<PAGE>
THE TOCQUEVILLE FUND
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDERS:
For the fiscal year ended October 31, 1995 the Tocqueville Fund generated a
positive return of 16% for Class A shareholders. These results reflect the rel-
atively weak results in the first two months of our fiscal year, November and
December of 1994, which we discussed in our semi-annual report to shareholders,
and the strong absolute performance for the balance of the fiscal year by our
largest positions, including IBM, Bristol Myers, Citicorp, BankAmerica, Sprint,
and Champion International.
Over the same twelve month period, the S&P 500 registered an even more im-
pressive return of 26.4%. While our conservative value style typically leads to
underperformance in sharply rising markets, we are pleased with our absolute
returns over this period. For the 1995 calendar year your fund generated a
28.2% total return, compared with a 37.6% return on the S&P, a very gratifying
result.
OUTLOOK
For the coming year our expectations are for a market considerably less ro-
bust than in the twelve month period just ended. Indeed, preserving the gains
of the past year will be the principal challenge of the year ahead. While we do
expect stimulative policies from the Federal Reserve, as well as a tax cut of
some measure which should help the soft economy, we believe that these expecta-
tions are well accepted by the consensus of investors and are discounted by the
market. At current levels, the equity markets would appear to be far more vul-
nerable to negative developments than to positive surprises. Moreover, we be-
lieve that the speculative fervor in Internet-related stocks and in the red hot
IPO sector subjects the market to a potential significant correction when in-
vestors return their focus to the fundamentals underlying many of these shares.
As a result, we have adopted a more cautious approach to the market than we
were taking at this time last year. Then, interest rates seemed too high and
looked likely to decline, and the outlook for corporate profits appeared rea-
sonably favorable. Now, long rates do not look to decline further, at least not
by enough to move the market, and the profit comparisons going forward should
be more difficult. Finally, the complacency in the market over inflation rates
in general and energy prices in particular has us worried. Consequently, we
have been increasing our position in defensive stocks, and have added signifi-
cantly to our holdings of energy related issues. Our strategy in the energy
sector has been to focus on the oil service companies which have tremendous op-
erating leverage after a decade of downsizing and restructuring. These compa-
nies, which have prospered in very difficult times, have enormous potential if
exploration and development activity begins a secular rebound from the current
depressed levels. An adjustment in oil and gas prices, which could already be
underway from the historically low levels (in real terms), could occur simply
because of a rebound in worldwide economies or due to a supply disruption
caused by political factors in the producing countries. In either case, we
would expect the impact on these stocks to be positive while the impact on the
overall equity markets to be quite negative.
<PAGE>
- --------------------------------------------------------------------------------
We have also maintained our position in other defensive stocks, such as con-
sumer nondurables and healthcare stocks. Over the course of the next year we
will look to expand our position in the highly depressed retail sector as well
as in capital goods companies where we expect to see strong earnings growth in
the next up-cycle. As always, however, we will be guided by the opportunities
presented to us by the markets in identifying, researching and positioning com-
panies that have been unduly depressed and represent outstanding values.
DISTRIBUTION
On December 11, 1995, the Fund Trustees declared the following distribution
for payment on December 14, 1995 to shareholders of record as of December 8,
1995:
<TABLE>
<S> <C>
Long-Term Capital Gains: $0.90
Short-Term Capital Gains: $0.16
Net Income: $0.15
Total Distribution per Share: $1.21
</TABLE>
INVESTMENT THEMES AND CATEGORIES
In this report we continue and update our practice of classifying our hold-
ings into categories which reflect some broad investment themes. While we take
some comfort in knowing that our holdings fit in understandable, if somewhat
unusual, investment categories, it remains true that our stock picking invest-
ment approach is driven by only one consideration: value, and not by any plan
to fit into pre-selected investment categories. Rather, we find it illustrative
to group our ideas into categories which reflect the dominant investment thesis
behind our selection process. From time to time, we will add (or subtract) cat-
egories to incorporate new investment themes. In this issue we add one new cat-
egory, Too Much Complacency.
The SEC requires a more traditional portfolio categorization. Below we pres-
ent both the classification you are accustomed to seeing in a table directly
following this letter, as well as the SEC Schedule of Investments on page 8.
Too Much Complacency--As value investors with a strong contrarian bent, we
are always searching for opportunities in stocks where the consensus view is
negative. In order to fit into this category a stock or group must be in an
area where negative perceptions are more than merely a broad consensus. Rather,
it is something of a forgone conclusion by most investors that change in the
status quo is not possible. We believe that this widespread complacency is an
ideal spawning ground for positive (or negative) surprises.
Changing Political/Regulatory Climate--The rapid changes taking place in
Washington, D.C. are reversing 50 years of regulatory policy and creating a
whole new playing field for many companies and industries. More market oriented
regulations mean that some companies will fail and others will prosper based on
their competitive positions. Companies with strong franchises, supe-
2
<PAGE>
- -------------------------------------------------------------------------------
rior financial strength, and solid managements are well-positioned to benefit
from this rapidly changing environment at the expense of those who have been
kept in business by a regulatory environment that protects companies at the
expense of consumers.
Astute Management--Some companies manage to generate constantly superior re-
sults over many business cycles. Except for those that have a natural monopoly
or other advantage, the explanation for consistent success is usually superior
management. Very often, these managers have a large personal stake in the
shares of the company, or are strongly incented with options or other instru-
ments that are related to the price performance of the stock. At other times
proven management talent may have been recently recruited. In either case, we
are attracted to companies where astute management can make a material differ-
ence in their performance.
Special Situations--This overworked cliche still has meaning when used judi-
ciously. For our purposes, a special situation represents a unique opportunity
to participate in a profound change in a corporate structure which will en-
hance the values of the underlying assets of a company to the benefit of its
shareholders.
Revitalized Behemoths--These are large capitalization, well known old line
companies that have fallen on hard times and whose prices are severely de-
pressed. Typically, the market attitude toward these companies is overly pes-
simistic, presenting an investment opportunity. When our research confirms it,
we will purchase these stocks on the theory that either a new management, an
active board or a new strategy can revitalize what is basically a still sound
business franchise.
Changing Consumer--The American consumer is maturing, with the huge baby-
boom generation reaching middle-age. As this happens, the tastes and needs of
the largest demographic group in the United States are changing. Consumption
becomes less credit-sensitive (less first-time purchases of big-ticket items,
such as houses, large appliances, cars, etc.), and consumers become increas-
ingly sensitive to the need to build a retirement nest egg. Many of the chil-
dren which the baby-boomers had in their 30s are also creating a "baby-boom
echo" with significant consumption implications.
New Industrial Revolution--New methods of industrial management (zero-de-
fect, just-in-time, concurrent engineering, etc.) are creating the need for
new equipment, software, and organizational structures. At the same time,
large industrial customers are drastically cutting the number of suppliers
from whom they purchase parts, systems and equipment, and they are establish-
ing partnership-like relationships with the remaining ones. This creates op-
portunities, even in traditionally slow-growth industries, for the best sup-
pliers to gain market share and experience accelerating sales.
3
<PAGE>
- --------------------------------------------------------------------------------
Survivors In Depressed Industries/Regions--In the last ten years, America's
economic growth has been unevenly shared. In the mid-1980s, the energy and man-
ufacturing sectors in Texas and much of the industrial midwest experienced de-
pressions, while the high-tech and financial industries of New England and Cal-
ifornia boomed (the "bi-coastal" economy). Today, the "center" is much stronger
than the two coastal areas. Within depressed regions and industries, many
weaker companies will disappear, but the survivors will eventually emerge
stronger and face less competition.
Protection Against Inflation and Political/Economic Shocks--With inflation
decelerating, for the last few years, a consensus has emerged that it will not
become a problem in the 1990s. We are less sure of this, as inflation is a
global phenomenon and the vast changes reshaping the world's geopolitical bal-
ance carry with them the risk of supply disruptions and financial crises. As a
result, it appears prudent to keep some inflation insurance in the portfolios,
in the form of gold and energy shares.
Derivative Growth--There are industries whose products or services are sure
to be in great demand in the 1990s, but where the fast pace of innovation and
the risks of "technological break-throughs" make it difficult to pick the win-
ners with any degree of confidence. In addition, regulatory or trade uncertain-
ties often bring additional clouds into the picture. In the case of the elec-
tronics and pharmaceutical industries, we believe it is safer to invest in the
few, well-established distributors and wholesalers than in the manufacturers
themselves. The former will benefit from the superior growth of the industry
and will distribute the most successful products, whoever manufactures them.
Furthermore, among distributors and wholesalers, those which are financially
strongest and can make the heavy investment in equipment and software necessary
to compete effectively, stand to gain market share at the expense of their
smaller and weaker competitors.
Infrastructure--Throughout the world, the 1990s promise to be a decade of
heavy investment in infrastructure. America's aging infrastructure is crumbling
and needs repairing; Asia's fast growth and increasing standard of living are
creating bottlenecks and a constant need to add roads, bridges, airports, com-
munication networks, hospitals, etc. and, in eastern Europe, a modern infra-
structure needs to be built to allow the former communist countries to become
economically independent.
While financing for all these projects has not yet been secured, the needs
are clearly there and carry a high priority. Companies which design, engineer
and make equipment to build these facilities stand to benefit greatly.
Hidden Assets--As a result of the often indiscriminate mergers and acquisi-
tions of the 1980s, many companies have become inefficient conglomerates com-
prising both some excellent operations and some money-losing ones. At a time
when many of these companies are being aggressively
4
<PAGE>
- --------------------------------------------------------------------------------
restructured and re-focused around their better operations, one can sometimes
anticipate that a leaner organization, with fewer, successful operations and
less debt will be worth significantly more than the old, larger conglomerate.
Robert W. Kleinschmidt
Francois Sicart
Portfolio Managers
- --------------------------------------------------------------------------------
This report is not authorized for distribution to prospective investors un-
less preceded or accompanied by a currently effective prospectus of The
Tocqueville Trust.
[MAC CHART]
5
<PAGE>
THE TOCQUEVILLE FUND
TABLE OF INVESTMENTS AS CATEGORIZED BY TOCQUEVILLE PORTFOLIO MANAGERS
OCTOBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market % of
Value Net Assets
- ----------------------------------------------------------------
<S> <C> <C>
REVITALIZED BEHEMOTHS $8,610,000 25.75%
BankAmerica
Boeing International Co.
Champion Intl.
Citicorp
International Business Machines
Pepsico
RJR Nabisco Holdings
- ----------------------------------------------------------------
SURVIVORS IN DEPRESSED INDUSTRIES/REGIONS 3,922,500 11.73%
Coast Savings Financial
K Mart
Maytag
Herman Miller Inc.
- ----------------------------------------------------------------
CHANGING CONSUMER 2,082,125 6.23%
Heinz, H.J.
Helene Curtis Industries
Western Publishing Group
Apple Computer
- ----------------------------------------------------------------
NEW INDUSTRIAL REVOLUTION 2,505,000 7.49%
Burlington Industries
Systemed
Telxon
Giddings & Lewis
- ----------------------------------------------------------------
PROTECTION AGAINST INFLATION 2,808,125 8.40%
British Petroleum PLC
Catellus Development
Murphy Oil
Newmont Mining
Inco
- ----------------------------------------------------------------
SPECIAL SITUATIONS 2,511,253 7.51%
Manville
National Education
Tesoro Petroleum
Ben Franklin Retail Stores
Napro Biotherapeudics
- ----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Market % of
Value Net Assets
- ----------------------------------------------------------
<S> <C> <C>
DERIVATIVE GROWTH $ 563,750 1.69%
Foxmeyer Health
Scherer RP
- ----------------------------------------------------------
HIDDEN ASSETS 2,814,375 8.42%
Bristol Myers Squibb
Dun & Bradstreet
Melville
Westinghouse Electric
- ----------------------------------------------------------
CHANGING POLITICAL/
REGULATORY CLIMATE 1,485,563 4.44%
Sprint
Archer Daniels Midland
- ----------------------------------------------------------
INFRASTRUCTURE 465,000 1.39%
Hanson PLC
- ----------------------------------------------------------
ASTUTE MANAGEMENT 847,500 2.53%
Hartford Steam Boiler Insp. & Inc.
Zero
- ----------------------------------------------------------
TOO MUCH COMPLACENCY 1,406,250 4.20%
Baker Hughes
Digicon
Varco International
- ----------------------------------------------------------
U.S. GOVERNMENT
AGENCY BONDS 2,005,619 6.00%
- ----------------------------------------------------------
SHORT TERM INVESTMENTS 1,256,000 3.76%
- ----------------------------------------------------------
TOTAL INVESTMENTS 33,283,060 99.54%
OTHER ASSETS &
LIABILITIES, NET 154,932 0.46%
- ----------------------------------------------------------
TOTAL NET ASSETS $33,437,992 100.00%
-----------
</TABLE>
6
<PAGE>
THE TOCQUEVILLE FUND
SELECTED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------
PER SHARE OPERATING
PERFORMANCE
(FOR A SHARE OUTSTANDING YEAR ENDED OCTOBER 31,
THROUGHOUT THE PERIOD) ---------------------------------------------------
1995 1994 1993 1992 1991
---------------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of year $ 13.74 $ 13.67 $ 11.83 $ 11.33 $ 10.21
------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.15(a) 0.12 0.11 0.17 0.33
Net realized and
unrealized gain 1.70 0.88 2.55 1.33 1.41
------- ------- ------- ------- -------
Total from investment op-
erations 1.85 1.00 2.66 1.50 1.74
------- ------- ------- ------- -------
Less distributions
Dividends from net in-
vestment income (0.11) (0.14) (0.16) (0.36) (0.51)
Distributions from net
realized gains (1.41) (0.79) (0.66) (0.64) (0.11)
------- ------- ------- ------- -------
Total distributions (1.52) (0.93) (0.82) (1.00) (0.62)
------- ------- ------- ------- -------
Change in net asset value
for the year 0.33 0.07 1.84 0.50 1.12
------- ------- ------- ------- -------
Net asset value, end of
year $ 14.07 $ 13.74 $ 13.67 $ 11.83 $ 11.33
------- ------- ------- ------- -------
Total Return (b) 16.0% 7.7% 23.7% 14.9% 17.7%
Ratios/supplemental data
Net assets, end of year
(000) $33,438 $29,140 $27,745 $19,496 $17,388
Ratio to average net as-
sets of:
Expenses 1.57%(a) 1.54% 1.56% 1.74% 1.96%
Net investment income 1.07%(a) 0.87% 0.96% 1.44% 3.38%
Portfolio turnover rate 47% 52% 54% 89% 97%
<CAPTION>
CLASS B
----------------
PERIOD FROM
AUGUST 14, 1995
TO
OCTOBER 31, 1995
----------------
<S> <C>
Net asset value, begin-
ning of period $ 14.68
-------
Income from investment
operations
Net investment income --
Net realized and
unrealized gain (loss) (0.67)
-------
Total from investment op-
erations (0.67)
-------
Net asset value, end of
period $ 14.01
-------
Total Return (c) (4.56)%
Ratios/supplemental data
Net assets, end of period 191
Ratio to average net as-
sets of:
Expenses --
Net investment income --
</TABLE>
(a) Net of fees waived amounting to 0.02% of average net assets for the period
ended October 31, 1995.
(b) Does not include maximum sales load of 4%.
(c) Does not include contingent deferred sales charge. Not annualized.
