As filed with the Securities and Exchange Commission on July 6, 2005
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4840
The Tocqueville Trust
(Exact name of registrant as specified in charter)
The Tocqueville Trust
40W. 57th Street, 19th Floor
New York, NY 10019
(Address of principal executive offices) (Zip code)
Robert W. Kleinschmidt, President
The Tocqueville Trust
40W. 57th Street, 19th Floor
New York, NY 10019
(Name and address of agent for service)
212-698-0800
Registrant's telephone number, including area code
Date of fiscal year end: October 31
Date of reporting period: April 30, 2005
Item 1. Report to Stockholders.
SEMI-ANNUAL REPORT
April 30, 2005
The Tocqueville Trust
Mutual Funds
The Tocqueville Fund
The Tocqueville Small Cap Value Fund
The Tocqueville International Value Fund
The Tocqueville Gold Fund
The Tocqueville Genesis Fund
[LOGO]
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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
carefully before you invest.
You are invited to visit our website @ www.tocquevillefunds.com
Dear Fellow Shareholder,
The current environment presents a double challenge for contrarian value
investors like us.
As contrarians, we would like to take the opposite tack to some of the most
powerful trends of the last decade or more, which have come to be considered by
many as a permanent. These include, first and foremost, the stubbornly low
long-term interest rates.
A reversal in long-term borrowing costs would first depress the housing
market. But it would also hurt the consumer sector. Through the refinancing of
mortgages at lower rates and longer maturities, consumers have been able to
spend more than their current incomes would have justified, and now carry a
record amount of debt. Some argue that the consumer's balance sheet is solidly
supported by asset values (investment portfolios and homes). But there is a
difference between theoretical solvability and operational liquidity.
Historically, we have seen companies with more assets than liabilities on their
balance sheets nevertheless go bankrupt because they did not have access to
sufficient cash to finance ongoing operations. If the stock market declines and
houses become harder to sell, the U.S. consumer could be in for some rough
going.
Of course, rising interest rates would also hurt overly leveraged
corporations and could have dramatic but incalculable consequences on an
increasingly convoluted and leveraged financial industry, characterized by the
new importance of leveraged hedge funds, funds of funds and the trading of
increasingly complex instruments, often created out of thin air, without
underlying assets.
The problem is that these bubbles in the making are currently widely
recognized and the object of daily warnings in the media: this all but
guarantees that they are not yet about to burst. But long-term interest rates
have now been declining for about twenty-five years, so that few of today's
market participants can remember all the pain associated with rising interest
rates. In the end, these bubbles will burst, as do all bubbles. The contrarian
thus has to arbitrage time horizons: eventual bear, but cautious participant in
the near-term.
Opposite challenges are presented by the markets for natural resources
(oils, metals, etc.), where the long-term optimistic scenarios remain
compelling but the near term is clouded by strong, bullish consensuses
compounded by incremental demand from financial speculators.
As value investors, we are faced by another set of challenges.
First, we find very few companies with the wherewithal to navigate the
uncertain times ahead and that are selling at deep discounts to their estimated
enterprise values.
Second, some companies with apparently low price/earnings ratios currently
sport levels of profitability that may not be sustainable over the longer term.
For example, the Leuthold Group calculates that the profit margins of the
Standard & Poor's energy sector are at an almost fifty-year high, having now
surpassed even the spike levels of 1973, when the OPEC oil embargo caused oil
prices to suddenly quadruple (with an almost entire flow-through to the bottom
line). As profitability declines from unsustainable levels in basic resource
industries, price-earnings ratios will no longer seem as cheap.
Third, the valuation of stocks by the market has become very
indiscriminate. Big and small companies; financially strong or weak; faster or
slower growing: almost all companies now sell within a historically very narrow
range of price/earnings ratios. As a result, companies with a somewhat higher
price/earnings ratio but with good finances and the potential to grow at an
above-average rate may be where value lies in today's markets.
To a degree or another, we are faced with a similar conundrum in most
international markets--complicated, of course by the necessity to make a
judgment about the future of the U.S. dollar. Our view remains that the dollar
will remain generally weak for several years, although this weakness may be
observed more against Asian currencies than against the Euro from current
levels. The net result, however, is likely to be that, with smaller inflows of
foreign capital, interest rates will rise and American economic cycles will
fluctuate around a slower growth trend.
Fortunately, both the long-term contrarian approach and the search for
relative values are reinforcing each other. They lead us toward the same type
of companies, in the health and technology areas, which have cycle-resistant
characteristics, higher intrinsic growth trends and, generally, the financial
wherewithal to be opportunistic when chances arise.
It is the shift from our former winners (in the basic, cyclical industries)
to the future economic leaders (in growth industries) that is tricky. These
contemplated new investments are now historically cheap in relative terms, but
the timing and pace of the transition is difficult to assess. As a result, we
are re-positioning our portfolios at a measured pace, trying to minimize the
likely bumps and false starts along the way.
Respectfully,
/s/
Francois Sicart
Chairman
Semi-Annual Report 1
The Tocqueville Fund
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Dear Fellow Shareholder,
The Tocqueville Fund registered a 5.82% gain in the first six months of our
fiscal year ended April 30, 2005. This compares with a 3.28% gain by the S&P
500 over the same period.
It was a volatile period for the markets and for your fund, with both
registering gains in three of the six months in the period and losses in the
other three months. Swings were particularly pronounced in November following
the election results and in February, possibly due to relief associated with
the Iraqi elections. In both months your fund registered gains of more than 5%.
On the other hand, January, March and April were all difficult months with the
fund losing more than 2% in each of those months.
Such volatility has been unusual until of late and signals a transition
period in my view. For the past two years, cyclical stocks, especially
commodity producers in which The Tocqueville Fund has been well represented,
have led the market. Recent market action leads me to believe that these stocks
are unlikely to lead the market in the next up cycle. Indeed, we have been
trimming positions of all our commodity producers, not just for this reason,
but also because valuations have begun to look, if not full, at least fair. Nor
am I unmindful of renewed investor and media enthusiasm for this theme over the
period. For a contrarian, such enthusiasm often serves as an early warning sign.
Still, we are not entirely out of these kinds of stocks, as it remains our
belief that we are in a secular period of re-inflation. Within that period
there will be cycles and we have probably reached the end of the first such
cycle. If so, the transition period that market volatility seems to be
forecasting may well favor formerly out of favor healthcare and technology
names. These are where we are currently finding some of the most intriguing
values. Investor psychology has been negative in these areas for a number of
years. Companies such as Microsoft, Cisco, EMC, Oracle, Intel, etc. remain
dominant companies in their industry, sport pristine balance sheets, generate
mountains of cash, have high quality earnings, and no legacy liabilities
associated with pension plans, asbestos and the like. Our only problem with
companies such as these has been valuation. After five years of disappointing
stock price performance, valuations of many of these former darlings of Wall
Street have come in line. The healthcare area, particularly pharmaceutical
shares, have also lagged badly over the past five years. Here too it appears
that investors, while discounting well-known negative factors, are ignoring
considerable strengths. In our view, this is a productive area for contrarian
thinking.
Perhaps the most perplexing development of the first half of the fiscal
year was the performance of the long bond. Notwithstanding (or perhaps I should
say because of) near unanimity regarding the inevitability of rising rates, the
long-term bond rates fell significantly over the period. Indeed as I write
this, long rates are down over 100 basis points since the Federal Reserve began
tightening over a year ago. Clearly, the bond market is not concerned with
long-term inflation. Even though we are positioned otherwise, I hope the bond
market is correct. A resurgence of inflation is an ugly thing, not to be wished
for. Nonetheless, we strongly believe it is prudent to plan for rising
inflation and interest rates, so we have avoided shares that, in our opinion,
would be hurt the most under that scenario. If we are wrong, the overall equity
market will likely do better than we expect and we will almost certainly lag it
in performance. That's a risk we are willing to take.
As ever, I appreciate your loyalty and support as my fellow shareholder in
The Tocqueville Fund.
Sincerely,
/s/ Robert Kleinschmidt
Robert W. Kleinschmidt
Portfolio Manager
See Legend on Page 12
2 April 30, 2005
The Tocqueville Fund
[CHART]
Tocqueville Fund Tocqueville Fund
(Net Asset Value) (Load) S&P 500
----------------- ----------- --------
10/31/1994 $10,000 $ 9,600 $10,000
10/31/1995 11,601 11,137 12,644
10/31/1996 14,232 13,663 15,691
10/31/1997 19,136 18,371 20,730
10/31/1998 18,258 17,528 25,288
10/31/1999 20,571 19,749 31,780
10/31/2000 22,612 21,708 33,715
10/31/2001 20,152 19,346 25,320
10/31/2002 18,362 17,628 21,494
10/31/2003 24,615 23,630 25,965
10/31/2004 27,980 26,860 28,411
04/30/2005 29,608 28,424 29,343
This chart assumes an initial gross investment of $10,000 made on 10/31/94.
Returns shown do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. Performance
reflects fee waivers in effect. In the absence of fee waivers, 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.
The Standard & Poor's 500 Stock Index (S&P 500) is a capital-weighted index,
representing the aggregate market value of the common equity of 500 stocks
primarily traded on the New York Stock Exchange.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 2005
--------------------------------------------------------------
1 Year 3 Year 5 Year 10 Year
--------------------------------------------------------------
Tocqueville Fund--Net Asset Value 11.33% 8.38% 6.56% 10.78%
Tocqueville Fund--Load* 11.33% 8.38% 6.56% 10.33%
Standard & Poor's 500 Stock Index 6.34% 4.24% -2.94% 10.26%
--------------------------------------------------------------
* Effective February 1, 2000, the Fund eliminated its sales load.
Semi-Annual Report 3
The Tocqueville Small Cap Value Fund
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Dear Fellow Shareholder,
The overall returns of The Tocqueville Small Cap Value Fund during the
first half of this new fiscal year reflect a somewhat difficult market
environment for many small cap companies in general. As a result, we gave back
all of the appreciation posted in the first few months of the new fiscal year,
and some more. We closed our first half year ended April 30, 2005 with a
decline of 6.99% in net asset value. By comparison, our Russell 2000 index
benchmark had a negative return of only 0.15% over the same period.
While these results remain well below what we have grown accustomed to
delivering in the past, the numerous positive indications I receive from our
portfolio companies give me every reason to be optimistic for the period
immediately ahead. Meanwhile, we are sticking to our value-based investment
strategies of managing for the long-term, as opposed to trying to outperform
any index over the short-term.
Over the past ten years ended April 30, 2005, the Tocqueville Small Cap
Value Fund delivered average annual total returns of 12.89% versus 9.54% for
its Russell 2000 benchmark. As mentioned on many prior occasions, I will try my
very best to maintain such levels of performance in the future, and hopefully
deliver improving returns in the second half.
Cautious Optimism Maintained
In retrospect, the performance of the Fund during the past six months
largely reflects some lack of economic progress in general, and some clear
deterioration at three of our large and most economically sensitive holdings.
To be more specific, we made the difficult decision to liquidate two of our
automotive parts companies at a loss. We also sold a grocery foods holding in
the least opportune of conditions.
Net of these and other sales, we added five new names to the Fund over the
past six months. New additions include ABM Industries, the large U.S.
facilities service contractor; Bentley Pharmaceuticals, an emerging generic
pharmaceuticals producer; Bob Evans Farms, the full-service restaurant chain;
Intervoice, an interactive voice response solution provider; and Plexus Corp, a
custom provider of OEM electronic design, manufacturing and testing services.
New to our top-ten list through appreciation are marine pipeline construction
service provider Global Industries, and specialty pharmaceuticals distributor
Priority Healthcare Corp. Del Monte Foods Co. remains our single largest
holding.
As a result of these changes, we have lowered our total exposure to
manufacturing, consumer goods and transportation-related industries. Healthcare
is our largest area of concentration at 15% of assets. Other areas of focus
include emerging companies in manufacturing (14%), telephone and wireless
hardware (11%), computer software (13%), electronics (10%), consumer foods
(9%), petroleum exploration and production services (8%), plastics and
specialty chemicals (8%), automotive-related suppliers (6%). Personnel and
business services remain unchanged (3%) with cash equivalents at 2%. Following
is a description of our ten largest positions.
