SPECTRA FUND
Supplement dated September 17, 1997 to the Prospectus dated February 28, 1997
The following supplements the section entitled "How to Sell Shares" on pages 5-6
of the Prospectus:
Exchange Privilege
Shareholders may exchange shares of the Fund for shares of Alger Money
Market Portfolio of The Alger Fund (the "Portfolio"), and Portfolio shares
acquired in such exchanges, together with Portfolio shares acquired through
reinvestment of dividends on such shares, may be exchanged for shares of
the Fund. These exchanges will be effected at the respective net asset
values of Fund and Portfolio shares next determined after the exchange
request is accepted, with no sales charge or transaction fee imposed.
Shares of the Portfolio received in an exchange will earn dividends
beginning on the next business day after the exchange. Before exchanging
Fund shares for Portfolio shares, an investor should carefully read a
prospectus describing the Portfolio. To obtain a prospectus and more
information about such exchanges, please call (800) 711-6141. The Fund
reserves the right to terminate or modify this exchange privilege or to
charge a per-exchange fee upon notice to shareholders.
For tax purposes, an exchange of shares is treated as a sale of the shares
exchanged and therefore you may realize a taxable gain or loss when you
exchange shares.
