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 811-719
Value Line Premier Growth Fund, Inc.
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(Exact name of registrant as specified in charter)
220 East 42nd Street, New York, N.Y. 10017
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 212-907-1500
Date of fiscal year end: December 31, 2005
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Date of reporting period: December 31, 2005
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Item 1. Reports to Stockholders.
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ANNUAL REPORT
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December 31, 2005
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Value Line
Premier
Growth
Fund, Inc.
[LOGO
VALUE LINE
No-Load
Mutual
Funds]
Value Line Premier Growth Fund, Inc.
To Our Value Line Premier
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To Our Shareholders:
We are pleased to report that Value Line Premier Growth Fund, Inc. earned a
total return of 11.49% in 2005. This is compared with a total return of 4.91%
for the S&P 500 benchmark index(1) (the Fund was formerly known as "The Value
Line Special Situations Fund, Inc.").
For the ten years ended December 31, 2005, the Fund's annualized total return
was 12.73%, versus 9.07% for S&P 500; and for five years, 3.64%, versus 0.54%
for the S&P 500.
Your Fund has also done consistently well versus its peers in the mid-cap
growth category based on total return. According to Lipper Inc., for the ten
years ended December 31, 2005, its performance ranked 9th out of 126 funds; for
five years, 58th of 348 funds; and for one year, 201st of 553 funds(2).
Based on historical return, risk measures, consistency, and other criteria,
discount broker E*Trade named your Fund to its most recent list of All-Star
Funds, one of only two mid-cap growth funds on the list. Standard & Poor's
gives the Fund its top rank of 5 Stars. Fidelity Investments selected the Fund
for its Fund Picks from Fidelity list, one of five non-Fidelity mid-cap growth
funds on the list.
Our disciplined investment approach is responsible for the Fund's success. We
invest only in stocks that boast strong earnings momentum and/or strong stock
price momentum, relative to other stocks. Any issue not meeting this high
standard is sold. The great majority of the Fund's holdings boast a multi-year
record of rising earnings and stock prices. This is truly a portfolio of growth
stocks. We spend little time trying to guess where the economy or particular
sectors are headed. Instead, we select stocks one by one, based on the
underlying companies' individual merits.
At year end, healthcare (19% of the stock portfolio), financial services (16%),
and energy (12%) were the largest sector holdings. By capitalization,
investments were 33% large-cap, 55% mid-cap, and 12% small-cap. The
well-diversified portfolio holds about 425 stocks, with no single holding
accounting for as much as 1% of assets.
Your Fund celebrates its Golden Anniversary this year, having been founded in
May 1956. Steve Grant has held primary responsibility for the day-to-day
management of the portfolio since 1996. You have our assurance that we will
maintain our disciplined investment process, and you have our thanks for
investing with us.
Sincerely,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
Chairman and President
January 26, 2006
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(1) The Standard & Poor's 500 Index consists of 500 stocks which are traded on
the New York Stock Exchange, American Stock Exchange and the NASDAQ
National Market System and is representative of the broad stock market.
This is an unmanaged index and does not reflect charges, expenses or
taxes, and it is not possible to directly invest in this index.
(2) The Lipper Mid-Cap Growth Fund Index is a composite of funds that, by
portfolio practice, invest at least 75% of their equity assets in
companies with market capitalizations (on a three-year weighted basis)
less than 300% of the dollar-weighted median market capitalization of the
middle 1,000 securities of the S&P SuperComposite 1500 Index. Mid-cap
growth funds typically have an above-average price-to-earnings ratio,
price-to-book ratio, and three-year sales-per-share growth value, compared
to the S&P Mid-Cap 400 Index.
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2
Value Line Premier Growth Fund, Inc.
Growth Fund Shareholders
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Economic Observations
The business expansion is likely to proceed at a somewhat slower pace of
3.0%-3.5% during the latter stages of 2005 than we had expected earlier,
reflecting the major damage done to the Gulf Coast's economic underpinnings by
the recent hurricanes in that region. As before, the economic up cycle should
be sustained by healthy levels of construction spending and capital goods
demand. Moreover, recent trends suggest that the economy will continue to grow
at a stable 3.0%-3.5% in 2006.
Helping to sustain this upturn next year are likely to be solid levels of
activity in the manufacturing area and the service sector. In fact, the need to
rebuild portions of the hurricane-ravaged Gulf area should give the economy a
modest boost. Such growth will probably be accompanied by still moderate, but
somewhat higher, rates of inflation. The wild card in this equation, and one
reason that we are not likely to see a higher level of business growth, is the
high price of oil. Should that commodity stabilize in price over the next
several months, as we assume, the sustainability of the long economic
expansion, as well as the prolonged period of comparative price stability,
probably would continue. Any material and sustained increase in oil prices from
these recent levels would logically threaten this economic and inflation
stability.
A continuing steady rate of gross domestic product growth and the accompanying
stable rates of inflation that we expect would have positive ramifications for
the financial markets. That's because this combination would logically allow
the Federal Reserve to bring its cycle of monetary tightening to a close over
the next several months--if not sooner--without undue harm to the lengthy
economic and corporate earnings up cycles.
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3
Value Line Premier Growth Fund, Inc.
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FUND EXPENSES (unaudited):
Example
As a shareholder of the Fund, you incur ongoing costs, including management
fees; distribution and service (12b-1) fees; and other Fund expenses. This
Example is intended to help you understand your ongoing costs (in dollars) of
investing in the Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period (July 1, 2005 through December 31,
2005).
Actual Expenses
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example an $8,600
account value divided by $1,000=8.6), then multiply the result by the number in
the first line under the heading "Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder
reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if transactional
costs were included, your costs would have been higher.
Expenses*
paid during
Beginning Ending period
account account 7/1/05
value value thru
7/1/05 12/31/05 12/31/05
-------------- -------------- ------------
Actual ........................................... $ 1,000.00 $ 1,090.20 $ 5.90
Hypothetical (5% return before expenses) ......... $ 1,000.00 $ 1,019.55 $ 5.70
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* Expenses are equal to the Fund's annualized expense ratio of 1.12%,
multiplied by the average account value over the period, multiplied by
184/365 to reflect the one-half period.
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4
Value Line Premier Growth Fund, Inc.
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The following graph compares the performance of Value Line Premier Growth Fund,
Inc. to that of the S&P 500 Stock Index. Value Line Premier Growth Fund, Inc.
is a professionally managed mutual fund, while the Index is not available for
investment and is unmanaged. The returns for the Index do not reflect charges,
expenses or taxes but do include the reinvestment of dividends. The comparison
is shown for illustrative purposes only.
Comparison of a Change in Value of a $10,000 Investment in the Value Line
Premier Growth Fund, Inc. and the S&P 500 Stock Index*
[THE FOLLOWING WAS DEPICTED BY A LINE CHART IN THE PRINTED MATERIAL]
$ Value $ Value
Value Line Premier S&P 500
Date Growth Fund, Inc. Stock Index
---- ----------- -----------
1/1/1996 10,000 10,000
3/31/1996 10,333 10,537
6/30/1996 10,462 11,010
9/30/1996 10,450 11,350
12/31/1996 10,725 12,296
3/31/1997 10,234 12,624
6/30/1997 12,019 14,828
9/30/1997 14,656 15,940
12/31/1997 14,167 16,398
3/31/1998 16,672 18,685
6/30/1998 17,043 19,302
9/30/1998 14,431 17,382
12/31/1998 18,400 21,083
3/31/1999 19,252 22,134
6/30/1999 21,404 23,694
9/30/1999 21,529 22,214
12/31/1999 29,745 25,520
3/31/2000 33,391 26,105
6/30/2000 32,150 25,411
9/30/2000 33,632 25,165
12/31/2000 27,730 23,196
3/31/2001 22,113 20,446
6/30/2001 24,715 21,643
9/30/2001 20,453 18,466
12/31/2001 22,835 20,439
3/31/2002 23,113 20,496
6/30/2002 21,932 17,750
9/30/2002 19,437 14,683
12/31/2002 19,377 15,922
3/31/2003 19,172 15,420
6/30/2003 21,341 17,794
9/30/2003 22,703 18,265
12/31/2003 25,113 20,489
3/31/2004 26,764 20,836
6/30/2004 27,149 21,194
9/30/2004 26,655 20,798
12/31/2004 29,738 22,717
3/31/2005 29,260 22,229
6/30/2005 30,413 22,534
9/30/2005 32,389 23,346
12/31/2005 33,155 23,833
* The Standard and Poor's 500 Index (S&P 500 Index) is an unmanaged index
that is representative of the larger-capitalization stocks traded in the
United States.
