp., Cl. A* | | | 131,160 | | | | 11,020,063 | |
| Sea Ltd.#,* | | | 128,483 | | | | 44,142,905 | |
| Take-Two Interactive Software, Inc.* | | | 114,763 | | | | 20,772,103 | |
| | | | | | | | 75,935,071 | |
| INTERACTIVE MEDIA & SERVICES—7.5% | | | | | | | | |
| Alphabet, Inc., Cl. C* | | | 62,659 | | | | 185,809,625 | |
| Meta Platforms, Inc., Cl. A* | | | 176,236 | | | | 57,024,683 | |
| Pinterest, Inc., Cl. A* | | | 97,241 | | | | 4,340,838 | |
| Snap, Inc., Cl. A* | | | 198,938 | | | | 10,460,160 | |
| | | | | | | | 257,635,306 | |
| INTERNET & DIRECT MARKETING RETAIL—7.3% | | | | | | | | |
| Altaba, Inc.*,@,(a) | | | 259,825 | | | | 1,015,916 | |
| Amazon.com, Inc.* | | | 72,356 | | | | 244,015,545 | |
| Global-e Online Ltd.* | | | 92,223 | | | | 5,336,023 | |
| | | | | | | | 250,367,484 | |
| THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND |
Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—98.8% (CONT.) | | SHARES | | | VALUE | |
| INTERNET SERVICES & INFRASTRUCTURE—2.9% | | | | | | |
| Okta, Inc., Cl. A* | | | 18,605 | | | $ | 4,598,784 | |
| Shopify, Inc., Cl. A* | | | 29,807 | | | | 43,718,821 | |
| Snowflake, Inc., Cl. A* | | | 38,631 | | | | 13,669,193 | |
| Twilio, Inc., Cl. A* | | | 125,561 | | | | 36,583,453 | |
| | | | | | | | 98,570,251 | |
| INVESTMENT BANKING & BROKERAGE—0.7% | | | | | | | | |
| Morgan Stanley | | | 230,509 | | | | 23,691,715 | |
| LEISURE FACILITIES—0.6% | | | | | | | | |
| Vail Resorts, Inc. | | | 59,641 | | | | 20,558,849 | |
| LIFE SCIENCES TOOLS & SERVICES—0.2% | | | | | | | | |
| Thermo Fisher Scientific, Inc. | | | 8,663 | | | | 5,484,285 | |
| MANAGED HEALTHCARE—0.8% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 56,179 | | | | 25,868,744 | |
| MOVIES & ENTERTAINMENT—2.4% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 367,522 | | | | 37,174,850 | |
| Netflix, Inc.* | | | 29,135 | | | | 20,112,182 | |
| Roku, Inc., Cl. A* | | | 84,596 | | | | 25,793,321 | |
| | | | | | | | 83,080,353 | |
| OIL & GAS EXPLORATION & PRODUCTION—0.1% | | | | | | | | |
| Pioneer Natural Resources Co. | | | 13,481 | | | | 2,520,677 | |
| PHARMACEUTICALS—0.7% | | | | | | | | |
| Zoetis, Inc., Cl. A | | | 108,430 | | | | 23,442,566 | |
| RAILROADS—0.5% | | | | | | | | |
| Union Pacific Corp. | | | 78,500 | | | | 18,949,900 | |
| REGIONAL BANKS—1.0% | | | | | | | | |
| Signature Bank | | | 112,637 | | | | 33,545,551 | |
| RESTAURANTS—1.7% | | | | | | | | |
| Chipotle Mexican Grill, Inc., Cl. A* | | | 19,023 | | | | 33,842,488 | |
| Starbucks Corp. | | | 216,147 | | | | 22,926,712 | |
| | | | | | | | 56,769,200 | |
| SEMICONDUCTOR EQUIPMENT—2.4% | | | | | | | | |
| Applied Materials, Inc. | | | 90,349 | | | | 12,346,191 | |
| Enphase Energy, Inc.* | | | 48,434 | | | | 11,218,767 | |
| Lam Research Corp. | | | 46,957 | | | | 26,463,556 | |
| SolarEdge Technologies, Inc.* | | | 92,020 | | | | 32,637,654 | |
| | | | | | | | 82,666,168 | |
| SEMICONDUCTORS—7.3% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 539,399 | | | | 64,851,942 | |
| Micron Technology, Inc. | | | 158,461 | | | | 10,949,655 | |
| NVIDIA Corp. | | | 362,765 | | | | 92,748,128 | |
| NXP Semiconductors NV | | | 80,074 | | | | 16,083,664 | |
| QUALCOMM, Inc. | | | 375,033 | | | | 49,894,390 | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 130,465 | | | | 14,833,870 | |
| | | | | | | | 249,361,649 | |
| SPECIALTY CHEMICALS—0.4% | | | | | | | | |
| The Sherwin-Williams Co. | | | 39,692 | | | | 12,566,884 | |
| THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND |
Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—98.8% (CONT.) | | SHARES | | | VALUE | |
| SYSTEMS SOFTWARE—12.8% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 104,803 | | | $ | 29,533,485 | |
| Microsoft Corp. | | | 1,123,973 | | | | 372,731,926 | |
| SentinelOne, Inc., Cl. A* | | | 174,312 | | | | 11,574,317 | |
| ServiceNow, Inc.* | | | 35,976 | | | | 25,102,614 | |
| | | | | | | | 438,942,342 | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—4.2% | | | | | | | | |
| Apple, Inc. | | | 954,537 | | | | 142,989,643 | |
TRUCKING—0.8% Uber Technologies, Inc.* | | | 386,911 | | | | 16,954,440 | |
| XPO Logistics, Inc.* | | | 136,772 | | | | 11,735,038 | |
| | | | | | | | 28,689,478 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $1,734,484,854) | | | | | | | 3,383,672,730 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| DATA PROCESSING & OUTSOURCED SERVICES—0.0% | | | | | | | | |
| Chime Financial, Inc., Series G*,@,(a) | | | 27,841 | | | | 1,922,972 | |
| (Cost $1,922,972) | | | | | | | 1,922,972 | |
| REAL ESTATE INVESTMENT TRUST—0.4% | | SHARES | | | VALUE | |
| RETAIL—0.4% | | | | | | | | |
| Simon Property Group, Inc. | | | 89,688 | | | | 13,146,467 | |
| (Cost $9,512,516) | | | | | | | 13,146,467 | |
| SPECIAL PURPOSE VEHICLE—0.2% | | SHARES | | | VALUE | |
| DATA PROCESSING & OUTSOURCED SERVICES—0.2% | | | | | | | | |
| Crosslink Ventures Capital LLC, Cl. A*,@,(a),(b) | | | 111 | | | | 4,443,108 | |
| (Cost $2,775,000) | | | | | | | 4,443,108 | |
| Total Investments | | | | | | | | |
| (Cost $1,748,695,342) | | | 99.4 | % | | $ | 3,403,185,277 | |
| Affiliated Securities (Cost $2,775,000) | | | | | | | 4,443,108 | |
| Unaffiliated Securities (Cost $1,745,920,342) | | | | | | | 3,398,742,169 | |
| Other Assets in Excess of Liabilities | | | 0.6 | % | | | 19,536,641 | |
| NET ASSETS | | | 100.0 | % | | $ | 3,422,721,918 | |
# | 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. |
| * | Non-income producing security. |
| THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND |
Schedule of Investments October 31, 2021 (Continued) |
| @ | 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. |
Security | Acquisition Date(s) | | Acquisition Cost | | | % of net assets (Acquisition Date) | | | Market Value | | | % of net assets as of 10/31/2021 | |
| Altaba, Inc. | 10/24/18 | | $ | 507,365 | | | | 0.02 | % | | $ | 179,148 | | | | 0.01 | % |
| Altaba, Inc. | 10/25/18 | | | 764,293 | | | | 0.03 | % | | | 263,053 | | | | 0.01 | % |
| Altaba, Inc. | 10/29/18 | | | 610,922 | | | | 0.02 | % | | | 266,639 | | | | 0.01 | % |
| Altaba, Inc. | 10/30/18 | | | 355,909 | | | | 0.01 | % | | | 176,517 | | | | 0.00 | % |
| Altaba, Inc. | 10/31/18 | | | 166,984 | | | | 0.01 | % | | | 60,644 | | | | 0.00 | % |
| Altaba, Inc. | 11/6/18 | | | 221,848 | | | | 0.01 | % | | | 69,915 | | | | 0.00 | % |
| Chime Financial, Inc., Series G | 8/24/21 | | | 1,922,972 | | | | 0.06 | % | | | 1,922,972 | | | | 0.06 | % |
| Crosslink Ventures Capital LLC, Cl. A | 10/2/20 | | | 2,775,000 | | | | 0.08 | % | | | 4,443,108 | | | | 0.13 | % |
| Total | | | | | | | | | | | $ | 7,381,996 | | | | 0.22 | % |
See Notes to Financial Statements.
| THE ALGER FUNDS | ALGER 35 FUND |
| Schedule of Investments October 31, 2021 |
| COMMON STOCKS—97.1% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—4.3% | | | | | | |
| HEICO Corp. | | | 13,566 | | | $ | 1,890,965 | |
| APPLICATION SOFTWARE—9.1% | | | | | | | | |
| Adobe, Inc.* | | | 2,043 | | | | 1,328,686 | |
| Datadog, Inc., Cl. A* | | | 8,644 | | | | 1,443,980 | |
| Paycom Software, Inc.* | | | 2,254 | | | | 1,234,854 | |
| | | | | | | | 4,007,520 | |
| BIOTECHNOLOGY—2.1% | | | | | | | | |
| Natera, Inc.* | | | 7,926 | | | | 908,082 | |
| CONSUMER FINANCE—3.1% | | | | | | | | |
| Upstart Holdings, Inc.* | | | 4,238 | | | | 1,364,805 | |
| DATA PROCESSING & OUTSOURCED SERVICES—10.9% | |
| Affirm Holdings, Inc., Cl. A* | | | 7,572 | | | | 1,230,450 | |
| Marqeta, Inc., Cl. A* | | | 61,879 | | | | 1,893,497 | |
| PayPal Holdings, Inc.* | | | 4,807 | | | | 1,118,060 | |
| Square, Inc., Cl. A* | | | 2,289 | | | | 582,551 | |
| | | | | | | | 4,824,558 | |
| FINANCIAL EXCHANGES & DATA—3.0% | | | | | | | | |
| S&P Global, Inc. | | | 2,836 | | | | 1,344,718 | |
| HEALTHCARE EQUIPMENT—5.8% | | | | | | | | |
| Dexcom, Inc.* | | | 1,885 | | | | 1,174,751 | |
| Intuitive Surgical, Inc.* | | | 3,792 | | | | 1,369,405 | |
| | | | | | | | 2,544,156 | |
| HEALTHCARE TECHNOLOGY—2.4% | | | | | | | | |
| Veeva Systems, Inc., Cl. A* | | | 3,379 | | | | 1,071,177 | |
| INTERACTIVE MEDIA & SERVICES—6.1% | | | | | | | | |
| Alphabet, Inc., Cl. C* | | | 464 | | | | 1,375,950 | |
| Genius Sports Ltd.* | | | 70,839 | | | | 1,313,355 | |
| | | | | | | | 2,689,305 | |
| INTERNET & DIRECT MARKETING RETAIL—8.1% | | | | | | | | |
| Amazon.com, Inc.* | | | 943 | | | | 3,180,202 | |
| MercadoLibre, Inc.* | | | 266 | | | | 393,951 | |
| | | | | | | | 3,574,153 | |
| INTERNET SERVICES & INFRASTRUCTURE—2.9% | |
| Shopify, Inc., Cl. A* | | | 884 | | | | 1,296,589 | |
| LIFE SCIENCES TOOLS & SERVICES—2.7% | | | | | | | | |
| Bio-Techne Corp. | | | 2,265 | | | | 1,186,067 | |
| MANAGED HEALTHCARE—2.0% | | | | | | | | |
| Progyny, Inc.* | | | 14,193 | | | | 871,876 | |
| OIL & GAS EQUIPMENT & SERVICES—2.0% | | | | | | | | |
| Core Laboratories NV | | | 34,213 | | | | 889,880 | |
| PHARMACEUTICALS—2.2% | | | | | | | | |
| Catalent, Inc.* | | | 7,047 | | | | 971,499 | |
| REAL ESTATE SERVICES—3.1% | | | | | | | | |
| FirstService Corp. | | | 6,792 | | | | 1,357,857 | |
| RESEARCH & CONSULTING SERVICES—1.9% | | | | | | | | |
| CoStar Group, Inc.* | | | 9,890 | | | | 851,034 | |
| THE ALGER FUNDS | ALGER 35 FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—97.1% (CONT.) | | SHARES | | | VALUE | |
SEMICONDUCTOR EQUIPMENT—8.1% Applied Materials, Inc. | | | 15,622 | | | $ | 2,134,746 | |
| SolarEdge Technologies, Inc.* | | | 4,023 | | | | 1,426,878 | |
| | | | | | | | 3,561,624 | |
SEMICONDUCTORS—4.9% Advanced Micro Devices, Inc.* | | | 8,017 | | | | 963,884 | |
| QUALCOMM, Inc. | | | 5,633 | | | | 749,414 | |
| Xilinx, Inc. | | | 2,545 | | | | 458,100 | |
| | | | | | | | 2,171,398 | |
SYSTEMS SOFTWARE—10.5% Crowdstrike Holdings, Inc., Cl. A* | | | 4,184 | | | | 1,179,051 | |
| Microsoft Corp. | | | 10,427 | | | | 3,457,802 | |
| | | | | | | | 4,636,853 | |
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—1.9% Apple, Inc. | | | 5,726 | | | | 857,755 | |
TOTAL COMMON STOCKS (Cost $32,095,202) | | | | | | | 42,871,871 | |
Total Investments (Cost $32,095,202) | | | 97.1 | % | | $ | 42,871,871 | |
| Unaffiliated Securities (Cost $32,095,202) | | | | | | | 42,871,871 | |
| Other Assets in Excess of Liabilities | | | 2.9 | % | | | 1,287,101 | |
| NET ASSETS | | | 100.0 | % | | $ | 44,158,972 | |
| * | Non-income producing security. |
See Notes to Financial Statements.
| THE ALGER FUNDS | ALGER GROWTH & INCOME FUND |
| Schedule of Investments October 31, 2021 |
| COMMON STOCKS—91.1% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.4% | | | | | | |
| General Dynamics Corp. | | | 4,078 | | | $ | 826,815 | |
| Raytheon Technologies Corp. | | | 9,420 | | | | 837,061 | |
| TransDigm Group, Inc.* | | | 1,079 | | | | 673,102 | |
| | | | | | | | 2,336,978 | |
| ASSET MANAGEMENT & CUSTODY BANKS—4.1% | | | | | | | | |
| BlackRock, Inc., Cl. A | | | 3,473 | | | | 3,276,637 | |
| Blackstone, Inc. | | | 18,066 | | | | 2,500,696 | |
| The Carlyle Group, Inc. | | | 15,915 | | | | 893,627 | |
| | | | | | | | 6,670,960 | |
| AUTOMOBILE MANUFACTURERS—0.3% | | | | | | | | |
| General Motors Co.* | | | 8,429 | | | | 458,790 | |
| BIOTECHNOLOGY—2.2% | | | | | | | | |
| AbbVie, Inc. | | | 20,716 | | | | 2,375,504 | |
| Amgen, Inc. | | | 2,814 | | | | 582,413 | |
| Gilead Sciences, Inc. | | | 9,368 | | | | 607,796 | |
| | | | | | | | 3,565,713 | |
| BROADCASTING—0.3% | | | | | | | | |
| ViacomCBS, Inc., Cl. B | | | 11,552 | | | | 418,413 | |
| BUILDING PRODUCTS—0.6% | | | | | | | | |
| Johnson Controls International PLC | | | 13,534 | | | | 992,990 | |
| CABLE & SATELLITE—1.2% | | | | | | | | |
| Comcast Corp., Cl. A | | | 38,547 | | | | 1,982,472 | |
| COMMODITY CHEMICALS—0.3% | | | | | | | | |
| Dow, Inc. | | | 8,651 | | | | 484,196 | |
| COMMUNICATIONS EQUIPMENT—1.1% | | | | | | | | |
| Cisco Systems, Inc. | | | 32,297 | | | | 1,807,663 | |
| CONSUMER ELECTRONICS—0.6% | | | | | | | | |
| Garmin Ltd. | | | 6,386 | | | | 917,030 | |
| COPPER—0.4% | | | | | | | | |
| Southern Copper Corp. | | | 11,504 | | | | 690,125 | |
| DATA PROCESSING & OUTSOURCED SERVICES—1.3% | |
| Visa, Inc., Cl. A | | | 10,102 | | | | 2,139,301 | |
| DIVERSIFIED BANKS—5.6% | | | | | | | | |
| Bank of America Corp. | | | 55,413 | | | | 2,647,633 | |
| JPMorgan Chase & Co. | | | 38,426 | | | | 6,528,193 | |
| | | | | | | | 9,175,826 | |
| ELECTRIC UTILITIES—0.7% | | | | | | | | |
| NextEra Energy, Inc. | | | 13,915 | | | | 1,187,367 | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.2% | | | | | | | | |
| Eaton Corp. PLC | | | 11,782 | | | | 1,941,202 | |
| FINANCIAL EXCHANGES & DATA—1.2% | | | | | | | | |
| CME Group, Inc., Cl. A | | | 8,681 | | | | 1,914,595 | |
| FOOD DISTRIBUTORS—0.5% | | | | | | | | |
| Sysco Corp. | | | 11,439 | | | | 879,659 | |
| GENERAL MERCHANDISE STORES—0.5% | | | | | | | | |
| Target Corp. | | | 3,174 | | | | 824,034 | |
| HEALTHCARE EQUIPMENT—0.8% | | | | | | | | |
| Medtronic PLC | | | 10,791 | | | | 1,293,409 | |
| THE ALGER FUNDS | ALGER GROWTH & INCOME FUND |
Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—91.1% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE SERVICES—1.2% | | | | | | |
| CVS Health Corp. | | | 21,277 | | | $ | 1,899,611 | |
| HOME IMPROVEMENT RETAIL—3.0% | | | | | | | | |
| The Home Depot, Inc. | | | 13,121 | | | | 4,877,601 | |
| HOUSEHOLD PRODUCTS—1.5% | | | | | | | | |
| The Procter & Gamble Co. | | | 17,065 | | | | 2,440,124 | |
| HYPERMARKETS & SUPER CENTERS—0.8% | | | | | | | | |
| Walmart, Inc. | | | 8,976 | | | | 1,341,194 | |
| INDUSTRIAL CONGLOMERATES—1.9% | | | | | | | | |
| Honeywell International, Inc. | | | 14,404 | | | | 3,149,002 | |
| INDUSTRIAL GASES—1.1% | | | | | | | | |
| Air Products & Chemicals, Inc. | | | 5,816 | | | | 1,743,695 | |
| INTEGRATED OIL & GAS—2.5% | | | | | | | | |
| Chevron Corp. | | | 15,876 | | | | 1,817,643 | |
| Exxon Mobil Corp. | | | 19,175 | | | | 1,236,212 | |
| TotalEnergies SE# | | | 19,580 | | | | 981,154 | |
| | | | | | | | 4,035,009 | |
| INTEGRATED TELECOMMUNICATION SERVICES—1.7% | | | | | | | | |
| AT&T, Inc. | | | 31,054 | | | | 784,424 | |
| Verizon Communications, Inc. | | | 37,786 | | | | 2,002,280 | |
| | | | | | | | 2,786,704 | |
| INTERACTIVE MEDIA & SERVICES—8.9% | | | | | | | | |
| Alphabet, Inc., Cl. A* | | | 2,072 | | | | 6,135,026 | |
| Alphabet, Inc., Cl. C* | | | 1,941 | | | | 5,755,861 | |
| Meta Platforms, Inc., Cl. A* | | | 8,159 | | | | 2,640,008 | |
| | | | | | | | 14,530,895 | |
| INTERNET & DIRECT MARKETING RETAIL—2.3% | | | | | | | | |
| Amazon.com, Inc.* | | | 1,090 | | | | 3,675,949 | |
| INVESTMENT BANKING & BROKERAGE—2.9% | | | | | | | | |
| Morgan Stanley | | | 45,840 | | | | 4,711,435 | |
| MANAGED HEALTHCARE—2.4% | | | | | | | | |
| UnitedHealth Group, Inc. | | | 8,406 | | | | 3,870,711 | |
| MULTI-LINE INSURANCE—0.5% | | | | | | | | |
| The Hartford Financial Services Group, Inc. | | | 9,936 | | | | 724,632 | |
| MULTI-UTILITIES—0.4% | | | | | | | | |
| Sempra Energy | | | 5,566 | | | | 710,389 | |
| OIL & GAS STORAGE & TRANSPORTATION—0.4% | | | | | | | | |
| ONEOK, Inc. | | | 10,099 | | | | 642,498 | |
| PHARMACEUTICALS—5.6% | | | | | | | | |
| AstraZeneca PLC# | | | 14,699 | | | | 916,923 | |
| Bristol-Myers Squibb Co. | | | 13,462 | | | | 786,181 | |
| Eli Lilly & Co. | | | 4,391 | | | | 1,118,651 | |
| GlaxoSmithKline PLC# | | | 19,014 | | | | 804,862 | |
| Johnson & Johnson | | | 16,211 | | | | 2,640,448 | |
| Merck & Co., Inc. | | | 10,553 | | | | 929,192 | |
| Novartis AG# | | | 8,155 | | | | 674,908 | |
| Pfizer, Inc. | | | 28,623 | | | | 1,251,970 | |
| | | | | | | | 9,123,135 | |
| THE ALGER FUNDS | ALGER GROWTH & INCOME FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—91.1% (CONT.) | | SHARES | | | VALUE | |
| RAILROADS—0.7% | | | | | | |
| Union Pacific Corp. | | | 4,822 | | | $ | 1,164,031 | |
| RESTAURANTS—1.4% | | | | | | | | |
| McDonald's Corp. | | | 4,643 | | | | 1,140,089 | |
| Starbucks Corp. | | | 10,374 | | | | 1,100,370 | |
| | | | | | | | 2,240,459 | |
| SEMICONDUCTOR EQUIPMENT—2.2% | | | | | | | | |
| KLA Corp. | | | 9,756 | | | | 3,636,647 | |
| SEMICONDUCTORS—4.2% | | | | | | | | |
| Broadcom, Inc. | | | 6,013 | | | | 3,196,932 | |
| QUALCOMM, Inc. | | | 17,852 | | | | 2,375,030 | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 11,155 | | | | 1,268,323 | |
| | | | | | | | 6,840,285 | |
| SOFT DRINKS—2.6% | | | | | | | | |
| PepsiCo, Inc. | | | 14,545 | | | | 2,350,472 | |
| The Coca-Cola Co. | | | 32,909 | | | | 1,855,080 | |
| | | | | | | | 4,205,552 | |
| SYSTEMS SOFTWARE—10.1% | | | | | | | | |
| Microsoft Corp. | | | 49,381 | | | | 16,375,727 | |
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.5% | |
| Apple, Inc. | | | 80,957 | | | | 12,127,359 | |
| TOBACCO—1.0% | | | | | | | | |
| Altria Group, Inc. | | | 21,102 | | | | 930,809 | |
| Philip Morris International, Inc. | | | 7,633 | | | | 721,624 | |
| | | | | | | | 1,652,433 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $53,779,398) | | | | | | | 148,185,800 | |
| MASTER LIMITED PARTNERSHIP—0.5% | | SHARES | | | VALUE | |
| OIL & GAS STORAGE & TRANSPORTATION—0.5% | | | | | | | | |
| Cheniere Energy Partners LP | | | 17,250 | | | | 759,862 | |
| (Cost $584,260) | | | | | | | 759,862 | |
| REAL ESTATE INVESTMENT TRUST—4.4% | | SHARES | | | VALUE | |
| HEALTHCARE—0.5% | | | | | | | | |
| Welltower, Inc. | | | 11,087 | | | | 891,395 | |
| MORTGAGE—0.7% | | | | | | | | |
| Blackstone Mortgage Trust, Inc., Cl. A | | | 33,724 | | | | 1,109,520 | |
| RETAIL—0.8% | | | | | | | | |
| Simon Property Group, Inc. | | | 8,950 | | | | 1,311,891 | |
| SPECIALIZED—2.4% | | | | | | | | |
| Crown Castle International Corp. | | | 12,162 | | | | 2,192,808 | |
| CyrusOne, Inc. | | | 9,552 | | | | 783,455 | |
| Lamar Advertising Co., Cl. A | | | 7,743 | | | | 876,508 | |
| | | | | | | | 3,852,771 | |
| TOTAL REAL ESTATE INVESTMENT TRUST | | | | | | | | |
| (Cost $4,506,785) | | | | | | | 7,165,577 | |
| THE ALGER FUNDS | ALGER GROWTH & INCOME FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| | | | VALUE | |
Total Investments (Cost $58,870,443) | | | 96.0 | % | | $ | 156,111,239 | |
| Unaffiliated Securities (Cost $58,870,443) | | | | | | | 156,111,239 | |
| Other Assets in Excess of Liabilities | | | 4.0 | % | | | 6,543,551 | |
| NET ASSETS | | | 100.0 | % | | $ | 162,654,790 | |
| # | 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, 2021 |
| COMMON STOCKS—96.5% | | SHARES | | | VALUE | |
| ADVERTISING—0.4% | | | | | | |
| Magnite, Inc.* | | | 44,396 | | | $ | 1,200,024 | |
| AEROSPACE & DEFENSE—4.8% | | | | | | | | |
| HEICO Corp. | | | 56,232 | | | | 7,838,179 | |
| TransDigm Group, Inc.* | | | 13,381 | | | | 8,347,335 | |
| | | | | | | | 16,185,514 | |
| AIR FREIGHT & LOGISTICS—0.4% | | | | | | | | |
| GXO Logistics, Inc.* | | | 16,367 | | | | 1,453,390 | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.7% | |
| Capri Holdings Ltd.* | | | 31,216 | | | | 1,661,940 | |
| Lululemon Athletica, Inc.* | | | 10,368 | | | | 4,831,592 | |
| Moncler SpA | | | 38,383 | | | | 2,762,090 | |
| | | | | | | | 9,255,622 | |
| APPLICATION SOFTWARE—16.8% | | | | | | | | |
| ANSYS, Inc.* | | | 8,916 | | | | 3,384,335 | |
| Avalara, Inc.* | | | 16,615 | | | | 2,984,719 | |
| Bill.com Holdings, Inc.* | | | 15,475 | | | | 4,554,447 | |
| Cadence Design Systems, Inc.* | | | 15,647 | | | | 2,708,652 | |
| Confluent, Inc., Cl. A* | | | 23,872 | | | | 1,622,102 | |
| Coupa Software, Inc.* | | | 10,931 | | | | 2,488,989 | |
| Datadog, Inc., Cl. A* | | | 24,084 | | | | 4,023,232 | |
| DocuSign, Inc., Cl. A* | | | 17,973 | | | | 5,001,706 | |
| HubSpot, Inc.* | | | 6,622 | | | | 5,365,343 | |
| Manhattan Associates, Inc.* | | | 29,091 | | | | 5,281,180 | |
| Paycom Software, Inc.* | | | 15,588 | | | | 8,539,886 | |
| PTC, Inc.* | | | 13,768 | | | | 1,753,355 | |
| Sprout Social, Inc., Cl. A* | | | 44,285 | | | | 5,654,309 | |
| The Trade Desk, Inc., Cl. A* | | | 21,988 | | | | 1,647,121 | |
| Unity Software, Inc.* | | | 12,292 | | | | 1,859,903 | |
| | | | | | | | 56,869,279 | |
| AUTOMOTIVE RETAIL—0.9% | | | | | | | | |
| Advance Auto Parts, Inc. | | | 7,210 | | | | 1,625,999 | |
| Carvana Co., Cl. A* | | | 5,279 | | | | 1,600,487 | |
| | | | | | | | 3,226,486 | |
| BIOTECHNOLOGY—3.3% | | | | | | | | |
| Celldex Therapeutics, Inc.* | | | 34,085 | | | | 1,449,976 | |
| DermTech, Inc.* | | | 72,252 | | | | 1,976,092 | |
| Morphic Holding, Inc.* | | | 20,201 | | | | 1,161,557 | |
| Natera, Inc.* | | | 56,436 | | | | 6,465,873 | |
| | | | | | | | 11,053,498 | |
| CASINOS & GAMING—2.4% | | | | | | | | |
| Evolution AB | | | 20,158 | | | | 3,272,317 | |
| MGM Resorts International | | | 99,827 | | | | 4,707,841 | |
| | | | | | | | 7,980,158 | |
| COMMUNICATIONS EQUIPMENT—0.8% | | | | | | | | |
| F5 Networks, Inc.* | | | 12,203 | | | | 2,576,664 | |
| CONSUMER FINANCE—3.9% | | | | | | | | |
| Upstart Holdings, Inc.* | | | 41,306 | | | | 13,302,184 | |
| THE ALGER FUNDS | ALGER MID CAP GROWTH FUND |
Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—96.5% (CONT.) | | SHARES | | | VALUE | |
| DATA PROCESSING & OUTSOURCED SERVICES—3.1% | |
| Affirm Holdings, Inc., Cl. A* | | | 21,195 | | | $ | 3,444,187 | |
| Dlocal Ltd., Cl. A* | | | 84,609 | | | | 4,104,383 | |
| Marqeta, Inc., Cl. A* | | | 102,543 | | | | 3,137,816 | |
| | | | | | | | 10,686,386 | |
| DIVERSIFIED SUPPORT SERVICES—1.3% | | | | | | | | |
| Cintas Corp. | | | 4,191 | | | �� | 1,815,122 | |
| Copart, Inc.* | | | 16,848 | | | | 2,616,326 | |
| | | | | | | | 4,431,448 | |
| ELECTRICAL COMPONENTS & EQUIPMENT—1.6% | | | | | | | | |
| AMETEK, Inc. | | | 13,020 | | | | 1,723,848 | |
| Generac Holdings, Inc.* | | | 3,646 | | | | 1,817,750 | |
| Sunrun, Inc.* | | | 30,141 | | | | 1,738,533 | |
| | | | | | | | 5,280,131 | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—2.0% | | | | | | | | |
| 908 Devices, Inc.* | | | 52,844 | | | | 1,738,568 | |
| Teledyne Technologies, Inc.* | | | 5,620 | | | | 2,524,616 | |
| Trimble, Inc.* | | | 27,208 | | | | 2,377,163 | |
| | | | | | | | 6,640,347 | |
| HEALTHCARE DISTRIBUTORS—0.5% | | | | | | | | |
| McKesson Corp. | | | 8,219 | | | | 1,708,566 | |
| HEALTHCARE EQUIPMENT—5.0% | | | | | | | | |
| CryoPort, Inc.* | | | 38,528 | | | | 3,141,573 | |
| Dexcom, Inc.* | | | 6,787 | | | | 4,229,726 | |
| IDEXX Laboratories, Inc.* | | | 2,474 | | | | 1,648,030 | |
| Inmode Ltd.* | | | 47,193 | | | | 4,471,065 | |
| Insulet Corp.* | | | 10,835 | | | | 3,359,067 | |
| | | | | | | | 16,849,461 | |
| HEALTHCARE FACILITIES—1.3% | | | | | | | | |
| The Joint Corp.* | | | 49,034 | | | | 4,289,494 | |
| HEALTHCARE SERVICES—0.9% | | | | | | | | |
| Guardant Health, Inc.* | | | 25,810 | | | | 3,014,350 | |
| HEALTHCARE TECHNOLOGY—3.7% | | | | | | | | |
| Doximity, Inc., Cl. A* | | | 62,603 | | | | 4,349,656 | |
| Inspire Medical Systems, Inc.* | | | 7,281 | | | | 1,962,812 | |
| Veeva Systems, Inc., Cl. A* | | | 19,199 | | | | 6,086,275 | |
| | | | | | | | 12,398,743 | |
| HOMEFURNISHING RETAIL—0.8% | | | | | | | | |
| Williams-Sonoma, Inc. | | | 14,054 | | | | 2,610,249 | |
| HOTELS RESORTS & CRUISE LINES—0.5% | | | | | | | | |
| Expedia Group, Inc.* | | | 11,168 | | | | 1,836,131 | |
| INTERACTIVE HOME ENTERTAINMENT—1.5% | | | | | | | | |
| ROBLOX Corp., Cl. A* | | | 10,216 | | | | 858,348 | |
| Take-Two Interactive Software, Inc.* | | | 23,029 | | | | 4,168,249 | |
| | | | | | | | 5,026,597 | |
| THE ALGER FUNDS | ALGER MID CAP GROWTH FUND |
Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—96.5% (CONT.) | | SHARES | | | VALUE | |
| INTERACTIVE MEDIA & SERVICES—3.3% | | | | | | |
| Genius Sports Ltd.* | | | 290,236 | | | $ | 5,380,976 | |
| Match Group, Inc.* | | | 21,696 | | | | 3,271,323 | |
| Pinterest, Inc., Cl. A* | | | 54,649 | | | | 2,439,531 | |
| | | | | | | | 11,091,830 | |
| INTERNET & DIRECT MARKETING RETAIL—1.1% | | | | | | | | |
| Etsy, Inc.* | | | 15,135 | | | | 3,794,193 | |
| INTERNET SERVICES & INFRASTRUCTURE—2.6% | | | | | | | | |
| BigCommerce Holdings, Inc.* | | | 37,384 | | | | 1,727,514 | |
| MongoDB, Inc., Cl. A* | | | 6,206 | | | | 3,235,126 | |
| Okta, Inc., Cl. A* | | | 15,826 | | | | 3,911,871 | |
| | | | | | | | 8,874,511 | |
| LIFE SCIENCES TOOLS & SERVICES—5.0% | | | | | | | | |
| 10X Genomics, Inc., Cl. A* | | | 12,251 | | | | 1,975,719 | |
| Avantor, Inc.* | | | 79,993 | | | | 3,230,117 | |
| Bio-Techne Corp. | | | 12,265 | | | | 6,422,567 | |
| Repligen Corp.* | | | 18,435 | | | | 5,355,368 | |
| | | | | | | | 16,983,771 | |
| METAL & GLASS CONTAINERS—0.5% | | | | | | | | |
| Ball Corp. | | | 20,055 | | | | 1,834,631 | |
| MOVIES & ENTERTAINMENT—2.3% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 49,795 | | | | 5,036,764 | |
| Roku, Inc., Cl. A* | | | 9,175 | | | | 2,797,458 | |
| | | | | | | | 7,834,222 | |
| OIL & GAS EXPLORATION & PRODUCTION—0.9% | | | | | | | | |
| Diamondback Energy, Inc. | | | 29,737 | | | | 3,187,509 | |
| PHARMACEUTICALS—2.8% | | | | | | | | |
| Catalent, Inc.* | | | 52,268 | | | | 7,205,666 | |
| Green Thumb Industries, Inc.* | | | 117,838 | | | | 2,413,699 | |
| | | | | | | | 9,619,365 | |
| REGIONAL BANKS—2.9% | | | | | | | | |
| Signature Bank | | | 21,535 | | | | 6,413,554 | |
| SVB Financial Group* | | | 4,836 | | | | 3,469,346 | |
| | | | | | | | 9,882,900 | |
| RESEARCH & CONSULTING SERVICES—0.7% | | | | | | | | |
| CoStar Group, Inc.* | | | 28,551 | | | | 2,456,814 | |
| RESTAURANTS—3.2% | | | | | | | | |
| Chipotle Mexican Grill, Inc., Cl. A* | | | 2,348 | | | | 4,177,163 | |
| Shake Shack, Inc., Cl. A* | | | 47,567 | | | | 3,290,209 | |
| The Cheesecake Factory, Inc.* | | | 87,409 | | | | 3,552,302 | |
| | | | | | | | 11,019,674 | |
| SEMICONDUCTOR EQUIPMENT—4.9% | | | | | | | | |
| Brooks Automation, Inc. | | | 23,736 | | | | 2,764,057 | |
| KLA Corp. | | | 9,340 | | | | 3,481,579 | |
| Lam Research Corp. | | | 5,323 | | | | 2,999,883 | |
| SolarEdge Technologies, Inc.* | | | 21,022 | | | | 7,456,083 | |
| | | | | | | | 16,701,602 | |
| THE ALGER FUNDS | ALGER MID CAP GROWTH FUND |
Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—96.5% (CONT.) | | SHARES | | | VALUE | |
SEMICONDUCTORS—2.2% SiTime Corp.* | | | 7,344 | | | $ | 1,945,352 | |
| Universal Display Corp. | | | 10,806 | | | | 1,979,659 | |
| Xilinx, Inc. | | | 19,644 | | | | 3,535,920 | |
| | | | | | | | 7,460,931 | |
SYSTEMS SOFTWARE—2.5% Crowdstrike Holdings, Inc., Cl. A* | | | 24,456 | | | | 6,891,701 | |
| Palo Alto Networks, Inc.* | | | 3,295 | | | | 1,677,451 | |
| | | | | | | | 8,569,152 | |
TRUCKING—3.0% Old Dominion Freight Line, Inc. | | | 11,856 | | | | 4,047,046 | |
| Uber Technologies, Inc.* | | | 73,564 | | | | 3,223,574 | |
| XPO Logistics, Inc.* | | | 32,871 | | | | 2,820,332 | |
| | | | | | | | 10,090,952 | |
TOTAL COMMON STOCKS (Cost $258,950,376) | | | | | | | 327,276,779 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
BIOTECHNOLOGY—0.0% Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 219,610 | | | | – | |
| (Cost $988,245) | | | | | | | – | |
| RIGHTS—0.1% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.1% | | | | | | | | |
| Tolero CDR*,@,(a),(c) | | | 590,059 | | | | 442,544 | |
| (Cost $315,501) | | | | | | | 442,544 | |
| REAL ESTATE INVESTMENT TRUST—0.8% | | SHARES | | | VALUE | |
RETAIL—0.8% Simon Property Group, Inc. | | | 17,692 | | | | 2,593,293 | |
| (Cost $1,410,210) | | | | | | | 2,593,293 | |
| SPECIAL PURPOSE VEHICLE—0.8% | | SHARES | | | VALUE | |
DATA PROCESSING & OUTSOURCED SERVICES—0.8% Crosslink Ventures Capital LLC, Cl. A*,@,(a),(b) | | | 48 | | | | 1,921,344 | |
| Crosslink Ventures Capital LLC, Cl. B*,@,(a),(b) | | | 19 | | | | 801,363 | |
| | | | | | | | 2,722,707 | |
TOTAL SPECIAL PURPOSE VEHICLE (Cost $1,675,000) | | | | | | | 2,722,707 | |
Total Investments (Cost $263,339,332) | | | 98.2 | % | | $ | 333,035,323 | |
| Affiliated Securities (Cost $2,663,245) | | | | | | | 2,722,707 | |
| Unaffiliated Securities (Cost $260,676,087) | | | | | | | 330,312,616 | |
| Other Assets in Excess of Liabilities | | | 1.8 | % | | | 6,125,268 | |
| NET ASSETS | | | 100.0 | % | | $ | 339,160,591 | |
| (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. |
| THE ALGER FUNDS | ALGER MID CAP GROWTH FUND |
Schedule of Investments October 31, 2021 (Continued) |
@ 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.
