<PAGE>
INVESTMENT ADVISER
Value Line, Inc.
220 East 42nd Street, New York, NY 10017-5891
DISTRIBUTOR
Value Line Securities, Inc.
220 East 42nd Street, New York, NY 10017-5891
CUSTODIAN BANK
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
SHAREHOLDER SERVICING AGENT
State Street Bank and Trust Company c/o NFDS
P.O. Box 419729, Kansas City, MO 64141-6729
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas, New York, N.Y. 10036
LEGAL COUNSEL
Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite 100
Greenwich, CT 06830
BOARD OF DIRECTORS
Jean Bernhard Buttner Leo R. Futia
Charles E. Reed Paul Craig Roberts
John W. Chandler
OFFICERS
Jean Bernhard Buttner Stephen Grant
CHAIRMAN AND PRESIDENT VICE PRESIDENT
David T. Henigson
VICE PRESIDENT, SECRETARY/TREASURER
Alan N. Hoffman
VICE PRESIDENT
Jack M. Houston Stephen La Rosa
ASSISTANT ASSISTANT
SECRETARY/TREASURER SECRETARY/TREASURER
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they do
not express an opinion thereon.
This unaudited report is issued for the information of shareholders. It is not
authorized for distribution to prospective investors unless preceded or
accompanied by a currently effective prospectus of the Fund (obtainable from the
Distributor).
VLF 50685
----------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1995
-------------------------
THE VALUE LINE
FUND, INC.
[LOGO]
VALUE LINE
MUTUAL FUNDS
<PAGE>
[LOGO] TO OUR VALUE LINE
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The Value Line Fund earned a total return of 16.59% in the first six months of
1995, versus a total return of 20.21% for the unmanaged Standard & Poor's 500
Index.
As in 1994, the first half of 1995 saw large-capitalization stocks lead the way
in performance. Stock indexes of mid-size and smaller companies again lagged, as
seen, for example, in the 17.62% return of the unmanaged S&P Midcap 400 and the
13.29% return of the unmanaged Russell 2000. Your Fund holds a well diversified
portfolio of small-cap, mid-cap, and large-cap stocks, with an average market
capitalization significantly less than that of the S&P 500. This made it
difficult to keep pace with the S&P 500 in the recent period. In addition, for
liquidity and risk-reduction purposes, the Fund maintained a cash position
averaging 8% to 10% in the year's first half. Doing so penalized performance
during this period of steeply rising stock prices.
In the same period, your Fund did outperform the universe from which it selects
all its stocks. The unmanaged Value Line Arithmetic Average of approximately
1700 stocks rose 15.08% in the six months. The Value Line Timeliness-TM- Ranking
System, celebrating its 30th anniversary, continued its long record of success,
as the Rank 1 and 2 stocks outperformed those with Ranks 3, 4, and 5. Rank 1 and
2 stocks have superior recent earnings and stock-price momentum, combined with
attractive valuations. Your Fund buys primarily these top-ranked issues, plus
some Rank 3s for diversification purposes. The investment style is one of
"growth" rather than "value." That is, the Fund's holdings tend to be stocks of
fast-growing companies that trade at relatively high price/earnings ratios.
Technology and healthcare are moderately overweighted in the portfolio, while
energy and utility stocks are underweighted. Still, to reduce risk, the Fund
makes an effort to remain well diversified and limit exposure to any one sector.
The Fund currently holds about 160 stocks.
As detailed in the Economic Observations box, U.S. economic growth has slowed in
recent months. We do not expect the economy to slip into recession. With
inflation apparently still remaining under good control, the economy should
continue to be at least a moderately attractive environment for U.S. stocks.
We appreciate your confidence in The Value Line Fund and look forward to serving
your investment needs in the future.
Sincerely,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
CHAIRMAN AND PRESIDENT
July 16, 1995
2
<PAGE>
FUND SHAREHOLDERS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ECONOMIC OBSERVATIONS
The economy slowed to a virtual crawl in the second quarter, with real,
inflation-adjusted gross domestic product rising by a scant 0.5%. This narrow
increase in growth, which follows much healthier expansion rates of 5.1% and
2.7% in the final quarter of 1994 and the first three months of this year,
respectively, was fueled principally by a mild pickup in consumer spending.
Sharply lower levels of housing construction and somewhat weaker auto production
numbers were the quarter's main depressants.
The recent slowing in business activity, however, is likely to prove short-lived
as recent data show that consumer spending is continuing to pick up, while the
sharp reduction in mortgage rates over the past several months seems to be
injecting some life into the housing market. Assuming that these positive trends
persist, we would expect economic growth to accelerate in the third and fourth
quarters. A moderate carryover effect is likely through at least the opening
months of 1996. The risk of recession, which seemed very real just a short time
ago, has lessened noticeably, in the past month or two.
But the news isn't all good. For example, the pending improvement on the
economic front is likely to dissuade the Federal Reserve Board from trimming
interest rates aggressively in the months ahead, since the added stimulus of
substantially lower borrowing costs would, presumably, not be needed. If that's
the case, the stock market, which continues to be partially underpinned by the
expectation of further interest-rate reductions, would have a key support
mechanism removed.