The return for the index does not reflect expenses which are deducted from
the Fund's returns.
Performance Data:**
Average Annual Growth of an Assumed
Total Return Investment of $10,000
---------------- ----------------------
1 year ended 12/31/05 .......... 11.49% $11,149
5 years ended 12/31/05 ......... 3.64% $11,957
10 years ended 12/31/05 ......... 12.73% $33,155
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** 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.
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5
Value Line Premier Growth Fund, Inc.
Portfolio Highlights at December 31, 2005
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Ten Largest Holdings
Value Percentage
Issue Shares (in thousands) of Net Assets
- ------------------------------------------------------ -------- ---------------- --------------
Landstar System, Inc. ................................ 76,000 $ 3,172 0.72%
Intuitive Surgical, Inc. ............................. 24,000 2,815 0.64
Southwestern Energy Co. .............................. 74,000 2,659 0.60
UnitedHealth Group, Inc. ............................. 41,850 2,601 0.59
Cognizant Technology Solutions Corp. Class A ......... 50,000 2,518 0.57
Sonic Corp. .......................................... 84,375 2,489 0.56
Henry Schein, Inc. ................................... 56,000 2,444 0.55
TXU Corp. ............................................ 48,000 2,409 0.55
Hansen Natural Corp. ................................. 30,000 2,364 0.54
Harman International Industries, Inc. ................ 24,000 2,348 0.53
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Asset Allocation -- Percentage of Net Assets
[THE FOLLOWING WAS DEPICTED BY A PIE CHART IN THE PRINTED MATERIAL]
Common Stocks 95.0%
Cash & Other 5.0%
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Sector Weightings -- Percentage of Total Investment Securities
[THE FOLLOWING WAS DEPICTED BY A BAR CHART IN THE PRINTED MATERIAL]
Consumer, Non-Cyclical 23.0%
Consumer, Cyclical 17.3%
Finance 17.1%
Industrial 16.2%
Energy 9.8%
Communications 6.1%
Technology 5.4%
Utilities 2.5%
Basic Materials 2.4%
Diversified 0.2%
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6
Value Line Premier Growth Fund, Inc.
Schedule of Investments December 31, 2005
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Value
Shares (in thousands)
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COMMON STOCKS (95.0%)
ADVERTISING (0.7%)
22,000 aQuantive, Inc.* ............................................ $ 555
28,500 Harte-Hanks, Inc. ........................................... 752
9,000 Omnicom Group, Inc. ......................................... 766
17,000 R.H. Donnelley Corp.* ....................................... 1,048
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3,121
AEROSPACE/DEFENSE (1.9%)
28,000 Armor Holdings, Inc.* ....................................... 1,194
23,000 Aviall, Inc.* ............................................... 662
16,500 DRS Technologies, Inc. ...................................... 848
28,500 Engineered Support Systems, Inc. ............................ 1,187
16,200 Esterline Technologies Corp.* ............................... 603
11,000 L-3 Communications Holdings, Inc. ........................... 818
23,800 Precision Castparts Corp. ................................... 1,233
19,600 Rockwell Collins, Inc. ...................................... 911
25,000 Teledyne Technologies, Inc.* ................................ 728
--------
8,184
AIR TRANSPORT (0.3%)
9,000 FedEx Corp. ................................................. 930
4,800 Lan Airlines S.A. (ADR) ..................................... 180
--------
1,110
APPAREL (0.7%)
19,900 Jos. A. Bank Clothiers, Inc.* ............................... 864
5,000 Oxford Industries, Inc. ..................................... 273
30,000 Phillips-Van Heusen ......................................... 972
19,800 Polo Ralph Lauren Corp. Class A ............................. 1,112
--------
3,221
AUTO & TRUCK (0.4%)
38,000 Oshkosh Truck Corp. ......................................... 1,694
AUTO PARTS (0.7%)
13,000 Autoliv, Inc. ............................................... 591
15,600 BorgWarner, Inc. ............................................ 946
20,000 Johnson Controls, Inc. ...................................... 1,458
--------
2,995
BANK (3.7%)
65,500 Banco Itau Holding Financeira S.A. (ADR) .................... 1,573
16,400 Banco Santander Chile SA (ADR) .............................. 731
35,000 Bancolombia S.A. (ADR) ...................................... 1,009
14,000 BancorpSouth, Inc. .......................................... 309
25,000 Bank of Hawaii Corp. ........................................ 1,289
12,500 City National Corp. ......................................... 906
36,000 Colonial BancGroup, Inc. (The) .............................. 858
21,000 Compass Bancshares, Inc. .................................... 1,014
32,000 ICICI Bank Ltd. (ADR) ....................................... 922
8,200 M&T Bank Corp. .............................................. 894
3,000 Mercantile Bankshares Corp. ................................. 169
22,867 North Fork Bancorporation, Inc. ............................. 626
22,000 SVB Financial Group* ........................................ 1,031
11,600 Unibanco--Uniao de Bancos Brasileiros S.A. (ADR) ............ 737
13,200 UnionBanCal Corp. ........................................... 907
17,000 Webster Financial Corp. ..................................... 797
15,000 Wells Fargo & Co. ........................................... 943
17,000 Westamerica Bancorporation .................................. 902
19,000 Wilmington Trust Corp. ...................................... 739
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16,356
BANK -- CANADIAN (0.4%)
9,300 Bank of Montreal ............................................ 520
11,700 Royal Bank of Canada ........................................ 913
3,400 Toronto-Dominion Bank (The) ................................. 179
--------
1,612
BANK -- MIDWEST (0.7%)
22,900 Associated Banc-Corp ........................................ 745
17,800 Commerce Bancshares Inc/Kansas City, MO ..................... 928
27,000 Huntington Bancshares, Inc. ................................. 641
19,000 Marshall & Ilsley Corp. ..................................... 818
--------
3,132
BEVERAGE -- ALCOHOLIC (0.4%)
12,600 Brown-Forman Corp. Class B .................................. 873
36,000 Constellation Brands, Inc. Class A* ......................... 944
--------
1,817
See Notes to Financial Statements.
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7
Value Line Premier Growth Fund, Inc.
