<PAGE>
SEMI-ANNUAL REPORT
April 30, 1998
THE TOCQUEVILLE TRUST
MUTUAL FUNDS
The Tocqueville Fund
The Tocqueville Small Cap Value Fund
The Tocqueville International Value Fund
The Tocqueville Government Fund
(LOGO)
<PAGE>
The Tocqueville Fund
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDER:
Investment performance for the six-month period ending April 30, 1998 was
12.13%. This compares with 22.49% for the S&P 500 over the same period. The
relative underperformance of the fund reflects, in part, our high cash position
of almost 20% during much of the first half of our fiscal year. But many of our
stocks also underperformed during the period. As contrarian value investors, we
seek opportunities to find solid long-term values among companies, which are
currently out of favor and where the consensus is profoundly negative. Over the
long periods of time, this approach has served us well. But it does have its
risks, the primary one being a period of underperformance when momentum carries
the broad market to dizzying heights.
With capital preservation our primary investment goal, we continue to
believe caution is warranted in approaching the equity markets. When good
values appear, however, we are not opposed to taking a position.
On the other hand, many stocks have approached prices which more than
adequately discount the favorable outlook we foresee over the next three to
five years. When this is the case, we are not averse to trimming our positions.
This has not yet occurred in Kmart, now our largest position and the one that
contributed most positively to our six-month results. Citicorp, long a favorite
and a stock that had a very positive impact on results for the first six
months, did come very close to our target levels in the period and we reduced
the position as a result. Newmont Mining and Baker Hughes, two of our largest
holdings, were the two most negative contributors over the period. We continue
to view both, however, as solid long-term investments, and have added to our
holdings.
Much has been written on the situation in Asia and the impact that could
have on domestic markets. While the economic effects have yet to work
themselves out, we believe the market impact has been largely discounted.
Consequently, we are looking for ways to invest in a rebound in Asian markets
as perceptions change. One way to do this is through the commodities markets.
Currently we see both value and an opportunity to go against the consensus
in companies that produce commodities, such as paper, lumber, metals, and oil
and gas. Expectations regarding commodity prices are as low as we can remember.
Even a slight change in perception, coupled with the relatively good
supply/demand characteristics of the commodity markets, could generate sizable
upward moves in these shares. At the same time, from these levels, we see
little downside risk.
As large shareholders of the Fund ourselves, we continue to look for
opportunities, such as these, for meaningful long-term gains and minimal short-
term risks.
Robert W. Kleinschmidt
Francois Sicart
Portfolio Managers
1
<PAGE>
The Tocqueville Small Cap Value Fund
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDER:
I am pleased to report that the Tocqueville Small Cap Value Fund has contin-
ued its excellent performance. For the six and twelve months periods ended
April 30, 1998, your portfolio of value-stocks posted gains of 11.6% and 46.8%
to $16.22 per share. These performance numbers compare with returns of 11.9%
and 42.4% for the Russell 2000 Index over the same periods. Since its creation
on August 1, 1994, your Fund has appreciated 121.4% versus 109.2% for that in-
dex. I will try my best to maintain that performance in the future.
Our strong performance since inception validates our long-term value-ori-
ented strategies. We invest in good businesses with strong finances and solid
long-term growth potential, but only when they are down substantially in price.
For example, we bought our forty stocks at 46% and 35% below their 60 and 12
months highs, respectively. Overall, including our recent purchases, two thirds
of our current holdings are stocks which have not participated much in the re-
cent bull market. This value- investing strategy should limit our market risk
somewhat over the short term. Conversely, it should give us plenty of room for
upside surprises over the long term, if we are correct in our assessment of the
business fundamentals and potential of our recent stock selections.
In retrospect, that strong performance also reflects the fact that we ini-
tially picked some out-of- favor stocks which are now delivering strong and
sustainable flows of earnings. I also reflects my strategy of letting most of
my winners run, and selling my losers. To be more specific, our initial invest-
ments in Systems & Computer Technology, Telxon Corp., Timberline Software and
Unisys have more than tripled from our original cost, while National Computer
Systems and O'Sullivan Industries are up substantially. These stocks are still
in our portfolio, and four are among our ten largest positions. Losers are sold
quickly, and realized losses have been small relative to our cost.
Looking at the portfolio in 1999 strategic terms, investments in broadly de-
fined "service industries" account for about 46% of assets. Communication sec-
tors for CATV and computer/telephony integration represent another 22%. As a
result, the Fund now has a higher mix of investments in sunrise industries, and
a higher growth profile. Remaining assets are spread across severely depressed
sectors: consumer non-durable (8%), chemicals (4%), manufacturing (8%), pre-
cious metals (6%), cash equivalents (6%).
In closing, let me express my gratitude for your choosing the Tocqueville
Small Cap Value Fund to realize your long-term investment objectives.
Jean-Pierre Conreur
Portfolio Manager
2
<PAGE>
The Tocqueville International Value Fund
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDER:
The last six months certainly were eventful ones for the Tocqueville Inter-
national Value Fund. While the fund's net asset value continued to suffer from
the Asian flu through December, a sharp bounce back in early 1998 allowed it to
edge up by 0.27% for the first half of our fiscal year vs. 15.44% for the Mor-
gan Stanley EAFE index.
Our commitment to Asia remains unchanged--in fact, it has strengthened.
While the daily news remains unsettling, the restructuring of the region's
economies is progressing as anticipated--including the current social turmoil.
As we had expected, governments, which generally had relatively low debt bur-
dens, are beginning to borrow on international markets to acquire distressed
assets and rebuild functional banking systems at home. The bottlenecks that
initially prevented the local exporters to fully benefit from currency devalua-
tions are easing, so that the economies' rate of contraction will soon abate.
Meanwhile, corporations are being reshaped through mergers, asset sales and
share repurchases, with a new focus on better capital utilization and higher
returns on equity. This should produce a very strong rebound of corporate prof-
its, once the pace of economic activity re-accelerates even moderately. And,
through it all, democracy seems to be surviving--indeed gaining ground--while
cooperation with the IMF remains a priority for most governments.
While financial investors remain shy, foreign companies are actively shop-
ping around for acquisitions and joint ventures, and domestic mergers and ac-
quisitions are also picking up. This should help heal the scars of past finan-
cial mistakes, prime the pump for renewed inflows of foreign capital and boost
stock market valuations.
We believe that the spectacular rebound of Asian stock markets and curren-
cies, in the first calendar quarter of 1998, gives us a preview of the opportu-
nities that are available in Asia when economies and financial markets stabi-
lize.
As a result, the Fund's commitment to the region remains significant. It may
even increase somewhat in the next several months, as we uncover more Asian
values in the rubble of recent months while the "euro-phoric" performance of
stock markets leads us to take more profits in Europe. In particular, Japan,
where our exposure has been relatively small, seems to offer an unusual combi-
nation of widespread investor gloom and strong sub-surface improvements: as a
result, we are now actively looking for undervalued long-term investments in
that country.
