<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 18, 1996
FILE NO. 2-71066
FILE NO. 811-2898
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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 19 /X/
and
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 /X/
Amendment No. 19 /X/
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THE VALUE LINE CASH FUND, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
220 East 42nd Street
New York, New York 10017-5891
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP
CODE)
Registrant's Telephone Number, including Area Code: (212) 907-1500
David T. Henigson
Value Line, Inc.
220 East 42nd Street
New York, New York 10017-5891
(NAME AND ADDRESS OF AGENT FOR SERVICE)
Copy to:
Peter D. Lowenstein
Two Greenwich Plaza, Suite 100
Greenwich, CT 06830
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It is proposed that this filing will become effective (check
appropriate box)
/ / immediately upon filing pursuant to paragraph (b)
/X/ on May 1, 1996 pursuant to paragraph (b)
/ / 60 days after filing pursuant to paragraph (a)
/ / on (date) pursuant to paragraph (a) of rule 485
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Pursuant to the provisions of Rule 24f-2(a)(1) under the Investment Company Act
of 1940, Registrant has registered an indefinite number of shares of capital
stock under the Securities Act of 1933. Registrant filed its Rule 24f-2 Notice
for the year ended December 31, 1995 on or about February 6, 1996.
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<PAGE>
THE VALUE LINE CASH FUND, INC.
FORM N-1A
CROSS REFERENCE SHEET
(AS REQUIRED BY RULE 495)
<TABLE>
<CAPTION>
N-1A ITEM NO. LOCATION
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<S> <C> <C>
PART A (PROSPECTUS)
Item 1. Cover Page............................................ Cover Page
Item 2. Synopsis.............................................. Omitted
Item 3. Condensed Financial Information....................... Summary of Fund Expenses; Financial
Highlights
Item 4. General Description of Registrant..................... Cover Page; Investment Objective and
Policies; Investment Restrictions;
Additional Information
Item 5. Management of the Fund................................ Summary of Fund Expenses; Management of
the Fund; Additional Information
Item 6. Capital Stock and Other Securities.................... Dividends, Distributions and Taxes;
Additional Information
Item 7. Purchase of Securities Being Offered.................. How to Buy Shares; Calculation of Net
Asset Value; Investor Services
Item 8. Redemption or Repurchase of Securities................ How to Redeem Shares
Item 9. Pending Legal Proceedings............................. Not Applicable
PART B (STATEMENT OF ADDITIONAL INFORMATION)
Item 10. Cover Page............................................ Cover Page
Item 11. Table of Contents..................................... Table of Contents
Item 12. General Information and History....................... Additional Information (Part A)
Item 13. Investment Objectives and Policies.................... Investment Objective and Policies;
Investment Restrictions
Item 14. Management of the Fund................................ Directors and Officers
Item 15. Control Persons and Principal Holders of Securities... Management of the Fund (Part A);
Directors and Officers
Item 16. Investment Advisory and Other Services................ Management of the Fund (Part A); The
Adviser
Item 17. Brokerage Allocation.................................. Management of the Fund (Part A);
Brokerage Arrangements
Item 18. Capital Stock and Other Securities.................... Additional Information (Part A)
Item 19. Purchase, Redemption and Pricing of Securities Being
Offered............................................. How to Buy Shares; Suspension of
Redemptions; Calculation of Net Asset
Value
Item 20. Tax Status............................................ Taxes
Item 21. Underwriters.......................................... Not Applicable
Item 22. Calculation of Performance Data....................... Calculation of Yield (Part A);
Performance Data
Item 23. Financial Statements.................................. Financial Statements
</TABLE>
PART C
Information required to be included in Part C is set forth under the
appropriate Item, so numbered, in Part C to this Registration Statement.
<PAGE>
<TABLE>
<S> <C>
THE
VALUE LINE PROSPECTUS
CASH FUND, INC. May 1, 1996
</TABLE>
220 East 42nd Street, New York, New York 10017-5891
1-800-223-0818 or 1-800-243-2729
The Value Line Cash Fund, Inc. (the "Fund") is a no-load
investment company whose investment objective is to
secure as high a level of current income as is
consistent with liquidity and preservation of capital.
The Fund invests in short-term money market instruments
maturing in 397 days or less--U.S. government
securities, certificates of deposit, bankers'
acceptances, commercial paper, other corporate debt
obligations--and in repurchase agreements with respect
to U.S. government securities.
The Fund's investment adviser is Value Line, Inc. (the
"Adviser").
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT.
SHARES OF THE FUND ARE OFFERED AT NET ASSET VALUE. THE
FUND ATTEMPTS TO MAINTAIN A STABLE NET ASSET VALUE OF
$1.00 PER SHARE BUT THERE CAN BE NO ASSURANCE THAT IT
WILL BE ABLE TO DO SO AT ALL TIMES. There are no sales
charges or redemption fees.
This Prospectus sets forth concise information about the Fund that a
prospective investor ought to know before investing. This Prospectus
should be retained for future reference. Additional information about the
Fund is contained in a Statement of Additional Information, dated May 1,
1996, which has been filed with the Securities and Exchange Commission and
is incorporated into this Prospectus by reference. A copy of the Statement
of Additional Information may be obtained at no charge by writing or
telephoning the Fund at the address or telephone numbers listed above.
DISTRIBUTOR
Value Line Securities, Inc.
220 East 42nd Street
New York, NY 10017-5891
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<PAGE>
SUMMARY OF FUND EXPENSES
<TABLE>
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES
Sales Load on Purchases..................................................... None
Sales Load on Reinvested Dividends.......................................... None
Deferred Sales Load......................................................... None
Redemption Fees............................................................. None
Exchange Fee................................................................ None
ANNUAL FUND OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees............................................................. .40%
12b-1 Fees.................................................................. None
Other Expenses.............................................................. .17%
Total Fund Operating Expenses............................................... .57%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and (2)
redemption at the end of each time period:....... $ 6 $ 18 $ 32 $ 71
</TABLE>
The foregoing is based upon the expenses for the year ended December 31,
1995, and is designed to assist investors in understanding the various costs and
expenses that an investor in the Fund will bear directly or indirectly. Actual
expenses in the future may be greater or less than these shown.
2
<PAGE>
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
The following information on selected per share data and ratios with respect
to each of the five years in the period ended December 31, 1995, and the related
financial statements, have been audited by Price Waterhouse LLP, independent
accountants, whose unqualified report thereon appears in the Fund's Annual
Report to Shareholders which is incorporated by reference in the Statement of
Additional Information. This information should be read in conjunction with the
financial statements and notes thereto which also appear in the Fund's Annual
Report to Shareholders available from the Fund without charge.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
-----------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
year.............. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net investment
income.......... .054 .037 .031 .037 .059 .079 .091 .074 .063 .065
Dividends from net
investment
income.......... (.054) (.037) (.031) (.037) (.059) (.079) (.091) (.074) (.063) (.065)
Net realized loss
on securities... -- (.005) -- -- -- -- -- -- -- --
Voluntary capital
contribution
from Adviser.... -- .005 -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Changes in net
asset value..... -- -- -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net asset value,
end of year....... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total return........ 5.40% 3.69%* 3.06% 3.74% 5.89% 7.91% 9.05% 7.36% 6.46% 6.52%
Ratios/Supplemental
Data:
Net assets, end of
year (in
thousands)........ $359,343 $341,632 $345,769 $415,190 $438,218 $499,203 $578,348 $596,482 $576,367 $461,076
Ratio of expenses to
average net
assets............ .57% .61% 0.60% 0.60% 0.58% 0.65% 0.64% 0.65% 0.72% 0.76%
Ratio of net
investment income
to average net
assets............ 5.27% 3.63% 3.02% 3.67% 5.74% 7.57% 8.68% 7.14% 6.32% 6.29%
</TABLE>
- ------------------------------
* The total return for 1994 reflects the effect of a voluntary capital
contribution from the Adviser. Without such contribution, the total return
would have been 3.19%.
INVESTMENT OBJECTIVE AND POLICIES
The Fund's investment objective is to seek as high a level of current income
as is consistent with preservation of capital and liquidity. The Fund's
investment objective cannot be changed without shareholder approval. There can
be no assurance that the Fund will achieve its investment objective.
BASIC INVESTMENT STRATEGY
The Fund invests only in short-term instruments (maturing in 397 days or
less) and primarily invests in:
(1) U.S. government obligations such as U.S. Treasury bills, notes or bonds,
and obligations of agencies or instrumentalities of the U.S. government such as
the Federal Home Loan Banks, the Federal Land Banks, or the Federal National
Mortgage Association.