- --------------------------------------------------------------------------------
*PERFORMANCE DATA:
<TABLE>
<CAPTION>
AVERAGE ANNUAL GROWTH OF AN ASSUMED
TOTAL RETURN INVESTMENT OF $10,000
-------------- ---------------------
<S> <C> <C>
1 year ended 6/30/95 . . . 23.31% $ 12,331
5 years ended 6/30/95. . . 11.55% $ 17,269
10 years ended 6/30/95. . . 13.49% $ 35,436
<FN>
*THE PERFORMANCE DATA QUOTED REPRESENT PAST PERFORMANCE AND ARE NO GUARANTEE OF
FUTURE PERFORMANCE. THE AVERAGE ANNUAL TOTAL RETURNS AND GROWTH OF AN ASSUMED
INVESTMENT OF $10,000 INCLUDES DIVIDENDS REINVESTED AND CAPITAL GAINS
DISTRIBUTIONS ACCEPTED IN SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF
AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTMENT, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN ITS ORIGINAL COST.
</TABLE>
3
<PAGE>
THE VALUE LINE FUND, INC.
PORTFOLIO HIGHLIGHTS AT JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TEN LARGEST HOLDINGS*
- -----------------------------------------------------------------------------------
DOLLARS PERCENTAGE
ISSUE SHARES (IN THOUSANDS) OF NET ASSETS
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
McDonnell Douglas Corp. 71,000 $ 5,449 1.8%
Andrew Corp. 81,000 4,688 1.6
Capital Cities/ABC, Inc. 43,000 4,644 1.6
Medtronic Inc. 60,000 4,628 1.5
Safeway, Inc. 119,400 4,462 1.5
Vishay Intertechnology, Inc. 111,300 4,021 1.3
Symbol Technologies, Inc. 104,000 3,991 1.3
Cardinal Health, Inc. 81,500 3,851 1.3
Equifax, Inc. 115,000 3,838 1.3
Staples, Inc. 132,750 3,833 1.3
- -----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FIVE LARGEST INDUSTRY CATEGORIES*
----------------------------------------------------------------
DOLLARS PERCENTAGE
INDUSTRY (IN THOUSANDS) OF NET ASSETS
----------------------------------------------------------------
<S> <C> <C>
Medical Supplies $ 24,255 8.1%
Chemical-Specialty 12,821 4.3
Electronics 12,455 4.2
Computer Software & Services 12,324 4.1
Office Equipment & Supplies 11,138 3.7
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FIVE LARGEST NET SECURITY PURCHASES*+
----------------------------------------------------------------
COST
ISSUE (IN THOUSANDS)
----------------------------------------------------------------
<S> <C>
Xerox Corp. $ 2,740
Ceridian Corp. 2,375
Northrop Grumman Corp. 2,180
Bergen Brunswig Corp. Class "A" 2,142
Sigma-Aldrich Corp. 2,004
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FIVE LARGEST NET SECURITY SALES*+
----------------------------------------------------------------
PROCEEDS
ISSUE (IN THOUSANDS)
----------------------------------------------------------------
<S> <C>
Clark Equipment Co. $ 5,431
United States Shoe Corp. 4,256
Harley-Davidson, Inc. 3,578
Gillette Co. 3,292
Premark International, Inc. 2,949
----------------------------------------------------------------
</TABLE>
* Exclusive of fixed-income securities.
+ For the six months ended June 30, 1995.
4
<PAGE>
<TABLE>
<CAPTION>
THE VALUE LINE FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE
SHARES (IN THOUSANDS)
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (90.7%)
ADVERTISING (1.4%)
29,000 *Heritage Media Corp. Class "A" . . . . . $ 837
56,700 Omnicom Group, Inc.. . . . . . . . . . . 3,438
----------
4,275
AEROSPACE/DEFENSE (3.7%)
12,000 Logicon, Inc.. . . . . . . . . . . . . . 534
12,000 Loral Corp.. . . . . . . . . . . . . . . 621
71,000 McDonnell Douglas Corp.. . . . . . . . . 5,449
47,000 Northrop Grumman Corp. . . . . . . . . . 2,450
25,000 Rockwell International Corp. . . . . . . 1,144
15,000 Sundstrand Corp. . . . . . . . . . . . . 896
----------
11,094
BANK (0.8%)
38,000 Midlantic Corp.. . . . . . . . . . . . . 1,520
5,000 Wells Fargo & Co.. . . . . . . . . . . . 901
----------
2,421
BANK-MIDWEST (0.1%)
10,000 Star Banc Corp.. . . . . . . . . . . . . 460
BEVERAGE-ALCOHOLIC (0.5%)
35,000 *Canadaigua Wine Co., Inc. Class "A". . . 1,566
BEVERAGE-SOFT DRINK (0.9%)
80,000 Coca-Cola Enterprises, Inc.. . . . . . . 1,750
20,000 PepsiCo Inc. . . . . . . . . . . . . . . 913
----------
