DetractorsEclat Textile Co., Ltd.LG Chem Ltd.Chipbond Technology CorporationWizz Air Holdings PlcBrait S.E.

Source: FactSet

a Percentages may not total to 100% due to rounding. Alger follows MSCI’s country classification system. As such, some companies classified as “United States” are not classified based on country of domicile.

North America 0.00

Brazil 7.58Mexico 4.96Argentina 2.01Colombia 1.98Chile 0.54Peru 0.53

Latin America 17.60

South Africa 5.31United Arab Emirates 0.76

Africa/Middle East 6.07

China 23.14South Korea 15.31Taiwan 12.00India 11.60Indonesia 3.50Thailand 2.06Hong Kong 1.90Malaysia 1.47Philippines 1.25

Asia/Pacific Ex Japan 72.24Russia 3.42Turkey 0.50Poland 0.17

Europe 4.09

Japan 0.00

2nd Quarter 2016 As of June 30, 2016

Investment GoalPrimarily invests in growth equity securities of companies of all market caps, domiciled in emerging market countries, and identified through our fundamental research as demonstra-ting promising growth potential.

Characteristics (as of 6/30/16)Alger Emerging Markets Fund MSCI Emerging Markets Index

Total Net Assets $30.2 mil N/A

Number of Equity Holdings 96 835

Average Market Cap $18.82 bil $8.89 bil

Median Market Cap $4.14 bil $4.63 bil

Weighted Average Market Cap $39.90 bil $43.21 bil

P/E Ratio 15.49 12.12

Alpha (5 year) 0.50 0.00

Beta (5 year) 0.93 1.00

Capture Ratio (5 year) 1.01 1.00

Top 10 Holdings (as of 6/30/16)

Samsung Electronics Co. Ltd. (South Korea) 4.82%Tencent Holdings Ltd. (China) 4.37%Alibaba Group Holding Ltd. Spd ADR (China) 2.38%Naspers Limited Class N (South Africa) 2.34%China Mobile Ltd. (China) 2.13%HDFC Bank Ltd. (India) 1.70%Aurobindo Pharma Ltd (India) 1.69%LG Household & Health Care Ltd. (South Korea) 1.55%Luxoft Holding, Inc. Class A (Russia) 1.54%AIA Group Ltd. (Hong Kong) 1.35%

Sector Allocation (as of 6/30/16)

Information Technology 25.80%Financials 19.81%Consumer Discretionary 15.35%Industrials 9.01%Consumer Staples 8.15%Health Care 7.22%Materials 5.33%Energy 5.01%Telecommunication Services 2.22%Utilities 2.08%

Top Contributors & Detractors (as of 6/30/16)

ContributorsTencent Holdings Ltd.Samsung Electronics Co., Ltd.BR Malls Participacoes S.A.LG Household & Health Care LtdGlobant SA

Portfolio ManagerDeborah Vélez Medenica, CFA20 years experience

Geographic Allocation (%)a (as of 6/30/16)

Alger Emerging Markets

/ FACTS H E E TE M E R G I N G M A R K E TS I

Class AClass CClass IClass YClass Y-2Class Z

015566797 / AAEMX015566789 / ACEMX015566771 / AIEMX015566722 / AYEMX015566714 / AEMYX015566730 / AZEMX

Investment CategoryDiversified Emerging Markets

look caused market participants to pull the Brazilian rate curve lower in anticipation of central bank easing in the second half of the year which benefits BR Malls as the company’s debt is higher than the sector’s average. LG Household & Health Care Ltd. (LGH&H) also contributed to results. The South Korean company provides cosmetics, beverages, and household goods. LGH&H first-quarter results were better than expected on continued strength from the cosmetics division while beve-rages delivered stronger-than-anticipated margin improvement and duty free sales grew more than expected.