Ten Largest Positions as of April 30, 2005:
Del Monte Foods Co. (6.7%) Canned foods
Schering-Plough (6.4%) Pharmaceuticals
PowerWave Technologies (6%) Wireless signal amplifiers
Vicor Inc. (5.9%) Integrated power supplies
Global Industries (5.8%) Offshore petroleum services
Hercules Inc. (5%) Pulp & paper chemicals
Informatica Inc. (4.8%) Database software
Timken Co. (4.5%) Industrial roller bearings
Westell Technologies Inc. (4.4%) Telco CPE DSL hardware
Priority Healthcare (4.4%) Specialty pharmacy services
In closing, let me express my gratitude for your selection of The
Tocqueville Small Cap Value Fund to achieve your long-term investment goals.
Sincerely,
/s/ Jean-Pierre Conreur
Jean-Pierre Conreur
Portfolio Manager
See Legend on Page 12
4 April 30, 2005
The Tocqueville Small Cap Value Fund
[CHART]
Small Cap Value Fund Small Cap Value Fund
(Net Asset Value) (Load) Russell 2000
----------------- --------------------------- ------------
10/31/1994 $10,000 $ 9,600 $10,000
10/31/1995 11,922 11,445 11,835
10/31/1996 14,272 13,701 13,800
10/31/1997 19,413 18,636 17,847
10/31/1998 16,817 16,144 15,734
10/31/1999 21,038 20,197 18,074
10/31/2000 27,045 25,963 21,220
10/31/2001 28,740 27,591 18,525
10/31/2002 25,375 24,360 16,382
10/31/2003 39,229 37,660 23,487
10/31/2004 38,853 37,299 26,242
04/30/2005 36,137 34,692 26,202
This chart assumes an initial gross investment of $10,000 made on 10/31/94.
Returns shown do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. Performance
reflects fee waivers in effect. In the absence of fee waivers, 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.
The Russell 2000 Index is an unmanaged index which measures the performance of
the 2,000 smallest companies in the Russell 3000 Index, which represents
approximately 8% of the total market capitalization of the Russell 3000 Index.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 2005
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1 Year 3 Year 5 Year 10 Year
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Tocqueville Small Cap Value Fund--Net Asset Value -18.17% 1.64% 4.10% 12.89%
Tocqueville Small Cap Value Fund--Load* -18.17% 1.64% 4.10% 12.43%
Russell 2000 Index 4.71% 5.62% 4.08% 9.54%
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* Effective February 1, 2000, the Fund eliminated its sales load.
Semi-Annual Report 5
The Tocqueville International Value Fund
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Dear Fellow Shareholder,
For the six months ended April 30, 2005, the Tocqueville International Value
Fund's total U.S. dollar return was 8.94%. In the same period, the Morgan
Stanley EAFE Index had a total U.S. dollar return of 8.95%.
At the outset of the period, George Bush won the U.S. Presidency and
reiterated a pro growth economic stance, oil prices declined on the back of a
surprise inventory build and, as a consequence, equity markets globally vaulted
upwards.
Since year end, the U.S. equity markets have fluctuated with mercurial
investor views on oil prices, inflation, growth, and interest rates. Corporate
profits have continued to expand, but $50 oil, rising short-term interest rates
in the U.S., questions about the pace of Chinese growth, and declining
long-term U.S. interest rates combined to raise the specter of economic
slowdown and inflation, limiting any market advances.
Most markets outside the U.S. continued to advance through March, when
worries about global growth led to pullbacks across the board.
During most of the period, the European markets, despite headlines about
weak economic conditions, increased on the back of improving corporate
profitability and from relatively low valuation levels. Japan followed a
similar pattern, rising until worries about the U.S. and China cast doubts
about the sustainability of Japan's economic recovery.
Asian markets were up through year end along with global markets and pushed
along in some cases by speculative buying in advance of a possible Renminbi
revaluation. Then as the U.S. raised short-term interest rates and global
liquidity tightened, the Asian markets declined.
As we opined in our October letter, consensus opinion regarding the U.S.
dollar had become excessively pessimistic in relation to the Euro, and the Euro
was due for a correction. This indeed began to occur in earnest during the
latter part of the period, as a growing short-term interest rate differential
in favor of the U.S. coincided with investor concerns about the imminent vote
on the European constitution by France and the Netherlands.
During the six months, the European BE 500 index increased by 7.5% in local
currency terms, the Japanese Nikkei 225 increased by 2.8% in local currency
terms, and the Morgan Stanley Far East increased by 6.7%. The Euro and the Yen
increased by 0.6% against the U.S. dollar.
Our geographic exposure was little changed during the period, with Japan and
Asia remaining at 19% and 18%, respectively, and Europe increasing from 45% to
47%, funded via a reduction in Latin America. We sold a few positions that met
our valuation targets, like Belgian wire and cable producer Bekaert, Mexican
media conglomerate Televisa, and Japanese metal cutting equipment manufacturer
Amada.
Despite the macroeconomic cross-currents, we continue to find attractive,
undervalued stocks, and our buying activity has been concentrated on companies
where value creation is a function of a proactive management team executing on
a strategic plan to restructure, or improve returns on, quality assets.
We purchased Dutch food company CSM, a special situation where the sale of
the sugar confectionery business de-levered the balance sheet and created a
strong biochemicals and food ingredients franchise at 11 times P/E. We also
purchased Norwegian company Nutreco, where management sold its low return pork
processing business and spun out its fish farming operations into a joint
venture to focus on a growing, higher return fish and animal feed operation,
which we bought for a pro forma P/E of 10 times.
In keeping with our contrarian approach, we sought and found opportunities
in the technology sector, where investor sentiment had become very negative. We
purchased Samsung SDI, the global leader in mobile display for handsets,
depressed due to investor concerns about falling LCD prices and trading at 6
times the 2006 P/E. Also in Asia, we initiated a position in Global Biochem,
the number 1 Chinese producer of animal feed ingredient lysine, trading at less
than 10 times the 2005 P/E based on cyclically low lysine prices, and with
significant growth potential from a proprietary polyol processing technology.
As noted in previous letters, we are concerned about the global imbalances
we have cited during the last two years. To recap, we believe that the debt
financed, consumer driven U.S. economy will have to slow. We expect that the
Asian currencies, which tend to be U.S. dollar linked and have depreciated
against the European currencies, will be pressured to revalue upward. This,
however, will not correct the U.S. current account deficit, which will only be
remedied by a reduction of U.S. domestic consumption. As growth in the U.S.
slows, it will become more challenging for companies that export to the U.S. to
generate growth in earnings and cash flow.
However, in our view, the challenges posed by stronger domestic currencies
or weaker export markets will provide added impetus to the economic reforms and
corporate restructuring activities that we have noted in recent years. This in
turn should continue to create good investment opportunities for disciplined,
value-oriented investors. Regardless of what might happen in the U.S., we do
expect that Asia, and in particular China, will continue to grow well, with
domestic demand comprising an ever larger part of that growth.
In general, we expect the non-U.S. markets to benefit from improving
corporate governance and management practices, the development of local equity
cultures, declining macroeconomic risk premiums and positive capital flows.
Against this background, inefficient pricing of equities, particularly among
small and mid-cap companies, can provide exceptional opportunities. We continue
to employ our investment discipline, seeking to discover fundamentally
attractive companies that are out of favor and undervalued, and to provide our
shareholders with above average returns with below average risk.
Respectfully,
/s/ /s/
James Hunt Francois Sicart
Portfolio Manager Portfolio Manager
See Legend on Page 12
6 April 30, 2005
The Tocqueville International Value Fund
[CHART]
International Value Fund International Value Fund
(Net Asset Value) (Load) EAFE Index
----------------------- ------------------------- ----------
10/31/1994 $10,000 $ 9,600 $10,000
10/31/1995 10,808 10,376 9,993
10/31/1996 12,545 12,043 11,072
10/31/1997 10,748 10,318 11,617
10/31/1998 8,662 8,316 12,773
10/31/1999 12,144 11,659 15,758
10/31/2000 10,211 9,803 15,339
10/31/2001 8,728 8,379 11,553
10/31/2002 8,764 8,414 10,059
10/31/2003 13,154 12,628 12,833
10/31/2004 15,864 15,229 15,306
04/30/2005 17,282 16,591 16,675
This chart assumes an initial gross investment of $10,000 made on 10/31/94.
Returns shown do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. Performance
reflects fee waivers in effect. In the absence of fee waivers, 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.
The Morgan Stanley EAFE Index is an unmanaged market-capitalization-weighted
index composed of companies representative of the market structure of 20
Developed Market Countries in Europe, Australia, Asia and the Far East.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 2005
- ----------------------------------------------------------------------------------
1 Year 3 Year 5 Year 10 Year
- ----------------------------------------------------------------------------------
Tocqueville International Value Fund--Net Asset Value 17.26% 14.50% 8.72% 5.07%
Tocqueville International Value Fund--Load* 17.26% 14.50% 8.72% 4.64%
Morgan Stanley EAFE Index 15.42% 10.95% -0.19% 5.10%
- ----------------------------------------------------------------------------------
* Effective February 1, 2000, the Fund eliminated its sales load.
Semi-Annual Report 7
The Tocqueville Gold Fund
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Dear Fellow Shareholder,
Gold bullion is trading within 6.6% of a seventeen year high, despite
negative sentiment. Over the past five years, the dollar gold price has
increased 55% vs. a 13.86% decline for the S&P 500 and a 21% decline for the
trade weighted dollar. However, since January 1, 2005, gold is flat and the S&P
500 is down 4%, the trade weighted dollar is up 6% and the gold share index is
down 16%.
The weakness of the gold shares is a good proxy for investor sentiment. We
believe it is at rock-bottom. This is confirmed by the Hulbert Gold Newsletter
Sentiment Index which has matched record low readings.
These extremes occur only at important lows. For the first time in years,
gold shares can be said to represent a contrarian investment play. It is hard
to know the duration of this opportunity. However, gold and gold shares have a
history of perverse volatility. In other words, the opportunity could be short
lived. Despite the ugliness of the near term charts, share prices remain within
the boundaries of a long term bull market trend. It is the purpose of every
bull market to take as few investors along as possible. The recent shakeout,
which began in earnest in early March, has done an excellent job of chilling
investment sentiment. In our opinion, at this point, the shares are in strong
hands and we suspect the weak hands no longer holding gold include many
investors who were unable to sell or unwind illiquid complex debt positions
that blew up in April. The improvement of the Commodities Future Trading
Corporation numbers in recent weeks, we believe, supports this thesis.
In our view, money usually finds its way into gold under one scenario only.
That is the lack of investment returns elsewhere, the desire for perceived
safety, and the ascendance of a risk-averse psychology at large. The
still-unfolding crack up of financial engineering in the fixed-income sector
illustrates what it takes for investors to transit from greed to a risk-averse
stance. We believe that investors thought that they were positioned in
uncorrelated instruments that were insulated from market vicissitudes and
uncertainties. These opaque financial structures, such as collateralized debt
obligations (CDOs), were marketed by proponents quite similar to those who
espoused portfolio insurance in 1987 and convergence strategies wrapped in
breath taking leverage such as Long Term Capital Management, whose near
bankruptcy in 1998 created a credit crisis.
It will take a few more years before investors become enthralled with the
next "can't lose" proposition. In the meantime, they are assessing the damage
from this latest misadventure in CDOs. It may take a few weeks to a few months
before they identify gold and gold shares as the likely recipient of increased
flows of safety-seeking capital.
The macro economic rationale for exposure to gold remains compelling. The
American fiscal and trade deficits show little sign of abating. Real interest
rates remain negative because consumer debt burdens prevent the Federal Reserve
from anything more than token rate increases. Soft economic numbers,
exemplified by four consecutive monthly declines in the index of leading
economic indicators, suggest that fear of a recession will soon displace fear
of inflation as the preoccupation of monetary policy. It will not be long
before the Federal Reserve declares that the process of "measured" rate
increases has concluded. While the US dollar has firmed somewhat against the
euro, in part to redress the excessive dollar short exposure that prevailed at
the end of last year, the prospect of declining dollar interest rates will
trigger a return to the currency's slide.