3
<PAGE>
(2) Obligations (including certificates of deposit and bankers acceptances)
of: (a) banks or savings and loan associations subject to regulation by the U.S.
government (including foreign branches of such banks), generally limited to
institutions with a net worth of at least $100 million and to banks where the
bank or its holding company carries a Value Line financial strength rating of at
least "A" (the third highest of nine rating groups) or (b) U.S. branches of
foreign banks, limited to institutions having total assets of not less than $1
billion or its equivalent.
(3) Instruments fully secured or collateralized by the type of obligation
described in the preceding paragraphs.
(4) Commercial paper issued by corporations maturing within 397 days from
the day of purchase and rated Prime-2 or better by Moody's Investors Service,
Inc. ("Moody's") or A-2 or better by Standard & Poor's Corporation ("Standard &
Poor's"), or issued by corporations having unsecured debt outstanding which is
rated at least Aa by Moody's or AA by Standard & Poor's.
(5) Other debt instruments issued by corporations maturing within 397 days
from the day of purchase and rated at least Aa by Moody's or AA by Standard &
Poor's.
See the Statement of Additional Information for an explanation of the Value
Line, Moody's and Standard & Poor's ratings.
The Fund may also purchase variable or floating rate instruments with
periodic demand features referred to as "liquidity puts."
The Fund will limit its portfolio investments to U.S. dollar denominated
instruments that its Board of Directors determines present minimal credit risks
and which are "Eligible Securities" at the time of acquisition. The term
Eligible Securities includes securities rated by the Requisite NRSROs in one of
the two highest short-term rating categories (highest rating is "First Tier
Securities"), securities of issuers that have received such rating with respect
to other short-term debt securities and comparable unrated securities.
"Requisite NRSROs" means (a) any two nationally recognized statistical rating
organizations ("NRSROs") that have issued a rating with respect to a security or
class of debt obligations of an issuer, or (b) one NRSRO, if only one NRSRO has
issued a rating with respect to such security or issuer at the time the Fund
purchases the security. If the Fund acquires securities that are unrated or that
have been rated by a single NRSRO, the acquisition must be approved or ratified
by the Board of Directors.
The Fund may not invest more than 5% of its total assets in the securities
of any one issuer, except for obligations issued or guaranteed by the U.S.
Government, its agencies or instrumentalities. In addition, the Fund may not
invest more than 5% of its total assets in Eligible Securities that have not
received the highest rating from the Requisite NRSROs and unrated securities of
comparable quality ("Second Tier Securities"). Furthermore, the Fund may not
invest more than the greater of 1% of its total assets or $1 million in the
Second Tier Securities of any one issuer.
Investments in obligations of a foreign branch of a U.S. bank and in U.S.
branches of a foreign bank may subject the Fund to additional investment risks.
These risks may include international and political developments, foreign
government restrictions, foreign withholding taxes or possible seizure or
nationalization of foreign deposits. In addition, foreign branches of domestic
banks and foreign banks are not necessarily subject to the same regulatory
requirements that apply to domestic banks, such as reserve requirements, loan
limitations, examinations, accounting and record keeping.
The Adviser uses its best judgment in selecting investments, taking into
consideration rates, terms and marketability of obligations as well as the
capitalization, earnings, liquidity and other
4
<PAGE>
indicators of the financial condition of their issuers in arriving at investment
decisions. Due to fluctuations in the interest rates, the market value of the
securities in the portfolio may vary during the period of the shareholder's
investment in the Fund. To minimize the effect of changing interest rates on the
net asset value of its shares, the Fund intends to keep the average maturity of
its holdings to 90 days or less.
REPURCHASE AGREEMENTS. The Fund may invest temporary cash balances in
repurchase agreements. A repurchase agreement involves a sale of securities to
the Fund, with the concurrent agreement of the seller (a member bank of the
Federal Reserve System or a securities dealer which the Adviser believes to be
financially sound) to repurchase the securities at the same price plus an amount
equal to an agreed-upon interest rate, within a specified time, usually less
than one week, but, on occasion, at a later time. The Fund will make payment for
such securities only upon physical delivery or evidence of book-entry transfer
to the account of the custodian or a bank acting as agent for the Fund.
Repurchase agreements may also be viewed as loans made by the Fund which are
collateralized by the securities subject to repurchase. The value of the
underlying securities will be at least equal at all times to the total amount of
the repurchase obligation, including the interest factor. In the event of a
bankruptcy or other default of a seller of a repurchase agreement, the Fund
could experience both delays in liquidating the underlying securities and
losses, including: (a) possible decline in the value of the underlying security
during the period while the Fund seeks to enforce its rights thereto; (b)
possible subnormal levels of income and lack of access to income during this
period; and (c) expenses of enforcing its rights. The Fund has a fundamental
policy that it will not enter into repurchase agreements which will not mature
within seven days if any such investment, together with all other assets held by
the Fund which are not readily marketable, amounts to more than 10% of its total
assets. The Board of Directors monitors the creditworthiness of parties with
which the Fund enters into repurchase agreements.
INVESTMENT RESTRICTIONS
The Fund has adopted a number of investment restrictions which may not be
changed without shareholder approval. See "Investment Restrictions" in the
Statement of Additional Information.
CALCULATION OF YIELD
From time to time the Fund advertises its "yield" and "effective yield."
BOTH YIELD FIGURES ARE BASED ON HISTORICAL EARNINGS AND ARE NOT INTENDED TO
INDICATE FUTURE PERFORMANCE. The "yield" of the Fund refers to the income
generated by an investment in the Fund over a seven-day period (stated in the
advertisement). This income is then "annualized"; that is, the amount of income
generated by the investment during that week is assumed to be generated each
week over a 52-week period and is shown as a percentage of the investment. The
"effective yield" is calculated similarly but, when annualized, the income
earned by an investment in the Fund is assumed to be reinvested. The "effective
yield" will be slightly higher than the "yield" because of the compounding
effect of this assumed reinvestment. The following is an example of the current
yield calculation for the seven day period ended December 31, 1995:
<TABLE>
<S> <C>
Value of hypothetical account at end of period................... $ 1.000994
Value of hypothetical account at beginning of period............. 1.000000
------------
Base period return............................................... $ .000994
------------
CURRENT YIELD (.000994 x (365/7))................................ 5.18%
EFFECTIVE ANNUAL YIELD, assuming daily compounding............... 5.32 %
</TABLE>
5
<PAGE>
The weighted average life to maturity of the Fund's portfolio on December
31, 1995 was 54.3 days.
The Fund's yield will fluctuate depending on market conditions, on the type,
quality and maturity of the securities in which it invests, and on its operating
expenses. Investors should note that the investment results of the Fund will
vary over time, and any presentation of the Fund's yield for any period should
not be considered as a representation of what an investment may earn or what an
investor's yield may be in any future period.
Comparative performance information may be used from time to time in
advertising or marketing shares of the Fund, including data from Lipper
Analytical Services, Inc. and other industry or financial publications such as
Kiplinger's Personal Finance, Money Magazine, Financial World, Morningstar,
Personal Investors, Forbes, Fortune, Business Week, Investor's Business Daily,
Wall Street Journal, Donoghue, and Barron's.
MANAGEMENT OF THE FUND
The management and affairs of the Fund are supervised by the Fund's Board of
Directors. The Fund's officers conduct and supervise the daily business
operations of the Fund. The Fund's investment decisions are made by an
investment committee of employees of the Adviser. The Fund's Annual Report
contains a discussion on the Fund's performance, which will be made available
upon request and without charge.
THE ADVISER. The Adviser was organized in 1982 and is the successor to
substantially all of the operations of Arnold Bernhard & Co., Inc. ("AB&Co.").
The Adviser was formed as part of a reorganization of AB&Co., a sole
proprietorship formed in 1931 which became a New York corporation in 1946.
AB&Co. currently owns approximately 81% of the outstanding shares of the
Adviser's common stock. Jean Bernhard Buttner, Chairman, President and Chief
Executive Officer of the Adviser, owns a majority of the voting stock of AB&Co.
All of the non-voting stock is owned by or for the benefit of members of the
Bernhard family and employees and former employees of AB&Co. or the Adviser. The
Adviser currently acts as investment adviser to the other Value Line mutual
funds and furnishes investment advisory services to private and institutional
accounts with combined assets in excess of $5 billion. Value Line Securities,
Inc., the Fund's distributor, is a subsidiary of the Adviser. The Adviser
manages the Fund's investments, provides various administrative services and
supervises the Fund's daily business affairs, subject to the authority of the
Board of Directors. The Adviser is paid an advisory fee at an annual rate of
0.4% of the Fund's average daily net assets during the year. For more
information about the Fund's management fees and expenses, see the "Summary of
Fund Expenses" on page 2.
