A copy of the Annual Report to Stockholders for the period ended 12/31/20 is included with this Form.

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Annual Report

December 31, 2020

Value Line Core Bond Fund

(VAGIX)

The Value Line Tax Exempt Fund, Inc.

(VLHYX)

Beginning May 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.vlfunds.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change, and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or if you are a direct investor, by signing up for e-delivery (800-243-2729).

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Funds, you can contact the Funds to continue receiving paper copies of your shareholder reports (800-243-2729). Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all the funds held with the fund complex if you invest directly with the Funds.

This audited report is issued for information to shareholders. It is not authorized for distribution to
prospective investors unless preceded or accompanied by a currently effective prospectus of the Funds
(obtainable from the Distributor).

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President’s Letter (unaudited)

Dear Fellow Shareholders:

On behalf of all of us here at Value Line Funds, I hope you and your families are safe and well during these most challenging times.

Know that our long-term commitment to you, our Fund shareholders, remains unchanged. As such, we are pleased to present you with this annual report for Value Line Core Bond Fund and The Value Line Tax Exempt Fund, Inc. (individually, a “Fund” and collectively, the “Funds”) for the 12 months ended December 31, 2020.

During the annual period, the taxable and tax-exempt fixed income markets generated solid positive absolute returns, supported by a variety of economic and market factors discussed below. Further, the annual period was highlighted by The Value Line Tax Exempt Fund, Inc.* being recognized for its attractive risk profile. The Value Line Tax Exempt Fund, Inc. was given an overall Risk Rating of Low by Morningstar1, i in the muni national long category.

On the following pages, the Funds’ portfolio managers discuss the management of their respective Funds during the annual period. The discussions highlight key factors influencing recent performance of the Funds. You will also find a Schedule of Investments and financial statements for each of the Funds.

Before reviewing the performance of your individual mutual fund investment(s), we encourage you to take a brief look at the major factors affecting the financial markets during the 12 months ended December 31, 2020, especially given the newsworthy events of the annual period. With meaningful trends and unprecedented developments during 2020 in several drivers of the capital markets, we also invite you to take this time to consider a broader diversification strategy by including additional Value Line Funds in your investment portfolio. You can find out more about the entire family of Value Line Funds at our website, www.vlfunds.com.

Economic Review

For calendar year 2020, COVID-19 wreaked havoc on both the U.S. and global economies. Countries were forced to shut down businesses and other workplaces in an effort to gain some control over the pandemic, and the lockdowns, in turn, caused the U.S. and global economies to go into a recession. U.S. Gross Domestic Product (GDP) growth dropped to an annualized growth rate of -5.0% in the first quarter of 2020 and -31.4% in the second quarter, the latter the lowest U.S. GDP reading historically for any quarter. U.S. unemployment leapt from 3.5% at the end of 2019 to 14.7% in April 2020. Retail sales plunged. Manufacturing also took a major hit, with the Institute for Supply Management (ISM) Manufacturing Survey dropping to 41.5 in April, well below the level widely considered to be a sign of contraction. Services, the largest sector of the U.S. economy, was impacted even more, shrinking for the first time in a decade. The ISM Services Index fell to 41.8 in April 2020 from a reading of 52.5 just one month earlier.

With the situation dire, worry around potential corporate bankruptcies and mortgage defaults — and fears of an economic recession taking hold — drove monetary and fiscal authorities to spring into action. The U.S. Federal Reserve (the Fed) cut short-term interest rates from 1.5% to near zero, committed to buy an unlimited amount of U.S. Treasury and agency mortgage-backed securities, increased the scope of its asset purchase program to include investment grade and high yield corporate bonds, and started numerous credit facilities to help buoy the municipal bond market. Many other developed market central banks also added accommodation, while several emerging market central banks embarked on quantitative easing for the first time. On the fiscal front, the U.S. government enacted a $2+ trillion relief bill, unleashing a massive stimulus plan to stem economic damage that included direct checks to many Americans, billions of dollars available to small businesses, and increases to the amount Americans could obtain from unemployment insurance.

These monetary and fiscal measures successfully stemmed further significant declines in the capital markets. Many of the economic indicators that had been so depressed began to improve. Nonfarm payroll jobs added back almost eight million jobs in May and June. By the end of September, the U.S. economy had gained back more than half the jobs lost in February, March and April. This job growth trend continued for the remainder of the year, with the exception of December when there was a loss of 140,000 jobs. Jobless claims, which peaked at more than 6.8 million at the end of March, declined to 790,000 at the end of December. The unemployment rate fell to 6.7% in December, still high but much better. Manufacturing was a major source of support, with the ISM Manufacturing Survey rebounding to 60 in December, its highest level since August 2018. Strength in the housing market was a notable contributor to the gains in manufacturing. Amid the pandemic, many Americans bought houses in the suburbs, fleeing the density of cities. Historically low interest rates were an added incentive to make a home purchase. Retail sales also rebounded strongly.

While work-at-home scenarios, masks and social distancing measures helped segments of the U.S. economy re-open gradually in phases, pushing third quarter U.S. GDP to a 33.1% growth rate on an annualized basis, the fastest growth rate since the government began to track quarterly GDP data in 1947, prospects for the economy became somewhat clouded by the fall of 2020. COVID-19 cases, hospitalizations and deaths increased rapidly during the fourth quarter, reaching new highs in some states. Partial lockdowns were re-established. Although some economic strength was sapped by the spikes, most economic indicators held up, or surprisingly improved, into the end of the year, supported in large part by optimism around the initial rollout of effective COVID-19 vaccines, resolution of the U.S. elections and a late but material fiscal stimulus package passed by Congress earmarked primarily toward financial help for individuals and small businesses.

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President’s Letter (unaudited) (continued)

Fixed Income Market Review

The broad U.S. investment grade fixed income market, as measured by the Bloomberg Barclays US Aggregate Bond Index2, posted a return of 7.51% during the annual period, significantly underperforming the broad U.S. equity market. Still, bond prices rose and yields fell across the yield curve, or spectrum of maturities, during the annual period. (Remember, there is usually an inverse relationship between bond prices and yield movements, so that bond prices rise when yields decrease and vice versa.)

U.S. Treasury yields rose in the fourth quarter on expectations of increased economic growth in the year ahead. However, for the annual period overall, the yield on the three-month U.S. Treasury bill fell approximately 146 basis points, the yield on the two-year U.S. Treasury note decreased approximately 145 basis points, and the yield on the five-year U.S. Treasury note fell approximately 133 basis points. (A basis point is 1/100th of a percentage point.) The yield on the bellwether 10-year U.S. Treasury note decreased approximately 99 basis points, and the yield on the 30-year U.S. Treasury bond fell approximately 74 basis points during the annual period. The Fed’s extraordinary measures to cushion the economic pain helped push yields lower across the spectrum of maturities. In addition, rates in most other developed markets remained near record lows — even dipping into negative territory in some, such as the U.K., which also indirectly helped keep U.S. yields lower. As yields on shorter-term maturities fell more than those on longer-term maturities, the yield curve steepened3, with the closely-watched spread, or yield differential, between two-year and 10-year maturities widening during the annual period.

Long-dated U.S. Treasuries posted the strongest total returns during the annual period, as the devastating fallout from the pandemic sparked fears of a global recession and led investors to seek shelter in high quality, lower-risk assets. Treasury inflation protected securities outperformed nominal, or non-inflation-linked, U.S. Treasuries overall as well as the Bloomberg Barclays US Aggregate Bond Index. Spread, or non-government bond, sectors posted mixed performance, though virtually all generated positive absolute returns during the annual period, largely supported by the speed and magnitude of the Fed’s monetary policy stimulus, which included a multi-sector bond buying program. Investment grade corporate bonds outperformed U.S. Treasuries on strong investor demand for yield, though high yield corporate bonds modestly lagged the returns of U.S. Treasuries during the annual period overall. The securitized sector as a whole underperformed U.S. Treasuries, but within the sector, commercial mortgage-backed securities outperformed the broad Bloomberg Barclays US Aggregate Bond Index, substantially outpacing asset-backed securities and mortgage-backed securities. Sovereign emerging markets debt also posted positive absolute returns for the annual period but lagged U.S. Treasuries.

The tax-exempt fixed income market, as measured by the Bloomberg Barclays Municipal Bond Index4, posted positive absolute returns but lagged the broad taxable fixed income market during the annual period with a return of 5.21%. Like the taxable fixed income market, yields across the municipal bond market yield curve rallied, following the steepening trajectory of the U.S. Treasury yield curve. The economic and market factors affecting the taxable markets during the annual period similarly affected the tax-exempt market. Still, municipal bonds faced some additional challenges, and the positive total returns the tax-exempt fixed income market experienced through February 2020 gave way in March to some of the worst days in municipal bond market history. Many investors fled the municipal bond market in March, as the country experienced its first lockdowns. And many municipal bond issuers were crushed by the spike in unemployment benefits and the greatly reduced collection of income, sales and hotel taxes as well as the loss of airport fees, tourist dollars and toll revenues. The pain from this drop in revenue was compounded by the massive numbers of Americans requiring medical care due to COVID-19. Yields across the municipal curve moved higher in March 2020.

Almost as quickly as yields increased, the lure of historically inexpensive valuations, coupled with near record low U.S. Treasury rates and the Fed expanding its municipal bond buying program to help stabilize a choppy market, brought some investors back to the municipal bond market in the second quarter of 2020, providing some initial signs of stabilization and restored market liquidity. Municipal bond yields generally declined, bringing the municipal bond market back into positive territory for the annual period overall. Propelled by historically low interest rates, municipal issuance saw a banner year in 2020, totaling more than $513.7 billion, as both tax-exempt and taxable municipal bond issuance climbed to the highest levels on record. Meanwhile, demand remained sustained, as municipal funds saw total inflows gain momentum after the U.S. elections, totaling $39.7 billion for the year. Lower quality bonds in some industries and locations, such as Puerto Rico bonds, performed quite well as investors reached for yield. However, overall, investors favored higher quality, AAA-rated municipal bonds amidst the strong “risk off”5 environment that characterized the year within the municipal bond market, reflecting in part heightened credit concerns as many state and local issuers continued to face depressed revenues and to seek further federal government support. Not surprisingly, the overall credit impact on the municipal market caused by the pandemic triggered a flurry of rating downgrades that far exceeded rating upgrades for the year. Importantly, the fiscal stimulus bill passed in December 2020 largely left out state and local governments, complicating budget decisions for municipal governments confronting uncertain economic conditions and likely meaning growing austerity measures. That said, sectors such as airports, public transit districts and education were slated to benefit indirectly from the stimulus bill.

* * *

Of course, moving forward, we continue to monitor the latest updates related to COVID-19. Just as we remain focused on long-term, strategic investing through all market conditions, we encourage you to do so as well.

We thank you for trusting us to be a part of your long-term, comprehensive investment strategy. We appreciate your confidence in the Value Line Funds and look forward to serving your investment needs in the years ahead just as we have been helping to secure generations’ financial futures since 1950 — based on solid fundamentals, sound investment principles and the power of disciplined and rigorous analytics.

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To stay current with timely commentary and investment insights and/or if you have any questions or would like additional information on these or other Value Line Funds, we invite you to contact your investment representative or visit us at www.vlfunds.com.

Sincerely,

Mitchell Appel
President of the Value Line Funds

Past performance does not guarantee future results. Investment return and principal value of an investment can fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; and that current performance may be lower or higher than the performance data quoted. Investors should carefully consider the investment objective, risks, charges and expense of a fund. This and other important information about a fund is contained in the fund’s prospectus. A copy of our funds’ prospectuses can be obtained free of charge by going to our website at www.vlfunds.com or calling toll-free 800.243.2729.

The Value Line Funds are distributed by EULAV Securities LLC.

Data, rankings and ratings are based on the Investor Share Class of the Fund.

Morningstar, Inc. is an investment research and investment management firm headquartered in Chicago, Illinois, United States.

For The Value Line Tax Exempt Fund, Inc.: Morningstar Risk: Low for the 3-year, 5-year, 10-year and overall periods ended December 31, 2020. All in the Morningstar muni national long category.

The Bloomberg Barclays US Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS. This is an unmanaged index and does not reflect charges, expenses or taxes, which are deducted from the Fund’s return. It is not possible to directly invest in this index.

A steepening yield curve is one in which longer-term yields are increasingly higher than shorter-term yields. A flattening yield curve is one in which the differential between yields on shorter-term and longer-term maturities narrows.

The Bloomberg Barclays Municipal Bond Index is a total-return performance benchmark for the long-term investment grade tax-exempt bond market. The returns for the index do not reflect charges, expense or taxes. It is not possible to directly invest in this index.

“Risk on,” or its opposite “risk off,” is an investment setting in which price behavior responds to and is driven by changes in investor risk tolerance. Risk on and risk off refer to changes in investment activity in response to global economic patterns. During periods when risk is perceived as low, the risk on/risk off theory states that investors tend to engage in higher risk investments. When risk is perceived to be high, investors have the tendency to gravitate toward lower risk investments.

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VALUE LINE CORE BOND FUND

PORTFOLIO MANAGEMENT COMMENTARY (unaudited)

INVESTMENT OBJECTIVE

The investment objective of the Fund is to maximize current income. Capital appreciation is a secondary objective but only when consistent with the Fund’s primary objective.

Manager Discussion of Fund Performance

Below, Value Line Core Bond Fund’s portfolio managers Liane Rosenberg and Jeffrey D. Geffen discuss the Fund’s performance and positioning for the 12 months ended December 31, 2020.

How did the Fund perform during the annual period?

The Fund generated a total return of 5.77% during the 12 months ended December 31, 2020. This compares to the 7.51% return of the Fund’s benchmark, the Bloomberg Barclays US Aggregate Bond Index (the “Bloomberg Barclays Index”), during the same annual period.

What key factors were responsible for the Fund’s performance relative to its benchmark during the 12-month reporting period?

The Fund posted solid positive absolute returns but underperformed its benchmark for two key reasons. First, while the Fund benefited from its overall duration positioning, it was hurt by an underweight to long-dated securities within the Fund’s U.S. Treasury allocation. U.S. Treasury bonds with maturities of 30 years were the best performers within the U.S. fixed income market for the annual period. Second, the Fund’s relative results were dampened by issue selection overall.

Which fixed income market sectors most significantly affected Fund performance?

Issue selection within the investment grade corporate bond sector detracted most. The corporate bonds held by the Fund were generally high quality and underperformed lower quality, more “risk on”* credits, which performed better during the annual period on investor demand for yield. Similarly, issue selection within the securitized sector detracted given the Fund’s emphasis on mortgage-backed securities. Mortgage-backed securities underperformed the Bloomberg Barclays Index during the annual period, hurt by high prepayments amid the fall in interest rates. Additionally, among U.S. Treasuries, holding more long-dated securities would have been beneficial. In hindsight, it would have been better to hold more of a mix of short-term and long-term U.S. Treasury securities rather than the focus we had on the intermediate segment of the yield curve, or spectrum of maturities. Having an overweight to asset-backed securities further detracted from the Fund’s relative results. Asset-backed securities tend to be short-dated and high quality securities, which underperformed in the “risk on” environment that rewarded lower quality and longer-duration securities in the last three quarters of the annual period.

Conversely, the Fund’s overweight allocation to investment grade corporate bonds contributed positively to relative performance. Also, select long-dated industrial investment grade corporate bonds offered superior returns, including securities issued by Constellation Brands, Trane Technologies and Owens Corning. Having a modest exposure to high yield corporate bonds, which are not a component of the Bloomberg Barclays Index but which performed strongly during the annual period, contributed positively to the Fund’s relative results as well. Having an overweight to commercial mortgage-backed securities within the securitized sector also proved beneficial, as these securities were not hit with rising prepayment speeds as were residential mortgage-backed securities.

What was the Fund’s duration strategy?

Duration positioning in the Fund contributed positively to its relative performance, as the Fund generally held a duration stance longer than that of the Bloomberg Barclays Index during the annual period based on our expectations for lower interest rates. The Fed had been clear in its intent to keep interest rates low for an extended period in an effort to counter the economic weakness brought on by the COVID-19 pandemic. As rates did fall significantly across the yield curve during the annual period, the Fund’s long duration positioning added significant value. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

How did yield curve positioning decisions affect the Fund’s performance?

Overall, the Fund’s yield curve positioning detracted from the Fund’s relative performance during the annual period. As mentioned, it would have proved more beneficial had the Fund held more of a barbell positioning along the U.S. Treasury yield curve, with greater weightings in short-term and long-term maturities, rather than an emphasis on the intermediate segment of the yield curve.

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How did the Fund use derivatives and similar instruments during the reporting period?

The Fund did not use derivatives during the annual period.

Were there any notable changes in the Fund’s weightings during the annual period?

Most of the changes to the Fund’s weightings were made during the last quarter of the annual period. In those months, we added some risk to the Fund, as the development and distribution of COVID-19 vaccines accelerated, bringing with it the hope of a return to more “normal” economic conditions both domestically and globally in 2021. We also became more constructive on adding some risk due to widespread expectations that the Biden Administration would likely seek to increase economic support for individuals struggling from the economic pain inflicted by the fallout from the COVID-19 pandemic. We increased the Fund’s exposure to high yield corporate bonds. We also remained committed to the Fund’s overweight to investment grade corporate bonds against the backdrop of low interest rates, as investors had continued to show a strong appetite for yield. Within the investment grade corporate bond sector, we increased exposure to industries more sensitive to a growing economy, such as oil and metals & mining. Issuers added included Steel Dynamics, Spectra Energy and Occidental Petroleum. We maintained the Fund’s longer duration than that of the Bloomberg Barclays Index but did shorten duration a bit as yields, particularly of securities with maturities of 10 years and longer, began to rise during the fourth calendar quarter on stronger economic data and the start of COVID-19 inoculations.