2,663
BROADCASTING/CABLE TV (2.7%)
43,000 Capital Cities/ABC, Inc. . . . . . . . . 4,644
76,196 *Viacom, Inc. Class "B" . . . . . . . . . 3,534
----------
8,178
CANADIAN ENERGY (0.4%)
30,000 Imperial Oil Ltd.. . . . . . . . . . . . 1,114
CHEMICAL-DIVERSIFIED (1.7%)
19,000 First Mississippi Corp.. . . . . . . . . 648
35,000 Norsk Hydro A.S. (ADR) . . . . . . . . . 1,461
40,000 Pall Corp. . . . . . . . . . . . . . . . 890
169,300 Terra Industries, Inc. . . . . . . . . . 2,053
----------
5,052
CHEMICAL-SPECIALTY (4.3%)
50,000 *Airgas, Inc. . . . . . . . . . . . . . . 1,344
22,000 Engelhard Corp.. . . . . . . . . . . . . 943
63,000 Hercules, Inc. . . . . . . . . . . . . . 3,071
47,000 International Flavors &
Fragrances Inc. . . . . . . . . . . . 2,338
97,000 Praxair, Inc.. . . . . . . . . . . . . . 2,425
17,000 Schulman (A.), Inc.. . . . . . . . . . . 489
45,000 Sigma-Aldrich Corp.. . . . . . . . . . . 2,211
----------
12,821
COMPUTER AND
PERIPHERALS (2.4%)
18,000 *Cabletron Systems, Inc.. . . . . . . . . 958
35,000 *EMC Corp.. . . . . . . . . . . . . . . . 849
39,000 International Business
Machines Corp.. . . . . . . . . . . . 3,744
27,000 *SCI Systems, Inc.. . . . . . . . . . . . 675
22,000 *Silicon Graphics, Inc. . . . . . . . . . 877
----------
7,103
COMPUTER SOFTWARE
& SERVICES (4.1%)
79,000 *Ceridian Corp. . . . . . . . . . . . . . 2,913
48,000 Computer Associates
International, Inc. . . . . . . . . . 3,252
56,000 *Informix Corp. . . . . . . . . . . . . . 1,421
46,000 National Data Corp.. . . . . . . . . . . 1,064
45,000 *Oracle Systems Corp. . . . . . . . . . . 1,738
22,000 *Policy Management Systems Corp.. . . . . 1,012
24,000 *Sterling Software Inc. . . . . . . . . . 924
----------
12,324
DIVERSIFIED COMPANIES (3.3%)
40,000 Blount, Inc. Class "A" . . . . . . . . . 1,785
121,000 Danaher Corp.. . . . . . . . . . . . . . 3,660
12,000 ITT Corp.. . . . . . . . . . . . . . . . 1,410
19,000 *Itel Corp. . . . . . . . . . . . . . . . 741
109,725 Mark IV Industries, Inc. . . . . . . . . 2,359
----------
9,955
5
<PAGE>
<CAPTION>
THE VALUE LINE FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE
SHARES (IN THOUSANDS)
- --------------------------------------------------------------------------------
<C> <S> <C>
DRUG (2.1%)
14,000 Bristol-Myers Squibb Co. . . . . . . . . $ 954
111,000 Mylan Laboratories Inc.. . . . . . . . . 3,413
21,000 Pfizer, Inc. . . . . . . . . . . . . . . 1,940
----------
6,307
DRUGSTORE (0.3%)
35,000 Rite Aid Corp. . . . . . . . . . . . . . 897
ELECTRIC UTILITY-
CENTRAL (0.2%)
24,000 Illinova Corp. . . . . . . . . . . . . . 609
ELECTRIC UTILITY-EAST (0.2%)
20,000 American Electric Power Co., Inc.. . . . 703
ELECTRICAL EQUIPMENT (0.2%)
12,000 Honeywell, Inc.. . . . . . . . . . . . . 517
ELECTRONICS (4.2%)
22,000 AMP Inc. . . . . . . . . . . . . . . . . 929
28,000 *Dynatech Corp. . . . . . . . . . . . . . 525
53,000 *General Instrument Corp. . . . . . . . . 2,034
15,000 Molex, Inc.. . . . . . . . . . . . . . . 581
17,000 Scientific-Atlanta, Inc. . . . . . . . . 374
104,000 *Symbol Technologies, Inc.. . . . . . . . 3,991
111,300 *Vishay Intertechnology, Inc. . . . . . . 4,021
----------
12,455
ENVIRONMENTAL (0.6%)
50,000 Browning-Ferris Industries, Inc. . . . . 1,806
EUROPEAN DIVERSIFIED (0.2%)
20,000 Danka Business Systems PLC (ADR) . . . . 484
FINANCIAL SERVICES (3.5%)
56,000 *CUC International, Inc.. . . . . . . . . 2,352
42,000 Countrywide Credit Industries, Inc.. . . 882
75,000 Green Tree Financial Corp. . . . . . . . 3,328
20,000 Household International, Inc.. . . . . . 990
82,500 Paychex, Inc.. . . . . . . . . . . . . . 2,991
----------
10,543
FOOD PROCESSING (2.8%)
164,500 Archer-Daniels-Midland Co. . . . . . . . 3,064
20,000 Heinz (H.J.) Co. . . . . . . . . . . . . 887
93,000 Hudson Foods, Inc. Class "A" . . . . . . 1,290
71,000 IBP, Inc.. . . . . . . . . . . . . . . . 3,089
----------
8,330
FOREIGN ELECTRONICS/
ENTERTAINMENT (0.8%)
53,000 Philips Electronics N.V. (N.Y. Shares) . 2,266
FOREIGN
TELECOMMUNICATIONS (1.0%)
40,000 Ericsson (L.M.) Telephone Co.
