ALGER SICAV Fund investing in Securities Listed or Traded on a United States Stock Exchange (Sociktd d’lnvestissemnent h Capital Variable) UNAUDITED SEMI- ANNUAL =PORT AS OF JUNE 30,2003 This report does not constitute an offer of shares. No subscription can be received on the basis of financial reports. Subscriptioiisare only valid if made on the basis of the current Prospectus, supplemented by the latest available audited annual report of the Fund and the latesi semi-annual report, if published thereafter.
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ALGER SICAV Fund investing in Securities Listed or Traded
on a United States Stock Exchange
(Sociktd d’lnvestissemnent h Capital Variable)
UNAUDITED SEMI- ANNUAL =PORT AS OF JUNE 30,2003
This report does not constitute an offer of shares. No subscription can be received on the basis of financial reports. Subscriptioiis are only valid if made on the basis of the
current Prospectus, supplemented by the latest available audited annual report of the Fund and the latesi semi-annual report, if published thereafter.
2
AI,CER SICAV
Contents
Organization of the Fmd
General hifo”ion
Directors’ Report to the Shareholders
Statement of Net Assets
Statements of Investments:
The Alger Anieiican Asset Growth Fund
Alger US Smallcap Fund
Alger US MidCap Fund
Algcr US LargeCap Fund
Alger US Technology Fund
Notes to the Financial Statements
7
9
11
13
15
17
3
1)irectorS
Investment Advisor
Portfolio Manager
Domiciliarv and
Transfer Agent
Lead Advisor&
ALCER SICAV
Organization of the Fund
Mr. Fred M. Alger 111, Chairman
The Viscount Bridport
James P. Connelly, Jr.
Fred Alger International Advisory S A . 49, Avenue J. F. Kennedy I, - 1855, Kirchberg, Luxembourg
Fred Alger Management, Inc. 11 1 Fifth Avenue, 2nd Floor New York, NY 10003
State Street Bank L,uxenibourg S.A. 49, Avenue J. E Kennedy L - 1855, Kirchberg, Luxembourg
State Street Bat& Luxembourg S.A. 49, Avenue J. F. Kennedy I, - 1855, Kirchberg, Luxemhourg
Crmtinenial Fund Services S.A. 52, Esplanade L - 9227 Diekirch Luxembourg
Enist & Young S.A. 6, me Jwn Monnet I, - 2180 Luxembourg
Elvinger, Hoss & Prussen 2, Place Winston Churchill U.P. 425 L - 2014 Luxembourg
Heir", KechtsanwPlte and Steuerberater Klein Fontenay 1 Hamburg. Germany 20354
4
ALGER SICAV
G.eneral Information
1. Thc following inforination, available upon request can be obtained at the registered office of Alger SICAV (the “Fund”), 49, Avenue J. E Kennedy, L-18% Kirchberg, Lu?cenibourg: a schedule of each investment portfolio’s activ- ity for the period from January 1, 2003 through June 30, 2003; the geographical classification of each i n w ” t portfolio’s positions as of June 30, 2003; and audited annual reports and unaudited semi-animal reports.
2. The genera1 meeting of shareholders is held annually in Luxembourg at the registered oftice of the Fund on the last Friday in April (or the next available business day if a bank holiday in Luxembourg). Notices will be sent by post to each registered shareholder at least 8 days Wore the date of the meeting. The notices set out the meeting agenda con- ditions, quorum and majority required in accordance with the provisions of the Luxembourg Law of August 10, 1915, as ameiided.
3. The Board of Directors does not intend to recommend the payment of any cash dividends at this time. Any net invest- ment income and any net realized and unrealized capital gains will be accumulated by the Fund and used to increase the Net Assd Value per Share. The shareholders of the Fund may, however, at a general meeting of shareholders, resolve to declare cash or stock dividends within the limits of applicable Luxembourg law. Notices of any dividends will be published in a newspaper of general circulation in Luxembourg.
4. The Net Asset Value per Share is expressed in U.S. Dollars, calculated daily and published regularly in the Financial E m s and/or in such other newspaper(s) as the Board of Directors may from time to time determine.
