<PAGE>
ANNUAL REPORT
October 31, 1999
The Tocqueville Trust
Mutual Funds
The Tocqueville Fund
The Tocqueville Small Cap Value Fund
The Tocqueville International Value Fund
The Tocqueville Gold Fund
[LOGO]
Tocqueville
<PAGE>
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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.
You are invited to visit our website @ www.tocquevillefunds.com
1
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The Tocqueville Fund
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Dear Fellow Shareholder:
Fiscal year 1999 was a study in contrasts for investors. From November 1,
1998 through March 31, 1999, the large cap growth stocks which had dominated
the market throughout the previous year continued their wild ride, leaving all
other categories in the dust. Then, suddenly, on the first of April, these
stocks came under selling pressure, and value stocks, particularly the
cyclicals, surged. Some technology stocks like Amazon.com and AOL fell by
almost 50%, while persistent laggards like Phelps Dodge and Inco rose by a like
amount. It turned out, however, that this reversal of fortunes was short lived.
After a scant month or so of outperformance, value stocks retreated and growth
stocks, particularly large cap technology stocks, stormed ahead. Of course,
anything related to the Internet commanded incredible valuations. By the end of
our fiscal year, the pattern that was established in 1998 had completely
reasserted itself. The great majority of stocks languished, while an ever
increasingly narrow group of large cap technology and Internet stocks led the
market to new heights.
To get an understanding of the scope of this pattern, consider this: Just
seven stocks contributed 50% of the total performance of the S&P 500 during
calendar 1999, while 60% of the stocks traded on the New York Stock Exchange
registered either a loss or no gain over the same period. Even on the high-
flying NASDAQ, which recorded a blistering 85.6% return over the same period,
some 53% of the stocks traded shows either a loss or no gain.
Against this backdrop of a very narrow market, our results as value investors
were solid, if not spectacular, generating a total return of 12.60%. Over the
same period, the S&P, dominated by the favored few, realized a 25.67% return.
One might ask, why not throw in the towel and buy some of the high flyers?
The answer is that we are investors, not speculators. Speculation can be a
highly lucrative endeavor, but it generally rewards the few at the expense of
the many. Even among those who win, a substantial number give their speculative
gains back (and then some) in the fullness of time. We prefer to invest in the
Levi-Strauss type of companies that sold pickaxes and overalls to the miners in
the previous gold rushes. Our best performing stock over the past year, Adobe
Systems, is a good example.
Adobe's Acrobat product is used by virtually every web user who wishes to
download information from the Internet. Yet, when we purchased Adobe, the stock
was selling at a modest multiple of earnings, getting no credit for its
electronic equivalent of a pickaxe. Adobe was up 225% last year.
Great speculation booms of the past have all come to an inglorious end. This
one will too, notwithstanding the great promise of the Internet. Our job as
fiduciaries is to position our portfolio with lower risk, undervalued stocks
that can generate positive returns in difficult as well as ebullient
environments. We are dedicated to that task.
In the coming year, we expect rising interest rates, along with stronger
economies around the world to result in compressed price/earnings in general,
particularly for technology stocks, but higher valuations for cyclical stocks
that can show strong earnings gains. In short, if not in the same dramatic
style, we think fiscal 2000 will resemble April 1999. The Fund is well
positioned to benefit from these trends if they emerge with a large position in
commodity producers and other cyclical beneficiaries.
As fellow shareholders with a substantial portion of our own net worth
invested in the Fund, we thank you for your support and pledge ourselves to
preserving and enhancing your (and our) capital in the years ahead.
Robert W Kleinschmidt
Francois Sicart
Portfolio Managers
2
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The Tocqueville Fund
[LINE GRAPH]
Tocqueville
Fund Tocqueville
(Net Asset Value) Fund (Load) S&P 500
----------------- ----------- -------
10/31/89 10000 9600 10000
10/31/90 9664 9277 9252
10/31/91 11375 10920 12351
10/31/92 13073 12550 13582
10/31/93 16170 15523 15611
10/31/94 17415 16718 16215
10/31/95 20203 19395 20502
10/31/96 24785 23793 25443
10/31/97 33326 31993 33613
10/31/98 31796 30524 41004
10/31/99 35802 34371 51530
This chart assumes an initial investment of $10,000 made on 10/31/89. Perfor-
mance reflects fee waivers in effect. In the absence of fee waivers, total re-
turn would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future perfor-
mance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
10
1 Year 3 Year 5 Year Year
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
Tocqueville Fund--Net Asset Value 12.60% 13.04 15.51% 13.60%
Tocqueville Fund--Load 8.09% 11.52% 14.57% 13.14%
Standard & Poor's 500 Stock Index 25.67% 26.52% 26.02% 17.82%
</TABLE>
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3
<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 fiscal year ended October 31, 1999 your
portfolio of value stocks posted a 25.0% increase in Net Asset Value to $15.74
per share. These results are well above the 14.9% return of the Russell 2000
Index, which is the most widely accepted benchmark for small cap stocks. The
Fund's 15.7% annualized return since inception has remained consistently above
the 12.9% return of that index. While our investment strategy is not necessar-
ily to outperform any index, I will nevertheless try my best to maintain that
performance in the future.
Dividend Declared
Shareholders of the Fund on the record date of December 9, 1999 received a
long-term capital gain distribution of $2.40 per share. The reason behind this
large distribution is that 8 of the 32 positions we held at the beginning of
the year were acquired.
Cautious Optimism Maintained
Overall, I remain cautiously optimistic and fully invested. I would summarize
my investment positioning strategy for the year 2000 as follows: First of all,
I completely eliminated the Fund's exposure to the CATV industry because I
feared that stock valuations had moved well ahead of fundamentals. I also elim-
inated technology stocks where I felt that prices had moved far ahead of busi-
ness prospects. Proceeds from these sales have been reinvested in providers of
futuristic services and in producers of telephone hardware for the delivery of
data services to the home office or to the place of business. Second, I sub-
stantially increased the Fund's exposure to so-called post-Y2K "sunrise indus-
tries" that provide computer software solutions to small and medium size busi-
nesses. I also invested in personnel placement companies at real bargain pric-
es. Lastly, I increased my investments in depressed sectors where replacement
values for well positioned and highly proprietary businesses seemed rather com-
pelling: oil exploration and well completion services, specialty chemicals,
wholesale drug distribution, and a variety of other out-of-favor business serv-
ices.
To be more specific, 62% of assets are invested in broadly defined services:
22% in post-Y2K software solution providers, 20% in very proprietary value-
added business services, 12% in technology intensive personnel placement serv-
ices, and 8% in drug wholesale/delivery services. Telephone hardware and
computer/telephone integration producers account for another 15% of assets. Re-
maining assets are invested in industries which have already undergone profound
economic downturns, or where I believe current stock market valuations are well
below intrinsic replacement values or potential earning power valuations. These
sectors include small producers of proprietary specialty chemicals (11%) small
manufacturers of consumer non-durable goods (2%) and light industrial manufac-
turing (4%). Following is an alphabetical listing of our ten largest positions.
These represent 48% of assets.
Ten Largest Positions
<TABLE>
<S> <C>
Technology Solutions Inc. (7.4%) Computer network re-engineering services
Olsten Corp. (6%) Personnel placement services
Sensormatic Electronics (5.2%) Article surveillance / security services
Anixter Int'l (4.8%) Telephone hardware distributor
Systems & Computer Technology (4.7%) Universities & public utilities software
National Computer Systems (4.5%) Public education software services
Analysts Int'l (4.5%) Personnel placement services
United Stationers (3.9%) Stationary & hardware distributor
Battle Mountain Gold (3.7%) Precious metal producer
PSC Inc. (3.7%) Bar codes systems & hardware producer
</TABLE>
In closing, let me express my gratitude for your selection of the Tocqueville
Small Cap Value Fund to achieve your long-term investment goals.