It is worth noting that foreign central banks were net sellers of US
treasuries in March. Only short covering by hedge funds to offset these sales
prevented a resumption of the dollar decline last month. The March numbers are
just one month and therefore inconclusive. Anyone who feels they can predict
the precise moment when foreign central banks become persistent net sellers of
their dollar reserves should wait until then to position gold. For those who
cannot make such predictions, we believe that the time to purchase gold is now.
Gold remains in a multi-year bull market that, in our opinion, will last
through this decade. We expect the dollar gold price to trade well into four
digit territory before it has concluded. We therefore counsel patience at the
very least and, where possible, increased exposure to take advantage of the
current opportunity.
Sincerely,
/s/ John Hathaway
John C. Hathaway
Portfolio Manager
See Legend on Page 12
8 April 30, 2005
The Tocqueville Gold Fund
[CHART]
Philadelphia Stock
Gold Fund Gold Fund Exchange Gold Standard & Poor's
(Net Asset Value) (Load) and Silver Index 500 Stock Index
----------------- --------- ------------------ -----------------
06/29/1998 $10,000 $ 9,600 $10,000 $10,000
10/31/1998 10,760 10,330 10,541 9,738
10/31/1999 12,971 12,452 9,901 12,238
10/31/2000 10,081 9,678 6,379 12,983
10/31/2001 13,117 12,592 8,069 9,750
10/31/2002 20,584 19,761 9,556 8,277
10/31/2003 36,495 35,036 15,006 9,999
10/31/2004 37,236 35,747 15,987 10,940
04/30/2005 32,947 31,629 12,996 11,299
This chart assumes an initial gross investment of $10,000 made on 6/29/98
(commencement of operations). Returns shown do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Performance reflects fee waivers in effect. In the absence of fee
waivers, 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.
In 2003, the performance of The Tocqueville Gold Fund was achieved during a
period of unusually favorable market conditions. Such performance may not be
sustainable.
The Philadelphia Stock Exchange Gold and Silver Index is an unmanaged
capitalization-weighted index which includes the leading companies involved in
the mining of gold and silver.
The Standard & Poor's 500 Stock Index (S&P 500) is a capital-weighted index,
representing the aggregate market value of the common equity of 500 stocks
primarily traded on the New York Stock Exchange.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 2005
- --------------------------------------------------------------------------------------
Since Inception
1 Year 3 Year 5 Year 6/29/1998
- --------------------------------------------------------------------------------------
Tocqueville Gold Fund--Net Asset Value 6.29% 15.45% 25.67% 19.04%
Tocqueville Gold Fund--Load* 6.29% 15.45% 25.67% 18.32%
Philadelphia Stock Exchange Gold and Silver Index 3.15% 5.65% 10.53% 3.91%
Standard & Poor's 500 Stock Index 6.34% 4.24% -2.94% 1.80%
- --------------------------------------------------------------------------------------
* Effective February 1, 2000, the Fund eliminated its sales load.
Semi-Annual Report 9
The Tocqueville Genesis Fund
- --------------------------------------------------------------------------------
Dear Fellow Shareholder,
The Tocqueville Genesis Fund, for the six-month period ending April 30,
2005, had a total return of .4%. Since the Fund's prospectus allows for
activity in a variety of asset classes, it has been difficult to pick the
proper benchmark against which to measure relative fund performance. We are
currently using the Dow Jones Wilshire 5000 as the benchmark, which was up
3.49% during the same period.
Through-out 2004 and 2005, our theme has remained that the market would be
locked within a narrow trading range. This has proven to be the case, with a
record number of weekly closes within a very small price band over the last 18
months. While we do not attempt to call the best day to invest, our preference
for retaining high cash levels for accumulation during weak price periods has
turned out to be prudent in this type of choppy environment. Although we have
lagged some indices over this period, we have also taken on significantly less
risk.
We surmise that the current "lid" on price action is the result of a
cumulative concern about the "Fed going too far" on rate increases, along with
a host of other, lesser concerns that the media is only too happy to broadcast.
Our work suggests that the Federal Reserve rate increases will pause, if not
end entirely, by the time we get to the June meeting--or shortly thereafter. If
this turns out to be the case, the Federal Funds rate would end somewhere south
of 3.5%.
With continued earnings growth, new channels for productivity gains,
increased merger activity, historically low interest rates and a
forward-looking P/E ratio in the mid-teens--not seen since the early 1990
period--it is our belief that the markets are poised to surprise to the upside,
a scenario clearly not anticipated by the crowd given the very low sentiment
readings in many surveys. This negative pall over expectations has been
exacerbated by an extremely high level of negative press coverage on every
topic with the potential to become a risk down the road. There seems to be a
real drive to find the next downturn rather than entertaining the idea that the
environment for investing may turn out to be more sanguine. Our work falls into
the latter camp.
For the moment, however, we prepare for yet another choppy summer period,
where investors will be focused on likely headline issues ranging from high oil
costs to interest rate concerns. Our research suggests opportunity will be
available for those a) who are prepared to act and b) who remain focused on the
proper, longer-term investment time horizon.
Our concern continues to be that the focus of the press and the investing
public has become far too short-term oriented. The growing practice of
mid-quarter updates, for example, now has investors focused on even shorter
periods of corporate activity. As long-term investors, we find it amusing that
six weeks of corporate activity could have a major bearing on the long-term
value of the company in question.
We remain confident that higher interest rates are not going to cripple the
economy. We anticipate that a faster growth rate in personal incomes, an
improving jobs environment and a normal focus on conservation will offset
higher oil costs. While the headlines will pound home the risks of inflation,
the internal data do not support concerns that runaway costs will derail the
continued economic expansion. After all, it was only a few months ago that the
"China trades" were being unraveled for fear of a slowdown there--only to see
GDP growth rate remain well above 9%. At some point, the investing public needs
to recognize that jumping from one concern to another--only after the previous
fear turns out to have been unwarranted--is an unproductive way to invest. We
view all of these "conundrums" as opportunities for the patient investor
focused on the long-term.
The number of positions in our portfolio remains relatively high. Overall
market conditions, while unfolding much as we expected, have still not provided
any breakout trend direction. We believe this will change within the next two
quarters. Further, while being defensive has clearly been the more prudent
position for the first half of this decade, moving to a more growth-oriented
stance for the last half of the decade is now warranted in the data. We
anticipate using remaining periods of price weakness to put our last 8% of cash
to work in building positions in attractively priced growth stocks. As a
result, expect to see the technology weighting of the portfolio to increase a
few more percentage points from the current 19% level.
A consistent theme in our letters since inception has been the reality that
the markets have struggled against a wide variety of near-term concerns. The
more important element, however, has been that very few of these concerns have
actually unfolded. This drives home the theme on which we have focused in these
letters: periods of great opportunity are often masked in clouds of adversity.
While there is no secret formula that will tell us all exactly when this
improvement is about to occur, we are confident that our research will provide
insight into the process. This is where opportunity meets preparation.
In closing, I thank each of you again for the opportunity to serve your
investment needs. Our journey continues and I recognize that the last 15 months
have tried the patience of many with rising feelings of angst and frustration
across the board. I remain confident that while the road has had more than a
few bumps along the way, we have opportunity for growth ahead. As always, I
believe this potential reward will only come to the patient, focused
investor--one willing to act against the expectations of the crowd.
Respectfully,
/s/ Michael Williams
Michael Williams
Portfolio Manager
See Legend on Page 12
10 April 30, 2005
The Tocqueville Genesis Fund
[CHART]
Genesis Fund Genesis Fund Wilshire
(Net Asset Value) (Load) 5000 Index
----------------- ------------ ------------------
10/8/2003 $10,000 $9,500 $10,000
10/31/2003 9,960 9,462 10,192
10/31/2004 10,120 9,614 11,211
04/30/2005 10,161 9,653 11,602
This chart assumes an initial gross investment of $10,000 made on 10/08/03
(commencement of operations). Returns shown do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Performance reflects fee waivers in effect. In the absence of fee
waivers, 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 of less than their original
cost.
The Dow Jones Wilshire 5000 (Full Cap) Index is an unmanaged index representing
over 5,000 companies that are traded on various U.S. securities exchanges.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 2005
----------------------------------------------------------------
Since Inception
1 Year 10/8/2003
----------------------------------------------------------------
Tocqueville Genesis Fund--Net Asset Value -0.39% 1.02%
Tocqueville Genesis Fund--Load* -5.40% -2.26%
Dow Jones Wilshire 5000 Index 6.99% 9.97%
----------------------------------------------------------------
Semi-Annual Report 11
Legend Related to Shareholder Letters
Past performance does not guarantee future results. The investment returns
and principal value will fluctuate and the investor's share, when redeemed, may
be worth more or less than their original cost. You should consider the
investment objectives, risks, charges and expenses of each Fund before
investing. The prospectus contains this and other information about the Funds
and you should read it carefully before investing.
Each Fund's holdings are also subject to change without notice. The mention
of specific securities is not a recommendation or solicitation for any person
to buy, sell or hold any mentioned security. The securities mentioned in the
articles are not representative of each Fund's entire portfolio.
There are special risks associated with investing in small cap and mid cap
stocks, including: small and mid cap companies rely on limited product lines,
financial resources and business activities that may make them more susceptible
than larger companies to setbacks or downturns; and small and mid cap companies
are less liquid and more thinly traded which make them more volatile than
stocks of larger companies.
There are special risks associated with investing in foreign securities,
including: the value of foreign currencies may decline relative to the US
dollar; a foreign government may expropriate a Fund's assets; and political,
social or economic instability in a foreign country in which a Fund invests may
cause the value of the Fund's investments to decline.
The Tocqueville Gold Fund is subject to special risks associated with
investing in gold and other precious metals, including: the price of
gold/precious metals may be subject to wide fluctuations; the market for
gold/precious metals is relatively limited; the sources of gold/precious metals
are concentrated in countries that have the potential for instability; and the
market for gold/precious metals is unregulated. In addition, there are special
risks associated with investing in foreign securities, including: the value of
foreign currencies may decline relative to the US dollar; a foreign government
may expropriate the Fund's assets; and political, social or economic
instability in a foreign country in which the Fund invests may cause the value
of the Fund's investments to decline.
The Tocqueville Genesis Fund has a sales charge (load) that is a percentage
of the purchase, and that is levied at the time of purchase; such percentage
varies with the amount of purchase in accordance with breakpoints. Please see
the prospectus for information regarding the breakpoints and letters of intent
that may affect the fees charged.
This commentary is not an advertisement or solicitation to subscribe to The
Tocqueville Trust, which may only be made by prospectus. This material must be
preceded or accompanied by the Trust's prospectus.
The Tocqueville Funds are distributed by Lepercq, de Neuflize/Tocqueville
Securities L.P.
12 April 30, 2005
Expense Example--April 30, 2005
As a shareholder of The Tocqueville Trust (the "Funds"), you incur ongoing
costs, including management fees; distribution fees; and other Fund expenses.
This example is intended to help you understand your ongoing costs (in dollars)
of investing in the Funds and to compare costs with the ongoing costs of
investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning
of the period and held the entire period (November 1, 2004-April 30, 2005).
Actual Expenses
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Funds' actual expense
ratios and an assumed rate of return of 5% per year before expenses, which is
not the Funds' actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder
reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the second
line of the table is useful in comparing ongoing costs only, and will not help
you determine the relative costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
Semi-Annual Report 13
Expense Example Tables
The Tocqueville Fund
Expenses Paid
Beginning Ending During Period*
Account Value Account Value November 1, 2004 -
November 1, 2004 April 30, 2005 April 30, 2005
---------------- -------------- ------------------
Actual $1,000.00 $1,058.20 $6.69
Hypothetical (5% return before expenses) 1,000.00 1,018.30 6.56
* Expenses are equal to the Fund's annualized expense ratio of 1.31%,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.
The Tocqueville Small Cap Value Fund
Expenses Paid
Beginning Ending During Period*
Account Value Account Value November 1, 2004 -
November 1, 2004 April 30, 2005 April 30, 2005
---------------- -------------- ------------------
Actual $1,000.00 $ 930.10 $6.51
Hypothetical (5% return before expenses) 1,000.00 1,018.05 6.80
* Expenses are equal to the Fund's annualized expense ratio of 1.36%,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.
