<PAGE>
SEMI-ANNUAL REPORT
April 30, 1997
The Tocqueville Trust
Mutual Funds
The Tocqueville Fund
The Tocqueville Small Cap Value Fund
The Tocqueville Asia-Pacific Fund
The Tocqueville International Value Fund
The Tocqueville Government Fund
LOGO Tocqueville
<PAGE>
The Tocqueville Fund
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDERS:
For the first six months of our fiscal year ended April 30, 1997, The
Tocqueville Fund generated a total return of 10.2%. This compares with a very
strong 14.7% for the S&P 500 over the same period. Despite underperforming the
index over the period, we are gratified by the double-digit returns generated
by the Fund. Our cautious stance on the market has led us to look even more
diligently than is normally the case for underperforming stocks whose shares
offer lower downside risk. Emphasis on capital preservation in a roaring bull
market typically leads to lagging performance compared with the indices, but
over the long term, we believe this approach is more prudent.
Notwithstanding our caution, the Fund managed to generate very solid, re-
spectable returns during the period. Our large position in financial stocks
contributed to this performance, as did continued strength in our largest posi-
tion, IBM. Oil service stocks, on the other hand, where we have a significant
position, took a breather over the period, after registering strong gains over
the previous six-month period.
During the first half of the fiscal year, we trimmed outsized positions in
some of our better performing stocks such as Citicorp, BankAmerica, and IBM,
while initiating positions in Reader's Digest, H&R Block, and Polaroid, quality
companies whose share prices had come under selling pressure. Other new names
include ITT Industries and Knightsbridge Tankers.
OUTLOOK
With slowing growth taking the pressure off interest rates and inflationary
pressures still low, the equity markets should shift their focus to the corpo-
rate earnings outlook. In each of the past three quarters, earnings have held
up reasonably well, but scattered disappointments have led to very sharp cor-
rections in the prices of individual stocks.
We believe this trend will continue, although we would expect that the
amount of negative surprises will rise. As a result, we continue to view the
market with a great deal of caution. Notwithstanding the strong rally in the
market since the March-April correction, we continue to believe it will be a
"stockpicker's" market on a going forward basis.
Our approach will be to continue to focus on companies where the downside
risk is limited and where the potential for significant gains over a three to
five year period is not dependent upon a continued strong market. Preservation
of capital, in particular preservation of the capital appreciation of the past
two and a half years, remains our most important investment objective.
Robert W. Kleinschmidt
Francois Sicart
Portfolio Managers
1
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The Tocqueville Small Cap Value Fund
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DEAR FELLOW SHAREHOLDER:
I am pleased to report that the Tocqueville Small Cap Value Fund has main-
tained its excellent performance. For the six month period ended April 30,
1997, your portfolio of value stocks posted a 3.4% increase in Net Asset Value.
Since its creation on August 1, 1994, your Fund has appreciated 50.8%. These
performance numbers compare favorably with returns of 1.6% and 46.9% for the
Russell 2000 Index over the same periods. The Russell 2000 Index is the most
widely accepted benchmark for small cap stocks. I will try my best to maintain
that performance in the future.
CAUTIOUS OPTIMISM MAINTAINED
Your Fund has performed well in a difficult market environment for small cap
stocks, especially during the last ninety days. This seems to validate our
value investing strategy of buying quality stocks when they are down. Overall,
the long-term economic outlook for the stocks which we own looks promising. As
a result, I remain cautiously optimistic. Common stocks represented 87% of as-
sets held on April 30, 1997. US Treasury Bonds and cash equivalents accounted
for the balance.
Looking at the portfolio in 1998 strategic terms, I reduced my exposure to
manufacturing sectors from 16% to 11%. This permitted me to increase my mix of
investments in "sunrise industries" at very attractive prices. Sunrise indus-
tries now account for 56% of assets. This gives our portfolio a higher growth
profile.
To be more specific, 52.6% of assets are invested in recession-resistant
sectors: Computer Software (17.4%), Healthcare (11.7%), Communications (11.3%),
Financial Services (4.8%), Business & Database Services (7.4%).
Our next large area of exposure is Oil Drilling Equipment & Services at 8%
of assets, even after recent reductions. We also retain a 6% investment in RTA
furniture maker O'Sullivan Industries. Our initial purchases in these sectors
were extremely timely. What follows is a listing of our ten largest positions,
which represent 40% of assets.
TEN LARGEST POSITIONS
<TABLE>
<S> <C>
O'Sullivan Industries Hldgs.
(6%) Producer of Ready-To-Assemble furniture
Owens & Minor Corp. (4.8%) Wholesaler of medical surgical supplies
Telxon Corporation (4.7%) Bar-code, and wireless factory automation
Unisys Corporation (4.4%) Computer hardware & support services
National Computer Systems (3.7%) Computer based data services
Systems & Computer Technology
(3.6%) Computer software maintenance services
Bindley Western Ind. (3.4%) Wholesale distribution of prescription drugs
Oceaneering International (3.2%) Offshore marine maintenance services
Scientific-Atlanta Inc. (3.2%) CATV and satellite communication hardware
AmVestor Financial Corp. (2.9%) Annuity and life insurance products
</TABLE>
2
<PAGE>
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For the benefit of our new shareholders, I will review the basic tenets of my
investment strategy.
LONG TERM ORIENTATION
I believe that successful investing requires considerable attention to "how
much you pay for what you buy," considerable patience coupled with the will-
ingness to accept some temporary discomfort, and lastly, true long-term com-
mitment. 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 strategic "vision" issues.
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 selecting "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 three
time-tested guidelines:
RULE # 1: RESTRICT ALL PURCHASES OF NEW STOCKS TO THOSE THAT ARE ALREADY
DOWN SUBSTANTIALLY IN PRICE. I very rarely violate this value precept when
making new purchases. For instance, based on cost, the 48 stocks which we
owned on April 30, 1997 were down on average of 35.8% and 38.5% from their re-
spective 12 months' and 60 months' highs. Consequently, many of these stocks
were receiving scant coverage from Wall Street when we acquired them, and
quite a few were actually receiving negative press.
RULE # 2: SYSTEMATICALLY SCREEN THESE "DOWN AND OUT" STOCKS FOR FINANCIAL
STRENGTH. I believe that strained finances are clear indication of poor busi-
ness fundamentals. I shun poor businesses, no matter how inexpensive they are.
Conversely, I have a strong affinity for self-reliant and practically debt-
free companies. My logic is that people who properly manage their finances are
least likely to disappoint me. The average debt-to-capitalization ratio of all
stocks in the Fund's portfolio is a very conservative 18.0%, with an equally
strong average quick ratio (cash and receivables/current liabilities) of 2.8
times.
RULE # 3: "INVEST TO WIN." While this is by far the most difficult task,
its logic is quite compelling. Starting with a selection of stocks that have
declined substantially in price and retained their financial strength, I sin-
gle out the so-called "good businesses" that I want to buy and hold for the
long term. Good businesses should have very distinctive features, which I rank
in the following order of importance.
3
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SELECTING GOOD BUSINESSES
. MANAGEMENT INTEGRITY, REPUTATION AND SOCIAL RESPONSIBILITY. I can not
identify a single successful long-term investment lacking these complementary
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. In-
tegrity directly sets the tone for the organization's strategies, and it indi-
rectly sets the intensity of management's commitment to the business. Integ-
rity defuses most adversarial labor-management conflicts, and thus improves
productivity. Integrity also fosters accountability. Reputation allows organi-
zations to hire and retain the best people available, and to stay ahead of
their competition. I view social responsibility as the necessary foundation of
all worthy investment activities.
. GROWTH POTENTIAL. A good investment should offer its owner some prospects
of long-term growth, profitability, and financial security. These investments
are usually found in emerging or service industries. Approximately 56% of Fund
assets are invested in these sectors which include 5 of our ten largest posi-
tions: Owens & Minor, National Computer Systems, Systems & Computer Technolo-
gy, Oceaneering International, AmVestor Financial Corp.
. NEW PRODUCTS. Good businesses are usually 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.
. 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 are protected by patents or
proprietary know-how.
. MARKET SHARE POSITION. Good businesses often hold high market share posi-
tions in their industries. Current portfolio examples include Nabors Indus-
tries, the world's largest land driller, Telxon Corp., the leading US bar-code
and wireless data capture systems integrator; O'Sullivan Industries, the larg-
est US producer of ready-to-assemble furniture.
. HIGH INSIDER OWNERSHIP. I am comfortable with high levels of insider own-
ership, as long as I see little insider selling. My theory is that insiders
with money at risk are most likely to tend to the business, and to truly man-
age the enterprise for the long term. On average, insiders owned 18% of the
stocks in the Fund's portfolio, and eleven of our stocks had insider ownership
levels of 30% or more.
. REPEAT SALES OF CONSUMABLE PRODUCTS. Good businesses generally have a
close day-to-day working relationship with their customers, and often sell
products or services which are consumed rapidly. Over the years, good busi-
nesses build an installed base of satisfied "pre-sold" customers by simply
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) revenues. Sixteen of our 48
4
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stocks have a relatively high mix of repeat sales, and four of these are among
our ten largest positions: Owens & Minor, National Computer Systems, Systems &
Computer Technology, AmVestor Financial.
In closing, let me say that I welcome questions, comments or observations
which you may have. I am also very grateful that you chose the Tocqueville
Small Cap Value Fund to realize your long-term investment objectives.
Jean-Pierre Conreur
Portfolio Manager
5
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The Tocqueville Asia-Pacific Fund and
The Tocqueville International Value Fund
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DEAR FELLOW SHAREHOLDERS:
As you know, the Tocqueville International Value Fund (formerly the
Tocqueville Europe Fund) and the Tocqueville Asia-Pacific Fund were merged
with your overwhelming approval on May 1st, 1997.
For the first six months of our fiscal year, both components performed very
commendably:
. The net asset value of one share of the Tocqueville International Value
Fund increased by 14.09%, vs. a gain of 11.77% for the Morgan Stanley
Europe 14 Index;
. While the net asset value of one share of the Tocqueville Asia-Pacific
Fund decreased 2.75%, it did so in a difficult environment where the
Morgan Stanley Pacific Index lost 10.47%.
