Prospectus
March 1,
2023
(As
Revised April 6, 2023)
|
|
Class |
Ticker
Symbol |
|
Alger
Spectra Fund |
A |
SPECX |
|
C |
ASPCX | |
|
Alger
Responsible Investing Fund |
A |
SPEGX |
|
C |
AGFCX | |
|
Alger
Dynamic Opportunities Fund |
A |
SPEDX |
|
C |
ADOCX | |
|
Alger
Emerging Markets Fund |
A |
AAEMX |
|
C |
ACEMX |
The Securities and
Exchange Commission has not determined if the information in this Prospectus is
accurate or complete, nor has it approved or disapproved these securities. It is
a criminal offense to represent otherwise.
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Prospectus 1/54
Summary
Sections
(fees paid directly from your investment)
|
|
Class
A |
Class
C |
|
Maximum
sales charge (load) imposed on purchases as a % of offering
price |
|
|
|
Maximum
deferred sales charge (load) as a % of purchase price or redemption
proceeds, whichever is lower |
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
A |
Class
C |
|
Advisory
Fees** |
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
Other
Expenses*** |
|
|
|
Total
Annual Fund Operating Expenses**** |
|
|
*
**
***
****“Total Annual Fund
Operating Expenses” have been restated to reflect current
fees.
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
Class
C |
$ |
$ |
$ |
$ |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
C |
$ |
$ |
$ |
$ |
Prospectus 2/54
Prospectus 3/54
Prospectus 4/54
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Return
After Taxes on Distributions |
- |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
C |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Russell
3000 Growth Index (reflects
no deductions for fees, expenses or taxes) |
- |
|
|
|
Management
|
Investment
Manager |
Portfolio
Managers Jointly and Primarily Responsible for Day-to-Day Management of
the
Fund |
|
Fred
Alger Management, LLC |
Dan
C. Chung, CFA
Chief
Executive Officer, Chief Investment Officer and Portfolio
Manager
Since
February 2021 |
|
Patrick
Kelly, CFA
Executive
Vice President, Head of Alger Capital Appreciation and Spectra Strategies
and
Portfolio
Manager
Since
September 2004 | |
|
Ankur
Crawford, Ph.D.
Executive
Vice President and Portfolio Manager
From
June 2015 to February 2021; and
From
March 2021 to
Present |
Prospectus 5/54
When a Fund is
co-managed, the responsibilities of such portfolio managers may be shared,
divided or otherwise assigned based on various factors including, but not
limited to, level of Fund assets to be managed, their overall experience, their
sector expertise, and such other factors as the Manager believes are most
efficient and effective. In all cases, each portfolio manager collaborates with
the other portfolio manager(s) and analysts to develop overall strategy,
outlook, and themes, which impact industry, sector and security allocations in
the Fund. Responsibilities amongst portfolio managers may be fully or partially
allocated to one of the portfolio managers for the purposes of day-to-day
portfolio management and stock selection, implementation of trades, strategic
and performance oversight, risk management, or oversight of guidelines, whether
externally driven or internally developed by the Manager.
Shareholder
Information
Purchasing
and Redeeming Fund Shares
Class C Shares of the
Fund are only offered to investors through certain financial intermediaries and
group retirement plan recordkeeping platforms.
Minimum
Investments: the following minimums apply to an account in the Fund, whether
invested in Class A or Class C Shares.
|
Type
of Account |
Initial
Investment |
Subsequent
Investment |
|
Regular
account |
$1,000 |
$50 |
|
Retirement
Accounts (including IRAs) |
500 |
50 |
|
Automatic
Investment |
500 |
50 |
|
Asset-based
Fee Program Accounts |
250 |
50 |
Minimums
may be waived in certain circumstances. See “Additional Information about
Minimum Initial Investments” in the Prospectus.
In general, investors
may purchase or redeem Fund shares on any business day by mail (Alger Family of
Funds, c/o UMB Fund Services, Inc., P.O. Box 2175, Milwaukee, WI 53201-2175),
online at www.alger.com, by telephone at 1 (800) 992-3863 or through a financial
intermediary.
Investors who wish to
purchase, exchange or redeem Fund shares through a financial intermediary should
contact their financial intermediary directly.
Tax
Information
The Fund’s
distributions may be taxable as ordinary income or capital gains. The Fund is
actively managed, and as a result, investors may receive capital gains
distributions annually.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund and/or the Manager or the Fund’s distributor may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
Prospectus 6/54
(fees paid directly from your investment)
|
|
Class
A |
Class
C |
|
Maximum
sales charge (load) imposed on purchases as a % of offering
price |
|
|
|
Maximum
deferred sales charge (load) as a % of purchase price or redemption
proceeds, whichever is lower |
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
A |
Class
C |
|
Advisory
Fees** |
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
Other
Expenses |
|
|
|
Total
Annual Fund Operating Expenses |
|
|
*
**
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
Class
C |
$ |
$ |
$ |
$ |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
C |
$ |
$ |
$ |
$ |
Prospectus 7/54
Prospectus 8/54
Prospectus 9/54
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Return
After Taxes on Distributions |
- |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
C |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Russell
1000 Growth Index (reflects
no deductions for fees, expenses or taxes) |
- |
|
|
|
Management
|
Investment
Manager |
Portfolio
Manager Primarily Responsible for Day-to-Day Management of the
Fund |
|
Fred
Alger Management, LLC |
Gregory
S. Adams, CFA
Senior
Vice President, Director of Quantitative & Risk Management and
Portfolio Manager
Since
December 2016 |
Shareholder
Information
Purchasing
and Redeeming Fund Shares
Class C Shares of the
Fund are only offered to investors through certain financial intermediaries and
group retirement plan recordkeeping platforms.
Prospectus 10/54
Minimum
Investments: the following minimums apply to an account in the Fund, whether
invested in Class A or Class C Shares.
|
Type
of Account |
Initial
Investment |
Subsequent
Investment |
|
Regular
account |
$1,000 |
$50 |
|
Retirement
Accounts (including IRAs) |
500 |
50 |
|
Automatic
Investment |
500 |
50 |
|
Asset-based
Fee Program Accounts |
250 |
50 |
Minimums
may be waived in certain circumstances. See “Additional Information about
Minimum Initial Investments” in the Prospectus.
In general, investors
may purchase or redeem Fund shares on any business day by mail (Alger Family of
Funds, c/o UMB Fund Services, Inc., P.O. Box 2175, Milwaukee, WI 53201-2175),
online at www.alger.com, by telephone at 1 (800) 992-3863 or through a financial
intermediary.
Investors who wish to
purchase, exchange or redeem Fund shares through a financial intermediary should
contact their financial intermediary directly.
Tax
Information
The Fund’s
distributions may be taxable as ordinary income or capital gains. The Fund is
actively managed, and as a result, investors may receive capital gains
distributions annually.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund and/or the Manager or the Fund’s distributor may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
Prospectus 11/54
(fees paid directly from your investment)
|
|
Class
A |
Class
C |
|
Maximum
sales charge (load) imposed on purchases as a % of offering
price |
|
|
|
Maximum
deferred sales charge (load) as a % of purchase price or redemption
proceeds, whichever is lower |
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
A |
Class
C |
|
Advisory
Fees** |
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
Other
Expenses*** |
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
Fee
Waiver and/or Expense Reimbursement**** |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
*
**
***
****The Manager has
contractually agreed to waive and/or reimburse Fund
expenses (excluding custody fees, acquired fund fees and expenses, interest,
taxes, brokerage and extraordinary expenses, to the extent applicable) through
February 28,
2025 to the extent
necessary to limit other expenses and any other applicable share class-specific
expenses of the Fund’s Class A Shares to .80%, and the Class C Shares to 1.55%,
of such class’s average daily net assets. This expense reimbursement may only be
amended or terminated prior to its expiration date by agreement between the
Manager and the Fund’s Board of Trustees, and will terminate automatically in
the event of termination of the Investment Advisory Agreement. The Manager may
recoup any fees waived or expenses reimbursed pursuant to the contract; however,
the Fund will only make repayments to the Manager if such repayment does not
cause the Fund’s expense ratio after the repayment is taken into account, to
exceed both (i) the expense cap in place at the time such amounts were waived or
reimbursed, and (ii) the Fund’s current expense cap. Such recoupment is limited
to two years from the date the amount is initially waived or
reimbursed.
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
Class
C |
$ |
$ |
$ |
$ |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
C |
$ |
$ |
$ |
$ |
Prospectus 12/54
Prospectus 13/54
Prospectus 14/54
|
|
|
|
|
|
|
Prospectus 15/54
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Return
After Taxes on Distributions |
- |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
C |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
S&P
500 Index (reflects
no deductions for fees, expenses or taxes) |
- |
|
|
|
|
HFRI
Equity Hedge (Total) Index (reflects
no deductions for fees, expenses or taxes) |
- |
|
|
|
Management
|
Investment
Manager |
Portfolio
Managers Jointly and Primarily Responsible for Day-to-Day Management of
the
Fund |
|
Fred
Alger Management, LLC |
Dan
C. Chung, CFA
Chief
Executive Officer, Chief Investment Officer and Portfolio
Manager
Since
Inception (November 2009) |
|
Gregory
S. Adams, CFA
Senior
Vice President, Director of Quantitative & Risk Management and
Portfolio Manager
Since
Inception (November 2009) |
|
Sub-Adviser |
|
|
Weatherbie
Capital, LLC* |
H.
George Dai, Ph.D.
Chief
Investment Officer and Senior Portfolio Manager
Since
March 2017 |
|
Joshua
D. Bennett, CFA
Chief
Operating Officer and Senior Portfolio Manager
Since
March 2017 | |
|
Daniel
J. Brazeau, CFA
Senior
Managing Director and Portfolio Manager
Since
March 2017 |
*
Weatherbie
sub-advises the Fund subject to the Manager’s supervision and
approval.
When a Fund is
co-managed, the responsibilities of such portfolio managers may be shared,
divided or otherwise assigned based on various factors including, but not
limited to, level of Fund assets to be managed, their overall experience, their
sector expertise, and such other factors as the Manager believes are most
efficient and effective. In all cases, each portfolio manager collaborates with
the other portfolio manager(s) and analysts to develop overall strategy,
outlook, and themes, which impact industry, sector and security allocations in
the Fund. Responsibilities amongst portfolio managers may be fully or partially
allocated to one of the portfolio managers for the purposes of day-to-day
portfolio management and stock selection, implementation of trades, strategic
and performance oversight, risk management, or oversight of guidelines, whether
externally driven or internally developed by the Manager.
Shareholder
Information
Purchasing
and Redeeming Fund Shares
Class C Shares of the
Fund are only offered to investors through certain financial intermediaries and
group retirement plan recordkeeping platforms.
Prospectus 16/54
Minimum
Investments: the following minimums apply to an account in the Fund, whether
invested in Class A or Class C Shares.
|
Type
of Account |
Initial
Investment |
Subsequent
Investment |
|
Regular
account |
$1,000 |
$50 |
|
Retirement
Accounts (including IRAs) |
500 |
50 |
|
Automatic
Investment |
500 |
50 |
|
Asset-based
Fee Program Accounts |
250 |
50 |
Minimums
may be waived in certain circumstances. See “Additional Information about
Minimum Initial Investments” in the Prospectus.
In general, investors
may purchase or redeem Fund shares on any business day by mail (Alger Family of
Funds, c/o UMB Fund Services, Inc., P.O. Box 2175, Milwaukee, WI 53201-2175),
online at www.alger.com, by telephone at 1 (800) 992-3863 or through a financial
intermediary.
Investors who wish to
purchase, exchange or redeem Fund shares through a financial intermediary should
contact their financial intermediary directly.
Tax
Information
The Fund’s
distributions may be taxable as ordinary income or capital gains. The Fund is
actively managed, and as a result, investors may receive capital gains
distributions annually.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund and/or the Manager or the Fund’s distributor may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
Prospectus 17/54
(fees paid directly from your investment)
|
|
Class
A |
Class
C |
|
Maximum
sales charge (load) imposed on purchases as a % of offering
price |
|
|
|
Maximum
deferred sales charge (load) as a % of purchase price or redemption
proceeds, whichever is lower |
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
A |
Class
C |
|
Advisory
Fees |
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
Other
Expenses |
|
|
|
Total
Annual Fund Operating Expenses** |
|
|
|
Fee
Waiver and/or Expense Reimbursement*** |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
*
**
***
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
Class
C |
$ |
$ |
$ |
$ |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
C |
$ |
$ |
$ |
$ |
Prospectus 18/54
Prospectus 19/54
Prospectus 20/54
|
|
|
|
|
|
|
Prospectus 21/54
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
- |
- |
|
|
|
Return
After Taxes on Distributions |
- |
- |
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
- |
|
|
|
Class
C |
|
|
|
|
|
Return
Before Taxes |
- |
- |
|
|
|
MSCI
Emerging Markets Index (reflects
no deductions for fees, expenses or taxes) |
- |
- |
|
|
Management
|
Investment
Manager |
Portfolio
Manager Primarily Responsible for Day-to-Day Management of the
Fund |
|
Fred
Alger Management, LLC |
Gregory
Jones
Senior
Vice President and Portfolio Manager
Since
September 2019 |
|
Pragna
Shere
Senior
Vice President and Portfolio Manager
Since
September 2019 |
When a Fund is
co-managed, the responsibilities of such portfolio managers may be shared,
divided or otherwise assigned based on various factors including, but not
limited to, level of Fund assets to be managed, their overall experience, their
sector expertise, and such other factors as the Manager believes are most
efficient and effective. In all cases, each portfolio manager collaborates with
the other portfolio manager(s) and analysts to develop overall strategy,
outlook, and themes, which impact industry, sector and security allocations in
the Fund. Responsibilities amongst portfolio managers may be fully or partially
allocated to one of the portfolio managers for the purposes of day-to-day
portfolio management and stock selection, implementation of trades, strategic
and performance oversight, risk management, or oversight of guidelines, whether
externally driven or internally developed by the Manager.
Shareholder
Information
Purchasing
and Redeeming Fund Shares
Class C Shares of the
Fund are only offered to investors through certain financial intermediaries and
group retirement plan recordkeeping platforms.
Minimum
Investments: the following minimums apply to an account in the Fund, whether
invested in Class A or Class C Shares.
|
Type
of Account |
Initial
Investment |
Subsequent
Investment |
|
Regular
account |
$1,000 |
$50 |
|
Retirement
Accounts (including IRAs) |
500 |
50 |
|
Automatic
Investment |
500 |
50 |
|
Asset-based
Fee Program Accounts |
250 |
50 |
Minimums
may be waived in certain circumstances. See “Additional Information about
Minimum Initial Investments” in the Prospectus.
Prospectus 22/54
In general, investors
may purchase or redeem Fund shares on any business day by mail (Alger Family of
Funds, c/o UMB Fund Services, Inc., P.O. Box 2175, Milwaukee, WI 53201-2175),
online at www.alger.com, by telephone at 1 (800) 992-3863 or through a financial
intermediary.
Investors who wish to
purchase, exchange or redeem Fund shares through a financial intermediary should
contact their financial intermediary directly.
Tax
Information
The Fund’s
distributions may be taxable as ordinary income or capital gains. The Fund is
actively managed, and as a result, investors may receive capital gains
distributions annually.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund and/or the Manager or the Fund’s distributor may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
Prospectus 23/54
Investment
Objectives, Principal Investment Strategies and Related Risks
The investment
objective, principal strategy and primary risks of each Fund are discussed
individually in each Fund’s Summary Section in this Prospectus. Each Fund except
Alger Spectra Fund and Alger Dynamic Opportunities Fund has adopted a policy to
invest at least 80% of its assets in specified securities appropriate to its
name (as described in the Fund’s Summary Section in this Prospectus) and to
provide its shareholders with at least 60 days’ prior notice of any change with
respect to this policy. Each Fund’s investment objective is a non-fundamental
investment policy and may be changed by the Board of Trustees (the “Board”)
without shareholder approval. A Fund will provide its shareholders with at least
60 days’ prior notice of any change to its investment objective. A Fund may,
from time to time, take temporary defensive positions that are inconsistent with
the Fund’s principal investment strategies in attempting to respond to adverse
market, economic, political, or other conditions. A Fund may not achieve its
investment objective while in a temporary defensive position.
All of a Fund’s share
classes invest in the same portfolio of securities. Performance of each share
class will vary from the performance of the Fund’s other share classes due to
the differences in charges or expenses. A Fund’s past performance (before and
after taxes) is not necessarily an indication of how it will perform in the
future.
Each index used in
the Summary Sections is a broad-based index designed to track a particular
market or market segment. No expenses, fees or taxes are reflected in the
returns for the indexes, which are unmanaged. All returns for the indexes assume
reinvestment of dividends and interest of the underlying securities that make up
the respective index. Investors cannot invest directly in any
index.
•
HFRI Equity Hedge
(Total) Index: publishes equally weighted monthly performance based on a number
of hedge funds reporting to create a composite, net of fees. HFRI constituents
may change without notice. HFRI, therefore, may have possibly lower risk, and
differ in asset allocation, portfolio structure, and holdings. Unlike
asset-weighting, the equal-weighting of HFRI presents a more general picture of
performance of the hedge fund industry. Any bias towards the larger funds
potentially created by alternative weightings is greatly reduced, especially for
strategies that encompass a small number of funds.
•
Russell 1000 Growth
Index: measures the performance of the large-cap growth segment of the U.S.
equity universe. It includes those Russell 1000 Index companies with higher
growth earning potential as defined by Russell’s leading style methodology. The
Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased
barometer for the large-cap growth segment.
•
Russell 3000 Growth
Index: combines the large-cap Russell 1000 Growth, the small-cap Russell 2000
Growth and the Russell Microcap Growth Index. It includes companies that are
considered more growth oriented relative to the overall market as defined by
Russell’s leading style methodology. The Russell 3000 Growth Index is
constructed to provide a comprehensive, unbiased, and stable barometer of the
growth opportunities within the broad market.
•
MSCI Emerging Markets
Index: A free float-adjusted market capitalization index designed to measure
equity market performance in the global emerging markets.
•
S&P 500 Index: An
index of large company stocks considered to be representative of the U.S. stock
market.
Additional
Information About the Funds’ Investment Strategies and Investments
Investment
Objective
Each of the Funds
seeks long-term capital appreciation.
Principal
Investment Strategies
The following are
each Fund’s investment process and principal investment strategies. Each Fund
may invest in other securities that are not its principal strategy, and such
strategies and related risks are described in more detail in the Fund’s
Statement of Additional Information (“SAI”).
Each Fund invests
primarily in equity securities. Each Fund’s investments in equity securities are
primarily in common or preferred stocks, but its equity investments may also
include securities convertible into or exchangeable for equity securities
(including warrants and rights) and depositary receipts. Each Fund invests
primarily in companies whose securities are traded on U.S. or foreign
exchanges.
Each of these Funds’
equity investments are primarily in “growth” stocks. The Funds’ investment
manager, Fred Alger Management, LLC (“Alger Management” or the “Manager”),
believes that these companies tend to fall into one of two
categories:
Prospectus 24/54
•
High
Unit Volume Growth
Vital, creative companies that offer goods or services to a rapidly expanding marketplace. They include both established and emerging firms, exercising market dominance, offering new or improved products, or simply fulfilling an increased demand for an existing product line.
Vital, creative companies that offer goods or services to a rapidly expanding marketplace. They include both established and emerging firms, exercising market dominance, offering new or improved products, or simply fulfilling an increased demand for an existing product line.
•
Positive
Life Cycle Change
Companies experiencing a major change which is expected to produce advantageous results. These changes may be as varied as new management, products or technologies; restructuring or reorganization; regulatory change; or merger and acquisition.
Companies experiencing a major change which is expected to produce advantageous results. These changes may be as varied as new management, products or technologies; restructuring or reorganization; regulatory change; or merger and acquisition.
A portion of the
Alger Dynamic Opportunities Fund’s assets are sub-advised by Weatherbie Capital,
LLC (“Weatherbie” or the “Sub-Adviser”), an affiliate of the Manager (Weatherbie
and the Manager, collectively referred to as the “Manager,” where
applicable). Subject to the general supervision by the Board, the
Manager oversees Weatherbie and evaluates its performance results. The
Manager reviews portfolio performance, compliance with investment guidelines and
federal securities laws, and changes in key personnel of Weatherbie. Weatherbie
is primarily responsible for the day-to-day management of the portion of the
Alger Dynamic Opportunities Fund’s portfolio that it sub-advises, including
purchases and sales of individual securities.
ESG
Integration
The following is
applicable to all Funds, except Alger Responsible Investing Fund.
Although a Fund does
not seek to implement a specific environmental, social and governance (“ESG”),
impact or sustainability strategy unless otherwise disclosed, the Manager has
sought to integrate ESG considerations into its investment process through the
use of both third-party ESG specific information and its own proprietary
research. Specifically, with respect to 75% of its assets under management, the
Manager evaluates a company’s ESG factors and, based on such factors, may engage
with the company to (i) identify drivers of poor ESG metrics; (ii) interview
management with key questions about ESG issues; and (iii) evaluate the prospect
of positive ESG change within a company. Upon conclusion of this engagement, a
report is published to the Manager’s research database to ensure that all
portfolio managers have access to the report summarizing the company’s ESG
issues, the results of any meeting/interview with the company, an ESG rating of
the company and any other relevant factors. The author of each report will meet
with portfolio managers as necessary to discuss the ESG report and the impact
the report may have on the overall investment view of the company.
The Manager may
change the sources for such ESG information, including by adding or modifying
the information it receives from third-party firms, selecting different
third-party firms, using company-provided information, or performing different
or additional internal assessments. To assist with efforts to incorporate ESG
considerations into the investment process, all of the Manager’s investment
professionals have access to company-specific ESG reports. The Manager has
established an ESG steering committee comprised of executive management and
senior investment professionals to oversee this process.
ESG characteristics
are not the sole considerations when making investment decisions for a Fund.
Further, investors can differ in their views of what constitutes positive or
negative ESG characteristics. As a result, a Fund may invest in issuers that do
not reflect the beliefs and values with respect to ESG of any particular
investor. ESG considerations may affect a Fund’s exposure to certain companies
or industries and a Fund may forego certain investment opportunities. While the
Manager views ESG considerations as having the potential to contribute to a
Fund’s long-term performance, there is no guarantee that such results will be
achieved.
Principal
Risks
This section contains
a discussion of the general risks of investing in the Funds. The “Investment
Strategies and Policies” section in the SAI also includes more information about
the Funds and their investments and the related risks. An investment in the
Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation
or by any bank or governmental agency. As with any fund, an investment in the
Funds involves risks. Each risk noted below is applicable to each Fund unless
the specific Fund or Funds are noted in a parenthetical.
Investment
Risk
An investment in a
Fund is subject to investment risk, including the possible loss of the entire
principal amount that you invest.
Market
Risk
Your investment in
Fund shares represents an indirect investment in the securities owned by a Fund.
The value of these securities, like other investments, may move up or down,
sometimes rapidly and unpredictably. Your Fund shares at any point in time may
be worth less than what you invested, even after taking into account the
reinvestment of Fund dividends and distributions. Local, regional or global
events such as environmental or natural disasters, war, terrorism, pandemics,
outbreaks of infectious diseases, and similar public health threats, recessions,
or other events could have a significant impact on a Fund and its
investments.
Prospectus 25/54
Equity
Securities Risk
As with any fund that
invests in stocks, your investment will fluctuate in value, and the loss of your
investment is a risk of investing. Each Fund’s price per share will fluctuate
due to changes in the market prices of its investments. Because stock markets
tend to move in cycles, stock prices overall may decline. A particular stock’s
market value may decline as a result of general market conditions that are not
related to the issuing company (e.g., adverse economic
conditions or investor sentiment) or due to factors that affect the particular
company (e.g., management
performance or factors affecting the industry). Also, a Fund’s investments may
not grow as fast as the rate of inflation and stocks tend to be more volatile
than some other investments you could make, such as bonds.
Growth
Securities Risk
Prices of growth
stocks tend to be higher in relation to their companies’ earnings and may be
more sensitive to market, political and economic developments than other stocks,
making their prices more volatile. An investment in a Fund may be better suited
to investors who seek long-term capital growth and can tolerate fluctuations in
their investment’s value. Expected growth may not be realized.
Small
Cap Securities Risk (Alger Dynamic Opportunities Fund, Alger Emerging Markets
Fund)
There may be greater
risk investing in small capitalization companies rather than larger, more
established companies owing to such factors as more limited product lines or
financial resources or lack of management depth. They may be less financially
secure than larger, more established companies. They may depend on a small
number of key personnel. If a product fails, there are other adverse
developments, or if management changes, a Fund’s investment in a small cap
company may lose substantial value. In addition, it is more difficult to get
information on smaller companies, which tend to be less well known, have shorter
operating histories, do not have significant ownership by large investors and
are followed by relatively few securities analysts. The securities of small cap
companies generally trade in lower volumes and are subject to greater and more
unpredictable price changes than larger cap securities or the market as a whole.
In addition, it may be difficult or impossible to liquidate a security position
at a time and price acceptable to a Fund because of the potentially less
frequent trading of stocks of smaller market capitalization. Small cap
securities may be particularly sensitive to changes in interest rates, borrowing
costs and earnings. Investing in small cap securities requires a longer term
view.
