================================================================================
------------------
SEMI-ANNUAL REPORT
------------------
September 30, 1999
------------------
Value Line
U.S.
Multinational
Company
Fund, Inc.
[LOGO]
----------
VALUE LINE
No-Load
Mutual
Fund
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
To Our Value Line
- --------------------------------------------------------------------------------
To Our Shareholders:
The first half of our fiscal year has seen a successful run for the U.S.
Multinational Fund. While the overall U.S. equity market has been fairly static
over the six-month period from April 1st to September 30th, your Fund has made
some real progress. The unmanaged Standard & Poor's 500 Index was up just 0.36%
over that period (including reinvested dividends), while the U.S. Multinational
Fund posted a total return of 3.70%.
These results are especially gratifying in terms of the difficult environment
facing multinational over the past two years, with economic crises in Japan, the
Pacific Rim, and Latin America; with the devaluation of the Russian ruble; with
the collapse of Long Term Capital Management; and with the uncertainties
connected with the Year 2000 computer bug. These developments seriously damaged
the stocks of companies that operate outside of the U.S. both in 1997 and in
1998. And while the recovery has been slow, it has most surely taken place.
Now that the problems of prior years are behind us, it may be a good time to
reconsider the theses for investing in multinational company stocks in the first
place. The most important reason is economic diversification. It is true that
the world exhibits much more business and economic coordination than it did a
quarter-century ago, but it also remains true that each jurisdiction faces and
responds to different economic forces. Thus, while the U.S. remains among the
most vital economies on the planet, it seems prudent to place a portion of one's
assets with economies that are growing more rapidly, or that revolve around
cycles different from those of the U.S.
For some investors, that means direct investment in companies domiciled in
countries around the world. However, compared with managing a portfolio of
U.S.-based stocks, direct foreign investment involves a number of risks
(including currency relationships, political and social unrest, and lax
securities market regulation) and costs (including custodial fees, the price of
research information, and fluid accounting standards).
Under Value Line's program for investing in U.S. multinationals, the investor
can rely on the stringent market regulation and government stability of the U.S.
investment marketplace, while simultaneously gaining exposure through U.S.
multinational companies to a wide variety of vibrant foreign economies. Over the
long term, this should should significantly boost returns within an investor's
overall asset mix.
We appreciate your continued confidence in Value Line, and we wish you the best
for a profitable new year.
Sincerely,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
Chairman and President
November 10, 1999
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2
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
U.S. Multinational Fund Shareholders
- --------------------------------------------------------------------------------
Economic Observations
The American economy continues to perform well as we proceed through the final
weeks of the year. 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 performance with respect to consumer spending. Overall, we
estimate that GDP growth, which rose at a vigorous 4.8% rate in the third
quarter, will average a solid 4% during the final three months of the year,
unless serious Year 2000 dislocations develop. We think growth will then
moderate into the 2.0%-2.5% range during the first half of next year. In all, we
believe that the 12 months upcoming will mark the tenth year in a row of
sustained economic growth.
Inflationary pressures, meanwhile, continue to be held largely at bay, in spite
of a tightening labor market, with strong increases in productivity 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 maintain a neutral to at most modestly
restrictive monetary stance in the months ahead.
Performance Data:*
Average
Annual
Total
Return
-----
1 year ended September 30, 1999........ 42.02%
3 years ended September 30, 1999....... 20.67%
From November 17, 1995+ to
September 30, 1999................... 22.48%
+ Commencement of operations.
* The performance data quoted represent past performance and are no guarantee
of future performance. The average annual total returns include dividends
reinvested and capital gains distributions accepted in shares. The
investment return and principal value of an investment will fluctuate so
that an investment, when redeemed, may be worth more or less than its
original cost.
