Alger american asset growth i share 9.30.12

Alger American Asset Growthgas of September 30, 2012

Inspired by Change, Driven by Growth.

A dAgenda

1. An Introduction to Alger

2. Consistent, Proven, Repeatable Process

3. American Asset Growth Fund

4. Why Algery g

5. Exhibits

For Institutional Presentation Purposes Only. Not for Distribution to the Public.

I t d ti t AlIntroduction to Alger

Who We Are

• Growth investors since 1964

• Singular focus on growth investment management

• Independent, privately held firm

• Original, proprietary analyst-driven research g p p y y

• More than 30 experienced investment professionals

• Currently manages more than $16 billion in assets y g $

For Institutional Presentation Purposes Only. Not for Distribution to the Public.1

Th Al Phil hThe Alger PhilosophyCompanies Undergoing Positive Dynamic Change Offer the Best Investment OpportunitiesInvestment Opportunities

High Unit Volume Growth• Growing Demandh Sell• Strong Business Model• Market Dominance• Free Cash Flow Positive Life Cycle Change

• Product Innovation• New Regulationsin

gs/G

row

t

Buy

Sell

Sell

e egu a o s• New Management• AcquisitionE

arn

Slow GrowthComing of Age EstablishedBuy

Time


I t t TInvestment Team

CEO, CIO

Dan Chung, CFA

Portfolio Managers Client Portfolio ManagersPortfolio ManagersJill Greenwald, CFA

(26)Small Cap SMid Cap

Patrick Kelly, CFA (15)

Capital AppreciationSpectra

Dynamic Opportunities

Greg Adams, CFA (25)

Dynamic Opportunities Growth & Income

William Rechter, CFA(41)

Kevin Collins, CFA(19)

Deborah VélezMedenica, CFA

(16)Emerging Markets

China-U.S.

Client Portfolio Managers

Analysts – Sector SpecialistsTechnology/ Consumer Health Care

Energy/Materials/ Industrials Financials Risk Emerging

Telecom Consumer Health Care Materials/Utilities

Industrials Financials Management Markets

Ankur Crawford, Ph.D (8)*John McPeake (18)*J.P. Gravitt (11)Sh bh Gh h (11) *

Chris Walsh, CFA (15)Darryl Ah Now, CFA (12)Michael Melnyk, CFA (13)P t K h (11)

Maria Liotta (14)*Joel Emery, CFA (16)Soon Hyouk Lee (6)

Michael Young (27)Eric Richards, CFA (13)Andrew Merrill, CFA (5)

Alex Goldman (14)Ravi Tanuku (7)*Steven Yang (8)*P t Ch CFA (9)

Brian Schulz, CFA (11)Ankur Javeri (6)

Greg Adams, CFA (25)Larry Vigus (13)Steven Thumm (25)

Siang Meng Tan, CFA (17)*Carla Cantreva-Baessler (19)David Molnar, CFA (15)

Shubho Ghosh (11) *Ben Reynolds (10) Tariq Chaudhri (2)

Peter Kahng (11)Anna Gurvich (4)*

Peter Chang, CFA (9)


(X) = Years of investment experience* These analysts also have relevant industry experience.

3

Al A l tAlger Analysts

Analysts are the foundation of our process

• Sector experts

– Follow industry as a whole and cover all market caps

16– “One Team” working on every Alger portfolio

– Academic, financial, and industry backgrounds

1416SENIOR ANALYST

15 Years*• We are different: an Analyst-driven culture and process

– Renowned Alger Training Program 14ANALYST14 Years*

ASSOCIATE ANALYST 9– Continuous collaboration with Portfolio Managers

– Passionate, disciplined, and creative

Career position: compensation and responsibility ASSOCIATE ANALYST9 Years*

RESEARCH ASSOCIATE

95

– Career position: compensation and responsibility equal in level to portfolio managers


RESEARCH ASSOCIATE5 Years*5

* Average investment and industry experience of Alger investment professionals

4

I t t PInvestment Process


Th h B tt F d t l A l iThorough Bottom‐up Fundamental Analysis

Our Analysts provide:

• In-depth knowledge of the sector

• Comprehensive understanding of a company

• Detailed external evaluation


D l i Diff ti t d ViDeveloping a Differentiated View

Our Analysts:

• Assess company fundamentals using detailed, proprietary financial models

– Detailed five-year P&L, balance sheet, and cash flow models

– Discounted cash flow analysis

– P/E ratio analysis vs. industry and historical ranges

• Evaluate potential risk/reward using multi-scenario growth analysisg y

• Provide Bull, Bear, and Base case

Our Analysts apply proprietary methodology using:

• Alger rating system

Q lit ti i t

Our Analysts apply proprietary methodology using:


• Qualitative inputs

7

M lti S i A l iMulti‐Scenario Analysis

Includes full five-year models for:

• Revenue • Earnings• Free cash flow• Sector and company-specific inputs

Alger Analysts develop Bull, Bear, and Base

d l f llcase models for all companies they follow


A l t & P tf li M Di lAnalyst & Portfolio Manager Dialogue

Analyst-Driven Culture

• Portfolio Managers challenge Analysts, test conviction

• Together they:

– Prioritize sector selections

– Normalize information across sectors

– Apply risk management oversight

“At Alger, our Portfolio Managers and Analysts work in close collaboration to drive performance for our clients.”

Dan Chung CEO


Dan Chung, CEO

9

P tf li C t ti & Ri k M tPortfolio Construction & Risk Management

Buy decisions

• Best ideas: Strongest Positive Dynamic Change companies

• Highest conviction: Differentiated view supported by proprietary research

• Driven by Analysts and Portfolio Managers• Driven by Analysts and Portfolio Managers

Sell decisions

• Achieved target price• Achieved target price

• Fundamentals deteriorate

• New idea with greater risk/reward potential• New idea with greater risk/reward potential


P tf li C t ti & Ri k M tPortfolio Construction & Risk Management

We manage portfolio risk through:

• In-depth knowledge of companies

• Broadly diversified holdings

• Sector, industry, and security limits

• Dedicated risk managerg

• Portfolio optimization


I t t PInvestment Process


P tf li Ch t i tiPortfolio Characteristics

MARKET CAPITALIZATION PORTFOLIO LIMITS

Range of companies within the Russell 3000 Growth Index

40% maximum in any sector20% maximum in any industryRussell 3000 Growth Index10% maximum in any position

SECTOR WEIGHTINGS TRACKING ERRORSECTOR WEIGHTINGS

Generally participates in all sectors

TRACKING ERROR

5% to 8% relative to benchmark hi t i llhistorically

HOLDINGS CASH

Typically around 90-120 positions Frictional; typically less than 5%


P fPerformance

Alger American Asset Growth FundPortfolio Update as of 9/30/12

Annualized Returns

YTD* 1 Year 3 Year 5 Year Since

Inception**

Alger SICAV American Asset Growth I 19.1% 31.1% 12.6% 2.5% 4.2%

Russell 3000 Growth 16.6% 29.4% 14.7% 3.2% 3.7%

Excess Return +2.5% +1.7% -2.1% -0.7% +0.5%

Lipper MultiCap Growth 16.0% 24.8% 12.5% 1.2% 2.1%

Excess Return +3.1% +6.3% +0.1% +1.3% +2.1%

* Not Annualized. **Since Inception: 5/18/07


* Not Annualized. **Since Inception: 5/18/2007

14

P tf li S t W i htPortfolio Sector Weights

Alger American Asset Growth As of 9/30/12g

Difference (%)

Information Technology 31.8 -1.7

Portfolio (%) Russell 3000 Growth (%)

30.1

Consumer Discretionary 16.4 3.9

Health Care 12.6 -0.8

Industrials 12.1 -1.0

20.3

11.8

11.1

Financials 4.5 5.5

Consumer Staples 12.1 -4.8

Energy 4 2 0 14 3

10.0

7.3

Energy 4.2 0.1

Materials 3.8 -0.8

Telecommunication Services 2.2 -0.2

4.3

3.0

2.0

Utilities 0.2 -0.20.0


P tf li H ldiPortfolio Holdings

Alger American Asset Growth 9/30/2012

Apple Inc.

