Alger Capital Appreciation Focus

/ FACTS H E E TC A P I TA L A P P R EC I AT I O N FO C u s L

Portfolio ManagersPatrick Kelly, CFAAnkur Crawford, Ph.D.

Ticker SymbolsALAFX (Class A Shares)ALCFX (Class C Shares)ALGRX (Class I Shares)ALZFX (Class Z Shares)

Morningstar CategoryLarge Growth

Total Annual Fund Operating Expensesc (Prospectus Dated 6/1/16) Class A: 1.32% Class C: 2.09% Class I: 1.33% Class Z: 1.34%With Waiver Class A: 1.15% Class C: 1.90% Class I: 1.15% Class Z: 0.95%

Highlights• At the end of the second quarter of 2016, Information Technology and Health Care were the largest sector weightings. Information

Technology was the largest sector overweight and the largest underweight was Consumer staples.

• The Health Care and Financials sectors provided the greatest contributions to absolute performance while the Information Technology and Telecommunication services sectors detracted from results.

Average Annual Total Returns (as of 6/30/16)YTD

Not Annualized 1 Year 3 Years 5 Years 10 Years Since Inception

Class A (Incepted 12/31/12) Without Sales Charge With Sales Charge

-3.79% -4.43% 13.05% — — 14.15%-8.84% -9.44% 11.02% — — 12.41%

Class C (Incepted 12/31/12) Without Sales Charge With Sales Charge

-4.13% -5.15% 12.19% — — 13.30%-5.09% -6.08% 12.19% — — 13.30%

Class Ia (Incepted 11/8/93) -3.77% -4.34% 13.18% 10.28% 6.44% 8.05%

Class Zb (Incepted 12/31/12) -3.66% -4.10% 13.49% — — 14.59%

Russell 1000 Growth Index 1.36% 3.02% 13.07% 12.35% 8.78%(Since 11/8/93) 8.51%

(Since 12/31/12) 14.72%

Morningstar Percentile Rank (Large Growth Category)

Class A —74%

1211/162711%

163/1483— — —

Class C —80%

1302/162724%

357/1483— — —

Class I —73%

1192/162710%

142/1483— — —

Class Z —71%

1161/16278%

109/1483— — —

a Performance of Class I shares prior to 12/31/12 represents the performance of Alger Large Cap Growth Institutional Fund. b The Fund’s Class Z Shares are generally subject to a minimum initial investment of $500,000, which may be waived for group employer-sponsored 401(k) plans, 457 plans, employer

sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, retiree health benefit plans and non-qualified deferred compensation plans. The waiver is available only for retirement plans that hold omnibus positions, or for aggregate plan participant positions, for each Fund made available for the plan. The waiver is generally not available to non-retirement accounts, traditional and Roth Individual Retirement Accounts, Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs, individual 401(k) plans or individual 403(b) plans.

c Fred Alger Management, Inc. has contractually agreed to reimburse Fund expenses (excluding interest, taxes, brokerage, and extraordinary expenses) through 2/28/17 to the extent necessary to limit the total annual fund operating expenses of the Fund’s Class A Shares to 1.15%, and Class C Shares to 1.90%, Class I Shares to 1.15%, and Class Z shares to 0.95% of the class’s average daily net assets. This expense reimbursement cannot be terminated.

Prior to December 31, 2012, the Alger Capital Appreciation Focus Fund followed a different investment strategy under the name “Alger Large Cap Growth Institutional Fund” and was managed by different portfolio managers.

The performance data quoted represents past performance, which is not an indication or a guarantee of future results. Invest ment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance figures assume all distributions are reinvested. Class A shares are subject to a maximum 5.25% front-end sales charge. Certain Class A and all Class C shares held less than one year are subject to a 1% contingent deferred sales charge (CDSC). For performance current to the most recent month-end, visit www.alger.com or call (800) 992-3863.

2nd Quarter 2016As of June 30, 2016

CAPITAL APPRECIATION FOCus 2/4

Portfolio PerformanceThe citizens of the united Kingdom voted in late June to withdraw the country from the European union, which caused the s&P 500 index to quickly decline 4.07%. soon afterward, a perception that markets had been oversold and expectations that central banks would provide stimulus supported investor sentiment and the index rallied 4.95% during the final days of the month. It was a difficult quarter for active growth managers. Broadly speaking, investors favored defensive sectors such as Telecom-munication services, utilities, and Consumer staples. Those sectors out-performed while sectors such as Information Technology and Consumer Discretionary with greater potential for strong earnings growth lagged. For the second quarter, the s&P 500 generated a 2.46% return.

