================================================================================
------------------
SEMI-ANNUAL REPORT
------------------
June 30, 1997
------------------
Value Line
Cash Fund, Inc.
[LOGO]
<PAGE>
The Value Line Cash Fund, Inc.
To Our Value Line
- --------------------------------------------------------------------------------
To Our Shareholders
We are pleased to send you this Value Line Cash Fund semi-annual report for the
six months ended June 30, 1997. The total net assets of your fund at the end of
June were $329 million; the average maturity of the Fund's holdings was 57 days.
The Cash Fund's annualized yield for the six months ended June 30, 1997 was
4.98%. For both the 7-day and the 30-day periods ended June 30th, the Fund's
yield was 4.94% and 4.99%, respectively. The fund ranked 101st out of 303 Money
Market Instrument Funds for the year-to-date, with its annualized return being
slightly above the average money market instrument fund's return as measured by
Lipper Analytical Services. Given our focus on credit quality, the Fund's
performance continues to successfully fulfill its investment objective of
securing as high a level of current income as is consistent with liquidity and
preservation of capital.
We continue to maintain the majority of the Fund's holdings in either U.S.
Government and Agency securities (40.5%) or first-tier corporate securities
(24.9%). ('First-Tier' securities refer to those assigned the highest short term
rating by at least two nationally recognized rating organizations -- for
example, P-1 by Moody's Investor Service and A-1 by Standard & Poor's
Corporation.) The Fund does not consider investments rated below first-tier. In
addition, in evaluating corporate securities we also look for a minimum Safety
Rank of 3 and a Financial Strength Rating of B or higher according to the Value
Line Investment Survey.
When we last wrote to you in the 1996 annual report, interest rates had fallen
through much of the previous six month period in response to moderate economic
growth and benign inflation. As 1997 began, the economy started to show renewed
vigor, resulting in an almost 6% growth in GDP in the first quarter. As a
result, the Federal Reserve Board felt it necessary to raise the fed funds rate
(the rate at which banks borrow and lend excess reserves to each other) .25% to
5.50% on March 25 in an attempt to prevent the economy from overheating and
inflation from accelerating. This tightening of credit caused an increase in
interest rates across the yield curve, with the 30 year treasury bond peaking at
7.17% in April. Towards the end of this six month period, however, the economy's
growth began to slow, with long term rates ending the period at 6.79%. Long term
interest rates continued their drop into the summer, reaching a low of 6.29% on
July 31st before retreating back above the 6.60% level as we write to you now.
(Please see our accompanying "Economic Observations" insert for a more detailed
look at the business prospect.)
Thank you for investing with us.
Sincerely,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
Chairman and President
August 26, 1997
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2
<PAGE>
The Value Line Cash Fund, Inc.
Cash Fund Shareholders
- --------------------------------------------------------------------------------
Economic Observations
The economy continues to push ahead, with such important indicators as the level
of manufacturing activity and the rate of employment growth exhibiting a
reasonably good degree of strength. Such trends, and a continuing healthy level
of consumer confidence, suggest that growth will average 2.5%-3.0% during the
closing half of the year. Thereafter, we would expect the expansion pace to
moderate somewhat, with real, inflation-adjusted GDP growth holding in the range
of 2.0%-2.5% in 1998.
Inflation, meanwhile, continues to be remarkably subdued. This healthy pricing
trend, which is all the more impressive given the longevity of the business
upcycle, is, moreover, unlikely to change dramatically in the months ahead.
Underscoring our optimism in this area is the recent hammering out of a budget
package (which should reduce the government's need to borrow to finance the
deficit) and the fact that there is still a lack of serious shortages on either
the labor or the raw-materials fronts.
Interest rates, meantime, reflecting the current, relatively moderate pace of
economic growth and the subdued pricing structure, are unlikely to increase much
over the next few months. Nevertheless, we caution that given the seeming
resiliency of the business expansion, an inflation-wary Federal Reserve will
probably not shy away from tightening the monetary reins if the present pricing
stability gives way. And an upward move in rates, if sufficiently pronounced,
would be poorly recieved, in our opinion, by both the stock and the bond markets
and, as well, by the U.S. economy down the road. The recent increase in
volatility in the financial markets suggests that many are now questioning
whether the current, benign environment can last much longer. We think a
cautious investment strategy is now in order.
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3
<PAGE>
The Value Line Cash Fund, Inc.