I t ti l B i M hi C

Top 10 Holdings Portfolio (%)

8.2

3 0International Business Machines Corp.

Google Inc.

Amazon.com Inc.

3.0

3.0

2.8

Express Scripts Holding Co.

Philip Morris International Inc.

Pfizer Inc

2.1

1.9

1 9Pfizer Inc.

Honeywell International Inc. 1.8

1.8

1.9

eBay Inc.

Capital One Financial Corp. 1.7


5 Y P f St ti ti5 Year Performance Statistics

9/30/2012

Characteristic Portfolio Russell 3000 Growth Portfolio Morningstar Ranking (%)*

Return 2.46% 3.22% 12

Alger American Asset Growth

Alpha -0.65 N/A 13

Information Ratio -0.14 N/A 14

Sharpe Ratio 0.2 0.23 10p

Batting Average 53.3 N/A 3


*Morningstar European Open End US Large Cap Growth Equity Universe / Alger American Asset Growth (Class I Shares)

17

Wh AlWhy Alger

Why Alger?

• Experienced growth investors since 1964

• Independent, proprietary, fundamental research

• Vibrant, research intensive culture

• Consistent, proven and repeatable processp p p

• Focused on our clients’ best interests

• Dedicated to helping our clients achieve their investment goalsp g g


P tf li M tPortfolio Management

Daniel C. Chung, CFAg,Chief Executive Officer, Chief Investment Officer, Portfolio ManagerInvestment experience: 18 yearsDaniel C. Chung is Chief Executive Officer and Chief Investment Officer. He is Portfolio Manager of theAlger Mid Cap Growth, Alger Health Sciences, Alger Large Cap Growth, Alger SMid Cap Growth, AlgerChina-U.S. Growth, Alger Analyst, Alger Dynamic Opportunities, and Alger Growth & Income portfolios.Dan joined Alger in 1994 and has 18 years of investment experience. He was named Chief InvestmentOfficer in September 2001, President in 2003, and CEO in 2006. Dan graduated from Stanford Universityand earned his J.D. from Harvard Law School in 1987. After completing law school, he served a one--year term as Judicial Clerk for the Honorable Justice Anthony M. Kennedy, United States SupremeCourt. He joined Simpson Thacher & Bartlett LLP in New York City in 1989 and earned an L.L.M. fromNew York University Dan is a CFA charterholder and a member of the CFA InstituteNew York University. Dan is a CFA charterholder and a member of the CFA Institute.

Jill Greenwald, CFAExecutive Vice President, Portfolio ManagerInvestment experience: 26 yearsp yJill Greenwald is Executive Vice President and Portfolio Manager specializing in small capitalizationstocks. She currently manages Alger’s Small Cap and SMid Cap Growth portfolios, including the AlgerGrowth Opportunities Fund and the Alger Small and SMid Cap Growth Funds. She first joined Alger in1986 and has 26 years of investment experience. Jill, who returned to Alger in 2001, began her career inAlger's analyst program, rising from Research Associate to Senior Analyst. She joined Prudential EquityI i 1992 h h Di I 1993 h j i d Ch A M h hInvestors in 1992 where she was a Director. In 1993, she joined Chase Asset Management where sherose from Analyst to Managing Director and Senior Portfolio Manager of Chase Vista Small Cap EquityFund and Co-Manager of Chase Vista Small Cap Opportunities Fund. She joined J&W Seligman & Co.as a Senior Vice President, Investment Officer and Co-Manager of Seligman Emerging Growth in 1999.Jill graduated with a B.A. from Yale University and earned her M.B.A. at New York University. Jill is aCFA charterholder and a member of the CFA Institute.


CFA charterholder and a member of the CFA Institute.

P tf li M tPortfolio Management

Patrick Kelly, CFAy,Executive Vice President, Portfolio ManagerInvestment experience: 15 yearsPatrick Kelly is Executive Vice President, Portfolio Manager of the Alger Capital Appreciation and AlgerSpectra strategies, and Portfolio Manager of Alger Dynamic Opportunities Fund. He joined Alger in 1999and has 15 years of investment experience. Previously, Patrick was an investment banking analyst withSG Cowen. He began his career at Alger as a Research Associate and completed Alger’s in-houseanalyst training program. In early 2001, Patrick was promoted to Associate Analyst and Assistant VicePresident, and in September of 2001 he was promoted to Senior Analyst. As a Senior Analyst, he wasresponsible for the Technology sector. Patrick was named Manager of Alger’s multi-cap portfolios inSeptember 2004. He graduated with honors from Georgetown University. Patrick is a CFA charterholderand a member of the CFA Instituteand a member of the CFA Institute.

Gregory S. Adams, CFASenior Vice President, Portfolio Manager, Director of Quantitative and Risk ManagementInvestment experience: 25 yearsGregory Adams is a Senior Vice President, Portfolio Manager of the Alger Dynamic Opportunities Fund,g y g g y ppthe Alger Growth and Income Funds, and Director of Quantitative and Risk Management. Greg joinedAlger in 2006 and has 25 years of experience. Previously, he was Director of Quantitative Research atLord Abbett & Co., and was responsible for portfolio construction simulation and quantitative stockselection. Over the course of his career, Greg was Managing Director and Portfolio Manager at DeutscheAsset Management and The Chase Manhattan Bank. At Deutsche, where he managed over $10 billion in

t h th l d P tf li M f th U S L C C F d i l di S dd ’assets, he was the lead Portfolio Manager for the U.S. Large Cap Core Funds, including Scudder’sflagship Growth & Income Fund. Greg began his tenure at Chase in 1987 as an equity analyst and waspromoted to Co‐Manager of the Chase Vista Balanced Fund and the Chase Vista Growth & IncomeFund, managing over $2 billion during his tenure. In 1994, Greg was named Manager of the Chase VistaLarge Cap Equity Fund. Greg earned a B.A. in American History from the University of Pennsylvania’sSchool of Arts & Sciences. He graduated from The Wharton School with a B.S. in Economics and


gFinance. Greg is a CFA charterholder and a member of the CFA Institute.

P tf li M t

Steven Thumm

Portfolio Management

Steven ThummSenior Vice President, Portfolio Manager, Head of Equity TradingInvestment experience: 25 yearsSteve Thumm is Senior Vice President and Head of Equity Trading. He is also Portfolio Manager of thefixed-income portion of Alger’s Balanced Portfolio. Steve joined Alger in 1991 and has 25 years ofinvestment experience. Previously, he worked at Marine Midland Bank as a Vice President in thedomestic treasury division and managed the Bank’s domestic funding operations. Steve graduated fromHofstra University.

Deborah A. Vélez Medenica, CFASenior Vice President, Portfolio ManagerInvestment Experience: 16 yearsDeborah A. Vélez Medenica is Senior Vice President and Portfolio Manager of the Alger EmergingMarkets Strategy and the Alger China-U S Growth Fund She joined Alger in December 2010 and hasMarkets Strategy and the Alger China-U.S. Growth Fund. She joined Alger in December 2010 and has18 years of experience in emerging markets. Prior to joining Alger, Deborah worked at PineBridge and itspredecessor, where she rose from investment analyst to portfolio manager to the head of emergingmarket equities. Prior to PineBridge, she worked as an analyst for Baring Asset Management, TorontoDominion Bank, and Cambridge Associates. Deborah graduated with an A.B. from Harvard-RadcliffeCollege, earned her M.A. in International Economics and Latin American Studies from Johns HopkinsSchool of Advanced International Studies, and earned her M.B.A. at The Wharton School. In addition,Deborah is a CFA charterholder and a member of the CFA Institute.