Schedule of Investments
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Value
Shares (in thousands)
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BEVERAGE -- SOFT DRINK (1.0%)
29,000 Companhia de Bebidas das Americas (ADR) ..................... $ 1,104
30,000 Hansen Natural Corp.* ....................................... 2,364
15,000 PepsiCo, Inc. ............................................... 886
--------
4,354
BIOTECHNOLOGY (0.8%)
15,000 Genentech, Inc.* ............................................ 1,388
18,000 Techne Corp.* ............................................... 1,011
17,800 United Therapeutics Corp.* .................................. 1,230
--------
3,629
BUILDING MATERIALS (0.9%)
29,400 Aleris International, Inc.* ................................. 948
20,000 Jacobs Engineering Group, Inc.* ............................. 1,357
2,700 NCI Building Systems, Inc.* ................................. 115
24,000 Simpson Manufacturing Co, Inc. .............................. 872
15,800 Washington Group International, Inc. ........................ 837
--------
4,129
CANADIAN ENERGY (1.4%)
18,500 Canadian Natural Resources, Inc. ............................ 918
23,000 Nexen, Inc. ................................................. 1,095
28,000 Suncor Energy, Inc. ......................................... 1,768
29,000 Talisman Energy, Inc. ....................................... 1,533
24,000 TransCanada Corp. ........................................... 756
--------
6,070
CEMENT & AGGREGATES (1.0%)
15,000 Cemex S.A. de C.V. (ADR) .................................... 890
8,300 Eagle Materials, Inc. ....................................... 1,016
25,650 Florida Rock Industries, Inc. ............................... 1,258
12,000 Martin Marietta Materials, Inc. ............................. 921
7,000 Vulcan Materials Co. ........................................ 474
--------
4,559
CHEMICAL -- DIVERSIFIED (0.2%)
14,000 Monsanto Co. ................................................ 1,085
CHEMICAL -- SPECIALTY (1.2%)
29,000 Airgas, Inc. ................................................ 954
26,000 Ecolab, Inc. ................................................ 943
30,000 Praxair, Inc. ............................................... 1,589
13,000 Sigma-Aldrich Corp. ......................................... 823
36,800 Syngenta AG (ADR)* .......................................... 916
--------
5,225
COAL (1.2%)
17,600 CONSOL Energy, Inc. ......................................... 1,147
51,750 Joy Global, Inc. ............................................ 2,070
26,600 Peabody Energy Corp. ........................................ 2,193
--------
5,410
COMPUTER & PERIPHERALS (0.9%)
32,000 Hewlett-Packard Co. ......................................... 916
22,000 Logitech International S.A (ADR)* ........................... 1,029
22,000 MICROS Systems, Inc.* ....................................... 1,063
17,000 SanDisk Corp.* .............................................. 1,068
--------
4,076
COMPUTER SOFTWARE & SERVICES (3.0%)
24,000 Adobe Systems, Inc. ......................................... 887
30,000 ANSYS, Inc.* ................................................ 1,281
18,300 Anteon International Corp.* ................................. 995
38,000 Autodesk, Inc. .............................................. 1,632
50,000 Cognizant Technology Solutions Corp. Class A* ............... 2,518
6,000 Hyperion Solutions Corp.* ................................... 215
14,200 Infosys Technologies Ltd. (ADR) ............................. 1,148
29,000 Intergraph Corp.* ........................................... 1,444
25,200 Progress Software Corp.* .................................... 715
23,000 Satyam Computer Services Ltd. (ADR) ......................... 842
21,000 SRA International, Inc. Class A* ............................ 641
48,800 Trident Microsystems, Inc.* ................................. 878
--------
13,196
See Notes to Financial Statements.
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8
Value Line Premier Growth Fund, Inc.
December 31, 2005
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Value
Shares (in thousands)
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DIVERSIFIED COMPANIES (2.4%)
20,000 American Standard Cos, Inc. ................................. $ 799
22,000 Ametek, Inc. ................................................ 936
21,300 Brink's Co. (The) ........................................... 1,021
21,400 Chemed Corp. ................................................ 1,063
48,000 Covanta Holding Corp.* ...................................... 723
15,800 Danaher Corp. ............................................... 881
24,000 ESCO Technologies, Inc.* .................................... 1,068
9,600 Fortune Brands, Inc. ........................................ 749
8,600 ITT Industries, Inc. ........................................ 884
16,000 Pentair, Inc. ............................................... 552
11,500 Textron, Inc. ............................................... 885
17,000 United Technologies Corp. ................................... 951
--------
10,512
DRUG (2.6%)
8,600 Allergan, Inc. .............................................. 929
16,000 Barr Pharmaceuticals, Inc.* ................................. 997
26,000 Celgene Corp.* .............................................. 1,685
18,400 Covance, Inc.* .............................................. 893
12,700 Genzyme Corp.* .............................................. 899
21,000 Gilead Sciences, Inc.* ...................................... 1,105
20,500 Hospira, Inc.* .............................................. 877
27,000 Immucor, Inc.* .............................................. 631
11,000 Kos Pharmaceuticals, Inc.* .................................. 569
16,000 Pharmaceutical Product Development, Inc. .................... 991
40,000 Teva Pharmaceutical Industries Ltd. (ADR) ................... 1,720
--------
11,296
E-COMMERCE (0.2%)
16,500 Websense, Inc.* ............................................. 1,083
EDUCATIONAL SERVICES (0.2%)
20,000 Education Management Corp.* ................................. 670
ELECTRICAL EQUIPMENT (1.7%)
60,000 Corning, Inc.* .............................................. 1,180
48,000 FLIR Systems, Inc.* ......................................... 1,072
24,000 Harman International Industries, Inc. ....................... 2,348
21,500 Thomas & Betts Corp.* ....................................... 902
27,500 Trimble Navigation Ltd.* .................................... 976
27,700 WESCO International, Inc.* .................................. 1,184
--------
7,662
ELECTRICAL UTILITY CENTRAL (0.9%)
12,000 Entergy Corp. ............................................... 824
48,000 TXU Corp. ................................................... 2,409
14,400 WPS Resources Corp. ......................................... 796
--------
4,029
ELECTRICAL UTILITY EAST (0.3%)
18,000 Exelon Corp. ................................................ 956
4,000 SCANA Corp. ................................................. 158
--------
1,114
ELECTRICAL UTILITY WEST (0.2%)
18,500 Sempra Energy ............................................... 830
ELECTRONICS (0.5%)
20,400 Amphenol Corp. Class A ...................................... 903
26,500 Harris Corp. ................................................ 1,140
--------
2,043
ENTERTAINMENT TECHNOLOGY (0.2%)
38,000 Scientific Games Corp. Class A* ............................. 1,037
ENVIRONMENTAL (0.6%)
25,000 Republic Services, Inc. ..................................... 939
18,300 Stericycle, Inc.* ........................................... 1,077
22,000 Waste Connections, Inc.* .................................... 758
--------
2,774
See Notes to Financial Statements.
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9
Value Line Premier Growth Fund, Inc.
Schedule of Investments
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Value
Shares (in thousands)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES -- DIVERSIFIED (3.4%)
12,000 Affiliated Managers Group, Inc.* ............................ $ 963
10,700 BlackRock, Inc. Class A ..................................... 1,161
42,000 Brown & Brown, Inc. ......................................... 1,283
19,000 CIT Group, Inc. ............................................. 984
7,400 Commerce Group, Inc. ........................................ 424
34,000 Eaton Vance Corp. ........................................... 930
12,000 First American Corp. ........................................ 544
9,000 Franklin Resources, Inc. .................................... 846
28,200 Global Payments, Inc. ....................................... 1,314
18,300 HDFC Bank Ltd. (ADR) ........................................ 931
14,000 IndyMac Bancorp, Inc. ....................................... 546
19,000 Leucadia National Corp. ..................................... 902
33,000 MoneyGram International, Inc. ............................... 861
19,000 Principal Financial Group, Inc. ............................. 901
21,000 ProAssurance Corp.* ......................................... 1,021
3,900 Student Loan Corp. (The) .................................... 816
12,000 Wintrust Financial Corp. .................................... 659
--------
15,086
FOOD PROCESSING (1.0%)
24,000 Dean Foods Co.* ............................................. 904
37,500 Flowers Foods, Inc. ......................................... 1,034
14,000 Hershey Co. (The) ........................................... 774
41,000 United Natural Foods, Inc.* ................................. 1,082
11,000 Wrigley (WM) Jr. Co. ........................................ 731
--------
4,525
FOREIGN TELECOMMUNICATIONS (0.2%)
34,000 America Movil S.A. de C.V. (ADR) ............................ 995
FURNITURE/HOME FURNISHINGS (0.1%)
7,000 HNI Corp. ................................................... 385
GROCERY (0.3%)
16,400 Whole Foods Market, Inc. .................................... 1,269
HEALTH CARE INFORMATION SYSTEMS (0.2%)
10,000 Cerner Corp.* ............................................... 909
HOME APPLIANCES (0.6%)
10,000 Black & Decker Corp. (The) .................................. 869
40,000 Toro Co. (The) .............................................. 1,751
--------
2,620
HOME BUILDING (0.6%)
25,600 Forest City Enterprises, Inc. Class A ....................... 971
14,600 Lennar Corp. Class A ........................................ 891
13,500 St Joe Co. (The) ............................................ 907
--------
2,769
HOTEL/GAMING (2.6%)
25,000 Boyd Gaming Corp. ........................................... 1,192
36,000 Choice Hotels International, Inc. ........................... 1,503
19,200 Gaylord Entertainment Co.* .................................. 837
16,000 GTECH Holdings Corp. ........................................ 508
13,200 Harrah's Entertainment, Inc. ................................ 941
12,700 Kerzner International Ltd.* ................................. 873
28,000 MGM MIRAGE* ................................................. 1,027
64,000 Penn National Gaming, Inc.* ................................. 2,109
13,000 Starwood Hotels & Resorts Worldwide, Inc. ................... 830
23,000 Station Casinos, Inc. ....................................... 1,559
--------
11,379
HOUSEHOLD PRODUCTS (0.7%)
23,900 Church & Dwight Co, Inc. .................................... 790
22,000 Energizer Holdings, Inc.* ................................... 1,095
22,000 Scotts Miracle-Gro Co. (The), Class A ....................... 995
--------
2,880
HUMAN RESOURCES (0.2%)
28,000 Resources Connection, Inc.* ................................. 730
INDUSTRIAL SERVICES (1.3%)
36,250 Aaron Rents, Inc. Class B ................................... 764
30,000 C.H. Robinson Worldwide, Inc. ............................... 1,111
16,000 CB Richard Ellis Group, Inc. Class A* ....................... 942
17,000 Expeditors International of Washington, Inc. ................ 1,148
20,400 Iron Mountain, Inc.* ........................................ 861
22,400 URS Corp.* .................................................. 842
--------
5,668
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10
Value Line Premier Growth Fund, Inc.
