UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file Number _811-03835_
Value Line Centurion Fund, Inc.
(Exact name of registrant as specified in charter)
7 Times Square, New York, N.Y. 10036
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:212-907-1900
Date of fiscal year end:December 31, 2019
Date of reporting period:December 31, 2019
Item I Reports to Stockholders
A copy of the Annual Report to Stockholders for the period ended 12/31/19 is included with this Form.
To Contractowners
Portfolio Manager
Long-term growth
of capital
November 15, 1983
December 31, 2019:
$149,675,878
December 31, 2019:
(Percentage of Total
Net Assets)
To Contractowners
To Contractowners
President of the Value Line Funds
To Contractowners
To Contractowners
To Contractowners
| | Issue | | | Shares | | | Value | | | Percentage of Net Assets | | | |||||||||
| | Rollins, Inc. | | | | | 187,000 | | | | | $ | 6,200,920 | | | | | | 4.1% | | | |
| | AutoZone, Inc. | | | | | 5,000 | | | | | | 5,956,550 | | | | | | 4.0% | | | |
| | Fiserv, Inc. | | | | | 51,200 | | | | | | 5,920,256 | | | | | | 4.0% | | | |
| | Mettler-Toledo International, Inc. | | | | | 7,400 | | | | | | 5,870,272 | | | | | | 3.9% | | | |
| | Roper Technologies, Inc. | | | | | 15,400 | | | | | | 5,455,142 | | | | | | 3.6% | | | |
| | Teledyne Technologies, Inc. | | | | | 15,500 | | | | | | 5,371,370 | | | | | | 3.6% | | | |
| | IDEXX Laboratories, Inc. | | | | | 20,000 | | | | | | 5,222,600 | | | | | | 3.5% | | | |
| | HEICO Corp. | | | | | 41,033 | | | | | | 4,683,917 | | | | | | 3.1% | | | |
| | Waste Connections, Inc. | | | | | 51,300 | | | | | | 4,657,527 | | | | | | 3.1% | | | |
| | AMETEK, Inc. | | | | | 45,000 | | | | | | 4,488,300 | | | | | | 3.0% | | | |
Percentage of investment securities (excluding short-term securities)
To Contractowners
| | | | | 1 Yr | | | 3 Yrs | | | 5 Yrs | | | 10 Yrs | | | Since Inception 11/15/1983 | | | |||||||||||||||
| | Value Line Centurion Fund, Inc. | | | | | 33.07% | | | | | | 16.88% | | | | | | 11.52% | | | | | | 14.17% | | | | | | 9.07% | | | |
| | S&P 500® Index | | | | | 31.49% | | | | | | 15.27% | | | | | | 11.70% | | | | | | 13.56% | | | | | | 11.20% | | | |
To Contractowners
| | | | | Beginning Account Value July 1, 2019 | | | Ending Account Value December 31, 2019 | | | Expenses Paid During Period* | | | Annualized Expense Ratio | | | ||||||||||||
| | Actual | | | | $ | 1,000.00 | | | | | $ | 1,044.20 | | | | | $ | 4.43 | | | | | | 0.86% | | | |
| | Hypothetical (5% return before expenses) | | | | $ | 1,000.00 | | | | | $ | 1,020.87 | | | | | $ | 4.38 | | | | | | 0.86% | | | |
Schedule of Investments |
| Shares | | | | | | Value | | ||||||
| Common Stocks — 96.9% | | ||||||||||||
| Consumer Discretionary — 9.4% | | ||||||||||||
| Retail — 9.4% | | ||||||||||||
| | | 5,000 | | | | AutoZone, Inc.* | | | | $ | 5,956,550 | | |
| | | 4,900 | | | | Domino’s Pizza, Inc. | | | | | 1,439,522 | | |
| | | 5,200 | | | | O’Reilly Automotive, Inc.* | | | | | 2,278,952 | | |
| | | 72,800 | | | | TJX Companies, Inc. (The) | | | | | 4,445,168 | | |
| | | | | | | | | | | | 14,120,192 | | |
| Consumer Staples — 7.9% | | ||||||||||||
| Food — 3.6% | | ||||||||||||
| | | 32,000 | | | | Hormel Foods Corp.(1) | | | | | 1,443,520 | | |
| | | 21,500 | | | | J&J Snack Foods Corp. | | | | | 3,961,805 | | |
| | | | | | | | | | | | 5,405,325 | | |
| Household Products — 2.9% | | ||||||||||||
| | | 61,600 | | | | Church & Dwight Co., Inc. | | | | | 4,332,944 | | |
| Retail — 1.4% | | ||||||||||||
| | | 13,100 | | | | Casey’s General Stores, Inc. | | | | | 2,082,769 | | |
| | | | | | | | | | | | 11,821,038 | | |
| Financials — 3.5% | | ||||||||||||
| Commercial Services — 0.6% | | ||||||||||||
| | | 2,400 | | | | MarketAxess Holdings, Inc. | | | | | 909,864 | | |
| Insurance — 2.9% | | ||||||||||||
| | | 3,000 | | | | Alleghany Corp.* | | | | | 2,398,710 | | |
| | | 10,200 | | | | Arch Capital Group, Ltd.* | | | | | 437,478 | | |
| | | 5,000 | | | | Chubb, Ltd. | | | | | 778,300 | | |
| | | 3,500 | | | | RenaissanceRe Holdings, Ltd. | | | | | 686,070 | | |
| | | | | | | | | | | | 4,300,558 | | |
| | | | | | | | | | | | 5,210,422 | | |
| Healthcare — 11.3% | | ||||||||||||
| Biotechnology — 1.0% | | ||||||||||||
| | | 14,000 | | | | Alexion Pharmaceuticals, Inc.* | | | | | 1,514,100 | | |
| Electronics — 3.9% | | ||||||||||||
| | | 7,400 | | | | Mettler-Toledo International, Inc.* | | | | | 5,870,272 | | |
| Healthcare Products — 5.8% | | ||||||||||||
| | | 2,600 | | | | Cooper Cos., Inc. (The) | | | | | 835,354 | | |
| | | 10,700 | | | | DENTSPLY SIRONA, Inc. | | | | | 605,513 | | |
| | | 30,600 | | | | Henry Schein, Inc.* | | | | | 2,041,632 | | |
| | | 20,000 | | | | IDEXX Laboratories, Inc.* | | | | | 5,222,600 | | |
| | | | | | | | | | | | 8,705,099 | | |
| Healthcare Services — 0.6% | | ||||||||||||
| | | 2,000 | | | | Chemed Corp. | | | | | 878,520 | | |
| | | | | | | | | | | | 16,967,991 | | |
| Shares | | | | | | Value | | ||||||
| Industrials — 38.3% | | ||||||||||||
| Aerospace & Defense — 10.0% | | ||||||||||||
| | | 41,033 | | | | HEICO Corp.(1) | | | | $ | 4,683,917 | | |
| | | 7,000 | | | | Northrop Grumman Corp. | | | | | 2,407,790 | | |
| | | 6,000 | | | | Spirit AeroSystems Holdings, Inc. Class A | | | | | 437,280 | | |
| | | 15,500 | | | | Teledyne Technologies, Inc.* | | | | | 5,371,370 | | |
| | | 3,600 | | | | TransDigm Group, Inc. | | | | | 2,016,000 | | |
| | | | | | | | | | | | 14,916,357 | | |
| Commercial Services — 8.0% | | ||||||||||||
| | | 3,000 | | | | Cintas Corp. | | | | | 807,240 | | |
| | | 20,500 | | | | Equifax, Inc. | | | | | 2,872,460 | | |
| | | 27,030 | | | | IHS Markit, Ltd.* | | | | | 2,036,710 | | |
| | | 187,000 | | | | Rollins, Inc.(1) | | | | | 6,200,920 | | |
| | | | | | | | | | | | 11,917,330 | | |
| Electrical Equipment — 3.0% | | ||||||||||||
| | | 45,000 | | | | AMETEK, Inc. | | | | | 4,488,300 | | |
| Environmental Control — 4.7% | | ||||||||||||
| | | 26,000 | | | | Republic Services, Inc. | | | | | 2,330,380 | | |
| | | 51,300 | | | | Waste Connections, Inc. | | | | | 4,657,527 | | |
| | | | | | | | | | | | 6,987,907 | | |
| Hand & Machine Tools — 0.3% | | ||||||||||||
| | | 5,100 | | | | Lincoln Electric Holdings, Inc. | | | | | 493,323 | | |
| Housewares — 2.0% | | ||||||||||||
| | | 38,000 | | | | Toro Co. (The) | | | | | 3,027,460 | | |
| Machinery Diversified — 5.9% | | ||||||||||||
| | | 19,200 | | | | IDEX Corp. | | | | | 3,302,400 | | |
| | | 15,400 | | | | Roper Technologies, Inc. | | | | | 5,455,142 | | |
| | | | | | | | | | | | 8,757,542 | | |
| Miscellaneous Manufacturers — 1.7% | | ||||||||||||
| | | 16,000 | | | | Carlisle Companies, Inc. | | | | | 2,589,440 | | |
| Transportation — 2.7% | | ||||||||||||
| | | 22,000 | | | | Canadian National Railway Co. | | | | | 1,989,900 | | |
| | | 18,000 | | | | J.B. Hunt Transport Services, Inc. | | | | | 2,102,040 | | |
| | | | | | | | | | | | 4,091,940 | | |
| | | | | | | | | | | | 57,269,599 | | |
| Information Technology — 16.5% | | ||||||||||||
| Commercial Services — 2.4% | | ||||||||||||
| | | 5,700 | | | | Automatic Data Processing, Inc. | | | | | 971,850 | | |
| | | 6,900 | | | | Gartner, Inc.* | | | | | 1,063,290 | | |
| | | 7,500 | | | | WEX, Inc.* | | | | | 1,570,950 | | |
| | | | | | | | | | | | 3,606,090 | | |
| Electronics — 1.3% | | ||||||||||||
| | | 17,600 | | | | Amphenol Corp. Class A | | | | | 1,904,848 | | |
Schedule of Investments (Continued) |
| Shares | | | | | | Value | | ||||||
| Common Stocks — 96.9% (Continued) | | ||||||||||||
| Software — 12.8% | | ||||||||||||
| | | 15,800 | | | | ANSYS, Inc.* | | | | $ | 4,067,078 | | |
| | | 5,500 | | | | Blackbaud, Inc. | | | | | 437,800 | | |
| | | 16,900 | | | | Broadridge Financial Solutions, Inc. | | | | | 2,087,826 | | |
| | | 25,000 | | | | Cadence Design Systems, Inc.* | | | | | 1,734,000 | | |
| | | 3,200 | | | | Fair Isaac Corp.* | | | | | 1,198,976 | | |
| | | 51,200 | | | | Fiserv, Inc.* | | | | | 5,920,256 | | |
| | | 49,600 | | | | Open Text Corp. | | | | | 2,185,872 | | |
| | | 4,900 | | | | Tyler Technologies, Inc.* | | | | | 1,470,098 | | |
| | | | | | | | | | | | 19,101,906 | | |
| | | | | | | | | | | | 24,612,844 | | |
| Materials — 8.8% | | ||||||||||||
| Chemicals — 4.4% | | ||||||||||||
| | | 17,000 | | | | Ecolab, Inc. | | | | | 3,280,830 | | |
| | | 32,600 | | | | FMC Corp. | | | | | 3,254,132 | | |
| | | | | | | | | | | | 6,534,962 | | |
| Housewares — 1.0% | | ||||||||||||
| | | 14,000 | | | | Scotts Miracle-Gro Co. (The)(1) | | | | | 1,486,520 | | |
| Miscellaneous Manufacturers — 1.6% | | ||||||||||||
| | | 21,000 | | | | AptarGroup, Inc. | | | | | 2,428,020 | | |
| Packaging & Containers — 1.8% | | ||||||||||||
| | | 42,400 | | | | Ball Corp. | | | | | 2,742,008 | | |
| | | | | | | | | | | | 13,191,510 | | |
| Shares | | | | | | Value | | ||||||
| Real Estate — 1.2% | | ||||||||||||
| REITS — 1.2% | | ||||||||||||
| | | 8,000 | | | | American Tower Corp. REIT | | | | $ | 1,838,560 | | |
| Total Common Stocks (Cost $56,233,503) | | | | | 145,032,156 | | | ||||||
| Short-Term Investments — 3.9% | | ||||||||||||
| Money Market Funds — 3.9% | | ||||||||||||
| | | 4,536,122 | | | | State Street Institutional Liquid Reserves Fund, Premier Class, 1.734%(2) | | | | | 4,536,576 | | |
| | | 1,252,664 | | | | State Street Navigator Securities Lending Government Money Market Portfolio(3) | | | | | 1,252,664 | | |
| Total Short-Term Investments (Cost $5,789,172) | | | | | 5,789,240 | | | ||||||
| Total Investments — 100.8% (Cost $62,022,675) | | | | $ | 150,821,396 | | | ||||||
| Excess Of Liabilities Over Cash And Other Assets — (0.8)% | | | | | (1,145,518) | | | ||||||
| Net Assets — 100.0% | | | | $ | 149,675,878 | | |
Investments in Securities: | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stocks* | | | | $ | 145,032,156 | | | | | $ | — | | | | | $ | — | | | | | $ | 145,032,156 | | |
Short-Term Investments | | | | | 5,789,240 | | | | | | — | | | | | | — | | | | | | 5,789,240 | | |
Total Investments in Securities | | | | $ | 150,821,396 | | | | | $ | — | | | | | $ | — | | | | | $ | 150,821,396 | | |
Statement of Assets and Liabilities |
Statement of Operations |
December 31, 2019
| ASSETS: | | | | | | | |
| Investment securities, at value (Cost – $62,022,675) (securities on loan, at value, $11,232,665) | | | | $ | 150,821,396 | | |
| Dividends receivable | | | | | 220,868 | | |
| Receivable for securities sold | | | | | 8,919 | | |
| Prepaid expenses | | | | | 1,926 | | |
| Receivable for securities lending income | | | | | 1,006 | | |
| Receivable for capital shares sold | | | | | 151 | | |
| Other receivables | | | | | 22,082 | | |
| Total Assets | | | | | 151,076,348 | | |
| LIABILITIES: | | | | | | | |
| Payable upon return of securities on loan (See Note 1I) | | | | | 1,252,664 | | |
| Payable for capital shares redeemed | | | | | 7,884 | | |
| Dividends payable to shareholders | | | | | 1,338 | | |
| Accrued expenses: | | | | | | | |
| Advisory fee | | | | | 57,402 | | |
| Service and distribution plan fees | | | | | 34,318 | | |
| Directors’ fees and expenses | | | | | 635 | | |
| Other | | | | | 46,229 | | |
| Total Liabilities | | | | | 1,400,470 | | |
| Net Assets | | | | $ | 149,675,878 | | |
| NET ASSETS CONSIST OF: | | | | | | | |
| Capital stock, at $1.00 par value (authorized 50,000,000, outstanding 4,526,122 shares) | | | | $ | 4,526,122 | | |
| Additional paid-in capital | | | | | 30,046,687 | | |
| Total Distributable Earnings (Loss) | | | | | 115,103,069 | | |
| Net Assets | | | | $ | 149,675,878 | | |
| Net Asset Value Per Outstanding Share ($149,675,878 ÷ 4,526,122 shares outstanding) | | | | $ | 33.07 | | |
December 31, 2019
| INVESTMENT INCOME: | | ||||||
| Dividends (net of foreign withholding tax of $16,574) | | | | $ | 1,383,885 | | |
| Securities lending income | | | | | 16,066 | | |
| Total Income | | | | | 1,399,951 | | |
| Expenses: | | | | | | | |
| Advisory fees | | | | | 659,994 | | |
| Service and distribution plan fees | | | | | 582,307 | | |
| Auditing and legal fees | | | | | 58,787 | | |
| Custody and accounting fees | | | | | 52,893 | | |
| Fund administration fees | | | | | 35,425 | | |
| Directors’ fees and expenses | | | | | 22,673 | | |
| Printing and postage fees | | | | | 13,469 | | |
| Compliance and tax service fees | | | | | 12,064 | | |
| Insurance fees | | | | | 8,218 | | |
| Registration and filing fees | | | | | 2,217 | | |
| Other | | | | | 19,288 | | |
| Total Expenses Before Fees Waived (See Note 5) | | | | | 1,467,335 | | |
| Less: Service and Distribution Plan Fees Waived | | | | | (198,604) | | |
| Net Expenses | | | | | 1,268,731 | | |
| Net Investment Income | | | | | 131,220 | | |
| Net Realized and Unrealized Gain on Investments and Foreign Exchange Transactions: | | | | | | | |
| Net Realized Gain From: | | | | | | | |
| Investments | | | | | 26,213,031 | | |
| Foreign currency transactions | | | | | 126 | | |
| | | | | | 26,213,157 | | |
| Change in Net Unrealized Appreciation/(Depreciation) of: | | | | | | | |
| Investments | | | | | 13,593,520 | | |
| Foreign currency translations | | | | | 159 | | |
| | | | | | 13,593,679 | | |
| Net Realized Gain and Change in Net Unrealized Appreciation/(Depreciation) on Investments and Foreign Exchange Transactions | | | | | 39,806,836 | | |
| Net Increase in Net Assets from Operations | | | | $ | 39,938,056 | | |
Statement of Changes in Net Assets |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2018 | | ||||||
Operations: | | | | | | | | | | | | | |
Net investment income | | | | $ | 131,220 | | | | | $ | 85,890 | | |
Net realized gain on investments and foreign currency | | | | | 26,213,157 | | | | | | 8,827,712 | | |
Change in net unrealized appreciation/(depreciation) on investments and foreign currency translations | | | | | 13,593,679 | | | | | | (7,919,889) | | |
Net increase in net assets from operations | | | | | 39,938,056 | | | | | | 993,713 | | |
Distributions to Shareholders from: | | | | | | | | | | | | | |
Distributable Earnings | | | | | (8,913,738) | | | | | | (317,206) | | |
Share Transactions: | | | | | | | | | | | | | |
Proceeds from sale of shares | | | | | 1,693,892 | | | | | | 2,377,827 | | |
Proceeds from reinvestment of dividends to shareholders | | | | | 8,913,738 | | | | | | 317,206 | | |
Cost of shares redeemed | | | | | (16,207,792) | | | | | | (19,923,614) | | |
Net decrease in net assets from capital share transactions | | | | | (5,600,162) | | | | | | (17,228,581) | | |
Total increase/(decrease) in net assets | | | | | 25,424,156 | | | | | | (16,552,074) | | |
NET ASSETS: | | | | | | | | | | | | | |
Beginning of year | | | | | 124,251,722 | | | | | | 140,803,796 | | |
End of year | | | | $ | 149,675,878 | | | | | $ | 124,251,722 | | |
Financial Highlights |
| | | Years Ended December 31, | | |||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | |||||||||||||||
Net asset value, beginning of year | | | | $ | 26.39 | | | | | $ | 26.39 | | | | | $ | 22.09 | | | | | $ | 20.71 | | | | | $ | 20.56 | | |
Income/(loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | 0.03 | | | | | | 0.02 | | | | | | 0.06 | | | | | | 0.05 | | | | | | 0.05 | | |
Net gains/(losses) on securities (both realized and unrealized) | | | | | 8.64 | | | | | | 0.04 | | | | | | 4.29 | | | | | | 1.37 | | | | | | 0.17 | | |
Total from investment operations | | | | | 8.67 | | | | | | 0.06 | | | | | | 4.35 | | | | | | 1.42 | | | | | | 0.22 | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | (0.01) | | | | | | (0.06) | | | | | | (0.05) | | | | | | (0.04) | | | | | | (0.07) | | |
Distributions from net realized gains | | | | | (1.98) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total distributions | | | | | (1.99) | | | | | | (0.06) | | | | | | (0.05) | | | | | | (0.04) | | | | | | (0.07) | | |
Net asset value, end of year | | | | $ | 33.07 | | | | | $ | 26.39 | | | | | $ | 26.39 | | | | | $ | 22.09 | | | | | $ | 20.71 | | |
Total return* | | | | | 33.07% | | | | | | 0.23% | | | | | | 19.71% | | | | | | 6.86% | | | | | | 1.08% | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (in thousands) | | | | $ | 149,676 | | | | | $ | 124,252 | | | | | $ | 140,804 | | | | | $ | 132,726 | | | | | $ | 134,249 | | |
Ratio of gross expenses to average net assets(1) | | | | | 1.01% | | | | | | 1.03% | | | | | | 1.01% | | | | | | 1.04% | | | | | | 1.04% | | |
Ratio of net expenses to average net assets(2) | | | | | 0.87% | | | | | | 0.89% | | | | | | 0.88% | | | | | | 0.90% | | | | | | 0.90% | | |
Ratio of net investment income to average net assets | | | | | 0.09% | | | | | | 0.06% | | | | | | 0.23% | | | | | | 0.21% | | | | | | 0.18% | | |
Portfolio turnover rate | | | | | 15% | | | | | | 3% | | | | | | 1% | | | | | | 4% | | | | | | 5% | | |
Notes to Financial Statements |
December 31, 2019
Notes to Financial Statements (Continued) |
December 31, 2019
Notes to Financial Statements (Continued) |
December 31, 2019
| Value of Securities Loaned | | | Value of Collateral* | | | Total Collateral (including Calculated Mark)** | |
| $11,232,665 | | | $11,445,835 | | | $11,492,446 | |
Notes to Financial Statements (Continued) |
December 31, 2019
| | | Remaining Contractual Maturity of the Agreements As of December 31, 2019 | | |||||||||||||||||||||||||||
| | | Overnight and Continuous | | | <30 days | | | Between 30 & 90 days | | | >90 days | | | Total | | |||||||||||||||
Securities Lending Transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | $ | 1,252,664 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,252,664 | | |
Total Borrowings | | | | $ | 1,252,664 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,252,664 | | |
Gross amount of recognized liabilities for securities lending transactions | | | | $ | 1,252,664 | | |
| | | Year Ended December 31, 2019 | | | Year Ended December 31, 2018 | | ||||||
Shares sold | | | | | 52,961 | | | | | | 86,084 | | |
Shares issued to shareholders in reinvestment of dividends | | | | | 276,566 | | | | | | 11,276 | | |
Shares redeemed | | | | | (511,198) | | | | | | (724,275) | | |
Net decrease | | | | | (181,671) | | | | | | (626,915) | | |
| | | Purchases of Investment Securities | | | Sales of Investment Securities | | ||||||
| | | | $ | 21,996,442 | | | | | $ | 39,094,645 | | |
| | | Purchases of Investment Securities | | | Sales of Investment Securities | | | Realized Gain (Loss) | | |||||||||
| | | | $ | 18,923,164 | | | | | $ | 22,844,788 | | | | | $ | 18,341,540 | | |
Notes to Financial Statements (Continued) |
December 31, 2019
| Cost of investments for tax purposes | | | Gross tax unrealized appreciation | | | Gross tax unrealized depreciation | | | Net tax unrealized appreciation (depreciation) on investments | | | Undistributed ordinary income | | | Undistributed long-term gain | | |||||||||||||||
| $62,048,017 | | | | $ | 89,115,485 | | | | | $ | (342,106) | | | | | $ | 88,773,379 | | | | | $ | 125,626 | | | | | $ | 26,203,905 | | |
| | | Undistributed Net Investment Income/(Loss) | | | Accumulated Net Realized Gains/(Losses) | | | Additional Paid-In Capital | | |||||||||
| | | | $ | 126 | | | | | $ | (126) | | | | | $ | — | | |
| | | 2019 | | | 2018 | | ||||||
Ordinary income | | | | $ | 85,994 | | | | | $ | 317,206 | | |
Long-term capital gain | | | | | 8,827,744 | | | | | | — | | |
| | | | $ | 8,913,738 | | | | | $ | 317,206 | | |
New York, New York
February 14, 2020
Federal Tax Status of Distribution (Unaudited) |
Management Information |
Name, Address, and Age | | | Position | | | Length of Time Served | | | Principal Occupations During the Past 5 Years | | | Number of Portfolios in Fund Complex Overseen by Director | | | Other Directorships Held by Director During the Past 5 Years | | | ||
Interested Director* | | | | | | | | | | | | | | | | | | ||
Mitchell E. Appel Age: 49 | | | Director | | | Since 2010 | | | President of each of the Value Line Funds since June 2008; Chief Financial Officer of the Distributor since April 2008 and President since February 2009; President of the Adviser since February 2009, Trustee since December 2010 and Treasurer since January 2011. | | | 11 | | | Forethought Variable Insurance Trust | | | ||
Non-Interested Directors | | | | | | | | | | | | | | | | | |||
Joyce E. Heinzerling Age: 63 | | | Director | | | Since 2008 | | | Managing Member, Meridian Fund Advisers LLC (consultants). | | | 11 | | | None | | | ||
James E. Hillman Age: 63 | | | Director (Chair of the Board of the Value Line Funds since Apri1 2016) | | | Since 2015 | | | Chief Financial Officer, Notre Dame School Of Manhattan since 2011; Director and Principal Financial Officer, Merrill Lynch Global Wealth Management, 2006-2011. | | | 11 | | | Miller/Howard Funds Trust; Miller/Howard High Income Equity Fund | | | ||
Paul Craig Roberts Age: 81 | | | Director | | | Since 1983 | | | Chairman, Institute for Political Economy. | | | 11 | | | None | | | ||
Nancy-Beth Sheerr Age: 71 | | | Director | | | Since 1996 | | | Independent Trustee and Managing Member, NBS Consulting LLC since 2014; Senior Financial Adviser, Veritable, L.P. (investment advisor) until December 2013. | | | 11 | | | None | | |
Management Information |
Name, Address, and Age | | | Position | | | Length of Time Served | | | Principal Occupations During the Past 5 Years | |
Officers | | | | | | | | | | |
Mitchell E. Appel Age: 49 | | | President | | | Since 2008 | | | President of each of the Value Line Funds since June 2008; Chief Financial Officer of the Distributor since April 2008 and President since February 2009; President of the Adviser since February 2009, Trustee since December 2010 and Treasurer since January 2011. | |
Michael J. Wagner Age: 69 | | | Chief Compliance Officer | | | Since 2009 | | | Chief Compliance Officer of each of the Value Line Funds since 2009; President of Northern Lights Compliance Services, LLC (formerly Fund Compliance Services, LLC) (2006-2019). | |
Emily D. Washington Age: 41 | | | Treasurer and Chief Financial Officer; Secretary | | | Since 2008 | | | Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer) of each of the Value Line Funds since 2008 and Secretary since 2010; Secretary of the Adviser since 2011. | |
Item 2 Code of Ethics
(a) The Registrant has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer and principal accounting officer.
(f) Pursuant to item 12(a), the Registrant is attaching as an exhibit a copy of its Code of Ethics that applies to its principal executive officer, and principal financial officer and principal accounting officer.
Item 3 Audit Committee Financial Expert.
(a)(1) The Registrant does not have an Audit Committee Financial Expert serving on its Audit Committee as of the date of this filing.
(2) The Registrant’s Board has designated James Hillman, member of the Registrant’s Audit Committee, as the Registrant’s Audit Committee Financial Expert. Mr. Hillman is an are independent director. Mr. Hillman currently serves as the Chief Financial Officer at Notre Dame School of Manhattan since 2011.
A person who is designated as an “audit committee financial expert” shall not make such person an "expert" for any purpose, including without limitation under Section 11 of the Securities Act of 1933 or under applicable fiduciary laws, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.
Item 4 Principal Accountant Fees and Services
(a) | Audit Fees 2019 - $31.954 |
Audit Fees 2018 - $24,612
(b) Audit-Related fees – None.
(c) Tax Preparation Fees 2019 -$4,393
Tax Preparation Fees 2018 - $5,037
(d) All Other Fees – None
(e) (1) Audit Committee Pre-Approval Policy. All services to be performed for the Registrant by PricewaterhouseCoopers LLP must be pre-approved by the audit committee. All services performed were pre-approved by the committee.
(2) Not applicable.
(f) Not applicable.
(g) Aggregate Non-Audit Fees 2019 - None
Aggregate Non-Audit Fees 2018 - None
(h) Not applicable.
Item 5. Audit Committee of Listed Registrants
Not Applicable.
Item 6. Investments
Not Applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not Applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not Applicable
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not Applicable
Item 10 Submission of Matters to a Vote of Security Holders
Not Applicable
Item 11 Controls and Procedures
(a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-2(c) under the Act (17 CFR 270.30a-2(c)) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report, are appropriately designed to ensure that material information relating to the registrant is made known to such officers and are operating effectively. |
(b) | The registrant’s principal executive officer and principal financial officer have determined that there have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including corrective actions with regard to significant deficiencies and material weaknesses. |
Item 12 Exhibits
(a) | Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers attached hereto as Exhibit 100.COE |
(b) | (1) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 99.CERT. |
(2) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
By | /s/ Mitchell E. Appel | |
Mitchell E. Appel, President | ||
Date: | March 9, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Mitchell E. Appel | |
Mitchell E. Appel, President, Principal Executive Officer | ||
By: | /s/ Emily D. Washington | |
Emily D. Washington, Treasurer, Principal Financial Officer | ||
Date: | March 9, 2020 |