---------------------
SEMI-ANNUAL REPORT
---------------------
June 30, 1999
---------------------
The Value Line
Cash Fund, Inc.
[GRAPHIC]
VALUE LINE
No-Load
Mutual
Funds
<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, 1999. The total net assets of your fund at the end of
June were $335 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, 1999 at 4.57%
compares favorably to the Fund's peer group's return of 4.27% as measured by
Lipper Analytical Services. For both the 7-day and the 30-day periods ended June
30th, the Fund's yield was 4.50% and 4.50%, respectively. 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 (65%) of the Fund's holdings in U.S.
Government and Agency securities and first-tier corporate securities.
(First-tier securities refer to those assigned the highest short-term rating by
at least two nationally recognized ratings organizations--for example, P-1 by
Moody's Investor Service and A-1 by Standard & Poor's Corporation.) At present,
we are not considering any new holdings rated below the first-tier level. In
addition to our focus on first-tier securities, 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.
The domestic economy remained strong in the first half of this year. As a
result, the Federal Reserve Board increased the fed funds rate (the rate at
which banks borrow and lend excess reserves to each other) .25% to 5.00% in
June. The Fed was motivated to increase short-term rates to prevent the economy
from growing too quickly thereby causing inflation to accelerate. Rates began to
rise in the spring when it was widely believed that the Fed would need to raise
rates based, in part, on a stronger than expected GDP. However, following the
rate increase, the Fed moved to a neutral bias concerning future rate increases.
Please see our accompanying "Economic Observations" insert for our current
thinking on the economy and interest rates.
Thank you for investing with us.
Sincerely,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
Chairman and President
August 6, 1999
- --------------------------------------------------------------------------------
2
<PAGE>
The Value Line Cash Fund, Inc.
Cash Fund Shareholders
- --------------------------------------------------------------------------------
Economic Observations
The economy is now starting to turn in more of a mixed performance. Evidence of
this uneven pattern began to emerge in the second quarter, when GDP growth
slowed to a 2.3% rate. More recently, we've seen a moderation in the rate of
manufacturing activity and some selective weakening in retail sales. On the
other hand, housing is still quite strong and the level of employment continues
to increase at a healthy pace. Overall, this less even growth trend does not
imply that the long-running expansion is about to falter. But it does suggest
that growth is likely to hold nearer to the recent 2%-3% level over the next
several quarters than to the earlier, and more frenetic, 4%-5% pace.
Inflationary pressures, meanwhile, are starting to build. Here, as well, we
aren't forescasting a dramatic change in trend. Nevertheless, the sharp runup in
oil prices in recent months, the recent escalation in wage costs, and the runup
in mortgage rates all indicate that the cost of living is increasing. A gradual
uptrend in pricing now seems likely over the next several quarters. The Federal
Reserve, taking note of these rising cost pressures is likely to maintain a
somewhat more restrictive monetary stance in the months ahead.
- --------------------------------------------------------------------------------
3
<PAGE>
The Value Line Cash Fund, Inc.