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3
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
Schedule of Investments (unaudited)
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Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (90.5%)
ADVERTISING (2.0%)
9,200 Omnicom Group, Inc ..................... $ 728,525
AIR TRANSPORT (1.8%)
8,500 Delta Air Lines, Inc ................... 412,250
6,000 FDX Corp.* ............................. 232,500
--------------
644,750
BANK (1.7%)
4,300 Chase Manhattan Corp ................... 324,113
4,300 State Street Corporation ............... 277,887
--------------
602,000
COMPUTER &
PERIPHERALS (15.7%)
24,000 Cisco Systems, Inc.* ................... 1,645,500
30,000 Dell Computer Corp.* ................... 1,254,375
24,000 EMC Corp.* ............................. 1,714,500
8,000 International Business
Machines Corp ........................ 971,000
--------------
5,585,375
COMPUTER SOFTWARE &
SERVICES (5.8%)
15,750 Computer Associates
International, Inc ................... 964,688
12,000 Microsoft Corp.* ....................... 1,086,750
--------------
2,051,438
DIVERSIFIED
COMPANIES (3.7%)
7,800 AlliedSignal Inc ....................... 467,512
5,000 Tyco International, Ltd ................ 516,250
5,500 United Technologies Corp. .............. 326,219
--------------
1,309,981
DRUG (9.8%)
8,000 Amgen Inc.* ............................ 652,000
6,800 Biogen, Inc.* .......................... 535,925
5,000 Genzyme Corp.--
General Division* .................... 225,312
6,500 Lilly (Eli) & Co ....................... 416,000
6,000 Merck & Co., Inc ....................... 388,875
18,000 Pfizer, Inc ............................ 646,875
14,000 Schering-Plough Corp ................... 610,750
--------------
3,475,737
ELECTRIC UTILITY--
CENTRAL (1.5%)
9,000 AES Corp.* ............................. 531,000
ELECTRICAL
EQUIPMENT (1.8%)
5,500 General Electric Co .................... 652,094
ENTERTAINMENT (1.3%)
6,000 Clear Channel
Communications, Inc.* ................ 479,250
FINANCIAL SERVICES
(3.4%)
6,000 American Express Co .................... 807,750
9,375 Citigroup Inc .......................... 412,500
--------------
1,220,250
GROCERY (0.8%)
7,500 Safeway Inc.* .......................... 285,469
HOUSEHOLD
PRODUCTS (1.2%)
4,400 Procter & Gamble Co .................... 412,500
INSURANCE--
DIVERSIFIED (1.7%)
6,750 American International
Group, Inc ........................... 586,828
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4
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
September 30, 1999
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Shares Value
- --------------------------------------------------------------------------------
INTERNET (2.9%)
10,000 America Online, Inc.* .................. $ 1,040,000
MACHINERY (1.2%)
7,800 Ingersoll-Rand Co ...................... 428,512
MEDICAL SUPPLIES (8.6%)
8,300 Biomet, Inc ............................ 218,394
7,500 Centocor, Inc.* ........................ 439,219
18,000 Guidant Corp.* ......................... 965,250
8,000 Johnson & Johnson ................ 735,000
20,000 Medtronic, Inc ......................... 710,000
--------------
3,067,863
PAPER & FOREST
PRODUCTS (0.5%)
12,000 Louisiana-Pacific Corp ................. 187,500
RECREATION (2.9%)
8,000 Carnival Corp .......................... 348,000
9,500 Electronic Arts Inc.* .................. 687,562
--------------
1,035,562
RETAIL--SPECIAL
LINES (3.4%)
20,000 Tiffany & Co ........................... 1,198,750
RETAIL STORE (1.9%)
4,500 Costco Wholesale Corp.* ................ 324,000
7,500 Wal-Mart Stores, Inc ................... 356,719
--------------
680,719
SEMICONDUCTOR (3.1%)
15,000 Intel Corp ............................. 1,114,688
SEMICONDUCTOR--
CAPITAL EQUIPMENT (1.6%)
5,000 Altera Corp.* .......................... 216,875
4,300 Applied Materials Inc.* ................ 334,862
--------------
551,737
SHOE (0.5%)
3,300 Nike, Inc. Class "B" ................... 187,688
TELECOMMUNICATIONS
EQUIPMENT (7.0%)
10,000 ADC Telecommunications,
Inc.* ................................ 419,375
20,000 Loral Space &
Communications Ltd.* ................. 343,750
7,400 Lucent Technologies Inc ................ 480,075
2,800 QUALCOMM Inc.* ......................... 529,725
12,800 Tellabs, Inc.* ......................... 728,800
--------------
2,501,725
TELECOMMUNICATION
SERVICES (4.0%)
9,000 AT & T Corp ............................ 391,500
14,400 MCI WorldCom, Inc.* .................... 1,035,000
--------------
1,426,500
TRUCKING/
TRANSPORTATION
LEASING (0.7%)
6,800 CNF Transportation Inc ................. 253,300
--------------
TOTAL COMMON STOCKS
& TOTAL INVESTMENT
SECURITIES (90.5%)
(Cost $16,972,047) .................. 32,239,741
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5
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
Schedule of Investments (unaudited) September 30, 1999
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Principals
Amount Value
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (9.3%)
(including accrued interest)
$1,700,000 Collateralized by $1,248,000
U.S. Treasury Bonds 12%,
due 8/15/13, with a value
of $1,740,960 (with
Warburg Dillon Read LLC
5%, dated 9/30/99,
due 10/1/99, delivery
value $1,700,236) ...................... $ 1,700,236
--------------
1,600,000 Collateralized by $1,120,000
U.S. Treasury Bonds 12.5%,
due 8/15/14, with a value
of $1,638,701 (with
Morgan Stanley & Co., Inc.