The Tocqueville International Value Fund
Expenses Paid
Beginning Ending During Period*
Account Value Account Value November 1, 2004 -
November 1, 2004 April 30, 2005 April 30, 2005
---------------- -------------- ------------------
Actual $1,000.00 $1,089.40 $8.50
Hypothetical (5% return before expenses) 1,000.00 1,016.66 8.20
* Expenses are equal to the Fund's annualized expense ratio of 1.64%,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.
The Tocqueville Gold Fund
Expenses Paid
Beginning Ending During Period*
Account Value Account Value November 1, 2004 -
November 1, 2004 April 30, 2005 April 30, 2005
---------------- -------------- ------------------
Actual $1,000.00 $ 884.80 $7.34
Hypothetical (5% return before expenses) 1,000.00 1,017.01 7.85
* Expenses are equal to the Fund's annualized expense ratio of 1.57%,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.
The Tocqueville Genesis Fund
Expenses Paid
Beginning Ending During Period*
Account Value Account Value November 1, 2004 -
November 1, 2004 April 30, 2005 April 30, 2005
---------------- -------------- ------------------
Actual $1,000.00 $1,004.00 $9.69
Hypothetical (5% return before expenses) 1,000.00 1,015.12 9.74
* Expenses are equal to the Fund's annualized expense ratio of 1.95%,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.
14 April 30, 2005
The Tocqueville Fund
Financial Highlights
Six Months
Ended Years Ended October 31,
Per share operating performance April 30, -----------------------------------------------
(For a share outstanding throughout 2005 2004 2003 2002 2001 2000
the period) ----------- -------- -------- ------- ------- -------
(Unaudited)
Net asset value, beginning of period $ 20.43 $ 17.99 $ 13.42 $ 14.99 $ 18.77 $ 17.54
-------- -------- -------- ------- ------- -------
Operations:
Net investment income (loss) 0.11 0.05 0.02 (0.01) 0.05 0.05
Net realized and unrealized gain (loss) (1) 1.09 2.41 4.55 (1.28) (1.83) 1.65
-------- -------- -------- ------- ------- -------
Total from investment operations 1.20 2.46 4.57 (1.29) (1.78) 1.70
-------- -------- -------- ------- ------- -------
Dividends and distributions to shareholders:
Dividends from net investment income (0.12) (0.02) -- (0.01) (0.07) (0.02)
Distributions from net realized gains (0.82) -- -- (0.27) (1.93) (0.45)
-------- -------- -------- ------- ------- -------
Total dividends and distributions (0.94) (0.02) -- (0.28) (2.00) (0.47)
-------- -------- -------- ------- ------- -------
Change in net asset value for the period 0.26 2.44 4.57 (1.57) (3.78) 1.23
-------- -------- -------- ------- ------- -------
Net asset value, end of period $ 20.69 $ 20.43 $ 17.99 $ 13.42 $ 14.99 $ 18.77
-------- -------- -------- ------- ------- -------
Total return 5.8%(2) 13.7% 34.1% (8.9)% (10.8)% 9.9%
Ratios/supplemental data
Net assets, end of period (000) $157,364 $145,435 $149,497 $70,134 $51,089 $57,379
Ratio to average net assets:
Expenses (3) 1.31%(4) 1.34% 1.40% 1.40% 1.40% 1.40%
Net investment income (loss) (3) 1.01%(4) 0.25% 0.17% (0.06)% 0.28% 0.28%
Portfolio turnover rate 24%(2) 40% 32% 62% 50% 38%
- --------
(1)Net realized and unrealized gain (loss) per share includes redemption fees
of $0.001, $0.001 and $0.00 per share for the six months ended April 30,
2005, and the years ended October 31, 2004 and 2003, respectively.
(2)Not annualized.
(3)Net of fees waived amounting to 0.00%, 0.00%, 0.07%, 0.01%, 0.06%, and 0.03%
of average net assets for the period ended April 30, 2005, and the years
ended October 31, 2004, 2003, 2002, 2001 and 2000, respectively.
(4)Annualized.
See Notes to the Financial Statements.
Semi-Annual Report 15
The Tocqueville Small Cap Value Fund
Financial Highlights
Six Months
Ended Years Ended October 31,
Per share operating performance April 30, -----------------------------------------------
(For a share outstanding throughout 2005 2004 2003 2002 2001 2000
the period) ----------- ------- ------- ------- ------- -------
(Unaudited)
Net asset value, beginning of period $ 16.11 $ 18.83 $ 12.18 $ 15.09 $ 17.51 $ 15.74
------- ------- ------- ------- ------- -------
Operations:
Net investment loss (0.06) (0.11) (0.08) (0.08) (0.10) (0.12)
Net realized and unrealized gain (loss) (1) (0.95) 0.21 6.73 (1.45) 1.00 4.29
------- ------- ------- ------- ------- -------
Total from investment operations (1.01) 0.10 6.65 (1.53) 0.90 4.17
------- ------- ------- ------- ------- -------
Distributions to shareholders:
Distributions from net realized gains (0.66) (2.82) -- (1.38) (3.32) (2.40)
------- ------- ------- ------- ------- -------
Total distributions (0.66) (2.82) -- (1.38) (3.32) (2.40)
------- ------- ------- ------- ------- -------
Change in net asset value for the period (1.67) (2.72) 6.65 (2.91) (2.42) 1.77
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 14.44 $ 16.11 $ 18.83 $ 12.18 $ 15.09 $ 17.51
------- ------- ------- ------- ------- -------
Total return (7.0)%(2) (1.0)% 54.6% (11.7)% 6.3% 28.6%
Ratios/supplemental data
Net assets, end of period (000) $57,974 $75,005 $73,518 $50,879 $40,262 $30,827
Ratio to average net assets:
Expenses 1.36%(3) 1.41% 1.36% 1.44% 1.52% 1.45%
Net investment loss (0.62)%(3) (0.61)% (0.48)% (0.62)% (0.69)% (0.63)%
Portfolio turnover rate 10%(2) 19% 65% 25% 47% 87%
- --------
(1)Net realized and unrealized gain (loss) per share includes redemption fees
of $0.01, $0.02 and $0.03 per share for the six months ended April 30, 2005,
and the years ended October 31, 2004 and 2003 respectively.
(2)Not annualized.
(3)Annualized.
See Notes to the Financial Statements.
16 April 30, 2005
The Tocqueville International Value Fund
Financial Highlights
Six Months
Ended Years Ended October 31,
Per share operating performance April 30, ----------------------------------------------
(For a share outstanding throughout 2005 2004 2003 2002 2001 2000
the period) ----------- -------- -------- ------- ------- -------
(Unaudited)
Net asset value, beginning of period $ 13.10 $ 10.90 $ 7.27 $ 7.24 $ 8.50 $ 11.37
-------- -------- -------- ------- ------- -------
Operations:
Net investment income 0.03 0.09 0.06 0.01 0.10 0.11
Net realized and unrealized gain (loss) (1) 1.14 2.15 3.58 0.02 (1.33) (1.71)
-------- -------- -------- ------- ------- -------
Total from investment operations 1.17 2.24 3.64 0.03 (1.23) (1.60)
-------- -------- -------- ------- ------- -------
Dividends and distributions to shareholders:
Dividends from net investment income (0.08) (0.04) (0.01) -- (0.03) (0.05)
Distributions from net realized gains -- -- -- -- -- (1.22)
-------- -------- -------- ------- ------- -------
Total dividends and distributions (0.08) (0.04) (0.01) -- (0.03) (1.27)
-------- -------- -------- ------- ------- -------
Change in net asset value for the period 1.09 2.20 3.63 0.03 (1.26) (2.87)
-------- -------- -------- ------- ------- -------
Net asset value, end of period $ 14.19 $ 13.10 $ 10.90 $ 7.27 $ 7.24 $ 8.50
-------- -------- -------- ------- ------- -------
Total return 8.9%(2) 20.6% 50.1% 0.4% (14.5)% (15.9)%
Ratios/supplemental data
Net assets, end of period (000) $200,959 $196,424 $129,875 $78,951 $67,211 $85,098
Ratio to average net assets:
Expenses 1.64%(3) 1.71% 1.77% 1.73% 1.77% 1.72%
Net investment income 0.42%(3) 0.85% 0.72% 0.16% 1.17% 1.06%
Portfolio turnover rate 17%(2) 43% 55% 61% 54% 45%
- --------
(1)Net realized and unrealized gain (loss) per share includes redemption fees
of $0.002, $0.01, $0.005 and $0.03 per share for the six months ended April
30, 2005, and the years ended October 31, 2004, 2003 and 2002, respectively.
(2)Not annualized.
(3)Annualized.
See Notes to the Financial Statements.
Semi-Annual Report 17
The Tocqueville Gold Fund
Financial Highlights
Six Months
Ended Years Ended October 31,
Per share operating performance April 30, -------------------------------------------------
(For a share outstanding throughout 2005 2004 2003 2002 2001 2000
the period) ----------- -------- -------- -------- ------- -------
(Unaudited)
Net asset value, beginning of period $ 34.84 $ 34.71 $ 20.49 $ 13.10 $ 10.03 $ 12.97
-------- -------- -------- -------- ------- -------
Operations:
Net investment income (loss) (0.15) (0.33) (0.14) (0.08) 0.01 (0.02)
Net realized and unrealized gain
(loss) (1)(2) (3.74) 1.04 15.41 7.53 3.07 (2.92)
-------- -------- -------- -------- ------- -------
Total from investment operations (3.89) 0.71 15.27 7.45 3.08 (2.94)
-------- -------- -------- -------- ------- -------
Dividends and distributions to
shareholders:
Dividends from net investment income -- (0.03) -- -- (0.01) --
Dividends from net realized gains (1.36) (0.55) (1.05) (0.06) -- --
-------- -------- -------- -------- ------- -------
Total distributions (1.36) (0.58) (1.05) (0.06) (0.01) --
-------- -------- -------- -------- ------- -------
Change in net asset value for the period (5.25) 0.13 14.22 7.39 3.07 (2.94)
-------- -------- -------- -------- ------- -------
Net asset value, end of period $ 29.59 $ 34.84 $ 34.71 $ 20.49 $ 13.10 $ 10.03
-------- -------- -------- -------- ------- -------
Total return (11.5)%(3) 2.0% 77.3% 57.2% 30.8% (22.7)%
Ratios/supplemental data
Net assets, end of period (000) $454,247 $539,190 $433,554 $137,210 $25,057 $16,049
Ratios to average net assets:
Expenses (4) 1.57%(5) 1.58% 1.68% 1.68% 1.94% 1.96%
Net investment income (loss) (4) (0.91)%(5) (1.11)% (0.77)% (0.61)% 0.09% (0.21)%
Portfolio turnover rate 13%(3) 24% 40% 72% 58% 31%
- --------
(1)Net realized and unrealized gain (loss) per share includes redemption fees
of $0.02, $0.09, $0.05 and $0.09 per share for the six months ended April
30, 2005, and the years ended October 31, 2004, 2003 and 2002, respectively.
(2)As described in Note 3 to the financial statements, during the year ended
October 31, 2004, the Fund incurred certain losses as a result of a trading
error. The Investment Adviser reimbursed the Fund for the amount of the loss
which had a per share impact of $0.004.
(3)Not Annualized.
(4)Net of fees waived amounting to 0.19% and 0.00% of average net assets for
the years ended October 31, 2001 and 2000, respectively.
(5)Annualized.
See Notes to the Financial Statements.
18 April 30, 2005
The Tocqueville Genesis Fund
Financial Highlights
Period from
Six Months Ended Year Ended October 8, 2003 (1)
Per share operating performance April 30, 2005 October 31, 2004 to October 31, 2003
(For a share outstanding throughout the period) ---------------- ---------------- -------------------
(Unaudited)
Net asset value, beginning of period $ 10.12 $ 9.96 $ 10.00
------- ------- -------
Operations:
Net investment loss (0.04) (0.09) --
Net realized and unrealized gain (loss) (2) 0.08 0.25 (0.04)
------- ------- -------
Total from investment operations 0.04 0.16 (0.04)
------- ------- -------
Dividends and distributions to shareholders:
Dividends from net investment income -- -- --
Dividends from net investment income -- -- --
------- ------- -------
Total distributions -- -- --
------- ------- -------
Change in net asset value for the period 0.04 0.16 (0.04)
------- ------- -------
Net asset value, end of period $ 10.16 $ 10.12 $ 9.96
------- ------- -------
Total return 0.4%(3),(4) 1.6%(4) (0.4)%(3),(4)
Ratios/supplemental data
Net assets, end of period (000) $26,950 $28,964 $19,610
Ratios to average net assets:
Expenses (5) 1.95%(6) 1.95% 1.95%(6)
Net investment loss (5) (0.64)%(6) (0.86)% (1.03)%(6)
Portfolio turnover rate 144%(3) 270% 1%
- --------
(1)Commencement of operations.