Schedule of Investments
================================================================================
<TABLE>
<CAPTION>
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (26.8%)
$ 10,000 Federal Home Loan Banks.................................... 5.15%(1) 3/8/00 $ 10,001
10,000 Federal Home Loan Banks.................................... 5.16(1) 3/22/00 10,000
10,000 Federal Home Loan Banks.................................... 5.20(1) 4/12/00 9,997
10,000 Federal Home Loan Banks.................................... 5.28(1) 4/24/00 10,000
10,000 Student Loan Marketing Association......................... 5.54(1) 12/2/99 9,999
10,000 Student Loan Marketing Association......................... 5.16(1) 12/16/99 10,000
20,000 Student Loan Marketing Association......................... 5.29(1) 1/12/00 19,999
10,000 Student Loan Marketing Association......................... 5.48(1) 3/8/00 10,000
- ---------- --------
90,000 TOTAL U. S. GOVERNMENT AGENCY OBLIGATIONS ................. 89,996
- ---------- --------
COMMERCIAL PAPER (38.9%)
AUTO & TRUCK (2.1%)
7,000 Ford Motor Credit Corp. ................................... 4.80 7/15/99 6,987
- ---------- --------
BEVERAGE--ALCOHOLIC (2.1%)
7,000 Anheuser Busch Inc......................................... 4.90 7/6/99 6,995
- ---------- --------
BEVERAGE--SOFT DRINK (2.1%)
7,000 Coca-Cola Co............................................... 5.04 8/31/99 6,940
- ---------- --------
CHEMICAL--DIVERSIFIED (2.1%)
7,000 Minnesota Mining & Manufacturing Co........................ 4.80 7/21/99 6,981
- ---------- --------
CHEMICAL--SPECIALTY (4.1%)
7,000 Lubrizol Corp.............................................. 5.07 8/23/99 6,948
7,000 Nalco Chemical Co.......................................... 4.90 8/17/99 6,955
- ---------- --------
14,000 13,903
- ---------- --------
DIVERSIFIED COMPANIES (2.1%)
7,000 Fortune Brands Inc......................................... 4.79 7/29/99 6,976
- ---------- --------
ELECTRIC UTILITY--CENTRAL (4.1%)
7,000 Central Louisiana Electric Co.............................. 4.90 8/6/99 6,966
7,000 IPALCO Enterprises Inc..................................... 5.03 8/27/99 6,944
- ---------- --------
14,000 13,910
- ---------- --------
ELECTRICAL EQUIPMENT (2.0%)
7,000 General Electric Capital Corp.............................. 4.81 9/14/99 6,930
- ---------- --------
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
The Value Line Cash Fund, Inc.
June 30, 1999 (unaudited)
================================================================================
<TABLE>
<CAPTION>
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRONICS (1.5%)
$ 5,000 Avnet Inc.................................................. 4.84 7/13/99 $ 4,992
- ---------- --------
HOUSEHOLD PRODUCTS (2.1%)
7,000 Procter & Gamble Co........................................ 4.97 8/9/99 6,962
- ---------- --------
INSURANCE--DIVERSIFIED (2.1%)
7,000 American General Financial Corp............................ 4.94 8/10/99 6,962
- ---------- --------
INSURANCE--LIFE (2.1%)
7,000 Jefferson-Pilot Corp....................................... 4.87 9/1/99 6,941
- ---------- --------
MACHINERY (2.1%)
7,000 Deere & Co................................................. 4.80 8/24/99 6,949
- ---------- --------
METAL FABRICATING (2.1%)
7,000 Illinois Tool Works Inc.................................... 4.83 7/20/99 6,982
- ---------- --------
PRECISION INSTRUMENT (2.1%)
7,000 Eastman Kodak Co........................................... 4.79 8/12/99 6,961
- ---------- --------
TELECOMMUNICATIONS SERVICES (4.1%)
7,000 Ameritech Corp. ........................................... 4.79 7/23/99 6,980
7,000 Bell South Telecommunications Corp......................... 4.77 7/20/99 6,982
- ---------- --------
14,000 13,962
- ---------- --------
131,000 TOTAL COMMERCIAL PAPER .................................... 130,333
- ---------- --------
CORPORATE BONDS & NOTES (21.1%)
BANK (7.2%)
7,000 Chase Manhattan Corp....................................... 5.00(3) 1/12/00 7,003
5,000 Key Bank National Association.............................. 5.20(3) 5/3/99 5,012
3,000 NationsBank Corp........................................... 6.25 8/16/99 3,002
4,000 NationsBank Corp........................................... 5.19(3) 2/9/00 4,006
5,000 Norwest Financial Inc...................................... 5.13 4/15/00 4,996
- ---------- --------
24,000 24,019
- ---------- --------
DIVERSIFIED COMPANIES (1.2%)
4,000 Wesco Financial Corp....................................... 8.88 11/1/99 4,055
- ---------- --------
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE>
The Value Line Cash Fund, Inc.