Options
Risk (Alger Dynamic Opportunities Fund)
The Fund may purchase
put and call options and sell (write) covered put and call options, on
securities and securities indexes, to increase gain, to hedge against the risk
of unfavorable price movements in the underlying securities or to provide
diversification of risk. For example, a Fund may purchase a put option on a
portfolio security to seek to protect against a decline in the market value of
the security, or, if the Fund contemplates purchasing a security in the future,
purchase a call option on the security in anticipation of an increase in the
security’s market value. When a Fund writes an option, if the market value of
the underlying security does not move to a level that would make exercise of the
option profitable to its holder, the option generally will expire unexercised
and the Fund will realize as a profit the premium it received.
A call option on a
security gives the purchaser of the option the right, in return for a premium
paid, to buy from the writer (seller) of the call option the security underlying
the option at a specified exercise price during the term of the option. The
writer is obligated upon exercise of the option to deliver the underlying
security upon payment of the exercise price. A put option on a security gives
the holder of the option, in return for the premium paid, the right to sell the
underlying security to the writer (seller) at a specified price during the term
of the option. The writer, who receives the premium, is obligated upon exercise
of the option to buy the underlying security at the exercise price. An option on
a stock index gives the holder the right to receive a cash settlement during the
term of the option based on the amount, if any, by which the exercise price
exceeds (if the option is a put) or is exceeded by (if the option is a call) the
current value of the index, which is itself a function of the market values of
the securities included in the index. The writer of the option is obligated, in
return for the premium received, to make delivery of this amount.
When purchasing
options, a Fund bears the risk that if the market value of the underlying
security does not move to a level that would make exercise of the option
profitable, the option will expire unexercised. When a call option written by a
Fund is exercised, the Fund will be required to sell the underlying security to
the option holder and will not participate in any increase in the security’s
value above that price. When a put option written by the fund is exercised, the
Fund will be required to purchase the underlying security at a price in excess
of its market value. Use of options on securities indexes entails the risk that
trading in the options may be interrupted if trading in certain securities
included in the index is interrupted. Price movements in a Fund’s portfolio
securities may not correlate precisely with movements in the level of an index
and, therefore, the use of options on indexes cannot serve as a complete hedge
and would depend in part on the ability of the Manager to predict correctly
movements in the direction of a particular market or of the stock market
generally. Because options on indexes require settlement in cash, the Fund may
be forced to liquidate portfolio securities to meet settlement
obligations.
Prospectus 26/54
Sector
Risk
Each Fund may have a
significant portion of its assets invested in securities of companies conducting
business within a single sector, as defined by third party sources. Companies in
the same sector may be similarly affected by economic, regulatory, political or
market events or conditions, which may make a Fund more vulnerable to
unfavorable developments in that sector than a fund that has a more diversified
portfolio. Generally, the more broadly a Fund invests, the more it spreads risk
and potentially reduces the risks of loss and volatility.
•
Consumer
Discretionary Sector Risk – The success of consumer product manufacturers and
retailers is tied closely to the performance of domestic and international
economies, interest rates, exchange rates, competition, consumer confidence,
changes in demographics and consumer preferences. Companies in the consumer
discretionary sector depend heavily on disposable household income and consumer
spending, and may be strongly affected by social trends and marketing campaigns.
These companies may be subject to severe competition, which may have an adverse
impact on their profitability.
•
Financials Sector
Risk – A Fund may have a significant portion of its assets invested in
securities of financial services companies, which means the Fund may be more
affected by the performance of the financials sector than a fund that is more
diversified. Financial services companies are subject to extensive governmental
regulation which may limit both the amounts and types of loans and other
financial commitments they can make, the interest rates and fees they can
charge, the scope of their activities, the prices they can charge and the amount
of capital they must maintain. Certain events in the financials sector may cause
an unusually high degree of volatility in the financial markets, both domestic
and foreign, and cause certain financial services companies to incur large
losses.
•
Health Care Sector
Risk – A Fund may be more susceptible to particular risks that may affect
companies in the health care sector than if it were invested in a wider variety
of companies in unrelated sectors. At times, the performance of such companies
will lag the performance of other industries or the broader market as a whole,
and the performance of such companies may be more volatile. The healthcare field
is subject to substantial governmental regulation and may, therefore, be
adversely affected by changes in governmental policies. These factors may lead
to limited earnings and/or failing profit margins. As a result, the value of
healthcare companies’ securities may fall or fail to rise. In addition,
companies in the health care sector can be significantly affected by intense
competition, aggressive pricing, technological innovations, product
obsolescence, patent considerations, product compatibility and consumer
preferences.
•
Industrials Sector
Risk – A Fund may have a significant portion of its assets invested in
securities of companies in the industrials sector. Industrial companies are
affected by supply and demand both for their specific product or service and for
industrials sector products in general. Government regulation, world events,
exchange rates and economic conditions, technological developments and
liabilities for environmental damage and general civil liabilities will likewise
affect the performance of these companies. Aerospace and defense companies, a
component of the industrials sector, can be significantly affected by government
spending policies because companies involved in this industry rely, to a
significant extent, on U.S. and foreign government demand for their products and
services.
•
Information
Technology Sector Risk – A Fund may be more susceptible to particular risks that
may affect companies in the information technology sector and technology-related
sectors than if it were invested in a wider variety of companies in unrelated
sectors. At times, the performance of such companies will lag the performance of
other industries or the broader market as a whole. Certain technology related
companies may face special risks that their products or services may not prove
to be commercially successful. Technology related companies are also strongly
affected by worldwide scientific or technological developments. As a result,
their products may rapidly become obsolete. Such companies are also often
subject to governmental regulation and may, therefore, be adversely affected by
governmental policies. These factors may lead to limited earnings and/or failing
profit margins. As a result, the value of technology related companies’
securities may fall or fail to rise. Many technology related companies’
securities have historically been more volatile than other securities,
especially over the short term.
Small
Number of Holdings Risk (Alger Emerging Markets Fund)
A Fund’s performance
may be more vulnerable to changes in the market value of a single issuer and
more susceptible to risks associated with a single economic, political, or
regulatory occurrence than a fund that has a higher number of holdings. At
times, the performance of shares of particular companies will lag the
performance of other sectors or the market as a whole. This risk is magnified
when a fund has a small number of holdings. Generally, the more broadly a fund
invests, the more it spreads its risks and potentially reduces the risk of loss
and volatility.
Leverage
Risk (Alger Spectra Fund, Alger Dynamic Opportunities Fund)
Each Fund can
leverage, that is, borrow money to buy additional securities. By borrowing
money, the Funds have the potential to increase their returns if the increase in
the value of the securities purchased exceeds the cost of borrowing, including
interest paid on the money borrowed. There is a risk that the cost of borrowing
money to leverage may exceed the returns for the securities
Prospectus 27/54
purchased or that the
securities purchased may actually go down in value; thus the Fund’s net asset
value could decrease more quickly than if it had not borrowed.
Environmental,
Social and/or Governance Sustainability-Related Securities Risk (Alger
Responsible Investing Fund)
The Manager
incorporates ESG criteria into its investment process for a Fund, which may be
viewed as providing opportunities for long-term rather than short-term returns,
and may result in the selection or exclusion of securities of certain issuers
for reasons other than financial performance. As a result, a Fund may forego
opportunities to buy certain securities when it might be otherwise advantageous
to do so, or sell certain securities when it might be otherwise disadvantageous
to do so. ESG investing also carries the risk that a Fund’s investment returns
may underperform funds that do not utilize an ESG investment strategy. The
application of this strategy may affect a Fund’s investment exposure to certain
companies, sectors, regions, countries or types of investments, which could
negatively impact a Fund’s performance depending on whether such investments are
in or out of favor. Applying ESG criteria to investment decisions is qualitative
and subjective by nature, and there is no guarantee that the criteria utilized
by the Manager or any judgment exercised by the Manager will reflect the beliefs
or values of any particular investor. In evaluating a company, the Manager is
dependent upon information and data obtained through voluntary or third-party
reporting that may be incomplete, inaccurate or unavailable, which could cause
the Manager to incorrectly assess a company’s ESG practices. ESG standards
differ by region and industry, and a company’s ESG practices or the Manager’s
assessment of a company’s ESG practices may change over time.
Foreign
Securities Risk (Alger Spectra Fund, Alger Dynamic Opportunities Fund, and Alger
Emerging Markets Fund)
Investing in foreign
securities involves risks related to the political, social and economic
conditions of foreign countries, particularly emerging market countries. These
risks may include political instability, exchange control regulations,
expropriation, lack of comprehensive information, national policies restricting
foreign investment, currency fluctuations, lack of liquidity, potential for
market manipulation, less developed or less efficient trading markets, limited
access to reliable capital, lack of comprehensive company information, political
instability, differing auditing, regulatory and legal standards and lack of
accounting and financial reporting standards, inflation and rapid fluctuations
in inflation, withholding or other taxes, and operational risks. There may be
less stringent government supervision and oversight of foreign markets than in
the United States. There may be less corporate financial information publicly
available, less stringent investor protection and disclosure standards, and
differing auditing and legal standards.
Investment in foreign
currencies is subject to the risk that those currencies will decline in value
relative to the U.S. dollar, or, in the case of hedged positions, that the U.S.
dollar will decline relative to the currency being hedged. Currency rates in
foreign countries may fluctuate significantly over short periods of time. A
decline in the value of foreign currencies relative to the U.S. dollar will
reduce the value of securities held by a Fund and denominated in those
currencies. Foreign currencies also are subject to risks caused by inflation,
interest rates, budget deficits and low savings rates, political factors and
government controls.
Emerging
Market Securities Risk (Alger Emerging Markets Fund)
The risks of foreign
investments are usually much greater for emerging markets. Investments in
emerging markets may be considered speculative. Emerging markets may include
those in countries considered emerging or developing by the World Bank, the
International Finance Corporation or the United Nations. Emerging markets are
riskier than more developed markets because they tend to develop unevenly and
may never fully develop. They are more likely to experience hyperinflation and
currency devaluations, which adversely affect returns to U.S. investors. In
addition, many emerging markets have far lower trading volumes and less
liquidity than developed markets. Since these markets are often small, they may
be more likely to suffer sharp and frequent price changes or long-term price
depression because of adverse publicity, investor perceptions or the actions of
a few large investors. In addition, traditional measures of investment value
used in the United States, such as price to earnings ratios, may not apply to
certain small markets. Also, there may be less publicly available information
about issuers in emerging markets than would be available about issuers in more
developed capital markets, and such issuers may not be subject to accounting,
auditing and financial reporting standards and requirements comparable to those
to which U.S. companies are subject.
Many emerging markets
have histories of political instability and abrupt changes in policies. As a
result, their governments are more likely to take actions that are hostile or
detrimental to private enterprise or foreign investment than those of more
developed countries, including expropriation of assets, confiscatory taxation,
high rates of inflation or unfavorable diplomatic developments. In the past,
governments of such nations have expropriated substantial amounts of private
property, and most claims of the property owners have never been fully settled.
There is no assurance that such expropriations will not reoccur. In such an
event, it is possible that a Fund could lose the entire value of its investments
in the affected market. Some countries have pervasive corruption and crime that
may hinder investments. Certain emerging markets may also face other significant
internal or external risks, including the risk of war, and ethnic, religious and
racial conflicts. In addition, governments in many emerging market countries
participate to a significant degree in their economies and securities markets,
which may impair investment and economic growth. National policies that may
limit a Fund’s investment opportunities include restrictions on investment in
issuers or industries deemed sensitive to national interests.
Prospectus 28/54
Emerging markets may
also have differing legal systems and the existence or possible imposition of
exchange controls, custodial restrictions or other foreign or U.S. governmental
laws or restrictions applicable to such investments. Sometimes, they may lack or
be in the relatively early development of legal structures governing private and
foreign investments and private property. Many emerging markets do not have
income tax treaties with the United States, and as a result, investments by a
Fund may be subject to higher withholding taxes in such countries. In addition,
some countries with emerging markets may impose differential capital gains taxes
on foreign investors.
Practices in relation
to settlement of securities transactions in emerging markets involve higher
risks than those in developed markets, in part because a Fund will need to use
brokers and counterparties that are less well capitalized, and custody and
registration of assets in some countries may be unreliable. The possibility of
fraud, negligence, undue influence being exerted by the issuer or refusal to
recognize that ownership exists in some emerging markets, and, along with other
factors, could result in ownership registration being completely lost. A Fund
would absorb any loss resulting from such registration problems and may have no
successful claim for compensation. In addition, communications between the
United States and emerging market countries may be unreliable, increasing the
risk of delayed settlements or losses of security certificates.