December 31, 2005
- --------------------------------------------------------------------------------
Value
Shares (in thousands)
- --------------------------------------------------------------------------------
INFORMATION SERVICES (1.2%)
7,000 Arbitron, Inc. .............................................. $ 266
11,700 Corporate Executive Board Co. (The) ......................... 1,050
14,000 Dun & Bradstreet Corp. (The)* ............................... 937
24,000 Equifax, Inc. ............................................... 913
11,800 Getty Images, Inc.* ......................................... 1,053
20,000 Moody's Corp. ............................................... 1,228
--------
5,447
INSURANCE -- LIFE (1.4%)
20,000 AFLAC, Inc. ................................................. 928
17,400 Delphi Financial Group, Inc. Class A ........................ 800
21,000 Genworth Financial, Inc. Class A ............................ 726
17,000 Manulife Financial Corp. .................................... 1,000
19,000 MetLife, Inc. ............................................... 931
14,000 Prudential Financial, Inc. .................................. 1,025
19,400 StanCorp Financial Group, Inc. .............................. 969
--------
6,379
INSURANCE -- PROPERTY & CASUALTY (2.8%)
15,000 Allstate Corp. (The) ........................................ 811
25,000 Assurant, Inc. .............................................. 1,087
37,125 Berkley (W.R.) Corp. ........................................ 1,768
8,700 Everest Re Group, Ltd. ...................................... 873
29,700 Fidelity National Financial, Inc. ........................... 1,093
5,197 Fidelity National Title Group, Inc. Class A ................. 127
33,750 HCC Insurance Holdings, Inc. ................................ 1,002
2,300 Markel Corp.* ............................................... 729
13,200 Mercury General Corp. ....................................... 768
25,000 Old Republic International Corp. ............................ 656
5,000 Progressive Corp. (The) ..................................... 584
18,000 RLI Corp. ................................................... 898
18,100 Sun Life Financial, Inc. .................................... 726
23,550 Zenith National Insurance Corp. ............................. 1,086
--------
12,208
INTERNET (1.5%)
17,000 CheckFree Corp.* ............................................ 780
43,000 E*Trade Financial Corp.* .................................... 897
20,000 eBay, Inc.* ................................................. 865
16,400 F5 Networks, Inc.* .......................................... 938
5,000 Google, Inc. Class A* ....................................... 2,075
4,000 Nutri/System, Inc.* ......................................... 144
22,000 Yahoo!, Inc.* ............................................... 862
--------
6,561
MACHINERY (2.1%)
16,700 Actuant Corp. Class A ....................................... 932
14,000 Donaldson Co, Inc. .......................................... 445
8,000 Flowserve Corp.* ............................................ 316
19,200 Gardner Denver, Inc.* ....................................... 947
28,125 Graco, Inc. ................................................. 1,026
19,900 IDEX Corp. .................................................. 818
25,000 JLG Industries, Inc. ........................................ 1,141
25,000 Lennox International, Inc. .................................. 705
20,600 MSC Industrial Direct Co., Inc. Class A ..................... 829
26,000 Roper Industries, Inc. ...................................... 1,027
15,600 Terex Corp.* ................................................ 927
--------
9,113
MANUFACTURED HOUSING/RECREATIONAL VEHICLE (0%)
4,000 Thor Industries, Inc. ....................................... 160
MARITIME (0.4%)
16,700 Alexander & Baldwin, Inc. ................................... 906
17,000 Kirby Corp.* ................................................ 887
--------
1,793
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
11
Value Line Premier Growth Fund, Inc.
Schedule of Investments
- --------------------------------------------------------------------------------
Value
Shares (in thousands)
- --------------------------------------------------------------------------------
MEDICAL SERVICES (5.0%)
14,000 Aetna, Inc. ................................................. $ 1,320
23,000 Amedisys, Inc.* ............................................. 972
23,000 American Healthways, Inc.* .................................. 1,041
8,000 CIGNA Corp. ................................................. 894
23,000 Community Health Systems, Inc.* 882
20,700 Coventry Health Care, Inc.* ................................. 1,179
24,000 DaVita, Inc.* ............................................... 1,215
23,000 Humana, Inc.* ............................................... 1,250
16 Lumenis Ltd.* ............................................... --
5,000 Manor Care, Inc. ............................................ 199
10,000 Pediatrix Medical Group, Inc.* .............................. 886
21,200 Psychiatric Solutions, Inc.* ................................ 1,245
13,000 Quest Diagnostics, Inc. ..................................... 669
24,000 Renal Care Group, Inc.* ..................................... 1,135
18,000 Sierra Health Services, Inc.* ............................... 1,439
18,000 Sunrise Senior Living, Inc.* ................................ 607
28,350 United Surgical Partners
International, Inc.* ........................................ 911
41,850 UnitedHealth Group, Inc. .................................... 2,601
34,400 VCA Antech, Inc.* ........................................... 970
33,000 Ventiv Health, Inc.* ........................................ 779
26,631 WellPoint, Inc.* ............................................ 1,886
--------
22,080
MEDICAL SUPPLIES (7.3%)
28,500 Advanced Medical Optics, Inc.* .............................. 1,191
9,000 Alcon, Inc. ................................................. 1,166
25,000 ArthroCare Corp.* ........................................... 1,054
16,000 Bard (C.R.), Inc. ........................................... 1,055
13,000 Becton Dickinson & Co. ...................................... 781
20,750 Biomet, Inc. ................................................ 759
15,700 Charles River Laboratories International, Inc.* ............. 665
30,600 Cytyc Corp.* ................................................ 864
46,000 Dade Behring Holdings, Inc. ................................. 1,881
18,500 DENTSPLY International, Inc. ................................ 993
19,000 Fisher Scientific International, Inc.* ...................... 1,175
19,000 Haemonetics Corp.* .......................................... 928
56,000 Henry Schein, Inc.* ......................................... 2,444
41,600 Hologic, Inc.* .............................................. 1,578
12,000 IDEXX Laboratories, Inc.* ................................... 864
24,000 Intuitive Surgical, Inc.* ................................... 2,815
13,000 Johnson & Johnson ........................................... 781
22,000 Kyphon, Inc.* ............................................... 898
24,400 LCA-Vision, Inc. ............................................ 1,159
27,000 Owens & Minor, Inc. ......................................... 743
30,000 Palomar Medical Technologies, Inc.* ......................... 1,051
23,000 PolyMedica Corp. ............................................ 770
26,000 ResMed, Inc.* ............................................... 996
34,000 Respironics, Inc.* .......................................... 1,260
28,000 St Jude Medical, Inc.* ...................................... 1,406
22,700 Sybron Dental Specialties, Inc.* ............................ 904
20,000 Varian Medical Systems, Inc.* ............................... 1,007
20,000 Ventana Medical Systems, Inc.* .............................. 847
--------
32,035
METALS & MINING DIVERSIFIED (0.2%)
27,000 Allegheny Technologies, Inc. ................................ 974
METALS FABRICATING (0.2%)
6,600 Chicago Bridge & Iron Co. N.V. (ADR) ........................ 166
13,000 Harsco Corp. ................................................ 878
--------
1,044
NATURAL GAS -- DISTRIBUTION (0.5%)
23,000 AGL Resources, Inc. ......................................... 800
33,600 Southern Union Co.* ......................................... 794
38,000 UGI Corp. ................................................... 783
--------
2,377
NATURAL GAS -- DIVERSIFIED (2.5%)
32,000 Energen Corp. ............................................... 1,162
30,000 Equitable Resources, Inc. ................................... 1,101
10,400 Kinder Morgan, Inc. ......................................... 956
19,000 Newfield Exploration Co.* ................................... 951
17,000 Questar Corp. ............................................... 1,287
74,000 Southwestern Energy Co.* .................................... 2,659
19,000 Western Gas Resources, Inc. ................................. 895
42,776 XTO Energy, Inc. ............................................ 1,880
--------
10,891
NEWSPAPER (0.1%)
10,700 McClatchy Co. Class A ....................................... 632
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12
Value Line Premier Growth Fund, Inc.