Of course, investment performance should not be judged over short periods
of time, but I feel quite encouraged. Our international team of analysts works
very effectively together and has wholeheartedly adopted Tocqueville's long-
term, contrarian, value-oriented approach to selecting stocks. Moreover, the
merger will allow stock ideas from a much more diverse geographical spectrum
to compete for inclusion in our portfolio, thus further tightening the selec-
tion criteria.
The merger is also quite timely. The proportion of European equities in our
combined portfolio has been significantly larger than that of Asian equities.
Since many shareholders sought our advice on where to invest, this allocation
has simply reflected the fact that we were finding more undervalued stocks in
Europe than in Asia. Now, however, with the good performance of European equi-
ties, and the often dismal one of Asian equities, over the past two years, we
are beginning to find more "values" in Asia than in Europe. As we invest in
these new opportunities, the proportion of our assets invested in Asia will
naturally and progressively catch up and surpass that invested in Europe--all
inside a single fund.
In a complex world, it is often useful to fall back on simple equations.
Stock prices are a function of both corporate profits and liquidity (the sup-
ply of money from domestic or outside sources.) When liquidity is in ample
supply and a subdued economy makes low demands on it, the money tends to flow
to financial markets: corporate profits may remain below their potential, but
price/earnings ratios (and stock prices) rise. This has been the situation in
Europe. As the European economies recover, in the coming year, they will ab-
sorb more liquidity, and price/earnings ratios will decline. Fortunately, much
as was the case with the United States in the early 1990s, many European com-
panies still have considerable profit-recovery potential. The challenge will
be to select companies whose profits are likely to expand much faster than
their price/earnings ratios decline, and we believe that many of the companies
in our portfolio do have that potential.
In Asia, several economies are in the process of slowing as a result of
earlier monetary tightening, infrastructure constraints, the challenge posed
by changed dollar/yen parities and other factors. But we should not forget
that Thailand, for example, though widely thought as being in the middle of a
6
<PAGE>
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severe recession, is still expected to grow at a 6% rate this year; the re-
gion's underlying growth trend is truly powerful. With the economies slowing
down and real estate speculative bubbles being burst across the region, mone-
tary policies will soon be relaxed, while much of the available liquidity will
be redirected from real estate to infrastructure, manufacturing investment and
consumption. Foreign industrial investment into the region continues apace,
and foreign portfolio investors will eventually return as well. Thus, on a
two-to-three year horizon, which is typically ours, there is the potential for
both rapid expansion of corporate profits and a significant revaluation of
price/earnings ratios.
In summary, with the world's economies being at different stages in the
economic cycle, we should have no trouble identifying new investment opportu-
nities for our fund, even if some stock markets, possibly including the United
States, should undergo price corrections over the coming year.
Francois Sicart
Portfolio Manager
7
<PAGE>
The Tocqueville Government Fund
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DEAR FELLOW SHAREHOLDERS:
The Tocqueville Government Fund achieved a return of 2.28% for the six
months ending April 30, 1997 against the Lehman Bros. Intermediate Government
Index return of 1.77% for the same period. Our view on interest rates remains
optimistic, in spite of the prevailing consensus that the Federal Reserve will
raise interest rates again, perhaps significantly. Our valuation is a function
of several determinants.
Household income and balance sheets are strong and continuing to improve.
Personal income should continue to rise. Consumer debt levels are not threat-
ening and credit card delinquencies are relatively small. Credit is widely
available and household net worth is increasing across all levels. The unem-
ployment rate is near a thirty year low and income conditions are at buoyant
levels, in spite of a re-engineering or downsizing of corporations.
All of these elements have contributed to an up trend in corporate profits
without a contribution to inflation. Increased productivity in labor is in a
secular shift up, largely due to the lagged effects of the microchip revolu-
tion as well as foreign competition.
Inflation has been fairly constant at approximately 3% for over five years,
with an inflation premium at over 4% which is historically high. We would ex-
pect that the premium would narrow and without an attendant increase in the
inflation rate. As we have made reference previously, the strengthening of the
US dollar over the last eighteen months against all hard currencies will have
a far larger impact on inflation and the economy for the next few quarters
than the most recent move by the Fed. We believe that monetary policy is cur-
rently at least in a neutral position and if the dollar's impact slows the
economy, as we expect, then the stage could be set for a reduction of rates.
On a relative valuation, it is important to note that for the first time in
a quite a long period Treasuries are more attractive than ever. Japanese gov-
ernment bonds yield just over 2%; French government bonds yield just under 6%;
and Canadian bonds yield about 6.75%. Record narrow spreads exist for both
corporate and junk bonds. Lastly, Treasuries are historically attractive
against S&P yields. It seems that the only inflation that is occurring is in
financial assets and Treasuries are the least inflated.
Robert W. Kleinschmidt
Christopher P. Culp
Portfolio Managers
8
<PAGE>
THE TOCQUEVILLE FUND
FINANCIAL HIGHLIGHTS
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<TABLE>
<CAPTION>
CLASS A CLASS B
------- -------
YEAR ENDED OCTOBER 31, PERIOD FROM PERIOD FROM
SIX MONTHS ---------------------- NOVEMBER 1, AUGUST 14,
PER SHARE OPERATING ENDED 1995 TO 1995 TO
PERFORMANCE APRIL 30, AUGUST 16, OCTOBER 31,
(FOR A SHARE OUTSTANDING 1997 1996 1995 1994 1993 1992 1996 (G) 1995
THROUGHOUT THE PERIOD) ---------- ---- ---- ---- ---- ---- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 15.85 $ 14.07 $ 13.74 $ 13.67 $ 11.83 $ 11.33 $14.01 $14.68
------- ------- ------- ------- ------- ------- ------ ------
Income from investment
operations:
Net investment income 0.03 0.07 0.15 0.12 0.11 0.17 0.12 --
Net realized and
unrealized gain (loss) 1.53 2.92 1.70 0.88 2.55 1.33 2.15 (0.67)
------- ------- ------- ------- ------- ------- ------ ------
Total from investment
operations 1.56 2.99 1.85 1.00 2.66 1.50 2.27 (0.67)
------- ------- ------- ------- ------- ------- ------ ------
Less distributions
Dividends from net in-
vestment income (0.06) (0.15) (0.11) (0.14) (0.16) (0.36) (0.15) --
Distributions from net
realized gains (0.79) (1.06) (1.41) (0.79) (0.66) (0.64) (1.06) --
------- ------- ------- ------- ------- ------- ------ ------
Total distributions (0.85) (1.21) (1.52) (0.93) (0.82) (1.00) (1.21) --
------- ------- ------- ------- ------- ------- ------ ------
Change in net asset
value for the period 0.71 1.78 0.33 0.07 1.84 0.50 1.06 (0.67)
------- ------- ------- ------- ------- ------- ------ ------
Net asset value, end of
period $ 16.56 $ 15.85 $ 14.07 $ 13.74 $ 13.67 $ 11.83 $15.07 $14.01
------- ------- ------- ------- ------- ------- ------ ------
Total Return (b)(c) 10.2% 22.7% 16.0% 7.7% 23.7% 14.9% 17.2 % (4.6)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (000 for Class A) $47,602 $42,414 $33,438 $29,140 $27,745 $19,496 $ 0 $ 191
Ratio to average net as-
sets:
Expenses (a)(d) 1.40%(f) 1.49% 1.54% 1.54% 1.56% 1.74% 1.98 %(f) --
Net investment income
(loss) (a)(d) 0.38%(f) .44% 1.07% 0.87% 0.96% 1.44% (0.21)%(f) --
Portfolio turnover rate 24% 48% 47% 52% 54% 89% 48 % --
Average commission rate
paid (e) $ .0600 $ .0596 $.0596
</TABLE>
- --------
(a) Net of fees waived amounting to 0.09%, 0.16% and 0.02% of average net as-
sets for the periods ended April 30, 1997, October 31, 1996 and October 31,
1995, respectively, for Class A Shares.
(b) Does not include maximum sales charge of 4% for Class A Shares.
(c) Does not include contingent deferred sales charge for Class B Shares. Not
annualized.
(d) Net of fees waived amounting to 0.16% of average net assets for the period
ended October 31, 1996 for Class B Shares.
(e) Average per share amounts of brokerage commissions on portfolio transac-
tions. Required by regulations issued in 1995.
(f) Annualized.
(g) On August 16, 1996, all Class B Shares were converted into Class A Shares.
9
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
------- -------
YEAR ENDED
OCTOBER 31,
----------- PERIOD FROM PERIOD FROM PERIOD FROM
PER SHARE OPERATING SIX MONTHS AUGUST 1, 1994 NOVEMBER 1, 1995 AUGUST 14, 1995
PERFORMANCE ENDED TO TO TO
(FOR A SHARE OUTSTANDING APRIL 30, 1997 1996 1995 OCTOBER 31, 1994 AUGUST 16, 1996(G) OCTOBER 31, 1995
THROUGHOUT THE PERIOD) -------------- ---- ---- ---------------- ------------------ ----------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 13.37 $ 11.91 $10.22 $10.00 $11.87 $12.35
------- ------- ------ ------ ------ ------
Income from investment
operations:
Net investment income
(loss) 0.00 (0.10) (0.05) 0.02 (0.07) --
Net realized and
unrealized gain (loss) 0.48 2.33 1.96 0.20 1.18 (0.48)
------- ------- ------ ------ ------ ------
Total from investment
operations 0.48 2.23 1.91 0.22 1.11 (0.48)
------- ------- ------ ------ ------ ------
Less distributions
Dividends from net in-
vestment income -- -- (0.03) -- -- --
Distributions from net
realized gains (1.46) (0.77) (0.19) -- (0.77) --
------- ------- ------ ------ ------ ------
Total distributions (1.46) (0.77) (0.22) -- (0.77) --
------- ------- ------ ------ ------ ------
Change in net asset
value for the period (0.98) 1.46 1.69 0.22 0.34 (0.48)
------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 12.39 $ 13.37 $11.91 $10.22 $12.21 $11.87
------- ------- ------ ------ ------ ------
Total Return (b)(c) 3.4 % 19.7 % 19.2 % 2.2% 9.7 % (3.9)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (000 for Class A) $13,591 $11,545 $9,383 $6,755 $ 0 $ 192
Ratio to average net as-
sets:
Expenses (a)(d) 1.75 %(f) 2.36 % 2.50 % 2.08%(f) 2.92 %(f) --
Net investment income
(loss) (a)(d) (0.56)%(f) (1.18)% (0.53)% 0.85%(f) (1.79)%(f) --
Portfolio turnover rate 43 % 107 % 88 % 9% 107 %
Average commission rate
paid(e) $ .0600 $ .0599 $.0599
</TABLE>
- --------
(a) Net of fees waived amounting to 0.18%, 0.33%, 0.33% and 0.75% of average
net assets for the periods ended April 30, 1997, October 31, 1996, October
31, 1995, and October 31, 1994, respectively, for Class A Shares.