Security | Acquisition Date(s) | | Acquisition Cost | | | % of net assets (Acquisition Date) | | | Market Value | | | % of net assets as of 10/31/2021 | |
| Crosslink Ventures Capital LLC, Cl. A | 10/2/20 | | $ | 1,200,000 | | | | 0.50 | % | | $ | 1,921,344 | | | | 0.57 | % |
| Crosslink Ventures Capital LLC, Cl. B | 12/16/20 | | | 475,000 | | | | 0.19 | % | | | 801,363 | | | | 0.23 | % |
| Prosetta Biosciences, Inc., Series D | 2/6/15 | | | 988,245 | | | | 0.50 | % | | | 0 | | | | 0.00 | % |
| Tolero CDR | 2/6/17 | | | 315,501 | | | | 0.19 | % | | | 442,544 | | | | 0.13 | % |
| Total | | | | | | | | | | | $ | 3,165,251 | | | | 0.93 | % |
See Notes to Financial Statements.
| THE ALGER FUNDS | ALGER MID CAP FOCUS FUND |
Schedule of Investments October 31, 2021 |
| COMMON STOCKS—99.1% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—1.5% | | | | | | |
| HEICO Corp., Cl. A | | | 110,730 | | | $ | 13,916,546 | |
| AIR FREIGHT & LOGISTICS—2.4% | | | | | | | | |
| GXO Logistics, Inc.* | | | 258,291 | | | | 22,936,241 | |
| APPAREL ACCESSORIES & LUXURY GOODS—1.7% | |
| Lululemon Athletica, Inc.* | | | 35,558 | | | | 16,570,384 | |
| APPLICATION SOFTWARE—20.9% | | | | | | | | |
| Alteryx, Inc., Cl. A* | | | 214,358 | | | | 15,688,862 | |
| Anaplan, Inc.* | | | 316,530 | | | | 20,640,921 | |
| Atlassian Corp., PLC, Cl. A* | | | 44,416 | | | | 20,348,302 | |
| Bentley Systems, Inc., Cl. B | | | 352,758 | | | | 20,865,636 | |
| Datadog, Inc., Cl. A* | | | 145,501 | | | | 24,305,942 | |
| Five9, Inc.* | | | 127,509 | | | | 20,147,697 | |
| HubSpot, Inc.* | | | 28,560 | | | | 23,140,169 | |
| Manhattan Associates, Inc.* | | | 98,244 | | | | 17,835,216 | |
| Paylocity Holding Corp.* | | | 58,660 | | | | 17,899,512 | |
| Splunk, Inc.* | | | 102,845 | | | | 16,950,913 | |
| | | | | | | | 197,823,170 | |
| BIOTECHNOLOGY—1.6% | | | | | | | | |
| Natera, Inc.* | | | 135,896 | | | | 15,569,605 | |
| CASINOS & GAMING—4.3% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 305,914 | | | | 14,252,533 | |
| Evolution AB | | | 51,941 | | | | 8,431,760 | |
| MGM Resorts International | | | 378,898 | | | | 17,868,830 | |
| | | | | | | | 40,553,123 | |
| CONSTRUCTION MACHINERY & HEAVY TRUCKS—1.5% | |
| Caterpillar, Inc. | | | 69,511 | | | | 14,180,939 | |
| CONSUMER FINANCE—2.8% | | | | | | | | |
| Upstart Holdings, Inc.* | | | 82,924 | | | | 26,704,845 | |
| DATA PROCESSING & OUTSOURCED SERVICES—4.9% | |
| Affirm Holdings, Inc., Cl. A* | | | 99,752 | | | | 16,209,700 | |
| Square, Inc., Cl. A* | | | 61,033 | | | | 15,532,899 | |
| TaskUS, Inc., Cl. A* | | | 249,667 | | | | 14,455,719 | |
| | | | | | | | 46,198,318 | |
| DISTRIBUTORS—1.7% | | | | | | | | |
| Pool Corp. | | | 30,951 | | | | 15,944,717 | |
| ELECTRICAL COMPONENTS & EQUIPMENT—2.8% | |
| Generac Holdings, Inc.* | | | 52,894 | | | | 26,370,833 | |
| FOOD DISTRIBUTORS—2.2% | | | | | | | | |
| US Foods Holding Corp.* | | | 599,306 | | | | 20,777,939 | |
| HEALTHCARE EQUIPMENT—6.6% | | | | | | | | |
| Danaher Corp. | | | 38,814 | | | | 12,101,041 | |
| Dexcom, Inc.* | | | 27,932 | | | | 17,407,502 | |
| Inmode Ltd.* | | | 343,944 | | | | 32,585,254 | |
| | | | | | | | 62,093,797 | |
| HEALTHCARE FACILITIES—1.9% | | | | | | | | |
| The Joint Corp.* | | | 201,430 | | | | 17,621,096 | |
| THE ALGER FUNDS | ALGER MID CAP FOCUS FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—99.1% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE TECHNOLOGY—4.9% | | | | | | |
| Renalytix PLC#,* | | | 412,626 | | | $ | 10,262,008 | |
| Veeva Systems, Inc., Cl. A* | | | 63,997 | | | | 20,287,689 | |
| Vocera Communications, Inc.* | | | 273,277 | | | | 15,462,013 | |
| | | | | | | | 46,011,710 | |
| INDUSTRIAL MACHINERY—5.1% | | | | | | | | |
| Colfax Corp.* | | | 236,216 | | | | 12,193,470 | |
| Helios Technologies, Inc. | | | 195,183 | | | | 17,771,412 | |
| The Middleby Corp.* | | | 100,261 | | | | 18,291,617 | |
| | | | | | | | 48,256,499 | |
| INTERACTIVE HOME ENTERTAINMENT—1.8% | | | | | | | | |
| Sea Ltd.#,* | | | 49,875 | | | | 17,135,554 | |
| INTERACTIVE MEDIA & SERVICES—3.0% | | | | | | | | |
| Genius Sports Ltd.* | | | 562,253 | | | | 10,424,171 | |
| ZoomInfo Technologies, Inc., Cl. A* | | | 271,311 | | | | 18,237,525 | |
| | | | | | | | 28,661,696 | |
| INTERNET SERVICES & INFRASTRUCTURE—4.9% | | | | | | | | |
| Cloudflare, Inc., Cl. A* | | | 149,089 | | | | 29,030,610 | |
| MongoDB, Inc., Cl. A* | | | 32,327 | | | | 16,851,742 | |
| | | | | | | | 45,882,352 | |
| LIFE SCIENCES TOOLS & SERVICES—2.1% | | | | | | | | |
| Avantor, Inc.* | | | 487,112 | | | | 19,669,583 | |
| OIL & GAS EQUIPMENT & SERVICES—1.8% | | | | | | | | |
| ChampionX Corp.* | | | 648,939 | | | | 17,021,670 | |
| REGIONAL BANKS—3.4% | | | | | | | | |
| Signature Bank | | | 108,581 | | | | 32,337,593 | |
| SEMICONDUCTOR EQUIPMENT—2.0% | | | | | | | | |
| Brooks Automation, Inc. | | | 164,872 | | | | 19,199,344 | |
| SEMICONDUCTORS—1.6% | | | | | | | | |
| Advanced Micro Devices, Inc.* | | | 126,001 | | | | 15,149,100 | |
| SYSTEMS SOFTWARE—3.0% | | | | | | | | |
| Crowdstrike Holdings, Inc., Cl. A* | | | 66,210 | | | | 18,657,978 | |
| Palo Alto Networks, Inc.* | | | 19,158 | | | | 9,753,146 | |
| | | | | | | | 28,411,124 | |
| TRADING COMPANIES & DISTRIBUTORS—6.6% | | | | | | | | |
| Herc Holdings, Inc. | | | 206,394 | | | | 37,571,964 | |
| SiteOne Landscape Supply, Inc.* | | | 105,839 | | | | 24,867,931 | |
| | | | | | | | 62,439,895 | |
| TRUCKING—2.1% | | | | | | | | |
| XPO Logistics, Inc.* | | | 226,547 | | | | 19,437,733 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $702,203,881) | | | | | | | 936,875,406 | |
| THE ALGER FUNDS | ALGER MID CAP FOCUS FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| | | | VALUE | |
Total Investments (Cost $702,203,881) | | | 99.1 | % | | $ | 936,875,406 | |
| Unaffiliated Securities (Cost $702,203,881) | | | | | | | 936,875,406 | |
| Other Assets in Excess of Liabilities | | | 0.9 | % | | | 8,265,737 | |
| NET ASSETS | | | 100.0 | % | | $ | 945,141,143 | |
| * | Non-income producing security. |
| # | American Depositary Receipts. |
See Notes to Financial Statements.
| THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND |
| Schedule of Investments October 31, 2021 |
| COMMON STOCKS—95.3% | | SHARES | | | VALUE | |
| AEROSPACE & DEFENSE—0.3% | | | | | | |
| Kratos Defense & Security Solutions, Inc.* | | | 247,020 | | | $ | 5,283,758 | |
| APPAREL ACCESSORIES & LUXURY GOODS—0.2% | | | | | | | | |
| Canada Goose Holdings, Inc.* | | | 117,582 | | | | 4,362,292 | |
| APPAREL RETAIL—1.8% | | | | | | | | |
| MYT Netherlands Parent BV#,* | | | 1,227,124 | | | | 32,396,074 | |
| APPLICATION SOFTWARE—17.4% | | | | | | | | |
| Altair Engineering, Inc., Cl. A* | | | 18,348 | | | | 1,427,291 | |
| BTRS Holdings, Inc.* | | | 592,489 | | | | 5,089,481 | |
| Cerence, Inc.* | | | 422,558 | | | | 44,423,523 | |
| Ebix, Inc. | | | 125,736 | | | | 4,125,398 | |
| Everbridge, Inc.* | | | 184,617 | | | | 29,411,334 | |
| LivePerson, Inc.* | | | 233,013 | | | | 12,002,500 | |
| Paylocity Holding Corp.* | | | 349,581 | | | | 106,671,146 | |
| SEMrush Holdings, Inc., Cl. A* | | | 244,157 | | | | 5,954,989 | |
| SPS Commerce, Inc.* | | | 453,922 | | | | 69,327,507 | |
| Vertex, Inc., Cl. A* | | | 1,493,744 | | | | 31,099,750 | |
| | | | | | | | 309,532,919 | |
| ASSET MANAGEMENT & CUSTODY BANKS—7.1% | | | | | | | | |
| Hamilton Lane, Inc., Cl. A | | | 591,376 | | | | 61,804,706 | |
| StepStone Group, Inc., Cl. A | | | 1,380,336 | | | | 64,848,185 | |
| | | | | | | | 126,652,891 | |
| BIOTECHNOLOGY—6.5% | | | | | | | | |
| ACADIA Pharmaceuticals, Inc.* | | | 468,082 | | | | 8,402,072 | |
| Natera, Inc.* | | | 830,973 | | | | 95,204,577 | |
| Puma Biotechnology, Inc.* | | | 292,785 | | | | 1,493,203 | |
| Ultragenyx Pharmaceutical, Inc.* | | | 115,944 | | | | 9,730,020 | |
| | | | | | | | 114,829,872 | |
| CONSTRUCTION & ENGINEERING—1.7% | | | | | | | | |
| Ameresco, Inc., Cl. A* | | | 375,594 | | | | 30,847,535 | |
| CONSUMER FINANCE—0.8% | | | | | | | | |
| LendingTree, Inc.* | | | 82,652 | | | | 13,339,206 | |
| EDUCATION SERVICES—4.5% | | | | | | | | |
| Chegg, Inc.* | | | 1,337,822 | | | | 79,520,140 | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.9% | | | | | | | | |
| Novanta, Inc.* | | | 194,028 | | | | 33,481,472 | |
| ENVIRONMENTAL & FACILITIES SERVICES—9.4% | | | | | | | | |
| Casella Waste Systems, Inc., Cl. A* | | | 1,012,691 | | | | 87,820,563 | |
| Montrose Environmental Group, Inc.* | | | 1,157,503 | | | | 79,346,831 | |
| | | | | | | | 167,167,394 | |
| GENERAL MERCHANDISE STORES—3.5% | | | | | | | | |
| Ollie's Bargain Outlet Holdings, Inc.* | | | 911,564 | | | | 61,676,420 | |
| HEALTHCARE DISTRIBUTORS—2.9% | | | | | | | | |
| Apria, Inc.* | | | 1,190,131 | | | | 44,546,603 | |
| PetIQ, Inc., Cl. A* | | | 303,453 | | | | 7,601,498 | |
| | | | | | | | 52,148,101 | |
| THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—95.3% (CONT.) | | SHARES | | | VALUE | |
| HEALTHCARE EQUIPMENT—3.7% | | | | | | |
| Eargo, Inc.* | | | 407,038 | | | $ | 3,581,934 | |
| Glaukos Corp.* | | | 243,082 | | | | 11,111,278 | |
| Nevro Corp.* | | | 452,193 | | | | 51,432,432 | |
| | | | | | | | 66,125,644 | |
| HEALTHCARE TECHNOLOGY—1.8% | | | | | | | | |
| Inspire Medical Systems, Inc.* | | | 70,069 | | | | 18,889,201 | |
| Tabula Rasa HealthCare, Inc.* | | | 451,973 | | | | 12,271,067 | |
| | | | | | | | 31,160,268 | |
| INSURANCE BROKERS—1.0% | | | | | | | | |
| Goosehead Insurance, Inc., Cl. A | | | 120,008 | | | | 17,317,154 | |
| IT CONSULTING & OTHER SERVICES—3.6% | | | | | | | | |
| Globant SA* | | | 197,924 | | | | 63,175,362 | |
| LEISURE FACILITIES—0.8% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 182,494 | | | | 14,517,398 | |
| LEISURE PRODUCTS—0.4% | | | | | | | | |
| Latham Group, Inc.* | | | 402,916 | | | | 6,204,906 | |
| LIFE SCIENCES TOOLS & SERVICES—0.5% | | | | | | | | |
| NeoGenomics, Inc.* | | | 204,692 | | | | 9,415,832 | |
| MANAGED HEALTHCARE—5.3% | | | | | | | | |
| Progyny, Inc.* | | | 1,533,358 | | | | 94,194,182 | |
| OIL & GAS EQUIPMENT & SERVICES—2.4% | | | | | | | | |
| Core Laboratories NV | | | 1,645,253 | | | | 42,793,031 | |
| PAPER PACKAGING—1.0% | | | | | | | | |
| Ranpak Holdings Corp., Cl. A* | | | 530,825 | | | | 18,292,229 | |
| PHARMACEUTICALS—0.1% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 190,901 | | | | 2,029,278 | |
| REAL ESTATE SERVICES—5.7% | | | | | | | | |
| FirstService Corp. | | | 505,940 | | | | 101,147,525 | |
| REGIONAL BANKS—2.5% | | | | | | | | |
| Seacoast Banking Corp. of Florida | | | 392,615 | | | | 14,302,964 | |
| Signature Bank | | | 103,173 | | | | 30,726,983 | |
| | | | | | | | 45,029,947 | |
| RESTAURANTS—0.6% | | | | | | | | |
| Wingstop, Inc. | | | 65,778 | | | | 11,344,732 | |
| SEMICONDUCTORS—0.9% | | | | | | | | |
| Impinj, Inc.* | | | 231,547 | | | | 16,143,457 | |
| SYSTEMS SOFTWARE—0.7% | | | | | | | | |
| Rapid7, Inc.* | | | 97,061 | | | | 12,496,604 | |
| THRIFTS & MORTGAGE FINANCE—1.3% | | | | | | | | |
| Axos Financial, Inc.* | | | 437,888 | | | | 23,208,064 | |
| TRADING COMPANIES & DISTRIBUTORS—5.0% | | | | | | | | |
| SiteOne Landscape Supply, Inc.* | | | 377,871 | | | | 88,784,570 | |
| TOTAL COMMON STOCKS | | | | | | | | |
| (Cost $1,271,856,841) | | | | | | | 1,694,618,257 | |
| THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | |
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 231,474 | | | $ | – | |
| (Cost $1,041,633) | | | | | | | – | |
| Total Investments | | | | | | | | |
| (Cost $1,272,898,474) | | | 95.3 | % | | $ | 1,694,618,257 | |
| Affiliated Securities (Cost $1,041,633) | | | | | | | – | |
| Unaffiliated Securities (Cost $1,271,856,841) | | | | | | | 1,694,618,257 | |
| Other Assets in Excess of Liabilities | | | 4.7 | % | | | 84,059,595 | |
| NET ASSETS | | | 100.0 | % | | $ | 1,778,677,852 | |
| # | American Depositary Receipts. |
| (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. |
Security | Acquisition Date(s) | | Acquisition Cost | | | % of net assets (Acquisition Date) | | | Market Value | | | % of net assets as of 10/31/2021 | |
| Prosetta Biosciences, Inc., Series D | 2/6/15 | | $ | 1,041,633 | | | | 0.10 | % | | $ | 0 | | | | 0.00 | % |
| Total | | | | | | | | | | | $ | 0 | | | | 0.00 | % |
See Notes to Financial Statements.
| THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND |
| Schedule of Investments October 31, 2021 |
| COMMON STOCKS—92.3% | | SHARES | | | VALUE | |
| ADVERTISING—0.9% | | | | | | |
| Magnite, Inc.* | | | 230,784 | | | $ | 6,238,092 | |
| AEROSPACE & DEFENSE—2.1% | | | | | | | | |
| HEICO Corp. | | | 68,590 | | | | 9,560,760 | |
| Hexcel Corp.* | | | 35,283 | | | | 2,001,958 | |
| Mercury Systems, Inc.* | | | 55,700 | | | | 2,870,778 | |
| | | | | | | | 14,433,496 | |
| AGRICULTURAL & FARM MACHINERY—0.4% | | | | | | | | |
| Hydrofarm Holdings Group, Inc.* | | | 89,343 | | | | 2,945,639 | |
| ALTERNATIVE CARRIERS—0.3% | | | | | | | | |
| Bandwidth, Inc., Cl. A* | | | 25,304 | | | | 2,157,925 | |
| APPAREL ACCESSORIES & LUXURY GOODS—0.8% | |
| Capri Holdings Ltd.* | | | 101,735 | | | | 5,416,371 | |
| APPLICATION SOFTWARE—23.2% | | | | | | | | |
| ACI Worldwide, Inc.* | | | 260,589 | | | | 7,994,870 | |
| Avalara, Inc.* | | | 77,434 | | | | 13,910,244 | |
| Bill.com Holdings, Inc.* | | | 52,645 | | | | 15,493,950 | |
| Blackbaud, Inc.* | | | 80,261 | | | | 5,699,334 | |
| Blackline, Inc.* | | | 56,471 | | | | 7,164,476 | |
| Digital Turbine, Inc.* | | | 54,797 | | | | 4,715,830 | |
| Everbridge, Inc.* | | | 69,238 | | | | 11,030,306 | |
| ForgeRock, Inc., Cl. A* | | | 30,846 | | | | 910,574 | |
| Guidewire Software, Inc.* | | | 37,384 | | | | 4,700,290 | |
| HubSpot, Inc.* | | | 25,800 | | | | 20,903,934 | |
| Manhattan Associates, Inc.* | | | 71,517 | | | | 12,983,196 | |
| Paycom Software, Inc.* | | | 21,558 | | | | 11,810,550 | |
| Paycor HCM, Inc.* | | | 9,906 | | | | 321,351 | |
| Q2 Holdings, Inc.* | | | 110,365 | | | | 8,659,238 | |
| SEMrush Holdings, Inc., Cl. A* | | | 95,594 | | | | 2,331,538 | |
| Smartsheet, Inc., Cl. A* | | | 82,589 | | | | 5,699,467 | |
| Sprout Social, Inc., Cl. A* | | | 74,483 | | | | 9,509,989 | |
| SPS Commerce, Inc.* | | | 73,066 | | | | 11,159,370 | |
| Vertex, Inc., Cl. A* | | | 263,710 | | | | 5,490,442 | |
| | | | | | | | 160,488,949 | |
| ASSET MANAGEMENT & CUSTODY BANKS—1.3% | | | | | | | | |
| Affiliated Managers Group, Inc. | | | 51,498 | | | | 8,645,484 | |
| BIOTECHNOLOGY—2.3% | | | | | | | | |
| CareDx, Inc.* | | | 262,342 | | | | 13,379,442 | |
| Karuna Therapeutics, Inc.* | | | 12,932 | | | | 1,815,394 | |
| Turning Point Therapeutics, Inc.* | | | 19,625 | | | | 816,008 | |
| | | | | | | | 16,010,844 | |
| CASINOS & GAMING—1.0% | | | | | | | | |
| DraftKings, Inc., Cl. A* | | | 148,048 | | | | 6,897,556 | |
| DIVERSIFIED SUPPORT SERVICES—0.4% | | | | | | | | |
| IAA, Inc.* | | | 43,162 | | | | 2,574,613 | |
| ELECTRICAL COMPONENTS & EQUIPMENT—0.9% | |
| Sunrun, Inc.* | | | 107,894 | | | | 6,223,326 | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.0% | |
| Cognex Corp. | | | 77,560 | | | | 6,793,480 | |
| THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—92.3% (CONT.) | | SHARES | | | VALUE | |
| FOOD DISTRIBUTORS—1.4% | | | | | | |
| The Chefs' Warehouse, Inc.* | | | 95,783 | | | $ | 3,339,953 | |
| US Foods Holding Corp.* | | | 173,126 | | | | 6,002,279 | |
| | | | | | | | 9,342,232 | |
| HEALTHCARE DISTRIBUTORS—0.2% | | | | | | | | |
| PetIQ, Inc., Cl. A* | | | 62,859 | | | | 1,574,618 | |
| HEALTHCARE EQUIPMENT—9.3% | | | | | | | | |
| CryoPort, Inc.* | | | 117,316 | | | | 9,565,947 | |
| Inmode Ltd.* | | | 193,402 | | | | 18,322,905 | |
| Inogen, Inc.* | | | 6,491 | | | | 257,368 | |
| Insulet Corp.* | | | 47,002 | | | | 14,571,560 | |
| Mesa Laboratories, Inc. | | | 28,104 | | | | 8,591,393 | |
| Paragon 28, Inc.* | | | 76,519 | | | | 1,609,960 | |
| Tandem Diabetes Care, Inc.* | | | 80,607 | | | | 10,989,152 | |
| | | | | | | | 63,908,285 | |
| HEALTHCARE FACILITIES—1.9% | | | | | | | | |
| The Joint Corp.* | | | 153,432 | | | | 13,422,231 | |
| HEALTHCARE SERVICES—1.4% | | | | | | | | |
| 1Life Healthcare, Inc.* | | | 72,937 | | | | 1,579,816 | |
| Biodesix, Inc.* | | | 63,254 | | | | 476,935 | |
| Guardant Health, Inc.* | | | 55,649 | | | | 6,499,247 | |
| Privia Health Group, Inc.* | | | 48,972 | | | | 1,258,580 | |
| | | | | | | | 9,814,578 | |
| HEALTHCARE SUPPLIES—4.3% | | | | | | | | |
| Neogen Corp.* | | | 449,145 | | | | 19,003,325 | |
| Quidel Corp.* | | | 80,633 | | | | 10,705,643 | |
| | | | | | | | 29,708,968 | |
| HEALTHCARE TECHNOLOGY—5.7% | | | | | | | | |
| Convey Holding Parent, Inc.* | | | 137,010 | | | | 1,013,874 | |
| Definitive Healthcare Corp., Cl. A* | | | 34,409 | | | | 1,381,177 | |
| Doximity, Inc., Cl. A* | | | 18,514 | | | | 1,286,353 | |
| Sophia Genetics SA* | | | 80,712 | | | | 1,145,303 | |
| Veeva Systems, Inc., Cl. A* | | | 50,876 | | | | 16,128,201 | |
| Vocera Communications, Inc.* | | | 329,673 | | | | 18,652,898 | |
| | | | | | | | 39,607,806 | |
| HOMEFURNISHING RETAIL—0.4% | | | | | | | | |
| Bed Bath & Beyond, Inc.* | | | 181,161 | | | | 2,543,501 | |
| HUMAN RESOURCE & EMPLOYMENT SERVICES—1.5% | |
| Legalzoom.com, Inc.* | | | 146,039 | | | | 4,094,934 | |
| Upwork, Inc.* | | | 135,234 | | | | 6,372,226 | |
| | | | | | | | 10,467,160 | |
| HYPERMARKETS & SUPER CENTERS—1.1% | | | | | | | | |
| BJ's Wholesale Club Holdings, Inc.* | | | 129,332 | | | | 7,558,162 | |
| INDUSTRIAL MACHINERY—0.4% | | | | | | | | |
| Gates Industrial Corp. PLC* | | | 163,155 | | | | 2,682,268 | |
| INTERACTIVE HOME ENTERTAINMENT—0.7% | | | | | | | | |
| Take-Two Interactive Software, Inc.* | | | 26,180 | | | | 4,738,580 | |
| THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—92.3% (CONT.) | | SHARES | | | VALUE | |
| INTERACTIVE MEDIA & SERVICES—2.8% | | | | | | |
| Bumble, Inc., Cl. A* | | | 43,761 | | | $ | 2,298,328 | |
| Eventbrite, Inc., Cl. A* | | | 117,706 | | | | 2,382,369 | |
| Genius Sports Ltd.* | | | 538,894 | | | | 9,991,095 | |
| TripAdvisor, Inc.* | | | 129,510 | | | | 4,269,945 | |
| VTEX, Cl. A* | | | 5,686 | | | | 90,805 | |
| | | | | | | | 19,032,542 | |
| INTERNET & DIRECT MARKETING RETAIL—1.2% | | | | | | | | |
| Farfetch Ltd., Cl. A* | | | 138,803 | | | | 5,442,466 | |
| The RealReal, Inc.* | | | 211,795 | | | | 2,759,689 | |
| | | | | | | | 8,202,155 | |
| INTERNET SERVICES & INFRASTRUCTURE—1.4% | | | | | | | | |
| BigCommerce Holdings, Inc.* | | | 213,952 | | | | 9,886,722 | |
| LEISURE FACILITIES—0.5% | | | | | | | | |
| Planet Fitness, Inc., Cl. A* | | | 45,651 | | | | 3,631,537 | |
| LIFE SCIENCES TOOLS & SERVICES—9.8% | | | | | | | | |
| 10X Genomics, Inc., Cl. A* | | | 32,500 | | | | 5,241,275 | |
| Akoya Biosciences, Inc.* | | | 141,514 | | | | 1,875,061 | |
| Alpha Teknova, Inc.* | | | 32,364 | | | | 744,048 | |
| Bio-Techne Corp. | | | 38,184 | | | | 19,995,052 | |
| Codex DNA, Inc.* | | | 80,605 | | | | 744,790 | |
| Cytek Biosciences, Inc.* | | | 56,527 | | | | 1,289,381 | |
| ICON PLC* | | | 9,708 | | | | 2,783,963 | |
| Maravai LifeSciences Holdings, Inc., Cl. A* | | | 39,236 | | | | 1,659,290 | |
| MaxCyte, Inc.* | | | 48,750 | | | | 547,950 | |
| NanoString Technologies, Inc.* | | | 235,342 | | | | 11,367,019 | |
| NeoGenomics, Inc.* | | | 177,510 | | | | 8,165,460 | |
| Personalis, Inc.* | | | 75,783 | | | | 1,486,862 | |
| Rapid Micro Biosystems, Inc., Cl. A* | | | 65,516 | | | | 1,335,871 | |
| Repligen Corp.* | | | 36,588 | | | | 10,628,814 | |
| | | | | | | | 67,864,836 | |
| MANAGED HEALTHCARE—0.9% | | | | | | | | |
| HealthEquity, Inc.* | | | 97,624 | | | | 6,460,756 | |
| MOVIES & ENTERTAINMENT—2.0% | | | | | | | | |
| Live Nation Entertainment, Inc.* | | | 135,810 | | | | 13,737,182 | |
| OIL & GAS EXPLORATION & PRODUCTION—1.9% | | | | | | | | |
| Magnolia Oil & Gas Corp., Cl. A | | | 618,885 | | | | 12,922,319 | |
| PHARMACEUTICALS—0.1% | | | | | | | | |
| Aerie Pharmaceuticals, Inc.* | | | 77,564 | | | | 824,505 | |
| PRECIOUS METALS & MINERALS—0.0% | | | | | | | | |
| Xometry, Inc., Cl. A* | | | 3,241 | | | | 175,014 | |
| REGIONAL BANKS—0.7% | | | | | | | | |
| Webster Financial Corp. | | | 80,814 | | | | 4,522,351 | |
| RESTAURANTS—3.3% | | | | | | | | |
| Shake Shack, Inc., Cl. A* | | | 135,041 | | | | 9,340,786 | |
| The Cheesecake Factory, Inc.* | | | 135,856 | | | | 5,521,188 | |
| Wingstop, Inc. | | | 44,443 | | | | 7,665,084 | |
| | | | | | | | 22,527,058 | |
| THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—92.3% (CONT.) | | SHARES | | | VALUE | |
SEMICONDUCTOR EQUIPMENT—0.9% SolarEdge Technologies, Inc.* | | | 17,697 | | | $ | 6,276,772 | |
SEMICONDUCTORS—0.6% Universal Display Corp. | | | 22,795 | | | | 4,176,044 | |
SPECIALTY CHEMICALS—2.3% Balchem Corp. | | | 105,570 | | | | 16,161,711 | |
SPECIALTY STORES—1.0% Brilliant Earth Group, Inc., Cl. A* | | | 23,896 | | | | 289,859 | |
| Five Below, Inc.* | | | 34,664 | | | | 6,839,207 | |
| | | | | | | | 7,129,066 | |
TOTAL COMMON STOCKS (Cost $438,676,663) | | | | | | | 637,724,734 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
BIOTECHNOLOGY—0.0% Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 50,688 | | | | – | |
| (Cost $228,096) | | | | | | | – | |
| RIGHTS—0.0% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—0.0% | | | | | | | | |
| Tolero CDR*,@,(a),(c) | | | 174,782 | | | | 131,087 | |
| (Cost $94,483) | | | | | | | 131,087 | |
| REAL ESTATE INVESTMENT TRUST—0.7% | | SHARES | | | VALUE | |
RETAIL—0.7% Tanger Factory Outlet Centers, Inc. | | | 290,364 | | | | 4,878,115 | |
| (Cost $4,789,568) | | | | | | | 4,878,115 | |
| SPECIAL PURPOSE VEHICLE—0.5% | | SHARES | | | VALUE | |
DATA PROCESSING & OUTSOURCED SERVICES—0.5% Crosslink Ventures Capital LLC, Cl. A*,@,(a),(b) | | | 72 | | | | 2,882,016 | |
| Crosslink Ventures Capital LLC, Cl. B*,@,(a),(b) | | | 19 | | | | 801,363 | |
| | | | | | | | 3,683,379 | |
TOTAL SPECIAL PURPOSE VEHICLE (Cost $2,275,000) | | | | | | | 3,683,379 | |
Total Investments (Cost $446,063,810) | | | 93.5 | % | | $ | 646,417,315 | |
| Affiliated Securities (Cost $2,503,096) | | | | | | | 3,683,379 | |
| Unaffiliated Securities (Cost $443,560,714) | | | | | | | 642,733,936 | |
| Other Assets in Excess of Liabilities | | | 6.5 | % | | | 45,006,988 | |
| NET ASSETS | | | 100.0 | % | | $ | 691,424,303 | |
| (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. |
| THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| @ | 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. |
Security | Acquisition Date(s) | | Acquisition Cost | | | % of net assets (Acquisition Date) | | | Market Value | |
| % of net assets as of 10/31/2021 | |
| Crosslink Ventures Capital LLC, Cl. A | 10/2/20 | | $ | 1,800,000 | | | | 0.49 | % | | $ | 2,882,016 | | | | 0.42 | % |
| Crosslink Ventures Capital LLC, Cl. B | 12/16/20 | | | 475,000 | | | | 0.10 | % | | | 801,363 | | | | 0.11 | % |
| Prosetta Biosciences, Inc., Series D | 2/6/15 | | | 228,096 | | | | 0.10 | % | | | 0 | | | | 0.00 | % |
| Tolero CDR | 2/6/17 | | | 94,483 | | | | 0.08 | % | | | 131,087 | | | | 0.02 | % |
| Total | | | | | | | | | | | $ | 3,814,466 | | | | 0.55 | % |
See Notes to Financial Statements.
| THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND |
| Schedule of Investments October 31, 2021 |
| COMMON STOCKS—98.9% | | SHARES | | | VALUE | |
| ADVERTISING—0.6% | | | | | | |
| Magnite, Inc.* | | | 1,890,480 | | | $ | 51,099,674 | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.0% | |
| Capri Holdings Ltd.* | | | 2,961,028 | | | | 157,645,131 | |
| APPLICATION SOFTWARE—20.8% | | | | | | | | |
| Avalara, Inc.* | | | 1,237,844 | | | | 222,366,296 | |
| Blackline, Inc.* | | | 1,497,380 | | | | 189,972,601 | |
| Everbridge, Inc.* | | | 1,103,830 | | | | 175,851,157 | |
| ForgeRock, Inc., Cl. A* | | | 1,008,217 | | | | 29,762,566 | |
| Guidewire Software, Inc.* | | | 1,268,316 | | | | 159,465,371 | |
| Paycom Software, Inc.* | | | 444,580 | | | | 243,563,153 | |
| PROS Holdings, Inc.* | | | 3,528,151 | | | | 105,844,530 | |
| Q2 Holdings, Inc.* | | | 1,219,341 | | | | 95,669,495 | |
| Smartsheet, Inc., Cl. A* | | | 2,725,923 | | | | 188,115,946 | |
| Sprout Social, Inc., Cl. A* | | | 1,351,712 | | | | 172,586,588 | |
| WM Technology, Inc.* | | | 3,913,234 | | | | 47,897,984 | |
| | | | | | | | 1,631,095,687 | |
| BIOTECHNOLOGY—6.7% | | | | | | | | |
| CareDx, Inc.* | | | 2,433,693 | | | | 124,118,343 | |
| Natera, Inc.* | | | 2,348,417 | | | | 269,058,136 | |
| Vericel Corp.* | | | 2,841,805 | | | | 130,779,866 | |
| | | | | | | | 523,956,345 | |
| BUILDING PRODUCTS—2.4% | | | | | | | | |
| Trex Co., Inc.* | | | 1,744,432 | | | | 185,607,565 | |
| DATA PROCESSING & OUTSOURCED SERVICES—1.0% | |
| TaskUS, Inc., Cl. A* | | | 1,425,496 | | | | 82,536,218 | |
| DIVERSIFIED SUPPORT SERVICES—1.1% | | | | | | | | |
| IAA, Inc.* | | | 1,410,359 | | | | 84,127,914 | |
| EDUCATION SERVICES—1.4% | | | | | | | | |
| Chegg, Inc.* | | | 1,796,117 | | | | 106,761,195 | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—2.7% | |
| Cognex Corp. | | | 2,395,292 | | | | 209,803,626 | |
| HEALTHCARE EQUIPMENT—16.6% | | | | | | | | |
| AtriCure, Inc.* | | | 2,839,044 | | | | 213,098,643 | |
| CryoPort, Inc.* | | | 4,395,628 | | | | 358,419,507 | |
| Heska Corp.* | | | 987,040 | | | | 220,633,051 | |
| Inmode Ltd.* | | | 1,539,512 | | | | 145,853,367 | |
| Insulet Corp.* | | | 470,598 | | | | 145,894,792 | |
| Shockwave Medical, Inc.* | | | 1,004,112 | | | | 214,578,734 | |
| | | | | | | | 1,298,478,094 | |
| HEALTHCARE FACILITIES—1.8% | | | | | | | | |
| The Joint Corp.* | | | 1,644,019 | | | | 143,818,782 | |
| HEALTHCARE SERVICES—0.6% | | | | | | | | |
| Guardant Health, Inc.* | | | 390,343 | | | | 45,588,159 | |
| HEALTHCARE SUPPLIES—3.9% | | | | | | | | |
| BioLife Solutions, Inc.* | | | 327,204 | | | | 17,390,893 | |
| Neogen Corp.* | | | 2,831,940 | | | | 119,819,381 | |
| Quidel Corp.* | | | 1,262,221 | | | | 167,585,082 | |
| | | | | | | | 304,795,356 | |
| THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—98.9% (CONT.) | | SHARES | | | VALUE | |
HEALTHCARE TECHNOLOGY—6.4% Definitive Healthcare Corp., Cl. A* | | | 996,775 | | | $ | 40,010,549 | |
| Evolent Health, Inc., Cl. A* | | | 2,146,431 | | | | 62,826,035 | |
| Inspire Medical Systems, Inc.* | | | 787,243 | | | | 212,224,968 | |
| Veeva Systems, Inc., Cl. A* | | | 588,631 | | | | 186,601,913 | |
| | | | | | | | 501,663,465 | |
INDUSTRIAL MACHINERY—3.4% RBC Bearings, Inc.* | | | 1,143,728 | | | | 267,552,291 | |
INTERACTIVE MEDIA & SERVICES—1.7% Genius Sports Ltd.* | | | 7,101,873 | | | | 131,668,726 | |
INTERNET SERVICES & INFRASTRUCTURE—0.8% BigCommerce Holdings, Inc.* | | | 1,371,073 | | | | 63,357,283 | |
LIFE SCIENCES TOOLS & SERVICES—8.6% Bio-Techne Corp. | | | 505,130 | | | | 264,511,324 | |
| NanoString Technologies, Inc.* | | | 2,308,526 | | | | 111,501,806 | |
| Repligen Corp.* | | | 1,020,266 | | | | 296,387,273 | |
| | | | | | | | 672,400,403 | |
MANAGED HEALTHCARE—2.0% HealthEquity, Inc.* | | | 2,377,364 | | | | 157,333,950 | |
OIL & GAS EQUIPMENT & SERVICES—2.0% ChampionX Corp.* | | | 6,083,694 | | | | 159,575,294 | |
PACKAGED FOODS & MEATS—1.3% Freshpet, Inc.* | | | 669,806 | | | | 104,429,454 | |
RESTAURANTS—3.7% Shake Shack, Inc., Cl. A* | | | 1,431,005 | | | | 98,982,616 | |
| Wingstop, Inc. | | | 1,114,199 | | | | 192,165,901 | |
| | | | | | | | 291,148,517 | |
SEMICONDUCTORS—3.1% Monolithic Power Systems, Inc. | | | 455,607 | | | | 239,403,254 | |
SYSTEMS SOFTWARE—0.9% Varonis Systems, Inc., Cl. B* | | | 1,153,287 | | | | 74,663,800 | |
TRADING COMPANIES & DISTRIBUTORS—3.4% Herc Holdings, Inc. | | | 1,461,907 | | | | 266,125,550 | |
TOTAL COMMON STOCKS (Cost $5,151,003,525) | | | | | | | 7,754,635,733 | |
| RIGHTS—0.0% | | SHARES | | | VALUE | |
BIOTECHNOLOGY—0.0% Tolero CDR*,@,(a),(b) | | | 11,905 | | | | 8,929 | |
| (Cost $6,436) | | | | | | | 8,929 | |
Total Investments (Cost $5,151,009,961) | | | 98.9 | % | | $ | 7,754,644,662 | |
| Unaffiliated Securities (Cost $5,151,009,961) | | | | | | | 7,754,644,662 | |
| Other Assets in Excess of Liabilities | | | 1.1 | % | | | 86,234,640 | |
| NET ASSETS | | | 100.0 | % | | $ | 7,840,879,302 | |
| (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. |
| * | Non-income producing security. |
| THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| @ | 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. |
Security | Acquisition Date(s) | | Acquisition Cost | | | % of net assets (Acquisition Date) | | | Market Value | | | % of net assets
as of 10/31/2021 | |
| Tolero CDR | 2/6/17 | | $ | 6,436 | | | | 0.00 | % | | $ | 8,929 | | | | 0.00 | % |
| Total | | | | | | | | | | | $ | 8,929 | | | | 0.00 | % |
See Notes to Financial Statements.
| THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND |
| Schedule of Investments October 31, 2021 |
| COMMON STOCKS—97.3% | | SHARES | | | VALUE | |
| ARGENTINA—1.9% | | | | | | |
| INTERNET & DIRECT MARKETING RETAIL—1.9% | | | | | | |
| MercadoLibre, Inc.* | | | 2,700 | | | $ | 3,998,754 | |
| (Cost $4,438,185) | | | | | | | | |
| AUSTRALIA—5.5% | | | | | | | | |
| APPLICATION SOFTWARE—2.5% | | | | | | | | |
| Xero Ltd.* | | | 46,600 | | | | 5,313,461 | |
| HEALTHCARE SUPPLIES—1.5% | | | | | | | | |
| Nanosonics Ltd.* | | | 694,062 | | | | 3,119,194 | |
| HEALTHCARE TECHNOLOGY—1.5% | | | | | | | | |
| Pro Medicus Ltd. | | | 81,000 | | | | 3,271,059 | |
| TOTAL AUSTRALIA | | | | | | | | |
| (Cost $7,093,135) | | | | | | | 11,703,714 | |
| BELGIUM—1.1% | | | | | | | | |
| APPLICATION SOFTWARE—1.1% | | | | | | | | |
| Unifiedpost Group SA* | | | 112,287 | | | | 2,334,876 | |
| (Cost $2,879,104) | | | | | | | | |
| CHINA—6.6% | | | | | | | | |
| AUTOMOBILE MANUFACTURERS—3.0% | | | | | | | | |
| BYD Co., Ltd., Cl. H | | | 169,000 | | | | 6,463,841 | |
| INTERNET & DIRECT MARKETING RETAIL—3.6% | | | | | | | | |
| JD Health International, Inc.* | | | 522,000 | | | | 4,582,351 | |
| Meituan, Cl. B* | | | 89,000 | | | | 3,028,549 | |
| | | | | | | | 7,610,900 | |
| TOTAL CHINA | | | | | | | | |
| (Cost $12,277,788) | | | | | | | 14,074,741 | |
| FRANCE—10.1% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.7% | | | | | | | | |
| LVMH Moet Hennessy Louis Vuitton SE | | | 7,250 | | | | 5,684,636 | |
| ELECTRICAL COMPONENTS & EQUIPMENT—2.2% | | | | | | | | |
| Schneider Electric SE | | | 27,500 | | | | 4,741,295 | |
| LIFE SCIENCES TOOLS & SERVICES—2.7% | | | | | | | | |
| Eurofins Scientific SE | | | 49,300 | | | | 5,817,888 | |
| RESEARCH & CONSULTING SERVICES—2.5% | | | | | | | | |
| Teleperformance | | | 12,557 | | | | 5,244,983 | |
| TOTAL FRANCE | | | | | | | | |
| (Cost $11,422,858) | | | | | | | 21,488,802 | |
| GERMANY—5.3% | | | | | | | | |
| FOOTWEAR—2.3% | | | | | | | | |
| Puma SE | | | 40,600 | | | | 5,036,208 | |
| OIL & GAS REFINING & MARKETING—3.0% | | | | | | | | |
| VERBIO Vereinigte BioEnergie AG | | | 80,308 | | | | 6,385,094 | |
| TOTAL GERMANY | | | | | | | | |
| (Cost $6,284,031) | | | | | | | 11,421,302 | |
| THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—97.3% (CONT.) | | SHARES | | | VALUE | |
| HONG KONG—4.9% | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—2.6% | | | | | | |
| Samsonite International SA* | | | 2,640,157 | | | $ | 5,679,004 | |
| INDUSTRIAL MACHINERY—2.3% | | | | | | | | |
| Techtronic Industries Co., Ltd. | | | 237,000 | | | | 4,869,226 | |
| TOTAL HONG KONG | | | | | | | | |
| (Cost $4,616,687) | | | | | | | 10,548,230 | |
| INDIA—2.2% | | | | | | | | |
| DIVERSIFIED BANKS—2.2% | | | | | | | | |
| HDFC Bank Ltd.# | | | 66,800 | | | | 4,803,588 | |
| (Cost $2,835,776) | | | | | | | | |
| IRELAND—2.1% | | | | | | | | |
| PACKAGED FOODS & MEATS—2.1% | | | | | | | | |
| Kerry Group PLC, Cl. A | | | 33,741 | | | | 4,528,238 | |
| (Cost $3,756,243) | | | | | | | | |
| ITALY—9.4% | | | | | | | | |
| APPAREL ACCESSORIES & LUXURY GOODS—5.0% | | | | | | | | |
| Moncler SpA | | | 94,386 | | | | 6,792,138 | |
| PRADA SpA | | | 630,000 | | | | 3,970,927 | |
| | | | | | | | 10,763,065 | |
| AUTOMOBILE MANUFACTURERS—2.9% | | | | | | | | |
| Ferrari NV | | | 25,662 | | | | 6,086,257 | |
| DATA PROCESSING & OUTSOURCED SERVICES—1.5% | |
| Nexi SpA* | | | 188,000 | | | | 3,268,645 | |
| TOTAL ITALY | | | | | | | | |
| (Cost $16,369,057) | | | | | | | 20,117,967 | |
| JAPAN—10.0% | | | | | | | | |
| ELECTRONIC COMPONENTS—1.5% | | | | | | | | |
| Murata Manufacturing Co., Ltd. | | | 42,200 | | | | 3,130,062 | |
| HEALTHCARE SUPPLIES—2.2% | | | | | | | | |
| Hoya Corp. | | | 31,600 | | | | 4,651,382 | |
| INDUSTRIAL MACHINERY—5.4% | | | | | | | | |
| Ebara Corp. | | | 111,000 | | | | 6,056,393 | |
| FANUC Corp. | | | 28,100 | | | | 5,552,668 | |
| | | | | | | | 11,609,061 | |
| SEMICONDUCTOR EQUIPMENT—0.9% | | | | | | | | |
| Lasertec Corp. | | | 8,899 | | | | 1,930,164 | |
| TOTAL JAPAN | | | | | | | | |
| (Cost $17,774,400) | | | | | | | 21,320,669 | |
| NETHERLANDS—11.6% | | | | | | | | |
| DATA PROCESSING & OUTSOURCED SERVICES—2.6% | |
| Adyen NV* | | | 1,875 | | | | 5,657,212 | |
| HEAVY ELECTRICAL EQUIPMENT—2.6% | | | | | | | | |
| Alfen Beheer BV* | | | 48,600 | | | | 5,474,460 | |
| INDUSTRIAL MACHINERY—1.4% | | | | | | | | |
| Aalberts NV | | | 56,000 | | | | 3,099,391 | |
| THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—97.3% (CONT.) | | SHARES | | | VALUE | |
| NETHERLANDS—11.6% (CONT.) | | | | | | |
| OIL & GAS EQUIPMENT & SERVICES—1.0% | | | | | | |
| Core Laboratories NV | | | 81,522 | | | $ | 2,120,387 | |
| SEMICONDUCTOR EQUIPMENT—4.0% | | | | | | | | |
| ASML Holding NV | | | 10,500 | | | | 8,535,084 | |
| TOTAL NETHERLANDS | | | | | | | | |
| (Cost $11,108,118) | | | | | | | 24,886,534 | |
| NORWAY—4.2% | | | | | | | | |
| ENVIRONMENTAL & FACILITIES SERVICES—2.6% | | | | | | | | |
| Aker Carbon Capture ASA* | | | 1,560,510 | | | | 5,654,354 | |
| INDUSTRIAL MACHINERY—1.6% | | | | | | | | |
| AutoStore Holdings Ltd.*,(a) | | | 849,036 | | | | 3,345,957 | |
| TOTAL NORWAY | | | | | | | | |
| (Cost $7,029,382) | | | | | | | 9,000,311 | |
| SINGAPORE—2.6% | | | | | | | | |
| INTERACTIVE HOME ENTERTAINMENT—2.6% | | | | | | | | |
| Sea Ltd.#,* | | | 15,900 | | | | 5,462,763 | |
| (Cost $4,598,939) | | | | | | | | |
| SOUTH KOREA—2.6% | | | | | | | | |
| SPECIALTY CHEMICALS—2.6% | | | | | | | | |
| Chunbo Co., Ltd. | | | 22,800 | | | | 5,515,404 | |
| (Cost $3,840,265) | | | | | | | | |
| SPAIN—1.4% | | | | | | | | |
| BIOTECHNOLOGY—1.4% | | | | | | | | |
| Grifols SA# | | | 221,941 | | | | 2,909,647 | |
| (Cost $4,393,108) | | | | | | | | |
| SWEDEN—2.7% | | | | | | | | |
| ASSET MANAGEMENT & CUSTODY BANKS—2.7% | | | | | | | | |
| EQT AB | | | 110,298 | | | | 5,825,620 | |
| (Cost $1,135,925) | | | | | | | | |
| SWITZERLAND—7.0% | | | | | | | | |
| ASSET MANAGEMENT & CUSTODY BANKS—2.1% | | | | | | | | |
| Partners Group Holding AG | | | 2,584 | | | | 4,513,639 | |
| LIFE SCIENCES TOOLS & SERVICES—2.2% | | | | | | | | |
| PolyPeptide Group AG* | | | 36,906 | | | | 4,722,773 | |
| SPECIALTY CHEMICALS—2.7% | | | | | | | | |
| Sika AG | | | 16,700 | | | | 5,657,003 | |
| TOTAL SWITZERLAND | | | | | | | | |
| (Cost $7,389,882) | | | | | | | 14,893,415 | |
| TAIWAN—1.9% | | | | | | | | |
| SEMICONDUCTORS—1.9% | | | | | | | | |
| Taiwan Semiconductor Manufacturing Co., Ltd.# | | | 36,700 | | | | 4,172,790 | |
| (Cost $3,109,614) | | | | | | | | |
| THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—97.3% (CONT.) | | SHARES | | | VALUE | |
UNITED KINGDOM—2.1% FINANCIAL EXCHANGES & DATA—2.1% London Stock Exchange Group PLC | | | 45,200 | | | | 4,399,775 | |
| (Cost $3,713,750) | | | | | | | | |
UNITED STATES—2.1% OIL & GAS EQUIPMENT & SERVICES—2.1% Schlumberger NV | | | 136,500 | | | | 4,403,490 | |
| (Cost $4,331,321) | | | | | | | | |
TOTAL COMMON STOCKS (Cost $140,397,568) | | | | | | | 207,810,630 | |
Total Investments (Cost $140,397,568) | | | 97.3 | % | | $ | 207,810,630 | |
| Unaffiliated Securities (Cost $140,397,568) | | | | | | | 207,810,630 | |
| Other Assets in Excess of Liabilities | | | 2.7 | % | | | 5,781,867 | |
| NET ASSETS | | | 100.0 | % | | $ | 213,592,497 | |
| # | American Depositary Receipts. |
| (a) | Pursuant to Securities and Exchange Commission Rule 144A, this security may be sold prior to its maturity only to qualified institutional buyers. This security represents 1.6% 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, 2021 |
| COMMON STOCKS—99.6% | | SHARES | | | VALUE | |
| BIOTECHNOLOGY—35.8% | | | | | | |
| Abcam PLC* | | | 253,662 | | | $ | 5,741,637 | |
| Abivax SA* | | | 53,578 | | | | 1,790,145 | |
| Aerovate Therapeutics, Inc.* | | | 40,461 | | | | 644,544 | |
| ALX Oncology Holdings, Inc.* | | | 100,558 | | | | 5,635,270 | |
| Arrowhead Pharmaceuticals, Inc.* | | | 63,772 | | | | 4,069,929 | |
| Avidity Biosciences, Inc.* | | | 94,805 | | | | 2,133,112 | |
| BELLUS Health, Inc.* | | | 758,657 | | | | 5,621,648 | |
| BioMarin Pharmaceutical, Inc.* | | | 87,937 | | | | 6,967,249 | |
| Cabaletta Bio, Inc.* | | | 214,721 | | | | 2,935,236 | |
| Celldex Therapeutics, Inc.* | | | 327,829 | | | | 13,945,846 | |
| ChemoCentryx, Inc.* | | | 196,492 | | | | 6,839,887 | |
| Coherus Biosciences, Inc.* | | | 472,954 | | | | 7,912,520 | |
| Deciphera Pharmaceuticals, Inc.* | | | 103,148 | | | | 3,444,112 | |
| Intellia Therapeutics, Inc.* | | | 34,179 | | | | 4,545,123 | |
| IVERIC bio, Inc.* | | | 554,968 | | | | 9,822,934 | |
| Kymera Therapeutics, Inc.* | | | 93,049 | | | | 5,478,725 | |
| Larimar Therapeutics, Inc.* | | | 175,870 | | | | 2,101,647 | |
| Moderna, Inc.* | | | 8,586 | | | | 2,963,973 | |
| Morphic Holding, Inc.* | | | 142,854 | | | | 8,214,105 | |
| Natera, Inc.* | | | 66,837 | | | | 7,657,515 | |
| Olema Pharmaceuticals, Inc.* | | | 92,785 | | | | 2,505,195 | |
| PDS Biotechnology Corp.* | | | 119,082 | | | | 1,433,747 | |
| PMV Pharmaceuticals, Inc.* | | | 125,211 | | | | 2,957,484 | |
| Relay Therapeutics, Inc.* | | | 177,771 | | | | 5,910,886 | |
| Xenon Pharmaceuticals, Inc.* | | | 138,263 | | | | 4,306,892 | |
| | | | | | | | 125,579,361 | |
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.5% | | | | | | | | |
| 908 Devices, Inc.* | | | 157,171 | | | | 5,170,926 | |
| HEALTHCARE EQUIPMENT—28.2% | | | | | | | | |
| ABIOMED, Inc.* | | | 22,193 | | | | 7,368,964 | |
| ClearPoint Neuro, Inc.* | | | 92,330 | | | | 1,544,681 | |
| Danaher Corp. | | | 35,714 | | | | 11,134,554 | |
| Dexcom, Inc.* | | | 22,042 | | | | 13,736,795 | |
| Edwards Lifesciences Corp.* | | | 61,150 | | | | 7,326,993 | |
| IDEXX Laboratories, Inc.* | | | 15,881 | | | | 10,578,969 | |
| Inmode Ltd.* | | | 184,916 | | | | 17,518,942 | |
| Insulet Corp.* | | | 28,495 | | | | 8,834,020 | |
| Intuitive Surgical, Inc.* | | | 30,873 | | | | 11,149,166 | |
| Masimo Corp.* | | | 16,572 | | | | 4,698,825 | |
| Ortho Clinical Diagnostics Holdings PLC* | | | 250,000 | | | | 4,942,500 | |
| | | | | | | | 98,834,409 | |
| HEALTHCARE FACILITIES—3.3% | | | | | | | | |
| Tenet Healthcare Corp.* | | | 162,803 | | | | 11,666,463 | |
| HEALTHCARE SERVICES—2.7% | | | | | | | | |
| Castle Biosciences, Inc.* | | | 101,957 | | | | 6,357,019 | |
| Guardant Health, Inc.* | | | 27,241 | | | | 3,181,476 | |
| | | | | | | | 9,538,495 | |
| THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| COMMON STOCKS—99.6% (CONT.) | | SHARES | | | VALUE | |
HEALTHCARE SUPPLIES—2.3% STAAR Surgical Co.* | | | 33,884 | | | $ | 4,013,898 | |
| West Pharmaceutical Services, Inc. | | | 9,161 | | | | 3,938,131 | |
| | | | | | | | 7,952,029 | |
HEALTHCARE TECHNOLOGY—3.1% Inspire Medical Systems, Inc.* | | | 40,160 | | | | 10,826,333 | |
INSURANCE BROKERS—1.4% eHealth, Inc.* | | | 111,585 | | | | 4,948,795 | |
LIFE SCIENCES TOOLS & SERVICES—10.1% Avantor, Inc.* | | | 187,091 | | | | 7,554,735 | |
| Berkeley Lights, Inc.* | | | 144,683 | | | | 3,363,880 | |
| Bio-Techne Corp. | | | 22,276 | | | | 11,664,827 | |
| Olink Holding AB#,* | | | 120,013 | | | | 3,859,618 | |
| Repligen Corp.* | | | 31,386 | | | | 9,117,633 | |
| | | | | | | | 35,560,693 | |
MANAGED HEALTHCARE—1.3% Alignment Healthcare, Inc.* | | | 219,065 | | | | 4,350,631 | |
PERSONAL PRODUCTS—1.7% The Beauty Health Co.* | | | 220,766 | | | | 6,064,442 | |
PHARMACEUTICALS—3.4% Catalent, Inc.* | | | 77,269 | | | | 10,652,304 | |
| EyePoint Pharmaceuticals, Inc.* | | | 120,913 | | | | 1,386,872 | |
| | | | | | | | 12,039,176 | |
SEMICONDUCTOR EQUIPMENT—4.8% Brooks Automation, Inc. | | | 145,047 | | | | 16,890,723 | |
TOTAL COMMON STOCKS (Cost $277,733,507) | | | | | | | 349,422,476 | |
| PREFERRED STOCKS—0.0% | | SHARES | | | VALUE | |
BIOTECHNOLOGY—0.0% Prosetta Biosciences, Inc., Series D*,@,(a),(b) | | | 897,366 | | | | – | |
| (Cost $4,038,147) | | | | | | | – | |
| RIGHTS—0.4% | | SHARES | | | VALUE | |
BIOTECHNOLOGY—0.4% Tolero CDR*,@,(a),(c) | | | 1,956,996 | | | | 1,467,747 | |
| (Cost $1,044,370) | | | | | | | 1,467,747 | |
Total Investments (Cost $282,816,024) | | | 100.0 | % | | $ | 350,890,223 | |
| Affiliated Securities (Cost $4,038,147) | | | | | | | – | |
| Unaffiliated Securities (Cost $278,777,877) | | | | | | | 350,890,223 | |
| Liabilities in Excess of Other Assets | | | 0.0 | % | | | (69,491 | ) |
| NET ASSETS | | | 100.0 | % | | $ | 350,820,732 | |
| # | 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. |
| THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND |
| Schedule of Investments October 31, 2021 (Continued) |
| @ | 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. |
Security | Acquisition Date(s) | | Acquisition Cost | | | % of net assets (Acquisition Date) | | | Market Value | | | % of net assets as of 10/31/2021 | |
| Prosetta Biosciences, Inc., Series D | 2/6/15 | | $ | 4,038,147 | | | | 2.00 | % | | $ | 0 | | | | 0.00 | % |
| Tolero CDR | 2/6/17 | | | 1,044,370 | | | | 0.90 | % | | | 1,467,747 | | | | 0.42 | % |
| Total | | | | | | | | | | | $ | 1,467,747 | | | | 0.42 | % |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021
| | | Alger Capital Appreciation Fund | | | Alger 35 Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 3,398,742,169 | | | $ | 42,871,871 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | 4,443,108 | | | | — | |
| Cash and cash equivalents | | | — | | | | 1,254,172 | |
| Foreign cash † | | | 101,545 | | | | — | |
| Receivable for investment securities sold | | | 70,762,926 | | | | 738,950 | |
| Receivable for shares of beneficial interest sold | | | 1,509,703 | | | | — | |
| Dividends and interest receivable | | | 534,891 | | | | 618 | |
| Receivable from Investment Manager | | | — | | | | 13,331 | |
| Prepaid expenses | | | 205,677 | | | | 30,195 | |
| Total Assets | | | 3,476,300,019 | | | | 44,909,137 | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 31,931,539 | | | | 699,642 | |
| Payable for shares of beneficial interest redeemed | | | 1,861,886 | | | | — | |
| Bank overdraft | | | 10,824,002 | | | | — | |
| Payable for interfund loans | | | 5,217,786 | | | | — | |
| Accrued investment advisory fees | | | 2,085,577 | | | | 11,192 | |
| Accrued distribution fees | | | 488,288 | | | | — | |
| Accrued shareholder administrative fees | | | 37,381 | | | | 384 | |
| Accrued administrative fees | | | 77,293 | | | | 992 | |
| Accrued custodian fees | | | 17,221 | | | | 1,202 | |
| Accrued transfer agent fees | | | 854,999 | | | | 450 | |
| Accrued printing fees | | | 52,928 | | | | 556 | |
| Accrued professional fees | | | 37,384 | | | | 21,121 | |
| Accrued trustee fees | | | 6,332 | | | | 37 | |
| Accrued fund accounting fees | | | 81,024 | | | | 13,968 | |
| Accrued other expenses | | | 4,461 | | | | 621 | |
| Total Liabilities | | | 53,578,101 | | | | 750,165 | |
| NET ASSETS | | $ | 3,422,721,918 | | | $ | 44,158,972 | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 1,149,917,668 | | | | 31,224,400 | |
| Distributable earnings | | | 2,272,804,250 | | | | 12,934,572 | |
| NET ASSETS | | $ | 3,422,721,918 | | | $ | 44,158,972 | |
| * Identified cost | | $ | 1,745,920,342(a | ) | | $ | 32,095,202(b | ) |
| ** Identified cost | | $ | 2,775,000(a | ) | | $ | — | |
| † Cost of foreign cash | | $ | 101,443(a | ) | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger Capital Appreciation Fund | | | Alger 35 Fund | |
| NET ASSETS BY CLASS: | | | | | | |
| Class A | | $ | 1,523,571,830 | | | $ | — | |
| Class C | | $ | 211,971,505 | | | $ | — | |
| Class Z | | $ | 1,687,178,583 | | | $ | 44,158,972 | |
SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | |
| Class A | | | 38,592,507 | | | | — | |
| Class C | | | 7,813,869 | | | | — | |
| Class Z | | | 40,655,270 | | | | 2,070,001 | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 39.48 | | | $ | — | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 41.67 | | | $ | — | |
| Class C — Net Asset Value Per Share Class C | | $ | 27.13 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 41.50 | | | $ | 21.33 | |
See Notes to Financial Statements.
