Investment Objective and Strategy

The Fund’s investment objective is income, as high and dependable as is consistent with reasonable risk and capital growth to increase total return.

To achieve the Fund's goals, the Adviser invests not less than 70% of the Fund's net assets in common or preferred stocks or securities convertible into common stock which may or may not pay dividends. The balance of the Fund's net assets are primarily invested in U.S. government securities, investment grade debt securities rated at the time of purchase from the highest (AAA) to medium(BBB) quality, other fixed income securities or cash equivalents. The Fund is actively managed by the Adviser, which seeks to purchase companies that have fundamentally strong market positions in growing industries that may enable those companies to increase future sales and earnings at an above average pace in the coming years.

Average Annual Returns as of 10/31/17

YTD 1 Yr 3 Yr 5 Yr 10 Yr
transparent Investor Class - VALIX 21.15% 21.63% 7.89% 10.55% 6.46%
transparent Institutional Class - VLIIX 1 21.40% 21.88% 7.75% 10.46% 6.41%
transparent 60/40 (S&P500/BBgBarc US Agg Bond) 11.26% 14.08% 7.50% 9.88% 6.48%
transparent Morningstar Alloc 70-85% Equity 12.68% 16.53% 5.87% 9.31% 4.59%
Morningstar Alloc 70-85% Equity Ranking - 14/359 29/320 45/284 5/203
Percentile Rank as of 10/31/17 - 4% 11% 20% 5%
VALIX Gross / Net Expense Ratio: 1.16% / 1.16%, VLIIX Gross / Net Expense Ratio*: 4.82% / 0.90%.
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 VLIIX is November 1, 2015.
Morningstar™ Ratings and Rankings based on Investor class shares.
VALIX VLIIX1 60% S&P500 / 40% BCAGG MMAF
YTD 21.15% 21.40% 11.26% 12.68%
1 Yr 21.63% 21.88% 14.08% 16.53%
3 Yr 7.89% 7.75% 7.50% 5.87%
5 Yr 10.55% 10.46% 9.88% 9.31%
10 Yr 6.46% 6.41% 6.48% 4.59%
VALIX Gross / Net Expense Ratio: 1.16% / 1.16%, VLIIX Gross / Net Expense Ratio*: 4.82% / 0.90%.
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 VLIIX is November 1, 2015.
Morningstar™ Ratings and Rankings based on Investor class shares.

Morningstar as of 10/31/17

Category Alloc 70-85% Equity
3 Year of 320 Funds
5 Year of 284 Funds
10 Year of 203 Funds
Overall of 320 Funds

* 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 (excluding12b-1 fees and any extraordinary expenses incurred in different amounts by the classes) during the period March 17, 2016 through June 30, 2019 (the “Expense Limitation”). The Adviser and the Distributor may subsequently recover from the Fund 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 Fund’s expense ratio is less than the Expense Limitation. 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.

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 / 557 funds; 5 Year / 4 stars / 480 funds; 10 Year / 2 stars / 360 funds; ) VALLX (3 Year / 4 stars / 1233 funds; 5 Year / 4 stars / 1107 funds; 10 Year / 3 stars / 782 funds; ) VLEOX (3 Year / 4 stars / 598 funds; 5 Year / 4 stars / 530 funds; 10 Year / 4 stars / 397 funds; ) VALSX (3 Year / 3 stars / 557 funds; 5 Year / 3 stars / 480 funds; 10 Year / 3 stars / 360 funds; ) VLAAX (3 Year / 4 stars / 686 funds; 5 Year / 4 stars / 625 funds; 10 Year / 4 stars / 438 funds; ) VALIX (3 Year / 4 stars / 320 funds; 5 Year / 4 stars / 284 funds; 10 Year / 5 stars / 203 funds; ) VAGIX (3 Year / 2 stars / 854 funds; 5 Year / 2 stars / 772 funds; 10 Year / 2 stars / 548 funds; ) VLHYX (3 Year / 2 stars / 136 funds; 5 Year / 1 stars / 127 funds; 10 Year / 1 stars / 103 funds; )

Source: Morningstar Direct