December 31, 2005
- --------------------------------------------------------------------------------
Value
Shares (in thousands)
- --------------------------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES (0.2%)
45,000 Staples, Inc. ............................................... $ 1,022
OILFIELD SERVICES/EQUIPMENT (0.6%)
38,000 Cal Dive International, Inc.* ............................... 1,364
22,000 FMC Technologies, Inc.* ..................................... 944
4,000 Hydril* ..................................................... 250
--------
2,558
PACKAGING & CONTAINER (0.7%)
24,000 Ball Corp. .................................................. 953
34,000 CLARCOR, Inc. ............................................... 1,010
43,200 Jarden Corp.* ............................................... 1,303
--------
3,266
PETROLEUM -- INTEGRATED (2.4%)
50,000 Chesapeake Energy Corp. ..................................... 1,587
17,000 ConocoPhillips .............................................. 989
61,000 Denbury Resources, Inc.* .................................... 1,390
23,400 Frontier Oil Corp. .......................................... 878
16,000 Petroleo Brasileiro S.A. .................................... 1,140
5,000 Sasol Ltd. (ADR) ............................................ 178
16,000 Sunoco, Inc. ................................................ 1,254
16,000 Tesoro Corp. ................................................ 985
39,846 Valero Energy Corp. ......................................... 2,056
--------
10,457
PETROLEUM -- PRODUCING (2.2%)
16,800 Apache Corp. ................................................ 1,151
20,200 Cimarex Energy Co.* ......................................... 869
6,000 Comstock Resources, Inc.* ................................... 183
24,800 Enbridge, Inc. .............................................. 775
66,000 Range Resources Corp. ....................................... 1,738
15,500 Tenaris S.A. (ADR) .......................................... 1,775
32,000 Ultra Petroleum Corp.* ...................................... 1,786
29,000 Unit Corp.* ................................................. 1,596
--------
9,873
PHARMACY SERVICES (1.7%)
40,000 Caremark Rx, Inc.* .......................................... 2,072
8,000 CVS Corp. ................................................... 211
20,000 Express Scripts, Inc.* ...................................... 1,676
20,000 Longs Drug Stores Corp. ..................................... 728
18,000 Medco Health Solutions, Inc.* ............................... 1,005
15,000 Omnicare, Inc. .............................................. 858
20,000 Walgreen Co. ................................................ 885
--------
7,435
PRECISION INSTRUMENT (0.2%)
29,300 Checkpoint Systems, Inc.* ................................... 722
PUBLISHING (0.6%)
18,700 Banta Corp. ................................................. 931
25,200 Donnelley (R.R) & Sons Co. .................................. 862
17,000 McGraw-Hill Cos, Inc. (The) ................................. 878
2,200 Meredith Corp. .............................................. 115
--------
2,786
R.E.I.T. (1.0%)
13,000 American Home Mortgage Investment Corp. ..................... 423
30,000 Brookfield Properties Co. ................................... 883
2,300 Essex Property Trust, Inc. .................................. 212
20,000 General Growth Properties, Inc. ............................. 940
6,000 Global Signal, Inc. ......................................... 259
14,500 Pan Pacific Retail Properties, Inc. 970
21,000 Prologis .................................................... 981
--------
4,668
RAILROAD (0.8%)
13,500 Burlington Northern Santa Fe Corp. .......................... 956
11,450 Canadian National Railway Co. ............................... 916
15,000 Genesee & Wyoming, Inc. Class A* ............................ 563
39,000 Kansas City Southern* ....................................... 953
--------
3,388
RECREATION (0.7%)
45,000 SCP Pool Corp. .............................................. 1,675
56,250 Shuffle Master, Inc.* ....................................... 1,414
--------
3,089
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
13
Value Line Premier Growth Fund, Inc.
Schedule of Investments
- --------------------------------------------------------------------------------
Value
Shares (in thousands)
- --------------------------------------------------------------------------------
RESTAURANT (2.0%)
33,750 Applebees International, Inc. ............................... $ 762
24,000 Cheesecake Factory, Inc. (The)* ............................. 897
27,000 Darden Restaurants, Inc. .................................... 1,050
16,500 Panera Bread Co. Class A* ................................... 1,084
28,500 RARE Hospitality International, Inc.* ....................... 866
84,375 Sonic Corp.* ................................................ 2,489
18,000 Wendy's International, Inc. ................................. 995
19,000 Yum! Brands, Inc. ........................................... 891
--------
9,034
RETAIL -- AUTOMOTIVE (0.5%)
24,900 Advance Auto Parts, Inc.* ................................... 1,082
33,600 O'Reilly Automotive, Inc.* .................................. 1,076
--------
2,158
RETAIL -- SPECIAL LINES (3.0%)
21,000 Bed Bath & Beyond, Inc.* .................................... 759
48,000 Chico's FAS, Inc.* .......................................... 2,109
31,000 Claire's Stores, Inc. ....................................... 906
50,000 Coach, Inc.* ................................................ 1,667
43,500 Coldwater Creek, Inc.* ...................................... 1,328
22,500 Dick's Sporting Goods, Inc.* ................................ 748
16,000 Dress Barn, Inc. (The)* ..................................... 618
25,000 Guitar Center, Inc.* ........................................ 1,250
23,000 Michaels Stores, Inc. ....................................... 813
19,000 Pantry, Inc. (The)* ......................................... 893
51,000 Quiksilver, Inc.* ........................................... 706
48,000 Urban Outfitters, Inc.* ..................................... 1,215
--------
13,012
RETAIL BUILDING SUPPLY (1.0%)
28,000 Fastenal Co. ................................................ 1,097
19,000 Lowe's Cos, Inc. ............................................ 1,267
19,200 Tractor Supply Co.* ......................................... 1,017
14,700 Watsco, Inc. ................................................ 879
--------
4,260
RETAIL STORE (1.1%)
11,000 Federated Department Stores, Inc. ........................... 730
20,000 J.C. Penney Co, Inc. Holding Co. ............................ 1,112
33,000 Nordstrom, Inc. ............................................. 1,234
15,400 Sears Holdings Corp.* ....................................... 1,779
--------
4,855
SECURITIES BROKERAGE (1.1%)
37,000 Ameritrade Holding Corp.* ................................... 888
8,000 Bear Stearns Cos, Inc. (The) ................................ 924
28,000 Investment Technology Group, Inc.* .......................... 992
7,500 Legg Mason, Inc. ............................................ 898
7,000 Lehman Brothers Holdings, Inc. .............................. 897
5,000 Raymond James Financial, Inc. ............................... 189
--------
4,788
SEMICONDUCTOR (0.2%)
43,000 Motorola, Inc. .............................................. 971
SHOE (0.8%)
30,200 Genesco, Inc.* .............................................. 1,172
25,000 K-Swiss, Inc. Class A ....................................... 811
9,000 NIKE, Inc. Class B .......................................... 781
35,000 Wolverine World Wide, Inc. .................................. 786
--------
3,550
STEEL -- GENERAL (0.2%)
11,500 IPSCO, Inc. ................................................. 954
TELECOMMUNICATION SERVICES (1.1%)
35,750 American Tower Corp. Class A* ............................... 969
39,000 NII Holdings, Inc. Class B* ................................. 1,703
25,500 OAO Vimpel-Communications (ADR)* ............................ 1,128
21,400 West Corp.* ................................................. 902
--------
4,702
TELECOMMUNICATIONS EQUIPMENT (0.7%)
22,700 Anixter International, Inc. ................................. 888
24,000 Comtech Telecommunications Corp.* ........................... 733
25,400 Marvell Technology Group Ltd.* .............................. 1,425
--------
3,046
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14
Value Line Premier Growth Fund, Inc.