Jean-Pierre Conreur Portfolio Manager
4
<PAGE>
The Tocqueville Small Cap Value Fund
[LINE GRAPH]
Small Cap Small Cap
Value Fund Value Fund
(Net Asset Value) (Load) Russell 2000
----------------- ---------- ------------
8/1/94 10000 9600 10000
10/31/94 10220 9811 10479
10/31/95 12184 11697 12400
10/31/96 14586 14002 14458
10/31/97 19840 19046 18699
10/31/98 17187 16500 16485
10/31/99 21487 20627 18936
This chart assumes an initial investment of $10,000 made on 8/1/94 (incep-
tion). Performance reflects fee waivers in effect. In the absence of fee waiv-
ers, total return would be reduced. Returns shown include the reinvestment of
all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%) FOR PERIODS ENDED OCTOBER 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since Inception
1 Year 3 Year 5 Year 8/01/94
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tocqueville Small Cap Value Fund--Net
Asset Value 25.02% 13.78% 16.02% 15.67%
Tocqueville Small Cap Value Fund--Load 20.06% 12.24% 15.07% 14.77%
Russell 2000 Index 14.87% 9.41% 12.56% 12.93%
- ----------------------------------------------------------------------------
</TABLE>
5
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The Tocqueville International Value Fund
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Dear Fellow Shareholder:
Over the twelve months ended October 31, 1999, the net asset value of our
fund increased by 40.2%. While this was substantially more than the apprecia-
tion of the Morgan Stanley EAFE Index (23.0%), we consider this to be only a
just reward for your patience in the previous fiscal year, when the fund suf-
fered the full impact of the Asian crisis.
After a recent trip to Asia, we remain very confident about the region's re-
covery, and enthusiastic about its potential. This is where the world's most
compelling long-term values remain, even after the doubling (or more) of its
principal bourses. Yet, we are concerned by the sudden reversal of investment-
media sentiment toward Asia at a time when most companies we recently visited
see only a slow re-acceleration of earnings until some time in the second half
of next year.
As a result, we have not re-invested all the proceeds of the profit-taking we
have realized in Asia.
This increase in cash reserves also reflects the European situation, where
economic recoveries seem to be gathering momentum, but most of the action is in
index stocks and merger candidates--"momentum" plays that seem to be more sen-
sitive to the level of interest rates than to the corporate profit cycle. We,
on the other hand (as value investors), are arduously seeking the share of com-
panies that would have the most earnings leverage on a recovery of Europe's do-
mestic demand. When consumption rises after deep corporate restructuring and
overhead-cost reductions, as happened to American companies in the late 1980s
and early 1990s, the margin impact can be spectacular.
Finally, we are getting our feet wet in Latin America, were we have purchased
a few shares. Before we establish a large exposure in that region, however, we
would like to get a better feel for the individual companies reaction to an
eventual slowdown of the US economy.
In younger economies, it is still possible to find companies with potential
growth trends in the 15%-20% range, in industries that are considered mature
and stodgy in older economies. Since the largest investors come from these
older countries, and hold these countries' cultural prejudices, emerging mar-
kets are where growth stocks can still be bought at value prices.
Altogether, therefore, we feel relatively confident about the year ahead, as
true value remains easier to find in foreign markets, and with less competi-
tion, than in the United States.
Respectfully,
Francois Sicart
Portfolio Manager
6
<PAGE>
The Tocqueville International Value Fund
[LINE GRAPH]
International
Value Fund International
(Net Asset Value) Value Fund (Load) EAFE Index
8/1/94 10000 9600 10000
10/31/94 10020 9619 10244
10/31/95 10830 10396 10206
10/31/96 12570 12067 11275
10/31/97 10770 10339 11797
10/31/98 8679 8332 12935
10/31/99 12169 11682 15914
This chart assumes an initial investment of $10,000 made on 8/1/94 (incep-
tion). Performance reflects fee waivers in effect. In the absence of fee waiv-
ers, total return would be reduced. Returns shown include the reinvestment of
all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%) FOR PERIODS ENDED OCTOBER 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since Inception
1 Year 3 Year 5 Year 8/1/94
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tocqueville International Value Fund--
Net Asset Value 40.20% (1.08%) 3.96% 3.81%
Tocqueville International Value Fund--
Load 34.56% (2.40%) 3.11% 3.00%
Morgan Stanley EAFE Index 23.03% 12.17% 9.21% 9.25%
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</TABLE>
7
<PAGE>
The Tocqueville Gold Fund
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Dear Fellow Shareholder:
Fiscal 1999 was a successful year for the Tocqueville Gold Fund, which pro-
duced a return of 20.6% compared to a negative 7.8% for the benchmark Phila-
delphia Stock Exchange Gold/Silver Index, an outperformance of 28.4%. Current
data on the fund is found on our website, www.tocquevillefunds.com.
When we started the fund June 29, 1998, we were the first new gold fund
startup in four years, partly on the rationale that gold and precious metals
were so out of favor that it was difficult to imagine further downside. This
reasoning was in keeping with Tocqueville's contrarian investment style. Since
then, the precious metal fund sector has continued to consolidate due to pre-
vailing pessimism over gold's prospects among the majority of professional in-
vestment managers. In my view, our fund stands a good chance of emerging as
one of few preeminent choices available when investment money flows return to
this sector, as I anticipate will happen over the next few years.
While pessimism still reigns, the fundamentals of the gold market have
turned bullish, a fact that has escaped most observers. The Washington Agree-
ment on Gold, signed September 26th, 1999, was the critical watershed. The
agreement, signed by the 15 European Central Union members, fixed the level of
outright sales for the next five years at a level well within the market's ca-
pability to absorb. More important, the banks will not increase gold loans be-
yond the current level. Gold loans have been more damaging to the gold price
than outright sales themselves. Finally, the US, Japan, the IMF, and the BIS
have stated that they will abide by the spirit of the agreement. Therefore,
85% of world official sector gold holdings are now off the market.
Central bank sales and lending have been by far the biggest factor responsi-
ble for the bear market in gold. Without this pressure, gold prices are poised
to rise sharply over the next few years. If so, returns from investing in this
sector should prove most rewarding.
Because gold company managements bought into the bearish case for gold
(i.e., never ending sales by central banks) they engaged in forward sales and
other hedging transactions facilitated by bullion dealers. The sharp spike in
gold following the Washington Agreement blew up the hedge books of two high
profile producers, Ashanti and Cambior and threatened the solvency of the two
companies. Following these developments, gold mining executives have been far
more reluctant to engage in the kind of hedging activities which depress the
gold price.
Central bank lending to bullion dealers was the mechanism to facilitate mine
company hedging. In their eagerness to promote this business, bullion dealers
provided lax financial terms to the mining companies. As a result, they have
assumed the bulk of the financial risk in the underlying short position. This
short interest, translated into a dollar amount at current prices, approxi-
mates $60 to $80 billion. These institutions, which include Goldman Sachs, JP
Morgan, Chase Manhattan, and Credit Suisse, face severe financial peril if the
gold price rises sharply. A rising gold price will force them to buy back the
gold they are short. Because the gold market is thin, these and other bullion
banking institutions are trapped. In the near term, they may be able to con-
tinue to manipulate the market to disguise their predicament. In the process,
they continue to disseminate self-serving and misleading information. As time
passes, however, increasing numbers of market participants will realize the
facts and these short positions will come under speculative attack. I expect
to see this happen next year. A short covering panic could drive the gold
price hundreds of dollars higher. It is likely to be resolved only by some
form of government rescue, after which the gold price should maintain an equi-
librium price far higher than the current depressed level.