How was the Fund positioned relative to its benchmark index at the end of December 2020?

At the end of December 2020, the Fund remained overweight relative to the Bloomberg Barclays Index in investment grade corporate bonds and remained underweight relative to the Bloomberg Barclays Index in U.S. Treasuries. The Fund’s exposure to the securitized sector overall was close to that of the Bloomberg Barclays Index, but within the sector, the Fund was underweight highly-rated mortgage-backed securities and was overweight more “risk-on” commercial mortgage-backed securities. The Fund also remained overweight high quality asset-backed securities. The Fund was also overweight taxable municipal bonds at the end of the annual period, as we believe they will perform well as state and municipal budgets recover with better economic growth. The Fund maintained exposure to high yield corporate bonds, which are not a component of the Bloomberg Barclays Index.

What is your tactical view and strategy for the months ahead?

At the end of December 2020, we believed interest rates would remain low even when the U.S. economy returns to some level of “normalcy” as people domestically and globally receive the COVID-19 vaccine. In turn, we intend to focus on higher beta, lower quality investments for the near term and to continue diligently monitoring COVID-19-driven trends, standing ready to add back more “risk-off” securities should conditions warrant. The COVID-19 pandemic is, unfortunately, not over. If the pandemic is not successfully contained, the negative effects on the economy would persist, and we would look to pull back on some of the more bullish positioning we took in the fourth quarter of 2020. Further, it is always possible there will be surprises with a new White House Administration regarding its broad economic and fiscal policies. We will, of course, also closely monitor any changes in the direction of Fed policy or that of other central bankers around the globe and their commitment to significant economic stimulus, since their policies remain a key driver of the fixed income market.

”Risk on,” or its opposite “risk off,” is an investment setting in which price behavior responds to and is driven by changes in investor risk tolerance. Risk on and risk off refer to changes in investment activity in response to global economic patterns. During periods when risk is perceived as low, the risk on/risk off theory states that investors tend to engage in higher risk investments. When risk is perceived to be high, investors have the tendency to gravitate toward lower risk investments.

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Coupon Distribution

	Percentage of Total Investment Securities^
Less than 4%		72.9%
4 – 4.99%		21.3%
5 – 5.99%		5.6%
6 – 6.99%		0.2%

Excludes short-term investments, if any.

The following graph compares the performance of the Value Line Core Bond Fund to that of the Bloomberg Barclays US Aggregate Bond Index* (the “Index”). The Value Line Core Bond Fund 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, if any. The comparison is shown for illustrative purposes only.

Comparison of a Change in Value of a $10,000 Investment in the Value Line Core Bond Fund and the Bloomberg Barclays US Aggregate Bond Index**

[MISSING IMAGE: tm213398d3_lc-corebondbw.jpg]

Performance Data:**

Average Annual Total Returns (For periods ended 12/31/2020)

Investor Class	1 Yr		5 Yrs		10 Yrs
Value Line Core Bond Fund		5.77%		3.67%		3.53%
Bloomberg Barclays US Aggregate Bond Index		7.51%		4.44%		3.84%

The Bloomberg Barclays US Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthrough’s), ABS and CMBS. This is an unmanaged index and does not reflect charges, expenses or taxes, which are deducted from the Fund’s return. It is not possible to directly invest in this Index.

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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Value Line Core Bond Fund
Schedule of Investments

Principal Amount				Value
ASSET-BACKED SECURITIES 3.2%
	$	129,282	Ally Auto Receivables Trust, Series 2017-3, Class A4, 2.01%, 3/15/22		$	129,364
		170,000	BMW Vehicle Lease Trust, Series 2019-1, Class A4, 2.92%, 8/22/22			171,855
		100,000	Chase Issuance Trust, Series 2012-A7, Class A7, 2.16%, 9/15/24			103,317
		220,000	Ford Credit Auto Owner Trust, Series 2018-1, Class A, 3.19%, 7/15/31(1)			241,743
		330,000	GMF Floorplan Owner Revolving Trust, Series 2018-2, Class A1, 3.13%, 3/15/23(1)			331,853
		3,396	Honda Auto Receivables Owner Trust, Series 2017-4, Class A3, 2.05%, 11/22/21			3,400
		200,000	Hyundai Auto Lease Securitization Trust, Series 2019-A, Class A4, 3.05%, 12/15/22(1)			203,133
		68,000	Mercedes-Benz Auto Lease Trust, Series 2020-A, Class A3, 1.84%, 12/15/22			68,950
		450,000	Toyota Auto Loan Extended Note Trust, Series 2020-1A, Class A, 1.35%, 5/25/33(1)			463,359
TOTAL ASSET-BACKED SECURITIES (Cost $1,703,667) 3.2%						1,716,974
COMMERCIAL MORTGAGE-BACKED SECURITIES 10.5%
		250,000	BANK, Series 2017-BNK8, Class A4, 3.49%, 11/15/50			285,274
		150,000	BANK, Series 2019-BN17, Class A4, 3.71%, 4/15/52			174,817
		271,069	Citigroup Commercial Mortgage Trust, Series 2014-GC25, Class AAB, 3.37%, 10/10/47			283,558

Principal Amount				Value
COMMERCIAL MORTGAGE-BACKED SECURITIES 10.5% (continued)
	$	150,000	COMM Mortgage Trust, Series 2014-UBS2, Class AM, 4.20%, 3/10/47		$	163,333
		200,000	FHLMC Multifamily Structured Pass-Through Certificates, Series K029, Class A2, 3.32%, 2/25/23			211,503
		180,902	FHLMC Multifamily Structured Pass-Through Certificates, Series K726, Class A2, 2.91%, 4/25/24			193,345
		250,000	FHLMC Multifamily Structured Pass-Through Certificates, Series K061, Class A2, 3.35%, 11/25/26(2)			285,375
		300,000	FHLMC Multifamily Structured Pass-Through Certificates, Series K069, Class A2, 3.19%, 9/25/27(2)			343,609
		250,000	FHLMC Multifamily Structured Pass-Through Certificates, Series K071, Class A2, 3.29%, 11/25/27			288,305
		250,000	FHLMC Multifamily Structured Pass-Through Certificates, Series K074, Class A2, 3.60%, 1/25/28			293,133
		200,000	FHLMC Multifamily Structured Pass-Through Certificates, Series K092, Class A2, 3.30%, 4/25/29			233,115
		450,000	FHLMC Multifamily Structured Pass-Through Certificates, Series K103, Class A2, 2.65%, 11/25/29			505,234

Principal Amount				Value
COMMERCIAL MORTGAGE-BACKED SECURITIES 10.5% (continued)
	$	250,000	FREMF Mortgage Trust, Series 2013-K24, Class B, 3.51%, 11/25/45(1)(2)		$	261,899
		150,000	FREMF Mortgage Trust, Series 2013-K34, Class B, 3.73%, 9/25/46(1)(2)			160,121
		200,000	FREMF Mortgage Trust, Series 2014-K717, Class B, 3.63%, 11/25/47(1)(2)			202,980
		200,000	FREMF Mortgage Trust, Series 2015-K43, Class B, 3.73%, 2/25/48(1)(2)			218,440
		221,872	GNMA, Series 2013-12, Class AB, 1.83%, 11/16/52			226,473
		212,199	GNMA, Series 2012-125, Class AB, 2.11%, 2/16/53(2)			220,485
		156,387	GS Mortgage Securities Trust, Series 2012-GCJ7, Class A4, 3.38%, 5/10/45			158,306
		13,063	GS Mortgage Securities Trust, Series 2015-GC32, Class A2, 3.06%, 7/10/48			13,136
		58,929	Sequoia Mortgage Trust, Series 2004-8, Class A1, (1-month LIBOR + 0.70)%, 0.85%, 9/20/34(2)			57,736
		180,000	Wells Fargo Commercial Mortgage Trust, Series 2016-C34, Class A4, 3.10%, 6/15/49			193,940
		89,141	Wells Fargo Commercial Mortgage Trust, Series 2017-C40, Class A1, 2.11%, 10/15/50			89,740
		100,000	Wells Fargo Commercial Mortgage Trust, Series 2019-C50, Class ASB, 3.64%, 5/15/52			114,122

See Notes to Financial Statements.

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December 31, 2020

Principal Amount				Value
COMMERCIAL MORTGAGE-BACKED SECURITIES 10.5% (continued)
	$	85,780	Wells Fargo Commercial Mortgage Trust, Series 2015-NXS2, Class ASB, 3.46%, 7/15/58		$	90,578
		192,393	WFRBS Commercial Mortgage Trust, Series 2011-C5, Class A4, 3.67%, 11/15/44			194,706
		188,598	WFRBS Commercial Mortgage Trust, Series 2012-C6, Class A4, 3.44%, 4/15/45			190,783
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (Cost $5,395,690) 10.5%						5,654,046
CORPORATE BONDS & NOTES 46.4%
BASIC MATERIALS 2.1%
			CHEMICALS 1.3%
		125,000	Air Products and Chemicals, Inc., Senior Unsecured Notes, 2.05%, 5/15/30			133,343
		175,000	Celanese U.S. Holdings LLC, Guaranteed Notes, 4.63%, 11/15/22			187,814
		100,000	FMC Corp., Senior Unsecured Notes, 3.45%, 10/1/29			113,843
		175,000	LYB International Finance B.V., Guaranteed Notes, 4.00%, 7/15/23(3)			189,792
		100,000	Nutrien, Ltd., Senior Unsecured Notes, 1.90%, 5/13/23			103,295
						728,087
			IRON & STEEL 0.3%
		125,000	Steel Dynamics, Inc., Senior Unsecured Notes, 3.25%, 1/15/31(3)			139,781
			MINING 0.5%
		125,000	Rio Tinto Finance USA PLC, Guaranteed Notes, 4.13%, 8/21/42			163,186
		100,000	Teck Resources, Ltd., Senior Unsecured Notes, 6.13%, 10/1/35			128,949
						292,135
						1,160,003

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
COMMUNICATIONS 3.8%
			INTERNET 0.6%
	$	150,000	Alibaba Group Holding, Ltd., Senior Unsecured Notes, 3.60%, 11/28/24		$	165,205
		150,000	Netflix, Inc., Senior Unsecured Notes, 4.88%, 4/15/28			169,155
						334,360
			MEDIA 1.5%
		175,000	Charter Communications Operating LLC/ Charter Communications Operating Capital, Senior Secured Notes, 4.91%, 7/23/25(3)			203,253
		175,000	Comcast Corp., Guaranteed Notes, 4.15%, 10/15/28(3)			210,661
		175,000	Discovery Communications LLC, Guaranteed Notes, 4.90%, 3/11/26			206,375
		175,000	Walt Disney Co. (The), Guaranteed Notes, 2.65%, 1/13/31(3)			191,855
						812,144
			TELECOMMUNICATIONS 1.7%
		228,000	AT&T, Inc., Senior Unsecured Notes, 2.55%, 12/1/33(1)			233,731
		200,000	Motorola Solutions, Inc., Senior Unsecured Notes, 4.60%, 5/23/29			239,603
		175,000	Verizon Communications, Inc., Senior Unsecured Notes, 4.50%, 8/10/33			220,817
		150,000	Vodafone Group PLC, Senior Unsecured Notes, 4.25%, 9/17/50(3)			185,785
						879,936
						2,026,440
CONSUMER, CYCLICAL 3.7%
			AUTO MANUFACTURERS 1.0%
		150,000	Cummins, Inc., Senior Unsecured Notes, 1.50%, 9/1/30(3)			150,760

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			AUTO MANUFACTURERS 1.0% (continued)
	$	150,000	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 3.38%, 11/13/25		$	154,104
		200,000	General Motors Financial Co., Inc., Guaranteed Notes, 3.70%, 5/9/23			211,983
						516,847
			AUTO PARTS & EQUIPMENT 0.3%
		150,000	Dana, Inc., Senior Unsecured Notes, 5.50%, 12/15/24			153,000
			HOME BUILDERS 1.0%
		150,000	D.R. Horton, Inc., Guaranteed Notes, 2.50%, 10/15/24(3)			160,112
		150,000	Lennar Corp., Guaranteed Notes, 4.88%, 12/15/23			165,750
		200,000	Toll Brothers Finance Corp., Guaranteed Notes, 4.88%, 11/15/25			224,500
						550,362
			HOME FURNISHINGS 0.4%
		200,000	Whirlpool Corp., Senior Unsecured Notes, 3.70%, 5/1/25			221,924
			LODGING 0.2%
		100,000	Choice Hotels International, Inc., Senior Unsecured Notes, 3.70%, 12/1/29			109,066
			RETAIL 0.8%
		100,000	AutoZone, Inc., Senior Unsecured Notes, 3.75%, 6/1/27			114,801
		100,000	Costco Wholesale Corp., Senior Unsecured Notes, 1.75%, 4/20/32(3)			103,932
		100,000	Lowe’s Cos., Inc., Senior Unsecured Notes, 1.70%, 10/15/30			101,318
		100,000	Walgreen Co., Guaranteed Notes, 3.10%, 9/15/22(3)			104,386
						424,437
						1,975,636

See Notes to Financial Statements.

TABLE OF CONTENTS

Schedule of Investments (continued)

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
CONSUMER, NON-CYCLICAL 10.9%
			AGRICULTURE 0.4%
	$	200,000	Bunge, Ltd. Finance Corp., Guaranteed Notes, 3.25%, 8/15/26		$	222,293
			BEVERAGES 2.0%
		125,000	Anheuser-Busch InBev Worldwide, Inc., Guaranteed Notes, 4.90%, 1/23/31(3)			159,222
		150,000	Coca-Cola Co. (The), Senior Unsecured Notes, 1.45%, 6/1/27(3)			154,939
		175,000	Coca-Cola Femsa S.A.B. de C.V., Guaranteed Notes, 2.75%, 1/22/30			188,220
		150,000	Constellation Brands, Inc., Guaranteed Notes, 5.25%, 11/15/48			211,054
		200,000	Keurig Dr. Pepper, Inc., Guaranteed Notes, 3.20%, 5/1/30			226,445
		100,000	PepsiCo, Inc., Senior Unsecured Notes, 2.88%, 10/15/49			111,955
						1,051,835
			BIOTECHNOLOGY 0.5%
		150,000	Amgen, Inc., Senior Unsecured Notes, 2.20%, 2/21/27(3)			160,802
		100,000	Gilead Sciences, Inc., Senior Unsecured Notes, 2.60%, 10/1/40			100,964
						261,766
			COMMERCIAL SERVICES 1.0%
		200,000	Global Payments, Inc., Senior Unsecured Notes, 4.80%, 4/1/26			237,344
		150,000	PayPal Holdings, Inc., Senior Unsecured Notes, 2.65%, 10/1/26			164,880
		125,000	United Rentals North America, Inc., Guaranteed Notes, 5.50%, 5/15/27			133,750
						535,974
			FOOD 0.8%
		150,000	Conagra Brands, Inc., Senior Unsecured Notes, 1.38%, 11/1/27			151,384

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			FOOD 0.8% (continued)
	$	100,000	Hershey Co. (The), Senior Unsecured Notes, 2.65%, 6/1/50		$	105,946
		150,000	Sysco Corp., Guaranteed Notes, 5.65%, 4/1/25			178,350
						435,680
			HEALTHCARE PRODUCTS 1.3%
		213,000	Abbott Laboratories, Senior Unsecured Notes, 3.75%, 11/30/26			249,517
		125,000	Baxter International, Inc., Senior Unsecured Notes, 2.60%, 8/15/26			136,468
		150,000	Boston Scientific Corp., Senior Unsecured Notes, 3.75%, 3/1/26(3)			170,226
		125,000	Thermo Fisher Scientific, Inc., Senior Unsecured Notes, 4.13%, 3/25/25(3)			142,130
						698,341
			HEALTHCARE SERVICES 2.2%
		150,000	Anthem, Inc., Senior Unsecured Notes, 3.35%, 12/1/24			165,274
		150,000	Centene Corp., Senior Unsecured Notes, 4.63%, 12/15/29			166,531
		150,000	HCA, Inc., Guaranteed Notes, 5.38%, 2/1/25			168,679
		150,000	Humana, Inc., Senior Unsecured Notes, 3.95%, 3/15/27			172,630
		150,000	Laboratory Corp. of America Holdings, Senior Unsecured Notes, 2.95%, 12/1/29(3)			165,799
		150,000	Quest Diagnostics, Inc., Senior Unsecured Notes, 2.80%, 6/30/31			164,473
		150,000	UnitedHealth Group, Inc., Senior Unsecured Notes, 2.88%, 12/15/21			153,623
						1,157,009
			HOUSEHOLD PRODUCTS 0.4%
		125,000	Clorox Co. (The), Senior Unsecured Notes, 3.05%, 9/15/22			130,006

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			HOUSEHOLD PRODUCTS 0.4% (continued)
	$	100,000	Clorox Co. (The), Senior Unsecured Notes, 1.80%, 5/15/30		$	103,199
						233,205
			PHARMACEUTICALS 2.3%
		100,000	AbbVie, Inc., Senior Unsecured Notes, 2.95%, 11/21/26			110,585
		150,000	Becton Dickinson and Co., Senior Unsecured Notes, 3.36%, 6/6/24(3)			163,061
		150,000	Bristol-Myers Squibb Co., Senior Unsecured Notes, 5.25%, 8/15/43			215,035
		125,000	Cigna Corp., Guaranteed Notes, 3.40%, 3/1/27			141,141
		125,000	Merck & Co., Inc., Senior Unsecured Notes, 2.75%, 2/10/25			135,790
		100,000	Pfizer, Inc., Senior Unsecured Notes, 2.55%, 5/28/40			106,808
		100,000	Teva Pharmaceutical Finance Netherlands III BV, Guaranteed Notes, 2.80%, 7/21/23			99,010
		150,000	Utah Acquisition Sub, Inc., Guaranteed Notes, 3.95%, 6/15/26(3)			171,620
		100,000	Zoetis, Inc., Senior Unsecured Notes, 4.50%, 11/13/25			116,728
						1,259,778
						5,855,881
ENERGY 3.3%
			OIL & GAS 1.4%
		150,000	Canadian Natural Resources, Ltd., Senior Unsecured Notes, 2.05%, 7/15/25(3)			157,347
		100,000	EOG Resources, Inc., Senior Unsecured Notes, 4.38%, 4/15/30(3)			121,536
		150,000	Occidental Petroleum Corp., Senior Unsecured Notes, 5.50%, 12/1/25			156,392

See Notes to Financial Statements.

