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 09/30/25, 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 / 516 funds; 5 Year / 4 stars / 496 funds; 10 Year / 4 stars / 392 funds; )
VLIFX (3 Year / 3 stars / 472 funds; 5 Year / 5 stars / 443 funds; 10 Year / 5 stars / 367 funds; )
VALLX (3 Year / 5 stars / 1015 funds; 5 Year / 2 stars / 954 funds; 10 Year / 2 stars / 762 funds; )
VALSX (3 Year / 1 stars / 1015 funds; 5 Year / 2 stars / 954 funds; 10 Year / 2 stars / 762 funds; )
VLAAX (3 Year / 2 stars / 460 funds; 5 Year / 1 stars / 439 funds; 10 Year / 3 stars / 359 funds; )
VALIX (3 Year / 5 stars / 460 funds; 5 Year / 3 stars / 439 funds; 10 Year / 5 stars / 359 funds; )
VAGIX (3 Year / 1 stars / 423 funds; 5 Year / 2 stars / 381 funds; 10 Year / 2 stars / 282 funds; )
Source: Morningstar Direct
Would you please comment on the Fund’s performance relative to the Morningstar Moderate Allocation Category?
The Fund lagged the Morningstar Moderate Allocation Category during the third quarter of 2025 with a loss of 3.39% versus the category’s average gain of 4.81%. Equity markets continued their advance, supported by strength in mega-cap technology stocks and investor enthusiasm around artificial intelligence (AI). However, this narrow market leadership, largely concentrated in a small number of companies, created a challenging environment for the Fund, which maintains a disciplined focus on consistent, high-quality companies rather than more speculative growth themes.
Please visit the Fund’s performance page for complete performance information.
What is the current market-cap breakdown of the equity portfolio, and how is the Fund allocated between equities and fixed income?
The Fund’s flexible allocation allows it to adjust positioning based on relative opportunities across asset classes. As of September 30, 2025, the portfolio was invested approximately 68% in equities, 31% in bonds, and 1% in cash. Compared to the Fund’s allocation as of June 30, 2025, the equity exposure increased slightly during 3Q.
Within equities, the Fund continues to emphasize large- and mid-cap companies with consistent earnings and stock price growth, while maintaining below-average exposure to the largest “giant-cap” names compared to the Morningstar Moderate Allocation Category average. At quarter-end, the equity portfolio was 44.90% large cap, 46.59% mid cap, and 8.51% small cap, reflecting our conviction that high-quality companies outside the largest tier offer superior long-term growth potential.
In the fixed income sleeve, over 99% of debt securities remained investment grade (rated BBB or higher), consistent with the Fund’s emphasis on quality and capital preservation.
Source: Morningstar as of 9/30/25
How many companies are currently held in the equity portfolio, and how many of the top 20 largest U.S. companies does the Fund own?
As of quarter-end, the Fund held 32 equity positions that have demonstrated long-term, consistent growth, and that we believe are well-positioned for continued growth across economic cycles.
The Fund continued to own none of the top 20 largest U.S. companies as of September 30, 2025. This absence reflects our belief that many mega-cap stocks currently trade at valuations that do not adequately compensate for slowing growth or heightened investor expectations. Costco Wholesale Corp. (COST), which was previously among the top 20, is still held in the Fund as of quarter-end, although now Costco is ranked as the 21st largest company by market capitalization. The Fund remains positioned in companies with durable franchises, strong cash flows, and consistent track records of compounding value.