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 50% 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, money market securities and investment grade debt securities rated at the time of purchase from the highest (AAA) to medium (BBB) quality. Although the Fund can invest in companies of any size, it generally invests in U.S. securities issued by larger, more established companies (those with a market capitalization of more than $5 billion).

Average Annual Returns as of 08/31/16

YTD 1 Yr 3 Yr 5 Yr 10 Yr
transparent Investor Class - VALIX 5.24% 7.59% 7.99% 9.16% 6.25%
transparent Institutional Class - VLIIX 1 5.41% 6.85% 7.74% 9.01% 6.18%
transparent 60/40 (S&P500/Barclays US Aggregate Bond) 7.04% 9.92% 9.13% 10.11% 6.46%
transparent Morningstar Alloc 70-85% Equity 6.20% 6.48% 6.70% 8.44% 4.90%
Morningstar Alloc 70-85% Equity Ranking - 120/454 64/383 89/310 20/230
Percentile as of 08/31/16 - 27th 17th 29th 9th
VALIX Gross / Net Expense Ratio: 1.15%, VLIIX Gross / Net Expense Ratio*: 6.19% / 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.
VALIX VLIIX1 60% S&P500 / 40% BCAGG MMAF
YTD 5.24% 5.41% 7.04% 6.20%
1 Yr 7.59% 6.85% 9.92% 6.48%
3 Yr 7.99% 7.74% 9.13% 6.70%
5 Yr 9.16% 9.01% 10.11% 8.44%
10 Yr 6.25% 6.18% 6.46% 4.90%
VALIX Gross / Net Expense Ratio: 1.15%, VLIIX Gross / Net Expense Ratio*: 6.19% / 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 08/31/16

Category Alloc 70-85% Equity
3 Year of 383 Funds
5 Year of 310 Funds
10 Year of 230 Funds
Overall of 383 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, 2017 (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, 2017 only with the agreement of the Fund’s board. The Fund's performance would be lower in the absence of such waivers.

Morningstar™ and Lipper Ratings and 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. The inception dates of Value Line Mutual Funds range from 1950 to 2016. 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 methodology rates funds based on an enhanced Morningstar Risk-Adjusted Return measure, which also accounts for the effects of all sales charges, loads, or redemption fees. Funds are ranked by their Morningstar Risk-Adjusted Return scores and stars are assigned using the following scale: 5 stars for top 10%; 4 stars next 22.5%; 3 stars next 35%; 2 stars next 22.5%; 1 star for bottom 10%. Funds are rated for up to three periods: the trailing three-, five-, and 10-years. For a fund that does not change categories during the evaluation period, the overall rating is calculated using the following weights: At least 3 years, but less than 5 years uses 100% three-year rating. At least 5 years but less than 10 years uses 60% five-year rating / 40% three-year rating. At least 10 years uses 50% ten-year rating / 30% five-year rating / 20% three-year rating. VLIFX (3 Year / 5 stars / 652 funds; 5 Year / 4 stars / 582 funds; 10 Year / 3 stars / 433 funds; ) VALLX (3 Year / 5 stars / 1470 funds; 5 Year / 4 stars / 1278 funds; 10 Year / 3 stars / 920 funds; ) VLEOX (3 Year / 5 stars / 656 funds; 5 Year / 5 stars / 592 funds; 10 Year / 4 stars / 432 funds; ) VALSX (3 Year / 4 stars / 662 funds; 5 Year / 3 stars / 582 funds; 10 Year / 4 stars / 433 funds; ) VLAAX (3 Year / 4 stars / 829 funds; 5 Year / 5 stars / 718 funds; 10 Year / 4 stars / 491 funds; ) VALIX (3 Year / 4 stars / 383 funds; 5 Year / 4 stars / 310 funds; 10 Year / 5 stars / 230 funds; ) VLDSX (3 Year / 2 stars / 252 funds; 5 Year / 1 stars / 156 funds; 10 Year / N/A stars / N/A funds; ) VAGIX (3 Year / 2 stars / 956 funds; 5 Year / 4 stars / 846 funds; 10 Year / 3 stars / 603 funds; ) VLHYX (3 Year / 1 stars / 181 funds; 5 Year / 1 stars / 169 funds; 10 Year / 1 stars / 140 funds; )