| (a) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,765,851,287, amounted to $1,637,333,990 which consisted of aggregate gross unrealized appreciation of $1,663,933,959 and aggregate gross unrealized depreciation of $26,599,969. |
| (b) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $32,122,287, amounted to $10,749,584 which consisted of aggregate gross unrealized appreciation of $11,124,519 and aggregate gross unrealized depreciation of $374,935. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger Growth & Income Fund | | | Alger Mid Cap Growth Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 156,111,239 | | | $ | 330,312,616 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | — | | | | 2,722,707 | |
| Cash and cash equivalents | | | 6,400,691 | | | | 4,548,418 | |
| Receivable for investment securities sold | | | — | | | | 4,487,812 | |
| Receivable for shares of beneficial interest sold | | | 164,235 | | | | 98,835 | |
| Dividends and interest receivable | | | 217,598 | | | | 24,926 | |
| Receivable from Investment Manager | | | — | | | | 8,258 | |
| Prepaid expenses | | | 50,109 | | | | 79,884 | |
| Total Assets | | | 162,943,872 | | | | 342,283,456 | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | — | | | | 2,463,581 | |
| Payable for shares of beneficial interest redeemed | | | 96,433 | | | | 198,404 | |
| Accrued investment advisory fees | | | 66,523 | | | | 212,844 | |
| Accrued distribution fees | | | 36,785 | | | | 75,634 | |
| Accrued shareholder administrative fees | | | 1,995 | | | | 4,341 | |
| Accrued administrative fees | | | 3,659 | | | | 7,702 | |
| Accrued custodian fees | | | 1,490 | | | | 24,251 | |
| Accrued transfer agent fees | | | 39,324 | | | | 57,977 | |
| Accrued printing fees | | | 6,196 | | | | 15,533 | |
| Accrued professional fees | | | 22,797 | | | | 39,758 | |
| Accrued registration fees | | | 60 | | | | — | |
| Accrued trustee fees | | | 272 | | | | 646 | |
| Accrued fund accounting fees | | | 11,039 | | | | 17,475 | |
| Accrued other expenses | | | 2,509 | | | | 4,719 | |
| Total Liabilities | | | 289,082 | | | | 3,122,865 | |
| NET ASSETS | | $ | 162,654,790 | | | $ | 339,160,591 | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 59,052,170 | | | | 178,765,555 | |
| Distributable earnings | | | 103,602,620 | | | | 160,395,036 | |
| NET ASSETS | | $ | 162,654,790 | | | $ | 339,160,591 | |
| * Identified cost | | $ | 58,870,443(a | ) | | $ | 260,676,087(b | ) |
| ** Identified cost | | $ | — | | | $ | 2,663,245(b | ) |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger Growth & Income Fund | | | Alger Mid Cap Growth Fund | |
| NET ASSETS BY CLASS: | | | | | | |
| Class A | | $ | 106,439,150 | | | $ | 259,894,518 | |
| Class B | | $ | — | | | $ | 18,276,350 | |
| Class C | | $ | 18,194,160 | | | $ | 8,243,652 | |
| Class Z | | $ | 38,021,480 | | | $ | 52,746,071 | |
SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | |
| Class A | | | 1,723,510 | | | | 10,311,723 | |
| Class B | | | — | | | | 982,677 | |
| Class C | | | 299,379 | | | | 462,723 | |
| Class Z | | | 614,838 | | | | 2,045,982 | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 61.76 | | | $ | 25.20 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 65.18 | | | $ | 26.60 | |
| Class B — Net Asset Value Per Share Class B | | $ | — | | | $ | 18.60 | |
| Class C — Net Asset Value Per Share Class C | | $ | 60.77 | | | $ | 17.82 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 61.84 | | | $ | 25.78 | |
See Notes to Financial Statements.
| (a) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $58,183,203, amounted to $97,928,036 which consisted of aggregate gross unrealized appreciation of $98,756,525 and aggregate gross unrealized depreciation of $828,489. |
| (b) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $264,979,595, amounted to $68,055,728 which consisted of aggregate gross unrealized appreciation of $79,271,721 and aggregate gross unrealized depreciation of $11,215,993. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger Mid Cap Focus Fund | | | Alger Weatherbie Specialized Growth Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 936,875,406 | | | $ | 1,694,618,257 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | — | | | | — | |
| Cash and cash equivalents | | | 13,840,807 | | | | 80,282,876 | |
| Foreign cash † | | | 9,471,387 | | | | — | |
| Receivable for investment securities sold | | | 5,115,016 | | | | 34,033,798 | |
| Receivable for shares of beneficial interest sold | | | 3,101,126 | | | | 1,901,616 | |
| Dividends and interest receivable | | | 241,668 | | | | 117,401 | |
| Receivable from Investment Manager | | | — | | | | 962 | |
| Prepaid expenses | | | 105,643 | | | | 112,824 | |
| Total Assets | | | 968,751,053 | | | | 1,811,067,734 | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 22,344,777 | | | | 28,841,818 | |
| Payable for shares of beneficial interest redeemed | | | 694,886 | | | | 1,881,714 | |
| Due to investment advisor | | | 100 | | | | — | |
| Accrued investment advisory fees | | | 419,737 | | | | 1,136,541 | |
| Accrued distribution fees | | | 30,635 | | | | 153,281 | |
| Accrued shareholder administrative fees | | | 7,560 | | | | 16,400 | |
| Accrued administrative fees | | | 20,750 | | | | 39,805 | |
| Accrued custodian fees | | | 4,485 | | | | 8,401 | |
| Accrued transfer agent fees | | | 19,210 | | | | 179,484 | |
| Accrued printing fees | | | 14,143 | | | | 48,795 | |
| Accrued professional fees | | | 22,491 | | | | 33,251 | |
| Accrued trustee fees | | | 1,460 | | | | 2,959 | |
| Accrued fund accounting fees | | | 24,899 | | | | 42,354 | |
| Accrued other expenses | | | 4,777 | | | | 5,079 | |
| Total Liabilities | | | 23,609,910 | | | | 32,389,882 | |
| NET ASSETS | | $ | 945,141,143 | | | $ | 1,778,677,852 | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 629,636,292 | | | | 1,071,836,199 | |
| Distributable earnings | | | 315,504,851 | | | | 706,841,653 | |
| NET ASSETS | | $ | 945,141,143 | | | $ | 1,778,677,852 | |
| * Identified cost | | $ | 702,203,881(a | ) | | $ | 1,271,856,841(b | ) |
| ** Identified cost | | $ | — | | | $ | 1,041,633(b | ) |
| † Cost of foreign cash | | $ | 9,462,738(a | ) | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger Mid Cap Focus Fund | | | Alger Weatherbie Specialized Growth Fund | |
| NET ASSETS BY CLASS: | | | | | | |
| Class A | | $ | 1,668,838 | | | $ | 259,394,443 | |
| Class C | | $ | 2,317,277 | | | $ | 103,330,599 | |
| Class I | | $ | 145,538,541 | | | $ | 77,213,835 | |
| Class Y | | $ | 137,173 | | | $ | 61,162,881 | |
| Class Z | | $ | 795,479,314 | | | $ | 1,277,576,094 | |
SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | |
| Class A | | | 71,242 | | | | 10,394,267 | |
| Class C | | | 99,099 | | | | 6,486,674 | |
| Class I | | | 6,211,065 | | | | 3,007,491 | |
| Class Y | | | 5,822 | | | | 2,341,876 | |
| Class Z | | | 33,746,561 | | | | 47,539,535 | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 23.43 | | | $ | 24.96 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 24.72 | | | $ | 26.34 | |
| Class C — Net Asset Value Per Share Class C | | $ | 23.38 | | | $ | 15.93 | |
| Class I — Net Asset Value Per Share Class I | | $ | 23.43 | | | $ | 25.67 | |
| Class Y — Net Asset Value Per Share Class Y | | $ | 23.56 | | | $ | 26.12 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 23.57 | | | $ | 26.87 | |
See Notes to Financial Statements.
| (a) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $705,509,880, amounted to $231,365,526 which consisted of aggregate gross unrealized appreciation of $242,365,505 and aggregate gross unrealized depreciation of $10,999,979. |
| (b) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,289,392,477, amounted to $405,225,780 which consisted of aggregate gross unrealized appreciation of $493,689,794 and aggregate gross unrealized depreciation of $88,464,014. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger Small Cap Growth Fund | | | Alger Small Cap Focus Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 642,733,936 | | | $ | 7,754,644,662 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | 3,683,379 | | | | — | |
| Cash and cash equivalents | | | 43,736,292 | | | | 84,256,442 | |
| Receivable for investment securities sold | | | 1,329,088 | | | | 9,431,571 | |
| Receivable for shares of beneficial interest sold | | | 765,901 | | | | 15,634,344 | |
| Receivable for interfund loans | | | — | | | | 12,329,000 | |
| Dividends and interest receivable | | | 52,991 | | | | 730,954 | |
| Receivable from Investment Manager | | | 3,234 | | | | — | |
| Prepaid expenses | | | 100,271 | | | | 270,770 | |
| Total Assets | | | 692,405,092 | | | | 7,877,297,743 | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 25,789 | | | | 6,879,637 | |
| Payable for shares of beneficial interest redeemed | | | 177,528 | | | | 22,597,728 | |
| Accrued investment advisory fees | | | 464,148 | | | | 4,914,372 | |
| Accrued distribution fees | | | 91,629 | | | | 429,573 | |
| Accrued shareholder administrative fees | | | 7,391 | | | | 70,038 | |
| Accrued administrative fees | | | 15,758 | | | | 180,194 | |
| Accrued custodian fees | | | 33,041 | | | | 39,591 | |
| Accrued transfer agent fees | | | 73,230 | | | | 863,692 | |
| Accrued printing fees | | | 23,146 | | | | 202,053 | |
| Accrued professional fees | | | 37,888 | | | | 27,116 | |
| Accrued trustee fees | | | 1,301 | | | | 17,451 | |
| Accrued fund accounting fees | | | 25,030 | | | | 189,706 | |
| Accrued other expenses | | | 4,910 | | | | 7,290 | |
| Total Liabilities | | | 980,789 | | | | 36,418,441 | |
| NET ASSETS | | $ | 691,424,303 | | | $ | 7,840,879,302 | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 436,702,087 | | | | 4,895,916,652 | |
| Distributable earnings | | | 254,722,216 | | | | 2,944,962,650 | |
| NET ASSETS | | $ | 691,424,303 | | | $ | 7,840,879,302 | |
| * Identified cost | | $ | 443,560,714(a | ) | | $ | 5,151,009,961(b | ) |
| ** Identified cost | | $ | 2,503,096(a | ) | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger Small Cap Growth Fund | | | Alger Small Cap Focus Fund | |
| NET ASSETS BY CLASS: | | | | | | |
| Class A | | $ | 262,707,647 | | | $ | 560,577,485 | |
| Class B | | $ | 5,821,274 | | | $ | — | |
| Class C | | $ | 39,147,836 | | | $ | 267,800,086 | |
| Class I | | $ | — | | | $ | 421,986,439 | |
| Class Y | | $ | — | | | $ | 394,801,176 | |
| Class Z | | $ | 383,747,546 | | | $ | 6,195,714,116 | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | |
| Class A | | | 16,205,064 | | | | 17,661,585 | |
| Class B | | | 510,214 | | | | — | |
| Class C | | | 3,639,797 | | | | 9,524,570 | |
| Class I | | | — | | | | 12,938,900 | |
| Class Y | | | — | | | | 11,859,058 | |
| Class Z | | | 22,682,566 | | | | 186,119,034 | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 16.21 | | | $ | 31.74 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 17.11 | | | $ | 33.50 | |
| Class B — Net Asset Value Per Share Class B | | $ | 11.41 | | | $ | — | |
| Class C — Net Asset Value Per Share Class C | | $ | 10.76 | | | $ | 28.12 | |
| Class I — Net Asset Value Per Share Class I | | $ | — | | | $ | 32.61 | |
| Class Y — Net Asset Value Per Share Class Y | | $ | — | | | $ | 33.29 | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 16.92 | | | $ | 33.29 | |
See Notes to Financial Statements.
| (a) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $446,865,298, amounted to $199,552,017 which consisted of aggregate gross unrealized appreciation of $225,620,447 and aggregate gross unrealized depreciation of $26,068,430. |
| (b) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $5,162,478,767, amounted to $2,592,165,895 which consisted of aggregate gross unrealized appreciation of $2,797,346,363 and aggregate gross unrealized depreciation of $205,180,468. |
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger International Focus Fund | | | Alger Health Sciences Fund | |
| ASSETS: | | | | | | |
| Investments in unaffiliated securities, at value (Identified cost below)* see accompanying schedules of investments | | $ | 207,810,630 | | | $ | 350,890,223 | |
| Investments in affiliated securities, at value (Identified cost below)** see accompanying schedules of investments | | | — | | | | — | |
| Cash and cash equivalents | | | 1,514,078 | | | | 3,785,212 | |
| Foreign cash † | | | 386,533 | | | | — | |
| Receivable for investment securities sold | | | 4,383,196 | | | | 6,060,459 | |
| Receivable for shares of beneficial interest sold | | | 5,959 | | | | 495,094 | |
| Dividends and interest receivable | | | 334,088 | | | | 59,782 | |
| Receivable from Investment Manager | | | 12,792 | | | | — | |
| Prepaid expenses | | | 67,446 | | | | 54,355 | |
| Total Assets | | | 214,514,722 | | | | 361,345,125 | |
| LIABILITIES: | | | | | | | | |
| Payable for investment securities purchased | | | 381,971 | | | | 9,879,058 | |
| Payable for shares of beneficial interest redeemed | | | 52,772 | | | | 289,663 | |
| Foreign capital gain tax payable | | | 166,634 | | | | — | |
| Accrued investment advisory fees | | | 127,230 | | | | 159,199 | |
| Accrued distribution fees | | | 55,619 | | | | 43,285 | |
| Accrued shareholder administrative fees | | | 2,801 | | | | 3,789 | |
| Accrued administrative fees | | | 4,928 | | | | 7,960 | |
| Accrued custodian fees | | | 21,757 | | | | 2,860 | |
| Accrued transfer agent fees | | | 40,196 | | | | 76,945 | |
| Accrued printing fees | | | 12,966 | | | | 4,199 | |
| Accrued professional fees | | | 33,247 | | | | 32,331 | |
| Accrued trustee fees | | | 409 | | | | 670 | |
| Accrued fund accounting fees | | | 11,785 | | | | 16,343 | |
| Accrued other expenses | | | 9,910 | | | | 8,091 | |
| Total Liabilities | | | 922,225 | | | | 10,524,393 | |
| NET ASSETS | | $ | 213,592,497 | | | $ | 350,820,732 | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital (par value of $.001 per share) | | | 132,229,906 | | | | 216,662,447 | |
| Distributable earnings | | | 81,362,591 | | | | 134,158,285 | |
| NET ASSETS | | $ | 213,592,497 | | | $ | 350,820,732 | |
| * Identified cost | | $ | 140,397,568(a | ) | | $ | 278,777,877(b | ) |
| ** Identified cost | | $ | — | | | $ | 4,038,147(b | ) |
| † Cost of foreign cash | | $ | 386,109(a | ) | | $ | — | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Assets and Liabilities October 31, 2021 (Continued)
| | | Alger International Focus Fund | | | Alger Health Sciences Fund | |
| NET ASSETS BY CLASS: | | | | | | |
| Class A | | $ | 158,222,503 | | | $ | 151,514,479 | |
| Class B | | $ | 22,146,941 | | | $ | — | |
| Class C | | $ | 4,368,120 | | | $ | 14,334,415 | |
| Class I | | $ | 591,222 | | | $ | — | |
| Class Z | | $ | 28,263,711 | | | $ | 184,971,838 | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING — NOTE 6: | |
| Class A | | | 6,298,604 | | | | 4,133,328 | |
| Class B | | | 1,015,649 | | | | — | |
| Class C | | | 208,618 | | | | 548,925 | |
| Class I | | | 23,464 | | | | — | |
| Class Z | | | 1,107,688 | | | | 4,986,937 | |
| NET ASSET VALUE PER SHARE: | | | | | | | | |
| Class A — Net Asset Value Per Share Class A | | $ | 25.12 | | | $ | 36.66 | |
| Class A — Offering Price Per Share (includes a 5.25% sales charge) | | $ | 26.51 | | | $ | 38.69 | |
| Class B — Net Asset Value Per Share Class B | | $ | 21.81 | | | $ | — | |
| Class C — Net Asset Value Per Share Class C | | $ | 20.94 | | | $ | 26.11 | |
| Class I — Net Asset Value Per Share Class I | | $ | 25.20 | | | $ | — | |
| Class Z — Net Asset Value Per Share Class Z | | $ | 25.52 | | | $ | 37.09 | |
See Notes to Financial Statements.
| (a) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $142,453,617, amounted to $65,357,013 which consisted of aggregate gross unrealized appreciation of $72,355,952 and aggregate gross unrealized depreciation of $6,998,939. |
| (b) | At October 31, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $283,528,330, amounted to $67,361,893 which consisted of aggregate gross unrealized appreciation of $78,285,489 and aggregate gross unrealized depreciation of $10,923,596. |
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2021
| | | Alger Capital Appreciation Fund | | | Alger 35 Fund | |
| INCOME: | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 15,555,502 | | | $ | 87,628 | |
| Interest | | | — | | | | 50 | |
| Total Income | | | 15,555,502 | | | | 87,678 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 24,040,397 | | | | 87,862 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 3,609,705 | | | | — | |
| Class C | | | 2,154,440 | | | | — | |
| Shareholder administrative fees — Note 3(f) | | | 430,219 | | | | 3,173 | |
| Administration fees — Note 3(b) | | | 886,499 | | | | 8,020 | |
| Custodian fees | | | 123,761 | | | | 10,489 | |
| Interest expenses | | | 52,935 | | | | 202 | |
| Transfer agent fees — Note 3(f) | | | 1,308,113 | | | | 1,658 | |
| Printing fees | | | 149,018 | | | | 9,036 | |
| Professional fees | | | 128,105 | | | | 37,840 | |
| Registration fees | | | 72,741 | | | | 44,553 | |
| Trustee fees — Note 3(g) | | | 77,916 | | | | 578 | |
| Fund accounting fees | | | 456,145 | | | | 62,770 | |
| Other expenses | | | 177,349 | | | | 2,156 | |
| Total Expenses | | | 33,667,343 | | | | 268,337 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | — | | | | (150,818 | ) |
| Net Expenses | | | 33,667,343 | | | | 117,519 | |
| NET INVESTMENT LOSS | | | (18,111,841 | ) | | | (29,841 | ) |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | |
| Net realized gain on unaffiliated investments | | | 722,621,152 | | | | 10,555,178 | |
| Net realized (loss) on foreign currency transactions | | | (64,292 | ) | | | — | |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | | | 294,474,540 | | | | (1,103,824 | )** |
| Net change in unrealized appreciation on affiliated investments | | | 1,668,108 | | | | — | |
| Net change in unrealized appreciation (depreciation) on foreign currency | | | 5,096 | | | | (4 | ) |
| Net realized and unrealized gain on investments and foreign currency | | | 1,018,704,604 | | | | 9,451,350 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 1,000,592,763 | | | $ | 9,421,509 | |
| * Foreign withholding taxes | | $ | 248,110 | | | $ | 212 | |
See Notes to Financial Statements.