(b) Does not include maximum sales charge of 4% for Class A Shares. For the pe-
riod ended October 31, 1994, not annualized.
(c) Does not include contingent deferred sales charge for Class B Shares. Not
annualized.
(d) Net of fees waived amounting to 0.37% of average net assets for the period
ended October 31, 1996 for Class B Shares.
(e) Average per share amounts of brokerage commissions on portfolio transac-
tions. Required by regulations issued in 1995.
(f) Annualized.
(g) On August 16, 1996, all Class B Shares were converted into Class A Shares.
10
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
------- -------
YEAR ENDED OCTOBER 31, PERIOD FROM PERIOD FROM PERIOD FROM
---------------------- NOVEMBER 12, NOVEMBER 1, AUGUST 14,
PER SHARE OPERATING SIX MONTHS 1991 TO 1995 TO 1995 TO
PERFORMANCE ENDED APRIL OCTOBER 31, AUGUST 16, OCTOBER 31,
(FOR A SHARE OUTSTANDING 30, 1997 1996 1995 1994 1993 1992 1996 (G) 1995
THROUGHOUT THE PERIOD) ----------- ---- ---- ---- ---- ------------ ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 9.08 $ 9.07 $12.16 $11.26 $10.50 $10.00 $ 9.03 $9.35
------- ------- ------ ------ ------ ------ ------ -----
Income from investment
operations:
Net investment income
(loss) (0.01) -- (0.01) (0.05) (0.21) (0.07) 0.15 --
Net realized and
unrealized gain (loss) (0.24) 0.01 (1.39) 1.45 1.62 0.57 0.26 (0.32)
------- ------- ------ ------ ------ ------ ------ -----
Total from investment
operations (0.25) 0.01 (1.40) 1.40 1.41 0.50 0.41 (0.32)
------- ------- ------ ------ ------ ------ ------ -----
Less distributions
Dividends from net
investment income -- -- -- -- -- -- -- --
Distributions from net
realized gains -- -- (1.69) (0.50) (0.65) -- -- --
------- ------- ------ ------ ------ ------ ------ -----
Total distributions -- -- (1.69) (0.50) (0.65) -- -- --
------- ------- ------ ------ ------ ------ ------ -----
Change in net asset
value for the period (0.25) .01 (3.09) 0.90 0.76 0.50 0.41 --
------- ------- ------ ------ ------ ------ ------ -----
Net asset value, end of
period $ 8.83 $ 9.08 $ 9.07 $12.16 $11.26 $10.50 $ 9.44 $9.03
------- ------- ------ ------ ------ ------ ------ -----
Total Return (b)(c) (2.8)% 0.1% (11.6)% 12.8 % 15.0 % 5.0 % 4.5% (3.4)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (000 for
Class A) $18,116 $18,138 $4,686 $5,187 $3,886 $1,898 $ 0 $ 193
Ratio to average net as-
sets:
Expenses (a)(d) 2.00 %(f) 2.63 % 3.55 % 2.82 % 4.63 % 4.90 %(f) 2.51%(f) --
Net investment income
(loss) (a)(d) (0.23)%(f) (0.06)% (0.26)% (0.87)% (2.42)% (0.73)%(f) 1.25%(f) --
Portfolio turnover rate 20 % 61 % 106 % 168 % 216 % 101 % 61% --
Average commission rate
paid (e) $ .0066 $ .0060 $.0060
</TABLE>
- --------
(a) Net of fees waived amounting to 0.04%, 0.66%, 1.27%, 1.00% and 0.28% of av-
erage net assets for the periods ended April 30, 1997, October 31, 1996,
October 31, 1995, October 31,1994, and October 31, 1992, respectively, for
Class A Shares.
(b) Does not include maximum sales charge of 4% for Class A Shares. For the pe-
riod ended October 31, 1992, not annualized.
(c) Does not include contingent deferred sales charge for Class B Shares. Not
annualized.
(d) Net of fees waived amounting to 0.62% of average net assets for the period
ended October 31, 1996 for Class B Shares.
(e) Average per share amounts of brokerage commissions on portfolio transac-
tions. Required by regulations issued in 1995.
(f) Annualized.
(g) On August 16, 1996, all Class B Shares were converted into Class A Shares.
11
<PAGE>
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
------- -------
YEAR ENDED
OCTOBER 31,
--------------- PERIOD FROM PERIOD FROM PERIOD FROM
PER SHARE OPERATING SIX MONTHS AUGUST 1, 1994 NOVEMBER 1, 1995 AUGUST 14, 1995
PERFORMANCE ENDED APRIL TO TO TO
(FOR A SHARE OUTSTANDING 30, 1997 1996 1995 OCTOBER 31, 1994 AUGUST 16, 1996(G) OCTOBER 31, 1995
THROUGHOUT THE PERIOD) ----------- ---- ---- ---------------- ------------------ ----------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period $ 12.57 $ 10.83 $10.02 $10.00 $10.81 $10.93
------- ------- ------ ------ ------ ------
Income from investment
operations:
Net investment income
(loss) (0.04) 0.16 (0.01) (0.04) 0.18 --
Net realized and
unrealized gain (loss) 1.72 1.58 0.82 0.06 0.93 (0.12)
------- ------- ------ ------ ------ ------
Total from investment
operations 1.68 1.74 0.81 0.02 1.11 (0.12)
------- ------- ------ ------ ------ ------
Less distributions
Dividends from net
investment income (0.06) -- -- -- -- --
Distributions from net
realized gains (0.62) -- -- -- -- --
------- ------- ------ ------ ------ ------
Total distributions (0.68) -- -- -- -- --
------- ------- ------ ------ ------ ------
Change in net asset
value for the period 1.00 1.74 0.81 0.02 1.11 (0.12)
------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 13.57 $ 12.57 $10.83 $10.02 $11.92 $10.81
------- ------- ------ ------ ------ ------
Total Return (b)(c) 14.1 % 16.1% 8.1 % 0.2 % 10.3% (1.1)%
RATIOS TO SUPPLEMENTAL
DATA
Net assets, end of pe-
riod (000 for Class A) $36,520 $23,932 $6,270 $2,516 $ 0 $ 198
Ratio to average net as-
sets:
Expenses (a)(d) 1.91 %(f) 1.98% 4.43 % 6.18 %(f) 1.26%(f) --
Net investment income
(loss) (a)(d) (0.40)%(f) 1.45% (0.53)% (2.47)%(f) 1.89%(f) --
Portfolio turnover rate 19 % 135% 109 % 0 % 135% --
Average Commission rate
paid (e) $ .0159 $ .0040 $.0040
</TABLE>
- --------
(a) Net of fees waived amounting to 0.55%, 1.28% and 1.00% of average net as-
sets for the periods ended October 31, 1996, October 31, 1995 and October
31, 1994, respectively, for Class A Shares.
(b) Does not include maximum sales charge of 4% for Class A Shares. For the pe-
riod ended October 31, 1994, not annualized.
(c) Does not include contingent deferred sales charge for Class B Shares. Not
annualized.
(d) Net of fees waived amounting to 0.63% of average net assets for the period
ended October 31, 1996 for Class B Shares.
(e) Average per share amounts of brokerage commissions on portfolio transac-
tions. Required by regulations issued in 1995.
(f) Annualized.
(g) On August 16, 1996, all Class B Shares were converted into Class A Shares.
Effective February 28, 1997, The Tocqueville Europe Fund changed its name to
The Tocqueville International Value Fund.
12
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
------- -------
PERIOD FROM PERIOD FROM PERIOD FROM
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 4, 1995 NOVEMBER 1, 1995 SEPTEMBER 4, 1995
PERFORMANCE ENDED OCTOBER 31, TO TO TO
(FOR A SHARE OUTSTANDING APRIL 30, 1997 1996 OCTOBER 31, 1995 AUGUST 16, 1996(F) OCTOBER 31, 1995
THROUGHOUT THE PERIOD) -------------- ----------- ----------------- ------------------ -----------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 10.13 $10.05 $10.00 $10.05 $ 9.97
------- ------ ------ ------ ------
Income from investment
operations:
Net investment income 0.27 0.49 0.05 0.32 0.04
Net realized and
unrealized gain (loss) (0.04) 0.08 0.05 (0.05) 0.08
------- ------ ------ ------ ------
Total from investment
operations 0.23 0.57 0.10 0.27 0.12
------- ------ ------ ------ ------
Less distributions
Dividends from net in-
vestment income (0.27) (0.49) (0.05) (0.32) (0.04)
Distributions from net
realized gains (0.03) -- -- -- --
------- ------ ------ ------ ------
Total distributions (0.30) (0.49) (0.05) (0.32) (0.04)
------- ------ ------ ------ ------
Change in net asset
value for the period (0.07) 0.08 0.05 (0.05) 0.08
------- ------ ------ ------ ------
Net asset value, end of
period $ 10.06 $10.13 $10.05 $10.00 $10.05
------- ------ ------ ------ ------
Total Return (b)(c) 2.3% 5.9% 6.3% 2.8% 8.4%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (000 for Class A) $15,381 $9,788 $6,506 $ 0 $ 201
Ratio to average net as-
sets:
Expenses (a)(d) 1.00%(e) 1.47% 2.74%(e) 0.64%(e) --
Net investment income
(a)(d) 5.38%(e) 4.94% 3.08%(e) 5.14%(e) --
Portfolio turnover rate 192%(g) 85% 0% 85% --
</TABLE>
- --------
(a) Net of fees waived amounting to 0.61%, 1.25% and 0.77% of average net as-
sets for the periods ended April 30, 1997, October 31, 1996 and October 31,
1995, respectively, for Class A Shares.
