Prospectus
May 1,
2024
|
|
Class |
Ticker
Symbol |
|
Alger
Capital Appreciation Portfolio |
I-2 |
ALVOX |
|
Alger
Large Cap Growth Portfolio |
I-2 |
AAGOX |
|
Alger
Mid Cap Growth Portfolio |
I-2 |
AMGOX |
|
Alger
Small Cap Growth Portfolio |
I-2 |
AASOX |
|
Alger
Growth & Income Portfolio |
I-2 |
AIGOX |
|
Alger
Balanced Portfolio |
I-2 |
ABLOX |
|
A
pooled funding vehicle for: |
•qualified
pension plans |
|
•qualified
retirement plans | |
|
•variable
annuity contracts | |
|
•variable
life insurance policies |
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.
Table of Contents
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Back
Cover:For
Information | |||
Prospectus 1/47
Summary
Sections
(fees paid directly from your investment)
|
|
Class
I-2 |
|
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
I-2 |
|
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
I-2 |
$ |
$ |
$ |
$ |
Prospectus 2/47
An investment in the
Portfolio involves risks. The Portfolio’s share
price may go down, which means you could lose money.
An investment in the
Portfolio is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. The following is a
summary description of principal risks involved in investing in the Portfolio.
Prospectus 3/47
|
|
|
|
|
|
|
Prospectus 4/47
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
I-2 |
|
|
|
|
|
Russell
1000 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
Portfolio |
|
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 |
As the Portfolio 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, the level of Portfolio 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 Portfolio. 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 Shares
Because the Portfolio
is an investment vehicle for variable annuity contracts and variable life
insurance policies offered by the separate accounts of life insurance companies,
as well as qualified pension or retirement plans, an individual cannot invest in
the Portfolio directly, but may do so only through one of these sources. The
Portfolio shares are held in the names of the separate accounts and plans. The
minimum initial investment for the separate accounts and plans is generally
$500,000.
Tax
Information
If you have invested
through the separate account of a life insurance company or through a qualified
pension or retirement plan, please consult the Prospectus or other information
provided to you by your participating life insurance company or qualified
pension or retirement plan regarding the federal income taxation of your policy
or plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Portfolio through a broker-dealer or other financial intermediary (such as a
bank or insurance company), the Portfolio and/or the Manager or the Portfolio’s
distributor may pay the intermediary for the sale of Portfolio shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Portfolio over another investment. Ask your financial professional
or visit your financial intermediary’s website for more information.
Prospectus 5/47
(fees paid directly from your investment)
|
|
Class
I-2 |
|
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
I-2 |
|
Advisory
Fees* |
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
Other
Expenses |
|
|
Acquired
Fund Fees and Expenses** |
|
|
Total
Annual Fund Operating Expenses** |
|
|
Fee
Waiver*** |
( |
|
Total
Annual Fund Operating Expenses After Fee Waiver |
|
*
**
***
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
I-2 |
$ |
$ |
$ |
$ |
Prospectus 6/47
An investment in the
Portfolio involves risks. The Portfolio’s share
price may go down, which means you could lose money.
An investment in the
Portfolio is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. The following is a
summary description of principal risks involved in investing in the Portfolio.
Prospectus 7/47
Prospectus 8/47
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
I-2 |
|
|
|
|
|
Russell
1000 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
Portfolio |
|
Fred
Alger Management, LLC |
Dan
C. Chung, CFA
Chief
Executive Officer, Chief Investment Officer and Portfolio
Manager
Since
September 2001 |
|
Sanjiv
Talwar, M.D., Ph.D.
Senior
Vice President, Head of Healthcare, Portfolio Manager and Senior
Analyst
Since
July 2021 |
As the Portfolio 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, the level of Portfolio 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 Portfolio. 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 Shares
Because the Portfolio
is an investment vehicle for variable annuity contracts and variable life
insurance policies offered by the separate accounts of life insurance companies,
as well as qualified pension or retirement plans, an individual cannot invest in
the Portfolio directly, but may do so only through one of these sources. The
Portfolio shares are held in the names of the separate accounts and plans. The
minimum initial investment for the separate accounts and plans is generally
$500,000.
Prospectus 9/47
Tax
Information
If you have invested
through the separate account of a life insurance company or through a qualified
pension or retirement plan, please consult the Prospectus or other information
provided to you by your participating life insurance company or qualified
pension or retirement plan regarding the federal income taxation of your policy
or plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Portfolio through a broker-dealer or other financial intermediary (such as a
bank or insurance company), the Portfolio and/or the Manager or the Portfolio’s
distributor may pay the intermediary for the sale of Portfolio shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Portfolio over another investment. Ask your financial professional
or visit your financial intermediary’s website for more information.
Prospectus 10/47
(fees paid directly from your investment)
|
|
Class
I-2 |
|
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
I-2 |
|
Advisory
Fees* |
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
Other
Expenses |
|
|
Acquired
Fund Fees and Expenses** |
|
|
Total
Annual Fund Operating Expenses** |
|
|
Fee
Waiver*** |
( |
|
Total
Annual Fund Operating Expenses After Fee Waiver |
|
*
**
***
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
I-2 |
$ |
$ |
$ |
$ |
Prospectus 11/47
An investment in the
Portfolio involves risks. The Portfolio’s share
price may go down, which means you could lose money.
An investment in the
Portfolio is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. The following is a
summary description of principal risks involved in investing in the Portfolio.
Prospectus 12/47
Prospectus 13/47
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
I-2 |
|
|
|
|
|
Russell
Midcap 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
Portfolio |
|
Fred
Alger Management, LLC |
Dan
C. Chung, CFA
Chief
Executive Officer, Chief Investment Officer and Portfolio
Manager
Since
January 2018 |
|
Brandon
A. Geisler
Senior
Vice President and Portfolio Manager
Since
August 2022 |
As the Portfolio 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, the level of Portfolio 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 Portfolio. 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 Shares
Because the Portfolio
is an investment vehicle for variable annuity contracts and variable life
insurance policies offered by the separate accounts of life insurance companies,
as well as qualified pension or retirement plans, an individual cannot invest in
the Portfolio directly, but may do so only through one of these sources. The
Portfolio shares are held in the names of the separate accounts and plans. The
minimum initial investment for the separate accounts and plans is generally
$500,000.
Prospectus 14/47
Tax
Information
If you have invested
through the separate account of a life insurance company or through a qualified
pension or retirement plan, please consult the Prospectus or other information
provided to you by your participating life insurance company or qualified
pension or retirement plan regarding the federal income taxation of your policy
or plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Portfolio through a broker-dealer or other financial intermediary (such as a
bank or insurance company), the Portfolio and/or the Manager or the Portfolio’s
distributor may pay the intermediary for the sale of Portfolio shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Portfolio over another investment. Ask your financial professional
or visit your financial intermediary’s website for more information.
Prospectus 15/47
(fees paid directly from your investment)
|
|
Class
I-2 |
|
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
I-2 |
|
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
I-2 |
$ |
$ |
$ |
$ |
Prospectus 16/47
An investment in the
Portfolio involves risks. The Portfolio’s share
price may go down, which means you could lose money.
An investment in the
Portfolio is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. The following is a
summary description of principal risks involved in investing in the Portfolio.