7
<PAGE>
THE TOCQUEVILLE FUND
INVESTMENTS AS OF OCTOBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market % of
COMMON STOCKS--89.78% Shares Value Net Assets
- --------------------------------------------------------------------
<S> <C> <C> <C>
BASIC INDUSTRIES--5.87%
Champion Intl. Corp. 20,000 $1,070,000 3.20%
Inco, Ltd. 15,000 515,625 1.54%
Newmont Mining Corp. 10,000 377,500 1.13%
- --------------------------------------------------------------------
1,963,125 5.87%
- --------------------------------------------------------------------
CAPITAL GOODS--2.26%
Giddings & Lewis, Inc. 10,000 161,250 0.48%
Westinghouse Electric Corp. 15,000 211,875 0.64%
Zero Corp. 25,000 381,250 1.14%
- --------------------------------------------------------------------
754,375 2.26%
- --------------------------------------------------------------------
CONSUMER BASICS--18.37%
Archer Daniels Midland Co. 20,500 330,563 0.99%
Bristol Myers Squibb Co. 20,000 1,525,000 4.56%
Foxmeyer Health Corp. 15,000 341,250 1.02%
Hanson PLC 30,000 465,000 1.39%
Heinz, H.J. Co. 20,000 930,000 2.78%
Pepsico, Inc. 15,000 791,250 2.37%
RJR Nabisco Holdings Corp. 50,000 1,537,500 4.60%
Scherer RP Corp. Del.(a) 5,000 222,500 0.66%
- --------------------------------------------------------------------
6,143,063 18.37%
- --------------------------------------------------------------------
CONSUMER DURABLES--2.27%
Ben Franklin Retail Stores(a) 1.01 3 0.00%
Maytag Corp. 40,000 760,000 2.27%
- --------------------------------------------------------------------
760,003 2.27%
- --------------------------------------------------------------------
CONSUMER NON-DURABLES--11.11%
Burlington Industries, Inc.(a) 100,000 1,112,500 3.33%
Helene Curtis Industries, Inc. 20,000 597,500 1.79%
K Mart Corp. 150,000 1,218,750 3.64%
Melville Corporation 15,000 480,000 1.43%
Systemed, Inc. Del.(a) 50,000 306,250 0.92%
- --------------------------------------------------------------------
3,715,000 11.11%
- --------------------------------------------------------------------
ENERGY--11.46%
Baker Hughes, Inc. 25,000 490,625 1.47%
British Petroleum PLC 10,000 882,500 2.64%
Digicon, Inc. 75,000 459,375 1.37%
Murphy Oil Corp. 20,000 757,500 2.27%
Tesoro Petroleum Corp.(a) 100,000 787,500 2.35%
Varco International Inc.(a) 50,000 456,250 1.36%
- --------------------------------------------------------------------
3,833,750 11.46%
- --------------------------------------------------------------------
FINANCE--13.81%
BankAmerica Corp. 20,000 1,150,000 3.44%
Citicorp 30,000 1,946,250 5.82%
Coast Savings Financial, Inc.(a) 40,000 1,055,000 3.16%
Hartford Steam Boilers Insp. & Inc. 10,000 466,250 1.39%
- --------------------------------------------------------------------
4,617,500 13.81%
- --------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
COMMON STOCKS Market % of
(CONTINUED) Shares Value Net Assets
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
GENERAL BUSINESS--8.10%
Dun & Bradstreet Corp. 10,000 $ 597,500 1.79%
Miller, Herman Inc. 30,000 888,750 2.66%
National Education Corp.(a) 100,000 812,500 2.43%
Western Publishing Group, Inc.(a) 50,000 409,375 1.22%
- ----------------------------------------------------------------------------
2,708,125 8.10%
- ----------------------------------------------------------------------------
MISCELLANEOUS--1.81%
Cattellus Development(a) 50,000 275,000 0.82%
Napro Biotherapeudics, Inc.(a) 30,000 330,000 0.99%
- ----------------------------------------------------------------------------
605,000 1.81%
- ----------------------------------------------------------------------------
SHELTER--1.74%
Manville Corp.(a) 50,000 581,250 1.74%
- ----------------------------------------------------------------------------
581,250 1.74%
- ----------------------------------------------------------------------------
TECHNOLOGY--9.53%
Apple Computer 4,000 145,250 0.44%
Boeing International Co. 10,000 656,250 1.96%
International Business Machines 15,000 1,458,750 4.36%
Telxon Corp. 40,000 925,000 2.77%
- ----------------------------------------------------------------------------
3,185,250 9.53%
- ----------------------------------------------------------------------------
UTILITIES--3.45%
Sprint Corp. 30,000 1,155,000 3.45%
- ----------------------------------------------------------------------------
1,155,000 3.45%
- ----------------------------------------------------------------------------
Total Common Stocks
(Cost $23,875,345) 30,021,441 89.78%
- ----------------------------------------------------------------------------
U.S. GOVERNMENT Principal
AGENCY BONDS--6.0% Amount
- ----------------------------------------------------------------------------
Federal Home Loan Banks
5.920%, 4/04/97 1,000,000 999,209 2.99%
Federal Home Loan Mortgage Corp. 6.875%,
9/18/02 1,000,000 1,006,410 3.01%
- ----------------------------------------------------------------------------
Total U.S. Gov't Agency Bonds (Cost
$1,980,388) 2,005,619 6.00%
- ----------------------------------------------------------------------------
SHORT TERM INVESTMENTS--3.76%
Repurchase Agreement,
State Street Bank & Trust Company, dated
10/31/95,
due 11/01/95, 4.5%
Collateralized by U.S.
Treasury Notes valued at $1,283,814. Re-
purchase proceeds of $1,256,157 (Cost
$1,256,000). 1,256,000 1,256,000 3.76%
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $27,111,733)--99.54% 33,283,060 99.54%
OTHER ASSETS & LIABILITIES, NET--0.46% 154,932 0.46%
- ----------------------------------------------------------------------------
TOTAL NET ASSETS--100.0% $33,437,992 100.00%
-----------
</TABLE>
8
<PAGE>
THE TOCQUEVILLE FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at values (identified cost $27,111,733) $33,283,060
Cash 511
Receivables for Fund shares sold 28,184
Receivables for investments sold 153,420
Dividends and interest receivable 53,369
Other assets 25,322
-----------
33,543,866
-----------
LIABILITIES
Payable for Fund shares repurchased 14,120
Accrued investment adviser's fee 22,098
Accrued distribution fee 29,231
Accrued expenses 40,425
-----------
105,874
-----------
NET ASSETS $33,437,992
-----------
At October 31, 1995 net assets consisted of:
Capital paid in $24,687,637
Undistributed net investment income 318,948
Undistributed net realized gain 2,260,080
Net unrealized appreciation 6,171,327
-----------
$33,437,992
-----------
CLASS A
NET ASSET VALUE PER SHARE ($33,437,801/2,376,042 shares outstand-
ing) $14.07
------
Maximum offering price ($14.07/96%) $14.66
------
CLASS B
NET ASSET VALUE PER SHARE AND MAXIMUM OFFERING PRICE ($191/14
shares outstanding) $14.01
------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
THE TOCQUEVILLE FUND
STATEMENT OF OPERATIONS
Year Ended October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of $9,918 foreign taxes withheld) $ 584,567
Interest 250,823
----------
835,390
----------
EXPENSES
Investment adviser's fee (Note 2) 240,219
Custodian and fund accounting 50,530
Transfer agent and shareholder services 28,770
Audit 18,115
Legal 32,080
Distribution (Note 4)
Class A 80,011
Class B --
Administration fee (Note 4) 6,767
Printing 8,295
Registration 12,770
Trustees fee 10,217
Fidelity bond 3,557
Other 7,300
----------
Total expenses 498,631
Less: fees waived (Note 4) (6,767)
----------
Net expenses 491,864
----------
NET INVESTMENT INCOME 343,526
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 2,506,947
Net unrealized appreciation of investments during the year 2,103,502
----------
Net gain on investments 4,610,449
----------
Net increase in net assets resulting from operations $4,953,975
----------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
THE TOCQUEVILLE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
OCTOBER 31,
------------------------
1995 1994
---- ----
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income $ 343,526 $ 253,499
Net realized gain 2,506,947 2,984,525
Net unrealized appreciation (depreciation) 2,103,502 (1,138,343)
----------- -----------
Net increase resulting from operations 4,953,975 2,099,681
Distributions to shareholders from:
Net investment income
Class A (233,851) (276,384)
Class B -- --
Net realized gain on investments
Class A (2,995,036) (1,573,419)
Class B -- --
Fund share transactions (Note 3)
Class A 2,572,904 1,144,676
Class B 200 --
----------- -----------
Net increase in net assets 4,298,192 1,394,554
NET ASSETS
Beginning of year 29,139,800 27,745,246
----------- -----------
End of year $33,437,992 $29,139,800
----------- -----------
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
THE TOCQUEVILLE FUND
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 1
The Tocqueville Trust (the "Trust") was organized as a Massachusetts busi-
ness trust registered under the Investment Company Act of 1940 as amended, as
a diversified, open-end management investment company. The Trust consists of
five separate Funds: The Tocqueville Fund, The Tocqueville Asia-Pacific Fund,
The Tocqueville Small Cap Value Fund, The Tocqueville Europe Fund and The
Tocqueville Government Fund (the "Funds"). The following is a summary of sig-
nificant accounting principles followed by the Trust in the preparation of its
financial statements.
- -------------------------------------------------------------------------------
SECURITY VALUATION
Investments in securities, including foreign securities, traded on an ex-
change or quoted on the over-the-counter market are valued at the last sale
price or, if no sale occurred during the day, at the mean between closing bid
and asked prices, as last reported by a pricing service approved by the Trust-
ees. When market quotations are not readily available, or when restricted se-
curities or other assets are being valued, such assets are valued at fair
value as determined in good faith by or under procedures established by the
Trustees. Short-term investments are stated at cost which, together with ac-
crued interest, approximates market value.
- -------------------------------------------------------------------------------
FEDERAL INCOME TAX
It is the Trust's policy to comply with the provisions of the Internal Reve-
nue Code ("Code") applicable to regulated investment companies and to distrib-
ute all of its taxable income to its shareholders. It is also the Trust's in-
tention to distribute amounts sufficient to avoid imposition of any excise tax
under Section 4982 of the Code. Therefore, no federal income or excise tax
provision is required.
- -------------------------------------------------------------------------------
OTHER
Security transactions are accounted for on the trade date, the date the or-
der to buy or sell is executed. Dividend income is recognized on the ex-divi-
dend date or at the time the Fund becomes aware, whichever is earlier. Inter-
est income is recognized on the accrual basis and market discount is accounted
for on a straight-line basis from settlement date. The Trust uses the first-
in, first-out method for determining realized gain or loss on investments sold
for both financial reporting and federal tax purposes. Distributions to share-
holders are recorded on the ex-dividend date. Expenses incurred by the Trust
not specifically identified to a Fund are allocated on a basis relative to the
size of each fund's daily net asset value.
- -------------------------------------------------------------------------------
NOTE 2
Tocqueville Asset Management L.P. ("Tocqueville"), is the investment adviser
to the Trust under an Investment Advisory Agreement approved by shareholders
on February 26, 1990. For its services, Tocqueville receives a fee from the
Tocqueville Fund payable monthly, at an annual rate of .75% of the first $100
million of the Fund's average daily net assets, .70% of the next $400 million
of average daily net assets, and .65% of average daily net assets in excess of
$500 million.
12
<PAGE>
- -------------------------------------------------------------------------------
Certain states in which shares of the Trust are qualified for sale impose
limitations on the expenses of the Trust. The Advisory Agreement provides that
if, in any fiscal year, the total expenses of the Trust (excluding taxes, in-
terest, extraordinary expenses and the distribution fee but including the Ad-
viser's fee) exceed the expense limitation applicable to the Trust imposed by
the securities regulations of any state in which it is registered to sell
shares, Tocqueville will pay or reimburse the Trust for that excess up to the
amount of its fee. The most restrictive limitation currently applicable (ex-
cluding the items described above) limits a fund to 2.5% of the Trust's first
$30,000,000 of average daily net assets, 2% of the next $70,000,000, and 1.5%
of the Trust's average daily net assets over $100,000,000. No such reimburse-
ment was required for the year ended October 31, 1995.
- -------------------------------------------------------------------------------
NOTE 3
Effective August 14, 1995 the Fund offered two classes of shares: Class A
and Class B shares. Shares of each class are identical except for the initial
sales load on Class A shares, a contingent deferred sales charge on Class B
shares, distribution fees, and voting rights on matters effecting a single
class. All Fund shares outstanding before August 14, 1995 were designated as
Class A shares. At October 31, 1995, there were an unlimited number of shares
of beneficial interest authorized ($0.01 par value). Transactions in the
Fund's shares were as follows:
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
--------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold 448,435 $ 5,664,101 314,344 $ 4,224,458
Shares issued on reinvestment of
dividends 230,270 2,634,292 116,679 1,517,988
Shares redeemed (422,865) (5,725,489) (340,661) (4,597,770)
-------- ----------- -------- -----------
Net increase 255,840 $ 2,572,904 90,362 $ 1,144,676
-------- ----------- -------- -----------
<CAPTION>
CLASS B
---------------------
FOR THE PERIOD FROM
AUGUST 14, 1995
THROUGH
OCTOBER 31, 1995
---------------------
SHARES AMOUNT
------ ------
<S> <C> <C>
Shares sold 14 $ 200
Shares issued on reinvestment of
dividends -- --
Shares redeemed -- --
-------- -----------
Net increase 14 $ 200
-------- -----------
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
NOTE 4
Tocqueville Securities L.P. (the "Distributor") acts as distributor for
shares of the Fund and purchases shares of the Fund at net asset value to fill
orders as received from investment dealers. For the year ended October 31,
1995, the Distributor received net commissions of $1,591 from the sale of the
Fund's shares.
The Fund has adopted distribution plans related to the sale of Class A and
Class B shares pursuant to which the Fund may incur distribution expenses in
amounts not to exceed 0.25% and 0.75% per annum of the average daily net assets
of Class A and Class B shares, respectively. Such expenses may include, but are
not limited to, advertising, printing, and distribution of sales literature,
prospectuses and other materials, and payments to dealers and shareholders ser-
vicing agents including the Distributor. Under the distribution plans, the Dis-
tributor is permitted to carry forward expenses not reimbursed by the distribu-
tion fees to subsequent fiscal years for submission to the Fund for payment,
subject to the continuation of the Plan. The Distributor has informed the Trust
that, as of October 31, 1995, there were $59,065 in unreimbursed expenses for
the Fund.
Class B shares which are redeemed within six years of purchase are subject to
a contingent deferred sales charge at rates ranging from 5% to 0%, charged as a
percentage of the dollar amount subject thereto. There were no contingent de-
ferred sales charges paid to the Distributor for the year ended October 31,
1995.
Commissions earned by the Distributor for services rendered as a registered
broker-dealer in securities transactions for the Fund for the year ended Octo-
ber 31, 1995 were $39,665.
Pursuant to an Administrative Services Agreement, effective September 15,
1995, the Fund pays to the Distributor a fee computed and paid monthly at an
annual rate of 0.15% of the average daily net assets of the Fund. During the
year ended October 31, 1995, the Distributor waived administration fees of
$6,767.
14
<PAGE>
- --------------------------------------------------------------------------------
NOTE 5
Purchases and sales of investment securities (excluding short-term instru-
ments) for the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
FUND
-----------
<S> <C>
PURCHASES
U.S. Government $ 1,978,750
Other 12,414,310
-----------
$14,393,060
-----------
SALES
U.S. Government $ 2,998,906
Other 12,112,461
-----------
$15,111,367
-----------
</TABLE>
- --------------------------------------------------------------------------------
NOTE 6
Unrealized appreciation at October 31, 1995 based on cost of securities for
Federal tax purposes is as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
FUND
-----------
<S> <C>
Gross unrealized appreciation $ 7,781,788
Gross unrealized depreciation (1,851,441)
-----------
Net unrealized appreciation $ 5,930,347
-----------
Cost of investments $27,352,713
-----------
</TABLE>
- --------------------------------------------------------------------------------
15
<PAGE>
THE TOCQUEVILLE FUND
- --------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees and Shareholders
The Tocqueville Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of The Tocqueville Fund, a series of The Tocqueville
Trust, as of October 31, 1995, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the selected financial information for each
of the three years in the period then ended. These financial statements and se-
lected financial information are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements and
selected financial information based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and selected finan-
cial information are free of material misstatement. An audit includes examin-
ing, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
as of October 31, 1995, by correspondence with the custodian. An audit also in-
cludes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presenta-
tion. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of The Tocqueville Fund, a series of The Tocqueville Trust as of
October 31, 1995, the results of its operation, the changes in its net assets,
and the selected financial information for the periods indicated, in conformity
with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
December 1, 1995
16
<PAGE>
THE TOCQUEVILLE FUND
THE TOCQUEVILLE ASIA-PACIFIC FUND
THE TOCQUEVILLE EUROPE FUND
THE TOCQUEVILLE SMALL CAP VALUE FUND
Special Meeting of Shareholders, July 31, 1995
- --------------------------------------------------------------------------------
A Special Meeting of Shareholders of the Trust was held on July 31, 1995 at
the offices of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel, 919 Third Ave-
nue, New York, New York. The purpose of the meeting was to elect six trustees
of the Trust, to ratify McGladrey and Pullen, LLP as independent public accoun-
tants for the Trust, to approve an amendment to the Declaration and Agreement
of Trust to permit the Trustees to authorize, without shareholder approval, the
issuance of separate and distinct classes of shares of each series of the Trust
and to approve the elimination of some fundamental investment restrictions of
the Trust requiring shareholder approval. At the meeting, the shareholders
voted in favor of all of the resolutions presented to them. No other business
was conducted at the Special Meeting of Shareholders.
The results of the voting at the Special Meeting of Shareholders was as fol-
lows:
1. Ratification of an amendment to the Agreement and Declaration of Trust
to permit the Trustees, without shareholder approval, to authorize The
Tocqueville Trust to issue separate and distinct classes of shares of
each series:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 4,474.39 Abstain: 5,053.03
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,433.12 Against: -0- Abstain: 38.46
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
2. Approval of the elimination of the Funds' fundamental investment re-
striction concerning short sales:
THE TOCQUEVILLE FUND
For: 1,469,900.22 Against: 4,474.39 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
17
<PAGE>
- --------------------------------------------------------------------------------
3. Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment for control were as follows:
THE TOCQUEVILLE FUND
For: 1,471,351.92 Against: 3,022.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
4. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of affiliates:
THE TOCQUEVILLE FUND
For: 1,464,396.14 Against: 9,978.47 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
5. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of other investment companies:
THE TOCQUEVILLE FUND
For: 1,469,057.52 Against: 5,317.09 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
18
<PAGE>
- --------------------------------------------------------------------------------
6. Approval of the elimination of the Funds' fundamental investment re-
striction concerning development programs:
THE TOCQUEVILLE FUND
For: 1,468,635.92 Against: 5,738.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
7.Approval of the elimination of the Funds' fundamental investment re-
striction concerning transactions involving puts, calls or options:
THE TOCQUEVILLE FUND
For: 1,464,689.65 Against: 9,684.96 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
8.Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment in securities of issuers in operation
for less than three years:
THE TOCQUEVILLE FUND
For: 1,460,800.07 Against: 13,574.54 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
19
<PAGE>
- --------------------------------------------------------------------------------
9. Approval of the amendment of the Funds' fundamental investment re-
stricting concerning the lending of money or securities:
THE TOCQUEVILLE FUND
For: 1,459,829.27 Against: 14,545.34 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
10. Approval of the amendment of the Funds' fundamental investment restric-
tion concerning commodities:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 8,714.16 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
11. Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
restricted and illiquid securities:
THE TOCQUEVILLE FUND
For: 1,464,490.27 Against: 9,884.34 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
12.Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
the amount of allowable investment in foreign securities:
THE TOCQUEVILLE FUND
For: 1,470,321.45 Against: 4,053.16 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
20
<PAGE>
- --------------------------------------------------------------------------------
13.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning re-
stricted and illiquid securities:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
14.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning securi-
ties of other investment companies were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
15.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning war-
rants were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
16. Election of six (6) Trustees, for a term to expire until his or her
successor is elected and has qualified:
<TABLE>
<CAPTION>
WITHHOLDING
FOR AUTHORITY
--- -----------
<S> <C> <C>
Francois Sicart 2,471,499.52 -0-
Bernard Combemale 2,471,499.52 -0-
James Flaherty 2,466,639.14 4,860.38
Inge Heckel 2,466,639.14 4,860.38
Robert Kleinschmidt 2,471,499.52 -0-
Francois Letaconnoux 2,471,499.52 -0-
</TABLE>
17. Ratification of the selection of McGladrey & Pullen, LLP, as indepen-
dent public accountants for the Trust for the fiscal year ended October
31, 1995.