(b) Does not include maximum sales charge of 4% for Class A Shares. For the pe-
riod ended October 31, 1995, not annualized.
(c) Does not include contingent deferred sales charge for Class B Shares. Not
annualized.
(d) Net of fees waived amounting to 1.29% of average net assets for the period
ended October 31, 1996 for Class B Shares.
(e) Annualized.
(f) On August 16, 1996, all Class B Shares were converted into Class A Shares.
(g) Portfolio Turnover does not include securities acquired from Ivy Short Term
Bond Fund on November 29, 1996.
13
<PAGE>
THE TOCQUEVILLE FUND
INVESTMENTS AS OF APRIL 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
COMMON STOCKS--89.5% Shares Value
- -------------------------------------------------------
<S> <C> <C>
BASIC INDUSTRIES--6.5%
Champion International Corporation 25,000 $ 1,162,500
Deltic Timber Corporation 22,142 561,853
Newmont Mining Corporation 40,000 1,385,000
- -------------------------------------------------------
3,109,353
- -------------------------------------------------------
BUSINESS SERVICES--1.0%
H&R Block, Inc. 15,000 483,750
- -------------------------------------------------------
483,750
- -------------------------------------------------------
CAPITAL GOODS--1.2%
ZERO Corp. 30,000 585,000
- -------------------------------------------------------
585,000
- -------------------------------------------------------
COMMUNICATIONS--0.8%
Dow Jones & Company, Inc. 10,000 405,000
- -------------------------------------------------------
405,000
- -------------------------------------------------------
CONGLOMERATE--1.1%
ITT Industries, Inc. 20,000 505,000
- -------------------------------------------------------
505,000
- -------------------------------------------------------
CONSUMER BASICS--14.6%
Bindley Western Industries, Inc. 15,000 281,250
Bristol Myers Squibb Company 30,000 1,965,000
Heinz (H.J.) Company 25,000 1,037,500
PepsiCo, Inc. 30,000 1,046,250
RJR Nabisco Holdings Corp. 50,000 1,487,500
R. P. Scherer Corporation* 25,000 1,150,000
- -------------------------------------------------------
6,967,500
- -------------------------------------------------------
CONSUMER NON-DURABLES--9.1%
Burlington Industries, Inc.* 150,000 1,537,500
Kmart Corporation* 150,000 2,043,750
Polaroid Corporation 15,000 727,500
- -------------------------------------------------------
4,308,750
- -------------------------------------------------------
ENERGY--14.9%
Baker Hughes, Inc. 40,000 1,380,000
Knightsbridge Tankers, Ltd. 20,000 455,000
Murphy Oil Corporation 25,000 1,087,500
SGI International, Inc. 50,000 121,875
Tesoro Petroleum Corporation* 100,000 1,075,000
Varco International, Inc.* 75,000 1,725,000
Western Atlas, Inc.* 20,000 1,240,000
- -------------------------------------------------------
7,084,375
- -------------------------------------------------------
FINANCE--14.9%
BankAmerica Corporation 20,000 2,337,500
Citicorp 20,000 2,252,500
</TABLE>
* Non-income producing security
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
COMMON STOCKS Market
(CONTINUED) Shares Value
- -------------------------------------------------------------------------
<S> <C> <C>
FINANCE (CONTINUED)
Financial Security Assurance Holdings Ltd. 40,000 $ 1,295,000
Hartford Steam Boiler Inspection & Insurance Company 25,000 1,203,125
- -------------------------------------------------------------------------
7,088,125
- -------------------------------------------------------------------------
MACHINERY--0.8%
Albany International Corporation 20,000 402,500
- -------------------------------------------------------------------------
402,500
- -------------------------------------------------------------------------
MEDICAL SERVICES--1.7%
Integrated Health Services, Inc. 25,000 803,125
- -------------------------------------------------------------------------
803,125
- -------------------------------------------------------------------------
METALS & MINERALS--1.3%
Zeigler Coal Holding Company 25,000 628,125
- -------------------------------------------------------------------------
628,125
- -------------------------------------------------------------------------
PUBLISHING--1.0%
Readers Digest Association, Inc. 20,000 460,000
- -------------------------------------------------------------------------
460,000
- -------------------------------------------------------------------------
REAL ESTATE--3.1%
Cattellus Development Corporation* 100,000 1,475,000
- -------------------------------------------------------------------------
1,475,000
- -------------------------------------------------------------------------
SPECIALITY CHEMICALS--0.5%
Safety-Kleen Corporation 15,000 223,125
- -------------------------------------------------------------------------
223,125
- -------------------------------------------------------------------------
TECHNOLOGY--11.4%
Adobe Systems, Inc. 30,000 1,173,750
The Boeing Company 10,000 986,250
International Business Machines Corporation 15,000 2,411,250
Motorola, Inc. 15,000 858,750
- -------------------------------------------------------------------------
5,430,000
- -------------------------------------------------------------------------
UTILITIES--5.6%
AT&T Corporation 40,000 1,340,000
Sprint Corporation 30,000 1,316,250
- -------------------------------------------------------------------------
2,656,250
- -------------------------------------------------------------------------
Total Common Stocks
(Cost $29,908,753) 42,614,978
- -------------------------------------------------------------------------
</TABLE>
14
<PAGE>
THE TOCQUEVILLE FUND
INVESTMENTS AS OF APRIL 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Market
PREFERRED STOCK--0.7% Shares Value
- -----------------------------------------------------------------------------
CONSUMER BASICS--0.7%
Avatex Corp $4.20 Series A Preferred 41,050 $ 313,006
- -----------------------------------------------------------------------------
Total Preferred Stock
(Cost $737,900) 313,006
- -----------------------------------------------------------------------------
<CAPTION>
Principal
Amount
SHORT-TERM INVESTMENTS--9.6% ----------
<S> <C> <C>
U.S. Treasury Bills, 4.89%, 7/10/97 $3,000,000 2,971,068
Repurchase Agreement with Firstar Bank, 4.25%, dated
04/30/97, due 05/01/97, collateralized by U.S. Trea-
sury Notes valued at $1,650,042. Repurchase proceeds
of $1,616,191. (Cost $1,616,000) 1,616,000 1,616,000
- -----------------------------------------------------------------------------
Total Short-Term Investments
(Cost $4,586,498) 4,587,068
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $35,233,151)--99.8% 47,515,052
OTHER ASSETS & LIABILITIES--0.2% 86,614
- -----------------------------------------------------------------------------
TOTAL NET ASSETS--100% $47,601,666
-----------
</TABLE>
* Non-income producing security
See Notes to the Financial Statements.