CALCULATION OF NET ASSET VALUE
The net asset value of the Fund's shares is determined once daily as of the
close of trading of the first session of the New York Stock Exchange (currently
4:00 p.m., New York time) on each day that the New York Stock Exchange is open
for trading except on days on which no orders to purchase, sell or redeem Fund
shares have been received. The New York Stock Exchange is currently closed on
New Year's Day, President's Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day. The net asset value per share is
determined by adding the fair value of all securities, cash or other assets,
subtracting liabilities, dividing the
6
<PAGE>
remainder by the number of shares outstanding and adjusting the result to the
nearest full cent per share. It is the policy of the Fund to attempt to maintain
a net asset value of $1.00 per share for purposes of sales and redemptions but
attainment of this objective is not guaranteed.
The securities held by the Fund are valued on the basis of amortized cost
which does not take into account unrealized capital gains or losses. This
involves valuing an instrument at cost and thereafter assuming a constant
amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the market value of the instrument. While this
method provides certainty in valuation, it may result in periods during which
value, as determined by amortized cost, is higher or lower than the price the
Fund would receive if it sold the instrument. Thus, if the use of amortized cost
by the Fund resulted in a lower aggregate portfolio value on a particular day, a
prospective investor in the Fund would be able to obtain a somewhat higher yield
than would result from investment in a fund utilizing solely market values, and
existing investors in the Fund would receive less investment income. The
converse would apply in a period of rising interest rates.
HOW TO BUY SHARES
Shares of the Fund are sold at net asset value next determined after receipt
and acceptance by National Financial Data Services, Inc., the Shareholder
Servicing Agent ("NFDS"), of a purchase order and payment in federal funds.
There are no sales charges. Payments transmitted to NFDS by check are normally
converted to federal funds within two business days following receipt if the
check is drawn on a member bank of the Federal Reserve System.
Dealers in the securities in which the Fund will invest usually require
immediate payment in federal funds (which are monies held by a commercial bank
on deposit in one of the branch banks of the Federal Reserve System). Therefore,
a payment by a Fund shareholder for his shares cannot be invested until it is
converted into federal funds. When such payments are made available in federal
funds prior to 4:00 p.m. New York time, a share purchase order will be entered
at the price determined as of such close and income dividends on the shares
purchased will begin on the day following such investment. During the period of
time prior to the receipt of federal funds an investor's money will not be
invested.
You may make your initial and subsequent investments of $1,000 or more by
mail, by wire or through your broker-dealer. Additional investments of less than
$1,000 (minimum $100) can only be made by mail. In order to assure that the
$1,000 minimum for an initial investment is not circumvented, the Fund may
refuse to effect a transfer from one account to another if any account with a
value of less than $1,000 would result. The Fund may refuse any order for the
purchase of shares. Share certificates will not be issued unless specifically
requested in writing.
MAIL: Send your check to Value Line Funds, c/o NFDS, P.O. Box 419729,
Kansas City, MO 64141-6729. The check should be made payable to "NFDS-Agent",
and initial investments should be accompanied by a completed and signed purchase
application.
IMPORTANT: Shares purchased by check may not
be redeemed until the Fund is reasonably
assured of the final collection of such check,
currently determined to be up to 15 days.
7
<PAGE>
WIRE PURCHASE: An investor should call 1-800-243-2729 to obtain an account
number. After receiving an account number, instruct your commercial bank to wire
transfer "federal funds" via the Federal Reserve System as follows:
State Street Bank and Trust Company, Boston, MA
ABA #011000028
Attn: Mutual Fund Division
DDA #99049868
The Value Line Cash Fund, Inc.
A/C # ________________________
Shareholder name and account information
Tax ID# ________________________
NOTE: A COMPLETED AND SIGNED APPLICATION MUST BE MAILED IMMEDIATELY AND
RECEIVED BY NFDS BEFORE IT CAN HONOR ANY WITHDRAWAL OR EXCHANGE TRANSACTIONS.
After your account has been opened, you may wire additional investments in
the same manner.
For an initial investment made by federal funds wire purchase, the wire must
include a valid social security number or tax identification number. Investors
purchasing shares in this manner will then have 30 days after purchase to
provide the certification and signed account application. All payments should be
made in U.S. dollars and, to avoid fees and delays should be drawn on only U.S.
banks. Until receipt of the above, any distributions from the account will be
subject to 31% withholding.
BROKER/DEALERS: If you wish, you may purchase or redeem shares through
registered broker-dealers other than through Value Line Securities.
Broker-dealers who process such orders for their customers may charge a fee for
these services. Broker-dealers are responsible for promptly transmitting
purchase and redemption orders to the Fund.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund earns interest daily on its investments and will distribute daily
all of its net investment income. Net short-term capital gains, if any, will be
distributed once a year. Distributions are paid on each day the Fund is open for
business. Earnings for Saturdays, Sundays, and holidays are paid as a dividend
on the next business day. All distributions are automatically credited to
shareholder accounts as reinvestments in additional Fund shares at net asset
value on the day declared. If cash is desired, investors may so indicate in the
appropriate section of the application.
The Fund intends to continue to qualify as a regulated investment company
under the Internal Revenue Code. By so qualifying the Fund will not be subject
to federal income taxes to the extent that it distributes its net investment
income and net realized capital gains. Distributions of net investment income
and net realized short-term capital gains are, however, taxable to shareholders
as ordinary income, whether such distributions are taken in cash or reinvested
in additional Fund shares. No portion of such distributions will be eligible for
the dividends-received deduction for corporate shareholders.
A statement of all transactions, including shares accumulated from dividends
and capital gains distributions, is mailed to each shareholder quarterly and
information as to the tax status of the distributions is given annually.
8
<PAGE>
HOW TO REDEEM SHARES
Any shareholder may redeem his shares by writing to the Fund's Shareholder
Servicing Agent (NFDS), P.O. Box 419729, Kansas City, MO 64141-6729. A
shareholder holding certificates for shares must surrender the certificates,
properly endorsed, with signature guaranteed. A signature guarantee may be
executed by any "eligible" guarantor. Eligible guarantors include domestic
banks, savings associations, credit unions, member firms of a national
securities exchange, and participants in the New York Stock Exchange Medallion
Signature Program, the Securities Transfer Agents Medallion Program ("STAMP")
and the Stock Exchanges Medallion Program. You should verify with the
institution that they are an acceptable (eligible) guarantor prior to signing. A
guarantee from a Notary Public is not an acceptable source. The signature on any
request for redemption of shares not represented by certificates, or on any
stock power in lieu thereof, must be similarly guaranteed. In each case, the
signature or signatures must correspond to the name in which the account is
registered. Additional documentation may be required when shares are registered
in the name of a corporation, agent or fiduciary. For further information, you
should contact NFDS. A signature guarantee is not required if you instructed
NFDS on your initial purchase application to send redemption proceeds to a
pre-designated bank.
The redemption will be made at the net asset value per share next determined
following receipt of the request in good order. Payment will normally be made
within one business day of a redemption required, but in no event may payments
be made later than seven days after receipt, in good order, of the request. A
check for the redemption proceeds will be mailed within seven days following
receipt of all required documents. However, payment may be postponed under
unusual circumstances such as when normal trading is not taking place on the New
York Stock Exchange. The proceeds of any redemptions will not be sent until the
check (including a certified or cashier's check) used for investment has been
cleared for payment by the investor's bank. The Fund does not make a redemption
charge, but shares redeemed through brokers or dealers may be subject to a
service charge by such firms.
Due to the high cost of maintaining smaller accounts, the Board of Directors
may authorize the Fund to close shareholder accounts where their values fall
below $500 thirty days after each such shareholder account is mailed a notice to
that effect. During the 30-day period, the shareholder may raise the account
level to $500 to avoid having the account closed.
BY TELEPHONE OR WIRE. You may redeem shares by telephone or wire
instructions to NFDS by so indicating on the initial application. Payment will
normally be transmitted on the business day following receipt of your
instructions to the bank account at the member bank of the Federal Reserve
System you have designated on your initial purchase application. Heavy wire
traffic, however, may delay its arrival until after public hours at your bank.
Telephone or wire redemptions must be in amounts of $1,000 or more and your
instructions must include your name and account number. The number to call
before the close of business on the New York Stock Exchange is 1-800-243-2729.
The Fund employs reasonable procedures to confirm that instructions communicated
by telephone are genuine. These procedures include requiring some form of
personal identification prior to acting upon instructions received by telephone.
