-------------------
ANNUAL REPORT
-------------------
December 31, 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:
For the year ended December 31, 1999, the total return for The Value Line Cash
Fund was 4.82%. This was significantly above the average taxable money market
fund return of 4.49% for the calendar year 1999, as compiled by Lipper
Analytical Services. We attribute this outperformance to prudent security
selection and a low expense fee structure. Total net assets of the Fund were
$364.9 million; the average days to maturity being 52.7 days, which represents a
reduction from where it began the year at 61 days.
We continue to pick securities of the highest quality. U.S. Government Agency
Obligations and other first-tier securities make up the two largest
classifications of the portfolio (63.9%). Over the course of the year, we've
increased our holdings of 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 Investor Service and A-1 by
Standard & Poor's Corporation.) No investments with rating 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.
The Federal Reserve raised interest rates three times last year. The Federal
Funds rate currently stands at 5.50%, compared to 4.75% where it started the
year. The Fed's decision to raise rates was primarily caused by two factors.
First, the domestic economy demonstrated particular strength last year. The
tight labor markets were a specific area of concern for the Federal Reserve
Board. By raising rates, the Fed is attempting to be preemptive against rising
inflation. Second, the Fed reversed the rate reductions it initiated in the fall
of 1998, when the global economic crisis threatened to hurt U.S. economic
growth. Those rate decreases helped to insulate the U.S. from the economic
problems abroad. Since most of these threats have passed, the Federal Funds rate
was returned to the level where it stood before the global economic problems
emerged. 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
January 20, 2000
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2
<PAGE>
The Value Line Cash Fund, Inc.
Cash Fund Shareholders
- --------------------------------------------------------------------------------
Economic Observations
The American economy continues to perform well as we proceed through the first
quarter of 2000. Evidence of this healthy level of business activity can be
found in the strong pace of manufacturing, the acceleration in job growth, and
the generally solid performances by the auto, housing, and retail sectors.
Overall, we estimate that GDP growth will average 3.0%-3.5% for the year as a
whole, making 2000 the tenth year in a row of sustained economic growth in this
country.
Inflationary pressures, meanwhile, continue to be held largely at bay, in spite
of a tightening labor market and a further recent rise in energy prices, with
strong increases in productivity and ongoing technological innovations being at
least partially responsible for this comparative pricing stability.
Nevertheless, a gradual uptrend in cost pressures does seem likely over the next
several quarters. The Federal Reserve, taking note of this somewhat higher
expense structure, is likely to chart a modestly more restrictive monetary
course in the months ahead, with additional, albeit rather modest, interest rate
increases being quite possible.
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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 (31.5%)
$ 10,000 Federal Home Loan Banks.................................... 5.15%(1) 3/8/00 $ 10,000
10,000 Federal Home Loan Banks.................................... 5.16(1) 3/22/00 10,000
10,000 Federal Home Loan Banks.................................... 5.92(1) 4/12/00 9,999
10,000 Federal Home Loan Banks.................................... 6.00(1) 4/24/00 10,000
10,000 Federal Home Loan Banks.................................... 5.50(1) 7/21/00 9,996
5,000 Federal Home Loan Banks.................................... 6.04(1) 9/1/00 5,000
10,000 Federal National Mortgage Association...................... 5.80(1) 8/17/00 9,996
20,000 Student Loan Marketing Association......................... 5.86(1) 1/12/00 20,000
10,000 Student Loan Marketing Association......................... 6.05(1) 3/08/00 10,000
15,000 Student Loan Marketing Association......................... 5.93(1) 6/15/00 15,000
5,000 Student Loan Marketing Association......................... 6.16(1) 8/10/00 4,999
- ---------- ---------
115,000 TOTAL U. S. GOVERNMENT AGENCY OBLIGATIONS ................. 114,990
- ---------- ---------
COMMERCIAL PAPER (32.4%)
BEVERAGE--SOFT DRINK (1.9%)
7,000 Coca-Cola Co............................................... 5.78 1/24/00 6,974
- ---------- ---------
DRUG (1.9%)
7,000 American Home Products Corp................................ 5.65 1/26/00 6,972
- ---------- ---------
ELECTRIC UTILITY--CENTRAL (3.8%)
7,000 IPALCO Enterprises Inc..................................... 6.02 1/18/00 6,980
7,000 Union Electric Co.......................................... 6.08 2/25/00 6,935
- ---------- ---------
14,000 13,915
- ---------- ---------
ELECTRIC UTILITY--EAST (1.9%)
7,000 Alliant Energy Corp........................................ 5.86 2/8/00 6,957
- ---------- ---------
ELECTRICAL EQUIPMENT (1.9%)
7,000 General Electric Capital Corp.............................. 5.76 2/1/00 6,965
- ---------- ---------
ENTERTAINMENT (1.9%)
7,000 Disney(Walt) Co............................................ 5.82 1/31/00 6,966
- ---------- ---------
FOOD PROCESSING (1.9%)
7,000 Campbell Soup Co........................................... 5.80 2/4/00 6,962
- ---------- ---------
</TABLE>
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4
<PAGE>
The Value Line Cash Fund, Inc.