For: 2,471,102.02 Against: -0- Abstain: 397.50
21
<PAGE>
INVESTMENT ADVISOR
Tocqueville Asset Management L.P.
1675 Broadway
New York, New York 10019
Telephone: (212) 698-0800
Telecopier: (212) 262-0154
DISTRIBUTOR
Tocqueville Securities L.P.
1675 Broadway
New York, New York 10019
Telephone: (800) 697-3863
Telecopier: (212) 262-0154
SHAREHOLDERS' SERVICING,
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 8507
Boston, Massachusetts 02266-8507
Telephone Toll Free
(800) 626-9402
BOARD OF TRUSTEES
Francois Sicart -- Chairman
Bernard F. Combemale
James B. Flaherty
Inge Heckel
Robert W. Kleinschmidt
Francois Letaconnoux
[LOGO] The Tocqueville Fund
The Tocqueville Fund
a series of
The Tocqueville Trust
Annual Report
October 31, 1995
<PAGE>
THE TOCQUEVILLE EUROPE FUND
- -------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDERS:
The Tocqueville Europe Fund, wound up its fiscal year with a gain of 8.08%
for Class A shareholders, against a gain of 13.21% for the Morgan Stanley Eu-
rope Index, after having been slightly ahead of that index in the first six
months. In part, this was due to the relatively large cash reserves which we
felt prudent to hold, in view of the unsettled economic and political environ-
ment in the region. In addition, as is often the case in uncertain times, in-
vestors sought refuge in the shares of large, well-known companies. While the
operating results of many smaller companies in our portfolio have been signif-
icantly better than for larger ones, their shares have tended to lag temporar-
ily.
Overall, in spite of the significant problems plaguing Germany, France, Ita-
ly, Spain and some other countries as well, we are feeling increasingly opti-
mistic. Enough pain, both economic and political, has now been felt so that
policies are being altered to allow for new stimulus and lower interest rates.
Meanwhile, many companies, especially those not big enough to operate under
the protection of governments, have become particularly lean and competitive,
and present significant recovery potential in a more buoyant environment. We
find particularly good values in France, where price/earnings ratios and par-
ticularly price/cash-flow ratios are well below those available for similar
companies in the United States. Although the choices are narrower, the same
can be said of Spain and Italy.
The risk remains of a significant appreciation of the dollar against most
European countries. We have purchased enough put options on the Deutschemark
and the French Franc to protect the portfolio against the possibility of a
sharp advance of the U.S. currency.
Francois Sicart
Portfolio Manager
- -------------------------------------------------------------------------------
This report is not authorized for distribution to prospective investors un-
less preceded or accompanied by a currently effective prospectus of The
Tocqueville Trust.
<PAGE>
- --------------------------------------------------------------------------------
[MAC CHART]
- --------------------------------------------------------------------------------
2
<PAGE>
THE TOCQUEVILLE EUROPE FUND
SELECTED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
------------------------------------
PERIOD FROM
YEAR ENDED AUGUST 1, 1994
OCTOBER 31, 1995 TO OCTOBER 31, 1994
---------------- -------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT THE
PERIOD)
<S> <C> <C>
Net asset value, beginning of period..... $10.02 $10.00
------ ------
Income from investment operations:
Net investment loss...................... (0.01)(a) (0.04)(b)
Net realized and unrealized gain......... 0.82 0.06
------ ------
Total from investment operations......... 0.81 0.02
------ ------
Net asset value, end of period........... $10.83 $10.02
====== ======
Total Return(c).......................... 8.08% 0.20%
Ratios/supplemental data
Net assets, end of period (000).......... $6,270 $2,516
Ratio of average net assets of:
Expenses................................ 4.43%(a) 6.18%*(b)
Net investment income................... (0.53%)(a) (2.47%)*(b)
Portfolio turnover rate.................. 109.48% 0.00%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------
PERIOD FROM
AUGUST 14, 1995
TO
OCTOBER 31, 1995
----------------
<S> <C>
Net asset value, beginning of period........................... $10.93
------
Income from investment operations:
Net investment income.......................................... --
Net realized and unrealized loss............................... (0.12)
------
Total from investment operations............................... (0.12)
------
Net asset value, end of period................................. $10.81
======
Total Return(d)................................................ (1.10%)
Ratios/supplemental data
Net assets, end of period...................................... $ 198
Ratio of average net assets of:
Expenses...................................................... --
Net investment income......................................... --
</TABLE>
- --------
(a) Net of fees waived amounting to 1.28% of average net assets for the year
ended October 31, 1995.
(b) Net of fees waived amounting to 1.00% of average net assets for the year
ended October 31, 1994.
(c) Does not include maximum sales load of 4%.
(d) Does not include contingent deferred sales charge. Not annualized.
* Annualized.
3
<PAGE>
THE TOCQUEVILLE EUROPE FUND
INVESTMENTS AS OF OCTOBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
US$
Market % of
COMMON STOCKS--60.33% Shares Value Net Assets
- ------------------------------------------------------
<S> <C> <C> <C>
GERMANY--1.98%
Eifelhohen Klinik 310 $ 58,387 0.93%
Puma AG(a) 200 55,437 0.89%
Dorries Scharmann(a) 1,800 10,235 0.16%
- ------------------------------------------------------
124,059 1.98%
- ------------------------------------------------------
FRANCE--38.47%
ADA 3,600 150,384 2.40%
APEM 2,000 64,339 1.03%
Credit Commercial France 1,500 74,639 1.19%
Darnal Expansion(a) 5,000 49,145 0.78%
Delachaux 1,000 100,338 1.60%
Devernois 1,750 162,746 2.60%
Europeene du Propulsion 2,000 131,054 2.09%
Ferrailes CFF 500 54,367 0.87%
Eiffage 550 81,089 1.29%
GFI Industries 1,000 82,932 1.32%
Groupe Partouche(a) 1,500 87,847 1.40%
Faiveley 1,000 60,407 0.96%
Infopoint 1,000 28,054 0.45%
CET 2,000 105,580 1.68%
Intl. Metal Service 700 101,771 1.62%
Metrologie Intl.(a) 35,000 110,013 1.75%
Mediascience 350 29,248 0.47%
Musee Grevin(a) 1,200 26,054 0.42%
CPR Cie Par Reesco 2,000 153,988 2.46%
Radiall SA 500 52,524 0.84%
Rouleau Guichard(a) 1,700 163,612 2.61%
Soc. Elf Acquitaine 500 34,094 0.54%
Synthelabo 2,000 128,924 2.06%
Thermador Holdings 1,000 84,094 1.34%
Sanofi 1,716 109,598 1.75%
Usinor Sacilor(a) 10,000 149,483 2.38%
Vilmorin 500 35,922 0.57%
- ------------------------------------------------------
2,412,246 38.47%
- ------------------------------------------------------
ITALY--4.83%
Marzotto & Figli 13,000 82,836 1.32%
Tecnost SPA 38,000 78,724 1.26%
Luxottica Group SPA 2,900 141,375 2.25%
- ------------------------------------------------------
302,935 4.83%
- ------------------------------------------------------
NETHERLANDS--11.45%
Aalberts Industrie 1,350 79,120 1.26%
Getronics NV 1,900 90,648 1.45%
Hagemeyer 1,600 79,681 1.27%
IHC Caland NV 2,500 71,121 1.13%
KLM 2,500 82,526 1.32%
Kon PTT Nederland 2,500 87,911 1.40%
Royal Dutch Petroleum 600 74,473 1.19%
Stork NV 2,300 55,667 0.89%
Volker Stevin 1,500 96,464 1.54%
- ------------------------------------------------------
717,611 11.45%
- ------------------------------------------------------
</TABLE>
(a) Non-income producing security
See Notes to Financial Statements.
<TABLE>
<CAPTION>
US$
Market % of
COMMON STOCKS (CONTINUED) Shares Value Net Assets
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
SPAIN & PORTUGAL--.70%
First Iberian Fund, Inc.(a) 6,000 $ 43,875 0.70%
- -----------------------------------------------------------------------------
UNITED KINGDOM--2.90%
Cable & Wireless 10,500 68,572 1.09%
Hays 10,000 57,875 0.93%
RTZ Corp. 4,000 55,408 0.88%
- -----------------------------------------------------------------------------
181,855 2.90%
- -----------------------------------------------------------------------------
Total Common Stocks
(Cost $3,496,083) 3,782,581
- -----------------------------------------------------------------------------
<CAPTION>
Principal
CORPORATE BONDS--.45% Amount
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Sanofi 4% Conv. Bonds due 1/01/00 FF (Cost
$23,828) $375 28,028 0.45%
- -----------------------------------------------------------------------------
<CAPTION>
FOREIGN CURRENCY Number of
OPTIONS--.90% Contracts
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Put 250 French Franc
Dec 95 19.5 11 10,065 0.16%
Put 625 German Mark Mar 96 67 11 4,469 0.07%
Put 625 German Mark Mar 96 70 11 11,550 0.19%
Put 250 French Franc Mar 96 19 10 8,000 0.13%
Put 250 French Franc June 96 19 11 10,890 0.17%
Put 625 German Mark June 96 64 15 11,438 0.18%
- -----------------------------------------------------------------------------
Total Foreign Currency Options (Cost
$64,993) 56,412
- -----------------------------------------------------------------------------
<CAPTION>
SHORT-TERM Principal
INVESTMENTS--50.77% Amount
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Repurchase Agreement, State Street Bank &
Trust Company, 4.5% dated 10/31/95, due
11/01/95 (Collateralized by U.S. Treasury
Notes valued at $3,220,307. Repurchase
proceeds of $3,183,398). $3,183,000 3,183,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $6,767,914)--112.45% 7,050,021
OTHER ASSETS & LIABILITIES,
NET--(12.45%) (780,364)
- -----------------------------------------------------------------------------
TOTAL NET ASSETS--100% $6,269,657
----------
</TABLE>
4
<PAGE>
THE TOCQUEVILLE EUROPE FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at value (identified cost $6,767,914) $7,050,021
Cash, foreign currency 330
Receivables:
Fund shares sold 24,614
Dividends and interest 4,346
Other 16,795
Deferred organization expense 22,375
----------
7,118,481
----------
LIABILITIES
Funds advanced by custodian 58,688
Payable for investments purchased 741,375
Accrued investment advisor's fee --
Accrued distribution fee --
Accrued expenses 48,065
Other liabilities 696
----------
848,824
----------
NET ASSETS $6,269,657
----------
At October 31, 1995 net assets consisted of:
Capital paid in $5,985,954
Accumulated net investment loss (18,930)
Undistributed net realized gain 20,664
Net unrealized appreciation 281,969
----------
$6,269,657
----------
CLASS A
NET ASSET VALUE PER SHARE ($6,269,459/579,039 shares outstanding) $10.83
----------
Maximum offering price
($10.83/96%) $11.28
----------
CLASS B
NET ASSET VALUE PER SHARE AND MAXIMUM OFFERING PRICE ($198/18
shares outstanding) $10.81
----------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
THE TOCQUEVILLE EUROPE FUND
STATEMENT OF OPERATIONS
Year Ended October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of $14,484 foreign taxes withheld) $ 84,650
Interest 55,575
--------
140,225
--------
EXPENSES
Investment adviser's fee (Note 2) 35,890
Custodian and fund accounting 62,935
Transfer agent and shareholder services 21,725
Audit 8,532
Legal 35,053
Distribution (Note 4)
Class A 8,972
Class B --
Administration fee (Note 4) 964
Printing 3,650
Registration 12,765
Trustees fee 1,828
Amortization of organization expenses 7,193
Fidelity bond and other 5,474
--------
Total expenses 204,981
Less: fees waived and expenses reimbursed (Notes 2 and 4) (45,826)
--------
Net expenses 159,155
--------
NET INVESTMENT LOSS (18,930)
--------
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 38,864
Foreign currency transactions (18,200)
--------
20,664
--------
Net unrealized appreciation (depreciation) on:
Investments 258,893
Foreign currency translation of other assets and liabilities (138)
--------
258,755
--------
Net gain on investments 279,419
--------
Net increase in net assets resulting from operations $260,489
--------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
THE TOCQUEVILLE EUROPE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD FROM
YEAR ENDED AUGUST 1, 1994 TO
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment loss $ (18,930) $ (10,359)
Net realized gain (loss) 20,664 (2,000)
Net unrealized appreciation 258,755 23,214
---------- ----------
Net increase resulting from operations 260,489 10,855
Fund share transactions (Note 3)
Class A 3,492,707 2,505,406
Class B 200 --
---------- ----------
Net increase in net assets 3,753,396 2,516,261
NET ASSETS
Beginning of period 2,516,261 --
---------- ----------
End of period $6,269,657 $2,516,261
---------- ----------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
THE TOCQUEVILLE EUROPE FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1
The Tocqueville Trust (the "Trust") was organized as a Massachusetts business
trust registered under the Investment Company Act of 1940 as amended, as a di-
versified, open-end management investment company. The Trust consists of five
separate Funds: The Tocqueville Fund, The Tocqueville Asia-Pacific Fund, The
Tocqueville Small Cap Value Fund, The Tocqueville Europe Fund and The
Tocqueville Government Fund (the "Funds"). The following is a summary of sig-
nificant accounting principles followed by the Trust in the preparation of its
financial statements.
- --------------------------------------------------------------------------------
SECURITY VALUATION
Investments in securities, including foreign securities, traded on an ex-
change or quoted on the over-the-counter market are valued at the last sale
price or, if no sale occurred during the day, at the mean between closing bid
and asked prices, as last reported by a pricing service approved by the Trust-
ees. When market quotations are not readily available, or when restricted secu-
rities or other assets are being valued, such assets are valued at fair value
as determined in good faith by or under procedures established by the Trustees.
Short-term investments are stated at cost which, together with accrued inter-
est, approximates market value.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX
It is the Trust's policy to comply with the provisions of the Internal Reve-
nue Code ("Code") applicable to regulated investment companies and to distrib-
ute all of its taxable income to its shareholders. It is also the Trust's in-
tention to distribute amounts sufficient to avoid imposition of any excise tax
under Section 4982 of the Code. Therefore, no federal income or excise tax pro-
vision is required.
- --------------------------------------------------------------------------------
DEFERRED ORGANIZATION EXPENSES
Expenses incurred in connection with the organization of The Tocqueville Eu-
rope Fund (the "Fund") are being amortized on a straight-line basis over a
five-year period from the Fund's commencement of operations. In the event any
initial shares of The Tocqueville Europe Fund are redeemed during the amortiza-
tion period, the proceeds of redemption will be reduced by the pro-rata portion
of any unamortized organization expenses in the same proportion as the number
of shares redeemed bears to the number of initial shares held at the time of
redemption.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION
Investments and other assets and liabilities denominated in foreign curren-
cies are translated to U.S. dollars at the prevailing rates of exchange. The
Tocqueville Europe Fund is engaged in transactions in securities denominated in
foreign currencies and, as a result, enters into foreign exchange contracts.
The Fund is exposed to additional market risk as a result of changes in the
value of the underlying currency in relation to the U.S. dollar. The value of
foreign currency
8
<PAGE>
- -------------------------------------------------------------------------------
contracts are "marked to market" on a daily basis, which reflects the change
in the market value of the contract at the close of each day's trading, re-
sulting in daily unrealized gains and/or losses. When the contracts are
closed, the Fund recognizes a realized gain or loss.
The Fund does not isolate that portion of the results of operations result-
ing from changes in foreign exchange rates on investments from the fluctua-
tions arising from changes in market prices of securities held. Such fluctua-
tions are included with the net realized and unrealized gain or loss from
investments.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books, and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes
in the value of assets and liabilities other than investments in securities at
the end of the fiscal period, resulting from changes in the exchange rates.
- -------------------------------------------------------------------------------
OTHER
Security transactions are accounted for on the trade date, the date the or-
der to buy or sell is executed. Dividend income is recognized on the ex-divi-
dend date or at the time the Fund becomes aware, whichever is earlier. Inter-
est income is recognized on the accrual basis and market discount is accounted
for on a straight-line basis from settlement date. The Trust uses the first-
in, first-out method for determining realized gain or loss on investments sold
for both financial reporting and federal tax purposes. Distributions to share-
holders are recorded on the ex-dividend date. Expenses incurred by the Trust
not specifically identified to a fund are allocated on a basis relative to the
size of each fund's daily net asset value. It is the Fund's policy to take
possession of securities as collateral under repurchase agreements and to de-
termine on a daily basis that the value of such securities are sufficient to
cover the value of the repurchase agreements.
- -------------------------------------------------------------------------------
NOTE 2
Tocqueville Asset Management L.P. ("Tocqueville"), is the investment adviser
to the Trust under an Investment Advisory Agreement approved by shareholders
on February 26, 1990. For its services, Tocqueville receives a fee from the
Fund, payable monthly, at an annual rate of 1.00% on the first $50 million of
its average daily net assets, .75% of the next $50 million of average daily
net assets, and .65% of average daily net assets in excess of $100 million.
Certain states in which shares of the Trust are qualified for sale impose
limitations on the expenses of the Trust. The Advisory Agreement provides that
if, in any fiscal year, the total expenses of the Trust (excluding taxes, in-
terest, extraordinary expenses and the distribution fee but including the Ad-
viser's fee) exceed the expense limitation applicable to the Trust imposed by
the
9
<PAGE>
- --------------------------------------------------------------------------------
securities regulations of any state in which it is registered to sell shares,
Tocqueville will pay or reimburse the Trust for that excess up to the amount of
its fee. The most restrictive limitation currently applicable (excluding the
items described above) limits a fund to 2.5% of the Trust's first $30,000,000
of average daily net assets, 2% of the next $70,000,000, and 1.5% of the
Trust's average daily net assets over $100,000,000. For the year ended October
31, 1995, the Adviser has waived its advisory fee of $35,890, due to the ex-
pense limitation referred to above.