The Fund will not be liable for following instructions communicated by telephone
that it reasonably believes to be genuine. Any loss will be borne by the
investor. Procedures for redeeming Fund shares by telephone may be modified or
terminated without notice at any time by the Fund.
9
<PAGE>
BY CHECK. You may elect this method of redemption by so indicating on the
initial application and you will be provided a supply of checks by NFDS. These
checks may be made payable to the order of any person in any amount of $500 or
more. When your check is presented for payment, the Fund will redeem a
sufficient number of full and fractional shares in your account to cover the
amount of the check. Checks will be returned unpaid if there are insufficient
shares to meet the withdrawal amount.
This method of redemption requires that your shares must remain in an open
account and that no share certificates are issued and outstanding. You cannot
close your account through the issuance of a check because the exact balance at
the time your check clears will not be known when you write the check. Checks
are free but NFDS will impose a $5 fee for stopping payment of a check upon your
request or if NFDS cannot honor the check due to insufficient or uncollected
funds or other valid reasons.
If you use this privilege you will be required to sign a signature card
which will subject you to State Street Bank and Trust Company's rules and
regulations governing checking accounts. The authorization form which you must
sign also contains a provision relieving the bank, NFDS, the Fund, Value Line
Securities and the Adviser from liability for loss, if any, which you may
sustain arising out of a non-genuine instruction pursuant to this redemption
feature. Any additional documentation required to assure a genuine redemption
must be maintained on file with NFDS in such a current status as NFDS may deem
necessary. A new form properly signed and with the signatures guaranteed must be
received and accepted by NFDS before authorized redemption instructions already
on file with NFDS can be changed.
An additional supply of checks will be furnished upon request. There
presently is no charge to the shareholder for these checks or their clearance.
However, the Fund and NFDS reserve the right to make reasonable charges and to
terminate or modify any or all of the services in connection with this privilege
at any time and without prior notice.
IMPORTANT: Shares purchased by check may not be redeemed until the Fund is
reasonably assured of the final collection of such check, currently determined
to be up to 15 days.
INVESTOR SERVICES
VALU-MATIC-REGISTERED TRADEMARK-. The Fund offers a free service to its
shareholders through which monthly investments of $25 or more may be made
automatically into the shareholder's Fund account. The shareholder authorizes
the Fund to debit the shareholder's bank account monthly for the purchase of
Fund shares on or about the 3rd or 18th of each month. Further information
regarding this service can be obtained from Value Line Securities by calling
1-800-223-0818.
EXCHANGE OF SHARES. Shares of the Fund may be exchanged for shares of the
other Value Line funds in any identically registered account on the basis of the
respective net asset values next computed after receipt of the exchange order,
without cost. Shares of those other funds with a net asset value of $1,000 or
more may likewise be exchanged for shares of the Fund without cost. The
privilege to exchange Fund shares enables investors to acquire shares in a fund
with different investment objectives when they believe that a shift between
funds is an appropriate investment decision. Exchange of Fund shares is
available to investors who reside in any State in which the fund being acquired
may legally be sold.
10
<PAGE>
BY TELEPHONE: A Telephone Exchange Authorization is provided as part of the
Application accompanying this Prospectus. You may make telephone exchanges
provided that (i) you have elected the telephone exchange option on the original
Application, (ii) the registration on the two accounts will be identical, and
(iii) the shares to be exchanged are not in certificate form. Neither the Fund,
NFDS nor Value Line Securities will be responsible for the authenticity of
exchange instructions received by telephone or telegraph. NFDS must receive
exchange instructions prior to 4:00 p.m., New York time, if the shares to be
purchased are to receive that day's net asset value price. The number to call to
make an exchange is 1-800-243-2729.
IN WRITING: Exchange requests may also be made in writing and should be
sent to the Fund's Shareholder Servicing Agent, NFDS. If certificates have been
issued to you for the shares to be exchanged they should be submitted with your
request.
An exchange involves a redemption of all or a portion of your shares in the
Fund and the investment of the redemption proceeds in shares of the other fund
which you have selected. The redemption will be made at the net asset value of
the shares to be redeemed next determined after your exchange request is
received in proper order. The shares of the fund to be acquired will be
purchased at the net asset value of those shares next determined after
acceptance of the purchase order by that fund. However, if shares of one or more
of these funds are being exchanged for shares of the Fund or The Value Line Tax
Exempt Fund--Money Market Portfolio and the shares (including shares in accounts
under the control of one investment advisor) have a value in excess of $500,000,
then, at the discretion of the Adviser, the shares to be purchased will be
purchased at the closing price up to the seventh day following the redemption of
the shares being exchanged in order to enable the redeeming fund to utilize
normal securities settlement procedures in transferring the proceeds of the
redemption. To prevent abuse of the exchange privilege, the Fund also reserves
the right to terminate the exchange privilege of any account making more than
eight exchanges a year. (An exchange OUT of the Fund or The Value Line Tax
Exempt Fund--Money Market Portfolio is not counted for this purpose.) The
exchange privilege may be modified or terminated at any time, and any of the
Value Line funds may discontinue offering its shares generally or in any
particular State without prior notice. Copies of the prospectuses for the other
Value Line funds may be obtained from Value Line Securities by telephoning
1-800-223-0818. Although it has not been a problem in the past, shareholders
should be aware that a telephone exchange may be difficult during periods of
major economic or market changes.
SYSTEMATIC CASH WITHDRAWAL PLAN. A shareholder who has invested a minimum
of $5,000 in the Fund, or whose shares have attained that value, may request a
transfer of his shares to a Value Line Systematic Cash Withdrawal Account which
NFDS will maintain in his name on the Fund's books. Under the Systematic Cash
Withdrawal Plan (the "Plan") the shareholder will request that NFDS, acting as
his agent, redeem monthly or quarterly a sufficient number of shares to provide
for payment to him, or someone he designates, of any specified dollar amount
(minimum $25). All certificated shares must be placed on deposit under the Plan
and dividends and capital gains distributions, if any, are automatically
reinvested at net asset value. The Plan will automatically terminate when all
shares in the account have been redeemed. The shareholder may at any time
terminate the Plan, change the amount of the regular payment, or request
liquidation of the balance of his account on written notice to NFDS. The Fund
may terminate the Plan at any time on written notice to the shareholder.
11
<PAGE>
MONTHLY INCOME DISTRIBUTIONS. Investors may receive periodic income
payments from the Fund. Shares purchased each day through the automatic
reinvestment of dividends and distributions are redeemed at net asset value on
the last business day of the month in accordance with the shareholder's request.
Investors may open a plan by completing the appropriate portion of the
Application. Payments under these plans will not result in a reduction or
depletion of the shares originally purchased. This periodic payment service may
be terminated at any time by the investor, the Fund or NFDS.
TAX-SHELTERED RETIREMENT PLANS. Shares of the Fund may be purchased for
various types of retirement plans. For more complete information, contact Value
Line Securities at 1-800-223-0818 during New York business hours.
ADDITIONAL INFORMATION
The Fund is an open-end, diversified management investment company
incorporated in Maryland in 1979. The Fund has 2 billion authorized shares of
common stock, $.10 par value. Each share has one vote, with fractional shares
voting proportionately. Shares have no preemptive rights, are freely
transferable, are entitled to dividends as declared by the Directors, and, if
the Fund were liquidated, shareholders would receive the net assets of the Fund.
INQUIRIES. All inquiries regarding the Fund should be directed to the Fund
at the telephone numbers or address set forth on the cover page of this
Prospectus. Inquiries from shareholders regarding their accounts and account
balances should be directed to National Financial Data Services, Inc. (NFDS),
servicing agent for State Street Bank and Trust Company, the Fund's transfer
agent, 1-800-243-2729. Shareholders should note that they may be required to pay
a fee for special services such as historical transcripts of an account. Our
Info-Line provides the latest account information 24 hours a day, every day, and
is available to shareholders with pushbutton phones. The Info-Line toll-free
number is 1-800-243-2739.
WITHHOLDING. Mutual funds are required to withhold 31% of dividends,
distributions of capital gains and redemption proceeds in accounts without a
valid social security or tax identification number. You must provide this
information when you complete the Fund's application and certify that you are
not currently subject to backup withholding. The Fund reserves the right to
close by redemption accounts for which the holder fails to provide a valid
social security or tax identification number.
SHAREHOLDER MEETINGS. The Fund does not intend to hold routine annual
meetings of shareholders. However, special meetings of shareholders will be held
as required by law, for purposes such as changing fundamental policies or
approving an advisory agreement.
12
<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 INVESTORS' 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 to
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.
