-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VtKtdevXKBkXGPM0ev3OU7TfRVSVeNEufWo2x0jbwkHuTh3rSJQ3tntQNlrhNUHx iO1CoTE1Rl5LNE/xWRPreg== 0000930413-05-004693.txt : 20050629 0000930413-05-004693.hdr.sgml : 20050629 20050629093748 ACCESSION NUMBER: 0000930413-05-004693 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050430 FILED AS OF DATE: 20050629 DATE AS OF CHANGE: 20050629 EFFECTIVENESS DATE: 20050629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALGER INSTITUTIONAL FUNDS CENTRAL INDEX KEY: 0000911415 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07986 FILM NUMBER: 05922717 BUSINESS ADDRESS: STREET 1: 111 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10003 BUSINESS PHONE: 2128068800 MAIL ADDRESS: STREET 1: 30 MONTGOMERY STREET STREET 2: 13TH FLOOR CITY: JERSEY CITY STATE: NJ ZIP: 07302 FORMER COMPANY: FORMER CONFORMED NAME: ALGER INSTITUTIONAL FUND DATE OF NAME CHANGE: 20020228 FORMER COMPANY: FORMER CONFORMED NAME: ALGER RETIREMENT FUND DATE OF NAME CHANGE: 19960515 FORMER COMPANY: FORMER CONFORMED NAME: ALGER DEFINED CONTRIBUTION TRUST DATE OF NAME CHANGE: 19930830 N-CSRS 1 c37055_ncsrs.txt ------------------------------ OMB APPROVAL ------------------------------ OMB Number: 3235-0570 Expires: September 30, 2007 Estimated average burden hours per response: 19.4 ------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-7986 The Alger Institutional Funds (Exact name of registrant as specified in charter) 111 Fifth Avenue New York, New York 10003 (Address of principal executive offices) (Zip code) Mr. Frederick A. Blum Fred Alger Management, Inc. 111 Fifth Avenue New York, New York 10003 (Name and address of agent for service) Registrant's telephone number, including area code: 212-806-8800 Date of fiscal year end: October 31 Date of reporting period: April 30, 2005 ITEM 1. REPORT(S) TO STOCKHOLDERS. THE ALGER INSTITUTIONAL FUNDS (FORMERLY THE ALGER INSTITUTIONAL FUND) ALGER LARGECAP GROWTH INSTITUTIONAL FUND ALGER SMALLCAP GROWTH INSTITUTIONAL FUND ALGER MIDCAP GROWTH INSTITUTIONAL FUND ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND ALGER BALANCED INSTITUTIONAL FUND ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND SEMI-ANNUAL REPORT APRIL 30, 2005 (UNAUDITED) [LOGO OMITTED] TABLE OF CONTENTS THE ALGER INSTITUTIONAL FUNDS Letter to Our Shareholders............................................ 1 Shareholder Expense Example........................................... 2 Portfolio Summary..................................................... 4 Schedules of Investments.............................................. 5 Statements of Assets and Liabilities.................................. 32 Statements of Operations.............................................. 34 Statements of Changes in Net Assets................................... 36 Financial Highlights.................................................. 40 Notes to Financial Statements......................................... 44 Dear Shareholders, May 31, 2005 The more things change, the more they remain the same, or so it seemed for the six months ended April 30, 2005. The markets rallied strongly at the end of 2004 after the U.S. presidential election was decided, but they retreated in the first weeks of 2005 as investors confronted uncertainties about the direction of the economy, the pace of interest rate hikes, elections in Iraq, and rising energy costs. Through the winter and into spring, the markets traded in a narrow range and drifted down. While the broader economic data were positive and corporate earnings were stronger in the first quarter of 2005 than many had anticipated, general investor skepticism weighed on the markets. During the six-month reporting period, the S&P 500 was up 3.28%, the Dow was up 2.78% and the NASDAQ was down 2.38%. Corporate earnings continued to beat Wall Street's expectations. Energy companies thrived, as did innovative companies across sectors, especially those that were able to increase productivity and tap into growing global markets. The S&P 500's earnings grew by 13.6% in the first quarter of 2005, handily beating analysts' January estimates of approximately 8%. We continue to believe that the strength of the economy and the potential of the markets are being underestimated by both investors and commentators. Both the U.S. and the global economy have been expanding at more than a 4% annual rate, and many companies are generating double-digit earnings growth. Growth stocks in particular are trading at very modest multiples relative to the projected growth rates, and if past patterns hold, we believe it is only a matter of time before such stocks begin to outperform. We want you to know that we value the trust you have placed in Alger. We will continue to look for dynamic, forward-looking companies that are creating the businesses and marketplaces of tomorrow, bringing growth opportunities to our investors. Respectfully submitted, /s/ Daniel C. Chung ------------------- Daniel C. Chung CHIEF INVESTMENT OFFICER THE ALGER INSTITUTIONAL FUNDS -2- SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) As a shareholder of the Fund, you incur two types of costs: transaction costs, if applicable, and ongoing costs, including management fees, distribution (12b-1) fees, if applicable, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example below is based on an investment of $1,000 invested at the beginning of the six-month period starting November 1, 2004 and ending April 30, 2005. ACTUAL EXPENSES The first line for each class of shares in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you would have paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line for each class of shares in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratios for each class of shares and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line under each class of shares in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. THE ALGER INSTITUTIONAL FUNDS -3- SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) (CONTINUED)
RATIO OF EXPENSES TO AVERAGE EXPENSES PAID NET ASSETS BEGINNING ENDING DURING THE PERIOD FOR THE SIX ACCOUNT VALUE ACCOUNT VALUE NOVEMBER 1, 2004 TO MONTHS ENDED NOVEMBER 1, 2004 APRIL 30, 2005 APRIL 30, 2005(b) APRIL 30, 2005(c) ---------------- -------------- ------------------- ----------------- ALGER LARGECAP GROWTH INSTITUTIONAL FUND CLASS I: Actual ................. $1,000.00 $1,028.50 $5.43 1.08% Hypothetical(a) ........ 1,000.00 1,019.44 5.41 1.08 CLASS R: Actual ................. 1,000.00 1,027.00 7.94 1.58% Hypothetical(a) ........ 1,000.00 1,016.96 7.90 1.58 ALGER SMALLCAP GROWTH INSTITUTIONAL FUND CLASS I: Actual ................. $1,000.00 $1,027.40 $6.13 1.22% Hypothetical(a) ........ 1,000.00 1,018.74 6.11 1.22 CLASS R: Actual ................. 1,000.00 1,027.00 8.39 1.67% Hypothetical(a) ........ 1,000.00 1,016.51 8.35 1.67 ALGER MIDCAP GROWTH INSTITUTIONAL FUND CLASS I: Actual ................. $1,000.00 $1,026.30 $5.58 1.11% Hypothetical(a) ........ 1,000.00 1,019.29 5.56 1.11 CLASS R: Actual ................. 1,000.00 1,024.40 8.03 1.60% Hypothetical(a) ........ 1,000.00 1,016.86 8.00 1.60 ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND CLASS I: Actual ................. $1,000.00 $1,051.60 $6.05 1.19% Hypothetical(a) ........ 1,000.00 1,018.89 5.96 1.19 CLASS R: Actual ................. 1,000.00 1,049.30 8.59 1.69% Hypothetical(a) ........ 1,000.00 1,016.41 8.45 1.69 ALGER BALANCED INSTITUTIONAL FUND CLASS I: Actual ................. $1,000.00 $1,020.60 $6.01 1.20% Hypothetical(a) ........ 1,000.00 1,018.84 6.01 1.20 CLASS R: Actual ................. 1,000.00 1,019.40 8.46 1.69% Hypothetical(a) ........ 1,000.00 1,016.41 8.45 1.69 ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND CLASS I: Actual ................. $1,000.00 $1,042.70 $6.03 1.19% Hypothetical(a) ........ 1,000.00 1,018.89 5.96 1.19 CLASS R: Actual ................. 1,000.00 1,037.20 8.49 1.68% Hypothetical(a) ........ 1,000.00 1,016.46 8.40 1.68
- --------------- (a) 5% annual return before expenses. (b) Expenses are equal to the annualized expense ratio of the respective share class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). (c) Annualized. THE ALGER INSTITUTIONAL FUNDS -4- PORTFOLIO SUMMARY* (UNAUDITED)
SOCIALLY LARGECAP SMALLCAP MIDCAP CAPITAL RESPONSIBLE GROWTH GROWTH GROWTH APPRECIATION GROWTH INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL SECTORS FUND FUND FUND FUND FUND - ------- ------------- ------------- ------------- ------------- ------------- Consumer Discretionary ............... 20.0% 13.5% 26.2% 9.9% 10.2% Consumer Staples ..................... 9.8 1.7 1.9 7.0 10.2 Energy ............................... 8.3 9.1 13.2 6.7 7.9 Financials ........................... 6.9 8.0 5.9 7.1 6.8 Health Care .......................... 23.0 19.9 17.6 25.5 22.2 Industrials .......................... 8.8 14.1 8.8 9.5 7.2 Information Technology ............... 17.1 25.0 21.2 25.2 26.2 Materials ............................ 2.5 2.3 2.0 0.7 0.6 Telecommunication Services ........... 2.7 2.8 1.6 1.5 1.5 Utilities ............................ 0.8 0.0 0.0 0.0 0.0 Cash and Net Other Assets ............ 0.1 3.6 1.6 6.9 7.2 ------ ------ ------ ------ ------ 100.0% 100.0% 100.0% 100.0% 100.0% ====== ====== ====== ====== ======
BALANCED INSTITUTIONAL SECTORS/SECURITY TYPE FUND - --------------------- ------------- Consumer Discretionary ........................................... 12.0% Consumer Staples ................................................. 6.4 Energy ........................................................... 5.3 Financials ....................................................... 4.5 Health Care ...................................................... 14.7 Industrials ...................................................... 4.8 Information Technology ........................................... 11.0 Materials ........................................................ 1.6 Telecommunication Services ....................................... 1.6 Utilities ........................................................ 0.5 ------- Total Common Stocks ............................................ 62.4 ------- Corporate Bonds .................................................. 9.0 Agency Bonds ..................................................... 9.5 US Treasury Bonds ................................................ 16.5 ------- Total Bonds .................................................... 35.0 ------- Cash and Net Other Assets ........................................ 2.6 ------- ................................................................. 100.0% ======= - ---------- * Based on Net Assets THE ALGER INSTITUTIONAL FUNDS -5- ALGER LARGECAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2005 SHARES COMMON STOCKS--99.9% VALUE --------- ------- AEROSPACE & DEFENSE--3.4% 27,200 Boeing Company (The) .............................. $ 1,618,944 14,100 General Dynamics Corporation ...................... 1,481,205 ----------- 3,100,149 ----------- BEVERAGES--2.1% 34,600 PepsiCo, Inc. ..................................... 1,925,144 ----------- BIOTECHNOLOGY--1.2% 15,100 Genentech, Inc.* .................................. 1,071,194 ----------- BUILDING & CONSTRUCTION--1.9% 24,100 Pulte Homes Inc. .................................. 1,721,945 ----------- CAPITAL MARKETS--2.4% 22,900 Merrill Lynch & Co., Inc. ......................... 1,234,997 17,600 Morgan Stanley .................................... 926,112 ----------- 2,161,109 ----------- CHEMICALS--2.5% 35,200 Dow Chemical Company (The) ........................ 1,616,736 16,100 Rohm and Haas Company ............................. 702,926 ----------- 2,319,662 ----------- COMMUNICATION EQUIPMENT--2.4% 46,200 Nokia Oyj ADR# .................................... 738,276 41,900 QUALCOMM Inc. ..................................... 1,461,891 ----------- 2,200,167 ----------- COMMUNICATION TECHNOLOGY--.8% 31,000 Nextel Partners, Inc. Cl. A* ...................... 729,120 ----------- COMPUTERS & PERIPHERALS--3.0% 49,500 Apple Computer, Inc.* ............................. 1,784,970 76,600 EMC Corporation* .................................. 1,004,992 ----------- 2,789,962 ----------- CONSUMER PRODUCTS--1.2% 44,400 Eastman Kodak Company ............................. 1,110,000 ----------- DIVERSIFIED FINANCIAL SERVICES--2.1% 28,400 Franklin Resources, Inc. .......................... 1,950,512 ----------- ELECTRICAL EQUIPMENT--.4% 8,200 Rockwell Automation, Inc. ......................... 379,086 ----------- ELECTRIC UTILITIES--.8% 9,900 Entergy Corporation ............................... 725,670 ----------- ENERGY EQUIPMENT & SERVICES--3.9% 30,900 National-Oilwell Varco Inc.* ...................... 1,227,966 11,700 Suncor Energy, Inc. ............................... 431,262 18,000 Transocean Inc.* .................................. 834,660 64,700 Williams Companies, Inc. (The) .................... 1,101,194 ----------- 3,595,082 ----------- FINANCIAL INFORMATION SERVICES--1.0% 33,200 Genworth Financial Inc. Cl. A ..................... 927,940 ----------- THE ALGER INSTITUTIONAL FUNDS -6- ALGER LARGECAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- FOOD & BEVERAGES--.4% 9,100 Yum! Brands, Inc. ................................. $ 427,336 ----------- FOOD & STAPLES RETAILING--3.7% 33,900 CVS Corporation ................................... 1,748,562 33,750 Wal-Mart Stores, Inc. ............................. 1,590,975 ----------- 3,339,537 ----------- FREIGHT & LOGISTICS--1.5% 16,250 FedEx Corp. ....................................... 1,380,437 ----------- HEALTH CARE--1.6% 11,100 WellPoint Inc. * .................................. 1,418,025 ----------- HEALTH CARE EQUIPMENT & SUPPLIES--3.0% 13,600 Baxter International Inc. ......................... 504,560 33,800 Medtronic, Inc. ................................... 1,781,260 13,700 Varian Medical Systems, Inc.* ..................... 462,238 ----------- 2,748,058 ----------- HEALTH CARE PROVIDERS & SERVICES--8.1% 23,400 Caremark Rx, Inc.* ................................ 937,170 18,300 CIGNA Corporation ................................. 1,683,234 43,400 HCA, Inc. ......................................... 2,423,456 45,600 Health Management Associates, Inc. Cl. A .......... 1,127,688 22,600 Humana Inc.* ...................................... 783,090 8,500 PacifiCare Health Systems, Inc.* .................. 507,960 ----------- 7,462,598 ----------- HOTELS, RESTAURANTS & LEISURE--4.5% 24,200 Harrah's Entertainment, Inc. ...................... 1,588,004 84,400 Hilton Hotels Corporation ......................... 1,842,452 12,100 Starwood Hotels & Resorts Worldwide, Inc. ......... 657,514 ----------- 4,087,970 ----------- INDUSTRIAL CONGLOMERATES--1.4% 41,800 Tyco International Ltd. ........................... 1,308,758 ----------- INSURANCE--1.4% 36,900 St. Paul Travelers Companies, Inc. (The) .......... 1,321,020 ----------- INTERNET & CATALOG RETAIL--2.0% 26,300 eBay Inc.* ........................................ 834,499 85,100 Netflix Inc.* ..................................... 983,756 ----------- 1,818,255 ----------- INTERNET SOFTWARE & SERVICES--4.1% 7,400 Google Inc. Cl. A* ................................ 1,628,000 62,700 Yahoo! Inc. * ..................................... 2,163,777 ----------- 3,791,777 ----------- MACHINERY--2.1% 21,400 Caterpillar Inc. .................................. 1,884,270 ----------- THE ALGER INSTITUTIONAL FUNDS -7- ALGER LARGECAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- MEDIA--5.1% 51,800 Disney (Walt) Company ............................. $ 1,367,520 109,700 News Corporation Cl. A ............................ 