December 31, 2005
- --------------------------------------------------------------------------------
Value
Shares (in thousands)
- --------------------------------------------------------------------------------
THRIFT (1.4%)
11,000 FirstFed Financial Corp.* ................................... $ 600
22,000 Golden West Financial Corp. ................................. 1,452
89,768 Hudson City Bancorp, Inc. ................................... 1,088
3,000 People's Bank ............................................... 93
33,880 Washington Federal, Inc. .................................... 779
21,000 Washington Mutual, Inc. ..................................... 914
17,000 Westcorp .................................................... 1,132
--------
6,058
TRUCKING/TRANSPORTATION LEASING (2.1%)
16,500 CNF, Inc. ................................................... 922
23,500 Forward Air Corp. ........................................... 861
32,500 Heartland Express, Inc. ..................................... 659
42,000 Hunt (J.B.) Transport Services, Inc. ........................ 951
44,700 Knight Transportation, Inc. ................................. 927
35,400 Laidlaw International, Inc. ................................. 822
76,000 Landstar System, Inc. ....................................... 3,172
36,650 Werner Enterprises, Inc. .................................... 722
9,000 Yellow Roadway Corp.* ....................................... 402
--------
9,438
WATER UTILITY (0.3%)
41,333 Aqua America, Inc. .......................................... 1,128
WIRELESS NETWORKING (0.7%)
86,000 Alamosa Holdings, Inc.* ..................................... 1,600
25,000 Intermec, Inc.* ............................................. 845
12,700 Itron, Inc.* ................................................ 509
--------
2,954
TOTAL COMMON STOCK AND TOTAL INVESTMENT
SECURITIES (95.0%) (Cost $275,128) ........................ $419,106
--------
Value
Principal (in thousands
Amount except per
(in thousands) share amount)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (6.1%)
$12,800 With Morgan Stanley & Co., 3.34%, dated 12/30/05,
due 1/3/06, delivery value $12,804,750
(collateralized by $13,095,000 U.S.
Treasury Notes 2.25%, due 4/30/06, with
a value of $13,059,945).................................... $ 12,800
13,900 With UBS Warburg, LLC, 3.47%, dated 12/30/05,
due 1/3/06, delivery value $13,905,359
(collateralized by $9,812,000 U.S.
Treasury Notes 9.875%, due 11/15/15, with
a value of $14,145,028).................................... 13,900
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $26,700) ............................................ 26,700
--------
EXCESS OF LIABILITIES OVER CASH AND OTHER
ASSETS (-1.1%) ..................................................... (4,692)
--------
NET ASSETS (100%) .................................................... $441,114
--------
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING
SHARE ($441,114,481 [divided by] 17,227,896 shares outstanding) .... $ 25.60
========
* Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
15
Value Line Premier Growth Fund, Inc.
Statement of Assets and Liabilities
at December 31, 2005
- --------------------------------------------------------------------------------
(In thousands
except per share
amount)
----------------
Assets:
Investment securities, at value (Cost -- $275,128) ............ $419,106
Repurchase agreements (Cost -- $26,700) ....................... 26,700
Cash .......................................................... 89
Receivable for capital shares sold ............................ 534
Receivable for securities sold ................................ 441
Interest and dividends receivable ............................. 281
Prepaid expenses .............................................. 193
--------
Total Assets ............................................. 447,344
--------
Liabilities:
Payable for securities purchased .............................. 4,897
Payable for capital shares repurchased ........................ 853
Accrued expenses:
Advisory fee ............................................... 282
Service and distribution plan fees ......................... 94
Directors' fees ............................................ 1
Other ...................................................... 103
--------
Total Liabilities ........................................ 6,230
--------
Net Assets .................................................... $441,114
========
Net assets consist of:
Capital stock, at $1.00 par value (authorized
50,000,000, outstanding 17,227,896 shares) ................. $ 17,228
Additional paid-in capital .................................... 271,845
Undistributed net investment income ........................... 1
Accumulated net realized gain on investments .................. 8,062
Net unrealized appreciation of investments
and foreign exchange transactions .......................... 143,978
--------
Net Assets .................................................... $441,114
========
Net Asset Value, Offering and Redemption Price
Per Outstanding Share ($441,114,481
[divided by] 17,227,896 shares outstanding) ................ $ 25.60
========
Statement of Operations
for the Year Ended December 31, 2005
- --------------------------------------------------------------------------------
(In thousands)
--------------
Investment Income:
Dividends (Net of foreign withholding tax of $34) ............... $ 3,546
Interest ........................................................ 744
--------
Total Income ................................................. 4,290
--------
Expenses:
Advisory fee .................................................... 3,006
Service and distribution plan fees .............................. 1,002
Transfer agent .................................................. 146
Custodian fees .................................................. 89
Auditing and legal fees ......................................... 66
Printing ........................................................ 47
Postage ......................................................... 46
Insurance ....................................................... 35
Registration and filing fees .................................... 27
Directors' fees and expenses .................................... 24
Telephone ....................................................... 24
Proxy fee expense ............................................... 3
Other ........................................................... 4
--------
Total Expenses Before Custody Credits ........................ 4,519
Less: Custody Credits ........................................ (3)
--------
Net Expenses ................................................. 4,516
--------
Net Investment Loss ............................................. (226)
--------
Net Realized and Unrealized Gain
on Investments and Foreign Exchange Transactions:
Net Realized Gain ............................................ 24,672
Change in Net Unrealized Appreciation ........................ 20,179
--------
Net Realized Gain and Change in Net Unrealized
Appreciation on Investments and Foreign Exchange
Transactions ................................................. 44,851
--------
Net Increase in Net Assets from Operations ...................... $ 44,625
========
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16
Value Line Premier Growth Fund, Inc.