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 corporate 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
individual 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.
1992--VALUE LINE INTERMEDIATE BOND FUND seeks high current income consistent
with low volatility of principal by investing in a diversified portfolio of
investment-grade debt securities with a dollar-weighted average portfolio
maturity of between three and ten years.
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.
1995--VALUE LINE U.S. MULTINATIONAL COMPANY FUND'S investment objective is
maximum total return. It invests primarily in securities of U.S. companies that
have significant sales from international operations.
- ------------------------------
* ONLY AVAILABLE THROUGH THE PURCHASE OF GUARDIAN INVESTOR, A TAX DEFERRED
VARIABLE ANNUITY, OR VALUEPLUS, A VARIABLE LIFE INSURANCE POLICY.
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 E. 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.
13
<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
SHAREHOLDER SERVICING AGENT
State Street Bank and Trust Company
c/o NFDS
P.O. Box 419729
Kansas City, MO 64141-6729
CUSTODIAN & TRANSFER AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite 100
Greenwich, CT 06830
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Summary of Fund Expenses....................... 2
Financial Highlights........................... 3
Investment Objective and Policies.............. 3
Investment Restrictions........................ 5
Calculation of Yield........................... 5
Management of the Fund......................... 6
Calculation of Net Asset Value................. 6
How to Buy Shares.............................. 7
Dividends, Distributions and Taxes............. 8
How to Redeem Shares........................... 9
Investor Services.............................. 10
Additional Information......................... 12
</TABLE>
- -------------------------------------------
PROSPECTUS
- ------------------
MAY 1, 1996
The Value Line
Cash
Fund, Inc.
(800) 223-0818
[LOGO]
<PAGE>
THE VALUE LINE CASH FUND, INC.
220 East 42nd Street, New York, New York 10017-5891
1-800-223-0818 or 1-800-243-2729
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
- -------------------------------------------------------------------------------
This Statement of Additional Information is not a prospectus and must be
read in conjunction with the Prospectus of The Value Line Cash Fund, Inc. (the
"Fund") dated May 1, 1996, a copy of which may be obtained without charge by
writing or telephoning the Fund.
--------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
Investment Objectives and Policies.................................................. B-1
Investment Restrictions............................................................. B-2
Directors and Officers.............................................................. B-3
The Adviser......................................................................... B-5
Brokerage Arrangements.............................................................. B-6
How to Buy Shares................................................................... B-6
Suspension of Redemptions........................................................... B-6
Taxes............................................................................... B-7
Performance Data.................................................................... B-7
Additional Information.............................................................. B-8
Financial Statements................................................................ B-8
Appendix............................................................................ B-9
</TABLE>
INVESTMENT OBJECTIVES AND POLICIES
(SEE ALSO "INVESTMENT OBJECTIVES AND POLICIES" IN THE FUND'S PROSPECTUS)
The investment policies set forth in the Prospectus and in this Statement of
Additional Information are fundamental policies of the Fund and may not be
changed without the affirmative vote of a majority of the outstanding voting
securities of the Fund. As used in this Statement of Additional Information and
in the Prospectus, a "majority of the outstanding voting securities of the Fund"
B-1
<PAGE>
means the lesser of (1) the holders of more than 50% of the outstanding shares
of capital stock of the Fund or (2) 67% of the shares present if more than 50%
of the shares are present at a meeting in person or by proxy.
INVESTMENT RESTRICTIONS
The Fund may not:
(1) Purchase any security except those discussed under "Investment
Objective and Policies" in the Prospectus.
(2) Write, purchase or sell put or call options or combinations thereof
or purchase warrants.
(3) Borrow money in excess of 10% of the value of its assets and then
only as a temporary measure to meet unusually heavy redemption requests or
for other extraordinary or emergency purposes or mortgage, pledge or
hypothecate any assets except as may be necessary in connection with such
borrowings. Securities will not be purchased while borrowings are
outstanding.
(4) Engage in the underwriting of securities of other issuers.
(5) Invest in real estate although the Fund may purchase marketable
securities of issuers which invest in real estate.
(6) Invest in commodities or commodity contracts.
(7) Lend money except in connection with the purchase of debt
obligations or by investment in repurchase agreements, provided that
repurchase agreements maturing in more than seven days when taken together
with other illiquid investments including restricted securities do not
exceed 10% of the Fund's assets.
(8) Purchase more than 10% of the outstanding debt securities of any one
issuer. This restriction does not apply to obligations issued or guaranteed
by the U.S. government, its agencies or instrumentalities.
(9) Purchase securities of other investment companies.
(10) Invest 25% or more of its assets in securities of issuers in any
one industry. This restriction does not apply to investments in bank
obligations or to obligations issued or guaranteed by the U.S. government,
its agencies or instrumentalities.
(11) Invest more than 5% of its total assets in securities of issuers
having a record, together with predecessors, of less than three years of
continuous operation. The restriction does not apply to any obligation
issued or guaranteed by the U.S. government, its agencies or
instrumentalities.
(12) Purchase or retain the securities of any issuer if, to the
knowledge of the Fund, those officers and directors of the Fund and Value
Line, Inc. (the "Adviser"), who each owns more than .5% of the outstanding
securities of such issuer, together own more than 5% of such securities.
B-2
<PAGE>
(13) Issue senior securities except evidences of indebtedness permitted
by restriction No. 3 above.
(14) Purchase securities for the purpose of exercising control over
another company.
(15) Purchase securities on margin or sell short or participate on a
joint and several basis in any trading account in securities.
(16) Purchase oil, gas or other mineral exploration or development
programs.
If a percentage restriction is adhered to at the time of investment, a later
change in percentage resulting from changes in values or assets will not be
considered a violation of the restriction. For purposes of industry
classifications, the Fund follows the industry classifications in The Value Line
Investment Survey.
DIRECTORS AND OFFICERS
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE FUND PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS
- ------------------------- ---------------- ---------------------------------------------
<S> <C> <C>
*Jean Bernhard Buttner Chairman of the Chairman, President and Chief Executive
Age 61 Board of Officer of the Adviser and Value Line
Directors Publishing, Inc. Chairman of the Value Line
and President Funds and the Distributor.
John W. Chandler Director Consultant, Academic Search Consultation
2801 New Mexico Ave, N.W. Service, Inc. since 1992; Consultant, Korn/
Washington, DC 20007 Ferry International, 1990-1992. Trustee
Age 72 Emeritus and Chairman (1993-1994) of Duke
University; President Emeritus, Williams
College.
*Leo R. Futia Director Retired Chairman and Chief Executive Officer
201 Park Avenue South of The Guardian Life Insurance Company of
New York, NY 10003 America and Director since 1970. Director
Age 76 (Trustee) of The Guardian Insurance & Annuity
Company, Inc., Guardian Investor Services
Corporation, and the Guardian-sponsored
mutual funds.
Charles E. Reed Director Retired. Formerly, Senior Vice President of
3200 Park Avenue General Electric Co.; Director Emeritus of
Bridgeport, CT 06604 People's Bank, Bridgeport, CT.
Age 82
Paul Craig Roberts Director Distinguished Fellow, Cato Institute, since
505 S. Fairfax Street 1993; formerly, William E. Simon Professor of
Alexandria, VA 22320 Political Economy, Center for Strategic and
Age 57 International Studies; Director, A. Schulman
Inc. (plastics) since 1992.
</TABLE>
- ------------------------
*"Interested" director as defined in the Investment Company Act of 1940 (the
"1940 Act").
B-3
<PAGE>
DIRECTORS AND OFFICERS--(CONTINUED)
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE FUND PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS
- ------------------------- ---------------- ---------------------------------------------
<S> <C> <C>
John Risner Vice President Portfolio Manager with the Adviser since
Age 36 1992; Assistant Vice President, Bankers Trust
Company, 1987-1992.
Charles Heebner Vice President Director of Fixed Income with the Adviser.
Age 59
David T. Henigson Vice President, Compliance Officer and since 1992, Vice
Age 38 Secretary and President and Director of the Adviser.
Treasurer Director and Vice President of the
Distributor.
</TABLE>
Unless otherwise indicated, the address for each of the above is 220 East 42nd
Street, New York, NY.
Directors and certain officers of the Fund are also directors and officers
of other investment companies for which the Adviser acts as investment adviser.
The following table sets forth information regarding compensation of Directors
by the Fund and by the Fund and the eleven other Value Line Funds of which each
of the Directors is a director or trustee for the fiscal year ended December 31,
1995. Directors who are officers or employees of the Adviser do not receive any
compensation from the Fund or any of the Value Line Funds.
