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Mutual Fund Spotlight: Value Line Capital Appreciation Fund [VALIX]


By: Ted Black, CFP©
Summer 2019 (Vol. 37, No. 2)

The Value Line Capital Appreciation fund (VALIX – Investor Class) is categorized as a Growth & Income or Balanced fund. The funds primary emphasis is on growth, with a lesser emphasis on generating income. The Fund allocates its assets amongst equity securities (Stocks), fixed income securities (Bonds) and money market instruments.

To achieve the Fund’s goals, the Adviser invests not less than 70% of the Fund’s net assets in common or preferred stocks or securities convertible into common stock which may or may not pay dividends. The balance of the Fund’s net assets is primarily invested in U.S. government securities, investment grade debt, other fixed income securities or cash equivalents.

In contrast to many other balanced funds that have static asset allocation targets, this fund takes a flexible approach to asset allocation in an effort to capture market opportunities.

As of July 31, 2019, the fund was invested 83.89% in Stocks, 11.62% in Bonds, with roughly 5% in cash and equivalents. The fund is co-managed by Cindy Starke and Liane Rosenberg, both having stellar resumes and extensive experience managing investments. Ms. Starke manages the Stock portion of the portfolio and Ms. Rosenberg manages the Bond portion of the portfolio.

On the Stock side, the fund purchases primarily large-cap equities in businesses with high barriers of entry that have fundamentally strong market positions in growing industries which may enable those companies to increase future sales and earnings at an above average pace in the coming years.

The fund’s largest positions are in the Information Technology and Healthcare sectors. Its top ten largest holdings include companies such as Amazon, Alphabet (Google), Visa and Alexion Pharmaceuticals.

Given its enviable track record and focus on growth, for investors with a long-term investment horizon and patience to wait out the rough periods in the stock market … this fund invests at least 70% of the portfolio in Stocks … the Value Line Capital Appreciation fund may make for a solid addition to one’s portfolio.

If you’re interested in this fund, or would like a portfolio review to determine if this fund might be an appropriate addition to your portfolio, please call Ted Black, CFP® at 888-878-0001, extension 3.

Performance annualized and updated through 07/31/2019: 1-Year: +7.52%; 3-Year: +13.05%; 5-Year: +9.36%. The gross annual expense ratio is 1.12%.

Statistics and information provided by Morningstar and Value Line Funds. Please visit the Value Line Funds website at https://vlfunds.com for the most recent performance information. The principal value and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns shown, unless otherwise indicated, are total returns, including any capital gains or losses and all dividend and capital gains distributions. The performance data quoted represents past performance and in no way guarantees future results. Mutual funds are not FDIC insured.

Mutual funds are sold by prospectus. An investor should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. Please contact our office at 888-878-0001 to obtain a prospectus. Please read the prospectus carefully before you invest or send money.


Advisory services offered through Royal Palm Investment Advisors, Inc., a Registered Investment Advisor.