Statement of Changes in Net Assets for the
Year Ended December 31, 2005 and for the Year Ended December 31, 2004
- --------------------------------------------------------------------------------
Year Ended Year Ended
December 31, December 31,
2005 2004
-------------------------------
(In thousands)
Operations:
Net investment loss ............................................... $ (226) $ (1,048)
Net realized gain on investments .................................. 24,672 28,332
Change in net unrealized appreciation ............................. 20,179 31,429
-------------------------------
Net increase in net assets from operations ........................ 44,625 58,713
-------------------------------
Distributions to Shareholders:
Net realized gain from investment transactions .................... (23,222) (6,829)
-------------------------------
Capital Share Transactions:
Proceeds from sale of shares ...................................... 89,521 68,721
Net proceeds from reinvestment of distributions to shareholders ... 21,844 6,513
Cost of shares repurchased ........................................ (75,684) (52,913)
-------------------------------
Net increase from capital share transactions ...................... 35,681 22,321
-------------------------------
Total Increase in Net Assets ....................................... 57,084 74,205
Net Assets:
Beginning of year ................................................. 384,030 309,825
-------------------------------
End of year ....................................................... $ 441,114 $ 384,030
===============================
Undistributed net investment income, at end of year ................ $ 1 $ 2
===============================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
17
Value Line Premier Growth Fund, Inc.
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Value Line Premier Growth Fund, Inc. (the "Fund") (formerly known as The Value
Line Special Situations Fund, Inc.) is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company whose primary investment objective is long-term growth of capital. The
Fund invests primarily in a diversified portfolio of U.S. equity securities with
favorable growth potential.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements.
(A) Security Valuation. Securities listed on a securities exchange are valued at
the closing sales prices on the date as of which the net asset value is being
determined. Securities traded on the NASDAQ Stock Market are valued at the
NASDAQ Official Closing Price. 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. Short-term instruments with maturities of
60 days or less at the date of purchase are valued at amortized cost which
approximates market value. Short-term instruments with maturities greater than
60 days at the date of purchase are valued at the midpoint between the latest
available and representative asked and bid prices, and commencing 60 days prior
to maturity such securities are valued at amortized cost. Securities for which
market quotations are not readily available or that 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.
In addition, the Fund may use the fair value of a security when the closing
market price on the primary exchange where the security is traded no longer
accurately reflects the value of a security due to factors affecting one or more
relevant securities markets or the specific issuer.
(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, it is the Fund's policy to mark-to-market
the collateral 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 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.
Dividends received in excess of income are recorded as a reduction of cost of
investments and/or realized gain on Real Estate Investment Trusts (REITs).
- --------------------------------------------------------------------------------
18
Value Line Premier Growth Fund, Inc.
December 31, 2005
- --------------------------------------------------------------------------------
(E) Foreign Currency Translation. Assets and liabilities which are denominated
in foreign currencies are translated to U.S. dollars at the prevailing rates of
exchange. The Fund does not isolate changes in the value of investments caused
by foreign exchange rate differences from the changes due to other
circumstances.
Income and expenses are translated to U.S dollars based upon the rates of
exchange on the respective dates of such transactions.
Net realized foreign exchange gains or losses arise from currency gains or
losses realized between the trade and settlement dates on securities
transactions, the differences between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities, other than investments, at the end of fiscal period, resulting from
changes in the exchange rates.
(F) Representations and Indemnifications. In the normal course of business the
Fund enters into contracts that contain a variety of representations and
warranties which provide general indemnifications. The Fund's maximum exposure
under these arrangements is unknown, as this would involve future claims that
may be made against the Fund that have not yet occurred. However, based on
experience, the Fund expects the risk of loss to be remote.
2. Capital Share Transactions, and Distributions to Shareholders
Transactions in capital stock were as follows (in thousands except per share
amounts):
Year Ended Year Ended
December 31, December 31,
2005 2004
------------------------------
Shares sold ................................... 3,563 3,105
Shares issued to shareholders in
reinvestment of distributions ............... 852 274
------------------------------
4,415 3,379
Shares repurchased ............................ (3,034) (2,397)
------------------------------
Net increase .................................. 1,381 982
==============================
Distributions per share from net
realized gains ............................. $ 1.42 $ .4397
==============================
3. Purchases and Sales of Securities
Purchases and sales of investment securities, excluding short-term securities,
were as follows:
Year Ended
December 31, 2005
-----------------
(in thousands)
Purchases:
Investment Securities .................................... $187,679
--------
Sales
Investment Securities .................................... $166,330
--------
4. Income Taxes
At December 31, 2005, information on the tax components of capital is as
follows:
(in thousands)
Cost of investments for tax purposes ........................ $ 301,844
=========
Gross tax unrealized appreciation ........................... $ 145,999
Gross tax unrealized depreciation ........................... (2,037)
---------
Net tax unrealized appreciation
on investments ........................................... $ 143,962
=========
Undistributed long-term gain ................................ $ 8,082
=========
- --------------------------------------------------------------------------------
19
Value Line Premier Growth Fund, Inc.
Notes to Financial Statements December 31, 2005
- --------------------------------------------------------------------------------
Net unrealized gain (loss) differ for financial statements and tax purposes
primarily due to wash sales.
The tax composition of distributions to shareholders for the years ended
December 31, 2005 and December 31, 2004 were all from net long-term capital
gains.
Permanent book-tax differences relating to the current year were reclassified
within the composition of the net asset accounts. The Fund decreased accumulated
net investment loss by approximately $225,000, decreased accumulated net
realized gain by approximately $9,000, and decreased additional paid-in-capital
by $216,000. Net assets were not affected by this reclassification.
5. Investment Advisory Fee, Service and Distribution Fees, and Transactions
With Affiliates
An advisory fee of $3,005,823 was paid or payable to Value Line, Inc., the
Fund's investment adviser (the "Adviser"), for the year ended December 31, 2005.
This was computed at the rate of 3/4 of 1% of the average daily net assets
during the year and paid monthly. The Adviser provides research, investment
programs, supervision of the investment portfolio and pays costs of
administrative services, office space, equipment and compensation of
administrative, bookkeeping and clerical personnel necessary for managing the
affairs of the Fund. The Adviser also provides persons, satisfactory to the
Fund's Board of Directors, to act as officers and employees 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, 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 year ended
December 31, 2005, fees amounting to $1,001,941 were paid or payable to the
Distributor under this Plan.
For the year ended December 31, 2005, the Fund's expenses were reduced by $3,243
under a custody credit agreement with the Custodian.
Certain officers and directors of the Adviser and the Distributor are also
officers and directors of the Fund.
The Adviser and/or affiliated companies and the Value Line, Inc. Profit Sharing
and Savings Plan owned 162,711 shares of the Fund's capital stock, representing
0.94% of the outstanding shares at December 31, 2005. In addition, the officers
and directors of the Fund as a group owned 2,955 shares of the Fund,
representing .02% of the outstanding shares.
- --------------------------------------------------------------------------------
20
Value Line Premier Growth Fund, Inc.
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each year:
Years Ended December 31,
-------------------------------------------------------------------------
2005 2004 2003 2002 2001
-------------------------------------------------------------------------
Net asset value, beginning of year .......... $ 24.23 $ 20.84 $ 16.08 $ 18.95 $ 23.55
-------------------------------------------------------------------------
Income (loss) from Investment Operations:
Net investment loss ........................ (0.01) (.06) (.04) (.05) (.09)
Net gains or losses on securities (both
realized and unrealized) ................. 2.80 3.89 4.80 (2.82) (4.07)
-------------------------------------------------------------------------
Total income from investment operations .... 2.79 3.83 4.76 (2.87) (4.16)
-------------------------------------------------------------------------
Less distributions:
Distributions from net realized gains ...... (1.42) (.44) -- -- (.44)
-------------------------------------------------------------------------
Net asset value, end of year ................ $ 25.60 $ 24.23 $ 20.84 $ 16.08 $ 18.95
=========================================================================
Total return ................................ 11.49% 18.42% 29.60% (15.15)% (17.65)%
=========================================================================
Ratios/Supplemental Data:
Net assets, end of year (in thousands) ...... $ 441,114 $ 384,030 $ 309,825 $ 242,394 $ 261,829
Ratio of expenses to average net assets(1) .. 1.13% 1.15% 1.18% 1.20% 1.14%
Ratio of net investment loss to average
net assets ................................. (0.06)% (0.31)% (0.21)% (0.31)% (0.39)%
Portfolio turnover rate ..................... 44% 54% 52% 66% 88%
(1) Ratios reflect expenses grossed up for custody credit arrangement. The
ratios of expenses to average net assets net of custody credits would not
have changed.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
21
Value Line Premier Growth Fund, Inc.