Francois Sicart
Portfolio Manager
3
<PAGE>
The Tocqueville Government Fund
- --------------------------------------------------------------------------------
DEAR FELLOW SHAREHOLDER:
For the six-month period ended April 30, 1998, the Tocqueville Government
Fund generated a total return of 2.26%. This compares with 3.05% recorded by
the Lehman Brothers Intermediate Term Government Index. Your fund continued to
generate less total return than the Index, reflecting its more conservative
posture than bonds that make up the Index. We have structured the portfolio to
generate returns, which are attractive relative to available money market
rates, without exposing our shareholders to the vicissitudes of the bond mar-
ket. Our average maturity was only 2.2 years at the end of our six month fiscal
period while our duration, a measure of vulnerability to rising rates, was a
mere 3.4 years.
We continue to believe that the risks associated with longer-term maturities
are too great relative to the extra return available. With the yield curve as
flat as it is, the only reason to hold longer-term maturities is a conviction
that long rates will continue to fall. We do believe that long rates could go
lower if the U.S. economy falters, but we also believe that the Fed is deter-
mined to keep the U.S. recovery going. Consequently, in the current economic
cycle, at least, the case for still lower long rates is not compelling and not
worth the risk. We will stick to our cautious posture on the bond market until
potential returns outweigh the risks. In the meanwhile, we will continue to be
content with returns, which are attractive relative to money market instru-
ments.
Robert W. Kleinschmidt
Portfolio Manager
4
<PAGE>
THE TOCQUEVILLE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<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 1998 1997 1996 1995 1994 1993 1996 (G) 1995
THROUGHOUT THE PERIOD) ---------- ---- ---- ---- ---- ---- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of
period $ 20.21 $ 15.85 $ 14.07 $ 13.74 $ 13.67 $ 11.83 $14.01 $14.68
------- ------- ------- ------- ------- ------- ------ ------
Income from investment
operations:
Net investment income 0.05 0.06 0.07 0.15 0.12 0.11 0.12 --
Net realized and
unrealized gain (loss) 2.06 5.15 2.92 1.70 0.88 2.55 2.15 (0.67)
------- ------- ------- ------- ------- ------- ------ ------
Total from investment
operations 2.11 5.21 2.99 1.85 1.00 2.66 2.27 (0.67)
------- ------- ------- ------- ------- ------- ------ ------
Less distributions
Dividends from net in-
vestment income (0.06) (.06) (0.15) (0.11) (0.14) (0.16) (0.15) --
Distributions from net
realized gains (2.28) (.79) (1.06) (1.41) (0.79) (0.66) (1.06) --
------- ------- ------- ------- ------- ------- ------ ------
Total distributions (2.34) (.85) (1.21) (1.52) (0.93) (0.82) (1.21) --
------- ------- ------- ------- ------- ------- ------ ------
Change in net asset
value for the period (0.23) 4.36 1.78 0.33 0.07 1.84 1.06 (0.67)
------- ------- ------- ------- ------- ------- ------ ------
Net asset value, end of
period $ 19.98 $ 20.21 $ 15.85 $ 14.07 $ 13.74 $ 13.67 $15.07 $14.01
------- ------- ------- ------- ------- ------- ------ ------
Total Return (b)(c) 12.1%(h) 34.5% 22.7% 16.0% 7.7% 23.7% 17.2 % (4.6)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (000 for Class A) $74,905 $64,998 $42,414 $33,438 $29,140 $27,745 $ 0 $ 191
Ratio to average net as-
sets:
Expenses (a)(d) 1.40%(f) 1.40% 1.49% 1.54% 1.54% 1.56% 1.98 %(f) --
Net investment income
(loss) (a)(d) 0.52%(f) 0.34% 0.44% 1.07% 0.87% 0.96% (0.21)%(f) --
Portfolio turnover rate 9% 48% 48% 47% 52% 54% 48 % --
Average commission rate
paid (e) $ .0600 $ .0599 $ .0596 $.0596
</TABLE>
- --------
(a) Net of fees waived amounting to 0.25%, 0.16% and 0.02% of average net as-
sets for the periods ended October 31, 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.
(h) Not annualized.
5
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
----------------------------------------------------------- -----------------------------------
SIX
MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, -------------------------- PERIOD FROM PERIOD FROM PERIOD FROM
PER SHARE OPERATING AUGUST 1, 1994 NOVEMBER 1, 1995 AUGUST 14, 1995
PERFORMANCE TO TO TO
(FOR A SHARE OUTSTANDING 1998 1997 1996 1995 OCTOBER 31, 1994 AUGUST 16, 1996(G) OCTOBER 31, 1995
THROUGHOUT THE PERIOD) --------- ------- ------- ------ ---------------- ------------------ ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 16.30 $ 13.37 $ 11.91 $10.22 $10.00 $11.87 $12.35
------- ------- ------- ------ ------ ------ ------
Income from investment
operations:
Net investment income
(loss) (0.07) (0.05) (0.10) (0.05) 0.02 (0.07) --
Net realized and
unrealized gain (loss) 1.72 4.44 2.33 1.96 0.20 1.18 (0.48)
------- ------- ------- ------ ------ ------ ------
Total from investment
operations 1.65 4.39 2.23 1.91 0.22 1.11 (0.48)
------- ------- ------- ------ ------ ------ ------
Less distributions
Dividends from net
investment income -- -- -- (0.03) -- -- --
Distributions from net
realized gains (1.73) (1.46) (0.77) (0.19) -- (0.77) --
------- ------- ------- ------ ------ ------ ------
Total distributions (1.73) (1.46) (0.77) (0.22) -- (0.77) --
------- ------- ------- ------ ------ ------ ------
Change in net asset
value for the period (0.08) 2.93 1.46 1.69 0.22 0.34 (0.48)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 16.22 $ 16.30 $ 13.37 $11.91 $10.22 $12.21 $11.87
------- ------- ------- ------ ------ ------ ------
Total Return (b)(c) 11.6%(h) 36.0% 19.7 % 19.2 % 2.2% 9.7 % (3.9)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period
(000 for Class A) $27,841 $20,587 $11,545 $9,383 $6,755 $ 0 $ 192
Ratio to average net
assets:
Expenses (a)(d) 1.69 %(f) 1.75 % 2.36 % 2.50 % 2.08%(f) 2.92 %(f) --
Net investment income
(loss) (a)(d) (1.06)%(f) (.81)% (1.18)% (0.53)% 0.85%(f) (1.79)%(f) --
Portfolio turnover rate 17% 95% 107 % 88 % 9% 107 %
Average commission rate
paid(e) $ .0600 $ .0600 $ .0599 $.0599
</TABLE>
- --------
(a) Net of fees waived amounting to 0.35%, 0.33%, 0.33% and 0.75% of average
net assets for the periods ended October 31, 1997, October 31, 1996, Octo-
ber 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.
(h) Not annualized.