15
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
INVESTMENTS AS OF APRIL 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
COMMON STOCKS--86.9% Shares Value
- --------------------------------------------------------------
<S> <C> <C>
BUSINESS & DATABASE SERVICES--7.4%
American List Corporation 8,000 $ 185,000
Barrett Business Services, Inc.* 16,000 208,000
Checkpoint Systems, Inc.* 10,000 137,500
Metromail Corporation* 5,000 98,125
Ultrak, Inc.* 35,000 376,250
- --------------------------------------------------------------
1,004,875
- --------------------------------------------------------------
COMMUNICATIONS RELATED--11.3%
Aliant Communications, Inc. 10,000 156,250
Boston Technology, Inc.* 20,000 400,000
Brite Voice Systems, Inc.* 10,000 78,750
C-COR Electronics, Inc.* 20,000 192,500
Periphonics Corporation* 10,000 137,500
InterVoice, Inc.* 15,000 142,500
Scientific-Atlanta, Inc. 27,000 432,000
- --------------------------------------------------------------
1,539,500
- --------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES--17.4%
Alphanet Solutions, Inc.* 10,000 150,000
Cerner Corporation* 10,000 161,250
National Computer Systems, Inc. 20,000 502,500
Systems & Computer Technology Corporation 25,000 493,750
Timberline Software Corporation 11,250 90,000
Unisys Corporation* 100,000 600,000
Wave Technologies International, Inc.* 65,000 373,750
- --------------------------------------------------------------
2,371,250
- --------------------------------------------------------------
CONSUMER NON-DURABLE--5.5%
Franklin Electronic Publishing, Inc.* 30,000 300,000
Franklin Quest Company* 5,000 105,625
J.M. Smucker Company Class B 5,000 83,125
Tasty Baking Company 10,000 165,000
Thomas Nelson, Inc. 10,000 91,250
- --------------------------------------------------------------
745,000
- --------------------------------------------------------------
DRILLING EQUIPMENT & SERVICES--8.1%
Global Industries Ltd.* 6,000 126,000
Nabors Industries, Inc.* 9,000 168,750
Oceaneering International, Inc.* 30,000 435,000
Offshore Logistics, Inc.* 10,000 180,000
Pool Energy Services Co. 15,000 195,000
- --------------------------------------------------------------
1,104,750
- --------------------------------------------------------------
FINANCIAL SERVICES--4.8%
AmVestors Financial Corporation 25,000 400,000
Western National Corporation 10,000 257,500
- --------------------------------------------------------------
657,500
- --------------------------------------------------------------
FURNITURE (RTA)--6.0%
O'Sullivan Industries Holding, Inc.* 60,000 810,000
- --------------------------------------------------------------
810,000
- --------------------------------------------------------------
</TABLE>
* Non-income producing security
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
COMMON STOCKS Market
(CONTINUED) Shares Value
- -------------------------------------------------------------------------------
<S> <C> <C>
HEALTH CARE--11.7%
Ballard Medical Products 5,000 $ 95,000
Bindley Western Industries, Inc. 25,000 468,750
Dendrite International, Inc.* 15,000 125,625
Olsten Corporation 5,000 88,125
Owens & Minor, Inc. Holding Company 50,000 650,000
Utah Medical Products, Inc.* 25,000 165,625
- -------------------------------------------------------------------------------
1,593,125
- -------------------------------------------------------------------------------
MANUFACTURING--11.3%
Daniel Industries 10,000 127,500
Gorman-Rupp Company 18,000 299,250
Holophane Corporation* 8,000 162,000
Juno Lighting, Incorporated 7,000 108,500
Powell Industries, Inc.* 5,000 70,000
PSC, Inc.* 20,000 127,500
Telxon Corporation* 40,000 635,000
- -------------------------------------------------------------------------------
1,529,750
- -------------------------------------------------------------------------------
SPECIALTY CHEMICALS--3.4%
A.Schulman, Inc. 10,000 190,000
Lawter International, Inc. 10,000 106,250
Sybron Chemicals, Inc.* 10,000 163,750
- -------------------------------------------------------------------------------
460,000
- -------------------------------------------------------------------------------
Total Common Stocks
(Cost $10,974,813) 11,815,750
- -------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
U.S. GOVERNMENT AGENCY BONDS--5.2% ---------
<S> <C> <C>
U.S. Treasury Notes:
5.50%, due 07/31/97 $ 200,000 200,125
6.25%, due 06/30/98 500,000 501,250
- -------------------------------------------------------------------------------
Total U.S. Government Agency Bonds
(Cost $700,070) 701,375
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--7.7%
Repurchase Agreement with Firstar Bank, 4.25%, dated
04/30/97, due 05/01/97, collatera1ized by U.S. Treasury
Notes valued at $1,069,752. Repurchase proceeds of
$1,048,124. (Cost $1,048,000) 1,048,000 1,048,000
- -------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $1,048,000) 1,048,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $12,722,883)--99.8% 13,565,125
OTHER ASSETS LESS LIABILITIES--0.2% 26,095
- -------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $13,591,220
-----------
</TABLE>
16
<PAGE>
THE TOCQUEVILLE ASIA-PACIFIC FUND
INVESTMENTS AS OF APRIL 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS--94.5% Shares Value
- ---------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA--3.7%
Normandy Mining Limited 500,000 $ 613,585
QNI Limited 35,000 65,111
- ---------------------------------------------------------------------
678,696
- ---------------------------------------------------------------------
INDONESIA--21.7%
Astra International 350,000 1,281,893
Bukaka Teknik Utam 882,000 553,519
Chareon Pokhand Indonesia* 500,000 504,115
Citra Marga Nusaphala Persada 900,000 787,037
Hero Supermarket* 330,000 285,185
Japfa Comfeed Indonesia 800,000 518,518
- ---------------------------------------------------------------------
3,930,267
- ---------------------------------------------------------------------
JAPAN--15.0%
Bank of Tokyo--Mitsubishi, Ltd. 15,250 241,529
FCC Company Limited 17,600 482,610
H.I.S. Company Limited 3,300 139,114
Mitsui O.S.K. Lines* 33,000 58,506
Oiles Corporation 14,400 354,015
Paramount Bed 21,000 893,546
Rohm Company 7,000 542,747
- ---------------------------------------------------------------------
2,712,067
- ---------------------------------------------------------------------
MALAYSIA--6.0%
Commerce Asset Holdings Bhd. 40,000 239,045
Cycle & Carriage Ltd. 30,000 199,603
Ekran Berhad 65,000 142,431
Ekran Berhad--Rights* 65,000 777
Road Builder (M) Holdings Bhd. 105,000 510,362
- ---------------------------------------------------------------------
1,092,218
- ---------------------------------------------------------------------
NEW ZEALAND--0.6%
Telecom Corporation of New Zealand Limited 25,000 112,165
- ---------------------------------------------------------------------
112,165
- ---------------------------------------------------------------------
PHILIPPINES--11.5%
DMCI Holdings, Inc.* 600,000 307,167
House of Investments, Inc.* 665,000 71,871
Ionics Circuit Inc. 300,000 182,025
Solid Group, Inc.* 2,000,000 424,725
Universal Rightfield Properties Holding, Inc.* 5,500,000 552,711
Universal Robina Corporation 460,000 169,207
Vitarich Corporation* 4,015,000 380,641
- ---------------------------------------------------------------------
2,088,347
- ---------------------------------------------------------------------
</TABLE>
* Non-income producing security
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS--94.5% Shares Value
- ------------------------------------------------------------------------------
<S> <C> <C>
SINGAPORE--21.2%
Development Bank of Singapore 33,000 $ 392,444
Clipsal Industries, Ltd. 160,000 627,200
Elec & Eltek International Company Ltd. 220,000 1,254,000
GPE Industries Limited 953,000 528,915
Robinson & Company, Limited 130,000 656,147
United Overseas Bank Ltd. 40,000 376,127
- ------------------------------------------------------------------------------
3,834,833
- ------------------------------------------------------------------------------
SOUTH KOREA--5.1%
Samsung Display Devices Company* 6,000 279,821
Samsung Electronic* 9,420 639,968
- ------------------------------------------------------------------------------
919,789
- ------------------------------------------------------------------------------
THAILAND--9.7%
Asia Credit Public Company Limited 80,000 300,095
Krung Thai Bank Public Company Limited 340,000 426,219
Siam City Bank Public Company Limited--Registered shares 330,000 268,421
Siam City Bank Public Company Limited 120,000 86,124
Thai Farmers Bank Public Company Limited 59,000 356,822
Thai Farmers Bank Warrants 9/02* 800 582
Thai Military Bank Public Company Limited 220,000 320,000
- ------------------------------------------------------------------------------
1,758,263
- ------------------------------------------------------------------------------
Total Common Stocks and Warrants
(Cost $18,800,911) 17,126,645
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $18,800,911)--94.5% 17,126,645
CASH**--5.6% 1,010,003
LIABILITIES LESS OTHER ASSETS--(0.1%) (20,931)
- ------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $18,115,717
-----------
</TABLE>
** Cash balance is interest earning.
See Notes to the Financial Statements.
17
<PAGE>
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
INVESTMENTS AS OF APRIL 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS--92.3% Shares Value
- ------------------------------------------------------------------
<S> <C> <C>
BERMUDA--1.3%
Knightsbridge Tankers Ltd. 21,000 $ 477,750
- ------------------------------------------------------------------
477,750
- ------------------------------------------------------------------
FRANCE--41.3%
Apem 7,680 447,401
Chaine et Trame 11,600 391,545
Charlatte SA 13,500 160,759
Cider Sante SA 10,850 446,168
Cie Europenne de Telesecurite C.E.T. 2,000 171,339
Compagnie Internationale Andre Triango SA 1,000 27,928
Compagnie des Alpes 11,000 295,903
Distriborg 8,000 585,980
Ducros Services Rapides SA New Shares* 50,000 625,388
Ducros Services Rapides SA* 10 125
Emin--Leydier 6,300 404,789
Europeenne d'Extincteurs 10,500 680,765
Europeenne d'Extincteurs Rights* 10,500 129,892
Faiveley SA 9,700 473,667
Faiveley warrants 7/99* 700 5,589
Fraikin 8,000 494,828
GFI Industries SA 1,500 254,696
HBS Technologie 2,000 84,299
Infra Plus 6,210 367,086
JAJ Distribution SA 4,000 171,065
Labinal SA 3,000 765,887
Lapeyre SA 10,250 618,192
Legrand SA Preferred 2,000 229,595
Louis Dreyfus Citrus* 11,000 395,228
Mediascience S.A. 1,900 174,492
Mors* 850,000 1,179,671
Musee Grevin S.A.* 20,000 394,423
Olitec* 3,000 730,419
Robertet SA 1,130 217,815
Rougier SA 4,400 275,925
Rouleau-Guichard* 2,950 181,962
Rubis et Cie 24,540 645,416
SGS Thomson Microelectrics N.V.* 3,000 231,308
Societe Anonyme Francaise de Reassurances 2,600 645,949
Societe Industrielle D'Aviations Latecoere SA 4,415 671,739
Sport Elec SA 10,547 543,942
Thomson CSF 20,000 616,821
Vilmorin et Compagnie 4,341 349,578
Vilmorin et Compagnie Warrants* 990 11,365
- ------------------------------------------------------------------
15,098,939
- ------------------------------------------------------------------
INDONESIA--1.8%
PT Tunas Ridean 425,000 660,237
- ------------------------------------------------------------------
660,237
- ------------------------------------------------------------------
</TABLE>
* Non-income producing security
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS (CONTINUED) Shares Value
- -------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS--10.6%
ABN Amro Holdings N.V. 8,100 $ 556,740
Axxicon Group N.V. 19,700 338,764
Draka Holding N.V. 15,000 523,585
Elsevier N.V. 20,000 320,311
GTI Holdings N.V. 4,400 535,289
Royal Dutch Petroleum Company 3,700 661,329
Volker Stevin N.V. 8,150 926,656
- -------------------------------------------------------------------------------
3,862,674
- -------------------------------------------------------------------------------
PHILIPPINES--1.7%
Solid Group, Inc. 3,000,000 637,087
- -------------------------------------------------------------------------------
637,087
- -------------------------------------------------------------------------------
SINGAPORE--2.5%
Clipsal Industries, Ltd. 100,000 392,000
Robinson & Co., Limited 101,000 509,776
- -------------------------------------------------------------------------------
901,776
- -------------------------------------------------------------------------------
SPAIN--14.6%
Abengoa S.A.* 12,073 481,019
Autopistas del Mare Nostrum SA 28,000 404,450
Azkoyen SA 5,000 749,615
Banco Santander SA 8,800 662,673
Centros Comerciales Pryca, SA 18,500 321,684
Construcciones y Auxiliar de Ferrocarriles SA 8,400 327,777
Corporacion Bancaria de Espana SA 12,000 535,615
Cubiertas y Mzov SA 6,400 647,996
Energias e Industrias Aragonesas 82,500 502,653
Europistas, Concesionaria Espanola, SA 47,000 390,929
Grupo Anaya SA 15,000 299,846
- -------------------------------------------------------------------------------
5,324,257
- -------------------------------------------------------------------------------
SWITZERLAND--2.5%
Ciba Specialty Chemicals-Registered Shares* 460 39,649
Novartis 460 606,282
SMH AG 450 255,016
- -------------------------------------------------------------------------------
900,947
- -------------------------------------------------------------------------------
THAILAND--5.9%
Krung Thai Bank Public Company Limited 400,000 497,607
Siam City Bank Public Company Limited--Registered shares 251,000 204,162
Thai Stanley Electric Company, Ltd. 156,700 401,871
Thai Stanley Electric Company 35,800 90,442
Thai Farmers Bank Public Company Limited 105,000 458,181
Thai Military Bank Public Company Limited 350,000 509,090
- -------------------------------------------------------------------------------
2,161,353
- -------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
INVESTMENTS AS OF APRIL 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS (CONTINUED) Shares Value
- -----------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM--9.8%
Albert Fisher Group plc 250,000 $ 160,232
Cairn Energy plc* 38,000 343,131
Hardy Oil & Gas plc 80,000 403,054
Jarvis plc 150,000 626,729
Linx Printing Technologies plc 100,000 235,277
LucasVarity 170,000 511,687
SEMA Group plc 45,000 874,379
Shanks & McEwan plc 200,000 438,102
- -----------------------------------------------------------
3,592,591
- -----------------------------------------------------------
UNITED STATES--0.3%
Albany International Corporation 5,200 104,650
- -----------------------------------------------------------
104,650
- -----------------------------------------------------------
Total Common Stocks and Warrants
(Cost $29,679,836) 33,722,261
- -----------------------------------------------------------
TOTAL INVESTMENTS
(COST $29,679,836)--92.3% 33,722,261
CASH**--11.7% 4,262,331
LIABILITIES LESS OTHER ASSETS--(4.0%) (1,464,317)