Schedule of Investments
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<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(in thousands) Rate+ Date+ (in thousands)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (40.5%)
$ 20,000 Federal Home Loan Banks ....................... 5.25%(2) 8/14/97 $ 19,998
10,000 Federal Home Loan Banks ....................... 5.52(3) 9/26/97 9,998
10,000 Federal Home Loan Banks ....................... 5.52(3) 10/2/97 9,998
10,000 Federal Home Loan Banks ....................... 5.53(3) 1/2/98 9,995
7,233 Federal Home Loan Mortgage Corp. .............. 6.00(5) 6/1/98 7,215
3,000 Federal National Mortgage Association ......... 5.52(3) 9/12/97 2,999
10,000 Federal National Mortgage Association ......... 5.51(3) 11/4/97 9,997
10,000 Federal National Mortgage Association ......... 5.33(2) 12/9/97 9,998
10,000 Federal National Mortgage Association ......... 6.08 5/6/98 10,013
20,000 Federal National Mortgage Association ......... 5.32(2) 6/24/98 19,993
5,270 Student Loan Marketing Association ............ 5.42(2) 10/30/97 5,272
7,630 Student Loan Marketing Association ............ 5.42(2) 1/28/98 7,634
10,000 Student Loan Marketing Association ............ 5.32(2) 4/21/98 9,998
-------- --------
133,133 TOTAL U. S. GOVERNMENT AGENCY OBLIGATIONS .... 133,108
-------- --------
COMMERCIAL PAPER (24.9%)
AUTO & TRUCKS (4.2%)
7,000 Ford Motor Credit Corp. ....................... 5.60 7/14/97 6,986
7,000 Toyota Motor Credit Co. ....................... 5.53 7/18/97 6,982
-------- --------
14,000 13,968
-------- --------
DRUG (2.1%)
7,000 Eli Lilly & Co. ............................... 5.33 7/30/97 6,970
-------- --------
ELECTRICAL EQUIPMENT (2.1%)
7,000 General Electric Capital Corp. ................ 5.55 7/28/97 6,971
-------- --------
ELECTRIC UTILITY-CENTRAL (1.7%)
5,700 Central Louisiana Electric Co. ................ 5.59 8/5/97 5,669
-------- --------
ELECTRONICS (2.1%)
7,000 Avnet Inc. .................................... 5.65 8/4/97 6,962
-------- --------
FOREIGN ELECTRONICS/
ENTERTAINMENT (2.1%)
7,000 Hitachi America, Ltd. ......................... 5.57 10/16/97 6,884
-------- --------
INSURANCE-DIVERSIFIED (2.1%)
7,000 American General Financial Corp. .............. 5.55 9/17/97 6,916
-------- --------
INSURANCE-LIFE (2.2%)
7,000 Jefferson-Pilot Corp. ......................... 5.54 7/10/97 6,990
-------- --------
</TABLE>
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4
<PAGE>
The Value Line Cash Fund, Inc.
June 30, 1997 (unaudited)
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<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(in thousands) Rate+ Date+ (in thousands)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MACHINERY (2.1%)
$ 7,000 Deere (John) Capital Corp. .................... 5.57% 8/4/97 $ 6,963
-------- --------
OFFICE EQUIPMENT & SUPPLIES (2.1%)
7,000 Pitney Bowes Credit Corp. ..................... 5.62 12/2/97 6,832
-------- --------
SECURITIES BROKERAGE (2.1%)
7,000 Goldman Sachs Group, L.P. ..................... 5.80 11/7/97 6,860
-------- --------
82,700 TOTAL COMMERCIAL PAPER ........................ 81,985
-------- --------
CORPORATE SECURITIES (4.3%)
BANK (2.2%)
7,000 Bank of America-Illinois ...................... 5.85 9/30/97 7,001
-------- --------
SECURITIES BROKERAGE (2.1%)
7,000 Merrill Lynch & Co., Inc. ..................... 5.76(1) 4/6/98 7,000
-------- --------
14,000 TOTAL CORPORATE SECURITIES .................... 14,001
-------- --------
TAXABLE MUNICIPAL SECURITIES (17.2%)
7,000 Arkansas, Development Financial Authority,
Industrial Facilities Revenue,
(Potlatch Corp. Projects) Ser 1995-B
Letter of credit-Credit Swiss (weekly put) .. 5.75(2) 8/1/30 7,000
6,300 Carolina Medi-Plan Inc., variable rate
Demand Bonds, Series 1997, Gtd., Letter of
credit by Wachovia Bank of North
Carolina, N.A. (weekly put).................. 5.67(2) 6/1/22 6,300
7,000 De Kalb County, Georgia, Development
Authority Revenue, Emory University Project
(commercial Paper)........................... 5.75 8/7/97 7,000
7,615 Essex County, New Jersey, General Obligation
Refunding Bonds, Series 1989 A............... 5.64 8/15/97 7,679
7,000 Mississippi Business Financial Corp.,
Industrial Development Revenue Bonds,
Series 1994, (Bryan Foods, Inc. Project)
Gtd.-Sara Lee Corp. (Weekly Put.)........... 5.75(2) 2/1/19 7,000
15,000 Palmdale California, Community Redevelopment
Agency, Special Obligations Revenue Bonds.... 6.75 11/15/97 15,050
6,475 State of Texas, Veterans Housing Assistance,
Refunding Bonds, Series 1994 A-2, General
Obligation-Pledge (Weekly Put.).............. 5.63(2) 12/1/33 6,475
-------- --------
56,390 TOTAL TAXABLE MUNICIPAL SECURITIES ............ 56,504
-------- --------
</TABLE>
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5
<PAGE>
The Value Line Cash Fund, Inc.