Cli t P tf li M tClient Portfolio Management

Kevin D. Collins, CFAKevin D. Collins, CFASenior Vice President, Client Portfolio ManagerInvestment experience: 19 yearsKevin D. Collins is Senior Vice President and Client Portfolio Manager. Prior to his role as Client PortfolioManager, he was Portfolio Manager of the Income and Growth portfolios and the equity portion of Alger'sBalanced portfolios. Kevin joined Alger in 1996 as an analyst covering industrials and business services.He has 19 years of investment experience Prior to joining Alger Kevin was an equity analyst at TheHe has 19 years of investment experience. Prior to joining Alger, Kevin was an equity analyst at TheBank of New York. He received his B.A. degree from the University of Pennsylvania and earned hisM.B.A. from Northwestern University. Kevin is a CFA charterholder and a member of both the CFAInstitute and the New York Society of Security Analysts.

William Rechter, CFASenior Vice President, Client Portfolio ManagerInvestment experience: 41 yearsBill Rechter is a Senior Vice President and Client Portfolio Manager. He joined Alger in 2005 and has 41years of investment experience. Prior to joining Alger, Bill worked at ING Investment Management as ayears of investment experience. Prior to joining Alger, Bill worked at ING Investment Management as aSenior Vice President and Senior Portfolio Specialist representing the Value, Growth, and Internationalinvestment teams. Over the course of his career, Bill has been the Chief Investment Officer of HillviewCapital Advisors, Managing Director and Senior Portfolio Manager at SG Cowen Asset Management,and President of Sperry Capital Management Corp. He has also held analytical and portfoliomanagement positions at Value Line, Lehman Brothers, U.S. Trust Company and ManufacturersHanover Trust Company. Bill graduated with a B.B.A. in finance from the University of Massachusettsand earned his M.B.A. in finance and investments from the New York University Graduate School ofBusiness. He is a CFA charterholder and a member of the CFA Institute.


A l t Bi hiAnalyst BiographiesAnkur Crawford, Ph.D.Senior Vice President, Co-Portfolio Manager, Senior AnalystSector: Technology/Telecom

Michael YoungSenior Vice President, Co-Portfolio Manager, Senior AnalystS t E /M t i l /UtilitiSector: Technology/Telecom

Investment Experience: 8 yearsIndustry Experience: 1 year (engineer with Intel Corp.)Alger Tenure: Since 2004Education: B.S. , University of California, Berkley; Ph.D., Stanford University

Sector: Energy/Materials/UtilitiesInvestment Experience: 27 yearsAlger Tenure: Since 2008Education: B.A., Dartmouth College

Mi h l J M l k CFAMaria LiottaSenior Vice President, Portfolio Manager, Senior AnalystSector: Health CareInvestment Experience: 14 yearsIndustry Experience: 4 years (partner in an optometry practice)

Michael J. Melnyk, CFASenior Vice President, Senior AnalystSector: ConsumerInvestment Experience: 13 yearsAlger Tenure: 2001-2005, and since 2007y p y (p p y p )

Alger Tenure: Since 2010Education: B.S., University of Pittsburgh; B.S. and Doctor of Optometry, Pennsylvania College of Optometry; M.B.A., Joseph M. Katz Graduate School of Business

Christopher R Walsh CFA

Education: B.B.A., University of Notre Dame

Brian Schulz, CFASenior Vice President, Senior AnalystSector: Financials

Christopher R. Walsh, CFASenior Vice President, Portfolio Manager, Senior AnalystSector: ConsumerInvestment Experience: 15 yearsAlger Tenure: Since 2001Ed ti B S U i it f V t

Investment Experience: 11 yearsAlger Tenure: Since 2004Education: A.B., Harvard University

Education: B.S., University of Vermont


A l t Bi hiAnalyst BiographiesJoel Emery, CFAVice President, AnalystS t H lth

John P. McPeakeVice President, Senior AnalystS t T h l /T l Sector: Healthcare

Investment Experience: 16 yearsAlger Tenure: Since 2012Education: B.S., State University of New York at Plattsburgh; M.B.A., Fordham University

Sector: Technology/TelecomInvestment Experience: 18 yearsIndustry Experience: 6 years (including 5 years as COO, Equity Intelligence at Thomson Financial)Alger Tenure: Since 2007Ed ti B A H ilt C ll M B A N Y k U i it St

Alex GoldmanVice President, AnalystSector: IndustrialsInvestment Experience: 14 years

Education: B.A., Hamilton College; M.B.A., New York University Stern School of Business

Darryl Ah Now, CFAVice President, Analyst

Alger Tenure: Since 2011Education: B.S., Columbia University School of Engineering and Applied Science; M.B.A., Columbia University School of Business

J.P. Gravitt

Sector: ConsumerInvestment Experience: 12 yearsAlger Tenure: Since 2005Education: M.B.A., University of Chicago

Vice President, AnalystSector: TechnologyInvestment Experience: 11 yearsAlger Tenure: Since 2012Education: B.S., Vanderbilt University; M.B.A., University of Chicago

Carla Cantreva-BaesslerVice President, AnalystSector: Emerging MarketsInvestment Experience: 19 yearsAlger Tenure: Since 2010 y y ggEducation: B.A., Faculdade de Tecnologia de São Paulo; B.A., FundacaoGetulo Vargas; M.B.A., New York University Stern School of Business


A l t Bi hiAnalyst BiographiesDavid B. Molnar, CFAVice President, AnalystS t E i M k t

Peter Chang, CFAAssociate AnalystS t I d t i lSector: Emerging Markets

Investment Experience: 15 yearsAlger Tenure: Since 2011Education: B.A., Haverford College; Diploma, Economics, London School of Economics and Political Science; M.A., Fletcher School of Law and Diplomacy Tufts University

Sector: IndustrialsInvestment Experience: 9 yearsAlger Tenure: Since 2012Education: B.B.A., University of Michigan Business School

Diplomacy, Tufts University

Eric Richards, CFAVice President, AnalystSector: Energy/Materials/Utilities

Tariq ChaudhriAssociate AnalystSector: Technology/TelecomInvestment Experience: 2 yearsAlger Tenure: Since 2012

Investment Experience: 13 yearsAlger Tenure: Since 2007Education: B.A., Saint Olaf College; M.B.A., Georgetown

Siang Meng Tan, CFA

Education: B.S., University of California at Los Angeles; M.B.A., Columbia Business School

Shubho GhoshAssociate Analyst

Vice President, AnalystSector: Emerging MarketsInvestment Experience: 17 yearsIndustry Experience: 3 years (relationship manager, offshore/onshore business at Citibank)

Sector: Technology/TelecomInvestment Experience: 11 yearsIndustry Experience: 3 years (senior financial analyst at International Rectifier Corporation, manufacturer of power semiconductors)Alger Tenure: Since 2011

Alger Tenure: Since 2010Education: B.S., Indiana University; M.B.A., University of North Carolina

gEducation: B.A., University of Delhi; M.B.A. and M.S., University of Southern California, Marshall School of Business


A l t Bi hiAnalyst BiographiesPeter KahngAssociate AnalystS t C

Ben ReynoldsAssociate AnalystS t T h l /T lSector: Consumer

Investment Experience: 11 yearsAlger Tenure: Since 2012Education: A.B., Harvard University; M.B.A., Stanford Graduate School of Business

Sector: Technology/TelecomInvestment Experience: 10 yearsAlger Tenure: Since 2011Education: B.S., University of Virginia McIntire School of Commerce; M.B.A., New York University Stern School of Business

Soon Hyouk LeeAssociate AnalystSector: Health CareInvestment Experience: 6 years

Ravi TanukuAssociate AnalystSector: IndustrialsInvestment Experience: 7 years

Alger Tenure: Since 2011Education: A.B., Dartmouth College; M.B.A., Harvard Business School

Andrew Merrill, CFAAssociate Analyst

Industry Experience: 3 years (director of business development/product marketing at Offyx, an application hosting/server-based computing company)Alger Tenure: Since 2008Education: B.S., Columbia University School of Engineering & Applied Science; M.B.A., University of Chicago Booth School of Business