Prospectus 17/47
|
|
|
|
|
|
|
Prospectus 18/47
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
I-2 |
|
|
|
|
|
Russell
2000 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
Portfolio |
|
Fred
Alger Management, LLC |
Dan
C. Chung, CFA
Chief
Executive Officer, Chief Investment Officer and Portfolio
Manager
Since
January 2016 |
|
Amy
Y. Zhang, CFA
Executive
Vice President and Portfolio Manager
Since
February 2015 |
As the Portfolio 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, the level of Portfolio 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 Portfolio. 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 Shares
Because the Portfolio
is an investment vehicle for variable annuity contracts and variable life
insurance policies offered by the separate accounts of life insurance companies,
as well as qualified pension or retirement plans, an individual cannot invest in
the Portfolio directly, but may do so only through one of these sources. The
Portfolio shares are held in the names of the separate accounts and plans. The
minimum initial investment for the separate accounts and plans is generally
$500,000.
Tax
Information
If you have invested
through the separate account of a life insurance company or through a qualified
pension or retirement plan, please consult the Prospectus or other information
provided to you by your participating life insurance company or qualified
pension or retirement plan regarding the federal income taxation of your policy
or plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Portfolio through a broker-dealer or other financial intermediary (such as a
bank or insurance company), the Portfolio and/or the Manager or the Portfolio’s
distributor may pay the intermediary for the sale of Portfolio shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Portfolio over another investment. Ask your financial professional
or visit your financial intermediary’s website for more information.
Prospectus 19/47
(fees paid directly from your investment)
|
|
Class
I-2 |
|
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
I-2 |
|
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
I-2 |
$ |
$ |
$ |
$ |
Prospectus 20/47
An investment in the
Portfolio involves risks. The Portfolio’s share
price may go down, which means you could lose money.
An investment in the
Portfolio is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. The following is a
summary description of principal risks involved in investing in the Portfolio.
Prospectus 21/47
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
I-2 |
|
|
|
|
|
S&P
500 Index (reflects
no deductions for fees, expenses or taxes) |
|
|
|
|
Prospectus 22/47
Management
|
Investment
Manager |
Portfolio
Manager Primarily Responsible for Day-to-Day Management of the
Portfolio |
|
Fred
Alger Management, LLC |
Gregory
S. Adams, CFA
Senior
Vice President, Director of Quantitative & Risk Management and
Portfolio Manager
Since
April 2012 |
Shareholder
Information
Purchasing
and Redeeming Shares
Because the Portfolio
is an investment vehicle for variable annuity contracts and variable life
insurance policies offered by the separate accounts of life insurance companies,
as well as qualified pension or retirement plans, an individual cannot invest in
the Portfolio directly, but may do so only through one of these sources. The
Portfolio shares are held in the names of the separate accounts and plans. The
minimum initial investment for the separate accounts and plans is generally
$500,000.
Tax
Information
If you have invested
through the separate account of a life insurance company or through a qualified
pension or retirement plan, please consult the Prospectus or other information
provided to you by your participating life insurance company or qualified
pension or retirement plan regarding the federal income taxation of your policy
or plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Portfolio through a broker-dealer or other financial intermediary (such as a
bank or insurance company), the Portfolio and/or the Manager or the Portfolio’s
distributor may pay the intermediary for the sale of Portfolio shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Portfolio over another investment. Ask your financial professional
or visit your financial intermediary’s website for more information.
Prospectus 23/47
(fees paid directly from your investment)
|
|
Class
I-2 |
|
|
|
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
I-2 |
|
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
I-2 |
$ |
$ |
$ |
$ |
Prospectus 24/47
An investment in the
Portfolio involves risks. The Portfolio’s share
price may go down, which means you could lose money.
An investment in the
Portfolio is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. The following is a
summary description of principal risks involved in investing in the Portfolio.
Prospectus 25/47
Prospectus 26/47
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date |
|
Class
I-2 |
|
|
|
|
|
S&P
500 Index (reflects
no deductions for fees, expenses or taxes) |
|
|
|
|
|
Bloomberg
U.S. Government/Credit Bond Index (reflects
no deductions for fees,
expenses
or taxes) |
|
|
|
|
Management
|
Investment
Manager |
Portfolio
Manager Primarily Responsible for Day-to-Day Management of the
Portfolio |
|
Fred
Alger Management, LLC |
Gregory
S. Adams, CFA
Senior
Vice President, Director of Quantitative & Risk Management and
Portfolio Manager
Since
February 2013 |
Shareholder
Information
Purchasing
and Redeeming Shares
Because the Portfolio
is an investment vehicle for variable annuity contracts and variable life
insurance policies offered by the separate accounts of life insurance companies,
as well as qualified pension or retirement plans, an individual cannot invest in
the Portfolio directly, but may do so only through one of these sources. The
Portfolio shares are held in the names of the separate accounts and plans. The
minimum initial investment for the separate accounts and plans is generally
$500,000.
Tax
Information
If you have invested
through the separate account of a life insurance company or through a qualified
pension or retirement plan, please consult the Prospectus or other information
provided to you by your participating life insurance company or qualified
pension or retirement plan regarding the federal income taxation of your policy
or plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Portfolio through a broker-dealer or other financial intermediary (such as a
bank or insurance company), the Portfolio and/or the Manager or the Portfolio’s
distributor may pay the intermediary for the sale of Portfolio shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Portfolio over another investment. Ask your financial professional
or visit your financial intermediary’s website for more information.
Prospectus 27/47
Investment
Objectives, Principal Investment Strategies and Related Risks
The investment
objective, principal strategy and primary risks of each Portfolio are discussed
individually in each Portfolio’s Summary Section in this Prospectus. Each of
Alger Large Cap Growth Portfolio, Alger Mid Cap Growth Portfolio, and Alger
Small Cap Growth Portfolio has adopted a policy to invest at least 80% of its
assets in specified securities appropriate to its name (as described in the
Portfolio’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 Portfolio’s investment objective is a non-fundamental investment policy and
may be changed by the Board of Trustees (the “Board”) without shareholder
approval. A Portfolio will provide its shareholders with at least 60 days’ prior
notice of any change to its investment objective. A Portfolio may, from time to
time, take temporary defensive positions that are inconsistent with the
Portfolio’s principal investment strategies in attempting to respond to adverse
market, economic, political, or other conditions. A Portfolio may not achieve
its investment objective while in a temporary defensive
position.
A Portfolio’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.
•
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 2000 Growth
Index: measures the performance of the small-cap growth segment of the U.S.
equity universe. It includes those Russell 2000 Index companies with higher
growth earning potential as defined by Russell’s leading style methodology. The
Russell 2000 Growth Index is constructed to provide a comprehensive and unbiased
barometer for the small-cap growth segment.
•
Russell Midcap Growth
Index: measures the performance of the mid-cap growth segment of the U.S. equity
universe. It includes those Russell Midcap Index companies with higher growth
earning potential as defined by Russell’s leading style methodology. The Russell
Midcap Growth Index is constructed to provide a comprehensive and unbiased
barometer of the mid-cap growth market.
•
S&P 500 Index: An
index of large company stocks considered to be representative of the U.S. stock
market.
•
Bloomberg U.S.
Government/Credit Bond Index: A broad-based flagship benchmark that measures the
non-securitized component of the U.S. Aggregate Index. The index includes
investment grade, U.S. dollar-denominated, fixed-rate treasuries,
government-related and corporate securities.
Additional
Information About the Portfolios’ Investment Strategies and
Investments
Investment
Objectives
Each of Alger Capital
Appreciation Portfolio, Alger Large Cap Growth Portfolio, Alger Mid Cap Growth
Portfolio, and Alger Small Cap Growth Portfolio seeks long-term capital
appreciation. Alger Growth & Income Portfolio seeks to provide capital
appreciation and current income. Alger Balanced Portfolio seeks current income
and long-term capital appreciation.
