Special Update

Given the recent market volatility, we wanted to share with you thoughts from Stephen Grant, the Fund’s portfolio manager, regarding managing the Fund during these unprecedented times.

In summary:

  • The Fund has the flexibility to dynamically adjust its allocation based on relative opportunity, and our allocation has not changed significantly since year-end. As of 12/31/19, the Fund was comprised of 62% in equities and 38% in fixed income and cash.
  • The recent market downturn has provided an opportunity to add select high-quality growth-oriented companies to the portfolio and readjust our weightings of current positions.
  • Our investment process remains steady: we are seeking to own companies with 10+ years of consistent growth in both stock price and earnings; in this environment we believe we have been able to do so at attractive prices.

Investment Objective and Strategy

The Fund’s investment objective is to achieve a high total investment return (current income and capital appreciation) consistent with reasonable risk. For this purpose, risk takes into account volatility and other factors as determined by the Adviser.

The Adviser attempts to achieve the Fund’s investment objective by following an asset allocation strategy based upon Value Line Inc.’s proprietary stock market model and other factors that enables the Adviser to periodically shift the assets of the Fund among three types of securities: (a) common stocks, (b) debt securities with maturities of more than one year that are principally rated investment grade and (c) money market instruments, which the Fund defines as debt securities with maturities of less than one year. There are no limits on the percentage of the Fund’s assets that can be invested in common stocks, debt or money market securities.

Average Annual Returns as of 06/30/20

YTD 1 Yr 3 Yr 5 Yr 10 Yr
transparent Investor Class - VLAAX 2.89% 8.16% 11.76% 9.81% 11.60%
transparent Institutional Class - VLAIX 1 3.01% 8.41% 12.04% 10.06% 11.73%
transparent 60/40 (S&P500/BBgBarc US Agg Bond) 0.98% 8.58% 8.93% 8.41% 10.08%
transparent Morningstar Alloc 50-70% Equity -3.58% 2.30% 5.04% 5.22% 7.88%
Morningstar Alloc 50-70% Equity Ranking - 70/684 3/636 1/558 6/412
Percentile Rank as of 06/30/20 - 11% 1% 1% 2%
VLAAX Gross / Net Expense Ratio: 1.07% ,VLAIX Gross / Net Expense Ratio: 0.82%.
Morningstar rates funds based on enhanced Morningstar risk-adjusted returns.
1Italics indicate Morningstar Extended Performance. Extended performance is an estimate based on the performance of the fund's oldest share class, adjusted for fees. The Inception Date of VLAIX is November 1, 2015.
Morningstar™ Ratings and Rankings based on Investor class shares.
VLAAX VLAIX1 60% S&P500 / 40% BCAGG MMAF
YTD 2.89% 3.01% 0.98% -3.58%
1 Yr 8.16% 8.41% 8.58% 2.30%
3 Yr 11.76% 12.04% 8.93% 5.04%
5 Yr 9.81% 10.06% 8.41% 5.22%
10 Yr 11.60% 11.73% 10.08% 7.88%
VLAAX Gross / Net Expense Ratio: 1.07% ,VLAIX Gross / Net Expense Ratio: 0.82%.
Morningstar rates funds based on enhanced Morningstar risk-adjusted returns.
1 Indicates Morningstar Extended Performance. Extended performance is an estimate based on the performance of the fund's oldest share class, adjusted for fees. The Inception Date of VLAIX is November 1, 2015.
Morningstar™ Ratings and Rankings based on Investor class shares.

Morningstar as of 06/30/20

Category Alloc 50-70% Equity
3 Year of 636 Funds
5 Year of 558 Funds
10 Year of 412 Funds
Overall of 636 Funds

Morningstar™ Categories based on Investor class shares.

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 / 4 stars / 558 funds; 5 Year / 5 stars / 500 funds; 10 Year / 5 stars / 381 funds; ) VALLX (3 Year / 3 stars / 1237 funds; 5 Year / 3 stars / 1084 funds; 10 Year / 3 stars / 809 funds; ) VLEOX (3 Year / 3 stars / 577 funds; 5 Year / 4 stars / 508 funds; 10 Year / 4 stars / 377 funds; ) VALSX (3 Year / 4 stars / 558 funds; 5 Year / 5 stars / 500 funds; 10 Year / 4 stars / 381 funds; ) VLAAX (3 Year / 5 stars / 636 funds; 5 Year / 5 stars / 558 funds; 10 Year / 5 stars / 412 funds; ) VALIX (3 Year / 5 stars / 309 funds; 5 Year / 5 stars / 278 funds; 10 Year / 5 stars / 194 funds; ) VAGIX (3 Year / 2 stars / 379 funds; 5 Year / 2 stars / 330 funds; 10 Year / 4 stars / 248 funds; ) VLHYX (3 Year / 2 stars / 147 funds; 5 Year / 2 stars / 139 funds; 10 Year / 1 stars / 105 funds; )

Source: Morningstar Direct