1,676,216 13,600 Viacom Inc. Cl. B ................................. 470,832 41,650 XM Satellite Radio Holdings Inc. Cl. A* ........... 1,155,371 ----------- 4,669,939 ----------- METALS & MINING--.8% 15,600 Peabody Energy Corporation ........................ 682,812 ----------- MULTILINE RETAIL--2.4% 14,600 Federated Department Stores, Inc. ................. 839,500 29,000 Penny, (JC) Co. Inc. .............................. 1,374,890 ----------- 2,214,390 ----------- OIL & GAS--3.7% 11,300 BP PLC Sponsored ADR# ............................. 688,170 8,700 Enterprise Products Partners L.P. ................. 224,721 31,400 Exxon Mobil Corporation ........................... 1,790,742 27,600 Sasol Ltd. ADR# ................................... 641,700 ----------- 3,345,333 ----------- PERSONAL PRODUCTS--3.6% 33,400 Avon Products, Inc. ............................... 1,338,672 37,400 Gillette Company (The) ............................ 1,931,336 ----------- 3,270,008 ----------- PHARMACEUTICALS--9.0% 24,200 Johnson & Johnson ................................. 1,660,846 39,700 Merck & Co. Inc. .................................. 1,345,830 19,000 Novartis AG ADR# .................................. 925,870 32,200 Sanofi-Aventis ADR# ............................... 1,428,714 94,100 Schering-Plough Corporation ....................... 1,963,867 20,900 Wyeth ............................................. 939,246 ----------- 8,264,373 ----------- RETAIL--1.0% 50,400 Saks Incorporated ................................. 858,816 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.0% 73,250 Intel Corporation ................................. 1,722,840 42,150 Linear Technology Corporation ..................... 1,506,441 16,100 Xilinx, Inc. ...................................... 433,734 ----------- 3,663,015 ----------- SOFTWARE--3.5% 9,300 Electronic Arts Inc.* ............................. 496,527 58,200 Microsoft Corporation ............................. 1,472,460 107,000 Oracle Corporation* ............................... 1,236,920 ----------- 3,205,907 ----------- SPECIALTY RETAIL--1.5% 26,450 Lowe's Companies, Inc. ............................ 1,378,310 ----------- THE ALGER INSTITUTIONAL FUNDS -8- ALGER LARGECAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- TOBACCO--.5% 7,200 Altria Group, Inc. ................................ $ 467,928 ----------- WIRELESS TELECOMMUNICATION SERVICES--1.9% 76,500 Sprint Corporation ................................ 1,702,890 ----------- Total Common Stocks (Cost $90,401,501) .............................. 91,418,504 ----------- PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS--0.2% --------- U.S. AGENCY OBLIGATIONS $160,000 Federal Home Loan Banks, 2.61%, 5/2/05 (Cost $159,977) ............................... 159,977 ----------- Total Investments (Cost $90,561,478)(a) ................................ 100.1% 91,578,481 Liabilities in Excess of Other Assets .................. (0.1) (50,632) ----- ----------- Net Assets ............................................. 100.0% $91,527,849 ===== =========== - ------------ * Non-income producing security. # American Depositary Receipts. (a) At April 30,2005, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $90,561,478, amounted to $1,017,003 which consisted of aggregate gross unreliazed appreciation of $4,163,607 and aggregate gross unrealized depreciation of $3,146,604. See Notes to Financial Statements. THE ALGER INSTITUTIONAL FUNDS -9- ALGER SMALLCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2005 SHARES COMMON STOCKS--96.4% VALUE --------- ------- AEROSPACE & DEFENSE--3.1% 47,300 BE Aerospace, Inc.* ............................... $ 574,222 20,150 Esterline Technologies Corporation* ............... 651,248 20,050 SI International Inc.* ............................ 451,927 ----------- 1,677,397 ----------- AIRLINES--.9% 58,900 AirTran Holdings, Inc.* ........................... 488,870 ----------- BIOTECHNOLOGY--5.1% 40,700 Encysive Pharmaceuticals Inc.* .................... 397,232 21,700 Protein Design Labs, Inc.* ........................ 387,996 23,650 Rigel Pharmaceuticals, Inc.* ...................... 405,597 16,850 Serologicals Corporation* ......................... 362,781 26,500 Theravance, Inc.* ................................. 469,050 41,850 Vicuron Pharmaceuticals Inc.* ..................... 684,248 ----------- 2,706,904 ----------- BUSINESS SERVICES--.8% 9,350 MicroStrategy Incorporated* ....................... 407,005 ----------- CAPITAL MARKETS--2.5% 11,250 Affiliated Managers Group, Inc.* .................. 703,462 17,450 National Financial Partners Corporation ........... 667,288 ----------- 1,370,750 ----------- CHEMICALS--1.3% 18,300 Lubrizol Corporation .............................. 709,491 ----------- COMMERCIAL BANKS--1.9% 28,200 Boston Private Financial Holdings, Inc. ........... 629,988 11,150 East West Bancorp, Inc. ........................... 358,138 ----------- 988,126 ----------- COMMERCIAL SERVICES & SUPPLIES--4.1% 15,350 CoStar Group Inc.* ................................ 607,093 31,950 FTI Consulting, Inc.* ............................. 705,456 37,100 Gevity HR, Inc. ................................... 595,455 7,600 Universal Technical Institute Inc.* ............... 265,316 ----------- 2,173,320 ----------- COMMUNICATION EQUIPMENT--2.9% 82,800 Arris Group Inc.* ................................. 628,452 20,500 NETGEAR, Inc.* .................................... 330,665 84,500 Powerwave Technologies, Inc.* ..................... 610,090 ----------- 1,569,207 ----------- COMMUNICATION TECHNOLOGY--.8% 28,500 Cox Radio, Inc. Cl. A* ............................ 448,020 ----------- THE ALGER INSTITUTIONAL FUNDS -10- ALGER SMALLCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- COMPUTERS & PERIPHERALS--4.1% 21,000 Applied Films Corporation* ........................ $ 502,110 11,900 Avid Technology, Inc.* ............................ 589,169 103,850 Maxtor Corporation* ............................... 503,672 58,150 Silicon Image, Inc.* .............................. 585,571 ----------- 2,180,522 ----------- COMPUTER SERVICES--1.0% 28,750 Open Solutions Inc.* .............................. 537,625 ----------- ELECTRIC AND ELECTRONIC EQUIPMENT--1.3% 9,950 Roper Industries, Inc. ............................ 673,317 ----------- ENERGY--.7% 8,700 Arch Coal, Inc. ................................... 385,758 ----------- ENERGY EQUIPMENT & SERVICES--2.9% 24,400 Core Laboratories N.V.* ........................... 575,840 17,400 Lone Star Technologies, Inc.* ..................... 677,556 21,500 Pioneer Drilling Company* ......................... 283,585 ----------- 1,536,981 ----------- FINANCIAL INFORMATION SERVICES--1.0% 22,850 GFI Group Inc.* ................................... 533,547 ----------- FOOD & STAPLES RETAILING--.8% 16,150 Performance Food Group Co.* ....................... 434,273 ----------- FOOD PRODUCTS--.9% 11,650 Ralcorp Holdings, Inc.* ........................... 461,573 ----------- HEALTH CARE EQUIPMENT & SUPPLIES--3.3% 24,100 ABIOMED, Inc.* .................................... 244,615 9,050 Given Imaging Ltd.* ............................... 242,178 22,150 Immucor, Inc.* .................................... 660,956 10,600 Intuitive Surgical, Inc.* ......................... 455,164 4,300 Sybron Dental Specialties, Inc.* .................. 160,175 ----------- 1,763,088 ----------- HEALTH CARE PROVIDERS & SERVICES--8.1% 17,500 Psychiatric Solutions, Inc.* ...................... 752,850 11,800 Sierra Health Services, Inc.* ..................... 763,342 16,000 Sunrise Senior Living Inc.* ....................... 819,840 33,600 Symbion, Inc.* .................................... 715,008 22,700 VCA Antech, Inc.* ................................. 528,456 26,050 WellCare Health Plans Inc.* ....................... 768,475 ----------- 4,347,971 ----------- HOTELS, RESTAURANTS & LEISURE--2.3% 27,242 Applebee's International, Inc. .................... 675,057 11,950 Red Robin Gourmet Burgers Inc.* ................... 579,097 ----------- 1,254,154 ----------- THE ALGER INSTITUTIONAL FUNDS -11- ALGER SMALLCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- INFORMATION TECHNOLOGY SERVICES--2.4% 12,300 Global Payments Inc. .............................. $ 796,548 27,600 Kanbay International Inc.* ........................ 496,248 ----------- 1,292,796 ----------- INSURANCE--1.6% 16,800 Ohio Casualty Corporation* ........................ 393,960 15,750 Platinum Underwriters Holdings, Inc. .............. 466,200 ----------- 860,160 ----------- INTERNET SOFTWARE & SERVICES--4.7% 66,950 aQuantive, Inc.* .................................. 743,145 20,400 Arbinet Holdings, Inc. * .......................... 393,924 10,400 Netease.com Inc. ADR*# ............................ 513,656 35,650 Openwave Systems, Inc.* ........................... 477,353 40,200 ValueClick, Inc.* ................................. 416,472 ----------- 2,544,550 ----------- LEISURE EQUIPMENT & PRODUCTS--1.4% 27,700 LIFE TIME FITNESS, Inc.* .......................... 749,839 ----------- MACHINERY--4.8% 15,350 Actuant Corporation Cl. A* ........................ 653,756 5,400 CUNO Incorporated* ................................ 273,888 16,200 Gardner Denver Inc.* .............................. 591,948 20,050 Joy Global Inc. ................................... 679,093 12,350 Watts Water Technologies, Inc. Cl. A .............. 385,938 ----------- 2,584,623 ----------- MEDIA--4.4% 102,750 Harris Interactive Inc.* .......................... 427,440 12,890 Media General, Inc. Cl. A ......................... 789,899 73,800 Spanish Broadcasting System, Inc. Cl. A * ......... 616,230 50,100 World Wrestling Entertainment, Inc. ............... 535,569 ----------- 2,369,138 ----------- MEDICAL TECHNOLOGY--.7% 12,700 Syneron Medical Ltd.* ............................. 368,300 ----------- METALS & MINING--2.0% 24,100 Alpha Natural Resources, Inc.* .................... 557,915 8,800 Cleveland-Cliffs Inc. ............................. 510,488 ----------- 1,068,403 ----------- OIL & GAS--4.5% 108,150 Grey Wolf, Inc.* .................................. 648,900 29,750 Range Resources Corporation ....................... 673,838 29,014 Todco * ........................................... 645,562 14,600 Whiting Petroleum Corporation* .................... 441,942 ----------- 2,410,242 ----------- THE ALGER INSTITUTIONAL FUNDS -12- ALGER SMALLCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- PHARMACEUTICALS--1.4% 30,450 Impax Laboratories, Inc.* ......................... $ 495,421 10,850 Pharmion Corp.* ................................... 250,635 ----------- 746,056 ----------- ROAD & RAIL--1.3% 22,150 Landstar Systems, Inc.* ........................... 678,897 ----------- SEMICONDUCTOR CAPITAL EQUIPMENT--2.0% 18,400 FormFactor Inc.* .................................. 420,256 61,450 SiRF Technology Holdings, Inc.* ................... 701,145 ----------- 1,121,401 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--3.2% 17,100 ATMI, Inc.* ....................................... 391,846 24,300 Microsemi Corporation* ............................ 411,156 35,100 Semtech Corporation* .............................. 592,839 11,800 Sigmatel Incorporated* ............................ 309,042 ----------- 1,704,883 ----------- SOFTWARE--5.1% 11,950 Cerner Corporation* ............................... 693,817 15,137 Fair Isaac Corporation ............................ 497,705 17,150 Hyperion Solutions Corporation* ................... 697,491 36,400 Quest Software, Inc. * ............................ 431,704 39,050 VeriFone Holdings, Inc.* .......................... 419,787 ----------- 2,740,504 ----------- SPECIALTY RETAIL--4.0% 23,150 AnnTaylor Stores Corporation* ..................... 566,944 10,750 Guitar Center, Inc.* .............................. 530,513 18,450 Pacific Sunwear of California, Inc.* .............. 417,154 19,300 PETCO Animal Supplies, Inc.* ...................... 604,090 ----------- 2,118,701 ----------- THRIFTS & MORTGAGE FINANCE--1.0% 48,483 Bank Mutual Corporation ........................... 510,526 ----------- WIRELESS TELECOMMUNICATION SERVICES--2.1% 25,850 InPhonic, Inc.* ................................... 398,607 98,650 UbiquiTel Inc.* ................................... 713,240 ----------- 1,111,847 ----------- Total Common Stocks (Cost $49,462,719) .............................. 51,628,765 ----------- THE ALGER INSTITUTIONAL FUNDS -13- ALGER SMALLCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS--3.1% VALUE --------- ------- U.S. AGENCY OBLIGATIONS $1,650,000 Federal Home Loan Banks, 2.61%, 5/2/05 (Cost $1,649,761) $ 1,649,761 ----------- Total Investments (Cost $51,112,480)(a) ................................... 99.5% 53,278,526 Other Assets in Excess of Liabilities ..................... .5 251,338 ---- ----------- Net Assets ................................................ 100% $53,529,864 ==== =========== - ------------- * Non-income producing security. # American Depositary Receipts. (a) At April 30, 2005, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $51,112,480 amounted to $2,166,046 which consisted of aggregate gross unrealized appreciation of $5,390,991 and aggregate gross unrealized depreciation of $3,224,945. See Notes to Financial Statements. THE ALGER INSTITUTIONAL FUNDS -14- ALGER MIDCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2005 SHARES COMMON STOCKS--98.4% VALUE --------- ------- AEROSPACE & DEFENSE--2.0% 267,775 L-3 Communications Holdings, Inc. ................. $ 19,003,992 ------------ BIOTECHNOLOGY--4.3% 309,650 Charles River Laboratories International, Inc.* ... 14,668,120 456,900 ImClone Systems Incorporated* ..................... 14,552,265 231,800 OSI Pharmaceuticals, Inc.* ........................ 10,972,253 ------------ 40,192,638 ------------ BUILDING & CONSTRUCTION--2.5% 195,100 Pulte Homes Inc. .................................. 13,939,895 119,650 Toll Brothers, Inc.* .............................. 9,069,470 ------------ 23,009,365 ------------ CAPITAL MARKETS--2.3% 209,830 Affiliated Managers Group, Inc.* .................. 13,120,670 70,150 Greenhill & Co., Inc. ............................. 2,209,725 139,050 Investors Financial Services Corp. ................ 5,833,148 ------------ 21,163,543 ------------ CHEMICALS--1.5% 561,367 Lyondell Chemical Company ......................... 14,084,698 ------------ COMMERCIAL SERVICES & SUPPLIES--4.0% 607,100 Education Management Corporation* ................. 16,998,800 297,550 First Marblehead Corporation (The)* ............... 11,464,601 1,245,500 Service Corporation International ................. 8,768,320 ------------ 37,231,721 ------------ COMMUNICATION EQUIPMENT--1.7% 1,255,800 Arris Group Inc.* ................................. 9,531,522 1,395,200 Brocade Communications Systems, Inc.* ............. 6,083,072 ------------ 15,614,594 ------------ COMMUNICATION TECHNOLOGY--1.5% 617,000 Nextel Partners, Inc. Cl. A* ...................... 14,511,840 ------------ COMPUTERS & PERIPHERALS--4.7% 592,800 Apple Computer, Inc.* ............................. 21,376,368 719,350 PalmOne, Inc.* .................................... 15,415,671 560,600 Western Digital Corporation* ...................... 7,114,014 ------------ 43,906,053 ------------ COMPUTER SERVICES--1.1% 911,400 Akamai Technologies, Inc.* ........................ 10,763,634 ------------ CONSTRUCTION & ENGINEERING--.4% 153,350 Chicago Bridge & Iron Company N.V. ................ 3,431,973 ------------ DIVERSIFIED FINANCIAL SERVICES--1.4% 638,900 CapitalSource Inc.* ............................... 