(2)Net realized and unrealized gain (loss) per share includes redemption fees
of $0.001, $0.002 and $0.00 per share for the periods ended April 30, 2005,
October 31, 2004 and 2003, respectively.
(3)Not annualized.
(4)The total return calculation does not reflect the maximum sales charge of
5.00%.
(5)Net of fees waived amounting to 0.16%, 0.33% and 1.39% of average net assets
for the periods ended April 30, 2005, October 31, 2004 and 2003,
respectively.
(6)Annualized.
See Notes to the Financial Statements.
Semi-Annual Report 19
The Tocqueville Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Common Stocks--96.4% Shares Value
-------------------------------------------------------
Aerospace & Defense--4.2%
Boeing Co. 50,000 $ 2,976,000
Honeywell International, Inc. 100,000 3,576,000
-------------------------------------------------------
6,552,000
-------------------------------------------------------
Airlines--1.4%
Southwest Airlines Co. 150,000 2,232,000
-------------------------------------------------------
Capital Markets--1.8%
The Bank of New York Co., Inc. 100,000 2,794,000
-------------------------------------------------------
Chemicals--4.1%
EI Du Pont de Nemours & Co. 100,000 4,711,000
Olin Corp. 100,000 1,774,000
-------------------------------------------------------
6,485,000
-------------------------------------------------------
Commercial Banks--2.7%
Mitsubishi Tokyo Financial Group,
Inc. ADR (b) 500,000 4,325,000
-------------------------------------------------------
Commercial Services & Supplies--3.8%
Avery Dennison Corp. 30,000 1,570,500
DeVry, Inc. (a) 75,000 1,710,000
Steelcase, Inc. 200,000 2,628,000
-------------------------------------------------------
5,908,500
-------------------------------------------------------
Communications Equipment--3.7%
Cisco Systems, Inc. (a) 203,200 3,511,296
Tellabs, Inc. (a) 300,000 2,328,000
-------------------------------------------------------
5,839,296
-------------------------------------------------------
Computers & Peripherals--1.0%
International Business Machines
Corp. 20,000 1,527,600
-------------------------------------------------------
Construction Materials--1.1%
Cemex S.A. de C.V. ADR (b) 50,000 1,800,000
-------------------------------------------------------
Containers & Packaging--1.3%
Sonoco Products Co. 75,000 2,031,750
-------------------------------------------------------
Electric Utilities--5.2%
FPL Group, Inc. 60,000 2,449,200
Korea Electric Power Corp. ADR (b) 100,000 1,480,000
TXU Corp. 50,000 4,289,500
-------------------------------------------------------
8,218,700
-------------------------------------------------------
Electrical Appliances, Television And Radio Sets--1.3%
Samsung Electronics Co., Ltd.
GDR (b) 9,300 2,107,913
-------------------------------------------------------
Electronic Equipment & Instruments--1.1%
Symbol Technologies, Inc. 125,000 1,671,250
-------------------------------------------------------
Energy Equipment & Services--3.4%
GlobalSantaFe Corp. (b) 100,000 3,360,000
Schlumberger Ltd. (b) 30,000 2,052,300
-------------------------------------------------------
5,412,300
-------------------------------------------------------
Common Stocks (continued) Shares Value
--------------------------------------------------------
Food & Staples Retailing--2.1%
Wal-Mart Stores, Inc. 70,000 $ 3,299,800
--------------------------------------------------------
Food Products--2.4%
Nutreco Holding NV (a)(b) 50,000 1,572,210
Sara Lee Corp. 100,000 2,139,000
--------------------------------------------------------
3,711,210
--------------------------------------------------------
Gaming--1.4%
Scientific Games Corp.--Class A (a) 100,000 2,147,000
--------------------------------------------------------
Health Care Equipment & Supplies--0.8%
Thoratec Corp. (a) 100,000 1,295,000
--------------------------------------------------------
Health Care Providers & Services--0.7%
Priority Healthcare Corp. (a) 50,000 1,139,000
--------------------------------------------------------
Insurance--8.5%
American International Group, Inc. 50,000 2,542,500
IPC Holdings Ltd. (b) 75,000 2,822,250
The Allstate Corp. 50,000 2,808,000
Unitrin, Inc. 50,000 2,275,000
Zenith National Insurance Corp. 50,000 2,875,500
--------------------------------------------------------
13,323,250
--------------------------------------------------------
Leisure Equipment & Products--1.2%
Mattel, Inc. 100,000 1,805,000
--------------------------------------------------------
Machinery--4.5%
AGCO Corp. (a) 100,000 1,720,000
Manitowoc Co. 75,000 3,000,000
Parker Hannifin Corp. 40,000 2,397,600
--------------------------------------------------------
7,117,600
--------------------------------------------------------
Media--3.9%
Dow Jones & Company, Inc. 75,000 2,508,000
Tokyo Broadcasting System, Inc. (b) 100,000 1,899,766
Viacom Inc.--Class B 50,000 1,731,000
--------------------------------------------------------
6,138,766
--------------------------------------------------------
Metals & Mining--12.7%
Alcan, Inc. (b) 40,000 1,296,800
Alcoa, Inc. 100,000 2,902,000
Cleveland-Cliffs, Inc. 30,000 1,740,300
Inco Ltd. (b) 100,000 3,574,000
Newmont Mining Corp. 100,000 3,797,000
Phelps Dodge Corp. 40,000 3,434,000
Teck Cominco Ltd. (b) 100,000 3,239,000
--------------------------------------------------------
19,983,100
--------------------------------------------------------
Office Electronics--0.8%
Xerox Corp. (a) 100,000 1,325,000
--------------------------------------------------------
See Notes to the Financial Statements.
20 April 30, 2005
The Tocqueville Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Shares or
Principal
Common Stocks (continued) Amount Value
-------------------------------------------------------
Oil & Gas--5.0%
Devon Energy Corp. 75,000 $ 3,387,750
Murphy Oil Corp. 50,000 4,454,500
-------------------------------------------------------
7,842,250
-------------------------------------------------------
Paper & Forest Products--3.3%
International Paper Company 50,000 1,714,500
Weyerhaeuser Co. 50,000 3,430,500
-------------------------------------------------------
5,145,000
-------------------------------------------------------
Pharmaceuticals--5.8%
Merck & Co., Inc. 150,000 5,085,000
Pfizer, Inc. 150,000 4,075,500
-------------------------------------------------------
9,160,500
-------------------------------------------------------
Prepackaged Software--1.0%
Bio-key International, Inc. (a) 468,000 547,560
Indus International, Inc. (a) 500,000 1,085,000
-------------------------------------------------------
1,632,560
-------------------------------------------------------
Semiconductor & Semiconductor Equipment--2.5%
Intel Corp. 100,000 2,352,000
Ultratech, Inc. (a) 100,000 1,592,000
-------------------------------------------------------
3,944,000
-------------------------------------------------------
Software--3.2%
Microsoft Corp. 200,000 5,060,000
-------------------------------------------------------
Water Supply--0.5%
Purecycle Corp. (a) 100,000 779,000
-------------------------------------------------------
Total Common Stocks (Cost $123,021,537) 151,753,345
-------------------------------------------------------
Preferred Stocks--0.6%
Biotechnology--0.6%
Zymequest Inc. (a)(c)(e)(f) 400,000 960,000
-------------------------------------------------------
Total Preferred Stocks (Cost $960,000) 960,000
-------------------------------------------------------
Warrants--0.0%
Bio-key Warrants, $1.35 strike
price, expires 4/14/09 (a)(e) 262,500 --
Bio-key Warrants, $1.55 strike
price, expires 9/29/29 (a)(e) 111,111 --
-------------------------------------------------------
Total Warrants (Cost $0) --
-------------------------------------------------------
U.S. Government Bonds--3.2%
Federal Home Loan Bank,
3.00% due 08/24/2007 (d) $1,000,000 994,158
Freddie Mac,
3.90% due 08/27/2009 (d) 2,000,000 1,996,796
Freddie Mac,
3.70% due 08/25/2009 (d) 2,000,000 1,997,124
-------------------------------------------------------
Total U.S. Government Bonds
(Cost $5,025,055) 4,988,078
-------------------------------------------------------
Principal
Convertible Bonds--0.3% Amount Value
-----------------------------------------------------------
Bio-key International
11.00% due 09/29/2007 (e) $ 453,125 $ 453,125
-----------------------------------------------------------
Total Convertible Bonds (Cost $453,125) 453,125
-----------------------------------------------------------
Short-Term Investments--1.6%
Repurchase Agreement with
U.S. Bank, N.A., 2.50%,
dated 4/29/05, due 5/2/05,
collateralized by a Freddie Mac
15-year Fixed (Pool# 1741)
valued at $4,104,078.
Repurchase proceeds of
$2,537,521 (cost $2,537,000) 2,537,000 2,537,000
-----------------------------------------------------------
Total Short-Term Investments
(Cost $2,537,000) 2,537,000
-----------------------------------------------------------
Total Investments
(Cost $131,996,717)--102.1% 160,691,548
Liabilities in Excess of Other Assets--(2.1)% (3,327,226)
-----------------------------------------------------------
Total Net Assets--100.0% $157,364,322
------------
Percentages are stated as a percent of net assets.
ADR American Depository Receipt
GDR Global Depository Receipt
(a)Non-income producing security.
(b)Foreign issued security. Foreign concentration was as follows: Bermuda 1.8%;
Canada 5.2%; Japan 4.0 %; Mexico 1.1%; Netherlands 1.0%; South Korea 2.3%.
(c)Denotes security is fully or partially restricted as to resale. The
aggregate value of restricted securities at April 30, 2005 was $960,000
which represented 0.6% of net assets.
(d)Security is a "step-up" bond where the coupon rate increases or steps up at
a predetermined rate. Rate shown reflects the original rate.
(e)Fair valued security; see Note 2a. The aggregate value of fair valued
securities at April 30, 2005 was $1,413,125 which represents 0.9% of net
assets.
(f)Security is considered illiquid and may be difficult to sell.
See Notes to the Financial Statements.
