================================================================================
-----------------
ANNUAL REPORT
-----------------
December 31, 1998
-----------------
The Value Line
Cash Fund, Inc.
[LOGO]
VALUE LINE
No-Load
Mutual
Funds
<PAGE>
The Value Line Cash Fund, Inc.
To Our Value Line
- --------------------------------------------------------------------------------
To Our Shareholders:
For the year ended December 31, 1998, the yield for the Value Line Cash Fund was
5.06%. This was above the average taxable money market fund return of 4.86% for
the calendar year 1998, as compiled by Lipper Analytical Services. Total net
assets of the Fund were $317.3 million; and the average days to maturity was 61
days, which represents a reduction from where it began the year at 82 days.
We continue to place priority on securities of the highest quality. U.S.
Government Agency Obligations remain the largest classification of the portfolio
(36.4%). Over the course of the year, we increased our holdings of short-term
corporate bonds and other first-tier securities. ("First-tier" securities refer
to those assigned the highest rating by at least two nationally recognized
rating organizations--for example, P-1 by Moody's Investors Service and A-1 by
Standard & Poor's Corporation.) No investments with ratings below the first-tier
level are currently being considered. In evaluating new commercial paper, 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.
Since our semi-annual report of June 30, 1998, the domestic economy has remained
relatively healthy. However, several foreign markets have experienced severe
economic problems. This weakness overseas created demand for safe-liquid
investments, such as U.S. Government bonds, which drove interest rates on these
securities to very low levels. This "flight to quality" reduced demand for most
other fixed-income securities. The Federal Reserve Bank feared that the global
economic crisis would soon slow U.S. economic growth. Consequently, the Fed
lowered the Federal Funds Rate three times this past fall, to a current level of
4.75%. (Please see the accompanying "Economic Observations" insert for our
current thinking on the economy and interest rates.)
We appreciate your confidence in the Value Line Cash Fund and look forward to
serving your investment needs in the future.
Sincerely,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
Chairman and President
February 1, 1999
- --------------------------------------------------------------------------------
2
<PAGE>
The Value Line Cash Fund, Inc.
Cash Fund Shareholders
- --------------------------------------------------------------------------------
Economic Observations
Steady growth and low inflation continue to be two of the dominant themes in the
domestic economy at this time. This enviable performance is underscored by
reports that show persisting strength in consumer spending, housing
construction, personal income, and employment. Such trends suggest that the
economy will expand by more than 3% during the opening quarter of 1999. At the
same time, inflation remains quiescent, with producer and consumer price
increases still modest, overall, and with selective industrial sectors finding
it difficult to implement price increases. In some instances, prices are
actually falling.
We believe this modest pace of economic activity will continue over the next
several months, with growth averaging 2.5%-3.0% for the year as a whole. Our
sense, as well, is that the economic crisis that is still afflicting much of
Asia and parts of Latin America (especially Brazil) will gradually recede over
the next 12 to 18 months. At the same time, we expect inflation to remain
subdued. The Federal Reserve, encouraged by this benign state of economic
affairs, will probably maintain its current monetary stance over the next
several months, at least. Any subsequent adjustment in rates will probably be
modest given the likely absence of excesses in growth or inflation in the
domestic economy.
- --------------------------------------------------------------------------------
3
<PAGE>
The Value Line Cash Fund, Inc.