Sector: Energy/Materials/UtilitiesInvestment Experience: 5 yearsAlger Tenure: Since 2010Education: B.S., Boston College Wallace E. Carroll School of Management

Larry VigusAssociate AnalystSector: Risk ManagementInvestment Experience: 13 yearsAlger Tenure: Since 2000Education: B.A., Moravian College


A l t Bi hiAnalyst BiographiesSteven YangAssociate AnalystS t I d t i lSector: IndustrialsInvestment Experience: 8 yearsIndustry Experience: 7 years (senior auditor, KPMG LLP in the healthcare and life sciences sector, and an analyst and strategic planning specialist at Stanford University Medical Center)Alger Tenure: Since 2005Alger Tenure: Since 2005Education: B.A., Yale University; M.B.A., New York University Stern School of Business

Anna GurvichResearch AssociateResearch AssociateSector: ConsumerInvestment Experience: 4 yearsIndustry Experience: 2 years (financial analyst (hardline, broadline, grocery retailing) at Banc of America Securities, and associate, equity research (gaming lodging and leisure) at Oppenheimer & Co Inc )(gaming, lodging, and leisure) at Oppenheimer & Co., Inc.)Alger Tenure: Since 2010Education: B.S., Cornell University School of Hotel Administration

Ankur JaveriR h A i tResearch AssociateSector: FinancialsInvestment Experience: 6 yearsAlger Tenure: Since 2007Education: B.A., New York University College of Arts and Science



SICAV American Asset Growth Fund

Portfolio ManagerPatrick Kelly, CFA

ISINClass A LU0070176184Class I LU0295112097

The Alger SICAV American Asset Growth Fund seeks long-term capital appreciation by focusing on companies of any size that show promising growth potential. Investing in companies of all capitalizations involves a risk that smaller, newer issuers in which the Fund may invest might have limited product lines or financial resources, or lack of management depth.

Investment Goal

The following commentary discusses theAlger SICAV American Asset Growth Fund(Class A and I Shares)

Year-To-DateNot Annualized 1 Year 3 Year 5 Year 10 Year Since

InceptionClass A (Incept. 8/19/1996)Class I (Incept. 5/18/2007)

Russell 3000 Growth Index

Total Annual Fund Operating Expenses Class A Class I

Class A Class I

Average Annual Returns

During the year ended December 31, 2011, the Portfolio Manager voluntarily agreed to reimburse the sub-funds if annualized expenses, excluding transaction fees, exceeded 2.90% of average net assets for Class A shares. As of November 2011, the Investment Advisor voluntarily agreed to reimburse the sub-fund if annualized expenses exceeded 1.10% of average net assets for Class I shares. Past performance is not an indication of future results. The performance figures given are a measure of the change in net asset value (NAV) of the Fund and do not take into account taxes and sales charges. Performance figures are not based on audited financial statements and assume reinvestment of distributions, if any. For performance current to the most recent month-end, visit www.alger.com.

Lipper Fund Awards are based on the highest Consistent Return as determined by the Lipper Leader methodology for the five-year period ended Dec. 31, 2011. Lipper calculates Consistent Return based on funds’ short- and long-term risk adjusted performance relative to their fund classification. Computations include the Hurst-Holder exponent and effec tive return. Lipper is a Thomson Reuters company that provides mutual fund information, analytical tools and commentary.

Since 8/19/96Since 5/18/07

Alger SICAV Recognition The Alger American Asset Growth A

Lipper Fund Awards 2011 Best Equity North America Fund Over Five Years: Austria • Germany • Spain • Switzerland

Lipper Fund Awards 2010 Best Equity North America Fund Over Five Years: Spain • France • Netherlands

Lipper Fund Awards 2008 Best Equity North America Fund Over Five Years: Austria • France • Hong Kong • Germany • Spain

3rd Quarter 2012

(Prospectus Dated December 2011) 2.07% 1.13%

2.07% 1.10%

18.22% 29.84% 11.51% 1.36% 9.01% 7.59%

19.07% 31.08% 12.64% 2.46% N/A 4.18%

16.59% 29.35% 14.69% 3.22% 8.57% 5.77%

Without Expense Cap

With Expense Cap

as of September 30, 2012.

(as of 9/30/2012)

3.72%

Alger SICAV American Asset Growth Fund

Market Environment Expectations for economic stimulus from central banks in Europe, China, and the U.S. helped support equity markets during the third quar-ter, although the ebb and flow of optimism regarding actions to address the euro-zone debt crisis enhanced market volatility. Concerns over slowing economic growth in the U.S. also weakened investor sentiment. On a positive note, corporate spending discipline offset the impact of declining revenues, which allowed many S&P 500 Index constituents to post resilient second-quarter earnings. Also during the quarter, the Federal Reserve announced plans for a third round of quantitative easing to stimulate economic growth and to support the U.S. residential housing recovery. Homebuilders, meanwhile, have reported order growth of 30% to 40% and low-single-digit price increases. At the same time, the CoreLogic National HPI in August climbed 4.6% year-over-year and the National Association of Home Builders/Wells Fargo Housing Market Index, which measures confidence among home builders, climbed to levels last seen in July of 2006.

Strategy ReviewThe Alger SICAV American Asset Growth Fund Class A and I generated a 6.84% and 7.09% return, respectively, for the third quarter of 2012, outperforming the Russell 3000 Growth Index. For the year-to-date period ended September 30, Class A and Class I shares gene-rated an 18.22% and a 19.07% return, respectively, outperforming the Russell 3000 Growth Index.Our investment strategy seeks compelling opportunities among companies that can benefit from large-scale trends, including increasing Internet use, economic growth in emerging markets, and an improving U.S. housing market. In addition, we seek companies with attrac-tive cash yields. Cash yield is the total amount of cash returned to shareholders through stock buybacks and dividends divided by a company’s market capitalization. Many of the Strategy’s holdings have cash yields in excess of 10-year Treasury bonds. During the quarter, we also pursued companies with dominate brands and exposure to quickly growing emerging markets. We continued with that theme during the quarter, but we continued to maintain reduced exposure to certain companies that are involved in real estate and infrastruc-ture development. We feel doing so is prudent in light of potential economic deceleration among certain emerging market countries. Our theme of pursuing companies that are benefiting from growing Internet use was additive to performance, with Apple Inc., Google Inc., and Amazon Bay Inc. being among top contributors to absolute performance. Apple is well known for designing and manufactu-ring personal computers, tablets, and portable phones, including the popular iPhone. Its shares declined early in the quarter as inves-tors were disappointed by the company’s quarterly results. Later in the third quarter, however, anticipation of potentially strong sales resulting from the launch of the iPhone 5 supported enthusiasm for the stock. Search engine provider Google, meanwhile, benefited from significant growth in search activity and click volumes, driven by increased mobile search activity and the growth of the Android ecosystem. Investors also responded favorably to the company’s plans for restructuring Motorola Mobility and new product initiatives like Chrome for iOS, paid listings for Google Shopping, and improved ad formats for YouTube. Amazon, which is the world’s largest online retailer, also benefited from increasing Internet activity. Its share price initially declined after it posted second quarter results that illustrated the impact of unfavorable currency exchange rates and one-time charges. Investors eventually focused on the company’s strong quarterly earnings, however, which supported Amazon share prices. While many Information Technology holdings benefited from increasing Internet use, the sector did have positions, including Lam Research Corp., that detracted from absolute performance. The company provides wafer fabrication equipment and services for manufacturers of semiconductors. Its stock performance weake-ned after the company said it expects slowing economic growth and a decline in capital expenditures by semiconductor companies to adversely impact earnings. Shares of U.S. railroad operator CSX Corp. also detracted from results. CSX shares performed poorly after the company said it has experienced slowing volume growth, primarily due to a decline in coal volume and a competitive transportation environment. Also detracting from performance was UnitedHealth Group Inc., which is a diversified health insurer and health services company. It posted favorable revenue and earnings growth for the second quarter and it provided encouraging earnings guidance. It also continued its stock repurchase program. Yet, its share price declined during the third quarter, which we believe was a result of investors selling shares for profit taking.