- --------------------------------------------------------------------------------
NOTE 3
Effective August 14, 1995 the Fund offered two classes of shares: Class A
and Class B shares. Shares of each class are identical except for the initial
sales load on Class A shares, a contingent deferred sales charge on Class B
shares, distribution fees, and voting rights on matters effecting a single
class. All Fund shares outstanding before August 14, 1995 were designated as
Class A shares. At October 31, 1995, there were an unlimited number of shares
of beneficial interest authorized ($0.01 par value). Transactions in the Fund's
shares were as follows:
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------
FOR THE PERIOD FROM
YEAR ENDED AUGUST 1, 1994 TO
OCTOBER 31, 1995 OCTOBER 31, 1994
--------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------------------
<S> <C> <C> <C> <C>
Shares sold 346,755 $ 3,693,929 251,226 $ 2,505,406
Shares redeemed (18,942) (201,222) -- --
-------- ----------- -------- -----------
Net increase 327,813 $ 3,492,707 251,226 $ 2,505,406
-------- ----------- -------- -----------
<CAPTION>
CLASS B
---------------------
FOR THE PERIOD FROM
AUGUST 14, 1995 TO
OCTOBER 31, 1995
---------------------
SHARES AMOUNT
--------- -----------
<S> <C> <C>
Shares sold 18 $ 200
Shares redeemed -- --
-------- -----------
Net increase 18 $ 200
-------- -----------
</TABLE>
- --------------------------------------------------------------------------------
NOTE 4
Tocqueville Securities L.P. (the "Distributor") acts as distributor for
shares of the Fund and purchases shares of the Fund at net asset value to fill
orders as received from investment dealers. For the year ended October 31,
1995, the Distributor received net commissions of $60 from the sale of the
Fund's shares.
10
<PAGE>
- --------------------------------------------------------------------------------
The Fund has adopted distribution plans related to the sale of Class A and
Class B shares pursuant to which the Fund may incur distribution expenses in
amounts not to exceed 0.25% and 0.75% per annum of the average daily net assets
of Class A and Class B shares, respectively. Such expenses may include, but are
not limited to, advertising, printing, and distribution of sales literature,
prospectuses and other materials, and payments to dealers and shareholders ser-
vicing agents including the Distributor. Under the distribution plans, the Dis-
tributor is permitted to carry forward expenses not reimbursed by the distribu-
tion fees to subsequent fiscal years for submission to the Fund for payment,
subject to the continuation of the Plan. For the year ended October 31, 1995,
the Distributor has waived distribution fees of $8,972 and $0, respectively for
Class A and Class B shares. The Distributor has informed the Trust that, as of
October 31, 1995, there were $52,487 in unreimbursed expenses for the Fund.
Class B shares which are redeemed within six years of purchase are subject to
a contingent deferred sales charge at rates ranging from 5% to 0%, charged as a
percentage of the dollar amount subject thereto. There were no contingent de-
ferred sales charges paid to the Distributor for the year ended October 31,
1995.
Pursuant to an Administrative Services Agreement, effective September 15,
1995, the Fund pays to the Distributor a fee computed and paid monthly at an
annual rate of 0.15% of the average daily net assets of the Fund. During the
year ended October 31, 1995, the Distributor waived administration fees of
$964.
- --------------------------------------------------------------------------------
NOTE 5
Purchases and sales of investment securities (excluding short-term instru-
ments) for the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
EUROPE FUND
-----------
<S> <C>
PURCHASES
U.S. Government $ --
Other 5,693,447
----------
$5,693,447
----------
SALES
U.S. Government $ --
Other 2,571,390
----------
$2,571,390
----------
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
NOTE 6
Unrealized appreciation at October 31, 1995 based on cost of securities for
Federal tax purposes is as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
EUROPE FUND
-----------
<S> <C>
Gross unrealized appreciation $ 391,639
Gross unrealized depreciation (109,532)
----------
Net unrealized appreciation $ 282,107
----------
Cost of investments $6,767,914
----------
</TABLE>
- --------------------------------------------------------------------------------
12
<PAGE>
THE TOCQUEVILLE EUROPE FUND
- --------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees and Shareholders
The Tocqueville Europe Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of The Tocqueville Europe Fund, a series of The
Tocqueville Trust, as of October 31, 1995, and the related statement of opera-
tions for the year then ended, the statement of changes in net assets and the
selected financial information for the year then ended and for the period Au-
gust 1, 1994 to October 31, 1994. These financial statements and selected fi-
nancial information are the responsibility of the Fund's management. Our re-
sponsibility is to express an opinion on these financial statements and
selected financial information based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and selected finan-
cial information are free of material misstatement. An audit includes examin-
ing, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
as of October 31, 1995, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of The Tocqueville Europe Fund, a series of The Tocqueville Trust as
of October 31, 1995, the results of its operations, the changes in its net
assets, and the selected financial information for the periods indicated, in
conformity with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
December 1, 1995
13
<PAGE>
THE TOCQUEVILLE FUND
THE TOCQUEVILLE ASIA-PACIFIC FUND
THE TOCQUEVILLE EUROPE FUND
THE TOCQUEVILLE SMALL CAP VALUE FUND
Special Meeting of Shareholders, July 31, 1995
- --------------------------------------------------------------------------------
A Special Meeting of Shareholders of the Trust was held on July 31, 1995 at
the offices of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel, 919 Third Ave-
nue, New York, New York. The purpose of the meeting was to elect six trustees
of the Trust, to ratify McGladrey and Pullen, LLP as independent public accoun-
tants for the Trust, to approve an amendment to the Declaration and Agreement
of Trust to permit the Trustees to authorize, without shareholder approval, the
issuance of separate and distinct classes of shares of each series of the Trust
and to approve the elimination of some fundamental investment restrictions of
the Trust requiring shareholder approval. At the meeting, the shareholders
voted in favor of all of the resolutions presented to them. No other business
was conducted at the Special Meeting of Shareholders.
The results of the voting at the Special Meeting of Shareholders was as fol-
lows:
1. Ratification of an amendment to the Agreement and Declaration of Trust
to permit the Trustees, without shareholder approval, to authorize The
Tocqueville Trust to issue separate and distinct classes of shares of
each series:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 4,474.39 Abstain: 5,053.03
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,433.12 Against: -0- Abstain: 38.46
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
2. Approval of the elimination of the Funds' fundamental investment re-
striction concerning short sales:
THE TOCQUEVILLE FUND
For: 1,469,900.22 Against: 4,474.39 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
14
<PAGE>
- --------------------------------------------------------------------------------
3. Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment for control were as follows:
THE TOCQUEVILLE FUND
For: 1,471,351.92 Against: 3,022.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
4. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of affiliates:
THE TOCQUEVILLE FUND
For: 1,464,396.14 Against: 9,978.47 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
5. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of other investment companies:
THE TOCQUEVILLE FUND
For: 1,469,057.52 Against: 5,317.09 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
15
<PAGE>
- --------------------------------------------------------------------------------
6. Approval of the elimination of the Funds' fundamental investment re-
striction concerning development programs:
THE TOCQUEVILLE FUND
For: 1,468,635.92 Against: 5,738.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
7.Approval of the elimination of the Funds' fundamental investment re-
striction concerning transactions involving puts, calls or options:
THE TOCQUEVILLE FUND
For: 1,464,689.65 Against: 9,684.96 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
8.Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment in securities of issuers in operation
for less than three years:
THE TOCQUEVILLE FUND
For: 1,460,800.07 Against: 13,574.54 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
16
<PAGE>
- --------------------------------------------------------------------------------
9. Approval of the amendment of the Funds' fundamental investment re-
stricting concerning the lending of money or securities:
THE TOCQUEVILLE FUND
For: 1,459,829.27 Against: 14,545.34 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
10. Approval of the amendment of the Funds' fundamental investment restric-
tion concerning commodities:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 8,714.16 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
11. Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
restricted and illiquid securities:
THE TOCQUEVILLE FUND
For: 1,464,490.27 Against: 9,884.34 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
12.Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
the amount of allowable investment in foreign securities:
THE TOCQUEVILLE FUND
For: 1,470,321.45 Against: 4,053.16 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
17
<PAGE>
- --------------------------------------------------------------------------------
13.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning re-
stricted and illiquid securities:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
14.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning securi-
ties of other investment companies were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
15.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning war-
rants were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
16. Election of six (6) Trustees, for a term to expire until his or her
successor is elected and has qualified:
<TABLE>
<CAPTION>
WITHHOLDING
FOR AUTHORITY
--- -----------
<S> <C> <C>
Francois Sicart 2,471,499.52 -0-
Bernard Combemale 2,471,499.52 -0-
James Flaherty 2,466,639.14 4,860.38
Inge Heckel 2,466,639.14 4,860.38
Robert Kleinschmidt 2,471,499.52 -0-
Francois Letaconnoux 2,471,499.52 -0-
</TABLE>
17. Ratification of the selection of McGladrey & Pullen, LLP, as indepen-
dent public accountants for the Trust for the fiscal year ended October
31, 1995.
For: 2,471,102.02 Against: -0- Abstain: 397.50
18
<PAGE>
INVESTMENT ADVISOR
Tocqueville Asset Management L.P.
1675 Broadway
New York, New York 10019
Telephone: (212) 698-0800
Telecopier: (212) 262-0154
DISTRIBUTOR
Tocqueville Securities L.P.
1675 Broadway
New York, New York 10019
Telephone: (800) 697-3863
Telecopier: (212) 262-0154
SHAREHOLDERS' SERVICING,
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 8507
Boston, Massachusetts 02266-8507
Telephone Toll Free
(800) 626-9402
BOARD OF TRUSTEES
Francois Sicart -- Chairman
Bernard F. Combemale
James B. Flaherty
Inge Heckel
Robert W. Kleinschmidt
Francois Letaconnoux
LOGO
The Tocqueville
Europe Fund
a series of
The Tocqueville Trust
Annual Report
October 31, 1995
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDERS:
I am pleased to report that the Tocqueville Small Cap Value Fund has contin-
ued its excellent performance. For the year ended October 31, 1995, your risk
averse portfolio of value stocks posted a 19.2% increase in Net Asset Value to
$11.91 per share for Class A shares. These gratifying results place your fund
above the performance of the Russell 2000 Index, which is the most widely ac-
cepted benchmark for small cap stocks. I will try my best to maintain that per-
formance in the future.
DISTRIBUTION
Shareholders of the Fund on the Record Date of December 8, 1995 received a
short-term capital gains distribution of $0.77 per share, payable December 14,
1995.
CAUTIOUS OPTIMISM MAINTAINED
Overall, I remain cautiously optimistic. Common stocks represented 88% of as-
sets on October 31, 1995. United States Treasury Bonds accounted for another
6%, and the balance of 6% was invested in US Treasury Bills or equivalents.
I would summarize my investment positioning strategy for 1996 as follows:
FIRST, I reduced the Fund's exposure to most sectors of the economy that could
be overly vulnerable to an economic downturn. I also eliminated some technology
stocks where I felt that the price had moved far ahead of the fundamentals.
SECOND, I increased the Fund's exposure to "sunrise industries" that provide
software, wireless, teleconferencing, distance learning, and entertainment
products or services. LASTLY, I made new investments in two severely depressed
sectors where long-term values seemed rather compelling: oil drilling services,
and apparel manufacturing.
To be more specific, more than half of the Fund's assets are now invested in
companies which I hope are not overly sensitive to the economy: Healthcare
(16.2%), Communications (13.6%), Industrial Services (11.6%), and Financial
Services (10.2%).
Our next two largest sectors of exposure are extremely recent additions to
the portfolio. They are in industries which have already undergone a profound
economic downturn, where I believe current stock market valuations are well be-
low intrinsic replacement values or potential earning power valuations. These
two new sectors include leading producers of consumer non-durable goods under
the caption Consumer-Apparel (8.0%) and leading providers of oil and gas explo-
ration and production services under the caption Drilling Equipment & Services
(7.6%). Following is an alphabetical listing of our ten largest positions.
These represent 33.6% of assets.
<PAGE>
- --------------------------------------------------------------------------------
TEN LARGEST POSITIONS
<TABLE>
<S> <C>
American Travellers
Corporation (3.6%) Defined benefit coverage for nursing home care
Analysts International
Corp. (3.5%) Contract programming services to businesses
Ballard Medical Products
(3.7%) Medical and Surgical instruments & products
Bindley Western Industries
(3.3%) Wholesale prescription drug distribution
Cone Mills Corp. (2.9%) World's largest denim manufacturer
O'Sullivan Industries
Hldgs. (2.5%) Producer of Ready-To-Assemble furniture
Proxim Inc. (2.7%) Manufacturer of computer-to-computer radios
Telxon Corp. (3.2%) Wireless and bar-code data capture products
Unifirst Corp. (4.5%) Uniform mfg., renting and cleaning services
Western National
Corporation (3.7%) Tax-deferred annuities & related products
</TABLE>
LONG TERM ORIENTATION
I believe that successful investing requires considerable attention to "how
much you pay for what you get," considerable patience coupled with the willing-
ness to accept some temporary discomfort, and lastly, true long-term commit-
ment. Central to my thinking is the belief that whatever is taking place today
at a company is the result of strategies implemented many months and possibly
years ago. Consequently, most of my analytical attention centers on long-term
issues, on the theory that if I am correct in my long-term assessment of the
business prospects of an enterprise, short-term market fluctuations are rela-
tively less important.
In addition, I believe that successful long-term investments are those made
in "good businesses." Consequently, most of my bottom-up analytical work cen-
ters on picking "good businesses" from an entrepreneurial perspective.
INVESTING WISELY
My concept of "Investing Wisely" means investing in "good businesses" when
they are already down significantly in price. To that end, I follow these time-
tested guidelines:
RULE #1: RESTRICT THE MAJORITY OF NEW PURCHASES TO STOCKS THAT ARE ALREADY
DOWN SUBSTANTIALLY IN PRICE. I very rarely violate that value-oriented strategy
when making new purchases. For example, 75% of the 52 stocks that we owned on
October 31, 1995 were down on average 30.85% and 36.3% from their last 12
months' and prior 60 months' highs, respectively. The implication is that these
stocks already had some significant price correction, and already went through
a period of economic hardship. Consequently, many are receiving scant coverage
from Wall Street, some are even receiving negative coverage, and most represent
good value.
2
<PAGE>
- -------------------------------------------------------------------------------
RULE #2 : SYSTEMATICALLY SCREEN THESE "DOWN AND OUT" STOCKS FOR FINANCIAL
-------------------------------------------------------------------------
STRENGTH. I believe that financial weakness is most often indicative of poor
- ---------
business fundamentals. I want to avoid investing in a poor business, no matter
how inexpensive it gets. Conversely, I have a strong affinity for self-reliant
and practically debt-free companies. My logic is that people who properly man-
age their finances are least likely to disappoint their shareholders. The av-
erage debt-to-capitalization ratio of all the stocks in the Fund's portfolio
is a very conservative 18%.
RULE #3 : "INVEST TO WIN." While this is by far the most difficult task, its
--------------------------
logic is quite appealing. Starting from a selection of stocks that have de-
clined substantially in price and retained their financial strength, I attempt
to single out the so-called "good business" that I want to own for the long
term. What constitutes a "good business" is obviously hard to define. However,
I believe that "good businesses" should have some of these features, ranked in
order of importance:
. MANAGEMENT INTEGRITY, REPUTATION AND SOCIAL RESPONSIBILITY. I cannot
identify a single successful long-term investment lacking these comple-
mentary qualities. I view the
level of integrity at the top of any organization as the single most
critical ingredient required for success over the long term. Integrity
directly sets the tone for the organization's strategies, and it indi-
rectly sets the intensity of management's commitment to the business.
Integrity defuses most adversarial labor-management conflicts, and thus
improves productivity. Reputation allows organizations to hire and re-
tain the best people available, and to stay ahead of the competition. I
view social responsibility as the necessary foundation of all worthy in-
vestment activities.
. GROWTH POTENTIAL. A good investment should offer its owner some pros-
pects of long- term growth, profitability, and financial security. It
has already been well publicized that over the very long term, the fast-
est growing segments of the US economy may very well be the so-called
service industries. This is reflected in the 21.9% mix of service busi-
nesses in the Fund's portfolio. Four of our ten largest positions are
service stocks: American Travellers Life Insurance; Analysts Interna-
tional; Unifirst Corp.; Western National Corp.
. NEW PRODUCTS. Good businesses are always built around very successful
new products. At the moment, twelve of our companies have new products
under development that, if successful over the long term, could very
significantly improve their earnings potential. Two of these are among
our ten largest holdings: Ballard Medical and Telxon Corp.
. PROPRIETARY STRENGTHS. Good businesses often fashion proprietary skills
into strong competitive tools. For example, nearly all of the emergency
room supplies manufactured by Ballard Medical Products and most of the
resins manufactured by Lawter International for the printing and graphic
arts industries are protected by patents or proprietary know-how. These
two companies seem well positioned for the future and presently enjoy
very strong profit margins.
3
<PAGE>
- --------------------------------------------------------------------------------
. MARKET SHARE POSITION. Good businesses often hold high market share po-
sitions in their industries. Current portfolio examples are Cone Mills,
which is the world's largest denim producer; Nabors Industries, the
world's largest land driller, Telxon Corp., the leading US bar-code and
wireless data capture systems integrator; O'Sullivan Industries, the
largest US producer of ready-to-assemble furniture.
. HIGH INSIDER OWNERSHIP. I am comfortable with high levels of insider
ownership, as long as I see no insiders selling. My theory is that in-
siders with money at risk are most eager to tend to the business, and to
truly manage the enterprise for the long-term. On average, insiders
owned 26.2% of the stocks in the Fund's portfolio, and twelve of our
stocks had insider ownership levels of 40% or more.
. REPEAT SALES AND CUSTOMER BASE. Good businesses generally have a close
day-to-day working relationship with their customers. Over many years,
such businesses end up servicing a large installed base of satisfied
"pre-sold" customers by continually providing value-added services. Such
businesses eventually benefit from a fairly steady flow of repeat sales,
as well as growing maintenance, repair and overhaul (MRO) activities.