Schedule of Investments June 30, 1997 (unaudited)
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<TABLE>
<CAPTION>
Value (in
Principal Maturity thousands except
Amount Rate+ Date+ per-share amount)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSET BACKED SECURITIES (9.0%)
$ 7,500 Carco Auto Loan Master Trust, Class A-1, Money
Market Extendible Certificates Ser-1993-2.... 5.71%(3) 11/15/97 $ 7,500
7,000 Chase Manhattan Auto Owner Trust, 1997-B,
Class A-1, Money Market Asset Backed Notes.
(Monthly Paydown Interest and Principal)..... 5.74 7/10/98 7,000
10,000 PNC Student Loan Trust I, Series 1997-2
Student Loan Asset Backed Notes, Class A-1
(Monthly Paydown, Interest and Principal).... 5.63 7/20/99 10,000
5,120 WFS Financial 1997-B Owner Trust, Auto
Receivable Backed Notes, Class A-1,
(Quarterly paydown, Interest and principal).. 5.73(4) 4/20/98 5,120
-------- --------
29,620 TOTAL ASSET BACKED SECURITIES ................. 29,620
-------- --------
$315,843 TOTAL INVESTMENTS (95.9%) ..................... 315,218
-------- --------
REPURCHASE AGREEMENTS (3.4%)
(including accrued interest)
11,215 Collateralized by U.S. Treasury Bond, $9,730,000 8 1/8%, due
8/15/19 value $11,444,795 (with Goldman, Sachs & Co., 5.75%,
dated 6/30/97, due 7/1/97, delivery value of $11,216,791)........ 11,217
EXCESS OF CASH AND OTHER ASSETS OVER
LIABILITIES (0.7%) .............................................. 2,402
-------- --------
$327,058 NET ASSETS (100.0%) ............................................... $328,837
======== ========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER OUTSTANDING SHARE ..................................... $1.00
========
</TABLE>
Rate frequency for floating rate notes at June 30, 1997:
(1) Daily (2) Weekly (3) Monthly (4) Quarterly (5) Interest and Principal
Monthly.
+ The rate shown on floating rate securities represents the yield at the end
of the reporting period. The maturity dates on these types of securities
reflect the final maturity dates.
See Notes to Financial Statements
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6
<PAGE>
The Value Line Cash Fund, Inc.