Going ForwardEconomic growth has moderated and is expected to remain sluggish which, we believe, is likely to contribute to equity market vola-tility. Concerns over the ongoing euro zone crisis are likely to contribute to volatility. We maintain, however, that those concerns have been priced into equities and that equities are attractively valued. At the end of the third quarter, more than 55% of S&P 500 Index constituents had stock dividend yields that exceeded the yields of 10-year Treasuries. At the same time, many companies are using their sizeable cash balances and strong free cash flow to return capital through stock buybacks and dividends. As of September 30, the S&P 500 had a price-to-earnings ratio of about 16 based on the latest 12-month earnings, compared to the 50-year average of about 19. With that in mind, we continue to believe that equities have strong potential for generating attractive performance over the long term.

Commentary as of September 30, 20123rd Quarter 2012

Alger SICAV American Asset Growth Fund

Top 10 Holdings Sector Allocations

Contribution to Return and Attribution Analysis

Source: Factset

Top Contributors & Detractors

Contributors Detractors

Source: FactSet

Apple Inc. New Oriental Ed. & Tech. Group Inc. ADSGoogle Inc. Cl A Lam Research Corp.Amazon.com Inc. UnitedHealth Group Inc.Express Scripts Holding Co CSX Corp.Stanley Black & Decker Inc. United Parcel Service Inc. Cl B

(for the Quarter ended 9/30/12)

(as of 9/30/2012) (as of 9/30/2012)

Apple Inc. Information Technology8.16% 30.10%3.04% 20.28%2.96% 11.81%2.76% 11.27%2.10% 9.95%1.93% 7.31%1.85% 4.30%1.79% 3.00%1.77% 1.97%1.72% 0.00%

International Business Machines Corp. Consumer DiscretionaryGoogle Inc. Cl A Health CareAmazon.com Inc. IndustrialsExpress Scripts Holding Co FinancialsPhilip Morris International Inc. Consumer StaplesPfizer Inc. EnergyHoneywell International Inc. MaterialseBay Inc. Telecommunication ServicesCapital One Financial Corp. Utilities

(for the 1-Year Period as of 9/30/12)

Commentary as of September 30, 20123rd Quarter 2012

Alger SICAV American Asset Growth Fund Russell 3000 Growth Index Attribution AnalysisAverage Weight (%) Contribution to Return (%) Average Weight (%) Contribution to Return (%) Total Effect (%)

Information Technology 26.84 11.10 29.42 9.29 2.07Consumer Discretionary 16.20 5.63 14.94 4.42 1.21Industrials 13.37 4.10 12.76 3.47 0.76Consumer Staples 8.17 2.37 11.88 2.72 0.59Financials 6.30 1.65 4.38 1.32 0.22Utilities 0.00 0.00 0.12 0.02 0.02Telecommunication Services 1.89 0.56 1.37 0.38 -0.03Materials 4.01 1.09 4.87 1.62 -0.19Health Care 11.68 4.08 11.62 3.84 -0.19Energy 8.19 1.16 8.65 2.23 -0.90

Fred Alger Management, Inc. is widely recognized as a pioneer of growth-style investment management. We have been an independent, privately owned firm since our inception in 1964. For more than 45 years, we have had three leaders with one vision: maintaining the legacy and continuity of the Alger Investment Philosophy. We strive to deliver consistently superior investment results for our clients. Investment management is our only business. We believe our independence enables us to remain true to our investment beliefs.

About Our Firm

Class A shares are subject to a maximum front-end sales charge of up to 6.00%. Class I shares do not have sales charges.The Russell 3000® Growth Index is an unmanaged index designed to measure the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000® Index measures the performance of the 3,000 largest U.S. com-panies based on the total market capitalization, which represents 99% of the U.S. equity market. Index performance does not reflect deduction for fees, expenses, or taxes.Investors cannot invest directly in the index.No shares in this Fund may be offered or sold to U.S. persons or in jurisdictions where such offerin-gor sale is prohibited. U.S. persons include citizens or residents of the United States of America. For a proper definition of U.S. Person, see the Fund’s prospectus. Investment in the Fund may not be suitable for all investors. Investors with any doubts with regard to suitability should contact their independent investment advisors. Nothing in this fact sheet should be construed as advice. Important information for UK investors: The Fund does not have a place of business in the United Kingdom and is not authorized under the Financial Services Act 1986 (the “Act”). As a consequence, the regulatory regime governing an investor’s rights with respect to the Fund (and its similarly unauthorized overseas agents) will be different than that of the United Kingdom. Investors will not, for example, be entitled to compensation under the United Kingdom’s Investors Compensation Scheme. The Fund is an unregulated collective investment scheme under the laws of the United Kingdom and, therefore, can be promoted in the United Kingdom only to persons in accordance with the Act and the Financial Services (promotion of Unregulated Schemes) Regulations 1991 (the “Regulations”). Accor-dingly, this fact sheet may not be distributed in the United Kingdom other than to persons authorized to carry on investment business under the Act, persons whose ordinary business involves the acqui-sition and disposal of property of the same kind as the property or a substantial part of the property in which the Fund invests and persons permitted to receive this fact sheet under the Regulations. In

addition, this fact sheet may not be issued or passed on in the United Kingdom to any person, other than to persons to whom the fact sheet may otherwise lawfully be issued, unless that person is of a kind described in Article 11(3) of the Financial Services Act of 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended).Investing in the stock market involves gains and losses and may not be suitable for all investors.

This fact sheet is furnished to you by Fred Alger & Company, Incorporated, the distributor of Alger SICAV. This fact sheet is authorized for distribution only when accompanied or preceded by a cur-rent prospectus of the Fund, which contains more information about investment objective, risks, charges, and expenses. Please read the prospectus carefully before investing. Sales of shares in the Fund, the subject of this fact sheet, are made on the basis of the prospectus only and this fact sheet does not constitute an offer of shares in the Fund. An investment in the Fund entails risks, which are described in the prospectus. Investors may not get back the full amount invested and the net asset value of the Fund will fluctuate with market conditions. Exchange rate fluctuations and Fund charges also affect the return to the investor. The holdings are subject to change. There is no assurance that the Fund’s objectives will be achieved.As of 9/30/2012, the following stocks represented the noted percentages of Alger American Asset Growth Fund assets: Apple Inc., 7.03%; Google Inc. Cl A, 2.93%; Amazon.com Inc., 2.67%; Express Scripts Holding Co, 2.13%; eBay Inc., 1.72%; New Oriental Education & Technology Group Inc. ADS, 0.00%; Lam Research Corp., 0.69%; UnitedHealth Group Inc., 1.72%; Tangoe Inc., 0.00%; and CSX Corp., 0.90%.The National Association of Home Builders/Wells Fargo Housing Market Index gauges builders’ sales expectations and perceptions of current single-family home sales. The CoreLogic National HPI tracks sales prices of existing residential real estate.

Fred Alger Management, Inc. • 360 Park Avenue South, New York, NY 10010 800.992.3863 (Retail) • 800.223.3810 (Institutional) • www.alger.com10.12.12 AASICAV3Q2012


Thomas Edison accumulated over 1,000 patents during his lifetime, a result, inlarge part, of his legendary work ethic. He exhibited a skill for identifying and pur-suing rewarding opportunities and possessed the following keen insight intowhy many individuals fail to capitalize on opportunities: “Opportunity is missedby most people because it is dressed in overalls and looks like work.” His insightis highly relevant to investors because equity markets, we believe, are providingattractive opportunities. Yet, many investors continue to reduce their U.S. equityexposure and by holding cash and bond investments with zero real return poten-tial, sit on the sidelines. We aren’t surprised as these are indeed difficult economictimes and the equity market is challenging.