For the second quarter of 2016, the Fund underperformed its bench-mark, the Russell 1000 Growth Index. Amazon.com, Inc. and Bristol-Myers squibb Company were among top contributors to performance. Amazon is one of the largest retailers in the world. It also provides cloud-based computing services. The company’s management an-nounced strong year-over-year results for the first quarter and provided encouraging guidance for the second quarter, a result of the company’s attractive product pricing and the convenience of online shopping. Its cloud-computing services have also generated strong results. Bristol-Myers discovers, develops, and delivers innovative medicines for treating cancer, cardiovascular diseases, hepatitis, HIV, and rheumatoid arthritis. During the quarter, investors reacted favorably to the company’s encou-raging fundamentals, with earnings being supported by strong revenues for OPDIVO, which treats lung cancer, and Eliquis, which is an anti-blood-clotting treatment. shares of Electronic Arts Inc. also contributed to performance. The company is a leading videogame developer, marketer, publisher, and distributor. some of its more prominent games are FIFA, Battlefield, Need for speed, and The sims. During the second quarter, investors were excited by the potential for new videogame introductions to support earnings growth and the company's ability to capture greater profits by delivery games to consumers online, which obviates the need to pay retailers for distribution.

Apple Inc. and Alphabet Inc., however, were among top detractors from performance. Recently, the pricing of technology and consumer-elec-tronics provider Apple has been reflecting what we believe is investors’ incorrect view that the company is a commodity hardware producer. We believe, however, that Apple should be priced as an innovative company

that provides software that is very sticky among its customers. The shares detracted from performance as investors have been disappointed with the recent rate of innovation and uninspiring growth of the compa-ny’s smartphones. We believe Apple's dividend and share repurchase program, however, can potentially mitigate risk while investors wait for the company’s research and product development efforts to bear fruit. Alphabet, which is the parent company of Google and other popular technology brands, has been benefiting from increased internet use and a migration of advertising from traditional media to online. In the second quarter, however, Alphabet reported modestly disappointing unit volume growth while European regulators continued to scrutinize Google’s competitive practices. We continue to believe, however, that Alphabet has potential to benefit from increasing use of the internet and from the growth of online advertising. shares of stamps.com Inc. also detracted from results. The company provides a usPs-approved service that lets users print electronic stamps using personal computers, printers, and the internet. During the second quarter, stamps.com issued an encoura-ging first-quarter earnings report with strong performance of e-com-merce and high-volume shipping services. It also reported significant progress with integrating recently acquired Endicia, but short seller reports put pressure on stamps.com share performance.

We continue to have an optimistic outlook for equity investing and we believe this is an attractive time for active managers that focus on growth stocks in particular. As a result of investors favoring defensive stocks for most of 2016, growth stocks are trading at historically low valuations relative to value stocks. In addition, we maintain that corpo-rate fundamentals are strong at a time when stock buybacks, dividend payments, and mergers and acquisitions are returning substantial amounts of capital to investors. The united states economy, meanwhile, is healthy with a strong job market, a recovering real estate sector, and low energy prices strengthening consumers’ potential spending power. As fundamental investors, we believe our portfolios are well positioned to benefit from a potential rally in growth stocks.

As of June 30, 2016

Overweight and Underweight versus Benchmark (%) (as of 6/30/16)

2nd Quarter 2016

Source: FactSet

-6.09Consumer Staples

-3.61Materials

-2.74Consumer Discretionary

-1.18Industrials

-0.65Financials

-0.07Utilities

0.55Telecommunication Services

1.24Energy

2.75Health Care

9.80Information Technology

-11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11Alger Capital Appreciation Focus Fund

CAPITAL APPRECIATION FOCus 3/4

As of June 30, 20162nd Quarter 2016

Characteristics (as of 6/30/16)

Alger Capital Appreciation Focus Fund

Russell 1000 Growth Index

Total Net Assets $73.6 mil N/A

Number of Equity Holdings 50 600

Average Market Cap $83.48 bil $25.10 bil

Median Market Cap $34.24 bil $8.88 bil

Weighted Avg. Market Cap $155.66 bil $133.18 bil

P/E Ratio 18.75 18.98

Top Contributors & Detractors (for Quarter ended 6/30/16)Contributors

Amazon.com, Inc.

Crown Castle International Corp

Bristol-Myers Squibb Company

Electronic Arts Inc.

UnitedHealth Group Incorporated

Detractors

Apple Inc.

Norwegian Cruise Line Holdings Ltd.

Alphabet Inc. Class C

Stamps.com Inc.

Allergan plc

Source: FactSet

Top 10 Holdings (as of 6/30/16)Alphabet Inc. Class C 7.07%

Honeywell International Inc. 5.85%

Amazon.com, Inc. 5.49%

Facebook, Inc. Class A 4.58%

Microsoft Corporation 4.22%

Apple Inc. 4.04%

CBS Corporation Class B 3.71%

UnitedHealth Group Incorporated 3.71%

Visa Inc. Class A 3.46%Allergan plc 3.10%

Sector Allocations (as of 6/30/16)Information Technology 39.07%

Health Care 19.86%

Consumer Discretionary 18.17%

Industrials 9.59%

Financials 5.10%

Consumer Staples 4.51%

Telecommunication Services 1.88%

Energy 1.83%

Utilities 0.00%Materials 0.00%

Source: FactSet

Contribution to Return and Attribution Analysis (for 1-Year Period ended 6/30/16)Alger Capital Appreciation Focus Fund Russell 1000 Growth Index Attribution Analysis