Class "B" (ADR) . . . . . . . . . . . 800
20,000 Reuters Holdings PLC Class "B" (ADR) . . 1,003
20,000 Telecom Corp. of
New Zealand Ltd. (ADR) . . . . . . . . 1,212
----------
3,015
GROCERY (2.1%)
19,000 Casey's General Stores, Inc. . . . . . . 342
60,000 *Kroger Co. . . . . . . . . . . . . . . . 1,613
119,400 *Safeway, Inc.. . . . . . . . . . . . . . 4,462
----------
6,417
HEALTHCARE INFORMATION
SYSTEMS (1.1%)
40,000 HBO & Co.. . . . . . . . . . . . . . . . 2,180
25,000 *Medic Computer Systems, Inc. . . . . . . 963
----------
3,143
HOME APPLIANCE (1.2%)
106,000 Black & Decker Corp. . . . . . . . . . . 3,273
6,500 Toro Co. . . . . . . . . . . . . . . . . 182
----------
3,455
6
<PAGE>
<CAPTION>
THE VALUE LINE FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE
SHARES (IN THOUSANDS)
- --------------------------------------------------------------------------------
<C> <S> <C>
HOTEL/GAMING (2.9%)
60,000 *Bally Entertainment Corp.. . . . . . . . $ 735
45,000 *Circus Circus Enterprises, Inc.. . . . . 1,586
85,500 La Quinta Inns, Inc. . . . . . . . . . . 2,309
60,000 *Mirage Resorts, Inc. . . . . . . . . . . 1,837
50,000 *Promus Companies, Inc. . . . . . . . . . 1,950
17,000 *Rio Hotel & Casino, Inc. . . . . . . . . 234
----------
8,651
HOUSEHOLD PRODUCTS (0.4%)
9,000 Lancaster Colony Corp. . . . . . . . . . 322
12,000 Procter & Gamble Co. . . . . . . . . . . 862
----------
1,184
INDUSTRIAL SERVICES (2.1%)
115,000 Equifax, Inc.. . . . . . . . . . . . . . 3,838
85,000 Manpower, Inc. . . . . . . . . . . . . . 2,167
30,000 Uniforce Temporary Personnel, Inc. . . . 278
----------
6,283
INSURANCE-DIVERSIFIED (2.0%)
20,000 Alexander & Alexander Services, Inc. . . 478
34,000 American Bankers Insurance
Group, Inc.. . . . . . . . . . . . . . 1,079
25,000 American International Group, Inc. . . . 2,850
6,000 *CNA Financial Corp.. . . . . . . . . . . 518
23,000 MGIC Investment Corp.. . . . . . . . . . 1,078
----------
6,003
INSURANCE-PROPERTY
& CASUALTY (0.9%)
8,000 General Re Corp. . . . . . . . . . . . . 1,071
104,000 USF & G Corp.. . . . . . . . . . . . . . 1,690
----------
2,761
MACHINERY (3.0%)
20,000 Dover Corp.. . . . . . . . . . . . . . . 1,455
96,000 IDEX Corp. . . . . . . . . . . . . . . . 3,216
72,000 Parker-Hannifin Corp.. . . . . . . . . . 2,610
78,750 *Raymond Corp.. . . . . . . . . . . . . . 1,614
----------
8,895
MACHINERY-CONSTRUCTION
& MINING (0.8%)
45,000 Harnischfeger Industries, Inc. . . . . . 1,558
32,000 JLG Industries, Inc. . . . . . . . . . . 848
----------
2,406
MANUFACTURED HOUSING/
RECREATIONAL VEHICLES (1.9%)
162,500 Clayton Homes, Inc.. . . . . . . . . . . 2,661
122,000 Oakwood Homes Corp.. . . . . . . . . . . 3,126
----------
5,787
MEDICAL SERVICES (0.8%)
24,000 *RoTech Medical Corp. . . . . . . . . . . 666
93,000 Surgical Care Affiliates, Inc. . . . . . 1,779
----------
2,445
MEDICAL SUPPLIES (8.1%)
14,000 A.L. Pharma, Inc. Class "A". . . . . . . 263
38,000 Becton, Dickinson & Co.. . . . . . . . . 2,213
80,000 Bergen Brunswig Corp. Class "A". . . . . 1,830
18,000 *Bio-Rad Laboratories, Inc. Class "A" . . 648
35,000 *Boston Scientific Corp.. . . . . . . . . 1,115
81,500 Cardinal Health, Inc.. . . . . . . . . . 3,851
38,500 *Cordis Corp. . . . . . . . . . . . . . . 2,570
28,300 Invacare Corp. . . . . . . . . . . . . . 1,174
41,000 Johnson & Johnson. . . . . . . . . . . . 2,773
60,000 Medtronic Inc. . . . . . . . . . . . . . 4,628
19,000 *Nellcor, Inc.. . . . . . . . . . . . . . 855
28,000 Puritan-Bennett Corp.. . . . . . . . . . 1,082
25,000 *St. Jude Medical, Inc. . . . . . . . . . 1,253
----------
24,255
NATURAL GAS-DIVERSIFIED (1.3%)
72,000 Panhandle Eastern Corp.. . . . . . . . . 1,755
57,000 Williams Companies, Inc. . . . . . . . . 1,988
----------
3,743
7
<PAGE>
<CAPTION>
THE VALUE LINE FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE
SHARES (IN THOUSANDS)
- --------------------------------------------------------------------------------
<C> <S> <C>
OFFICE EQUIPMENT