In our Spring 2012 Market Update commentary, we said that markets were duefor yet another pullback after a 12% rally earlier in the year brought the S&P 500Index above 1400 for the first time since the 2008 Financial Crisis. We believedthat markets would focus on macroeconomic concerns in China and Europe,deceleration of the U.S. economy, and uncertainty over political elections. In thecommentary, we also advised our readers that, in our opinion, such volatilitycould provide yet another buying opportunity in U.S. equities. In the days follow-ing the publication of our commentary, investors apparently became focused onChina, the euro zone, and other concerns, causing the S&P 500 to drop 9.58%from May 3 to June 1. For the near term, the selloff in May and June was shorterlived than many investors, including our firm, expected. Low trading volumesand, more importantly, hope for significant stimulus from the U.S. FederalReserve, the European Central Bank, and other authorities allowed equity mar-kets to recover from nearly all of the earlier decline, with the S&P 500 again climb-ing above 1400 and gaining 11.01% for the year-to-date period ended July 31.

Corporate Fundamentals and Second-Quarter Results

At Alger, we believe that corporate fundamentals ultimately drive market per-formance. Companies, of course, operate within the broader economic environ-ment of the U.S. and the global marketplace. 2012 is, in fact, a key point in thismarket cycle following the Financial Crisis. While corporate America continues to“outperform” the broader economy, the slowing economy, and uncertaintyamong consumers and businesses regarding the economy are having a negativeinfluence. In the second quarter, we saw a continuation of challenges to revenuegrowth across many industries. Economic concerns caused consumers and busi-nesses to act in a predictable fashion: Individuals became apprehensive aboutspending and businesses became cautious over hiring employees and making

Low trading volumes and,

more importantly, hope for

significant stimulus from

the U.S. Federal Reserve,

the European Central Bank,

and other authorities

allowed equity markets to

recover from nearly all of

the earlier decline, with

the S&P 500 again climbing

above 1400 and gaining

11.01% for the year-to-date

period ended July 31.

Fall 2012 Market Update

1 For more details, see Alger commentary titled “Spring 2012 Market Update.”

Earnings Resiliency Creates Attractive Opportunities

2

This backdrop of a slow

growth economy,

however, is one in which

we believe our investment

philosophy is well

equipped to thrive.

Year-Over-Year Percentage Change inQuarterly S&P 500 Revenues Figure 1

2Q12 -3.71

1Q12 6.62

4Q11 8.25

3Q11 11.87

2Q11 10.60

1Q11 8.63

4Q10 6.34

3Q10 7.29

2Q10 9.92

1Q10 10.91

4Q09 9.68

Source: J.P. Morgan

S&P 500 Negative Revenue Surprises

Num

ber o

f Neg

ative

Surp

rises

100

150

200

250

300

350

2Q121Q124Q113Q112Q111Q114Q103Q102Q101Q104Q093Q092Q091Q09

Figure 2

Source: Factset

capital outlays. Corporate revenues reflect that trend—on a year-over-year basis,total second-quarter 2012 revenue for S&P 500 companies declined 3.71%, accord-ing to J.P. Morgan (See Fig. 1). It was the first quarterly decline since the depths ofthe subprime mortgage crisis. For the quarter, 274 companies issued negative rev-enue surprises, the highest level since the first quarter of 2009, according toFactSet (See Fig. 2). During the second quarter of 2012, 52% of S&P 500 companiesrevised revenue guidance downward, while 48% revised guidance upward. Thiswas a continuation, slightly moderated, from the first quarter of 2012, when 60%revised downward. However, the easy growth in revenues and earnings is clearlygone, especially when comparing recent results to the second quarter of 2011,when only 35% of S&P 500 companies revised downward. Unlike quarterly earn-ings and revenues during the post 2008 Financial Crisis recession, more recentresults reflect stronger economic conditions. As a result, corporations now haveharder comparables to beat when evaluating results on a year-over-year basis.Moderating GDP growth is also expected to make it harder for corporations togenerate substantial revenue and earnings growth.

This backdrop of a slow growth economy, however, is one in which we believe ourinvestment philosophy is well equipped to thrive. Our fundamental investmentstrategy keeps us focused on finding compelling investment opportunities amongcompanies that are best suited to excel in these challenging times of slow eco-nomic growth and increasing concerns over fiscal policy. By conducting in-depthresearch, we believe we have potential to find companies that can grow earningsand revenues by gaining market share. As dedicated, long-term growth investors,furthermore, we are attuned to the investment opportunities that challengingeconomies offer to companies capitalizing on innovation and change.

3

Encouragingly, many

companies generated

strong bottom-line

results, or at least

results better than

many feared.

A Closer Look at Certain Sectors

A closer look at the results announced by companies in a couple of sectors high-lights many of the points we’ve made over the years in Alger market commen-taries. No broad “average” or single statement, of course, can summarize theresults of a sector as broad as Consumer Discretionary, so we will instead give anoverview of typical earnings reports for the quarter. Warnaco Group, Coach Inc.,and Starbucks Corporation were among companies that announced softness incustomer spending. Warnaco has brands such as Speedo and Calvin Klein and itreported weak second-quarter results for Europe and the U.S. Even with positiveperformance in Asia and Latin America, its net revenues declined 5% on a year-over-year basis, which was in line with Warnaco’s expectations. Warnaco manage-ment warned that it is balancing its expectations for new product launches withits outlook for “a muted consumer environment in North America and a softeningglobal macroeconomic.” Fashion accessory leader Coach also reported disap-pointing same store sales in the U.S., where traffic to its factory outlet storesdeclined and discounts were required to entice customers to spend. Coach’sstrong Asia results, fortunately, helped the company increase year-over-year sales12%. Starbucks, meanwhile, said it is bracing for a decline in consumer spendingand it lowered its earnings per share guidance to $0.44 to $0.45 from prior guid-ance of $0.46 to $0.47. For the fiscal quarter ended July 1, Starbucks said it gener-ated a 13% net revenue increase and noted that same store sales in China grewonly 12%, compared to 18% in the prior quarter. Economic softness in Europe,meanwhile, pressured results of many companies such as PVH Corp., which offersCalvin Klein and Tommy Hilfiger merchandise, and Ralph Lauren Corporation,which offers clothing and home decorating accessories. Ralph Lauren manage-ment noted that “the outlook for consumer spending and global economicgrowth remains challenging and we are planning our business accordingly.” Aftera multiyear run of double-digit growth in revenues and earnings, Ralph Lauren’sgrowth may be in the mid-single digits in 2012.

Encouragingly, many companies generated strong bottom-line results, or at leastresults better than many feared. We have commented before that this economicrecovery is marked by strong corporate cost controls, resulting in an excellentlevel of profitability and cash flow in well-managed companies. That’s continuedeven as top line revenue growth moderates (overall revenue growth for the con-sumer sector was 5% in the second quarter). For example, discount clothingretailer TJX Companies generated a 24% increase in net income, even though netsales increased only 9%, and restaurant operator Brinker International, Inc. grewnet revenues only 1.5%, but managed to increase net income approximately 12%.For the overall sector, bottom-line results, as measured by net income, increasedless than 1% on a year-over-year basis, which makes the strong earnings of com-panies such as Brinker International and TJX even more noteworthy.

One bright spot has been the U.S. housing sector. In our Summer 2011Commentary, we reasoned that the real estate market was close to bottoming. At

4

the time, we believed that increasing affordability of homes would eventually sup-port a recovery in housing. Since then, homebuilder stock prices, broadly speaking,have increased. Looking ahead, we believe the U.S. housing recovery will be a mul-tiyear trend. Just as the downturn took four to five years to finally bottom, so will therecovery, we believe, take time to unfold. Approximately 750,000 residential units,including multifamily properties, are being constructed on an annualized basis,which is a very depressed level compared to the typical levels of about 1.5 millionnew homes built prior to 2008. In some of the most depressed locations, new homebuilding has been down 70% or 80% from peak, and even with a potential 20% to30% increase over the next few years, would still be well below peak levels. Withextraordinarily low mortgage rates and improving, but still poor, availability of bankfinancing, we see a long runway for recovery. Second quarter earnings among pub-licly traded homebuilders were excellent. We continue to like this area of the U.S.economy, though we believe that the stocks are due for a pause with many tradingat five-year highs as of the publication of this commentary.