Principal
Investment Strategies
The following are
each Portfolio’s investment process and principal investment strategies. Each
Portfolio may invest in other securities that are not its principal strategy,
and such strategies and related risks are described in more detail in the
Portfolio’s Statement of Additional Information (“SAI”).
Each Portfolio
(except for the fixed-income portion of Alger Balanced Portfolio) invests
primarily in equity securities. Each Portfolio’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
Portfolio invests primarily in companies whose securities are traded on U.S. or
foreign exchanges.
Each Portfolio’s
equity investments are primarily in “growth” stocks. The Portfolios’ investment
manager, Fred Alger Management, LLC (“Alger Management” or the “Manager”),
believes that these companies tend to fall into one of two
categories:
Prospectus 28/47
•
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.
Each Portfolio other
than Alger Capital Appreciation Portfolio and Alger Balanced Portfolio must take
into account a company’s market capitalization when considering it for
investment. The market capitalization of a company is its price per share
multiplied by its number of outstanding shares.
ESG
Integration
Although a Portfolio
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
Portfolio. Further, investors can differ in their views of what constitutes
positive or negative ESG characteristics. As a result, a Portfolio 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 Portfolio’s exposure to
certain companies or industries and a Portfolio may forego certain investment
opportunities. While the Manager views ESG considerations as having the
potential to contribute to a Portfolio’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 Portfolios. The
“Investment Strategies and Policies” section in the SAI also includes more
information about the Portfolios and their investments and the related risks. An
investment in the Portfolios 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 Portfolios involves risks. Each risk noted below is
applicable to each Portfolio unless the specific Portfolio or Portfolios are
noted in a parenthetical.
Investment
Risk
An investment in a
Portfolio is subject to investment risk, including the possible loss of the
entire principal amount that you invest.
Market
Risk
Your investment in
Portfolio shares represents an indirect investment in the securities owned by a
Portfolio. The value of these securities, like other investments, may move up or
down, sometimes rapidly and unpredictably. Your Portfolio shares at any point in
time may be worth less than what you invested, even after taking into account
the reinvestment of Portfolio 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 Portfolio and
its investments.
Prospectus 29/47
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 Portfolio’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 Portfolio’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 Portfolio 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 Small Cap Growth Portfolio)
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 Portfolio’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 Portfolio 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.
Mid
Cap Securities Risk (Alger Mid Cap Growth Portfolio)
There may be greater
risk in investing in medium-capitalization companies rather than larger, more
established companies due to such factors as inexperienced management and
limited product lines or financial resources. It may also be difficult or
impossible to liquidate a security position at a time and price acceptable to
the Portfolio because of the potentially less frequent trading of stocks of
smaller market capitalization.
Foreign
Securities Risk (Alger Capital Appreciation Portfolio, Alger Large Cap Growth
Portfolio, Alger Mid Cap Growth Portfolio, Alger Small Cap Growth
Portfolio)
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
securities denominated 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
Portfolio 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.
Sector
Risk
A Portfolio 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 Portfolio more
vulnerable to unfavorable developments in that sector
Prospectus 30/47
than a fund that has
a more diversified portfolio. Generally, the more broadly a Portfolio invests,
the more it spreads risk and potentially reduces the risks of loss and
volatility.
•
Information
Technology Sector Risk – A Portfolio 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.
•
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.
•
Health Care Sector
Risk – A Portfolio 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 Portfolio 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.
•
Financials Sector
Risk – A Portfolio may have a significant portion of its assets invested in
securities of financial services companies, which means the Portfolio 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.
•
Communication
Services Sector Risk – Communication services companies are particularly
vulnerable to the potential obsolescence of products and services due to
technological advancement and the innovation of competitors. Companies in the
communication services sector may also be affected by other competitive
pressures, such as pricing competition, as well as research and development
costs, substantial capital requirements and government regulation. Additionally,
fluctuating domestic and international demand, shifting demographics and often
unpredictable changes in consumer tastes can drastically affect a communication
services company’s profitability. While all companies may be susceptible to
network security breaches, certain companies in the communication services
sector may be particular targets of hacking and potential theft of proprietary
or consumer information or disruptions in service, which could have a material
adverse effect on their businesses.
Portfolio
Turnover (Active Trading) Risk (Alger Large Cap Growth Portfolio, Alger Mid Cap
Growth Portfolio)
If a Portfolio
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.
Prospectus 31/47
Income-Producing
Securities Risk (Alger Growth & Income Portfolio, Alger Balanced
Portfolio)
Companies may cut or
fail to declare dividends due to market downturns or other reasons.
Additionally, returns from income producing securities may trail returns from
the overall stock market. Specific types of securities tend to go through cycles
of doing better—or worse—than the stock market in general. These periods have,
in the past, lasted for as long as several years.
Fixed
Income Securities Risk (Alger Balanced Portfolio)
Fixed income
securities, such as bonds, involve interest rate risk, credit risk, extension
risk, and prepayment risk, among other things.
Interest
Rate Risk: The market value of
bonds and other fixed-income securities changes in response to interest rate
changes and other factors. Interest rate risk is the risk that prices of bonds
and other fixed-income securities will increase as interest rates fall and
decrease as interest rates rise.
If rates increase,
the value of these investments generally declines. Securities with greater
interest rate sensitivity and longer maturities generally are subject
to
greater
fluctuations in value. The Portfolio may face a heightened level
of
interest rate risk due to certain changes in monetary policy. It is difficult to
predict the pace at which central banks or monetary authorities may increase
interest rates or the timing,
frequency,
or
magnitude of such increases.
Any such
changes could be sudden and could expose debt markets to significant volatility
and reduced liquidity for Portfolio investments.
To the extent the
Portfolio invests in debt securities that may be prepaid at the option of the
obligor (such as mortgage-backed securities), the sensitivity of such securities
to changes in interest rates may increase (to the detriment of the Portfolio)
when interest rates rise. Moreover, because rates on certain floating rate debt
securities typically reset only periodically, changes in prevailing interest
rates (and particularly sudden and significant changes) can be expected to cause
some fluctuations in the net asset value of the Portfolio to the extent that it
invests in floating rate debt securities.
These basic
principles of bond prices also apply to U.S. Government securities. A security
backed by the “full faith and credit” of the U.S. Government is guaranteed only
as to its stated interest rate and face value at maturity, not its current
market price. Just like other fixed-income securities, government-guaranteed
securities will fluctuate in value when interest rates change.
A general rise in
interest rates has the potential to cause investors to move out of fixed-income
securities on a large scale, which may increase redemptions from mutual funds
that hold large amounts of fixed-income securities. Heavy redemptions could
cause the Portfolio to sell assets at inopportune times or at a loss or
depressed value and could hurt the Portfolio’s performance.
Credit
Risk:
Credit risk refers to the possibility that the issuer of a debt security (i.e.,
the borrower) will not be able to make payments of interest and principal when
due. Changes in an issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Portfolio’s
investment in that issuer. The degree of credit risk depends on both the
financial condition of the issuer and the terms of the obligation.
Extension
Risk:
When interest rates rise, certain obligations will be paid off by the obligor
more slowly than anticipated, causing the value of these obligations to fall.
Rising interest rates tend to extend the duration of securities, making them
more sensitive to changes in interest rates. The value of longer-term securities
generally changes more in response to changes in interest rates than
shorter-term securities. As a result, in a period of rising interest rates,
securities may exhibit additional volatility and may lose value.