Semi-Annual Report 21
The Tocqueville Small Cap Value Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Common Stocks--100.1% Shares Value
-----------------------------------------------------
Chemicals--8.0%
Hercules, Inc. (a) 210,000 $ 2,778,300
A. Schulman, Inc. 110,000 1,837,000
-----------------------------------------------------
4,615,300
-----------------------------------------------------
Commercial Services & Supplies--2.2%
ABM Industries, Inc. 70,000 1,271,900
-----------------------------------------------------
Communications Equipment--12.1%
3Com Corp. (a) 450,000 1,417,500
Powerwave Technologies, Inc. (a) 430,000 3,104,600
Westell Technologies, Inc. (a) 480,000 2,486,400
-----------------------------------------------------
7,008,500
-----------------------------------------------------
Computers & Peripherals--3.1%
UNOVA, Inc. (a) 100,000 1,776,000
-----------------------------------------------------
Electrical Equipment--13.1%
Baldor Electric Co. 100,000 2,490,000
Magnetek, Inc. (a) 500,000 1,810,000
Vicor Corp. 279,800 3,301,640
-----------------------------------------------------
7,601,640
-----------------------------------------------------
Electronic Equipment & Instruments--4.3%
Avnet, Inc. (a) 80,000 1,511,200
Plexus Corp. (a) 80,000 968,800
-----------------------------------------------------
2,480,000
-----------------------------------------------------
Energy Equipment & Services--8.9%
Global Industries Ltd. (a) 380,000 3,663,200
Input/Output, Inc. (a) 250,000 1,510,000
-----------------------------------------------------
5,173,200
-----------------------------------------------------
Food Products--8.3%
Corn Products International, Inc. 30,000 660,600
Del Monte Foods Co. (a) 400,000 4,172,000
-----------------------------------------------------
4,832,600
-----------------------------------------------------
Health Care Providers & Services--4.3%
Priority Healthcare Corp. (a) 110,000 2,505,800
-----------------------------------------------------
Hotels Restaurants & Leisure--1.8%
Bob Evans Farms, Inc. 50,000 1,020,000
-----------------------------------------------------
IT Services--5.5%
Computer Horizons Corp. (a) 200,000 602,000
Keane, Inc. (a) 100,000 1,190,000
Unisys Corp. (a) 220,000 1,427,800
-----------------------------------------------------
3,219,800
-----------------------------------------------------
Machinery--8.9%
Barnes Group, Inc. 40,000 1,150,000
Federal Signal Corp. 90,000 1,262,700
Timken Co. 110,000 2,732,400
-----------------------------------------------------
5,145,100
-----------------------------------------------------
Common Stocks (continued) Shares Value
----------------------------------------------------------
Pharmaceuticals--10.7%
Bentley Pharmaceuticals, Inc. (a) 60,000 $ 408,000
Perrigo Co. 100,000 1,832,000
Schering-Plough Corp. 190,000 3,965,300
----------------------------------------------------------
6,205,300
----------------------------------------------------------
Software--8.9%
Agile Software Corp. (a) 270,000 1,773,900
Informatica Corp. (a) 370,000 2,860,100
Intervoice, Inc. (a) 50,000 536,250
----------------------------------------------------------
5,170,250
----------------------------------------------------------
Total Common Stocks (Cost $51,461,914) 58,025,390
----------------------------------------------------------
Total Investments
(Cost $51,461,914)--100.1% 58,025,390
Liabilities in Excess of Other Assets--(0.1)% (50,949)
----------------------------------------------------------
Total Net Assets--100.0% $57,974,441
-----------
Percentages are stated as a percent of net assets.
(a)Non-income producing security.
See Notes to the Financial Statements.
22 April 30, 2005
The Tocqueville International Value Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Common Stocks--88.3% Shares Value
-----------------------------------------------------
Austria--1.3%
Andritz AG 30,100 $ 2,516,821
-----------------------------------------------------
Belgium--4.2%
Cumerio (a) 53,700 724,751
Solvay SA 27,300 3,094,410
Umicore 53,700 4,622,103
-----------------------------------------------------
8,441,264
-----------------------------------------------------
Brazil--1.4%
Empresa Brasileira de
Aeronautica SA ADR 97,124 2,801,056
-----------------------------------------------------
Canada--1.4%
Alcan, Inc. 85,208 2,760,591
-----------------------------------------------------
Finland--6.4%
Huhtamaki Oyj 260,000 4,067,675
Metso Oyj 294,000 5,295,593
UPM-Kymmene Oyj 176,700 3,503,309
-----------------------------------------------------
12,866,577
-----------------------------------------------------
France--6.6%
Pinguely-Haulotte 500,000 5,371,502
Sanofi-Aventis 65,000 5,720,168
Veolia Environnement 60,000 2,251,013
-----------------------------------------------------
13,342,683
-----------------------------------------------------
Germany--1.8%
Jenoptik Ag (a) 338,433 3,657,558
-----------------------------------------------------
Greece--2.2%
Titan Cement Co. SA 140,000 4,427,404
-----------------------------------------------------
Hong Kong--2.2%
Global Bio-chem Technology
Company Ltd. 3,500,000 2,289,841
Gold Peak Industries Holding
Ltd. 10,382,000 2,210,835
-----------------------------------------------------
4,500,676
-----------------------------------------------------
Indonesia--2.1%
Kawasan Industri Jababeka
Tbk PT (a) 157,399,300 1,892,412
Tempo Scan Pacific Tbk PT 3,438,000 2,390,246
-----------------------------------------------------
4,282,658
-----------------------------------------------------
Italy--3.0%
Interpump SpA 648,500 4,004,889
Sogefi SpA 409,500 2,036,304
-----------------------------------------------------
6,041,193
-----------------------------------------------------
Common Stocks (continued) Shares Value
---------------------------------------------------------
Japan--19.5%
Aderans Company Ltd. 173,000 $ 4,157,742
Amano Corp. 375,000 4,112,823
Dai Nippon Printing Co. Ltd. 190,000 3,051,452
Kao Corp. 145,000 3,353,440
Matsushita Electric Industrial Co.
Ltd. ADR 250,000 3,662,500
Mitsubishi Tokyo Financial Group,
Inc. ADR 422,000 3,650,300
Nissin Healthcare Food Service
Co., Ltd. 50,200 845,005
Omron Corp. 120,000 2,626,484
Secom Co., Ltd. 122,000 4,886,748
Tokyo Broadcasting System, Inc. 250,000 4,749,416
Tsubakimoto Chain Co. 893,000 4,019,799
---------------------------------------------------------
39,115,709
---------------------------------------------------------
Malaysia--1.2%
KLCC Property Holdings Berhad 4,700,000 2,510,790
---------------------------------------------------------
Mexico--2.2%
Cemex S.A. de C.V. ADR 120,516 4,338,576
---------------------------------------------------------
Netherlands--11.7%
Akzo Nobel NV 130,000 5,302,026
Boskalis Westminster 113,180 4,122,388
CSM NV 161,000 4,702,091
Nutreco Holding NV (a) 158,000 4,968,183
Unilever NV ADR 67,000 4,316,810
---------------------------------------------------------
23,411,498
---------------------------------------------------------
Singapore--3.7%
CIH Ltd. 3,087,792 4,977,269
GP Batteries International Ltd. 2,061,000 2,416,119
---------------------------------------------------------
7,393,388
---------------------------------------------------------
South Africa--2.9%
Gold Fields Ltd. ADR 277,000 2,756,150
Sappi Ltd. ADR 300,000 2,994,000
---------------------------------------------------------
5,750,150
---------------------------------------------------------
South Korea--5.3%
Doosan (a) 275,890 2,895,356
Korea Electric Power Corp. ADR 110,000 1,628,000
Samsung Electronics Co., Ltd. 14,000 4,189,807
Samsung SDI Co., Ltd. 20,000 1,956,314
---------------------------------------------------------
10,669,477
---------------------------------------------------------
Sweden--1.8%
Assa Abloy AB 280,000 3,606,833
---------------------------------------------------------
Switzerland--2.4%
Lonza Group AG 80,000 4,795,248
---------------------------------------------------------
See Notes to the Financial Statements.
Semi-Annual Report 23
The Tocqueville International Value Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Shares or
Principal
Common Stocks (continued) Amount Value
-----------------------------------------------------------
Taiwan--2.6%
Merrill Taiwan Secom Co., Ltd. (a) 3,400,000 $ 5,274,420
-----------------------------------------------------------
United Kingdom--5.5%
BAE Systems Plc 416,881 2,029,735
Bodycote International 1,371,250 4,093,479
GlaxoSmithKline Plc ADR 97,100 4,908,405
-----------------------------------------------------------
11,031,619
-----------------------------------------------------------
United States--1.6%
Freeport-McMoRan
Copper & Gold, Inc. 93,200 3,230,312
-----------------------------------------------------------
Total Common Stocks
(Cost $149,710,418) 186,766,501
-----------------------------------------------------------
Short-Term Investments--5.2%
Variable Rate Demand Deposits--5.2%
JP Morgan Chase Demand
Deposits $10,534,513 10,534,513
-----------------------------------------------------------
Total Short-Term Investments
(Cost $10,534,513) 10,534,513
-----------------------------------------------------------
Total Investments
(Cost $160,244,931)--98.2% 197,301,014
Other Assets in Excess of Liabilities--1.8% 3,658,392
-----------------------------------------------------------
Total Net Assets--100.0% $200,959,406
------------
Percentages are stated as a percent of net assets.
ADR American Depository Receipt
(a)Non-income producing security.
See Notes to the Financial Statements.
24 April 30, 2005
The Tocqueville Gold Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Common Stocks--84.8% Shares Value
-----------------------------------------------------------
Gold & Gold Related--71.9%
Agnico-Eagle Mines Ltd. (b) 449,000 $ 5,904,350
Anatolia Minerals Development (a) 350,000 328,221
Apollo Gold Corp. (a)(b) 990,000 393,388
Aquiline Resources, Inc. (a)(b) 1,333,333 1,239,768
Aurizon Mines Ltd. (a)(b) 600,000 677,104
Banro Corporation (a)(b) 631,400 2,508,941
Barrick Gold Corporation (b) 200,000 4,464,000
Centerra Gold, Inc. (a)(b) 379,300 5,727,331
Chesapeake Gold Corp. (a)(b) 339,000 1,805,054
Cia de Minas Buenaventura SA
ADR (b) 695,800 14,855,330
Crystallex International Corp. (a)(b) 4,116,800 15,232,160
Dominion Mining Ltd. (a)(b) 1,428,571 323,433
Eldorado Gold Corp. (a)(b) 1,290,000 3,075,578
FNX Mining Co, Inc. (a)(b) 300,000 2,048,001
Gabriel Resources Ltd. (a)(b) 250,000 298,021
Gammon Lake Resources,
Inc. (a)(b) 1,699,000 10,275,284
Glamis Gold Ltd. (a)(b) 460,000 6,320,400
Gold Fields Ltd. ADR (b) 2,070,500 20,601,475
Gold Fields Ltd. (b) 166,249 1,665,220
Goldcorp, Inc. (b) 1,932,850 25,011,079
Golden Star Resources Ltd. (a) 800,000 1,880,000
Guinor Gold Corp. (a)(b) 4,246,000 3,509,370
Guinor Gold Corp. (a)(b)(c)(d) 7,700,000 6,237,770
Harmony Gold Mining Co., Ltd. (b) 106,667 679,586
Harmony Gold Mining Co., Ltd.
ADR (b) 1,532,300 9,607,521
Iamgold Corp. (b) 2,730,000 16,662,481
Ivanhoe Mines Ltd. (a)(b) 4,001,000 27,567,885
Kingsgate Consolidated Ltd. (b) 991,316 1,749,063
Kinross Gold Corp. (a)(b) 990,000 5,296,500
Kirkland Lake Gold, Inc. (b) 327,400 1,105,817
Lihir Gold Ltd. (a)(b) 3,500,000 2,759,778
Meridian Gold, Inc. (a)(b) 650,531 9,919,661
Miramar Mining Corp. (a)(b) 3,556,306 3,165,112
Nevsun Resources Ltd. (a)(b) 2,429,250 4,691,312
Newcrest Mining Ltd. (b) 1,001,712 11,581,977
Newmont Mining Corp. 708,800 26,913,136
Orezone Resources, Inc. (a)(b) 1,063,700 1,225,753
Oxiana Ltd. (a)(b) 5,000,000 3,396,050
Peter Hambro Mining Plc (a)(b) 540,000 5,974,249
Placer Dome, Inc. - ChessUT (b) 70,000 924,116
Placer Dome, Inc. (b) 1,499,245 20,029,913
Radius Gold, Inc. (a)(b) 1,329,544 1,373,605
Randgold Resources Ltd.
ADR (a)(b) 1,449,200 17,223,742
Riddarhyttan Resources AB (a)(b) 900,000 1,020,723
River Gold Mines Ltd. (a)(b) 565,000 449,019
Royal Gold, Inc. 100,000 1,884,000
Sino Gold Ltd. (a)(b) 2,000,000 2,498,243
Common Stocks--84.8% Shares Value
-----------------------------------------------------------
SouthernEra Diamonds,
Inc. (a)(b) 375,000 $ 120,699
St. Jude Resources Ltd. (a)(b) 1,500,000 2,181,515
Strongbow Exploration,
Inc. (a)(b) 1,800,000 357,625
Sunridge Gold Corp. (a)(b) 500,000 278,153
Tanami Gold NL (a)(b) 7,500,072 614,808
Troy Resources NL (b) 1,463,000 2,912,522
Wolfden Resources, Inc. (a)(b) 1,325,000 3,211,675
Yamana Gold, Inc. (a)(b) 2,333,333 6,805,477
Zijin Mining Group Co., Ltd. (b) 20,000,000 4,258,977
-----------------------------------------------------------
332,821,971
-----------------------------------------------------------
Precious Metals & Related--12.9%
Aber Diamond Corp. (b) 100,000 2,545,000
Apex Silver Mines Ltd. (a)(b) 817,800 10,729,536
Cameco Corp. (b) 547,500 21,286,800
Impala Platinum Holdings Ltd. (b) 80,000 6,633,826
Impala Platinum Holdings Ltd.