As gold returns to favor as an investment class, current depressed valua-
tions of the gold mining shares should improve along with earnings. In sum, I
expect the next two to three years to be eventful and fruitful for precious
metals investors.
With all best wishes for the coming year,
John Hathaway
Portfolio Manager
8
<PAGE>
The Tocqueville Gold Fund
[LINE GRAPH]
Philadelphia
Gold Fund Gold Fund Stock Exchange
(Net Asset Value) (Load) Gold and Silver Index
----------------- --------- ---------------------
6/29/98 10000 9600 10000
10/31/98 10760 10330 10217
10/31/99 12971 12452 9425
This chart assumes an initial investment of $10,000 made on 6/29/98 (incep-
tion). Performance reflects fee waivers in effect. In the absence of fee waiv-
ers, total return would be reduced. Returns shown include the reinvestment of
all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since Inception
1 Year 6/29/98
- --------------------------------------------------------------------------
<S> <C> <C>
Tocqueville Gold Fund--Net Asset Value 20.55% 21.43%
Tocqueville Gold Fund--Load 15.71% 17.76%
Philadelphia Stock Exchange Gold and Silver Index (7.75%) (2.27%)
- --------------------------------------------------------------------------
</TABLE>
9
<PAGE>
The Tocqueville Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
October 31,
-----------------------------------------------
Per share operating
performance
(For a share outstanding 1999 1998 1997 1996 1995
throughout the year) ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 17.00 $ 20.21 $ 15.85 $ 14.07 $ 13.74
------- ------- ------- ------- -------
Income from investment oper-
ations:
Net investment income 0.01 0.06 0.06 0.07 0.15
Net realized and unrealized
gain (loss) 1.94 (0.93) 5.15 2.92 1.70
------- ------- ------- ------- -------
Total from investment opera-
tions 1.95 (0.87) 5.21 2.99 1.85
------- ------- ------- ------- -------
Less distributions
Dividends from net invest-
ment income (0.07) (0.06) (0.06) (0.15) (0.11)
Distributions from net real-
ized gains (1.34) (2.28) (0.79) (1.06) (1.41)
------- ------- ------- ------- -------
Total distributions (1.41) (2.34) (0.85) (1.21) (1.52)
------- ------- ------- ------- -------
Change in net asset value
for the year 0.54 (3.21) 4.36 1.78 0.33
------- ------- ------- ------- -------
Net asset value, end of year $ 17.54 $ 17.00 $ 20.21 $ 15.85 $ 14.07
------- ------- ------- ------- -------
Total Return (b) 12.6 % (4.6)% 34.5 % 22.7 % 16.0 %
Ratios/supplemental data
Net assets, end of year
(000) $57,801 $61,566 $64,998 $42,414 $33,438
Ratio to average net assets:
Expenses (a) 1.36 % 1.39 % 1.40 % 1.49 % 1.54 %
Net investment income (a) 0.04 % 0.35 % 0.34 % 0.44 % 1.07 %
Portfolio turnover rate 26 % 35 % 48 % 48 % 47 %
</TABLE>
- --------
(a) Net of fees waived amounting to 0.25%, 0.16% and 0.02% of average net as-
sets for the years ended October 31, 1997, October 31, 1996 and October 31,
1995, respectively.
(b) Does not include maximum sales charge of 4%.
10
<PAGE>
The Tocqueville Small Cap Value Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
October 31,
-----------------------------------------------
Per share operating
performance
(For a share outstanding 1999 1998 1997 1996 1995
throughout the year) ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 12.59 $ 16.30 $ 13.37 $ 11.91 $10.22
-------- ------- ------- ------- ------
Income from investment
operations:
Net investment income (loss) (0.13) (0.15) (0.05) (0.10) (0.05)
Net realized and unrealized
gain (loss) 3.28 (1.83) 4.44 2.33 1.96
-------- ------- ------- ------- ------
Total from investment
operations 3.15 (1.98) 4.39 2.23 1.91
-------- ------- ------- ------- ------
Less distributions
Dividends from net investment
income -- -- -- -- (0.03)
Distributions from net
realized gains -- (1.73) (1.46) (0.77) (0.19)
-------- ------- ------- ------- ------
Total distributions -- (1.73) (1.46) (0.77) (0.22)
-------- ------- ------- ------- ------
Change in net asset value for
the year 3.15 (3.71) 2.93 1.46 1.69
-------- ------- ------- ------- ------
Net asset value, end of year $ 15.74 $ 12.59 $ 16.30 $ 13.37 $11.91
-------- ------- ------- ------- ------
Total Return (b) 25.0 % (13.4)% 36.0 % 19.7 % 19.2 %
Ratios/supplemental data
Net assets, end of year (000) $ 26,188 $21,610 $20,587 $11,545 $9,383
Ratio to average net assets:
Expenses (a) 1.52 % 1.67 % 1.75 % 2.36 % 2.50 %
Net investment income (loss)
(a) (0.87)% (1.12)% (0.81)% (1.18)% (0.53)%
Portfolio turnover rate 72 % 62 % 95 % 107 % 88 %
</TABLE>
- --------
(a) Net of fees waived amounting to 0.35%, 0.33% and 0.33% of average net as-
sets for the years ended October 31, 1997, October 31, 1996 and October 31,
1995, respectively.
(b) Does not include maximum sales charge of 4%.
11
<PAGE>
The Tocqueville International Value Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
October 31,
----------------------------------------------
Per share operating
performance
(For a share outstanding 1999 1998 1997 1996 1995
throughout the year) ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $ 8.11 $ 10.19 $ 12.57 $ 10.83 $10.02
-------- ------- ------- ------- ------
Income from investment
operations:
Net investment income
(loss) 0.05 0.10 (0.03) 0.16 (0.01)
Net realized and
unrealized gain (loss) 3.21 (2.07) (1.67) 1.58 0.82
-------- ------- ------- ------- ------
Total from investment
operations 3.26 (1.97) (1.70) 1.74 0.81
-------- ------- ------- ------- ------
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 year 3.26 (2.08) (2.38) 1.74 0.81
-------- ------- ------- ------- ------
Net asset value, end of
year $ 11.37 $ 8.11 $ 10.19 $ 12.57 $10.83
-------- ------- ------- ------- ------
Total Return (b) 40.2% (19.4)% (14.3)% 16.1% 8.1 %
Ratios/supplemental data
Net assets, end of year
(000) $97,676 $68,415 $60,963 $23,932 $6,270
Ratio to average net
assets:
Expenses (a) 1.67% 2.00% 1.99% 1.98% 4.43 %
Net investment income
(loss) (a) 0.52% 0.64% 0.16% 1.45% (0.53)%
Portfolio turnover rate 78% 77% 70% 135% 109 %
</TABLE>
- --------
(a) Net of fees waived amounting to 0.11%, 0.55% and 1.28% of average net as-
sets for the years ended October 31, 1997, October 31, 1996 and October 31,
1995, respectively.
(b) Does not include maximum sales charge of 4%.
12
<PAGE>
The Tocqueville Gold Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period from
Per share operating performance Year Ended June 29, 1998 to
(For a share outstanding throughout the October 31, 1999 October 31, 1998
period) ---------------- ----------------
<S> <C> <C>
Net asset value, beginning of period $ 10.76 $10.00
------- ------
Income from investment operations:
Net investment income (loss) (0.03) 0.00
Net realized and unrealized gain 2.24 0.76
------- ------
Total from investment operations 2.21 0.76
------- ------
Less distributions
Dividends from net investment income -- --
Distributions from net realized gains -- --
------- ------
Total distributions -- --
------- ------
Change in net asset value for the period 2.21 0.76
------- ------
Net asset value, end of period $ 12.97 $10.76
------- ------
Total Return (b) 20.6% 7.6%(d)
Ratios/supplemental data
Net assets, end of period (000) $19,194 $8,229
Ratio to average net assets:
Expenses (a) 1.98% 1.98%(c)
Net investment income (loss) (a) (0.33)% 0.06%(c)
Portfolio turnover rate 44% 1%
</TABLE>
- --------
(a) Net of fees waived amounting to 0.36% and 2.25% of average net assets for
the periods ended October 31, 1999 and October 31, 1998 respectively.