TABLE OF CONTENTS

December 31, 2020

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			OIL & GAS 1.4% (continued)
	$	150,000	Phillips 66, Guaranteed Notes, 1.30%, 2/15/26(3)		$	152,009
		150,000	Shell International Finance B.V., Guaranteed Notes, 2.38%, 11/7/29			161,484
						748,768
			OIL & GAS SERVICES 0.3%
		150,000	Schlumberger Finance Canada, Ltd., Guaranteed Notes, 1.40%, 9/17/25			154,255
			PIPELINES 1.6%
		150,000	Boardwalk Pipelines L.P., Guaranteed Notes, 4.95%, 12/15/24			167,412
		250,000	Kinder Morgan, Inc., Guaranteed Notes, 4.30%, 3/1/28			293,191
		130,000	Magellan Midstream Partners L.P., Senior Unsecured Notes, 4.25%, 9/15/46			149,738
		150,000	Spectra Energy Partners L.P., Guaranteed Notes, 4.75%, 3/15/24			167,459
		100,000	TransCanada PipeLines, Ltd., Senior Unsecured Notes, 4.25%, 5/15/28			118,115
						895,915
						1,798,938
FINANCIAL 13.8%
			BANKS 8.3%
		200,000	Australia & New Zealand Banking Group, Ltd., Subordinated Notes, 4.50%, 3/19/24(1)			220,477
		200,000	Bank of America Corp. GMTN, Senior Unsecured Notes, 3.50%, 4/19/26			226,666
		150,000	Bank of Montreal, Series E, Senior Unsecured Notes, 3.30%, 2/5/24(3)			162,691
		125,000	CIT Group, Inc., Senior Unsecured Notes, (SOFR + 3.83)%, 3.93%, 6/19/24(2)			132,188

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			BANKS 8.3% (continued)
	$	150,000	Citigroup, Inc., Senior Unsecured Notes, (3-month LIBOR + 0.90)%, 3.35%, 4/24/25(2)(3)		$	163,076
		165,000	Citigroup, Inc., Subordinated Notes, 5.30%, 5/6/44			232,801
		150,000	Comerica, Inc., Senior Unsecured Notes, 3.70%, 7/31/23(3)			161,827
		150,000	Cooperatieve Rabobank UA MTN, Senior Unsecured Notes, 3.38%, 5/21/25			168,331
		125,000	Credit Suisse AG, Senior Unsecured Notes, 2.95%, 4/9/25			137,124
		175,000	Fifth Third Bancorp, Senior Unsecured Notes, 3.65%, 1/25/24(3)			190,860
		175,000	Goldman Sachs Group, Inc. (The), Senior Unsecured Notes, 3.75%, 2/25/26			198,791
		125,000	HSBC Holdings PLC, Senior Unsecured Notes, 3.90%, 5/25/26			142,681
		150,000	ING Groep N.V., Senior Unsecured Notes, 4.10%, 10/2/23			164,793
		200,000	JPMorgan Chase & Co., Subordinated Notes, 4.13%, 12/15/26			233,813
		200,000	JPMorgan Chase & Co., Senior Unsecured Notes, (3-month LIBOR + 1.38)%, 3.96%, 11/15/48(2)			251,706
		100,000	KeyCorp MTN, Senior Unsecured Notes, 2.55%, 10/1/29(3)			108,308
		250,000	Kreditanstalt fuer Wiederaufbau, Guaranteed Notes, 2.63%, 4/12/21			251,652
		150,000	Lloyds Banking Group PLC, Senior Unsecured Notes, 3.90%, 3/12/24			164,879
		250,000	Morgan Stanley, Series F, Senior Unsecured Notes, 3.88%, 4/29/24			276,954
		125,000	National Australia Bank, Ltd., Senior Unsecured Notes, 2.50%, 7/12/26			136,244

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			BANKS 8.3% (continued)
	$	150,000	Societe Generale S.A., Senior Unsecured Notes, 5.20%, 4/15/21(3)		$	152,054
		200,000	Svenska Handelsbanken AB, Guaranteed Notes, 3.35%, 5/24/21			202,463
		150,000	Wells Fargo & Co., Senior Unsecured Notes, 3.07%, 1/24/23			154,281
		250,000	Zions Bancorp NA, Subordinated Notes, 3.25%, 10/29/29			263,390
						4,498,050
			DIVERSIFIED FINANCIAL SERVICES 2.1%
		175,000	Air Lease Corp., Senior Unsecured Notes, 3.63%, 4/1/27			187,546
		150,000	Ally Financial, Inc., Senior Unsecured Notes, 5.13%, 9/30/24			172,926
		150,000	American Express Co., Senior Unsecured Notes, 3.13%, 5/20/26			167,982
		175,000	Discover Financial Services, Senior Unsecured Notes, 3.95%, 11/6/24			194,326
		200,000	Stifel Financial Corp., Senior Unsecured Notes, 4.25%, 7/18/24			224,702
		150,000	Visa, Inc., Senior Unsecured Notes, 2.05%, 4/15/30			160,428
						1,107,910
			INSURANCE 1.6%
		100,000	Allstate Corp. (The), Senior Unsecured Notes, 1.45%, 12/15/30(3)			99,811
		200,000	American International Group, Inc., Senior Unsecured Notes, 4.88%, 6/1/22			212,193
		150,000	Aon Corp., Guaranteed Notes, 3.75%, 5/2/29			174,990
		200,000	CNA Financial Corp., Senior Unsecured Notes, 3.95%, 5/15/24			221,116

See Notes to Financial Statements.

TABLE OF CONTENTS

Schedule of Investments (continued)

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			INSURANCE 1.6% (continued)
	$	150,000	Prudential Financial, Inc., Junior Subordinated Notes, (3-month LIBOR + 2.67)%, 5.70%, 9/15/48(2)(3)		$	173,177
						881,287
			REITS 1.8%
		100,000	American Tower Corp., Senior Unsecured Notes, 2.95%, 1/15/25			108,356
		100,000	AvalonBay Communities, Inc. GMTN, Senior Unsecured Notes, 3.45%, 6/1/25			111,313
		150,000	Digital Realty Trust L.P., Guaranteed Notes, 3.60%, 7/1/29			171,974
		250,000	Essex Portfolio L.P., Guaranteed Notes, 3.38%, 1/15/23			262,391
		100,000	Prologis L.P., Senior Unsecured Notes, 2.25%, 4/15/30			107,158
		175,000	Welltower, Inc., Senior Unsecured Notes, 4.25%, 4/15/28			204,552
						965,744
						7,452,991
INDUSTRIAL 2.8%
			AEROSPACE & DEFENSE 0.7%
		150,000	L3Harris Technologies, Inc., Senior Unsecured Notes, 4.40%, 6/15/28			179,862
		150,000	United Technologies Corp., Senior Unsecured Notes, 4.13%, 11/16/28(3)			178,825
						358,687
			BUILDING MATERIALS 0.2%
		100,000	Owens Corning, Senior Unsecured Notes, 3.95%, 8/15/29			115,328
			ELECTRONICS 0.5%
		100,000	Agilent Technologies, Inc., Senior Unsecured Notes, 2.10%, 6/4/30(3)			103,507
		150,000	Flex, Ltd., Senior Unsecured Notes, 4.75%, 6/15/25			170,254
						273,761

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			MISCELLANEOUS MANUFACTURERS 0.8%
	$	150,000	Ingersoll-Rand Luxembourg Finance S.A., Guaranteed Notes, 4.50%, 3/21/49		$	195,546
		200,000	Textron, Inc., Senior Unsecured Notes, 3.88%, 3/1/25			219,742
						415,288
			PACKAGING & CONTAINERS 0.6%
		145,000	Ball Corp., Guaranteed Notes, 4.00%, 11/15/23			154,425
		150,000	WRKCo, Inc., Guaranteed Notes, 3.90%, 6/1/28			173,918
						328,343
						1,491,407
TECHNOLOGY 2.9%
			COMPUTERS 0.6%
		150,000	HP, Inc., Senior Unsecured Notes, 3.00%, 6/17/27			165,511
		175,000	NetApp, Inc., Senior Unsecured Notes, 1.88%, 6/22/25			182,791
						348,302
			SEMICONDUCTORS 0.8%
		100,000	Applied Materials, Inc., Senior Unsecured Notes, 1.75%, 6/1/30			103,776
		150,000	Micron Technology, Inc., Senior Unsecured Notes, 2.50%, 4/24/23			156,303
		150,000	Xilinx, Inc., Senior Unsecured Notes, 2.38%, 6/1/30			157,465
						417,544
			SOFTWARE 1.5%
		100,000	Adobe, Inc., Senior Unsecured Notes, 2.30%, 2/1/30			108,238
		150,000	Electronic Arts, Inc., Senior Unsecured Notes, 4.80%, 3/1/26			178,435
		200,000	Fiserv, Inc., Senior Unsecured Notes, 3.50%, 7/1/29(3)			228,371
		100,000	Intuit, Inc., Senior Unsecured Notes, 1.65%, 7/15/30(3)			102,680

Principal Amount				Value
CORPORATE BONDS & NOTES 46.4% (continued)
			SOFTWARE 1.5% (continued)
	$	150,000	Oracle Corp., Senior Unsecured Notes, 2.95%, 4/1/30		$	167,721
						785,445
						1,551,291
UTILITIES 3.1%
			ELECTRIC 2.8%
		175,000	CenterPoint Energy, Inc., Senior Unsecured Notes, 2.95%, 3/1/30			190,475
		100,000	Consolidated Edison Co. of New York, Inc., Senior Unsecured Notes, 4.50%, 12/1/45			129,609
		100,000	Dominion Energy, Inc., Senior Unsecured Notes, 4.25%, 6/1/28			119,942
		150,000	Duke Energy Carolinas LLC, 2.45%, 2/1/30			161,327
		150,000	Florida Power & Light Co., 4.95%, 6/1/35			207,411
		100,000	Georgia Power Co., Series B, Senior Unsecured Notes, 2.65%, 9/15/29			109,701
		100,000	Indiana Michigan Power Co., Senior Unsecured Notes, 4.25%, 8/15/48			129,298
		100,000	ITC Holdings Corp., Senior Unsecured Notes, 3.25%, 6/30/26			111,265
		100,000	National Rural Utilities Cooperative Finance Corp., 3.70%, 3/15/29			116,932
		125,000	Pinnacle West Capital Corp., Senior Unsecured Notes, 1.30%, 6/15/25			126,985
		125,000	Southern Power Co., Series E, Senior Unsecured Notes, 2.50%, 12/15/21			127,316
						1,530,261
			GAS 0.3%
		150,000	National Fuel Gas Co., Senior Unsecured Notes, 5.20%, 7/15/25			168,306
						1,698,567
TOTAL CORPORATE BONDS & NOTES (Cost $23,304,780) 46.4%						25,011,154

See Notes to Financial Statements.

TABLE OF CONTENTS

December 31, 2020

Principal Amount				Value
FOREIGN GOVERNMENT OBLIGATIONS 1.4%
	$	200,000	European Bank for Reconstruction & Development GMTN, Senior Unsecured Notes, 2.75%, 3/7/23		$	211,040
		150,000	Export-Import Bank of Korea, Senior Unsecured Notes, 3.00%, 11/1/22			156,874
		150,000	Panama Government International Bond, Senior Unsecured Notes, 4.00%, 9/22/24(3)			165,939
		200,000	Peruvian Government International Bond, Senior Unsecured Notes, 1.86%, 12/1/32(3)			201,600
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $701,655) 1.4%						735,453
LONG-TERM MUNICIPAL SECURITIES 3.7%
			CALIFORNIA 0.4%
		200,000	San Marcos California Unified School District, Refunding Revenue Bonds, 3.17%, 8/1/38			217,146
			DISTRICT OF COLUMBIA 0.5%
		250,000	District of Columbia Income Tax Secured Revenue Bonds, Build America Bonds, 4.91%, 12/1/23			282,587
			MICHIGAN 0.4%
		200,000	Lincoln Consolidated School District, General Obligation Limited, Series B, 4.32%, 5/1/37			230,064
			NEW YORK 0.5%
		225,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Subordinate Bonds, Revenue Bonds, 2.63%, 2/1/23			234,556
			TEXAS 1.6%
		250,000	Dallas Independent School District Qualified School Construction Notes, General Obligation Limited, 5.05%, 8/15/33			276,985

Principal Amount				Value
LONG-TERM MUNICIPAL SECURITIES 3.7% (continued)
			TEXAS 1.6% (continued)
	$	500,000	Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds, Baylor Health Care System Project, Series C, 4.45%, 11/15/43		$	603,715
						880,700
			WASHINGTON 0.3%
		125,000	Grant County Public Utility District No 2 Priest Rapids Hydroelectric Project, Revenue Bonds, 3.31%, 1/1/43			132,109
TOTAL LONG-TERM MUNICIPAL SECURITIES (Cost $1,787,200) 3.7%						1,977,162
U.S. GOVERNMENT AGENCY OBLIGATIONS# 16.3%
		51,102	FHLMC Gold PC Pool #A29526, 5.00%, 1/1/35			56,591
		149,790	FHLMC Gold PC Pool #C91749, 4.00%, 1/1/34			163,546
		73,108	FHLMC Gold PC Pool #G06224, 3.50%, 1/1/41			78,965
		44,346	FHLMC Gold PC Pool #J11587, 4.00%, 1/1/25			47,052
		38,062	FHLMC Gold PC Pool #Q06307, 3.50%, 2/1/42			40,957
		39,069	FHLMC Gold PC Pool #Q08656, 4.00%, 6/1/42			42,670
		64,574	FHLMC Gold PC Pool #Q08903, 3.50%, 6/1/42			69,493
		201,466	FHLMC Gold PC Pool #Q14593, 3.00%, 1/1/43			218,726
		249,164	FHLMC Gold Pool #Q34167, 4.00%, 6/1/45			272,679
		215,180	FHLMC Gold Pool #Q57991, 4.00%, 8/1/48			229,846
		245,219	FHLMC Pool #QB3856, 2.00%, 9/1/50			254,755
		274,491	FHLMC Pool #QB5314, 2.50%, 11/1/50			289,606
		310,686	FHLMC Pool #SD8023, 2.50%, 11/1/49			327,794

Principal Amount				Value
U.S. GOVERNMENT AGENCY OBLIGATIONS# 16.3% (continued)
	$	635,698	FHLMC Pool #SD8098, 2.00%, 10/1/50		$	660,416
		250,000	FNMA, 2.38%, 1/19/23			261,450
		250,000	FNMA, 2.63%, 9/6/24			271,905
		540,000	FNMA, 1.88%, 9/24/26			583,875
		87,757	FNMA Pool #AB2346, 4.50%, 2/1/41			97,336
		74,250	FNMA Pool #AB5231, 2.50%, 5/1/27			77,598
		78,754	FNMA Pool #AB5716, 3.00%, 7/1/27			82,777
		125,893	FNMA Pool #AB8144, 5.00%, 4/1/37			144,385
		92,041	FNMA Pool #AI4285, 5.00%, 6/1/41			105,967
		66,795	FNMA Pool #AJ5888, 4.50%, 11/1/41			75,086
		302,542	FNMA Pool #AR6394, 3.00%, 2/1/43			322,541
		157,488	FNMA Pool #AS5892, 3.50%, 10/1/45			168,128
		48,685	FNMA Pool #AS6102, 3.50%, 11/1/45			51,964
		89,204	FNMA Pool #AS6205, 3.50%, 11/1/45			95,221
		65,256	FNMA Pool #AS6385, 4.00%, 12/1/45			70,839
		132,393	FNMA Pool #AS9459, 4.50%, 4/1/47			144,812
		120,261	FNMA Pool #AS9562, 3.00%, 5/1/47			126,489
		131,873	FNMA Pool #AU4279, 3.00%, 9/1/43			141,883
		134,307	FNMA Pool #AV0703, 4.00%, 12/1/43			145,988
		64,632	FNMA Pool #AW7362, 2.50%, 8/1/29			67,530
		111,005	FNMA Pool #AX0416, 4.00%, 8/1/44			121,747
		88,966	FNMA Pool #AY1670, 3.50%, 2/1/45			95,550
		70,927	FNMA Pool #AY2728, 2.50%, 2/1/30			74,151
		78,579	FNMA Pool #AY4195, 4.00%, 5/1/45			86,465
		92,889	FNMA Pool #BA3885, 3.50%, 11/1/45			99,435
		229,036	FNMA Pool #CA2320, 3.50%, 9/1/48			252,762
		112,830	FNMA Pool #CA5540, 3.00%, 4/1/50			120,123
		114,806	FNMA Pool #MA0641, 4.00%, 2/1/31			123,688
		419,507	FNMA Pool #MA4012, 2.00%, 5/1/35			438,461
		122,106	FNMA Pool #MA4016, 2.50%, 5/1/40			128,830

See Notes to Financial Statements.