Schedule of Investments
================================================================================
<TABLE>
<CAPTION>
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRIC UTILITY--CENTRAL (1.5%)
$ 5,000 Union Electric Co.......................................... 6.75 10/15/99 $ 5,026
- ---------- --------
INSURANCE--DIVERSIFIED (3.0%)
5,000 Aon Corp................................................... 6.88 10/1/99 5,026
5,000 SunAmerica Inc. ........................................... 6.20 10/31/99 5,019
- ---------- --------
10,000 10,045
- ---------- --------
OTHER (1.3%)
4,334 Columbia University Trustees NY ........................... 7.98 11/15/99 4,438
- ---------- --------
SECURITIES BROKERAGE (1.6%)
5,350 Merrill Lynch & Co., Inc................................... 5.80 4/10/00 5,360
- ---------- --------
TELECOMMUNICATION SERVICES (5.3%)
5,000 GTE Southwest Inc.......................................... 5.82 12/1/99 5,016
6,630 Southwestern Bell Capital Corp. ........................... 6.86 7/26/99 6,635
6,000 TCI Communications Inc. ................................... 6.37 9/15/99 6,016
- ---------- --------
17,630 17,667
- ---------- --------
70,314 TOTAL CORPORATE BONDS & NOTES ............................. 70,610
- ---------- --------
TAXABLE MUNICIPAL SECURITIES (8.0%)
7,000 Arkansas, Development Financial Authority,
- ---------- Industrial Facilities Revenue, (Potlatch Corp. Projects)
Ser 1995-B LOC-Credit Swiss (Weekly Put)................ 5.25(1) 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)....................... 5.22(1) 6/1/22* 6,300
--------
7,000 Mississippi Business Financial Corp.,
- ---------- Industrial Development Revenue Bonds, Series 1994,
(Bryan Foods, Inc. Project) Gtd.--
Sara Lee Corp. (Weekly Put.)........................... 5.20(1) 2/1/19* 7,000
--------
6,475 State of Texas, Veterans Housing Assistance,
- ---------- Refunding Bonds, Series 1994 A-2,
Pledge Pledge (Weekly Put.)............................. 5.21(1) 12/1/33* 6,475
- ---------- --------
26,775 TOTAL TAXABLE MUNICIPAL SECURITIES ........................ 26,775
- ---------- --------
</TABLE>
- --------------------------------------------------------------------------------
6
<PAGE>
The Value Line Cash Fund, Inc.
June 30, 1999 (unaudited)
================================================================================
<TABLE>
<CAPTION>
Value
(in
thousands)
Principal except
Amount Maturity per-share
(in thousands) Yield+ Date amount)
- -------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES (1.2%)
<S> <C> <C> <C>
$ 616 Capelco Capital Funding Corp. Series 1998-A,
- ----------
Class A-1 Lease-Backed Notes,
(Monthly Paydown, Interest and Principal)............... 5.68(4) 8/16/99 $ 616
--------
2,272 Green Tree Lease Financial LLC, Series 1998-1,
- ----------
Class A-1, (Monthly Paydown, Interest and Principal).... 5.20(4) 1/20/99 2,272
--------
1,158 Newcourt Equipment Trust Securities, Series 1998-1,
- ----------
Class A-1, (Monthly Paydown, Interest and Principal).... 5.01(4) 11/20/99 1,158
--------
4,046 TOTAL ASSET BACKED SECURITIES ............................. 4,046
- ---------- --------
$ 322,135 TOTAL INVESTMENTS (96.0%) ................................. 321,760
- ---------- --------
(Amortized Cost $321,760)
REPURCHASE AGREEMENT (4.1%)
(including accrued interest)
13,700 Collateralized by U.S. Treasury Bond,
- ---------
$10,980,000 103/4%, due 8/15/05 value $13,997,055
(with Morgan Stanley & Co., Inc., 4.85%,
dated 6/30/99, due 7/1/99 delivery value of $13,701,846) 13,702
EXCESS OF LIABILITIES
OVER CASH AND RECEIVABLES (-0.1%) ...................... (334)
--------
NET ASSETS (100.0%) ....................................... $335,128
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER OUTSTANDING SHARE ............................ $ 1.00
========
</TABLE>
+ Rate frequency for floating rate notes at June 30, 1999: (1) Weekly (2)
Monthly (3) Quarterly (4) 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
- --------------------------------------------------------------------------------
7
<PAGE>
The Value Line Cash Fund, Inc.