13,416,900 ------------ ELECTRICAL EQUIPMENT--1.5% 307,700 Rockwell Automation, Inc. ......................... 14,224,971 ------------ ELECTRIC AND ELECTRONIC EQUIPMENT--2.2% 301,100 Roper Industries, Inc. ............................ 20,375,437 ------------ THE ALGER INSTITUTIONAL FUNDS -15- ALGER MIDCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- ELECTRONIC EQUIPMENT & INSTRUMENTS--1.2% 318,850 Trimble Navigation Limited* ....................... $ 10,974,817 ------------ ENERGY EQUIPMENT & SERVICES--6.6% 357,800 BJ Services Company ............................... 17,442,750 313,600 Lone Star Technologies, Inc.* ..................... 12,211,584 498,900 National-Oilwell Varco Inc.* ...................... 19,826,286 94,100 Transocean Inc.* .................................. 4,363,417 432,200 Williams Companies, Inc. (The) .................... 7,356,044 ------------ 61,200,081 ------------ FINANCIAL INFORMATION SERVICES--1.0% 340,300 Genworth Financial Inc. Cl. A ..................... 9,511,385 ------------ HEALTH CARE EQUIPMENT & SUPPLIES--2.3% 202,050 C.R. Bard, Inc. ................................... 14,379,898 215,500 Varian Medical Systems, Inc.* ..................... 7,270,970 ------------ 21,650,868 ------------ HEALTH CARE PROVIDERS & SERVICES--9.4% 245,900 AMERIGROUP Corporation* ........................... 8,636,008 496,700 Community Health Systems Inc.* .................... 18,104,715 103,950 Covance Inc.* ..................................... 4,744,278 199,200 DaVita, Inc.* ..................................... 8,027,760 477,400 Health Management Associates, Inc. Cl. A .......... 11,806,102 273,300 Humana Inc.* ...................................... 9,469,845 93,900 Medco Health Solutions, Inc.* ..................... 4,786,083 211,000 PacifiCare Health Systems, Inc.* .................. 12,609,360 92,800 Quest Diagnostics Incorporated .................... 9,818,240 ------------ 88,002,391 ------------ HOTELS, RESTAURANTS & LEISURE--5.4% 229,300 Applebee's International, Inc. .................... 5,682,054 177,950 Harrah's Entertainment, Inc. ...................... 11,677,079 288,900 Hilton Hotels Corporation ......................... 6,306,687 147,700 Kerzner International Limited* .................... 8,136,793 317,900 Penn National Gaming, Inc.* ....................... 10,013,850 152,000 Starwood Hotels & Resorts Worldwide, Inc. ......... 8,259,680 ------------ 50,076,143 ------------ HOUSEHOLD DURABLES--.4% 88,800 Garmin Ltd. ....................................... 3,507,600 ------------ INFORMATION TECHNOLOGY SERVICES--1.5% 216,000 Global Payments Inc. .............................. 13,988,160 ------------ INTERNET & CATALOG RETAIL--1.9% 1,525,817 Netflix Inc.* ..................................... 17,638,445 ------------ INTERNET SOFTWARE & SERVICES--1.6% 301,850 Netease.com Inc. ADR*# ............................ 14,908,371 ------------ LEISURE & ENTERTAINMENT--1.9% 550,600 Shanda Interactive Entertainment Ltd.* ............ 17,712,802 ------------ THE ALGER INSTITUTIONAL FUNDS -16- ALGER MIDCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- MACHINERY--2.7% 283,375 Joy Global Inc. ................................... $ 9,597,911 403,600 Pentair, Inc. ..................................... 16,055,208 ------------ 25,653,119 ------------ MACHINERY - OIL WELL EQUIPMENT & SERVICES--1.7% 648,000 Patterson-UTI Energy, Inc. ........................ 15,532,560 ------------ MEDIA--6.9% 341,700 DreamWorks Animation SKG, Inc.* ................... 12,813,750 333,050 Lamar Advertising Company, Cl. A* ................. 12,449,409 284,400 Liberty Media International, Inc.* ................ 11,794,068 368,900 Univision Communications Inc. Cl. A* .............. 9,698,381 418,700 Westwood One, Inc.* ............................... 7,662,210 372,950 XM Satellite Radio Holdings Inc. Cl. A* ........... 10,345,633 ------------ 64,763,451 ------------ METALS & MINING--2.7% 75,700 Cleveland-Cliffs Inc. ............................. 4,391,357 478,800 Peabody Energy Corporation ........................ 20,957,076 ------------ 25,348,433 ------------ OIL & GAS--2.8% 277,300 Enterprise Products Partners L.P. ................. 7,162,659 300,800 EOG Resources, Inc. ............................... 14,303,040 145,400 Talisman Energy Inc. .............................. 4,383,810 ------------ 25,849,509 ------------ PERSONAL PRODUCTS--.8% 176,500 Avon Products, Inc. ............................... 7,074,120 ------------ PHARMACEUTICALS--1.5% 241,550 Sepracor Inc.* .................................... 14,473,676 ------------ RETAIL--3.3% 269,000 Estee Lauder Companies Inc. Cl. A ................. 10,332,290 1,182,700 Saks Incorporated ................................. 20,153,208 ------------ 30,485,498 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.8% 530,100 ATI Technologies Inc.* ............................ 7,845,480 393,500 Linear Technology Corporation ..................... 14,063,690 842,000 Teradyne, Inc.* ................................... 9,278,840 526,100 Xilinx, Inc. ...................................... 14,173,134 ------------ 45,361,144 ------------ SOFTWARE--2.6% 179,200 Electronic Arts Inc.* ............................. 9,567,488 189,750 Intuit Inc.* ...................................... 7,646,925 312,150 Take-Two Interactive Software, Inc.* .............. 7,344,890 ------------ 24,559,303 ------------ THE ALGER INSTITUTIONAL FUNDS -17- ALGER MIDCAP GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- SPECIALTY RETAIL--1.9% 117,400 Electronics Boutique Holdings Corp.* .............. $ 6,542,702 426,800 PETsMART, Inc. .................................... 11,374,220 ------------ 17,916,922 ------------ TEXTILES, APPAREL & LUXURY GOODS--2.4% 482,300 Coach, Inc.* ...................................... 12,925,640 418,200 Fossil, Inc.* ..................................... 9,727,332 ------------ 22,652,972 ------------ Total Common Stocks (Cost $908,825,843) ............................. 919,773,129 ------------ PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS--1.3% ---------- U.S. AGENCY OBLIGATIONS $12,200,000 Federal Home Loan Banks, 2.61%, 5/2/05 (Cost $12,198,231) .............................. 12,198,231 ------------ Total Investments (Cost $921,024,074) (a) ............................... 99.7% 931,971,360 Other Assets in Excess of Liabilities ................... .3 2,560,350 ----- ------------ Net Assets .............................................. 100.0% $934,531,710 ===== ============ - ------------ * Non-income producing security. # American Depositary Receipts. (a) At April 30, 2005, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $921,024,074, amounted to $10,947,286 which consisted of aggregate gross unrealized appreciation of $62,107,005 and aggregate gross unrealized depreciation of $51,159,719. See Notes to Financial Statements. THE ALGER INSTITUTIONAL FUNDS -18- ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2005 SHARES COMMON STOCKS--93.1% VALUE --------- ------- AEROSPACE & DEFENSE--2.4% 12,900 General Dynamics Corporation ...................... $ 1,355,145 15,200 United Technologies Corporation ................... 1,546,144 ------------ 2,901,289 ------------ AIR FREIGHT & LOGISTICS--1.8% 33,700 UTI Worldwide, Inc. ............................... 2,161,518 ------------ BEVERAGES--.8% 17,800 PepsiCo, Inc. ..................................... 990,392 ------------ BIOTECHNOLOGY--6.2% 26,700 Amgen Inc.* ....................................... 1,554,207 35,100 Genentech, Inc.* .................................. 2,489,994 55,500 Gilead Sciences, Inc. * ........................... 2,059,050 12,700 OSI Pharmaceuticals, Inc.* ........................ 601,154 37,100 Serologicals Corporation* ......................... 798,763 ------------ 7,503,168 ------------ BUSINESS SERVICES--.4% 11,700 MicroStrategy Incorporated* ....................... 509,301 ------------ CAPITAL MARKETS--1.0% 23,100 Merrill Lynch & Co., Inc. ......................... 1,245,783 ------------ CHEMICALS--.7% 8,800 Huntsman Corporation .............................. 185,152 15,700 Lubrizol Corporation .............................. 608,689 ------------ 793,841 ------------ COMMERCIAL BANKS--.8% 15,300 Wells Fargo & Company ............................. 917,082 ------------ COMMERCIAL SERVICES & SUPPLIES--.6% 19,800 First Marblehead Corporation (The)* ............... 762,894 ------------ COMMUNICATION EQUIPMENT--2.9% 36,500 Arris Group Inc.* ................................. 277,035 93,000 Brocade Communications Systems, Inc.* ............. 405,480 124,900 Nokia Oyj ADR# .................................... 1,995,902 26,150 QUALCOMM Inc. ..................................... 912,373 ------------ 3,590,790 ------------ COMMUNICATION TECHNOLOGY--1.1% 55,800 Nextel Partners, Inc. Cl. A* ...................... 1,312,416 ------------ COMPUTERS & PERIPHERALS--2.3% 30,600 Apple Computer, Inc.* ............................. 1,103,436 48,600 EMC Corporation* .................................. 637,632 41,800 Memc Electronic Materials, Inc.* .................. 490,314 44,500 Western Digital Corporation* ...................... 564,705 ------------ 2,796,087 ------------ THE ALGER INSTITUTIONAL FUNDS -19- ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- COMPUTER TECHNOLOGY--.2% 8,000 NAVTEQ* ........................................... $ 291,360 ------------ CONSUMER FINANCE--.2% 4,200 Capital One Financial Corporation ................. 297,738 ------------ DIVERSIFIED FINANCIAL SERVICES--2.0% 26,300 Citigroup Inc. .................................... 1,235,048 13,300 Lehman Brothers Holdings Inc. ..................... 1,219,876 ------------ 2,454,924 ------------ ENERGY EQUIPMENT & SERVICES--3.4% 78,100 National-Oilwell Varco Inc.* ...................... 3,103,694 14,300 Schlumberger Limited .............................. 978,263 ------------ 4,081,957 ------------ FINANCIAL INFORMATION SERVICES--1.6% 71,200 Genworth Financial Inc. Cl. A ..................... 1,990,040 ------------ FOOD & STAPLES RETAILING--3.6% 69,100 CVS Corporation ................................... 3,564,178 29,000 Performance Food Group Co.* ....................... 779,810 ------------ 4,343,988 ------------ FREIGHT & LOGISTICS--1.1% 15,800 FedEx Corp. ....................................... 1,342,210 ------------ HEALTH CARE--.8% 7,400 WellPoint Inc. * .................................. 945,350 ------------ HEALTH CARE EQUIPMENT & SUPPLIES--1.7% 19,200 Beckman Coulter, Inc. ............................. 1,280,832 19,400 St. Jude Medical, Inc.* ........................... 757,182 ------------ 2,038,014 ------------ HEALTH CARE PROVIDERS & SERVICES--6.3% 17,500 AMERIGROUP Corporation* ........................... 614,600 26,400 Caremark Rx, Inc.* ................................ 1,057,320 8,200 CIGNA Corporation ................................. 754,236 26,300 Community Health Systems Inc.* .................... 958,635 25,000 HCA, Inc. ......................................... 1,396,000 23,000 McKesson Corporation .............................. 851,000 23,100 PacifiCare Health Systems, Inc.* .................. 1,380,456 6,500 UnitedHealth Group Incorporated ................... 614,315 ------------ 7,626,562 ------------ HOTELS, RESTAURANTS & LEISURE--2.1% 117,200 Hilton Hotels Corporation ......................... 2,558,476 ------------ HOUSEHOLD DURABLES--.1% 3,300 Garmin Ltd. ....................................... 130,350 ------------ HOUSEHOLD PRODUCTS--1.3% 28,700 Procter & Gamble Company .......................... 1,554,105 ------------ THE ALGER INSTITUTIONAL FUNDS -20- ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- INDUSTRIAL CONGLOMERATES--3.3% 54,700 General Electric Company .......................... $ 1,980,140 66,400 Tyco International Ltd. ........................... 2,078,984 ------------ 4,059,124 ------------ INFORMATION TECHNOLOGY SERVICES--0.2% 5,600 Automatic Data Processing, Inc. ................... 243,264 ------------ INSURANCE--.8% 28,400 St. Paul Travelers Companies, Inc. (The) .......... 1,016,720 ------------ INTERNET SOFTWARE & SERVICES--8.4% 22,700 Google Inc. Cl. A* ................................ 4,994,000 27,200 Netease.com Inc. ADR*# ............................ 1,343,408 113,100 Yahoo! Inc. * ..................................... 3,903,081 ------------ 10,240,489 ------------ LEISURE & ENTERTAINMENT--1.7% 64,800 Shanda Interactive Entertainment Ltd. * ........... 2,084,616 ------------ MACHINERY--OIL WELL EQUIPMENT & SERVICES--.6% 29,900 Patterson-UTI Energy, Inc. ........................ 716,703 ------------ MEDIA--3.6% 20,200 Entercom Communications Corp.* .................... 651,046 121,800 News Corporation Cl. A ............................ 1,861,104 108,300 Time Warner Inc.* ................................. 1,820,523 ------------ 4,332,673 ------------ METALS & MINING--1.8% 14,300 Alpha Natural Resources, Inc.* .................... 331,045 41,400 Peabody Energy Corporation ........................ 1,812,078 ------------ 2,143,123 ------------ OIL & GAS--1.0% 20,300 BP PLC Sponsored ADR# ............................. 1,236,270 ------------ PERSONAL PRODUCTS--1.4% 31,900 Gillette Company (The) ............................ 1,647,316 ------------ PHARMACEUTICALS--10.6% 12,000 Eli Lilly and Company ............................. 701,640 74,175 IVAX Corporation* ................................. 1,401,907 43,000 Johnson & Johnson ................................. 2,951,090 18,000 Merck & Co. Inc. .................................. 610,200 29,100 Novartis AG ADR# .................................. 1,418,043 88,830 Pfizer Inc. ....................................... 2,413,511 30,300 Sanofi-Aventis ADR# ............................... 1,344,411 58,600 Schering-Plough Corporation ....................... 1,222,982 14,400 Sepracor Inc.* .................................... 862,848 ------------ 12,926,632 ------------ RETAIL--1.0% 12,300 Neiman Marcus Group, Inc. ......................... 1,209,336 ------------ THE ALGER INSTITUTIONAL FUNDS -21- ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- ROAD & RAIL--1.0% 24,200 Burlington Northern Santa Fe Corporation .......... $ 1,167,650 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.1% 34,500 ATI Technologies Inc.* ............................ 510,600 18,600 Broadcom Corporation Cl. A* ....................... 556,326 62,700 Intel Corporation ................................. 1,474,704 36,400 Marvell Technology Group Ltd.* .................... 1,218,672 232,500 Skyworks Solutions, Inc.* ......................... 1,218,300 ------------ 4,978,602 ------------ SOFTWARE--4.9% 25,600 Cognos, Inc.* ..................................... 968,704 14,700 Intuit Inc.* ...................................... 592,410 80,700 Microsoft Corporation ............................. 2,041,710 167,700 Oracle Corporation* ............................... 1,938,612 44,350 VeriFone Holdings, Inc.* .......................... 476,763 ------------ 6,018,199 ------------ SPECIALTY RETAIL--2.2% 4,700 Abercrombie & Fitch Co. Cl. A ..................... 253,565 32,500 Bed Bath & Beyond Inc.* ........................... 1,209,325 22,850 Lowe's Companies, Inc. ............................ 1,190,714 ------------ 2,653,604 ------------ TEXTILES, APPAREL & LUXURY GOODS--.9% 42,600 Coach, Inc.* ...................................... 1,141,680 ------------ WIRELESS TELECOMMUNICATION SERVICES--.4% 8,700 SpectraSite, Inc.* ................................ 488,332 ------------ Total Common Stocks (Cost $108,140,133 ) ............................ 