December 31, 1999
================================================================================
<TABLE>
<CAPTION>
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INSURANCE--DIVERSIFIED (1.9%)
$ 7,000 American General Financial Corp............................ 5.90% 2/10/00 $ 6,954
- ---------- ---------
INSURANCE--LIFE (1.9%)
7,000 Jefferson-Pilot Corp....................................... 5.85 2/25/00 6,937
- ---------- ---------
MACHINERY (1.9%)
7,000 Deere (John) Capital Corp.................................. 5.85 1/20/00 6,978
- ---------- ---------
METAL FABRICATING (1.9%)
7,000 Illinois Tool Works Inc.................................... 5.65 2/15/00 6,951
- ---------- ---------
TELECOMMUNICATION EQUIPMENT (1.9%)
7,000 Lucent Technology Inc...................................... 5.82 3/17/00 6,914
- ---------- ---------
TELECOMMUNICATIONS SERVICES (5.8%)
7,000 AT & T Corp. .............................................. 5.81 1/27/00 6,971
7,000 Bell Atlantic Network Funding.............................. 5.87 1/27/00 6,970
7,000 BellSouth Telecommunications Corp.......................... 5.84 2/8/00 6,957
- ---------- ---------
21,000 20,898
- ---------- ---------
TOILETRIES/COSMETICS (1.9%)
7,000 Gillette Co................................................ 6.40 1/11/00 6,988
- ---------- ---------
119,000 TOTAL COMMERCIAL PAPER..................................... 118,331
- ---------- ---------
CORPORATE BONDS & NOTES (19.3%)
AUTO & TRUCK (1.4%)
5,000 Paccar Financial Corp...................................... 5.86 10/16/00 4,996
- ---------- ---------
BANK (8.0%)
7,000 Chase Manhattan Corp....................................... 6.18(3) 1/12/00 7,000
5,000 Key Bank National Association.............................. 6.39(3) 5/3/00 5,005
5,000 Morgan (J.P.) & Co.,Inc ................................... 5.88 5/1/00 5,004
3,000 NationsBank--Dallas. ....................................... 6.75 8/15/00 3,015
4,000 NationsBank Corp........................................... 6.13(3) 2/9/00 4,001
5,000 Norwest Financial Inc...................................... 5.13 4/15/00 4,999
- ---------- ---------
29,000 29,024
- ---------- ---------
</TABLE>
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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--WEST (1.6%)
$ 6,000 Idaho Power Co............................................. 8.65% 1/1/00 $ 6,000
- ---------- ---------
FINANCIAL SERVICES (5.0%)
5,245 American Express Credit Corp............................... 6.50 8/1/00 5,260
5,000 Associates Corp. North America............................. 7.40 3/31/00 5,022
2,000 Associates Corp. North America............................. 9.13 4/1/00 2,014
6,000 Salomon Inc................................................ 6.50 3/1/00 6,006
- ---------- ---------
18,245 18,302
- ---------- ---------
OILFIELD SERVICES/EQUIPMENT (1.8%)
6,500 Dresser Industries Inc..................................... 6.25 6/1/00 6,509
- ---------- ---------
SECURITIES BROKERAGE (1.5%)
5,350 Merrill Lynch & Co., Inc................................... 5.80 4/10/00 5,354
- ---------- ---------
70,095 TOTAL CORPORATE BONDS & NOTES ............................. 70,185
- --------- ---------
TAXABLE MUNICIPAL SECURITIES (5.4%)