5. The Fund is registered at the Commercial Register of Luxembourg under number B 55.679.
6. Thc shares of the Fwnd are listed on the Luxembourg Stock Exchange.
ALGER SICAV
Directors’ Report to the Shareholders
near Shareholders, August 4,2003
A period that began with slow, steady economic growth; t.entative corporations: U.S. troops massing i n Iraq; and public anxiety about the outcome of‘ war ended with one of the better quarters for h e stock market in the past five years. Boh consumers and companies rcacted to the uncertainty of January and February by paring back, and the economy grew less than 15% during die first quarter. Rut the fall of Saddam Hussein’s regitne helped shift public psychology.
By late spring, buoyed by historically low interest rates of well under 44.i. on the 10-year Treasury note and by federal spend- ing atid tax cuts, consumers began to increase persotla1 consumption expenditiires and coriipanies showed signs of ramping up capital expenditures. Low interest rates also led to another wave of mortgage refinancing, which put more money into people’s pockets, and the Fcderal Reserve cut short-term rates. The result by the end of June was that consumer spending buoyed tlie ecotiorny wen in a time of weak employment and tumultuous inteniatiotial affairs. The economy grew 2.4% in the second par- ter: the markets responded 10 h e improved economic climate and to betier second quaner eiimings repofled by companies. For the six tnoiitlis ended June 30,2003, the Dow rose 9.040, the S&P 500 was up 11.8%, and tlie NASDAQ gained 2 1.5%.
Now, for the first time in over two years, Wall Street has begun to look to the future. Companies that can show healthy hal- sncc sheets and an ability to improve productivity and expand thcir businesses me becoming attractivc to investors. That is as it should be, but it tias tiof beeti the case for quite a while. The markets atid the country in general are beginning to emerge from two years that included a recession, terrorism, war, and coiporate scandals. Sentiinelit has slowly been shifting away from fcar and toward guarded hope. That shift should lead to support for higher levels for the equity markets. That does not tnean 3 return to irrational exuberirance, hut we think i l does rilean a more balanced market where good companies arid good stock picking are rewarded.
Respectfully submitted,
Dan C. Chung Cliicf Investment Officer
6
ALGER SICAV
Statement of Net Assets as of June 30,2003 (Unaudited)
(Expressed in U.S. Dollars)
The Alger American Alger US Alger US Alger US Alger US
Asset Growth SmallCap MidCap LargeCap Technology Notes Combined FWd Fund Fund FUId Fund
ASSETS
Investments in securities at cost Net uruealized gain Tnvestmneiits in securities at
mdfket VdlW
Receivable for investments sold Receivable for find shares sold Cash at balks
Dividends receivable Other assets
Formation expenses, net 2
Total Assets
LTABILTTES
Accrued cxpenses Payable for fund shares rcdeemed Payable for investments purchased
Total Liabilities
Total Net Assets
Number of shares outstanding:
Class A shares
Class B shares
Net asset value per shdre:
Class A shares
Class B shares
98,775,784 15,456,848
114,232,632
619,164 32,302
509,914 43,092 59,474
- 12,636
115,509,214
543,512 5,871
1,258,014
1,807,397
1 13,70 1,8 17
87,591,991 767,620 13,577,857 129,149
101,169,848 896,769
556,293 - 11,214 - 6,406 116,908
8 3 3 1 55,937 60 11,237 96 ~
10 1,8 10,935 1,022,664
459,726 7,347 5,871 -
1,243,395 11,957
1,708,992 19,304
100,101,943 1,003,360
57,003
15.80
15.37
95,700
4.75
4.62
5,028,982 915,301
5,944,283
62,871 5,139
188,014 8,831 1.275
574
6,210,987
36,547
2,662
39,204,
-
6,171,778
596,744
3,045,629 406,236
3,45 1,865
- 1,582 6,755 833 1 2,000
448
3,471,481
I_--
20,373 - -
20,373
3,451,108
443,382
287,283
7.04
6.86
169,824
5.66
5.55
2,341,562 428,3 05
2,769,#67
- 14,367
191,831 16,599
202 28 1
2,993,147
---111
19,519 - -
19,519
2,973628
324,788
204,120
--I-_
5.67
5.55
The accompanying notes are an integral part of these financial statements.