(b) Does not include maximum sales charge of 4%.
(c) Annualized.
(d) Not annualized.
13
<PAGE>
The Tocqueville Fund
Investments as of October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stocks--94.7% Shares Value
- ------------------------------------------------------------------
<S> <C> <C>
Business Services--5.4%
H&R Block, Inc. 25,000 $ 1,064,062
HSB Group, Inc. 30,000 1,147,500
Waste Management, Inc. 50,000 919,294
- ------------------------------------------------------------------
3,130,856
- ------------------------------------------------------------------
Consumer Non-Durables--4.4%
Burlington Industries, Inc.* 150,000 553,125
Kmart Corporation* 200,000 2,012,500
- ------------------------------------------------------------------
2,565,625
- ------------------------------------------------------------------
Energy--12.4%
Andarko Petroleum Corporation 40,000 1,232,500
Baker Hughes, Inc. 50,000 1,396,875
Murphy Oil Corporation 40,000 2,242,500
Texaco, Inc. 20,000 1,227,500
Varco International, Inc. 100,000 1,056,250
- ------------------------------------------------------------------
7,155,625
- ------------------------------------------------------------------
Finance--13.3%
BankAmerica Corporation 30,000 1,931,250
The Bank of Tokyo-Mitsubishi, Limited--ADR 100,000 1,650,000
Citigroup, Inc. 45,000 2,435,625
Financial Security Assurance Holdings Limited 30,000 1,691,250
- ------------------------------------------------------------------
7,708,125
- ------------------------------------------------------------------
Lumber and Wood Products--4.9%
Longview Fibre Company 100,000 1,137,500
Westavaco 57,000 1,692,188
- ------------------------------------------------------------------
2,829,688
- ------------------------------------------------------------------
Manufacturing--3.6%
Litton Industries, Inc.* 15,000 704,062
Olin Corporation 100,000 1,381,250
- ------------------------------------------------------------------
2,085,312
- ------------------------------------------------------------------
Medical Services--3.9%
Genzyme Corporation* 25,000 956,250
McKesson HBOC, Inc. 40,000 804,350
Owens & Minor, Inc. 50,000 468,750
- ------------------------------------------------------------------
2,229,350
- ------------------------------------------------------------------
Metals & Minerals--12.1%
ALCOA, Inc. 40,000 2,430,000
Homestake Mining Company 200,000 1,675,000
Inco, Limited 75,000 1,518,750
Phelps Dodge Corporation 15,000 845,625
Stillwater Mining Company* 25,000 503,125
- ------------------------------------------------------------------
6,972,500
- ------------------------------------------------------------------
</TABLE>
* Non-income producing security.
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
Common Stocks Market
(continued) Shares Value
- ---------------------------------------------------------------------------
<S> <C> <C>
Publishing--2.2%
Readers Digest Association, Inc. 40,000 $ 1,290,000
- ---------------------------------------------------------------------------
1,290,000
- ---------------------------------------------------------------------------
Real Estate--2.0%
Cattellus Development Corporation* 100,000 1,175,000
- ---------------------------------------------------------------------------
1,175,000
- ---------------------------------------------------------------------------
Technology--18.6%
Adobe Systems, Inc. 60,000 4,196,250
Autodesk, Inc. 30,000 560,325
The Boeing Company 30,000 1,381,875
Electronic Data Systems Corporation 30,000 1,755,000
International Business Machines
Corporation 20,000 1,967,500
3 Com Corporation* 30,000 870,000
- ---------------------------------------------------------------------------
10,730,950
- ---------------------------------------------------------------------------
Transportation & Public Utilities--11.9%
AT&T Corporation 40,000 1,870,000
Alexander & Baldwin, Inc. 30,000 720,000
Sprint Corporation 50,000 3,715,625
Union Pacific Corporation 10,000 557,500
- ---------------------------------------------------------------------------
6,863,125
- ---------------------------------------------------------------------------
Total Common Stocks (Cost $37,765,046) 54,736,156
- ---------------------------------------------------------------------------
Principal
Short-Term Investments--4.6% Amount
----------
Repurchase Agreement with Firstar Bank 3.30%, dated
10/29/99, due 11/01/99, collateralized by U.S.
Treasury Notes
valued at $2,724,843. Repurchase
proceeds of $2,672,735.
(Cost $2,672,000) $2,672,000 2,672,000
- ---------------------------------------------------------------------------
Total Short-Term Investments
(Cost $2,672,000) 2,672,000
- ---------------------------------------------------------------------------
Total Investments
(Cost $40,437,046)--99.3% 57,408,156
- ---------------------------------------------------------------------------
Other assets less liabilities--0.7% 392,592
Total Net Assets--100.0% $57,800,748
-----------
</TABLE>
14
<PAGE>
The Tocqueville Small Cap Value Fund
Investments as of October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stocks--99.8% Shares Value
- ------------------------------------------------------------------
<S> <C> <C>
Business Support Services--19.9%
- ------------------------------------------------------------------
Detection Systems, Inc.* 10,000 $ 102,500
PSC, Incorporated* 130,000 958,750
Sensormatic Electronics Corporation* 90,000 1,361,250
Ultrak, Incorporated* 100,000 556,250
United Stationers, Incorporated 40,000 1,020,000
Wallace Computer Services,Inc. 30,000 663,750
Wave Technologies International, Incorporated* 180,000 540,000
- ------------------------------------------------------------------
5,202,500
- ------------------------------------------------------------------
Computer Software & Services--21.7%
National Computer Systems, Incorporated 31,000 1,172,187
SAGA Systems, Inc.* 50,000 725,000
Systems & Computer Technology Corporation* 115,000 1,236,250
Technology Solutions Corporation* 95,000 1,947,500
Unisys Corporation* 25,000 606,250
- ------------------------------------------------------------------
5,687,187
- ------------------------------------------------------------------
Consumer Non Durables--2.2%
Seattle Filmworks, Incorporated* 200,000 575,000
- ------------------------------------------------------------------
575,000
- ------------------------------------------------------------------
Health Care--7.5%
Henry Schein, Inc.* 40,000 515,070
Owens & Minor, Incorporated Holding Company 100,000 937,500
Perrigo Company* 67,500 510,469
- ------------------------------------------------------------------
1,963,039
- ------------------------------------------------------------------
Manufacturing & Related--2.1%
Fedders Corporation 90,000 556,875
- ------------------------------------------------------------------
556,875
- ------------------------------------------------------------------
Personnel Placement Services--13.9%
Analysts International Corporation 100,000 1,168,750
Input/Output, Inc.* 75,000 399,375
Olsten Corporation 155,000 1,559,687
Romac International, Incorporated* 75,000 506,250
- ------------------------------------------------------------------
3,634,062
- ------------------------------------------------------------------
</TABLE>
* Non-income producing security.