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders
of Value Line Premier Growth Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Value Line Premier Growth Fund,
Inc. (formerly The Value Line Special Situations Fund, Inc.) (the "Fund") at
December 31, 2005, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended
and the financial highlights for each of the five years in the period then
ended, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at December 31, 2005 by correspondence with the custodian and
brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 21, 2006
- --------------------------------------------------------------------------------
22
Value Line Premier Growth Fund, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Federal Tax Status of Distributions (unaudited)
During the calendar year 2005, the Fund distributed $23,222,282 of long-term
capital gain to its shareholders.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
23
Value Line Premier Growth Fund, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Special Meeting of Shareholders (unaudited)
A special meeting of the Fund's shareholders originally scheduled for September
29, 2005, was held on October 5, 2005. The meeting was held for the following
purpose: to approve a reclassification of the Fund's goal and principal
investment strategy, as well as changes to the principal investment strategy.
The following shareholder vote took place:
For: 6,600,677.6130
Against: 1,104,193.9170
Abstain: 375,150.1440
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
24
Value Line Premier Growth Fund, Inc.
- --------------------------------------------------------------------------------
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at
http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference
Room in Washington, D.C. Information on the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Fund uses to determine
how to vote proxies relating to portfolio securities, and information regarding
how the Fund voted these proxies during the most recent 12-month period ended
June 30 is available through the Fund's website at http://www.vlfunds.com and
on the SEC's website at http://www.sec.gov. The description of the policies and
procedures is also available without charge, upon request, by calling
1-800-243-2729.
- --------------------------------------------------------------------------------
25
Value Line Premier Growth Fund, Inc.
Management of the Fund
- --------------------------------------------------------------------------------
MANAGEMENT INFORMATION
The business and affairs of the Fund are managed by the Fund's officers under
the direction of the Board of Directors. The following table sets forth
information on each Director and Officer of the Fund. Each Director serves as a
director or trustee of each of the 14 Value Line Funds. Each Director serves
until his or her successor is elected and qualified.
Principal
Occupation Other
Length of During the Directorships
Name, Address, and Age Position Time Served Past 5 Years Held by Director
- --------------------------------------------------------------------------------------------------------------------
Interested Director*
- --------------------
Jean Bernhard Buttner Chairman of the Since 1983 Chairman, President and Chief Value Line, Inc.
Age 71 Board of Directors Executive Officer of Value Line,
and President 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").
- --------------------------------------------------------------------------------------------------------------------
Non-Interested Directors*
- -------------------------
John W. Chandler Director Since 1991 Consultant, Academic None
18 Victoria Lane Search Consultation Service,
Lanesboro, MA 01237 Inc., (1992-2004) Trustee
Age 82 Emeritus and Chairman
(1993-1994) of the Board of
Trustees of Duke University;
President Emeritus, Williams
College.
- --------------------------------------------------------------------------------------------------------------------
Frances T. Newton Director Since 2000 Customer Support Analyst, None
4921 Buckingham Drive Duke Power Company.
Charlotte, NC 28209
Age 64
- --------------------------------------------------------------------------------------------------------------------
Francis C. Oakley Director Since 2000 Professor of History, Berkshire Life
54 Scott Hill Road Williams College, 1961 to Insurance
Williamstown, MA 01267 present. President Emeritus Company of
Age 74 since 1994 and President, America
1985-1994; Chairman
(1993-1997) and Interim
President (2002) of the American
Council of Learned Societies.
Trustee since 1997 and Chairman
of the Board since 2006, National
Humanities Center.
- --------------------------------------------------------------------------------------------------------------------
David H. Porter Director Since 1997 Visiting Professor of Classics, None
5 Birch Run Drive Williams College, since 1999;
Saratoga Springs, NY 12866 President Emeritus, Skidmore
Age 70 College since 1999 and President,
1987-1998.
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
26
Value Line Premier Growth Fund, Inc.
Management of the Fund
- --------------------------------------------------------------------------------
Principal
Occupation Other
Length of During the Directorships
Name, Address, and Age Position Time Served Past 5 Years Held by Director
- --------------------------------------------------------------------------------------------------------------------------
Paul Craig Roberts Director Since 1983 Chairman, Institute for Political A. Schulman Inc.
169 Pompano St. Economy. (plastics)
Panama City Beach, FL 32413
Age 67
- --------------------------------------------------------------------------------------------------------------------------
Nancy-Beth Sheerr Director Since 1996 Senior Financial Advisor, None
1409 Beaumont Drive Veritable L.P. (investment adviser)
Gladwyne, PA 19035 since 2004; Senior Financial
Age 57 Advisor, Hawthorne, 2001-2004.
- --------------------------------------------------------------------------------------------------------------------------
Officers
- --------
Stephen E. Grant Vice President Since 1996 Portfolio Manager with the
Age 52 Advisor.
- --------------------------------------------------------------------------------------------------------------------------
David T. Henigson Vice President, Since 1994 Director, Vice President and
Age 48 Secretary and Compliance Officer of the
Chief Compliance Adviser. Director and Vice
Officer President of the Distributor. Vice
President, Secretary, and Chief
Compliance Officer of each of
the 14 Value Line Funds.
- --------------------------------------------------------------------------------------------------------------------------
Stephen R. Anastasio Treasurer Since 2005 Controller of the Adviser until
Age 46 2003; Chief Financial Officer
of the Adviser, 2003-2005;
Treasurer of the Adviser
since 2005.
- --------------------------------------------------------------------------------------------------------------------------
Howard A. Brecher Assistant Secretary/ Since 2005 Director, Vice President and
Age 51 Assistant Treasurer 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 Fund's Statement of Additional Information (SAI) includes additional
information about the Fund's directors and is available, without charge, upon
request by calling 1-800-243-2729.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
27
Value Line Premier Growth Fund, Inc.
The Value Line Family of Funds
- --------------------------------------------------------------------------------
1950 -- The Value Line Fund seeks long-term growth of capital. Current income
is a secondary objective.
1952 -- Value Line Income and Growth Fund's primary investment objective is
income, as high and dependable as is consistent with reasonable risk. Capital
growth to increase total return is a secondary objective.
1956 -- Value Line Premier Growth 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. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund.
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 may be subject to state and local taxes and the Alternative
Minimum Tax (if applicable).
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. The Trust may be
subject to state and local taxes and the Alternative Minimum Tax (if
applicable).
1987 -- Value Line Strategic Asset Management Trust* seeks to achieve a high
total investment return consistent with reasonable risk.
1993 -- Value Line Emerging Opportunities 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.
* 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 1-800-243-2729, 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.
- --------------------------------------------------------------------------------
28
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 BFDS
P.O. Box 219729
Kansas City, MO 64121-9729
INDEPENDENT PricewaterhouseCoopers LLP
REGISTERED PUBLIC 300 Madison Avenue
ACCOUNTING FIRM New York, NY 10017
LEGAL COUNSEL Peter D. Lowenstein, Esq.
Two Sound View Drive, Suite 100
Greenwich, CT 06830
DIRECTORS 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
Stephen E. Grant
Vice President
David T. Henigson
Vice President/Secretary
Stephen R. Anastasio
Treasurer
Howard A. Brecher
Assistant Secretary/
Assistant Treasurer
This 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 Trust (obtainable from the Distributor).
#534697
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 2005 - $55,980
(b) Audit-Related fees - None.
(c) Tax Preparation Fees 2005 -$7,200
(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.
(e)(2) Not applicable.
(f) Not applicable.
(g) Aggregate Non-Audit Fees 2005 -$7,200
(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 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/ Jean B. Buttner
---------------------------------
Jean B. Buttner, President
Date: 3/10/06
------------------
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:3/10/06
---------------