7
ALGER S K A V
THE ALGER AMERICAN ASSET GROWTH FUND
Statement of Investments as of June 30,2003 (Unaudited)
(Expressed In U.S. Dollais)
Kumber of % of Net Niimbrr of Yo oi Net Ddscrip tion Shares Markel Value Ahsets Description Shares Market Value AYSZU
Transperable securities listed on an official stock exchange or dealt in on another regulated market
COMMOS STOCKS
RT(YTF;CHS OZ,CK:F Amgen Inc. Genenrech, In<. (ienzymz COT. - General Division Gilead Sciences. Inc. 1mClone Systems Incorporntrd
COMMOY STOCKS (contimid)
FOOD 8 s r m m RETAILING 2.59 Wal-Mart Stores, Inc. 42,150 1.97
HEALTH CARE EQUrPMENT 1.64 1.37
Alcon, Inc. 16,500 0.4.5 Boston Scientih< Corporation 33.550
KIJ2 Guidant Curpaation 32,600
& SuPpLms
--- -
39,100 27.300 39,300 21.700 14.200
51,800 72,800 31.800
17,700
2597.805 1,968,876 1,652,740 1.372.826
449.004
2.26 ~
0.75 2.05 1.4 5
4.25 ~
~
2.83 _I--__
1.64
2,262,191
754,050
2,049,905 1,447,114
4,25 1,069
8.031 . x u
CAPITAL MARKETS Bank of New York
Company, In?. (The,
blellon Financial Corpotation M e i d Lynch & Co., IIK.
MT~C:STRlAI,
General Elecuic Company 9 8,800
1.49 2.02 1.48
CONGLOMISKATI3
4.99 INSURANCE - American International Ciroup, Inc. 29,700
INTERNET & CATALOG RETAIL 1.09 eRay Inc. 23,025 -
MTE:RNBT SOETWARE &
2.55 SERVICES 0.48 Ydioo! Inc. 44.700
1,4sJ ,30 :.010,2000 1.424.424
4.993.874 1,638,846
COMMERCLkL SERVICES & SUPMmS
Apollo Group. lnc. C1. A 2.40 ~
1.46 ._ _____ _____
2.1'1 1.84 0.50 1.42 (J.96
fi8Y ._" -.-. ~ ....
-
1.94 2.17 2.59 3.22
1 .TI 3.71
1.66 1.50
1,093.152 2,398,745
COMMLWCATION EQUIPMENT Cisco Systems, Inc. 152.700 Chmvzrse Techndogy, lac. ?2.100 Junipcr Nctworks, Inc. 99.500
2,538.563 482,463
1,230,815
4.26 1.84 I
1,4&,372. I .23
4.26 -
1.37 2.08 0.93 4.38
~
3.13 ~
1.74 1.13 0.71
"A .40L Time Warner lnc. Comcsst Corporation C1. A
General Moiors Corporation Cl. H 'Liberty Media Corporation Series A Virconi lnc. CY. €3
PHARMACEUTICALS Abbott Laboratories Allergan, Inc. Barr I.almrntories, Inc. Merck & Co., Inc. Mylan Laboratories Inc. P 6 m In<. Teva Pharmaceutical Indus~ries
Ltd. ADR Wyeth
DIWRSWWD FINANCIAL SERVICES
Citigroup Inc. 73,300
ESERGY EQtiIPMF,NT & SERVICES
Halliburton Company 75,600 Sinirh Imema1ional. Inc. 30,900 Transmcan Inc. 32,500
Eniulex Corporation 450 Enterasys Networks, Inc. 1,950
Comverse Techndogy, Inc. 950
k'ouiidry Networks, Iuc. 500 NetScreeu Technologies, Inc. 400
COMl'VTERS B PERlPIIERALS Western Digital Corporation 900
ELECTRICAL EQUIPMENT AMEIEK, lnc. 275
ELECTRONIC EQIXPMENT &
Benchmark Electronics, Inc. 3 S O FLIR Systems, Inc. 400
MSTRUUMEXTS
ENERGY EQUIPMEhiT & SERVICES
Vu-co Intanation.91. IN. 500 Cooper Cameron Corporation 200
FOOD PKOUUC'I'S American Italian Pasta Compny Cl. A
HEALTH CARE EQUIPMENT 8