Frontier
Markets Risk (Alger Emerging Markets Fund)
Frontier markets are
those emerging markets considered to be among the smallest, least mature and the
securities of the issuers of which are the least liquid. Investments in frontier
markets generally are subject to a greater risk of loss than investments in
developed markets or traditional emerging markets. This is due to, among other
things, smaller economies, less developed capital markets, greater market
volatility, lower trading volume, political and economic instability, greater
risk of a market shutdown and more governmental limitations on foreign
investments than typically found in more developed markets. Frontier markets
often have less uniformity in accounting, auditing and financial reporting
requirements, unreliable securities valuations and greater risk associated with
custody of securities. Frontier markets are even more prone to economic shocks
associated with political and economic risks than are emerging markets
generally. Many frontier market countries may be dependent on commodities,
foreign trade or foreign aid. As a result, those risks traditionally associated
with investments in emerging markets may be more pronounced with respect to
investments in frontier market economies.
Short
Sales Risk (Alger Spectra Fund and Alger Dynamic Opportunities Fund)
Because making short
sales in securities that it does not own exposes a Fund to the risks associated
with those securities, such short sales involve speculative exposure risk. The
market price of a security may increase after a Fund borrows the security in
order to sell it short, so that a Fund suffers a loss when it replaces the
borrowed security at the higher price. A Fund will realize a gain if the
security declines in price between those dates. As a result, if a Fund makes
short sales in securities that increase in value, it will likely underperform
similar funds that do not make short sales in securities they do not own. There
can be no assurance that a Fund will be able to close out a short sale position
at any particular time or at an acceptable price. Although a Fund’s gain is
limited to the amount at which it sold a security short, its potential loss is
limited only by the maximum attainable price of the security, less the price at
which the security was sold and may, theoretically, be unlimited. A Fund may
also pay transaction costs and borrowing fees in connection with short
sales.
Convertible
Securities Risk (Alger Dynamic Opportunities Fund)
Issuers of
convertible securities may not be as strong financially as other companies, and
may be more vulnerable to changes in the economy.
Portfolio
Turnover (Active Trading) Risk (Alger Spectra Fund, Alger Dynamic Opportunities
Fund, Alger Emerging Markets Fund)
If a Fund engages in
active trading of portfolio securities, it may incur increased transaction costs
and brokerage commissions, both of which can lower the actual return on an
investment. Active trading may also increase short-term gains and losses, which
may affect the taxes a shareholder has to pay.
Cash
Position Risk
A Fund may hold up to
15% (no limit for Alger Dynamic Opportunities Fund) of its net assets in cash
(or cash equivalents) at any time or for an extended time and may hold a
significant portion of its assets in cash (or cash equivalents) when taking a
temporary defensive position, as described under “Temporary Defensive
Investments.” The Manager will determine the amount of a Fund’s assets to be
held in cash (or cash equivalents) at its sole discretion, based on such factors
as it may consider appropriate under the circumstances. To the extent a Fund
holds assets in cash and is otherwise uninvested, the ability of a Fund to meet
its objective may be limited. If a Fund holds a large cash position, a Fund may
under-perform relative to equity securities.
Prospectus 29/54
Temporary
Defensive Investments
In times of adverse
or unstable market, economic or political conditions, each Fund may invest up to
100% of its assets in cash, high-grade bonds, or cash equivalents (such as
commercial paper or money market instruments) for temporary defensive reasons.
This is to attempt to protect the Fund’s assets from a temporary, unacceptable
risk of loss, rather than directly to promote the Fund’s investment objective. A
Fund may also hold these types of securities in an amount up to 15% of net
assets, pending the investment of proceeds from the sale of Fund shares or
portfolio securities or to meet anticipated redemptions of Fund shares. A Fund
may not achieve its investment objective while in a temporary defensive
position.
Prospectus 30/54
Management
and Organization
Manager
Fred Alger
Management, LLC
100 Pearl Street, 27th Floor
New York, NY 10004
100 Pearl Street, 27th Floor
New York, NY 10004
The Manager has been
an investment adviser since 1964, and manages investments totaling (at December
31, 2022) approximately $21.7 billion. The Manager is responsible for providing
a continuous investment program for the Funds, making decisions with respect to
all purchases and sales of assets, and placing orders for the investment and
reinvestment of Fund assets. The Manager also arranges for transfer agency,
custody and all other services necessary for each Fund to operate. These
advisory responsibilities are subject to the supervision of the Board. A
discussion of the Trustees’ basis for approving the advisory contract with
respect to each Fund is available in the Funds’ annual report to shareholders
for its most recent October 31 fiscal year end. The Funds pay the Manager
advisory fees at the below annual rates based on a percentage of average daily
net assets. The actual rate paid as a percentage of average daily net
assets, for the fiscal year ended October 31, 2022, is set forth below under the
heading “Actual Rate.”
|
Fund |
Annual
Fee as a Percentage of Average Daily Net Assets |
Actual
Rate |
|
Alger
Spectra Fund |
.90%
for assets up to $2 billion;
.75%
for assets between $2 billion and $4 billion;
.65%
for assets between $4 billion and $6 billion;
.55%
for assets between $6 billion and $8 billion;
.45%
for assets in excess of $8 billion |
.76% |
|
Alger
Responsible Investing Fund |
.71%
for assets up to $1 billion;
.65%
for assets in excess of $1 billion |
.71% |
|
Alger
Dynamic Opportunities Fund |
1.20%
for assets up to $1 billion;
1.00%
for assets in excess of $1 billion |
1.20% |
|
Alger
Emerging Markets Fund |
.75% |
.75% |
The Manager has made
contractual commitments to certain Funds to waive and/or reimburse the Funds for
expenses to the extent necessary to maintain those Funds’ other expenses and any
other applicable share class-specific expenses at or below certain levels. With
respect to Alger Emerging Markets Fund, the limitations do not apply to acquired
fund fees and expenses, dividend expense on short sales, net borrowing costs,
interest, taxes, brokerage and extraordinary expenses, to the extent applicable.
With respect to Alger Dynamic Opportunities Fund, the limitations do not apply
to custody fees, acquired fund fees and expenses, interest, taxes, brokerage and
extraordinary expenses, to the extent applicable. Each agreement runs through
February 28, 2025 and may only be amended or terminated prior to its expiration
date by agreement between the Manager and the Board, and will terminate
automatically in the event of termination of the Investment Advisory Agreement.
Such waiver/reimbursement arrangements are as follows: Alger Dynamic
Opportunities Fund Class A Shares – 0.80%; Alger Dynamic Opportunities Fund
Class C Shares – 1.55%; Alger Emerging Markets Fund Class A Shares – 0.80%;
Alger Emerging Markets Fund Class C Shares – 1.55%. The Manager may recoup any
fees waived or expenses reimbursed pursuant to the contract; however, a Fund
will only make repayments to the Manager if such repayment does not cause a
Fund’s expense ratio after the repayment is taken into account, to exceed both
(i) the expense cap in place at the time such amounts were waived or reimbursed,
and (ii) a Fund’s current expense cap. Such recoupment is limited to two years
from the date the amount is initially waived or reimbursed.
Sub-Adviser
Weatherbie Capital,
LLC
265 Franklin Street, Suite 1603
Boston, Massachusetts 02110
265 Franklin Street, Suite 1603
Boston, Massachusetts 02110
The Manager has
engaged Weatherbie, an affiliate of the Manager, to serve as Alger Dynamic
Opportunities Fund’s sub-adviser under a sub-investment advisory agreement
between the Manager and the Sub-Adviser. Weatherbie is a registered investment
adviser formed in 1995. As of December 31, 2022, Weatherbie had approximately
$2.9 billion in assets under management. The Manager pays a sub-advisory fee to
the Sub-Adviser out of its own resources at no additional charge to the Fund.
Alger Management and Weatherbie are both wholly-owned subsidiaries of Alger
Group Holdings, LLC.
Prospectus 31/54
Portfolio
Managers Jointly and Primarily Responsible for Day-to-Day Management of the
Funds
|
Fund |
Portfolio
Manager(s) |
Since |
|
Alger
Spectra Fund |
Dan
C. Chung, CFA
Patrick
Kelly, CFA
Ankur
Crawford, Ph.D. |
February
2021
September
2004
June
2015 to
February
2021; and
March
2021 to
Present |
|
Alger
Responsible Investing Fund |
Gregory
S. Adams, CFA |
December
2016 |
|
Alger
Dynamic Opportunities Fund |
Dan
C. Chung, CFA
Gregory
S. Adams, CFA
H.
George Dai, Ph.D.
Joshua
D. Bennett, CFA
Daniel
J. Brazeau, CFA |
Inception
(11/2/09)
Inception
(11/2/09)
March
2017
March
2017
March
2017 |
|
Alger
Emerging Markets Fund |
Gregory
Jones
Pragna
Shere |
September
2019
September
2019 |
•
Mr. Adams has been
employed by the Manager since 2006. He became a Senior Vice President and the
Director of Quantitative & Risk Management in 2006, and a portfolio manager
in 2012. From 2006 through 2012, Mr. Adams was a Senior
Analyst.
•
Mr. Bennett is the
Chief Operating Officer of Weatherbie and a Senior Portfolio Manager. He joined
Weatherbie in 2007.
•
Mr. Brazeau is a
Senior Managing Director and Portfolio Manager of Weatherbie. He joined
Weatherbie in 2004.
•
Mr. Chung has been
employed by the Manager since 1994. He became a portfolio manager in 2000, Chief
Investment Officer in 2001, President in 2003, and Chief Executive Officer in
2006.
•
Dr. Crawford has been
employed by the Manager since 2004. She became a portfolio manager and a Senior
Vice President in 2010 and an Executive Vice President in 2019. She served as a
Vice President and an Analyst from 2007 to 2010, and a Senior Analyst from 2010
to 2016.
•
Dr. Dai is the Chief
Investment Officer of Weatherbie and a Senior Portfolio Manager. He joined
Weatherbie in 2001.
•
Mr. Jones has been
employed by the Manager since March 2018 as a portfolio manager and a Senior
Vice President. Previously, Mr. Jones was a portfolio manager and analyst at
Redwood Investments from 2016 to 2018, and prior to that, was Director of Global
Equities, Co-Chief Investment Officer and portfolio manager/analyst at Ashfield
Capital Partners.
•
Mr. Kelly has been
employed by the Manager since 1999. He became a portfolio manager in 2004, an
Executive Vice President in 2008, and the Head of Alger Capital Appreciation and
Spectra Strategies in 2015.
•
Ms. Shere has been
employed by the Manager since March 2018 as a portfolio manager and a Senior
Vice President. Previously, Ms. Shere was a portfolio manager and analyst at
Redwood Investments from 2016 to 2018, and prior to that, was portfolio
manager/analyst at Ashfield Capital Partners.
The SAI provides
additional information about the portfolio managers’ compensation, other
accounts that they manage, and their ownership of securities of the Fund(s) that
they manage.
Administrator
Pursuant to a
separate Fund Administration Agreement, the Manager also provides administrative
services to each Fund, including, but not limited to: providing office space,
telephone, office equipment and supplies; paying compensation of the Fund’s
officers for services rendered as such; authorizing expenditures and approving
bills for payment on behalf of the Fund; preparation of the periodic updating of
the Fund’s Registration Statement, including Prospectus and SAI, for the purpose
of filings with the Securities and Exchange Commission and monitoring and
maintaining the effectiveness of such filings, as appropriate; supervising
preparation of periodic shareholder reports, notices and other shareholder
communications; supervising the daily pricing of the Fund’s investment
portfolios and the publication of the net asset value of the Fund’s shares,
earnings reports and other financial data; monitoring relationships with
organizations providing services to each Fund, including the Fund’s custodian,
transfer agent, blue sky agent and printers; providing trading desk facilities
for the Fund; supervising compliance by the Fund with recordkeeping and periodic
reporting requirements under the Investment Company Act of 1940, as
amended (the “1940 Act”); preparation of materials for meetings of the
Fund’s Board of Trustees and preparation of minutes of such meetings; oversight
of service providers who file claims for class action lawsuits with respect to
securities in the Fund; arranging for the Fund the required
Prospectus 32/54
fidelity bond and
other insurance, if applicable; and providing executive, clerical and
secretarial help needed to carry out these responsibilities. Each Fund pays the
Manager an administrative fee at the annual rate of 0.0275% of the Fund’s
average daily net assets.
Pursuant to a
separate Shareholder Administrative Services Agreement, the Manager also
supervises the Funds’ transfer agent, UMB Fund Services, Inc. (the “Transfer
Agent”), and provides certain shareholder administrative services to the Funds.
Each Fund pays the Manager a shareholder administrative services fee at the
annual rate of 0.0165% of net assets with respect to Class A and C
Shares.