& SUPPLIES (3.7%)
80,000 *Office Depot, Inc. . . . . . . . . . . . $ 2,250
68,000 Reynolds & Reynolds Co. Class "A". . . . 2,006
132,750 *Staples, Inc.. . . . . . . . . . . . . . 3,833
26,000 Xerox Corp.. . . . . . . . . . . . . . . 3,049
----------
11,138
OILFIELD SERVICES/
EQUIPMENT (1.2%)
24,000 *BJ Services Co.. . . . . . . . . . . . . 546
42,000 Halliburton Co.. . . . . . . . . . . . . 1,502
19,000 Schlumberger Ltd.. . . . . . . . . . . . 1,180
20,000 *Smith International, Inc.. . . . . . . . 335
----------
3,563
PACKAGING & CONTAINER (0.1%)
7,000 *Sealed Air Corp. . . . . . . . . . . . . 308
PAPER & FOREST
PRODUCTS (1.6%)
15,000 Boise Cascade Corp.. . . . . . . . . . . 608
56,000 Scott Paper Co.. . . . . . . . . . . . . 2,772
60,000 *Stone Container Corp.. . . . . . . . . . 1,275
----------
4,655
PETROLEUM-INTEGRATED (2.6%)
34,000 Amoco Corp.. . . . . . . . . . . . . . . 2,265
8,000 Atlantic Richfield Co. . . . . . . . . . 878
23,000 British Petroleum Co. PLC (ADR). . . . . 1,969
9,000 Mobil Corp.. . . . . . . . . . . . . . . 864
50,000 Occidental Petroleum Corp. . . . . . . . 1,144
20,000 Phillips Petroleum Co. . . . . . . . . . 668
----------
7,788
PRECISION INSTRUMENTS (1.1%)
10,000 *Dionex Corp. . . . . . . . . . . . . . . 457
8,000 Pacific Scientific Co. . . . . . . . . . 143
55,000 Tektronix, Inc.. . . . . . . . . . . . . 2,709
----------
3,309
RECREATION (0.5%)
29,000 Disney (Walt) Co.. . . . . . . . . . . . 1,613
RESTAURANT (1.0%)
52,000 Applebee's International, Inc. . . . . . 1,339
40,000 McDonald's Corp. . . . . . . . . . . . . 1,565
----------
2,904
RETAIL-SPECIAL LINES (0.4%)
89,900 *Waban, Inc.. . . . . . . . . . . . . . . 1,337
RETAIL STORE (1.3%)
35,000 *Consolidated Stores Corp.. . . . . . . . 731
97,468 Dollar General Corp. . . . . . . . . . . 3,082
----------
3,813
SHOE (0.5%)
17,000 NIKE, Inc. Class "B" . . . . . . . . . . 1,428
TELECOMMUNICATIONS
EQUIPMENT (2.5%)
60,000 *ADC Telecommunications, Inc. . . . . . . 2,145
81,000 *Andrew Corp. . . . . . . . . . . . . . . 4,688
20,000 *Qualcomm Incorporated. . . . . . . . . . 691
----------
7,524
8
<PAGE>
<CAPTION>
THE VALUE LINE FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE
SHARES (IN THOUSANDS)
- --------------------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS
SERVICE (0.8%)
37,000 Century Telephone Enterprises, Inc.. . . $ 1,050
50,000 Cincinnati Bell Inc. . . . . . . . . . . 1,262
----------
2,312
TEXTILE (0.3%)
39,000 Unifi, Inc.. . . . . . . . . . . . . . . 936
TOILETRIES/COSMETICS (0.2%)
22,000 *Helen of Troy Ltd. . . . . . . . . . . . 462
TRUCKING/TRANSPORTATION
LEASING (1.6%)
50,000 Consolidated Freightways, Inc. . . . . . 1,106
80,000 XTRA Corp. . . . . . . . . . . . . . . . 3,700
----------
4,806
OTHER (0.3%)
40,000 Jostens, Inc.. . . . . . . . . . . . . . 850
----------
TOTAL COMMON STOCKS
AND TOTAL INVESTMENT
SECURITIES (90.7%)
(Cost $218,559). . . . . . . . . . . . . 271,132
----------
<CAPTION>
- --------------------------------------------------------------------------------
VALUE
PRINCIPAL AMOUNT (IN THOUSANDS EXCEPT
(IN THOUSANDS) PER SHARE AMOUNT)
- --------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (10.4%)
$21,100 Federal Home Loan Mortgage Corp.
Discount Notes 6.10%, 7/3/95 . . . . . . $ 21,093
10,000 Federal Farm Credit Bank
Discount Notes 5.90%, 7/17/95. . . . . . 9,974
----------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $31,067) . . . . . . . . . . . . . 31,067
----------
EXCESS OF LIABILITIES OVER CASH
AND RECEIVABLES (-1.1%) . . . . . . . . . . . . . . (3,380)
----------
NET ASSETS (100%). . . . . . . . . . . . . . . . . . $298,819
----------
----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
OUTSTANDING SHARE
($298,819,000 DIVIDED BY 17,911,285 SHARES
OF CAPITAL STOCK OUTSTANDING). . . . . . . . . . . . $ 16.68
----------
----------
<FN>
* NON-INCOME PRODUCING
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
THE VALUE LINE FUND, INC.