Thirteen of our 52 stocks have a relatively high mix of repeat sales,
and four of these are among our ten largest positions: American Travel-
lers Corp., Telxon Corp., Unifirst Corp., and Western National Corp.
In closing, I welcome questions or comments which you may have, and I thank
you for choosing the Tocqueville Small Cap Value Fund to realize your long-term
investment objectives.
Jean-Pierre Conreur
Portfolio Manager
- --------------------------------------------------------------------------------
This report is not authorized for distribution to prospective investors un-
less preceded or accompanied by a currently effective prospectus of The
Tocqueville Trust.
4
<PAGE>
- --------------------------------------------------------------------------------
[MAC CHART]
- --------------------------------------------------------------------------------
5
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
SELECTED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
---------------------------------
PERIOD FROM
AUGUST 1, 1994
YEAR ENDED TO
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT THE
PERIOD)
<S> <C> <C>
Net asset value, beginning of period........ $10.22 $10.00
------ ------
Income from investment operations:
Net investment income (loss)................ (0.05)(a) 0.02(b)
Net realized and unrealized gain ........... 1.96 0.20
------ ------
Total from investment operations............ 1.91 0.22
------ ------
Less distributions
Dividends from net investment income........ (0.03) --
Distributions from net realized gains....... (0.19) --
------ ------
Total distributions......................... (0.22) --
------ ------
Change in net asset value for the period.... 1.69 0.22
------ ------
Net asset value, end of period.............. $11.91 $10.22
====== ======
Total Return(c)............................. 19.22% 2.20%
Ratios/supplemental data
Net assets, end of period (000)............. 9,383 6,755
Ratio to average net assets of:
Expenses................................... 2.50%(a) 2.08%*(b)
Net investment income...................... (0.53%)(a) 0.85%*(b)
Portfolio turnover rate..................... 87.91% 9.40%
<CAPTION>
CLASS B
----------------
PERIOD FROM
AUGUST 14, 1995
TO
OCTOBER 31, 1995
----------------
<S> <C>
Net asset value, beginning of period........ $12.35
------
Income from investment operations:
Net investment income....................... --
Net realized and unrealized gain (loss) .... (0.48)
------
Total from investment operations............ (0.48)
------
Net asset value, end of period.............. $11.87
======
Total Return(d)............................. (3.89%)
Ratios/supplemental data
Net assets, end of period................... 192
Ratio to average net assets of:
Expenses................................... --
Net investment income...................... --
</TABLE>
- --------
(a) Net of fees waived amounting to 0.33% of average net assets for the period
ended October 31, 1995.
(b) Net of fees waived amounting to 0.75% of average net assets for the period
ended October 31, 1994.
(c) Does not include maximum sales load of 4%.
(d) Does not include contingent deferred sales charge. Not annualized.
* Annualized.
6
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
INVESTMENTS AS OF OCTOBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of
Market Net
COMMON STOCKS--87.73% Shares Value Assets
- --------------------------------------------------------
<S> <C> <C> <C>
COMMUNICATIONS & RELATED--13.55%
Acclaim Entertainment, Inc.* 5,000 $118,125 1.26%
Boston Technology, Inc* 10,000 137,500 1.46%
DMX, Inc.* 51,800 139,213 1.48%
Proxim, Inc.* 20,000 255,000 2.72%
Scientific Atlanta, Inc. 10,000 123,750 1.32%
Telxon Corp. 13,000 300,625 3.21%
Wave Technologies Intl., Inc.* 20,000 128,750 1.37%
Westcott Communications, Inc.* 5,000 68,750 0.73%
- --------------------------------------------------------
1,271,713 13.55%
- --------------------------------------------------------
CONSUMER--APPAREL--8.03%
Blair Corp. 3,000 88,500 0.94%
Cone Mills Corp.* 25,000 271,875 2.90%
Crown Crafts, Inc. 8,000 102,000 1.09%
Dress Barn, The* 10,000 97,500 1.04%
Oxford Inds., Inc. 5,000 81,250 0.86%
Stride Rite Corp. 10,000 112,500 1.20%
- --------------------------------------------------------
753,625 8.03%
- --------------------------------------------------------
CONSUMER--FOODS, OTHER--3.38%
J&J Snack Foods Corp.* 10,000 111,250 1.18%
Tasty Baking Corp. 15,000 206,250 2.20%
- --------------------------------------------------------
317,500 3.38%
- --------------------------------------------------------
DRILLING EQUIPMENT & SERVICES--7.56%
Global Industries, Inc.* 5,000 131,250 1.40%
Nabors Industries, Inc.* 24,000 207,000 2.21%
Oceaneering Intl., Inc.* 10,000 95,000 1.01%
Pool Energy Services Corp.* 20,000 185,000 1.97%
Varco Intl., Inc.* 10,000 91,250 0.97%
- --------------------------------------------------------
709,500 7.56%
- --------------------------------------------------------
FINANCIAL SERVICES--10.21%
American Heritage Life 5,000 96,250 1.02%
American Travellers Corp.* 15,000 335,625 3.58%
Washington National Corp.* 8,000 182,000 1.94%
Western National Corp. 25,000 343,750 3.67%
- --------------------------------------------------------
957,625 10.21%
- --------------------------------------------------------
HEALTH CARE--16.24%
Ballard Medical Products 20,000 345,000 3.68%
Bindley Western, Inc. 20,000 312,500 3.33%
Jones Med. Indus., Inc. 10,000 195,000 2.08%
Novametrix Med. Sys., Inc. 30,000 157,500 1.68%
Owens & Minor, Inc. New 10,000 118,750 1.26%
Perrigo Co.* 11,600 142,100 1.52%
Starr Surgical Co.* 10,000 106,250 1.13%
Sullivan Dental Products 15,000 146,250 1.56%
- --------------------------------------------------------
1,523,350 16.24%
- --------------------------------------------------------
INDUSTRIAL SERVICES--11.63%
Analysts Intl. Corp. 11,000 325,875 3.48%
IVI Publishing, Inc.* 5,000 50,000 0.53%
Pittston Services Group 4,000 110,000 1.17%
Technalysis Corp. 10,000 121,250 1.29%
Timberline Software Corp. 7,500 63,750 0.68%
Unifirst Corp. 30,000 420,000 4.48%
- --------------------------------------------------------
1,090,875 11.63%
- --------------------------------------------------------
</TABLE>
* Non-income producing security
See Notes to Financial Statements.
<TABLE>
<CAPTION>
% of
Market Net
COMMON STOCKS (CONTINUED) Shares Value Assets
- -----------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRY--5.69%
DT Industries, Inc. 10,000 132,500 1.41%
Fedders USA, Inc. 15,000 88,125 0.94%
Norand Corp.* 10,000 170,000 1.81%
Universal FST Products, Inc. 8,000 76,000 0.81%
Wausau Paper Mills Co. 2,750 67,375 0.72%
- -----------------------------------------------------------------
534,000 5.69%
- -----------------------------------------------------------------
PUMPS & VALVES--2.30%
Gorman Rupp Co. 15,000 215,625 2.30%
- -----------------------------------------------------------------
215,625 2.30%
- -----------------------------------------------------------------
BTA FURNITURE--4.49%
Wash Ind., Inc.* 10,000 186,250 1.98%
O'Sullivan Industries* 31,400 235,000 2.51%
- -----------------------------------------------------------------
421,750 4.49%
- -----------------------------------------------------------------
SPECIALTY CHEMICALS--4.65%
Lawter International Co. 10,000 106,250 1.13%
SYbron Chem, Inc. 10,000 128,750 1.37%
Foilmark, Inc. 5,000 33,125 0.36%
Sealright Co., Inc. 10,000 112,500 1.20%
Seda Specialty Packg. Corp. 5,000 55,625 0.59%
- -----------------------------------------------------------------
436,250 4.65%
- -----------------------------------------------------------------
Total Common Stocks
(Cost $7,501,544) 8,231,813 87.73%
- -----------------------------------------------------------------
U.S. GOVERNMENT
BONDS--6.49%
- -----------------------------------------------------------------
U.S. Treasury Notes, 5.500%, 7/31/97 200,000 204,000 2.17%
U.S. Treasury Notes, 6.375%, 7/15/99 200,000 199,687 2.13%
U.S. Treasury Notes, 6.375%, 8/15/02 200,000 205,062 2.19%
- -----------------------------------------------------------------
Total U.S. Government Bonds
(Cost $581,218) 608,749 6.49%
- -----------------------------------------------------------------
SHORT-TERM Par
INVESTMENTS--6.50% Amount
- -----------------------------------------------------------------
U.S. Treasury Bills, 5.370%, 1/25/96 $200,000 197,493 2.11%
Repurchase Agreement, State
Street Bank & Trust Co., 2.5%
dated 10/31/95, due 11/01/95,
(Collateralized by U.S. Treasury
Notes valued at $424,401. Re-
purchase proceeds of $412,028) 412,000 412,000 4.39%
- -----------------------------------------------------------------
Total Short-Term
Investments (Cost $609,466) 609,493 6.50%
- -----------------------------------------------------------------
TOTAL INVESTMENTS
(COST $8,692,228)--100.72% 9,450,055
OTHER ASSETS & LIABILITIES,
NET--(0.72%)% (67,554)
- -----------------------------------------------------------------
TOTAL NET ASSETS--100.0% $9,382,501
----------
</TABLE>
7
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (identified cost $8,692,228) $9,450,055
Cash 6,875
Dividends and interest receivable 10,938
Deferred organization expense 23,789
Other assets 12,821
----------
$9,504,478
----------
LIABILITIES
Payable for investments purchased 76,240
Accrued investment adviser's fee 1,882
Accrued distribution fee --
Accrued expenses 43,855
----------
121,977
----------
$9,382,501
----------
NET ASSETS
At October 31, 1995 net assets consisted of:
Capital paid in $8,024,803
Accumulated net investment loss (32,254)
Undistributed net realized gain 632,125
Net unrealized appreciation 757,827
----------
$9,382,501
----------
CLASS A
NET ASSET VALUE PER SHARE ($ 9,382,309 / 787,513 shares
outstanding) $11.91
------
Maximum offering price ($11.91 / 96%) $12.41
------
CLASS B
NET ASSET VALUE PER SHARE AND MAXIMUM OFFERING PRICE ($192 / 16
shares outstanding) $11.87
------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
STATEMENT OF OPERATIONS
Year Ended October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Dividends $ 64,457
Interest 89,149
----------
153,606
----------
EXPENSES
Investment adviser's fee (Note 2) 58,456
Custodian and fund accounting 50,470
Transfer agent and shareholder services 21,745
Audit 8,027
Legal 31,471
Distribution (Note 4)
Class A 19,530
Class B --
Administration fee (Note 4) 1,828
Printing 3,650
Registration 12,200
Trustees fee 1,843
Amortization of organization expenses 7,658
Fidelity bond 280
Other expenses 3,650
----------
Total expenses 220,808
Less fees waived (Notes 2 and 4) (25,504)
----------
Net expense 195,304
----------
NET INVESTMENT LOSS (41,698)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 646,730
Net unrealized appreciation of investments during the year 756,936
----------
Net gain on investments 1,403,666
----------
Net increase in net assets resulting from operations $1,361,968
----------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD FROM
YEAR ENDED AUGUST 1, 1994 TO
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss) $ (41,698) $ 12,926
Net realized gain 646,730 127,842
Net unrealized appreciation 756,936 891
---------- ----------
Net increase resulting from operations 1,361,968 141,659
---------- ----------
Distributions to shareholders from:
Net investment income
Class A (3,482) --
Class B -- --
Net realized gain on investments
Class A (142,447) --
Class B -- --
Fund share transactions (Note 3)
Class A 1,411,298 6,613,305
Class B 200 --
---------- ----------
Net increase in net assets 2,627,537 6,754,964
NET ASSETS
Beginning of period 6,754,964 --
---------- ----------
End of period $9,382,501 $6,754,964
---------- ----------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1
The Tocqueville Trust (the "Trust") was organized as a Massachusetts business
trust registered under the Investment Company Act of 1940 as amended, as a di-
versified, open-end management investment company. The Trust consists of five
separate Funds: The Tocqueville Fund, The Tocqueville Asia-Pacific Fund, The
Tocqueville Small Cap Value Fund, The Tocqueville Europe Fund and the
Tocqueville Government Fund (the "Funds"). The following is a summary of sig-
nificant accounting principles followed by the Trust in the preparation of its
financial statements.
- --------------------------------------------------------------------------------
SECURITY VALUATION
Investments in securities, including foreign securities, traded on an ex-
change or quoted on the over-the-counter market are valued at the last sale
price or, if no sale occurred during the day, at the mean between closing bid
and asked prices, as last reported by a pricing service approved by the Trust-
ees. When market quotations are not readily available, or when restricted secu-
rities or other assets are being valued, such assets are valued at fair value
as determined in good faith by or under procedures established by the Trustees.
Short-term investments are stated at cost which, together with accrued inter-
est, approximates market value.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX
It is the Trust's policy to comply with the provisions of the Internal Reve-
nue Code ("Code") applicable to regulated investment companies and to distrib-
ute all of its taxable income to its shareholders. It is also the Trust's in-
tention to distribute amounts sufficient to avoid imposition of any excise tax
under Section 4982 of the Code. Therefore, no federal income or excise tax pro-
vision is required.
- --------------------------------------------------------------------------------
DEFERRED ORGANIZATION EXPENSES
Expenses incurred in connection with the organization of The Tocqueville
Small Cap Value Fund (the "Fund") are being amortized on a straight-line basis
over a five-year period from the Fund's commencement of operations. In the
event any initial shares of The Tocqueville Small Cap Value Fund are redeemed
during the amortization period, the proceeds of redemption will be reduced by
the pro-rata portion of any unamortized organization expenses in the same pro-
portion as the number of shares redeemed bears to the number of initial shares
held at the time of redemption.
- --------------------------------------------------------------------------------
OTHER
Security transactions are accounted for on the trade date, the date the order
to buy or sell is executed. Dividend income is recognized on the ex-dividend
date or at the time the Fund becomes
11
<PAGE>
- --------------------------------------------------------------------------------
aware, whichever is earlier. Interest income is recognized on the accrual basis
and market discount is accounted for on the effective interest method. The
Trust uses the first-in, first-out method for determining realized gain or loss
on investments sold for both financial reporting and federal tax purposes. Dis-
tributions to shareholders are recorded on the ex-dividend date. Expenses in-
curred by the Trust not specifically identified to a Fund are allocated on a
basis relative to the size of each Fund's daily net asset value.
- --------------------------------------------------------------------------------
NOTE 2
Tocqueville Asset Management L.P. ("Tocqueville"), is the investment adviser
to the Trust under an Investment Advisory Agreement approved by shareholders on
February 26, 1990. For its services, Tocqueville receives a fee from The
Tocqueville Small Cap Value Fund, payable monthly, at an annual rate of .75% of
the first $100 million of the Fund's average daily net assets, .70% of the next
$400 million of average daily net assets, and .65% of average daily net assets
in excess of $500 million.
Certain states in which shares of the Trust are qualified for sale impose
limitations on the expenses of the Trust. The Advisory Agreement provides that
if, in any fiscal year, the total expenses of the Trust (excluding taxes, in-
terest, extraordinary expenses and the distribution fee but including the Ad-
viser's fee) exceed the expense limitation applicable to the Trust imposed by
the securities regulations of any state in which it is registered to sell
shares, Tocqueville will pay or
reimburse the Trust for that excess up to the amount of its fee. The most re-
strictive limitation currently applicable (excluding the items described above)
limits a fund to 2.5% of the Trust's first $30,000,000 of average daily net as-
sets, 2% of the next $70,000,000, and 1.5% of the Trust's average daily net as-
sets over $100,000,000. For the year ended October 31, 1995, the Adviser has
waived advisory fees of $4,146 due to the expense limitation referred above.
- --------------------------------------------------------------------------------
12
<PAGE>
- -------------------------------------------------------------------------------
NOTE 3
Effective August 14, 1995 the Fund offered two classes of shares: Class A
and Class B shares. Shares of each class are identical except for the initial
sales load on Class A shares, a contingent deferred sales charge on Class B
shares, distribution fees, and voting rights on matters effecting a single
class. All Fund shares outstanding before August 14, 1995 were designated as
Class A shares. At October 31, 1995, there were an unlimited number of shares
of beneficial interest authorized ($0.01 par value). Transactions in the
Fund's shares were as follows:
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------
FOR THE PERIOD FROM
AUGUST 1, 1994
YEAR ENDED TO
OCTOBER 31, 1995 OCTOBER 31, 1994
--------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------------------
<S> <C> <C> <C> <C>
Shares sold 146,814 $ 1,651,218 661,232 $ 6,613,305
Shares issued on reinvestment of
dividends 13,078 125,021
Shares redeemed (33,611) (364,941)
-------- ----------- -------- -----------
Net increase 126,281 $ 1,411,298 661,232 $ 6,613,305
-------- ----------- -------- -----------
<CAPTION>
CLASS B
---------------------
FOR THE PERIOD FROM
AUGUST 14, 1995
THROUGH
OCTOBER 31, 1995
---------------------
SHARES AMOUNT
--------- -----------
<S> <C> <C>
Shares sold 16 $ 200
Shares issued on reinvestment of
dividends -- --
Shares redeemed -- --
-------- -----------
Net increase 16 $ 200
-------- -----------
</TABLE>
- -------------------------------------------------------------------------------
NOTE 4
Tocqueville Securities L.P. (the "Distributor") acts as distributor for
shares of the Fund and purchases shares of the Fund at net asset value to fill
orders as received from investment dealers. For the year ended October 31,
1995, the Distributor received net commissions of $373 from the sale of the
Fund's shares.
The Fund has adopted distribution plans related to the sale of Class A and
Class B shares pursuant to which the Fund may incur distribution expenses in
amounts not to exceed 0.25% and 0.75% per annum of the average daily net as-
sets of Class A and Class B shares, respectively.