For more information,
please see the Shareholder Information section beginning on page 33.
Prospectus 33/54
Shareholder
Information
Distributor
Fred Alger &
Company, LLC
100 Pearl Street, 27th Floor
New York, NY 10004
100 Pearl Street, 27th Floor
New York, NY 10004
Although Fred Alger
& Company, LLC (the “Distributor”) is the broker-of-record on certain direct
shareholder accounts, the Distributor does not interact directly with such
shareholders and therefore, does not believe it makes recommendations to such
shareholders regarding the holdings in their accounts.
Transfer
Agent
Alger Family of
Funds
c/o UMB Fund Services, Inc.
P.O. Box 2175
Milwaukee, WI 53201-2175
c/o UMB Fund Services, Inc.
P.O. Box 2175
Milwaukee, WI 53201-2175
Net
Asset Value
The value of one
share is its net asset value, or “NAV.” Each Fund values its financial
instruments at fair value using independent dealers or pricing services under
policies approved by the Board. Investments held by a Fund are valued on each
day the New York Stock Exchange (the “NYSE”) is open, as of the close of the
NYSE (normally 4:00 p.m. Eastern Time).
NAV
of a class of shares is computed by adding together the value allocable
to the class of a Fund’s investments plus cash and other assets,
subtracting applicable liabilities and then dividing the result by the number of
outstanding shares of the class.
The Board has
designated, pursuant to Rule 2a-5 under the 1940 Act, the Manager as its
valuation designee (the “Valuation Designee”) to make fair value determinations
subject to the Board’s review and oversight. The Valuation Designee has
established a Valuation Committee (“Valuation Committee”) comprised of
representatives of the Manager and officers of the Trust to assist in performing
the duties and responsibilities of the Valuation Designee. The Valuation
Designee has established valuation processes, including but not limited to:
making fair value determinations when market quotations for a financial
instrument are not readily available in accordance with valuation policies and
procedures adopted by the Board; assessing and managing material risks
associated with fair valuation determinations; selecting, applying and testing
fair valuation methodologies; and overseeing and evaluating pricing services
used by a Fund. The Valuation Designee reports its fair valuation determinations
and related valuation information to the Board. The Valuation Committee meets on
an as-needed basis and generally meets quarterly to review and evaluate the
effectiveness of the valuation policies and procedures in accordance with the
requirements of Rule 2a-5.
Investments in money
market funds and short-term securities held by a Fund having a remaining
maturity of sixty days or less are valued at amortized cost, which approximates
market value.
Equity securities,
including traded rights, warrants and option contracts for which valuation
information is readily available, are valued at the last quoted sales price or
official closing price on the primary market or exchange on which they are
traded as reported by an independent pricing service. In the absence of quoted
sales, such securities are valued at the bid price or, in the absence of a
recent bid price, the equivalent as obtained from one or more of the major
market makers for the securities to be valued.
Foreign securities
are usually valued on the basis of the most recent closing price of the foreign
markets on which such securities principally trade. Securities in which a Fund
may invest may be traded in foreign markets that close before the close of the
NYSE. Developments that occur between the close of the foreign markets and the
close of the NYSE may result in adjustments to the closing foreign prices to
reflect what the Valuation Designee, with assistance from the Valuation
Committee, believes to be the fair value of these securities as of the close of
the NYSE. The Valuation Designee may also fair value securities in other
situations, for example, when a particular foreign market is closed but a Fund
is open.
Securities for which
market quotations are not readily available are valued at fair value, as
determined in good faith pursuant to policies and procedures approved by the
Board.
The Valuation
Designee’s valuation techniques are generally consistent with either the market
or the income approach to fair value. The market approach considers prices and
other relevant information generated by market transactions involving identical
or comparable assets to measure fair value. The income approach converts future
amounts to a current, or discounted, single amount. These fair value
measurements are determined on the basis of the value indicated by current
market expectations about such future events. Because of the inherent
uncertainty and often limited markets for restricted securities, the valuations
assigned
Prospectus 34/54
to such securities by
the Valuation Designee may significantly differ from the valuations that would
have been assigned by the Valuation Designee had there been an active market for
such securities.
Purchasing
and Redeeming Fund Shares
Shares of a Fund can
be purchased or redeemed on any day the NYSE is open. Orders will be processed
at the NAV next calculated after the purchase or redemption request is received
in good order by the Transfer Agent or other agent appointed by the Distributor.
Ordinarily, the Fund will issue a redemption check within seven days after the
Transfer Agent receives a redemption request in good order. “In good order”
means that all necessary information and documentation related to the redemption
request have been provided to the Transfer Agent or authorized intermediary, if
applicable. If your request is not in good order, the Transfer Agent may require
additional documentation in order to redeem your shares. However, when you buy
shares with a check, via Automatic Investment Plan, or online, the Fund will not
issue payment for redemption requests against those funds until the purchase
proceeds are available, which may take up to 15 days. Payment may be postponed
in cases where the SEC declares an emergency or normal trading is halted. The
Transfer Agent or the Fund may reject any purchase order. Share certificates are
not issued for shares of the Fund.
Under normal
circumstances, each Fund expects to meet redemption requests by using cash or
cash equivalents in its portfolio and/or by selling portfolio assets to generate
cash. As discussed in each Fund’s SAI, a Fund also may pay redemption proceeds
using cash obtained through borrowing arrangements that may be available from
time to time.
Each Fund may pay all
or a portion of your redemption proceeds in securities rather than cash
(i.e., “redeem in kind”)
if, for example, the redemption request is during stressed market conditions or
the Fund believes that a cash redemption may have a substantial impact on the
Fund and its remaining shareholders. Securities will generally be selected on a
pro rata basis pursuant to the Fund’s procedures. A shareholder who receives a
redemption in kind bears the market risk of the securities until they are
converted into cash, in transactions conducted at the shareholder’s
expense.
Legislation passed by
Congress in 2008 requires mutual funds to report both to the shareholder and to
the Internal Revenue Service the “cost basis” of shares acquired on or after
January 1, 2012 that are subsequently redeemed or exchanged. This reporting is
not required for Fund shares held in retirement or other tax-advantaged accounts
or for certain other types of entities (such as C corporations).
If you are a direct
shareholder, you may request your cost basis reported on Form 1099-B to be
calculated using any one of the alternative methods offered by the Fund. Please
contact the Fund to make, revoke, or change your election. If you do not
affirmatively elect a cost basis method then the Fund will use the average cost
basis method. If you hold Fund shares through a broker, please contact that
broker with respect to the reporting of cost basis and available elections for
your account.
Please note that you
will continue to be responsible for calculating and reporting gains and losses
on redemptions of shares purchased prior to January 1, 2012. You are encouraged
to consult your tax advisor regarding the application of the cost basis
reporting rules and, in particular, which cost basis calculation method is best
for you.
Dividends
and Distributions and Tax Consequences
All Funds declare and
pay dividends and distributions annually, and expect these payments to
shareholders will consist primarily of capital gains, which may be taxable to
you at different rates depending upon how long the Fund held the securities that
it sold to create the gains (rather than the length of time you have held shares
of the Fund), and that they will also include net investment income, which is
taxable as ordinary income. Certain dividend income received by a Fund and paid
to you may be subject to a maximum tax rate of 20% (qualified dividends); other
income paid to you, such as non-qualifying dividend income or interest earned on
debt securities held by the Fund, will continue to be taxed at the higher
ordinary income rates. Dividends and distributions may differ among classes of
shares of a Fund. Unless your investment is in a tax-deferred account, you may
want to avoid buying shares shortly before a Fund pays a dividend. If you buy
shares when a Fund has declared, but not yet distributed ordinary income or
capital gains, you will pay full price for the shares and then receive a portion
of the price back in the form of a taxable dividend. In addition, it may be the
case that a significant amount of the securities held by a Fund are held at
values above their purchase price. In such cases, the sale of such securities in
a Fund, which may be from a portfolio management decision or to meet Fund
shareholder redemptions, will generate either long-term or short-term capital
gains, which will be distributed and taxable to you as described above if your
investment is not in a tax-deferred account. Therefore, a substantial tax
liability may arise for a shareholder who invests in a Fund when such conditions
exist. The amount of long-term and short-term capital gains are disclosed in a
Fund’s most recent annual and semi-annual report. Before investing you may want
to consult your tax advisor.
Unless you choose to
receive cash payments by checking the box on your account application, any
dividends and distributions will be reinvested automatically at the NAV on their
payment dates. No additional sales charge will apply to automatically reinvested
dividends and distributions. If you have chosen cash payments and a payment is
returned to the Fund as undeliverable, that payment will be reinvested upon
receipt by the Transfer Agent in Fund shares at the next NAV. All subsequent
payments will be reinvested until you reinstate your cash election and provide a
valid mailing address.
Prospectus 35/54
Regardless of whether
you choose to take distributions in cash or reinvest them in a Fund, they may be
subject to federal and state taxes. An exchange of Fund shares for shares of
another fund will be treated as a sale of the Fund shares, and any gain on the
transaction may be subject to federal and state taxes. Because everyone’s tax
situation is unique, see a tax advisor about federal, state and local tax
consequences of investing in a Fund.
Classes
of Fund Shares
Alger Dynamic
Opportunities Fund offers three classes of shares (Class A, C and Z Shares).
Each of Alger Responsible Investing Fund and Alger Emerging Markets Fund offers
four classes of shares (Class A, C, I and Z Shares). Alger Spectra Fund offers
five classes of shares (Class A, C, I, Y and Z Shares). Class I, Y and Z Shares
are offered in a separate prospectus. Class A and C Shares are offered in this
Prospectus.
The table below
summarizes key features of each of the share classes of the Funds offered in
this prospectus. The sections below the table cover additional details of each
share class, including sales charges, waivers of sales charges, sales charge
discounts, and waivers of investment minimums.
|
|
Class
A |
Class
C |
|
Availability |
Generally
available for purchase directly from the Fund
via:
-
Mail: Alger Family of Funds,
c/o
UMB Fund Services, Inc.,
P.O.
Box 2175, Milwaukee, WI
53201-2175
-
Online: www.alger.com
-
Telephone: 1 (800) 992-3863
Generally
available through financial intermediaries. |
Generally
available through financial intermediaries and
group
retirement plan recordkeeping platforms |
|
Minimum
Investment |
Initial
Investments
Regular
Account: $1,000
Retirement
Accounts (including IRAs): $500
Automatic
Investment: $500
Asset-based
Fee Program Accounts: $250
Subsequent
Investments
$50
for all accounts |
Initial
Investments
Regular
Account: $1,000
Retirement
Accounts (including IRAs): $500
Automatic
Investment: $500
Asset-based
Fee Program Accounts: $250
Subsequent
Investments
$50
for all accounts |
|
Maximum
Investment |
None |
$999,999 |
|
Initial
Sales Charge? |
Yes.
Payable at time of purchase. Lower sales charges
are
available for larger investments. |
No.
Entire purchase price is invested in shares of the
Fund. |
|
Deferred
Sales Charge? |
No.
(May be charged for purchases of $1 million or
more
that are redeemed within 12 months). |
Yes.
Payable if you redeem within one year of
purchase. |
|
Distribution
and/or Service
(12b-1)
Fees? |
0.25% |
1.00% |
|
Redemption
Fees? |
No. |
No. |
|
Conversion
to Class A
Shares? |
N/A |
Yes,
automatically on the fifth business day of the
month
following the eighth anniversary of the purchase
date.
It is a financial intermediary’s responsibility to
ensure
that the shareholder is credited with the proper
holding
period. Certain financial intermediaries who
hold
Class C shares in an omnibus account for
shareholders
of group retirement plans may not track
participant
level aging of shares and therefore these
shares
may not be eligible for an automatic conversion.
Shareholders
who purchased Class C shares through
certain
financial intermediaries or group retirement plan
recordkeeping
platforms or whose shares are held in
an
omnibus account may not be eligible to participate
in
such Class C share
conversions. |
Prospectus 36/54
Investors with
non-U.S. addresses and intermediary controlled accounts designated as foreign
accounts (“Restricted Accounts”) are restricted from investing in the Funds.
Existing Restricted Accounts may remain in the Funds, but are prohibited from
making further investments. U.S. Armed Forces and Diplomatic post office
addresses abroad are treated as U.S. addresses and can invest in the Funds.
Addresses in U.S. territories, such as Guam and Puerto Rico, are also treated as
U.S. addresses and can invest in the Funds.
Sales
Charges
The availability of
certain sales charge waivers and reductions will depend on whether you purchase
your shares directly from a Fund or through a financial intermediary. Financial
intermediaries may have different policies and procedures regarding the
availability of front-end sales charge waivers or deferred sales charge waivers,
which are discussed below. In all instances, it is your responsibility to notify
the Fund or your financial intermediary at the time of purchase of any
relationship or other facts qualifying you for sales charge waivers or
reductions. For
waivers and discounts not available through a particular financial intermediary,
shareholders will have to purchase Fund shares directly from a Fund or through
another financial intermediary to receive these waivers or reductions. Please
see “Appendix A – Waivers and Discounts Available from Intermediaries” at the
end of this Prospectus.