Prepayment
Risk:
When interest rates fall, certain obligations will be paid off by the obligor
more quickly than originally anticipated, and the Portfolio may have to invest
the proceeds in securities with lower yields. In periods of falling interest
rates, the rate of prepayments tends to increase (as does price fluctuation) as
borrowers are motivated to pay off debt and refinance at new lower rates. During
such periods, reinvestment of the prepayment proceeds by the management team
will generally be at lower rates of return than the return on the assets that
were prepaid. Prepayment reduces the yield to maturity and the average life of
the security.
Cash
Position Risk
A Portfolio may hold
up to 15% (35% for Alger Growth & Income Portfolio) 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 Portfolio’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
Portfolio holds assets in cash and is otherwise uninvested, the ability of a
Portfolio to meet its objective may be limited. If a Portfolio holds a large
cash position, a Portfolio may under-perform relative to equity
securities.
Prospectus 32/47
Temporary
Defensive Investments
In times of adverse
or unstable market, economic or political conditions, a Portfolio may invest up
to 100% of its assets in cash, cash equivalents, money market securities, such
as U.S. Treasury and agency obligations, other U.S. Government securities,
short-term debt obligations of corporate issuers, certificates of
deposit,
bankers
acceptances, commercial paper (short-term,
unsecured,
negotiable promissory
notes of a domestic or foreign issuer) or other high quality fixed-income
securities for temporary defensive reasons. This is to attempt to protect the
Portfolio’s assets from a temporary, unacceptable risk of loss, rather than
directly to promote the Portfolio’s investment objective. A Portfolio may also
hold these types of securities in an amount up to 15% of net assets (35% of
net assets, in the case of Alger Growth & Income Portfolio), pending the
investment of proceeds from the sale of Portfolio shares or portfolio securities
or to meet anticipated redemptions of Portfolio shares. A Portfolio may not
achieve its investment objective while in a temporary defensive
position.
Prospectus 33/47
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, 2023) approximately $22.1 billion. The Manager has managed each
Portfolio since its inception. The Manager is responsible for providing a
continuous investment program for the Portfolios, making decisions with respect
to all purchases and sales of assets, and placing orders for the investment and
reinvestment of Portfolio assets. The Manager also arranges for transfer agency,
custody and all other services necessary for each Portfolio to operate. These
advisory responsibilities are subject to the supervision of the Board. A
discussion of the Trustees’ basis for the approval of the investment advisory
agreement between the Trust, on behalf of each Portfolio, and the
Manager
is
available in each Portfolio’s annual report to shareholders for its most recent
December 31 fiscal year end. The Portfolios 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 December 31, 2023, is set forth below under the heading “Actual
Rate.”
|
Portfolio |
Annual
Fee as a Percentage of Average Daily Net Assets |
Actual
Rate |
|
Alger
Balanced Portfolio |
.71%
for assets up to $1 billion;
.55%
for assets in excess of $1 billion |
.71% |
|
Alger
Capital Appreciation Portfolio |
.81%
for assets up to $2 billion;
.65%
for assets between $2 billion and $3 billion;
.60%
for assets between $3 billion and $4 billion;
.55%
for assets between $4 billion and $5 billion;
.45%
for assets in excess of $5 billion |
.81% |
|
Alger
Growth & Income Portfolio |
.50% |
.50% |
|
Alger
Large Cap Growth Portfolio |
.71%
for assets up to $1 billion;
.60%
for assets in excess of $1 billion |
.71% |
|
Alger
Mid Cap Growth Portfolio |
.76%
for assets up to $1 billion;
.70%
for assets in excess of $1 billion |
.76% |
|
Alger
Small Cap Growth Portfolio |
.81%
for assets up to $1 billion;
.75%
for assets in excess of $1 billion |
.81% |
With respect to each
of Alger Large Cap Growth Portfolio and Alger Mid Cap Growth Portfolio, the
Manager has contractually agreed to waive fees owed to it, or to reimburse
expenses of, the Portfolio in an amount corresponding to the management fee
borne by the Portfolio as an investor in any underlying investment in an
affiliated investment company. These agreements will remain in effect for the
life of any such investment.
Portfolio
Managers Jointly and Primarily Responsible for Day-to-Day Management of the
Portfolios
|
Portfolio |
Portfolio
Manager(s) |
Since |
|
Alger
Capital Appreciation Portfolio |
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
Large Cap Growth Portfolio |
Dan
C. Chung, CFA
Sanjiv
Talwar, M.D., Ph.D. |
September
2001
July
2021 |
|
Alger
Mid Cap Growth Portfolio |
Dan
C. Chung, CFA
Brandon
A. Geisler |
January
2018
August
2022 |
|
Alger
Small Cap Growth Portfolio |
Amy
Y. Zhang, CFA
Dan
C. Chung, CFA |
February
2015
January
2016 |
|
Alger
Growth & Income Portfolio |
Gregory
S. Adams, CFA |
April
2012 |
|
Alger
Balanced Portfolio |
Gregory
S. Adams, CFA |
February
2013 |
•
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. 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.
Prospectus 34/47
•
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.
•
Mr. Geisler has been
employed by the Manager since 2022. Prior to joining the Manager, Mr. Geisler
was a Partner, Managing Director of Research, Portfolio Manager and Senior
Securities Analyst at Marsico Capital Management from 2006 to
2022.
•
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.
•
Dr. Talwar has been
employed by the Manager since 2021. Prior to joining the Manager, Dr. Talwar was
Portfolio Manager, Senior Analyst and Director of Equity Research at Oppenheimer
Funds from 2012 to 2021 and Associate Principal at McKinsey & Company from
2006 to 2012.
•
Ms. Zhang has been
employed by the Manager since 2015 as a portfolio manager. She became an
Executive Vice President in 2020 and was previously Senior Vice President. Prior
to joining the Manager, she was a Managing Director and Senior Portfolio Manager
at Brown Capital Management, Inc. from 2002 to 2015.
The SAI provides
additional information about the portfolio managers’ compensation, other
accounts that they manage, and their ownership of securities of the Portfolio(s)
that they manage.
Administrator
Pursuant to a
separate Fund Administration Agreement, the Manager also provides administrative
services to each Portfolio, including, but not limited to: providing office
space, telephone, office equipment and supplies; paying compensation of the
Portfolio’s officers for services rendered as such; authorizing expenditures and
approving bills for payment on behalf of the Portfolio; preparation of the
periodic updating of the Portfolio’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
Portfolio’s investment portfolio and the publication of the net asset value of
the Portfolio’s shares, earnings reports and other financial data; monitoring
relationships with organizations providing services to each Portfolio, including
the Portfolio’s custodian, transfer agent, blue sky agent and printers;
providing trading desk facilities for the Portfolio; supervising compliance by
the Portfolio 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 Portfolio’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 Portfolio; arranging for
the Portfolio the required fidelity bond and other insurance, if applicable; and
providing executive, clerical and secretarial help needed to carry out these
responsibilities. Each Portfolio pays the Manager an administrative fee at the
annual rate of 0.0275% of the Portfolio’s average daily net
assets.
Pursuant to a
separate Shareholder Administrative Services Agreement, the Manager also
supervises the Portfolios’ transfer agent, UMB Fund Services, Inc. (the
“Transfer Agent”), and provides certain shareholder administrative services to
the Portfolios. Each Portfolio pays the Manager a shareholder administrative
services fee at the annual rate of 0.01% of net assets with respect to Class I-2
Shares.