- -----------------------------------------------------------
TOTAL NET ASSETS--100.0% $36,520,275
-----------
</TABLE>
* Non-income producing security
** Cash balance is interest earning.
See Notes to the Financial Statements.
19
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
INVESTMENTS AS OF APRIL 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Market
Value Value
- ---------------------------------------------------
<S> <C> <C>
MORTGAGE RELATED--32.5%
Federal Home Loan
Mortgage Corporation:
7.00%, due 08/13/01 1,000,000 $ 997,697
7.00%, due 06/24/02 500,000 496,911
7.13%, due 01/28/02 1,010,000 1,008,388
7.18%, due 08/06/02 1,000,000 997,667
7.18%, due 02/13/04 500,000 495,228
7.23%, due 04/08/02 1,000,000 1,000,021
- ---------------------------------------------------
4,995,912
- ---------------------------------------------------
U.S. TREASURY NOTES--16.2%
5.38%, due 11/30/97 2,500,000 2,493,752
- ---------------------------------------------------
2,493,752
- ---------------------------------------------------
U.S. TREASURY STRIPS--47.9%
due 11/15/06 * 14,000,000 7,370,719
- ---------------------------------------------------
7,370,719
- ---------------------------------------------------
</TABLE>
* Principal Only
<TABLE>
<CAPTION>
Par Market
Value Value
- ------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS--2.6%
Repurchase Agreement with Firstar Bank, 3.75%, dated
04/30/97, due 05/01/97, collateralized by U.S. Treasury
Notes valued at $406,574. Repurchase
proceeds of $394,041
(Cost $394,000) $394,000 $ 394,000
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $15,329,374)--99.2% 15,254,383
OTHER ASSETS & LIABILITIES,
NET--0.8% 127,104
- ------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $15,381,487
-----------
</TABLE>
See Notes to the Financial Statements.
20
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE SMALL CAP ASIA- INTERNATIONAL
TOCQUEVILLE VALUE PACIFIC VALUE GOVERNMENT
FUND FUND FUND FUND FUND
----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value* $47,515,052 $13,565,125 $17,126,645 $33,722,261 $15,254,383
Cash** 206 692 1,010,003 4,262,331 940
Receivable for fund
shares sold 57,274 4,300 0 11,800 5,100
Dividends, interest and
other receivables 45,015 14,692 67,055 126,785 130,682
Due from Investment
Adviser 0 0 0 0 3,913
Other assets 55,829 27,956 19,683 44,379 31,280
----------- ----------- ----------- ----------- -----------
Total assets 47,673,376 13,612,765 18,223,386 38,167,556 15,426,298
----------- ----------- ----------- ----------- -----------
LIABILITIES
Payable for investments
purchased 0 0 0 1,572,040 0
Payable for fund shares
repurchased 31,535 0 79,787 0 20,000
Payable to Investment
Adviser 20,994 5,816 12,985 33,984 0
Dividends payable 0 0 0 0 10,606
Accrued distribution fee 9,577 2,746 3,806 7,497 3,194
Accrued expenses and
other liabilities 9,604 12,983 11,091 33,760 11,011
----------- ----------- ----------- ----------- -----------
Total Liabilities 71,710 21,545 107,669 1,647,281 44,811
----------- ----------- ----------- ----------- -----------
NET ASSETS $47,601,666 $13,591,220 $18,115,717 $36,520,275 $15,381,487
----------- ----------- ----------- ----------- -----------
Net assets consisted of:
Paid in capital $32,085,303 $11,827,371 $20,036,194 $31,319,286 $15,383,352
Undistributed net
investment income
(loss) 64,281 (164,113) (22,583) 70,150 0
Accumulated net realized
gain (loss) 3,170,181 1,085,720 (223,628) 1,083,911 73,126
Net unrealized
appreciation
(depreciation) 12,281,901 842,242 (1,674,266) 4,046,928 (74,991)
----------- ----------- ----------- ----------- -----------
Net assets $47,601,666 $13,591,220 $18,115,717 $36,520,275 $15,381,487
----------- ----------- ----------- ----------- -----------
Shares outstanding
(unlimited shares of
$0.01 par value
authorized) 2,874,946 1,096,788 2,052,391 2,691,755 1,528,918
Net asset value and
redemption price per
share $ 16.56 $ 12.39 $ 8.83 $ 13.57 $ 10.06
----------- ----------- ----------- ----------- -----------
Maximum offering price
per share $ 17.25 $ 12.91 $ 9.20 $ 14.14 $ 10.48
----------- ----------- ----------- ----------- -----------
* Cost of Investments $35,233,151 $12,722,883 $18,800,911 $29,679,836 $15,329,374
* Cash balance in Asia-
Pacific Fund and
International Value
Fund are interest
earning balances
</TABLE>
See Notes to the Financial Statements.
21
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF OPERATIONS
Six Months Ended April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE SMALL CAP ASIA- INTERNATIONAL
TOCQUEVILLE VALUE PACIFIC VALUE GOVERNMENT
FUND FUND FUND FUND FUND
----------- --------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends* $ 304,059 $ 36,577 $ 137,192 $ 125,177 $ 0
Interest 106,210 38,337 36,342 91,892 469,830
---------- --------- --------- ---------- --------
410,269 74,914 173,534 217,069 469,830
---------- --------- --------- ---------- --------
EXPENSES:
Investment Adviser's
fee 172,552 45,702 98,357 143,863 36,725
Custodian and fund
accounting fees 16,309 13,198 24,734 31,000 14,876
Transfer agent and
shareholder services 17,447 4,789 4,833 5,031 4,789
Professional fees 25,008 16,061 18,591 19,018 16,633
Distribution fee 57,517 15,787 24,589 35,966 18,362
Administration fee 34,510 9,472 14,754 21,580 11,018
Printing and mailing
expense 3,218 1,942 2,360 1,964 1,411
Registration fees 8,296 8,032 8,252 8,560 8,978
Trustees' fees and
expenses 1,722 905 1,015 1,942 927
Fidelity bond 3,018 1,279 1,147 1,477 1,301
Amortization of
organization costs 0 3,137 0 2,950 2,224
Other 3,620 1,590 1,907 1,810 927
---------- --------- --------- ---------- --------
Total expenses before
waiver 343,217 121,894 200,539 275,161 118,171
Less: Fees waived (21,121) (11,384) (4,422) 0 (44,721)
---------- --------- --------- ---------- --------
Net expenses 322,096 110,510 196,117 275,161 73,450
---------- --------- --------- ---------- --------
NET INVESTMENT
INCOME (LOSS) 88,173 (35,596) (22,583) (58,092) 396,380
---------- --------- --------- ---------- --------
REALIZED AND
UNREALIZED GAIN
(LOSS):
Net realized gain
(loss) on:
Investments 3,435,146 1,007,985 196,477 1,249,475 110,387
Foreign currency
translation 0 0 (6,811) (2,315) 0
Net change in
unrealized
appreciation
(depreciation) 812,089 (624,498) (636,416) 2,332,801 (164,724)
---------- --------- --------- ---------- --------
Net gain (loss) on
investments and
foreign currency 4,247,235 383,487 (446,750) 3,579,961 (54,337)
---------- --------- --------- ---------- --------
NET INCREASE
(DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $4,335,408 $ 347,891 $(469,333) $3,521,869 $342,043
---------- --------- --------- ---------- --------
* Net of Foreign Taxes
Withheld 0 0 18,521 30,888 0
---------- --------- --------- ---------- --------
</TABLE>
See Notes to the Financial Statements
22
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
23
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE TOCQUEVILLE FUND SMALL CAP VALUE FUND
------------------------- -------------------------
SIX MONTHS FOR THE YEAR SIX MONTHS FOR THE YEAR
ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1997 1996 1997 1996
----------- ------------ ----------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss) $ 88,173 $ 172,962 $ (35,596) $ (128,517)
Net realized gain
(loss) on investments
and foreign currency 3,435,146 2,100,811 1,007,985 1,355,990
Net change in
unrealized
appreciation
(depreciation) 812,089 5,298,485 (624,498) 708,913
----------- ----------- ----------- -----------
Net increase
(decrease) in net
assets resulting
from operations 4,335,408 7,572,258 347,891 1,936,386
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income
Class A (161,024) (354,776) 0 0
Class B -- (2) -- 0
Net realized gains
Class A (2,120,046) (2,505,796) (1,277,296) (600,818)
Class B -- (14) -- (12)
FUND SHARE TRANSACTIONS
Class A 3,133,366 4,265,807 2,975,600 827,265
Class B -- (1,507) -- (297)
----------- ----------- ----------- -----------
Net increase
(decrease) in net
assets 5,187,704 8,975,970 2,046,195 2,162,524
NET ASSETS:
Beginning of period 42,413,962 33,437,992 11,545,025 9,382,501
----------- ----------- ----------- -----------
End of period* 47,601,666 42,413,962 13,591,220 11,545,025
----------- ----------- ----------- -----------
* Including
undistributed net
investment income
(loss) of: $ 64,281 $ 137,132 $ (164,113) $ (128,517)
----------- ----------- ----------- -----------
</TABLE>
See Notes to the Financial Statements.