AI-AKIS Medical, Inc. 600 Cytyc Corporation 700 Fisher Scientific International In<. 200 Kespironics, Inc. 300 STERIS Corporation 490 Wright Medical Group, Inc. 540
195
suPP1,IEs
HEALTH CARE PROVIDERS & SERVXclES LifeF'oint Hospitals, Inc. 550 Mid Atlanlic Medical Services, Inc. 3 00 VCA Antech, Inc. 650 Wsx, Incorporated 600
9,762
8,835 14,279 10,246 S.g(J9 7,200 9,020
65.25 1
9.270
10,079
10.766 12,060
22.826
10,076 9,800
19,876
8,122
7.770
7,364 6,980
11.256
11,3 14 10.260
54.944
11.517 1,690 12,720 10,410
50,337
0.97
0.88 1.42 1.02 0.5Y 0.72
0.90
6.50 -
0.Y 2 -
1 .oo -
1.0s 1.20
1.3 ~
-
1.00 11.9s
1.98 -
0.81 -
0.78
0.73 0.70 1.12 1.13
1.02
5.48 ~
1.15 1.56 1.27
1.04
5.02 - -
The accompanying notes are an hlcgrdl part d these financial statements.
10
ALGER SICAV
ALGER US SMALLCAP FUND
Statement of Investments as of June 30,2003 (Unaudited)
w,xpressed In US. Dollairs)
Number of % of Net Number of % of Net Description Shares Market Value Assets Description Shares Market Value .4sszts
Transferable securities listed on an official stock exchange or dealt in on another regulated market COM.M.ZON STOCKS (continued)
HUl'FLS. KF:SI'AIXAKTS L LEISURE
Alliance Gaming Corporation Applebee's Intermuonal, Inc. P.E chaug's I3hina Bisiro, Inc. Station Casinos, inc.
COMMON STOCKS (continiied)
PHAHMACEUTIC ACS Angiotedi Pharmaceuticals, Inc. Pharmaceutical Resources, Inc. SICOR Inc. Taro Pharmaceutical Industries Ltd.
350 285 750 230
600 950
380 345
340
280
885 390 400 262 300 650 200
462 350 180 650
200
$50 650 370 700
1.42 1.38 1.52 1.26
5.58 -
14.259 13,86Y 15,255 12,622
56.004
750 14,182 1.41 400 12.572 1 . 3 150 7,382 0.74
11,363 1.13
45.499 4.53 350 - -
__. - SEMICONDUCTOW & SEMICONDUCTUR EQUIPMFST
Fairchild S eniironductor Inteinational, Inc.
GlobespnVirata, Inc. Integrated Circuit Systems, luc. International Rectilier Corporation Power Integrations. Inc. Varian Semiconrimtor Equipment
Associates, Iw.
INFORMATIOX TECHNOLOGY SER\? CES
Alliance Data Systems Corporation 400 BISYS Group, Inc. (The) 780 ManTech Intcrmtionnl Coipration (7. A 550
0.93 1.43 1.05
3.41 -I
-
7,674 7.838 8.800
10,192 8,340
10.118
0.56 0.78 0.88 1.02 0.84
1.01
5.29 ~
-
0.86 0.85 0.7'1 1.34 1.01 0.93 0.25
6.83 ~
-
1.33 0.76 1.36 1.31
4.76 ~
9,360 14,329 10.549
31.335 1_-.-
INSllRAN CF: Arch C.spir.91 Group Ltd. W. R. Htrkley Corporation
350 180
550
450
275 375 n o
200 19s 400
290 320
1.21 0.95
2.16 -
12,154 9.486
21.W.0
53,012
8,646 8,561
13,480 10,128 9.3 14 2,532
60.523
7,868
SOFTWARE Borlmd Software Corporation Business Objects S A Sponsored N)K l>ocumzntiim. Inc. Fair Isaac Corporation Hyperion Solutions Corporation J. D. Edwards & Company Verity Inc.
lBTERNET SOJ3W'AI-W 8: SERVICES
Digital Insight Corporation
LEISURE EQVIPMIEXT 62
L.capfiog Enterprises, Inc.
