Value Line Core Bond Fund to Liquidate Amid High Costs, Small Asset Base

TL;DR

**Sell your Value Line Core Bond Fund shares now; this liquidation is a forced taxable event driven by uncompetitive size and high costs.**

AI Summary

Value Line Core Bond Fund, a Massachusetts business trust, is proposing its liquidation and termination due to its small asset size, which prevents it from achieving economies of scale and results in higher operating costs for shareholders. As of July 31, 2025, the Fund's net assets were approximately $35 million. The Trustees, including all independent Trustees, unanimously approved the Plan of Liquidation and Termination on September 18, 2025, recommending shareholders vote 'FOR' the proposal at a Special Meeting on November 14, 2025. The Fund's expense ratio for fiscal year 2024 was 1.26% before waivers, significantly higher than the 0.80% Expense Limitation through May 1, 2026. The estimated aggregate cost of liquidation is approximately $140,000, including $20,000 for proxy solicitation, which will be split between the Fund and EULAV Asset Management, the Adviser. The Adviser will waive its management fee from the Trustees' decision date through liquidation to partially offset these costs. Shareholders of record as of October 1, 2025, will vote on the proposal, with liquidation expected by the end of November 2025 if approved.

Why It Matters

This liquidation signals a failure for Value Line Core Bond Fund to achieve competitive scale, directly impacting its 2,652,889 shareholders who will receive a taxable distribution. For investors, this means a forced exit and potential capital gains or losses, requiring them to reallocate their capital. The decision highlights the increasing pressure on smaller funds in the competitive asset management industry, where economies of scale are crucial for managing expense ratios. It also underscores the importance of fund size and operational efficiency for long-term viability, potentially leading to further consolidation or closures among smaller, less competitive funds.

Risk Assessment

Risk Level: medium — The risk level is medium because while the liquidation offers a clear exit, it presents immediate tax consequences for shareholders in taxable accounts, who will realize a gain or loss on their shares. Furthermore, if the proposal is not approved, the Fund's Trustees would consider other alternatives, potentially including another liquidation proposal with additional costs borne solely by shareholders, as the Adviser's fee waiver would cease.

Analyst Insight

Investors should immediately assess their tax basis in Value Line Core Bond Fund shares to understand potential capital gains or losses from the liquidating distribution. Consider consulting a tax advisor to plan for the federal income tax consequences, especially if holding shares in a taxable account. Be prepared to reallocate the distributed capital into new investment vehicles.

Key Numbers

• $35M — Net Assets (As of July 31, 2025, indicating small size)
• 1.26% — Expense Ratio (For fiscal year ended December 31, 2024, before contractual waiver, highlighting high costs)
• 0.80% — Expense Limitation (Contractual limit on operating expenses through May 1, 2026)
• $140K — Estimated Liquidation Costs (Aggregate expenses for liquidation, split between Fund and Adviser)
• 2,652,889 — Shares Outstanding (As of October 1, 2025, representing voting power)
• November 14, 2025 — Special Meeting Date (Date shareholders vote on liquidation)
• October 1, 2025 — Record Date (Shareholders of record entitled to vote)
• September 18, 2025 — Trustees' Approval Date (Date Trustees approved the Plan of Liquidation)

Key Players & Entities

• Value Line Core Bond Fund (company) — Registrant proposing liquidation
• EULAV Asset Management (company) — Adviser to the Fund, splitting liquidation costs
• Mitchell E. Appel (person) — President of Value Line Core Bond Fund
• Wilmer Cutler Pickering Hale and Dorr LLP (company) — Location of the Special Meeting of Shareholders
• Broadridge Financial Solutions, Inc. (company) — Corporate services firm assisting with proxy solicitation
• Securities and Exchange Commission (regulator) — Federal agency requiring filings
• $35 million (dollar_amount) — Net assets of the Fund as of July 31, 2025
• $140,000 (dollar_amount) — Estimated aggregate expenses of liquidating and dissolving the Fund
• $20,000 (dollar_amount) — Estimated proxy solicitation costs
• 0.80% (dollar_amount) — Expense Limitation of the Fund's total annual operating expenses through May 1, 2026