6,300 Carolina Medi-Plan Inc., variable rate Demand Bonds,
- ----------
Series 1997, Guaranteed, Letter of credit by Wachovia Bank
of North Carolina, N.A. (Weekly Put) ................... 6.49(1) 1/5/00* 6,300
---------
7,000 Mississippi Business Financial Corp.,
- ----------
Industrial Development Revenue Bonds, Series 1994,
(Bryan Foods, Inc. Project) Gtd.--
Sara Lee Corp. (Weekly Put)............................. 6.60(1) 1/5/00* 7,000
---------
6,475 State of Texas, Veterans Housing Assistance,
- ----------
Refunding Bonds, Series 1994 A-2,
G. O.-- Pledge SPA Morgan Guaranty Trust, guarantor.
(Weekly Put) ........................................... 6.48(1) 1/5/00* 6,475
- ---------- ---------
19,775 TOTAL TAXABLE MUNICIPAL SECURITIES ........................ 19,775
- ---------- ---------
</TABLE>
- --------------------------------------------------------------------------------
6
<PAGE>
The Value Line Cash Fund, Inc.
December 31, 1999
================================================================================
<TABLE>
<CAPTION>
Principal Value
Amount Maturity (in
(in thousands) Yield+ Date thousands)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 323,870 TOTAL INVESTMENT SECURITIES (88.6%)
- ---------
(Amortized Cost $323,281) .............................. $ 323,281
---------
REPURCHASE AGREEMENTS (11.3%)
(including accrued interest)
13,400 Collateralized by U.S. Treasury Notes,
$13,433,000 6.375%, due 3/31/01 value $13,673,444
(with Banc One Capital Markets, Inc., 2.65%,
dated 12/31/99, due 1/3/00 delivery value of $13,402,959) 13,401
14,000 Collateralized by U.S. Treasury Bonds,
$13,635,000 7.625, due 2/15/07 value $14,297,575
(with Morgan Stanley & Co., Inc., 2.47%,
dated 12/31/99, due 1/3/00 delivery value of $14,002,882) 14,001
14,000 Collateralized by U.S. Treasury Bonds,
$12,515,000 10.75%, due 5/15/03 value $14,284,588
(with State Street Bank and Trust Company, 3.75%,
dated 12/31/99, due 1/3/00 delivery value of $14,004,375) 14,001
- ---------- ---------
41,400 TOTAL REPURCHASE AGREEMENTS (11.3%)
- ----------
(Amortized Cost $41,403) ............................... 41,403
---------
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES (0.1%) ........................... 215
---------
NET ASSETS (100.0%) ...................................... $ 364,899
=========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER OUTSTANDING SHARE ........................... $ 1.00
=========
</TABLE>
+ Rate frequency for floating rate notes at December 31, 1999: (1) Weekly (2)
Monthly (3) Quarterly. The rate shown on floating rate securities
represents the yield at the end of the reporting period.
* The maturity date shown is the date of the next interest rate change.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
7
<PAGE>
The Value Line Cash Fund, Inc.
Statement of Assets and Liabilities
at December 31, 1999
- --------------------------------------------------------------------------------
Dollars
(in thousands
except per
share amount)
-------------
Assets:
Investment securities at value:
(Amortized cost-- $323,281)....... $ 323,281
Repurchase agreement
(cost-- $41,403).................. 41,403
Cash................................ 80
Receivable for capital shares sold.. 761
Interest receivable................. 2,800
---------
Total Assets ................... 368,325
---------
Liabilities:
Payable for capital shares repurchased 3,128
Accrued expenses:
Advisory fee...................... 121
Other............................. 177
---------
Total Liabilities .............. 3,426
---------
Net Assets ......................... $ 364,899
=========
Net Assets:
Capital Stock, at $.10 par value
(authorized 2 billion shares,
outstanding 364,950,758 shares)... $ 36,495
Additional paid-in capital.......... 328,456
Accumulated net realized loss
on investments.................... (52)
---------
Net Assets ..................... $ 364,899
=========
Net Asset Value, Offering and
Redemption Price per
Outstanding Share ................ $ 1.00
=========
Statement of Operations for the
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
Dollars
(in thousands)
-------------
Investment Income:
Interest income...................... $18,237
---------
Expenses:
Advisory fee......................... 1,396
Transfer agent....................... 267
Printing............................. 60
Postage.............................. 48
Registration and filing fees......... 46
Auditing and legal fees.............. 42
Custodian fees....................... 41
Directors' fees and expenses......... 15
Telephone, Insurance dues and other . 11
---------
Total Expenses before
Waiver of Custody Fees
and Reimbursement ............. 1,926
---------
Less Custody Fees Waived ........ (41)
Less Reimbursement .............. (63)
---------
Net Expenses ........................ 1,822
---------
Net Investment Income ............... 16,415
---------
Net Realized Gain on Investments .... 2
---------
Net Increase in Net Assets
from Operations ................... $16,417
=========
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, 1999 and 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
--------------------------
(Dollars in thousands)
<S> <C> <C>
Operations:
Net investment income................................................ $ 16,415 $ 15,818