MACHLVEHY Acnirnt Corporation C1. A AGCO Corporation Pzntair. Jnc.
PRODUCTS
1.04 - 10,377
1.43 ._I-
14,315
SWCIALTY RKTAIL AnnTaylor Stores Corporation PETCO Animal Supplies. Inc. Rent-A-Center, Inc. Too Inc.
1.30 0.64 1.05
2.09 _I
13,013 6,405
10,546
2Y,Y64 _I---
13,375 7.609
13,646 13,163 47.793
MFBI.4 Enterconi Communications Corp. Media General, Inc. c1. A Radio One, Inc. C1. A
Y ,802
11,154 1.144
0.98 1.11 0.7 1
2.80 - _..
I%:XTIIJES, APF'ARF.1, &
Coach, Inc.
TIIRETS & MORTGAGE FINANCE BankAtlantic Bancorp, Inc. CI. A Brookline Bancorp, Inc. Dora1 Financial Cop. First Niagara Fiiiancinl Group hc.
LUXURY GOODS 0.99
~
1.01 0.9 1 1.65 0.97
4.51 - -
89.38 ~
~
9.948
10,107 9, loo 16,521 9.712
OII, & GAS Noble Energy, Inc. Pogo Producing C'ompany
1.09 1.37 2.46 -
10,962 13,680
24.M2 4s.500
896,769 TUl'AL INVESTMENTS M SECURITIES
The accompanying notes are an integral part of these financial statements.
11
ALGER SJCAV
ALGER US MIDCAP FUND
Statement of Investments as of June 30,2003 (Unaudited)
(Expressed in U.S. Dollars)
Numbcr of B of'xet Number of % of Net Description Shares Markel Value Absetv Description Shares Market Value ASSZU:
Transferable securities listed on an official stock exchange or dealt in on another regulated market conmos s m x s
AEROSPACE: & DEKXSE I.-3 Communications Holdings. Inc.
.41tera Corporation Broadcnm Coq~oration C1. X Fairchild Semicanductnt
Intcrmtional, Inc. Inkrsil Corporation Q. A Fhokonics. Inc.
3.200 8,725
4.200
2,850
3,Y50
5,950
1.555 900 500
3 . 3 0
11,100
3,050 1.200
1,650
1.500 2,950
1,wo
5,800
1,200
3,550
1,850
2,950
116,768 222,924
339.692
58,OYG
93,366
151,452
125,650
123.5ZL 76,X 1
51,858
30,420 39,585
123,760
445,356
127,612 -13.596
171 .LO8
127,215 117.900 52,153
119,092
4 16,362
95,120
29,892
45.404
49.228
51,478
27 1.122
1.89 3.61
5.50 - -
0.94
1.51
2.45 - -
2.04 -
2.00
1.24
0.84 0.49
0.64
2.0 1
7.22 - -
2.07 0.70
2.77 ~
2.06 1.91 0.8s 1.93
6.75 - -
1.54
0.48
0.74
0.80
0.83
4.39 - -
COMMCIN STOCKS (continued)
SOFTVI-IAW- BEA Systems, Inc. Fait Isaac Corporation Imuit Inc. PeopleSolL Inc. Synopsys, Inc.
SPECIALTY RETAIL Abercrombie & Pitch Co. C1. A Advance Aiiro Pans, Inc. AmTaylor Stores Corporatmn Barnes & Nobles. Inc. Best Buy Co.. Inc. PETMART, Inc. Tinctor Supply Company IJrbnn Outfit". Jnc. Wili~ams-Sonomr. Inc.
64.845 1.88 Vodsfone Group P1.C Spoilsored ADR 3,300 .___I____I
TUTAL INVESTMFCNTS IN SECUR1TE.f: 3,451.865 100.02 -~
~~
Tbe accompanying notes are an integral part of these tinancia1 statements.