TABLE OF CONTENTS

Schedule of Investments (continued)

Principal Amount				Value
U.S. GOVERNMENT AGENCY OBLIGATIONS# 16.3% (continued)
	$	238,817	FNMA Pool #MA4077, 2.00%, 7/1/50		$	248,104
		281,508	FNMA Pool #MA4078, 2.50%, 7/1/50			297,010
		196,252	FNMA Pool #MA4119, 2.00%, 9/1/50			203,883
		399,017	FNMA Pool #MA4208, 2.00%, 12/1/50			414,533
		37,478	FNMA REMIC Trust Series 2013-18, Class AE, 2.00%, 3/25/28			38,616
		29,705	GNMA, Series 2011-136, Class GB, 2.50%, 5/20/40			30,501
		65,007	GNMA II Pool #5332, 4.00%, 3/20/42			71,827
		68,392	GNMA II Pool #MA1520, 3.00%, 12/20/43			72,995
		42,650	GNMA II Pool #MA2445, 3.50%, 12/20/44			46,035
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $8,464,275) 16.3%						8,753,586
U.S. TREASURY OBLIGATIONS 14.6%
			U.S. TREASURY NOTES & BONDS 14.6%
		120,000	U.S. Treasury Bonds, 5.38%, 2/15/31(3)			172,509
		500,000	U.S. Treasury Bonds, 4.38%, 2/15/38			743,320
		140,000	U.S. Treasury Bonds, 3.50%, 2/15/39			190,110
		80,000	U.S. Treasury Bonds, 1.13%, 5/15/40			75,950
		974,000	U.S. Treasury Bonds, 3.00%, 2/15/48			1,278,603
		552,000	U.S. Treasury Bonds, 2.25%, 8/15/49			631,717
		100,000	U.S. Treasury Notes, 1.75%, 2/28/22			101,891
		990,000	U.S. Treasury Notes, 1.38%, 6/30/23			1,020,319
		1,505,000	U.S. Treasury Notes, 2.25%, 11/15/24			1,621,285
		400,000	U.S. Treasury Notes, 2.13%, 5/31/26			436,672
		250,000	U.S. Treasury Notes, 1.50%, 8/15/26			264,717
		350,000	U.S. Treasury Notes, 1.13%, 2/28/27			362,947

Principal Amount				Value
U.S. TREASURY OBLIGATIONS 14.6% (continued)
			U.S. TREASURY NOTES & BONDS 14.6% (continued)
	$	615,000	U.S. Treasury Notes, 2.75%, 2/15/28		$	705,256
		250,000	U.S. Treasury Notes, 1.63%, 8/15/29			267,441
TOTAL U.S. TREASURY NOTES & BONDS (Cost $7,070,650) 14.6%						7,872,737

Shares			Value
SHORT-TERM INVESTMENTS 12.8%
		MONEY MARKET FUNDS 12.8%
	1,929,142	State Street Institutional U.S. Government Money Market Fund, Premier Class, 0.030%(4)			1,929,142
	4,969,483	State Street Navigator Securities Lending Government Money Market Portfolio(5)			4,969,483
					6,898,625
Total Short-Term Investments (Cost $6,898,625) 12.8%					6,898,625
TOTAL INVESTMENTS IN SECURITIES 108.9% (Cost $55,326,542)				$	58,619,737
EXCESS OF LIABILITIES OVER CASH AND OTHER ASSETS -8.9%					(4,766,173)
NET ASSETS 100%				$	53,853,564

(1)

Pursuant to Rule 144A under the Securities Act of 1933, this security can only be sold to qualified institutional investors.

(2)

Floating or variable rate security. The rate disclosed is the rate in effect as of December 31, 2020. The information in parentheses represents the benchmark and reference rate for each relevant security and the rate adjusts based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. For securities which do not indicate a reference rate and spread in their descriptions, the interest rate adjusts periodically based on current interest rates and, for mortgage-backed securities, prepayments in the underlying pool of assets.

(3)

A portion or all of the security was held on loan. As of December 31, 2020, the market value of the securities on loan was $5,321,920.

(4)

Rate reflects 7 day yield as of December 31, 2020.

(5)

Securities with an aggregate market value of $5,321,920 were out on loan in exchange for collateral including $4,969,483 of cash collateral as of December 31, 2020. The cash collateral was invested in a reinvestment vehicle as described in Note 1(G) in the Notes to Financial Statements.

Including Mortgage-Backed Securities issued by U.S. Government Agencies.

FHLMC

Federal Home Loan Mortgage Corp.

FNMA

Federal National Mortgage Association.

FREMF

Freddie Mac Multifamily.

GMTN

Global Medium Term Note.

GNMA

Government National Mortgage Association.

LIBOR

London Interbank Offered Rate.

MTN

Medium Term Note.

REMIC

Real Estate Mortgage Investment Conduit.

SOFR

Secured Overnight Financing Rate

See Notes to Financial Statements.

TABLE OF CONTENTS

The Value Line Tax Exempt Fund, Inc.

PORTFOLIO MANAGEMENT COMMENTARY (unaudited)

INVESTMENT OBJECTIVE

The primary investment objective of the Fund is to provide investors with the maximum income exempt from federal income taxes while avoiding undue risk to principal. Capital appreciation is a secondary objective but only when consistent with the Fund’s primary objective.

Manager Discussion of Fund Performance

Below, The Value Line Tax Exempt Fund, Inc. portfolio manager Liane Rosenberg discusses the Fund’s performance and positioning for the 12 months ended December 31, 2020.

How did the Fund perform during the annual period?

The Fund generated a total return of 3.68% during the 12 months ended December 31, 2020. This compares to the 5.21% return of the Fund’s benchmark, the Bloomberg Barclays Municipal Bond Index (the “Bloomberg Barclays Index”), during the same annual period.

What key factors were responsible for the Fund’s performance relative to its benchmark during the 12-month reporting period?

The Fund posted solid absolute gains but lagged its benchmark primarily because of duration positioning and issue selection overall. Sector allocation decisions generated mixed results.

Which tax-exempt fixed income market segments most significantly affected Fund performance?

Detracting from the Fund’s relative results most was its exposure to transportation bonds, particularly bonds issued by New York’s Mass Transit Authority. Ridership on the New York City subway system was down approximately 70% since the start of the COVID-19 pandemic, which, in turn, seriously affected the creditworthiness of these bonds. Also, the Fund’s holding in the Birmingham, Alabama Civic Center was its worst individual performer during the annual period. Convention centers were hurt nationwide by the restrictions on gathering imposed by the pandemic. From an allocation perspective, having an overweight to New York State bonds, which generally posted positive absolute returns but underperformed the Bloomberg Barclays Index during the annual period, detracted. Having no exposure to Puerto Rico bonds, which were especially strong performers during the annual period, further dampened relative results.

Partially offsetting these detractors was the Fund’s overweight to highly-rated debt of independent school districts when the municipal bond market rallied in the late spring of 2020. These bonds generally performed well, as they are supported by property taxes. Indeed, the Fund’s two best individual performers during the annual period were the independent school district debt of El Paso, Texas and of Long Beach, California. Overweights to essential services sectors, like water and electric utilities, also proved beneficial. Having an underweight to airport debt, which was hurt by the significant drop in airline passengers, and having no exposure to senior living and long-term care facilities bonds, which were hit hard by the effects of the COVID-19 pandemic, contributed positively as well. Issue selection in higher education bonds also added value. In particular, New York State Dormitory bonds issued by Barnard College and bonds issued for Penn State each generated attractive returns during the annual period, especially given the pandemic-driven pressure on university budgets.

What was the Fund’s duration strategy?

Duration positioning in the Fund detracted from its relative performance during the annual period. The Fund generally held a duration position shorter than that of the Bloomberg Barclays Index during the annual period, which hurt as interest rates declined across the yield curve, or spectrum of maturities. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

How did yield curve positioning decisions affect the Fund’s performance?

Yield curve positioning had a modestly negative effect on the Fund’s results during the annual period. The Fund was underweight long-term bonds and more heavily weighted on intermediate-term bonds, which hurt, as long-term bonds outperformed intermediate-term bonds for the annual period as a whole. Yield curve indicates the spectrum of maturities within a particular sector.

TABLE OF CONTENTS

How did the Fund use derivatives and similar instruments during the reporting period?

The Fund did not use derivatives during the reporting period.

Were there any notable changes in the Fund’s weightings during the annual period?

After the COVID-19 pandemic hit in the first quarter of 2020, we made the decision to reduce the Fund’s risk stance in terms of duration and credit quality, as before any government assistance was granted to state and local municipalities, there was growing concern about the negative effect on budgets due to rising unemployment and declining tax receipts. We increased positions in higher quality sectors, such as highly-rated general obligation bonds, and reduced overall exposure to lower quality states, such as New York State, and sectors, including health care/hospitals. We also sold bonds issued by the Port of Seattle, Washington, as this entity accounts for operations of airport, marine cargo terminals and cruise line terminals in the city, all severely impacted by the pandemic. We maintained a shorter duration position than that of the Bloomberg Barclays Index, but we did lengthen duration modestly.

How was the Fund positioned relative to its benchmark index at the end of December 2020?

At the end of December 2020, based on projections for a still-soft economy into 2021, the Fund maintained a high quality, conservative bias and a shorter duration relative to the Bloomberg Barclays Index. The Fund also maintained an underweight to long-term bonds and an emphasis on short- to intermediate-term bonds. Relative to the Bloomberg Barclays Index, the Fund was overweight high quality states, essential services bonds and school districts supported by local property taxes and was underweight senior living facilities, small colleges, single-site hospitals and credits highly correlated to travel at end of the annual period.

What is your tactical view and strategy for the months ahead?

In our view, our strategy for the Fund in the months ahead is highly dependent on how quickly the U.S. economy recovers from the effects of the COVID-19 pandemic. While the availability of a vaccine is a tremendous positive, the rollout of actual inoculations has been slow, with large segments of the population not expected to receive it until mid-year 2021. Accordingly, at the end of December 2020, the Fund remained focused on higher quality issuers and bonds with solid revenue generating capacity, such as essential services bonds. The Fund remained underweight issuers tied to hospitality and travel, senior care facilities and small colleges, which could well continue to feel weakness in their creditworthiness for some time even after the economy begins to recover. Another key factor that bears watching going forward is the change in U.S. Administration, as we closely monitor any new legislative efforts undertaken to assist state and local governments and to improve national infrastructure.

Of course, any of a number of events could cause us to reevaluate our strategy for the Fund. We also continue to closely monitor any material change in Federal Reserve posture, new tax legislation, unemployment rates, or other factors that might affect state and local governments’ credit ratings.

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The Value Line Tax Exempt Fund, Inc.

Portfolio Highlights at December 31, 2020 (unaudited)

Ten Largest Holdings*

Issue	Principal Amount			Value			Percentage of Net Assets
New Jersey State Educational Facilities Authority Revenue, Revenue Bonds, Princeton University, Ser. B, 5.00%, 7/1/35		$	1,000,000		$	1,021,500		2.1%
Massachusetts Health & Educational Facilities Authority Revenue, Revenue Bonds, Tufts University, Ser. M, 5.50%, 2/15/27			500,000			647,360		1.3%
Delaware River Pennsylvania, Joint Toll Bridge Commission, Revenue Bonds, 5.00%, 7/1/36			500,000			619,535		1.3%
San Diego Unified School District, General Obligation Unlimited, Election 2012, Ser. I, 5.00%, 7/1/47			500,000			619,000		1.3%
Pennsylvania Higher Educational Facilities Authority, State System of Higher Education, Revenue Bonds, Ser. AS, 5.00%, 6/15/28			500,000			609,670		1.2%
Metropolitan Transportation Authority, New York, Revenue Bonds, Subser. C-1, 5.00%, 11/15/34			500,000			559,420		1.1%
Metropolitan Atlanta Rapid Transit Authority, Revenue Bonds, 3rd Ser., Ser. A, 4.00%, 7/1/36			500,000			528,235		1.1%
Dry Creek California Joint Elementary School District, General Obligation Unlimited, Capital Appreciation Election 2008, AGM Insured, 0.00%, 8/1/30			500,000			430,940		0.9%
North Carolina Medical Care Commission, Refunding Revenue Bonds, Wakemed, Ser. A, 4.13%, 10/1/38			385,000			399,572		0.8%
South Carolina Public Service Authority, Revenue Bonds, Ser. A, 5.00%, 12/1/38			325,000			389,513		0.8%

Asset Allocation – Percentage of Net Assets

[MISSING IMAGE: tm213398d3-pc_assetalloc2pn.jpg]

Sector Weightings – Percentage of Total Investment Securities*

[MISSING IMAGE: tm213398d3-bc_assetallocpn.jpg]

Excludes short-term investments, if any.

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The Value Line Tax Exempt Fund, Inc.

Portfolio Highlights at December 31, 2020 (unaudited) (continued)

The following graph compares the performance of The Value Line Tax Exempt Fund, Inc. to that of the Bloomberg Barclays Municipal Bond Index* (the “Index”). The Value Line Tax Exempt 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, if any. The comparison is shown for illustrative purposes only.

Comparison of a Change in Value of a $10,000 Investment in The Value Line Tax Exempt Fund, Inc. and the Bloomberg Barclays Municipal Bond Index**

[MISSING IMAGE: tm213398d3_lc-taxexemptbw.jpg]

Performance Data: **

Average Annual Total Returns (For periods ended 12/31/2020)

Investor Class	1 Yr		5 Yrs		10 Yrs
The Value Line Tax Exempt Fund, Inc.		3.68%		2.67%		3.47%
Bloomberg Barclays Municipal Bond Index		5.21%		3.91%		4.63%

The Bloomberg Barclays Municipal Bond Index is representative of the broad based fixed income market. It includes long-term investment grade tax-exempt bonds. The returns for the Index do not reflect charges, expenses, or taxes, and it is not possible to directly invest in this unmanaged Index. The return for the Index does not reflect expenses which are deducted from the Fund’s returns.

TABLE OF CONTENTS

The Value Line Tax Exempt Fund, Inc.