Class
A Shares
When you buy Class A
Shares you may pay the following sales charge:
|
Purchase
Amount |
Sales
Charge
as
a % of
Offering
Price |
Sales
Charge
as
a % of Net
Asset
Value |
Dealer
Allowance
as a %
of
Offering Price |
|
Less
than $25,000 |
5.25% |
5.54% |
5.00% |
|
$25,000
- $49,999 |
4.50% |
4.71% |
4.25% |
|
$50,000
- $99,999 |
4.00% |
4.17% |
3.75% |
|
$100,000
- $249,999 |
3.50% |
3.63% |
3.25% |
|
$250,000
- $499,999 |
2.50% |
2.56% |
2.25% |
|
$500,000
- $749,999 |
2.00% |
2.04% |
1.75% |
|
$750,000
- $999,999 |
1.50% |
1.52% |
1.25% |
|
$1,000,000
and over |
* |
* |
1.00% |
*
Purchases of Class A
Shares which, when combined with current holdings of Class A Shares of the Alger
Family of Funds offered with a sales charge, equal or exceed $1,000,000 in the
aggregate may be made at net asset value without any initial sales charge, but
may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% on
redemptions made within 12 months of purchase. The CDSC is waived if the
shareholder’s financial intermediary notified the Distributor before the
shareholder purchased the Class A Shares that the financial intermediary would
waive the 1.00% Dealer Allowance noted in the chart above.
In calculating a
CDSC, the Fund assumes first, that the redemption is of shares, if any, that are
not subject to any CDSC.
Distribution
and/or Service (12b-1) Fees
Each Fund offering
Class A Shares has adopted a plan pursuant to Rule 12b-1 under the 1940 Act that
allows Class A Shares to pay a 0.25% fee out of its assets on an ongoing basis
for distribution and shareholder services provided to Class A shareholders. The
Distributor may pay some or all of this fee to a broker-dealer, investment
adviser or other financial institution (“Financial Intermediary”) that also
provides distribution, servicing and/or maintenance of shareholder accounts.
These fees will increase the cost of your investment in Class A Shares and may
cost you more than paying other types of sales charges.
Maximum
Investment Amount
No maximum investment
limit for Class A shares.
Minimum
Investment Amount
For the minimum
investment amount for Class A shares, see table below.
|
|
Initial
Investment |
Subsequent
Investment |
|
Regular
account |
$1,000 |
$50 |
|
Retirement
Accounts (including IRAs) |
500 |
50 |
|
Automatic
Investment |
500 |
50 |
|
Asset-based
Fee Program Accounts |
250 |
50 |
Prospectus 37/54
Minimums may be
waived in certain circumstances. See “Additional Information about Minimum
Initial Investments” in the Prospectus.
Class
C Shares
Class C Shares are
only offered to investors through certain Financial Intermediaries and group
retirement plan recordkeeping platforms. See “Investment Instructions – Special
Instructions for Class C Shares.”
There is no sales
charge when you buy Class C Shares. When you redeem Class C Shares, you may pay
the following CDSC:
|
Years
Shares Were Held |
Contingent
Deferred
Sales
Charge
(CDSC) |
|
Less
than one |
1% |
|
One
or more |
0% |
In calculating a
CDSC, the Fund assumes, first, that the redemption is of shares, if any, that
are not subject to any CDSC. The Fund’s Distributor collects and retains any
applicable CDSC paid. Under certain circumstances, the CDSC may be waived. These
circumstances are discussed below and in the SAI.
Class
C Share Conversion Feature
On the fifth business
day of the month following the eighth anniversary of the purchase date of a
shareholder’s Class C Shares, such Class C Shares will automatically convert to
Class A Shares without the imposition of any sales load, fee or other charge. At
conversion, a proportionate amount of shares representing reinvested dividends
and distributions will also be converted into Class A Shares.
Shareholders who
purchase Class C Shares through certain Financial Intermediaries or group
retirement plan recordkeeping platforms or whose shares are held in an omnibus
account may not be eligible to participate in such Class C Share conversion or
may have their Class C Shares converted on a different schedule. Certain
financial intermediaries who hold Class C Shares in an omnibus account for
shareholders of group retirement plans may not track participant level aging of
shares and therefore those shares also may not be eligible for an automatic
conversion. Contact your Financial Intermediary or plan recordkeeper for
eligibility information. See Appendix A – Waivers and Discounts Available from
Intermediaries in this prospectus for further details regarding Class C Share
conversion schedules available from certain intermediaries.
Distribution
and/or Service (12b-1) Fees
Each Fund offering
Class C Shares has adopted a plan pursuant to Rule 12b-1 under the 1940 Act that
allows Class C Shares to pay a 1.00% fee out of its assets on an ongoing basis
for distribution and shareholder services provided to Class C shareholders. The
Distributor may pay some or all of this fee to a Financial Intermediary that
also provides servicing and/or maintenance of shareholder accounts. These fees
will increase the cost of your investment in Class C Shares and may cost you
more than paying other types of sales charges. At the time of the initial sale
of Class C Shares, the Distributor generally pays a Financial Intermediary from
its own resources an upfront commission of 1% of the amount invested. This
amount represents a prepayment of the first year’s distribution and shareholder
servicing fees. In the first year following the initial sale, a Fund pays the
distribution and shareholder service fees to the Distributor as reimbursement
for the Distributor’s upfront commission. If you redeem your Class C Shares on
or before the first anniversary date of your purchase of your Class C Shares,
you will pay a 1% CDSC. In the first year, the payment of a CDSC may result in
the Distributor receiving amounts greater than the upfront commission paid to
the Financial Intermediary. For Class C Shares held over a year, a Fund pays the
distribution and shareholder service fees to the Distributor, who is responsible
for paying Financial Intermediaries.
Maximum
Investment Amount
The maximum
investment limit for Class C Shares is $999,999.
Minimum
Investment Amount
Prospectus 38/54
For the minimum
investment amount for Class C Shares, see table below.
|
|
Initial
Investment |
Subsequent
Investment |
|
Regular
account |
$1,000 |
$50 |
|
Retirement
Accounts (including IRAs) |
500 |
50 |
|
Automatic
Investment |
500 |
50 |
|
Asset-based
Fee Program Accounts |
250 |
50 |
Minimums may be
waived in certain circumstances. See “Additional Information about Minimum
Initial Investments” in the Prospectus.
Waivers
of Sales Charges
Different
financial intermediaries may impose different sales charges or offer different
sales charge discounts. These variations are described at the end of this
Prospectus in Appendix A – Waivers and Discounts Available from
Intermediaries.
No initial sales
charge is imposed on purchases of Class A Shares, and no CDSC is imposed on
redemptions of Class A and C Shares by:
•
employees, officers
and/or Trustees of the Distributor and its affiliates,
•
Individual Retirement
Accounts (“IRAs”), Keogh Plans and employee benefit plans for those persons,
and
•
spouses, children,
siblings and parents of those employees and trusts of which those individuals
are beneficiaries, as long as orders for the shares on behalf of those
individuals and trusts were placed by those persons;
•
accounts managed by
the Manager,
•
employees,
participants and beneficiaries of those accounts,
•
IRAs, Keogh Plans and
employee benefit plans for those employees, participants and beneficiaries,
and
•
spouses and minor
children of those employees, participants and beneficiaries as long as orders
for the shares were placed by the employees, participants and
beneficiaries;
•
employee benefit or
retirement plans or charitable accounts, including, but not limited to, IRAs,
Keogh Plans, 401(k) plans, profit-sharing pension plans, defined benefit plans,
Taft-Hartley multiemployer pension plans, 457 plans, 403(b) plans, non-qualified
deferred compensation plans, and other defined contribution plans subject to the
Employee Retirement Income Security Act of 1974, as amended, other than employee
benefit or retirement plans or charitable accounts that purchase Class A Shares
through brokerage relationships in which sales charges are customarily
imposed;
•
an investment company
registered under the 1940 Act, as amended, in connection with the combination of
the investment company with the Fund by merger, acquisition of assets or by any
other transaction;
•
registered investment
advisers for their own accounts;
•
certain registered
investment advisers, banks, trust companies and other financial institutions
(including broker-dealers) that have an agreement in place with the Distributor
(see Appendix A – Waivers and Discounts Available from Intermediaries of this
Prospectus for a list of such entities), as long as the orders for the shares
were placed on behalf of their clients;
•
certain financial
intermediaries offering self-directed investment brokerage accounts that have an
agreement in place with the Distributor (see Appendix A – Waivers and Discounts
Available from Intermediaries of this Prospectus for a list of such
entities);
•
a financial
institution as shareholder of record on behalf of:
•
investment advisers
or financial planners trading for their own accounts or the accounts of their
clients, and who charge a separate fee for their services, and
•
clients of such
investment advisers or financial planners trading for their own accounts if the
accounts are linked to the master account of such investment adviser or
financial planner on the books and records of the financial
institution;
•
a financial
institution as shareholder of record on behalf of retirement and deferred
compensation plans and trusts used to fund those plans;
Prospectus 39/54
•
registered
representatives of broker-dealers that have an agreement in place with the
Distributor, for their own accounts and their spouses, children, siblings and
parents;
•
children or spouses
of individuals who died in the terrorist attacks of September 11, 2001 made
directly through the Fund;
•
shareholders of Alger
Global Focus Fund as of January 21, 2005 purchasing Class A Shares directly from
the Fund for their existing accounts;
•
investors purchasing
Class A Shares of the Alger Family of Funds when those purchases are made
directly from the Fund (including shareholders of Class N Shares as of September
23, 2008); and
•
investors purchasing
Class A Shares directly from the Fund which, when combined with current holdings
of Class A Shares of the Alger Family of Funds offered with a sales charge,
equal or exceeds $1,000,000 in the aggregate, when such Class A Shares are
redeemed within 12 months of purchase.
Investors purchasing
Class A Shares who may be entitled to one of the foregoing waivers should
consult with their financial adviser as to their eligibility, and are required
to claim and substantiate their eligibility for the waiver at the time of
purchase. It is also the responsibility of shareholders redeeming shares
otherwise subject to a CDSC but qualifying for a waiver of the charge to assert
this status at the time of redemption. As the Distributor has no information
regarding the nature of the underlying shareholders in an omnibus account (in
which shares are held in the name of an intermediary on behalf of multiple
beneficial owners, a common form of holding shares among retirement plans and
financial intermediaries such as brokers, advisers and third-party
administrators) it cannot aid in the substantiation of any such claims for
waivers. Information regarding these procedures is available by contacting the
Fund at (800) 992-3863.
Any CDSC which
otherwise would be imposed on redemptions of shares of the Fund will be waived
with respect to (a) redemptions of shares held at the time a shareholder becomes
disabled or dies, including the shares of a shareholder who owns the shares with
his or her spouse as joint tenants with right of survivorship, provided that the
redemption is requested within one year after the death or initial determination
of disability, (b) redemptions in connection with the following retirement plan
distributions: (i) lump-sum or other distributions from a qualified corporate or
Keogh retirement plan following retirement, termination of employment, death or
disability (or in the case of a five percent owner of the employer maintaining
the plan, following attainment of age 70-1/2); (ii) required distributions from
an IRA following the attainment of age 70-1/2 or from a custodial account under
Section 403(b)(7) of the Internal Revenue Code of 1986, as amended, following
the later of retirement or attainment of age 70-1/2; and (iii) a tax-free return
of an excess contribution to an IRA, (c) systematic withdrawal payments, and (d)
redemptions by the Fund of Fund shares whose value has fallen below the minimum
initial investment amount. For purposes of the waiver described in (a) above, a
person will be deemed “disabled” if the person is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment that can be expected to result in death or to be of
long-continued and indefinite duration.
Class N shareholders
of certain funds in the Alger Family of Funds whose shares were redesignated as
Class A Shares on September 23, 2008 will not be subject to initial sales
charges in connection with additional purchases of Class A Shares of the Alger
Family of Funds. Due to operational limitations at certain financial
intermediaries, a sales charge may be assessed unless you inform the financial
intermediary at the time you make any additional purchase that you are eligible
for this waiver. Notwithstanding the foregoing, shareholders investing through
certain financial intermediaries may not be eligible to purchase shares without
imposition of an initial sales charge through such financial intermediaries if
the nature of their relationship with, and/or service received from, the
financial intermediary changes. Please consult your financial representative for
further details.