113,443,968 ------------ PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS--3.9% ---------- U.S. AGENCY OBLIGATIONS $4,700,000 Federal Home Loan Banks, 2.61%, 5/2/05 (Cost $4,699,319) ............................... 4,699,318 ------------ Total Investments (Cost $112,839,452)(a) ................................ 97.0% 118,143,286 Other Assets in Excess of Liabilities ................... 3.0 3,668,626 ----- ------------ Net Assets .............................................. 100.0% $121,811,912 ===== ============ - ------------- * Non-income producing security. # American Depositary Receipts. (a) At April 30, 2005, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $112,839,452 amounted to $5,303,834 which consisted of aggregate gross unrealized appreciation of $8,982,116 and aggregate gross unrealized depreciation of $3,678,282. See Notes to Financial Statements. THE ALGER INSTITUTIONAL FUNDS -22- ALGER BALANCED INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2005 SHARES COMMON STOCKS--62.4% VALUE --------- ------- AEROSPACE & DEFENSE--1.5% 50 Boeing Company (The) .............................. $ 2,976 200 General Dynamics Corporation ...................... 21,010 ---------- 23,986 ---------- BEVERAGES--1.4% 400 PepsiCo, Inc. ..................................... 22,256 ---------- BIOTECHNOLOGY--.9% 200 Genentech, Inc.* .................................. 14,188 ---------- BUILDING & CONSTRUCTION--1.1% 250 Pulte Homes Inc. .................................. 17,863 ---------- CAPITAL MARKETS--1.6% 300 Merrill Lynch & Co., Inc. ......................... 16,179 200 Morgan Stanley .................................... 10,524 ---------- 26,703 ---------- CHEMICALS--1.5% 400 Dow Chemical Company (The) ........................ 18,372 150 Rohm and Haas Company ............................. 6,549 ---------- 24,921 ---------- COMMUNICATION EQUIPMENT--1.5% 500 Nokia Oyj ADR# .................................... 7,990 450 QUALCOMM Inc. ..................................... 15,701 ---------- 23,691 ---------- COMMUNICATION TECHNOLOGY--.5% 350 Nextel Partners, Inc. Cl. A* ...................... 8,232 ---------- COMPUTERS & PERIPHERALS--1.9% 550 Apple Computer, Inc.* ............................. 19,833 850 EMC Corporation* .................................. 11,152 ---------- 30,985 ---------- CONSUMER PRODUCTS--.8% 500 Eastman Kodak Company ............................. 12,500 ---------- DIVERSIFIED FINANCIAL SERVICES--1.3% 300 Franklin Resources, Inc. .......................... 20,604 ---------- ELECTRICAL EQUIPMENT--.3% 100 Rockwell Automation, Inc. ......................... 4,623 ---------- ELECTRIC UTILITIES--.4% 100 Entergy Corporation ............................... 7,330 ---------- ENERGY EQUIPMENT & SERVICES--2.5% 350 National-Oilwell Varco Inc.* ...................... 13,909 150 Suncor Energy, Inc. ............................... 5,529 200 Transocean Inc.* .................................. 9,274 700 Williams Companies, Inc. (The) .................... 11,914 ---------- 40,626 ---------- FINANCIAL INFORMATION SERVICES--.7% 400 Genworth Financial Inc. Cl. A ..................... 11,180 ---------- THE ALGER INSTITUTIONAL FUNDS -23- ALGER BALANCED INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- FOOD & BEVERAGES--.3% 100 Yum! Brands, Inc. ................................. $ 4,696 ---------- FOOD & STAPLES RETAILING--2.5% 400 CVS Corporation ................................... 20,632 400 Wal-Mart Stores, Inc. ............................. 18,856 ---------- 39,488 ---------- FREIGHT & LOGISTICS--1.1% 200 FedEx Corp. ....................................... 16,990 ---------- HEALTH CARE--.8% 100 WellPoint Inc. * .................................. 12,775 ---------- HEALTH CARE EQUIPMENT & SUPPLIES--2.1% 150 Baxter International Inc. ......................... 5,565 400 Medtronic, Inc. ................................... 21,080 200 Varian Medical Systems, Inc.* ..................... 6,748 ---------- 33,393 ---------- HEALTH CARE PROVIDERS & SERVICES--5.1% 250 Caremark Rx, Inc.* ................................ 10,012 200 CIGNA Corporation ................................. 18,396 450 HCA, Inc. ......................................... 25,128 500 Health Management Associates, Inc. Cl. A .......... 12,365 200 Humana Inc.* ...................................... 6,930 150 PacifiCare Health Systems, Inc.* .................. 8,964 ---------- 81,795 ---------- HOTELS, RESTAURANTS & LEISURE--2.5% 250 Harrah's Entertainment, Inc. ...................... 16,405 700 Hilton Hotels Corporation ......................... 15,281 150 Starwood Hotels & Resorts Worldwide, Inc. ......... 8,151 ---------- 39,837 ---------- INDUSTRIAL CONGLOMERATES--.9% 450 Tyco International Ltd. ........................... 14,090 ---------- INSURANCE--.9% 400 St. Paul Travelers Companies, Inc. (The) .......... 14,320 ---------- INTERNET & CATALOG RETAIL--1.3% 300 eBay Inc.* ........................................ 9,519 950 Netflix Inc.* ..................................... 10,982 ---------- 20,501 ---------- INTERNET SOFTWARE & SERVICES--2.9% 100 Google Inc. Cl. A* ................................ 22,000 700 Yahoo! Inc. * ..................................... 24,157 ---------- 46,157 ---------- MACHINERY--1.1% 200 Caterpillar Inc. .................................. 17,610 ---------- THE ALGER INSTITUTIONAL FUNDS -24- ALGER BALANCED INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- MEDIA--2.8% 600 Disney (Walt) Company ............................. $ 15,840 900 News Corporation Cl. A ............................ 13,752 100 Viacom Inc. Cl. B ................................. 3,462 450 XM Satellite Radio Holdings Inc. Cl. A* ........... 12,483 ---------- 45,537 ---------- METALS & MINING--.4% 150 Peabody Energy Corporation ........................ 6,565 ---------- MULTILINE RETAIL--1.6% 200 Federated Department Stores, Inc. ................. 11,500 300 Penny, (JC) Co. Inc. .............................. 14,223 ---------- 25,723 ---------- OIL & GAS--2.4% 150 BP PLC Sponsored ADR# ............................. 9,135 100 Enterprise Products Partners L.P. ................. 2,583 350 Exxon Mobil Corporation ........................... 19,960 300 Sasol Ltd. ADR# ................................... 6,975 ---------- 38,653 ---------- PERSONAL PRODUCTS--2.2% 350 Avon Products, Inc. ............................... 14,028 400 Gillette Company (The) ............................ 20,656 ---------- 34,684 ---------- PHARMACEUTICALS--5.8% 250 Johnson & Johnson ................................. 17,157 450 Merck & Co. Inc. .................................. 15,255 200 Novartis AG ADR# .................................. 9,746 400 Sanofi-Aventis ADR# ............................... 17,748 1,050 Schering-Plough Corporation ....................... 21,914 250 Wyeth ............................................. 11,235 ---------- 93,055 ---------- RETAIL--.6% 600 Saks Incorporated ................................. 10,224 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--2.6% 800 Intel Corporation ................................. 18,816 500 Linear Technology Corporation ..................... 17,870 200 Xilinx, Inc. ...................................... 5,388 ---------- 42,074 ---------- SOFTWARE--2.2% 100 Electronic Arts Inc.* ............................. 5,339 650 Microsoft Corporation ............................. 16,445 1,100 Oracle Corporation* ............................... 12,716 ---------- 34,500 ---------- THE ALGER INSTITUTIONAL FUNDS -25- ALGER BALANCED INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- SPECIALTY RETAIL--1.0% 300 Lowe's Companies, Inc. ............................ $ 15,633 ---------- TOBACCO--.4% 100 Altria Group, Inc. ................................ 6,499 ---------- WIRELESS TELECOMMUNICATION SERVICES--1.0% 750 Sprint Corporation ................................ 16,695 ---------- Total Common Stocks (Cost $990,021) ................................. 1,001,182 ---------- PRINCIPAL AMOUNT CORPORATE BONDS--9.0% ---------- AEROSPACE & DEFENSE--.7% $ 5,000 United Technologies, 4.875%, 11/1/06 .............. 5,074 6,504 Systems 2001 Asset Trust Cl. G, 6.664%, 9/15/13 (a) ............................. 7,098 ---------- 12,172 ---------- AUTOMOTIVE--.6% 6,000 General Motors Acceptance, 6.875%, 9/15/11 ........ 5,263 4,000 General Motors Acceptance Corp., 4.50%, 7/15/06 ... 3,913 ---------- 9,176 ---------- BUILDING & CONSTRUCTION--.3% 5,000 Pulte Homes Inc., 5.20%, 2/15/15 .................. 4,820 ---------- CABLE--.4% 6,000 Cox Communications, Inc., 5.45%, 12/15/14(a) ...... 5,989 ---------- CAPITAL MARKETS--.8% 10,000 Goldman Sachs Group, Inc., 4.75%, 7/15/13 ......... 9,842 3,000 J.P. Morgan Chase & Co., 3.625%, 5/1/08 ........... 2,947 ---------- 12,789 ---------- COMMERCIAL BANKS--1.3% 4,000 Associates Corp. North America, 6.95%, 11/1/18 .... 4,698 5,000 Bank of America Corp., 5.375%, 6/15/14 ............ 5,219 10,000 Wells Fargo & Co. Sr. Global Notes, 6.375%, 8/1/11 11,048 ---------- 20,965 ---------- COMPUTERS & PERIPHERALS--.4% 5,000 International Business Machines Corp., 6.50%, 1/15/28 .................................. 5,739 ---------- DIVERSIFIED TELECOMMUNICATION SERVICES--.4% 6,000 Verizon New York Inc. Series A, 6.875%, 4/1/12 .... 6,581 ---------- FINANCE--.3% 5,000 Caterpillar Financial Services Corporation, 3.70%, 8/15/08 .................................. 4,909 ---------- FINANCIAL SERVICES--.6% 10,000 John Deere Capital Corp., 4.125%, 1/15/10 ......... 9,875 ---------- HEALTH CARE PROVIDERS & SERVICES--.3% 5,000 UnitedHealth Group, 4.75%, 2/10/14 ................ 4,974 ---------- THE ALGER INSTITUTIONAL FUNDS -26- ALGER BALANCED INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 PRINCIPAL AMOUNT CORPORATE BONDS (CONTINUED) VALUE --------- ------- INSURANCE--.9% $ 10,000 Berkshire Hathaway Financial Rule, 4.85%, 1/15/15 (a) .............................. $ 9,946 5,000 Markel Corp., 7.00%, 5/15/08 ...................... 5,345 ---------- 15,291 ---------- LEASING--.9% 14,000 International Lease Finance Corp., 4.75%, 1/13/12 . 13,779 ---------- MEDIA--.5% 3,000 Comcast Corporation, 6.50%, 1/15/15 ............... 3,309 5,000 Liberty Media Corporation Floating Rate Note, 3.99%, 9/17/06 .................................. 5,061 ---------- 8,370 ---------- PHARMACEUTICALS--.6% 10,000 Merck & Co. Inc., 4.75%, 3/1/15 ................... 9,855 ---------- Total Corporate Bonds (Cost $146,771) ................................. 145,284 U.S. GOVERNMENT & AGENCY OBLIGATIONS--26.0% Federal National Mortgage Association, 25,000 3.125%, 7/15/06 ................................... 24,843 7,000 3.25%, 8/15/08 .................................... 6,827 5,000 4.25%, 5/15/09 .................................... 5,022 20,000 4.30%, 1/19/10 .................................... 19,984 10,000 5.00%, 4/19/10 .................................... 10,090 9,681 4.80%, 4/25/10 .................................... 9,808 15,000 4.125%, 4/15/14 ................................... 14,597 5,000 6.625%, 11/15/30 .................................. 6,185 Federal Home Loan Mortgage Corporation, 20,000 4.125%, 11/18/09 .................................. 19,915 10,000 4.50%, 1/15/14 .................................... 10,019 Federal Home Loan Bank, 15,000 4.30%, 2/3/11 ..................................... 14,805 10,000 5.50%, 5/18/15 .................................... 10,038 U.S. Treasury Bonds, 10,000 3.75%, 3/31/07 .................................... 10,022 73,000 3.25%, 8/15/07 .................................... 72,364 5,000 3.125%, 9/15/08 ................................... 4,898 5,000 7.50%, 11/15/16 ................................... 6,424 40,000 5.375%, 2/15/31 ................................... 45,191 U.S. Treasury Notes, 17,000 3.50%, 11/15/06 ................................... 16,994 20,000 3.00%, 11/15/07 ................................... 19,674 20,000 3.50%, 11/15/09 ................................... 19,709 27,000 4.375%, 8/15/12 ................................... 27,629 10,000 4.25%, 8/15/13 .................................... 10,084 10,000 4.75%, 5/15/14 .................................... 10,427 22,000 4.0%, 2/15/15 ..................................... 21,652 ---------- Total U.S. Government & Agency Obligations (Cost $416,828) ................................. 417,201 ---------- THE ALGER INSTITUTIONAL FUNDS -27- ALGER BALANCED INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 VALUE ------- Total Investments (Cost $1,553,620) (b) .................................. 97.4% $1,563,667 Other Assets in Excess of Liabilities .................... 2.6 42,206 ----- ---------- Net Assets ............................................... 100.0% $1,605,873 ===== ========== - ------------- * Non-income producing security. # American Depositary Receipts. (a) Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. These securities are deemed to be liquid and represent 1.4% of net assets of the fund. (b) At April 30,2005, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,553,620, amounted to $10,047 which consisted of aggregate gross unrealized appreciation of $52,013 and aggregate gross unrealized depreciation of $41,966. See Notes to Financial Statements. THE ALGER INSTITUTIONAL FUNDS -28- ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2005 SHARES COMMON STOCKS--92.8% VALUE --------- ------- AIR FREIGHT & LOGISTICS--1.5% 350 UTI Worldwide, Inc. ............................... $ 22,449 ---------- BEVERAGES--2.9% 800 PepsiCo, Inc. ..................................... 44,512 ---------- BIOTECHNOLOGY--6.2% 350 Amgen Inc.* ....................................... 20,373 400 Genentech, Inc.* .................................. 28,376 700 Gilead Sciences, Inc. * ........................... 25,970 200 OSI Pharmaceuticals, Inc.* ........................ 9,467 450 Serologicals Corporation* ......................... 9,688 ---------- 93,874 ---------- BUSINESS SERVICES--.4% 150 MicroStrategy Incorporated* ....................... 6,529 ---------- CAPITAL MARKETS--1.1% 300 Merrill Lynch & Co., Inc. ......................... 16,179 ---------- CHEMICALS--.6% 100 Huntsman Corporation .............................. 2,104 200 Lubrizol Corporation .............................. 7,754 ---------- 9,858 ---------- COMMERCIAL BANKS--.6% 150 Wells Fargo & Company ............................. 8,991 ---------- COMMERCIAL SERVICES & SUPPLIES--.6% 250 First Marblehead Corporation (The)* ............... 9,632 ---------- COMMUNICATION EQUIPMENT--2.9% 450 Arris Group Inc.* ................................. 3,415 1,150 Brocade Communications Systems, Inc.* ............. 5,014 1,550 Nokia Oyj ADR# .................................... 24,769 300 QUALCOMM Inc. ..................................... 10,467 ---------- 43,665 ---------- COMMUNICATION TECHNOLOGY--1.1% 700 Nextel Partners, Inc. Cl. A* ...................... 16,464 ---------- COMPUTERS & PERIPHERALS--2.8% 400 Apple Computer, Inc.* ............................. 14,424 650 EMC Corporation* .................................. 8,528 500 Memc Electronic Materials, Inc.* .................. 5,865 1,050 Western Digital Corporation* ...................... 13,324 ---------- 42,141 ---------- COMPUTER TECHNOLOGY--.2% 100 NAVTEQ* ........................................... 3,642 ---------- CONSUMER FINANCE--.2% 50 Capital One Financial Corporation ................. 3,544 ---------- THE ALGER INSTITUTIONAL FUNDS -29- ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- DIVERSIFIED FINANCIAL SERVICES--1.8% 300 Citigroup Inc. .................................... $ 14,088 150 Lehman Brothers Holdings Inc. ..................... 13,758 ---------- 27,846 ---------- ELECTRICAL AND ELECTRONIC EQUIPMENT--1.3% 300 Roper Industries, Inc. ............................ 