6
<PAGE>
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
--------------------------------------------------------- -----------------------------------
SIX
MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, -------------------------
PER SHARE OPERATING PERIOD FROM PERIOD FROM PERIOD FROM
PERFORMANCE AUGUST 1, 1994 NOVEMBER 1, 1995 AUGUST 14, 1995
(FOR A SHARE TO TO TO
OUTSTANDING THROUGHOUT 1998 1997 1996 1995 OCTOBER 31, 1994 AUGUST 16, 1996(G) OCTOBER 31, 1995
THE PERIOD) --------- ------- ------- ------ ---------------- ------------------ ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 10.19 $ 12.57 $ 10.83 $10.02 $10.00 $10.81 $10.93
------- ------- ------- ------ ------ ------ ------
Income from investment
operations:
Net investment income
(loss) 0.06 (.03) 0.16 (0.01) (0.04) 0.18 --
Net realized and
unrealized gain (loss) (0.05) (1.67) 1.58 0.82 0.06 0.93 (0.12)
------- ------- ------- ------ ------ ------ ------
Total from investment
operations 0.01 (1.70) 1.74 0.81 0.02 1.11 (0.12)
------- ------- ------- ------ ------ ------ ------
Less distributions
Dividends from net
investment income (0.11) (0.06) -- -- -- -- --
Distributions from net
realized gains -- (0.62) -- -- -- -- --
------- ------- ------- ------ ------ ------ ------
Total distributions (0.11) (0.68) -- -- -- -- --
------- ------- ------- ------ ------ ------ ------
Change in net asset
value for the period (0.10) (2.38) 1.74 0.81 0.02 1.11 (0.12)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 10.09 $ 10.19 $ 12.57 $10.83 $10.02 $11.92 $10.81
------- ------- ------- ------ ------ ------ ------
Total Return (b)(c) 0.3%(h) (14.3)% 16.1% 8.1 % 0.2 % 10.3% (1.1)%
RATIOS TO SUPPLEMENTAL
DATA
Net assets, end of
period (000 for Class
A) $75,498 $60,963 $23,932 $6,270 $2,516 $ 0 $ 198
Ratio to average net
assets:
Expenses (a)(d) 1.77%(f) 1.99% 1.98% 4.43 % 6.18 %(f) 1.26%(f) --
Net investment income
(loss) (a)(d) 1.30%(f) .16% 1.45% (0.53)% (2.47)%(f) 1.89%(f) --
Portfolio turnover rate 39% 70% 135% 109 % 0 % 135% --
Average Commission rate
paid (e) $ .0026 $ .0052 $ .0040 $.0040
</TABLE>
- --------
(a) Net of fees waived amounting to 0.11%, 0.55%, 1.28% and 1.00% of average
net assets for the periods ended October 31, 1997, October 31, 1996, Octo-
ber 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.
(h) Not annualized.
Effective February 28, 1997, The Tocqueville Europe Fund changed its name to
The Tocqueville International Value Fund.
7
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
-------------------------------------------------- ------------------------------------
SIX
MONTHS YEAR ENDED PERIOD FROM PERIOD FROM PERIOD FROM
PER SHARE OPERATING ENDED OCTOBER 31, SEPTEMBER 4, 1995 NOVEMBER 1, 1995 SEPTEMBER 4, 1995
PERFORMANCE APRIL 30, ------------------ TO TO TO
(FOR A SHARE OUTSTANDING 1998 1997 1996 OCTOBER 31, 1995 AUGUST 16, 1996(F) OCTOBER 31, 1995
THROUGHOUT THE PERIOD) --------- ------- ------ ----------------- ------------------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period $ 10.11 $ 10.13 $10.05 $10.00 $10.05 $ 9.97
------- ------- ------ ------ ------ ------
Income from investment
operations:
Net investment income 0.24 0.52 0.49 0.05 0.32 0.04
Net realized and
unrealized gain (loss) (0.01) 0.01 0.08 0.05 (0.05) 0.08
------- ------- ------ ------ ------ ------
Total from investment
operations 0.23 0.53 0.57 0.10 0.27 0.12
------- ------- ------ ------ ------ ------
Less distributions
Dividends from net in-
vestment income (0.24) (0.52) (0.49) (0.05) (0.32) (0.04)
Distributions from net
realized gains -- (0.03) -- -- -- --
------- ------- ------ ------ ------ ------
Total distributions (0.24) (0.55) (0.49) (0.05) (0.32) (0.04)
------- ------- ------ ------ ------ ------
Change in net asset
value for the period (0.01) (0.02) 0.08 0.05 (0.05) 0.08
------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 10.10 $ 10.11 $10.13 $10.05 $10.00 $10.05
------- ------- ------ ------ ------ ------
Total Return (b)(c) 2.3%(h) 5.4% 5.9% 6.3% 3.6% 8.4%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod
(000 for Class A) $16,723 $16,808 $9,788 $6,506 $ 0 $ 201
Ratio to average net as-
sets:
Expenses (a)(d) 1.00%(e) 1.00% 1.47% 2.74%(e) 0.64%(e) --
Net investment income
(a)(d) 4.77%(e) 5.17% 4.94% 3.08%(e) 5.14%(e) --
Portfolio turnover rate 79% 339%(g) 85% 0% 85% --
</TABLE>
- --------
(a) Net of fees waived amounting to 0.60%, 0.91%, 1.25% and 0.77% of average
net assets for the periods ended April 30, 1998, October 31, 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.
(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.
(h) Not annualized.
8
<PAGE>
THE TOCQUEVILLE FUND
INVESTMENTS AS OF APRIL 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
COMMON STOCKS--87.7% Shares Value
- ------------------------------------------------------------------------
<S> <C> <C>
BASIC INDUSTRIES--9.2%
Champion International Corporation 25,000 $1,345,312
Deltic Timber Corporation 25,000 714,062
Longview Fibre Company 65,000 1,100,938
Newmont Mining Corporation 100,000 3,218,750
Stillwater Mining Company* 20,000 528,750
- ------------------------------------------------------------------------
6,907,812
- ------------------------------------------------------------------------
BUSINESS SERVICES--1.5%
H&R Block, Inc. 25,000 1,125,000
Siebel Systems, Inc. 266 6,883
- ------------------------------------------------------------------------
1,131,883
- ------------------------------------------------------------------------
CONGLOMERATE--1.7%
ITT Industries, Inc. 35,000 1,275,312
- ------------------------------------------------------------------------
1,275,312
- ------------------------------------------------------------------------
CONSUMER BASICS--6.7%
Bristol Myers Squibb Company 25,000 2,646,875
R.P. Scherer Corporation* 25,000 1,825,000
Tenneco Inc. 13,500 581,344
- ------------------------------------------------------------------------
5,053,219
- ------------------------------------------------------------------------
CONSUMER NON-DURABLES--10.2%
Burlington Industries, Inc.* 150,000 2,625,000
Kmart Corporation* 200,000 3,487,500
Polaroid Corporation 35,000 1,540,000
- ------------------------------------------------------------------------
7,652,500
- ------------------------------------------------------------------------
ENERGY--12.6%
Baker Hughes, Inc. 40,000 1,620,000
Burlington Resources, Inc. 25,000 1,175,000
Knightsbridge Tankers, Ltd. 30,000 862,500
Murphy Oil Corporation 30,000 1,543,125
Tesoro Petroleum Corporation* 100,000 1,987,500
Varco International, Inc. 60,000 1,845,000
Western Atlas, Inc.* 5,000 395,000
- ------------------------------------------------------------------------
9,428,125
- ------------------------------------------------------------------------
FINANCE--13.0%
BankAmerica Corporation 40,000 3,400,000
Citicorp 15,000 2,257,500
Financial Security Assurance Holdings Ltd. 40,000 2,395,000
Hartford Steam Boiler Inspection & Insurance Company 25,000 1,650,000
- ------------------------------------------------------------------------
9,702,500
- ------------------------------------------------------------------------
MEDICAL SERVICES--4.3%
Amgen, Inc.* 15,000 894,375