Average Weight (%) Contribution to Return (%) Average Weight (%) Contribution to Return (%) Total Effect (%)

Consumer Discretionary 16.83% 0.24% 21.20% 1.08% -0.99%

Consumer Staples 3.29% 0.22% 11.35% 2.15% -1.65%

Energy 1.63% -0.55% 0.63% -0.31% -0.27%

Financials 8.00% -0.59% 5.30% 0.31% -0.94%

Health Care 19.77% -4.13% 16.74% -1.94% -2.57%

Industrials 7.17% 0.31% 10.99% 0.47% -0.11%

Information Technology 35.85% 1.57% 28.03% 0.87% 0.22%

Materials 1.25% -0.41% 3.57% -0.12% -0.19%

Telecommunication Services 0.61% 0.17% 2.14% 0.50% -0.49%

Utilities — — 0.05% 0.01% -0.01%

Source: FactSet

BANNER_TITLE_INsIDE 4/4BANNER_TITLE_INsIDE 4/4CAPITAL APPRECIATION FOCus 4/4

Fred Alger & Company, Incorporated 360 Park Avenue south, New York, NY 10010 / www.alger.com800.992.3863 (Retail) / 800.223.3810 (Institutional)Fred Alger & Company, Incorporated 360 Park Avenue south, New York, NY 10010 / www.alger.com800.992.3863 (Retail) / 800.223.3810 (Institutional)

Risk Disclosures: Investing in the stock market involves gains and losses and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks, as the prices of growth stocks tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political and economic development. There are additional risks when investing in an active investment strategy, such as increased short-term trading, additional transaction costs and potentially increased taxes that a shareholder may pay, which can lower the actual return on an investment. Investing in companies of all capitalizations involves the risk that smaller, newer issuers in which Alger invests may have limited product lines or financial resources or lack of management depth. Stocks of small- and mid-sized companies are subject to greater risk than stocks of larger, more established companies owing to such factors as limited liquidity, inexperienced management, and limited financial resources. The Fund can use derivatives. A small investment in derivatives could have a potentially large impact on a fund’s performance. The Fund may have a more concentrated portfolio than other funds so it may be more vulnerable to changes in market value of a single issuer and may be more susceptible to risks associated with a single economic, political, or regulatory occurrence than a fund that has a more diversified portfolio.

Class I shares are an investment vehicle for institutional investors, such as corporations, foundations, and trust managing various types of employee benefit plans, as well as charitable, religious, and educational institutions. Investors may purchase or redeem Class I shares through a financial intermediary. There are no sales charges on purchases or redemptions.

The fund’s P/E Ratio and Market Caps (which come from FactSet), are as of the current period. Figures for the P/E Ratios were calculated using a weighted harmonic average. Please note that alternative methodologies exist for calculating P/E Ratios and utilizing another methodology might produce materially different results than those shown. Performance metrics are taken from Morningstar Direct,SM an independent source which we believe to be reliable. Fred Alger & Company, Incorporated, however, makes no representation that it is complete or accurate.

The S&P 500 Index is an index of large company stocks considered representative of the U.S. stock market. The Russell 1000® Growth Index is an index of common stocks designed to track performance of large-capitalization companies with greater than average growth orientation. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies 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 any index. Investors should not consider references to individual securities, if any, as an endorsement or recommendation to purchase or sell such security. Transactions in such securities may be made that seemingly contradict the references to them for a variety of reasons, including, but not limited to, liquidity to meet redemptions or overall portfolio rebalancing.

Frank Russell Company is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. This is a presentation of Fred Alger Management, Inc. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in Fred Alger Management, Inc.’s presentation thereof.

Fred Alger Management, Inc. uses The Global Industry Classification Standard (GICS®) for categorizing companies into sectors and industries. GICS is designed to meet the needs of the investment community for a classification system that reflects a company’s primary business model as determined by its financial performance. GICS was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and is licensed for use by Fred Alger Management, Inc. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or

representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

©2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

As of 6/30/2016, the following stocks represented the noted percentages of Alger Capital Appreciation Focus Fund assets: Endicia, 0.00%; Amazon.com, Inc., 5.49%; Crown Castle International Corp, 2.54%; Bristol-Myers Squibb Company, 2.27%; Electronic Arts Inc., 1.14%; UnitedHealth Group Incorporated, 3.71%; Apple Inc., 4.04%; Norwegian Cruise Line Holdings Ltd., 0.87%; Alphabet Inc. Class C, 7.07%; Stamps.com Inc., 1.57%; and Allergan PLC, 3.10%.

Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses. For a prospectus and a summary prospectus containing this and other information about the Fund, call (800) 992-3863, visit www.alger.com, or consult your financial advisor. Read it carefully before investing. Distributor: Fred Alger & Company, Incorporated. Member NYSE Euronext, SIPC. NoT FDIC INSURED. NoT bANk GUARANTEED. MAY loSE vAlUE.

About Our Firm

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 50 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.

7.15.16 ACAF2Q2016