. ..
15
ALGER SXCAV
ALGER US TECHNOLOCY FUND
Statement of Investments as of June 30,2003 (Unaudited)
(Expressed in U.S. Dollars)
Number of % of Net Shares Msrkeu Value Assets Devcription
Number of S h e s Muket V ~ l w Dcncription
Transferable securities listed on an offlcial stock exchange or dealt in on another regulated market
COMMON SHARES COMMON SHARES (contiuued)
CAPITAL MARKETS PTRADE Group, Inc. 5,400
COM.MERICAL SERVICES Rr
.4md~s Limited 4,200 SUPPLIES
INTERNET & CATALOG RETAIL Amzon.com. Inc. NetFlix Inc. eBay Inc.
1.54 - 1.600 4,850
585
58,383 123,SlS 60.945
1.96 4.17 2.05
8.18 -.- -
4s.900
243,W7 3.39
~
1oo,soo LVNTERVE'T SOFTWARE L
S~UVICES webMethods, Inc. Yahoo! Inc.
C O M ~ N I C A T I O N EQLTF'MENT Advmccd Fibre Cornmunications. Inc. Brocade Communications Systems, Inc. Cisco Systems, lnc. Comversc Technology. Inc. Lucent Technologies lnc. Nokia Corporation, ADR Seachange Internationall: Inc. Tekclec Inc. Itllnl>s, lnc.
Pixar, Inc. Sinclair Broadcast Group, Inc. Cl. A Spanish Broadcasting System.
XVo Inc. XM Satellite Radio Holdings
PRODUCTS
Group C1. A
lnc. C1. A
Inc. C1. A
1.000 1.07 - 31,810
2.300 1,500 2200
-1i.7-1a 91,260 '5,542
1.61 3.07 (J.86
COMMVNICATION TKCHSOLWY SINA.com 1.m
COMPUTER SOE'TW4W L.egato Systems. Inc. 9.750
23,446 0.Y 2
2.75 12,450 5,900
101,463 71,862
3.41 2.42
81,802 --I-
COMPUTERS & PERIF'HEIULS Apple Computer. Inc. Dell Compirrr Corporation EMC Corporation Network Appliance. Inc. Sun Microsystems. Inc.
8,000 2.97
11.34 _I
- 1,650 2.745 5,200 2.500 5,850
1.06 2.95 1.83 1.36 0.9 I 8.11 - -
88,400
426.280 3 1.548 87,730 s4.445 40,525 26,910
241,157
SEMICONDUCTORS & SEM1CONI.W C'TOR EQUIPMJ?.NT
A k a Corporation Analog Devices Inc. Applied Materials. Inc. Broadcom Coiporahon Q. A Intel Corporation Ramhis lnc. 'hadyne, Inc.
1,780 900
3,100 1,300 2,820 3.150 1,550
0.98 1.65 1.06 1.09 1.97 I .76 0.90
9.41 __- -
29,192 31.338 49,166 32,383 58,611 52,195 26.830
279,715
ELECTHONIC EQUIPMEST &
Smmna-SCI Corporation
HEALTH CARE PROVIDERS &
WcbMD Corporation
IXFORWTION TECHYOLOGY
BISYS Group, Inc. (The)
INSTRUMENTS
SERVICES
SERVICES
9.300 1.97 - 58,683
7.550 2.75 8 1,767
3,M)O 1.86 - ss,110
The accompanying notes are an integral part of these tinancia1 statements.