Genzyme Corporation* 25,000 773,437
Integrated Health Services, Inc. 40,000 1,542,500
- ------------------------------------------------------------------------
3,210,312
- ------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
<TABLE>
<CAPTION>
COMMON STOCKS Market
(CONTINUED) Shares Value
- -----------------------------------------------------------------------------
<S> <C> <C>
METALS & MINERALS--3.3%
Alumax, Inc. 20,000 $ 987,500
Aluminum Company of America 10,000 775,000
Inco, Ltd. 40,000 702,500
- -----------------------------------------------------------------------------
2,465,000
- -----------------------------------------------------------------------------
PUBLISHING--2.9%
Golden Books Family Entertainment, Inc.* 75,000 848,438
Readers Digest Association, Inc. 50,000 1,343,750
- -----------------------------------------------------------------------------
2,192,188
- -----------------------------------------------------------------------------
REAL ESTATE--2.4%
Cattellus Development Corporation* 100,000 1,781,250
- -----------------------------------------------------------------------------
1,781,250
- -----------------------------------------------------------------------------
TECHNOLOGY--10.7%
Adobe Systems, Inc. 50,000 2,503,125
The Boeing Company 20,000 1,001,250
International Business Machines Corporation 25,000 2,896,875
Motorola, Inc. 25,000 1,390,625
UNOVA, Inc.* 10,000 232,500
- -----------------------------------------------------------------------------
8,024,375
- -----------------------------------------------------------------------------
UTILITIES--9.2%
AT&T Corporation 50,000 3,003,125
Sprint Corporation 30,000 2,049,375
Waste Management, Inc. 55,000 1,842,500
- -----------------------------------------------------------------------------
6,895,000
- -----------------------------------------------------------------------------
Total Common Stocks (Cost $40,453,382) 65,719,476
- -----------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--13.1% Amount
----------
U.S. Treasury Bills:
5.01% due 05/28/98 $1,500,000 1,494,358
4.92% due 08/20/98 1,500,000 1,477,245
5.02% due 06/18/98 1,500,000 1,489,967
4.82% due 07/30/98 1,500,000 1,481,925
5.00% due 09/24/98 1,500,000 1,469,583
Repurchase Agreement with Firstar Bank 4.25%, dated
04/30/98, due 05/01/98, collateralized by Federal
Home Adjustable Rate Mortgage valued at
$2,462,010. Repurchase proceeds of $2,414,285.
(Cost $2,414,000) 2,414,000 2,414,000
- -----------------------------------------------------------------------------
Total Short-Term Investments (Cost $9,825,931) 9,827,078
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $50,279,313)--100.8% 75,546,554
LIABILITIES LESS OTHER ASSETS--(0.8)% (642,015)
- -----------------------------------------------------------------------------
TOTAL NET ASSETS--100% $74,904,539
-----------
</TABLE>
See Notes to the Financial Statements.
9
<PAGE>
THE TOCQUEVILLE SMALL CAP VALUE FUND
INVESTMENTS AS OF APRIL 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
COMMON STOCKS--93.6% Shares Value
- --------------------------------------------------------------
<S> <C> <C>
BUSINESS SUPPORT SERVICES--15.5%
Marketing Services Group, Inc.* 20,000 $ 71,875
PSC, Inc.* 100,000 1,187,500
Sensormatic Electronics Corporation 60,000 937,500
Telxon Corporation 20,000 646,250
Ultrak, Inc.* 80,000 800,000
Wave Technologies International, Inc.* 100,000 675,000
- --------------------------------------------------------------
4,318,125
- --------------------------------------------------------------
CHEMICALS--2.7%
Asahi/America, Inc.* 40,000 290,000
A. Schulman, Inc. 20,000 447,500
- --------------------------------------------------------------
737,500
- --------------------------------------------------------------
COMMUNICATIONS RELATED--20.7%
Active Voice Corporation* 50,000 675,000
ANTEC Corporation* 35,000 691,250
Brite Voice Systems, Inc.* 60,000 637,500
C-COR Electronics, Inc.* 80,000 1,180,000
Norstran, Inc.* 22,500 540,000
Periphonics Corporation* 90,000 1,046,250
Scientific-Atlanta, Inc. 25,000 596,875
Teltrend, Inc.* 23,000 379,500
- --------------------------------------------------------------
5,746,375
- --------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES--19.0%
Comverse Technology, Inc.* 6,500 307,937
National Computer Systems, Inc. 49,000 1,225,000
Systems & Computer Technology Corporation* 20,000 1,130,000
Timberline Software Corporation 21,562 388,116
Unisys Corporation* 100,000 2,243,750
- --------------------------------------------------------------
5,294,803
- --------------------------------------------------------------
CONSUMER NON-DURABLE--8.4%
Franklin Electronic Publishers, Inc.* 60,000 727,500
Galoob Toys, Inc.* 110,000 1,189,375
Seattle Film Works, Inc.* 20,000 200,000
Tyson Foods, Inc., Class A 12,000 231,750
- --------------------------------------------------------------
2,348,625
- --------------------------------------------------------------
DRILLING EQUIPMENT & SERVICES--3.3%
Oceaneering International, Inc.* 25,000 573,438
Offshore Logistics, Inc.* 15,000 354,375
- --------------------------------------------------------------
927,813
- --------------------------------------------------------------
</TABLE>
* Non-income producing security.
<TABLE>
<CAPTION>
COMMON STOCKS Market
(CONTINUED) Shares Value
- ------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES--0.9%
Penncorp Financial Group, Inc. 10,000 $ 260,000
- ------------------------------------------------------------------------------
260,000
- ------------------------------------------------------------------------------
HEALTH CARE--7.3%
Mylan Laboratories, Inc. 10,000 271,250
Owens & Minor, Inc. Holding Company 45,000 801,562
Perrigo Company* 75,000 970,312
- ------------------------------------------------------------------------------
2,043,124
- ------------------------------------------------------------------------------
MANUFACTURING & RELATED--9.9%
Fedders Corporation 100,000 537,500
Gorman-Rupp Company 18,000 362,250
Osmonics, Inc.* 17,400 262,088
O'Sullivan Industries Holding, Inc.* 80,000 1,210,000
Paxar Corporation 25,000 370,313
- ------------------------------------------------------------------------------
2,742,151
- ------------------------------------------------------------------------------
PRECIOUS METALS--5.9%
Battle Mountain Gold Company 80,000 575,000
Echo Bay Mines Ltd.* 150,000 534,375
Homestake Mining Company 25,000 290,625
Kinross Gold Corporation* 50,000 228,125
- ------------------------------------------------------------------------------
1,628,125
- ------------------------------------------------------------------------------
Total Common Stocks
(Cost $19,825,934) 26,046,641
- ------------------------------------------------------------------------------
Principal
U.S. TREASURY NOTES--0.7% Amount
---------
6.25%, due 06/30/98 (Cost $200,035) $ 200,000 200,438
- ------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--4.6%
U.S. Treasury Bill, 4.80% due 07/09/98 500,000 495,400
Repurchase Agreement with Firstar Bank, 3.75%, dated
04/30/98, due 05/01/98, collateralized by Federal Home
Adjustable Rate Mortgage valued at $808,982.
