stocks have shown excel-
lent long-term growth
As you can see below, the performance of small capitalization common stocks has far outpaced the returns of large companies' stocks and fixed income investments over the long-term.*
Small Company Stocks 12.2%
Large Company Stocks 10.2%
Long Term Gov't. Bonds 4.8%
Source: ©Stocks, Bonds, Bills, and Inflation 1995
YearbookTM, Ibbotson Associates, Chicago (annually updates work by Roger G. Ibbotson and Rex A. Sinquefield). Used with permission. All rights reserved. Data
from 1926-1994.
The Value Line Emerging Opportunities Fund is designed to achieve long-term growth of capital through investment primarily in these small-cap
common stocks. Of course, there is no guarantee that the Fund will achieve its objective, and while investments in smaller companies may present more
opportunities for growth, they also may involve greater risks and price volatility than customarily associated with more established companies.
When shares are redeemed, they may be worth more or less than the original cost.
It is important to note that while investments in smaller companies may present more opportunities for growth, they also involve greater risks
than customarily are associated with more established companies.
*Of course, long-term Government bonds are guaranteed by the U.S. Government as to both principal and interest, and common stock investments involve greater risks than bonds. Small cap stocks are represented by Ibbotson as the fifth capitalization quintile of stocks on the NYSE for 1926-1991 and the performance of the Dimensional Fund Advisors (DFA) Small Company Fund thereafter. Large company stocks are represented by the Standard & Poor's 500 Index. Both indexes are unmanaged, and it is not possible to invest in an index. The table is not representative of an investment in the Fund and past performance is no guarantee of future results.
institutional-quality
research
Most smaller companies are not widely followed by "Wall Street," and so intensive research can provide a big advantage.
The Value Line Emerging Opportunities Fund managers make decisions for the Fund's investors using data from the same Value Line analysts widely acclaimed for their quality research and the same proprietary computer models, including the Value Line TimelinessTM Ranking System, the Value Line PerformanceTM Ranking System, and the Value Line Small-Capitalization Stock Ranking System, that we use for our conservative corporate and institutional clients.
The Fund is well diversified across economic and industry sectors. Its investment strategy emphasizes the purchase of small cap stocks that are generating exceptionally good earnings momentum, have stock price momentum that outpaces the overall market, and are trading at attractive valuations.