20,301 ---------- ENERGY EQUIPMENT & SERVICES--4.7% 600 Lone Star Technologies, Inc.* ..................... 23,364 850 National-Oilwell Varco Inc.* ...................... 33,779 200 Schlumberger Limited .............................. 13,682 ---------- 70,825 ---------- FINANCIAL INFORMATION SERVICES--1.6% 850 Genworth Financial Inc. Cl. A ..................... 23,758 ---------- FOOD & STAPLES RETAILING--4.3% 1,025 CVS Corporation ................................... 52,869 450 Performance Food Group Co.* ....................... 12,101 ---------- 64,970 ---------- FREIGHT & LOGISTICS--0.8% 150 FedEx Corp. ....................................... 12,743 ---------- HEALTH CARE--.8% 100 WellPoint Inc. * .................................. 12,775 ---------- HEALTH CARE EQUIPMENT & SUPPLIES--1.7% 250 Beckman Coulter, Inc. ............................. 16,677 250 St. Jude Medical, Inc.* ........................... 9,758 ---------- 26,435 ---------- HEALTH CARE PROVIDERS & SERVICES--5.4% 250 AMERIGROUP Corporation* ........................... 8,780 100 CIGNA Corporation ................................. 9,198 300 Community Health Systems Inc.* .................... 10,935 300 HCA, Inc. ......................................... 16,752 300 McKesson Corporation .............................. 11,100 300 PacifiCare Health Systems, Inc.* .................. 17,928 70 UnitedHealth Group Incorporated ................... 6,616 ---------- 81,309 ---------- HOTELS, RESTAURANTS & LEISURE--2.1% 1,450 Hilton Hotels Corporation ......................... 31,653 ---------- HOUSEHOLD DURABLES--.1% 50 Garmin Ltd. ....................................... 1,975 ---------- HOUSEHOLD PRODUCTS--1.2% 350 Procter & Gamble Company .......................... 18,953 ---------- INDUSTRIAL CONGLOMERATES--2.6% 1,250 Tyco International Ltd. ........................... 39,138 ---------- INFORMATION TECHNOLOGY SERVICES--.1% 50 Automatic Data Processing, Inc. ................... 2,172 ---------- THE ALGER INSTITUTIONAL FUNDS -30- ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- INSURANCE--.8% 350 St. Paul Travelers Companies, Inc. (The) .......... $ 12,530 ---------- INTERNET SOFTWARE & SERVICES--9.1% 400 aQuantive, Inc.* .................................. 4,440 300 Google Inc. Cl. A* ................................ 66,000 350 Netease.com Inc. ADR*# ............................ 17,287 1,450 Yahoo! Inc. * ..................................... 50,040 ---------- 137,767 ---------- LEISURE & ENTERTAINMENT--1.7% 800 Shanda Interactive Entertainment Ltd. * ........... 25,736 ---------- MACHINERY--OIL WELL EQUIPMENT & SERVICES--0.6% 350 Patterson-UTI Energy, Inc. ........................ 8,390 ---------- MEDIA--3.4% 250 Entercom Communications Corp.* .................... 8,057 1,450 News Corporation Cl. A ............................ 22,156 1,300 Time Warner Inc.* ................................. 21,853 ---------- 52,066 ---------- METALS & MINING--1.7% 150 Alpha Natural Resources, Inc.* .................... 3,472 500 Peabody Energy Corporation ........................ 21,885 ---------- 25,357 ---------- MULTILINE RETAIL--.5% 150 Kohl's Corporation* ............................... 7,140 ---------- OIL & GAS--1.0% 250 BP PLC Sponsored ADR# ............................. 15,225 ---------- PERSONAL PRODUCTS--1.7% 500 Gillette Company (The) ............................ 25,820 ---------- PHARMACEUTICALS--8.1% 150 Eli Lilly and Company ............................. 8,770 900 IVAX Corporation* ................................. 17,010 200 Merck & Co. Inc. .................................. 6,780 350 Novartis AG ADR# .................................. 17,056 1,100 Pfizer Inc. ....................................... 29,887 350 Sanofi-Aventis ADR# ............................... 15,530 750 Schering-Plough Corporation ....................... 15,653 200 Sepracor Inc.* .................................... 11,984 ---------- 122,670 ---------- RETAIL--1.0% 150 Neiman Marcus Group, Inc. ......................... 14,748 ---------- ROAD & RAIL--1.0% 300 Burlington Northern Santa Fe Corporation .......... 14,475 ---------- THE ALGER INSTITUTIONAL FUNDS -31- ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) April 30, 2005 SHARES COMMON STOCKS (CONTINUED) VALUE --------- ------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.2% 450 ATI Technologies Inc.* ............................ $ 6,660 250 Broadcom Corporation Cl. A * ...................... 7,477 800 Intel Corporation ................................. 18,816 450 Marvell Technology Group Ltd.* .................... 15,066 2,900 Skyworks Solutions, Inc.* ......................... 15,196 ---------- 63,215 ---------- SOFTWARE--4.9% 300 Cognos, Inc.* ..................................... 11,352 200 Intuit Inc.* ...................................... 8,060 1,000 Microsoft Corporation ............................. 25,300 2,100 Oracle Corporation* ............................... 24,276 525 VeriFone Holdings, Inc.* .......................... 5,644 ---------- 74,632 ---------- SPECIALTY RETAIL--2.4% 150 Abercrombie & Fitch Co. Cl. A ..................... 8,092 400 Bed Bath & Beyond Inc.* ........................... 14,884 250 Lowe's Companies, Inc. ............................ 13,028 ---------- 36,004 ---------- TEXTILES, APPAREL & LUXURY GOODS--.7% 400 Coach, Inc.* ...................................... 10,720 ---------- WIRELESS TELECOMMUNICATION SERVICES--.4% 100 SpectraSite, Inc.* ................................ 5,613 ---------- Total Common Stocks (Cost $1,347,242) ............................... 1,408,441 ---------- Total Investments (Cost $1,347,242)(a) .................................. 92.8% 1,408,441 Other Assets in Excess of Liabilities ................... 7.2 109,652 ----- ---------- Net Assets .............................................. 100.0% $1,518,093 ===== ========== - ------------ * Non-income producing security. # American Depositary Receipts. (a) At April 30, 2005, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,347,242 amounted to $61,199 which consisted of aggregate gross unrealized appreciation of $110,961 and aggregate gross unrealized depreciation of $49,762. See Notes to Financial Statements. THE ALGER INSTITUTIONAL FUNDS -32- STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) April 30, 2005
LargeCap SmallCap Growth Growth Fund Fund ------------ ------------ ASSETS: Investments in securities, at value (identified cost*) --see accompanying schedules of investments ............ $ 91,578,481 $ 53,278,526 Cash ..................................................... 7,656 36,598 Receivable for investment securities sold ................ -- 935,827 Receivable for shares of beneficial interest sold ........ 147,203 355,221 Dividends and interest receivable ........................ 41,402 2,531 Receivable from Investment Manager--Note 3(a) ............ -- -- Prepaid expenses ......................................... 7,052 8,431 ------------ ------------ Total Assets ........................................... 91,781,794 54,617,134 ------------ ------------ LIABILITIES: Payable for investment securities purchased .............. -- 732,770 Payable for shares of beneficial interest redeemed ....... 157,583 292,149 Accrued investment management fees ....................... 55,337 37,477 Accrued transfer agent fees .............................. 1,068 1,944 Accrued expenses ......................................... 39,957 22,930 ------------ ------------ Total Liabilities ...................................... 253,945 1,087,270 ------------ ------------ NET ASSETS ............................................... $ 91,527,849 $ 53,529,864 ============ ============ Net Assets Consist of: Paid-in capital ........................................ $121,718,934 $120,365,026 Accumulated net investment loss ........................ 385,232 (299,918) Undistributed net realized gain (accumulated loss) ..... (31,593,320) (68,701,290) Net unrealized appreciation (depreciation) ............. 1,017,003 2,166,046 ------------ ------------ NET ASSETS ............................................... $ 91,527,849 $ 53,529,864 ============ ============ Shares of beneficial interest outstanding--Note 6 Class I ................................................ 7,895,220 3,150,891 ============ ============ Class R ................................................ 299,548 91,566 ============ ============ Net Asset Value Per Share Class I ................................................ $ 11.17 $ 16.51 ============ ============ Class R ................................................ $ 11.05 $ 16.36 ============ ============ *Identified cost ......................................... $ 90,561,478 $ 51,112,480 ============ ============
See Notes to Financial Statements. -33- Socially MidCap Capital Responsible Growth Appreciation Balanced Growth Fund Fund Fund Fund ------------- ------------- ---------- ---------- $931,971,360 $ 118,143,286 $1,563,667 $1,408,441 45,516 18,478 52,353 70,838 2,703,885 4,544,537 15,777 53,238 4,113,713 1,272,194 1,658 287 245,342 51,986 6,640 631 -- -- 2,478 1,250 59,182 10,751 483 797 ------------- ------------- ---------- ---------- 939,138,998 124,041,232 1,646,056 1,535,482 ------------- ------------- ---------- ---------- 1,688,315 918,252 33,277 10,998 1,987,308 1,174,365 -- -- 613,471 84,032 961 918 4,612 5,568 77 100 313,582 47,103 5,868 5,373 ------------- ------------- ---------- ---------- 4,607,288 2,229,320 40,183 17,389 ------------- ------------- ---------- ---------- $934,531,710 $ 121,811,912 $1,605,873 $1,518,093 ============ ============= ========== ========== $866,755,843 $ 226,990,151 $1,522,925 $1,341,040 (3,075,086) 282,968 (658) 1,239 59,903,667 (110,765,041) 73,559 114,615 10,947,286 5,303,834 10,047 61,199 ------------- ------------- ---------- ---------- $934,531,710 $ 121,811,912 $1,605,873 $1,518,093 ============ ============= ========== ========== 59,038,002 10,403,757 191,777 244,561 ============ ============= ========== ========== 1,054,083 75,843 25,036 38,667 ============ ============= ========== ========== $ 15.55 $ 11.62 $ 7.41 $ 5.37 ============ ============= ========== ========== $ 15.39 $ 11.49 $ 7.35 $ 5.31 ============ ============= ========== ========== $921,024,074 $ 112,839,452 $1,553,620 $1,347,242 ============ ============= ========== ========== THE ALGER INSTITUTIONAL FUNDS -34- STATEMENTS OF OPERATIONS (UNAUDITED) For the six months ended April 30, 2005 LargeCap SmallCap Growth Growth Fund Fund ----------- ----------- INVESTMENT INCOME Income: Dividends ................................ $ 875,853 $ 84,477 Interest ................................. 19,747 23,146 ----------- ----------- Total income ............................ 895,600 107,623 ----------- ----------- Expenses: Management fees--Note 3(a) ............... 348,401 283,937 Shareholder servicing fees ............... 116,134 83,511 Custodian fees ........................... 14,502 11,134 Transfer agent fees--Note 3(d) ........... 5,524 6,675 Professional fees ........................ 3,453 2,981 Printing fees ............................ 2,790 3,780 Distribution fees--Note 3(b) ............. 7,708 1,703 Trustees' fees ........................... 1,228 892 Interest expense ......................... 66 3,196 Miscellaneous ............................ 10,562 9,732 ----------- ----------- 510,368 407,541 Less expense reimbursement--Note 3(a) ...... -- -- ----------- ----------- Total Expenses ........................... 510,368 407,541 ----------- ----------- NET INVESTMENT INCOME (LOSS) ............... 385,232 (299,918) ----------- ----------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments ......... 7,619,185 6,372,223 Net change in unrealized appreciation (depreciation) on investments ............ (5,325,260) (2,410,203) ----------- ----------- Net realized and unrealized gain on investments ......................... 2,293,925 3,962,020 ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................ $ 2,679,157 $ 3,662,102 =========== =========== See Notes to Financial Statements. -35- Socially MidCap Capital Responsible Growth Appreciation Balanced Growth Fund Fund Fund Fund ------------ ------------ -------- ----------- $ 1,679,612 $ 1,001,080 $ 9,806 $ 10,666 518,238 44,996 10,326 69 ------------ ------------ -------- --------- 2,197,850 1,046,076 20,132 10,735 ------------ ------------ -------- --------- 3,781,675 542,540 6,061 5,696 1,181,773 159,571 901 867 48,330 15,266 7,119 6,825 48,998 12,042 217 300 22,253 4,594 1,753 1,257 56,700 5,790 845 845 37,696 1,997 448 455 12,457 1,689 21 20 -- 545 -- -- 83,054 19,074 821 809 ------------ ------------ -------- --------- 5,272,936 763,108 18,186 17,074 -- -- (8,081) (7,578) ------------ ------------ -------- --------- 5,272,936 763,108 10,105 9,496 ------------ ------------ -------- --------- (3,075,086) 282,968 10,027 1,239 ------------ ------------ -------- --------- 65,269,792 12,793,605 85,424 115,986 (41,754,355) (6,298,251) (61,381) (60,472) ------------ ------------ -------- --------- 23,515,437 6,495,354 24,043 55,514 ------------ ------------ -------- --------- $ 20,440,351 $ 6,778,322 $ 34,070 $ 56,753 ============ ============ ======== ========= THE ALGER INSTITUTIONAL FUNDS -36- STATEMENTS OF CHANGES IN NET ASSETS
LargeCap Growth Fund ------------------------------- For the Six Months For the Ended Year Ended April 30, 2005 October 31, (Unaudited) 2004 -------------- -------------- Net investment income (loss) ......................... $ 385,232 $ (501,149) Net realized gain on investments ..................... 7,619,185 8,360,426 Net change in unrealized appreciation (depreciation) on investments ...................... (5,325,260) (6,519,566) ------------ ------------ Net increase in net assets resulting from operations .......................... 2,679,157 1,339,711 ------------ ------------ Dividends and distributions to shareholders from: Net investment income Class I ............................................ -- -- Class R ............................................ -- -- Net realized gains Class I ............................................ -- -- Class R ............................................ -- -- ------------ ------------ Total dividends and distributions to shareholders .... -- -- ------------ ------------ Increase (decrease) from shares of beneficial interest transactions: Class I ............................................ (2,501,538) (4,892,989) Class R ............................................ 758,926 2,423,531 ------------ ------------ Net increase (decrease) from shares of beneficial interest transactions--Note 6 ............................... (1,742,612) (2,469,458) ------------ ------------ Total increase (decrease) ........................ 936,545 (1,129,747) Net Assets: Beginning of period ................................ 90,591,304 91,721,051 ------------ ------------ End of period ...................................... $ 91,527,849 $ 90,591,304 ============ ============ Undistributed net investment income (accumulated loss) ................................. $ 385,232 $ (501,149) ============ ============