Repurchase proceeds of $793,083.
(Cost $793,000) 793,000 793,000
- ------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,288,390) 1,288,400
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $21,314,359)--98.9% 27,535,479
OTHER ASSETS AND LIABILITIES--1.1% 305,639
- ------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $27,841,118
-----------
</TABLE>
See Notes to the Financial Statements.
10
<PAGE>
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
INVESTMENTS AS OF APRIL 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS--95.8% Shares Value
- ---------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA--0.7%
Normandy Mining Limited 500,000 $ 557,442
- ---------------------------------------------------------------------
557,442
- ---------------------------------------------------------------------
BERMUDA--0.8%
Knightsbridge Tanker Ltd. 21,000 603,750
- ---------------------------------------------------------------------
603,750
- ---------------------------------------------------------------------
CANADA--0.8%
Inco Limited 34,500 605,906
- ---------------------------------------------------------------------
605,906
- ---------------------------------------------------------------------
FRANCE--18.6%
Assurances Generales de France 9,000 568,318
Banque Nationale de Paris Intercontinentale 2,500 558,762
Chaine et Trame 21,000 847,990
Charlatte SA* 15,400 130,514
Coflexip SA 4,500 637,862
Compagnie Internationale Andre Trigano SA 2,000 76,440
Compagnie des Alpes 17,700 500,020
Ducros Services Rapides SA 50,010 324,106
Eiffage 7,500 579,534
Emin--Leydier 6,300 458,333
Eramet SLN 3,000 150,554
Europeenne d'Extincteurs 12,600 1,053,182
Faiveley SA 16,700 721,531
Faiveley Warrants 7/99* 700 2,559
Fraikin 6,000 478,583
Grande Paroisse SA* 10,500 572,306
Infra Plus 2,645 107,246
Labinal SA 500 182,626
Louis Dreyfus Citrus 15,500 515,142
Manitou B.F. SA 1,890 286,432
MORS* 850,000 1,299,486
Musee Grevin* 20,000 305,761
Royal Canin 6,000 361,729
Rubis et Cie 24,540 688,354
Societe Industrielle D'Aviations Latecoere SA 4,415 619,944
Sommer-Allibert 5,000 214,199
Thermador Holding 4,000 265,215
Titus Interactive* 7,000 387,353
Vallourec SA 8,500 717,542
Vilmorin et Compagnie 4,341 401,800
Vilmorin et Compagnie Warrants* 990 11,944
- ---------------------------------------------------------------------
14,025,367
- ---------------------------------------------------------------------
GERMANY--2.1%
Linde AG 700 483,311
Preussag AG 1,400 497,744
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS (CONTINUED) Shares Value
- -------------------------------------------------------------------
<S> <C> <C>
GERMANY (CONTINUED)
Viag AG 1,175 $ 595,194
- -------------------------------------------------------------------
1,576,249
- -------------------------------------------------------------------
HONG KONG--5.4%
Elec & Eltek International Company Ltd. 110,000 638,000
Elec & Eltek International Holdings Limited 11,000,000 3,124,172
Shanghai Industrial Holdings Limited 100,000 342,755
- -------------------------------------------------------------------
4,104,927
- -------------------------------------------------------------------
INDONESIA--8.9%
Cahaya Kalbar 3,209,000 486,813
PT Asuransi Lippo Life* 6,000,000 297,213
PT Barito Pacific Timber 913,000 130,024
PT Citra Marga Nusaphala Persada 9,800,000 819,193
PT Hanjaya Mandaha Sampoerna 3,523,000 2,279,583
PT Indofood Sukses Makmur 2,528,000 1,064,419
PT Japfa Comfeed Indonesia 2,835,000 131,656
PT Komatsu Indonesia 4,404,500 599,992
PT Mayora Indah 9,000,000 752,320
PT Tunas Ridean 3,425,000 190,866
- -------------------------------------------------------------------
6,752,079
- -------------------------------------------------------------------
ITALY--0.8%
Pirelli S.p.A. 190,000 627,275
- -------------------------------------------------------------------
627,275
- -------------------------------------------------------------------
JAPAN--3.5%
The Bank of Tokyo--Mitsubishi, Ltd. 35,250 437,257
Enix Corporation 28,900 678,044
Fuji Electric Co., Ltd. 142,000 462,121
H.I.S. Company Limited 300 4,723
Oiles Corporation 14,400 358,556
Paramount Bed 21,900 646,409
Yamada Denki 9,000 94,679
- -------------------------------------------------------------------
2,681,789
- -------------------------------------------------------------------
MALAYSIA--7.6%
Cycle & Carriage Bintang Berhad 100,000 130,481
Malaysian Assurance Alliance Berhad 360,000 625,666
Road Builder (M) Holdings Berhad 2,217,000 1,956,170
Tenaga Nasional Berhad 890,000 1,772,855
YTL Corporation Berhad 805,000 1,248,392
- -------------------------------------------------------------------
5,733,564
- -------------------------------------------------------------------
NETHERLANDS--2.0%
Draka Holding N.V. 20,000 866,116
Wolters Kluwer NV** 4,700 614,334
- -------------------------------------------------------------------
1,480,450
- -------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
11
<PAGE>
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
INVESTMENTS AS OF APRIL 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS (CONTINUED) Shares Value
- ---------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES--8.7%
DMCI Holdings Inc.* 37,199,000 $ 2,075,358
Ionics Circuit Inc. 3,174,000 1,462,488
Solid Group, Inc.* 46,873,000 2,334,891
Swift Foods Inc.* 1,087,000 25,720
Universal Rightfield Property Holdings, Inc.* 5,500,000 100,000
Universal Robina Corporation 3,000,000 567,870
- ---------------------------------------------------------------------
6,566,327
- ---------------------------------------------------------------------
SINGAPORE--9.0%
Clipsal Industries Ltd. 1,226,000 1,765,440
GPE Industries Limited 953,000 500,325
Fraser & Neave Limited 300,000 1,345,128
GP Batteries International Ltd. 200,000 553,207
Robinson and Company, Limited 277,200 822,763
Singapore Land Ltd. 438,000 1,134,075
Sunright Limited 900,000 642,251
- ---------------------------------------------------------------------
6,763,189
- ---------------------------------------------------------------------
SOUTH KOREA--5.0%
Samsung Display Devices Company 41,081 2,044,060
Samsung Electronics Co. 10,406 576,164
Samsung Rights 5/13/98 5,902 64,727
Samsung Rights 6/01/98 827 0
Sindo Ricoh 30,000 1,054,994
- ---------------------------------------------------------------------
3,739,945
- ---------------------------------------------------------------------
SPAIN--7.6%
Aceralia Corporacion Siderurgica, S.A.* 69,000 937,112
Actividades de Construccion y Servicios,S.A.* 10,000 328,051
Aldeasa, S.A. 26,000 938,228
Cementos Portland, S.A. 7,675 523,702
Centros Comerciales Pryca, SA 18,500 325,903
Gas y Electricidad, S.A. 7,500 615,097
Iberdrola S.A. 45,000 723,354
Repsol SA 24,000 1,314,831
- ---------------------------------------------------------------------
5,706,278
- ---------------------------------------------------------------------
SRI LANKA--0.3%
John Keells Holdings, Ltd.* 37,500 198,444
- ---------------------------------------------------------------------
198,444
- ---------------------------------------------------------------------
