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​Defending Your Data

As digitalization intensifies, so does the risk of cybercrime. How can companies safeguard against cyberattacks, and where might long-term investors look for potential opportunities?

Cybersecurity is paramount in the era of digital transformation, particularly with the shift to remote work since Covid-19. How are companies able to defend against future cyberattacks and are there opportunities for long-term investors?​​​

​​​​Chart showing Cost of Cybercrime Worldwide (in trillions)​​​​​​​​​​​​​​​​​​
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  • The consequences of cybercrime are significant and include data breaches, financial theft, diminished productivity, intellectual property theft, and reputational harm. Since the emergence of Covid-19, global cybercrime costs have surged more than fivefold from $1.2 trillion in 2019 to $7.1 trillion in 2022, as seen in the chart above.
  • The global cybersecurity market has witnessed strong revenue growth, increasing 67% from $102 billion in 2017 to $169 billion in 2022, according to Gartner.1​ However, this pales in comparison to the surging cost of global cybercrime, which had a 900% increase from 2017 to 2022, and is estimated to reach $13.8 trillion by 2028, as seen in the chart above. With the number of cyberattacks and the cost of global cybercrime estimated to keep rising, it stands to reason that the cybersecurity market might benefit from this growing addressable market.
  • ​We believe the most promising solutions to defend and protect against cybercrime are those that provide a suite of integrated offerings, leveraging cloud computing at scale to quickly adapt to highly sophisticated cyberattacks. These solutions can process enormous amounts of data using machine learning and artificial intelligence, giving security software companies the ability to mitigate the growing wave of cybercrime.

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The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of September 2023. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. Past performance is not indicative of future performance. ​ Investors whose reference currency differs from that in which the underlying assets are invested may be subject to exchange rate movements that alter the value of their investments. Investing in innovation is not without risk and there is no guarantee that investments in research and development will result in a company gaining market share or achieving enhanced revenue. Companies exploring new technologies may face regulatory, political or legal challenges that may adversely impact their competitive positioning and financial prospects. Also, developing technologies to displace older technologies or create new markets may not in fact do so, and there may be sector-specific risks as well. As is the case with any industry, there will be winners and losers that emerge and investors therefore need to conduct a significant amount of due diligence on individual companies to assess these risks and opportunities.
​
Important Information for US Investors: This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund and ETF shares. Fred Alger & Company, LLC serves as distributor of the Alger mutual funds.

Important Information for UK and EU Investors: This material is directed at investment professionals and qualified investors (as defined by MiFID/FCA regulations). It is for information purposes only and has been prepared and is made available for the benefit investors. This material does not constitute an offer or solicitation to any person in any jurisdiction in which it is not authorized or permitted, or to anyone who would be an unlawful recipient, and is only intended for use by original recipients and addressees. The original recipient is solely responsible for any actions in further distributing this material and should be satisfied in doing so that there is no breach of local legislation or regulation.

Certain products may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to such persons or countries.

Alger Management, Ltd. (85 Gresham Street, Suite 308, London EC2V 7NQ, UK) is authorized and regulated by the Financial Conduct Authority, for the distribution of regulated financial products and services. FAM and/or Weatherbie Capital, LLC, U.S. registered investment advisors, serve as sub-portfolio manager to financial products distributed by Alger Management, Ltd.
​
Important information for Investors in Israel: This material is provided in Israel only to investors of the type listed in the first schedule of the Securities Law, 1968 (the “Securities Law”) and the Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law, 1995. The Fund units will not be sold to investors who are not of the type listed in the first schedule of the Securities Law. ​

Cybersecurity is the process that provides and maintains confidentiality, integrity, availability, and privacy. This includes measures to prevent and respond to all incidents of cybercrimes, such as digital attacks and disruptions, to protect computer systems, networks, programs, and data (e.g., personal assets, important files, industrial and governmental information). The market for Cybersecurity includes revenues generated by the two key products, namely Cyber Solution and Security Services. Market values represent revenues paid to primary vendors at manufacturer price level either directly or through distribution channels (excluding VAT).

Cybersecurity solutions are automated technologies that help monitor, detect, report, counter, and secure organizations against the risk of cyberattacks, which can cause phishing, information extortion, data breaches, etc. These solutions include application security, cloud security, data security, and network security.

1Gartner is a global research and advisory firm that provides insights, advice, and tools to help organizations make decisions. The company's research covers a wide range of topics, including IT, business, and human resources. Gartner also offers a variety of consulting services, including customized research, workshops, and training.

Alger pays compensation to third party marketers to sell various strategies to prospective investors.​
Fre​d Alger & Company, LLC 100 Pearl Street, New York, NY 10004 / www.alger.com​​ ​/ 800.305.8547 (Retail) / 800.223.3810 (Institutional)​


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This ETF is different from traditional ETFs.

Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. Specifically:

You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.

The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.

These additional risks may be even greater in bad or uncertain market conditions.

The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF confidential, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance. For additional information regarding the unique attributes and risks of this ETF, please refer to the prospectus.

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