See Notes to Financial Statements. -37- SmallCap MidCap Growth Growth Fund Fund ------------------------------ ------------------------------- For the For the Six Months For the Six Months For the Ended Year Ended Ended Year Ended April 30, 2005 October 31, April 30, 2005 October 31, (Unaudited) 2004 (Unaudited) 2004 -------------- -------------- -------------- -------------- $ (299,918) $ (918,437) $ (3,075,086) $ (6,352,257) 6,372,223 19,348,420 65,269,792 38,265,061 (2,410,203) (13,191,873) (41,754,355) (10,878,579) ------------ ------------ ------------- ------------- 3,662,102 5,238,110 20,440,351 21,034,225 ------------ ------------ ------------- ------------- -- -- -- -- -- -- -- -- -- -- (14,080,915) -- -- -- (225,450) -- ------------ ------------ ------------- ------------- -- -- (14,306,365) -- ------------ ------------ ------------- ------------- (21,491,873) (28,739,464) 72,803,527 277,510,949 1,287,700 203,378 4,321,273 11,195,628 ------------ ------------ ------------- ------------- (20,204,173) (28,536,086) 77,124,800 288,706,577 ------------ ------------ ------------- ------------- (16,542,071) (23,297,976) 83,258,786 309,740,802 70,071,935 93,369,911 851,272,924 541,532,122 ------------ ------------ ------------- ------------- $ 53,529,864 $ 70,071,935 $ 934,531,710 $ 851,272,924 ============ ============ ============= ============= $ (299,918) $ (918,437) $ (3,075,086) $ (6,352,257) ============ ============ ============= ============= THE ALGER INSTITUTIONAL FUNDS -38- STATEMENTS OF CHANGES IN NET ASSETS
Capital Appreciation Fund ------------------------------- For the Six Months For the Ended Year Ended April 30, 2005 October 31, (Unaudited) 2004 -------------- -------------- Net investment income (loss) .......................... $ 282,968 $ (1,322,488) Net realized gain on investments ...................... 12,793,605 10,282,251 Net change in unrealized appreciation (depreciation) on investments ....................... (6,298,251) (8,886,695) ------------- ------------- Net increase in net assets resulting from operations ........................... 6,778,322 73,068 ------------- ------------- Dividends and distributions to shareholders from: Net investment income Class I ............................................. -- -- Class R ............................................. -- -- Net realized gains Class I ............................................. -- -- Class R ............................................. -- -- ------------- ------------- Total dividends and distributions to shareholders ..... -- -- ------------- ------------- Increase (decrease) from shares of beneficial interest transactions: Class I ............................................. (10,694,748) (35,772,587) Class R ............................................. 133,403 659,615 ------------- ------------- Net increase (decrease) from shares of beneficial interest transactions--Note 6 ................................ (10,561,345) (35,112,972) ------------- ------------- Total increase (decrease) ......................... (3,783,023) (35,039,904) Net Assets: Beginning of period ................................. 125,594,935 160,634,839 ------------- ------------- End of period ....................................... $ 121,811,912 $ 125,594,935 ============= ============= Undistributed net investment income (accumulated loss) .................................. $ 282,968 $ (1,322,488) ============= =============
See Notes to Financial Statements. -39- Socially Responsible Balanced Growth Fund Fund ------------------------------ ------------------------------- For the For the Six Months For the Six Months For the Ended Year Ended Ended Year Ended April 30, 2005 October 31, April 30, 2005 October 31, (Unaudited) 2004 (Unaudited) 2004 -------------- -------------- -------------- -------------- $ 10,027 $ 3,788 $ 1,239 $ (14,986) 85,424 45,169 115,986 62,678 (61,381) (31,014) (60,472) (41,602) ----------- ----------- ----------- ----------- 34,070 17,943 56,753 6,090 ----------- ----------- ----------- ----------- (12,752) (756) -- -- (1,011) -- -- -- (35,778) -- (56,378) (6,181) (4,123) -- (7,512) (397) ----------- ----------- ----------- ----------- (53,664) (756) (63,890) (6,578) ----------- ----------- ----------- ----------- 3,914 11,547 38,091 951 20,861 105,281 102,723 40,664 ----------- ----------- ----------- ----------- 24,775 116,828 140,814 41,615 ----------- ----------- ----------- ----------- 5,181 134,015 133,677 41,127 1,600,692 1,466,677 1,384,416 1,343,289 ----------- ----------- ----------- ----------- $ 1,605,873 $ 1,600,692 $ 1,518,093 $ 1,384,416 =========== =========== =========== =========== $ (658) $ 1,274 $ 1,239 $ (14,986) =========== =========== =========== =========== THE ALGER INSTITUTIONAL FUNDS -40- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from Investment Operations ----------------------- Net Realized and Net Net Asset Net Unrealized Total Distributions Asset Value, Investment Gain from from Value, Beginning Income (Loss) on Investment Net Realized End of of Period (Loss)(iv) Investments Operations Gains Period ----------- ---------- ----------- ----------- ----------- ----------- ALGER LARGECAP GROWTH INSTITUTIONAL FUND (i) CLASS I Six months ended 4/30/05(ii)(v) ............................. $10.86 $ 0.05 $ 0.26 $ 0.31 $ -- $11.17 Year ended 10/31/04 .......................... 10.71 (0.06) 0.21 0.15 -- 10.86 Year ended 10/31/03 .......................... 8.70 (0.03) 2.04 2.01 -- 10.71 Year ended 10/31/02 .......................... 11.63 (0.03) (2.90) (2.93) -- 8.70 Year ended 10/31/01 .......................... 17.15 (0.03) (4.50) (4.53) (0.99) 11.63 Year ended 10/31/00 .......................... 17.17 (0.03) 1.92 1.89 (1.91) 17.15 CLASS R Six months ended 4/30/05(ii)(v) ............................. $10.76 $ 0.01 $ 0.28 $ 0.29 $ -- $11.05 Year ended 10/31/04 .......................... 10.66 (0.12) 0.22 0.10 -- 10.76 From 1/27/03 to 10/31/03(iii)(v) ............. 8.12 (0.06) 2.60 2.54 -- 10.66 ALGER SMALLCAP GROWTH INSTITUTIONAL FUND CLASS I Six months ended 4/30/05(ii)(v) ............................. $16.07 $(0.08) $ 0.52 $ 0.44 $ -- $16.51 Year ended 10/31/04 .......................... 15.10 (0.16) 1.13 0.97 -- 16.07 Year ended 10/31/03 .......................... 10.97 (0.12) 4.25 4.13 -- 15.10 Year ended 10/31/02 .......................... 13.35 (0.13) (2.25) (2.38) -- 10.97 Year ended 10/31/01 .......................... 23.78 (0.08) (10.35) 10.43) -- 13.35 Year ended 10/31/00 .......................... 22.82 (0.06) 2.50 2.44 (1.48) 23.78 CLASS R Six months ended 4/30/05(ii)(v) ............................. $15.93 $(0.11) $ 0.54 $ 0.43 $ -- $16.36 Year ended 10/31/04 .......................... 15.05 (0.25) 1.13 0.88 -- 15.93 From 1/27/03 to 10/31/03(iii)(v) ............. 10.72 (0.14) 4.47 4.33 -- 15.05 ALGER MIDCAP GROWTH INSTITUTIONAL FUND CLASS I Six months ended 4/30/05(ii)(v) ............................. $15.38 $(0.05) $ 0.47 $ 0.42 $(0.25) $15.55 Year ended 10/31/04 .......................... 14.78 (0.13) 0.73 0.60 -- 15.38 Year ended 10/31/03 .......................... 10.76 (0.11) 4.13 4.02 -- 14.78 Year ended 10/31/02 .......................... 13.34 (0.10) (2.48) (2.58) -- 10.76 Year ended 10/31/01 .......................... 17.53 (0.08) (3.44) (3.52) (0.67) 13.34 Year ended 10/31/00 .......................... 11.80 (0.04) 6.07 6.03 (0.30) 17.53 CLASS R Six months ended 4/30/05(ii)(v) ............................. $15.25 $(0.09) $ 0.48 $ 0.39 $(0.25) $15.39 Year ended 10/31/04 .......................... 14.73 (0.21) 0.73 0.52 -- 15.25 From 1/27/03 to 10/31/03(iii)(v) ............. 10.25 (0.14) 4.62 4.48 -- 14.73
- ------------ (i) Prior to March 1, 2002, the Alger LargeCap Growth Institutional Fund was the Alger Growth Retirement Portfolio. (ii) Unaudited. (iii) Commenced operations January 27, 2003. (iv) Amount was computed based on average shares outstanding during the period. (v) Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -41- Ratios/Supplemental Data ----------------------------------------------------- Net Ratio of Ratio of Net Assets, Expenses Investment End of to Income Period Average (Loss) to Portfolio Total (000's Net Average Turnover Return omitted) Assets Net Assets Rate ----------- ---------- ----------- ----------- ----------- 2.9% $ 88,218 1.08% 0.85% 133.98% 1.4 88,098 1.13 (0.51) 191.48 23.1 91,588 1.14 (0.31) 255.49 (25.2) 108,660 1.14 (0.24) 202.07 (27.5) 97,308 1.09 (0.20) 89.54 10.3 126,573 1.06 (0.16) 101.29 2.7% $ 3,309 1.58% 0.24% 133.98% 0.9 2,493 1.64 (1.05) 191.48 31.3 133 1.62 (0.84) 255.49 2.7% $ 52,031 1.22% (0.89)% 58.04% 6.4 69,788 1.25 (1.03) 135.80 37.7 93,300 1.24 (0.99) 139.97 (17.8) 62,780 1.25 (1.01) 138.01 (43.9) 86,790 1.19 (0.46) 191.89 10.1 187,973 1.17 (0.23) 242.45 2.7% $ 1,498 1.67% (1.36)% 58.04% 5.8 284 1.75 (1.55) 135.80 40.4 70 1.74 (1.49) 139.97 2.6% $918,313 1.11% (0.64)% 103.72% 4.1 839,273 1.15 (0.87) 190.93 37.4 540,742 1.17 (0.89) 217.33 (19.3) 215,727 1.17 (0.81) 284.69 (20.6) 217,153 1.13 (0.51) 130.93 51.3 177,566 1.12 (0.24) 113.14 2.4% $ 16,219 1.60% (1.14)% 103.72% 3.5 12,000 1.65 (1.37) 190.93 43.7 790 1.66 (1.40) 217.33 THE ALGER INSTITUTIONAL FUNDS -42- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Income from Investment Operations ------------------------ Net Realized and Net Asset Net Unrealized Total Dividends Distributions Value, Investment Gain from from Net from Beginning Income (Loss) on Investment Investment Net Realized of Period (Loss)(iii) Investments Operations Income Gains ----------- ---------- ----------- ----------- ----------- ----------- ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND CLASS I Six months ended 4/30/05(iv)(xii) ..................... $11.05 $ 0.03 $ 0.54 $ 0.57 $ -- $ -- Year ended 10/31/04 ................................... 11.06 (0.10) 0.09 (0.01) -- -- Year ended 10/31/03 ................................... 8.97 (0.06) 2.15 2.09 -- -- Year ended 10/31/02 ................................... 11.66 (0.08) (2.61) (2.69) -- -- Year ended 10/31/01 ................................... 18.12 (0.03) (6.37) (6.40) -- (0.06) Year ended 10/31/00 ................................... 16.19 (0.09) 2.24 2.15 -- (0.22) CLASS R Six months ended 4/30/05(iv)(xii) ..................... $10.95 $ -- $ 0.54 $ 0.54 $ -- $ -- Year ended 10/31/04 ................................... 11.01 (0.16) 0.10 (0.06) -- -- From 1/27/03 to 10/31/03(ii)(iv) ...................... 8.36 (0.08) 2.73 2.65 -- -- ALGER BALANCED INSTITUTIONAL FUND CLASS I Six months ended 4/30/05(iv)(xii) ..................... $ 7.50 $ 0.05 $ 0.11 $ 0.16 $(0.07) $(0.18) Year ended 10/31/04 ................................... 7.41 0.02 0.07 0.09 -- -- Year ended 10/31/03 ................................... 6.67 (0.01) 0.75 0.74 -- -- Year ended 10/31/02 ................................... 8.20 (0.39) (1.14) (1.53) -- -- From 12/4/00 to 10/31/01(i)(iv) ....................... 10.00 (0.11) (1.69) (1.80) -- -- CLASS R Six months ended 4/30/05(iv)(xii) ..................... $ 7.43 $ 0.03 $ 0.12 $ 0.15 $(0.05) $(0.18) Year ended 10/31/04 ................................... 7.38 (0.02) 0.07 0.05 -- -- From 1/27/03 to 10/31/03(ii)(iv) ...................... 6.43 (0.04) 0.99 0.95 -- -- ALGER SOCIALLY RESPONSIBLE GROWTH INSTITUTIONAL FUND CLASS I Six months ended 4/30/05(iv)(xii) ..................... $ 5.37 $ 0.01 $ 0.23 $ 0.24 $ -- $(0.24) Year ended 10/31/04 ................................... 5.38 (0.05) 0.07 0.02 -- (0.03) Year ended 10/31/03 ................................... 4.43 (0.09) 1.04 0.95 -- -- Year ended 10/31/02 ................................... 6.37 (0.77) (1.17) (1.94) -- -- From 12/4/00 to 10/31/01(i)(iv) ....................... 10.00 (0.30) (3.33) (3.63) -- -- CLASS R Six months ended 4/30/05(iv)(xii) ..................... $ 5.34 $(0.01) $ 0.22 $ 0.21 $ -- $(0.24) Year ended 10/31/04 ................................... 5.37 (0.08) 0.08 -- -- (0.03) From 1/27/03 to 10/31/03(ii)(iv) ...................... 4.13 (0.08) 1.32 1.24 -- --
- ------------ (i) Commenced operations December 4, 2000. (ii) Commenced operations January 27, 2003. (iii) Amount was computed based on average shares outstanding during the period. (iv) Ratios have been annualized; total return has not been annualized. (v) Amount has been reduced by 1.01% due to expense reimbursement. (vi) Amount has been reduced by 1.00% due to expense reimbursement. (vii) Amount has been reduced by 0.90% due to expense reimbursement. (viii) Amount has been reduced by 0.94% due to expense reimbursement. (ix) Amount has been reduced by 1.02% due to expense reimbursement. (x) Amount has been reduced by 0.99% due to expense reimbursement. (xi) Amount has been reduced by 1.03% due to expense reimbursement. (xii) Unaudited See Notes to Financial Statements. -43-
Ratios/Supplemental Data ---------------------------------------------------- Net Ratio of Ratio of Net Net Assets, Expenses Investment Asset End of to Income Value, Period Average (Loss) to Portfolio Total End of Total (000's Net Average Turnover Distributions Period Return omitted) Assets Net Assets Rate ------------- ----------- ----------- ----------- ----------- ----------- ----------- $ -- $11.62 5.2% $120,940 1.19% 0.45% 84.23% -- 11.05 (0.1) 124,889 1.23 (0.87) 160.00 -- 11.06 23.3 160,569 1.23 (0.59) 187.72 -- 8.97 (23.1) 132,010 1.23 (0.73) 180.39 (0.06) 11.66 (35.4) 187,187 1.18 (0.21) 104.17 (0.22) 18.12 13.1 279,916 1.14 (0.43) 144.16 $ -- $11.49 4.9% $ 872 1.69% (0.06)% 84.23% -- 10.95 (0.5) 706 1.73 (1.39) 160.00 -- 11.01 31.7 66 1.72 (1.01) 187.72 $(0.25) $ 7.41 2.1% $ 1,422 1.20%(vi) 1.30% 114.71% -- 7.50 1.3 1,435 1.35(v) 0.28 184.21 -- 7.41 11.1 1,409 2.00 (0.15) 149.42 -- 6.67 (18.7) 225 6.72 (5.21) 321.89 -- 8.20 (18.0) 108 3.13 (1.44) 15.99 $(0.23) $ 7.35 1.9% $ 184 1.69%(ix) 0.77% 114.71% -- 7.43 0.7 166 1.82(vi) (0.28) 184.21 -- 7.38 14.8 58 2.56 (0.74) 149.42 $(0.24) $ 5.37 4.3% $ 1,313 1.19% 0.26% 89.36% (0.03) 5.37 0.3 1,277 1.34(vii) (1.04) 166.03 -- 5.38 21.4 1,277 2.26 (1.69) 187.82 -- 4.43 (30.5) 46 13.48 (13.17) 205.83 -- 6.37 (36.3) 77 5.31 (4.75) 114.33 $(0.24) $ 5.31 3.7% $ 205 1.68% (0.54)% 89.36% (0.03) 5.34 (0.1) 107 1.83(viii) (1.53) 166.03 -- 5.37 30.0 66 2.92 (2.29) 187.82