SWEDEN--0.8%
Volvo AB 22,000 642,476
- ---------------------------------------------------------------------
642,476
- ---------------------------------------------------------------------
SWITZERLAND--1.7%
Ciba Specialty Chemicals 460 55,662
Novartis 460 763,017
Roche Holding AG 45 456,169
- ---------------------------------------------------------------------
1,274,848
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCKS AND Market
WARRANTS (CONTINUED) Shares Value
- ----------------------------------------------------------------------------
<S> <C> <C>
THAILAND--8.0%
Asia Credit Public Company Limited* 1,083,133 $ 413,088
Asia Credit Public Company Limited--Foreign* 160,253 78,728
Big C Supercenter Public Company, Limited* 1,968,000 371,464
GSS Array Technology Public Co., Ltd* 268,900 1,112,448
Krung Thai Bank Public Company Limited 3,019,683 772,975
Nawarat Patanakarn Public Company Limited 1,469,400 106,382
Siam Makro Public Company Limited 600,000 961,860
Thai Farmers Bank Public Company Limited 600,000 1,070,457
Thai Farmers Bank Public Company Limited Foreign 52,600 120,365
Thai Military Bank Public Company Limited 2,140,533 536,862
Thai Stanley Electric Public Company Limited 296,842 287,823
Thai Stanley Electric Public Company Limited Foreign 94,958 115,398
Thai Rung Union Car Public Company Limited 128,000 99,289
- ----------------------------------------------------------------------------
6,047,139
- ----------------------------------------------------------------------------
UNITED KINGDOM--1.6%
Linx Printing Technologies plc 100,000 234,916
Sheild Diagnostics Group plc* 16,000 167,869
Utilitec plc 455,000 502,102
Wilshaw plc 450,000 304,722
- ----------------------------------------------------------------------------
1,209,609
- ----------------------------------------------------------------------------
UNITED STATES--1.9%
Albany International Corp. 15,000 427,500
World Equity Benchmark Share--Japan 100,000 1,031,250
- ----------------------------------------------------------------------------
1,458,750
- ----------------------------------------------------------------------------
Total Common Stocks and Warrants
(Cost $85,430,977) 72,355,803
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $85,430,977)--95.8% 72,355,803
CASH***--5.1% 3,840,402
LIABILITIES LESS OTHER ASSETS--(0.9%) (698,698)
- ----------------------------------------------------------------------------
TOTAL NET ASSETS--100.0% $75,497,507
-----------
</TABLE>
* Non-income producing security.
** Dividend declared between 4/30/97-4/30/98 but not paid out during that time
period.
*** Cash balance is interest earning.
See Notes to the Financial Statements.
12
<PAGE>
THE TOCQUEVILLE GOVERNMENT FUND
INVESTMENTS AS OF APRIL 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Market
Value Value
- -----------------------------------------------------------------------
<S> <C> <C>
U.S GOVERNMENT AGENCY--32.7%
Federal Home Loan Bank (FHLB):
7.15%, due 12/28/12 $1,000,000 $ 999,234
7.00%, due 04/15/13 1,000,000 986,217
7.00%, due 02/26/13 1,000,000 989,881
Federal Home Loan Mortgage Corporation (FHLMC),
6.718%, due 02/12/08 500,000 496,205
7.00%, due 12/04/12 1,000,000 1,005,692
Federal National Mortgage Association
(FNMA), Medium Term Note,
6.85%, due 07/02/02 1,000,000 1,002,078
- -----------------------------------------------------------------------
Total U.S. Government Agency
(Cost $5,504,912) 5,479,307
- -----------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--33.0%
U.S. Treasury Notes:
5.625%, due 11/30/99 500,000 500,156
5.875%, due 11/30/01 1,000,000 1,006,876
5.875%, due 09/30/02 1,000,000 1,007,501
5.750%, due 10/31/02 1,000,000 1,002,813
5.750%, due 08/15/03 1,000,000 1,003,126
5.625%, due 02/15/06 1,000,000 992,188
- -----------------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $5,474,941) 5,512,660
- -----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Par Market
Value Value
- ------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS--34.0%
U.S. Treasury Bills:
4.96%, due 05/14/98 $1,000,000 $ 998,208
5.18%, due 06/04/98 2,000,000 1,990,210
4.77%, due 07/02/98 1,000,000 991,785
4.82%, due 07/30/98 500,000 493,975
4.89%, due 08/27/98 1,000,000 983,972
Repurchase Agreement with Firstar Bank,
3.75%, dated 04/30/98, due 05/01/98,
collateralized by Federal Home Adjustable Rate
Mortgage valued at $230,566. Repurchase proceeds of
$226,024.
(Cost $226,000). 226,000 226,000
- ------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $5,683,311) 5,684,150
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $16,663,164)--99.7% 16,676,117
LIABILITIES LESS OTHER ASSETS--0.3% 46,601
- ------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $16,722,718
-----------
</TABLE>
See Notes to the Financial Statements.
13
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE SMALL CAP INTERNATIONAL
TOCQUEVILLE VALUE VALUE GOVERNMENT
FUND FUND FUND FUND
----------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value* $75,546,554 $27,535,479 $72,355,803 $16,676,117
Foreign currencies** 0 0 21,327 0
Cash*** 4,810 2,642 3,840,402 297
Receivable for investments
sold 0 509,845 472,097 0
Receivable for fund shares
sold 106,531 101,020 2,000 40,000
Dividends, interest and
other receivables 65,935 7,850 325,083 162,816
Due from Investment
Adviser 0 0 0 513
Other assets 3,678 14,908 39,153 12,760
----------- ----------- ----------- -----------
Total assets 75,727,508 28,171,744 77,055,865 16,892,503
----------- ----------- ----------- -----------
LIABILITIES
Payable for investments
purchased 534,575 240,500 896,621 0
Payable for fund shares
repurchased 122,956 0 0 90,000
Payable to Investment
Adviser 65,397 22,403 72,485 0
Dividends payable 0 0 0 16,493
Accrued distribution fee 15,261 5,405 15,866 3,415
Accrued expenses and other
liabilities 84,780 62,318 573,386 59,877
----------- ----------- ----------- -----------
Total liabilities 822,969 330,626 1,558,358 169,785
----------- ----------- ----------- -----------
Net Assets $74,904,539 $27,841,118 $75,497,507 $16,722,718
----------- ----------- ----------- -----------
NET ASSETS CONSISTED OF:
Paid in capital $47,514,307 $20,846,332 $87,809,448 $16,722,540
Undistributed net
investment income (loss) 147,977 (115,804) (94,492) 0
Accumulated net realized
gain (loss) 1,975,013 889,470 883,470 (12,775)
Net unrealized
appreciation
(depreciation) 25,267,242 6,221,120 (13,100,919) 12,953
----------- ----------- ----------- -----------
Net assets $74,904,539 $27,841,118 $75,497,507 $16,722,718
----------- ----------- ----------- -----------
Shares outstanding
(unlimited shares of
$0.01 par value
authorized) 3,748,120 1,716,648 7,481,246 1,655,417
Net asset value and
redemption price per
share $ 19.98 $ 16.22 $ 10.09 $ 10.10
----------- ----------- ----------- -----------
Maximum offering price per
share $ 20.81 $ 16.90 $ 10.51 $ 10.52
----------- ----------- ----------- -----------
* Cost of Investments $50,279,313 $21,314,359 $85,430,977 $16,663,164
** Cost of Foreign
Currencies $ 0 $ 0 $ 22,430 $ 0
*** Cash balance in
International Value
Fund is an interest
earning balance.