** Excludes net unrealized gain of $8,366,153 from the Reorganization. See Note 1 - General.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2021 (Continued)
| | | Alger Growth & Income Fund | | | Alger Mid Cap Growth Fund | |
| INCOME: | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 2,946,244 | | | $ | 883,091 | |
| Interest | | | 2,389 | | | | 226 | |
| Litigation income | | | — | | | | 9,346,397 | |
| Income from securities lending | | | 775 | | | | — | |
| Total Income | | | 2,949,408 | | | | 10,229,714 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 695,601 | | | | 2,287,642 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 233,520 | | | | 583,795 | |
| Class B | | | — | | | | 175,555 | |
| Class C | | | 160,861 | | | | 73,243 | |
| Shareholder administrative fees — Note 3(f) | | | 21,029 | | | | 46,896 | |
| Administration fees — Note 3(b) | | | 38,258 | | | | 82,777 | |
| Custodian fees | | | 14,978 | | | | 46,420 | |
| Interest expenses | | | 27 | | | | 2,524 | |
| Transfer agent fees — Note 3(f) | | | 68,447 | | | | 120,020 | |
| Printing fees | | | 12,392 | | | | 55,281 | |
| Professional fees | | | 37,620 | | | | 63,920 | |
| Registration fees | | | 33,045 | | | | 46,004 | |
| Trustee fees — Note 3(g) | | | 3,313 | | | | 7,360 | |
| Fund accounting fees | | | 63,545 | | | | 95,355 | |
| Other expenses | | | 4,601 | | | | 23,916 | |
| Total Expenses | | | 1,387,237 | | | | 3,710,708 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (486 | ) | | | (134,768 | ) |
| Net Expenses | | | 1,386,751 | | | | 3,575,940 | |
| NET INVESTMENT INCOME | | | 1,562,657 | | | | 6,653,774 | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | |
| Net realized gain on unaffiliated investments | | | 5,495,295 | | | | 89,935,279 | |
| Net realized (loss) on foreign currency transactions | | | — | | | | (7,553 | ) |
| Net change in unrealized appreciation on unaffiliated investments | | | 41,033,641 | | | | 6,148,757 | |
| Net change in unrealized appreciation on affiliated investments | | | — | | | | 1,014,765 | |
| Net change in unrealized (depreciation) on foreign currency | | | — | | | | (139 | ) |
| Net realized and unrealized gain on investments and foreign currency | | | 46,528,936 | | | | 97,091,109 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 48,091,593 | | | $ | 103,744,883 | |
| * Foreign withholding taxes | | $ | 16,718 | | | $ | 3,522 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2021 (Continued)
| | | Alger Mid Cap Focus Fund | | | Alger Weatherbie Specialized Growth Fund | |
| INCOME: | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 717,262 | | | $ | 2,417,085 | |
| Interest | | | 1,161 | | | | 4,004 | |
| Total Income | | | 718,423 | | | | 2,421,089 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 4,041,718 | | | | 11,557,216 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 443 | | | | 575,583 | |
| Class C | | | 1,798 | | | | 906,621 | |
| Class I | | | 282,931 | | | | 188,251 | |
| Shareholder administrative fees — Note 3(f) | | | 70,817 | | | | 166,958 | |
| Administration fees — Note 3(b) | | | 194,682 | | | | 401,773 | |
| Custodian fees | | | 44,639 | | | | 57,002 | |
| Interest expenses | | | 442 | | | | — | |
| Transfer agent fees — Note 3(f) | | | 62,382 | | | | 314,709 | |
| Printing fees | | | 67,670 | | | | 143,666 | |
| Professional fees | | | 49,857 | | | | 73,560 | |
| Registration fees | | | 97,059 | | | | 108,962 | |
| Trustee fees — Note 3(g) | | | 17,207 | | | | 34,911 | |
| Fund accounting fees | | | 136,002 | | | | 235,871 | |
| Other expenses | | | 25,613 | | | | 52,992 | |
| Total Expenses | | | 5,093,260 | | | | 14,818,075 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (15 | ) | | | (8,083 | ) |
| Net Expenses | | | 5,093,245 | | | | 14,809,992 | |
| NET INVESTMENT LOSS | | | (4,374,822 | ) | | | (12,388,903 | ) |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | |
| Net realized gain on unaffiliated investments | | | 85,695,663 | | | | 337,344,305 | |
| Net realized (loss) on foreign currency transactions | | | (40,134 | ) | | | — | |
| Net change in unrealized appreciation on unaffiliated investments | | | 185,790,877 | | | | 197,709,608 | |
| Net change in unrealized (depreciation) on affiliated investments | | | — | | | | (34,721 | ) |
| Net change in unrealized appreciation on foreign currency | | | 15,547 | | | | — | |
| Net realized and unrealized gain on investments and foreign currency | | | 271,461,953 | | | | 535,019,192 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 267,087,131 | | | $ | 522,630,289 | |
| * Foreign withholding taxes | | $ | — | | | $ | 59,878 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2021 (Continued)
| | | Alger Small Cap Growth Fund | | | Alger Small Cap Focus Fund | |
| INCOME: | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 1,101,846 | | | $ | 14,117,891 | |
| Interest | | | 2,900 | | | | 95,277 | |
| Litigation income | | | 3,738,004 | | | | — | |
| Total Income | | | 4,842,750 | | | | 14,213,168 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 4,958,536 | | | | 58,391,557 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 622,211 | | | | 1,558,591 | |
| Class B | | | 58,672 | | | | — | |
| Class C | | | 336,389 | | | | 2,829,905 | |
| Class I | | | — | | | | 1,082,494 | |
| Shareholder administrative fees — Note 3(f) | | | 79,962 | | | | 837,472 | |
| Administration fees — Note 3(b) | | | 168,345 | | | | 2,141,024 | |
| Custodian fees | | | 62,300 | | | | 221,403 | |
| Interest expenses | | | — | | | | 1,411 | |
| Transfer agent fees — Note 3(f) | | | 154,140 | | | | 1,480,999 | |
| Printing fees | | | 86,937 | | | | 545,417 | |
| Professional fees | | | 61,930 | | | | 193,730 | |
| Registration fees | | | 80,294 | | | | 301,517 | |
| Trustee fees — Note 3(g) | | | 15,043 | | | | 194,013 | |
| Fund accounting fees | | | 136,062 | | | | 1,054,331 | |
| Other expenses | | | 30,199 | | | | 322,848 | |
| Total Expenses | | | 6,851,020 | | | | 71,156,712 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (43,207 | ) | | | — | |
| Net Expenses | | | 6,807,813 | | | | 71,156,712 | |
| NET INVESTMENT LOSS | | | (1,965,063 | ) | | | (56,943,544 | ) |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | |
| Net realized gain on unaffiliated investments | | | 59,202,208 | | | | 490,107,365 | |
| Net realized (loss) on foreign currency transactions | | | (24 | ) | | | (5 | ) |
| Net change in unrealized appreciation on unaffiliated investments | | | 63,824,928 | | | | 823,162,579 | |
| Net change in unrealized appreciation on affiliated investments | | | 1,400,776 | | | | — | |
| Net realized and unrealized gain on investments and foreign currency | | | 124,427,888 | | | | 1,313,269,939 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 122,462,825 | | | $ | 1,256,326,395 | |
| * Foreign withholding taxes | | $ | — | | | $ | 2,373 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Operations for the year ended October 31, 2021 (Continued)
| | | Alger International Focus Fund | | | Alger Health Sciences Fund | |
| INCOME: | | | | | | |
| Dividends (net of foreign withholding taxes*) | | $ | 1,297,734 | | | $ | 1,000,637 | |
| Interest | | | 4,687 | | | | 596 | |
| Litigation income | | | 159,091 | | | | 179,832 | |
| Total Income | | | 1,461,512 | | | | 1,181,065 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees — Note 3(a) | | | 1,406,325 | | | | 1,747,715 | |
| Distribution fees — Note 3(c) | | | | | | | | |
| Class A | | | 370,973 | | | | 356,411 | |
| Class B | | | 216,983 | | | | — | |
| Class C | | | 37,768 | | | | 139,894 | |
| Class I | | | 1,602 | | | | — | |
| Shareholder administrative fees — Note 3(f) | | | 31,109 | | | | 41,953 | |
| Administration fees — Note 3(b) | | | 54,470 | | | | 87,386 | |
| Custodian fees | | | 69,924 | | | | 28,457 | |
| Interest expenses | | | 427 | | | | 1,158 | |
| Transfer agent fees — Note 3(f) | | | 88,461 | | | | 117,435 | |
| Printing fees | | | 37,551 | | | | 40,012 | |
| Professional fees | | | 56,500 | | | | 50,750 | |
| Registration fees | | | 47,963 | | | | 47,097 | |
| Trustee fees — Note 3(g) | | | 4,759 | | | | 7,628 | |
| Fund accounting fees | | | 82,472 | | | | 89,067 | |
| Other expenses | | | 23,357 | | | | 24,061 | |
| Total Expenses | | | 2,530,644 | | | | 2,779,024 | |
| Less, expense reimbursements/waivers — Note 3(a) | | | (183,720 | ) | | | — | |
| Net Expenses | | | 2,346,924 | | | | 2,779,024 | |
| NET INVESTMENT LOSS | | | (885,412 | ) | | | (1,597,959 | ) |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FORWARD FOREIGN CURRENCY CONTRACTS AND FOREIGN CURRENCY: | |
| Net realized gain on unaffiliated investments | | | 30,460,474 | ** | | | 76,782,439 | |
| Net realized (loss) on forward foreign currency contracts | | | (2,095 | ) | | | — | |
| Net realized (loss) on foreign currency transactions | | | (39,805 | ) | | | (3,819 | ) |
| Net change in unrealized appreciation on unaffiliated investments | | | 24,830,384 | | | | 1,652,900 | |
| Net change in unrealized (depreciation) on affiliated investments | | | — | | | | (134,605 | ) |
| Net change in unrealized (depreciation) on foreign currency | | | (8,382 | ) | | | (16 | ) |
| Net realized and unrealized gain on investments, forward foreign currency contracts and foreign currency | | | 55,240,576 | | | | 78,296,899 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 54,355,164 | | | $ | 76,698,940 | |
| * Foreign withholding taxes | | $ | 207,038 | | | $ | 1,081 | |
See Notes to Financial Statements.
** Includes capital gain tax of $502,859.
THE ALGER FUNDS
Statements of Changes in Net Assets
| Alger Capital Appreciation Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment loss | | $ | (18,111,841 | ) | | $ | (9,126,542 | ) |
| Net realized gain on investments and foreign currency | | | 722,556,860 | | | | 459,038,986 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 296,147,744 | | | | 458,060,897 | |
| Net increase in net assets resulting from operations | | | 1,000,592,763 | | | | 907,973,341 | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (192,316,638 | ) | | | (92,851,822 | ) |
| Class B* | | | — | | | | (812,864 | ) |
| Class C | | | (41,889,152 | ) | | | (22,831,979 | ) |
| Class Z | | | (187,550,241 | ) | | | (109,764,275 | ) |
| Total dividends and distributions to shareholders | | | (421,756,031 | ) | | | (226,260,940 | ) |
| Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | (35,800,613 | ) | | | (127,292,115 | ) |
| Class B* | | | — | | | | (9,299,807 | ) |
| Class C | | | (14,687,747 | ) | | | (55,925,340 | ) |
| Class Z | | | (453,649,540 | ) | | | 46,690,469 | |
| Net decrease from shares of beneficial interest transactions — Note 6 | | | (504,137,900 | ) | | | (145,826,793 | ) |
| Total increase | | | 74,698,832 | | | | 535,885,608 | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 3,348,023,086 | | | | 2,812,137,478 | |
| END OF PERIOD | | $ | 3,422,721,918 | | | $ | 3,348,023,086 | |
See Notes to Financial Statements.
* On June 1, 2020, all of the issued and outstanding Class B Shares of the Alger Capital Appreciation Fund were converted into Class A Shares of the Fund.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | Alger 35 Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment loss | | $ | (29,841 | ) | | $ | (41,786 | ) |
| Net realized gain on investments and foreign currency | | | 10,555,178 | | | | 2,591,700 | |
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | | | (1,103,828 | ) | | | 2,214,786 | |
| Net increase in net assets resulting from operations | | | 9,421,509 | | | | 4,764,700 | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class Z* | | | (2,452,471 | ) | | | (16,599 | ) |
| Class P-2* | | | (51,070 | ) | | | (166 | ) |
| Total dividends and distributions to shareholders | | | (2,503,541 | ) | | | (16,765 | ) |
Increase (decrease) from shares of beneficial interest transactions: | |
| Class Z* | | | 23,183,654 | | | | 350,508 | |
| Class P-2* | | | (321,436 | ) | | | 73,651 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 22,862,218 | | | | 424,159 | |
| Total increase | | | 29,780,186 | | | | 5,172,094 | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 14,378,786 | | | | 9,206,692 | |
| END OF PERIOD | | $ | 44,158,972 | | | $ | 14,378,786 | |
See Notes to Financial Statements.
* On May 7, 2021, Class P Shares of the Alger 35 Fund were reclassified as Class Z Shares of the Fund. After the close of business on October 29, 2021, Class P-2 Shares of the Fund were converted to Class Z Shares.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| Alger Growth & Income Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment income | | $ | 1,562,657 | | | $ | 1,773,093 | |
| Net realized gain on investments and foreign currency | | | 5,495,295 | | | | 1,585,950 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 41,033,641 | | | | 1,439,738 | |
| Net increase in net assets resulting from operations | | | 48,091,593 | | | | 4,798,781 | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (2,056,460 | ) | | | (3,822,521 | ) |
| Class C | | | (252,675 | ) | | | (676,121 | ) |
| Class Z | | | (730,285 | ) | | | (1,411,694 | ) |
| Total dividends and distributions to shareholders | | | (3,039,420 | ) | | | (5,910,336 | ) |
| Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | 1,774,061 | | | | (1,102,296 | ) |
| Class C | | | (172,021 | ) | | | (1,751,688 | ) |
| Class Z | | | 6,950,403 | | | | (3,833,530 | ) |
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | | | 8,552,443 | | | | (6,687,514 | ) |
| Total increase (decrease) | | | 53,604,616 | | | | (7,799,069 | ) |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 109,050,174 | | | | 116,849,243 | |
| END OF PERIOD | | $ | 162,654,790 | | | $ | 109,050,174 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| Alger Mid Cap Growth Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment income (loss) | | $ | 6,653,774 | | | $ | (1,440,625 | ) |
| Net realized gain on investments and foreign currency | | | 89,927,726 | | | | 27,186,682 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 7,163,383 | | | | 42,632,795 | |
| Net increase in net assets resulting from operations | | | 103,744,883 | | | | 68,378,852 | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (20,930,151 | ) | | | (11,109,875 | ) |
| Class B | | | (2,145,611 | ) | | | (1,356,457 | ) |
| Class C | | | (835,010 | ) | | | (613,248 | ) |
| Class Z | | | (3,167,651 | ) | | | (1,392,461 | ) |
| Total dividends and distributions to shareholders | | | (27,078,423 | ) | | | (14,472,041 | ) |
Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | 12,073,737 | | | | 4,900,132 | |
| Class B | | | (1,268,494 | ) | | | (1,905,314 | ) |
| Class C | | | 949,265 | | | | (1,560,597 | ) |
| Class Z | | | 15,282,249 | | | | 3,662,413 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 27,036,757 | | | | 5,096,634 | |
| Total increase | | | 103,703,217 | | | | 59,003,445 | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 235,457,374 | | | | 176,453,929 | |
| END OF PERIOD | | $ | 339,160,591 | | | $ | 235,457,374 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| Alger Mid Cap Focus Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment loss | | $ | (4,374,822 | ) | | $ | (1,113,273 | ) |
| Net realized gain on investments and foreign currency | | | 85,655,529 | | | | 9,490,104 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 185,806,424 | | | | 48,509,336 | |
| Net increase in net assets resulting from operations | | | 267,087,131 | | | | 56,886,167 | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class I | | | (1,305,962 | ) | | | — | |
| Class Z | | | (5,908,321 | ) | | | — | |
| Total dividends and distributions to shareholders | | | (7,214,283 | ) | | | — | |
Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | 1,561,701 | | | | — | |
| Class C | | | 2,225,078 | | | | — | |
| Class I | | | 35,683,690 | | | | 50,845,888 | |
| Class Y | | | 119,925 | | | | — | |
| Class Z | | | 270,350,323 | | | | 237,342,329 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 309,940,717 | | | | 288,188,217 | |
| Total increase | | | 569,813,565 | | | | 345,074,384 | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 375,327,578 | | | | 30,253,194 | |
| END OF PERIOD | | $ | 945,141,143 | | | $ | 375,327,578 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| Alger Weatherbie Specialized Growth Fund | |
| | | For the Year Ended
October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment loss | | $ | (12,388,903 | ) | | $ | (6,765,665 | ) |
| Net realized gain on investments and foreign currency | | | 337,344,305 | | | | 53,346,079 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 197,674,887 | | | | 170,278,040 | |
| Net increase in net assets resulting from operations | | | 522,630,289 | | | | 216,858,454 | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (9,723,657 | ) | | | (5,872,548 | ) |
| Class C | | | (5,566,217 | ) | | | (2,781,983 | ) |
| Class I | | | (3,675,447 | ) | | | (2,486,337 | ) |
| Class Y | | | (1,800,147 | ) | | | (527,262 | ) |
| Class Z | | | (33,989,310 | ) | | | (11,293,720 | ) |
| Total dividends and distributions to shareholders | | | (54,754,778 | ) | | | (22,961,850 | ) |
| Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | 8,382,707 | | | | (4,899,235 | ) |
| Class C | | | 11,840,459 | | | | 6,415,884 | |
| Class I | | | (14,587,055 | ) | | | (10,869,282 | ) |
| Class Y | | | 12,611,659 | | | | 11,917,428 | |
| Class Z | | | 334,347,543 | | | | 220,558,571 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 352,595,313 | | | | 223,123,366 | |
| Total increase | | | 820,470,824 | | | | 417,019,970 | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 958,207,028 | | | | 541,187,058 | |
| END OF PERIOD | | $ | 1,778,677,852 | | | $ | 958,207,028 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| Alger Small Cap Growth Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment loss | | $ | (1,965,063 | ) | | $ | (2,425,822 | ) |
| Net realized gain on investments and foreign currency | | | 59,202,184 | | | | 2,220,628 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 65,225,704 | | | | 79,204,729 | |
| Net increase in net assets resulting from operations | | | 122,462,825 | | | | 78,999,535 | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (1,079,051 | ) | | | (6,939,023 | ) |
| Class B | | | (39,964 | ) | | | (349,658 | ) |
| Class C | | | (177,822 | ) | | | (491,758 | ) |
| Class Z | | | (1,109,231 | ) | | | (1,376,642 | ) |
| Total dividends and distributions to shareholders | | | (2,406,068 | ) | | | (9,157,081 | ) |
Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | 21,347,746 | | | | 27,313,206 | |
| Class B | | | (695,421 | ) | | | (802,698 | ) |
| Class C | | | 15,105,566 | | | | 9,409,589 | |
| Class Z | | | 145,384,763 | | | | 135,592,383 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 181,142,654 | | | | 171,512,480 | |
| Total increase | | | 301,199,411 | | | | 241,354,934 | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 390,224,892 | | | | 148,869,958 | |
| END OF PERIOD | | $ | 691,424,303 | | | $ | 390,224,892 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Small Cap Focus Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| | | | | | | |
| Net investment loss | | $ | (56,943,544 | ) | | $ | (40,440,369 | ) |
| Net realized gain (loss) on investments and foreign currency | | | 490,107,360 | | | | (66,037,625 | ) |
| Net change in unrealized appreciation on investments and foreign currency | | | 823,162,579 | | | | 1,477,061,927 | |
| Net increase in net assets resulting from operations | | | 1,256,326,395 | | | | 1,370,583,933 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | — | | | | (12,366,187 | ) |
| Class C | | | — | | | | (4,565,291 | ) |
| Class I | | | — | | | | (11,171,919 | ) |
| Class Y | | | — | | | | (3,303,098 | ) |
| Class Z | | | — | | | | (66,937,210 | ) |
| Total dividends and distributions to shareholders | | | — | | | | (98,343,705 | ) |
| | |
| Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | (120,477,671 | ) | | | (90,496,777 | ) |
| Class C | | | (30,745,132 | ) | | | (24,308,168 | ) |
| Class I | | | (10,377,165 | ) | | | (226,680,974 | ) |
| Class Y | | | 71,307,361 | | | | 120,173,869 | |
| Class Z | | | 732,504,935 | | | | 1,144,959,252 | |
| Net increase from shares of beneficial interest transactions — Note 6 | | | 642,212,328 | | | | 923,647,202 | |
| Total increase | | | 1,898,538,723 | | | | 2,195,887,430 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 5,942,340,579 | | | | 3,746,453,149 | |
| END OF PERIOD | | $ | 7,840,879,302 | | | $ | 5,942,340,579 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger International Focus Fund | |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment loss | | $ | (885,412 | ) | | $ | (459,456 | ) |
| Net realized gain on investments, forward foreign currency contracts and foreign currency | | | 30,418,574 | | | | 5,125,972 | |
| Net change in unrealized appreciation on investments, forward foreign currency contracts and foreign currency | | | 24,822,002 | | | | 26,519,733 | |
| Net increase in net assets resulting from operations | | | 54,355,164 | | | | 31,186,249 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | — | | | | (4,436,636 | ) |
| Class B | | | — | | | | (771,794 | ) |
| Class C | | | — | | | | (151,921 | ) |
| Class I | | | — | | | | (44,402 | ) |
| Class Z | | | — | | | | (626,032 | ) |
| Total dividends and distributions to shareholders | | | — | | | | (6,030,785 | ) |
| | |
Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | (3,992,372 | ) | | | (566,538 | ) |
| Class B | | | (2,518,776 | ) | | | (2,317,236 | ) |
| Class C | | | 613,764 | | | | (1,405,415 | ) |
| Class I | | | (221,462 | ) | | | (459,458 | ) |
| Class Z | | | 10,073,982 | | | | (1,618,647 | ) |
| Net increase (decrease) from shares of beneficial interest transactions — Note 6 | | | 3,955,136 | | | | (6,367,294 | ) |
| Total increase | | | 58,310,300 | | | | 18,788,170 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 155,282,197 | | | | 136,494,027 | |
| END OF PERIOD | | $ | 213,592,497 | | | $ | 155,282,197 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Statements of Changes in Net Assets (Continued)
| | | Alger Health Sciences Fund
| |
| | | For the Year Ended October 31, 2021 | | | For the Year Ended October 31, 2020 | |
| Net investment loss | | $ | (1,597,959 | ) | | $ | (488,346 | ) |
| Net realized gain on investments and foreign currency | | | 76,778,620 | | | | 32,284,980 | |
| Net change in unrealized appreciation on investments and foreign currency | | | 1,518,279 | | | | 34,391,614 | |
| Net increase in net assets resulting from operations | | | 76,698,940 | | | | 66,188,248 | |
| | | | | | | | | |
| Dividends and distributions to shareholders: | | | | | | | | |
| Class A | | | (14,998,910 | ) | | | (7,652,345 | ) |
| Class C | | | (1,922,517 | ) | | | (996,378 | ) |
| Class Z | | | (15,773,204 | ) | | | (5,601,401 | ) |
Total dividends and distributions to shareholders | | | (32,694,631 | ) | | | (14,250,124 | ) |
| | |
Increase (decrease) from shares of beneficial interest transactions: | |
| Class A | | | 2,966,483 | | | | (1,239,325 | ) |
| Class C | | | 1,074,596 | | | | (687,111 | ) |
| Class Z | | | 31,879,794 | | | | 24,802,883 | |
Net increase from shares of beneficial interest transactions — Note 6 | | | 35,920,873 | | | | 22,876,447 | |
| Total increase | | | 79,925,182 | | | | 74,814,571 | |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 270,895,550 | | | | 196,080,979 | |
| END OF PERIOD | | $ | 350,820,732 | | | $ | 270,895,550 | |
See Notes to Financial Statements.
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Capital Appreciation Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 33.76 | | | $ | 27.12 | | | $ | 26.20 | | | $ | 25.86 | | | $ | 20.09 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.24 | ) | | | (0.12 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.02 | ) |
| Net realized and unrealized gain on investments | | | 11.11 | | | | 8.96 | | | | 3.53 | | | | 2.07 | | | | 5.96 | |
| Total from investment operations | | | 10.87 | | | | 8.84 | | | | 3.46 | | | | 2.01 | | | | 5.94 | |
| Distributions from net realized gains | | | (5.15 | ) | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) |
| Net asset value, end of period | | $ | 39.48 | | | $ | 33.76 | | | $ | 27.12 | | | $ | 26.20 | | | $ | 25.86 | |
| Total return(ii) | | | 35.41 | % | | | 34.79 | % | | | 15.29 | % | | | 8.15 | % | | | 29.84 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 1,523,572 | | | $ | 1,320,073 | | | $ | 1,174,346 | | | $ | 1,257,811 | | | $ | 1,506,389 | |
| Ratio of gross expenses to average net assets | | | 1.15 | % | | | 1.17 | % | | | 1.21 | % | | | 1.21 | % | | | 1.23 | % |
| Ratio of net expenses to average net assets | | | 1.15 | % | | | 1.17 | % | | | 1.21 | % | | | 1.21 | % | | | 1.23 | % |
| Ratio of net investment loss to average net assets | | | (0.67 | )% | | | (0.41 | )% | | | (0.27 | )% | | | (0.23 | )% | | | (0.10 | )% |
| Portfolio turnover rate | | | 78.77 | % | | | 89.91 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % |
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
| Alger Capital Appreciation Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 24.79 | | | $ | 20.60 | | | $ | 20.69 | | | $ | 20.91 | | | $ | 16.39 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | �� | | | | |
| Net investment loss(i) | | | (0.35 | ) | | | (0.25 | ) | | | (0.20 | ) | | | (0.20 | ) | | | (0.15 | ) |
| Net realized and unrealized gain on investments | | | 7.84 | | | | 6.64 | | | | 2.65 | | | | 1.65 | | | | 4.84 | |
| Total from investment operations | | | 7.49 | | | | 6.39 | | | | 2.45 | | | | 1.45 | | | | 4.69 | |
| Distributions from net realized gains | | | (5.15 | ) | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) |
| Net asset value, end of period | | $ | 27.13 | | | $ | 24.79 | | | $ | 20.60 | | | $ | 20.69 | | | $ | 20.91 | |
| Total return(ii) | | | 34.43 | % | | | 33.82 | % | | | 14.44 | % | | | 7.35 | % | | | 28.88 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 211,972 | | | $ | 204,909 | | | $ | 219,511 | | | $ | 243,523 | | | $ | 297,044 | |
| Ratio of gross expenses to average net assets | | | 1.90 | % | | | 1.91 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % |
| Ratio of net expenses to average net assets | | | 1.90 | % | | | 1.91 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % |
| Ratio of net investment loss to average net assets | | | (1.42 | )% | | | (1.13 | )% | | | (1.01 | )% | | | (0.96 | )% | | | (0.83 | )% |
| Portfolio turnover rate | | | 78.77 | % | | | 89.91 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % |
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
| Alger Capital Appreciation Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 35.15 | | | $ | 28.06 | | | $ | 26.94 | | | $ | 26.46 | | | $ | 20.48 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.13 | ) | | | (0.03 | ) | | | 0.02 | | | | 0.03 | | | | 0.05 | |
| Net realized and unrealized gain on investments | | | 11.63 | | | | 9.32 | | | | 3.64 | | | | 2.12 | | | | 6.10 | |
| Total from investment operations | | | 11.50 | | | | 9.29 | | | | 3.66 | | | | 2.15 | | | | 6.15 | |
| Distributions from net realized gains | | | (5.15 | ) | | | (2.20 | ) | | | (2.54 | ) | | | (1.67 | ) | | | (0.17 | ) |
| Net asset value, end of period | | $ | 41.50 | | | $ | 35.15 | | | $ | 28.06 | | | $ | 26.94 | | | $ | 26.46 | |
| Total return(ii) | | | 35.85 | % | | | 35.26 | % | | | 15.69 | % | | | 8.51 | % | | | 30.25 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 1,687,179 | | | $ | 1,823,041 | | | $ | 1,409,374 | | | $ | 1,240,605 | | | $ | 983,006 | |
| Ratio of gross expenses to average net assets | | | 0.83 | % | | | 0.84 | % | | | 0.87 | % | | | 0.87 | % | | | 0.88 | % |
| Ratio of net expenses to average net assets | | | 0.83 | % | | | 0.84 | % | | | 0.87 | % | | | 0.87 | % | | | 0.88 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.34 | )% | | | (0.09 | )% | | | 0.06 | % | | | 0.10 | % | | | 0.23 | % |
| Portfolio turnover rate | | | 78.77 | % | | | 89.91 | % | | | 77.04 | % | | | 67.33 | % | | | 72.99 | % |
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
| Alger 35 Fund | | Class Z | |
| | | Year ended 10/31/2021(i) | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | From 3/29/2018 (commencement of operations) to 10/31/2018(ii) | |
| Net asset value, beginning of period | | $ | 17.41 | | | $ | 11.61 | | | $ | 10.38 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss)(iii) | | | (0.01 | ) | | | (0.05 | ) | | | 0.03 | | | | 0.01 | |
| Net realized and unrealized gain on investments | | | 6.95 | | | | 5.87 | | | | 1.31 | | | | 0.37 | |
| Total from investment operations | | | 6.94 | | | | 5.82 | | | | 1.34 | | | | 0.38 | |
| Dividends from net investment income | | –(iv) | | | | (0.02 | ) | | | (0.04 | ) | | | – | |
| Distributions from net realized gains | | | (3.02 | ) | | | – | | | | (0.07 | ) | | | – | |
| Net asset value, end of period | | $ | 21.33 | | | $ | 17.41 | | | $ | 11.61 | | | $ | 10.38 | |
| Total return(v) | | | 44.27 | % | | | 50.22 | % | | | 13.19 | % | | | 3.80 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 44,159 | | | $ | 14,128 | | | $ | 9,094 | | | $ | 7,782 | |
| Ratio of gross expenses to average net assets | | | 0.92 | % | | | 2.02 | % | | | 2.37 | % | | | 2.46 | % |
| Ratio of expense reimbursements to average net assets | | | (0.52 | )% | | | (1.12 | )% | | | (1.97 | )% | | | (2.06 | )% |
| Ratio of net expenses to average net assets | | | 0.40 | % | | | 0.90 | % | | | 0.40 | % | | | 0.40 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.07 | )% | | | 0.36 | % | | | 0.30 | % | | | 0.23 | % |
| Portfolio turnover rate | | | 136.61 | % | | | 121.74 | % | | | 115.25 | % | | | 31.20 | % |
See Notes to Financial Statements.