13
<PAGE>
- --------------------------------------------------------------------------------
Such expenses may include, but are not limited to, advertising, printing, and
distribution of sales literature, prospectuses and other materials, and pay-
ments to dealers and shareholders servicing agents including the Distributor.
Under the distribution plans, the Distributor is permitted to carry forward ex-
penses not reimbursed by the distribution fees to subsequent fiscal years for
sub- mission to the Fund for payment, subject to the continuation of the Plan.
For the year ended October 31, 1995, the Distributor has waived distribution
fees of $19,530 and $0, respectively for Class A and Class B shares. The Dis-
tributor has informed the Trust that, as of October 31, 1995, there were
$62,300 in unreimbursed expenses for the Fund.
Class B shares which are redeemed within six years of purchase are subject to
a contingent deferred sales charge at rates ranging from 5% to 0%, charged as a
percentage of the dollar amount subject thereto. There were no contingent de-
ferred sales charges paid to the Distributor for the year ended October 31,
1995.
Commissions earned by the Distributor for services rendered as registered
broker-dealer in securities transactions for the Fund for the year ended Octo-
ber 31, 1995 were $23,016.
Pursuant to an Administrative Services Agreement, effective September 15,
1995, the Fund pays to the Distributor a fee computed and paid monthly at an
annual rate of 0.15% of the average daily net assets of the Fund. During the
year ended October 31, 1995, the Distributor waived administration fees of
$1,828.
- --------------------------------------------------------------------------------
NOTE 5
Purchases and sales of investment securities (excluding short-term
instruments) for the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
SMALL CAP
VALUE FUND
-----------
<S> <C>
PURCHASES
U.S. Government $ --
Other 8,412,910
----------
$8,412,910
----------
SALES
U.S. Government $ --
Other 6,049,272
----------
$6,049,272
----------
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 6
Unrealized appreciation at October 31, 1995 based on cost of securities for
Federal tax purposes is as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
SMALL CAP
VALUE FUND
-----------
<S> <C>
Gross unrealized appreciation $1,071,818
Gross unrealized depreciation (313,991)
----------
Net unrealized appreciation $ 757,827
----------
Cost of investments $8,692,228
----------
</TABLE>
- --------------------------------------------------------------------------------
15
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees and Shareholders
The Tocqueville Small Cap Value Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of The Tocqueville Small Cap Value Fund, a series of
The Tocqueville Trust, as of October 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets, and
the selected financial information for the year then ended and for the period
August 1, 1994 to October 31, 1994. These financial statements and selected
financial information are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
selected financial information based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and selected
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 1995, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of The Tocqueville Small Cap Value Fund, a series of The Tocqueville
Trust as of October 31, 1995, the results of its operations, the changes in its
net assets, and the selected financial information for the periods indicated,
in conformity with generally accepted accounting principles.
New York, New York
December 1, 1995
16
<PAGE>
THE TOCQUEVILLE FUND
THE TOCQUEVILLE ASIA-PACIFIC FUND
THE TOCQUEVILLE EUROPE FUND
THE TOCQUEVILLE SMALL CAP VALUE FUND
Special Meeting of Shareholders, July 31, 1995
- -------------------------------------------------------------------------------
A Special Meeting of Shareholders of the Trust was held on July 31, 1995 at
the offices of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel, 919 Third Av-
enue, New York, New York. The purpose of the meeting was to elect six trustees
of the Trust, to ratify McGladrey and Pullen, LLP as independent public ac-
countants for the Trust, to approve an amendment to the Declaration and Agree-
ment of Trust to permit the Trustees to authorize and issue, without share-
holder approval, separate and distinct classes of shares of each series of the
Trust and to approve the elimination of some fundamental investment restric-
tions of the Trust requiring shareholder approval. At the meeting, the share-
holders voted in favor of all of the resolutions presented to them. No other
business was conducted at the Special Meeting of Shareholders.
The results of the voting at the Special Meeting of Shareholders was as fol-
lows:
1. Ratification of an amendment to the Agreement and Declaration of Trust
to permit the Trustees, without shareholder approval, to authorize The
Tocqueville Trust to issue separate and distinct classes of shares of
each series:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 4,474.39 Abstain: 5,053.03
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,433.12 Against: -0- Abstain: 38.46
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
2. Approval of the elimination of the Funds' fundamental investment re-
striction concerning short sales:
THE TOCQUEVILLE FUND
For: 1,469,900.22 Against: 4,474.39 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
17
<PAGE>
- --------------------------------------------------------------------------------
3. Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment for control were as follows:
THE TOCQUEVILLE FUND
For: 1,471,351.92 Against: 3,022.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
4. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of affiliates:
THE TOCQUEVILLE FUND
For: 1,464,396.14 Against: 9,978.47 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
5. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of other investment companies:
THE TOCQUEVILLE FUND
For: 1,469,057.52 Against: 5,317.09 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
18
<PAGE>
- --------------------------------------------------------------------------------
6. Approval of the elimination of the Funds' fundamental investment re-
striction concerning development programs:
THE TOCQUEVILLE FUND
For: 1,468,635.92 Against: 5,738.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
7.Approval of the elimination of the Funds' fundamental investment re-
striction concerning transactions involving puts, calls or options:
THE TOCQUEVILLE FUND
For: 1,464,689.65 Against: 9,684.96 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
8.Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment in securities of issuers in operation
for less than three years:
THE TOCQUEVILLE FUND
For: 1,460,800.07 Against: 13,574.54 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
19
<PAGE>
- --------------------------------------------------------------------------------
9. Approval of the amendment of the Funds' fundamental investment re-
stricting concerning the lending of money or securities:
THE TOCQUEVILLE FUND
For: 1,459,829.27 Against: 14,545.34 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
10. Approval of the amendment of the Funds' fundamental investment restric-
tion concerning commodities:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 8,714.16 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
11. Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
restricted and illiquid securities:
THE TOCQUEVILLE FUND
For: 1,464,490.27 Against: 9,884.34 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
12.Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
the amount of allowable investment in foreign securities:
THE TOCQUEVILLE FUND
For: 1,470,321.45 Against: 4,053.16 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
20
<PAGE>
- --------------------------------------------------------------------------------
13.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning re-
stricted and illiquid securities:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
14.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning securi-
ties of other investment companies were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
15.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning war-
rants were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
16. Election of six (6) Trustees, for a term to expire until his or her
successor is elected and has qualified:
<TABLE>
<CAPTION>
WITHHOLDING
FOR AUTHORITY
--- -----------
<S> <C> <C>
Francois Sicart 2,471,499.52 -0-
Bernard Combemale 2,471,499.52 -0-
James Flaherty 2,466,639.14 4,860.38
Inge Heckel 2,466,639.14 4,860.38
Robert Kleinschmidt 2,471,499.52 -0-
Francois Letaconnoux 2,471,499.52 -0-
</TABLE>
17. Ratification of the selection of McGladrey & Pullen, LLP, as indepen-
dent public accountants for the Trust for the fiscal year ended October
31, 1995.
For: 2,471,102.02 Against: -0- Abstain: 397.50
21
<PAGE>
INVESTMENT ADVISOR
Tocqueville Asset Management L.P.
1675 Broadway
New York, New York 10019
Telephone: (212) 698-0800
Telecopier: (212) 262-0154
DISTRIBUTOR
Tocqueville Securities L.P.
1675 Broadway
New York, New York 10019
Telephone: (800) 697-3863
Telecopier: (212) 262-0154
SHAREHOLDERS' SERVICING,
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 8507
Boston, Massachusetts 02266-8507
Telephone: (800) 626-9402
BOARD OF TRUSTEES
Francois Sicart -- Chairman
Bernard F. Combemale
James B. Flaherty
Inge Heckel
Robert W. Kleinschmidt
Francois Letaconnoux
LOGO
The Tocqueville
Small Cap Value Fund
a series of
The Tocqueville Trust
Annual Report
October 31, 1995
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDERS:
In this, our first annual report to shareholders, we would like to take this
opportunity to reiterate our investment philosophy for the Tocqueville Govern-
ment Fund. As a firm, Tocqueville Asset Management, the advisor to all of the
equity funds of the Tocqueville Trust, as well as the Tocqueville Government
Fund, places a premium on capital preservation. Over the long term, we believe
that capital preservation and enhancement can best be achieved by investing
primarily in equities. For a wide variety of reasons, however, we recognize the
need of our clients to have a fixed income option. The Tocqueville Government
Fund was created to fill that need.
The Tocqueville Government Fund is not a typical fixed income fund. Despite
the explosive proliferation of sophisticated fixed income investment vehicles,
including convertibles, straddles, derivatives, leveraged long and short sales,
LYONS, TIGRS, CATS, etc., the Tocqueville Government Fund has a simple, basic
portfolio strategy: Invest only in securities of the U.S. Government or its
agencies, and only in short to intermediate term maturities, without employing
leverage, derivatives, or options. We recognize that these new highly complex
and risky investment vehicles have their place and serve a purpose in the in-
vestment universe. They do not, however, have a place or serve a purpose in the
Tocqueville Government Fund. Our Fund's purpose is to preserve capital while
generating an acceptable current return and to seek modest capital appreciation
by extending maturities from the short to intermediate term when conditions
warrant.
Historical empirical data support our view that from the perspective of prin-
cipal risk, investors are inadequately compensated over long periods of time
for owning long term bonds. For example, at this writing a five year Treasury
note yields approximately 90% of the yield of a thirty year bond. Yet, the cap-
ital risk exposure of a five year note is only one-third of the long maturity.
Our objective is income and capital preservation, and with this as our objec-
tive we see no need to assume the added risk of long term bonds.
Ours is a plain vanilla approach in a Baskin Robbins world of fixed income
funds. But we believe our clients are best served by the conservative, risk
averse approach that we have taken. While we never expect the Tocqueville Gov-
ernment Fund to make the list of top performing fixed income funds in any given
year, we are quite sure we will not appear on the worst performing list. And
over the long haul we expect the Fund to attain its goals, while many of the
high return/high risk funds favored by others will not.
Since beginning operations on September 5, 1995, the Tocqueville Government
Fund Class A shares generated an annualized return during its first 56 days of
6.26%. Initially we were fully invested at a fairly neutral duration of approx-
imately five years during a powerful continuation of the rally in bonds that
persisted throughout 1995. (Our neutral duration is five to seven years, our
cautious duration is one to three years, and our bullish duration is nine to
twelve years.) More recently, we have adopted an even more conservative posture
as current yield levels contain much less attraction. The negative returns
posted by all bonds in 1994 keep us mindful that principal
<PAGE>
- --------------------------------------------------------------------------------
exposure must be evaluated in the context of total return. Despite a substan-
tive percentage of economists who are confident of a continuation of the rally
to perhaps a 5% long term Treasury bond, we are just as comfortable with the
case for bonds at 7% or higher.
OUTLOOK
Inflation remains low at around 3% and the outlook is benign. Still inflation
has been approximately at these levels for the past five years and the margin
for further substantial gains are slim in our view. Meanwhile, with a very flat
yield curve, the incentive to extend maturities is minimal. For both of these
reasons, even the intermediate term fixed income markets harbor more risk than
is acceptable. Consequently, for the foreseeable future, we intend to remain in
short term securities.
For 1996 we expect a subdued, yet mildly growing, economy with inflation
within the bounds of acceptable tolerance. Our major trading partners, Europe
and Japan, should continue their economic travails, providing little stimulus
for export growth. Because of our relative ability to respond and adapt, the
U.S. is emerging as the premier low cost producer in the industrial world with
respect to labor costs, taxes, and reduced socialization. The key question re-
garding the Federal Reserve is not whether they will lower rates, but rather
when and by how much. Equally as important is the question of what rate struc-
ture is priced into the market; for the discontinuing function of the market is
the perception of the future. A two year Treasury yield of 5.35% implies a Fed
Funds average of 4 5/8% over the next two years, assuming a 75 basis point pre-
mium to Fed Funds which is the historical norm. In fact, the Fed Funds rate has
just been lowered to 5 1/4%.
With so much further rate reduction already built into the market, the margin
for disappointment exceeds the potential reward. There remain substantial prob-
lems, such as chronic deficits, a persistent current account deficit in trade
balance, global surplus of dollars, potential negative political developments,
such as probable casualties in Bosnia, and more. While we expect a continuation
of moderately positive news, we do not expect an attendant appreciation of
prices. It is reasonable to expect our duration to be cautious to neutral at
this interest rate structure. If more value should present itself in the form
of higher interest rates, our posture would be re-evaluated.
Robert W. Kleinschmidt
Christopher P. Culp
Portfolio Managers
- --------------------------------------------------------------------------------
This report is not authorized for distribution to prospective investors un-
less preceded or accompanied by a currently effective prospectus of The
Tocqueville Trust.
2
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
SELECTED FINANCIAL INFORMATION
Period from August 14, 1995 to October 31, 1995
<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT THE CLASS A
PERIOD) -------
<S> <C>
Net asset value, beginning of period...... $10.00
------
Income from investment operations:
Net investment income..................... 0.05(a)
Net realized and unrealized gain ......... 0.05
------
Total from investment operations.......... 0.10
------
Less distributions
Dividends from net investment income...... (0.05)
Distributions from net realized gains..... --
------
Total distributions....................... (0.05)
------
Change in net asset value for the period.. 0.05
------
Net asset value, end of period............ $10.05
------
Total Return(b)........................... 6.26%*
Ratios/supplemental data
Net assets, end of period (000)........... $6,506
Ratio to average net assets of:
Expenses................................. 2.74%*(a)
Net investment income.................... 3.08%*(a)
Portfolio turnover rate................... 0.00%
<CAPTION>
CLASS B
-------
<S> <C>
Net asset value, beginning of period...... $ 9.97
------
Income from investment operations:
Net investment income..................... 0.04
Net realized and unrealized gain ......... 0.08
------
Total from investment operations.......... 0.12
Less distributions
Dividends from net investment income...... (0.04)
Distribution from net realized gains...... --
------
Total distributions....................... (0.04)
------
Net asset value, end of period............ $10.05
------
Total Return(c)........................... 8.42%*
Ratios/supplemental data
Net assets, end of period................. 201
Ratio to average net assets of:
Expenses................................. --
Net investment income.................... --
</TABLE>
- --------
(a)Net of fees waived amounting to 0.77% of average net assets for the period
ended October 31, 1995.
(b)Does not include maximum sales load of 4%.
(c)Does not include contingent deferred sales charge.
* Annualized.
3
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
INVESTMENTS AS OF OCTOBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
MARKET NET
PAR VALUE VALUE ASSETS
---------- ---------- ------
<S> <C> <C> <C>
MORTGAGE RELATED - 34.70%
Federal Home Loan Mortgage Corp.
6.98%, 9/07/2000 $ 750,000 $ 751,172 11.55%
6.98%, 9/13/2000 750,000 757,561 11.64%
6.38%, 10/24/2000 750,000 749,086 11.51%
----------
2,257,819
----------
U.S. TREASURY NOTES - 61.33%
5.50%, 4/15/2000 1,000,000 990,625 15.23%
5.875%, 6/30/2000 1,000,000 1,002,811 15.42%
5.75%, 10/31/2000 2,000,000 1,996,250 30.68%
----------
3,989,686
----------
SHORT-TERM INVESTMENTS - 1.13%
U.S. T-Bill, 5.285%, 3/21/96 75,000 73,440 1.13%
----------
TOTAL INVESTMENTS (COST $6,293,165) - 97.16% 6,320,945
OTHER ASSETS & LIABILITIES, NET - 2.84% 184,767
----------
TOTAL NET ASSETS - 100.00% $6,505,712
----------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (identified cost $6,293,165) $6,320,945
Cash 3,646
Receivable for Fund shares sold 160,449
Interest receivable 38,600
Deferred organization expense 22,110
Other assets 4,861
----------
6,550,611
----------
LIABILITIES
Accrued investment adviser's fee --
Accrued distribution fee --
Accrued expenses 17,334
Payable for deferred organization expenses 27,565
----------
44,899
----------
NET ASSETS $6,505,712
----------
At October 31, 1995 net assets consisted of:
Capital paid in $6,478,762
Accumulated net realized loss (830)
Net unrealized appreciation 27,780
----------
$6,505,712
----------
CLASS A
NET ASSET VALUE PER SHARE ($6,505,510/647,150 shares outstanding) $ 10.05
----------
Maximum offering price ($10.05/96%) $10.47
----------
CLASS B
NET ASSET VALUE PER SHARE AND MAXIMUM OFFERING PRICE ($202/20
shares outstanding) $10.05
------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
STATEMENT OF OPERATIONS
Period from August 14, 1995 to October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Interest $40,073
-------
EXPENSES
Investment adviser's fee (Note 2) 3,453
Custodian and fund accounting 8,400
Transfer agent and shareholder services 4,760
Audit 2,240
Legal 1,400
Distribution (Note 4)
Class A 1,727
Class B --
Administration fee (Note 4) 928
Registration 672
Trustees' fee 280
Other 1,176
-------
Total expenses 25,036
Less: fees waived (Notes 2 and 4) (6,108)
-------
NET EXPENSES 18,928
-------
NET INVESTMENT INCOME 21,145
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized (loss) on investments (830)
Net unrealized appreciation of investments during the period 27,780
-------
Net gain on investments 26,950
-------
Net increase in net assets resulting from operations $48,095
-------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
Period from August 14, 1995 to October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income $ 21,145
Net realized loss (830)
Net unrealized appreciation 27,780
----------
Net increase resulting from operations 48,095
Distributions to shareholders from net investment income:
Class A (21,144)
Class B (1)
Fund share transactions (Note 3)
Class A 6,478,561
Class B 201
----------
Net increase in net assets 6,505,712
NET ASSETS
Beginning of period --
----------
End of period $6,505,712
----------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1
The Tocqueville Trust (the "Trust") was organized as a Massachusetts business
trust registered under the Investment Company Act of 1940 as amended, as a di-
versified, open-end management investment company. The Trust consists of five
separate Funds: The Tocqueville Fund, The Tocqueville Asia-Pacific Fund, The
Tocqueville Small Cap Value Fund, The Tocqueville Europe Fund and the
Tocqueville Government Fund (the "Funds"). The following is a summary of sig-
nificant accounting principles followed by the Trust in the preparation of its
financial statements.