COMPENSATION TABLE
FISCAL YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
TOTAL
PENSION OR ESTIMATED COMPENSATION
RETIREMENT ANNUAL FROM FUND
AGGREGATE BENEFITS BENEFITS AND FUND
COMPENSATION ACCRUED AS PART UPON COMPLEX
NAME OF PERSON FROM FUND OF FUND EXPENSES RETIREMENT (12 FUNDS)
- ------------------------------------------- --------------- ------------------- ------------- --------------
<S> <C> <C> <C> <C>
Jean B. Buttner............................ $ -0- N/A N/A $ -0-
John W. Chandler........................... 2,770 N/A N/A 35,350
Leo R. Futia............................... 2,770 N/A N/A 35,350
Charles E. Reed............................ 2,770 N/A N/A 35,350
Paul Craig Roberts......................... 2,770 N/A N/A 35,350
</TABLE>
As of December 31, 1995, no person owned of record or, to the knowledge of
the Fund, owned beneficially, 5% or more of the outstanding stock of the Fund
other than Guardian Insurance & Annuity Company, Inc., 201 Park Avenue South,
New York, New York 10003, which owned of record 23,650,469 shares of the Fund
(approximately 6.5% of the outstanding shares) and the Adviser (and its
affiliates) which owned an aggregate of 46,996,269 shares, (approximately
13.07%). In addition, the Value Line, Inc. Profit Sharing and Savings Plan owned
4,764,534 shares (1.3%) and officers and directors of the Fund as a group owned
an aggregate of 1,636,471 shares of the Fund (less than 1% of the outstanding
shares).
B-4
<PAGE>
THE ADVISER
(SEE ALSO "MANAGEMENT OF THE FUND" IN THE FUND'S PROSPECTUS)
The investment advisory agreement between the Fund and the Adviser dated
August 10, 1988 provides for an advisory fee payable monthly at an annual rate
of 0.4% of the Fund's average daily net assets during the year. During 1993,
1994 and 1995, the Fund paid or accrued to the Adviser advisory fees of
$1,464,000, $1,395,840 and $1,427,000, respectively. The Adviser shall reimburse
the Fund for expenses (exclusive of interest, taxes, brokerage expenses and
extraordinary expenses) which in any year exceed the limits prescribed by any
State in which shares of the Fund are qualified for sale. Presently, the most
restrictive limitation is 2.5% of the first $30 million of average daily net
assets, 2% of the next $70 million and 1.5% on excess over $100 million.
The investment advisory agreement provides that the Adviser shall render
investment advisory and other services to the Fund including, at its expense,
all administrative services, office space and the services of all officers and
employees of the Fund. The Fund pays all other expenses not assumed by the
Adviser including taxes, interest, brokerage commissions, insurance premiums,
fees and expenses of the custodian and shareholder servicing agent, legal and
accounting fees, fees and expenses in connection with qualification under
federal and state securities laws and costs of shareholder reports and proxy
materials. The Fund has agreed that it will use the words "Value Line" in its
name only so long as Value Line, Inc. serves as investment adviser to the Fund.
The Adviser acts as investment adviser to 15 other investment companies
constituting The Value Line Family of Funds and furnishes investment advisory
services to private and institutional accounts.
Certain of the Adviser's clients may have investment objectives similar to
the Fund and certain investments may be appropriate for the Fund and for other
clients advised by the Adviser. From time to time, a particular security may be
bought or sold for only one client or in different amounts and at different
times for more than one but less than all such clients. In addition, a
particular security may be bought for one or more clients when one or more other
clients are selling such security, or purchases or sales of the same security
may be made for two or more clients at the same time. In such event, such
transactions, to the extent practicable, will be averaged as to price and
allocated as to amount in proportion to the amount of each order. In some cases,
this procedure could have a detrimental effect on the price or amount of the
securities purchased or sold by the Fund. In other cases, however, it is
believed that the ability of the Fund to participate, to the extent permitted by
law, in volume transactions will produce better results for the Fund.
The Fund does not purchase or sell a security based solely on information
contained in the Value Line Investment Survey. The Adviser and/or its
affiliates, officers, directors and employees may from time to time own
securities which are also held in the portfolio of the Fund. The Adviser has
imposed rules upon itself and such persons requiring monthly reports of security
transactions for their respective accounts and restricting trading in various
types of securities in order to avoid possible conflicts of interest. The
Adviser may from time to time, directly or through affiliates, enter into
agreements to furnish for compensation special research or financial services to
companies, including services in connection with acquisitions, mergers or
financings. In the event that such agreements are in effect with respect to
issuers of securities held in the portfolio of the Fund, specific reference to
such agreements will be made in the "Schedule of Investments" in shareholder
reports of the Fund. As of the date of this Statement of Additional Information,
no such agreements exist.
B-5
<PAGE>
BROKERAGE ARRANGEMENTS
Since it is expected that most purchases made by the Fund will be principal
transactions at net prices, the Fund will incur little or no brokerage costs.
Purchases of portfolio securities from underwriters will include a commission or
concession paid by the issuer to the underwriter and purchases from dealers will
include the spread between the bid and asked prices. The Fund's policy is to
seek prompt execution at the most favorable prices. Transactions may be directed
to dealers in return for special research and statistical information, as well
as for services rendered by such dealers in the execution of orders. It is not
possible to place a dollar value on the special executions or on the research
services received by the Adviser from dealers effecting portfolio transactions.
While any such research services may allow the Adviser to supplement its own
research staffs of other securities firms, the Adviser has advised the Fund
that, in its opinion, the receipt of such research services from others will not
reduce its over-all expenses.
Since securities with maturities of less than one year are excluded from
required portfolio turnover rate calculations, the Fund's portfolio turnover
rate for reporting purposes will be zero.
HOW TO BUY SHARES
(SEE ALSO "CALCULATION OF NET ASSET VALUE", "HOW TO BUY SHARES" AND
"INVESTOR SERVICES" IN THE FUND'S PROSPECTUS)
Shares of the Fund are purchased at net asset value next calculated after
receipt of a purchase order and payment in federal funds. Minimum orders are
$1,000 for an initial purchase and $100 for each subsequent purchase. The Fund
reserves the right to reduce or waive the minimum purchase requirements in
certain cases such as under the Value Line Monthly Investment Plan and pursuant
to payroll deduction plans, etc., where subsequent and continuing purchases are
contemplated.
The Fund has entered into a distribution agreement with Value Line
Securities, Inc., pursuant to which Value Line Securities acts as principal
underwriter and distributor of the Fund for the sale and distribution of its
shares. For its services under the agreement, Value Line Securities receives no
compensation. Value Line Securities also serves as distributor to the other
Value Line funds.
AUTOMATIC PURCHASES. The Fund offers a free service to its shareholders,
Valu-Matic, through which monthly investments of $25 or more may be made
automatically into the shareholder's account. The required form to enroll in
this program is available upon request from the Distributor.
RETIREMENT PLANS. Shares of the Fund may be purchased as the investment
medium for various tax-sheltered retirement plans. Upon request, Value Line
Securities will provide information regarding eligibility and permissible
contributions. Because a retirement plan is designed to provide benefits in
future years, it is important that the investment objectives of the Fund be
consistent with the participant's retirement objectives. Premature withdrawals
from a retirement plan may result in adverse tax consequences. For more complete
information, contact Value Line Securities at 1-800-223-0818 during New York
business hours.
SUSPENSION OF REDEMPTIONS
The right of redemption may be suspended, or the date of payment postponed
beyond the normal seven-day period by the Fund's Board of Directors under the
following conditions authorized by the 1940 Act: (1) For any period (a) during
which the New York Stock Exchange is closed, other
B-6
<PAGE>
than customary weekend and holiday closing, or (b) during which trading in the
markets the Fund normally utilizes is restricted; (2) For any period during
which an emergency exists as a result of which (a) disposal by the Fund of
securities owned by it is not reasonably practical, or (b) it is not reasonably
practical for the Fund to determine the fair value of its net assets; (3) For
such other periods as the Securities and Exchange Commission may by order permit
for the protection of the Fund's shareholders.
TAXES
(SEE "DIVIDENDS, DISTRIBUTIONS AND TAXES" IN THE FUND'S PROSPECTUS)
The Fund intends to continue to qualify as a regulated investment company
under the U.S. Internal Revenue Code (the "Code"). The Fund so qualified during
the Fund's last fiscal year. By so qualifying, the Fund is not subject to
federal income tax on its net investment income or net realized capital gains
which are distributed to shareholders (whether or not reinvested in additional
Fund shares). The Code requires each regulated investment company to pay a
nondeductible 4% excise tax to the extent the company does not distribute,
during each calendar year, 98% of its ordinary income, determined on a calendar
year basis, and 98% of its capital gains, determined, in general, on an October
31 year end, plus certain undistributed amounts from previous years. The Fund
anticipates that it will make sufficient timely distributions to avoid
imposition of the excise tax.
