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 12/31/25, the Fund’s Top 10 Holdings were as follows:
Costco Wholesale Corp (4.81%),
Tyler Technologies Inc (4.45%),
Republic Services Inc (4.41%),
Motorola Solutions Inc (4.36%),
Cadence Design Systems Inc (4.23%),
ServiceNow Inc (4.19%),
Stryker Corp (3.49%),
IDEXX Laboratories Inc (3.37%),
TransDigm Group Inc (3.24%),
WR Berkley Corp (2.99%)
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 / 518 funds; 5 Year / 5 stars / 496 funds; 10 Year / 4 stars / 391 funds; )
VLIFX (3 Year / 3 stars / 469 funds; 5 Year / 5 stars / 445 funds; 10 Year / 5 stars / 373 funds; )
VALLX (3 Year / 3 stars / 1002 funds; 5 Year / 2 stars / 935 funds; 10 Year / 2 stars / 757 funds; )
VALSX (3 Year / 1 stars / 1002 funds; 5 Year / 2 stars / 935 funds; 10 Year / 2 stars / 757 funds; )
VLAAX (3 Year / 1 stars / 464 funds; 5 Year / 1 stars / 444 funds; 10 Year / 2 stars / 371 funds; )
VALIX (3 Year / 5 stars / 464 funds; 5 Year / 2 stars / 444 funds; 10 Year / 5 stars / 371 funds; )
VAGIX ()
Source: Morningstar Direct
Would you please comment on the Fund’s performance relative to the Morningstar Moderate Allocation Category in the fourth quarter?
During the fourth quarter of 2025, equity markets continued to advance, driven largely by a narrow group of large-cap stocks tied to artificial intelligence related themes. This market presented challenges for the Fund’s equity portfolio with its emphasis on companies with a long-term track record of consistent operating results, rather than short-term market trends. The Fund’s return of -3.80% lagged the Morningstar Moderate Allocation Category average return of 1.96% for the quarter ended December 31, 2025.
Please visit the Fund’s performance page for complete performance information.
What were the Fund’s primary performance contributors and detractors during the quarter?
Within the equity portion of the portfolio, performance during the quarter was pressured by weakness across several sectors, most notably Information Technology, Industrials, and Financials. In technology, holdings such as Motorola Solutions Inc. (MSI), ServiceNow Inc. (NOW), Cadence Design Systems Inc. (CDNS), and Tyler Technologies Inc. (TYL) detracted from results. Industrials were also a source of weakness, led by Cintas Corp. (CTAS) and Republic Services Inc. (RSG), while the Fund’s insurance holdings negatively weighed on performance within the Financials sector.
By contrast, the Fund benefited from its lack of exposure to some of the market’s weakest areas. The equity portfolio held no positions in the Real Estate, Utilities, or Energy sectors, all of which underperformed during the quarter.
What is the current market-cap breakdown of the equity portfolio and credit quality of the fixed income portfolio?
Within equities, the Fund continued to emphasize large- and mid-cap companies with consistent earnings and stock price growth, while maintaining limited exposure to the largest giant-cap names dominating market indices. This market cap view reflects our view that companies outside of the giant-cap tier have ample room for growth. At quarter-end, the equity portfolio consisted of approximately 38% large-cap, 52% mid-cap, and 10% small-cap holdings.
In the fixed income sleeve, the portfolio remained focused on quality, with over 98% of holdings rated investment grade (AAA through BBB).
Source: Morningstar as of 12/31/25
What is the Fund’s current asset allocation?
The Fund’s flexible allocation allows portfolio positioning to be based on relative opportunities across asset classes. As of December 31, 2025, the portfolio was invested approximately 64.3% in equities, 34.3% in bonds, and 1.4% in cash.