Are You a Rational Investor?

SPECTRA / FLYER

ARE YOU A RATIONAL INVESTOR?

With the recent market volatility, investors’ most important task may be to make rational, thoughtful decisions about their portfolios. Unfortunately, investors often make poorly timed investment decisions, which has driven a negative performance gap of 137 bps annually between their actual returns and official mutual fund total returns, according to data fromMorningstar. 1 Many investors make decisions based on headline news or recent performance, driving redemptions often at inopportune times during periods of market stress. In fact, over two decades of data shows Alger Spectra Fund performance has been unusually strong after periods of large net redemptions (2% or more of assets under management in a one-month period), beating the Fund’s historical annual returns as well as its benchmark over the same periods. Following the herd often leads investors to make poorly timed investment decisions, as negative sentiment is often followed by strong performance. We believe an objective approach to investment decision-making, balancing risk and return, may help investors make better decisions for their portfolios.

In fact, over two decades of data shows Alger Spectra Fund performance has been unusually strong after periods of large net redemption.

Rational, Thoughtful Decision-Making May Significantly Impact Investor Performance

Median Annual Performance Following Large Net Redemptions from Alger Spectra Fund

Alger Spectra Fund Russell 3000 Growth Index

18.3%

15.7%

10.2%

7.4%

1 Year

3 Years

Source: Alger, FactSet, from 1/1/96 – 12/31/2019. Class A share performance does not reflect the deduction of the sales charge. Had the sales charge been deducted, the return would have been lower.

SPECTRA 2/2

Alger Spectra Fund Average Annual Total Returns (%) (as of 3/31/20)

1 Year

3 Years

5 Years

10 Years

15 Years

Since Inception

Class A SPECX (Incepted 7/28/69) Without Sales Charge

-0.47

10.30

8.57

12.15

12.09

15.36

With Sales Charge

-5.68

8.32

7.41

11.55

11.68

15.23

-0.17

10.68

8.93

Class Z ASPZX (Incepted 12/29/10)

12.32

-0.44

10.54

9.74

12.68

9.52

Russell 3000 Growth Index

(Since 12/29/10) 12.33

Morningstar Percentile Rank (Large Growth) Based on Total Returns

30% 423/1358 28% 387/1358

36% 454/1231 33% 419/1231

40% 429/1086 36% 382/1086

30% 221/812

Class A

Class Z

Total Annual Fund Operating Expenses by Class: A: 1.31% Z: 0.99% (Prospectus dated 3/1/20)

Only periods greater than 12 months are annualized. The first full calendar year which Fred Alger Management, LLC managed the Spectra Class A portfolio was 1975.

On September 24, 2008, the Fund’s name was changed from Spectra Fund to Alger Spectra Fund, and the Fund’s Class N shares were redesignated as Class A shares. The Fund operated as a closed end fund from August 23, 1978 to February 12, 1996. The calculation of total return during that time assumes dividends were reinvested at market value. Had dividends not been reinvested, performance would have been lower. 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 sales charges reflect a maximum front-end sales charge on Class A Shares of 5.25%. For performance current to the most recent month end, visit www.alger.com or call 800.992.3863.

1 Source: Morningstar, Mind the Gap 2018 study. Risk Disclosure: Investing in the stock market involves risks, and may not be suitable for all investors. Growth stocks tend to 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. A significant portion of assets will be invested in technology and healthcare companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Short sales could increase market exposure, magnifying losses and increasing volatility. Leverage increases volatility in both up and down markets and its costs may exceed the returns of borrowed securities. Russell 3000® Growth is an unmanaged index of common stocks designed to measure the performance of the 3000 largest U.S. companies based on the total market capitalization, which represents 99% of the U.S. equity market. Investors cannot invest directly in any index. Index performance does not reflect deductions for fees, expenses or taxes. Note that comparing the performance to a different index might have materially different results than those shown. Any views and opinions expressed herein are not meant to provide investment advice and there is no guarantee that they will come to pass. Morningstar percentile rankings are based on the total return percentile rank that includes reinvested dividends and capital gains (excluding sales charge) within each Morn- ingstar 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 and ratings may be based in part on the performance of a predecessor fund or share class and are calculated by Morningstar using a performance calculation meth- odology that differs from that used by Fred Alger Management, LLC’s. Differences 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 rating/ranking for the period Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for the Fund’s most recent month-end performance data, visit www.alger.com, call (800) 992-3863 or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing. Distributor: Fred Alger & Company, LLC. Member NYSE Euronext, SIPC. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.

Fred Alger & Company, LLC 360 Park Avenue South, New York, NY 10010 / 800.305.8547 / www.alger.com

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