Why the Value Line Asset Allocation Fund?

Portfolio Manager Stephen E. Grant talks about an investment that seeks opportunity yet provides the advantage of a flexible asset allocation.


Hello, I’m Steve Grant, portfolio manager of the Value Line Asset Allocation Fund since inception in 1993.

Are you looking for an investment that seeks opportunity, yet provides the advantage of a flexible asset allocation? Consider the Value Line Asset Allocation Fund. The Fund is a blend of growth-oriented stocks that have demonstrated impressive long-term results, combined with a portfolio of high-quality investment grade fixed income securities. 

The Fund is designed to have a flexible asset allocation because opportunity is constantly changing. Unlike traditional balanced funds that typically have a 60/40 split between equities and fixed income, the Value Line Asset Allocation Fund‘s equity position generally falls between 60% and 80%, with the remainder in bonds. It is our belief that opportunity should not be confined and requires flexibility to capture capital appreciation without taking on undue risk. 

The Fund’s equity portion is comprised of companies of all sizes—large-, mid- and small-cap stocks. We seek companies with a history of demonstrated and consistent results over long time periods. Generally our holdings have at least a 10 year history of achieving solid growth in both earnings and their stock price. We seek proven results-oriented companies that have stood the test of time and not the high-risk, high-flyers and headline grabbers.

Our disciplined, repeatable process drives our equity results, which are not dependent on just a small group of stocks. The equity portfolio generally contains 150 to 250 stocks. Our insistence on selecting companies with a consistent, proven track record, combined with the portfolio’s wide diversification, lowers the fund’s volatility and gives it a lower risk profile than its peer group.

Our high-quality security selection is not limited to stocks. The Fund’s fixed income portion includes high-quality investment grade corporate securities and Government obligations. We favor intermediate term maturities to capture return and reduce volatility.

We believe that the Value Line Asset Allocation Fund presents a compelling opportunity for investors. With its flexible asset allocation and high-quality stock and bond selection process, the Fund is positioned to play both offense and defense. The fund’s dynamic mix captures opportunity primarily on the equity side, while reducing volatility through fixed income. Our goal is to produce above average returns with below average risk by investing, first and foremost, in proven, time-tested companies that continue to grow their earnings and stock price. 

I’m Steve Grant and thank you for considering Value Line Funds.