Reasons for Optimism

In addition to the Consumer Discretionary examples discussed above, many com-panies have preserved profitability by cutting costs as revenues moderate. Evenwith the year-over-year second-quarter revenue decline of the S&P 500, earningsgrew, granted the increase was less than 1% (See Fig. 3). Also during the secondquarter, only 38% of S&P 500 companies had earnings misses, even though 52%of companies reported revenue misses. In comparison, the highest number ofearnings misses since the first quarter of 2009 was 39%, which occurred in the lastquarter of 2011. For that quarter, however, an impressive 64% of companiesmissed revenue targets.

In our assessment, corporate fundamentals remain surprisingly strong, amidst atruly difficult global environment. The caution instilled in corporate managementmeans that earnings and margins, while trimmed in many cases, have remainedsurprisingly healthy when considering the economic background in the U.S. and

In our Summer 2011

Commentary, we

reasoned that the real

estate market was close

to bottoming. At the

time, we believed that

increasing affordability

of homes would

eventually support a

recovery in housing.

Since then, home-

builder stock prices,

broadly speaking,

have increased.

S&P 500 Earnings Grow Despite Revenue Weakness

Billi

ons (

$)

150

200

250

2Q121Q124Q113Q112Q111Q114Q103Q102Q101Q10

Figure 3

Source: J.P. Morgan

5

(1) Includes persons with a high school diploma or equivalent.(2) Includes persons with bachelor’s, master’s, professional, anddoctoral degrees.Note: Updated population controls are introduced annually withthe release of January data.

July 2012 Unemployment (Seasonally Adjusted) Figure 4

Education % of Work Force

Less than high school 12.7

High school graduate, no college 1 8.7

Some college or associate degree 7.1

Bachelor’s degree or higher 2 4.1

Total Unemployment Rate 8.3

around the world. With no wage pressures, moderating input costs, and sufficientproduction capacity, slowing revenue growth is simply not having a devastatingimpact on corporate earnings or cash flow, which is contrary to the previous fore-casts of many pundits. At Alger, we continue to maintain—and we believe thesecond quarter illustrates this point—that strong corporate earnings are adurable, not cyclical, aspect of the post 2008 Financial Crisis period. The economyand corporate revenues, granted, are struggling against a headwind of weakemployment growth in the U.S., but we remind readers that unemployment ishighly bifurcated between college- and non-college educated individuals.Among college-educated Americans, unemployment is not an issue and remainslow at 4.1%, compared to the overall rate of 8.3% (See Fig. 4).

In April, we reported that we were anticipating a weak job market and noted thatsignificant uncertainty would linger over how equity markets may react to decel-erating corporate earnings. Here, the market has been, in our view, exceedinglyresilient in the face of slowing growth and lack of any real progress on Europe andU.S. fiscal policy. In particular, despite the media’s and equity markets’ fixation onevery word, movement, or meeting by European regulators and politicians, andthe lack of any substantive action by such actors to address the worsening eco-nomic issues in Greece, Spain, Italy, and other troubled countries in Europe, themarkets have responded quite favorably.

It’s clear to us that we have an unusual combination of factors driving a reason-able, though not broad based or high volume, rally off of market lows of June.First, European Central Bank President Mario Draghi in July raised global marketexpectations that the organization may engage in extensive bond buying, or inother words, European style quantitative easing. Second, fear of a collapse of theeuro and the euro-zone economic fallout has created yet another flight to safetythat has caused U.S. Treasury yields to fall to the lowest rates in more than 50years, with 10-year Treasury yields at 1.51% on July 31, 2012 (See Fig. 5). The lowrates are widely recognized as likely being negative after factoring inflation. As aresult, we think U.S. equities have benefitted, albeit ever so slightly, frominvestors shunning additional Treasury buys while fleeing European and emerg-ing markets exposure.

Going ForwardWe are pleased by equities’ resiliency, though guessing stocks’ direction based onthe actions of regulatory and political leaders in Europe leaves us, as we were inApril, uneasy. While we would like to think that June represented a short-termbottom for U.S. equities, we continue to think that the current rally, at a minimum,will retest those lows sometime soon because of macroeconomic issues and a lack of clarity over government fiscal policies. However, the data we have gathered and the fundamentals that we have observed in the second quarter are,in our view, an extremely helpful guide of current conditions and conditions in 2013.

Source: U.S. Bureau of Labor Statistics

6

We now have even greater conviction that any dip, in particular any occurring inthe next few months, should be aggressively bought. The current resiliency ofthe markets shows not, as some would suggest, that markets purely move withmacro factors or with the statements of politicians in Europe, but with corporatefundamentals, which we believe are solid in the U.S. S&P 500 earnings remain ata $100 earnings level, despite cuts to GDP growth forecasts that were recentlyreported. With an over 2% dividend yield (which is superior to two- and 10-yearU.S. Treasuries), and a 13 price-to-earnings ratio based on 2012 earnings, webelieve there simply isn't much downside risk to owning quality U.S. equities rel-ative to other major asset classes. Corporate and, increasingly, consumer balancesheets in the U.S. remain flush with cash and underinvested. But that cash hoard,in our view, is increasingly being used in a most sensible way at a time whensome investors, including noted bond manager Bill Gross of PIMCO, say equitiesare losing their appeal. In his August investment outlook, Gross claimed, “Thecult of equity is dying” and “investors’ impressions of stocks for the long run orany run have mellowed as well.” The statement is an about-face for Gross, whotwo years ago said equities were likely to outperform bonds.

We are encouraged to see companies either start paying dividends or increasedividends. Many companies are also buying back stock at an aggressive rate. Theresult, we believe, is to put a fundamental floor on the U.S. stock market. We arehighly encouraged by what we've seen in corporate fundamentals and marketreactions. Regulators across the world are raising the rhetoric about slowing eco-nomic growth and in many parts of the world, such as China and Brazil, policiesare clearly moving to a simulative stance. In other parts, like Europe, it’s mostlyrhetoric that is supporting equity market gains, but we increasingly think stimu-lus from policymakers is likely. We maintain that it is not time to sell equities assome suggest. Rather, it is time to buy if you have a time horizon that goesbeyond a year, and buy more on market dips if you already own equities. Duringthis back to school season, it is time to embrace equities and the rigorous work

We now have even

greater conviction that

any dip, in particular

any occurring in

the next few

months, should be

aggressively bought.

0123456789

10111213141516

January1962

January1972

January1982

January1992

January2002

July 312012

10-Year Treasury Constant Maturity Rate

Figure 5

Source: Federal Reserve Bank

7

of conducting in-depth, fundamental research that we believe can find attractiveopportunities. And it’s time to diversify away from a likely losing asset class thatis offering historically low yields: U.S. Treasuries.

Respectfully submitted,

Daniel C. Chung, CFAChief Investment OfficerFred Alger Management, Inc.