24
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASIA-PACIFIC FUND INTERNATIONAL VALUE FUND GOVERNMENT FUND
--------------------------- ------------------------- -------------------------
SIX MONTHS FOR THE YEAR SIX MONTHS FOR THE YEAR SIX MONTHS FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1997 1996 1997 1996 1997 1996
----------- ------------ ----------- ------------ ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
$ (22,583) $ (5,695) $ (58,092) $ 242,163 $ 396,380 $ 441,237
189,666 (88,699) 1,247,160 1,005,349 110,387 8,831
(636,416) (996,841) 2,332,801 1,432,158 (164,724) 61,953
----------- ----------- ----------- ----------- ----------- ----------
(469,333) (1,091,235) 3,521,869 2,679,670 342,043 512,021
0 0 (113,921) 0 (396,380) (441,229)
-- 0 -- 0 -- (8)
0 0 (1,177,180) 0 (45,262) 0
-- 0 -- 0 -- 0
447,392 14,542,402 10,357,173 14,983,225 5,692,856 3,211,933
-- (202) -- (218) -- (199)
----------- ----------- ----------- ----------- ----------- ----------
(21,941) 13,450,965 12,587,941 17,662,677 5,593,257 3,282,518
18,137,658 4,686,693 23,932,334 6,269,657 9,788,230 6,505,712
----------- ----------- ----------- ----------- ----------- ----------
18,115,717 18,137,658 36,520,275 23,932,334 15,381,487 9,788,230
----------- ----------- ----------- ----------- ----------- ----------
$ (22,583) $ 0 $ 70,150 $ 242,163 $ 0 $ 0
----------- ----------- ----------- ----------- ----------- ----------
</TABLE>
See Notes to the Financial Statements.
25
<PAGE>
THE TOCQUEVILLE TRUST
THE TOCQUEVILLE FUND
THE TOCQUEVILLE SMALL CAP VALUE FUND
THE TOCQUEVILLE ASIA-PACIFIC FUND
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
THE TOCQUEVILLE GOVERNMENT FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
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 Small Cap Value Fund, The
Tocqueville Asia-Pacific Fund, The Tocqueville International Value Fund (for-
merly The Tocqueville Europe Fund) and The Tocqueville Government Fund (the
"Funds"). The objective of The Tocqueville Fund is long-term capital apprecia-
tion, primarily through investments in securities of United States issuers. The
objective of The Tocqueville Small Cap Value Fund is long-term capital appreci-
ation primarily through investments in securities of small capitalization
United States issuers. The objective of The Tocqueville Asia-Pacific Fund is
long-term capital appreciation primarily through investments in securities of
issuers located in Asia and the Pacific Basin. The objective of The Tocqueville
International Value Fund is long-term capital appreciation primarily through
investment in securities of issuers located outside the United States. The ob-
jective of the Tocqueville Government Fund is to provide high current income
consistent with the maintenance of principal and liquidity through investments
in obligations issued or guaranteed by the U.S. Treasury or agencies of the
U.S. Government. The following is a summary of significant accounting princi-
ples followed by the Trust in the preparation of its financial statements.
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
A) 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.
- --------------------------------------------------------------------------------
B) 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.
- --------------------------------------------------------------------------------
C) DEFERRED ORGANIZATION EXPENSES
Expenses incurred in connection with the organization of The Tocqueville
Small Cap Value Fund, The Tocqueville International Value Fund and The
Tocqueville Government Fund are being amortized on a straight-line basis over a
five-year period from each Fund's commencement of operations.
26
<PAGE>
- -------------------------------------------------------------------------------
D) 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 and The Tocqueville International Value Fund are
engaged in transactions in securities denominated in foreign currencies and,
as a result, enter into foreign exchange contracts. The Tocqueville Asia-Pa-
cific Fund and The Tocqueville International Value Fund are exposed to addi-
tional market risk as a result of changes in the value of the underlying cur-
rency in relation to the U.S. dollar. The value of foreign currency contracts
are "marked to market" on a daily basis, which reflects the changes 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 contracts are closed, the Fund
recognizes a realized gain or loss.
The Funds do 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 invest-
ments.
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.
- -------------------------------------------------------------------------------
E) USE OF ESTIMATES
The preparation of financial statements in conformity with generally ac-
cepted accounting principles requires management to make estimates and assump-
tions that effect the reported amounts of assets and liabilities and disclo-
sure of contingent assets and liabilities at the date of the financial state-
ments and the reported amounts of increases and decreases in net assets from
operations during the reporting period. Actual results could differ from those
estimates.
- -------------------------------------------------------------------------------
F) OTHER
Investment and shareowner transactions are recorded no later than the first
business day after the trade date. Dividend income is recognized on the ex-
dividend date or at the time the Fund becomes aware. Interest income is recog-
nized 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 shareholders are recorded
on the ex-dividend date. Expenses incurred by the Trust not specifically iden-
tified to a Fund are allocated on a basis relative to the size of each Fund's
daily net asset value. It is the Trust's policy to take possession of securi-
ties as collateral under repurchase agreements and to determine on a daily ba-
sis that the value of such securities are sufficient to cover the value of the
repurchase agreements.
27
<PAGE>
- --------------------------------------------------------------------------------
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
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% on the first $100
million of its 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. Tocqueville receives a fee from The Tocqueville Small Cap Value
Fund, payable monthly, at an annual rate of .75% on the first $100 million of
its 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.
Tocqueville receives a fee from The Tocqueville Asia-Pacific 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. Tocqueville
receives a fee from The Tocqueville International Value 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. Tocqueville receives a fee
from The Tocqueville Government Fund, payable monthly, at an annual rate of
.50% on 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. With respect to The Tocqueville Government
Fund, the Adviser has agreed to waive its fee or reimburse expenses to the
extent necessary to limit total annual expenses to 1% of the Funds average
daily net assets through November 29, 1999.
Pursuant to an Administrative Services Agreement, each Fund pays to the
Adviser a fee computed and paid monthly at an annual rate of 0.15% of the
average daily net assets of the Fund. For the period ended April 30, 1997, the
Adviser has made payments of $12,750, $8,500, $8,500, $8,500 and $6,375 to
Firstar Trust Company for services provided under a Sub-Administration
agreement for The Tocqueville Fund, The Tocqueville Small Cap Value Fund, The
Tocqueville Asia-Pacific Fund, The Tocqueville International Value Fund and The
Tocqueville Government Fund, respectively.
FOR THE PERIOD ENDED APRIL 30, 1997, THE ADVISER WAIVED THE FOLLOWING FEES BY
FUND:
<TABLE>
<CAPTION>
INTERNATIONAL
TOCQUEVILLE SMALL CAP ASIA PACIFIC VALUE GOVERNMENT
FUND VALUE FUND FUND FUND FUND
----------- ---------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Advisory Fees
waived $21,121 $11,384 $4,422 $ 0 $36,725
Administration
Fees waived $ 0 $ 0 $ 0 $ 0 $ 2,466
Reimbursement by
Advisor $ 0 $ 0 $ 0 $ 0 $ 5,530
</TABLE>
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 six months ended April 30,
1997, the Distributor received net commissions of $5,061 from the sale of the
Trust's shares.
28
<PAGE>
- --------------------------------------------------------------------------------
The Fund has adopted distribution plans related to the sale of shares
pursuant to which the Fund may incur distribution expenses in amounts not to
exceed 0.25% per annum of the average daily net assets. 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 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. The distributor has informed
the trust that, as of April 30, 1997, there were $145,846, $84,114, $75,381,
$86,604 and $40,073 in unreimbursed expenses for The Tocqueville Fund, The
Tocqueville Small Cap Value Fund, The Tocqueville Asia-Pacific Fund, The
Tocqueville International Value Fund, and The Tocqueville Government Fund,
respectively.
Commissions earned by the Distributor for services rendered as a registered
broker-dealer in securities transactions for The Tocqueville Fund, The
Tocqueville Small Cap Value Fund, The Tocqueville Asia-Pacific Fund, The
Tocqueville International Value Fund and The Tocqueville Government Fund for
the six months ended April 30, 1997, were $30,139, $26,094, $0, $1,909 and
$40,702, respectively.