<TABLE>
<CAPTION>
Schedule of Investments
- ----------------------------------------------------------------------------------------------------------
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (36.4%)
$ 25,000 Federal Farm Credit Banks.................................. 5.41%(3) 1/29/99 $ 24,999
25,000 Federal Home Loan Banks.................................... 5.41(3) 3/25/99 24,997
10,000 Federal Home Loan Banks.................................... 4.97(2) 6/17/99 9,999
20,000 Federal National Mortgage Association...................... 5.04(2) 3/16/99 19,998
5,500 Student Loan Marketing Association......................... 5.39(2) 4/16/99 5,506
10,000 Student Loan Marketing Association......................... 5.29(2) 12/2/99 9,998
20,000 Student Loan Marketing Association......................... 5.04(2) 1/12/00 19,998
- --------- --------
115,500 TOTAL U. S. GOVERNMENT AGENCY OBLIGATIONS ................ 115,495
- --------- --------
COMMERCIAL PAPER (23.9%)
AUTO & TRUCK (2.2%)
7,000 Ford Motor Credit Corp..................................... 5.12 1/22/99 6,979
- --------- --------
BEVERAGE-SOFT DRINK (2.2%)
7,000 Coca-Cola Co............................................... 5.00 1/15/99 6,986
- --------- --------
CHEMICAL-SPECIALTY (4.1%)
7,000 Great Lakes Chemical Corp.................................. 5.10 1/14/99 6,987
6,000 Nalco Chemical Co.......................................... 4.88 5/21/99 5,886
- --------- --------
13,000 12,873
- --------- --------
DIVERSIFIED COMPANIES (2.2%)
7,000 General Electric Capital Corp.............................. 5.32 1/8/99 6,993
- --------- --------
ELECTRONICS (2.2%)
7,000 Avnet Inc.................................................. 5.33 1/12/99 6,989
- --------- --------
INSURANCE-DIVERSIFIED (2.2%)
7,000 American General Financial Corp............................ 5.30 1/8/99 6,993
- --------- --------
MACHINERY (2.2%)
7,000 Deere (John) Capital Corp.................................. 5.31 1/19/99 6,981
- --------- --------
METAL FABRICATING (2.2%)
7,000 Illinois Tool Works Inc.................................... 5.17 1/19/99 6,982
- --------- --------
PRECISION INSTRUMENT (2.2%)
7,000 Eastman Kodak Co........................................... 5.10 2/18/99 6,952
- --------- --------
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
The Value Line Cash Fund, Inc.
<TABLE>
<CAPTION>
December 31, 1998
- ----------------------------------------------------------------------------------------------------------
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS SERVICES (2.2%)
$ 7,000 Ameritech.................................................. 5.08% 2/2/99 $ 6,968
- --------- --------
76,000 TOTAL COMMERCIAL PAPER .................................... 75,696
- --------- --------
CORPORATE BONDS & NOTES (24.0%)
BANK (9.1%)
5,000 Key Bank National Association.............................. 4.68 1/29/99 5,000
7,000 Morgan (J.P.) & Co., Inc................................... 5.75 3/10/99 6,999
7,000 National City Bank of Indianapolis......................... 5.44 4/20/99 6,999
3,000 NationsBank Corp........................................... 6.25 8/16/99 3,010
7,000 Northern Trust Co., Bank................................... 5.20 4/9/99 6,997
- --------- --------
29,000 29,005
- --------- --------
DIVERSIFIED COMPANIES (1.3%)
4,000 Wesco Financial Corp....................................... 8.88 11/1/99 4,135
- --------- --------
ELECTRIC UTILITY-CENTRAL (1.6%)
5,000 Union Electric Co.......................................... 6.75 10/15/99 5,069
- --------- --------
FINANCIAL SERVICES (2.0%)
6,175 Associates Corp. North America............................. 6.48 5/6/99 6,190
- --------- --------
INSURANCE-DIVERSIFIED (1.6%)
5,000 Aon Corp................................................... 6.88 10/1/99 5,076
- --------- --------
SECURITIES BROKERAGE (6.3%)
5,000 Lehman Brothers Holdings Inc............................... 7.00 5/13/99 5,023
7,000 Merrill Lynch & Co., Inc................................... 5.76 6/10/99 7,000
8,000 Salomon Inc................................................ 7.00 5/15/99 8,044
- --------- --------
20,000 20,067
- --------- --------
TELECOMMUNICATION SERVICES (2.1%)
6,630 Southwestern Bell Capital Corp............................. 6.86 7/26/99 6,674
- --------- --------
75,805 TOTAL CORPORATE BONDS & NOTES ............................. 76,216
- --------- --------
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE>
The Value Line Cash Fund, Inc.