Schedule of Investments

December 31, 2020

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0%
			ALABAMA 0.9%
	$	125,000	Alabama Federal Aid Highway Finance Authority, Revenue Bonds, Ser. A, 5.00%, 9/1/30		Aa1		$	159,949
		100,000	Birmingham-Jefferson Civic Center Authority, Revenue Bonds, Ser. A, 4.00%, 7/1/36		Aa3			106,083
		125,000	Water Works Board of the City of Birmingham (The), Revenue Bonds, Subser. B, 5.00%, 1/1/33		Aa3			154,865
								420,897
			ALASKA 0.6%
		250,000	Alaska Housing Finance Corp., State Capital Project, Refunding Revenue Bonds, Ser. B, 4.00%, 12/1/36		Aa2			294,785
			ARIZONA 1.0%
		250,000	City of Scottsdale Arizona, General Obligation Unlimited, Project 2004-Preserve Acquisition, 3.00%, 7/1/30		Aaa			260,477
		200,000	Yuma Municipal Property Corp., Revenue Bonds, Senior Lien, 5.00%, 7/1/27		A1			239,812
								500,289
			CALIFORNIA 17.4%
		40,000	Bay Area Toll Authority, Toll Bridge, Revenue Bonds, Ser. F-1, 5.00%, 4/1/56		Aa3			47,743
		150,000	California Educational Facilities Authority Stanford University, Revenue Bonds, 5.25%, 4/1/40		Aaa			237,563
		65,000	California Health Facilities Financing Authority, Providence Health & Services, Revenue Bonds, Ser. A, 5.00%, 10/1/38		NR(2)			76,616
		90,000	California Health Facilities Financing Authority, Providence Health & Services, Revenue Bonds, Ser. A, 5.00%, 10/1/38		Aa3			103,929
		90,000	California Health Facilities Financing Authority, Revenue Bonds, Lucile Packard Stanford Hospital, Ser. B, 5.00%, 8/15/55		A1			106,300
		150,000	California Health Facilities Financing Authority, Revenue Bonds, Lucile Saltel Packard Children’s, Ser. A, 5.00%, 8/15/43		A1			167,562
		100,000	California Health Facilities Financing Authority, Revenue Bonds, Stanford Health Care, Ser. A, 5.00%, 11/15/37		Aa3			125,863
		100,000	California State Public Works Board, Revenue Bonds, Department of Education, Ser. H, 5.00%, 4/1/31		Aa3			126,201
		200,000	California State Public Works Board, Revenue Bonds, Ser. H, 5.00%, 12/1/24		Aa3			236,648
		150,000	California State University Systemwide, Revenue Bonds, Ser. A, 5.00%, 11/1/34		Aa2			188,105
		200,000	California State, General Obligation Unlimited, 5.00%, 2/1/38		Aa2			209,672
		180,000	California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System/West, Ser. A, 4.38%, 3/1/44		A(3)			201,823
		250,000	Cupertino Union School District, General Obligation Unlimited, Election 2012, Ser. C, 4.00%, 8/1/40		Aa1			286,937
		500,000	Dry Creek California Joint Elementary School District, General Obligation Unlimited, Capital Appreciation Election 2008, AGM Insured, 0.00%, 8/1/30(4)		A2			430,940
		75,000	East Bay Municipal Utility District Water System Revenue, Revenue Bonds, Ser. C, 4.00%, 6/1/40		Aa1			84,878
		250,000	El Cajon Redevelopment Agency Successor Agency, Tax Allocation Refunding Bonds, BAM Insured, 5.00%, 10/1/35		AA(3)			320,010
		150,000	Fresno Joint Powers Financing Authority Lease (Master Lease Projects), Revenue Refunding Bonds, Ser. A, AGM Insured, 5.00%, 4/1/34		A2			181,146
		300,000	Golden State Tobacco Securitization Corp., Asset-Backed Bonds, Ser. A, 5.00%, 6/1/32		Aa3			353,370
		150,000	Golden State Tobacco Securitization Corp., Ser. A-1, 5.00%, 6/1/22		A(3)			159,683
		170,000	Long Beach Unified School District, General Obligation Unlimited, Ser. B, 3.00%, 8/1/48		Aa2			184,885
		215,000	Long Beach Unified School District, General Obligation Unlimited, Ser. E, 5.00%, 8/1/41		Aa2			260,937
		60,000	Los Angeles County Metropolitan Transportation Authority, Refunding Revenue Bonds, Proposition C, Senior Ser. B, 5.00%, 7/1/22		Aa1			64,345
		200,000	Los Angeles County Public Works Financing Authority, Lease Revenue, Revenue Bonds, Ser. D, 4.00%, 12/1/40		Aa2			224,174
		115,000	Los Angeles Unified School District, Election 2005, General Obligation Unlimited, Ser. M-1, 5.00%, 7/1/36		Aa3			144,967
		330,000	Metropolitan Water District of Southern California, Refunding Revenue Bonds, Ser. C, 4.00%, 10/1/22		Aa1			339,454
		60,000	Metropolitan Water District of Southern California, Refunding Revenue Bonds, Ser. F, 5.00%, 7/1/28		Aa1			64,323
		150,000	Modesto Irrigation District Electric System, Revenue Bonds, Ser, 5.00%, 10/1/32		A+(3)			187,161
		225,000	Napa Valley Unified School District, General Obligation Unlimited, Ser. A, 5.00%, 8/1/28		A1			278,435
		185,000	Oxnard Financing Authority, Revenue Bonds, BAM Insured, 5.00%, 6/1/35		AA(3)			233,255
		65,000	Roseville Natural Gas Financing Authority, Revenue Bonds, 5.00%, 2/15/27		A2			80,664
		50,000	Sacramento City Financing Authority, Revenue Bonds, Master Lease Program Facilities, Ser. E, AMBAC Insured, 5.25%, 12/1/24		Aa3			59,950

See Notes to Financial Statements.

TABLE OF CONTENTS

Schedule of Investments (continued)

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0% (continued)
			CALIFORNIA 17.4% (continued)
	$	150,000	Sacramento Municipal Utility District, Revenue Bonds, Ser. A, 5.00%, 8/15/41		Aa3		$	166,322
		250,000	San Diego County Regional Transportation Commission, Revenue Bonds, Ser. A, 5.00%, 4/1/42		Aa2			265,097
		60,000	San Diego Redevelopment Agency Successor Agency, Tax Allocation Refunding Bonds, Ser. A, 5.00%, 9/1/35		AA(3)			72,445
		500,000	San Diego Unified School District, General Obligation Unlimited, Election 2012, Ser. I, 5.00%, 7/1/47		Aa2			619,000
		100,000	San Francisco City & County Airport Commission San Francisco International Airport, Second Series Revenue Bonds, Ser. E, 5.00%, 5/1/48		A1			122,057
		200,000	San Francisco City & County Redevelopment Agency Successor Agency, Ser. A, 5.00%, 8/1/35		A(3)			239,506
		200,000	San Jose Unified School District Santa Clara Country, General Obligation Unlimited, Election 2012, Ser. A, 3.80%, 8/1/37		Aa1			216,908
		130,000	San Marcos Redevelopment Agency Successor Agency, Tax Allocation, Refunding Bonds, Ser. A, 5.00%, 10/1/25		AA-(3)			157,271
		220,000	Southern California Public Power Authority, Mead-Adelanto Project, Authority Interest, Revenue Bonds, Ser. A, 5.00%, 7/1/29		Aa2			269,229
		150,000	State of California, General Obligation Unlimited, Various Purpose Bonds, 5.00%, 8/1/26		Aa2			188,711
		125,000	Union City Community Redevelopment Agency, Ser. B, 5.00%, 10/1/31		AA-(3)			155,266
		150,000	University of California, Revenue Bonds, Ser. I, 5.00%, 5/15/28		Aa3			179,537
		175,000	Whittier City School District, General Obligation Limited, Ser. D, 3.00%, 8/1/44		Aa3			191,139
								8,610,027
			COLORADO 1.4%
		175,000	Buffalo Ridge Metropolitan District, General Obligation Unlimited, Ser. A, BAM Insured, 4.00%, 12/1/47		A3			200,933
		200,000	Colorado Health Facilities Authority, Adventhealth Obligated Group, Refunding Bonds, 4.00%, 11/15/43		Aa2			234,382
		225,000	State of Colorado, Building Excellent Scholl, Certificate Participation, Ser. J, 5.00%, 3/15/37		Aa2			274,919
								710,234
			CONNECTICUT 1.1%
		105,000	Connecticut Housing Finance Authority, Revenue Bonds, Subser. C-1, 3.75%, 11/15/35		Aaa			105,993
		250,000	South Central Connecticut Regional Water Authority, Revenue Bonds, Twenty-Seventh Series, General Obligation of Authority Insured, 5.00%, 8/1/27		Aa3			269,032
		150,000	State of Connecticut Transportation Infrastructure Purposes, Special Tax Obligation, Revenue Bonds, Ser. B, 5.00%, 10/1/27		A+(3)			192,353
								567,378
			DELAWARE 0.6%
		265,000	Delaware Transportation Authority, US 301 Project, Revenue Bonds, 5.00%, 6/1/45		Aa3			304,549
			DISTRICT OF COLUMBIA 0.6%
		30,000	District of Columbia, Prerefunded, Ser. G, 5.00%, 12/1/36		NR(2)			31,305
		70,000	District of Columbia, Ser. G, 5.00%, 12/1/36		AAA(3)			72,771
		145,000	District of Columbia Income, General Obligation Unlimited, Ser. A, 5.00%, 6/1/43		Aaa			183,104
								287,180
			FLORIDA 4.8%
		140,000	Central Florida Expressway Authority, Revenue Bonds, Ser. A, 4.00%, 7/1/37		A1			157,861
		180,000	City of Jacksonville, Florida Special Revenue, Revenue Bonds, Ser. A, 5.25%, 10/1/47		A1			222,799
		100,000	City of Marco Island, Florida Utility System Revenue, Revenue Bonds, 4.00%, 10/1/38		Aa3			111,997
		185,000	City of Miami Beach Florida Water & Sewer Revenue, Revenue Bonds, 5.00%, 9/1/36		Aa3			230,081
		180,000	County of Miami-Dade Florida Aviation Revenue, Revenue Bonds, 5.00%, 10/1/41		A-(3)			213,235
		250,000	County of Palm Beach, Florida Public Improvement, Revenue Bonds, Ser. D, 5.00%, 12/1/40		Aa1			299,222
		125,000	County of Palm Beach, Florida Public Improvement, Revenue Bonds, Ser. D, 5.00%, 12/1/45		Aa1			148,406
		240,000	County of State Lucie, Florida Sales Tax Revenue, Refunding Revenue Bonds, Ser. A, AGM Insured, 5.00%, 10/1/24		A1			269,590
		185,000	Florida Housing Finance Corp., Revenue Bonds, Ser. 1, (GNMA/FNMA/FHLMC), 4.00%, 7/1/49		Aaa			202,316
		125,000	Miami-Dade County Expressway Authority, Revenue Bonds, Ser. A, 5.00%, 7/1/23		A3			132,979
		325,000	Orange County Health Facilities Authority, Revenue Bonds, Ser. A, 5.00%, 10/1/39		A2			387,731
								2,376,217

See Notes to Financial Statements.

TABLE OF CONTENTS

December 31, 2020

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0% (continued)
			GEORGIA 1.8%
	$	500,000	Metropolitan Atlanta Rapid Transit Authority, Revenue Bonds, 3rd Ser., Ser. A, 4.00%, 7/1/36		Aa2		$	528,235
		350,000	Valdosta & Lowndes County Hospital Authority, Revenue Bonds, South Medical Center Project, Ser. B, County Guaranteed Insured, 5.00%, 10/1/41		Aa2			362,610
								890,845
			GUAM 0.3%
		120,000	Guam Power Authority, Revenue Bonds, Ser. A, AGM Insured, 5.00%, 10/1/39		A2			135,358
			HAWAII 0.7%
		100,000	City & County Honolulu Hawaii, General Obligation Unlimited, Ser. A, 5.00%, 10/1/38		Aa1			119,474
		185,000	State of Hawaii, General Obligation Unlimited, Ser. FG, 4.00%, 10/1/35		Aa2			214,200
								333,674
			IDAHO 0.5%
		250,000	Idaho State Building Authority, Revenue Bonds, 5.00%, 9/1/40		Aa2			270,040
			ILLINOIS 0.8%
		100,000	Cook County Forest Preserve District, General Obligation Unlimited, Ser. C, 5.00%, 12/15/37		A2			105,643
		150,000	Illinois State Toll Highway Authority, Revenue Bonds, Ser. C, 5.00%, 1/1/37		A1			172,135
		100,000	Metropolitan Water Reclamation District of Greater Chicago, General Obligation Unlimited, Ser. A, 5.00%, 12/1/44		AA(3)			114,459
								392,237
			INDIANA 0.3%
		135,000	Indiana Municipal Power Agency, Revenue Bonds, Ser. A, 5.00%, 1/1/42		A1			160,360
			IOWA 0.1%
		50,000	Iowa Finance Authority, Health Care Facility, Genesis Health System, Revenue Bonds, 5.00%, 7/1/22		A1			53,295
			KANSAS 0.6%
		250,000	State of Kansas Department of Transportation, Revenue Bonds, Ser. A, 5.00%, 9/1/32		Aa2			313,393
			KENTUCKY 0.5%
		110,000	Kentucky Economic Development Finance Authority, Revenue Bonds, Ser. A, AGM Insured, 4.00%, 6/1/37		A2			124,349
		125,000	Louisville & Jefferson County Visitors and Convention Commission, Revenue Bonds, 4.00%, 6/1/23		Aa3			130,341
								254,690
			LOUISIANA 1.5%
		300,000	Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue Bonds, City of Bossier City, 5.00%, 11/1/26		Aa3			364,866
		100,000	Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue Bonds, Women’s Hospitals Foundation Projects, 5.00%, 10/1/44		A2			119,034
		145,000	State of Louisiana Gasoline & Fuels Tax Revenue, Revenue Bonds, Ser. C-1, 5.00%, 5/1/30		Aa3			161,224
		85,000	State of Louisiana Highway Improvement Revenue, Revenue Bonds, Ser. A, 5.00%, 6/15/28		A1			98,151
								743,275
			MAINE 0.9%
		200,000	Maine State Health & Higher Educational Facilities Authority Revenue, Refunding Revenue Bonds, Colby College, Ser. A, 5.00%, 7/1/39		Aa2			233,360
		80,000	Maine State Housing Authority (Mortgage), Revenue Bonds, Ser. A, 3.80%, 11/15/39		Aa1			88,927
		100,000	Maine Turnpike Authority, Revenue Bonds, Ser. A, 5.00%, 7/1/37		Aa3			105,372
								427,659
			MARYLAND 0.6%
		130,000	City of Baltimore, Maryland Subordinate (Water Projects), Revenue Bonds, Ser. A, 5.00%, 7/1/31		Aa3			160,352
		100,000	County of Anne Arundel, Maryland, General Obligation Limited, 5.00%, 10/1/36		NR(2)			123,223
								283,575

See Notes to Financial Statements.

TABLE OF CONTENTS

Schedule of Investments (continued)

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0% (continued)
			MASSACHUSETTS 5.7%
	$	75,000	Commonwealth of Massachusetts, Revenue Bonds, 5.50%, 1/1/30		A1		$	100,862
		250,000	Massachusetts Bay Transportation Authority, Revenue Assessment Bonds, Ser. A, 4.00%, 7/1/37		Aa1			260,960
		175,000	Massachusetts Bay Transportation Authority, Revenue Bonds, Ser. A-1, 5.00%, 7/1/36		Aa3			219,072
		250,000	Massachusetts Development Finance Agency, Boston Medical Center, Revenue Bonds, Ser. D, 5.00%, 7/1/44		Baa2			280,003
		225,000	Massachusetts Development Finance Agency, Harvard University, Revenue Bonds, Ser. B-2, 5.25%, 2/1/34		Aaa			225,839
		75,000	Massachusetts Development Finance Agency, Revenue Bonds, 5.00%, 7/1/36		NR(2)			76,769
		250,000	Massachusetts Development Finance Agency, Umass Memorial Health Care, Revenue Bonds, 3.63%, 7/1/37		BBB+(3)			272,138
		500,000	Massachusetts Health & Educational Facilities Authority Revenue, Revenue Bonds, Tufts University, Ser. M, 5.50%, 2/15/27		Aa2			647,360
		250,000	Massachusetts School Building Authority Sales Tax Revenue, Revenue Bonds, Senior Ser. B, 5.00%, 10/15/41		Aa2			259,480
		165,000	Massachusetts School Building Authority Sales Tax Revenue, Revenue Bonds, Senior Ser. B, 5.00%, 11/15/46		Aa2			201,234
		250,000	Massachusetts School Building Authority, Refunding Revenue Bonds, Ser. B, 3.40%, 10/15/40		Aa3			268,935
								2,812,652
			MICHIGAN 1.7%
		200,000	Jackson Public Schools County of Jackson, Michigan 2018 School Building and Site Bonds, General Obligation Unlimited, 5.00%, 5/1/48		Aa1			244,114
		250,000	Michigan Finance Authority, Henry Ford Health System, Revenue Bonds, 4.00%, 11/15/46		A2			278,860
		120,000	Michigan State Building Authority, Revenue Bonds, Ser. I, 5.00%, 10/15/32		Aa2			147,896
		150,000	Port Huron Area School District, General Obligation Unlimited, AGM Insured, 4.00%, 5/1/42		A1			166,094
								836,964
			MINNESOTA 0.6%
		110,000	County of Jackson, Minnesota Capital Improvement Plan, General Obligation Unlimited, Ser. C, 3.00%, 2/1/38		AA(3)			120,208
		150,000	State of Minnesota Public Facilities Authority Revenue, Refunding Revenue Bonds, Ser. B, 5.00%, 3/1/28		Aaa			185,117
								305,325
			MISSISSIPPI 0.2%
		90,000	Mississippi Development Bank, Jackson Public School District Limited, Revenue, Refunding Revenue Bonds, Ser. A, 5.00%, 4/1/27		A+(3)			109,164
			MISSOURI 0.9%
		120,000	Health & Educational Facilities Authority of the State of Missouri (Mercy Health), Refunding Revenue Bonds, Ser. C, 4.00%, 11/15/37		A1			138,566
		150,000	Metropolitan State Louis Sewer District, Waste Water System Improvement, Refunding Revenue Bonds, Ser. B, 5.00%, 5/1/31		Aa1			179,352
		130,000	Missouri Housing Development Commission Single Family Mortgage (First Place Homeownership Loan Program), Revenue Bonds, (GNMA/FNMA/FHLMC), 4.25%, 5/1/49		AA+(3)			145,032
								462,950
			NEBRASKA 0.2%
		95,000	Public Power Generation Agency, Revenue Bonds, Ser. A, 5.00%, 1/1/38		A2			114,381
			NEVADA 2.8%
		250,000	City of Henderson, Nevada Refunding, General Obligation Limited, 4.00%, 6/1/31		Aa2			268,257
		250,000	Clark County School District, General Obligation Unlimited, Ser. A, 4.00%, 6/15/35		A1			291,252
		230,000	Clark County School District, General Obligation Unlimited, Ser. C, 5.00%, 6/15/29		A1			290,196
		200,000	County of Clark, Stadium Improvement, General Obligation Limited, Ser. A, 5.00%, 5/1/48		Aa1			243,038
		240,000	Las Vegas Valley Water District, General Obligation Limited, Ser. A, 3.38%, 6/1/38		Aa1			268,594
								1,361,337
			NEW HAMPSHIRE 0.7%
		95,000	New Hampshire Health and Education Facilities Authority Act, University System of New Hampshire Issue, Refunding Revenue Bonds, Ser. A, 5.00%, 7/1/37		Aa3			115,976
		200,000	New Hampshire Housing Finance Authority, Revenue Bonds, Ser. 1, 3.75%, 7/1/54		Aaa			217,820
								333,796

See Notes to Financial Statements.

