SPECTRA FUND
SUPPLEMENT DATED DECEMBER 21, 1998 TO THE PROSPECTUS DATED
FEBRUARY 27, 1998 AS SUPPLEMENTED ON MAY 18, 1998
The following supplements, and should be read in conjunction with, the
Prospectus of the Fund:
The address of the Fund and Fred Alger Management, Inc. (see front and back
cover pages) has been changed from 75 Maiden Lane, New York, NY 10038 to:
One World Trade Center
Suite 9333
New York, NY 10048
Effective immediately, the Fund will no longer issue certificates, representing
shares of the Fund. All newly-issued shares will be held in book-entry form
only.
The section titled "Diversification" on page 3 of the prospectus is amended to
read as follows:
"The Fund is classified as a "diversified" investment company under the
Investment Company Act of 1940. A "diversified" investment company is required,
with respect to 75% of its total assets, to limit its investment in any one
issuer (other than the U.S. Government) to no more than 5% of the investment
company's total assets. The Fund intends to continue to qualify as a "regulated
investment company" under the Internal Revenue Code; one of the requirements for
such qualification is a quarterly diversification test, applicable to 50%
(rather than 75%) of the Fund's assets, similar to the requirement stated
above."
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SPECTRA FUND
Supplement dated December 21, 1998 to the
Statement of Additional Information dated February 27, 1998
The following supplements, and should be read in conjunction with, the Statement
of Additional Information of the Fund:
The address of the Fund, Fred Alger Management, Inc. and its officers and
employees has been changed from 75 Maiden Lane, New York, NY 10038 to:
One World Trade Center
Suite 9333
New York, NY 10048
This change appears on the front cover page, in the last sentence of the
paragraph titled "Trustees and Officers of the Fund" on page 9 and on the back
cover page.