<TABLE>
<CAPTION>
STATEMENT OF ASSETS
AND LIABILITIES
AT JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
Dollars
(IN THOUSANDS
EXCEPT PER-
SHARE AMOUNT)
--------------
<S> <C>
ASSETS:
Investment securities, at value
(Cost--$218,559) . . . . . . . . . . . . . . . . . $ 271,132
Short-term investments (Cost--$31,067) . . . . . . 31,067
Cash . . . . . . . . . . . . . . . . . . . . . . . . 35
Receivable for securities sold . . . . . . . . . . . 2,167
Dividends receivable . . . . . . . . . . . . . . . . 265
Receivable for capital shares sold . . . . . . . . . 46
-----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . 304,712
-----------
LIABILITIES:
Payable for securities purchased . . . . . . . . . . 5,406
Payable for capital shares repurchased . . . . . . . 233
Accrued expenses:
Advisory fee . . . . . . . . . . . . . . . . . . . 161
Other. . . . . . . . . . . . . . . . . . . . . . . 93
-----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . 5,893
-----------
NET ASSETS:
Capital stock, at $1.00 par value
(authorized 50,000,000, outstanding
17,911,285 shares) . . . . . . . . . . . . . . . . 17,911
Additional paid-in capital . . . . . . . . . . . . . 219,257
Excess of dividends over investment
income--net . . . . . . . . . . . . . . . . . . . . (108)
Accumulated net realized gain on
investments. . . . . . . . . . . . . . . . . . . . 9,186
Unrealized net appreciation of investments . . . . . 52,573
-----------
NET ASSETS . . . . . . . . . . . . . . . . . . . $ 298,819
-----------
-----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
OUTSTANDING SHARE ($298,819,000
DIVIDED BY 17,911,285 SHARES OUTSTANDING) . . $ 16.68
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
Dollars
(IN THOUSANDS)
---------------
<S> <C>
INVESTMENT INCOME:
Dividends (Net of foreign withholding
taxes of $12). . . . . . . . . . . . . . . . . . . $ 1,343
Interest . . . . . . . . . . . . . . . . . . . . . . 828
-----------
TOTAL INCOME . . . . . . . . . . . . . . . . . . 2,171
-----------
EXPENSES:
Advisory fee . . . . . . . . . . . . . . . . . . . . 935
Transfer agent fees. . . . . . . . . . . . . . . . . 103
Postage. . . . . . . . . . . . . . . . . . . . . . . 29
Auditing and legal fees. . . . . . . . . . . . . . . 26
Telephone and wire charges . . . . . . . . . . . . . 23
Custodian fees . . . . . . . . . . . . . . . . . . . 22
Registration and filing fees . . . . . . . . . . . . 20
Printing and stationery. . . . . . . . . . . . . . . 18
Insurance, dues, and other . . . . . . . . . . . . . 11
Directors' fees and expenses . . . . . . . . . . . . 6
-----------
TOTAL EXPENSES . . . . . . . . . . . . . . . . . 1,193
-----------
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . 978
-----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS--NET:
Realized Gain--Net . . . . . . . . . . . . . . . 11,230
Change in Unrealized Appreciation. . . . . . . . 31,150
-----------
NET REALIZED GAIN AND CHANGE IN UNREALIZED
APPRECIATION ON INVESTMENTS. . . . . . . . . . . . 42,380
-----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS . . . . . . . . . . . . . . . . . . . . $ 43,358
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
THE VALUE LINE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
AND FOR THE YEAR ENDED DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
------------- ------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
OPERATIONS:
Investment income--net. . . . . . . . . . . . . . $ 978 $ 1,592
Realized gain on investments--net . . . . . . . . 11,230 20,073
Change in unrealized appreciation . . . . . . . . 31,150 (35,685)
----------- -----------
Net increase (decrease) in net assets
from operations . . . . . . . . . . . . . . . . 43,358 (14,020)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Investment income--net . . . . . . . . . . . . . (1,086) (1,623)
Realized gain from investment transactions--net. -- (42,328)
----------- -----------
(1,086) (43,951)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares . . . . . . . . 24,714 32,423
Net proceeds from reinvestment of distributions to
shareholders . . . . . . . . . . . . . . . . . 998 41,389
Cost of shares repurchased . . . . . . . . . . . (41,928) (74,173)
----------- -----------
Decrease from capital share transactions . . . . (16,216) (361)
----------- -----------
TOTAL INCREASE (DECREASE) . . . . . . . . . . . . 26,056 (58,332)
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . 272,763 331,095
----------- -----------
End of period . . . . . . . . . . . . . . . . . . $ 298,819 $ 272,763
----------- -----------
----------- -----------
Excess of dividends over investment income--net,
at end of period. . . . . . . . . . . . . . . . $ (108) $ --
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. The following is a
summary of significant accounting policies consistently followed by the Fund in
the preparation of its financial statements.
(A) SECURITY VALUATION. Securities listed on a securities exchange and
over-the-counter securities traded on the NASDAQ national market are valued at
the closing sales price on the date as of which the net asset value is being
determined. In the absence of closing sales prices for such securities and for
securities traded in the over-the-counter market, the
11
<PAGE>
THE VALUE LINE FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
security is valued at the midpoint between the latest available and
representative asked and bid prices. Securities for which market quotations are
not readily available or which are not readily marketable and all other assets
of the Fund are valued at fair value as the Board of Directors may determine in
good faith. Short-term instruments with maturities of 60 days or less at the
date of purchase are valued at amortized cost, which approximates market value.