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
Prospectus 35/47
Net
Asset Value
The value of one
share is its net asset value, or “NAV.” Each Portfolio values its financial
instruments at fair value using independent dealers or pricing services under
policies approved by the Board. Investments held by a Portfolio 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 Portfolio’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 Portfolio. 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 Portfolio 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
Portfolio 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
Portfolio 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 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.
Dividends
and Distributions and Tax Consequences
Except as noted
below, each Portfolio declares and pays dividends and distributions annually.
Each Portfolio expects that these annual payments to shareholders will consist
of both capital gains and net investment income.
Alger Growth &
Income Portfolio declares and pays dividends from net investment income
quarterly. Distributions from net realized gains are declared and paid annually
after the end of the fiscal year in which they were earned.
Federal income
taxation of separate accounts of insurance companies, variable annuity contracts
and variable life insurance contracts is discussed in the prospectuses of
participating insurance companies. Generally, distributions by a Portfolio will
not be taxable to holders of variable annuity contracts or variable life
insurance policies if the insurance company separate accounts to which those
distributions are made meet certain requirements, including certain
diversification requirements that the Portfolio has undertaken to meet, under
the Internal Revenue Code. Participants in qualified pension and retirement
plans ordinarily will not be subject to taxation on dividends from net
investment income and distributions from net realized capital gains until they
receive a distribution from their plan account. Generally, distributions from
plan accounts are taxable as ordinary income at the rate applicable to each
participant at the time of distribution. In certain cases, distributions made to
a participant prior to the
Prospectus 36/47
participant’s
reaching age 59-1/2 are subject to a penalty tax equivalent to 10% of the
distributed amount, in addition to the ordinary income tax payable on such
amount.
Because everyone’s
tax situation is unique, you should see a tax advisor about federal, state and
local tax consequences of investing in a Portfolio.
Classes
of Shares
Each Portfolio offers
Class I-2 Shares. Alger Capital Appreciation Portfolio also offers a second
class of shares, Class S Shares. Only Class I-2 Shares are offered in this
Prospectus. The classes differ primarily in that Class S Shares are subject to a
distribution and shareholder servicing fee, while Class I-2 Shares are not. Both
classes are offered only to separate accounts of insurance companies for the
purpose of funding variable annuity contracts and variable life insurance
policies and to qualified pension and retirement plans.
Such qualified
pension and retirement plans include those under the following sections of the
Internal Revenue Code:
•
A plan described in §
401(a) that includes a trust exempt from tax under § 501(a);
•
An annuity plan
described in § 403(a);
•
An annuity contract
described in § 403(b), including a custodial account described in §
403(b)(7);
•
An individual
retirement account described in § 408(a);
•
An individual
retirement annuity described in § 408(b);
•
A governmental plan
within the meaning of plan § 414(d) or an eligible deferred compensation plan
within the meaning of § 457(b);
•
A simplified employee
pension of an employer that satisfies the requirements of § 408(k);
•
A plan described in §
501(c)(18);
•
A simple retirement
account described in § 408(p);
•
A deemed IRA
described in § 408A;
•
A § 415(m) plan that
is also a “governmental plan” within the meaning of § 414(d);
•
A § 457(f) plan that
has as its sponsor either (i) a charitable organization described in §
818(a)(4), or (ii) a governmental organization described in § 818(a)(4), whose
employees are described in § 403(b)(1)(A)(ii); and
•
Any other trust,
plan, account, contract, or annuity that the IRS has determined in a letter
ruling to be within the scope of Regs. § 1.817-5(f)(3)(iii).
Investors with
non-U.S. addresses and intermediary or insurance company controlled
accounts designated as foreign accounts (“Restricted Accounts”) are restricted
from investing in the Portfolios. Existing Restricted Accounts may remain in the
Portfolios, 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 Portfolios. Addresses in U.S. territories, such as Guam
and Puerto Rico, are also treated as U.S. addresses and can invest in the
Portfolios , provided eligibility requirements are
met .
Purchasing
and Redeeming Shares
Because each
Portfolio is an investment vehicle for variable annuity contracts and variable
life insurance policies offered by the separate accounts of life insurance
companies, as well as qualified pension and retirement plans, an individual
cannot invest in a Portfolio directly, but may do so only through one of these
sources. A Portfolio’s shares are held in the names of the separate accounts and
plans. The minimum initial investment for the separate accounts and plans is
generally $500,000. 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.
Shares of a Portfolio
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, a Portfolio 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 a Portfolio’s transfer agent or
authorized intermediary, if applicable. If your request is not in good order, a
Portfolio’s transfer agent may require additional documentation in order to
redeem your shares. Payment may
Prospectus 37/47
be postponed in cases
where the SEC declares an emergency or normal trading is halted. The Transfer
Agent or a Portfolio may reject any purchase order. Share certificates are not
issued for shares of a Portfolio.
Under normal
circumstances, each Portfolio 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 Portfolio’s SAI, a Portfolio also may pay
redemption proceeds using cash obtained through borrowing arrangements that may
be available from time to time.
Each Portfolio 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
a Portfolio believes that a cash redemption may have a substantial impact on the
Portfolio and its remaining shareholders. Securities will generally be selected
on a pro rata basis pursuant to each Portfolio’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.
Limitations
on Excessive Trading
Each of the
Portfolios invests predominantly in U.S.-traded, highly liquid securities
for which current NYSE closing prices are readily available on a daily basis.
Each Portfolio 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 Portfolio and other circumstances may invite frequent and/or
short-term trading by Portfolio shareholders. If carried out on a large scale,
active trading will impose burdens on the Portfolio’s portfolio managers,
interfere with the efficient management of the Portfolio, increase a Portfolio's
transaction costs, administrative costs or tax liability or otherwise be
detrimental to the interests of the Portfolio and its other shareholders. The
Portfolios 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 Portfolio shares. These policies and procedures allow, among other
things, a Portfolio to reject purchase or exchange orders, on a temporary or
permanent basis, or redeem all Portfolio shares from investors that the Manager
believes, in its reasonable business judgment, are engaging in frequent and/or
short-term trading in Portfolio shares or shares of other funds sponsored by the
Manager that is detrimental to the Portfolio involved. If a Portfolio rejects
your purchase or exchange order or redeems your investment, you will not be able
to execute that transaction, and neither the Portfolio 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 Portfolio 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
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 Portfolio’s policy.
If, based on a
Portfolio’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 Portfolio, may place a temporary or permanent block on
all further purchases or exchanges of Portfolio shares or may redeem all of such
shareholder’s Portfolio 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 Portfolio 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 Portfolio will be able to identify and restrict such
activity in all cases. Additionally, it is more difficult for a Portfolio
to monitor the trading activity of beneficial owners of Portfolio 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 Portfolio shares in a single account.
As noted above, in
certain circumstances a Portfolio may be subject to frequent trading
restrictions of intermediaries that differ from the Portfolio’s policies and
procedures. Such frequent trading restrictions of intermediaries may be more or
less restrictive than a Portfolio’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 Portfolios do not monitor intermediaries’ frequent trading
restrictions. A Portfolio reserves the right to prohibit any purchase,
sale or exchange of its shares that the Portfolio believes may be disruptive to
the Portfolio or its long-term investors.
Prospectus 38/47
Disclosure
of Portfolio Holdings
For a discussion of
each Portfolio’s policies and procedures regarding the selective disclosure of
its portfolio holdings, please see the SAI. Each Portfolio 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 Portfolio may
redeem some of your shares “in kind,” which means that some of the proceeds will
be paid with securities the Portfolio owns instead of cash. The Portfolio has
elected to be governed by Rule 18f-1 under the 1940 Act, pursuant to which the
Portfolio is obligated to redeem shares solely in cash up to the lesser of
$250,000 or 1% of the net assets of the Portfolio 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 Portfolio
pays large redemptions in cash, these transactions may increase the Portfolio's
transaction costs and detract from the Portfolio'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.