16
Description
ALGER SICAV
ALGER US TECHNOLOGY FUND
Statement of Investments as of June 30,2003 (Unaudited)
(Expressed in U.S. Dollars)
Sumber of 5% ot Net Shares Market Value A,scts
~ ~~ ~
Transferable securities listed on an official stock exchange or dealt in on another regulated market
CO.MZION SHARES (continued)
somwt\RE BEA Systmr. Inc. Documentam. In:. Fair Isaac Corporation Microsoft Corporation Nuance Communications Inc. Oraclz Corporation PcopleSoft. Inc. Synopsys. IIK. VtiH17'AS Sofrwnrc Corporation
5,150 2.300
500 5,030 5,400 3,675 3,300 900
2.250
WIRELESS lmECO3LvUNICKrIOx
Nextel Communications Inc., (3. A
TOTAL IhWSThlENT
SERVICES 1.700
M SECUFUTES
55,929 45.241 25.725
128,818 29.160 44,173 58,047 55,665 @SO8
507.266
30.736
2,769,867
1.88 1.52 0.87 4.33 0.98 1.49 1.95 1.87 2.17
17.06 -
1.03 - 93.15 - -
The accompanying notes arc an integral part of' these financial statements.
17
ALCER SICAV
Xotes to the financial statements as of June 30,2003 (Unaudited)
Note 1: General
Alger SICAV, forinerly The A l p American Asset Growth Fund, (“the Fund”) was incorporated on July 26, 1996, in the Grand Duchy of Luxembourg as a Societe Anonyme with unliinited duration under the law of August 10, 1915, as amended. The Fund is organized as a Sociktb d’lnvestissement h Capital Variable (i.e. a cunipany with variable capid, commonly known as a “STCAS”). The Fund further qualifies as an “Undertaking for Collective Investment in Transferable Securities” (UCITS) under Part I of the Luxembourg law of March 30, 1988.
Thc Fund is registered under number B 55.679 at the Register of‘ Commerce at the District Court of Luxembourg, where its Articles of Incorporation are available for inspcction (as well as at the Fund‘s registered office at 49, Avenue J.F. Kenncdy, L-1855, Kirchberg, Luxcrnbourg). The Fund’s Articles of IIicorporation were amended on August 11, 2000 and this amciidment was published in the Mdmorial Recueil Spkial des Socitt& et Associations on September 22,2000.
Vie investmcnt objective of the sub-funds is to seek long-term capital appreciation by investing in a diversified, actively managed portfolio consisting principally of equity securities, which are publicly waded in the United States. The Board of Directors is responsible for the Fund’s overall investment policy and ensuring that the investment activi- ties are consistent with that policy.
The Fund is designed to provide an opportunity for investors outside the United States to take advantage of the profes- sional investmcnt expertise of the Portfolio Manager and its affiliates.
The Fund is an open-ended investment vehicle, which redeem its shares at the request of its Shareholders on a daily basis at a price hased upon the value of’ the Funds net assets.
Shares arc currently offered in the following sub-hds:
Sub-funds First NAV C:ilc-
Alger SJCAV --- The Alger American Asset Growth Fund (A) Alger SICAV - The Alga Anlerican Asset Growth Fund (B) Alger SICAV - Alger US SnlallCap Fund (A 62 B) Alger STCAV .-- Alger US MidCap Fund (A 8 B) Alga SICAV - R1gt.r US Largecap Fund (A & E) A l p SICAV - Alger US Technology Fund (A & B)
Aupst 19, 1996 November 16,2000 November 16,2000 November 16,2000 November 16,2000
June 1,2001
Note 2: Significant Accounting Policies
a) Presentation of accounb
The Fund maintains the books and records of each class of shares fox each sub-fund and prepares conibined financial slatenienes in U.S. Dollars (USD). Combined statements are obtained by the arithmetic sum of the fuisuicial statements of each individual sub-fund on a line by line basis.
The fmmcial statenieriis are presented in accord” with Luxembourg regulations relatiiig to investment funds.
18
ALGER SXCAV
Notes to the financial statements as of June 30,2003 (Unaudited) (continued)
b) Security v a l u m
Tlie Net Asset Value is determined as follows:
the value of any cash on hand or on deposit, bills and denmid notes, and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued and not yet received shall be deemed to be the full amount there- of, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof shall be arrived ai after making such discount as the Furid may consider appropriate hi such case to reflect the m e value thereof;
plus, hi: value of securities which are listed on any stock exchange or lrdded on any other regulated market shall be based on thc last reported sales price on the last trading day inmediately preceeding the relevant valuation day;
less, all liabilities of the sub-fund.