Brait S.E. and Eclat Textile Co. Ltd., however, were among detrac-tors from results. Brait is a South African quasi private-equity fund specializing in building up companies that target lower middle income consumers. It has been making acquisitions out-side of South Africa. Brait’s shares declined in May ahead of an anticipated S&P sovereign rating downgrade but then recovered after the downgrade was averted. While the company released solid fiscal-year 2016 results in June, the stock suffered from the U.K. “leave” vote as Brait’s exposure to the U.K. at the end of fiscal-year 2016 comprised approximately 66% of its total invest-ments. Eclat Textile is a Taiwanese company that specializes in fabrics and garments for performance sportswear. The shares underperformed in response to weaker-than-expected first- quarter earnings and sluggish second-quarter sales. In addition, investors are concerned about end-market demand weakness in the U.S., as the U.S. is Eclat’s largest market. New product launches this year, however, can potentially help improve Eclat’s margins and normalize sales. LG Chem Ltd. of South Korea also detracted from the results. The company has been undergoing a life cycle change by focusing on higher end petrochemical pro-ducts and adding exposure to electric vehicles (E.V.). The shares underperformed on concerns over its E.V. battery business in China. In June, China’s Ministry of Industry and Technology announced the fourth version of approved battery makers and no foreign companies were on the list. We believe the profitability of LG Chem’s main chemical business will continue to remain above mid-cycle profitability and is currently underappreciated. In addition, the South Korea government has reached out to the Chinese government for help on resolving approvals locally in E.V. batteries.

The portfolio remained overweight India and Mexico during the quarter although we have been reducing positions in Mexico. During the quarter, we added a consumer name in Chile and a health care company in the Middle East while exiting a financial services firm in South Africa.

Going ForwardExpectations for emerging markets’ 2016 earnings growth have decreased again and are now in the mid-single digits; earnings expectations in developed markets have decreased more rapidly and are now flat. We continue to believe a 10 to12% price-to-earnings multiple discount is appropriate when comparing emerging markets to developed markets. The discount, however, was at nearly 25% at quarter end. There has been no change in the longer-term structural support for emerging markets but global financial volatility remains elevated after the U.K. vote.

EMERGING MARKETS 2/4

2nd Quarter 2016As of June 30, 2016

Market EnvironmentThe MSCI Emerging Markets Index generated a 0.80% return for the second quarter, trailing the 1.21% gain of developed markets as measured by the MSCI World Index. While equities started the quarter strongly, April minutes from the Federal Reserve’s Open Market Committee implied that the central bank may be more aggressive with rate increases in the foreseeable future than previously expected, which stalled the rally. In June, investors focused on the United Kingdom’s (U.K.) referendum on leaving the European Union (E.U.). The June 24 announcement that the country had voted to leave the E.U. surprised markets and trig-gered a risk-off move that saw precious metals gain and equities sell off. A political crisis surfaced with the U.K. prime minister resigning along with a vote of no confidence for the opposition leader. Nevertheless, emerging markets generated their best first-half-year performance since 2009.

Latin America was the only region to generate positive second-quarter returns, with the performance of Peruvian and Brazilian equities leading the region. Peru’s performance was likely driven by a market friendly presidential second round of voting with Pedro Pablo Kuczynski winning the election. A decision by MSCI to keep the country in the Emerging Markets Index also supported perfor-mance. In Brazil, the impeachment of President Dilma Rousseff resulted in Vice President Michel Temer assuming her role.

In Asia ex-Japan, the Philippines and India performed best. In the Philippines, Rodrigo Duterte, former mayor of Davao City in Mindanao, won a clear presidential mandate. He subsequently released an agenda suggesting that current economic policies would continue. Also during the quarter, the Reserve Bank of India cut rates 25 bps, but many investors were disappointed when the governor of the central bank, Dr. Raghuram Rajan, announced he would not seek a second term. However, the government approved the Bankruptcy Code, which signaled that structural reform is still a priority. In China, economic data continued to suggest that the economy was relatively stable. Chinese authorities allowed the country’s currency to weaken and continued to dampen expecta-tions for stimulus in the near term. MSCI, meanwhile, once again delayed adding Chinese A-shares to the Emerging Markets Index, citing concerns over accessibility.

In Eastern Europe, the Middle East, and Africa, Russia performed best. Russia’s central bank cut rates 50 bps as core inflation expectations began to moderate. Turkey underwent some political turmoil during the quarter as the prime minister resigned given increasing tensions in his relationship with President Erdogan and the former transportation minister was subsequently elected as the AK party leader. Also during the quarter, Turkey’s central bank cut rates 50 bps.