| (i) | Class P Shares were reclassified as Class Z Shares on May 7, 2021 and after the close of business on October 29, 2021, Class P-2 Shares were converted to Class Z Shares. |
| (ii) | Ratios have been annualized; total return has not been annualized; portfolio turnover is for the seven months then ended. |
| (iii) | Amount was computed based on average shares outstanding during the period. |
| (iv) | Amount was more than $(0.01) per share. |
| (v) | Does not reflect the effect of sales charges, if applicable. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Growth & Income Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 43.88 | | | $ | 43.55 | | | $ | 40.77 | | | $ | 39.68 | | | $ | 32.66 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income(i) | | | 0.63 | | | | 0.69 | | | | 0.70 | | | | 0.65 | | | | 0.56 | |
| Net realized and unrealized gain on investments | | | 18.47 | | | | 1.88 | | | | 4.54 | | | | 1.64 | | | | 6.97 | |
| Total from investment operations | | | 19.10 | | | | 2.57 | | | | 5.24 | | | | 2.29 | | | | 7.53 | |
| Dividends from net investment income | | | (0.55 | ) | | | (0.66 | ) | | | (0.61 | ) | | | (0.57 | ) | | | (0.50 | ) |
| Distributions from net realized gains | | | (0.67 | ) | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) |
| Net asset value, end of period | | $ | 61.76 | | | $ | 43.88 | | | $ | 43.55 | | | $ | 40.77 | | | $ | 39.68 | |
| Total return(ii) | | | 44.12 | % | | | 5.98 | % | | | 13.94 | % | | | 5.78 | % | | | 23.22 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 106,439 | | | $ | 74,251 | | | $ | 74,924 | | | $ | 70,859 | | | $ | 72,427 | |
| Ratio of gross expenses to average net assets | | | 0.98 | % | | | 1.06 | % | | | 1.07 | % | | | 1.06 | % | | | 1.19 | % |
| Ratio of net expenses to average net assets | | | 0.98 | % | | | 1.06 | % | | | 1.07 | % | | | 1.06 | % | | | 1.19 | % |
| Ratio of net investment income to average net assets | | | 1.15 | % | | | 1.60 | % | | | 1.72 | % | | | 1.59 | % | | | 1.52 | % |
| Portfolio turnover rate | | | 8.40 | % | | | 9.29 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % |
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
| Alger Growth & Income Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 43.22 | | | $ | 42.93 | | | $ | 40.20 | | | $ | 39.14 | | | $ | 32.23 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income(i) | | | 0.21 | | | | 0.36 | | | | 0.39 | | | | 0.34 | | | | 0.28 | |
| Net realized and unrealized gain on investments | | | 18.18 | | | | 1.85 | | | | 4.49 | | | | 1.60 | | | | 6.88 | |
| Total from investment operations | | | 18.39 | | | | 2.21 | | | | 4.88 | | | | 1.94 | | | | 7.16 | |
| Dividends from net investment income | | | (0.17 | ) | | | (0.34 | ) | | | (0.30 | ) | | | (0.25 | ) | | | (0.24 | ) |
| Distributions from net realized gains | | | (0.67 | ) | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) |
| Net asset value, end of period | | $ | 60.77 | | | $ | 43.22 | | | $ | 42.93 | | | $ | 40.20 | | | $ | 39.14 | |
| Total return(ii) | | | 43.01 | % | | | 5.19 | % | | | 13.12 | % | | | 4.96 | % | | | 22.28 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 18,194 | | | $ | 13,127 | | | $ | 14,946 | | | $ | 16,074 | | | $ | 22,266 | |
| Ratio of gross expenses to average net assets | | | 1.73 | % | | | 1.81 | % | | | 1.82 | % | | | 1.82 | % | | | 1.94 | % |
| Ratio of net expenses to average net assets | | | 1.73 | % | | | 1.81 | % | | | 1.82 | % | | | 1.82 | % | | | 1.94 | % |
| Ratio of net investment income to average net assets | | | 0.40 | % | | | 0.86 | % | | | 0.97 | % | | | 0.84 | % | | | 0.76 | % |
| Portfolio turnover rate | | | 8.40 | % | | | 9.29 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % |
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
| Alger Growth & Income Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 43.94 | | | $ | 43.60 | | | $ | 40.81 | | | $ | 39.71 | | | $ | 32.69 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income(i) | | | 0.80 | | | | 0.86 | | | | 0.85 | | | | 0.80 | | | | 0.65 | |
| Net realized and unrealized gain on investments | | | 18.49 | | | | 1.88 | | | | 4.56 | | | | 1.64 | | | | 6.99 | |
| Total from investment operations | | | 19.29 | | | | 2.74 | | | | 5.41 | | | | 2.44 | | | | 7.64 | |
| Dividends from net investment income | | | (0.72 | ) | | | (0.82 | ) | | | (0.77 | ) | | | (0.71 | ) | | | (0.61 | ) |
| Distributions from net realized gains | | | (0.67 | ) | | | (1.58 | ) | | | (1.85 | ) | | | (0.63 | ) | | | (0.01 | ) |
| Net asset value, end of period | | $ | 61.84 | | | $ | 43.94 | | | $ | 43.60 | | | $ | 40.81 | | | $ | 39.71 | |
| Total return(ii) | | | 44.54 | % | | | 6.39 | % | | | 14.39 | % | | | 6.16 | % | | | 23.55 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 38,021 | | | $ | 21,672 | | | $ | 26,979 | | | $ | 24,604 | | | $ | 22,487 | |
| Ratio of gross expenses to average net assets | | | 0.66 | % | | | 0.73 | % | | | 0.76 | % | | | 0.76 | % | | | 0.90 | % |
| Ratio of expense reimbursements to average net assets | | –(iii) | | | | (0.04 | )% | | | (0.07 | )% | | | (0.05 | )% | | | – | |
| Ratio of net expenses to average net assets | | | 0.66 | % | | | 0.69 | % | | | 0.69 | % | | | 0.71 | % | | | 0.90 | % |
| Ratio of net investment income to average net assets | | | 1.45 | % | | | 2.00 | % | | | 2.10 | % | | | 1.96 | % | | | 1.75 | % |
| Portfolio turnover rate | | | 8.40 | % | | | 9.29 | % | | | 7.30 | % | | | 11.05 | % | | | 7.78 | % |
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. |
| (iii) | Amount was less than 0.005%. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Growth Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 19.29 | | | $ | 14.81 | | | $ | 14.13 | | | $ | 13.47 | | | $ | 10.20 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | 0.48 | | | | (0.12 | ) | | | (0.09 | ) | | | (0.11 | ) | | | (0.07 | ) |
| Net realized and unrealized gain on investments | | | 7.58 | | | | 5.80 | | | | 1.48 | | | | 0.88 | | | | 3.34 | |
| Total from investment operations | | | 8.06 | | | | 5.68 | | | | 1.39 | | | | 0.77 | | | | 3.27 | |
| Distributions from net realized gains | | | (2.15 | ) | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | |
| Net asset value, end of period | | $ | 25.20 | | | $ | 19.29 | | | $ | 14.81 | | | $ | 14.13 | | | $ | 13.47 | |
| Total return(ii) | | 44.05%(iii) | | | | 41.34 | % | | | 10.95 | % | | | 5.78 | % | | | 32.06 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 259,895 | | | $ | 187,552 | | | $ | 139,110 | | | $ | 138,370 | | | $ | 136,795 | |
| Ratio of gross expenses to average net assets | | | 1.21 | % | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % | | | 1.32 | % |
| Ratio of net expenses to average net assets | | | 1.21 | % | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % | | | 1.32 | % |
| Ratio of net investment income (loss) to average net assets | | | 2.15 | % | | | (0.76 | )% | | | (0.65 | )% | | | (0.77 | )% | | | (0.55 | )% |
| Portfolio turnover rate | | | 170.96 | % | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Mid Cap Growth Fund received a Fair Fund distribution of $9,346,397, which contributed approximately 3.89% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Growth Fund | | Class B | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 14.70 | | | $ | 11.55 | | | $ | 11.22 | | | $ | 10.80 | | | $ | 8.23 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | 0.35 | | | | (0.08 | ) | | | (0.10 | ) | | | (0.17 | ) | | | (0.12 | ) |
| Net realized and unrealized gain on investments | | | 5.70 | | | | 4.43 | | | | 1.14 | | | | 0.70 | | | | 2.69 | |
| Total from investment operations | | | 6.05 | | | | 4.35 | | | | 1.04 | | | | 0.53 | | | | 2.57 | |
| Distributions from net realized gains | | | (2.15 | ) | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | |
| Net asset value, end of period | | $ | 18.60 | | | $ | 14.70 | | | $ | 11.55 | | | $ | 11.22 | | | $ | 10.80 | |
| Total return(ii) | | 44.24%(iii) | | | | 41.41 | % | | | 10.66 | % | | | 4.98 | % | | | 31.23 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 18,276 | | | $ | 15,411 | | | $ | 13,772 | | | $ | 15,361 | | | $ | 18,375 | |
| Ratio of gross expenses to average net assets | | | 1.93 | % | | | 2.03 | % | | | 2.04 | % | | | 2.05 | % | | | 2.05 | % |
| Ratio of expense reimbursements to average net assets | | | (0.76 | )% | | | (0.82 | )% | | | (0.47 | )% | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.17 | % | | | 1.21 | % | | | 1.57 | % | | | 2.05 | % | | | 2.05 | % |
| Ratio of net investment income (loss) to average net assets | | | 2.08 | % | | | (0.66 | )% | | | (0.92 | )% | | | (1.50 | )% | | | (1.28 | )% |
| Portfolio turnover rate | | | 170.96 | % | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Mid Cap Growth Fund received a Fair Fund distribution of $9,346,397, which contributed approximately 3.89% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Growth Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 14.26 | | | $ | 11.33 | | | $ | 11.08 | | | $ | 10.67 | | | $ | 8.15 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | 0.23 | | | | (0.18 | ) | | | (0.16 | ) | | | (0.18 | ) | | | (0.13 | ) |
| Net realized and unrealized gain on investments | | | 5.48 | | | | 4.31 | | | | 1.12 | | | | 0.70 | | | | 2.65 | |
| Total from investment operations | | | 5.71 | | | | 4.13 | | | | 0.96 | | | | 0.52 | | | | 2.52 | |
| Distributions from net realized gains | | | (2.15 | ) | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | |
| Net asset value, end of period | | $ | 17.82 | | | $ | 14.26 | | | $ | 11.33 | | | $ | 11.08 | | | $ | 10.67 | |
| Total return(ii) | | 42.91%(iii) | | | | 40.26 | % | | | 10.03 | % | | | 4.94 | % | | | 30.92 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 8,244 | | | $ | 5,691 | | | $ | 6,014 | | | $ | 7,647 | | | $ | 15,438 | |
| Ratio of gross expenses to average net assets | | | 2.00 | % | | | 2.10 | % | | | 2.14 | % | | | 2.11 | % | | | 2.13 | % |
| Ratio of net expenses to average net assets | | | 2.00 | % | | | 2.10 | % | | | 2.14 | % | | | 2.11 | % | | | 2.13 | % |
| Ratio of net investment income (loss) to average net assets | | | 1.41 | % | | | (1.52 | )% | | | (1.48 | )% | | | (1.55 | )% | | | (1.35 | )% |
| Portfolio turnover rate | | | 170.96 | % | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Mid Cap Growth Fund received a Fair Fund distribution of $9,346,397, which contributed approximately 3.89% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Growth Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 19.63 | | | $ | 15.01 | | | $ | 14.27 | | | $ | 13.56 | | | $ | 10.24 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | 0.63 | | | | (0.07 | ) | | | (0.06 | ) | | | (0.07 | ) | | | (0.04 | ) |
| Net realized and unrealized gain on investments | | | 7.67 | | | | 5.89 | | | | 1.51 | | | | 0.89 | | | | 3.36 | |
| Total from investment operations | | | 8.30 | | | | 5.82 | | | | 1.45 | | | | 0.82 | | | | 3.32 | |
| Distributions from net realized gains | | | (2.15 | ) | | | (1.20 | ) | | | (0.71 | ) | | | (0.11 | ) | | | – | |
| Net asset value, end of period | | $ | 25.78 | | | $ | 19.63 | | | $ | 15.01 | | | $ | 14.27 | | | $ | 13.56 | |
| Total return(ii) | | 44.55%(iii) | | | | 41.75 | % | | | 11.27 | % | | | 6.03 | % | | | 32.52 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 52,746 | | | $ | 26,804 | | | $ | 17,558 | | | $ | 14,230 | | | $ | 13,306 | |
| Ratio of gross expenses to average net assets | | | 0.92 | % | | | 0.99 | % | | | 1.03 | % | | | 1.03 | % | | | 1.07 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | – | | | | (0.02 | )% |
| Ratio of net expenses to average net assets | | | 0.92 | % | | | 0.99 | % | | | 1.03 | % | | | 1.03 | % | | | 1.05 | % |
| Ratio of net investment income (loss) to average net assets | | | 2.75 | % | | | (0.46 | )% | | | (0.38 | )% | | | (0.49 | )% | | | (0.29 | )% |
| Portfolio turnover rate | | | 170.96 | % | | | 181.73 | % | | | 182.97 | % | | | 125.34 | % | | | 162.65 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Mid Cap Growth Fund received a Fair Fund distribution of $9,346,397, which contributed approximately 3.89% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Mid Cap Focus Fund | | Class A | |
| | | From 7/29/2021 (commencement of operations) to 10/31/2021(i) | |
| Net asset value, beginning of period | | $ | 20.67 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | |
| Net investment loss(ii) | | | (0.04 | ) |
| Net realized and unrealized gain on investments | | | 2.80 | |
| Total from investment operations | | | 2.76 | |
| Net asset value, end of period | | $ | 23.43 | |
| Total return(iii) | | | 13.35 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | |
| Net assets, end of period (000's omitted) | | $ | 1,669 | |
| Ratio of gross expenses to average net assets | | | 0.96 | % |
| Ratio of net expenses to average net assets | | | 0.96 | % |
| Ratio of net investment loss to average net assets | | | (0.72 | )% |
| Portfolio turnover rate | | | 250.31 | % |
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
| Alger Mid Cap Focus Fund | | Class C | |
| | | From 7/29/2021 (commencement of operations) to 10/31/2021(i) | |
| Net asset value, beginning of period | | $ | 20.67 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | |
| Net investment loss(ii) | | | (0.09 | ) |
| Net realized and unrealized gain on investments | | | 2.80 | |
| Total from investment operations | | | 2.71 | |
| Net asset value, end of period | | $ | 23.38 | |
| Total return(iii) | | | 13.16 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | |
| Net assets, end of period (000's omitted) | | $ | 2,317 | |
| Ratio of gross expenses to average net assets | | | 1.76 | % |
| Ratio of net expenses to average net assets | | | 1.76 | % |
| Ratio of net investment loss to average net assets | | | (1.50 | )% |
| Portfolio turnover rate | | | 250.31 | % |
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
| Alger Mid Cap Focus Fund | | Class I | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | From 6/14/2019 (commencement of operations) to 10/31/2019(i) | |
| Net asset value, beginning of period | | $ | 15.10 | | | $ | 9.70 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.17 | ) | | | (0.14 | ) | | | (0.04 | ) |
| Net realized and unrealized gain (loss) on investments | | | 8.76 | | | | 5.54 | | | | (0.26 | ) |
| Total from investment operations | | | 8.59 | | | | 5.40 | | | | (0.30 | ) |
| Distributions from net realized gains | | | (0.26 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 23.43 | | | $ | 15.10 | | | $ | 9.70 | |
| Total return(iii) | | | 57.36 | % | | | 55.35 | % | | | (3.00 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 145,539 | | | $ | 67,796 | | | $ | 2,023 | |
| Ratio of gross expenses to average net assets | | | 0.95 | % | | | 1.14 | % | | | 1.91 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | (0.03 | )% | | | (0.71 | )% |
| Ratio of net expenses to average net assets | | | 0.95 | % | | | 1.11 | % | | | 1.20 | % |
| Ratio of net investment loss to average net assets | | | (0.85 | )% | | | (1.04 | )% | | | (0.97 | )% |
| Portfolio turnover rate | | | 250.31 | % | | | 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
| Alger Mid Cap Focus Fund | | Class Y | |
| | | From 2/26/2021 (commencement of operations) to 10/31/2021(i) | |
| Net asset value, beginning of period | | $ | 20.65 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | |
| Net investment loss(ii) | | | (0.08 | ) |
| Net realized and unrealized gain on investments | | | 2.99 | |
| Total from investment operations | | | 2.91 | |
| Net asset value, end of period | | $ | 23.56 | |
| Total return(iii) | | | 14.09 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | |
| Net assets, end of period (000's omitted) | | $ | 137 | |
| Ratio of gross expenses to average net assets | | | 0.72 | % |
| Ratio of expense reimbursements to average net assets | | | (0.02 | )% |
| Ratio of net expenses to average net assets | | | 0.70 | % |
| Ratio of net investment loss to average net assets | | | (0.57 | )% |
| Portfolio turnover rate | | | 250.31 | % |
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
| Alger Mid Cap Focus Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | From 6/14/2019 (commencement of operations) to 10/31/2019(i) | |
| Net asset value, beginning of period | | $ | 15.15 | | | $ | 9.71 | | | $ | 10.00 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.12 | ) | | | (0.10 | ) | | | (0.03 | ) |
| Net realized and unrealized gain (loss) on investments | | | 8.80 | | | | 5.54 | | | | (0.26 | ) |
| Total from investment operations | | | 8.68 | | | | 5.44 | | | | (0.29 | ) |
| Distributions from net realized gains | | | (0.26 | ) | | | – | | | | – | |
| Net asset value, end of period | | $ | 23.57 | | | $ | 15.15 | | | $ | 9.71 | |
| Total return(iii) | | | 57.77 | % | | | 55.70 | % | | | (2.80 | )% |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 795,479 | | | $ | 307,532 | | | $ | 28,230 | |
| Ratio of gross expenses to average net assets | | | 0.68 | % | | | 0.91 | % | | | 1.86 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | (0.05 | )% | | | (0.87 | )% |
| Ratio of net expenses to average net assets | | | 0.68 | % | | | 0.86 | % | | | 0.99 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.58 | )% | | | (0.77 | )% | | | (0.74 | )% |
| Portfolio turnover rate | | | 250.31 | % | | | 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
Alger Weatherbie Specialized Growth Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 17.46 | | | $ | 13.30 | | | $ | 13.08 | | | $ | 12.87 | | | $ | 10.64 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.23 | ) | | | (0.16 | ) | | | (0.14 | ) | | | (0.15 | ) | | | (0.12 | ) |
| Net realized and unrealized gain on investments | | | 8.70 | | | | 4.88 | | | | 1.39 | | | | 1.90 | | | | 3.58 | |
| Total from investment operations | | | 8.47 | | | | 4.72 | | | | 1.25 | | | | 1.75 | | | | 3.46 | |
| Distributions from net realized gains | | | (0.97 | ) | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) |
| Net asset value, end of period | | $ | 24.96 | | | $ | 17.46 | | | $ | 13.30 | | | $ | 13.08 | | | $ | 12.87 | |
| Total return(ii) | | | 49.80 | % | | | 36.57 | % | | | 11.57 | % | | | 15.02 | % | | | 35.64 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 259,394 | | | $ | 174,709 | | | $ | 140,368 | | | $ | 111,456 | | | $ | 84,644 | |
| Ratio of gross expenses to average net assets | | | 1.20 | % | | | 1.27 | % | | | 1.31 | % | | | 1.33 | % | | | 1.35 | % |
| Ratio of net expenses to average net assets | | | 1.20 | % | | | 1.27 | % | | | 1.31 | % | | | 1.33 | % | | | 1.35 | % |
| Ratio of net investment loss to average net assets | | | (1.03 | )% | | | (1.09 | )% | | | (1.08 | )% | | | (1.16 | )% | | | (1.02 | )% |
| Portfolio turnover rate | | | 61.53 | % | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % |
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
Alger Weatherbie Specialized Growth Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 11.52 | | | $ | 9.01 | | | $ | 9.30 | | | $ | 9.65 | | | $ | 8.32 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.25 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.18 | ) | | | (0.15 | ) |
| Net realized and unrealized gain on investments | | | 5.63 | | | | 3.26 | | | | 0.91 | | | | 1.37 | | | | 2.71 | |
| Total from investment operations | | | 5.38 | | | | 3.07 | | | | 0.74 | | | | 1.19 | | | | 2.56 | |
| Distributions from net realized gains | | | (0.97 | ) | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) |
| Net asset value, end of period | | $ | 15.93 | | | $ | 11.52 | | | $ | 9.01 | | | $ | 9.30 | | | $ | 9.65 | |
| Total return(ii) | | | 48.68 | % | | | 35.62 | % | | | 10.70 | % | | | 14.11 | % | | | 34.64 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 103,331 | | | $ | 64,497 | | | $ | 44,908 | | | $ | 36,325 | | | $ | 31,651 | |
| Ratio of gross expenses to average net assets | | | 1.95 | % | | | 2.03 | % | | | 2.05 | % | | | 2.08 | % | | | 2.12 | % |
| Ratio of net expenses to average net assets | | | 1.95 | % | | | 2.03 | % | | | 2.05 | % | | | 2.08 | % | | | 2.12 | % |
| Ratio of net investment loss to average net assets | | | (1.79 | )% | | | (1.85 | )% | | | (1.82 | )% | | | (1.91 | )% | | | (1.79 | )% |
| Portfolio turnover rate | | | 61.53 | % | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % |
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
Alger Weatherbie Specialized Growth Fund | | Class I | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 17.94 | | | $ | 13.64 | | | $ | 13.38 | | | $ | 13.14 | | | $ | 10.84 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.23 | ) | | | (0.16 | ) | | | (0.14 | ) | | | (0.16 | ) | | | (0.11 | ) |
| Net realized and unrealized gain on investments | | | 8.93 | | | | 5.02 | | | | 1.43 | | | | 1.94 | | | | 3.64 | |
| Total from investment operations | | | 8.70 | | | | 4.86 | | | | 1.29 | | | | 1.78 | | | | 3.53 | |
| Distributions from net realized gains | | | (0.97 | ) | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) |
| Net asset value, end of period | | $ | 25.67 | | | $ | 17.94 | | | $ | 13.64 | | | $ | 13.38 | | | $ | 13.14 | |
| Total return(ii) | | | 49.81 | % | | | 36.69 | % | | | 11.61 | % | | | 14.94 | % | | | 35.63 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 77,214 | | | $ | 66,294 | | | $ | 58,615 | | | $ | 35,669 | | | $ | 23,374 | |
| Ratio of gross expenses to average net assets | | | 1.19 | % | | | 1.24 | % | | | 1.26 | % | | | 1.35 | % | | | 1.35 | % |
| Ratio of net expenses to average net assets | | | 1.19 | % | | | 1.24 | % | | | 1.26 | % | | | 1.35 | % | | | 1.35 | % |
| Ratio of net investment loss to average net assets | | | (1.02 | )% | | | (1.07 | )% | | | (1.03 | )% | | | (1.18 | )% | | | (0.99 | )% |
| Portfolio turnover rate | | | 61.53 | % | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % |
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
Alger Weatherbie Specialized Growth Fund | | Class Y | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | From 8/31/2017 (commencement of operations) to 10/31/2017(i) | |
| Net asset value, beginning of period | | $ | 18.17 | | | $ | 13.77 | | | $ | 13.44 | | | $ | 13.14 | | | $ | 12.27 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(ii) | | | (0.16 | ) | | | (0.11 | ) | | | (0.09 | ) | | | (0.10 | ) | | | (0.02 | ) |
| Net realized and unrealized gain on investments | | | 9.08 | | | | 5.07 | | | | 1.45 | | | | 1.94 | | | | 0.89 | |
| Total from investment operations | | | 8.92 | | | | 4.96 | | | | 1.36 | | | | 1.84 | | | | 0.87 | |
| Distributions from net realized gains | | | (0.97 | ) | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | – | |
| Net asset value, end of period | | $ | 26.12 | | | $ | 18.17 | | | $ | 13.77 | | | $ | 13.44 | | | $ | 13.14 | |
| Total return(iii) | | | 50.35 | % | | | 37.08 | % | | | 12.12 | % | | | 15.45 | % | | | 7.09 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 61,163 | | | $ | 32,702 | | | $ | 12,903 | | | $ | 3,832 | | | $ | 107 | |
| Ratio of gross expenses to average net assets | | | 0.89 | % | | | 0.94 | % | | | 0.97 | % | | | 1.05 | % | | | 9.54 | % |
| Ratio of expense reimbursements to average net assets | | | (0.02 | )% | | | (0.07 | )% | | | (0.10 | )% | | | (0.18 | )% | | | (8.67 | )% |
| Ratio of net expenses to average net assets | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % |
| Ratio of net investment loss to average net assets | | | (0.70 | )% | | | (0.69 | )% | | | (0.64 | )% | | | (0.67 | )% | | | (0.78 | )% |
| Portfolio turnover rate | | | 61.53 | % | | | 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
Alger Weatherbie Specialized Growth Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 18.68 | | | $ | 14.15 | | | $ | 13.80 | | | $ | 13.46 | | | $ | 11.04 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.17 | ) | | | (0.12 | ) | | | (0.10 | ) | | | (0.12 | ) | | | (0.09 | ) |
Net realized and unrealized gain on investments | | | 9.33 | | | | 5.21 | | | | 1.48 | | | | 2.00 | | | | 3.74 | |
Total from investment operations | | | 9.16 | | | | 5.09 | | | | 1.38 | | | | 1.88 | | | | 3.65 | |
Distributions from net realized gains | | | (0.97 | ) | | | (0.56 | ) | | | (1.03 | ) | | | (1.54 | ) | | | (1.23 | ) |
Net asset value, end of period | | $ | 26.87 | | | $ | 18.68 | | | $ | 14.15 | | | $ | 13.80 | | | $ | 13.46 | |
| Total return(ii) | | | 50.32 | % | | | 37.00 | % | | | 11.94 | % | | | 15.37 | % | | | 36.11 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 1,277,576 | | | $ | 620,005 | | | $ | 284,393 | | | $ | 147,665 | | | $ | 52,736 | |
Ratio of gross expenses to average net assets | | | 0.88 | % | | | 0.94 | % | | | 0.97 | % | | | 1.00 | % | | | 1.06 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | (0.01 | )% | | | – | |
Ratio of net expenses to average net assets | | | 0.88 | % | | | 0.94 | % | | | 0.97 | % | | | 0.99 | % | | | 1.06 | % |
| Ratio of net investment loss to average net assets | | | (0.72 | )% | | | (0.76 | )% | | | (0.73 | )% | | | (0.82 | )% | | | (0.77 | )% |
Portfolio turnover rate | | | 61.53 | % | | | 66.84 | % | | | 64.83 | % | | | 42.56 | % | | | 157.39 | % |
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
| Alger Small Cap Growth Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 12.59 | | | $ | 9.34 | | | $ | 9.54 | | | $ | 8.40 | | | $ | 6.15 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.07 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.10 | ) | | | (0.06 | ) |
Net realized and unrealized gain on investments | | | 3.76 | | | | 3.91 | | | | 0.85 | | | | 1.34 | | | | 2.31 | |
Total from investment operations | | | 3.69 | | | | 3.79 | | | | 0.74 | | | | 1.24 | | | | 2.25 | |
Distributions from net realized gains | | | (0.07 | ) | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | |
Net asset value, end of period | | $ | 16.21 | | | $ | 12.59 | | | $ | 9.34 | | | $ | 9.54 | | | $ | 8.40 | |
| Total return(ii) | | 29.27%(iii) | | | | 42.80 | % | | | 9.94 | % | | | 14.94 | % | | | 36.59 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 262,708 | | | $ | 187,489 | | | $ | 116,308 | | | $ | 111,271 | | | $ | 102,318 | |
Ratio of gross expenses to average net assets | | | 1.23 | % | | | 1.33 | % | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % |
Ratio of net expenses to average net assets | | | 1.23 | % | | | 1.33 | % | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % |
| Ratio of net investment loss to average net assets | | | (0.46 | )% | | | (1.11 | )% | | | (1.17 | )% | | | (1.06 | )% | | | (0.88 | )% |
Portfolio turnover rate | | | 34.85 | % | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Small Cap Growth Fund received a Fair Fund distribution of $3,738,004, which contributed approximately 0.72% to its annual return,which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Growth Fund | | Class B | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 8.88 | | | $ | 6.74 | | | $ | 7.20 | | | $ | 6.42 | | | $ | 4.73 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.05 | ) | | | (0.08 | ) | | | (0.11 | ) | | | (0.13 | ) | | | (0.09 | ) |
Net realized and unrealized gain on investments | | | 2.65 | | | | 2.76 | | | | 0.59 | | | | 1.01 | | | | 1.78 | |
Total from investment operations | | | 2.60 | | | | 2.68 | | | | 0.48 | | | | 0.88 | | | | 1.69 | |
Distributions from net realized gains | | | (0.07 | ) | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | |
Net asset value, end of period | | $ | 11.41 | | | $ | 8.88 | | | $ | 6.74 | | | $ | 7.20 | | | $ | 6.42 | |
| Total return(ii) | | 29.38%(iii) | | | | 42.68 | % | | | 9.51 | % | | | 13.93 | % | | | 35.73 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 5,821 | | | $ | 5,095 | | | $ | 4,523 | | | $ | 4,958 | | | $ | 5,397 | |
Ratio of gross expenses to average net assets | | | 1.96 | % | | | 2.07 | % | | | 2.19 | % | | | 2.23 | % | | | 2.19 | % |
| Ratio of expense reimbursements to average net assets | | | (0.74 | )% | | | (0.73 | )% | | | (0.41 | )% | | | – | | | | – | |
Ratio of net expenses to average net assets | | | 1.22 | % | | | 1.34 | % | | | 1.78 | % | | | 2.23 | % | | | 2.19 | % |
| Ratio of net investment loss to average net assets | | | (0.48 | )% | | | (1.11 | )% | | | (1.57 | )% | | | (1.90 | )% | | | (1.68 | )% |
Portfolio turnover rate | | | 34.85 | % | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Small Cap Growth Fund received a Fair Fund distribution of $3,738,004, which contributed approximately 0.72% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Growth Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 8.44 | | | $ | 6.47 | | | $ | 6.99 | | | $ | 6.22 | | | $ | 4.59 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.13 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.09 | ) |
Net realized and unrealized gain on investments | | | 2.52 | | | | 2.65 | | | | 0.55 | | | | 0.99 | | | | 1.72 | |
Total from investment operations | | | 2.39 | | | | 2.51 | | | | 0.42 | | | | 0.87 | | | | 1.63 | |
Distributions from net realized gains | | | (0.07 | ) | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | |
Net asset value, end of period | | $ | 10.76 | | | $ | 8.44 | | | $ | 6.47 | | | $ | 6.99 | | | $ | 6.22 | |
| Total return(ii) | | 28.41%(iii) | | | | 41.76 | % | | | 8.87 | % | | | 14.22 | % | | | 35.51 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 39,148 | | | $ | 18,365 | | | $ | 6,257 | | | $ | 5,837 | | | $ | 8,007 | |
Ratio of gross expenses to average net assets | | | 2.00 | % | | | 2.09 | % | | | 2.20 | % | | | 2.16 | % | | | 2.17 | % |
Ratio of net expenses to average net assets | | | 2.00 | % | | | 2.09 | % | | | 2.20 | % | | | 2.16 | % | | | 2.17 | % |
| Ratio of net investment loss to average net assets | | | (1.21 | )% | | | (1.90 | )% | | | (1.98 | )% | | | (1.82 | )% | | | (1.64 | )% |
Portfolio turnover rate | | | 34.85 | % | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Small Cap Growth Fund received a Fair Fund distribution of $3,738,004, which contributed approximately 0.72% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Growth Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 13.10 | | | $ | 9.66 | | | $ | 9.80 | | | $ | 8.60 | | | $ | 6.27 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.02 | ) | | | (0.10 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.04 | ) |
Net realized and unrealized gain on investments | | | 3.91 | | | | 4.08 | | | | 0.87 | | | | 1.36 | | | | 2.37 | |
Total from investment operations | | | 3.89 | | | | 3.98 | | | | 0.80 | | | | 1.30 | | | | 2.33 | |
Distributions from net realized gains | | | (0.07 | ) | | | (0.54 | ) | | | (0.94 | ) | | | (0.10 | ) | | | – | |
Net asset value, end of period | | $ | 16.92 | | | $ | 13.10 | | | $ | 9.66 | | | $ | 9.80 | | | $ | 8.60 | |
| Total return(ii) | | 29.66%(iii) | | | | 43.38 | % | | | 10.33 | % | | | 15.30 | % | | | 37.16 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 383,748 | | | $ | 179,276 | | | $ | 21,782 | | | $ | 13,179 | | | $ | 26,953 | |
Ratio of gross expenses to average net assets | | | 0.93 | % | | | 1.00 | % | | | 1.12 | % | | | 1.12 | % | | | 1.08 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | (0.03 | )% | | | (0.13 | )% | | | (0.13 | )% | | | (0.09 | )% |
Ratio of net expenses to average net assets | | | 0.93 | % | | | 0.97 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % |
| Ratio of net investment loss to average net assets | | | (0.12 | )% | | | (0.81 | )% | | | (0.78 | )% | | | (0.65 | )% | | | (0.50 | )% |
Portfolio turnover rate | | | 34.85 | % | | | 12.67 | % | | | 17.09 | % | | | 28.68 | % | | | 30.32 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Small Cap Growth Fund received a Fair Fund distribution of $3,738,004, which contributed approximately 0.72% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Focus Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 26.22 | | | $ | 19.93 | | | $ | 18.86 | | | $ | 14.91 | | | $ | 11.16 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.31 | ) | | | (0.25 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.11 | ) |
Net realized and unrealized gain on investments | | | 5.83 | | | | 7.03 | | | | 1.41 | | | | 4.26 | | | | 3.86 | |
Total from investment operations | | | 5.52 | | | | 6.78 | | | | 1.22 | | | | 4.09 | | | | 3.75 | |
Dividends from net investment income | | | – | | | | (0.19 | ) | | | – | | | | – | | | | – | |
Distributions from net realized gains | | | – | | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | |
Net asset value, end of period | | $ | 31.74 | | | $ | 26.22 | | | $ | 19.93 | | | $ | 18.86 | | | $ | 14.91 | |
| Total return(ii) | | | 21.05 | % | | | 34.74 | % | | | 6.59 | % | | | 27.72 | % | | | 33.60 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 560,577 | | | $ | 566,606 | | | $ | 523,291 | | | $ | 300,066 | | | $ | 77,791 | |
Ratio of gross expenses to average net assets | | | 1.18 | % | | | 1.22 | % | | | 1.19 | % | | | 1.18 | % | | | 1.22 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | – | | | | (0.02 | )% |
Ratio of net expenses to average net assets | | | 1.18 | % | | | 1.22 | % | | | 1.19 | % | | | 1.18 | % | | | 1.20 | % |
| Ratio of net investment loss to average net assets | | | (0.98 | )% | | | (1.11 | )% | | | (0.95 | )% | | | (0.92 | )% | | | (0.86 | )% |
Portfolio turnover rate | | | 56.71 | % | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % |
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