(B) REPURCHASE AGREEMENTS. In connection with transactions in repurchase
agreements, the Fund's custodian takes possession of the underlying collateral
securities, the value of which exceeds the principal amount of the repurchase
transaction, including accrued interest. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. In
the event of default of the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral or proceeds may be subject to legal proceedings.
(C) FEDERAL INCOME TAXES. It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies, including the distribution requirements of the Tax Reform Act of
1986, and to distribute all of its taxable income to its shareholders.
Therefore, no federal income tax or excise tax provision is required.
(D) SECURITY TRANSACTIONS AND DISTRIBUTIONS. Security transactions are accounted
for on the date the securities are purchased or sold. Interest income is accrued
as earned. Realized gains and losses on sales of securities are calculated for
financial accounting and federal income tax purposes on the identified cost
basis. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
(E) AMORTIZATION. Discounts on debt securities are amortized to interest income
over the life of the security with a corresponding increase to the security's
cost basis; premiums on debt securities are not amortized.
2. CAPITAL SHARE TRANSACTIONS, DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Transactions in capital stock were as follows (IN THOUSANDS EXCEPT PER SHARE
AMOUNTS):
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
------------ ------------
<S> <C> <C>
Shares sold 1,594 1,879
Shares issued to shareholders
in reinvestment of dividends
and distributions 63 2,912
------------ ------------
1,657 4,791
Shares repurchased 2,736 4,295
------------ ------------
Net (decrease) increase (1,079) 496
------------ ------------
------------ ------------
Dividends per share $ .06 $ .09500
------------ ------------
------------ ------------
Distributions per share from
net realized gains $ -- $2.61005
------------ ------------
------------ ------------
</TABLE>
On June 30, 1995, the Board of Directors declared a dividend from investment
income of $.02 per share to shareholders of record on September 13, 1995,
payable on September 19, 1995.
12
<PAGE>
THE VALUE LINE FUND, INC.
JUNE 30, 1995
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities, excluding short-term securities,
were as follows:
SIX MONTHS ENDED
JUNE 30, 1995
(UNAUDITED)
----------------
(IN THOUSANDS)
PURCHASES:
Investment Securities. . . $ 138,376
----------------
----------------
SALES:
Investment Securities. . . $ 134,616
----------------
----------------
At June 30, 1995, the aggregate cost of investment securities and short-term
investments for federal income tax purposes was $249,646,000. The aggregate
appreciation and depreciation of investments at June 30, 1995, based on a
comparison of investment values and their costs for federal income tax purposes,
was $54,392,000 and $1,839,000, respectively, resulting in a net appreciation of
$52,553,000.
For federal income tax purposes, realized losses incurred after October 31,
within the fiscal year, if so elected by the Fund, are deemed to arise on the
first day of the following fiscal year. The Fund incurred and elected to defer
net capital losses of approximately $2,034,000 during the fiscal year ended
December 31, 1994. To the extent future capital gains are offset by such capital
losses, the Fund does not anticipate distributing any such gains to its
shareholders.
4. INVESTMENT ADVISORY CONTRACT, MANAGEMENT FEES AND TRANSACTIONS WITH
AFFILIATES
An advisory fee of $935,000 was paid or payable to Value Line, Inc. (the
Adviser), the Fund's investment adviser, for the six months ended June 30, 1995.
This was computed at the rate of .70% of the first $100 million of the Fund's
average daily net assets plus .65% on the excess thereof and paid monthly. The
Adviser provides research and investment programs and supervision of the
investment portfolio and pays costs of administrative services, office space,
and equipment and compensation of administrative, bookkeeping, and clerical
personnel necessary for managing the affairs of the Fund. The Adviser also
provides persons, satisfactory to the Fund's Board of Directors, to act as
officers and employees of the Fund and pays their salaries and wages. The Fund
bears all other costs and expenses. If the aggregate expenses of the Fund, other
than taxes, interest, brokerage commissions, and extraordinary expenses, exceed
the expense limitation imposed by any state in which the Fund's shares are sold,
the advisory fee will be reduced by the amount of such excess, or the amount of
such excess will be refunded. No such reimbursement was required for the six
months ended June 30, 1995.
A fee of $1,890 for printing services was paid or payable to the Adviser for the
six months ended June 30, 1995.
Certain officers and directors of the Adviser and its wholly owned subsidiary,
Value Line Securities, Inc. (the Fund's distributor and a
registeredbroker/dealer), are also officers and a director of the Fund. During
the six months ended June 30, 1995, the Fund paid brokerage commissions
totalling $212,000 to the Distributor, which clears its transactions through
unaffiliated brokers.
The Adviser and/or affiliated companies and the Value Line, Inc. Profit Sharing
and Savings Plan owned 2,197,000 shares of the Fund's capital stock,
representing 12.3% of the outstanding shares at June 30, 1995. In addition,
certain officers and directors of the Fund owned 126,000 shares of the Fund,
representing 0.7% of the outstanding shares.