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
Common Stocks Market
(continued) Shares Value
- ---------------------------------------------------------
<S> <C> <C>
Precious Metals--6.1%
Battle Mountain Gold Company 360,000 $ 967,500
Echo Bay Mines Limited* 200,000 362,500
Kinross Gold Corporation* 100,000 256,250
- ---------------------------------------------------------
1,586,250
- ---------------------------------------------------------
Specialty Chemicals--11.0%
Asahi/America, Incorporated* 40,000 362,500
A.Schulman, Incorporated 60,000 933,750
Chemfab Corporation* 30,000 472,500
M.A. Hanna Company 35,000 374,063
Osmonics, Incorporated* 75,000 750,000
- ---------------------------------------------------------
2,892,813
- ---------------------------------------------------------
Telephone Infrastructure--15.4%
Anixter International, Incorporated* 60,000 1,252,500
InterVoice-Brite, Inc.* 75,000 928,125
Norstan, Incorporated* 32,000 280,000
Periphonics Corporation* 20,000 757,500
Teltrend, Incorporated* 45,000 815,625
- ---------------------------------------------------------
4,033,750
- ---------------------------------------------------------
Total Common Stocks
(Cost $23,765,101) 26,131,476
- ---------------------------------------------------------
Total Investments
(Cost $23,765,101)--99.8% 26,131,476
Other Assets and Liabilities--0.2% 56,874
- ---------------------------------------------------------
Total Net Assets--100% $26,188,350
-----------
</TABLE>
15
<PAGE>
The Tocqueville International Value Fund
Investments as of October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stocks and Warrants--68.9% Shares Value
---------------------------------------------------------------------------
<C> <S> <C> <C>
Australia--0.8%
Normandy Mining Limited 1,018,518 $ 772,441
---------------------------------------------------------------------------
772,441
---------------------------------------------------------------------------
Belgium--0.8%
Dexia Belgium 5,170 757,049
---------------------------------------------------------------------------
757,049
---------------------------------------------------------------------------
Brazil--1.2%
Uniao de Banco Brasileiros SA-GDR 50,000 1,156,250
---------------------------------------------------------------------------
1,156,250
---------------------------------------------------------------------------
Canada--0.5%
Inco, Limited 23,500 475,875
---------------------------------------------------------------------------
475,875
---------------------------------------------------------------------------
France--5.8%
Andre Trigano SA 500 9,881
Banque Nationale de Paris Intercontinentale 2,500 514,822
Banque Transatlantique 5,000 289,078
Chaine et Trame SA 12,299 76,279
Compagnie Internationale Andre Trigano SA--Rts* 500 972
Eiffage 8,250 584,082
Faiveley SA 17,050 249,127
Generali France Assurances 2,200 1,098,497
Hyparlo SA 7,500 930,306
Ingenico SA 8,461 209,012
Manitou B.F. SA 26,000 1,270,892
MORS SA* 850,000 455,692
---------------------------------------------------------------------------
5,688,640
---------------------------------------------------------------------------
Germany--2.3%
Bayerische Hypo-Vereinsbank* 12,000 787,133
ProSieben Media AG 8,000 327,972
Sogecable SA* 40,500 1,113,718
---------------------------------------------------------------------------
2,228,823
---------------------------------------------------------------------------
Hong Kong--6.2%
Elec & Eltek International Holdings
Limited 20,000,000 3,603,835
Guangdong Kelon Electrical Holdings
Limited 500,000 444,044
VTech Holdings Limited 600,000 1,544,501
Yue Yuen Industrial Holdings 200,000 507,111
---------------------------------------------------------------------------
6,099,491
---------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
Common Stocks and Market
Warrants (continued) Shares Value
------------------------------------------------------------------
<C> <S> <C> <C>
Indonesia--9.4%
PT Aneka Tambang Tbk 6,000,000 $ 1,274,725
PT Astra International Tbk 2,600,000 1,285,714
PT Cahaya Kalbar Tbk 8,441,250 1,391,415
PT Darya Varia Laboratoria Tbk 3,463,000 926,004
PT Daya Guna Samudera Tbk 970,000 422,821
PT Indosat (Persero) Tbk 685,000 1,114,066
PT Mayora Indah 12,144,500 1,423,531
PT Telekomunikasi Indonesia 1,000,000 476,190
PT Tempo Scan Pacific Tbk 610,000 411,136
PT Tunas Ridean Tbk 3,425,000 464,194
------------------------------------------------------------------
9,189,796
------------------------------------------------------------------
Ireland--0.5%
Allied Irish Banks plc. 40,000 501,209
------------------------------------------------------------------
501,209
------------------------------------------------------------------
Japan--13.1%
Asia Securities Printing Co., Limited 52,000 871,982
The Bank of Tokyo--
Mitsubishi, Limited 250 4,140
Horipro Inc. 30,000 233,135
INES Corporation 42,000 675,719
Kyokuto Kaihatsu Kogyo Co., Limited 105,700 668,475
Matsushita Seiko Co., Limited 56,000 218,934
Matsumoto Yushi-Seiyaku Co., Limited 15,000 337,773
N.E. Chemcat Corporation 20,000 183,979
Nitto Kohki Co., Limited 93,200 2,071,905
Nippon Sanso Corporation 710,000 2,224,703
Shiseido Company, Limited 60,000 914,143
Star Micronics Co., Limited 80,000 1,130,701
Tenma Corporation 170,000 2,182,829
Tokyo Style Co., Limited 65,000 619,730
Toshiba Corporation 70,000 440,015
------------------------------------------------------------------
12,778,163
------------------------------------------------------------------
Lebanon--0.3%
Banque Liban et D'outre-GDR 10,000 245,000
------------------------------------------------------------------
245,000
------------------------------------------------------------------
Mexico--0.8%
Grupo Industrial Maseca SA--ADR 50,000 343,750
Grupo Radio Centro SA--ADR 100,000 468,750
------------------------------------------------------------------
812,500
------------------------------------------------------------------
Netherlands--1.1%
Draka Holding NV 30,000 1,080,101
------------------------------------------------------------------
1,080,101
------------------------------------------------------------------
</TABLE>
16
<PAGE>
The Tocqueville International Value Fund
Investments as of October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Stocks and Market
Warrants (continued) Shares Value
-----------------------------------------------------------------------------
<C> <S> <C> <C>
Philippines--6.2%
DMCI Holdings, Inc.* 61,100,000 $1,765,280
Ionics Circuit, Inc. 5,681,000 1,697,933
Solid Group, Inc. 49,863,000 1,316,433
Universal Robina Corporation 7,775,000 1,239,352
-----------------------------------------------------------------------------
6,018,998
-----------------------------------------------------------------------------
Poland--0.6%
Telekomunikacja Polska-GDR 110,000 561,000
-----------------------------------------------------------------------------
561,000
-----------------------------------------------------------------------------
Singapore--11.0%
Clipsal Industries, Limited 4,000,000 3,280,000
Fraser & Neave, Limited 1,054,000 4,497,776
GP Batteries International, Limited 1,590,000 2,197,981
Robinson & Company, Limited 233,200 805,926
-----------------------------------------------------------------------------
10,781,683
-----------------------------------------------------------------------------
South Africa--0.9%
AngloGold, Limited 32,500 912,031
-----------------------------------------------------------------------------
912,031
-----------------------------------------------------------------------------
Spain--2.4%
Banco Santander Central Hispano SA 13,800 143,179
Centros Comerciales Pryca SA 52,000 976,811
Mapfre Vida Seguros 25,500 665,311
Miquel Y Costas 7,500 191,974
Viscofan Industria Navarra De Envolturas
Celulosicas SA 42,000 343,929
-----------------------------------------------------------------------------
2,321,204
-----------------------------------------------------------------------------
Sri Lanka--0.1%
John Keells Holdings, Limited 45,000 113,406
-----------------------------------------------------------------------------
113,406
-----------------------------------------------------------------------------
Switzerland--1.1%
ABB AB--ADR 79,000 1,076,375
-----------------------------------------------------------------------------
1,076,375
-----------------------------------------------------------------------------
Thailand--2.5%
Siam Commercial Bank Public Company, Limited 1,000,000 1,133,420
Siam Makro Public Company, Limited 600,000 1,025,907
Thai Rung Union Car Public Company, Limited--For-
eign 128,000 189,016
Thai Stanley Electric Public Company,
Limited 391,800 100,488
-----------------------------------------------------------------------------
2,448,831
-----------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
Common Stocks and Market
Warrants (continued) Shares Value
-----------------------------------------------------------------
<C> <S> <C> <C>
United Kingdom--1.3%
Jarvis PLC 210,000 $ 896,825
Skypharma plc. ADR* 50,000 387,500
-----------------------------------------------------------------
1,284,325
-----------------------------------------------------------------
Total Common Stocks and
Warrants (Cost $77,685,202) 67,303,191
-----------------------------------------------------------------
<CAPTION>
Principal Market
Bonds--7.5% Value Value
-----------------------------------------------------------------
<C> <S> <C> <C>
Germany--7.5%
-----------------------------------------------------------------
German Bundesschatzanweisung, 3.00%,
12/15/2000 $7,000,000 $ 7,310,522
-----------------------------------------------------------------
7,310,522
-----------------------------------------------------------------
Total Bonds (Cost $7,132,069) 7,310,522
-----------------------------------------------------------------
Total Investments (Cost $84,817,271)--76.4% 74,613,713
Cash**--15.0% 14,612,753
Other Assets & Liabilities--8.6% 8,449,295
-----------------------------------------------------------------
Total Net Assets--100.0% $97,675,761
-----------------------------------------------------------------
</TABLE>
* Non-income producing security.