In the event that any of the securities held in the Fund‘s poafolio Im the relevant valuation day are not listed or traded on any stock exchange or another regulated market or if, with respect to securities on any stock exchange or on anorh- er regulated market. h e price as determined pursuant to the above nieiitiuiied procedures is not representative of the fair market value of securities, the securities will be valued based on the reasonably foreseeable sales price determined prudently and in good faith.
. . c ) Formation and Ory d. ’
Legal and other costs incurred in connection with the forination and reorganisation of the Fund are amortized over a five-year period on a straight-line basis.
d) SecUritI7 T r a n q a c t W Inve stment Incarne
Realized gains and losscs from securities transactions are recorded on the average cost basis. Dividend income is rec- ognized on h e ex-dividend date, less any applicable withholding taxes. Interest income is recognized on the accrual basis.
e) U s s A Sr Class B
Shares of the Fund are offered in two classes. Each class of Shares differs from onc another by the sales charge and redemption charge structure applicable 10 it. The issue proceeds of Class A shares arid Class B shares are invested in one common underlying portfolio of investments hut the net asset value of each class will differ as a result of different expense structures.
Class A Shares
Class A shares of he Fund are offered at an offcring price equal to the applicable Net Asset Value per Shaxe plus a sales charge of not more than 6.M3% of the total amount invested.
Class B Shares
Class B slims are offered at iltl offering pnce equal to the applicable Net Asset Vdue per Share and are subject to a dis- triburion fee. Class B shares are also subjecl to a Contingent Deferred Sales Charge should a shareholder dispose of such shares within a period of four yeais froin the date of purchase. Such expenses do not represent expenses of the Fund.
19
ALGER SKAV
Notes tu the financial statements as of June 3 4 2003 (Unaudited) (continued)
Note 3: Exchange rates
All investments, cash balances and other assets or liabilities of the Fund expressed in currencies oher than the USD have been valued after taking into account the mflket rates of exchange in force at the t h e for determination of the net asset value of shares.
Note 4: Advisory fees
The Fund pays the Irivestnlerit Advisor a fee payable monthly in arrears a1 an annual rate of 1.758 of the Fund‘s aver- age daily net assets during the relevant calendar month. Tlie Portfolio Manager has heen engaged by the Investment Advisor to provide daily investment and trading decisions for the Fund for which the PortFolio Manager is paid direct- ly by Lhe Investment Advisor.
Note 5: Luxembourg taxes
As a Luxembourg investment company, under present laws, the Fund is not subject to income taxes in Luxembourg, nor are hvidends paid by the Fund subject to any Luxembourg withholding taxes. h~OVerdbk taxes may be with- held at the source on dividends and intercst received on investment securities. According to the law of March 30, 1988, the Furid is subject to Luxnibourg subscription tax (taxe d’abonnement) at the rate of 0.0570 p r annum of its nct assets, such tax being payable quarterly on the basis of the total net assets at the end of the relewmt quarter.
Note 6: Dlstribution Fees and Brokerage Commissions
A distribution fee with respect to Class B shares is payable to Fred Rlger & Company, Incorporated, an affiliate of the Investment Advisor, out of the assets of each sub-fund at an annual rdte of 1% of the sub-furid’s average daily net asset value attributable to such class as reimbsement for activities and expenses incurred selling the Class B shares. The Fund paid approximately $23,000 in distribution €ees for the six nioriths ended June 30, 2003.
During the six nionths ended June 30,2003. the Fund paid Fred Alger & Company, Jncorporated approxhately $151,000 in commissions in connection with securities transactions at an average commission rate of 0.16%. ‘Rie aggregate value of such truisactions was approximately $95,479,849 and represented 14.1 % of the total value of all security transactions during the six months ended June 30,2003.
'RIG Fund did not engage in soft corntnission transactions during the six months e,nded June 30, 2003.
Note 7: Custodian and Accounting Fee
State Street Luxembourg S.A. has been appointed custodian and accounting agent for the Fund. In renumeration of its services, Slate S w e t Luxembourg S.A. receives a fee based on the net assets of the Fund, payable monthly. This fee is in line with Luxembourg market practice.