TABLE OF CONTENTS

December 31, 2020

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0% (continued)
			NEW JERSEY 5.6%
	$	135,000	County of Essex NJ, General Obligation Limited, Ser. A, 4.00%, 9/1/29		Aaa		$	164,024
		170,000	New Jersey Economic Development Authority, Refunding Revenue Bonds, Ser. B, 5.00%, 11/1/27		Baa1			210,009
		270,000	New Jersey Economic Development Authority, Revenue Bonds, Ser. AAA, 5.50%, 6/15/27		Baa1			333,677
		150,000	New Jersey Economic Development Authority, Revenue Bonds, Ser. B, 5.00%, 6/15/38		Baa1			183,202
		30,000	New Jersey Institute of Technology, Revenue Bonds, Prerefunded, Ser. A, 5.00%, 7/1/42		NR(2)			32,117
		70,000	New Jersey Institute of Technology, Revenue Bonds, Unrefunded, Ser. A, 5.00%, 7/1/42		A1			74,992
		1,000,000	New Jersey State Educational Facilities Authority Revenue, Revenue Bonds, Princeton University, Ser. B, 5.00%, 7/1/35		Aaa			1,021,500
		165,000	New Jersey State Turnpike Authority, Revenue Bonds, Ser. A, 5.00%, 1/1/29		A2			176,896
		100,000	New Jersey State Turnpike Authority, Revenue Bonds, Ser. F, 5.00%, 1/1/35		A2			107,966
		110,000	New Jersey Transportation Trust Fund Authority, Revenue Bonds, Ser. B, AMBAC Insured, 5.25%, 12/15/23		Baa1			124,595
		150,000	New Jersey Transportation Trust Fund Authority, Revenue Bonds, Ser. BB, 4.00%, 6/15/36		Baa1			169,487
		150,000	North Bergen Township Board of Education, General Obligation Limited, BAM Insured, 2.50%, 2/1/40		AA(3)			153,341
								2,751,806
			NEW MEXICO 0.6%
		250,000	State of New Mexico, Severance Tax Permanent Fund, Revenue Bonds, Ser. A, 5.00%, 7/1/24		Aa2			291,368
			NEW YORK 13.6%
		210,000	Battery Park City Authority, Revenue Bonds, Ser. B, 4.00%, 11/1/41		Aaa			257,475
		250,000	City of New York, General Obligation Unlimited, Fiscal 2012, Ser. A-1, 5.00%, 8/1/32		Aa2			257,005
		250,000	Housing Development Corp., Revenue Bonds, Ser. D-1-B, 4.20%, 5/1/37		Aa2			254,787
		175,000	Long Island Power Authority, Revenue Bonds, Ser. B, 5.00%, 9/1/41		A2			209,534
		200,000	Metropolitan Transportation Authority, New York, Revenue Bonds, Ser. A, AGM Insured, 5.00%, 11/15/36		A2			208,416
		150,000	Metropolitan Transportation Authority, New York, Revenue Bonds, Ser. C-1, 5.00%, 11/15/29		A3			178,395
		500,000	Metropolitan Transportation Authority, New York, Revenue Bonds, Subser. C-1, 5.00%, 11/15/34		A3			559,420
		100,000	Municipal Water Finance Authority, Water and Sewer System Revenue, Revenue Bonds, Ser. DD, 5.00%, 6/15/34		Aa1			110,951
		65,000	Municipal Water Finance Authority, Water and Sewer System Revenue, Revenue Bonds, Ser. EE, 5.00%, 6/15/45		Aa1			74,173
		60,000	Municipal Water Finance Authority, Water and Sewer System Revenue, Revenue Bonds, Ser. FF, 5.00%, 6/15/45		Aa1			63,951
		100,000	New York City Transitional Finance Authority Building Aid Revenue, Revenue Bonds, Ser. 1, 4.00%, 7/15/36		Aa3			112,497
		300,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Fiscal 2011, Ser. D, 5.00%, 2/1/35		Aa1			300,978
		120,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Subordinated Future Tax Secured, Subser. A-1, 5.00%, 8/1/26		Aa1			139,811
		150,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Subordinated Future Tax Secured, Subser. B-1, 5.00%, 8/1/32		Aa1			182,139
		200,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Subser. A-1, 5.00%, 8/1/31		Aa1			231,548
		200,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Subser. B-1, 5.00%, 8/1/39		Aa1			229,478
		250,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Subser. E-1, 5.00%, 2/1/32		Aa1			299,645
		245,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Subser. E-1, 5.00%, 2/1/40		Aa1			288,598
		170,000	New York Convention Center Development Corp., Hotel Unit Fee Secured, Refunding Revenue Bonds, 5.00%, 11/15/40		A1			193,953
		100,000	New York State Dormitory Authority, Revenue Bonds, Barnard College, Ser. A, 5.00%, 7/1/30		A2			119,000
		50,000	New York State Dormitory Authority, Revenue Bonds, Memorial Sloan-Kettering Cancer Center, 5.00%, 7/1/25		Aa3			52,411
		150,000	New York State Dormitory Authority, Revenue Bonds, State Personal Income Tax Revenues General Purpose, Ser. A, 4.50%, 3/15/35		Aa2			151,145
		250,000	New York State Dormitory Authority, Revenue Bonds, State Personal Income Tax Revenues General Purpose, Ser. A, 5.00%, 2/15/23		Aa2			275,160

See Notes to Financial Statements.

TABLE OF CONTENTS

Schedule of Investments (continued)

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0% (continued)
			NEW YORK 13.6% (continued)
	$	125,000	New York State Dormitory Authority, Revenue Bonds, State Personal Income Tax Revenues, Ser. 1, 5.00%, 1/15/31		Aa3		$	155,996
		200,000	New York State Urban Development Corp., Refunding Revenue Bonds, Ser. A, 4.00%, 3/15/44		Aa2			234,792
		250,000	New York State Urban Development Corp., State Personal Income Tax Revenue, Revenue Bonds, Ser. A, 5.00%, 3/15/28		Aa2			301,065
		150,000	New York State, General Obligation Unlimited, Fiscal 2015, Ser. A, 5.00%, 8/1/26		Aa2			174,588
		100,000	Port Authority of New York & New Jersey, Consolidated Bonds, Revenue Bonds, One Hundred Seventy-First Series, 4.00%, 7/15/38		Aa3			103,360
		100,000	Port Authority of New York & New Jersey, Consolidated Bonds, Revenue Bonds, One Hundred Sixty-Sixth Series, General Obligation of Authority Insured, 5.00%, 7/15/33		Aa3			100,312
		325,000	Port Authority of New York & New Jersey, Revenue Bonds, 194th Series, 5.00%, 10/15/41		Aa3			380,458
		250,000	Triborough Bridge & Tunnel Authority, Revenue Bonds, Ser. B, 5.00%, 11/15/36		Aa3			308,675
		185,000	Utility Debt Securitization Authority, Restructuring Refunding Revenue Bonds, Ser. A, 5.00%, 12/15/35		Aaa			225,881
								6,735,597
			NORTH CAROLINA 3.0%
		100,000	City of Charlotte NC Airport Revenue, Revenue Bonds, Ser. A, 5.00%, 7/1/31		Aa3			124,952
		135,000	City of Charlotte NC Airport Revenue, Revenue Bonds, Ser. C, 4.00%, 6/1/36		Aa2			163,571
		305,000	Nash Health Care Systems Health Care Facilities Revenue, Revenue Bonds, 4.50%, 11/1/37		BBB(3)			316,407
		385,000	North Carolina Medical Care Commission, Refunding Revenue Bonds, Wakemed, Ser. A, 4.13%, 10/1/38		A2			399,572
		150,000	North Carolina Medical Care Commission, Revenue Bonds, Duke University Health System, Ser. A, 5.00%, 6/1/42		Aa2			160,211
		315,000	State of North Carolina Capital Improvement Obligation, Revenue Bonds, Ser. C, 3.50%, 5/1/27		Aa1			318,440
								1,483,153
			NORTH DAKOTA 0.3%
		135,000	North Dakota Public Finance Authority, State Revolving Fund Program, Revenue Bonds, Ser. A, 5.00%, 10/1/26		Aaa			139,741
			OHIO 2.3%
		200,000	City of Akron, Ohio Community Learning Centers, Refunding Revenue Bonds, Ser. A, 5.00%, 12/1/28		AA-(3)			212,206
		250,000	City of Cleveland, Ohio Water Pollution Control, Green Bonds, Revenue Bonds, 5.00%, 11/15/45		Aa3			294,522
		325,000	Cleveland Department of Public Utilities Division of Water Revenue, Revenue Bonds, Senior Lien Ser. X, 3.63%, 1/1/37		Aa2			336,089
		250,000	Country of Franklin, Ohio Hospital Facilities Revenue, Revenue Bonds, 5.00%, 5/15/45		Aa2			287,455
								1,130,272
			OKLAHOMA 0.9%
		135,000	Grand River Dam Authority, Revenue Bonds, Ser. A, 5.00%, 6/1/27		A1			169,274
		250,000	Oklahoma Capital Improvement Authority, Revenue Bonds, 5.00%, 10/1/23		AA-(3)			258,912
								428,186
			OREGON 1.0%
		280,000	County of Multnomah Oregon, General Obligation Unlimited, 4.00%, 6/1/42		Aaa			323,422
		150,000	Oregon State Department of Administrative Services Lottery Revenue, Revenue Bonds, Ser. D, 5.00%, 4/1/28		Aa2			178,037
								501,459
			PENNSYLVANIA 4.4%
		200,000	Central Bradford Progress Authority, Guthrie Healthcare System, Revenue Bonds, 5.00%, 12/1/31		A+(3)			208,700
		160,000	City of Philadelphia Pennsylvania, General Obligation Unlimited, Ser. A, 5.00%, 8/1/37		A2			194,493
		500,000	Delaware River Pennsylvania, Joint Toll Bridge Commission, Revenue Bonds, 5.00%, 7/1/36		A1			619,535
		500,000	Pennsylvania Higher Educational Facilities Authority, State System of Higher Education, Revenue Bonds, Ser. AS, 5.00%, 6/15/28		Aa3			609,670
		100,000	Pennsylvania Infrastructure Investment Authority, Revenue Bonds, Ser. A, 4.00%, 5/15/32		AAA(3)			114,052
		250,000	Pennsylvania Turnpike Commission, Motor License, Refunding Revenue Bonds, 5.00%, 12/1/35		A2			309,092
		100,000	Pennsylvania Turnpike Commission, Revenue Bonds, Ser. A-2, 5.00%, 12/1/24		A1			118,324
								2,173,866

See Notes to Financial Statements.

TABLE OF CONTENTS

December 31, 2020

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0% (continued)
			RHODE ISLAND 0.3%
	$	135,000	Rhode Island Health & Educational Building Corp. Public School, Revenue Bonds, 5.00%, 5/15/28		A1		$	171,168
			SOUTH CAROLINA 1.4%
		75,000	Fort Mill School District No. 4, General Obligation Unlimited, Ser. B, 5.00%, 3/1/27		Aa1			95,758
		325,000	South Carolina Public Service Authority, Revenue Bonds, Ser. A, 5.00%, 12/1/38		A2			389,513
		210,000	South Carolina Transportation Infrastructure Bank, Revenue Bonds, Ser. A, 3.00%, 10/1/36		Aa3			222,419
								707,690
			TENNESSEE 1.0%
		100,000	City Of Memphis, Tennessee Gas System Revenue Bonds, 5.00%, 12/1/26		Aa1			127,087
		250,000	Shelby County Health Educational & Housing Facilities Board, Revenue Bonds, Methodist Le Bonheur Healthcare, 5.00%, 5/1/42		A1			265,492
		80,000	Tennessee Housing Development Agency, Revenue Bonds, Ser. 1C, 3.05%, 1/1/24		Aa1			85,477
								478,056
			TEXAS 7.3%
		170,000	Brushy Creek Regional Utility Authority, Inc., Water Treatment & Distributions Project, Revenue Bonds, 5.00%, 8/1/34		AA-(3)			207,766
		120,000	City of Arlington, Subordinate Lien Special Tax, Revenue Bonds, Ser. C, BAM Insured, 5.00%, 2/15/33		A3			142,868
		65,000	City of Houston Texas, Combined Utility System Revenue, Revenue Bonds, Ser. D, 5.00%, 11/15/42		AA(3)			70,844
		125,000	City of Leander, Texas Certificates of Obligation, Parking Facility Improvements, General Obligation Limited, 5.00%, 8/15/32		Aa2			144,781
		70,000	City of Lubbock, Texas Certificates of Obligation, Waterworks System, General Obligation Limited, 5.00%, 2/15/23		Aa2			76,965
		90,000	City of McAllen Texas, General Obligation Limited, 5.00%, 2/15/32		AA+(3)			114,722
		150,000	City of San Antonio Texas, Electric & Gas Systems Revenue, Revenue Bonds, 5.00%, 2/1/39		Aa1			185,645
		200,000	City of San Antonio Texas, Water System Revenue, Junior Lien, Refunding Revenue Bonds, Ser. B, 5.00%, 5/15/32		Aa2			238,712
		150,000	Corpus Christi Independent School District, General Obligation Unlimited, (PSF-GTD), 3.00%, 8/15/40		Aaa			168,519
		275,000	Dallas Area Rapid Transit, Revenue Bonds, Ser. A, 5.00%, 12/1/36		Aa2			331,534
		200,000	El Paso Independent School District, General Obligation Limited, (PSF-GTD), 4.00%, 8/15/43		Aaa			237,210
		170,000	Harris County Municipal Utility District No. 82, General Obligation Unlimited, BAM Insured, 2.00%, 10/1/30		AA(3)			175,299
		250,000	Lower Colorado River Authority, Revenue Bonds, Ser. A, 5.00%, 5/15/31		A1			276,273
		200,000	Olmos Park Higher Education Facilities Corp., Refunding Revenue Bonds, University of the Incarnate Word, 5.00%, 12/1/23		A3			214,358
		110,000	Spring Independent School District, General Obligation Unlimited, PSF-GTD Insured, 4.00%, 8/15/34		Aaa			128,174
		100,000	State of Texas, Transportation Commission, Highway Improvement, 5.00%, 4/1/25		Aaa			115,479
		150,000	State of Texas, Water Financial Assistance, General Obligation Unlimited, Ser. A, 3.00%, 8/1/35		Aaa			159,276
		275,000	Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds, Baylor Health Care System Project, Ser. A, 5.00%, 11/15/38		Aa3			300,228
		150,000	Texas Water Development Board, Revenue Bonds, 3.00%, 10/15/38		AAA(3)			172,568
		100,000	Trinity River Authority Central Regional Wastewater System Revenue, Revenue Bonds, 5.00%, 8/1/33		AAA(3)			125,858
								3,587,079
			VERMONT 0.7%
		200,000	Vermont Educational & Health Buildings Financing Agency, Revenue Bonds, Saint Michael’s College, 5.00%, 10/1/42		Baa2			204,470
		135,000	Vermont Educational & Health Buildings Financing Agency, University of Vermont Medical Center Project, Green Bonds, Revenue Bonds, 5.00%, 12/1/46		A3			156,784
								361,254
			WASHINGTON 3.1%
		250,000	City of Seattle Washington, Limited Tax Improvement Bonds, General Obligation Limited, 4.25%, 3/1/28		Aaa			251,475
		200,000	City of Spokane Washington, General Obligation Unlimited, 4.00%, 12/1/40		Aa2			235,088
		75,000	County of King Washington Refunding Limited Tax, General Obligation Limited, Ser. E, 4.00%, 7/1/31		Aaa			89,744
		165,000	County of King Washington Refunding, General Obligation Limited, Ser. E, 5.00%, 12/1/30		Aaa			200,521
		100,000	County of Pierce Washington, Sewer Revenue, Revenue Bonds, 4.00%, 8/1/37		AA(3)			105,962

See Notes to Financial Statements.

TABLE OF CONTENTS

Schedule of Investments (continued)

Principal Amount				Rating(1) (unaudited)		Value
LONG-TERM MUNICIPAL SECURITIES 96.0% (continued)
			WASHINGTON 3.1% (continued)
	$	350,000	Washington Health Care Facilities Authority, Revenue Bonds, Providence Health & Services, Ser. A, 4.25%, 10/1/37		Aa3		$	365,747
		250,000	Washington State, Water Utility Improvements, General Obligation Unlimited, Ser. A, 5.00%, 8/1/37		Aaa			306,605
								1,555,142
			WISCONSIN 0.2%
		100,000	City of Stoughton, General Obligation Unlimited, Ser. A, 3.38%, 4/1/38		Aa2			111,777
			WYOMING 0.5%
		220,000	Laramie County Wyoming, Revenue Bonds, Cheyenne Regional Medical Center Project, 5.00%, 5/1/42		A(3)			222,314
			TOTAL LONG-TERM MUNICIPAL SECURITIES 96.0% (Cost $44,356,218)				$	47,496,454
			CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 4.0%					1,980,925
			NET ASSETS 100.0%				$	49,477,379

(1)

Rated by Moody’s Investor Service unless otherwise specified.