Statement of Asset and Liabilities
at June 30, 1997 (unaudited)
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Dollars
(in thousands
except per
share amount)
-------------
Assets:
Investments at value:
(Amortized cost--$315,218) ............................... $ 315,218
Repurchase agreement ....................................... 11,217
Cash ....................................................... 152
Interest receivable ........................................ 2,081
Receivable for capital shares sold ......................... 919
---------
Total Assets ........................................... 329,587
---------
Liabilities:
Payable for capital shares repurchased ..................... 496
Accrued expenses:
Advisory fee ............................................. 108
Other .................................................... 146
---------
Total Liabilities ...................................... 750
---------
Net Assets ................................................. $ 328,837
=========
Net Assets:
Capital Stock, at $.10 par value
(authorized 2 billion shares,
outstanding 329,020,930 shares) .......................... $ 32,902
Additional paid-in capital ................................. 296,119
Accumulated net realized loss on
investments .............................................. (184)
---------
Net Assets ............................................. $ 328,837
=========
Net Asset Value, Offering and
Redemption Price per
Outstanding Share ........................................ $1.00
=========
Statement of Operations
for the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Dollars
(in thousands)
--------------
Investment Income:
Interest income ............................................. $ 9,413
-------
Expenses:
Advisory fee ................................................ 686
Transfer agent .............................................. 146
Auditing and legal .......................................... 32
Printing, checks and stationery ............................. 26
Telephone and wire charges .................................. 20
Custodian fees .............................................. 20
Registration and filing fees ................................ 17
Postage and other expenses .................................. 15
Directors' fees and expenses ................................ 7
Insurance and dues .......................................... 3
-------
Total Expenses before
Custody Credits ......................................... 972
Less: custody credits ..................................... (3)
-------
Net Expenses .............................................. 969
-------
Net Investment Income ....................................... 8,444
-------
Net Realized (Loss) on Investments .......................... (23)
-------
Net Increase in Net Assets
from Operations ........................................... $ 8,421
=======
See Notes to Financial Statements.
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7
<PAGE>
The Value Line Cash Fund, Inc.
Statement of Changes in Net Assets
for the Six Months Ended June 30, 1997 (unaudited) and for the Year Ended
December 31, 1996
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<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(unaudited) 12/31/96
------------------------------
(Dollars in thousands)
<S> <C> <C>
Operations:
Net investment income................................................ $ 8,444 $ 17,916
Net realized (loss) gain on investments.............................. (23) 55
-------------------------
Net Increase in Net Assets from Operations........................... 8,421 17,971
-------------------------
Distributions to Shareholders:
Net investment income................................................ (8,444) (18,017)
-------------------------
Capital Share Transactions:
Net proceeds from sale of shares..................................... 261,483 755,880
Net proceeds from reinvestment of dividends.......................... 8,444 18,017
-------------------------
269,927 773,897
Cost of shares repurchased .......................................... (302,864) (771,397)
-------------------------
(Decrease) Increase from capital share transactions.................. (32,937) 2,500
-------------------------
Total (Decrease) Increase in Net Assets ............................... (32,960) 2,454
Net Assets:
Beginning of period.................................................. 361,797 359,343
-------------------------
End of period........................................................ $328,837 $361,797
=========================
</TABLE>
See Notes to Financial Statements.
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8
<PAGE>
The Value Line Cash Fund, Inc.
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Value Line Cash Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end, diversified management
investment company. The Fund's investment objective is to secure as high a level
of current income as is consistent with liquidity and preservation of capital.
The following summary of significant accounting policies is in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Fund in the preparation of its financial
statements. Generally accepted accounting principles may require management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results may differ from those estimates.
(A) Security Valuation. Securities held by the Fund are valued on the basis of
amortized cost, which approximates market value and does not take into account
unrealized 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.
The valuation of securities based upon their amortized cost is permitted by Rule
2a-7 under the Investment Company Act of 1940, as amended. The rule requires
that the Fund maintain a dollar-weighted average portfolio maturity of 90 days
or less, purchase instruments that have remaining maturities of 13 months or
less only, and invest only in securities determined by the Board of Directors to
be of good quality with minimal credit risks. The Directors have established
procedures designed to achieve these objectives.
(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, including accrued
interest, of the repurchase transaction. 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 of proceeds may be subject to legal proceedings.
(C) Security Transactions. Security transactions are accounted for on the date
the securities are purchased or sold. In computing net investment income,
premiums and discounts on portfolio securities are amortized. Realized gains and
losses on securities transactions are determined on the identified-cost method.
(D) 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, on a daily basis, all of its taxable income to its
shareholders. Therefore, no Federal income tax or excise tax provision is
required.
2. Dividends, Distributions to Shareholders and Capital Share Transactions
The Fund earns interest daily on its investments and distributes daily on each
day the Fund is open for business all of its net investment income. Net realized
gains, if any, will be distributed once a year. Earnings for Saturdays, Sundays
and holidays are paid as a dividend on the next business day. All such
distributions are automatically credited to shareholder accounts in additional
shares at net asset value of the day declared.
Because the Fund has maintained a $1.00 net asset value per share from
inception, the number of shares sold, shares issued to shareholders in
reinvestment of dividends
- --------------------------------------------------------------------------------
9
<PAGE>
The Value Line Cash Fund, Inc.