Net realized gain on investments..................................... 2 16
--------------------------
Net increase in net assets from operations........................... 16,417 15,834
--------------------------
Distributions to Shareholders:
Net investment income................................................ (16,415) (15,818)
--------------------------
Capital Share Transactions:
Net proceeds from sale of shares..................................... 1,850,643 805,869
Net proceeds from reinvestment of dividends.......................... 16,415 15,818
--------------------------
1,867,058 821,687
Cost of shares repurchased........................................... (1,819,472) (807,486)
--------------------------
Net increase from capital share transactions......................... 47,586 14,201
--------------------------
Total Increase in Net Assets .......................................... 47,588 14,217
Net Assets:
Beginning of year ................................................... 317,311 303,094
--------------------------
End of year.......................................................... $ 364,899 $ 317,311
==========================
</TABLE>
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, 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, 1999 the aggregate cost of investments in securities and
repurchase agreements for federal income tax purposes is approximately
$364,684,000. At December 31, 1999, there is no unrealized appreciation or
depreciation of investments.
For federal income tax purposes, the Fund utilized approximately $3,000 of its
capital loss carryover to offset a realized gain during the year ended December
31, 1999. The Fund had a net capital loss carryover at December 31, 1999 of
approximately $52,000 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 $1,395,661 was paid or payable to Value Line, Inc., the
Fund's investment adviser (the "Adviser"), for the year ended December 31, 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.
For the year ended December 31, 1999 the Fund's Custodian waived and reimbursed
expenses in the total amount of $103,626.
Certain officers and directors of the Adviser and its wholly owned subsidiary,
Value Line Securities, Inc. (the Fund's distributor and a registered
broker/dealer), are also officers and a director of the Fund.
The Adviser and/or affiliated companies and the Value Line, Inc. Profit Sharing
and Savings Plan at December 31, 1999 owned 66,817,367 shares of the Fund's
capital stock, representing 18.31% of the outstanding shares. In addition,
certain officers and directors of the Fund owned 12,195,187 shares of the Fund,
representing 3.34% 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 year:
<TABLE>
<CAPTION>
Years Ended December 31,
-----------------------------------------------------------------------------------
1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------
<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 .................. .048 .051 .051 .050 .054
Dividends from net
investment income .................... (.048) (.051) (.051) (.050) (.054)
- ----------------------------------------------------------------------------------------------------------------------------------
Change in net asset value .............. -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
==================================================================================================================================
Total return ............................... 4.82% 5.06% 5.10% 5.00% 5.40%
==================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) ... $ 364,899 $ 317,311 $ 303,094 $ 361,797 $ 359,343
Ratio of expenses to average net assets .... .55%(1) .57% 59% .55% .57%
Ratio of net investment income
to average net assets .................... 4.70% 4.93% 4.97% 4.86% 5.27%
</TABLE>
(1) Ratio reflects expenses grossed up for custody fees waived and
reimbursement. The ratio of expenses to average net assets net of custody
fees waived and reimbursement would have been .52%.
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, 1999, 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 accounting principles generally accepted in the
United States. 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 auditing standards generally accepted in the
United States 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, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 11, 2000
- --------------------------------------------------------------------------------
13
<PAGE>
The Value Line Cash Fund, Inc.
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14
<PAGE>
The Value Line Cash Fund, Inc.
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(This page intentionally left blank.)
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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 219729
Kansas City, MO 64121-9729
INDEPENDENT PricewaterhouseCoopers 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
David H. Porter
Paul Craig Roberts
Nancy-Beth Sheerr
OFFICERS Jean Bernhard Buttner
Chairman and President
Nathan N. J. Grant
Vice President
Christopher Coyle
Vice President
David T. Henigson
Vice President and
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). 511491