Fred Alger & Company, Incorporated is the parent company of Fred Alger Management., Inc. The views expressed arethe views of Fred Alger Management, Inc. as of September 2012. Alger has used sources of information which itbelieves to be reliable; however, this publication is not intended to be and does not constitute investment advice.These views are subject to change at any time and they do not guarantee the future performance of the markets, anysecurity or any funds managed by Fred Alger Management, Inc. | These views should not be considered a recommen-dation to purchase or sell securities. Individual securities or industries/sectors mentioned, if any, should be consid-ered in the context of an overall portfolio and therefore reference to them should not be construed as arecommendation or offer to purchase or sell securities. References to or implications regarding the performance ofan individual security or group of securities are not intended as an indication of the characteristics or performance ofany specific sector, industry, security, group of securities or a portfolio and are for illustrative purposes only. | The S&P500 Index is an unmanaged index generally representative of the U.S. stock market without regard to company size.Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, ortaxes. Investing in companies of all capitalizations involves the risk that smaller, newer issuers in which Alger investsmay have limited product lines or financial resources or lack of management depth. | Risk Disclosure: Certain Algerstrategies may invest in stock issued by companies in foreign countries, including emerging markets. Special risksassociated with investments in foreign country issuers, including issuers in emerging markets, include exposure tocurrency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive companyinformation, political instability and different auditing and legal standards. Foreign currencies are subject to riskscaused by inflation, interest rates, budget deficits and low savings rates, political factors and government controls. |Past performance is no guarantee of future results. | Investing in the stock market involves gains and lossesand may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks, as the prices ofgrowth stocks tend to be higher in relation to their companies’ earnings and may be more sensitive to market, polit-ical and economic development. | Stocks of the companies mentioned may or may not currently be held due to liq-uidity, inclusion in a benchmark, or in response to cash flows. J.P. Morgan is a bank that provides research and marketdata to investors. PIMCO is an asset management firm. FactSet provides financial data and analytics to the globalinvestment community. As of July 31, 2012, the following holdings represented the noted percentages of firm wideassets under management: The Warnaco Group, 0.06%; Coach Inc., 0.08%; Starbucks Corporation, 0.27%; PVH Corp.,0.38%; Ralph Lauren Corporation, 0.16%; TJX Companies, 0.00%; and Brinker International, Inc., 0.03%.

Before investing, carefully consider a fund’s investment objective, risks,charges and expenses. For a prospectus or a summary prospectus containingthis and other information about a fund, call us at (800) 992-3863 or visit us atwww.alger.com. Read it carefully before investing. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.Fred Alger & Company, Incorporated, Distributor. Member NYSE Euronext, SIPC.


Who We Are Fred Alger Management, Inc. is widely recognized as a pioneer of growth- style invest-ment management. We have been an indepen dent, privately owned firm since ourinception in 1964, main taining the legacy and continuity of the Alger Invest mentPhilosophy.

We strive to deliver consistently superior investment results for our clients.Investment management is our only business. We believe our independence enablesus to remain true to our investment beliefs.

Alger SICAV OverviewSeptember 30, 2012

Investment Philosophy We believe that companies undergoing Positive Dynamic Change offer investors thebest long-term growth potential. We find Positive Dynamic Change in:

• Companies experiencing High Unit Volume Growth—These companies are experienc-ing a growing demand, have a strong business model, enjoy market dom inance, andhave high free cash flow.

• Companies undergoing Positive Life Cycle Change—New management, product innova-tion, or a new acquisition are all hall marks of Positive Life Cycle Change. They may alsobenefit from new regulations.

We believe in extensive, original, and fundamental research.

Our People and ProcessAnalysts are the foundation of our investment process. They are:

• Sector specialists and industry experts who are responsible for companies through out allmarket caps.

• Passionate, disciplined, and creative individuals, constantly seeking a “differ entiated view.”

• In continuous communication with port folio managers, uncovering, generating, andrecom mending new ideas, and monitoring portfolio stock performance.

SLO

W G

ROW

TH

Coming of Age Established

TIME

EARN

ING

S/G

ROW

TH

BUY

SELL

SELL

BUY

INVESTING IN POSITIVE DYNAMIC CHANGE

SICAVOV 3Q12

Lipper Fund Awards are determined by the Lipper Leader methodology for thethree-, five- and 10-year periods ended December of the previous year the awardwas given. The currency for the calculation corresponds to the currency of thecountry for which the awards are calculated and relies on monthly data.Classification averages are calculated with all eligible share classes for each eligibleclassification. The calculation periods extend over 36, 60, and 120 months. Thehighest Lipper Leader for Consistent Return (effective Return) value within eacheligible classification determines the fund classification winner over three, five, orten years. For a detailed explanation please review the Lipper Leaders methodolo-gy document on www.lipperweb.com. Fund classification awards are given to thecompany that has the day-to-day responsibility of investing and monitoring theassets under management within the fund’s portfolio in order to achieve theinvestment objectives of the fund. This company is also referred as portfolio man-agement company or investment advisor. The award goes to the fund manage-ment company in case that no such company has been appointed or several suchcompanies share the task. Lipper is a Thomson Reuters company that providesmutual fund information, analytical tools and commentary.

No shares in this Fund may be offered or sold to U.S. persons or in jurisdictions where such offering or sale is prohibited.U.S. persons include citizens or residents of the United States of America. For a proper definition of U.S. Person, see theFund’s prospectus. Investment in the Fund may not be suitable for all investors. Investors with any doubts with regard tosuitability should contact their independent investment advisors. Nothing in this fact sheet should be construed as advice.Important information for UK investors: The Fund does not have a place of business in the United Kingdom and is notauthorized under the Financial Services Act 1986 (the“Act”). As a consequence, the regulatory regime governing aninvestor’s rights with respect to the Fund (and its similarly unauthorized overseas agents) will be different than that of theUnited Kingdom. Investors will not, for example, be entitled to compensation under the United Kingdom’s InvestorsCompensation Scheme. The Fund is an unregulated collective investment scheme under the laws of the United Kingdomand, therefore, can be promoted in the United Kingdom only to persons in accordance with the Act and the FinancialServices (promotion of Unregulated Schemes) Regulations 1991 (the “Regulations”). Accordingly, this fact sheet may notbe distributed in the United Kingdom other than to persons authorized to carry on investment business under the Act, per-sons whose ordinary business involves the acquisition and disposal of property of the same kind as the property or a sub-stantial part of the property in which the Fund invests and persons permitted to receive this fact sheet under theRegulations. In addition, this fact sheet may not be issued or passed on in the United Kingdom to any person, other thanto persons to whom the fact sheet may otherwise lawfully be issued, unless that person is of a kind described in Article11(3) of the Financial Services Act of 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended).

Distributor: Fred Alger & Company, Incorporated. Member NYSE Euronext, SIPC.

InvestmentPortfolio Managers Experience (Yrs)

Daniel Chung, CFA 18Jill Greenwald, CFA 26Patrick Kelly, CFA 15Gregory Adams, CFA 25Deborah Vélez Medenica, CFA 16Ankur Crawford1 8Maria Liotta1 14Michael Young1 271Also included in Senior Analysts

InvestmentClient Portfolio Managers Experience (Yrs)

Kevin Collins, CFA 19William Rechter, CFA 41

Research Team Number of People

Senior Analysts 7Analysts 8Associate Analysts 9Research Associates 2

Seasoned Investment Professionals

Key FactsFounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1964Number of Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142Assets under Management . . . . . . . . . . . . . . $16.9 billion

Alger SICAV Funds Class ISIN CUSIP

Alger American Asset Growth FundClass A LU0070176184 LO163W109

Class I LU0295112097 LO163W299

Alger US SmallCap Fund Class A LU0116261222 LO163W125

Alger US MidCap Fund Class A LU0116262386 LO163W141

Alger US LargeCap Fund Class A LUO116264242 LO163W166

China-US Growth Fund Class A LU0242100229 LO163W281

09.18.12

Why Alger?• Since 1964, an independent company• Proprietary, bottom-up fundamental research• Vibrant, research-intensive culture• Proven, repeatable, and consistent investment process• Dedicated to helping our clients achieve their investment goals

Alger SICAV RecognitionThe Alger American Asset Growth A• Lipper Fund Awards 2011

Best Equity North America Fund Over Five Years: Austria • Germany • Spain • Switzerland

• Lipper Fund Awards 2010Best Equity North America Fund Over Five Years: Spain • France • Netherlands

• Lipper Fund Awards 2008Best Equity North America Fund Past Three Years: Austria • France • Hong Kong • Germany • Spain

Fred Alger Management, Inc. • 360 Park Avenue South • New York, NY 10010

800.286.7416 • www.alger.com

September 30, 2012

Countries of RegistrationAustriaBelgiumFranceGermanyItaly* Luxembourg

NetherlandsSingapore**SpainSwitzerlandUnited Kingdom

* Institutional Customers Only** Alger American Asset Growth Fund and

Alger US SmallCap Fund Only

Documents

Alger american asset growth i share 9.30.12