Portfolio PerformanceThe Fund outperformed its benchmark, the MSCI Emerging Markets Index, for the quarter. Globant SA and BR Malls were among top contributors to performance. Globant is an Argentinean software company specializing in social, mobile, analytics, and cloud applications. The company exceeded esti-mates for its first quarter with sales up 35% year over year and gross margins expanding over 600 bps. Globant also announced the small acquisition of a private company, WAE. BR Malls is Brazil’s largest shopping mall operator and the only listed player with a national presence. Changes in Brazil’s fragile political out-

The MSCI World Index captures large and mid cap representation across 23 Developed Markets (DM) countries. With 1,645 constituents, the index covers approximately 85% of the free float-adjus-ted market capitalization in each country.

Total Annual Fund Operating Expensesb (Prospectus Dated 5/9/16) Class A: 2.71% Class C: 3.51% Class I: 2.44% Class Y: 2.35% Class Y-2: 2.35% Class Z: 2.35%With Waiver Class A: 1.55% Class C: 2.30% Class I: 1.55% Class Y: 1.05% Class Y-2: 0.99% Class Z: 1.25%

Morningstar Percentile Rank (Diversified Emerging Markets)

Class A —60%

514/85633%

192/59038%

159/416—

Class C —66%

569/85645%

268/59053%

219/416—

Class I —60%

516/85634%

198/59039%

161/416—

Class Z —57%

487/856— — —

b 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 and I Shares to 1.55%, Class C Shares to 2.30%, and Class Z Shares to 1.25% of the class’s average daily net assets, and through 5/8/17 to the extent necessary to limit the total annual fund operating expenses of the Fund’s Class Y Shares to 1.05% and Class Y-2 Shares to 0.99 % of the class’s average daily net assets. This expense reimbursement cannot be terminated.

The performance data quoted represents past performance, which is not an indication or a guarantee of future results.Investment 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. Returns with a maximum sales charge reflect a front-end sales charge on Class A Shares of 5.25%. Class C Shares held less than one year are subject to a 1% contingent deferred sales charge (CDSC). Class I shares are subject to Distribution and Shareholder Fees. For performance current to the most recent month end, visit www.alger.com or call 800.992.3863.

EMERGING MARKETS 3/4

2nd Quarter 2016As of June 30, 2016

Average Annual Total Returns (as of 6/30/16)2Q16

Not Annualized YTD 1 Year 3 Year 5 Year Since Inception

Class A (Since 12/29/10)Without Sales Charge 1.70% 1.33% -10.96% -0.44% -2.74% -2.84%With Sales Charge -3.68% -4.01% -15.62% -2.21% -3.78% -3.78%

Class C (Since 12/29/10)Without Sales Charge 1.63% 1.00% -11.57% -1.20% -3.46% -3.63%With Sales Charge 0.63% 0.00% -12.46% -1.20% -3.46% -3.63%

Class I (Since 12/29/10) 1.71% 1.34% -10.97% -0.46% -2.75% -2.93%

Class Y (Since 5/9/16) — 5.04% — — — 5.04%

Class Y-2 (Since 5/9/16) — 5.04% — — — 5.04%

Class Z (Since 2/28/14) 1.82% 1.57% -10.63% — — -3.92%

MSCI Emerging Markets Index 0.80% 6.60% -11.71% -1.21% -3.44%(Since 12/29/10) -2.73%(Since 2/28/14) -3.30%(Since 5/9/16) 5.09%

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

-6.28Financials

-4.41Telecommunication Services

-2.44Energy

-1.08Utilities

-1.02Materials

-0.30Consumer Staples

2.86Industrials

3.28Information Technology

4.55Health Care

4.85Consumer Discretionary

-7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7Alger Emerging Markets Fund