THE ALGER INSTITUTIONAL FUNDS -44- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1--GENERAL: The Alger Institutional Funds (formerly The Alger Institutional Fund) (the "Trust"), is a diversified, open-end registered investment company organized as a business trust under the laws of the Commonwealth of Massachusetts. The Trust operates as a series company and currently issues an unlimited number of shares of beneficial interest in six funds--LargeCap Growth Fund, SmallCap Growth Fund, MidCap Growth Fund, Capital Appreciation Fund, Balanced Fund and Socially Responsible Growth Fund (the "Funds"). Prior to February 28, 2004, the LargeCap Growth Fund was the LargeCap Growth Portfolio, the SmallCap Growth Fund was the Small Cap Portfolio, the MidCap Growth Fund was the MidCap Growth Portfolio, the Capital Appreciation Fund was the Capital Appreciation Portfolio, the Balanced Fund was the Balanced Portfolio and the Socially Responsible Growth Fund was the Socially Responsible Growth Portfolio. The LargeCap Growth Fund, SmallCap Growth Fund, MidCap Growth Fund, Capital Appreciation Fund and Socially Responsible Growth Fund normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation. The Balanced Fund's investment objectives are current income and long-term capital appreciation which it seeks to achieve through investing in equity and fixed income securities. Each Fund offers Class I and Class R shares. Class R shares were first offered January 27, 2003. Each class has identical rights to assets and earnings except that only Class R shares have a plan of distribution and bear the related expenses. NOTE 2--SIGNIFICANT ACCOUNTING POLICIES: (a) INVESTMENT VALUATION: Investments of the Funds are valued on each day the New York Stock Exchange (the "NYSE") is open as of the close of the NYSE (currently 4:00 p.m. Eastern time). Listed securities for which such information is regularly reported are valued at the last reported sales price or, in the absence of reported sales, at the mean between the bid and asked price or, in the absence of a recent bid or asked price, the equivalent as obtained from one or more of the major market makers for the securities to be valued. Securities included within the Nasdaq market shall be valued at the Nasdaq official closing price (NOCP) on the day of valuation, or if there be no NOCP issued, at the last sale price on such day. Securities included within the Nasdaq market for which there is no NOCP and no last sale price on the day of valuation shall be valued at the mean between the last bid and asked prices on such day. Securities for which market quotations are not readily available are valued at fair value, as determined in good faith pursuant to procedures established by the Board of Trustees. THE ALGER INSTITUTIONAL FUNDS -45- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Short-term securities having a remaining maturity of sixty days or less are valued at amortized cost which approximates market value. Shares of mutual funds are valued at the net asset value of the underlying mutual fund. (b) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income is recognized on the accrual basis. Premiums and discounts on debt securities purchased are amortized or accreted over the lives of the respective securities. (c) REPURCHASE AGREEMENTS: The Funds enter into repurchase agreements with approved institutions. The repurchase agreements are collateralized by U.S. Government securities, which are either received and held in physical possession by the custodian or received by such custodian in book-entry form through the Federal Reserve book-entry system. The collateral is valued on a daily basis during the term of the agreement to ensure that its value equals or exceeds the agreed-upon repurchase price to be repaid to the Funds. Additional collateral is obtained when necessary. (d) LENDING OF FUND SECURITIES: The Funds lend their securities to financial institutions, provided that the market value of the securities loaned will not at any time exceed one third of a Fund's total assets, as defined. The Funds earn fees on the securities loaned. In order to protect against the risk of failure by the borrower to return the securities loaned or any delay in the delivery of such securities, the loan is collateralized by cash, letters of credit or U.S. Government securities that are maintained in an amount equal to at least 100 percent of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Funds and any required additional collateral is delivered to the Funds on the next business day. As of April 30, 2005, there were no securities on loan. (e) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on the ex-dividend date. With respect to all Funds, dividends from net investment income and distributions from net realized gains, offset by any loss carry forward, are declared and paid annually after the end of the fiscal year in which earned. Each class is treated separately in determining the amounts of dividends of net investment income and capital gains payable to holders of its shares. The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules. Therefore, the source of the Funds' distributions may be shown in the accompanying financial statements as either from, or in excess of net investment income, net realized gain on investment transactions or return of capital, depending on the type of book/tax differences that may exist. Capital accounts within the THE ALGER INSTITUTIONAL FUNDS -46- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) financial statements are adjusted for permanent book/tax differences. Reclassifications result primarily from the differences in tax treatment of net operating losses and amortization adjustments on debt securities. The reclassifications had no impact on the net asset values of the Funds and are designed to present the Funds' capital accounts on a tax basis. (f) FEDERAL INCOME TAXES: It is each Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income to its shareholders. Provided a Fund maintains such compliance, no federal income tax provision is required. Each Fund is treated as a separate entity for the purpose of determining such compliance. (g) ALLOCATION METHODS: The Trust accounts separately for the assets, liabilities and operations of each Fund. Expenses directly attributable to each Fund are charged to that Fund's operations; expenses which are applicable to all Funds are allocated among them based on net assets. Income, realized and unrealized gains and losses, and expenses of each Fund, are allocated among the Fund's classes based on relative net assets, with the exception of distribution fees, which are only applicable to Class R shares. (h) INDEMNIFICATION: The Trust enters into contracts that contain a variety of indemnification provisions. The Trust's maximum exposure under these arrangements is unknown. The Trust does not anticipate recognizing any loss related to these arrangements. (i) OTHER: These financial statements have been prepared using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates. NOTE 3--INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES: (a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Fund, pursuant to the provisions of its Investment Management Agreement with Fred Alger Management, Inc. ("Alger Management"), are payable monthly and are computed based on the value of the average daily net assets of each Fund at the following annual rates: LargeCap Growth Fund ........................... .75% SmallCap Growth Fund ........................... .85 MidCap Growth Fund ............................. .80 Capital Appreciation Fund ...................... .85 Balanced Fund .................................. .75 Socially Responsible Growth Fund ............... .75 Alger Management has established an expense cap for the Balanced Fund and the Socially Responsible Growth Fund effective March 1, 2004. Alger Management will reimburse these Funds if annualized operating expenses exceed 1.25% and 1.75% for Class I Shares and Class R Shares, respectively, THE ALGER INSTITUTIONAL FUNDS -47- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) of average daily net assets. For the six months ended April 30, 2005, Alger Management reimbursed the Balanced Fund and the Socially Responsible Growth Fund $8,081 and $7,578, respectively. (b) DISTRIBUTION FEES: Class R Shares--The Funds have adopted a Distribution Plan pursuant to which Class R shares of each Fund pays Fred Alger & Company, Incorporated, the Trust's distributor (the "Distributor") and an affiliate of Alger Management, a fee at the annual rate of .50% of the respective average daily net assets of the Class R shares of the designated Funds to compensate the Distributor for its activities and expenses incurred in distributing the Class R shares. The fees charged may be more or less than the expenses incurred by the Distributor. (c) BROKERAGE COMMISSIONS: During the six months ended April 30, 2005, the LargeCap Growth Fund, the SmallCap Growth Fund, the MidCap Growth Fund, the Capital Appreciation Fund, the Balanced Fund and the Socially Responsible Growth Fund paid the Distributor commissions of $198,761, $57,427, $1,422,873, $134,499, $2,278 and $1,577, respectively, in connection with securities transactions. (d) TRANSFER AGENT FEES: Alger Shareholder Services, Inc. ("Alger Services"), an affiliate of Alger Management, serves as transfer agent for the Trust. During the six months ended April 30, 2005, the LargeCap Growth Fund, the Small Cap Growth Fund, the MidCap Growth Fund, the Capital Appreciation Fund, the Balanced Fund and the Socially Responsible Growth Fund incurred fees of $3,840, $3,084, $37,195, $5,321, $67 and $60, respectively, for services provided by Alger Services. Effective November 22, 2004, State Street Bank and Trust Company replaced Alger Services as the Funds' transfer agent. Transfer agent services are provided by State Street Bank and Trust Company's affiliate, Boston Financial Data Services, Inc. ("BFDS"). Effective February 28, 2005, the Trust has entered into a shareholder administrative services agreement with Alger Services to compensate Alger Services on a per account basis for its liaison and administrative oversight ofBFDSand related services. During the six months ended April 30, 2005, the LargeCap Growth Fund, the SmallCap Growth Fund, the MidCap Growth Fund, the Capital Appreciation Fund, the Balanced Fund, and the Socially Responsible Growth Fund incurred fees of $52, $179, $755, $108, $3 and $11, respectively, for these services provided by Alger Services. (e) OTHER TRANSACTIONS WITH AFFILIATES: Certain trustees and officers of the Trust are directors and officers of Alger Management, the Distributor and Alger Services. At April 30, 2005, Alger Management and its affiliates owned 59,545 shares, 29,456 shares, 86,647 shares, 19,170 shares, 187,394 shares and 243,785 shares of the LargeCap Growth Fund, the SmallCap Growth Fund, the MidCap Growth Fund, the Capital Appreciation Fund, the Balanced Fund and the Socially Responsible Growth Fund, respectively. THE ALGER INSTITUTIONAL FUNDS -48- NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) NOTE 4--SECURITIES TRANSACTIONS: The following summarizes the securities transactions by the Funds, other than short-term securities, for the six months ended April 30, 2005: PURCHASES SALES --------- ----- LargeCap Growth Fund ......................... $123,939,153 $124,160,814 SmallCap Growth Fund ......................... 37,936,790 59,506,973 MidCap Growth Fund ........................... 1,021,393,233 945,621,746 Capital Appreciation Fund .................... 104,586,692 119,734,979 Balanced Fund ................................ 1,860,414 1,790,081 Socially Responsible Growth Fund ............. 1,387,146 1,235,180 NOTE 5--LINES OF CREDIT: The Trust has both committed and uncommitted lines of credit with banks. All borrowings have variable interest rates and are payable on demand. With the exception of the Capital Appreciation Fund, the Trust borrows under such lines of credit exclusively for temporary or emergency purposes. The Capital Appreciation Fund may borrow up to 1/3 of the value of its assets, as defined, to purchase additional securities. To the extent the Capital Appreciation Fund borrows under these lines, it must pledge securities with a total value of at least twice the amount borrowed. For the six months ended April 30, 2005, the Fund had borrowings which averaged $20,877 at a weighted average interest rate of 2.61%. NOTE 6--SHARE CAPITAL: The Trust has an unlimited number of authorized shares of beneficial interest of $.001 par value which are presently divided into six series. Each series is divided into two separate classes. THE ALGER INSTITUTIONAL FUNDS -49- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) During the six months ended April 30, 2005, transactions of shares of beneficial interest were as follows: SHARES AMOUNT ------ ------ LargeCap Growth Fund Class I Shares sold .................. 1,167,371 $ 13,352,148 Shares redeemed .............. (1,386,211) (15,853,686) ---------- ------------- Net decrease ................. (218,840) $ (2,501,538) ========== ============= Class R Shares sold .................. 114,250 $ 1,292,473 Shares redeemed .............. (46,375) (533,547) ---------- ------------- Net increase ................. 67,875 $ 758,926 ========== ============= SmallCap Growth Fund Class I Shares sold .................. 652,018 $ 11,291,692 Shares redeemed .............. (1,843,903) (32,783,565) ---------- ------------- Net decrease ................. (1,191,885) $ (21,491,873) ========== ============= Class R Shares sold .................. 99,867 $ 1,738,604 Shares redeemed .............. (26,096) (450,904) ---------- ------------- Net increase ................. 73,771 $ 1,287,700 ========== ============= MidCap Growth Fund Class I Shares sold .................. 12,693,949 $ 207,657,230 Dividends reinvested ......... 843,221 14,005,908 Shares redeemed .............. (9,084,168) (148,859,611) ---------- ------------- Net increase ................. 4,453,002 $ 72,803,527 ========== ============= Class R Shares sold .................. 503,317 $ 8,185,542 Dividends reinvested ......... 13,818 227,446 Shares redeemed .............. (250,091) (4,091,715) ---------- ------------- Net increase ................. 267,044 $ 4,321,273 ========== ============= Capital Appreciation Fund Class I Shares sold .................. 1,560,595 $ 18,581,249 Shares redeemed .............. (2,459,578) (29,275,997) ---------- ------------- Net decrease ................. (898,983) $ (10,694,748) ========== ============= Class R Shares sold .................. 28,591 $ 333,948 Shares redeemed .............. (17,186) (200,545) ---------- ------------- Net increase ................. 11,405 $ 133,403 ========== ============= THE ALGER INSTITUTIONAL FUNDS -50- NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) SHARES AMOUNT ------ ------ Balanced Fund Class I Shares sold .................. 6,805 $ 51,878 Dividends reinvested ......... 5,423 41,217 Shares redeemed .............. (11,832) (89,181) ---------- ------------- Net increase ................. 396 $ 3,914 ========== ============= Class R Shares sold .................. 2,763 $ 20,812 Dividends reinvested ......... 685 5,169 Shares redeemed .............. (686) (5,120) ---------- ------------- Net increase ................. 2,762 $ 20,861 ========== ============= Socially Responsible Growth Fund Class I Shares sold .................. 33 $ 188 Dividends reinvested ......... 9,429 52,611 Shares redeemed .............. (2,640) (14,708) ---------- ------------- Net increase ................. 6,822 $ 38,091 ========== ============= Class R Shares sold .................. 18,199 $ 100,274 Dividends reinvested ......... 1,012 5,594 Shares redeemed .............. (574) (3,145) ---------- ------------- Net increase ................. 18,637 $ 102,723 ========== ============= During the year ended October 31, 2004, transactions of shares of beneficial interest were as follows: LargeCap Growth Fund Class I Shares sold .................. 3,182,162 $ 35,531,451 Shares redeemed .............. (3,622,713) (40,424,440) ---------- ------------- Net decrease ................. (440,551) $ (4,892,989) ========== ============= Class R Shares sold .................. 262,650 $ 2,902,113 Shares redeemed .............. (43,434) (478,582) ---------- ------------- Net increase ................. 219,216 $ 2,423,531 ========== ============= SmallCap Growth Fund Class I Shares sold .................. 2,187,748 $ 35,342,244 Shares redeemed .............. (4,022,745) (64,081,708) ---------- ------------- Net decrease ................. (1,834,997) $ (28,739,464) ========== ============= Class R Shares sold .................. 21,118 $ 328,354 Shares redeemed .............. (7,987) (124,976) ---------- ------------- Net increase ................. 13,131 $ 203,378 ========== ============= THE ALGER INSTITUTIONAL FUNDS -51- NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) SHARES AMOUNT ------ ------ MidCap Growth Fund Class I Shares sold .................. 34,583,348 $ 531,972,510 Shares redeemed .............. (16,573,777) (254,461,561) ----------- -------------- Net increase ................. 18,009,571 $ 277,510,949 =========== ============== Class R Shares sold .................. 936,539 $ 14,301,063 Shares redeemed .............. (203,152) (3,105,435) ----------- -------------- Net increase ................. 733,387 $ 11,195,628 =========== ============== Capital Appreciation Fund Class I Shares sold .................. 