** Cash balance is interest earning deposit with Chase Manhattan Bank.
17
<PAGE>
The Tocqueville Gold Fund
Investments as of October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stocks and Warrants--97.0% Shares Value
- --------------------------------------------------------------
<S> <C> <C>
Gold & Gold Related--66.1%
Acacia Resources Limited (AU) 47,000 $ 83,271
Agnico-Eagle Mines Limited 151,000 1,208,000
AngloGold Limited--ADR 30,000 841,875
Barrick Gold Corporation 34,150 625,372
Battle Mountain Gold Company 140,000 376,250
Delta Gold NL (AU) 47,000 79,377
Emperor Mines Limited (AU)* 100,000 48,435
Francisco Gold Corporation* 50,000 246,448
Franco-Nevada Mining Corporation
Limited (CN) 24,050 446,370
Glamis Gold Limited 184,000 368,000
Gold Fields Limited (SJ) 116,000 556,184
Gold Fields Limited--ADR 100,000 475,000
Goldcorp Incorporated 69,000 435,562
Harmony Gold Mining Company Limited 155,000 1,036,562
Homestake Mining Company 108,500 908,688
Ivanhoe Mines Limited (CN)* 200,000 169,964
Kinross Gold Corporation* 60,000 153,750
Manhattan Minerals Corporation (CN)* 50,000 155,687
Meridian Gold Incorporated* 80,000 570,000
Minas Buenaventura-Spon ADR 52,500 892,500
Moydow Mines International Incorporated * 106,600 130,451
Newmont Mining Corporation 40,000 877,500
Normandy Mining Limited (AU) 641,512 486,520
Pangea Goldfields (CN)* 150,000 377,320
Placer Dome Incorporated 64,245 778,971
TVX Gold, Inc* 350,000 350,000
- --------------------------------------------------------------
12,678,057
- --------------------------------------------------------------
Investment Companies--5.1%
ASA Limited 40,000 802,500
Gencor Limited (SJ) 50,000 185,517
- --------------------------------------------------------------
988,017
- --------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
Common Stocks and Market
Warrants (continued) Shares Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Precious Metals & Related--19.2%
Anglo American Platinum--ADR 25,000 $ 720,092
Apex Silver Mines Limited* 50,000 678,125
Canyon Resources Corporation* 200,000 62,500
Freeport-McMoran Copper & Gold, Incorporated* 40,000 667,500
Impala Platinum Holdings Limited 25,000 865,740
Kroondal Platinum Mines Limited (SJ)* 50,000 103,743
Pan America Silver Corporation* 25,000 162,500
Stillwater Mining Company* 21,250 427,656
- ----------------------------------------------------------------------------
3,687,856
- ----------------------------------------------------------------------------
Diamonds--6.6%
De Beers Cons Mines--ADR 15,000 405,938
Dia Met Minerals Limited* 35,000 507,500
Diamond Fields International, Ltd. (CN)* 200,000 258,345
Winspear Resources, Ltd.--Warrants* 59,000 101,273
- ----------------------------------------------------------------------------
1,273,056
- ----------------------------------------------------------------------------
Total Common Stocks
& Warrants (Cost $15,544,523) 18,626,986
- ----------------------------------------------------------------------------
Principal
Short-Term Investments--6.1% Amount
----------
Repurchase Agreement with Firstar Bank 3.30%, dated
10/29/99, due 11/01/99, collateralized by U.S.
Treasury Notes valued at $1,182,074. Repurchase
proceeds of $1,158,318.
(Cost $1,158,000) $1,158,000 $ 1,158,000
- ----------------------------------------------------------------------------
Total Short Term Investments
(Cost $1,158,000) 1,158,000
- ----------------------------------------------------------------------------
Total Investments
(Cost $16,702,523)--103.1% 19,784,986
Liabilities less Other Assets--(3.1)% (591,192)
- ----------------------------------------------------------------------------
Total Net Assets--100.0% $19,193,794
-----------
</TABLE>
* Non-income producing security.
(AU) Australia--(CN) Canada--(SJ) South Africa
ADR: American Depository Receipt
18
<PAGE>
The Tocqueville Trust
Statements of Assets and Liabilities
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
The Small Cap International
Tocqueville Value Value Gold
Fund Fund Fund Fund
----------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
Assets
Investments, at value* $57,408,156 $26,131,476 $74,613,713 $19,784,986
Foreign Currencies** 0 0 946,227 5,528
Cash*** 39,506 355,101 13,666,526 0
Receivable for investments
sold 2,278,226 619,310 9,526,591 0
Receivable for fund shares
sold 405 9,601 0 990
Dividends, interest and
other receivables 28,483 20,250 576,051 7,725
Prepaid Assets 8,997 6,547 12,627 7,302
Deferred Organization
Expense 0 595 0 22,641
----------- ----------- ----------- -----------
Total Assets 59,763,773 27,142,880 99,341,735 19,829,172
----------- ----------- ----------- -----------
Liabilities
Funds advanced by custodian 0 0 0 488,629
Payable for investments
purchased 1,817,307 868,434 1,417,135 0
Payable for fund shares
repurchased 21,077 0 0 67
Payable to Investment
Adviser 35,922 16,553 72,306 60,356
Accrued distribution fee 10,129 3,672 18,718 2,394
Accrued expenses and other
liabilities 78,590 65,871 157,815 83,932
----------- ----------- ----------- -----------
Total Liabilities 1,963,025 954,530 1,665,974 635,378
----------- ----------- ----------- -----------
Net Assets $57,800,748 $26,188,350 $97,675,761 $19,193,794
----------- ----------- ----------- -----------
Net assets consisted of:
Paid in capital $39,397,817 $19,798,211 $97,751,471 $16,253,546
Accumulated net realized
gain (loss) 1,431,821 4,023,764 10,136,312 (142,178)
Net unrealized appreciation
(depreciation) 16,971,110 2,366,375 (10,212,022) 3,082,426
----------- ----------- ----------- -----------
Net assets $57,800,748 $26,188,350 $97,675,761 $19,193,794
----------- ----------- ----------- -----------
Shares outstanding
(unlimited shares of $0.01
par value authorized) 3,295,364 1,664,071 8,592,521 1,479,886
Net asset value and
redemption price per share $ 17.54 $ 15.74 $ 11.37 $ 12.97
----------- ----------- ----------- -----------
Maximum offering price per
share $ 18.27 $ 16.40 $ 11.84 $ 13.51
----------- ----------- ----------- -----------
*Cost of Investments $40,437,046 $23,765,101 $84,817,271 $16,702,523
**Cost of Foreign
Currencies $ 0 $ 0 $ 947,098 $ 5,578
</TABLE>
*** Cash balances in the Tocqueville Fund, the Small Cap Value Fund and the In-
ternational Fund are interest earning balances.