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 developments. Investing in companies of all capitalizations involves the risk that smaller issuers in which the Fund invests may have limited product lines or financial resources, or lack management depth. Special risks associated with investments in emerging country issuers include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of compre-hensive company information, political instability and different auditing and legal standards. Foreign currencies are subject to risks caused by inflation, interest rates, budget deficits and low savings rates, political factors and government controls. Some of the countries where the Fund can invest may have restrictions that could limit the access to investment oppor-tunities. The securities of issuers located in emerging markets can be more volatile and less liquid than those of issuers in more mature economies. Investing in emerging markets involves higher levels of risk, including increased information, market, and valuation risks, and may not be suitable for all investors. Figures for the P/E Ratios were calculated using a weighted harmonic average and EPS Growth rates were calculated using a weighted median. Please note that alternative metho-dologies exist for calculating P/E Ratios and EPS Growth, and utilizing another methodology might produce materially different results than those shown.Alpha measures the difference between a portfolio’s actual returns and its expected performance, given its level of risk (as measured by beta); a positive alpha means that the fund has performed better than its beta would predict. Beta measures a fund’s sensitivity to market movements in relationship to a particular index. A fund with a beta of 1.00 would be expected to have returns equal to such index. Capture Ratio is Upside Capture divided by Downside Capture. Upside Capture Ratio measures a fund’s performance in up markets relative to the market (benchmark) itself. It is calculated by taking the security’s upside capture return and dividing it by the benchmark’s upside capture return. Downside Capture Ratio measures a fund’s performance in down markets. A down-market is defined as those periods (months or quarters) in which market return is less than 0. In essence, it tells you what percentage of the down-market was captured by the fund. For example, if the ratio is 110%, the fund has captured 110% of the down-market and therefore underperformed the market on the downside.The Fund’s Class Y Shares are generally subject to a minimum initial investment of $500,000. The Fund’s Class Y-2 Shares are generally subject to a minimum initial investment of $5 million. Class Y and Y-2 Shares are available for purchase by institutional investors such as qualified and non-qualified retirement, deferred compensation, and benefit plans, bank and trust companies, insurance companies, corporations, charitable organizations, endowments and foundations, government entities, and fund-of-funds. 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 wai-ver 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.The Morgan Stanley Capital International (MSCI) Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Investors cannot invest directly in any index. Index performance does not reflect the deduction for fees, expenses, or taxes. Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to

constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all war-ranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. 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 repre-sentations 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.Morningstar percentile rankings are based on the total return percentile rank that includes reinvested dividends and capital gains (excluding sales charge) within each Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. If sales charges were included, performance would be lower and the rank may be lower. Rankings may be based, in part, on the performance of a predecessor fund or share class and are calculated by Morningstar using a performance calculation methodology that differs from that used by Fred Alger Management, Inc.’s. Diffe-rences in the methodologies may lead to variances in calculating total performance returns, in some cases this variance may be significant, thereby potentially affecting the rating/ranking of the Fund(s).When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the ranking and/or rating for the period.As of 6/30/2016, the following positions represented the noted percentages of Alger Emer-ging Markets Fund assets: WAE, 0.00%; Tencent Holdings Ltd., 4.37%; Samsung Electronics Co., Ltd., 4.82%; BR Malls Participacoes S.A., 1.23%; LG Household & Health Care Ltd, 1.55%; Globant SA, 0.97%; Eclat Textile Co., Ltd., 0.99%; LG Chem Ltd., 1.01%; Chipbond Technology Corporation, 0.00%; Wizz Air Holdings Plc, 0.00%; and Brait S.E., 0.71%..

Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses. For a prospectus or 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, Incorpor ated. Member NYSE Euronext, SIPC. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.

EMERGING MARKETS 4/4

2AEM2Q201607.27.16Fred Alger & Company, Incorporated 360 Park Avenue South, New York, NY 10010 / 800.992.3863 / www.alger.com

2nd Quarter 2016As of June 30, 2016

Contribution to Return and Attribution Analysis (for 1-Year Period ended 6/30/16)Alger Emerging Markets Fund MSCI Emerging Markets Index Attribution Analysis

Average Weight (%) Contribution to Return (%) Average Weight (%) Contribution to Return (%) Total Effect (%)Consumer Discretionary 15.44% -2.66% 9.65% -0.88% -0.83%Consumer Staples 7.93% 0.54% 8.47% -0.24% 0.88%Energy 2.80% -0.03% 7.64% -0.94% 0.15%Financials 20.41% -3.07% 27.98% -5.79% 1.74%Health Care 5.55% -0.27% 2.77% -0.26% 0.19%Industrials 8.50% -1.95% 6.69% -1.36% -0.55%Information Technology 23.70% -0.22% 19.89% -0.19% 0.36%Materials 5.48% -0.85% 6.60% -0.56% -0.38%Telecommunication Services 3.54% -0.78% 7.08% -1.19% 0.10%Utilities 2.63% -0.54% 3.24% -0.32% -0.26%

Source: FactSet