SUPPLEMENT DATED JULY 31, 1995 TO THE PROSPECTUS OF
THE ALGER AMERICAN FUND
The date of the Prospectus and Statement of Additional Information is July
31, 1995.
Upon receipt by the Fund of an exemptive order (the "Order") for which an
application is currently pending with the Securities and Exchange Commission,
the Fund will also be available for investment by qualified pension and
retirement plans (the "Plans") which elect to make the Fund an investment option
for Plan participants. Individuals cannot invest in a Portfolio directly but may
do so only through a Plan or a VA contract or VLI policy (as described in the
Prospectus). Plan participants should contact their Plan sponsor for information
concerning the appropriate procedure for investing in the Fund.
Plan sponsors may or may not pass through voting rights to Plan
participants, depending on the terms of the Plan's governing documents. These
documents will also describe any charges other than those imposed by a
Portfolio. Plan participants should consult their Plan sponsor or a tax advisor
for information on the tax consequences of investing in the Fund.
The following table should be added to the Financial Highlights section:
THE ALGER AMERICAN FUND
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
- --------------------------------------------------------------------------------
From January 25, 1995
(commencement of
operations)
to June 30, 1995(i)
---------------------
Net asset value, beginning of period.......................... $ 10.00
-------
Net investment (loss)......................................... (0.04)
Net realized and unrealized gain (loss)
on investments ............................................. 4.55
-------
Total from investment operations.......................... 4.51
-------
Net asset value, end of period................................ $ 14.51
=======
Total Return.................................................. 45.10%
=======
Ratios and Supplemental Data:
Net assets, end of period (000's omitted)................... $ 386
=======
Ratio of expenses excluding interest to
average net assets ....................................... 1.50%
=======
Ratio of expenses including interest to
average net assets ....................................... 1.94%
=======
Decrease reflected in above expense ratios
due to expense reimbursements............................. 6.83%
=======
Ratio of net investment (loss) to average
net assets ............................................... (0.91%)
=======
Portfolio Turnover Rate..................................... 123.0%
=======
Debt outstanding at end of period............................. $ 0
=======
Average amount of debt outstanding during
the period ................................................. $13,748
=======
Average daily number of shares outstanding
during the period .......................................... 24,688
=======
Average amount of debt per share during
the period ................................................. $ 0.56
=======
- --------------------------------------------------------------------------------
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
1
<PAGE>
SUPPLEMENT DATED JULY 31, 1995 TO THE PROSPECTUS OF
THE ALGER AMERICAN FUND
The date of the Prospectus and Statement of Additional Information is July
31, 1995.
Upon receipt by the Fund of an exemptive order (the "Order") for which an
application is currently pending with the Securities and Exchange Commission,
the Fund will also be available for investment by qualified pension and
retirement plans (the "Plans") which elect to make the Fund an investment option
for Plan participants. Individuals cannot invest in a Portfolio directly but may
do so only through a Plan or a VA contract or VLI policy (as described in the
Prospectus). Plan participants should contact their Plan sponsor for information
concerning the appropriate procedure for investing in the Fund.
Plan sponsors may or may not pass through voting rights to Plan
participants, depending on the terms of the Plan's governing documents. These
documents will also describe any charges other than those imposed by a
Portfolio. Plan participants should consult their Plan sponsor or a tax advisor
for information on the tax consequences of investing in the Fund.
2