5.25%, dated 9/30/99,
due 10/1/99, delivery value
$1,600,233) ............................ 1,600,233
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TOTAL REPURCHASE
AGREEMENTS
(Cost $3,300,469) ...................... 3,300,469
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CASH AND RECEIVABLES
LESS LIABLITIES (0.2%) ........................... 72,945
--------------
NET ASSETS (100%) .................................. $ 35,613,155
==============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE,
PER OUTSTANDING SHARE
($35,613,155 / 1,739,066) ........................ $ 20.48
==============
*Non-income producing
See Notes to Financial Statements.
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6
<PAGE>
Statement of Assets and Liabilities
at September 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Assets:
Investment securities, at value
(Cost--$16,972,047) ................................... $ 32,239,741
Repurchase agreements
(Cost--$3,300,469) .................................... 3,300,469
Cash .................................................... 99,298
Deferred organization costs (note 2) .................... 11,750
Receivable for capital shares sold ...................... 10,659
Dividends receivable .................................... 9,766
------------
Total Assets ........................................ 35,671,683
------------
Liabilities:
Accrued expenses:
Advisory fee payable .................................. 22,478
Service and distribution plan
fees payable ........................................ 7,498
Other ................................................. 28,552
------------
Total Liabilities ................................... 58,528
------------
Net Assets .............................................. $ 35,613,155
============
Net Assets consist of:
Capital stock, at $.01 par value
(authorized 50,000,000,
outstanding 1,739,066 shares) ......................... $ 17,391
Additional paid-in capital .............................. 19,208,061
Accumulated net investment loss ......................... (133,231)
Undistributed net realized gain
on investments ........................................ 1,253,240
Net unrealized appreciation
of investments ........................................ 15,267,694
------------
Net Assets .............................................. $ 35,613,155
============
Net Asset Value, Offering and
Redemption Price, per
Outstanding Share
($35,613,155 / 1,739,066
shares outstanding) ................................... $ 20.48
============
Statement of Operations
for the six months ended September 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Investment Income:
Dividend income .......................................... $ 68,473
Interest income .......................................... 63,343
-----------
Total Income ......................................... 131,816
-----------
Expenses:
Advisory fee ............................................. 131,153
Service and distribution plan fee ........................ 43,718
Auditing and legal fees .................................. 18,326
Accounting and bookkeeping fees .......................... 16,200
Registration and filing fees ............................. 15,600
Custodian fees ........................................... 13,984
Directors' fees and expenses ............................. 11,177
Amortization of deferred
organization costs (note 2) ............................ 5,214
Insurance, dues and other ................................ 4,291
Printing ................................................. 4,182
Transfer agent ........................................... 2,328
-----------
Total expenses before
custody credits .................................... 266,173
Less: custody credits ................................ (1,126)
-----------
Net Expenses ....................................... 265,047
-----------
Net Investment Loss ...................................... (133,231)
-----------
Net Realized and Unrealized
Gain on Investments:
Net Realized Gain .................................... 506,082
Change in Net Unrealized
Appreciation ....................................... 874,420
-----------
Net Realized Gain and Change in
Net Unrealized Appreciation
on Investments ......................................... 1,380,502
-----------
Net Increase in Net Assets
from Operations ........................................ $ 1,247,271
===========
See Notes to Financial Statements.