</TABLE>
See Notes to the Financial Statements.
14
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF OPERATIONS
Six Months Ended April 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE SMALL CAP INTERNATIONAL
TOCQUEVILLE VALUE VALUE GOVERNMENT
FUND FUND FUND FUND
----------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends* $ 370,750 $ 34,173 $ 873,528 $ 0
Interest 266,888 34,912 110,696 476,714
---------- ---------- ---------- --------
637,638 69,085 984,224 476,714
---------- ---------- ---------- --------
EXPENSES:
Investment Adviser's fee 248,591 81,866 301,491 41,329
Custodian and fund accounting
fees 18,434 14,661 64,139 13,748
Transfer agent and
shareholder services 17,319 6,335 9,338 6,364
Professional fees 21,915 26,909 43,487 24,337
Distribution fees 82,864 27,289 79,836 20,664
Administration fee 49,718 16,373 47,901 12,399
Printing and mailing expense 8,418 2,534 1,670 3,205
Registration fees 7,816 428 9,454 3,682
Trustee fees and expenses 4,892 4,803 2,410 2,410
Fidelity bond 1,629 905 1,448 1,086
Amortization of organization
costs 0 2,786 3,066 2,179
Other 1,954 0 2,481 905
---------- ---------- ---------- --------
Total expenses before waiver 463,550 184,889 566,721 132,308
Less: Fees waived 0 0 0 (49,651)
---------- ---------- ---------- --------
Net expenses 463,550 184,889 566,721 82,657
---------- ---------- ---------- --------
NET INVESTMENT INCOME (LOSS) 174,088 (115,804) 417,503 394,057
---------- ---------- ---------- --------
REALIZED AND UNREALIZED GAIN
(LOSS):
Net realized gain (loss)
on:
Investments 2,265,726 894,994 1,431,563 (4,530)
Foreign currency transac-
tions 0 0 (127,343) 0
Net change in unrealized
appreciation
(depreciation):
Investments 5,730,930 2,037,420 (53,795) (13,047)
Foreign currency transla-
tions 0 0 (5,351) 0
---------- ---------- ---------- --------
Net gain (loss) on
investments and foreign
currency 7,996,656 2,932,414 1,245,074 (17,577)
---------- ---------- ---------- --------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $8,170,744 $2,816,610 $1,662,577 $376,480
---------- ---------- ---------- --------
*Net of Foreign Taxes With-
held 750 0 63,642 0
---------- ---------- ---------- --------
</TABLE>
See Notes to the Financial Statements.
15
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE TOCQUEVILLE FUND
-------------------------
SIX MONTHS FOR THE YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
----------- ------------
1998 1997
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ 174,088 $ 182,463
Net realized gain (loss) on investments and
foreign currency 2,265,726 7,000,921
Net change in unrealized appreciation (deprecia-
tion) 5,730,930 8,066,500
----------- -----------
Net increase (decrease) in net assets resulting
from operations 8,170,744 15,249,884
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (184,680) (161,026)
Net realized gains (7,015,177) (2,120,066)
----------- -----------
Total dividends and distributions (7,199,857) (2,281,092)
CAPITAL SHARE TRANSACTIONS:
Shares sold 9,067,664 16,178,975
Shares issued to holders in reinvestment of divi-
dends 6,318,448 1,891,528
Shares issued on Merger 0 0
Shares redeemed (6,450,802) (8,454,915)
----------- -----------
Net increase 8,935,310 9,615,588
----------- -----------
Net increase (decrease) in net assets 9,906,197 22,584,380
NET ASSETS:
Beginning of period 64,998,342 42,413,962
----------- -----------
End of period* 74,904,539 64,998,342
----------- -----------
* Including undistributed net investment income
(loss) of: $ 147,977 $ 158,569
----------- -----------
</TABLE>
See Notes to the Financial Statements.
16
<PAGE>
THE TOCQUEVILLE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP VALUE 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,
----------- ------------ ----------- ------------ ----------- ------------
1998 1997 1998 1997 1998 1997
----------- ------------ ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
$ (115,804) $ (125,970) $ 417,503 $ 69,772 $ 394,057 $ 778,796
894,994 2,372,872 1,304,220 (300,629) (4,530) 87,972
2,037,420 2,716,960 (59,146) (14,755,900) (13,047) (63,733)
----------- ----------- ----------- ------------ ----------- -----------
2,816,610 4,963,862 1,662,577 (14,986,757) 376,480 803,035
0 0 (666,646) (113,921) (394,057) (778,796)
(2,201,644) (1,277,296) 0 (1,177,180) 0 (45,262)
----------- ----------- ----------- ------------ ----------- -----------
(2,201,644) (1,277,296) (666,646) (1,291,101) (394,057) (824,058)
5,147,665 5,334,618 14,468,175 35,347,849 1,328,801 6,556,888
2,059,937 1,196,250 638,631 1,280,388 288,115 700,343
0 0 0 18,095,391 0 5,723,220
(568,314) (1,175,595) (1,567,807) (1,415,527) (1,684,200) (5,940,079)
----------- ----------- ----------- ------------ ----------- -----------
6,639,288 5,355,273 13,538,999 53,308,101 (67,284) 7,040,372
----------- ----------- ----------- ------------ ----------- -----------
7,254,254 9,041,839 14,534,930 37,030,243 (84,861) 7,019,349
20,586,864 11,545,025 60,962,577 23,932,334 16,807,579 9,788,230
----------- ----------- ----------- ------------ ----------- -----------
27,841,118 20,586,864 75,497,507 60,962,577 16,722,718 16,807,579
----------- ----------- ----------- ------------ ----------- -----------
$ (115,804) $ 0 $ (94,492) $ 64,452 $ 0 $ 0
----------- ----------- ----------- ------------ ----------- -----------
</TABLE>
See Notes to the Financial Statements.