- --------------------------------------------------------------------------------
SECURITY VALUATION
Investments in securities, including foreign securities, traded on an ex-
change or quoted on the over-the-counter market are valued at the last sale
price or, if no sale occurred during the day, at the mean between closing bid
and asked prices, as last reported by a pricing service approved by the Trust-
ees. When market quotations are not readily available, or when restricted secu-
rities or other assets are being valued, such assets are valued at fair value
as determined in good faith by or under procedures established by the Trustees.
Short-term investments are stated at cost which, together with accrued inter-
est, approximates market value.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX
It is the Trust's policy to comply with the provisions of the Internal Reve-
nue Code ("Code") applicable to regulated investment companies and to distrib-
ute all of its taxable income to its shareholders. It is also the Trust's in-
tention to distribute amounts sufficient to avoid imposition of any excise tax
under Section 4982 of the Code. Therefore, no federal income or excise tax pro-
vision is required.
- --------------------------------------------------------------------------------
DEFERRED ORGANIZATION EXPENSES
Expenses incurred in connection with the organization of The Tocqueville Gov-
ernment Fund (the "Fund") are being amortized on a straight-line basis over a
five-year period from the Fund's commencement of operations. In the event any
initial shares of The Tocqueville Government Fund are redeemed during the amor-
tization period, the proceeds of redemption will be reduced by the pro-rata
portion of any unamortized organization expenses in the same proportion as the
number of shares redeemed bears to the number of initial shares held at the
time of redemption.
- --------------------------------------------------------------------------------
OTHER
Security transactions are accounted for on the trade date, the date the order
to buy or sell is executed. Interest income is recognized on the accrual basis
and market discount is accounted for using the effective interest method. The
Trust uses the first-in, first-out method for determining realized gain or loss
on investments sold for both financial reporting and federal tax purposes. Dis-
tributions to shareholders are recorded on the ex-dividend date. Expenses in-
curred by the Trust not specifically identified to a Fund are allocated on a
basis relative to the size of each Fund's daily net asset value.
8
<PAGE>
- --------------------------------------------------------------------------------
NOTE 2
Tocqueville Asset Management L.P. ("Tocqueville"), is the investment adviser
to the Trust under an Investment Advisory Agreement approved by shareholders on
February 26, 1990. For its services, Tocqueville receives a fee from The
Tocqueville Government Fund, payable monthly, at an annual rate of .50% of the
first $500 million of the Fund's average daily net assets, .40% of the next
$500 million of average daily net assets, and .30% of average daily net assets
in excess of $1 billion.
Certain states in which shares of the Trust are qualified for sale impose
limitations on the expenses of the Trust. The Advisory Agreement provides that
if, in any fiscal year, the total expenses of the Trust (excluding taxes, in-
terest, extraordinary expenses and the distribution fee but including the Ad-
viser's fee) exceed the expense limitation applicable to the Trust imposed by
the securities regulations of any state in which it is registered to sell
shares, Tocqueville will pay or
reimburse the Trust for that excess up to the amount of its fee. The most re-
strictive limitation currently applicable (excluding the items described above)
limits a fund to 2.5% of the Trust's first $30,000,000 of average daily net as-
sets, 2% of the next $70,000,000, and 1.5% of the Trust's average daily net as-
sets over $100,000,000. For the period August 14, 1995 to October 31, 1995, the
Adviser has waived its advisory fee of $3,453 due to the expense limitation re-
ferred to above. In addition, the Adviser has agreed to waive its fee until the
Fund's average daily net assets exceed $10 million.
- --------------------------------------------------------------------------------
NOTE 3
The Fund offers two classes of shares: Class A and Class B shares. Shares of
each class are identical except for the initial sales load on Class A shares, a
contingent deferred sales charge on Class B shares, distribution fees and vot-
ing rights on matters effecting a single class. At October 31, 1995, there were
an unlimited number of shares of beneficial interest authorized ($0.01 par val-
ue). Transactions in the Fund's shares for the period from August 14, 1995 to
October 31, 1995 were as follows:
<TABLE>
<CAPTION>
CLASS A
------------------
SHARES AMOUNT
------- ----------
<S> <C> <C>
Shares sold 645,088 $6,457,874
Shares issued on reinvestment of dividends 2,062 20,687
Shares redeemed -- --
------- ----------
Net increase 647,150 $6,478,561
------- ----------
<CAPTION>
CLASS B
------------------
SHARES AMOUNT
------- ----------
<S> <C> <C>
Shares sold 20 $ 200
Shares issued on reinvestment of dividends -- 1
Shares redeemed -- --
------- ----------
Net increase 20 $ 201
------- ----------
</TABLE>
- --------------------------------------------------------------------------------
9
<PAGE>
- --------------------------------------------------------------------------------
NOTE 4
Tocqueville Securities L.P. (the "Distributor") acts as a distributor for
shares of the Fund and purchases shares of the Fund at net asset value to fill
orders as received from investment dealers. For the period ended October 31,
1995, the Distributor received no net commissions from the sale of the Fund's
shares.
The Fund has adopted distribution plans related to the sale of Class A and
Class B shares pursuant to which the Fund may incur distribution expenses in
amounts not to exceed 0.25% and 0.75% per annum of the average daily net assets
of Class A and Class B shares, respectively. Such expenses may include, but are
not limited to, advertising, printing, and distribution of sales literature,
prospectuses and other materials, and payments to dealers and shareholders ser-
vicing agents including the Distributor. Under the distribution plans, the Dis-
tributor is permitted to carry forward expenses not reimbursed by the distribu-
tion fees to subsequent fiscal years for submission to the Fund for payment,
subject to the continuation of the Plan. For the period ended October 31, 1995,
the Distributor has waived distribution fees of $1,727 and 0, respectively for
Class A and Class B shares. The Distributor has informed the Trust that, as of
October 31, 1995, there were $8,110 in unreimbursed expenses for the Fund.
Class B shares which are redeemed within six years of purchase are subject to
a contingent deferred sales charge at rates ranging from 5% to 0%, charged as a
percentage of the dollar amount subject thereto. There were no contingent de-
ferred sales charges paid to the Distributor for the period ended October 31,
1995.
Commissions earned by the Distributor for services rendered as a registered
broker-dealer in securities transactions for the Fund for the period ended Oc-
tober 31, 1995 were $7,912.
Pursuant to an Administrative Services Agreement, effective September 15,
1995, the Fund pays to the Distributor a fee computed and paid monthly at an
annual rate of 0.15% of the average daily net assets of the Fund. During the
period ended October 31, 1995, the Distributor waived administration fees of
$928.
10
<PAGE>
- --------------------------------------------------------------------------------
NOTE 5
Purchases and sales of investment securities (excluding short-term instru-
ments) for the period ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
GOVERNMENT
FUND
-----------
<S> <C>
PURCHASES $6,219,211
----------
SALES --
----------
</TABLE>
- --------------------------------------------------------------------------------
NOTE 6
Unrealized appreciation at October 31, 1995 based on cost of securities for
Federal tax purposes is as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
GOVERNMENT
FUND
-----------
<S> <C>
Gross unrealized appreciation $ 27,789
Gross unrealized depreciation (9)
----------
Net unrealized appreciation $ 27,780
----------
Cost of investments $6,293,165
----------
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
- --------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees and Shareholders
The Tocqueville Government Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of The Tocqueville Government Fund, a series of The
Tocqueville Trust, as of October 31, 1995, and the related statement of opera-
tions, changes in net assets, and the selected financial information for the
period August 14, 1995 to October 31, 1995. These financial statements and se-
lected financial information are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements and
selected financial information based on our audit.
We conducted our audit in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and selected finan-
cial information are free of material misstatement. An audit includes examin-
ing, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
as of October 31, 1995, by correspondence with the custodian. An audit also in-
cludes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presenta-
tion. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of The Tocqueville Government Fund, a series of The Tocqueville Trust
as of October 31, 1995, the results of its operations, the changes in its net
assets, and the selected financial information for the period then ended, in
conformity with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
December 1, 1995
12
<PAGE>
INVESTMENT ADVISOR
Tocqueville Asset Management L.P.
1675 Broadway
New York, New York 10019
Telephone: (212) 698-0800
Telecopier: (212) 262-0154
DISTRIBUTOR
Tocqueville Securities L.P.
1675 Broadway
New York, New York 10019
Telephone: (800) 697-3863
Telecopier: (212) 262-0154
SHAREHOLDERS' SERVICING,
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 8507
Boston, Massachusetts 02266-8507
Telephone Toll Free
(800) 626-9402
BOARD OF TRUSTEES
Francois Sicart -- Chairman
Bernard F. Combemale
James B. Flaherty
Inge Heckel
Robert W. Kleinschmidt
Francois Letaconnoux
[LOGO] The Tocqueville Government Fund
The Tocqueville
Government Fund
a series of
The Tocqueville Trust
Annual Report
October 31, 1995
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDERS:
For the fiscal year ending October 31st 1995, the Class A net asset value per
share of the Tocqueville Asia-Pacific Fund declined 11.63%, vs. a decline of
11.21% for the Morgan Stanley Pacific Index. We remain concerned about the po-
tential for economic and political upheaval in the region and, as a result, we
have had a significant part of the portfolio in cash reserves and in invest-
ments in Australia and New Zealand (including the shares of gold mining compa-
nies).
While the recession in Japan seems to have reached a bottom, the risk of af-
tershocks remains in both the financial sector and in the political arena, as
the forced transformation of the economy threatens the traditional pillars of
the Japanese society.
For the rest of the region, the great uncertainty lies in the change of lead-
ership in China at a time when the imbalance in the country's growth may become
a factor of internal tensions, and when foreign pressures on China to abide by
international trade laws is also a source of friction. An interruption of in-
vestment flows into the mainland, as a result of either internal unrest or ex-
ternal tensions, would likely cause a sudden reduction in Chinese economic ac-
tivity that would significantly affect the region's other economies.
Furthermore, most of the tigers are still quite vulnerable to a possible reces-
sion in the United States as well. In a region where financial markets are
characterized by very long-term hopes and very short-term trading, prudence to-
ward the high-growth economies of the region still seems to be warranted.
The growth potential of the region remains awesome, however, and we continue
to look for ways to invest in companies that appear capable of surviving
through these short-term vagaries. We feel that, since temporary crises--polit-
ical and financial--are inevitable in coming years, they will give us desirable
entry points to establish long-term positions in companies offering a unique
combination of high growth potential and reasonable valuations.
In the meantime, we will maintain a fairly cautious approach, with ample cash
reserves and a good part of our portfolio in the more stable, slower-growing
economies of the region.
Francois Sicart
Portfolio Manager
- --------------------------------------------------------------------------------
This report is not authorized for distribution to prospective investors un-
less preceded or accompanied by a currently effective prospectus of The
Tocqueville Trust.
<PAGE>
- --------------------------------------------------------------------------------
[MAC CHART]
- --------------------------------------------------------------------------------
2
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
SELECTED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------
YEAR ENDED OCTOBER 31, PERIOD FROM
--------------------------------- NOVEMBER 12, 1991
1995 1994 1993 TO OCTOBER 31, 1992
------- ------- ------- -------------------
PER SHARE OPERATING
PERFORMANCE
(FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIOD) ------- ------- ------- -------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 12.16 $ 11.26 $ 10.50 $10.00
------- ------- ------- ------
Income from investment
operations:
Net investment loss..... (0.01)(a) (0.05)(b) (0.21) (0.07)(c)
Net realized and
unrealized gain (loss). (1.39) 1.45 1.62 0.57
------- ------- ------- ------
Total from investment
operations............. (1.40) 1.40 1.41 0.50
------- ------- ------- ------
Less distributions
Dividends from net
investment income...... 0.00 0.00 0.00 0.00
Distributions from net
realized gains......... (1.69) (0.50) (0.65) (0.00)
------- ------- ------- ------
Total distributions..... (1.69) (0.50) (0.65) (0.00)
------- ------- ------- ------
Change in net asset
value for the period... (3.09) 0.90 0.76 0.50
------- ------- ------- ------
Net asset value, end of
period................. $ 9.07 $ 12.16 $ 11.26 $10.50
======= ======= ======= ======
Total Return(d)......... (11.63%) 12.81% 15.00% 5.00%
Ratios/supplemental data
Net assets, end of
period (000)........... $ 4,686 $ 5,187 $3,886 $1,898
Ratio to average net
assets of:
Expenses............... 3.55% (a) 2.82% (b) 4.63% 4.90% (c)*
Net investment income.. (0.26%)(a) (0.87%)(b) (2.42%) (0.73%)(c)*
Portfolio turnover rate. 106% 168% 216% 101%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------
PERIOD FROM
AUGUST 14, 1995
TO OCTOBER 31, 1994
-------------------
<S> <C>
Net asset value, beginning of period........................ $ 9.35
------
Income from investment operations:
Net investment income....................................... 0.00
Net realized and unrealized loss............................ (0.32)
------
Total from investment operations............................ (0.32)
------
Net asset value, end of period.............................. $ 9.03
======
Total Return(e)............................................. (3.42%)
Ratios/supplemental data
Net assets, end of period................................... $193
Ratio to average net assets of:
Expenses................................................... --
Net investment income...................................... --
</TABLE>
- --------
(a)Net of fees waived amounting to 1.27% of average net assets for the year
ended October 31, 1995.
(b)Net of fees waived amounting to 1.00% of average net assets for the year
ended October 31, 1994.
(c)Net of fees waived amounting to 0.28% of average net assets for the period
ended October 31, 1992.
(d)Does not include maximum sales load of 4%.
(e)Does not include contingent deferred sales charge. Not annualized.
*Annualized.
3
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
INVESTMENTS AS OF OCTOBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
US$
Market % of
COMMON STOCKS--80.75% Shares Value Net Assets
- --------------------------------------------------------------------
<S> <C> <C> <C>
AUSTRALIA--30.85%
Acacia Resources(a) 30,000 $ 49,135 1.05%
Ampolex Ltd.(a) 60,000 118,839 2.53%
Posgold Ltd. 50,000 86,082 1.84%
Aurora Gold(a) 100,000 114,268 2.44%
Crown Ltd.(a) 75,000 104,556 2.23%
Delta Gold NL(a) 80,000 171,860 3.67%
Dominion Mining(a) 500,000 110,459 2.36%
Emperor Mines Ltd.(a) 22,000 33,351 0.71%
Gold Mines of Kalgoorlie 50,000 39,994 0.85%
MIM Holdings, Ltd. 30,000 40,451 0.86%
North Ltd. 50,000 140,931 3.01%
QNI Limited 35,000 67,190 1.43%
Resolute Samantha 58,571 112,885 2.41%
Golden Shamrock(a) 100,000 54,849 1.17%
Woodside Petroleum 40,000 191,666 4.09%
Deutsche Bank Australia Ltd., Wts.(a) 11,000 9,385 0.20%
- --------------------------------------------------------------------
1,445,901 30.85%
- --------------------------------------------------------------------
HONG KONG--11.38%
ASM Pacific Tech. 150,000 141,625 3.02%
QPL International 271,000 185,768 3.96%
World Houseware 720,000 128,510 2.74%
Yip's Hang Cheung 500,000 77,603 1.66%
- --------------------------------------------------------------------
533,506 11.38%
- --------------------------------------------------------------------
MALAYSIA--7.84%
ACP Industries 25,000 100,354 2.14%
Cycle & Carr Bin 15,000 61,983 1.32%
Hock Hua Bank Bhd.(a) 25,000 73,790 1.58%
Road Builder 29,000 89,591 1.91%
Diperdana Corp. Berhad(a) 15,000 33,943 0.72%
Tongkah Holdings Bhd. 25,000 7,969 0.17%
- --------------------------------------------------------------------
367,630 7.84%
- --------------------------------------------------------------------
NEW ZEALAND--20.97%
Brierley Invmt. Ltd. 150,000 116,839 2.49%
Carter Holt Harvey 50,000 119,480 2.55%
CDL Hotels NZ Ltd.(a) 350,000 147,865 3.16%
Fisher & Paykel 70,400 230,035 4.91%
Fletcher Challenge 100,000 264,704 5.65%
Telecom Corp. of NZ 25,000 103,802 2.21%
- --------------------------------------------------------------------
982,725 20.97%
- --------------------------------------------------------------------
SINGAPORE--8.62%
Far East Levingston 25,000 107,926 2.31%
United Overseas Bank 10,000 87,757 1.87%
Hong Kong Land Hldgs. 75,000 135,000 2.88%
Jardine Matheson 12,000 73,200 1.56%
- --------------------------------------------------------------------
403,883 8.62%
- --------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
US$
Market % of
COMMON STOCKS (CONTINUED) Shares Value Net Assets
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
THAILAND--1.09%
National Finance & Sec., Wts.(a) 3,000 $ 0 0.00%
Siam City Bank PLC 40,000 50,864 1.09%
Siam City Bank Rights(a) 235 0 0.00%
Siam City Bank Rights(a) 296 0 0.00%
- ----------------------------------------------------------------------------
50,864 1.09%
- ----------------------------------------------------------------------------
Total Common Stocks
(Cost $3,825,540) $3,784,509
- ----------------------------------------------------------------------------
SHORT-TERM Principal
INVESTMENTS--19.74% Amount
- ----------------------------------------------------------------------------
Repurchase Agreement,
State Street Bank & Trust Co., 2.5% dated
10/31/95, due 11/01/95 (Collateralized by
U.S. Treasury Notes valued at $944,292.