The Portfolio and
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 Portfolio and the Transfer
Agent follow these procedures, they are not liable for acting in good faith on
telephone instructions. If you are a participant in a retirement plan, such as a
401(k) plan, and you purchase shares in a Portfolio through an administrator or
trustee that maintains a master or “omnibus” account with the Portfolio for
trading on behalf of retirement plans and their participants, the administrator
may apply limitations of its own on participant transactions. These limitations
may be more or less restrictive than the limitations imposed by the Portfolio.
Consult with your administrator to determine what purchase and redemption
limitations may be applicable to your transactions in Portfolio shares through
your retirement plan.
From time to time the
Distributor, at its expense from its legitimate profits, may compensate brokers,
dealers, investment advisers or others (“Financial Intermediaries”) who are
instrumental in effecting investments by their clients or customers in a
Portfolio, 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). Payments under these other arrangements may vary but
generally will not exceed 0.50% annually of Portfolio assets or 0.50% annually
of Portfolio sales attributable to that Financial Intermediary. 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 a Portfolio, expertise in distributing a particular class
of shares of the Portfolio, 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 Portfolio or the amount of proceeds
received by a Portfolio on the sale of shares.
Redemptions
by the Portfolios. 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 Portfolio may redeem all the Portfolio 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 Portfolios 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 Portfolio 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 Portfolio shares is rejected, such shares may be redeemed
from the Portfolio on request of the shareholder. In addition, the Portfolio
reserves the right to modify any terms or conditions of purchase of shares of
the Portfolio or suspend, change or withdraw all or any part of the offering
made by this prospectus. If the Portfolio rejects your purchase or exchange
order, you may not be able to execute that transaction, and the Portfolios 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 Portfolio 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 Portfolio. Based upon statutory requirements for returned mail,
the Portfolio will attempt to locate the shareholder or rightful owner of the
account. If the Portfolio is unable to locate the shareholder, then it will
determine whether the shareholder’s account would legally be considered
abandoned. Your 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 Portfolio is legally obligated to escheat (or transfer) abandoned
property to the appropriate state’s unclaimed
Prospectus 39/47
property
administrator in accordance with statutory requirements. The shareholder’s last
known address of record determines which state has jurisdiction.
If
you are a resident of the state of Texas, you may designate a representative to
receive notifications that, due to inactivity, your 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.
Prospectus 40/47
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 Portfolio’s expenses,
including advisory fees and other Portfolio costs, on each Portfolio’s total
return based on NAV over a 10-year period. The example assumes the
following:
•
You invest $10,000 in
the Portfolio and hold it for the entire 10-year period; and
•
Your investment has a
5% return before expenses each year.
There is no assurance
that the stated annual expense ratio will be the expense ratio for the Portfolio
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
would be under the above scenarios. Your actual expenses are likely to differ
(higher or lower) from those shown below.
Alger
Capital Appreciation Portfolio
|
Class
I-2 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
0.95% |
0.95% |
0.95% |
0.95% |
0.95% |
0.95% |
0.95% |
0.95% |
0.95% |
0.95% |
|
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 |
4.05% |
8.26% |
12.65% |
17.21% |
21.96% |
26.90% |
32.04% |
37.38% |
42.95% |
48.74% |
|
End
Investment Balance |
$10,405 |
$10,826 |
$11,265 |
$11,721 |
$12,196 |
$12,690 |
$13,204 |
$13,738 |
$14,295 |
$14,874 |
|
Annual
Expense |
$97 |
$101 |
$105 |
$109 |
$114 |
$118 |
$123 |
$128 |
$133 |
$139 |
Alger
Large Cap Growth Portfolio
|
Class
I-2 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
|
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 |
4.13% |
8.43% |
12.91% |
17.57% |
22.43% |
27.48% |
32.75% |
38.23% |
43.94% |
49.89% |
|
End
Investment Balance |
$10,413 |
$10,843 |
$11,291 |
$11,757 |
$12,243 |
$12,748 |
$13,275 |
$13,823 |
$14,394 |
$14,989 |
|
Annual
Expense |
$89 |
$92 |
$96 |
$100 |
$104 |
$109 |
$113 |
$118 |
$123 |
$128 |
Alger
Mid Cap Growth Portfolio
|
Class
I-2 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
0.98% |
0.98% |
0.98% |
0.98% |
0.98% |
0.98% |
0.98% |
0.98% |
0.98% |
0.98% |
|
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 |
4.02% |
8.20% |
12.55% |
17.08% |
21.78% |
26.68% |
31.77% |
37.07% |
42.58% |
48.31% |
|
End
Investment Balance |
$10,402 |
$10,820 |
$11,255 |
$11,708 |
$12,178 |
$12,668 |
$13,177 |
$13,707 |
$14,258 |
$14,831 |
|
Annual
Expense |
$100 |
$104 |
$108 |
$113 |
$117 |
$122 |
$127 |
$132 |
$137 |
$143 |
Alger
Small Cap Growth Portfolio
|
Class
I-2 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
1.02% |
1.02% |
1.02% |
1.02% |
1.02% |
1.02% |
1.02% |
1.02% |
1.02% |
1.02% |
|
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 |
3.98% |
8.12% |
12.42% |
16.90% |
21.55% |
26.39% |
31.42% |
36.65% |
42.09% |
47.74% |
|
End
Investment Balance |
$10,398 |
$10,812 |
$11,242 |
$11,690 |
$12,155 |
$12,639 |
$13,142 |
$13,665 |
$14,209 |
$14,774 |
|
Annual
Expense |
$104 |
$108 |
$112 |
$117 |
$122 |
$126 |
$131 |
$137 |
$142 |
$148 |
Prospectus 41/47
Alger
Growth & Income Portfolio
|
Class
I-2 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
0.93% |
0.93% |
0.93% |
0.93% |
0.93% |
0.93% |
0.93% |
0.93% |
0.93% |
0.93% |
|
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 |
4.07% |
8.31% |
12.71% |
17.30% |
22.08% |
27.04% |
32.21% |
37.60% |
43.20% |
49.02% |
|
End
Investment Balance |
$10,407 |
$10,831 |
$11,271 |
$11,730 |
$12,208 |
$12,704 |
$13,221 |
$13,760 |
$14,320 |
$14,902 |
|
Annual
Expense |
$95 |
$99 |
$103 |
$107 |
$111 |
$116 |
$121 |
$125 |
$131 |
$136 |
Alger
Balanced Portfolio
|
Class
I-2 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Expense
Ratio |
1.07% |
1.07% |
1.07% |
1.07% |
1.07% |
1.07% |
1.07% |
1.07% |
1.07% |
1.07% |
|
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 |
3.93% |
8.01% |
12.26% |
16.67% |
21.26% |
26.02% |
30.97% |
36.12% |
41.47% |
47.03% |
|
End
Investment Balance |
$10,393 |
$10,801 |
$11,226 |
$11,667 |
$12,126 |
$12,602 |
$13,097 |
$13,612 |
$14,147 |
$14,703 |
|
Annual
Expense |
$109 |
$113 |
$118 |
$122 |
$127 |
$132 |
$137 |
$143 |
$149 |
$154 |
Prospectus 42/47
Financial
Highlights
The financial
highlights tables are intended to help you understand each Portfolio’s financial
performance for the periods shown. Certain information reflects financial
results for a single Portfolio share. The total returns in the tables represent
the rate that an investor would have earned or lost on an investment in the
Portfolio (assuming reinvestment of all dividends and distributions). The
information in the tables for the fiscal years ended December 31 has been
audited by Deloitte & Touche LLP, whose report, along with each Portfolio’s
financial statements, is included in the Annual Report, which is available upon
request.