Statement of Assets and Liabilities
at June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Dollars
(in thousands
except per
share amount)
-------------
Assets:
Investments at value:
(Amortized cost-- $321,760)....... $ 321,760
Repurchase agreement ............... 13,702
Cash ............................... 79
Receivable for capital shares sold . 1,014
Interest receivable ................ 1,932
---------
Total Assets ................... 338,487
---------
Liabilities:
Payable for capital shares repurchased 3,086
Accrued expenses:
Advisory fee ..................... 156
Other ............................ 117
---------
Total Liabilities .............. 3,359
---------
Net Assets ......................... $ 335,128
=========
Net Assets:
Capital Stock, at $.10 par value
(authorized 2 billion shares,
outstanding 335,179,324 shares)... $ 33,518
Additional paid-in capital ......... 301,662
Accumulated net realized loss
on investments.................... (52)
---------
Net Assets ..................... $ 335,128
=========
Net Asset Value, Offering and
Redemption Price per
Outstanding Share................. $ 1.00
=========
Statement of Assets and Liabilities
at June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Dollars
(in thousands)
-------------
Investment Income:
Interest income ..................... $ 8,560
---------
Expenses:
Advisory fee ........................ 676
Transfer agent ...................... 131
Printing, checks and stationery ..... 32
Postage and other expenses .......... 23
Auditing and legal .................. 19
Telephone and wire charges .......... 16
Registration and filing fees,
Insurance & Misc. ................. 14
Custodian fees ...................... 7
Directors' fees and expenses ........ 7
---------
Net Expenses .................... 925
---------
Net Investment Income ............... 7,635
---------
Net Realized Gain on Investments .... 2
---------
Net Increase in Net Assets
from Operations.................... $ 7,637
=========
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8
<PAGE>
The Value Line Cash Fund, Inc.
Statement of Changes in Net Assets
for the Six Months Ended June 30, 1999 (unaudited)
and for the Year Ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, 1999 December 31,
(unaudited) 1998
----------------------------
(Dollars in thousands)
<S> <C> <C>
Operations:
Net investment income ............................................... $ 7,635 $ 15,818
Net realized gain on investments .................................... 2 16
--------------------------
Net Increase in Net Assets from Operations........................... 7,637 15,834
--------------------------
Distributions to Shareholders:
Net investment income ............................................... (7,635) (15,818)
--------------------------
Capital Share Transactions:
Net proceeds from sale of shares .................................... 810,673 805,869
Net proceeds from reinvestment of dividends.......................... 7,635 15,818
--------------------------
818,308 821,687
Cost of shares repurchased .......................................... (800,493) (807,486)
--------------------------
Increase from capital share transactions........................... 17,815 14,201
--------------------------
Total Increase in Net Assets .......................................... 17,817 14,217
Net Assets:
Beginning of period ................................................. 317,311 303,094
--------------------------
End of period ...................................................... $ 335,128 $ 317,311
==========================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
9
<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 preservation of capital and liquidity.
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 or 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.
- --------------------------------------------------------------------------------
10
<PAGE>
The Value Line Cash Fund, Inc.
June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
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 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, 1999 the aggregate cost of investments in securities and repurchase
agreement for Federal income tax purposes is approximately $335,462,000. At June
30, 1999, there is no unrealized appreciation or depreciation of investments.
For Federal income-tax purposes, the Fund utilized approximately $16,000 of its
capital loss carryover to offset a realized gain during the year ended December
31, 1998. The Fund had a net capital loss carryover at December 31, 1998 of
approximately $54,000, 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 $675,611 was paid or payable to Value Line, Inc. (the
"Adviser"), the Fund's investment adviser, for the six months ended June 30,
1999. 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 71,373,609 shares of the Fund's capital stock,
representing 21.29% of the outstanding shares at June 30, 1999. In addition,
certain officers and directors of the Fund owned 7,706,995 shares of the Fund,
representing 2.3% of the outstanding shares.
