Investment Objective and Strategy

The investment objective of the Fund is to maximize current income. Capital appreciation is a secondary objective but only when consistent with the Fund’s primary objective.

The Fund invests primarily in a diversified portfolio of primarily investment grade, fixed income obligations, including securities issued or guaranteed by the U.S. government, its agencies or instrumentalities (U.S. government securities), mortgage-backed securities, asset-backed securities, corporate bonds, and other fixed income securities. Under normal circumstances, the Fund invests at least 80% of its assets in fixed income securities. The Fund invests in debt securities of any maturity, and there is no limit on the Fund’s maximum average portfolio maturity.

Average Annual Returns as of 10/31/14

YTD 1 Yr 3 Yr 5 Yr 10 Yr
transparent Core Bond Fund 3.95% 2.70% 4.06% 6.14% 5.32%
transparent Barclays US Aggregate Bond Index 5.12% 4.14% 2.73% 4.22% 4.63%
transparent Lipper Core Bond Funds 4.86% 4.11% 3.25% 4.62% 4.22%
Lipper Ranking as of 10/31/14 - 472/523 87/463 24/407 25/294
Percentile - 91st 19th 6th 9th
Gross / Net Expense Ratio: 1.30%/0.95%*
Effective Dec. 10, 2012 the Core Bond Fund changed its primary strategy of investing in high-yield bonds to investing in investment-grade bonds. All data above prior to 12/10/2012 reflects the old strategy.
VAGIX BCAGG LMCGI
YTD 3.95% 5.12% 4.86%
1 Yr 2.70% 4.14% 4.11%
3 Yr 4.06% 2.73% 3.25%
5 Yr 6.14% 4.22% 4.62%
10 Yr 5.32% 4.63% 4.22%
Gross / Net Expense Ratio: 1.30%/0.95%* (as of 12/31/13)
Effective Dec. 10, 2012 the Core Bond Fund changed its primary strategy of investing in high-yield bonds to investing in investment-grade bonds. All data above prior to 12/10/2012 reflects the old strategy.

Morningstar as of 10/31/14

Category Corporate Bond
3 Year of 142 Funds
5 Year of 116 Funds
10 Year of 83 Funds
Overall of 142 Funds

* Effective July 1, 2014, the Adviser has contractually agreed to waive a portion of the Fund's Management Fee equal to 0.20% of the Fund's average daily net assets. Also effective July 1, 2014, the Distributor has contractually agreed to waive a portion of the Fund's 12b-1 fees equal to 0.15% of the Fund's average daily net assets. These waivers can be terminated or changed before June 30, 2015 only with the approval of the Fund's board and the Adviser or the Distributor, as applicable. The Fund's performance would be lower in the absence of such waivers.

The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund's short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than their original cost. Past performance data through the most recent month end is available at vlfunds.com or by calling 1-800-243-2729.

You should carefully consider investment objectives, risks, charges and expenses of Value Line Mutual Funds before investing. This and other information can be found in the fund's prospectus and summary prospectus, which can be obtained free of charge from your investment representative, by calling 800.243.2729, or by clicking on the applicable fund at www.vlfunds.com. Please read it carefully before you invest or send money. The inception dates of Value Line Mutual Funds range from 1950 to 1993. Value Line Mutual Funds are distributed by EULAV Securities LLC. Past performance is no guarantee of future results.

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. Investment results and the principal value of an investment will vary.

The Morningstar Rating™ for funds methodology rates funds based on an enhanced Morningstar Risk-Adjusted Return measure, which also accounts for the effects of all sales charges, loads, or redemption fees. Funds are ranked by their Morningstar Risk-Adjusted Return scores and stars are assigned using the following scale: 5 stars for top 10%; 4 stars next 22.5%; 3 stars next 35%; 2 stars next 22.5%; 1 star for bottom 10%. Funds are rated for up to three periods: the trailing three-, five-, and 10-years. For a fund that does not change categories during the evaluation period, the overall rating is calculated using the following weights: At least 3 years, but less than 5 years uses 100% three-year rating. At least 5 years but less than 10 years uses 60% five-year rating / 40% three-year rating. At least 10 years uses 50% ten-year rating / 30% five-year rating / 20% three-year rating. VALSX (3yr / 4 stars / 637 funds; 5yr / 3 stars / 563; 10yr / 4 stars / 417). VLEOX (3yr / 5 stars / 637; 5yr / 4 stars / 563; 10yr / 4 stars / 417). VLIFX (3yr / 4 stars / 637; 5yr / 2 stars / 563; 10yr / 1 star / 417). VALLX (3yr / 3 stars / 1488; 5yr / 2 stars / 1308; 10yr / 2 stars / 863). VLAAX (3yr / 5 stars / 330; 5yr / 5 stars / 308; 10yr / 5stars / 123). VALIX (3 yr / 3 stars / 789; 5yr / 3 stars / 705; 10yr / 5 stars / 422). VAGIX (3yr / 5 stars /1005; 5yr / 3 stars /873; 10yr / 5 stars / 616). VLHYX (3yr / 2 stars / 221; 5yr / 1star / 207; 10yr / 1 star / 171).