- --------------------------------------------------------------------------------
declared, and shares repurchased, are equal to the dollar amounts shown in the
Statement of Changes in Net Assets for the corresponding capital share
transactions.
3. Tax Information
At June 30, 1997 the aggregate cost of investments in securities and repurchase
agreement for Federal income tax purposes is approximately $326,435,000. At June
30, 1997, there is no unrealized appreciation or depreciation of investments.
For Federal income-tax purposes, the Fund utilized approximately $55,000 of its
capital loss carryover to offset a realized gain during the year ended December
31, 1996. The Fund had a net capital loss carryover at December 31, 1996 of
approximately $161,000, 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.
4. Investment Advisory Contract, Management Fees, and Transactions with
Affiliates
An advisory fee of $686,339 was paid or payable to Value Line, Inc. (the
"Adviser"), the Fund's investment adviser, for the six months ended June 30,
1997. This was computed at an annual rate of 4/10 of 1% per year of the average
daily net asset value of the Fund during the year and paid monthly. The Adviser
provides research, investment programs and supervision of the investment
portfolio and pays costs of administrative services, office space, 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 of the Fund
and pays their salaries and wages. The Fund bears all other costs and expenses.
Certain officers and directors of the Adviser and its subsidiary, Value Line
Securities, Inc. (the Fund's distributor and a registered broker/dealer), are
also officers and directors of the Fund.
The Adviser and/or affiliated companies and the Value Line, Inc. Profit Sharing
and Savings Plan owned 43,890,770 shares of the Fund's capital stock,
representing 13.34% of the outstanding shares at June 30, 1997. In addition,
certain officers and directors of the Fund owned 9,107,890 shares of the Fund,
representing 2.77% of the outstanding shares.
- --------------------------------------------------------------------------------
10
<PAGE>
The Value Line Cash Fund, Inc.
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data for a Share of Capital Stock Outstanding Throughout Each period:
<TABLE>
<CAPTION>
Six Months
Ended Years Ended December 31,
June 30, 1997 ----------------------------------------------------------------
(unaudited) 1996 1995 1994 1993 1992
------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-----------------------------------------------------------------------------
Net investment income ............ .025 .050 .054 .037 .031 .037
Dividends from net
investment income .............. (.025) (.050) (.054) (.037) (.031) (.037)
-----------------------------------------------------------------------------
Net realized loss on securities .. -- -- -- (.005) -- --
Voluntary capital contribution
from Adviser ................... -- -- -- .005 -- --
-----------------------------------------------------------------------------
Change in net asset value ........ -- -- -- -- -- --
-----------------------------------------------------------------------------
Net asset value, end of period ....... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
=============================================================================
Total return ......................... 2.47%+ 5.00% 5.40% 3.69%(1) 3.06% 3.74%
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) ..................... $328,837 $361,797 $359,343 $341,632 $345,769 $415,190
Ratio of expenses to
average net assets ................. .56%* .55% .57% .61% .60% .60%
Ratio of net investment income
to average net assets .............. 4.92%* 4.86% 5.27% 3.63% 3.02% 3.67%
</TABLE>
(1) 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 3.18%.
+ Not annualized, for six month period only.
* Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
11
<PAGE>
The Value Line Cash Fund, Inc.
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 Comvertible 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 Convetible 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.
1993--ValueLine 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 detemine 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 East 42nd Street, New York, New York 10017-5891 or call 1-800-223-0818, 24
hours a day, 7days a week. Read the prospectus carefully before you invest or
send money.
<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 Co.
225 Franklin Street
Boston, MA 02110
SHAREHOLDER State Street Bank and Trust Co.
SERVICING AGENT c/o NFDS
P.O. Box 419729
Kansas City, MO 64141-6729
INDEPENDENT Price Waterhouse LLP
ACCOUNTANTS 1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite 100
Greenwich, CT 06830
DIRECTORS Jean Bernhard Buttner
John W. Chandler
Leo R. Futia
Charles E. Reed
Paul Craig Roberts
Nancy-Beth Sheerr
OFFICERS Jean Bernhard Buttner
Chairman and President
Nathan Grant
Vice President
David T. Henigson
Vice President and
Secretary/Treasurer
Jack M. Houston
Assistant Secretary/Treasurer
Stephen La Rosa
Assisstant Secretary/Treasurer
An Investment in The Value Line Cash Fund, Inc. is not guaranteed or insured by
the U.S. Government and there is no assurance that the Fund will maintain its
per-share net asset value.
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 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).
VLF706138