See Notes to the Financial Statements.
19
<PAGE>
The Tocqueville Trust
Statements of Operations
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
The Small Cap International
Tocqueville Value Value Gold
Fund Fund Fund Fund
----------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Investment Income:
Dividends* $ 789,532 $ 133,665 $ 1,631,003 $ 173,495
Interest 60,433 24,168 309,065 20,169
---------- ---------- ----------- ----------
849,965 157,833 1,940,068 193,664
---------- ---------- ----------- ----------
Expenses:
Investment Adviser's fee 454,758 182,745 787,330 116,739
Custody fees 14,355 8,150 200,250 17,012
Fund accounting fees 21,165 19,455 42,475 23,492
Transfer agent and share-
holder services 33,335 11,305 14,820 12,934
Professional fees 24,060 19,075 27,760 18,675
Distribution fees 151,586 60,915 221,151 29,185
Administration fee 90,952 36,549 132,690 17,511
Printing and mailing ex-
pense 11,045 3,640 5,600 3,103
Registration fees 8,487 14,365 15,705 19,425
Trustee fees and expenses 7,790 7,415 8,000 9,010
Insurance expense 4,020 1,335 4,390 1,380
Interest expense 0 0 11,988 968
Amortization of organiza-
tion costs 0 5,617 4,635 4,139
Other 3,650 725 3,780 1,000
---------- ---------- ----------- ----------
Total expenses before
waiver 825,203 371,291 1,480,574 274,573
Less: Fees waived 0 0 0 (42,689)
---------- ---------- ----------- ----------
Net expenses 825,203 371,291 1,480,574 231,884
---------- ---------- ----------- ----------
Net Investment Income
(Loss) 24,762 (213,458) 459,494 (38,220)
---------- ---------- ----------- ----------
Realized and Unrealized
Gain (Loss):
Net realized gain (loss)
on:
Investments 1,734,624 4,198,622 16,445,599 (116,428)
Foreign currency
translation 0 0 (1,274,027) (2,086)
---------- ---------- ----------- ----------
1,734,624 4,198,622 15,171,572 (118,514)
Net change in unrealized
appreciation or
depreciation on:
Investments 5,359,007 1,365,126 11,614,071 2,648,862
Foreign currency
translation 278,068 (668)
---------- ---------- ----------- ----------
5,359,007 1,365,126 11,892,139 2,648,194
Net gain on investments
and foreign currency 7,093,631 5,563,748 27,063,711 2,529,680
---------- ---------- ----------- ----------
Net Increase in Net Assets
Resulting from Operations $7,118,393 $5,350,290 $27,523,205 $2,491,460
---------- ---------- ----------- ----------
*Net of Foreign Taxes
Withheld $ (1,942) $ 0 $ (154,139) $ (3,913)
---------- ---------- ----------- ----------
</TABLE>
See Notes to the Financial Statements.
20
<PAGE>
[This page intentionally left blank]
21
<PAGE>
The Tocqueville Trust
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
The Tocqueville Fund
--------------------------
For the Year For the Year
Ended Ended
October 31, October 31,
1999 1998
------------ ------------
<S> <C> <C>
Operations:
Net investment income (loss) $ 24,762 $ 232,410
Net realized gain (loss) on investments and for-
eign currency 1,734,624 4,555,614
Net change in unrealized appreciation or depreci-
ation 5,359,007 (7,924,209)
------------ -----------
Net increase (decrease) in net assets resulting
from operations 7,118,393 (3,136,185)
Dividends and Distributions to shareholders:
Net investment income (238,237) (184,680)
Net realized gains (4,560,528) (7,015,177)
------------ -----------
Total dividends and distributions (4,798,765) (7,199,857)
Capital share transactions
Shares Sold 8,187,740 11,460,273
Shares issued to holders in reinvestment of divi-
dends 4,262,666 6,318,448
Shares Redeemed (18,534,793) (10,875,514)
------------ -----------
Net increase (decrease): (6,084,387) 6,903,207
------------ -----------
Net increase (decrease) in net assets (3,764,759) (3,432,835)
Net Assets:
Beginning of period 61,565,507 64,998,342
------------ -----------
End of period* 57,800,748 61,565,507
------------ -----------
*Including undistributed net investment income
(loss) of: $ 0 $ 206,299
------------ -----------
</TABLE>
- --------
(1) Commencement of Operations
See Notes to the Financial Statements.
22
<PAGE>
The Tocqueville Trust
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Value Fund International Value Fund Gold Fund
------------------------------------------------------ ------------------------------
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended June 29, 1998(1)
October 31, October 31, October 31, October 31, October 31, thru
1999 1998 1999 1998 1999 October 31, 1998
------------ ------------ ------------ ------------ ------------ ----------------
<S> <C> <C> <C> <C> <C>
(213,458) (255,569) 459,494 407,254 (38,220) 1,169
4,198,622 (7,237) 15,171,572 (5,060,334) (118,514) (25,750)
1,365,126 (3,182,451) 11,892,139 (9,062,388) 2,648,194 434,232
----------- ---------- ----------- ------------ ----------- ----------
5,350,290 (3,445,257) 27,523,205 (13,715,468) 2,491,460 409,651
0 0 0 (666,647) (1,480) 0
0 (2,201,644) 0 0 0 0
----------- ---------- ----------- ------------ ----------- ----------
0 (2,201,644) 0 (666,647) (1,480) 0
9,717,101 6,711,422 38,925,782 25,439,613 17,085,937 7,819,077
0 2,059,937 0 638,631 1,413 0
(10,488,928) (2,101,435) (37,188,145) (4,243,787) (8,612,264) 0
----------- ---------- ----------- ------------ ----------- ----------
(771,827) 6,669,924 1,737,637 21,834,457 8,475,086 7,819,077
----------- ---------- ----------- ------------ ----------- ----------
4,578,463 1,023,023 29,260,842 7,452,342 10,965,066 8,228,728
21,609,887 20,586,864 68,414,919 60,962,577 8,228,728 0
----------- ---------- ----------- ------------ ----------- ----------
26,188,350 21,609,887 97,675,761 68,414,919 19,193,794 8,228,728
----------- ---------- ----------- ------------ ----------- ----------
$ 0 ($255,569) $ 0 $ 0 $ 0 $ 1,169
----------- ---------- ----------- ------------ ----------- ----------
</TABLE>
See Notes to the Financial Statements.
23
<PAGE>
The Tocqueville Trust
The Tocqueville Fund
The Tocqueville Small Cap Value Fund
The Tocqueville International Value Fund
The Tocqueville Gold 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 and The Tocqueville Gold 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 International Value
Fund is long-term capital appreciation primarily through investment in securi-
ties of issuers located outside the United States. The objective of The
Tocqueville Gold Fund is to provide long-term capital appreciation through in-
vestments in Gold and Securities or companies located throughout the world that
are engaged in mining or processing gold, and through investments in other pre-
cious metals and securities of companies located throughout the world that are
engaged in mining or processing such other precious metals. The following is a
summary of significant accounting principles followed by the Trust in the prep-
aration 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 Gold
Fund are being amortized on a straight-line basis over a five-year period from
the Fund's commencement of operations.
