Value Line Asset Allocation Fund
* EULAV Asset Management (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 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 06/30/25, the Fund’s Top 10 Holdings were as follows:
Cintas Corp (4.31%),
Intercontinental Exchange Inc (4.03%),
TransDigm Group Inc (3.83%),
Republic Services Inc (3.82%),
ServiceNow Inc (3.71%),
Motorola Solutions Inc (3.69%),
Costco Wholesale Corp (3.67%),
Tyler Technologies Inc (3.65%),
Stryker Corp (3.39%),
Cadence Design Systems Inc (3.38%)
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 1-800-243-2729.
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.
VLEOX (3 Year / 4 stars / 512 funds; 5 Year / 4 stars / 496 funds; 10 Year / 4 stars / 390 funds; )
VLIFX (3 Year / 3 stars / 476 funds; 5 Year / 5 stars / 444 funds; 10 Year / 5 stars / 368 funds; )
VALLX (3 Year / 5 stars / 1024 funds; 5 Year / 2 stars / 954 funds; 10 Year / 2 stars / 766 funds; )
VALSX (3 Year / 1 stars / 1024 funds; 5 Year / 2 stars / 954 funds; 10 Year / 2 stars / 766 funds; )
VLAAX (3 Year / 2 stars / 466 funds; 5 Year / 1 stars / 439 funds; 10 Year / 3 stars / 363 funds; )
VALIX (3 Year / 5 stars / 466 funds; 5 Year / 3 stars / 439 funds; 10 Year / 5 stars / 363 funds; )
VAGIX (3 Year / 1 stars / 430 funds; 5 Year / 2 stars / 382 funds; 10 Year / 2 stars / 288 funds; )
Source: Morningstar Direct
Would you please comment on the Fund’s performance relative to the Morningstar Moderate Allocation Category for the second quarter and for longer-term periods?
For the three months ended June 30, 2025, the Fund returned 3.48%, which lagged the Morningstar Moderate Allocation Category average return of 5.99%. The Fund’s 1-year return of 10.00% was in-line with the category average 10.06%. Importantly, the Fund outperformed the Morningstar category average, ranking in the top quartile (25% or better), for the 3 and 10-year periods as of June 30, 2025.
Please visit the Fund’s performance page for complete performance information.
Source: Morningstar as of 6/30/25
What is the Fund’s current allocation between equities and fixed income?
The Fund has a flexible allocation, allowing us to take advantage of relative opportunities while seeking to minimize risks. Unlike many balanced funds, the Fund is not tied to a static 60% equity/40% fixed income allocation. As of June 30, 2025, the Fund was allocated 64% to equities and 36% allocated to bonds and cash.
Within the Fund’s fixed income sleeve, approximately 99% of the Fund’s debt securities were rated investment grade (AAA through BBB).
Would you please describe the Fund’s equity portfolio investment process?
Our equity investment process emphasizes consistent growth and we favor companies with 10+ years of consistent growth in both stock price and earnings. We believe that companies with this type of track record have achieved stability through various economic conditions and are more likely to have steady operating results going forward.
When it comes to company size, the Fund’s investment approach is flexible, and includes a mix of small-, mid- and large-capitalization companies. We typically seek companies, regardless of size, that we believe have ample room for growth. As a result, the Fund invests in fewer giant-capitalization companies as compared to the Morningstar Moderate Allocation Category average. Importantly, out of the 20 largest companies in the U.S., the Fund owned only one (Costco Wholesale Corp.) as of June 30, 2025. The Fund’s average market cap was $67B while the Morningstar category average market cap was $209B at quarter’s end.
Source: Morningstar as of 6/30/25