For Federal income tax purposes the Fund utilized approximately $110,000 of
its capital loss carryover to offset a realized gain during the year ended
December 31, 1995. The Fund had a net capital loss carryover at December 31,
1995 of approximately $216,000 which will expire in the year 2002. To the extent
future capital gains are offset by such capital losses, the Fund does not
anticipate distributing any such gains to the shareholders.
For shareholders who fail to furnish to the Fund their social security or
taxpayer identification numbers and certain related information, or who fail to
certify that they are not subject to backup withholding, dividends,
distributions or capital gains and redemption proceeds paid by the Fund will be
subject to a 31% federal income tax withholding requirement. If the withholding
provisions are applicable, any dividends or capital gains distributions to these
shareholders, whether taken in cash or reinvested in additional shares, and any
redemption proceeds will be reduced by the amounts required to be withheld.
The foregoing discussion relates solely to U.S. federal income tax law as
applicable to U.S. persons (i.e., U.S. citizens or residents, domestic
corporations and partnerships, and certain trusts and estates) and is not
intended to be a complete discussion of all federal tax consequences.
Shareholders are advised to consult with their tax advisers concerning the
application of federal, state and local tax laws to an investment in the Fund.
PERFORMANCE DATA
From time to time, the Fund may state its total return in advertisements and
investor communications. Total return may be stated for any relevant period as
specified in the advertisement or communication. Any statements of total return
or other performance data on the Fund will be accompanied by information on the
Fund's average annual total return over the most recent four calendar quarters
and the period from the Fund's inception of operations. The Fund may also
advertise aggregate annual total return information over different periods of
time.
B-7
<PAGE>
The Fund's average annual total return is determined by reference to a
hypothetical $1,000 investment that includes capital appreciation and
depreciation for the stated period, according to the following formula:
n
T = #ERV/P - 1
<TABLE>
<S> <C> <C> <C>
Where: P = a hypothetical initial purchase order of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of the hypothetical $1,000 purchase at the end of
the period
</TABLE>
As stated in the Prospectus, the Fund may also quote its current yield in
advertisements and investor communications.
The Fund's current yield and total return may be compared to relevant
indices, including U.S. domestic and international taxable bond indices and data
from Lipper Analytical Services, Inc. or Standard & Poor's Indices. From time to
time, evaluations of the Fund's performance by independent sources may also be
used in advertisements and in information furnished to present or prospective
investors in the Fund.
Investors should note that the investment results of the Fund will fluctuate
over time, and any presentation of the Fund's current yield or total return for
any period should not be considered as a representation of what an investment
may earn or what an investor's total return or yield may be in any future
period.
ADDITIONAL INFORMATION
EXPERTS
The financial statements of the Fund and the financial highlights included
in the Fund's Annual Report to Shareholders and incorporated by reference in
this Statement of Additional Information have been so incorporated by reference
in reliance on the report of Price Waterhouse LLP, independent accountants,
given on the authority of said firm as experts in auditing and accounting.
CUSTODIAN
The Fund employs State Street Bank and Trust Company, Boston, MA as
custodian for the Fund. The custodian's responsibilities include safeguarding
and controlling the Fund's cash and securities, handling the receipt and
delivery of securities and collecting interest and dividends on the Fund's
investments. The custodian does not determine the investment policies of the
Fund or decide which securities the Fund will buy or sell.
FINANCIAL STATEMENTS
The Fund's financial statements for the year ended December 31, 1995,
including the financial highlights for each of the five fiscal years in the
period ended December 31, 1995, appearing in the 1995 Annual Report to
Shareholders and the report thereon of Price Waterhouse LLP, independent
accountants, appearing therein, are incorporated by reference in this Statement
of Additional Information.
The Fund's 1995 Annual Report to Shareholders is enclosed with this
Statement of Additional Information.
B-8
<PAGE>
APPENDIX
DESCRIPTION OF SHORT-TERM INSTRUMENTS
The types of instruments that will form the major part of the Fund's
investments are described below:
U.S. GOVERNMENT AGENCY SECURITIES: Federal agency securities are debt
obligations which principally result from lending programs of the U.S.
government. Housing and agriculture have traditionally been the principal
beneficiaries of federal programs, and agencies involved in providing credit to
agriculture and housing account for the bulk of the outstanding agency
securities.
U.S. TREASURY BILLS: U.S. Treasury bills are issued with maturities of any
period up to one year. Three-month bills are currently offered by the Treasury
on a 13-week cycle and are auctioned each week by the Treasury. Bills are sold
on a discount basis; the difference between the purchase price and the maturity
value (or the resale price if they are sold before maturity) constitutes the
interest income for the investor.
CERTIFICATES OF DEPOSIT: A certificate of deposit is a negotiable receipt
issued by a bank or savings and loan association in exchange for the deposit of
funds. The issuer agrees to pay the amount deposited plus interest to the bearer
of the receipt on the date specified on the certificate.
COMMERCIAL PAPER: Commercial paper is generally defined as unsecured
short-term notes issued in bearer form by large well known corporations and
finance companies. Maturities on commercial paper range from a few days to nine
months. Commercial paper is also sold on a discount basis.
BANKERS' ACCEPTANCES: A bankers' acceptance generally arises from a
short-term credit arrangement designed to enable businesses to obtain funds to
finance commercial transactions. Generally, an acceptance is a time draft drawn
on a bank by an exporter or an importer to obtain a stated amount of funds to
pay for specific merchandise. The draft is then "accepted" by a bank, that, in
effect, unconditionally guarantees to pay the face value of the instrument on
its maturity date.
DESCRIPTION OF COMMERCIAL PAPER RATINGS
A Prime rating is the highest commercial paper rating assigned by Moody's
Investors Service, Inc. ("Moody's"). Issuers rated Prime are further referred by
use of numbers 1, 2, and 3 to denote relative strength within this highest
classification. Among the factors considered by Moody's in assigning ratings are
the following: (1) evaluation of the management of the issuer; (2) economic
evaluation of the issuer's industry or industries and an appraisal of
speculative type risks which may be inherent in certain areas; (3) evaluation of
the issuer's products in relation to competition and customer acceptance; (4)
liquidity; (5) amount and quality of long-term debt; (6) trend of earnings over
a period of ten years; (7) financial strength of a parent company and the
relationships which exist with the issuer, and (8) recognition by management of
obligations which may be present or may arise as a result of public interest
questions and preparations to meet such obligations.
Commercial paper rated A by Standard & Poor's Corporation ("S&P") has the
following characteristics as determined by S&P: Liquidity ratios are better than
the industry average. Long-term senior debt rating is A or better. In some cases
BBB credits may be acceptable. The issuer has access to at least two additional
channels of borrowing. Basic earnings and cash flow have an upward trend with
allowances made for unusual circumstances. Typically, the issuer's industry is
B-9
<PAGE>
well established, the issuer has a strong position within its industry and the
reliability and quality of management is unquestioned. Issuers rated A are
further referred by use of numbers 1+, 1, 2 and 3 to denote relative strength
within the highest classification.
DESCRIPTION OF CORPORATE BOND RATINGS
Bonds rated Aa by Moody's are judged by Moody's to be of high quality by all
standards. Together with bonds rated Aaa (Moody's highest rating) they comprise
what are generally known as high-grade bonds. They are rated lower than the best
bonds because margins of protection may not be as large as Aaa securities or
fluctuation of protective elements may be of greater amplitude or there may be
other elements present which make the long-term risks appear somewhat larger
than in Aaa securities.
Bonds rated AA by S&P are judged by S&P to be high-grade obligations, and,
in the majority of instances, to differ only in small degree from issues rated
AAA. Bonds rated AAA are considered by S&P to be highest grade obligations and
possess the ultimate degree of protection as to principal and interest. Here, as
with AAA bonds, prices move with the long-term money market.
DESCRIPTION OF VALUE LINE FINANCIAL STRENGTH RATINGS
A Value Line Financial Strength rating of A++, A+ or A indicates that the
company is within the financially strongest one-third among approximately 1,700
companies followed by The Value Line Investment Survey. The ratings are based
upon computer analysis of a number of key variables that determine (a) financial
leverage, (b) business risk and (c) company size plus the judgment of senior
analysts regarding factors that cannot be quantified across-the-board for all
stock. The primary variables that are indexed and studied include equity
coverage of debt, equity coverage of intangibles, "quick ratio", accounting
methods, variability of return, quality of fixed charge coverage, stock price
stability, and company size.
B-10
<PAGE>
THE VALUE LINE CASH FUND, INC.
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS.
a. Financial Statements
Included in Part A of this Registration Statement:
Financial Highlights for each of the 10 years in the period ended
December 31, 1995
Incorporated by reference in Part B of this Registration Statement:*
Schedule of Investments at December 31, 1995
Statement of Assets and Liabilities at December 31, 1995
Statement of Operations for the year ended December 31, 1995
Statement of Changes in Net Assets for the years ended
December 31, 1995 and 1994
Notes to Financial Statements
Financial Highlights for each of the five years in the period ended
December 31, 1995
Report of Independent Accountants
Statements, schedules and historical information other than those listed
above have been omitted since they are either not applicable or are not
required.
- ---------
* Incorporated by reference from the Annual Report to Shareholders for the
year ended December 31, 1995.
b. Exhibits
16. Calculation of Performance Data--Exhibit 1
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
As of December 31, 1995, there were 17,427 record holders of the
Registrant's Capital Stock ($.10 par value).
ITEM 27. INDEMNIFICATION.
Incorporated by reference from Post-Effective Amendment No. 11 (filed with
the Commission March 3, 1988).
C-1
<PAGE>
ITEM 28. BUSINESS OR OTHER CONNECTIONS OF INVESTMENT ADVISER.
Value Line, Inc., Registrant's investment adviser, acts as investment
adviser for a number of individuals, trusts, corporations and institutions, in
addition to the registered investment companies in the Value Line Family of
Funds listed in Item 29.
<TABLE>
<CAPTION>
NAME POSITION WITH THE ADVISER OTHER EMPLOYMENT
- ---------------------------- ---------------------------------- ------------------------------------------------
<S> <C> <C>
Jean Bernhard Buttner Chairman of the Board, Chairman of the Board and Chief Executive
President and Chief Executive Officer of Arnold Bernhard & Co., Inc.; Chairman
Officer of the Value Line Funds and the Distributor
Samuel Eisenstadt Senior Vice President and Director
David T. Henigson Vice President, Treasurer and Vice President and a Director of Arnold Bernhard
Director & Co., Inc. and the Distributor
Howard A. Brecher Secretary and Director Secretary and Treasurer of Arnold Bernhard &
Co., Inc.
Harold Bernard, Jr. Director Administrative Law Judge
William S. Kanaga Director Retired Chairman of Arthur Young (now Ernst &
Young)
W. Scott Thomas Director Partner, Brobeck, Phleger & Harrison, attorneys.
</TABLE>
C-2
<PAGE>
ITEM 29. PRINCIPAL UNDERWRITERS.
(a)Value Line Securities, Inc., acts as principal underwriter for the
following Value Line funds, including the Registrant: The Value Line
Fund, Inc.; The Value Line Income Fund, Inc.; The Value Line Special
Situations Fund, Inc.; Value Line Leveraged Growth Investors, Inc.; The
Value Line Cash Fund, Inc.; Value Line U.S. Government Securities Fund,
Inc.; Value Line Centurion Fund, Inc.; The Value Line Tax Exempt Fund,
Inc.; Value Line Convertible Fund, Inc.; Value Line Aggressive Income
Trust; Value Line New York Tax Exempt Trust; Value Line Strategic Asset
Management Trust; Value Line Intermediate Bond Fund, Inc.; Value Line
Small-Cap Growth Fund, Inc.; Value Line Asset Allocation Fund, Inc.;
Value Line U.S. Multinational Company Fund, Inc.
(b)
<TABLE>
<CAPTION>
(2)
POSITION AND (3)
(1) OFFICES POSITION AND
NAME AND PRINCIPAL WITH VALUE LINE OFFICES WITH
BUSINESS ADDRESS SECURITIES, INC. REGISTRANT
- -------------------------------- ------------------- ------------------------
<S> <C> <C>
Jean Bernhard Buttner Chairman of the Chairman of the Board
Board and President
David T. Henigson Vice President and Vice President,
Director Secretary and Treasurer
Stephen LaRosa Asst. Vice Asst. Treasurer
President
</TABLE>
The business address of each of the officers and directors is 220 East
42nd Street, New York, NY 10017-5891.
(c)Not applicable.
C-3
<PAGE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.
Value Line, Inc., 220 East 42nd Street, New York, NY 10017 for records
pursuant to Rule 31a-1(b)(4), (5), (6), (7), (10), (11), Rule 31a-(i). State
Street Bank and Trust Company, c/o NFDS, P.O. Box 419729, Kansas City, MO 64141
for records pursuant to Rule 31a-1(b)(2)(iv), State Street Bank and Trust
Company, 225 Franklin Street, Boston, MA 02110 for all other records.
ITEM 31. MANAGEMENT SERVICES.
None.
ITEM 32. UNDERTAKINGS.
Registrant undertakes to furnish each person to whom a prospectus is
delivered with a copy of the Registrant's latest annual report to shareholders,
upon request and without charge.
--------------
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information, constituting parts of this Post-Effective
Amendment No. 19 to the registration statement on Form N-1A (the "Registration
Statement"), of our report dated February 16, 1996 relating to the financial
statements and financial highlights appearing in the December 31, 1995 Annual
Report to Shareholders of The Value Line Cash Fund, Inc., which are also
incorporated by reference into the Registration Statement. We also consent to
the references to us under the heading "Financial Highlights" in the Prospectus
and under the headings "Additional Information" and "Financial Statements" in
the Statement of Additional Information.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
April 15, 1996
C-4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this Amendment
to its Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York, and State of New York, on
the 16th day of April, 1996.
THE VALUE LINE CASH FUND, INC.
By: DAVID T. HENIGSON
..................................
DAVID T. HENIGSON, VICE PRESIDENT
Pursuant to the requirements of the Securities Act of 1933, this Amendment
has been signed below by the following persons in the capacities and on the
dates indicated.
<TABLE>
<CAPTION>
SIGNATURES TITLE DATE
- ----------------------------------------------- ----------------------------------------------- ----------------
<C> <S> <C>
* JEAN B. BUTTNER Chairman, Director, April 16, 1996
(JEAN B. BUTTNER) President and Chief
Executive Officer
* JOHN W. CHANDLER Director April 16, 1996
(JOHN W. CHANDLER)
* LEO R. FUTIA Director April 16, 1996
(LEO R. FUTIA)
*CHARLES E. REED Director April 16, 1996
(CHARLES E. REED)
* PAUL CRAIG ROBERTS Director April 16, 1996
(PAUL CRAIG ROBERTS)
DAVID T. HENIGSON Treasurer; Principal Financial April 16, 1996
and Accounting Officer
(DAVID T. HENIGSON)
</TABLE>
* By DAVID T. HENIGSON
..................................
(DAVID T. HENIGSON,
ATTORNEY-IN-FACT)
C-5
<PAGE>
THE VALUE LINE CASH FUND
-------------------
Date 12/29/95
29
Month
1-DAY* 7-DAY 30-DAY To Date
====== ===== ====== ========
Div Per Share: 0.000143 0.000994 0.004261 0.004118
Annualized Yield: 5.22% 5.18% 5.18% 5.18%
Effective Yield: 5.36% 5.32% 5.31% 5.31%
**********************************************************
Dividend / Share: 1.000143 1.000994 1.004261 1.004118
-------- -------- -------- ========
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 356,789
<INVESTMENTS-AT-VALUE> 356,789
<RECEIVABLES> 11,715
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 101
<TOTAL-ASSETS> 368,605
<PAYABLE-FOR-SECURITIES> 8,848
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 414
<TOTAL-LIABILITIES> 9,262
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 359,458
<SHARES-COMMON-STOCK> 359,458
<SHARES-COMMON-PRIOR> 341,910
<ACCUMULATED-NII-CURRENT> 101
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (216)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 359,343
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 20,814
<OTHER-INCOME> 0
<EXPENSES-NET> 2,021
<NET-INVESTMENT-INCOME> 18,793
<REALIZED-GAINS-CURRENT> 110
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 18,903
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 18,740
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 475,475
<NUMBER-OF-SHARES-REDEEMED> 476,667
<SHARES-REINVESTED> 18,740
<NET-CHANGE-IN-ASSETS> 17,711
<ACCUMULATED-NII-PRIOR> 48
<ACCUMULATED-GAINS-PRIOR> (326)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,427
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,021
<AVERAGE-NET-ASSETS> 356,819
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .054
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .054
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