| Alger Small Cap Focus Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 23.40 | | | $ | 17.85 | | | $ | 17.04 | | | $ | 13.58 | | | $ | 10.25 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.47 | ) | | | (0.37 | ) | | | (0.31 | ) | | | (0.27 | ) | | | (0.20 | ) |
Net realized and unrealized gain on investments | | | 5.19 | | | | 6.30 | | | | 1.27 | | | | 3.87 | | | | 3.53 | |
Total from investment operations | | | 4.72 | | | | 5.93 | | | | 0.96 | | | | 3.60 | | | | 3.33 | |
Dividends from net investment income | | | – | | | | (0.08 | ) | | | – | | | | – | | | | – | |
Distributions from net realized gains | | | – | | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | |
Net asset value, end of period | | $ | 28.12 | | | $ | 23.40 | | | $ | 17.85 | | | $ | 17.04 | | | $ | 13.58 | |
| Total return(ii) | | | 20.17 | % | | | 33.85 | % | | | 5.76 | % | | | 26.82 | % | | | 32.49 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 267,800 | | | $ | 248,577 | | | $ | 212,737 | | | $ | 131,655 | | | $ | 48,345 | |
Ratio of gross expenses to average net assets | | | 1.90 | % | | | 1.94 | % | | | 1.95 | % | | | 1.94 | % | | | 1.97 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | – | | | | (0.02 | )% |
Ratio of net expenses to average net assets | | | 1.90 | % | | | 1.94 | % | | | 1.95 | % | | | 1.94 | % | | | 1.95 | % |
| Ratio of net investment loss to average net assets | | | (1.70 | )% | | | (1.83 | )% | | | (1.71 | )% | | | (1.66 | )% | | | (1.61 | )% |
Portfolio turnover rate | | | 56.71 | % | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % |
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
| Alger Small Cap Focus Fund | | Class I | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 26.93 | | | $ | 20.44 | | | $ | 19.34 | | | $ | 15.28 | | | $ | 11.44 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(i) | | | (0.31 | ) | | | (0.24 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.11 | ) |
Net realized and unrealized gain on investments | | | 5.99 | | | | 7.22 | | | | 1.44 | | | | 4.37 | | | | 3.95 | |
Total from investment operations | | | 5.68 | | | | 6.98 | | | | 1.25 | | | | 4.20 | | | | 3.84 | |
Dividends from net investment income | | | – | | | | (0.19 | ) | | | – | | | | – | | | | – | |
Distributions from net realized gains | | | – | | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | |
Net asset value, end of period | | $ | 32.61 | | | $ | 26.93 | | | $ | 20.44 | | | $ | 19.34 | | | $ | 15.28 | |
Total return(ii) | | | 21.09 | % | | | 34.86 | % | | | 6.58 | % | | | 27.77 | % | | | 33.57 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 421,986 | | | $ | 360,756 | | | $ | 455,937 | | | $ | 340,636 | | | $ | 109,146 | |
Ratio of gross expenses to average net assets | | | 1.14 | % | | | 1.15 | % | | | 1.18 | % | | | 1.17 | % | | | 1.21 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | – | | | | – | | | | (0.01 | )% |
Ratio of net expenses to average net assets | | | 1.14 | % | | | 1.15 | % | | | 1.18 | % | | | 1.17 | % | | | 1.20 | % |
| Ratio of net investment loss to average net assets | | | (0.95 | )% | | | (1.04 | )% | | | (0.93 | )% | | | (0.90 | )% | | | (0.80 | )% |
Portfolio turnover rate | | | 56.71 | % | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % |
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
| Alger Small Cap Focus Fund | | Class Y | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | From 3/1/2017 (commencement of operations) to 10/31/2017(i) | |
Net asset value, beginning of period | | $ | 27.41 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 12.93 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(ii) | | | (0.21 | ) | | | (0.18 | ) | | | (0.14 | ) | | | (0.12 | ) | | | (0.08 | ) |
Net realized and unrealized gain on investments | | | 6.09 | | | | 7.36 | | | | 1.48 | | | | 4.42 | | | | 2.59 | |
Total from investment operations | | | 5.88 | | | | 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 | | $ | 33.29 | | | $ | 27.41 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | |
Total return(iii) | | | 21.45 | % | | | 35.32 | % | | | 6.96 | % | | | 28.13 | % | | | 19.41 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 394,801 | | | $ | 266,570 | | | $ | 94,694 | | | $ | 25,691 | | | $ | 3,279 | |
Ratio of gross expenses to average net assets | | | 0.83 | % | | | 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 | | | 0.83 | % | | | 0.84 | % | | | 0.85 | % | | | 0.88 | % | | | 0.90 | % |
| Ratio of net investment loss to average net assets | | | (0.65 | )% | | | (0.74 | )% | | | (0.64 | )% | | | (0.63 | )% | | | (0.83 | )% |
Portfolio turnover rate | | | 56.71 | % | | | 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)% per share. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Small Cap Focus Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 27.41 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | | | $ | 11.53 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(i) | | | (0.21 | ) | | | (0.18 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.08 | ) |
Net realized and unrealized gain on investments | | | 6.09 | | | | 7.36 | | | | 1.47 | | | | 4.42 | | | | 3.99 | |
Total from investment operations | | | 5.88 | | | | 7.18 | | | | 1.34 | | | | 4.30 | | | | 3.91 | |
Dividends from net investment income | | | – | | | | (0.26 | ) | | | – | | | | – | | | | – | |
Distributions from net realized gains | | | – | | | | (0.30 | ) | | | (0.15 | ) | | | (0.14 | ) | | | – | |
Net asset value, end of period | | $ | 33.29 | | | $ | 27.41 | | | $ | 20.79 | | | $ | 19.60 | | | $ | 15.44 | |
Total return(ii) | | | 21.45 | % | | | 35.30 | % | | | 6.96 | % | | | 28.13 | % | | | 33.91 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 6,195,714 | | | $ | 4,499,832 | | | $ | 2,459,793 | | | $ | 1,329,712 | | | $ | 350,097 | |
Ratio of gross expenses to average net assets | | | 0.83 | % | | | 0.85 | % | | | 0.86 | % | | | 0.87 | % | | | 0.90 | % |
Ratio of net expenses to average net assets | | | 0.83 | % | | | 0.85 | % | | | 0.86 | % | | | 0.87 | % | | | 0.90 | % |
| Ratio of net investment loss to average net assets | | | (0.65 | )% | | | (0.74 | )% | | | (0.62 | )% | | | (0.61 | )% | | | (0.58 | )% |
Portfolio turnover rate | | | 56.71 | % | | | 37.49 | % | | | 48.84 | % | | | 27.04 | % | | | 44.56 | % |
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
| Alger International Focus Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 18.67 | | | $ | 15.51 | | | $ | 14.30 | | | $ | 17.58 | | | $ | 14.58 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(i) | | | (0.11 | ) | | | (0.06 | ) | | | (0.02 | ) | | | 0.06 | | | | 0.13 | |
| Net realized and unrealized gain (loss) on investments | | | 6.56 | | | | 3.91 | | | | 1.66 | | | | (2.46 | ) | | | 3.11 | |
Total from investment operations | | | 6.45 | | | | 3.85 | | | | 1.64 | | | | (2.40 | ) | | | 3.24 | |
Dividends from net investment income | | | – | | | | (0.69 | ) | | | (0.43 | ) | | | (0.88 | ) | | | (0.24 | ) |
Net asset value, end of period | | $ | 25.12 | | | $ | 18.67 | | | $ | 15.51 | | | $ | 14.30 | | | $ | 17.58 | |
Total return(ii) | | 34.87%(iii) | | | | 25.69 | % | | | 11.99 | % | | | (14.35 | )% | | | 22.63 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 158,223 | | | $ | 120,832 | | | $ | 100,814 | | | $ | 98,105 | | | $ | 119,477 | |
Ratio of gross expenses to average net assets | | | 1.22 | % | | | 1.34 | % | | | 1.37 | % | | | 1.29 | % | | | 1.34 | % |
Ratio of net expenses to average net assets | | | 1.22 | % | | | 1.34 | % | | | 1.37 | % | | | 1.29 | % | | | 1.34 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.49 | )% | | | (0.37 | )% | | | (0.11 | )% | | | 0.38 | % | | | 0.83 | % |
Portfolio turnover rate | | | 75.27 | % | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger International Focus Fund received a Fair Fund distribution of $159,091, which contributed approximately 0.11% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger International Focus Fund | | Class B | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 16.19 | | | $ | 13.44 | | | $ | 12.38 | | | $ | 15.35 | | | $ | 12.76 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.08 | ) | | | (0.02 | ) | | | (0.04 | ) | | | (0.06 | ) | | | 0.02 | |
| Net realized and unrealized gain (loss) on investments | | | 5.70 | | | | 3.38 | | | | 1.44 | | | | (2.13 | ) | | | 2.73 | |
| Total from investment operations | | | 5.62 | | | | 3.36 | | | | 1.40 | | | | (2.19 | ) | | | 2.75 | |
| Dividends from net investment income | | | – | | | | (0.61 | ) | | | (0.34 | ) | | | (0.78 | ) | | | (0.16 | ) |
| Net asset value, end of period | | $ | 21.81 | | | $ | 16.19 | | | $ | 13.44 | | | $ | 12.38 | | | $ | 15.35 | |
| Total return(ii) | | 35.02%(iii) | | | | 25.83 | % | | | 11.82 | % | | | (15.00 | )% | | | 21.71 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 22,147 | | | $ | 18,427 | | | $ | 17,646 | | | $ | 17,639 | | | $ | 24,777 | |
| Ratio of gross expenses to average net assets | | | 1.94 | % | | | 2.05 | % | | | 2.09 | % | | | 2.01 | % | | | 2.05 | % |
| Ratio of expense reimbursements to average net assets | | | (0.82 | )% | | | (0.88 | )% | | | (0.51 | )% | | | – | | | | – | |
| Ratio of net expenses to average net assets | | | 1.12 | % | | | 1.17 | % | | | 1.58 | % | | | 2.01 | % | | | 2.05 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.39 | )% | | | (0.18 | )% | | | (0.30 | )% | | | (0.40 | )% | | | 0.13 | % |
| Portfolio turnover rate | | | 75.27 | % | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger International Focus Fund received a Fair Fund distribution of $159,091, which contributed approximately 0.11% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger International Focus Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 15.68 | | | $ | 13.11 | | | $ | 12.07 | | | $ | 14.98 | | | $ | 12.44 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.24 | ) | | | (0.15 | ) | | | (0.12 | ) | | | (0.06 | ) | | | 0.01 | |
| Net realized and unrealized gain (loss) on investments | | | 5.50 | | | | 3.29 | | | | 1.41 | | | | (2.09 | ) | | | 2.66 | |
| Total from investment operations | | | 5.26 | | | | 3.14 | | | | 1.29 | | | | (2.15 | ) | | | 2.67 | |
| Dividends from net investment income | | | – | | | | (0.57 | ) | | | (0.25 | ) | | | (0.76 | ) | | | (0.13 | ) |
| Net asset value, end of period | | $ | 20.94 | | | $ | 15.68 | | | $ | 13.11 | | | $ | 12.07 | | | $ | 14.98 | |
| Total return(ii) | | 33.86%(iii) | | | | 24.68 | % | | | 11.07 | % | | | (15.08 | )% | | | 21.70 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 4,368 | | | $ | 2,760 | | | $ | 3,603 | | | $ | 4,712 | | | $ | 12,130 | |
| Ratio of gross expenses to average net assets | | | 1.97 | % | | | 2.13 | % | | | 2.23 | % | | | 2.09 | % | | | 2.13 | % |
| Ratio of net expenses to average net assets | | | 1.97 | % | | | 2.13 | % | | | 2.23 | % | | | 2.09 | % | | | 2.13 | % |
| Ratio of net investment income (loss) to average net assets | | | (1.23 | )% | | | (1.13 | )% | | | (0.99 | )% | | | (0.41 | )% | | | 0.06 | % |
| Portfolio turnover rate | | | 75.27 | % | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger International Focus Fund received a Fair Fund distribution of $159,091, which contributed approximately 0.11% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger International Focus Fund | | Class I | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 18.72 | | | $ | 15.54 | | | $ | 14.31 | | | $ | 17.54 | | | $ | 14.55 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.10 | ) | | | (0.02 | ) | | | 0.01 | | | | 0.09 | | | | 0.17 | |
| Net realized and unrealized gain (loss) on investments | | | 6.58 | | | | 3.93 | | | | 1.67 | | | | (2.48 | ) | | | 3.09 | |
| Total from investment operations | | | 6.48 | | | | 3.91 | | | | 1.68 | | | | (2.39 | ) | | | 3.26 | |
| Dividends from net investment income | | | – | | | | (0.73 | ) | | | (0.45 | ) | | | (0.84 | ) | | | (0.27 | ) |
| Net asset value, end of period | | $ | 25.20 | | | $ | 18.72 | | | $ | 15.54 | | | $ | 14.31 | | | $ | 17.54 | |
| Total return(ii) | | 34.94%(iii) | | | | 25.98 | % | | | 12.41 | % | | | (14.27 | )% | | | 22.84 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 591 | | | $ | 642 | | | $ | 970 | | | $ | 2,156 | | | $ | 1,742 | |
| Ratio of gross expenses to average net assets | | | 1.24 | % | | | 1.34 | % | | | 1.48 | % | | | 1.19 | % | | | 1.48 | % |
| Ratio of expense reimbursements to average net assets | | | (0.05 | )% | | | (0.27 | )% | | | (0.36 | )% | | | (0.04 | )% | | | (0.33 | )% |
| Ratio of net expenses to average net assets | | | 1.19 | % | | | 1.07 | % | | | 1.12 | % | | | 1.15 | % | | | 1.15 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.45 | )% | | | (0.10 | )% | | | 0.06 | % | | | 0.51 | % | | | 1.14 | % |
| Portfolio turnover rate | | | 75.27 | % | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger International Focus Fund received a Fair Fund distribution of $159,091, which contributed approximately 0.11% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger International Focus Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 18.90 | | | $ | 15.69 | | | $ | 14.46 | | | $ | 17.77 | | | $ | 14.74 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.03 | ) | | –(ii) | | | | 0.05 | | | | 0.12 | | | | 0.20 | |
| Net realized and unrealized gain (loss) on investments | | | 6.65 | | | | 3.98 | | | | 1.67 | | | | (2.48 | ) | | | 3.14 | |
| Total from investment operations | | | 6.62 | | | | 3.98 | | | | 1.72 | | | | (2.36 | ) | | | 3.34 | |
| Dividends from net investment income | | | – | | | | (0.77 | ) | | | (0.49 | ) | | | (0.95 | ) | | | (0.31 | ) |
| Net asset value, end of period | | $ | 25.52 | | | $ | 18.90 | | | $ | 15.69 | | | $ | 14.46 | | | $ | 17.77 | |
| Total return(iii) | | 35.34%(iv) | | | | 26.23 | % | | | 12.64 | % | | | (14.03 | )% | | | 23.16 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 28,264 | | | $ | 12,621 | | | $ | 13,462 | | | $ | 14,597 | | | $ | 21,317 | |
| Ratio of gross expenses to average net assets | | | 0.92 | % | | | 1.02 | % | | | 1.10 | % | | | 1.01 | % | | | 1.03 | % |
| Ratio of expense reimbursements to average net assets | | | (0.03 | )% | | | (0.13 | )% | | | (0.21 | )% | | | (0.12 | )% | | | (0.14 | )% |
| Ratio of net expenses to average net assets | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.13 | )% | | | 0.01 | % | | | 0.36 | % | | | 0.71 | % | | | 1.27 | % |
| Portfolio turnover rate | | | 75.27 | % | | | 105.22 | % | | | 151.99 | % | | | 207.22 | % | | | 148.35 | % |
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. |
| (iv) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger International Focus Fund received a Fair Fund distribution of $159,091, which contributed approximately 0.11% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Health Sciences Fund | | Class A | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 31.75 | | | $ | 26.55 | | | $ | 28.04 | | | $ | 25.16 | | | $ | 16.01 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment loss(i) | | | (0.21 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.19 | ) | | | (0.19 | ) |
| Net realized and unrealized gain on investments | | | 8.87 | | | | 7.20 | | | | 0.48 | | | | 3.82 | | | | 9.34 | |
| Total from investment operations | | | 8.66 | | | | 7.11 | | | | 0.39 | | | | 3.63 | | | | 9.15 | |
| Distributions from net realized gains | | | (3.75 | ) | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | |
| Net asset value, end of period | | $ | 36.66 | | | $ | 31.75 | | | $ | 26.55 | | | $ | 28.04 | | | $ | 25.16 | |
| Total return(ii) | | 29.12%(iii) | | | | 28.09 | % | | | 1.96 | % | | | 14.92 | % | | | 57.15 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 151,514 | | | $ | 127,925 | | | $ | 108,095 | | | $ | 131,731 | | | $ | 95,913 | |
| Ratio of gross expenses to average net assets | | | 1.00 | % | | | 1.04 | % | | | 1.12 | % | | | 1.15 | % | | | 1.38 | % |
| Ratio of net expenses to average net assets | | | 1.00 | % | | | 1.04 | % | | | 1.12 | % | | | 1.15 | % | | | 1.38 | % |
| Ratio of net investment loss to average net assets | | | (0.63 | )% | | | (0.30 | )% | | | (0.34 | )% | | | (0.68 | )% | | | (0.86 | )% |
| Portfolio turnover rate | | | 152.78 | % | | | 131.29 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Health Sciences Fund received a Fair Fund distribution of $179,832, which contributed approximately 0.07% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Health Sciences Fund | | Class C | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
Net asset value, beginning of period | | $ | 23.74 | | | $ | 20.44 | | | $ | 22.21 | | | $ | 20.23 | | | $ | 12.98 | |
INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(i) | | | (0.34 | ) | | | (0.23 | ) | | | (0.23 | ) | | | (0.31 | ) | | | (0.28 | ) |
Net realized and unrealized gain on investments | | | 6.46 | | | | 5.44 | | | | 0.34 | | | | 3.04 | | | | 7.53 | |
Total from investment operations | | | 6.12 | | | | 5.21 | | | | 0.11 | | | | 2.73 | | | | 7.25 | |
Distributions from net realized gains | | | (3.75 | ) | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | |
Net asset value, end of period | | $ | 26.11 | | | $ | 23.74 | | | $ | 20.44 | | | $ | 22.21 | | | $ | 20.23 | |
Total return(ii) | | 28.11%(iii) | | | | 27.12 | % | | | 1.20 | % | | | 14.03 | % | | | 55.86 | % |
RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000's omitted) | | $ | 14,334 | | | $ | 11,862 | | | $ | 10,963 | | | $ | 15,322 | | | $ | 31,148 | |
Ratio of gross expenses to average net assets | | | 1.76 | % | | | 1.81 | % | | | 1.89 | % | | | 1.93 | % | | | 2.15 | % |
Ratio of net expenses to average net assets | | | 1.76 | % | | | 1.81 | % | | | 1.89 | % | | | 1.93 | % | | | 2.15 | % |
| Ratio of net investment loss to average net assets | | | (1.39 | )% | | | (1.07 | )% | | | (1.12 | )% | | | (1.46 | )% | | | (1.63 | )% |
Portfolio turnover rate | | | 152.78 | % | | | 131.29 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % |
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. |
| (iii) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Health Sciences Fund received a Fair Fund distribution of $179,832, which contributed approximately 0.07% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
THE ALGER FUNDS
Financial Highlights for a share outstanding throughout the period
| Alger Health Sciences Fund | | Class Z | |
| | | Year ended 10/31/2021 | | | Year ended 10/31/2020 | | | Year ended 10/31/2019 | | | Year ended 10/31/2018 | | | Year ended 10/31/2017 | |
| Net asset value, beginning of period | | $ | 31.99 | | | $ | 26.69 | | | $ | 28.09 | | | $ | 25.11 | | | $ | 15.92 | |
| INCOME FROM INVESTMENT OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)(i) | | | (0.11 | ) | | –(ii) | | | | 0.01 | | | | (0.09 | ) | | | (0.11 | ) |
| Net realized and unrealized gain on investments | | | 8.96 | | | | 7.25 | | | | 0.47 | | | | 3.82 | | | | 9.30 | |
| Total from investment operations | | | 8.85 | | | | 7.25 | | | | 0.48 | | | | 3.73 | | | | 9.19 | |
| Dividends from net investment income | | | – | | | | (0.04 | ) | | | – | | | | – | | | | – | |
| Distributions from net realized gains | | | (3.75 | ) | | | (1.91 | ) | | | (1.88 | ) | | | (0.75 | ) | | | – | |
| Net asset value, end of period | | $ | 37.09 | | | $ | 31.99 | | | $ | 26.69 | | | $ | 28.09 | | | $ | 25.11 | |
| Total return(iii) | | 29.53%(iv) | | | | 28.50 | % | | | 2.34 | % | | | 15.32 | % | | | 57.73 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000's omitted) | | $ | 184,972 | | | $ | 131,109 | | | $ | 77,023 | | | $ | 57,640 | | | $ | 25,644 | |
| Ratio of gross expenses to average net assets | | | 0.68 | % | | | 0.71 | % | | | 0.79 | % | | | 0.84 | % | | | 1.12 | % |
| Ratio of expense reimbursements to average net assets | | | – | | | | – | | | | (0.04 | )% | | | (0.06 | )% | | | (0.13 | )% |
| Ratio of net expenses to average net assets | | | 0.68 | % | | | 0.71 | % | | | 0.75 | % | | | 0.78 | % | | | 0.99 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.31 | )% | | | (0.01 | )% | | | 0.02 | % | | | (0.32 | )% | | | (0.48 | )% |
| Portfolio turnover rate | | | 152.78 | % | | | 131.29 | % | | | 148.78 | % | | | 89.73 | % | | | 106.66 | % |
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. |
| (iv) | Pursuant to the U.S. Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans, the Alger Health Sciences Fund received a Fair Fund distribution of $179,832, which contributed approximately 0.07% to its annual return, which is included in Litigation income in the accompanying Statements of Operations. |
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 ten series – Alger Capital Appreciation 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 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 and 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, 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 eighth anniversary of the purchase date of a shareholder’s Class C shares, without the imposition of any sales load, fee or other charge. 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. Class I, 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 are 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 (the “Distributor” or “Alger LLC”). Class I shares are also available for purchase by investors who transact with certain brokers identified by the distributor. Class Y shares remain open to all qualifying investors and Class Y and Class Z Shares are generally subject to a minimum initial investment of $500,000.
Class P-2 Shares of the Alger 35 Fund were converted to Class Z shares after the close of business on October 29, 2021.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
The Class Y shares of Alger Mid Cap Focus Fund launched on February 26, 2021. The Class A shares and the Class C shares of Alger Mid Cap Focus Fund launched on July 29, 2021.
The Board approved a Plan of Reorganizations dated as of February 11, 2021 (the “Plan”), adopted with respect to Alger 25 Fund and Alger 35 Fund. The Plan provides for the transfer of the Alger 25 Fund’s assets to the Alger 35 Fund in a tax-free exchange for shares of the Alger 35 Fund and the assumption by the Alger 35 Fund of the Alger 25 Fund’s stated liabilities, the distribution of such shares of the Alger 35 Fund to Alger 25 Fund shareholders and the subsequent termination of the Alger 25 Fund (the “Reorganization”). Because the Reorganization satisfies the requisite conditions of Rule 17a-8 under the Investment Company Act of 1940, as amended, in accordance with the Trust’s Amended and Restated Agreement and Declaration of Trust, and applicable Massachusetts state and U.S. federal law (including Rule 17a-8), the Reorganization may be effected without the approval of shareholders of either fund. The Reorganization became effective after the close of business on May 7, 2021.
After the close of business on May 7, 2021, the Alger 35 Fund acquired substantially all of the assets and liabilities of the Alger 25 Fund in exchange for Class P shares of the Alger 35 Fund, which were distributed to the Alger 25 Fund’s shareholders. Upon completion of the Reorganization, Class P shares were reclassified as Class Z shares. The investment portfolio of the Alger 25 Fund, with a fair value of $25,885,380 and identified cost of $17,519,227 as of the date of the Reorganization, was the principal asset acquired by the Alger 35 Fund. The acquisition was accomplished by a tax-free exchange of 1,536,300 shares of the Alger 25 Fund, valued at $26,249,571 for 1,429,347 shares of the Alger 35 Fund. The net assets of the Alger 25 Fund and the Alger 35 Fund immediately before the acquisition were $26,249,571 (including $8,366,153 of net unrealized appreciation) and $18,981,690, respectively. The combined net assets of the Alger 35 Fund immediately following the acquisition were $45,231,261. For financial reporting purposes, assets received and shares issued by the Alger 35 Fund were recorded at fair value; however the cost basis of the investments received from the Alger 25 Fund was carried forward to align ongoing reporting of the Alger 35 Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
Fred Alger Management, LLC (“Alger Management” or the “Investment Manager”) Alger Management and/or its affiliates paid the expenses directly relating to the Reorganization. Assuming the acquisition had been completed on November 1, 2020, the Alger 35 Fund’s pro-forma results of operations for the year ended October 31, 2021, are as follows:
| Net investment loss | | $ | (32,302 | ) |
| Net realized and unrealized gain on investments in securities | | | 13,917,443 | |
| Net increase in net assets resulting from operations | | $ | 13,885,141 | |
| Undistributed net investment loss | | $ | (115,723 | ) |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of changes in revenue and earnings attributable to the Alger 25 Fund that have been included in the Alger 35 Fund’s Statement of Operations since May 7, 2021.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
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 meetings are held 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) 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 interest income 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 (“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 each day 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, 2021.
(g) 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.
Each share 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, passive foreign investment companies, and foreign currency transactions. The reclassifications are done annually at 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.
(h) 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.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
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.
(i) Allocation Methods: The Trust accounts separately for the assets, liabilities and operations of each Fund. Expenses directly attributable to each Fund are charged to that Fund’s operations; expenses which are applicable to all Funds are allocated among them based on net assets. Income, realized and unrealized gains and losses, and expenses of each Fund are allocated among the Fund’s classes based on relative net assets, with the exception of distribution fees, transfer agency fees, and shareholder servicing and related fees.
(j) 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.
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 Alger Management, 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, 2021, 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 35 Fund(b) | | | 0.30-0.80 | | | | — | | | | — | | | | — | | | | — | | | | 0.30 | |
| 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(e) | | | 0.70 | | | | 0.50 | | | | — | | | | — | | | | — | | | | 0.57 | |
| Alger Weatherbie Specialized Growth Fund(d) | | | 0.81 | | | | 0.75 | | | | — | | | | — | | | | — | | | | 0.79 | |
| Alger Small Cap Growth Fund(d) | | | 0.81 | | | | 0.75 | | | | — | | | | — | | | | — | | | | 0.81 | |
| Alger Small Cap Focus Fund(c) | | | 0.75 | | | | — | | | | — | | | | — | | | | — | | | | 0.75 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | Tier 1 | | | Tier 2 | | | Tier 3 | | | Tier 4 | | | Tier 5 | | | Actual Rate | |
| 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 is the lesser of (i) an annual rate of 0.45% of the Fund’s average daily net assets; and (ii) a fulcrum fee consisting 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% and a maximum total fee of 0.80%. Prior to December 18, 2020, the management fee paid to Alger Management consisted of the fulcrum fee only.
(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.
(e) Tier 1 rate is paid on assets up to $250 million, and Tier 2 rate is paid on assets in excess of $250 million.
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 advisory 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, 2021, Alger Management paid a sub-advisory fee of $8,084,438 to Weatherbie.
Alger Management has contractually agreed to waive fees or to reimburse Fund expenses (excluding acquired fund fees and expenses, dividend expense on short sales, borrowing costs, interest, taxes, brokerage and extraordinary expenses) for certain Funds through February 28, 2023 to the extent necessary to limit the total annual fund operating expenses exceed the rates, based on average daily net assets, listed in the table below:
| | | CLASS | | FEES WAIVED / REIMBURSED FOR THE YEAR ENDED | |
| | | | A
|
| | | C
|
| | | I
|
| | | Y
|
| | | Z
|
| | OCTOBER 31, 2021 | |
| Alger Capital Appreciation Fund | | | – | | | | – | | | | – | | | | – | | | | 0.85 | %(a) | | $ | – | |
| Alger Growth & Income Fund | | | – | | | | – | | | | – | | | | – | | | | –(b | ) | | | 486 | |
| Alger Mid Cap Growth Fund | | | – | | | | – | | | | – | | | | – | | | | 0.99(c | ) | | | – | |
| Alger Mid Cap Focus Fund | | | 1.15 | % | | | 1.90 | % | | | 1.20 | % | | | 0.69 | % | | | 0.99 | | | | 15 | |
| Alger Weatherbie Specialized Growth Fund | | | – | | | | – | | | | – | | | | 0.87 | | | | –(d | ) | | | 8,083 | |
| Alger Small Cap Growth Fund | | | – | | | | – | | | | – | | | | – | | | | 0.99 | | | | – | |
| Alger Small Cap Focus Fund | | | – | | | | – | | | | – | | | | 0.85 | | | | – | | | | – | |
| Alger International Focus Fund | | | – | | | | – | | | | 1.25(e | ) | | | – | | | | 0.89 | | | | 7,047 | |
| Alger Health Sciences Fund | | | – | | | | – | | | | – | | | | – | | | | 0.75 | | | | – | |
(a) Prior to March 1, 2021, Alger Capital Appreciation Fund, Class Z, did not have an expense cap.
(b) Prior to March 1, 2021, the expense cap for Alger Growth & Income Fund, Class Z, was 0.69%.
(c) Prior to March 1, 2021, the expense cap for Alger Mid Cap Growth Fund, Class Z, was 1.05%.
(d) Prior to March 1, 2021, the expense cap for Alger Weatherbie Specialized Growth Fund, Class Z, was 0.99%.
(e) Prior to March 1, 2021, the expense cap for Alger International Focus Fund, Class I, was 1.10%.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Alger Management may, during the term of the contract, recoup any fees waived or expenses reimbursed for share classes A, C, I, Y and Z pursuant to the contract to the extent that such recoupment would not cause the expense ratio to exceed the stated limitation in effect at the time of (i) the waiver or reimbursement and (ii) the recoupment by Alger Management, after repayment of the recoupment is taken into account. For the year ended October 31, 2021, the recoupments made by the Funds to the Investment Manager for the Alger Capital Appreciation Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Focus Fund and Alger International Focus Fund, were $68,538, $470, $65, $22,569 and $275, respectively.
Alger Management has also agreed to limit expenses of the Class Z shares (formerly class P shares) of Alger 35 Fund, for the life of the Fund, whereby it reimburses expenses to the extent Fund operating expenses, excluding advisory fees, 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 35 Fund were $150,818 for the year ended October 31, 2021.
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 $134,768, $43,207 and $176,673, respectively, for the year ended October 31, 2021.
(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 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 and or administering the Class A shares and/or shareholder servicing. The fees paid may be more or less than the expenses incurred by Alger LLC.
Class B Shares: The Trust has adopted a 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, 2021, such excess carried forward was $12,049,031, $19,004,775 and $18,775,644 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.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
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 each Fund issuing such shares pays 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.
(d) Sales Charges: Sales of shares of the Funds may be subject to 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. For the year ended October 31, 2021, contingent deferred sales charges imposed, all of which were retained by Alger LLC, were as follows:
| | | CONTINGENT DEFERRED SALES CHARGES | |
| Alger Capital Appreciation Fund | | $ | 14,472 | |
| Alger Growth & Income Fund | | | 507 | |
| Alger Mid Cap Growth Fund | | | 5,323 | |
| Alger Mid Cap Focus Fund | | | 34 | |
| Alger Weatherbie Specialized Growth Fund | | | 28,184 | |
| Alger Small Cap Growth Fund | | | 37,833 | |
| Alger Small Cap Focus Fund | | | 6,329 | |
| Alger International Focus Fund | | | 1,156 | |
| Alger Health Sciences Fund | | | 3,411 | |
(e) Brokerage Commissions: During the year ended October 31, 2021, Alger Capital Appreciation Fund, Alger 35 Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund and Alger Health Sciences Fund paid Alger LLC, $313,010, $8,041, $82,381, $271,423, $51,412, $562,826 and $75,124, 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 Trust’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.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
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, 2021, Alger Management charged back to Alger Capital Appreciation 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 $953,340, $36,228, $53,612, $16,648, $185,192, $76,920, $911,388, $28,008 and $71,036, 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 $142,000 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, Alger Global Focus Fund and The Alger ETF Trust, 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.