<TABLE>
<CAPTION>
Schedule of Investments
- ----------------------------------------------------------------------------------------------------------
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAXABLE MUNICIPAL SECURITIES (8.4%)
$ 7,000 Arkansas, Development Financial Authority,
- ---------- Industrial Facilities Revenue, (Potlatch Corp. Projects)
Ser 1995-B, LOC-Credit Swiss (Weekly Put) .............. 5.70%(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) ................... 5.64(2) 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.) .......................................... 5.70(2) 2/1/19* 7,000
--------
6,475 State of Texas, Veterans Housing
- ---------- Assistance, Refunding Bonds,
Series 1994 A-2, G.O.- Pledge
(Weekly Put.) .......................................... 5.50(2) 12/1/33* 6,475
--------
26,775 TOTAL TAXABLE MUNICIPAL SECURITIES ........................ 26,775
- ---------- --------
ASSET BACKED SECURITIES (5.3%)
3,083 Caterpillar Financial Asset Trust,
- ---------- Series 1998-A, Class A-1, Asset Backed Notes,
(Monthly Paydown, Interest and Principal)............... 5.64 7/26/99 3,083
--------
4,101 Capelco Capital Funding Corp. Series 1998-A,
- ---------- Class A-1 Lease-Backed Notes, (Monthly Paydown,
Interest and Principal)................................. 5.68 8/16/99 4,101
--------
5,000 Green Tree Lease Financial LLC, Series 1998-1,
- ---------- Class A-1, (Monthly Paydown, Interest and Principal).... 5.20 1/20/00 5,000
--------
4,485 Newcourt Equipment Trust Securities, Series 1998-1,
- ---------- Class A-1, (Monthly Paydown, Interest and Principal).... 5.00 11/20/99 4,485
--------
16,669 TOTAL ASSET BACKED SECURITIES ............................. 16,669
- ---------- --------
310,749 TOTAL INVESTMENTS (98.0%) (Amortized Cost $310,851) ...... 310,851
- ---------- --------
</TABLE>
- --------------------------------------------------------------------------------
6
<PAGE>
The Value Line Cash Fund, Inc.
<TABLE>
<CAPTION>
December 31, 1998
- ----------------------------------------------------------------------------------------------------------
Value (in
thousands
Principal except
Amount per-share
(in thousands) amount)
- ----------------------------------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENT (2.2%)
(including accrued interest)
$ 7,000 Collateralized by U.S. Treasury Bond,
- ---------- $5,245,000 11 5/8%, due 11/15/04 value
$7,061,081 (with Morgan Stanley & Co., Inc.,
4.62%, dated 12/31/98, due 1/4/99
delivery value of $7,000,898) .......................... $ 7,001
EXCESS OF LIABILITIES OVER CASH AND
RECEIVABLES (-0.2%) .................................... (541)
---------
NET ASSETS (100.0%)........................................ $ 317,311
=========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER OUTSTANDING SHARE ............................ $ 1.00
=========
</TABLE>
- ----------
+ Rate frequency for floating rate notes at December 31, 1998: (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 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 December 31, 1998
- --------------------------------------------------------------------------------
Dollars
(in thousands
except per
share amount)
-------------
Assets:
Investments at value:
(Amortized cost-- $310,851) .............................. $ 310,851
Repurchase agreement ....................................... 7,001
Cash ....................................................... 261
Receivable for capital shares sold ......................... 1,051
Interest receivable ........................................ 1,803
---------
Total Assets ........................................... 320,967
---------
Liabilities:
Payable for capital shares repurchased ..................... 3,327
Accrued expenses:
Advisory fee ............................................. 110
Other .................................................... 219
---------
Total Liabilities ...................................... 3,656
---------
Net Assets ................................................. $ 317,311
=========
Net Assets:
Capital Stock, at $.10 par value
(authorized 2 billion shares,
outstanding 317,365,537 shares) .......................... $ 31,737
Additional paid-in capital ................................. 285,628
Accumulated net realized loss
on investments ........................................... (54)
---------
Net Assets ............................................. $ 317,311
=========
Net Asset Value, Offering and
Redemption Price per
Outstanding Share ........................................ $ 1.00
=========
Statement of Operations
for the Year Ended December 31, 1998
- --------------------------------------------------------------------------------
Dollars
(in thousands)
-------------
Investment Income:
Interest income ........................................... $ 17,657
--------
Expenses:
Advisory fee .............................................. 1,285
Transfer agent ............................................ 262
Postage and other expenses ................................ 64
Insurance, dues and misc .................................. 46
Auditing and legal ........................................ 37
Custodian fees ............................................ 35
Printing, checks and stationery ........................... 33
Registration and filing fees .............................. 33
Telephone and wire charges ................................ 31
Directors' fees and expenses .............................. 15
--------
Total Expenses before
Custody Credits ..................................... 1,841
--------
Less: Custody Credits ................................. (2)
--------
Net Expenses .......................................... 1,839
--------
Net Investment Income ..................................... 15,818
--------
Net Realized Gain on Investments .......................... 16
--------
Net Increase in Net Assets
from Operations ......................................... $ 15,834
========
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8
<PAGE>
The Value Line Cash Fund, Inc.