- --------------------------------------------------------------------------------
11
<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, 1999 ---------------------------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
-------------- ----------- ----------- ----------- ------------ ------------
<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 ......... .023 .051 .051 .050 .054 .037
Dividends from net
investment income ........... (.023) (.051) (.051) (.050) (.054) (.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 .................... 2.27%+ 5.06% 5.10% 5.00% 5.40% 3.69%(1)
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) ................ $ 335,128 $ 317,311 $ 303,094 $ 361,797 $ 359,343 $ 341,632
Ratio of expenses to average
net assets .................... .56% .57% .59% .55% .57% .61%
Ratio of net investment income
to average net assets ......... 4.52%* 4.93% 4.97% 4.86% 5.27% 3.63%
</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 months period only.
* Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
17
<PAGE>
The Value Line Cash Fund, Inc.
Other Information (unaudited)
- --------------------------------------------------------------------------------
Year 2000. Like other mutual funds, the Fund could be adversely affected if the
computer systems used by the Adviser and other service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. This is commonly known as the "Year 2000 Problem." The Adviser is
taking steps that it believes are reasonably designed to address in Year 2000
Problem with respect to the computer systems that it uses and to obtain
satisfactory assurances that comparable steps are being taken by the Fund's
other major service providers. At this time, however, there can be no assurance
that these steps will be sufficient to avoid any adverse impact to the Fund.
The Year 2000 Problem is expected to impact corporations, which may include
issurers of portfolio securities held by the Fund, to varying degrees based upon
various factors, including, but not limited to, the corporation's industry
sector and degree of technological sophistication. The Fund is unable to predict
what impact, if any, the Year 2000 Problem will have on issuers of the portfolio
securities held by the Fund.
- --------------------------------------------------------------------------------
13
<PAGE>
The Value Line Cash Fund, Inc.
- --------------------------------------------------------------------------------
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14
<PAGE>
The Value Line Cash Fund, Inc.
- --------------------------------------------------------------------------------
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15
<PAGE>
The Value Line Cash Fund, Inc.
The Value Line Family of Funds
- --------------------------------------------------------------------------------
1950--The Value Line Fund seeks long-term growth of capital. Current income is a
secondary objective.
1952--Value Line Income and Growth Fund's primary investment objective is
income, as high and dependable as is consistent with reasonable risk. Capital
growth to increase total return is a secondary objective.
1956--The Value Line Special Situations Fund seeks long-term growth of capital.
No consideration is given to current income in the choice of investments.
1972--Value Line Leveraged Growth Investors' sole investment objective is to
realize capital growth.
1979--The Value Line Cash Fund, a money market fund, seeks to secure as high a
level of current income as is consistent with maintaining liquidity and
preserving capital.
1981--Value Line U.S. Government Securities Fund seeks maximum income without
undue risk to capital. Under normal conditions, at least 80% of the value of its
net assets will be invested in securities issued or guaranteed by the U.S.
Government and its agencies and instrumentalities.
1983--Value Line Centurion Fund* seeks long-term growth of capital.
1984--The Value Line Tax Exempt Fund seeks to provide investors with the maximum
income exempt from federal income taxes while avoiding undue risk to principal.
The Fund offers investors a choice of two portfolios: The Money Market Portfolio
and the National Bond 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.
1987--Value Line New York Tax Exempt Trust seeks to provide New York taxpayers
with the maximum income exempt from New York State, New York City and federal
income taxes while avoiding undue risk to principal.
1987--Value Line Strategic Asset Management Trust* seeks to achive a high total
investment return consistent with reasonable risk.
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 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, 7 days a week, or visit us at www.valueline.com. Read the
prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
16
<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 PricewaterhouseCoopers LLP
ACCOUNTANTS 1177 Avenue of the Americas
New York, NY 10036-2798
LEGAL COUNSEL Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite 100
Greenwich, CT 06830
DIRECTORS Jean Bernhard Buttner
John W. Chandler
Leo R. Futia
David H. Porter
Paul Craig Roberts
Nancy-Beth Sheerr
OFFICERS Jean Bernhard Buttner
Chairman and President
Nathan Grant
Vice President
Christopher Coyle
Vice President
David T. Henigson
Vice President
Secretary/Treasurer
Jack M. Houston
Assistant Secretary/Treasurer
Stephen La Rosa
Assistant 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).
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