Note that the
Portfolios’ financial highlights do not reflect charges and deductions which
are, or may be, imposed under variable annuity contracts, variable life
insurance policies, or pension or retirement plans. Such charges and deductions
are described in the prospectus for the contract or policy accompanying this
Prospectus or in the plan documents.
The
Alger Portfolios
|
Alger
Capital Appreciation Portfolio Class I-2 |
Year
ended
12/31/23 |
Year
ended
12/31/22 |
Year
ended
12/31/21 |
Year
ended
12/31/20 |
Year
ended
12/31/19 |
|
Net
asset value, beginning of period |
$54.65 |
$94.33 |
$99.96 |
$80.93 |
$68.07 |
|
Income
from Investment Operations: |
|
|
|
|
|
|
Net
investment loss (i) |
(0.16) |
(0.08) |
(0.52) |
(0.25) |
(0.01) |
|
Net
realized and unrealized gain (loss) on investments |
23.73 |
(34.22) |
19.51 |
33.91 |
22.74 |
|
Total
from investment operations |
23.57 |
(34.30) |
18.99 |
33.66 |
22.73 |
|
Distributions
from net realized gains |
— |
(5.38) |
(24.62) |
(14.63) |
(9.87) |
|
Net
asset value, end of period |
$78.22 |
$54.65 |
$94.33 |
$99.96 |
$80.93 |
|
Total
return |
43.13% |
(36.52)% |
19.13% |
41.75% |
33.58% |
|
Ratios/Supplemental
Data: |
|
|
|
|
|
|
Net
assets, end of period (000's omitted) |
$392,988 |
$317,119 |
$584,908 |
$573,297 |
$461,686 |
|
Ratio
of net expenses to average net assets |
0.95% |
0.94% |
0.91% |
0.93% |
0.94% |
|
Ratio
of net investment loss to average net assets |
(0.24)% |
(0.11)% |
(0.47)% |
(0.27)% |
(0.01)% |
|
Portfolio
turnover rate |
79.29% |
107.04% |
89.50% |
89.91% |
74.35% |
(i)
Amount was computed
based on average shares outstanding during the period.
Prospectus 43/47
The
Alger Portfolios
|
Alger
Large Cap Growth Portfolio Class I-2 |
Year
ended
12/31/23 |
Year
ended
12/31/22(i) |
Year
ended
12/31/21 |
Year
ended
12/31/20 |
Year
ended
12/31/19 |
|
Net
asset value, beginning of period |
$47.05 |
$81.08 |
$93.41 |
$64.31 |
$51.43 |
|
Income
from Investment Operations: |
|
|
|
|
|
|
Net
investment loss (ii) |
(0.13) |
(0.14) |
(0.10) |
(0.10) |
(0.01) |
|
Net
realized and unrealized gain (loss) on investments |
15.50 |
(31.11) |
11.07 |
42.98 |
14.10 |
|
Total
from investment operations |
15.37 |
(31.25) |
10.97 |
42.88 |
14.09 |
|
Dividends
from net investment income |
— |
— |
— |
(0.15) |
— |
|
Distributions
from net realized gains |
— |
(2.78) |
(23.30) |
(13.63) |
(1.21) |
|
Net
asset value, end of period |
$62.42 |
$47.05 |
$81.08 |
$93.41 |
$64.31 |
|
Total
return |
32.67% |
(38.65)% |
11.84% |
67.03% |
27.43% |
|
Ratios/Supplemental
Data: |
|
|
|
|
|
|
Net
assets, end of period (000's omitted) |
$294,334 |
$241,356 |
$420,951 |
$422,379 |
$273,507 |
|
Ratio
of gross expenses to average net assets |
0.87% |
0.87% |
0.82% |
0.88% |
0.90% |
|
Ratio
of expense reimbursements to average net assets |
(0.03)% |
(0.03)% |
(0.02)% |
(0.03)% |
(0.01)% |
|
Ratio
of net expenses to average net assets |
0.84% |
0.84% |
0.80% |
0.85% |
0.89% |
|
Ratio
of net investment loss to average net assets |
(0.24)% |
(0.24)% |
(0.10)% |
(0.12)% |
(0.02)% |
|
Portfolio
turnover rate |
103.22% |
78.40% |
69.92% |
125.41% |
144.26% |
(i)
Class S Shares were
converted into Class I-2 Shares after the close of business on June 3,
2022.
(ii)
Amount was computed
based on average shares outstanding during the period.
Prospectus 44/47
The
Alger Portfolios
|
Alger
Mid Cap Growth Portfolio Class I-2 |
Year
ended
12/31/23 |
Year
ended
12/31/22(i) |
Year
ended
12/31/21 |
Year
ended
12/31/20 |
Year
ended
12/31/19 |
|
Net
asset value, beginning of period |
$13.68 |
$22.18 |
$33.25 |
$22.69 |
$19.55 |
|
Income
from Investment Operations: |
|
|
|
|
|
|
Net
investment loss (ii) |
(0.05) |
(0.05) |
(0.17) |
(0.14) |
(0.06) |
|
Net
realized and unrealized gain (loss) on investments |
3.22 |
(7.94) |
1.33 |
14.73 |
5.94 |
|
Total
from investment operations |
3.17 |
(7.99) |
1.16 |
14.59 |
5.88 |
|
Distributions
from net realized gains |
— |
(0.51) |
(12.23) |
(4.03) |
(2.74) |
|
Net
asset value, end of period |
$16.85 |
$13.68 |
$22.18 |
$33.25 |
$22.69 |
|
Total
return |
23.17% |
(36.07)% |
4.20% |
64.63% |
30.26% |
|
Ratios/Supplemental
Data: |
|
|
|
|
|
|
Net
assets, end of period (000's omitted) |
$133,905 |
$117,234 |
$190,131 |
$201,803 |
$133,678 |
|
Ratio
of gross expenses to average net assets |
0.98% |
0.97% |
0.92% |
0.96% |
1.01% |
|
Ratio
of expense reimbursements to average net assets |
(0.02)% |
(0.02)% |
(0.02)% |
— |
— |
|
Ratio
of net expenses to average net assets |
0.96% |
0.95% |
0.90% |
0.96% |
1.01% |
|
Ratio
of net investment loss to average net assets |
(0.34)% |
(0.31)% |
(0.50)% |
(0.53)% |
(0.26)% |
|
Portfolio
turnover rate |
71.82% |
156.64% |
194.35% |
186.21% |
189.22% |
(i)
Class S Shares were
converted into Class I-2 Shares after the close of business on June 3,
2022.
(ii)
Amount was computed
based on average shares outstanding during the period.
