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A Strong Performing, Lower Risk, Focused Mid-Cap Solution
Mid-cap stocks are often called the “sweet spot of investing”. With the Value Line Mid Cap Focused Fund, the “sweet spot” just got a little sweeter.
3 Reasons to Consider the Value Line Mid Cap Focused Fund
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How does your fund compare to the Mid Cap Focused Fund?
Let us do the comparison for you.
Request a Comparison
* The Adviser and EULAV Securities LLC, the Fund’s principal underwriter (the “Distributor”), have agreed to waive certain class-specific fees and/or pay certain class-specific expenses incurred by the Institutional Class so that the Institutional Class bears its class-specific fees and expenses at the same percentage of its average daily net assets as the Investor Class’s class-specific fees and expenses (excluding 12b-1 fees and any extraordinary expenses incurred in different amounts by the classes) (the “Expense Limitation”). The information regarding the Institutional Class in the table has been restated to reflect the Expense Limitation. The Adviser and the Distributor may subsequently recover from assets attributable to the Institutional Class the reimbursed expenses and/or waived fees (within 3 years after the fiscal year end in which the waiver/reimbursement occurred) to the extent that the Institutional Class’s expense ratio is less than the Expense Limitation or, if lower, the expense limitation in effect when the waiver/reimbursement occurred. The Expense Limitation can be terminated or modified before June 30, 2019 only with the agreement of the Fund’s board. The Fund's performance would be lower in the absence of such waivers.
As of 09/30/23, the Fund’s Top 10 Holdings were as follows:
Steris PLC (4.95%),
West Pharmaceutical Services Inc (4.51%),
Gartner Inc (4.47%),
TransDigm Group Inc (4.27%),
Pool Corp (4.26%),
WR Berkley Corp (4.10%),
Waste Connections Inc (4.10%),
Heico Corp (3.99%),
MSCI Inc (3.79%),
Lennox International Inc (3.75%)
There are risks associated with investing in small and mid cap stocks, which tend to be more volatile and less liquid than stocks of large companies, including the risk of price fluctuations.
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 800.243.2729.
You should carefully consider investment objectives, risks, charges and expenses of Value Line 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. Value Line 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, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
VLIFX (3 Year / 5 stars / 521 funds; 5 Year / 5 stars / 493 funds; 10 Year / 5 stars / 396 funds; )
VALLX (3 Year / 1 stars / 1126 funds; 5 Year / 1 stars / 1039 funds; 10 Year / 2 stars / 808 funds; )
VLEOX (3 Year / 5 stars / 560 funds; 5 Year / 5 stars / 526 funds; 10 Year / 5 stars / 395 funds; )
VALSX (3 Year / 4 stars / 1126 funds; 5 Year / 4 stars / 1039 funds; 10 Year / 3 stars / 808 funds; )
VLAAX (3 Year / 3 stars / 703 funds; 5 Year / 5 stars / 660 funds; 10 Year / 4 stars / 492 funds; )
VALIX (3 Year / 1 stars / 703 funds; 5 Year / 2 stars / 660 funds; 10 Year / 3 stars / 492 funds; )
VAGIX (3 Year / 3 stars / 423 funds; 5 Year / 2 stars / 383 funds; 10 Year / 2 stars / 278 funds; )
Source: Morningstar Direct
Q3 2023 : Portfolio Manager Q&A
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Would you please comment on the Fund’s outperformance relative to the Morningstar Mid-Cap Growth Funds category average in the third quarter as well as longer-term periods?
During the quarter characterized by downward stock market volatility, we are pleased the Fund outperformed on a relative basis, as the Fund declined 4.02% while the Morningstar Mid-Cap Growth Funds category fell 5.32% on average. Over longer time periods, the Fund’s performance ranked in the top 10% or better in the Morningstar category for the 1, 3, 5 and 10-year periods ended September 30, 2023.
We believe this relative outperformance is largely due to our investment process of owning companies that have 10 or more years of consistent growth in both stock price and earnings.
Please visit the Fund’s performance page for complete performance information.
Source: Morningstar as of 9/30/2023
Would you please describe the Fund’s approach to managing risk?
We believe that a lower-risk approach to long-term growth investing is important to investors. Our portfolio is comprised of companies that have demonstrated consistent growth over the long-term—generally 10+ years of consistent growth in both stock price and earnings. This steady growth emphasis, in our view, minimizes the Fund’s risk profile, and results in attractive risk-adjusted returns over time. The Fund’s Sharpe Ratio, a measure of risk-adjusted return, exceeds that of our Morningstar category peers over the 3, 5 and 10-year periods as of September 30, 2023.
In fact, the Fund is the only mid-growth style fund in the Morningstar Mid-Cap Growth Funds category (among 111 unique funds) that has both a “Low” Risk Rating for the 3, 5 and 10-year periods, and top 10% performance for the 3, 5 and 10-year periods, as of September 30, 2023.
Source: Morningstar as of 9/30/2023
The Fund’s largest sector at the end of the quarter was Technology, with a weight of 35%. Would you please share some examples of the types of Technology companies your investment process favors?
As with all of our portfolio companies, we look for those that have a 10+ year track record of consistent growth in both stock price and earnings. We believe this track record criteria is a clear indicator of well-run companies that can operate successfully in a variety of market conditions.
When it comes to technology, we find many companies that meet our criteria, but they may not be the types of companies that are often in the headlines. More often, they are businesses that provide products and services supporting the operations of other companies, organizations, or governments. Some portfolio examples include: