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 _811-4471_
Value Line Aggressive Income Trust
(Exact name of registrant as specified in charter)
220 East 42nd Street, New York, N.Y. 10017
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: 212-907-1500
Date of fiscal year end: January 31, 2008
Date of reporting period: January 31, 2008
Item I. Reports to Stockholders.
A copy of the Annual Report to Stockholders for the period ended 1/31/08 is included with this Form.
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 SERVICING AGENT | State Street Bank and Trust Co. c/o BFDS P.O. Box 219729 Kansas City, MO 64121-9729 | |||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP 300 Madison Avenue New York, NY 10017 | |||||
LEGAL COUNSEL | Peter D. Lowenstein, Esq. 496 Valley Road Cos Cob, CT 06807 | |||||
TRUSTEES | Jean Bernhard Buttner John W. Chandler Frances T. Newton Francis C. Oakley David H. Porter Paul Craig Roberts Nancy-Beth Sheerr | |||||
OFFICERS | Jean Bernhard Buttner Chairman and President David T. Henigson Vice President/Secretary/ Chief Compliance Officer Stephen R. Anastasio Treasurer Howard A. Brecher Assistant Secretary/ Assistant Treasurer |
#541504 |
ANNUAL REPORT
January 31, 2008
Aggressive
Income Trust
Jean Bernhard Buttner
Chairman and President
(1) | The Lipper High Current Yield Bond Funds Average aims at high (relative) current yield from fixed income securities, has no quality or maturity restrictions, and tends to invest in lower grade debt issues. An investment cannot be made in Peer Group Average. |
(2) | The Lehman Brothers U.S. Corporate High Yield Index is representative of the broad based fixed-income market. It includes non-investment grade corporate bonds. The returns for the Index do not reflect charges, expenses, or taxes, and it is not possible to directly invest in this unmanaged Index. |
2
3
and the Lehman Brothers Aggregate Bond Index
and the Lehman Brothers U.S. Corporate High Yield Index*
* | The Lehman Brothers Aggregate Bond Index is representative of the broad based fixed-income market. It includes non-investment grade corporate bonds. The returns for the Index do not reflect charges, expenses, or taxes, which are deducted from the Trust’s returns, and it is not possible to directly invest in this unmanaged Index. The Lehman Brothers U.S. Corporate High Yield Index is representative of the broad based fixed-income market. It includes non-investment grade corporate bonds. The returns for the Index do not reflect charges, expenses, or taxes, which are deducted from the Trust’s returns, and it is not possible to directly invest in this unmanaged Index. |
Average Annual Total Return | Growth of an Assumed Investment of $10,000 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
1 year ended 1/31/08 | 2.14% | $10,214 | ||||||||
5 years ended 1/31/08 | 9.07% | $15,437 | ||||||||
10 years ended 1/31/08 | 2.44% | $12,724 |
** | The performance data quoted represent past performance and are no guarantee of future performance. The average annual total returns and growth of an assumed investment of $10,000 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. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
4
Beginning account value 8/1/07 | Ending account value 1/31/08 | Expenses* paid during period 8/1/07 thru 1/31/08 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Actual | $ | 1,000.00 | $ | 1,018.00 | $3.36 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | $3.36 |
* | Expenses are equal to the Trust’s annualized expense ratio of 0.66%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half period. This expense ratio may differ from the expense ratio shown in the Financial Highlights. |
5
Issue | | Par Value | | Value | | Percentage of Net Assets | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Gulfmark Offshore, Inc., Guaranteed Notes, 7.75%, 7/15/14 | $ | 1,100,000 | $ | 1,116,500 | 3.44% | |||||||||
Celestica, Inc., Senior Subordinated Notes, 7.88%, 7/1/11 | $ | 1,000,000 | $ | 970,000 | 2.99% | |||||||||
Allegheny Technologies, Inc., Notes, 8.38%, 12/15/11 | $ | 800,000 | $ | 850,000 | 2.62% | |||||||||
Phillips-Van Heusen Corp., Senior Notes, 7.25%, 2/15/11 | $ | 750,000 | $ | 751,875 | 2.32% | |||||||||
Stone Energy Corp., Senior Subordinated Notes, 8.25%, 12/15/11 | $ | 700,000 | $ | 693,000 | 2.13% | |||||||||
MediaCom LLC, Senior Notes, 9.50%, 1/15/13 | $ | 750,000 | $ | 669,375 | 2.06% | |||||||||
Williams Companies, Inc., Notes, 7.13%, 9/1/11 | $ | 600,000 | $ | 639,000 | 1.97% | |||||||||
American Casino & Entertainment Properties, Secured Notes, 7.85%, 2/1/12 | $ | 600,000 | $ | 624,450 | 1.92% | |||||||||
Smithfield Foods, Inc., Senior Subordinated Notes, 7.63%, 2/15/08 | $ | 600,000 | $ | 600,000 | 1.85% | |||||||||
Ferrellgas Escrow LLC/Ferrellgas Finance Escrow Corp., Senior Notes, 6.75%, 5/1/14 | $ | 600,000 | $ | 582,000 | 1.79% |
6
Principal Amount | | | Value | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
CONVERTIBLE CORPORATE BONDS & NOTES (2.1%) | |||||||||||
COMPUTER SOFTWARE & SERVICES (1.2%) | |||||||||||
$400,000 | Electronic Data Systems Corp. 3.88%, 7/15/23 | $ | 397,500 | ||||||||
DRUG (0.9%) | |||||||||||
300,000 | Bristol-Myers Squibb Co. 4.49%, 9/15/23 (1) | 298,860 | |||||||||
TOTAL CONVERTIBLE CORPORATE BONDS & NOTES (Cost $715,504) | 696,360 | ||||||||||
CORPORATE BONDS & NOTES (83.2%) | |||||||||||
AEROSPACE/DEFENSE (1.0%) | |||||||||||
350,000 | Alliant Techsystems, Inc., Senior Subordinated Notes, 6.75%, 4/1/16 | 337,750 | |||||||||
AIR TRANSPORT (1.7%) | |||||||||||
600,000 | CHC Helicopter Corp., Senior Subordinated Notes, 7.38%, 5/1/14 | 553,500 | |||||||||
AUTO & TRUCK (2.1%) | |||||||||||
500,000 | Ford Motor Co., Global Landmark Securities, 7.45%, 7/16/31 | 368,750 | |||||||||
400,000 | General Motors Corp., Debentures, 8.25%, 7/15/23 | 320,000 | |||||||||
688,750 | |||||||||||
CABLE TV (2.1%) | |||||||||||
750,000 | MediaCom LLC, Senior Notes, 9.50%, 1/15/13 | 669,375 | |||||||||
CHEMICAL — DIVERSIFIED (1.7%) | |||||||||||
500,000 | Mosaic Co. (The), Senior Notes, 7.63%, 12/1/14 (2) | 540,000 | |||||||||
CHEMICAL — SPECIALTY (3.2%) | |||||||||||
600,000 | ARCO Chemical Co., Debentures, 9.80%, 2/1/20 | 546,000 | |||||||||
500,000 | PolyOne Corp., Senior Notes, 8.88%, 5/1/12 | 500,000 | |||||||||
1,046,000 | |||||||||||
COAL (2.8%) | |||||||||||
$500,000 | Alpha Natural Resources LLC/Alpha Natural Resources Capital Corp., Senior Notes, 10.00%, 6/1/12 | $ | 513,750 | ||||||||
400,000 | Massey Energy Co., Senior Notes, 6.63%, 11/15/10 | 394,000 | |||||||||
907,750 | |||||||||||
COMPUTER & PERIPHERALS (1.5%) | |||||||||||
500,000 | Unisys Corp., Senior Notes, 6.88%, 3/15/10 | 470,000 | |||||||||
DRUG (1.5%) | |||||||||||
500,000 | Elan Finance PLC, Senior Notes, 7.75%, 11/15/11 | 470,000 | |||||||||
ELECTRICAL EQUIPMENT (1.2%) | |||||||||||
400,000 | Baldor Electric Co., Senior Notes, 8.63%, 2/15/17 | 388,000 | |||||||||
ELECTRICAL UTILITY—EAST (1.2%) | |||||||||||
400,000 | NRG Energy, Inc., Senior Notes, 7.38%, 2/1/16 | 386,500 | |||||||||
ELECTRONICS (3.0%) | |||||||||||
1,000,000 | Celestica, Inc., Senior Subordinated Notes, 7.88%, 7/1/11 | 970,000 | |||||||||
ENTERTAINMENT (3.8%) | |||||||||||
500,000 | EchoStar DBS Corp., Senior Notes, 6.63%, 10/1/14 | 488,125 | |||||||||
400,000 | Hughes Network Systems LLC, Senior Notes, 9.50%, 4/15/14 | 396,000 | |||||||||
400,000 | XM Satellite Radio Holdings, Inc., Senior Notes, 9.75%, 5/1/14 | 363,000 | |||||||||
1,247,125 |
7
Principal Amount | | | Value | |||||||
---|---|---|---|---|---|---|---|---|---|---|
FOOD PROCESSING (5.5%) | ||||||||||
$300,000 | Chiquita Brands International, Inc., Senior Notes, 7.50%, 11/1/14 | $ | 252,000 | |||||||
500,000 | Pilgrim’s Pride Corp., Senior Subordinated Notes, 8.38%, 5/1/17 | 436,250 | ||||||||
500,000 | Sensient Technologies Corp., 6.50%, 4/1/09 | 505,326 | ||||||||
600,000 | Smithfield Foods, Inc., Senior Subordinated Notes, 7.63%, 2/15/08 | 600,000 | ||||||||
1,793,576 | ||||||||||
HOTEL/GAMING (4.4%) | ||||||||||
600,000 | American Casino & Entertainment Properties, Secured Notes, 7.85%, 2/1/12 | 624,450 | ||||||||
500,000 | Boyd Gaming Corp., Senior Subordinated Notes, 6.75%, 4/15/14 | 435,000 | ||||||||
400,000 | MGM Mirage, Senior Notes, 6.75%, 4/1/13 | 381,000 | ||||||||
1,440,450 | ||||||||||
NATURAL GAS — DISTRIBUTION (4.4%) | ||||||||||
350,000 | AmeriGas Partners LP, Senior Notes, 7.25%, 5/20/15 | 345,625 | ||||||||
500,000 | Berry Petroleum Co., Senior Subordinated Notes, 8.25%, 11/1/16 | 507,500 | ||||||||
600,000 | Ferrellgas Escrow LLC/Ferrellgas Finance Escrow Corp., Senior Notes, 6.75%, 5/1/14 | 582,000 | ||||||||
1,435,125 | ||||||||||
NATURAL GAS — DIVERSIFIED (2.0%) | ||||||||||
600,000 | Williams Companies, Inc., Notes, 7.13%, 9/1/11 | 639,000 | ||||||||
OILFIELD SERVICES/ EQUIPMENT (8.6%) | ||||||||||
$500,000 | Basic Energy Services, Inc., Senior Notes, 7.13%, 4/15/16 | $ | 470,000 | |||||||
1,100,000 | Gulfmark Offshore, Inc., Guaranteed Notes, 7.75%, 7/15/14 | 1,116,500 | ||||||||
250,000 | North American Energy Partners, Inc., 8.75%, 12/1/11 | 243,750 | ||||||||
500,000 | W&T Offshore, Inc., Senior Notes, 8.25%, 6/15/14 (2) | 470,000 | ||||||||
500,000 | Whiting Petroleum Corp., Senior Notes, 7.25%, 5/1/13 | 492,500 | ||||||||
2,792,750 | ||||||||||
PETROLEUM — PRODUCING (10.0%) | ||||||||||
350,000 | Cimarex Energy Co., Senior Notes, 7.13%, 5/1/17 | 342,125 | ||||||||
500,000 | Encore Acquisition Co., Senior Subordinated Notes, 6.25%, 4/15/14 | 465,000 | ||||||||
500,000 | KCS Energy, Inc., Senior Notes, 7.13%, 4/1/12 | 475,000 | ||||||||
428,000 | PetroQuest Energy, Inc., Senior Notes, 10.38%, 5/15/12 | 434,420 | ||||||||
500,000 | Plains Exploration & Production Co., Senior Notes, 7.75%, 6/15/15 | 500,625 | ||||||||
325,000 | Regency Energy Partners LP/Regency Energy Finance Corp., Senior Notes, 8.38%, 12/15/13 | 329,875 | ||||||||
700,000 | Stone Energy Corp., Senior Subordinated Notes, 8.25%, 12/15/11 | 693,000 | ||||||||
3,240,045 | ||||||||||
RESTAURANT (1.4%) | ||||||||||
500,000 | O’Charleys, Inc., Senior Subordinated Notes, 9.00%, 11/1/13 | 470,000 |
8
Principal Amount | | | Value | |||||||
---|---|---|---|---|---|---|---|---|---|---|
RETAIL — AUTOMOTIVE (1.4%) | ||||||||||
$500,000 | PEP Boys-Manny Moe & Jack, Senior Subordinated Notes, 7.50%, 12/15/14 | $ | 450,000 | |||||||
RETAIL — SPECIAL LINES (5.6%) | ||||||||||
500,000 | Blyth, Inc., Notes, 7.90%, 10/1/09 | 513,125 | ||||||||
600,000 | NBTY, Inc., Senior Subordinated Notes, 7.13%, 10/1/15 | 558,000 | ||||||||
750,000 | Phillips-Van Heusen Corp., Senior Notes, 7.25%, 2/15/11 | 751,875 | ||||||||
1,823,000 | ||||||||||
RETAIL STORE (1.2%) | ||||||||||
410,000 | Dillard’s, Inc., Notes, 7.85%, 10/1/12 | 383,350 | ||||||||
SEMICONDUCTOR (3.2%) | ||||||||||
500,000 | Advanced Micro Devices, Inc., Senior Notes, 7.75%, 11/1/12 | 410,000 | ||||||||
350,000 | AGY Holding Corp., Senior 2nd Lien Notes, 11.00%, 11/15/14 (2) | 329,000 | ||||||||
350,000 | Freescale Semiconductor, Inc., Senior Notes, 8.88%, 12/15/14 | 284,375 | ||||||||
1,023,375 | ||||||||||
SHOE (1.4%) | ||||||||||
500,000 | Payless ShoeSource, Inc., Senior Subordinated Notes, 8.25%, 8/1/13 | 460,000 | ||||||||
STEEL — GENERAL (2.6%) | ||||||||||
800,000 | Allegheny Technologies, Inc., Notes, 8.38%, 12/15/11 | 850,000 | ||||||||
TELECOMMUNICATION SERVICES (3.2%) | ||||||||||
500,000 | Alamosa Delaware, Inc., Senior Notes, 8.50%, 1/31/12 | 507,904 | ||||||||
500,000 | Citizens Communications Co., Notes, 9.25%, 5/15/11 | 532,500 | ||||||||
1,040,404 | ||||||||||
TRUCKING (1.5%) | ||||||||||
$500,000 | Roadway Corp., Guaranteed Notes, 8.25%, 12/1/08 | $ | 499,375 | |||||||
TOTAL CORPORATE BONDS & NOTES (Cost $27,579,787) | 27,015,200 |
Shares | | | Value | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
PREFERRED STOCKS (0.8%) | ||||||||||||
R.E.I.T. (0.8%) | ||||||||||||
10,000 | Health Care REIT, Inc. Series F 7 5/8% | 242,200 | ||||||||||
TOTAL PREFERRED STOCKS (Cost $250,000) | 242,200 | |||||||||||
COMMON STOCKS (0.4%) | ||||||||||||
COMPUTER & PERIPHERALS (0.1%) | ||||||||||||
4,000 | Unisys Corp.* | 16,640 | ||||||||||
ELECTRICAL UTILITY — WEST (0.2%) | ||||||||||||
5,000 | Xcel Energy, Inc. | 103,950 | ||||||||||
TRUCKING (0.1%) | ||||||||||||
1,000 | YRC Worldwide, Inc.* | 18,310 | ||||||||||
TOTAL COMMON STOCKS (Cost $141,074) | 138,900 | |||||||||||
TOTAL INVESTMENT SECURITIES (86.5%) (Cost $28,686,365) | $ | 28,092,660 |
See Notes to Financial Statements.
9
Principal Amount | | | Value | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
REPURCHASE AGREEMENTS (11.4%) | |||||||||||
$1,900,000 | With Morgan Stanley, 1.50%, dated 1/31/08, due 2/1/08, delivery value $1,900,079 (collateralized by $1,340,000 U.S. Treasury Notes 8.125%, due 8/15/21, with a value of $1,949,240) | $ | 1,900,000 | ||||||||
1,800,000 | With State Street Bank & Trust, 1.25%, dated 1/31/08, due 2/1/08, delivery value $1,800,063 (collateralized by $1,855,000 U.S. Treasury Bill 2.04% due 7/17/08, with a value of $1,837,600) | 1,800,000 | |||||||||
TOTAL REPURCHASE AGREEMENTS (Cost $3,700,000) | 3,700,000 | ||||||||||
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES (2.1%) | 666,774 | ||||||||||
NET ASSETS (100%) | $ | 32,459,434 | |||||||||
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING SHARE ($32,459,434 ÷ 6,715,016 shares outstanding) | $ | 4.83 |
* | Non-income producing. |
(1) | Rate at January 31, 2008. Floating rate changes quarterly. |
(2) | Pursuant to Rule 144A under the Securities Act of 1933, this security can only be sold to qualified institutional investors. |
See Notes to Financial Statements.
10
at January 31, 2008
Assets: | |||||
---|---|---|---|---|---|
Investment securities, at value (Cost — $28,686,365) | $ | 28,092,660 | |||
Repurchase agreements (Cost — $3,700,000) | 3,700,000 | ||||
Cash | 93,953 | ||||
Interest receivable | 549,426 | ||||
Receivable for securities sold | 241,875 | ||||
Prepaid expenses | 14,442 | ||||
Total Assets | 32,692,356 | ||||
Liabilities: | |||||
Payable for trust shares repurchased | 137,826 | ||||
Dividends payable to shareholders | 43,691 | ||||
Accrued expenses: | |||||
Advisory fee | 9,898 | ||||
Service and distribution plan fees payable | 4,226 | ||||
Trustees’ fees and expenses | 860 | ||||
Other | 36,421 | ||||
Total Liabilities | 232,922 | ||||
Net Assets | $ | 32,459,434 | |||
Net assets consist of: | |||||
Shares of beneficial interest, at $0.01 par value (authorized unlimited, outstanding 6,715,016 shares) | $ | 67,150 | |||
Additional paid-in capital | 80,603,749 | ||||
Distributions in excess of net investment income | (43,690 | ) | |||
Accumulated net realized loss on investments | (47,574,070 | ) | |||
Unrealized net depreciation of investments and foreign currency translations | (593,705 | ) | |||
Net Assets | $ | 32,459,434 | |||
Net Asset Value, Offering and Redemption Price, Per Outstanding Share ($32,459,434 ÷ 6,715,016 shares of beneficial interest outstanding) | $ | 4.83 |
for the Year Ended January 31, 2008
Investment Income: | ||||
Interest | $ | 2,624,034 | ||
Dividends (Net of foreign withholding tax of $678) | 29,980 | |||
Total Income | 2,654,014 | |||
Expenses: | ||||
Advisory fee | 264,579 | |||
Service and distribution plan fees | 88,193 | |||
Transfer agent fees | 34,898 | |||
Custodian fees | 28,892 | |||
Printing and postage | 16,398 | |||
Auditing and legal fees | 6,302 | |||
Telephone | 3,403 | |||
Trustees’ fees and expenses | 2,702 | |||
Other | 5,999 | |||
Total Expenses Before Custody Credits and Fees Waived | 451,366 | |||
Less: Advisory Fee Waived | (141,109 | ) | ||
Less: Service and Distribution Plan Fees Waived | (35,277 | ) | ||
Less: Custody Credits | (4,990 | ) | ||
Net Expenses | 269,990 | |||
Net Investment Income | 2,384,024 | |||
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Exchange Transactions: | ||||
Net Realized Loss | (54,940 | ) | ||
Change in Net Unrealized Appreciation/(Depreciation) | (1,515,148 | ) | ||
Net Realized Loss and Change in Net Unrealized Appreciation/(Depreciation) on Investments and Foreign Exchange Transactions | (1,570,088 | ) | ||
Net Increase in Net Assets from Operations | $ | 813,936 |
See Notes to Financial Statements.
11
for the Years Ended January 31, 2008 and 2007
Year Ended January 31, 2008 | | Year Ended January 31, 2007 | |||||||
---|---|---|---|---|---|---|---|---|---|
Operations: | |||||||||
Net investment income | $ | 2,384,024 | $ | 2,601,204 | |||||
Net realized gain/(loss) on investments | (54,940 | ) | 107,473 | ||||||
Change in net unrealized appreciation/(depreciation) | (1,515,148 | ) | 250,607 | ||||||
Net increase in net assets from operations | 813,936 | 2,959,284 | |||||||
Distributions to Shareholders: | |||||||||
Net investment income | (2,388,478 | ) | (2,610,682 | ) | |||||
Trust Share Transactions: | |||||||||
Proceeds from sale of shares | 1,738,540 | 2,367,483 | |||||||
Proceeds from reinvestment of distributions to shareholders | 1,774,585 | 1,949,954 | |||||||
Cost of shares repurchased* | (6,819,594 | ) | (11,086,213 | ) | |||||
Net decrease in net assets from Trust share transactions | (3,306,469 | ) | (6,768,776 | ) | |||||
Total Decrease in Net Assets | (4,881,011 | ) | (6,420,174 | ) | |||||
Net Assets: | |||||||||
Beginning of year | 37,340,445 | 43,760,619 | |||||||
End of year | $ | 32,459,434 | $ | 37,340,445 | |||||
Distributions in excess of net investment income, at end of year | $ | (43,690 | ) | $ | (57,038 | ) |
See Notes to Financial Statements.
12
1. | Significant Accounting Policies |
13
Notes to Financial Statements
14
2. | Trust Share Transactions and Distributions to Shareholders |
Year Ended January 31, 2008 | | Year Ended January 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Shares sold | 347,176 | 477,167 | ||||||||
Shares issued to shareholders in reinvestment of dividends | 355,495 | 393,013 | ||||||||
Shares repurchased | (1,367,552 | ) | (2,233,473 | ) | ||||||
Net decrease | (664,881 | ) | (1,363,293 | ) | ||||||
Dividends per share from net Investment income | $ | 0.3387 | $ | 0.3245 |
3. | Purchases and Sales of Securities |
Year Ended January 31, 2008 | ||||||
---|---|---|---|---|---|---|
Purchases: | ||||||
Investment Securities | $ | 9,337,117 | ||||
Sales: | ||||||
Investment Securities | $ | 14,151,099 |
4. | Income Taxes |
Cost of investments for tax purposes | $ | 32,386,365 | ||||
Gross tax unrealized appreciation | $ | 391,786 | ||||
Gross tax unrealized depreciation | (985,491 | ) | ||||
Net tax unrealized depreciation on investments | $ | (593,705 | ) | |||
Capital loss carryforward, expires January 31, 2009 | $ | (20,922,783 | ) | |||
Capital loss carryforward, expires January 31, 2010 | (20,653,696 | ) | ||||
Capital loss carryforward, expires January 31, 2011 | (5,624,767 | ) | ||||
Capital loss carryforward, at January 31, 2008 | $ | (47,201,246 | ) |
15
Notes to Financial Statements
gains to the shareholders. It is uncertain whether the Trust will be able to realize the benefits of the losses before they expire.
2008 | | 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Ordinary income | $ | 2,388,478 | $ | 2,610,682 |
5. | Investment Advisory Fee, Service and Distribution Fees and Transactions With Affiliates |
16
Financial Highlights
Years Ended January 31, | | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2008 | | 2007 | | 2006 | | 2005 | | 2004 | |||||||||||||||
Net asset value, beginning of year | $ | 5.06 | $ | 5.01 | $ | 5.16 | $ | 5.06 | $ | 4.35 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income | 0.34 | 0.32 | 0.31 | �� | 0.33 | 0.34 | |||||||||||||||||
Net gains or losses on securities (both realized and unrealized) | (0.23 | ) | 0.05 | (0.15 | ) | 0.09 | 0.70 | ||||||||||||||||
Total from investment operations | 0.11 | 0.37 | 0.16 | 0.42 | 1.04 | ||||||||||||||||||
Redemption fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.01 | 0.01 | |||||||||||||||
Less distributions: | |||||||||||||||||||||||
Dividends from net investment income | (0.34 | ) | (0.32 | ) | (0.31 | ) | (0.33 | ) | (0.34 | ) | |||||||||||||
Net asset value, end of year | $ | 4.83 | $ | 5.06 | $ | 5.01 | $ | 5.16 | $ | 5.06 | |||||||||||||
Total return | 2.14 | % | 7.80 | % | 3.32 | % | 8.55 | % | 25.01 | % | |||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||
Net assets, end of year (in thousands) | $ | 32,459 | $ | 37,340 | $ | 43,761 | $ | 59,919 | $ | 64,101 | |||||||||||||
Ratio of expenses to average net assets(1) | 1.28 | % | 1.50 | % | 1.45 | % | 1.39 | % | 1.43 | % | |||||||||||||
Ratio of expenses to average net assets(2) | 0.77 | % | 1.04 | % | 1.45 | % | 1.39 | % | 1.43 | % | |||||||||||||
Ratio of net investment income to average net assets | 6.76 | % | 6.54 | % | 6.19 | % | 6.28 | % | 6.98 | % | |||||||||||||
Portfolio turnover rate | 30 | % | 31 | % | 27 | % | 69 | % | 76 | % |
(1) | Ratio reflects expenses grossed up for custody credit arrangement and grossed up for the waiver of a portion of the advisory fee by the Adviser and a portion of the service and distribution plan fees by the Distributor. The ratio of expenses to average net assets, net of custody credits, but exclusive of the waiver of a portion of the advisory fee by the Adviser and the waiver of the service and distribution plan fees by the Distributor, would have been 1.27% for the year ended January 31, 2008, 1.49% for the year ended January 31, 2007 and would not have changed for the other years shown. |
(2) | Ratio reflects expenses net of the waiver of a portion of the advisory fee by the Adviser and a portion of the service and distribution plan fees by the Distributor and net of the custody credit arrangement. |
(3) | Amount is less than $0.01 per share. |
See Notes to Financial Statements.
17
of Value Line Aggressive Income Trust, Inc.
New York, New York
March 25, 2008
18
For corporate taxpayers 0.34% of the ordinary income distributions paid during the fiscal year ended January 31, 2008 qualify for the corporate dividends received deduction. During the fiscal year ended January 31, 2008, 0.53% of the ordinary income distributions are treated as qualified dividends. |
19
Name, Address, and Age | | Position | | Length of Time Served | | Principal Occupation During the Past 5 Years | | Other Directorships Held by Trustee | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Interested Trustee* | ||||||||||||||||||
Jean Bernhard Buttner Age 73 | Chairman of the Board of Trustees and President | Since 1987 | Chairman, President and Chief Executive Officer of Value Line, Inc. (the “Adviser”) and Value Line Publishing, Inc. Chairman and President of each of the 14 Value Line Funds and Value Line Securities, Inc. (the “Distributor”). | Value Line, Inc. | ||||||||||||||
Non-Interested Trustees | ||||||||||||||||||
John W. Chandler 1611 Cold Springs Road Williamstown, MA 01267 Age 84 | Trustee (Lead Independent Trustee since 2007) | Since 1991 | Consultant, Academic Search Consultation Service, Inc. 1992–2004; Trustee Emeritus and Chairman (1993–1994) of the Board of Trustees of Duke University; President Emeritus, Williams College. | None | ||||||||||||||
Frances T. Newton 4921 Buckingham Drive Charlotte, NC 28209 Age 66 | Trustee | Since 2000 | Retired. Customer Support Analyst, Duke Power Company until April 2007. | None | ||||||||||||||
Francis C. Oakley 54 Scott Hill Road Williamstown, MA 01267 Age 76 | Trustee | Since 2000 | Professor of History, Williams College, 1961 to 2002; Professor Emeritus since 2002; President Emeritus since 1994 and President, 1985–1994; Chairman (1993–1997) and Interim President (2002–2003) of the American Council of Learned Societies. Trustee since 1997 and Chairman of the Board since 2005, National Humanities Center. | None | ||||||||||||||
David H. Porter 5 Birch Run Drive Saratoga Springs, NY 12866 Age 72 | Trustee | Since 1997 | Visiting Professor of Classics, Williams College, since 1999; President Emeritus, Skidmore College since 1999 and President, 1987–1998. | None |
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Management of the Trust
Name, Address, and Age | | Position | | Length of Time Served | | Principal Occupation During the Past 5 Years | | Other Directorships Held by Trustee | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Paul Craig Roberts 169 Pompano St. Panama City Beach, FL 32413 Age 68 | Trustee | Since 1987 | Chairman, Institute for Political Economy. | None | ||||||||||||||
Nancy-Beth Sheerr 1409 Beaumont Drive Gladwyne, PA 19035 Age 58 | Trustee | Since 1996 | Senior Financial Advisor, Veritable L.P. (investment adviser) since 2004; Senior Financial Advisor, Hawthorn, 2001–2004. | None | ||||||||||||||
Officers | ||||||||||||||||||
David T. Henigson Age 50 | Vice President/ Secretary/Chief Compliance Officer | Since 1994 | Director, Vice President and Chief Compliance Officer of the Adviser. Director, Vice President and Chief Compliance Officer of the Distributor. Vice President, Secretary and Chief Compliance Officer of each of the 14 Value Line Funds. | |||||||||||||||
Stephen R. Anastasio Age 48 | Treasurer | Since 2005 | Controller of the Adviser until 2003; Chief Financial Officer of the Adviser 2003–2005; Treasurer of the Adviser since 2005. Treasurer of each of the 14 Value Line Funds since 2005. | |||||||||||||||
Howard A. Brecher Age 53 | Assistant Secretary/ Assistant Treasurer | Since 2005 | Director, Vice President and Secretary of the Adviser. Director and Vice President of the Distributor. |
* | Mrs. Buttner is an “interested person” as defined in the Investment Company Act of 1940 by virtue of her positions with the Adviser and her indirect ownership of a controlling interest in the Adviser. |
Unless otherwise indicated, the address for each of the above is 220 East 42nd Street, New York, NY 10017.
The Trust’s Statement of Additional Information (SAI) includes additional information about the Trust’s Trustees and is available, without charge, upon request by calling 1-800-243-2729. |
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The Value Line Family of Funds
* | Only available through the purchase of Guardian Investor, a tax deferred variable annuity, or ValuePlus, a variable life insurance policy. |
24
Item 2. Code of Ethics
(a) The Registrant has adopted a Code of Ethics that applies to its principal executive officer, and 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 has an Audit Committee Financial Expert serving on its Audit Committee.
(2) The Registrant’s Board has designated John W. Chandler, a member of the Registrant’s Audit Committee, as the Registrant’s Audit Committee Financial Expert. Mr. Chandler is an independent director who is a senior consultant with Academic Search Consultation Service. He spent most of his professional career at Williams College, where he served as a faculty member, Dean of the Faculty, and President (1973-85). He
also served as President of Hamilton College (1968-73), and as President of the Association of American Colleges and Universities (1985-90). He has also previously served as Trustee Emeritus and Chairman of the Board of Trustees of Duke University.
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 2008 $ 4,448
(b) Audit-Related fees – None.
(c) Tax Preparation Fees 2008 $7,707
(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.
(e) (2) Not applicable.
(f) Not applicable.
(g) Aggregate Non-Audit Fees 2008 $ 2,770
(h) 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 99.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/ Jean B. Buttner |
| Jean B. Buttner, President |
Date: | March 27, 2008 |
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/ Jean B. Buttner |
| Jean B. Buttner, President, Principal Executive Officer |
By: | /s/ Stephen R. Anastasio |
| Stephen R. Anastasio, Treasurer, Principal Financial Officer |
Date: | March 27, 2008 |