(2)

Security no longer rated by Moody’s Investor Service or Standard & Poor’s.

(3)

Rated by Standard & Poor’s.

(4)

Zero coupon bond.

AGM

Assured Guaranty Municipal.

AMBAC

American Municipal Bond Assurance Corporation.

BAM

Build America Mutual.

PSF-GTD

Permanent School Fund Guaranteed.

The following table summarizes the inputs used to value the Fund’s investments in securities as of December 31, 2020 (See Note 1(B)):

Investments in Securities:	Level 1			Level 2			Level 3			Total
Assets
Long-Term Municipal Securities*		$	—		$	47,496,454		$	—		$	47,496,454
Total Investments in Securities		$	—		$	47,496,454		$	—		$	47,496,454

See Schedule of Investments for further breakdown by category.

See Notes to Financial Statements.

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Statements of Assets and Liabilities

at December 31, 2020

	Value Line Core Bond Fund			The Value Line Tax Exempt Fund, Inc.
Assets:
Investments in securities, at value*		$	58,619,737		$	47,496,454
Cash			—			1,548,925
Dividends and interest receivable			292,256			529,126
Receivable for securities sold			274,101			10,000
Prepaid expenses			31,522			22,826
Receivable from Adviser			10,269			—
Receivable for capital shares sold			3,133			—
Receivable for securities lending income			328			—
Total Assets			59,231,346			49,607,331
Liabilities:
Payable upon return of securities on loan (See Note 1(G))			4,969,483			—
Payable for securities purchased			290,093			—
Dividends payable to shareholders			6,775			17,245
Payable for capital shares redeemed			5,281			8,394
Accrued expenses:
Advisory fee			—			14,354
Service and distribution plan fees			11,430			—
Custody and accounting fees payable			33,992			37,261
Printing fee payable			20,477			15,092
Directors’ fees and expenses			172			126
Other			40,079			37,480
Total Liabilities			5,377,782			129,952
Net Assets		$	53,853,564		$	49,477,379
Net assets consist of:
Capital stock, at $0.01 par value (authorized unlimited shares and 65,000,000 shares, respectively)		$	34,007		$	49,186
Additional paid-in capital			50,783,570			47,509,847
Total Distributable Earnings/(Loss)			3,035,987			1,918,346
Net Assets		$	53,853,564		$	49,477,379
Net Asset Value Per Share
Net Assets		$	53,853,564		$	49,477,379
Shares Outstanding			3,400,696			4,918,625
Net Asset Value, Offering and Redemption Price per Outstanding Share		$	15.84		$	10.06
* Includes securities on loan of		$	5,321,920		$	—
Cost of investments		$	55,326,542		$	44,356,218

See Notes to Financial Statements.

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Statements of Operations
For the Year Ended December 31, 2020

	Value Line Core Bond Fund			The Value Line Tax Exempt Fund, Inc.
Investment Income:
Interest		$	1,367,843		$	1,388,629
Dividends			1,875			—
Securities lending income (Net)			4,245			—
Total Income			1,373,963			1,388,629
Expenses:
Advisory fees			200,398			178,873
Service and distribution plan fees			136,274			125,511
Custody and accounting fees			81,993			91,011
Transfer agent fees			55,152			29,506
Printing and postage fees			45,782			27,820
Auditing and legal fees			33,807			32,580
Fund administration fees			32,000			32,000
Registration and filing fees			23,814			24,945
Compliance and tax service fees			10,675			10,606
Directors’ fees and expenses			6,077			5,560
Insurance fees			2,345			2,232
Other			21,721			22,236
Total Expenses Before Fees Waived (See Note 5)			650,038			582,880
Less: Advisory Fees Waived			(159,451)			—
Less: Service and Distribution Plan Fees Waived			—			(125,511)
Net Expenses			490,587			457,369
Net Investment Income/(Loss)			883,376			931,260
Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain/(Loss) From:
Investments in securities			969,002			100,438
Change in Net Unrealized Appreciation/(Depreciation) of:
Investments in securities			1,196,067			773,570
Net Realized Gain/(Loss) and Change in Net Unrealized Appreciation/(Depreciation) on Investments			2,165,069			874,008
Net Increase/(Decrease) in Net Assets from Operations		$	3,048,445		$	1,805,268

See Notes to Financial Statements.

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Financial Highlights

Selected data for a share of capital stock outstanding throughout each year:

	Value Line Core Bond Fund Years Ended December 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of year		$	15.26		$	14.40		$	14.94		$	14.77		$	14.71
Income/(loss) from investment operations:
Net investment income/(loss)			0.25(1)			0.36			0.32			0.34			0.26
Net gains/(losses) on securities (both realized and unrealized)			0.63			0.86			(0.52)			0.17			0.06
Total from investment operations			0.88			1.22			(0.20)			0.51			0.32
Less distributions:
Dividends from net investment income			(0.30)			(0.36)			(0.34)			(0.34)			(0.26)
Total distributions			(0.30)			(0.36)			(0.34)			(0.34)			(0.26)
Net asset value, end of year		$	15.84		$	15.26		$	14.40		$	14.94		$	14.77
Total return			5.77%			8.51%			(1.31)%			3.47%			2.16%
Ratios/Supplemental Data:
Net assets, end of year (in thousands)		$	53,854		$	53,976		$	54,583		$	61,586		$	66,429
Ratio of gross expenses to average net assets(2)			1.19%			1.14%			1.21%			1.22%			1.20%
Ratio of net expenses to average net assets(3)			0.90%			0.93%			0.99%			0.99%			0.99%
Ratio of net investment income to average net assets			1.62%			2.26%			2.24%			2.01%			1.74%
Portfolio turnover rate			70%			39%			84%			35%			32%

(1)

Per share amounts are calculated based on average shares outstanding during the year.

(2)

Ratio reflects expenses grossed up for the waiver of the advisory fees by the Adviser.

(3)

Ratio reflects expenses net of the waiver/reimbursement of the advisory fees by the Adviser.

See Notes to Financial Statements.

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Financial Highlights

	The Value Line Tax Exempt Fund, Inc. Years Ended December 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of year		$	9.94		$	9.61		$	9.86		$	9.75		$	10.06
Income/(loss) from investment operations:
Net investment income/(loss)			0.18(1)			0.20			0.26			0.26			0.28
Net gains/(losses) on securities (both realized and unrealized)			0.18			0.39			(0.25)			0.11			(0.31)
Total from investment operations			0.36			0.59			0.01			0.37			(0.03)
Less distributions:
Dividends from net investment income			(0.24)			(0.26)			(0.26)			(0.26)			(0.28)
Total distributions			(0.24)			(0.26)			(0.26)			(0.26)			(0.28)
Net asset value, end of year		$	10.06		$	9.94		$	9.61		$	9.86		$	9.75
Total return			3.68%			6.18%			0.17%			3.86%			(0.38)%
Ratios/Supplemental Data:
Net assets, end of year (in thousands)		$	49,477		$	51,434		$	51,848		$	56,163		$	62,797
Ratio of gross expenses to average net assets(2)			1.16%			1.12%			1.12%			1.10%			0.99%
Ratio of net expenses to average net assets(3)			0.91%			0.87%			0.87%			0.85%			0.74%
Ratio of net investment income to average net assets			1.85%			2.07%			2.74%			2.67%			2.75%
Portfolio turnover rate			3%			15%			12%			10%			18%

(1)

Per share amounts are calculated based on average shares outstanding during the year.

(2)

Ratio reflects expenses grossed up for the waiver of the service and distribution plan fees by the Distributor.

(3)

Ratio reflects expenses net of the waiver of the service and distribution plan fees by the Distributor.

See Notes to Financial Statements.

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Notes to Financial Statements

1. Significant Accounting Policies

Value Line Core Bond Fund and The Value Line Tax Exempt Fund, Inc. (individually a “Fund” and collectively, the “Funds”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as diversified, open-end management investment companies. The primary investment objective of the Value Line Core Bond Fund is to maximize current income. As a secondary investment objective, the Fund will seek capital appreciation, but only when consistent with its primary objective. The primary investment objective of The Value Line Tax Exempt Fund, Inc. is to provide investors with the maximum income exempt from federal income taxes while avoiding undue risk to principal by investing primarily in investment-grade municipal securities. The Value Line Family of Funds (the “Value Line Funds”) is a family of mutual funds that consists of a variety of equity, fixed income, and hybrid funds.

Each Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services — Investment Companies.

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 may differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their 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 (“NAV”) is being determined. Securities traded on the National Association of Securities Dealers Automated Quotations (“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 fair 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.

Investments in shares of open-end mutual funds, including money market funds, are valued at their daily NAV which is calculated as of the close of regular trading on the New York Stock Exchange (“NYSE”) (usually 4:00 P.M. Eastern Time) on each day on which the NYSE is open for business. NAV per share is determined by dividing the funds’ total net assets by the funds’ total number of shares outstanding at the time of calculation.

The Board of Directors (the “Board”) has determined that the value of bonds and other fixed income securities be calculated on the valuation date by reference to valuations obtained from an independent pricing service that determines valuations for normal institutional-size trading units of debt securities, without exclusive reliance upon quoted prices. This service takes into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data in determining valuations. Bonds and fixed income securities are valued at the evaluated bid on the date as of which the NAV is being determined. Securities, other than bonds and other fixed income securities, not priced in this manner are valued at the midpoint between the latest available and representative asked and bid prices, or when stock valuations are used, at the latest quoted sale price as of the regular close of business of the NYSE on the valuation date.

The Board has adopted procedures for valuing portfolio securities in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to EULAV Asset Management (the “Adviser”). A valuation committee (the “Valuation Committee”) and a pricing committee (the “Pricing Committee”) have been established by the Board. The Valuation Committee oversees the implementation of the Funds’ valuation methods and makes fair value determinations on behalf of the Board, as necessary. The Pricing Committee monitors the continued appropriateness of methods applied and determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Pricing Committee determines that a valuation method may no longer be appropriate, another valuation method may be selected, or the Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review the appropriateness of the valuation methods and

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Notes to Financial Statements (continued)

these methods may be amended or supplemented from time to time by the Valuation Committee. In addition, the Funds may use the fair value of a security when the closing market price on the primary exchange where the security is traded no longer reflects the value of a security due to factors affecting one or more relevant securities markets or the specific issuer.

(B) Fair Value Measurements: The Funds follow fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

•

Level 1 — Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;

•

Level 2 — Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;

•

Level 3 — Inputs that are unobservable.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used.

(C) Federal Income Taxes: It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to regulated investment companies, as defined in applicable sections of the Internal Revenue Code, and to distribute all of its investment income and capital gains to its shareholders. Therefore, no provision for federal income tax is required.

As of December 31, 2020, and for all open tax years, management has analyzed the Funds’ tax positions taken on federal and state income tax returns, and has concluded that no provision for federal or state income tax is required in the Funds’ financial statements. The Funds’ federal and state income tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and the state departments of revenue. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

(D) Security Transactions and Income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the basis of the first-in first-out convention (“FIFO”). Interest income on investments, adjusted for amortization of discount and premium, if applicable, is earned from settlement date and recognized on the accrual basis. Dividend income is recorded on the ex-dividend date.

The Value Line Core Bond Fund may purchase mortgage pass-through securities on a to-be-announced (“TBA”) basis, with payment and delivery scheduled for a future date. The Funds may enter into a TBA agreement, sell the obligation to purchase the pools stipulated in the TBA agreement prior to the stipulated settlement date and enter into a new TBA agreement for future delivery of pools of mortgage pass-through securities (a “TBA roll”). A TBA roll is treated by the Funds as a purchase transaction and a sale transaction in which the Funds realize a gain or loss. The Fund’s use of TBA rolls may cause the Fund to experience higher portfolio turnover and higher transaction costs. The Fund could be exposed to possible risk if there is an adverse market action, expenses or delays in connection with TBA transactions, or if the counterparty fails to complete the transaction.

The Value Line Core Bond Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). The principal value and interest payout of TIPS are periodically adjusted according to the rate of inflation based on the Consumer Price Index. The adjustments for principal and income due to inflation are reflected in interest income in the Statements of Operations.

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December 31, 2020

(E) Fund Distributions: Income dividends and capital gains distributions are automatically reinvested in additional shares of each Fund unless the shareholder has requested otherwise. Income earned by the Fund on weekends, holidays and other days on which the Fund is closed for business is declared as a dividend on the next day on which the Fund is open for business. The Funds declare and pay dividends monthly. Net realized capital gains, if any, are distributed to shareholders annually or more frequently if necessary, to comply with the Internal Revenue Code.

(F) Representations and Indemnifications: In the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, management expects the risk of loss to be remote.

(G) Securities Lending: Under an agreement with State Street Bank & Trust Company (“State Street”), the Value Line Core Bond Fund can lend its securities to brokers, dealers and other financial institutions approved by the Board. The Fund or the borrower may terminate the loan at any time. By lending its investment securities, the Fund attempts to increase its net investment income through receipt of interest on the loan. Any gain or loss in the market price of the securities loaned that might occur and any interest or dividends declared during the term of the loan would accrue to the account of the Fund. Risks of delay in recovery of the securities or even loss of rights in the collateral may occur should the borrower of the securities fail financially. Generally, in the event of a counter-party default, the Fund has the right to use the collateral to offset the losses incurred. The lending fees received and the Fund’s portion of the interest income earned on the cash collateral are included in “Securities lending income (Net)” in the Statements of Operations.

Upon entering into a securities lending transaction, the Fund receives cash or other securities as collateral in an amount equal to or exceeding 102% of the current market value of the loaned securities. Any cash received as collateral is invested by State Street, acting in its capacity as securities lending agent (the “Agent”), in the Value Line Funds collateral account, which is subsequently invested into joint repurchase agreements and/or State Street Navigator Securities Lending Government Money Market Portfolio. When the Fund invests the cash collateral in the State Street Navigator Securities Lending Government Money Market Portfolio, a portion of the dividends received on the collateral is rebated to the borrower of the securities and the remainder is split between the Agent and the Fund.

The Fund may enter into joint repurchase agreements whereby their uninvested cash collateral from securities lending is deposited into a joint cash account with other funds managed by the Adviser and may be used to invest in one or more repurchase agreements. The value and face amount of the joint repurchase agreement are allocated to the Funds based on their pro-rata interest in the repurchase agreement. A repurchase agreement is accounted for as a loan by the fund to the seller, collateralized by securities which are delivered to the Fund’s custodian. The market value, including accrued interest, of the initial collateralization is required to be at least 102% of the dollar amount invested by the Fund, with the value of the underlying securities or cash collateral marked-to-market daily to maintain coverage of at least 100%. Investments made with the cash collateral are disclosed on the Schedules of Investments.

As of December 31, 2020, the Fund was not invested in joint repurchase agreements.

As of December 31, 2020, the Value Line Core Bond Fund loaned securities which were collateralized by cash and other securities. The value of the securities on loan and the value of the related collateral were as follows:

Fund			Value of Securities Loaned						Value of Collateral*
Value Line Core Bond Fund				$	5,321,920					$	5,428,733

Value Line Core Bond Fund received cash collateral of $4,969,483, which was subsequently invested in the State Street Navigator Securities Lending Government Money Market Portfolio as reported in the Schedule of Investments. In addition, Value Line Core Bond Fund received non-cash collateral of $459,250, in the form of U.S. Government obligations, ranging from 0.00% -7.13%, maturing 2/28/21-2/15/43, which the Fund cannot sell or repledge, and accordingly are not reflected in the Schedule of Investments. The value of securities loaned is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.

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Notes to Financial Statements (continued)

(H) Other Risks: An outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and was declared a pandemic by the World Health Organization in March 2020. This coronavirus has resulted in travel restrictions, restrictions on gatherings of people (including closings of, or limitations on, dining and entertainment establishments, as well as schools and universities), closed businesses (or businesses that are restricted in their operations), closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19, and other infectious disease outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak cannot be determined with certainty. The risk of further spreading of COVID-19 has led to significant uncertainty and volatility in the financial markets and disruption to the global economy, the consequences of which are currently unpredictable. Certain of the Funds’ investments are likely to have exposure to businesses that, as a result of COVID-19, experience a slowdown or temporary suspension in business activities. These factors, as well as any restrictive measures instituted in order to prevent or control a pandemic or other public health crisis, such as the one posed by COVID-19, could have a material and adverse effect on the Funds' investments.

(I) Subsequent Events: Management has evaluated all subsequent transactions and events through the date on which these financial statements were issued and has determined that no additional items require adjustment to or disclosure in the financial statements.

2. Investment Risks

Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. The Government National Mortgage Association (“GNMA” or “Ginnie Mae”), a wholly-owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government.