FAQ

Risk Factors

• Small Asset Size and High Operating Costs [high — financial]: The Fund's net assets of approximately $35 million as of July 31, 2025, are too small to achieve economies of scale. This results in a higher expense ratio for shareholders, which was 1.26% before waivers in fiscal year 2024, significantly above the contractual expense limitation of 0.80%.
• Liquidation Costs [medium — operational]: The estimated aggregate cost of liquidation is approximately $140,000, including $20,000 for proxy solicitation. These costs will be borne partially by the Fund and partially by the Adviser, EULAV Asset Management, though the Adviser will waive management fees to offset some expenses.

Industry Context

The mutual fund industry, particularly in fixed income, faces intense competition and pressure on fees. Smaller funds often struggle to achieve economies of scale, leading to higher expense ratios compared to larger, more established funds. This can make them less competitive and may necessitate consolidation or liquidation if asset levels become insufficient to cover operating costs efficiently.

Regulatory Implications

The liquidation process must adhere to SEC regulations and the Investment Company Act of 1940. Proper disclosure to shareholders, fair distribution of assets, and accurate reporting of any gains or losses are critical to avoid regulatory scrutiny.

What Investors Should Do

1. Vote 'FOR' the liquidation and termination proposal.
2. Review tax implications of liquidation.
3. Ensure your proxy is submitted by the deadline.

Key Dates

• 2025-10-01: Record Date — Shareholders of record on this date are entitled to vote at the Special Meeting.
• 2025-10-08: Mailing Date of Proxy Materials — Shareholders receive the Notice of Special Meeting and Proxy Statement.
• 2025-09-18: Trustees' Approval Date — The Trustees unanimously approved the Plan of Liquidation and Termination.
• 2025-11-14: Special Meeting Date — Shareholders vote on the proposed liquidation and termination of the Fund.
• 2025-11-30: Expected Liquidation Date — If approved, the Fund is expected to complete its liquidation by the end of November 2025.

Glossary

DEF 14A

A filing with the U.S. Securities and Exchange Commission (SEC) that provides detailed information about a company's annual meeting, including proposals to be voted on by shareholders. (This document is the proxy statement soliciting shareholder votes for the liquidation of the Value Line Core Bond Fund.)

Plan of Liquidation and Termination

A formal plan outlining the steps and procedures for winding down a company or fund, selling its assets, paying its liabilities, and distributing any remaining proceeds to shareholders. (This is the core proposal shareholders are being asked to approve for the Value Line Core Bond Fund.)

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. (The Fund's small asset size prevents it from achieving these, leading to higher operating costs for shareholders.)

Expense Ratio

The annual fee expressed as a percentage of a fund's average net assets that covers operating expenses. (The Fund's high expense ratio (1.26% before waivers) is a key reason cited for its liquidation.)

Adviser

The entity responsible for managing the fund's investments and operations, typically receiving a management fee. (EULAV Asset Management is the Adviser and has agreed to waive fees to offset liquidation costs.)

Proxy Solicitation

The process of requesting shareholders to grant a proxy (authority to vote) to management or another designated party for an upcoming shareholder meeting. (Costs associated with this process ($20,000) are part of the overall liquidation expenses.)

Year-Over-Year Comparison

This filing represents a significant event (liquidation) rather than a routine annual report. Therefore, a direct comparison of financial metrics like revenue growth or net income to a previous filing is not applicable. The key focus is on the rationale for liquidation, driven by the Fund's small asset size ($35 million as of July 31, 2025) and its resulting high expense ratio (1.26% in FY2024 before waivers), which is unsustainable compared to the expense limitation of 0.80%.