24
<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 and The Tocqueville Gold Fund are engaged
in transactions in securities denominated in foreign currencies and, as a re-
sult, enters into foreign exchange contracts. These Funds 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. Risks include potential inability of
counterparties to meet the terms of their contracts. The value of foreign cur-
rency 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 trad-
ing, resulting in daily unrealized gains and/or losses. When the contracts are
closed, the Funds recognize 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.
25
<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 Gold Fund, payable monthly at
an annual rate of 1.00% on the first $500 million of the average daily net
assets or the Fund, .75% of average daily net assets in excess of $500 million
but not exceeding $1 billion, and .65% of the average daily net assets in
excess of $1 billion.
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 year ended October 31, 1999, the
Adviser has made payments of $27,214, $17,940, $38,557 and $20,940 to Firstar
Mutual Fund Services, LLC 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 Gold Fund,
respectively.
Tocqueville waived fees of $42,689 from The Tocqueville Gold Fund, for the
year ended October 31, 1999.
Tocqueville Securities L.P. (the "Distributor") acts as distributor for
shares of the Fund and purchases shares of the Fund at net asset value to fill
orders as received from investment dealers. For the year ended October 31,
1999, the Distributor received net commissions of $25,634 from the sale of the
Trust's shares.
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 October 31, 1999, there were 156,388, 66,194, and 12,208
in unreimbursed expenses for The Tocqueville Fund, The Tocqueville Small Cap
Value Fund and The Tocqueville Gold Fund, respectively.
26
<PAGE>
- --------------------------------------------------------------------------------
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 Gold Fund for the year ended October 31, 1999, were $37,788,
$62,055, $8,800 and $32,320, respectively.
27
<PAGE>
- --------------------------------------------------------------------------------
4. FUND SHARE TRANSACTIONS
The Funds currently offer only one class of shares of beneficial interest.
<TABLE>
<CAPTION>
The
Tocqueville
Fund
------------------------
Amount Shares
------------ ----------
<S> <C> <C>
Year ended October 31, 1999
Shares sold $ 8,187,740 464,043
Shares issued to owners in reinvestment of dividends 4,262,666 276,258
Shares redeemed (18,534,793) (1,065,867)
------------ ----------
Net Increase (decrease) $ (6,084,387) (325,566)
------------ ----------
Year ended October 31, 1998*
Shares sold $ 11,460,273 628,666
Shares issued to owners in reinvestment of dividends 6,318,448 362,508
Shares redeemed (10,875,514) (587,124)
------------ ----------
Net Increase $ 6,903,207 404,050
------------ ----------
</TABLE>
- --------
* For the period June 29, 1998 through October 31, 1998 for the Gold Fund.
28
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap
Value International Value
Fund Fund Gold Fund
- ----------------------- ----------------------- ----------------------
Amount Shares Amount Shares Amount Shares
- ------------ -------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C>
$ 9,717,101 668,128 $38,925,782 3,419,548 $17,085,937 1,485,405
0 0 0 0 1,413 109
(10,488,928) (720,354) (37,188,145) (3,258,146) (8,612,264) (770,273)
- ------------ -------- ----------- ---------- ----------- ---------
$ (771,827) (52,226) $ 1,737,637 161,402 $ 8,475,086 715,241
- ------------ -------- ----------- ---------- ----------- ---------
$ 6,711,422 456,425 $25,439,613 2,880,164 $ 7,819,077 764,645
2,059,937 144,685 638,631 73,406 0 0
(2,101,435) (148,051) (4,243,787) (506,725) 0 0
- ------------ -------- ----------- ---------- ----------- ---------
$ 6,669,924 453,059 $21,834,457 2,446,845 $ 7,819,077 764,645
- ------------ -------- ----------- ---------- ----------- ---------
</TABLE>
29
<PAGE>
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term instru-
ments) for the year ended October 31, 1999 were as follows:
<TABLE>
<CAPTION>
The Small Cap International
Tocqueville Value Value Gold
Fund Fund Fund Fund
----------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
Purchases $15,044,055 $17,169,567 $ 62,664,815 $13,453,339
----------- ----------- ------------ -----------
Sales $24,009,801 $18,168,938 $ 81,682,984 $ 4,872,161
----------- ----------- ------------ -----------
Unrealized appreciation (depreciation) at October 31, 1999 based on cost of
securities for Federal tax purposes is as follows:
<CAPTION>
The Small Cap International
Tocqueville Value Value Gold
Fund Fund Fund Fund
----------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
Gross unrealized appre-
ciation $20,466,441 $ 4,789,957 $ 7,668,250 $ 3,496,955
Gross unrealized depre-
ciation (3,530,703) (2,561,950) (18,068,639) (452,113)
----------- ----------- ------------ -----------
Net unrealized
appreciation
(depreciation) $16,935,738 $ 2,228,007 $(10,400,389) $ 3,044,842
----------- ----------- ------------ -----------
Cost of investments $40,472,418 $23,903,469 $ 85,014,102 $16,740,144
----------- ----------- ------------ -----------
</TABLE>
At October 31, 1999, The Tocqueville Gold Fund had tax basis capital losses
of $105,000 which may be carried over to offset future capital gains through
October 31, 2007. Net realized capital gain (loss) differ for financial state-
ment and tax purposes primarily due to differing treatments of wash sales.
30
<PAGE>
The Tocqueville Trust
- --------------------------------------------------------------------------------
Report of Independent Accountant
To the Board of Trustees and Shareholders of
The Tocqueville Trust
In our opinion, the accompanying statements of assets and liabilities,
including the investment portfolios and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in
all material respects, the financial position of The Tocqueville Trust,
including The Tocqueville Fund, The Tocqueville Small Cap Value Fund, The
Tocqueville International Value Fund and The Tocqueville Gold Fund (hereafter
referred to as the "Trust") at October 31, 1999, and the results of their
operations, the changes in their net assets and the financial highlights for
the year then ended, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit of these financial
statements in accordance with generally accepted auditing standards, which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities at October 31, 1999 by correspondence with the
custodian, provides a reasonable basis for the opinion expressed above. The
financial statements of the Trust as of October 31, 1998 including the
financial highlights for each of the periods prior to October 31, 1999, were
audited by other independent accountants whose report dated December 4, 1998
expressed an unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
November 24, 1999
31
<PAGE>
The Tocqueville Trust
- --------------------------------------------------------------------------------
Change In Independent Accountant
On August 13, 1999, McGladrey & Pullen, LLP ("McGladrey") resigned as indepen-
dent auditors of the Trust pursuant to an agreement by PricewaterhouseCoopers
LLP ("PwC") to acquire McGladrey's investment company practice. The McGladrey
partners and professionals serving the Trust at the time of the acquisition
joined PwC.
The reports of McGladrey on the financial statements of the Trust during the
past two fiscal years contained no adverse opinion or disclaimer of opinion,
and were not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audits for the two most recent fiscal years and through
August 13, 1999 there were no disagreements with McGladrey on any matter of ac-
counting principle or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
McGladrey would have caused it to make reference to the subject matter of dis-
agreement in connection with its report.
On September 9, 1999, the Trust, with the approval of its Board of Trustees and
its Audit Committee, engaged PwC as its independent auditors.
32
<PAGE>
Investment Adviser
Tocqueville Asset Management L.P.
1675 Broadway
New York, NY 10019
(212) 698-0800
www.tocqueville.com
Distributor
Tocqueville Securities L.P.
1675 Broadway
New York, NY 10019
(212) 698-0800
Shareholders' Servicing and Transfer Agent
Firstar Mutual Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
(800) 697-3863
Custodian
Firstar Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
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