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7
<PAGE>
Statement of Changes in Net Assets
for the six months ended September 30, 1999 (unaudited) and for the year ended
March 31, 1999
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<TABLE>
<CAPTION>
Six Months Ended
September 30, 1999 Year Ended
(unaudited) March 31, 1999
----------------------------------
<S> <C> <C>
Operations:
Net investment loss ....................................... $ (133,231) $ (222,745)
Net realized gain on investments .......................... 506,082 747,158
Change in net unrealized appreciation ..................... 874,420 5,358,747
---------------------------------
Net increase in net assets from operations ................ 1,247,271 5,883,160
---------------------------------
Distributions to Shareholders:
Net investment income ..................................... -- --
Net realized gain from investment transactions ............ -- --
---------------------------------
Total distributions ....................................... -- --
---------------------------------
Capital Share Transactions:
Proceeds from sale of shares .............................. 667,618 1,820,458
Proceeds from reinvestment of distributions to shareholders -- --
Cost of shares repurchased ................................ (404,818) (3,275,754)
---------------------------------
Net increase (decrease) from capital share transactions ... 262,800 (1,455,296)
---------------------------------
Total Increase in Net Assets ................................ 1,510,071 4,427,864
Net Assets:
Beginning of period ....................................... 34,103,084 29,675,220
---------------------------------
End of period ............................................. $ 35,613,155 $ 34,103,084
=================================
Accumulated Net Investment Loss, at end of period ........... $ (133,231) $ --
=================================
</TABLE>
See Notes to Financial Statements
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8
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
Notes to Financial Statements September 30, 1999 (unaudited)
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1. Significant Accounting Policies
Value Line U.S. Multinational Company Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company whose primary investment objective is maximum
total return. The Fund invests primarily in common stock or securities
convertible into common stock of U.S. companies that have significant sales from
international operations. The following significant accounting policies are 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 listed on a securities exchange and
over-the-counter securities traded on the NASDAQ national market are valued at
the closing sales price on the date as of which the net asset value is being
determined. In the absence of closing sales prices for such securities and for
securities traded in the over-the-counter market, the security is valued at the
midpoint between the latest available and representative asked and bid prices.
Securities for which market quotations are not readily available or which are
not readily marketable and all other assets of the Fund are valued at fair value
as the Board of Directors may determine in good faith. Short-term instruments
with maturities of 60 days or less at the date of purchase are valued at
amortized cost, which approximates market value.
(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 of the repurchase
transaction, including accrued interest. 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) 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 all of its taxable income to its shareholders.
Therefore, no federal income tax or excise tax provision is required.
(D) Security Transactions and Distributions. Security transactions are accounted
for on the date the securities are purchased or sold. Interest income is accrued
as earned. Realized gains and losses on sales of securities are calculated for
financial accounting and federal income tax purposes on the identified cost
basis. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
2. Organization Costs
Costs of $52,030 incurred in connection with the Fund's organization and initial
registration have been deferred and are being amortized on a straight-line basis
over 60 months, beginning at the commencement of operations of the Fund. In the
event any of the initial shares of the Fund are redeemed by the holder thereof
during the five-year amortization period, the redemption proceeds will be
reduced by a pro rata portion of any unamortized deferred organizational
expenses in the same proportion as the number of initial shares being redeemed
bears to the number of initial shares outstanding at the time of redemption.
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9
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
Notes to Financial Statements September 30, 1999 (unaudited)
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3. Capital Share Transactions
Transactions in capital stock were as follows:
Six Months
Ended
September 30, Year Ended
1999 March 31,
(unaudited) 1999
---------------------------
Shares sold ................................. 33,031 106,930
Shares issued in reinvestment
of dividends and
distributions ............................. -- --
---------------------------
33,031 106,930
Shares repurchased .......................... 20,411 204,594
---------------------------
Net increase (decrease) ..................... 12,620 (97,664)
===========================
4. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, were as
follows:
Six Months Ended
September 30, 1999
(unaudited)
--------------
PURCHASES:
Investment Securities ................................ $6,704,093
==========
SALES:
Investment Securities ................................ $6,329,824
==========
At September 30, 1999, the aggregate cost of investment securities and
repurchase agreements for federal income tax purposes was $20,272,516. The
aggregate appreciation and depreciation of investments based on a comparison of
investment values and their costs for federal income tax purposes was
$15,964,341 and $696,647 respectively, resulting in a net appreciation of
$15,267,694.
5. Advisory Fees, Service and Distribution Plan Fees and Transactions With
Affiliates:
An advisory fee of $131,153 was paid or payable to Value Line, Inc., the Fund's
investment adviser (the "Adviser"), for the six months ended September 30, 1999.
The fee was computed at the rate of .75 of 1% of the daily net assets during the
period and paid monthly. The Adviser provides research, investment programs and
supervision of the investment portfolio and pays costs of certain administrative
services and office space. 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.