Repurchase proceeds of $925,064.) $925,000 $ 925,000 19.74%
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $4,750,540)--100.49% 4,709,509
OTHER ASSETS & LIABILITIES,
NET--(0.49)% (22,816)
- ----------------------------------------------------------------------------
TOTAL NET ASSETS--100.0% $4,686,693
----------
</TABLE>
4
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (identified cost $4,750,540) $4,709,509
Cash 584
Cash, foreign currencies 7,717
Dividends and interest receivable 14,530
Other assets 2,923
----------
$4,735,263
----------
LIABILITIES
Accrued investment adviser's fee --
Accrued distribution fee --
Accrued expenses and other 48,570
----------
48,570
----------
NET ASSETS $4,686,693
----------
At October 31, 1995 net assets consisted of:
Capital paid in $5,079,332
Accumulated net realized loss (351,630)
Net unrealized depreciation (41,009)
----------
$4,686,693
----------
CLASS A
NET ASSET VALUE PER SHARE ($4,686,500 / 516,440 shares
outstanding) $9.07
-----
Maximum offering price ($9.07 / 96%) $9.45
-----
CLASS B
NET ASSET VALUE PER SHARE AND MAXIMUM OFFERING PRICE ($193 / 21
shares outstanding) $9.03
-----
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
STATEMENT OF OPERATIONS
Year Ended October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Dividends (net of $8,853 foreign taxes withheld) $ 91,582
Interest 68,145
---------
159,727
---------
EXPENSES
Investment adviser's fee (Note 2) 48,530
Custodian and fund accounting 71,590
Transfer agent and shareholder services 21,755
Audit 14,600
Legal 34,557
Distribution (Note 4)
Class A 12,133
Class B --
Administration (Note 4) 979
Printing 3,650
Registration 12,775
Trustees fee 1,825
Amortization of organization expenses 2,795
Fidelity bond 2,333
Other 6,612
---------
Total expenses 234,134
Less: fees waived (Notes 2 and 4) (61,642)
---------
Net expenses 172,492
---------
NET INVESTMENT LOSS (12,765)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on:
Investments (351,630)
Foreign currency transactions (3,569)
---------
(355,199)
---------
Net unrealized depreciation on:
Investments (204,604)
Foreign currency translation of other assets and liabilities (4,376)
---------
(208,980)
---------
Net loss on investments (564,179)
---------
Net decrease in net assets resulting from operations $(576,944)
---------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years ended October 31, 1995 and 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
---------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment loss $ (12,765) $ (38,984)
Net realized gain (loss) (355,199) 757,775
Net unrealized depreciation (208,980) (181,778)
---------- ----------
Net increase (decrease) resulting from operations (576,944) 537,013
Distributions to shareholders from net realized gain
on investments:
Class A (720,093) (172,782)
Class B -- --
Fund share transactions (Note 4)
Class A 796,982 936,375
Class B 200 --
---------- ----------
Net increase (decrease) in net assets (499,855) 1,300,606
NET ASSETS
Beginning of year 5,186,548 3,885,942
---------- ----------
End of year $4,686,693 $5,186,548
---------- ----------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1
The Tocqueville Trust (the "Trust") was organized as a Massachusetts business
trust registered under the Investment Company Act of 1940 as amended, as a di-
versified, open-end management investment company. The Trust consists of five
separate Funds: The Tocqueville Fund, The Tocqueville Asia-Pacific Fund, The
Tocqueville Small Cap Value Fund, The Tocqueville Europe Fund and The
Tocqueville Government Fund (the "Funds"). The following is a summary of sig-
nificant accounting principles followed by the Trust in the preparation of its
financial statements.
- --------------------------------------------------------------------------------
SECURITY VALUATION
Investments in securities, including foreign securities, traded on an ex-
change or quoted on the over-the-counter market are valued at the last sale
price or, if no sale occurred during the day, at the mean between closing bid
and asked prices, as last reported by a pricing service approved by the Trust-
ees. When market quotations are not readily available, or when restricted secu-
rities or other assets are being valued, such assets are valued at fair value
as determined in good faith by or under procedures established by the Trustees.
Short-term investments are stated at cost which, together with accrued inter-
est, approximates market value.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX
It is the Trust's policy to comply with the provisions of the Internal Reve-
nue Code ("Code") applicable to regulated investment companies and to distrib-
ute all of its taxable income to its shareholders. It is also the Trust's in-
tention to distribute amounts sufficient to avoid imposition of any excise tax
under Section 4982 of the Code. Therefore, no federal income or excise tax pro-
vision is required.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION
Investments and other assets and liabilities denominated in foreign curren-
cies are translated to U.S. dollars at the prevailing rates of exchange. The
Tocqueville Asia-Pacific Fund is engaged in transactions in securities denomi-
nated in foreign currencies and, as a result, enters into foreign exchange con-
tracts. The Fund is exposed to additional market risk as a result of changes in
the value of the underlying currency in relation to the U.S. dollar. The value
of foreign currency contracts are "marked to market" on a daily basis, which
reflects the change in the market value of the contract at the close of each
day's trading, resulting in daily unrealized gains and/or losses. When the con-
tracts are closed, the Fund recognizes a realized gain or loss.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
- --------------------------------------------------------------------------------
8
<PAGE>
- -------------------------------------------------------------------------------
Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books, and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes
in the value of assets and liabilities other than investments in securities at
the end of the fiscal period, resulting from changes in the exchange rates.
- -------------------------------------------------------------------------------
OTHER
Security transactions are accounted for on the trade date, the date the or-
der to buy or sell is executed. Dividend income is recognized on the ex-divi-
dend date or at the time the Fund becomes aware, whichever is earlier. Inter-
est income is recognized on the accrual basis and market discount is accounted
for on a straight-line basis from settlement date. The Trust uses the first-
in, first-out method for determining realized gain or loss on investments sold
for both financial reporting and federal tax purposes. Distributions to share-
holders are recorded on the ex-dividend date. Expenses incurred by the Trust
not specifically identified to a fund are allocated on a basis relative to the
size of each fund's daily net asset value. It is the Fund's policy to take
possession of securities as collateral under repurchase agreements and to de-
termine on a daily basis that the value of such securities are sufficient to
cover the value of the repurchase agreements.
- -------------------------------------------------------------------------------
NOTE 2
Tocqueville Asset Management L.P. ("Tocqueville"), is the investment adviser
to the Trust under an Investment Advisory Agreement approved by shareholders
on February 26, 1990. For its services, Tocqueville receives a fee from the
Fund, payable monthly, at an annual rate of 1.00% on the first $50 million of
its average daily net assets, .75% of the next $50 million of average daily
net assets, and .65% of average daily net assets in excess of $100 million.
Certain states in which shares of the Trust are qualified for sale impose
limitations on the expenses of the Trust. The Advisory Agreement provides that
if, in any fiscal year, the total expenses of the Trust (excluding taxes, in-
terest, extraordinary expenses and the distribution fee but including the Ad-
viser's fee) exceed the expense limitation applicable to the Trust imposed by
the securities regulations of any state in which it is registered to sell
shares, Tocqueville will pay or reimburse the Trust for that excess up to the
amount of its fee. The most restrictive limitation currently applicable (ex-
cluding the items described above) limits a fund to 2.5% of the Trust's first
$30,000,000 of average daily net assets, 2% of the next $70,000,000, and 1.5%
of the Trust's average daily net assets over $100,000,000. The Adviser waived
its management advisory fee for the year ended October 31, 1995, aggregating
$48,530, due to this limitation.
- -------------------------------------------------------------------------------
9
<PAGE>
- -------------------------------------------------------------------------------
NOTE 3
Effective August 14, 1995 the Fund offered two classes of shares: Class A
and Class B shares. Shares of each class are identical except for the initial
sales load on Class A shares, a contingent deferred sales charge on Class B
shares, distribution fees, and voting rights on matters effecting a single
class. All Fund shares outstanding before August 14, 1995 were designated as
Class A shares. At October 31, 1995, there were an unlimited number of shares
of beneficial interest authorized ($0.01 par value). Transactions in the
Fund's shares were:
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
-------------------- -------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- ------- ----------
<S> <C> <C> <C> <C>
Shares sold 140,708 $1,243,264 130,489 $1,511,830
Shares issued on reinvestment
of distributions 50,479 461,895 8,785 98,299
Shares redeemed (101,157) (908,177) (58,064) (673,754)
-------- ---------- ------- ----------
Net increase 90,030 $786,982 81,210 $936,375
-------- ---------- ------- ----------
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------------
PERIOD FROM
AUGUST 14, 1995
TO OCTOBER 31, 1995
----------------------
SHARES AMOUNT
--------- ----------
<S> <C> <C>
Shares sold 21 $200
Shares redeemed -- --
--------- ----------
Net increase 21 $200
--------- ----------
</TABLE>
- -------------------------------------------------------------------------------
NOTE 4
Tocqueville Securities L.P. (the "Distributor") acts as distributor for
shares of the Fund and purchases shares of the Fund at net asset value to fill
orders as received from investment dealers. For the year ended October 31,
1995, the Distributor received net commissions of $65 from the sale of the
Fund's shares.
The Fund has adopted distribution plans related to the sale of Class A and
Class B shares pursuant to which the Fund may incur distribution expenses in
an amount not to exceed 0.25% and 0.75% per annum of the average daily net as-
sets of Class A and Class B shares, respectively. Such expenses may include,
but are not limited to, advertising, printing, and distribution of sales lit-
erature, prospectuses and other materials, and payments to dealers and share-
holders servicing agents including the Distributor. Under the distribution
plans, the Distributor is permitted to carry forward expenses not reimbursed
by the distribution fees to subsequent fiscal years for submission to the Fund
for payment, subject to the continuation of the Plan. For the year ended
- -------------------------------------------------------------------------------
10
<PAGE>
- --------------------------------------------------------------------------------
October 31, 1995, the Distributor has waived distribution fees of $12,132 and
$0, respectively, for Class A and Class B shares. The Distributor has informed
the Trust that, as of October 31, 1995, there were $58,702 in unreimbursed ex-
penses for the Fund.
Class B shares which are redeemed within six years of purchase are subject to
a contingent deferred sales charge at rates ranging from 5% to 0%, charged as a
percentage of the dollar amount subject thereto. There were no contingent de-
ferred sales charges paid to the Distributor for the year ended October 31,
1995.
Pursuant to an Administrative Services Agreement, effective September 15,
1995, the Fund pays to the Distributor a fee computed and paid monthly at an
annual rate of 0.15% of the average daily net assets of the Fund. During the
year ended October 31, 1995, the Distributor waived administration fees of
$979.
- --------------------------------------------------------------------------------
NOTE 5
Purchases and sales of investment securities (excluding short-term instru-
ments) for the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
ASIA-
PACIFIC
FUND
-----------
<S> <C>
PURCHASES
U.S. Government $ --
Other 4,467,026
----------
$4,467,026
----------
SALES
U.S. Government $ --
Other 3,726,505
----------
$3,726,505
----------
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
NOTE 6
Unrealized depreciation at October 31, 1995 based on cost of securities for
Federal tax purposes is as follows:
<TABLE>
<CAPTION>
THE
TOCQUEVILLE
ASIA-
PACIFIC
FUND
-----------
<S> <C>
Gross unrealized appreciation $ 369,439
Gross unrealized depreciation (414,401)
----------
Net unrealized depreciation $ (44,962)
----------
Cost of investments $4,754,471
----------
</TABLE>
At October 31, 1995, the Fund had tax basis capital losses of $347,699 avail-
able to offset future gains through October 31, 2003.
12
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
- --------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees and Shareholders
The Tocqueville Asia-Pacific Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of The Tocqueville Asia-Pacific Fund series of The
Tocqueville Trust, as of October 31, 1995, and the related statement of opera-
tions for the year then ended, the statement of changes in net assets for each
of the two years in the period then ended, and the selected financial informa-
tion for each of the three years in the period then ended. These financial
statements and selected financial information are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these finan-
cial statements and selected financial information based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and selected finan-
cial information are free of material misstatement. An audit includes examin-
ing, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
as of October 31, 1995, by correspondence with the custodian. An audit also in-
cludes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presenta-
tion. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of The Tocqueville Asia-Pacific Fund series of The Tocqueville Trust
as of October 31, 1995, the results of its operation, the changes in its net
assets, and the selected financial information for the periods indicated, in
conformity with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
December 1, 1995
13
<PAGE>
THE TOCQUEVILLE FUND
THE TOCQUEVILLE ASIA-PACIFIC FUND
THE TOCQUEVILLE EUROPE FUND
THE TOCQUEVILLE SMALL CAP VALUE FUND
Special Meeting of Shareholders, July 31, 1995
- --------------------------------------------------------------------------------
A Special Meeting of Shareholders of the Trust was held on July 31, 1995 at
the offices of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel, 919 Third Ave-
nue, New York, New York. The purpose of the meeting was to elect six trustees
of the Trust, to ratify McGladrey and Pullen, LLP as independent public accoun-
tants for the Trust, to approve an amendment to the Declaration and Agreement
of Trust to permit the Trustees to authorize, without shareholder approval, the
issuance of separate and distinct classes of shares of each series of the Trust
and to approve the elimination of some fundamental investment restrictions of
the Trust requiring shareholder approval. At the meeting, the shareholders
voted in favor of all of the resolutions presented to them. No other business
was conducted at the Special Meeting of Shareholders.
The results of the voting at the Special Meeting of Shareholders was as fol-
lows:
1. Ratification of an amendment to the Agreement and Declaration of Trust
to permit the Trustees, without shareholder approval, to authorize The
Tocqueville Trust to issue separate and distinct classes of shares of
each series:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 4,474.39 Abstain: 5,053.03
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,433.12 Against: -0- Abstain: 38.46
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
2. Approval of the elimination of the Funds' fundamental investment re-
striction concerning short sales:
THE TOCQUEVILLE FUND
For: 1,469,900.22 Against: 4,474.39 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
14
<PAGE>
- --------------------------------------------------------------------------------
3. Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment for control were as follows:
THE TOCQUEVILLE FUND
For: 1,471,351.92 Against: 3,022.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 466,723.20 Against: -0- Abstain: -0-
4. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of affiliates:
THE TOCQUEVILLE FUND
For: 1,464,396.14 Against: 9,978.47 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
5. Approval of the elimination of the Funds' fundamental investment re-
striction concerning securities of other investment companies:
THE TOCQUEVILLE FUND
For: 1,469,057.52 Against: 5,317.09 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
15
<PAGE>
- --------------------------------------------------------------------------------
6. Approval of the elimination of the Funds' fundamental investment re-
striction concerning development programs:
THE TOCQUEVILLE FUND
For: 1,468,635.92 Against: 5,738.69 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
7.Approval of the elimination of the Funds' fundamental investment re-
striction concerning transactions involving puts, calls or options:
THE TOCQUEVILLE FUND
For: 1,464,689.65 Against: 9,684.96 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
8.Approval of the elimination of the Funds' fundamental investment re-
striction concerning investment in securities of issuers in operation
for less than three years:
THE TOCQUEVILLE FUND
For: 1,460,800.07 Against: 13,574.54 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
16
<PAGE>
- --------------------------------------------------------------------------------
9. Approval of the amendment of the Funds' fundamental investment re-
stricting concerning the lending of money or securities:
THE TOCQUEVILLE FUND
For: 1,459,829.27 Against: 14,545.34 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
10. Approval of the amendment of the Funds' fundamental investment restric-
tion concerning commodities:
THE TOCQUEVILLE FUND
For: 1,465,660.45 Against: 8,714.16 Abstain: 813.26
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
11. Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
restricted and illiquid securities:
THE TOCQUEVILLE FUND
For: 1,464,490.27 Against: 9,884.34 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
12.Approval of the elimination of The Tocqueville Fund's and The
Tocqueville Small Cap Value Fund's fundamental restriction concerning
the amount of allowable investment in foreign securities:
THE TOCQUEVILLE FUND
For: 1,470,321.45 Against: 4,053.16 Abstain: 813.26
THE TOCQUEVILLE SMALL CAP VALUE FUND
For: 446,723.20 Against: -0- Abstain: -0-
17
<PAGE>
- --------------------------------------------------------------------------------
13.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning re-
stricted and illiquid securities:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
14.Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning securi-
ties of other investment companies were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 250,116.87 Against: -0- Abstain: -0-
15. Approval of the elimination of The Tocqueville Asia-Pacific Fund's and
The Tocqueville Europe Fund's fundamental restriction concerning war-
rants were as follows:
THE TOCQUEVILLE ASIA-PACIFIC FUND
For: 299,471.58 Against: -0- Abstain: -0-
THE TOCQUEVILLE EUROPE FUND
For: 249,193.87 Against: -0- Abstain: 923.00
16. Election of six (6) Trustees, for a term to expire until his or her
successor is elected and has qualified:
<TABLE>
<CAPTION>
WITHHOLDING
FOR AUTHORITY
--- -----------
<S> <C> <C>
Francois Sicart 2,471,499.52 -0-
Bernard Combemale 2,471,499.52 -0-
James Flaherty 2,466,639.14 4,860.38
Inge Heckel 2,466,639.14 4,860.38
Robert Kleinschmidt 2,471,499.52 -0-
Francois Letaconnoux 2,471,499.52 -0-
</TABLE>
17. Ratification of the selection of McGladrey & Pullen, LLP, as indepen-
dent public accountants for the Trust for the fiscal year ended October
31, 1995.
For: 2,471,102.02 Against: -0- Abstain: 397.50
18
<PAGE>
INVESTMENT ADVISOR
Tocqueville Asset Management L.P.
1675 Broadway
New York, New York 10019
Telephone: (212) 698-0800
Telecopier: (212) 262-0154
DISTRIBUTOR
Tocqueville Securities L.P.
1675 Broadway
New York, New York 10019
Telephone: (800) 697-3863
Telecopier: (212) 262-0154
SHAREHOLDERS' SERVICING,
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 8507
Boston, Massachusetts 02266-8507
Telephone Toll Free
(800) 626-9402
BOARD OF TRUSTEES
Francois Sicart -- Chairman
Bernard F. Combemale
James B. Flaherty
Inge Heckel
Robert W. Kleinschmidt
Francois Letaconnoux
LOGO
The Tocqueville
Asia-Pacific Fund
a series of
The Tocqueville Trust
Annual Report
October 31, 1995