Statement of Changes in Net Assets
for the Years Ended December 31, 1998 and 1997
- --------------------------------------------------------------------------------
1998 1997
-----------------------
(Dollars in thousands)
Operations:
Net investment income .............................. $ 15,818 $ 16,127
Net realized gain on investments ................... 16 90
----------------------
Net Increase in Net Assets from Operations ......... 15,834 16,217
----------------------
Distributions to Shareholders:
Net investment income .............................. (15,818) (16,127)
----------------------
Capital Share Transactions:
Net proceeds from sale of shares ................... 805,869 484,462
Net proceeds from reinvestment of dividends ........ 15,818 16,127
----------------------
821,687 500,589
Cost of shares repurchased ......................... (807,486) (559,382)
----------------------
Increase (Decrease) from capital share transactions 14,201 (58,793)
----------------------
Total Increase (Decrease) in Net Assets .............. 14,217 (58,703)
Net Assets:
Beginning of year .................................. 303,094 361,797
----------------------
End of year ........................................ $ 317,311 $ 303,094
======================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
9
<PAGE>
The Value Line Cash Fund, Inc.
Notes to Financial Statements
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
2. Dividends and 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 December 31, 1998 the aggregate cost of investments in securities and
repurchase agreement for Federal income tax purposes is approximately
$317,852,000. At December 31, 1998, 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 $1,284,721 was paid or payable to Value Line, Inc. (the
"Adviser"), the Fund's investment adviser, for the year ended December 31, 1998.
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 55,516,948 shares of the Fund's capital stock,
representing 17.49% of the outstanding shares at December 31, 1998. In addition,
certain officers and directors of the Fund owned 7,934,974 shares of the Fund,
representing 2.5% of the outstanding shares.
- --------------------------------------------------------------------------------
11
<PAGE>
Financial Highlights
Selected Data for a Share of Capital Stock Outstanding Throughout Each Year:
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------------------------------------------------------
Net investment income .................. .051 .051 .050 .054 .037
Dividends from net investment
income ............................... (.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 year ............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
============================================================
Total return ............................... 5.06% 5.10% 5.00% 5.40% 3.69%(1)
============================================================
Ratios/Supplemental Data:
Net assets, end of year (in thousands) ..... $317,311 $303,094 $361,797 $359,343 $341,632
Ratio of expenses to average net assets .... .57% .59% .55% .57% .61%
Ratio of net investment income to
average net assets ....................... 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%.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12
<PAGE>
The Value Line Cash Fund, Inc.
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors
of The Value Line Cash Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Value Line Cash Fund, Inc. (the
"Fund") at December 31, 1998, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1998 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
February 12, 1999
- --------------------------------------------------------------------------------
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 the 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
issuers 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.
- --------------------------------------------------------------------------------
(This page intentionally left blank.)
- --------------------------------------------------------------------------------
14
<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 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.
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 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 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.
<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
Charles Heebner
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.
This audited 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).
504798