5,719,480 $ 65,521,012 Shares redeemed .............. (8,939,452) (101,293,599) ----------- -------------- Net decrease ................. (3,219,972) $ (35,772,587) =========== ============== Class R Shares sold .................. 72,246 $ 816,970 Shares redeemed .............. (13,789) (157,355) ----------- -------------- Net increase ................. 58,457 $ 659,615 =========== ============== Balanced Fund Class I Shares sold .................. 12,405 $ 93,926 Dividends reinvested ......... 100 756 Shares redeemed .............. (11,277) (83,135) ----------- -------------- Net increase ................. 1,228 $ 11,547 =========== ============== Class R Shares sold .................. 14,498 $ 105,281 Shares redeemed .............. -- -- ----------- -------------- Net increase ................. 14,498 $ 105,281 =========== ============== Socially Responsible Growth Fund Class I Shares sold .................. 632 $ 3,477 Dividends reinvested ......... 1,124 6,014 Shares redeemed .............. (1,613) (8,540) ----------- -------------- Net increase ................. 143 $ 951 =========== ============== Class R Shares sold .................. 9,021 $ 47,809 Dividends reinvested ......... 74 398 Shares redeemed .............. (1,400) (7,543) ----------- -------------- Net increase ................. 7,695 $ 40,664 =========== ============== THE ALGER INSTITUTIONAL FUNDS -52- NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) NOTE 7--DISTRIBUTIONS TO SHAREHOLDERS: Distributions paid by the Funds during the year ended October 31, 2004, consisted entirely of ordinary income. The tax character of distributions paid during the six months ended April 30, 2005 were as follows: MidCap Growth Fund Distributions paid from: Ordinary income ................................ $ -- Long-term capital gain ......................... 14,306,365 -------------- Total distributions paid ....................... $ 14,306,365 ============== Balanced Fund Distributions paid from: Ordinary income ................................ $ 18,724 Long-term capital gain ......................... 34,940 -------------- Total distributions paid ....................... $ 53,664 ============== Socially Responsible Growth Fund Distributions paid from: Ordinary income ................................ $ -- Long-term capital gain ......................... 63,890 -------------- Total distributions paid ....................... $ 63,890 ============== As of October 31, 2004, the components of distributable earnings on a tax basis were as follows: LargeCap Growth Fund Undistributed ordinary income .................. -- Undistributed long-term gain ................... -- Unrealized appreciation ........................ $ 5,718,792 SmallCap Growth Fund Undistributed ordinary income .................. -- Undistributed long-term gain ................... -- Unrealized appreciation ........................ $ 4,361,517 MidCap Growth Fund Undistributed ordinary income .................. -- Undistributed long-term gain ................... $ 14,299,602 Unrealized appreciation ........................ 47,342,278 Capital Appreciation Fund Undistributed ordinary income .................. -- Undistributed long-term gain ................... -- Unrealized appreciation ........................ $ 11,465,876 THE ALGER INSTITUTIONAL FUNDS -53- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Balanced Fund Undistributed ordinary income .................. $ 11,953 Undistributed long-term gain ................... 34,771 Unrealized appreciation ........................ 55,818 Socially Responsible Growth Fund Undistributed ordinary income .................. -- Undistributed long-term gain ................... $ 63,841 Unrealized appreciation ........................ 120,349 The differences between book basis and tax basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales. At October 31, 2004, the Funds, for federal income tax purposes, had capital loss carryforwards which expire as set forth in the table below. These amounts may be applied against future net realized gains until the earlier of their utilization or expiration. LARGECAP SMALLCAP CAPITAL GROWTH GROWTH APPRECIATION EXPIRATION DATE FUND FUND FUND - --------------- ----------- ----------- ------------ 2009 $10,902,646 $62,515,944 $ 76,937,585 2010 22,615,727 12,342,837 46,484,857 2011 5,070,663 -- -- ----------- ----------- ------------ $38,589,036 $74,858,781 $123,422,442 =========== =========== ============ NOTE 8--REGULATORY MATTERS AND LEGAL PROCEEDINGS: Alger Management has been responding to inquiries, document requests and/or subpoenas from regulatory authorities, including the United States Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General, and the Attorney General of New Jersey, in connection with their investigation of practices in the mutual fund industry identified as "market timing" and "late trading." Alger Management has assured the board of the Trust that if it is determined that improper trading practices in the Trust detrimentally affected its performance, Alger Management will make appropriate restitution. Certain civil actions have developed out of the regulatory investigations. Several purported class actions and shareholder derivative suits have been filed against various parties, including, depending on the lawsuit, Alger Management, certain of the mutual funds managed by Alger Management (the "Alger Mutual Funds"), and certain current and former Alger Mutual Fund trustees and officers, alleging wrongful market-timing and late-trading activities. These cases have been transferred to the U.S. District Court of Maryland by the Judicial Panel on Multidistrict Litigation for consolidated pre-trial proceedings. On September 29, 2004, consolidated amended complaints involving these cases THE ALGER INSTITUTIONAL FUNDS -54- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -- a Consolidated Amended Fund Derivative Complaint (the "Derivative Complaint") and two substantially identical Consolidated Amended Class Action Complaints (together, the "Class Action Complaint") -- were filed in the Maryland federal district court under the caption number 1:04-MD-15863 (JFM). The Derivative Complaint, brought on behalf of the Alger Mutual Funds and Castle Convertible Fund, Inc., a registered closed-end fund managed by Alger Management, alleges (i) violations, by Alger Management and, depending on the specific offense alleged, by its immediate parent the Distributor (Fred Alger & Company, Incorporated) and/or the fund trustee defendants, of Sections 36(a), 36(b), 47, and 48 of the Investment Company Act of 1940 and of Sections 206 and 215 of the Investment Advisers Act of 1940, breach of fiduciary duty, and breach of contract, (ii) various offenses by other, unrelated, third-party defendants, and (iii) unjust enrichment by all the named defendants, all by virtue of the alleged wrongful market-timing and late-trading activities. The complaint seeks, among other things, removal of the trustee defendants and of Alger Management, certain rescissory relief, disgorgement of management fees and allegedly unlawful profits, compensatory and punitive monetary damages, and plaintiffs' fees and expenses (including attorney and expert fees). The Class Action Complaint names the Alger-related defendants named in the Derivative Complaint as well as certain defendants not named in the Derivative Complaint, including certain entities affiliated with Alger Management, certain Alger Mutual Funds, including the Trust, and certain additional former trustees and a former officer of the defendant Alger Mutual Funds. It alleges, on the basis of factual allegations similar to those of the Derivative Complaint with respect to the Alger defendants, (i) offenses by Alger defendants similar to those alleged in the Derivative Complaint, (ii) violations, by Alger Management, the Distributor, their affiliates, the funds named as defendants, and the current and former fund trustees and officers, of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, Sections 10(b) (and Rule 10b-5 thereunder) and 20(a) of the Securities Exchange Act of 1934, and Section 34(b) of the Investment Company Act of 1940, (iii) breach of contract by the funds named as defendants, and (iv) unjust enrichment by all of the named defendants. It seeks relief similar to that sought in the Derivative Complaint. On or about April 12, 2005, the Attorney General of the State of West Virginia filed a complaint in the Circuit Court of Marshall County, West Virginia against a number of mutual fund investment advisers, distributors and others, including Alger Management and the Distributor, alleging violations of the West Virginia Consumer Credit and Protection Act and other wrongful conduct. Insofar as the factual allegations in the complaint relate to Alger Management and the Distributor, they ascribe improper conduct to these entities relating to "market timing" in one or more of the Alger Mutual Funds. The complaint seeks injunctive relief, civil monetary penalties, costs and attorney fees, and other relief. THE ALGER INSTITUTIONAL FUNDS -55- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Alger Management continues to cooperate with the SEC and state investigations, which have not, as of the present date, been resolved. Although Alger Management does not believe that the Alger Mutual Funds are themselves targets of these regulators' investigations as potential enforcement defendants, the actions of Alger Management and certain of its affiliates and their senior executives and Alger Mutual Fund senior personnel are of interest to the investigators. Although no regulatory enforcement action has yet been commenced against Alger Management, board members or personnel in connection with the matters being investigated (other than the actions resolved in the fall of 2003 against James P. Connelly, Jr., former Vice Chairman of the Distributor), it is possible that the SEC and the states may pursue actions in the future. The potential timing of any such action or the relief or remedies that may be sought are not known at this time. Alger Management is not yet able to predict whether or on what terms matters might be resolved with the SEC or the states. The SEC and, in some cases, state government authorities have a variety of administrative and civil enforcement powers, including injunctive powers, authority to assess substantial fines and penalties and order restitution, authority to limit the activities of a person or company (including license and registration revocations, injunctive authority and prohibition from engaging in the investment or securities businesses) and other enforcement powers, that may be exercised administratively or by going into court. Under Section 9(a) of the Investment Company Act, if any of the various regulatory investigations or lawsuits were to result in a court injunction against Alger Management or the Distributor, both companies would, in the absence of exemptive relief granted by the SEC, be barred from serving as investment adviser/sub-adviser or principal underwriter for any registered investment company, including the Trust. There is no assurance that such exemptive relief would be granted if sought. In addition, it is possible that these matters and/or other developments resulting from these matters could result in increased Trust redemptions, loss of Alger Management personnel or Trust board members, diversion of time and attention of Alger Management personnel, diminishment of financial resources of Alger Management, or other consequences potentially adverse to the Trust. Alger Management cannot predict the potential effect of such actions upon Alger Management or the Trust. There can be no assurance that the effect, if any, would not be material. NOTES: NOTES: NOTES: THE ALGER INSTITUTIONAL FUNDS 111 Fifth Avenue New York, NY 10003 (800) 992-3362 www.alger.com INVESTMENT MANAGER Fred Alger Management, Inc. 111 Fifth Avenue New York, NY 10003 TRANSFER AGENT AND DIVIDEND DISBURSING AGENT Boston Financial Data Services, Inc. P.O. Box 8480 Boston, MA 02266 This report is submitted for the general information of the shareholders of The Alger Institutional Funds. It is not authorized for distribution to prospective investors unless accompanied by an effective Prospectus for the Trust, which contains information concerning the Trust's investment policies, fees and expenses as well as other pertinent information. PROXY VOTING POLICIES A description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities and the proxy voting record is available, without charge, by calling (800) 992-3362 or online on the Funds' website at http://www.alger.com or on the SEC's website at http://www.sec.gov. QUARTERLY FUND HOLDINGS The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q. Forms N-Q are available online on the Funds' website at http://www.alger.com or on the SEC's website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. A copy of the most recent quarterly holdings may also be obtained from the Funds by calling (800) 992-3362. [LOGO OMITTED] The Alger Institutional Funds Boston Financial Data Services, Inc. P.O. Box 8480 Boston, MA 02266 ISAR 43005 L2 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this document. (b) No changes in the registrant's internal control over financial reporting occurred during the registrant's second fiscal quarter of the period covered by this report that materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a) (1) Not applicable (a) (2) Certifications of principal executive officer and principal financial officer as required by rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT (b) Certifications of principal executive officer and principal financial officer as required by rule 30a-2(b) under the Investment Company Act of 1940 are attached as Exhibit 99.906CERT SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. The Alger Institutional Funds By: /s/Dan C. Chung --------------- Dan C. Chung President Date: June 28, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/Dan C. Chung --------------- Dan C. Chung President Date: June 28, 2005 By: /s/ Frederick A. Blum --------------------- Frederick A. Blum Treasurer Date: June 28, 2005 EX-99.CERT 2 c37055_ex99cert.txt Rule 30a-2(a) CERTIFICATIONS I, Dan C. Chung, certify that: 1. I have reviewed this report on Form N-CSR of The Alger Institutional Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 28, 2005 /s/ Dan C. Chung - ---------------------- Dan C. Chung President Rule 30a-2(a) CERTIFICATIONS I, Frederick A. Blum, certify that: 1. I have reviewed this report on Form N-CSR of The Alger Institutional Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 28, 2005 /s/ Frederick A. Blum - --------------------- Frederick A. Blum Treasurer EX-99.906CERT 3 c37055_ex99-906cert.txt Rule 30a-2(b) CERTIFICATIONS Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of The Alger Institutional Funds, do hereby certify, to such officer's knowledge, that: (1) The semi-annual report on Form N-CSR of the Registrant for the period ended April 30, 2005 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of The Alger Institutional Funds. Dated: June 28, 2005 /s/Dan C. Chung - ------------------------------ Dan C. Chung President The Alger Institutional Funds Dated: June 28, 2005 /s/ Frederick A. Blum - ------------------------------ Frederick A. Blum Treasurer The Alger Institutional Funds Dated: June 28, 2005 This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or as a separate disclosure document. -----END PRIVACY-ENHANCED MESSAGE-----