29
<PAGE>
- --------------------------------------------------------------------------------
4. FUND SHARE TRANSACTIONS
The Fund currently offers only one class of shares of beneficial interest. On
August 16, 1996, all previously existing shares of Class B shares of each Fund
were converted at net asset value without the imposition of a deferred sales
charge, into Class A shares of an equivalent value. Transactions in Fund shares
were as follows:
<TABLE>
<CAPTION>
THE THE TOCQUEVILLE
TOCQUEVILLE SMALL CAP VALUE
FUND FUND
--------------------- ---------------------
AMOUNT SHARES AMOUNT SHARES
----------- -------- ----------- --------
<S> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 1997
Class A Shares:
Shares sold $ 3,762,277 227,661 $ 1,991,061 155,020
Shares issued to owners in
reinvestment of dividends 1,891,505 121,328 1,196,250 94,790
Shares issued on Merger 0 0 0 0
Shares redeemed (2,520,416) (150,609) (211,711) (16,260)
----------- -------- ----------- --------
Net Increase $ 3,133,366 198,380 $ 2,975,600 233,550
----------- -------- ----------- --------
YEAR ENDED OCTOBER 31, 1996
Class A Shares:
Shares sold $ 7,400,012 497,009 $ 2,925,368 240,431
Shares issued to owners in
reinvestment of dividends 2,596,698 191,069 523,199 45,103
Shares redeemed (5,743,803) (388,402) (2,632,401) (210,711)
Shares issued from conversion of
Class B 12,900 848 11,099 902
----------- -------- ----------- --------
Net Increase $ 4,265,807 300,524 $ 827,265 75,725
----------- -------- ----------- --------
PERIOD FROM NOVEMBER 1, 1995 TO
AUGUST 16, 1996:
Class B Shares:
Shares sold $ 72,498 4,899 $ 11,000 909
Shares issued to owners in
reinvestment of dividends 12 1 9 1
Shares redeemed (61,117) (4,058) (207) (17)
Conversion to Class A (12,900) (856) (11,099) (909)
----------- -------- ----------- --------
Net increase (decrease) $ (1,507) (14) $ (297) (16)
----------- -------- ----------- --------
</TABLE>
On November 29, 1996, The Tocqueville Government Fund acquired all of the net
assets of Ivy Short Term Bond Fund pursuant to a plan of reorganization
approved by Ivy Short Term Bond shareholders on November 15, 1996. The
acquisition was accomplished by a tax free exchange of shares of The
Tocqueville Government Fund for the net assets of Ivy Short Term Bond Fund
which aggregated $5,723,220 including unrealized appreciation of $28,973. The
combined net assets of The Tocqueville Government Fund immediately after the
merger were $15,696,605.
30
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE TOCQUEVILLE THE TOCQUEVILLE THE TOCQUEVILLE
ASIA-PACIFIC INTERNATIONAL VALUE GOVERNMENT
FUND FUND FUND
- ------------------------ ------------------------- ------------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
- ----------- --------- ----------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
$ 2,401,334 264,729 $ 9,505,766 712,373 $ 3,346,890 334,106
0 0 1,280,388 107,056 360,987 35,865
0 0 0 0 5,723,220 563,864
(1,953,941) (210,187) (428,981) (31,666) (3,738,241) (371,156)
- ----------- --------- ----------- --------- ----------- --------
$ 447,393 54,542 $10,357,173 787,763 $ 5,692,856 562,679
- ----------- --------- ----------- --------- ----------- --------
$14,962,597 1,525,330 $15,071,859 1,332,335 $ 6,770,116 672,706
0 0 0 0 342,832 34,393
(420,195) (43,921) (88,634) (7,382) (3,901,015) (388,010)
0 0 0 0 0 0
- ----------- --------- ----------- --------- ----------- --------
$14,542,402 1,481,409 $14,983,225 1,324,953 $ 3,211,933 319,089
- ----------- --------- ----------- --------- ----------- --------
$ 0 0 $ 0 0 $ 0 0
0 0 0 0 7 1
(202) (21) (218) (18) (206) (21)
0 0 0 0 0 0
- ----------- --------- ----------- --------- ----------- --------
$ (202) (21) $ (218) (18) $ (199) (20)
- ----------- --------- ----------- --------- ----------- --------
</TABLE>
31
<PAGE>
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term instru-
ments) for the six months ended April 30, 1997 were as follows:
<TABLE>
<CAPTION>
THE SMALL CAP ASIA- INTERNATIONAL
TOCQUEVILLE VALUE PACIFIC VALUE GOVERNMENT
FUND FUND FUND FUND FUND
----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
PURCHASES
U.S. Government $ 0 $ 0 $ 0 $ 0 $21,092,664
Other 9,990,647 5,744,075 4,452,722 18,991,431 0
----------- ----------- ----------- ----------- -----------
$ 9,990,647 $ 5,744,075 $ 4,452,722 $18,991,431 $21,092,664
----------- ----------- ----------- ----------- -----------
SALES
U.S. Government $ 0 $ 0 $ 0 $ 0 $18,380,309
Other 10,491,145 5,107,904 3,637,789 4,701,352 0
----------- ----------- ----------- ----------- -----------
$10,491,145 $ 5,107,904 $ 3,637,789 $ 4,701,352 $18,380,309
----------- ----------- ----------- ----------- -----------
Unrealized appreciation (depreciation) at April 30, 1997 based on cost of se-
curities for Federal tax purposes is as follows:
<CAPTION>
THE SMALL CAP ASIA- INTERNATIONAL
TOCQUEVILLE VALUE PACIFIC VALUE GOVERNMENT
FUND FUND FUND FUND FUND
----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Gross unrealized appre-
ciation $13,667,171 $ 1,653,601 $ 2,309,008 $ 5,404,300 $ 0
Gross unrealized depre-
ciation (1,626,250) (848,808) (3,986,748) (1,361,875) (85,222)
----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation
(depreciation) $12,040,921 $ 804,793 $(1,677,740) $ 4,042,425 $ (85,222)
----------- ----------- ----------- ----------- -----------
Cost of investments $35,474,131 $12,760,332 $18,804,385 $29,679,836 $15,339,605
----------- ----------- ----------- ----------- -----------
</TABLE>
32
<PAGE>
- --------------------------------------------------------------------------------
6. SUBSEQUENT EVENTS
On May 1, 1997, pursuant to a Plan of Reorganization and Liquidation approved
by shareholders on April 29, 1997, the assets of The Tocqueville Asia-Pacific
Fund were transferred to The Tocqueville International Value Fund. The
reorganization was accomplished by a tax fee exchange of shares of The
Tocqueville International Value Fund for the net assets of The Tocqueville
Asia-Pacific Fund which aggregated $18,094,141 including $1,674,266 of
unrealized depreciation. The combined net assets of The Tocqueville
International Value Fund immediately after the merger were $54,635,992. There
were capital losses of $213,337 from The Tocqueville Asia-Pacific Fund
available to be utilized by The Tocqueville International Value Fund to offset
future gains. Such losses expire between October 31, 2003 and 2004.
33
<PAGE>
The Tocqueville Europe Fund
- --------------------------------------------------------------------------------
SPECIAL MEETING OF SHAREHOLDERS, FEBRUARY 27, 1997
A Special Meeting of Shareholders of The Tocqueville Europe Fund was held on
February 27, 1997, at the offices of Tocqueville Asset Management, 1675 Broad-
way, New York, New York 10019. The purpose of the meeting was to approve a re-
statement of the Fund's investment objective.
The results of the voting at the Special Meeting of Shareholders was as fol-
lows:
Approval of a restatement of the Fund's Investment Objective, including
changing the name from The Tocqueville Europe Fund to The Tocqueville Interna-
tional Value Fund:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF % OF
NO. OF SHARES OUTSTANDING SHARES SHARES VOTED
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
For............................... 2,098,973.420 95.39% 100.00%
Against........................... 0 0.00% 0.00%
Abstain........................... 0 0.00% 0.00%
</TABLE>
- --------------------------------------------------------------------------------
34
<PAGE>
The Tocqueville Asia-Pacific Fund
- --------------------------------------------------------------------------------
SPECIAL MEETING OF SHAREHOLDERS, APRIL 29, 1997
A Special Meeting of Shareholders of The Tocqueville Asia-Pacific Fund was
held on April 29, 1997 at the offices of Tocqueville Asset Management, 1675
Broadway, New York, New York 10019. The purpose of the meeting was to approve a
Plan of Reorganization and Liquidation providing for the transfer of the assets
of the Asia-Pacific Fund to The Tocqueville International Value Fund and the
distribution of such shares to shareholders of the Asia-Pacific Fund in liqui-
dation of the Asia-Pacific Fund.
The results of the voting at the Special Meeting of Shareholders was as fol-
lows:
Approval of a Plan of Reorganization and Liquidation providing for the
transfer of the assets of the Asia- Pacific Fund to The Tocqueville Interna-
tional Value Fund and the distribution of such shares to shareholders of the
Asia-Pacific Fund in liquidation of the Asia-Pacific Fund:
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
% OF % OF
NO. OF SHARES OUTSTANDING SHARES SHARES VOTED
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
For............................... 1,937,951.941 94.13% 100.00%
Against........................... 0 0.00% 0.00%
Abstain........................... 0 0.00% 0.00%
</TABLE>
- --------------------------------------------------------------------------------
35
<PAGE>
- --------------------------------------------------------------------------------
This report is not authorized for distribution to prospective investors unless
preceded
or accompanied by a currently effective prospectus of The Tocqueville Trust.
Please call 1-800-697-FUND (3863) for a free prospectus. Read it carefully be-
fore
you invest.
36
<PAGE>
INVESTMENT ADVISER
Tocqueville Asset Management L.P.
1675 Broadway
New York, NY 10019
Phone: (212) 698-0800
DISTRIBUTOR
Tocqueville Securities L.P.
1675 Broadway
New York, NY 10019
Phone: (212) 698-0800
SHAREHOLDERS' SERVICING,
CUSTODIAN AND TRANSFER AGENT
Firstar Trust Company
Mutual Fund Services
P.O. Box 701
Milwaukee, WI 53201-0701
Toll Free Phone: (800) 697-3863
BOARD OF TRUSTEES
Francois Sicart - Chairman
Bernard F. Combemale
James B. Flaherty
Inge Heckel
Robert W. Kleinschmidt
Francois Letaconnoux