ADR (b) 225,000 4,670,550
Ivanhoe Nickel & Platinum
Ltd. (a)(b)(c)(d)(e) 83,333 249,999
GMK Norilsk Nickel ADR (b) 20,000 1,120,000
Mvelaphanda Resources
Ltd. (a)(b) 350,000 761,494
Peru Copper, Inc. (a)(b) 910,000 1,135,421
Sabina Resources Ltd. (a)(b) 900,000 561,472
Southern African Resources
Plc (a)(b) 15,000,000 6,151,645
Stornoway Diamond Corp. (a)(b) 1,950,000 2,107,605
Trade Wind Ventures, Inc. (a)(b) 1,100,000 576,969
-----------------------------------------------------------
58,530,317
-----------------------------------------------------------
Total Common Stocks (Cost $332,534,606) 391,352,288
-----------------------------------------------------------
Gold & Silver Bullion--10.3% Ounces
----------
Gold Bullion (a) 77,000 33,579,700
Silver Bullion (a) 1,900,000 13,110,000
-----------------------------------------------------------
46,689,700
-----------------------------------------------------------
Total Gold & Silver Bullion (Cost $44,201,950) 46,689,700
-----------------------------------------------------------
Warrants--2.2% Shares
----------
Metals and Mining--0.0%
Anatolia Mineral Development
Ltd. (a)(d) 175,000 --
-----------------------------------------------------------
Gold & Gold Related--2.1%
Aquiline Resource Inc. (a)(b)(d) 666,667 --
Nevsun Resources Ltd. (a)(b)(d) 202,125 --
Northern Orion Resources,
Inc. (a)(b) 1,005,000 902,527
Novagold Resources, Inc. (a)(b) 75,000 281,928
Yamana Gold, Inc. (a)(b) 1,166,666 2,104,691
-----------------------------------------------------------
3,289,146
-----------------------------------------------------------
See Notes to the Financial Statements.
Semi-Annual Report 25
The Tocqueville Gold Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Shares or
Principal
Warrants--2.2% Amount Value
---------------------------------------------------------
Precious Metals & Related--0.1%
PAN American Silver Corp. (a)(b) 61,536 $ 333,281
Peru Copper, Inc. (a)(b) 455,000 83,168
Trade Wind Ventures,
Inc. (a)(b)(d) 1,100,000 --
---------------------------------------------------------
416,449
---------------------------------------------------------
Total Warrants (Cost $86,900) 3,705,595
---------------------------------------------------------
Corporate Bond--0.7%
Gold and Gold Related--0.7%
Crystallex Intl. Corp.,
9.375%, due 12/30/2011 (b) $4,100,000 3,423,500
---------------------------------------------------------
Total Corporate Bond (Cost $4,100,000) 3,423,500
---------------------------------------------------------
Convertible Bond--0.6%
Gold and Gold Related--0.6%
Sino Gold Ltd.
5.75%, due 03/17/2012 $3,000,000 2,711,250
---------------------------------------------------------
Total Convertible Bond (Cost $3,000,000) 2,711,250
---------------------------------------------------------
Exchange Traded Fund--1.3%
Gold and Gold Related--1.3%
streetTRACKS Gold Trust (a) 135,000 5,852,250
---------------------------------------------------------
Total Exchange Traded Fund (Cost $6,066,144) 5,852,250
---------------------------------------------------------
Total Investments
(Cost $389,989,600)--99.9% 453,734,583
Other Assets in Excess of Liabilities--0.1% 512,423
---------------------------------------------------------
Total Net Assets--100.0% $454,247,006
------------
Percentages are stated as a percent of net assets.
ADR American Depository Receipt
(a)Non-income producing security.
(b)Foreign issued security. Foreign concentration was as follows: Australia
5.7%; United Kingdom 2.7%; Canada 47.2%; Cayman Islands 2.4%; China 0.9%;
Channel Islands 3.8%; Papua New Guinea 0.6% Peru 3.3%; Russia 0.3%; South
Africa 9.8%; Sweden 0.2%.
(c)Denotes security is fully or partially restricted as to resale. The
aggregate value of restricted securities at April 30, 2005 was $6,487,769
which represented 1.4% of net assets.
(d)Fair valued security; see Note 2a. The aggregate value of fair valued
securities at April 30, 2005 was $6,487,769 which represented 1.4% of net
assets.
(e)Security is considered illiquid and may be difficult to sell.
See Notes to the Financial Statements.
26 April 30, 2005
The Tocqueville Genesis Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Common Stocks--79.3% Shares Value
----------------------------------------------------------
Air Freight & Logistics--1.3%
FedEx Corp. 4,000 $ 339,800
----------------------------------------------------------
Biological Products, Except Diagnostic
Substances--0.3%
Neurobiological Technologies, Inc. (a) 25,000 74,750
----------------------------------------------------------
Biotechnology--1.0%
China Green Holdings Ltd. (b) 402,000 79,417
Global Bio-chem Technololgy Group
Co., Ltd. (b) 150,000 98,136
Protein Design Labs, Inc. (a) 5,000 89,400
----------------------------------------------------------
266,953
----------------------------------------------------------
Building Products--0.7%
Assa Abloy AB (b) 15,000 193,223
----------------------------------------------------------
Capital Markets--0.9%
The Charles Schwab Corp. 13,000 134,550
TradeStation Group, Inc. (a) 15,000 96,750
----------------------------------------------------------
231,300
----------------------------------------------------------
Chemicals--2.3%
Airgas, Inc. 10,000 219,200
EI Du Pont de Nemours & Co. 7,000 329,770
Terra Industries Inc. (a) 12,000 82,800
----------------------------------------------------------
631,770
----------------------------------------------------------
Commercial Banks--1.0%
Marshall & Ilsley Corp. 6000 255,840
----------------------------------------------------------
Commercial Services & Supplies--4.7%
Avery Dennison Corp. 8,000 418,800
Deluxe Corp. 6,000 239,580
DeVry, Inc. (a) 5,000 114,000
Jenoptik AG (a)(b) 40,000 432,294
Pfsweb Inc. (a) 25,000 51,250
----------------------------------------------------------
1,255,924
----------------------------------------------------------
Communications Equipment--2.5%
Andrew Corp. (a) 18,000 220,860
EFJ, Inc. (a) 13,000 103,350
Nokia OYJ ADR (b) 12,000 191,760
Plantronics, Inc. 5000 157,450
----------------------------------------------------------
673,420
----------------------------------------------------------
Computers & Peripherals--2.5%
Dell Inc. (a) 4,000 139,320
EMC Corp. (a) 20,000 262,400
International Business Machines
Corp. 3,500 267,330
----------------------------------------------------------
669,050
----------------------------------------------------------
Construction Materials--0.7%
Cemex S.A. de C.V. ADR (b) 5,000 180,000
----------------------------------------------------------
Common Stocks (continued) Shares Value
-------------------------------------------------------
Containers & Packaging--0.6%
Longview Fibre Co. 8,500 $ 157,080
-------------------------------------------------------
Copper Ores--0.2%
Ivanhoe Mines Ltd. (a)(b) 8,000 55,122
-------------------------------------------------------
Diversified Financial Services--0.7%
Citigroup Inc. 4,000 187,840
-------------------------------------------------------
Electric Utilities--2.7%
Korea Electric Power Corp. ADR (b) 20,400 301,920
Scottish Power Plc ADR (b) 6,000 194,700
Unisource Energy Corp. 7,000 218,750
-------------------------------------------------------
715,370
-------------------------------------------------------
Electronic Equipment & Instruments--1.5%
NU Horizons Electronics Corp. (a) 28,000 170,520
Symbol Technologies, Inc. 18,000 240,660
-------------------------------------------------------
411,180
-------------------------------------------------------
Energy Equipment & Services--1.9%
Grey Wolf, Inc. (a) 23000 138,000
Maverick Tube Corp. (a) 4000 116,360
Pioneer Drilling Co. (a) 11,000 145,090
Tesco Corp. (a)(b) 12,000 116,040
-------------------------------------------------------
515,490
-------------------------------------------------------
Fire, Marine, And Casualty Insurance--1.6%
Berkshire Hathaway, Inc. (a) 5 421,750
-------------------------------------------------------
Food & Staples Retailing--0.8%
Sysco Corp. 6,000 207,600
-------------------------------------------------------
Food Products--3.8%
Archer-Daniels-Midland Co. 7,000 125,930
McCormick & Co., Inc. 7,000 242,130
Nutreco Holding NV (a)(b) 15,000 471,663
SunOpta, Inc. (a)(b) 11,000 50,710
Thai Union Frozen Products Public
Co., Ltd. 100,000 70,351
Wm. Wrigley Jr. Co. 1,000 69,130
-------------------------------------------------------
1,029,914
-------------------------------------------------------
Health Care Equipment & Supplies--3.1%
Microtek Medical Holdings, Inc. (a) 20,000 75,000
Steris Corp. 10,500 248,640
Thoratec Corp. (a) 40,000 518,000
-------------------------------------------------------
841,640
-------------------------------------------------------
Health Care Providers & Services--1.2%
Priority Healthcare Corp. (a) 7,500 170,850
WebMD Corp. (a) 15,000 142,500
-------------------------------------------------------
313,350
-------------------------------------------------------
Hotels Restaurants & Leisure--0.6%
Royal Caribbean Cruises Ltd. (b) 4,000 168,080
-------------------------------------------------------
See Notes to the Financial Statements.
Semi-Annual Report 27
The Tocqueville Genesis Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Common Stocks (continued) Shares Value
-------------------------------------------------------
Household Durables--1.6%
Champion Enterprises, Inc. (a) 10,000 $ 94,400
Fortune Brands, Inc. 3,000 253,740
Koninklijke Philips Electronics N.V.
ADR (b) 3,500 86,765
-------------------------------------------------------
434,905
-------------------------------------------------------
Industrial Conglomerates--0.6%
3M Co. 2,000 152,940
-------------------------------------------------------
Insurance--2.1%
American International Group, Inc. 5000 254,250
Aspen Insurance Holdings Ltd. (b) 6,000 163,800
The Phoenix Cos, Inc. 13,000 147,290
-------------------------------------------------------
565,340
-------------------------------------------------------
Insurance Agents, Brokers, And Service--0.4%
Meadowbrook Insurance Group, Inc. (a) 21,000 111,930
-------------------------------------------------------
Internet & Catalog Retail--1.2%
1-800-FLOWERS.COM, Inc. (a) 15,000 100,500
IAC/InterActiveCorp (a) 10,000 217,400
-------------------------------------------------------
317,900
-------------------------------------------------------
Internet Software & Services--0.8%
iPass Inc. (a) 5,000 26,300
Raindance Communications, Inc. (a) 48000 105,600
webMethods, Inc. (a) 20,000 93,400
-------------------------------------------------------
225,300
-------------------------------------------------------
IT Services--1.2%
Ciber, Inc. (a) 15,000 116,700
Titan Corp. (a) 11,500 206,425
-------------------------------------------------------
323,125
-------------------------------------------------------
Leisure Equipment & Products--0.6%
K2, Inc. (a) 13,000 165,360
-------------------------------------------------------
Life Insurance--0.8%
Aegon NV ADR (b) 17,000 213,520
-------------------------------------------------------
Machinery--5.6%
Bodycote International Plc (b) 75,000 223,891
Briggs & Stratton Corp. 6,000 194,220
Lydall, Inc. (a) 13,000 116,220
Manitowoc Co. 8,000 320,000
Parker Hannifin Corp. 4,000 239,760
Pinguely-Haulotte (b) 15,000 161,145
Tsubakimoto Chain Co. (b) 55,000 247,580
-------------------------------------------------------
1,502,816
-------------------------------------------------------
Media--4.4%
Dow Jones & Co., Inc. 10,000 334,400
Getty Images, Inc. (a) 1,000 71,550
Common Stocks (continued) Shares Value
--------------------------------------------------------
Imax Corp. (a)(b) 5,000 $ 39,025
Journal Register Co. (a) 9,000 142,380
Tokyo Broadcasting System, Inc. (b) 8,000 151,981
Viacom, Inc. 13,000 452,140
--------------------------------------------------------
1,191,476
--------------------------------------------------------
Metals & Mining--2.1%
Alcan, Inc. (b) 6,000 194,520
Cleveland-Cliffs, Inc. 4,500 261,045
Gold Fields Ltd. ADR (b) 12,500 124,375
--------------------------------------------------------
579,940
--------------------------------------------------------
Motion Picture And Video Tape Production--0.7%
Dreamworks Animation SKG,
Inc. (a) 5,000 187,500
--------------------------------------------------------
Multi-Utilities & Unregulated Power--0.8%
Suez SA ADR (b) 8,000 219,440
--------------------------------------------------------
National Commercial Banks--0.5%
Hang Seng Bank Ltd. ADR (b) 10,000 136,612
--------------------------------------------------------
Office Electronics--0.9%
Xerox Corp. (a) 18,000 238,500
--------------------------------------------------------
Oil & Gas--2.0%
Chevron Corp. 3,000 156,000
KCS Energy, Inc. (a) 7,500 105,300
Statoil ASA ADR (b) 14,000 244,860
Top Tankers, Inc. (b) 3,000 46,890
--------------------------------------------------------
553,050
--------------------------------------------------------
Paper & Forest Products--2.0%
International Paper Co. 10000 342,900
Weyerhaeuser Co. 3,000 205,830
--------------------------------------------------------
548,730
--------------------------------------------------------
Personal Products--0.4%
NBTY, Inc. (a) 5,000 106,600
--------------------------------------------------------
Pharmaceuticals--2.4%
Caraco Pharmaceutical Laboratories
Ltd. (a) 14,000 116,340
Johnson & Johnson 3,500 240,205
Pfizer Inc. 8000 217,360
POZEN, Inc. (a) 10,000 70,100
--------------------------------------------------------
644,005
--------------------------------------------------------
Prepackaged Software--0.8%
Indus International, Inc. (a) 100,000 217,000
--------------------------------------------------------
Real Estate--0.2%
Kawasan Industri Jababeka
Tbk (a)(b) 5,000,000 60,115
--------------------------------------------------------
Road & Rail--0.6%
Kansas City Southern (a) 9,000 170,280
--------------------------------------------------------
See Notes to the Financial Statements.