The Fund has a Service and Distribution Plan (the "Plan"), adopted pursuant to
Rule 12b-1 under the Investment Company Act of 1940, as amended, for the payment
of certain expenses incurred by Value Line Securities, Inc. (the "Distributor"),
a wholly-owned subsidiary of the Adviser, in advertising, marketing and
distributing the Fund's shares and for servicing the Fund's shareholders at an
annual rate of 0.25% of the Fund's average daily net assets. For the six months
ended September 30, 1999, fees amounting to $43,718 were paid or payable to the
Distributor under this Plan.
Certain officers and directors of the Adviser and the Distributor, are also
officers and a director of the Fund. During the six months ended September 30,
1999, the Fund paid brokerage commissions totalling $5,226 to the Distributor, a
registered broker/dealer, which clears its transactions through unaffiliated
brokers.
At September 30, 1999, the Adviser, and/or affiliated companies, and the Value
Line, Inc. Profit Sharing and Savings Plan, owned 1,434,189 shares of the Fund's
capital stock, representing 82.5% of the outstanding shares. In addition,
certain officers and directors of the Fund owned 119,629 shares of capital
stock, representing 6.9% of the outstanding shares.
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10
<PAGE>
Value Line U.S. Multinational Company Fund, Inc.
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
Six Months November 17, 1995
Ended Years Ended March 31, (Commencement of
Sept. 30, 1999 ------------------------------ Operations) to
(unaudited) 1999 1998 1997 March 31, 1996
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .... $ 19.75 $ 16.27 $ 12.34 $ 10.55 $ 10.00
-------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment (loss) income ........ (.08) (.13) (.08) .12(1) .07(1)
Net gains on securities
(both realized and unrealized) .... .81 3.61 4.80 1.82 .52
-------------------------------------------------------------------------
Total from investment operations .... .73 3.48 4.72 1.94 .59
-------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income .............................. -- -- -- (.14) (.04)
Distributions from capital gains ...... -- -- (.79) (.01) --
-------------------------------------------------------------------------
Total distributions ................... -- -- (.79) (.15) (.04)
-------------------------------------------------------------------------
Net asset value, end of period .......... $ 20.48 $ 19.75 $ 16.27 $ 12.34 $ 10.55
=========================================================================
Total return ............................ 3.70%+ 21.39% 39.17% 18.36% 5.93%+
=========================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) ........................ $35,613 $34,103 $29,675 $18,081 $12,448
Ratio of operating expenses to
average net assets .................... 1.53%*(4) 1.58%(4) 1.69%(4) 1.97%(2)(3) 2.45%*(2)(3)
Ratio of net investment (loss) income
to average net assets ................. (0.77)%* (0.76)% (0.60)% (0.64)%(2)(3) (0.32)%*(2)(3)
Portfolio turnover rate ................. 20%*+ 36% 49% 56% 17%+
</TABLE>
(1) Net of custody fee credits, expense reimbursement and fees waived by the
Adviser. Had these expenses been fully paid by the Fund for the periods
ended March 31, 1997 and 1996, net investment loss per share would have
been $(.07) and $(.001), respectively.
(2) Due to the reimbursement of expenses and waiver of fees by the Adviser,
data are not indicative of future periods.
(3) Before custody fee credits, expense reimbursement and fees waived by the
Adviser. After expense reimbursement and fees waived for the periods ended
March 31, 1997 and 1996, ratio of expenses to average net assets was 0.40%
and 0%*, respectively; and ratio of net investment income to average net
assets was 0.93% and 2.13%*, respectively.
(4) Before offset of custody credits.
* Annualized
+ Not annualized.
See Notes to Financial Statements.
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11
<PAGE>
Value Line U.S. Multinational Company 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 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.
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12
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Value Line U.S. Multinational Company Fund, Inc.
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Value Line U.S. Multinational Company Fund, Inc.
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Value Line U.S. Multinational Company Fund, Inc.
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Value Line U.S. Multinational Company Fund, Inc.
The Value 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 achieve 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.
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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
Francis C. Oakley
Marion N. Ruth
Frances T. Newton
OFFICERS Jean Bernhard Buttner
Chairman and President
Alan N. Hoffman
Vice President
David T. Henigson
Vice President and
Secretary/Treasurer
Jack M. Houston
Assistant Secretary/Treasurer
Stephen La Rosa
Assistant Secretary/Treasurer
International investments entail special risk considerations including currency,
liquidity, economic and political risks.
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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