3. Purchases and Sales of Securities

Purchases and sales of securities, excluding short-term investments for the year ended December 31, 2020, were as follows:

Fund	Purchases of Investment Securities Excluding U.S. Government Obligations			Sales of Investment Securities Excluding U.S. Government Obligations			Purchases of U.S. Government Obligations			Sales of U.S. Government Obligations
Value Line Core Bond Fund		$	33,274,628		$	31,179,359		$	8,171,683		$	6,852,249
The Value Line Tax Exempt Fund, Inc.			1,587,693			4,868,441			—			—

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December 31, 2020

4. Income Taxes

At December 31, 2020, the federal tax cost and net unrealized appreciation (depreciation) in value of investments held were:

Fund	Cost of investments for tax purposes			Gross tax unrealized appreciation			Gross tax unrealized depreciation			Net tax unrealized appreciation (depreciation) on investments
Value Line Core Bond Fund		$	55,339,427		$	3,371,729		$	(91,419)		$	3,280,310
The Value Line Tax Exempt Fund, Inc.			45,491,379			2,843,428			(838,353)			2,005,075

As of December 31, 2020, the components of distributable earnings on a tax basis were as follows:

Fund	Undistributed ordinary income			Undistributed long-term gain			Other Timing Differences			Unrealized Appreciation			Capital Loss Carryforwards			Late Year Deferrals			Distributable Earnings (Loss)
Value Line Core Bond Fund		$	8,675		$	—		$	(6,775)		$	3,280,310		$	(246,223)		$	—		$	3,035,987
The Value Line Tax Exempt Fund, Inc.			—			—			(17,245)			2,005,075			(69,484)			—			1,918,346

For tax purposes, net capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses.

To the extent that current or future capital gains are offset by capital losses, the Funds do not anticipate distributing any such gains to shareholders.

A reclassification, related to permanent book-tax differences, has been made on the Statements of Assets and Liabilities to increase/(decrease) total distributable earning/(loss) and additional paid-in capital for the Funds as follows:

Fund	Total Distributable Earnings/(Loss)			Additional Paid-In Capital
Value Line Core Bond Fund		$	—		$	—
The Value Line Tax Exempt Fund, Inc.			2,393			(2,393)

The reclassification was primarily due to distribution character. Net assets were not affected by these reclassifications.

The tax composition of distributions paid to shareholders during fiscal years ended December 31, 2020 and 2019 were as follows:

	Year Ended December 31, 2020 Distributions Paid from
Fund	Ordinary Income			Long-Term Capital Gain			Tax exempt income			Taxable ordinary income			Total Distributions Paid
Value Line Core Bond Fund		$	1,025,857		$	—		$	—		$	—		$	1,025,857
The Value Line Tax Exempt Fund, Inc.			—			—			1,213,535			1,175			1,214,710

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Notes to Financial Statements (continued)

	Year Ended December 31, 2019 Distributions Paid from
Fund	Ordinary Income			Long-Term Capital Gain			Tax exempt income			Taxable ordinary income			Total Distributions Paid
Value Line Core Bond Fund		$	1,297,862		$	—		$	—		$	—		$	1,297,862
The Value Line Tax Exempt Fund, Inc.			—			—			1,363,401			1,196			1,364,597

5. Investment Advisory Fee, Service and Distribution Fees and Transactions With Affiliates

For providing advisory services to the Value Line Core Bond Fund and The Value Line Tax Exempt Fund, Inc. and managing each Fund’s investments for the year ended December 31, 2020, the Adviser was paid a fee at an annual rate of 0.38% and 0.37%, respectively, of each Fund’s average daily net assets. The investment advisory agreement between each Fund and the Adviser provides for a combined fee for both advisory services and Administrative Services (as defined in the investment advisory agreement) at an annual rate, based on each Fund’s average daily net assets, equal to 0.50% for both Value Line Core Bond Fund and The Value Line Tax Exempt Fund, Inc. (the “Combined Rate”). The advisory fee component paid by each Fund to the Adviser for each period is calculated by subtracting the amount paid by each Fund for Administrative Services with respect to the same period from the Combined Rate. The Adviser provides (or arranges for the provision of) such Administrative Services pursuant to a separate administration agreement with the Funds. For the year ended December 31, 2020, the below Advisory fees were paid or payable to the Adviser and waived by the Adviser:

Fund	Advisory Fee			Waived Amount
Value Line Core Bond Fund		$	200,398		$	159,451
The Value Line Tax Exempt Fund, Inc.			178,873			—

The Funds have a Service and Distribution Plan (the “Plan”), adopted pursuant to Rule 12b-1 under the 1940 Act, which compensates EULAV Securities, LLC (the “Distributor”) for advertising, marketing and distributing the Funds’ shares and for servicing the Funds’ shareholders at an annual rate of 0.25% of the Funds’ average daily net assets. The Distributor has contractually agreed to waive the Value Line Tax Exempt Fund’s 12b-1 fee in an amount equal to 0.25% of the Value Line Tax Exempt Fund’s average daily net assets through June 30, 2021. The waiver cannot be terminated before June 30, 2021 without the approval of the Fund’s Board. There is no assurance that the Distributor will extend the fee waiver beyond June 30, 2021. The Distributor has no right to recoup previously contractually waived amounts of the Value Line Tax Exempt Fund. For the year ended December 31, 2020, the below 12b-1 fees were paid or payable to the Distributor and waived by the Distributor:

Fund	Distribution & Service Fees			Waived Amount
Value Line Core Bond Fund		$	136,274		$	—
The Value Line Tax Exempt Fund, Inc.			125,511			125,511

For the Value Line Core Bond Fund, the Adviser and the Distributor have agreed to waive a portion of their advisory and Rule 12b-1 fees and the Adviser has further agreed to reimburse certain expenses of the Fund to the extent necessary to limit the Fund’s total annual operating expenses (other than those attributable to interest, taxes, brokerage and futures commissions, and extraordinary expenses not incurred in the ordinary course of the Fund’s business) to 0.90% of the Fund’s average daily net assets (the “Expense Limitation”). The Adviser may subsequently recover from the Value Line Core Bond Fund reimbursed expenses and/or waived fees (within 3 years from the month in which the waiver/reimbursement occurred) to the extent that the Value Line Core Bond Fund’s expense ratio is less than the Expense Limitation. The Expense Limitation can be terminated or modified only with the agreement of the Fund’s Board. As of December 31, 2020, the Adviser may seek reimbursement of the remaining waived fees and reimbursed expenses as follows:

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Value Line Core Bond Fund and The Value Line Tax Exempt Fund, Inc.

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Value Line Core Bond Fund and The Value Line Tax Exempt Fund, Inc. (hereafter collectively referred to as the “Funds”) as of December 31, 2020, the related statements of operations for the year ended December 31, 2020, the statements of changes in net assets for each of the two years in the period ended December 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2020 and each of the financial highlights for each of the five years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP
New York, New York
February 24, 2021

We have served as the auditor of one or more investment companies in the Value Line Funds since 1983.

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Fund Expenses (unaudited)

Example

As a shareholder of the Funds, 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 each 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 on July 1, 2020 and held for six months ended December 31, 2020.

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 for each Fund 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 Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 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.

	Beginning Account Value July 1, 2020			Ending Account Value December 31, 2020			Expenses Paid During Period*			Annualized Expense Ratio
Actual
Value Line Core Bond Fund		$	1,000.00		$	1,013.10		$	4.55		0.90%
The Value Line Tax Exempt Fund, Inc.			1,000.00			1,020.80			4.83		0.95
Hypothetical (5% return before expenses)
Value Line Core Bond Fund		$	1,000.00		$	1,020.61		$	4.57		0.90%
The Value Line Tax Exempt Fund, Inc.			1,000.00			1,020.36			4.82		0.95

Expenses are equal to the Funds’ annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 to reflect the one-half year period. These expense ratios may differ from the expense ratios shown in the Financial Highlights.

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Board Approval of Liquidity Risk Management Program (unaudited)

To promote effective liquidity risk management throughout the fund industry and to enhance disclosure regarding fund liquidity and redemption practices, the Securities and Exchange Commission (the “Commission”) adopted Rule 22e-4 under the Investment Company Act of 1940, as amended. This Rule requires every registered open-end management company to establish a liquidity risk management program (the “LRMP”) that, among other things, provides for the assessment, management and review of liquidity risk, the classification of a fund’s portfolio investments into one of four liquidity buckets based upon the number of days that such investments may reasonably be expected to be converted into cash or otherwise disposed of without significantly impacting their price, the establishment of a highly liquid investment minimum where required, and the establishment of a 15% limitation on illiquid investments. Additionally, the Commission adopted Rule 30b1-10 and Form N-LIQUID, which generally requires a fund to notify the Commission when certain liquidity-related events occur.

The Funds’ Board approved the appointment of the Adviser’s 40 Act Liquidity Risk Management Committee (“Liquidity Committee”) as the administrator of the LRMP for the Funds on December 13, 2018 and the Fund’s LRMP on March 15, 2019. At the Board’s regular meeting on June 18, 2020, the Funds’ Chief Compliance Officer provided a report to the Funds’ Board on the operation and effectiveness of the LRMP after its first year of operation. The Adviser manages liquidity risks associated with the Funds’ investments by monitoring cash and cash equivalents, the use of derivatives, the concentration of investments and the appropriateness of portfolio strategies for open-end funds, and by classifying every Fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, the Adviser utilizes a third-party provider of liquidity monitoring services. The third-party provider supplies portfolio-level data and certain assumptions which it uses to determine classifications. The Liquidity Committee reviews and reconciles the information provided for accuracy.

The LRMP effectively managed the Funds’ liquidity risks for the twelve-month period ended December 31, 2020. During this period, each Fund held no less than 50% of its total net assets in highly liquid investments. Because each Fund consisted primarily of highly liquid investments, no highly liquid investment minimum was required to be established for any Fund, and all Funds were well under their illiquid investment limitations. Additionally, no events that would require the filing of Form N-LIQUID occurred

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Management of the Funds

The business and affairs of each Fund are managed by the Fund’s officers under the direction of its Board of Directors. The following table sets forth information on the Directors and officers of the Funds, each of which serves in that capacity for every fund. Each Director serves as a director or trustee of each of the registered investment companies advised by the Adviser (the “Value Line Funds”). Each Director serves until his or her successor is elected and qualified. The Statement of Additional Information includes additional information about the Funds’ Directors and is available without charge by calling 1-800-243-2729.

Name, Address, and Age

Position

Length of
Time Served

Principal Occupations
During the Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen
by Director

Other
Directorships
Held by
Director
During the
Past 5 Years

Interested Director*

Mitchell E. Appel
Age: 50

Director

Since 2010

President of each of the Value Line Funds; Trustee, CEO and Treasurer of the Adviser; President and Chief Financial Officer of the Distributor.

Forethought Variable Insurance Trust

Non-Interested Directors

Joyce E. Heinzerling
Age: 64

Director

Since 2008

Retired. Managing Member, Meridian Fund Advisers LLC (consultants) until 2019.

None

James E. Hillman
Age: 64

Director (Chair of the Board of the Value Line Funds since 2016)

Since 2015

Chief Financial Officer, Notre Dame School of Manhattan since 2011; Director and Principal Financial Officer, Merrill Lynch Global Wealth

Management, 2006-2011.

Miller/Howard High Income Equity Fund

Paul Craig Roberts
Age: 82

Director

Since 1984 with respect to The Value Line Tax Exempt Fund and since 1986 with respect to Value Line Core Bond Fund

Chairman, Institute for Political Economy

None

Nancy-Beth Sheerr
Age: 72

Director

Since 1996

Independent Trustee and Managing Member, NBS Consulting LLC since November 2014; Senior Financial Adviser, Veritable, L.P. (investment advisor) until December 2013.

None

Mr. Appel is an “interested person” as defined in the 1940 Act by virtue of his position with the Distributor and the Adviser.

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Management of the Funds (continued)

Name, Address, and Age	Position	Length of Time Served	Principal Occupations During the Past 5 Years
Officers
Mitchell E. Appel Age: 50	President	Since 2008	President of each of the Value Line Funds; Trustee, CEO and Treasurer of the Adviser; President and Chief Financial Officer of the Distributor.
Christopher W. Roleke Age: 48	Treasurer and Chief Financial Officer	Since 2020	Treasurer (Principal Financial and Accounting Officer) of each of the Value Line Funds since April 2020; Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC, since 2011.
Michael J. Wagner Age: 70	Chief Compliance Officer	Since 2009	Chief Compliance Officer of each of the Value Line Funds since 2009; President of Northern Lights Compliance Services, LLC (formerly Fund Compliance Services, Officer LLC) 2006-2019.
Emily D. Washington Age: 42	Vice President and Secretary	Since 2008	Vice President of each of the Value Line Funds since April 2020 and Secretary since 2010; Treasurer and Chief Financial Officer of each of the Value Line Funds, 2008 — 2020.
Robert Scagnelli Age: 59	Vice President	Since 2020	Vice President of each of the Value Line Funds since April 2020; Vice President of the Distributor and the Adviser since 2011.

The address for each of the above is 7 Times Square, Suite 1606, New York, NY 10036-6524.

(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.

((a)(1)The Registrant has an Audit Committee Financial Expert serving on its Audit Committee.

(2) The Registrant’s Board has designated James Hillman, member of the Registrant’s Audit Committee, as the Registrant’s Audit Committee Financial Expert. Mr. Hillman is an are independent director. Mr. Hillman currently serves as the Chief Financial Officer at Notre Dame School of Manhattan since 2011.

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 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

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.

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.

	Percentage of Total Investment Securities
Aaa/AAA		12.4%
Aa1/AA+		12.8%
Aa2/AA		25.8%
Aa3/AA-		18.0%
A1/A+		11.8%
A2/A		10.3%
A3/A-		3.8%
Baa1/BBB+		2.7%
Baa2/BBB		1.7%
NR		0.7%
Total Investments		100.0%

	Value Line Core Bond Fund
	Year Ended December 31, 2020			Year Ended December 31, 2019
Operations:
Net investment income/(loss)		$	883,376		$	1,239,457
Net realized gain/(loss) on investments			969,002			435,378
Change in net unrealized appreciation/(depreciation) on investments			1,196,067			2,769,139
Net increase/(decrease) in net assets from operations			3,048,445			4,443,974
Distributions to Shareholders from:
Distributable Earnings			(1,025,857)			(1,297,862)
Share Transactions:
Proceeds from sale of shares			3,523,006			2,540,869
Proceeds from reinvestment of distributions to shareholders			936,701			1,170,292
Cost of shares redeemed			(6,604,784)			(7,464,338)
Net increase/(decrease) in net assets from capital share transactions			(2,145,077)			(3,753,177)
Total increase/(decrease) in net assets			(122,489)			(607,065)
Net Assets:
Beginning of year			53,976,053			54,583,118
End of year		$	53,853,564		$	53,976,053
Capital Share Transactions:
Shares sold			225,921			169,769
Shares issued to shareholders in reinvestment of dividends			59,660			77,887
Shares redeemed			(422,790)			(499,146)
Net increase/(decrease)			(137,209)			(251,490)

	The Value Line Tax Exempt Fund, Inc.
	Year Ended December 31, 2020			Year Ended December 31, 2019
Operations:
Net investment income/(loss)		$	931,260		$	1,078,379
Net realized gain/(loss) on investments			100,438			211,211
Change in net unrealized appreciation/(depreciation) on investments			773,570			1,820,970
Net increase/(decrease) in net assets from operations			1,805,268			3,110,560
Distributions to Shareholders from:
Distributable Earnings			(1,214,710)			(1,364,597)
Share Transactions:
Proceeds from sale of shares			1,244,944			2,033,638
Proceeds from reinvestment of distributions to shareholders			986,316			1,111,987
Cost of shares redeemed			(4,778,217)			(5,306,212)
Net increase/(decrease) in net assets from capital share transactions			(2,546,957)			(2,160,587)
Total increase/(decrease) in net assets			(1,956,399)			(414,624)
Net Assets:
Beginning of year			51,433,778			51,848,402
End of year		$	49,477,379		$	51,433,778
Capital Share Transactions:
Shares sold			127,837			205,732
Shares issued to shareholders in reinvestment of dividends			98,768			112,657
Shares redeemed			(481,960)			(538,164)
Net increase/(decrease)			(255,355)			(219,775)

	President’s Letter with Economic and Market Commentary					3
	Value Line Core Bond Fund:
	Manager Discussion of Fund Performance					6
	Portfolio Highlights					8
	Schedule of Investments					10
	The Value Line Tax Exempt Fund, Inc.:
	Manager Discussion of Fund Performance					18
	Portfolio Highlights					20
	Schedule of Investments					23
	Statements of Assets and Liabilities					31
	Statements of Operations					32
	Statements of Changes in Net Assets					33
	Financial Highlights					35
	Notes to Financial Statements					37
	Report of Independent Registered Public Accounting Firm					44
	Fund Expenses					45
	Federal Tax Notice					46
	Board Approval of Liquidity Risk Management Program					47
	Management of the Funds					48

Expiration for the 12 months ended	Fees Waived and Reimbursed by the Adviser
December 31, 2021		$	124,410
December 31, 2022			115,377
December 31, 2023			159,451

Fund	% of Qualifying Dividend Income		% of Dividends Eligible for the Corporate Dividends Received Deduction		Exempt Interest Dividends		Long-Term Capital Gains
Value Line Core Bond Fund		0.00%		0.00%		0.00%		$	0.00
The Value Line Tax Exempt Fund, Inc.		0.00%		0.00%		99.90%			0.00

By	/s/ Mitchell E. Appel
	Mitchell E. Appel, President

Date:	March 8, 2021

By:	/s/ Mitchell E. Appel
	Mitchell E. Appel, President, Principal Executive Officer

By:	/s/ Christopher W. Roleke
	Christopher W. Roleke, Treasurer, Principal Financial Officer