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 12/31/24, the Fund’s Top 10 Holdings were as follows:
TransDigm Group Inc (4.31%),
Cintas Corp (4.15%),
Republic Services Inc (4.03%),
ServiceNow Inc (3.60%),
Tyler Technologies Inc (3.39%),
Costco Wholesale Corp (3.06%),
Fair Isaac Corp (3.02%),
Intercontinental Exchange Inc (3.00%),
Stryker Corp (2.78%),
Motorola Solutions Inc (2.63%)
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 / 5 stars / 535 funds; 5 Year / 5 stars / 519 funds; 10 Year / 5 stars / 395 funds; )
VLIFX (3 Year / 5 stars / 480 funds; 5 Year / 5 stars / 442 funds; 10 Year / 5 stars / 358 funds; )
VALLX (3 Year / 2 stars / 1026 funds; 5 Year / 2 stars / 945 funds; 10 Year / 2 stars / 742 funds; )
VALSX (3 Year / 3 stars / 1026 funds; 5 Year / 2 stars / 945 funds; 10 Year / 3 stars / 742 funds; )
VLAAX (3 Year / 5 stars / 679 funds; 5 Year / 3 stars / 627 funds; 10 Year / 5 stars / 485 funds; )
VALIX (3 Year / 3 stars / 679 funds; 5 Year / 3 stars / 627 funds; 10 Year / 4 stars / 485 funds; )
VAGIX (3 Year / 2 stars / 424 funds; 5 Year / 1 stars / 381 funds; 10 Year / 2 stars / 272 funds; )
Source: Morningstar Direct
Would you please comment on the Fund’s performance relative to the Morningstar Moderate Allocation Category for the 1-year period in 2024 as well as for longer-term periods?
For the 1-year period ended December 31, 2024, the Fund’s return of 9.57% lagged the Morningstar Moderate Allocation Category average return of11.39%. While we are never satisfied with relative underperformance, we believe that long-term returns are more important to investors. We are pleased that the Fund outperformed the Morningstar category average over the 3, 5 and 10-year periods ended December 31, 2024. In fact, the Fund’s performance ranked in the top 10% of the Morningstar category for the 10-year period.
We believe the Fund’s outperformance over these long-term periods is primarily due to our consistent, high-quality investment approach. In the Fund’s equity portfolio, we emphasize companies with 10+ years of consistent growth in both stock price and earnings. The Fund’s fixed income portfolio is comprised primarily of investment grade securities.
Please visit the Fund’s performance page for complete performance information.
Source: Morningstar as of 12/31/24
What was the Fund’s asset allocation at year-end and how did this compare to the prior year?
The Fund has a flexible allocation, allowing us to dynamically adapt based on relative opportunities and risks. We believe that the equity market was a favorable place to invest in 2024. The Fund was allocated 65% to equities as of December 31, 2024, up from 63% as of December 31, 2023.
As of December 31, 2024, 35% of the portfolio was allocated to bonds and cash. Within the fixed income portfolio, approximately 99% of the Fund’s debt securities were rated investment grade (AAA through BBB).
How does the Fund’s equity portfolio compare to the Morningstar Moderate Allocation Category?
Our equity portfolio emphasizes companies with a 10-year or longer track record of consistent growth in stock price and earnings. We believe that such companies have operated successfully in a variety of economic conditions and are more likely to have steady operating results going forward.
With future potential in mind, we prefer to invest in companies that have room for growth. As a result, the Fund’s equity portfolio is generally comprised of more mid-sized companies and fewer mega-cap companies compared to our Morningstar Moderate Allocation Category peers. The average market cap of the Fund’s equity portfolio was $63B, compared to the Morningstar category average $198B, as of December 31, 2024. In addition, out of the 20 largest companies in the U.S., the Fund owned only one, Costco Wholesale Corp., at year end.
Source: Morningstar as of 12/31/24