Key Financial Figures

• $140,000 — enses are estimated to be approximately $140,000 in the aggregate, including approximate
• $20,000 — the aggregate, including approximately $20,000 for proxy solicitation costs. To partia
• $35 million — he Fund's net assets were approximately $35 million. The Trustees determined at a meeting h

Filing Documents

• vlcbf-efp18166_def14a.htm (DEF 14A) — 122KB
• proxy01.jpg (GRAPHIC) — 152KB
• proxy02.jpg (GRAPHIC) — 244KB
• 0001133228-25-010438.txt ( ) — 670KB
• S000007530
• C000020574 (VAGIX)

From the Filing

DEF 14A 1 vlcbf-efp18166_def14a.htm VALUE LINE CORE BOND FUNDS - DEF 14A SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No.) Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12 VALUE LINE CORE BOND FUND (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): No fee required. Fee computed on table below per Exchange Act Rules 14a-6(i)(1)and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: Fee paid previously with preliminary materials. Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: September 18, 2025 VALUE LINE CORE BOND FUND 1605 Main Street, Suite 912 Sarasota, FL 34236 NOTICE OF SPECIAL MEETING OF SHAREHOLDERS To be held on November 14, 2025 Notice is hereby given that a Special Meeting of Shareholders (the "Meeting") of Value Line Core Bond Fund, a Massachusetts business trust (the "Fund"), will be held at the offices of Wilmer Cutler Pickering Hale and Dorr LLP, 7 World Trade Center, 250 Greenwich Street, 45 th floor, New York, New York 10007 on November 14, 2025 at 10:00 a.m. (Eastern Time). The Meeting will be held for the following purposes: 1. To consider and act upon the proposed liquidation and termination of the Fund; 2. To transact such other business which may properly come before the Meeting or any adjournment, postponements or delays thereof. Only shareholders of record at the close of business on October 1, 2025 are entitled to receive notice of and to vote at the Meeting or any adjournment, postponement or delay thereof. Each shareholder of the Fund is entitled to one vote for each share, and a fractional vote for each fractional share, held on that date. PLEASE EXECUTE AND RETURN THE ENCLOSED PROXY CARD PROMPTLY IN THE ENVELOPE PROVIDED, IRRESPECTIVE WHETHER OR NOT YOU INTEND TO BE PRESENT AT THE MEETING. YOU MAY REVOKE YOUR PROXY AT ANY TIME BEFORE IT IS VOTED. NO POSTAGE IS REQUIRED IF THE PROXY IS MAILED IN THE UNITED STATES. THE TRUSTEES (INCLUDING ALL OF THE INDEPENDENT TRUSTEES) OF THE FUND RECOMMEND THAT YOU VOTE IN FAVOR OF THE PROPOSAL. If you have any questions regarding the proposals or need assistance in completing your proxy card or casting your vote by telephone or via the Internet, please call Broadridge Financial Solutions, Inc., a corporate services firm that has been engaged to assist shareholders in the voting process, at 1-855-206-1121 (toll-free). Representatives are available Monday through Friday, 9:00 a.m.–10:00 p.m. (Eastern time) (not including certain holidays). Important Notice Regarding the Availability of Proxy Materials for the Meeting: This Notice of Special Meeting of Shareholders, the Proxy Statement and the form of proxy card are available on the Internet at www.proxyvote.com. On 1 this website, you also will be able to access any amendments or supplements to the foregoing material that are required to be furnished to shareholders. By order of the Trustees of the Fund Mitchell E. Appel, President October 1, 2025 2 VALUE LINE CORE BOND FUND 1605 Main Street, Suite 912 Sarasota, FL 34236 PROXY STATEMENT This Proxy Statement is furnished in connection with the solicitation of proxies by the management of Value Line Core Bond Fund (the "Fund") to be used at a Special Meeting of Shareholders of the Fund (the "Meeting"), to be held at the offices of Wilmer Cutler Pickering Hale and Dorr LLP, 7 World Trade Center, 250 Greenwich Street, 45 th floor, New York, New York 10007 on November 14, 2025 at 10:00 a.m. (Eastern Time), and at any subsequent time which may be made necessary by the adjournment, postponement or delay thereof. The Meeting will be held for the purpose of voting on the proposal, as more fully described below. Shareholders who execute proxies retain the right to revoke them at any time insofar as they have not been exercised. The proxy, when properly executed, will be voted in accor

View Full Filing

View this DEF 14A filing on SEC EDGAR