13
<PAGE>
THE VALUE LINE FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHTOUT EACH PERIOD:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1995 ----------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD . . . . $14.36 $17.90 $18.16 $20.17 $14.42 $15.06
-------- -------- -------- -------- -------- --------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income. . . . . . . . .05 .10 .08 .16 .22 .25
Net gains or losses on securities and
(both realized and unrealized). . 2.33 (.93) 1.13 .73 6.69 ( .38)
-------- -------- -------- -------- -------- --------
Total from investment operations . . 2.38 (.83) 1.21 .89 6.91 ( .13)
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income (.06) (.10) ( .08) ( .17) (.24) ( .27)
Distributions from capital gains . . -- (2.61) (1.39) (2.73) (.92) ( .24)
-------- -------- -------- -------- -------- --------
Total distributions. . . . . . . . ( .06) (2.71) (1.47) (2.90) (1.16) ( .51)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD . . . . . . . $16.68 $14.36 $17.90 $18.16 $20.17 $14.42
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
TOTAL RETURN . . . . . . . . . . . . . . . . 16.59%+ -4.47% 6.82% 4.69% 48.86% -0.76%
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (IN THOUSANDS) . . $298,819 $272,763 $331,095 $327,431 $320,635 $202,061
Ratio of operating expenses to
average net assets . . . . . . . . . . . .85%* .82% .80% .84% .71% .71%
Ratio of net investment income to
average net assets. . . . . . . . . . . .70%* .54% .41% .90% 1.35% 1.83%
Portfolio turnover rate. . . . . . . . . . . .53%+ 150% 120% 129% 109% 84%
<FN>
+ Not annualized
* Annualized
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
THE VALUE LINE FAMILY OF FUNDS
- --------------------------------------------------------------------------------
1950 -- THE VALUE LINE FUND seeks long-term growth of capital along with modest
current income by investing substantially all of its assets in common stocks or
securities convertible into common stock.
1952 -- THE VALUE LINE INCOME FUND'S primary investment objective is income, as
high and dependable as is consistent with reasonable growth. Capital growth to
increase total return is a secondary objective.
1956 -- THE VALUE LINE SPECIAL SITUATIONS FUND seeks to obtain long-term growth
of capital by investing not less than 80% of its assets in "special situations".
No consideration is given to achieving current income.
1972 -- VALUE LINE LEVERAGED GROWTH INVESTOR'S sole investment objective is to
realize capital growth by investing substantially all of its assets in common
stocks. The Fund may borrow up to 50% of its net assets to increase its
purchasing power.
1979 -- THE VALUE LINE CASH FUND, a money market fund, seeks high current income
consistent with preservation of capital and liquidity.
1981 -- VALUE LINE U.S. GOVERNMENT SECURITIES FUND seeks maximum income without
undue risk to principal. Under normal conditions, at least 80% of the value of
its assets will be invested in issues of the U.S. Government and its agencies
and instrumentalities.
1983 -- VALUE LINE CENTURION FUND seeks long-term growth of capital as its sole
objective by investing primarily in stocks ranked 1 or 2 by Value Line for
year-ahead relative performance. The Fund is available to investors only through
the purchase of Guardian Investor, a tax deferred variable annuity, or Value
Plus, a variable life insurance policy.
1984 -- THE VALUE LINE TAX EXEMPT FUND seeks to provide investors with maximum
income exempt from federal income taxes while avoiding undue risk to principal.
The Fund offers investors a choice of two portfolios: a Money Market Portfolio
and a High-Yield Portfolio.
1985 -- VALUE LINE CONVERTIBLE FUND seeks high current income together with
capital appreciation primarily from convertible securities ranked 1 or 2 for
year-ahead performance by the Value Line Convertible Ranking System.
1986 -- VALUE LINE AGGRESSIVE INCOME TRUST seeks to maximize current income by
investing in high-yielding, lower-rated, fixed-income securities.
1987 -- VALUE LINE NEW YORK TAX EXEMPT TRUST seeks to provide New York taxpayers
with maximum income exempt from New York State, New York City and federal income
taxes while avoiding undue risk to principal.
1987 -- VALUE LINE STRATEGIC ASSET MANAGEMENT TRUST invests in stocks, bonds and
cash equivalents according to computer trend models developed by Value Line. The
objective is to professionally manage the optimal allocation of these
investments at all times. The Fund is available to investors only through the
purchase of the Guardian Investor, a tax deferred variable annuity, or Value
Plus, a variable life insurance policy.
1992 -- THE VALUE LINE ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND seeks
high current income consistent with low volatility of principal by investing
primarily in adjustable rate U.S. Government securities.
1993 -- VALUE LINE SMALL-CAP GROWTH FUND invests primarily in common stocks or
securities convertible into common stock, with its primary objective being
long-term growth of capital.
1993 -- VALUE LINE ASSET ALLOCATION FUND seeks high total investment return,
consistent with reasonable risk. The Fund invests in stocks, bonds and money
market instruments utilizing quantitative modeling to determine the correct
asset mix.
- --------------------------------------------------------------------------------
FOR MORE COMPLETE INFORMATION ABOUT ANY OF THE VALUE LINE FUNDS, INCLUDING
CHARGES AND EXPENSES, SEND FOR A PROSPECTUS FROM VALUE LINE SECURITIES, INC.,
220 EAST 42ND STREET, NEW YORK, NEW YORK 10017-5891 OR CALL 1-800-223-0818, 24
HOURS A DAY, 7 DAYS A WEEK. READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR
SEND MONEY.
15