Reinvestment
Privilege Under the
Reinvestment Privilege, a shareholder who has redeemed Shares in a Fund account
may reinvest all or part of the redemption proceeds in Shares of the same Fund
in the same account without an initial sales charge and receive a credit for any
CDSC paid on the redemption, provided the reinvestment is made within 30 days
after the redemption. Reinvestment will be at the net asset value of the Fund
next determined upon receipt of the proceeds and a letter requesting that this
privilege be exercised, subject to confirmation of the shareholder’s status or
holdings, as the case may be. You will also receive a pro rata credit for any
CDSC imposed. This reinvestment privilege may be exercised only once by a
shareholder. Reinvestment will not alter any capital gains tax payable on the
redemption and a loss may not be allowed for tax purposes.
Sales
Charge Discounts
In addition to
waivers of sales charges for eligible investors, there are several ways in which
any investor in Class A Shares may be eligible for a sales charge discount.
Information on sales charge discounts is posted on each Fund’s website,
www.alger.com.
When purchasing Class
A Shares, when the dollar amount of your purchase reaches a specified level,
known as a breakpoint, you are entitled to pay a discounted initial sales
charge. For example, a purchase of up to $24,999 of Class A Shares of a Fund
would be charged an initial charge of 5.25%, while a purchase of $25,000 would
be charged an initial charge of 4.50%. There are several breakpoints, as shown
in the above sales charge table for Class A Shares. The greater the investment,
the greater the sales charge discount.
Prospectus 40/54
Letter
of Intent A sales charge
discount is also available to Class A Share investors who indicate an intent to
purchase shares in an amount aggregating $25,000 or more over a 13-month period.
A Letter of Intent (“LOI”) allows the Class A Share investor to qualify for a
breakpoint discount now without immediately investing the aggregate dollar
amount at which the breakpoint discount is offered. The investor must refer to
the LOI when placing purchase orders. For purposes of an LOI, the purchase
amount includes purchases by “any person” (which includes an individual, his or
her spouse or domestic partner and children under the age of 21, or a trustee or
other fiduciary of a single trust, estate or single fiduciary account) of shares
of all classes of the funds in the Alger Family of Funds offered with a sales
charge over the following 13 months. At the investor’s request, the 13-month
period may begin up to 90 days before the date the LOI is signed. The minimum
initial investment under the LOI is 5% of the total LOI amount. Further details
are in the SAI.
Rights
of Accumulation An investor in Class
A Shares may be eligible for a sales charge discount by reason of Rights of
Accumulation (“ROA”). With ROA, Class A Shares of a Fund may be purchased by
“any person” (as defined in the immediately preceding paragraph) at a discounted
sales charge as determined by aggregating the dollar amount of the new purchase
and the current value (at offering price) of all shares of all classes of the
funds in the Alger Family of Funds offered with a sales charge then held by such
person and applying the sales charge applicable to such aggregate, as noted in
the Class A sales charge chart above. In order to obtain such discount, the
purchaser must provide sufficient information at the time of purchase to permit
verification that the purchase qualifies for the sales charge discount. The
right of accumulation is subject to modification or discontinuance at any time
with respect to all shares purchased thereafter.
Additional
Information about Minimum Initial Investments
The Distributor, in
its sole discretion, may waive minimum initial investment requirements. Minimum
initial investment and related requirements may be modified at any time, without
prior notice.
There is no minimum
initial investment for the following categories of eligible
investors:
•
Any current employee
of the Manager, the Distributor, or their affiliates, and any of their immediate
family members who share the same address.
•
Trustees of the Funds
and Directors of Alger Associates, Inc., or its affiliates, and any of their
immediate family members who share the same address.
Investment
Instructions
Special
Instructions for Class C Shares
Class C Shares are
only offered to investors through certain financial intermediaries and group
retirement plan recordkeeping platforms. Class C Shares may not be purchased
directly from the Fund.
To
Open a New Account:
New account
applications must be received in good order. Any application received not in
good order may be rejected. Please see the “Purchasing and Redeeming Fund
Shares” section for more information.
By
Mail: Visit the Fund’s
website to download a prospectus and New Account Application at www.alger.com,
or call (800) 992-3863 to receive an application and prospectus via U.S. mail.
Make checks payable to “The Alger Funds.” The Funds do not accept cash or cash
alternatives for Fund purchases. Purchases made through ACH (Automated clearing
house) are subject to a maximum limit of $50,000. Mail your completed
application and check to the Fund’s transfer agent:
Alger Family of
Funds
c/o UMB Fund Services, Inc.
P.O. Box 2175
Milwaukee, WI 53201-2175
c/o UMB Fund Services, Inc.
P.O. Box 2175
Milwaukee, WI 53201-2175
Overnight mail is to
be sent to the Fund’s transfer agent at the following address:
Alger Family of
Funds
c/o UMB Fund Services, Inc.
235 Galena Street
Milwaukee, WI 53212
c/o UMB Fund Services, Inc.
235 Galena Street
Milwaukee, WI 53212
By
FED Wire: To open a new
account and fund it using FED Wire, complete a new account application and mail
it to the Fund’s transfer agent at the address provided above. Upon confirmation
from UMB that your account has been setup, have your bank wire funds to UMB
following the instructions below.
Prospectus 41/54
UMB Bank, N.A.
1010 Grand Blvd.
Kansas City, MO 64106
ABA: 101000695
DDA: 9872325141
1010 Grand Blvd.
Kansas City, MO 64106
ABA: 101000695
DDA: 9872325141
Please contact UMB at
(800) 992-3863 to advise of any purchases by wire.
Online: You can open a new
account online. Go to www.alger.com and follow the online instructions. Please
be sure to first read the Fund prospectus before investing.
By
Financial Intermediary: Call or visit your
broker-dealer, investment adviser, bank or other financial
institution.
To
Make Additional Investments in an Existing Account:
By
Mail:
Complete and return the Invest by Mail slip attached to your Alger Funds
Statement or include your account number, along with investment instructions
noting the Alger Fund and share class in which you wish to invest, and a check
to the addresses provided above in the “To Open A New Account” section.
Purchases made through ACH are subject to a maximum limit of
$50,000.
By
Telephone: You may purchase
shares by telephone (minimum $500, maximum $50,000). Your purchase will be
processed at the NAV next calculated after your request is received and the
funds will be transferred from your previously designated bank account to your
Fund account normally within one business day. Call (800) 992-3863 to initiate a
purchase by telephone.
By
FED Wire: Have your bank wire
funds to UMB Fund Services, Inc. in accordance with the instructions noted above
in the “To Open A New Account” section.
Online: You can purchase
additional shares in an existing Fund account. Go to www.alger.com and follow
the online instructions.
By
Financial Intermediary: Call or visit your
broker-dealer, investment adviser, bank or other financial
institution.
Automatic
Investment Plan
The Alger Family of
Funds’ Automatic Investment Plan allows you to make automatic purchases on the
day of the month that you select. The minimum automatic investment is $50 with a
minimum initial investment of $500.
You can sign up for
the Automatic Investment Plan when you first establish your account by selecting
the option on the new account form or, to add this service to your existing
account, complete and return the Additional Services Form available at
www.alger.com or call (800) 992-3863 to receive the form by mail.
To
Exchange Shares:
By
Telephone or Online: To complete an
exchange, go to www.alger.com, login to access your account, and follow the
online instructions, or call (800) 992-3863 to exchange shares (unless you have
refused the telephone exchange privilege on your New Account Application). You
can exchange Class A, B or C Shares of a Fund for the same class of shares of
another fund in the Alger Family of Funds, subject to certain restrictions.
Shares of one class may not be exchanged for shares of another class, except
that in limited circumstances certain accounts will be permitted an exchange
from one class to another, provided that you meet applicable eligibility and
investment minimum requirements. An exchange between different funds in the
Alger Family of Funds may be a taxable event.
To
Redeem Shares:
By
Mail:
Send a letter of instruction to Alger Family of Funds, c/o UMB Fund Services,
Inc. that includes:
•
account
number
•
Fund name and Share
class
•
number of shares or
dollar amount of redemption
•
where to send the
proceeds
•
signature(s) of
registered owner(s)
•
a Medallion signature
guarantee is required
•
if your redemption is
for more than $50,000; or
Prospectus 42/54
•
if you want the check
to be made payable to someone other than the registered owners we have on file;
or
•
if you have changed
your address on file within the past 30 days; or
•
if you want to add
bank information to your existing account; or
•
if you want to change
bank information on your existing account; or
•
to change registered
account holders; or
•
to request a wire
transfer of redemption proceeds to a bank account other than the bank account of
record; or
•
to request redemption
proceeds to be mailed to an address other than the address of
record.
Medallion
Signature Guarantee is a guarantee by a financial institution that your
signature is authentic. The financial institution accepts liability for any
forgery or fraud if the signature it guarantees proves to be counterfeit. It is
an ideal means to protect investors and their assets. A notarization by a Notary
Public is not an acceptable substitute.
By
Telephone: Call (800) 992-3863
to sell shares (unless you refuse this service on your New Account Application).
The Fund will send you a check for any amount. You cannot request a check if you
have changed your address on file within the past 30 days. For amounts over
$5,000, you can choose to receive a wire to a bank account you previously
designated on the records of the Fund.
If you request that
your redemption proceeds be wired to your bank account, there is generally a fee
per wire sent to a bank account that you had previously designated on the Fund’s
records, and generally a fee per wire sent to a bank account not previously
designated on the Fund’s records. Fed wire requests to a bank account not
previously designated on the Fund’s records must be made in writing, and require
a Medallion signature guarantee.
Online: You can redeem
shares from an existing Fund account. Go to www.alger.com and follow the online
instructions.
By
Financial Intermediary: Call or visit your
broker-dealer, investment adviser, bank or other financial
institution.
Automatic
Withdrawal Plan
The Systematic
Withdrawal Plan allows you to receive regular monthly, quarterly or annual
payments. Your account value must be at least $10,000 at the time you begin
participation in the Plan, and the payments must be for $50 or more.
The maximum monthly
withdrawal is 1% of the account value in the Fund at the time you begin
participation in the Plan.
Limitations
on Excessive Trading
Each of the Funds
except for the Alger Emerging Markets Fund invests predominantly in U.S.-traded,
highly liquid securities for which current New York Stock Exchange closing
prices are readily available on a daily basis. Each Fund will determine a fair
value for portfolio securities for which current market closing prices are not
readily available or otherwise require fair valuation in the circumstances
discussed under “Net Asset Value.” As a result, the Manager believes that there
is little incentive for investors to engage in frequent and/or short-term
trading (often referred to as market-timing) to benefit from “stale” pricing.
Nonetheless, the presence of small capitalization and medium capitalization
securities and/or foreign securities in a Fund and other circumstances may
invite frequent and/or short-term trading by Fund shareholders. Active trading
may be attempted and may, if carried out on a large scale, impose burdens on a
Fund’s portfolio managers, interfere with the efficient management of a Fund,
increase a Fund's transaction costs, administrative costs or tax liability or
otherwise be detrimental to the interests of a Fund and its other shareholders.
The Funds therefore discourage market timing, and to the extent possible monitor
for market timing patterns.
The Board has adopted
policies and procedures that seek to discourage frequent and/or short-term
trading of Fund shares. These policies and procedures allow, among other things,
a Fund to reject purchase or exchange orders, on a temporary or permanent basis,
or redeem all Fund shares from investors that the Manager believes, in its
reasonable business judgment, are engaging in frequent and/or short-term trading
in Fund shares or shares of other funds sponsored by the Manager that is
detrimental to the Fund involved. If a Fund rejects your purchase or exchange
order, you will not be able to execute that transaction, and neither the Fund
nor the Manager will be responsible for any losses you may suffer as a
result.
In an effort to
detect significant market timing, the Manager, in accordance with policies and
procedures approved by the Board, seeks to, among other things, monitor overall
subscription, redemption and exchange activity, and isolate significant daily
activity to determine if there appears to be market timing activity in an
individual portfolio.
Under these policies
and procedures, each Fund generally prohibits more than two purchases and sales
or exchanges of its shares within a 90-day calendar period. The following
transactions are excluded when making such a determination: (i) transactions
Prospectus 43/54
associated with
systematic investment and withdrawal plans; (ii) transactions through
firm-sponsored, discretionary asset allocation or wrap programs; and (iii)
transactions subject to the trading policy of an intermediary that is unable to
implement the Fund’s policy.
If, based on a Fund’s
policies and procedures, the Manager determines that a shareholder is engaged
in, or has engaged in, market timing or excessive trading, the Manager, on
behalf of the Fund, may place a temporary or permanent block on all further
purchases or exchanges of Fund shares. Multiple accounts under common
ownership or control may be considered one account for the purpose of
determining a pattern of excessive trading, short-term market timing or other
abusive trading practices. A Fund will also utilize fair value pricing in
an effort to reduce arbitrage opportunities available to short-term
traders.