Prospectus 45/47
The
Alger Portfolios
|
Alger
Small Cap Growth Portfolio Class I-2 |
Year
ended
12/31/23 |
Year
ended
12/31/22 |
Year
ended
12/31/21 |
Year
ended
12/31/20 |
Year
ended
12/31/19 |
|
Net
asset value, beginning of period |
$14.19 |
$27.88 |
$44.78 |
$28.69 |
$23.43 |
|
Income
from Investment Operations: |
|
|
|
|
|
|
Net
investment loss (i) |
(0.09) |
(0.13) |
(0.38) |
(0.22) |
(0.23) |
|
Net
realized and unrealized gain (loss) on investments |
2.43 |
(10.38) |
(2.65) |
19.39 |
7.10 |
|
Total
from investment operations |
2.34 |
(10.51) |
(3.03) |
19.17 |
6.87 |
|
Dividends
from net investment income |
— |
— |
— |
(0.40) |
— |
|
Distributions
from net realized gains |
— |
(3.18) |
(13.87) |
(2.68) |
(1.61) |
|
Net
asset value, end of period |
$16.53 |
$14.19 |
$27.88 |
$44.78 |
$28.69 |
|
Total
return (ii) |
16.49% |
(38.01)% |
6.06% |
67.15% |
29.34% |
|
Ratios/Supplemental
Data: |
|
|
|
|
|
|
Net
assets, end of period (000's omitted) |
$158,925 |
$149,271 |
$261,268 |
$331,123 |
$211,653 |
|
Ratio
of net expenses to average net assets |
1.02% |
1.00% |
0.95% |
0.96% |
0.98% |
|
Ratio
of net investment loss to average net assets |
(0.61)% |
(0.63)% |
(0.85)% |
(0.62)% |
(0.81)% |
|
Portfolio
turnover rate |
34.48% |
12.97% |
34.38% |
26.46% |
18.13% |
(i)
Amount was computed
based on average shares outstanding during the period.
(ii)
Does not
reflect
the effect of sales charges, if applicable.
Prospectus 46/47
The
Alger Portfolios
|
Alger
Growth & Income Portfolio Class I-2 |
Year
ended
12/31/23 |
Year
ended
12/31/22 |
Year
ended
12/31/21 |
Year
ended
12/31/20 |
Year
ended
12/31/19 |
|
Net
asset value, beginning of period |
$23.11 |
$29.53 |
$24.34 |
$21.58 |
$18.52 |
|
Income
from Investment Operations: |
|
|
|
|
|
|
Net
investment income (i) |
0.37 |
0.38 |
0.35 |
0.31 |
0.38 |
|
Net
realized and unrealized gain (loss) on investments |
5.11 |
(4.78) |
7.29 |
2.86 |
5.02 |
|
Total
from investment operations |
5.48 |
(4.40) |
7.64 |
3.17 |
5.40 |
|
Dividends
from net investment income |
(0.36) |
(0.37) |
(0.32) |
(0.30) |
(0.34) |
|
Distributions
from net realized gains |
(0.82) |
(1.65) |
(2.13) |
(0.11) |
(2.00) |
|
Net
asset value, end of period |
$27.41 |
$23.11 |
$29.53 |
$24.34 |
$21.58 |
|
Total
return |
23.93% |
(14.98)% |
31.66% |
14.88% |
29.47% |
|
Ratios/Supplemental
Data: |
|
|
|
|
|
|
Net
assets, end of period (000's omitted) |
$37,821 |
$32,577 |
$41,056 |
$34,210 |
$32,597 |
|
Ratio
of net expenses to average net assets |
0.93% |
0.93% |
0.86% |
1.00% |
1.02% |
|
Ratio
of net investment income to average net assets |
1.46% |
1.47% |
1.25% |
1.49% |
1.81% |
|
Portfolio
turnover rate |
2.81% |
3.65% |
5.19% |
9.92% |
7.33% |
(i)
Amount was computed
based on average shares outstanding during the period.
Prospectus 47/47
The
Alger Portfolios
|
Alger
Balanced Portfolio Class I-2 |
Year
ended
12/31/23 |
Year
ended
12/31/22 |
Year
ended
12/31/21 |
Year
ended
12/31/20 |
Year
ended
12/31/19 |
|
Net
asset value, beginning of period |
$16.40 |
$19.59 |
$17.05 |
$15.71 |
$13.67 |
|
Income
from Investment Operations: |
|
|
|
|
|
|
Net
investment income (i) |
0.26 |
0.20 |
0.16 |
0.21 |
0.25 |
|
Net
realized and unrealized gain (loss) on investments |
2.59 |
(2.41) |
3.09 |
1.39 |
2.41 |
|
Total
from investment operations |
2.85 |
(2.21) |
3.25 |
1.60 |
2.66 |
|
Dividends
from net investment income |
(0.26) |
(0.21) |
(0.16) |
(0.20) |
(0.23) |
|
Distributions
from net realized gains |
(0.06) |
(0.77) |
(0.55) |
(0.06) |
(0.39) |
|
Net
asset value, end of period |
$18.93 |
$16.40 |
$19.59 |
$17.05 |
$15.71 |
|
Total
return (ii) |
17.43% |
(11.31)% |
19.12% |
10.23% |
19.50% |
|
Ratios/Supplemental
Data: |
|
|
|
|
|
|
Net
assets, end of period (000's omitted) |
$55,996 |
$51,917 |
$62,321 |
$52,305 |
$49,475 |
|
Ratio
of net expenses to average net assets |
1.07% |
1.04% |
1.09% |
1.07% |
1.10% |
|
Ratio
of net investment income to average net assets |
1.46% |
1.14% |
0.88% |
1.34% |
1.67% |
|
Portfolio
turnover rate |
6.05% |
9.47% |
11.10% |
15.41% |
5.71% |
(i)
Amount was computed
based on average shares outstanding during the period.
(ii)
Does not reflect the
effect of sales charges, if applicable.
For
Information:
|
By
Telephone: |
(800)
992-3863 |
|
By
Mail: |
Alger
Family of Funds
c/o
UMB Fund Services, Inc.
P.O.
Box 2175
Milwaukee,
WI 53212-2175 |
|
Online |
Text
versions of Portfolio documents can be downloaded from the following
sources: |
|
|
•The
Portfolio: http://www.alger.com |
|
|
•SEC
(EDGAR data base):
www.sec.gov |
Statement
of Additional Information
For more detailed
information about each Portfolio and its policies, please read each Portfolio’s
SAI, which is incorporated by reference into (is legally made a part of) this
Prospectus. You can get a free copy of the SAI by calling the Portfolios’
toll-free number, at the Portfolios’ website at www.alger.com or by writing to
the address above. The SAI is on file with the SEC.
Annual
and Semi-Annual Reports
Additional
information about a Portfolio’s investments is available in the Portfolio’s
annual and semi-annual reports to shareholders and in Form N-CSR. In each
Portfolio’s annual report you will find a discussion of the market conditions
and investment strategies that significantly affected the Portfolio’s
performance during the period covered by the report. In Form N-CSR, you will
find a Portfolio’s annual and semi-annual financial statements. You can receive
free copies of these reports by calling the Portfolios’ toll-free number, at the
Portfolios’ website at www.alger.com or by writing to the address above. Copies
can also be obtained for a duplicating fee by E-mail request to
[email protected]. Portfolio documents are also available on the EDGAR database
on the SEC’s Internet site at www.sec.gov.
Quarterly
Portfolio Holdings
Each Portfolio’s most
recent month end portfolio holdings are available approximately sixty days after
month-end on the Portfolio’s website at www.alger.com. Each Fund also files its
complete schedule of portfolio holdings with the SEC for the first and third
quarter of each fiscal year as an exhibit to Form N-PORT and semi-annually on
Form N-CSR. Forms N-PORT and N-CSR are available online on the SEC’s website at
www.sec.gov. A copy of the most recent quarterly holdings may also be obtained
from the Portfolios by calling (800) 992-3863.
Distributor:
Fred Alger & Company, LLC
The Alger
Portfolios SEC File #811-5550