17
<PAGE>
THE TOCQUEVILLE TRUST
THE TOCQUEVILLE FUND
THE TOCQUEVILLE SMALL CAP VALUE FUND
THE TOCQUEVILLE INTERNATIONAL VALUE FUND
THE TOCQUEVILLE GOVERNMENT FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 four
separate Funds: The Tocqueville Fund, The Tocqueville Small Cap Value Fund, The
Tocqueville International Value Fund (formerly The Tocqueville Europe Fund) and
The Tocqueville Government Fund (the "Funds"). The objective of The Tocqueville
Fund is long-term capital appreciation, primarily through investments in secu-
rities of United States issuers. The objective of The Tocqueville Small Cap
Value Fund is long-term capital appreciation primarily through investments in
securities of small capitalization United States issuers. The objective of The
Tocqueville International Value Fund is long-term capital appreciation primar-
ily through investment in securities of issuers located outside the United
States. The objective 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 ac-
counting principles 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.
18
<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 International Value Fund is engaged in transactions in securities
denominated in foreign currencies and, as a result, enters into foreign ex-
change contracts. The Tocqueville International Value Fund is 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 yield to
maturity basis from settlement date. The Trust uses the first-in, first-out
method for determining realized gain or loss on investments sold for both fi-
nancial reporting and federal tax purposes. Distributions to shareholders are
recorded on the ex-dividend date. Expenses incurred by the Trust not specifi-
cally identified 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 securities as collateral under repurchase agreements and to determine on a
daily basis that the value of such securities are sufficient to cover the
value of the repurchase agreements.
19
<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 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 Fund's 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, 1998, the
Adviser has made payments of $14,646, $8,928, $14,162 and $8,928 to Firstar
Trust Company for services provided under a Sub-Administration agreement for
The Tocqueville Fund, The Tocqueville Small Cap Value Fund, The Tocqueville
International Value Fund and The Tocqueville Government Fund, respectively.
FOR THE PERIOD ENDED APRIL 30, 1998, THE ADVISER WAIVED THE FOLLOWING FEES BY
FUND:
<TABLE>
<CAPTION>
TOCQUEVILLE SMALL CAP INTERNATIONAL GOVERNMENT
FUND VALUE FUND VALUE FUND FUND
----------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Advisory Fees waived $ 0 $ 0 $ 0 $41,329
Administration Fees waived $ 0 $ 0 $ 0 $ 3,471
Reimbursement by Advisor $ 0 $ 0 $ 0 $ 4,851
</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,
1998, the Distributor received net commissions of $12,463 from the sale of the
Trust's shares.
20
<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, 1998, there were $179,868, $84,063, $71,515 and
$17,178 in unreimbursed expenses for The Tocqueville Fund, The Tocqueville
Small Cap Value 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 International Value Fund and
The Tocqueville Government Fund for the six months ended April 30, 1998, were
$12,707, $18,790, $27,150 and $16,538, respectively.
21
<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>
TOCQUEVILLE
FUND
---------------------
AMOUNT SHARES
----------- --------
<S> <C> <C>
SIX MONTHS ENDED APRIL 30, 1998
Shares sold $ 9,067,664 497,599
Shares issued to owners in reinvestment of dividends 6,318,448 362,504
Shares redeemed (6,450,802) (328,863)
----------- --------
Net Increase $ 8,935,310 531,240
----------- --------
YEAR ENDED OCTOBER 31, 1997
Shares sold $16,178,975 876,867
Shares issued to owners in reinvestment of dividends 1,891,528 121,330
Shares issued on Merger 0 0
Shares redeemed (8,454,915) (457,883)
----------- --------
Net Increase $ 9,615,588 540,314
----------- --------
</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 $15,699,438.
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP TOCQUEVILLE TOCQUEVILLE
VALUE INTERNATIONAL VALUE GOVERNMENT
FUND FUND FUND
- --------------------- ------------------------- -----------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
- ---------- ------- ----------- --------- ---------- --------
<S> <C> <C> <C> <C> <C>
$5,147,665 374,412 $14,468,175 1,594,720 $1,328,801 131,257
2,059,937 144,684 638,631 73,406 288,115 28,477
(568,314) (38,688) (1,567,807) (171,154) (1,684,200) (166,399)
- ---------- ------- ----------- --------- ---------- --------
$6,639,288 453,410 $13,538,999 1,496,972 $ (67,284) (6,665)
- ---------- ------- ----------- --------- ---------- --------
$5,334,618 383,306 35,347,849 2,753,233 $6,556,888 651,940
1,196,250 94,790 1,280,388 107,056 700,343 69,492
0 0 18,095,391 1,333,485 5,723,220 563,864
(1,175,595) (78,096) (1,415,527) (113,492) (5,940,079) (589,453)
- ---------- ------- ----------- --------- ---------- --------
$5,355,273 400,000 $53,308,101 4,080,282 $7,040,372 695,843
- ---------- ------- ----------- --------- ---------- --------
</TABLE>
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 $18,095,391 including $1,674,266 of
unrealized depreciation. The combined net assets of The Tocqueville
International Value Fund immediately after the merger were $54,615,666.
23
<PAGE>
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term instru-
ments) for the six months ended April 30, 1998 were as follows:
<TABLE>
<CAPTION>
THE SMALL CAP INTERNATIONAL
TOCQUEVILLE VALUE VALUE GOVERNMENT
FUND FUND FUND FUND
----------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
PURCHASES
U.S. Government $ 0 $ 0 $ 0 $ 9,741,785
Other 10,923,672 7,763,858 45,537,013 0
----------- ----------- ------------ -----------
$10,923,672 $ 7,763,858 $ 45,537,013 $ 9,741,785
----------- ----------- ------------ -----------
SALES
U.S. Government $ 0 $ 0 $ 0 $ 8,251,855
Other 5,358,494 3,530,864 23,554,900 0
----------- ----------- ------------ -----------
$ 5,358,494 $ 3,530,864 $ 23,554,900 $ 8,251,855
----------- ----------- ------------ -----------
Unrealized appreciation (depreciation) at April 30, 1998 based on cost of se-
curities for Federal tax purposes is as follows:
<CAPTION>
THE SMALL CAP INTERNATIONAL
TOCQUEVILLE VALUE VALUE GOVERNMENT
FUND FUND FUND FUND
----------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
Gross unrealized appre-
ciation $25,733,858 $ 6,757,315 $ 9,081,350 $ 45,209
Gross unrealized depre-
ciation (707,596) (538,065) (22,557,358) (32,256)
----------- ----------- ------------ -----------
Net unrealized
appreciation
(depreciation) $25,026,262 $ 6,219,250 $(13,476,008) $ 12,953
----------- ----------- ------------ -----------
Cost of investments $50,520,292 $21,316,229 $ 85,831,811 $16,663,164
----------- ----------- ------------ -----------
</TABLE>
At October 31, 1997, Tocqueville Government Fund had tax basis capital losses
of $658,000 which arose from the merger with Ivy Short Term Bond Fund described
in Note 4. Such losses may be carried over to offset future capital gains
through 2003.
At October 31, 1997, Tocqueville International Value Fund had tax basis capi-
tal losses of $477,000 which may be carried over to offset future capital
gains. Of this amount $213,000 arose from the merger with Tocqueville Asia Pa-
cific Fund described in Note 4. Such losses may be carried over to offset fu-
ture capital gains through 2005.
24
<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 care-
fully before you invest.
<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
Lucille G. Bono
Bernard F. Combemale
James B. Flaherty
Inge Heckel
Robert W. Kleinschmidt
Francois Letaconnoux
Larry M. Senderhauf