Due to the complexity
involved in identifying excessive trading and market timing activity, there can
be no guarantee that a Fund will be able to identify and restrict such activity
in all cases. Additionally, it is more difficult for a Fund to monitor the
trading activity of beneficial owners of Fund shares who hold those shares
through third-party 401(k) and other group retirement plans and other omnibus
arrangements maintained by broker/dealers and other intermediaries.
Omnibus account arrangements permit multiple investors to aggregate their
respective share ownership positions and purchase, redeem and exchange Fund
shares in a single account.
As noted above, in
certain circumstances a Fund may be subject to frequent trading restrictions of
intermediaries that differ from the Fund’s policies and procedures. Such
frequent trading restrictions of intermediaries may be more or less restrictive
than a Fund’s policies and procedures. Since such intermediaries execute or
administer transactions with many fund families, it may be impractical for them
to enforce a particular fund’s frequent trading or exchange policy. The Funds do
not monitor intermediaries’ frequent trading restrictions. A Fund reserves
the right to prohibit any purchase, sale or exchange of its shares that the Fund
believes may be disruptive to the Fund or its long-term investors.
Disclosure
of Portfolio Holdings
For a discussion of
each Fund’s policies and procedures regarding the selective disclosure of its
portfolio holdings, please see the SAI. Each Fund makes publicly available its
month-end top 10 holdings with a 10 day lag and its month-end full portfolio
with a 60 day lag on its website www.alger.com.
Other
Information
In
Kind Redemptions. A Fund may redeem
some of your shares “in kind,” which means that some of the proceeds will be
paid with securities the Fund owns instead of cash. The Fund has elected to be
governed by Rule 18f-1 under the 1940 Act, pursuant to which the Fund is
obligated to redeem shares solely in cash up to the lesser of $250,000 or 1% of
the net assets of the Fund during any 90-day period for any one shareholder. If
you receive securities, you should expect to incur brokerage or other charges in
converting the securities to cash. If a Fund pays large redemptions in cash,
these transactions may increase the Fund's transaction costs and detract from
the Fund's performance. Large purchases pose similar risks.
Shares may be worth
more or less when you redeem them than they were at the time you bought them.
For tax purposes, this means that when you redeem them you may realize a short-
or long-term capital gain or loss, depending upon how long you have held the
shares.
If you are a
participant in a retirement plan, such as a 401(k) plan, and you purchase shares
in a Fund through an administrator or trustee (“Plan Administrator”) that
maintains a master or “omnibus” account with one or more funds for trading on
behalf of retirement plans and their participants, the Plan Administrator may
apply purchase and exchange limitations which are different than the limitations
discussed herein. These limitations may be more or less restrictive than the
limitations imposed by the Funds. Consult with your Plan Administrator to
determine what purchase and exchange limitations may be applicable to your
transactions in the Funds through your retirement plan.
Each Fund and the
Transfer Agent have reasonable procedures in place to determine that
instructions submitted by telephone are genuine. They include requesting
personal identification and recording calls. If the Fund and Transfer Agent
follow these procedures, they are not liable for acting in good faith on
telephone instructions.
Other
Payments by the Funds. Certain Financial
Intermediaries perform networking, sub-transfer agency, sub-accounting,
recordkeeping and/or administrative services for their clients that would
otherwise be performed by the transfer agent, UMB Fund Services, Inc.
(the “Transfer Agent”). In addition to fees that the Funds may pay to a
Financial Intermediary for distribution and/or shareholder servicing (12b-1),
and fees the Funds pay to the Transfer Agent, the Distributor, on behalf of a
Fund, may enter into agreements with Financial Intermediaries pursuant to which
a Fund will pay a Financial Intermediary for such services. These payments are
generally based on either (1) a percentage of the average daily net assets of
Fund shareholders serviced by a Financial Intermediary or (2) a fixed dollar
amount for each account serviced by a Financial Intermediary. The aggregate
amount of these payments may be substantial.
Prospectus 44/54
The Distributor may
pay partnership and/or sponsorship fees to support seminars, conferences, and
other programs designed to educate intermediaries about a Fund and may cover the
expenses associated with attendance at such meetings, including travel costs.
The Distributor also may pay fees related to obtaining data regarding Financial
Intermediary or financial advisor activities to assist the Distributor with
sales reporting, business intelligence, and training and education
opportunities. These payments and activities are intended to provide an
incentive to Financial Intermediaries to sell a Fund by educating them about a
Fund and helping defray the costs associated with offering a Fund. These
payments may create a conflict of interest by influencing the Financial
Intermediary to recommend a Fund over another investment. Ask your salesperson
or visit your Financial Intermediary’s website for more information. The amount
of any payments described by this paragraph is determined by the Manager or the
Distributor, and all such amounts are paid out of their legitimate profits, and
not paid by you or a Fund. As a result, the total expense ratio of a Fund will
not be affected by any such payments.
Additional
Compensation. From time to time
the Distributor, at its expense from its legitimate profits, may compensate
Financial Intermediaries who are instrumental in effecting investments by their
clients or customers in a Fund, in an amount up to 1% of the value of those
investments. The Distributor may also from time to time, at its expense from its
own resources, make payments to Financial Intermediaries that provide
shareholder servicing, or transaction processing, with such payments structured
as a percentage of gross sales, a percentage of net assets, and/or as a fixed
dollar amount (the latter as a per account fee or as reimbursement for
transactions processing and transmission charges). The Distributor determines
whether to make any additional cash payments and the amount of any such payments
in response to requests from Financial Intermediaries, based on factors the
Distributor deems relevant. Factors considered by the Distributor generally
include the Financial Intermediary’s reputation, ability to attract and retain
assets for the Fund, expertise in distributing a particular class of shares of
the Fund, entry into target markets, and/or quality of service. In addition, the
Distributor may make payments to dealer firms in the form of payments for
marketing support, seminar support, training meetings, or comparable expenses in
the discretion of the Distributor. Please contact your Financial Intermediary
for details about revenue sharing payments it may receive. Any payments
described above will not change the price paid by investors for the purchase of
shares of a Fund or the amount of proceeds received by a Fund on the sale of
shares.
Redemptions
by the Funds. If your account,
excluding asset-based fee program accounts and accounts held with certain
intermediaries, falls below the minimum initial investment amount of the share
class in which you are invested, a Fund may redeem all the Fund shares within
your account after giving you 60 days’ prior written notice. You may avoid
having your account redeemed during the notice period by investing additional
amounts up to the minimum initial investment amount.
The Funds and their
agents reserve the right at any time to reject or cancel all or any part of any
purchase or exchange order and to redeem all Fund shares if it suspects the
shareholder is engaged in, or has engaged in, abusive trading practices and/or
violations of any applicable securities laws. When an exchange request in
respect of Fund shares is rejected, such shares may be redeemed from the Fund on
request of the shareholder. In addition, the Fund reserves the right to modify
any terms or conditions of purchase of shares of the Fund or suspend, change or
withdraw all or any part of the offering made by this prospectus. If the Fund
rejects your purchase or exchange order, you may not be able to execute that
transaction, and the Funds and their agents will not be responsible for any
losses you may suffer as a result.
Lost
Shareholders, Inactive Accounts and Unclaimed Property. It is important that
each Fund maintain a correct address for each shareholder. An incorrect address
may cause a shareholder’s account statements and other mailings to be returned
to a Fund. Based upon statutory requirements for returned mail, the Fund will
attempt to locate the shareholder or rightful owner of the account. If the Fund
is unable to locate the shareholder, then it will determine whether the
shareholder’s account would legally be considered abandoned. Your mutual fund
account may be transferred to the state government of your state of residence if
no shareholder initiated activity occurs within your account during the
“inactivity period” specified in your state’s abandoned property laws. Each Fund
is legally obligated to escheat (or transfer) abandoned property to the
appropriate state’s unclaimed property administrator in accordance with
statutory requirements. The shareholder’s last known address of record
determines which state has jurisdiction. If you hold your account directly at
the Transfer Agent, please proactively contact the Transfer Agent toll-free at
(800) 992-3863 at least annually to ensure your account remains in active
status. You may also update your contact information through your Alger
access account online at www.alger.com.
If
you are a resident of the state of Texas, you may designate a representative to
receive notifications that, due to inactivity, your mutual fund account assets
may be delivered to the Texas Comptroller. Please contact the Transfer Agent if
you wish to complete a Texas Designation of Representative form.
Householding. To reduce expenses,
only one copy of most financial reports and prospectuses may be mailed to
households, even if more than one person in a household holds shares of a Fund.
Call an Alger Funds Representative at (800) 992-3863 if you need additional
copies of financial reports or prospectuses, or download them at www.alger.com.
If you do not want the mailing of these documents to be combined with those for
other members of your household, contact The Alger Funds in writing at Alger
Family of Funds, c/o UMB Fund Services, Inc., P.O. Box 2175, Milwaukee, WI
53212-2175.
Prospectus 45/54
Hypothetical
Investment and Expense Information
Hypothetical
investment and expense information, which is not required to be included in this
Prospectus by the SEC, is presented in the chart below. This information is
intended to reflect the annual and cumulative effect of a Fund’s expenses,
including advisory fees and other Fund costs, on each Fund’s total return based
on NAV over a 10-year period. The example assumes the following:
•
You invest $10,000 in
the Fund and hold it for the entire 10-year period;
•
Your investment has a
5% return before expenses each year; and
•
The maximum initial
sales charge is applied.
There is no assurance
that the annual expense ratio will be the expense ratio for the Fund
classes for any of the years shown. To the extent that the Manager and any
of its affiliates alter any fee waivers and/or expense reimbursements pursuant
to a voluntary or contractual arrangement, your actual expenses may be higher or
lower. This is only a hypothetical presentation made to illustrate what expenses
and returns would be under the above scenarios. Your actual expenses and returns
are likely to differ (higher or lower) from those shown below.
Alger
Spectra Fund
|
Class
A |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
1.48% |
1.48% |
1.48% |
1.48% |
1.48% |
1.48% |
1.48% |
1.48% |
1.48% |
1.48% |
|
Cumulative
Gross Return |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Net Return |
-1.73% |
1.73% |
5.31% |
9.02% |
12.85% |
16.83% |
20.94% |
25.20% |
29.60% |
34.17% |
|
End
Investment Balance |
$9,809 |
$10,154 |
$10,511 |
$10,881 |
$11,264 |
$11,661 |
$12,071 |
$12,496 |
$12,936 |
$13,391 |
|
Annual
Expense |
$668 |
$148 |
$153 |
$158 |
$164 |
$170 |
$176 |
$182 |
$188 |
$195 |
|
Class
C |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
2.25% |
2.25% |
2.25% |
2.25% |
2.25% |
2.25% |
2.25% |
2.25% |
2.25% |
2.25% |
|
Cumulative
Gross Return |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Net Return |
2.75% |
5.58% |
8.48% |
11.46% |
14.53% |
17.68% |
20.91% |
24.24% |
27.65% |
31.17% |
|
End
Investment Balance |
$10,275 |
$10,558 |
$10,848 |
$11,146 |
$11,453 |
$11,768 |
$12,091 |
$12,424 |
$12,765 |
$13,117 |
|
Annual
Expense |
$228 |
$234 |
$241 |
$247 |
$254 |
$261 |
$268 |
$276 |
$283 |
$291 |
Alger
Responsible Investing Fund
|
Class
A |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
1.36% |
1.36% |
1.36% |
1.36% |
1.36% |
1.36% |
1.36% |
1.36% |
1.36% |
1.36% |
|
Cumulative
Gross Return |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Net Return |
-1.61% |
1.97% |
5.68% |
9.53% |
13.52% |
17.65% |
21.93% |
26.37% |
30.97% |
35.74% |
|
End
Investment Balance |
$9,820 |
$10,177 |
$10,548 |
$10,932 |
$11,330 |
$11,742 |
$12,169 |
$12,612 |
$13,072 |
$13,547 |
|
Annual
Expense |
$656 |
$136 |
$141 |
$146 |
$151 |
$157 |
$163 |
$169 |
$175 |
$181 |
|
Class
C |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
2.09% |
2.09% |
2.09% |
2.09% |
2.09% |
2.09% |
2.09% |
2.09% |
2.09% |
2.09% |
|
Cumulative
Gross Return |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Net Return |
2.91% |
5.90% |
8.99% |
12.16% |
15.42% |
18.78% |
22.24% |
25.79% |
29.45% |
33.22% |
|
End
Investment Balance |
$10,291 |
$10,590 |
$10,899 |
$11,216 |
$11,542 |
$11,878 |
$12,224 |
$12,579 |
$12,945 |
$13,322 |
|
Annual
Expense |
$ |