Prior to January 1, 2021, each Independent Trustee received 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 Independent Trustee appointed as Chairman of the Board received 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 received a fee of $13,000 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. There were no interfund trades during the year ended October 31, 2021.
(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 in the Alger Fund Complex. If a Fund has borrowed from other funds in the Alger Fund Complex and has borrowings from all sources that exceed 10% of the Fund’s total assets, such Fund will secure all of its loans from other funds in the Alger Fund Complex. 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. As of October 31, 2021, Alger Capital Appreciation Fund borrowed $5,217,786, including interest, from Alger Small Cap Focus Fund at a rate of 1.04%, which was payable November 1, 2021 and categorized as Level 2 within the fair value hierarchy. In addition, the Alger Capital Appreciation Institutional Fund, an affiliated fund, borrowed $7,113,799, including interest, from Alger Small Cap Focus Fund at a rate 1.04%, which was payable November 2, 2021.
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
During the year ended October 31, 2021, Alger Weatherbie Specialized Growth Fund and Alger Small Cap Focus Fund earned interfund loan interest income of $1,119 and $74,714, respectively, and Alger Capital Appreciation Fund, Alger 35 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund and Alger Health Sciences Fund, incurred interfund loan interest expenses of $26,701, $16, $27, $305, $112 and $436, respectively, which are included in interest income and interest expenses, respectively, in the accompanying Statements of Operations.
(j) Other Transactions with Affiliates: Certain officers and one Trustee of the Trust are directors and/or officers of Alger Management, the Distributor, or their affiliates. At October 31, 2021, Alger Management and its affiliated entities owned the following shares:
| | | SHARE CLASS | |
| | | | A
|
| | | C |
| | | I
|
| | | Y |
| | | Z |
|
| Alger Capital Appreciation Fund | | | 73,980 | | | | — | | | | — | | | | — | | | | 32,186 | |
| Alger 35 Fund | | | — | | | | — | | | | — | | | | — | | | | 1,170,719 | |
| Alger Growth & Income Fund | | | — | | | | — | | | | — | | | | — | | | | 32,241 | |
| Alger Mid Cap Growth Fund | | | — | | | | — | | | | — | | | | — | | | | 116,462 | |
| Alger Mid Cap Focus Fund | | | 4,838 | | | | 4,838 | | | | 100,035 | | | | 4,843 | | | | 938,986 | |
| 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 | | | | 313,705 | |
| Alger International Focus Fund | | | — | | | | — | | | | — | | | | — | | | | 63,226 | |
| Alger Health Sciences Fund | | | — | | | | — | | | | — | | | | — | | | | 189,880 | |
NOTE 4 — Securities Transactions:
The following summarizes the securities transactions by each Fund, other than U.S. Government securities, short-term securities and forward foreign currency contracts, for the year ended October 31, 2021:
| | | PURCHASES | | | SALES | |
| Alger Capital Appreciation Fund | | $ | 2,536,685,083 | | | | 3,486,176,501 | |
| Alger 35 Fund | | | 37,901,433 | | | | 43,958,455 | |
| Alger Growth & Income Fund | | | 12,521,418 | | | | 11,329,552 | |
| Alger Mid Cap Growth Fund | | | 504,172,577 | | | | 502,467,489 | |
| Alger Mid Cap Focus Fund | | | 1,992,104,945 | | | | 1,687,528,918 | |
| Alger Weatherbie Specialized Growth Fund | | | 1,138,652,981 | | | | 861,661,331 | |
| Alger Small Cap Growth Fund | | | 371,269,644 | | | | 197,611,002 | |
| Alger Small Cap Focus Fund | | | 4,838,188,813 | | | | 4,206,332,212 | |
| Alger International Focus Fund | | | 143,511,085 | | | | 144,933,619 | |
| Alger Health Sciences Fund | | | 482,335,182 | | | | 473,205,596 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 5 — Borrowing:
The Funds may borrow from 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. Borrowings from the Custodian are included in Bank overdrafts in the Statement of Assets and Liabilities. 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, 2021, the Funds had the following borrowings from the Custodian and other funds in the Alger Fund Complex:
| | | AVERAGE DAILY BORROWING | | | WEIGHTED AVERAGE INTEREST RATE | |
Alger Capital Appreciation Fund | | $ | 3,702,098 | | | | 1.40 | % |
Alger 35 Fund | | | 1,518 | | | | 1.05 | |
Alger Growth & Income Fund | | | 2,556 | | | | 1.06 | |
Alger Mid Cap Growth Fund | | | 133,648 | | | | 1.89 | |
Alger Mid Cap Focus Fund | | | 26,368 | | | | 1.68 | |
Alger Small Cap Focus Fund | | | 66,598 | | | | 2.12 | |
Alger International Focus Fund | | | 19,400 | | | | 2.11 | |
Alger Health Sciences Fund | | | 74,626 | | | | 1.55 | |
The highest amount borrowed from the Custodian and other funds during the year ended October 31, 2021 by each Fund was as follows:
| | | HIGHEST BORROWING | |
| Alger Capital Appreciation Fund | | $ | 39,902,000 | |
| Alger 35 Fund | | | 554,000 | |
| Alger Growth & Income Fund | | | 513,000 | |
| Alger Mid Cap Growth Fund | | | 6,360,761 | |
| Alger Mid Cap Focus Fund | | | 2,482,584 | |
| Alger Small Cap Focus Fund | | | 24,308,258 | |
| Alger International Focus Fund | | | 1,834,879 | |
| Alger Health Sciences Fund | | | 4,000,000 | |
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 ten series. Each series is divided into separate classes. The transactions of shares of beneficial interest were as follows:
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Capital Appreciation Fund | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | |
| Shares sold | | | 4,903,852 | | | $ | 171,217,144 | | | | 7,180,370 | | | $ | 211,280,486 | |
| Shares converted from Class B | | | — | | | | — | | | | 24,727 | | | | 668,188 | |
| Shares converted from Class C | | | 193,285 | | | | 6,736,530 | | | | 86,714 | | | | 2,362,603 | |
| Dividends reinvested | | | 4,906,578 | | | | 160,052,587 | | | | 2,937,814 | | | | 78,087,090 | |
| Shares redeemed | | | (10,514,085 | ) | | | (373,806,874 | ) | | | (14,430,334 | ) | | | (419,690,482 | ) |
| Net decrease | | | (510,370 | ) | | $ | (35,800,613 | ) | | | (4,200,709 | ) | | $ | (127,292,115 | ) |
| Class B:* | | | | | | | | | | | | | | | | |
| Shares sold | | | — | | | $ | — | | | | 15,128 | | | $ | 302,171 | |
| Shares converted to Class A | | | — | | | | — | | | | (33,469 | ) | | | (668,188 | ) |
| Dividends reinvested | | | — | | | | — | | | | 41,410 | | | | 807,917 | |
| Shares redeemed | | | — | | | | — | | | | (457,984 | ) | | | (9,741,707 | ) |
| Net decrease | | | — | | | $ | — | | | | (434,915 | ) | | $ | (9,299,807 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 611,212 | | | $ | 14,822,713 | | | | 899,144 | | | $ | 19,063,091 | |
| Shares converted to Class A | | | (279,454 | ) | | | (6,736,530 | ) | | | (117,059 | ) | | | (2,362,603 | ) |
| Dividends reinvested | | | 1,702,406 | | | | 38,406,276 | | | | 934,025 | | | | 18,353,590 | |
| Shares redeemed | | | (2,485,325 | ) | | | (61,180,206 | ) | | | (4,104,569 | ) | | | (90,979,418 | ) |
| Net decrease | | | (451,161 | ) | | $ | (14,687,747 | ) | | | (2,388,459 | ) | | $ | (55,925,340 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 8,958,009 | | | $ | 331,347,123 | | | | 11,841,043 | | | $ | 364,289,219 | |
| Dividends reinvested | | | 4,753,533 | | | | 162,570,831 | | | | 3,577,911 | | | | 98,750,345 | |
| Shares redeemed | | | (24,919,637 | ) | | | (947,567,494 | ) | | | (13,775,650 | ) | | | (416,349,095 | ) |
| Net increase (decrease) | | | (11,208,095 | ) | | $ | (453,649,540 | ) | | | 1,643,304 | | | $ | 46,690,469 | |
| | | | | | | | | | | | | | | | | |
| Alger 35 Fund** | | | | | | | | | | | | | | | | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 192,476 | | | $ | 3,393,415 | | | | 28,618 | | | $ | 350,000 | |
| Shares from the Reorganization*** | | | 1,429,347 | | | | 26,249,571 | | | | — | | | | — | |
| Shares converted from Class P-2 | | | 18,102 | | | | 386,258 | | | | — | | | | — | |
| Dividends reinvested | | | 9,316 | | | | 159,019 | | | | 42 | | | | 508 | |
| Shares redeemed | | | (390,886 | ) | | | (7,004,609 | ) | | | — | | | | — | |
| Net increase | | | 1,258,355 | | | $ | 23,183,654 | | | | 28,660 | | | $ | 350,508 | |
| Class P-2: | | | | | | | | | | | | | | | | |
| Shares sold | | | 9,353 | | | $ | 179,455 | | | | 14,559 | | | $ | 236,787 | |
| Shares converted to Class Z | | | (18,083 | ) | | | (386,258 | ) | | | — | | | | — | |
| Dividends reinvested | | | 1,272 | | | | 21,760 | | | | — | | | | — | |
| Shares redeemed | | | (6,943 | ) | | | (136,393 | ) | | | (9,868 | ) | | | (163,136 | ) |
| Net increase (decrease) | | | (14,401 | ) | | $ | (321,436 | ) | | | 4,691 | | | $ | 73,651 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Growth & Income Fund | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | |
| Shares sold | | | 187,753 | | | $ | 10,422,890 | | | | 166,028 | | | $ | 7,230,027 | |
| Shares converted from Class C | | | 9,932 | | | | 526,506 | | | | 5,418 | | | | 230,594 | |
| Dividends reinvested | | | 35,990 | | | | 1,847,272 | | | | 79,229 | | | | 3,448,814 | |
| Shares redeemed | | | (202,222 | ) | | | (11,022,607 | ) | | | (278,890 | ) | | | (12,011,731 | ) |
| Net increase (decrease) | | | 31,453 | | | $ | 1,774,061 | | | | (28,215 | ) | | $ | (1,102,296 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 60,755 | | | $ | 3,319,485 | | | | 52,246 | | | $ | 2,232,137 | |
| Shares converted to Class A | | | (10,088 | ) | | | (526,506 | ) | | | (5,503 | ) | | | (230,594 | ) |
| Dividends reinvested | | | 5,024 | | | | 247,364 | | | | 14,947 | | | | 643,564 | |
| Shares redeemed | | | (60,069 | ) | | | (3,212,364 | ) | | | (106,117 | ) | | | (4,396,795 | ) |
| Net decrease | | | (4,378 | ) | | $ | (172,021 | ) | | | (44,427 | ) | | $ | (1,751,688 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 231,639 | | | $ | 12,822,447 | | | | 123,441 | | | $ | 5,384,534 | |
| Dividends reinvested | | | 12,292 | | | | 636,900 | | | | 28,083 | | | | 1,221,091 | |
| Shares redeemed | | | (122,372 | ) | | | (6,508,944 | ) | | | (276,987 | ) | | | (10,439,155 | ) |
| Net increase (decrease) | | | 121,559 | | | $ | 6,950,403 | | | | (125,463 | ) | | $ | (3,833,530 | ) |
| Alger Mid Cap Growth Fund | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 914,462 | | | $ | 20,634,057 | | | | 683,420 | | | $ | 11,230,660 | |
| Shares converted from Class B | | | 82,391 | | | | 1,863,637 | | | | 697,095 | | | | 10,686,941 | |
| Shares converted from Class C | | | 18,436 | | | | 428,750 | | | | 5,184 | | | | 80,661 | |
| Dividends reinvested | | | 919,277 | | | | 19,139,352 | | | | 718,109 | | | | 10,161,234 | |
| Shares redeemed | | | (1,345,940 | ) | | | (29,992,059 | ) | | | (1,774,141 | ) | | | (27,259,364 | ) |
| Net increase | | | 588,626 | | | $ | 12,073,737 | | | | 329,667 | | | $ | 4,900,132 | |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 24,929 | | | $ | 412,167 | | | | 766,194 | | | $ | 8,988,482 | |
| Shares converted to Class A | | | (111,173 | ) | | | (1,863,637 | ) | | | (901,373 | ) | | | (10,686,941 | ) |
| Dividends reinvested | | | 139,453 | | | | 2,141,998 | | | | 123,931 | | | | 1,335,978 | |
| Shares redeemed | | | (118,881 | ) | | | (1,959,022 | ) | | | (132,984 | ) | | | (1,542,833 | ) |
| Net decrease | | | (65,672 | ) | | $ | (1,268,494 | ) | | | (144,232 | ) | | $ | (1,905,314 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 143,711 | | | $ | 2,319,146 | | | | 110,698 | | | $ | 1,351,444 | |
| Shares converted to Class A | | | (25,839 | ) | | | (428,750 | ) | | | (6,962 | ) | | | (80,661 | ) |
| Dividends reinvested | | | 55,517 | | | | 822,766 | | | | 43,750 | | | | 461,119 | |
| Shares redeemed | | | (109,683 | ) | | | (1,763,897 | ) | | | (279,162 | ) | | | (3,292,499 | ) |
| Net increase (decrease) | | | 63,706 | | | $ | 949,265 | | | | (131,676 | ) | | $ | (1,560,597 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,002,401 | | | $ | 22,629,348 | | | | 383,063 | | | $ | 6,586,907 | |
| Dividends reinvested | | | 96,479 | | | | 2,049,208 | | | | 56,154 | | | | 806,942 | |
| Shares redeemed | | | (418,013 | ) | | | (9,396,307 | ) | | | (243,910 | ) | | | (3,731,436 | ) |
| Net increase | | | 680,867 | | | $ | 15,282,249 | | | | 195,307 | | | $ | 3,662,413 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Mid Cap Focus Fund | | | | | | | | | | | | |
| Class A:**** | | | | | | | | | | | | |
| Shares sold | | | 71,524 | | | $ | 1,568,079 | | | | — | | | $ | — | |
| Shares redeemed | | | (282 | ) | | | (6,378 | ) | | | — | | | | — | |
| Net increase | | | 71,242 | | | $ | 1,561,701 | | | | — | | | $ | — | |
| Class C:**** | | | | | | | | | | | | | | | | |
| Shares sold | | | 99,334 | | | $ | 2,230,152 | | | | — | | | $ | — | |
| Shares redeemed | | | (235 | ) | | | (5,074 | ) | | | — | | | | — | |
| Net increase | | | 99,099 | | | $ | 2,225,078 | | | | — | | | $ | — | |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 3,340,683 | | | $ | 67,099,072 | | | | 5,205,360 | | | $ | 63,455,538 | |
| Dividends reinvested | | | 68,847 | | | | 1,263,336 | | | | — | | | | — | |
| Shares redeemed | | | (1,688,941 | ) | | | (32,678,718 | ) | | | (923,353 | ) | | | (12,609,650 | ) |
| Net increase | | | 1,720,589 | | | $ | 35,683,690 | | | | 4,282,007 | | | $ | 50,845,888 | |
| Class Y:***** | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,822 | | | $ | 119,925 | | | | — | | | $ | — | |
| Net increase | | | 5,822 | | | $ | 119,925 | | | | — | | | $ | — | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 20,605,283 | | | $ | 415,538,623 | | | | 18,710,358 | | | $ | 255,789,347 | |
| Dividends reinvested | | | 320,018 | | | | 5,894,736 | | | | — | | | | — | |
| Shares redeemed | | | (7,483,745 | ) | | | (151,083,036 | ) | | | (1,312,798 | ) | | | (18,447,018 | ) |
| Net increase | | | 13,441,556 | | | $ | 270,350,323 | | | | 17,397,560 | | | $ | 237,342,329 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Weatherbie Specialized Growth Fund | |
| Class A: | | | | | | | | | | | | |
| Shares sold | | | 2,777,160 | | | $ | 60,409,142 | | | | 4,404,952 | | | $ | 68,046,713 | |
| Shares converted from Class C | | | 65,661 | | | | 1,472,818 | | | | 52,158 | | | | 747,539 | |
| Dividends reinvested | | | 438,339 | | | | 8,823,757 | | | | 393,895 | | | | 5,475,142 | |
| Shares redeemed | | | (2,894,846 | ) | | | (62,323,010 | ) | | | (5,400,289 | ) | | | (79,168,629 | ) |
| Net increase (decrease) | | | 386,314 | | | $ | 8,382,707 | | | | (549,284 | ) | | $ | (4,899,235 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,791,191 | | | $ | 25,231,160 | | | | 1,895,581 | | | $ | 18,949,256 | |
| Shares converted to Class A | | | (102,088 | ) | | | (1,472,818 | ) | | | (78,426 | ) | | | (747,539 | ) |
| Dividends reinvested | | | 412,015 | | | | 5,327,351 | | | | 290,701 | | | | 2,683,170 | |
| Shares redeemed | | | (1,215,169 | ) | | | (17,245,234 | ) | | | (1,491,233 | ) | | | (14,469,003 | ) |
| Net increase | | | 885,949 | | | $ | 11,840,459 | | | | 616,623 | | | $ | 6,415,884 | |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,135,719 | | | $ | 25,501,619 | | | | 3,499,097 | | | $ | 52,548,644 | |
| Dividends reinvested | | | 127,791 | | | | 2,646,555 | | | | 139,279 | | | | 1,988,908 | |
| Shares redeemed | | | (1,952,131 | ) | | | (42,735,229 | ) | | | (4,238,615 | ) | | | (65,406,834 | ) |
| Net decrease | | | (688,621 | ) | | $ | (14,587,055 | ) | | | (600,239 | ) | | $ | (10,869,282 | ) |
| Class Y: | | | | | | | | | | | | | | | | |
| Shares sold | | | 837,092 | | | $ | 19,514,973 | | | | 1,210,303 | | | $ | 17,155,111 | |
| Dividends reinvested | | | 45,583 | | | | 957,251 | | | | 22,542 | | | | 325,051 | |
| Shares redeemed | | | (340,146 | ) | | | (7,860,565 | ) | | | (370,845 | ) | | | (5,562,734 | ) |
| Net increase | | | 542,529 | | | $ | 12,611,659 | | | | 862,000 | | | $ | 11,917,428 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 23,475,062 | | | $ | 551,582,721 | | | | 22,656,106 | | | $ | 368,505,246 | |
| Dividends reinvested | | | 1,449,362 | | | | 31,335,212 | | | | 759,385 | | | | 11,261,680 | |
| Shares redeemed | | | (10,574,421 | ) | | | (248,570,390 | ) | | | (10,331,118 | ) | | | (159,208,355 | ) |
| Net increase | | | 14,350,003 | | | $ | 334,347,543 | | | | 13,084,373 | | | $ | 220,558,571 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Small Cap Growth Fund | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | |
| Shares sold | | | 4,316,492 | | | $ | 67,234,025 | | | | 4,331,791 | | | $ | 48,331,960 | |
| Shares converted from Class B | | | 9,900 | | | | 151,028 | | | | 191,239 | | | | 1,931,695 | |
| Shares converted from Class C | | | 9,831 | | | | 156,933 | | | | 12,551 | | | | 123,962 | |
| Dividends reinvested | | | 69,156 | | | | 1,020,044 | | | | 703,588 | | | | 6,494,119 | |
| Shares redeemed | | | (3,086,481 | ) | | | (47,214,284 | ) | | | (2,811,745 | ) | | | (29,568,530 | ) |
| Net increase | | | 1,318,898 | | | $ | 21,347,746 | | | | 2,427,424 | | | $ | 27,313,206 | |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 18,146 | | | $ | 202,310 | | | | 180,405 | | | $ | 1,256,084 | |
| Shares converted to Class A | | | (14,060 | ) | | | (151,028 | ) | | | (267,059 | ) | | | (1,931,695 | ) |
| Dividends reinvested | | | 3,843 | | | | 39,897 | | | | 53,607 | | | | 348,979 | |
| Shares redeemed | | | (71,442 | ) | | | (786,600 | ) | | | (64,535 | ) | | | (476,066 | ) |
| Net decrease | | | (63,513 | ) | | $ | (695,421 | ) | | | (97,582 | ) | | $ | (802,698 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,192,233 | | | $ | 22,769,276 | | | | 1,594,809 | | | $ | 12,146,901 | |
| Shares converted to Class A | | | (14,746 | ) | | | (156,933 | ) | | | (18,581 | ) | | | (123,962 | ) |
| Dividends reinvested | | | 17,615 | | | | 173,504 | | | | 72,948 | | | | 454,464 | |
| Shares redeemed | | | (731,088 | ) | | | (7,680,281 | ) | | | (439,985 | ) | | | (3,067,814 | ) |
| Net increase | | | 1,464,014 | | | $ | 15,105,566 | | | | 1,209,191 | | | $ | 9,409,589 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 16,501,975 | | | $ | 267,006,423 | | | | 13,634,150 | | | $ | 160,892,760 | |
| Dividends reinvested | | | 71,444 | | | | 1,096,671 | | | | 136,279 | | | | 1,304,192 | |
| Shares redeemed | | | (7,573,401 | ) | | | (122,718,331 | ) | | | (2,343,101 | ) | | | (26,604,569 | ) |
| Net increase | | | 9,000,018 | | | $ | 145,384,763 | | | | 11,427,328 | | | $ | 135,592,383 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Small Cap Focus Fund | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | |
| Shares sold | | | 2,869,366 | | | $ | 90,147,930 | | | | 5,208,591 | | | $ | 117,294,890 | |
| Shares converted from Class C | | | 15,477 | | | | 522,326 | | | | 2,966 | | | | 67,602 | |
| Dividends reinvested | | | — | | | | — | | | | 535,855 | | | | 11,038,609 | |
| Shares redeemed | | | (6,829,853 | ) | | | (211,147,927 | ) | | | (10,396,362 | ) | | | (218,897,878 | ) |
| Net decrease | | | (3,945,010 | ) | | $ | (120,477,671 | ) | | | (4,648,950 | ) | | $ | (90,496,777 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 412,494 | | | $ | 11,510,179 | | | | 854,346 | | | $ | 17,176,073 | |
| Shares converted to Class A | | | (17,406 | ) | | | (522,326 | ) | | | (3,312 | ) | | | (67,602 | ) |
| Dividends reinvested | | | — | | | | — | | | | 213,864 | | | | 3,956,482 | |
| Shares redeemed | | | (1,494,411 | ) | | | (41,732,985 | ) | | | (2,357,386 | ) | | | (45,373,121 | ) |
| Net decrease | | | (1,099,323 | ) | | $ | (30,745,132 | ) | | | (1,292,488 | ) | | $ | (24,308,168 | ) |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,521,632 | | | $ | 177,853,968 | | | | 11,716,100 | | | $ | 270,460,844 | |
| Dividends reinvested | | | — | | | | — | | | | 497,619 | | | | 10,524,647 | |
| Shares redeemed | | | (5,977,164 | ) | | | (188,231,133 | ) | | | (21,124,546 | ) | | | (507,666,465 | ) |
| Net decrease | | | (455,532 | ) | | $ | (10,377,165 | ) | | | (8,910,827 | ) | | $ | (226,680,974 | ) |
| Class Y: | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,833,923 | | | $ | 191,192,930 | | | | 8,822,105 | | | $ | 207,222,610 | |
| Dividends reinvested | | | — | | | | — | | | | 133,682 | | | | 2,868,815 | |
| Shares redeemed | | | (3,700,823 | ) | | | (119,885,569 | ) | | | (3,784,003 | ) | | | (89,917,556 | ) |
| Net increase | | | 2,133,100 | | | $ | 71,307,361 | | | | 5,171,784 | | | $ | 120,173,869 | |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 76,188,007 | | | $ | 2,500,577,465 | | | | 91,276,709 | | | $ | 2,183,836,177 | |
| Dividends reinvested | | | — | | | | — | | | | 2,555,372 | | | | 54,838,281 | |
| Shares redeemed | | | (54,259,719 | ) | | | (1,768,072,530 | ) | | | (47,965,380 | ) | | | (1,093,715,206 | ) |
| Net increase | | | 21,928,288 | | | $ | 732,504,935 | | | | 45,866,701 | | | $ | 1,144,959,252 | |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger International Focus Fund | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | |
| Shares sold | | | 308,062 | | | $ | 7,102,758 | | | | 289,777 | | | $ | 4,740,621 | |
| Shares converted from Class B | | | 15,746 | | | | 357,201 | | | | 442,500 | | | | 7,095,292 | |
| Shares converted from Class C | | | 9,648 | | | | 226,184 | | | | 2,852 | | | | 45,483 | |
| Dividends reinvested | | | — | | | | — | | | | 249,682 | | | | 3,957,495 | |
| Shares redeemed | | | (507,496 | ) | | | (11,678,515 | ) | | | (1,013,866 | ) | | | (16,405,429 | ) |
| Net decrease | | | (174,040 | ) | | $ | (3,992,372 | ) | | | (29,055 | ) | | $ | (566,538 | ) |
| Class B: | | | | | | | | | | | | | | | | |
| Shares sold | | | 24,912 | | | $ | 439,834 | | | | 430,047 | | | $ | 6,099,558 | |
| Shares converted to Class A | | | (18,146 | ) | | | (357,201 | ) | | | (510,496 | ) | | | (7,095,292 | ) |
| Dividends reinvested | | | — | | | | — | | | | 48,677 | | | | 667,850 | |
| Shares redeemed | | | (129,422 | ) | | | (2,601,409 | ) | | | (143,024 | ) | | | (1,989,352 | ) |
| Net decrease | | | (122,656 | ) | | $ | (2,518,776 | ) | | | (174,796 | ) | | $ | (2,317,236 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 71,044 | | | $ | 1,356,820 | | | | 17,191 | | | $ | 234,371 | |
| Shares converted to Class A | | | (11,520 | ) | | | (226,184 | ) | | | (3,383 | ) | | | (45,483 | ) |
| Dividends reinvested | | | — | | | | — | | | | 8,313 | | | | 111,390 | |
| Shares redeemed | | | (26,935 | ) | | | (516,872 | ) | | | (120,921 | ) | | | (1,705,693 | ) |
| Net increase (decrease) | | | 32,589 | | | $ | 613,764 | | | | (98,800 | ) | | $ | (1,405,415 | ) |
| Class I: | | | | | | | | | | | | | | | | |
| Shares sold | | | 15,704 | | | $ | 367,108 | | | | 9,635 | | | $ | 142,072 | |
| Dividends reinvested | | | — | | | | — | | | | 2,417 | | | | 38,342 | |
| Shares redeemed | | | (26,546 | ) | | | (588,570 | ) | | | (40,160 | ) | | | (639,872 | ) |
| Net decrease | | | (10,842 | ) | | $ | (221,462 | ) | | | (28,108 | ) | | $ | (459,458 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 684,090 | | | $ | 15,690,006 | | | | 258,994 | | | $ | 4,789,619 | |
| Dividends reinvested | | | — | | | | — | | | | 35,504 | | | | 567,345 | |
| Shares redeemed | | | (244,218 | ) | | | (5,616,024 | ) | | | (484,662 | ) | | | (6,975,611 | ) |
| Net increase (decrease) | | | 439,872 | | | $ | 10,073,982 | | | | (190,164 | ) | | $ | (1,618,647 | ) |
THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
| Alger Health Sciences Fund | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | |
| Shares sold | | | 647,684 | | | $ | 21,813,029 | | | | 854,557 | | | $ | 24,745,630 | |
| Shares converted from Class C | | | 19,072 | | | | 665,710 | | | | 7,001 | | | | 187,283 | |
| Dividends reinvested | | | 417,346 | | | | 13,167,263 | | | | 248,077 | | | | 6,740,256 | |
| Shares redeemed | | | (979,932 | ) | | | (32,679,519 | ) | | | (1,151,412 | ) | | | (32,912,494 | ) |
| Net increase (decrease) | | | 104,170 | | | $ | 2,966,483 | | | | (41,777 | ) | | $ | (1,239,325 | ) |
| Class C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 151,682 | | | $ | 3,657,493 | | | | 153,760 | | | $ | 3,349,184 | |
| Shares converted to Class A | | | (26,699 | ) | | | (665,710 | ) | | | (9,237 | ) | | | (187,283 | ) |
| Dividends reinvested | | | 82,622 | | | | 1,869,732 | | | | 43,515 | | | | 889,878 | |
| Shares redeemed | | | (158,253 | ) | | | (3,786,919 | ) | | | (224,816 | ) | | | (4,738,890 | ) |
| Net increase (decrease) | | | 49,352 | | | $ | 1,074,596 | | | | (36,778 | ) | | $ | (687,111 | ) |
| Class Z: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,662,275 | | | $ | 91,145,762 | | | | 4,814,272 | | | $ | 133,968,058 | |
| Dividends reinvested | | | 490,804 | | | | 15,627,187 | | | | 201,739 | | | | 5,507,481 | |
| Shares redeemed | | | (2,264,211 | ) | | | (74,893,155 | ) | | | (3,803,485 | ) | | | (114,672,656 | ) |
| Net increase | | | 888,868 | | | $ | 31,879,794 | | | | 1,212,526 | | | $ | 24,802,883 | |
| * | Class B Shares of Alger Capital Appreciation Fund were closed on June 1, 2020. |
** On May 7, 2021,Class P Shares of Alger 35 Fund were reclassified as Class Z Shares. After the close of business on October 29, 2021, Class P-2 Shares of the Alger 35 Fund were converted to Class Z Shares.
*** Includes shares and amounts from the Reorganization. See Note 1 - General.
**** Inception date July 29, 2021.
***** Inception date February 26, 2021.
NOTE 7 — Income Tax Information:
The tax character of distributions paid during the year ended October 31, 2021 and the year ended October 31, 2021 was as follows:
| | | FOR THE YEAR ENDED OCTOBER 31, 2021 | | | FOR THE YEAR ENDED OCTOBER 31, 2020 | |
| Alger Capital Appreciation Fund | | | | | | |
Distributions paid from: | | | | | | |
| Ordinary Income | | $ | — | | | $ | — | |
| Long-term capital gain | | | 421,756,031 | | | | 226,260,940 | |
| Total distributions paid | | $ | 421,756,031 | | | $ | 226,260,940 | |
| | | | | | | | | |
| Alger 35 Fund | | | | | | | | |
Distributions paid from: | | | | | | | | |
| Ordinary Income | | $ | 903,681 | | | $ | 16,765 | |
| Long-term capital gain | | | 1,599,860 | | | | — | |
| Total distributions paid | | $ | 2,503,541 | | | $ | 16,765 | |