28 April 30, 2005
The Tocqueville Genesis Fund
Schedule of Investments as of April 30, 2005
(Unaudited)
Shares or
Principal
Common Stocks (continued) Amount Value
------------------------------------------------------------
Semiconductor & Semiconductor Equipment--6.8%
ASML Holding NV ADR (a)(b) 12,000 $ 173,880
ChipMOS TECHNOLOGIES
Bermuda Ltd. (a)(b) 14,000 94,920
Cypress Semiconductor Corp. (a) 7,000 83,930
Fairchild Semiconductor
International, Inc. (a) 11,000 147,950
Integrated Device Technology,
Inc. (a) 8,000 85,600
Integrated Silicon Solution, Inc. (a) 22,000 142,120
International Rectifier Corp. (a) 5,000 212,700
MEMC Electronic Materials,
Inc. (a) 15000 175,950
Omnivision Technologies, Inc. (a) 12,000 168,000
Semitool, Inc. (a) 17,000 153,510
Texas Instruments, Inc. 3,000 74,880
Ultratech, Inc. (a) 20,000 318,400
------------------------------------------------------------
1,831,840
------------------------------------------------------------
Software--1.1%
Microsoft Corp. 12,000 303,600
------------------------------------------------------------
Specialty Retail--1.6%
Lowe's Cos, Inc. 3,000 156,330
The PEP Boys-Manny, Moe & Jack 11,000 155,980
Tractor Supply Co. (a) 3,000 120,660
------------------------------------------------------------
432,970
------------------------------------------------------------
Truck And Bus Bodies--0.3%
Tata Motors Ltd. ADR (b) 10,000 94,800
------------------------------------------------------------
Wireless Telecommunication Services--0.2%
@Road, Inc. (a) 12,000 40,680
------------------------------------------------------------
Total Common Stocks (Cost $21,261,604) 21,366,720
------------------------------------------------------------
U.S. Government Agency Bond--3.7%
Freddie Mac,
3.90% due 08/27/2009 (c ) $1,000,000 998,398
------------------------------------------------------------
Total U.S. Governement Agency Bond
(Cost $1,005,942) 998,398
------------------------------------------------------------
Exchange-Traded Fund--2.6%
SPDR Trust Series 1 6,000 694,500
------------------------------------------------------------
Total Exchange Traded Fund (Cost $716,950) 694,500
------------------------------------------------------------
Principal
Short-Term Investments--10.3% Amount Value
----------------------------------------------------------
U.S. Treasury Obligations--7.4%
U.S. Treasury Bill,
2.68% due 07/21/2005 $1,000,000 993,867
U.S. Treasury Bill,
2.85% due 08/25/2005 1,000,000 990,728
----------------------------------------------------------
1,984,595
----------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $1,984,510) 1,984,595
----------------------------------------------------------
Repurchase Agreements--2.9%
US Bank, N.A., Repurchase
Agreement with U.S. Bank,
N.A., 2.50%, dated 4/29/05,
due 5/2/05, collateralized by a
Freddie Mac 15-year Fixed
(Pool# 1741) valued at
$1,274,739. Repurchase
proceeds of $788,162
(cost $788,000) 788,000 $ 788,000
----------------------------------------------------------
Total Repurchase Agreements
(Cost $788,000) 788,000
----------------------------------------------------------
Total Short-Term Investments (Cost $2,772,510) 2,772,595
----------------------------------------------------------
Total Investments
(Cost $25,757,006)--95.9% 25,832,214
Other Assets in Excess of Liabilities--4.1% 1,118,017
----------------------------------------------------------
Total Net Assets--100.0% $26,950,231
-----------
Percentages are stated as a percent of net assets.
ADR American Depository Receipt
(a)Non-income producing security.
(b)Foreign issued security. Foreign concentration was as follows: Bermuda 0.6%;
United Kingdom 1.6%; Canada 1.7%; China 0.7%; Finland 0.7%; France 1.4%;
Germany 1.6%; Greece 0.2%; Hong Kong 0.5%; India 0.4%; Indonesia 0.2%; Japan
1.5%; Mexico 0.7%; Netherlands 3.5%; Norway 0.9%; South Africa 0.5%; South
Korea 1.6%; Sweden 0.5%; Taiwan 0.4%; Thailand 0.3%.
(c)Security is a "step-up" bond where the coupon rate increases or steps up at
a predetermined rate. Rate shown reflects the original rate.
See Notes to the Financial Statements.
Semi-Annual Report 29
The Tocqueville Fund
Allocation of Portfolio Holdings
April 30, 2005
[CHART]
Common Stock 94%
U.S. Government Bonds 3%
Convertible Bonds 0%
Warrants 0%
Preferred Stock 1%
Short Term Investments 2%
The Tocqueville Small Cap Value Fund
Allocation of Portfolio Holdings
April 30, 2005
[CHART]
Common Stock 100%
30 April 30, 2005
The Tocqueville International Value Fund
Allocation of Portfolio Holdings
April 30, 2005
[CHART]
Common Stock 95%
Short Term Investments 5%
The Tocqueville Gold Fund
Allocation of Portfolio Holdings
April 30, 2005
[CHART]
Common Stock 86%
Gold & Silver Bullion 10%
Warrants 1%
Corporate Bond 1%
Convertible Bond 1%
Short Term Investments 1%
Semi-Annual Report 31
The Tocqueville Genesis Fund
Allocation of Portfolio Holdings
April 30, 2005
[CHART]
Common Stock 83%
U.S. Government Agency Bond 4%
Exchange-Traded Fund 3%
U.S. Treasury Obligations 7%
Short Term Investments 3%
32 April 30, 2005
The Tocqueville Trust
Statements of Assets and Liabilities
April 30, 2005
(Unaudited)
The Small Cap International
Tocqueville Value Value Gold Genesis
Fund Fund Fund Fund Fund
------------ ----------- ------------- ------------ -----------
Assets
Investments, at value (1) $160,691,548 $58,025,390 $197,301,014 $453,734,583 $25,832,214
Foreign currencies (2) -- -- 4,415,220 -- 101,581
Cash 13 190,692 -- 1,761,136 56,532
Cash held at broker for futures contracts -- -- -- -- 102,543
Receivable for investments sold 656,332 -- 556,583 -- 3,304,584
Receivable for fund shares sold 196,886 33,121 317,801 1,369,131 200
Receivable for foreign tax reclaim -- -- 106,228 157,135 1,088
Dividends, interest and other receivables 120,888 23,300 714,314 231,309 25,666
Prepaid assets 15,616 19,165 26,649 117,816 16,566
------------ ----------- ------------ ------------ -----------
Total Assets 161,681,283 58,291,668 203,437,809 457,371,110 29,440,974
------------ ----------- ------------ ------------ -----------
Liabilities
Payable to custodian -- -- 558,412 -- --
Payable for investments purchased 4,062,507 142,996 683,506 -- 2,090,746
Payable for fund shares redeemed 54,995 99,119 924,699 2,531,329 26,290
Variation margin on futures contracts -- -- -- -- 10,728
Payable to Adviser 98,658 37,162 170,065 395,118 25,344
Accrued distribution fee 27,577 6,118 30,779 11,690 3,238
Accrued expenses and other liabilities 73,224 31,832 110,942 185,967 334,397
------------ ----------- ------------ ------------ -----------
Total Liabilities 4,316,961 317,227 2,478,403 3,124,104 2,490,743
------------ ----------- ------------ ------------ -----------
Net Assets $157,364,322 $57,974,441 $200,959,406 $454,247,006 $26,950,231
------------ ----------- ------------ ------------ -----------
Net assets consist of:
Paid in capital $142,021,508 $57,444,818 $158,094,949 $394,197,802 $26,419,366
Accumulated net investment income (loss) 270,468 (223,130) 239,969 (5,651,189) (94,093)
Accumulated net realized gain (loss) (13,622,546) (5,810,723) 5,524,274 1,955,409 520,527
Net unrealized appreciation on investments,
futures and foreign currency related items 28,694,892 6,563,476 37,100,214 63,744,984 104,431
------------ ----------- ------------ ------------ -----------
Net assets $157,364,322 $57,974,441 $200,959,406 $454,247,006 $26,950,231
------------ ----------- ------------ ------------ -----------
Shares of beneficial interest outstanding
(unlimited shares of $0.01 par value
authorized) 7,605,847 4,015,984 14,165,479 15,353,533 2,653,290
Net asset value and redemption price per
share $ 20.69 $ 14.44 $ 14.19 $ 29.59 $ 10.16
------------ ----------- ------------ ------------ -----------
Maximum offering price per share $ 20.69 $ 14.44 $ 14.19 $ 29.59 $ 10.69
------------ ----------- ------------ ------------ -----------
(1) Cost of Investments $131,996,717 $51,461,914 $160,244,931 $389,989,600 $25,757,006
(2) Cost of Foreign Currencies $ -- $ -- $ 4,373,982 $ -- $ 101,593
See Notes to the Financial Statements.
Semi-Annual Report 33
The Tocqueville Trust
Statements of Operations
For the Six Months Ended April 30, 2005
(Unaudited)
The Small Cap International
Tocqueville Value Value Gold Genesis
Fund Fund Fund Fund Fund
----------- ----------- ------------- ------------ ---------
Investment Income:
Dividends* $1,638,742 $ 250,800 $ 2,090,504 $ 1,232,277 $ 118,682
Interest 160,330 11,602 27,517 456,985 72,470
---------- ----------- ----------- ------------ ---------
1,799,072 262,402 2,118,021 1,689,262 191,152
---------- ----------- ----------- ------------ ---------
Expenses:
Investment Adviser's fee (See Note 3) 582,755 268,520 1,027,289 2,534,145 182,849
Custody fees 9,965 4,893 116,236 61,334 17,258
Fund accounting fees 12,112 6,186 18,458 45,061 4,655
Transfer agent and shareholder services fees 19,268 13,239 17,733 74,556 5,842
Professional fees 47,342 25,490 58,916 177,868 10,412
Distribution fees (See Note 3) 194,252 89,507 256,822 640,060 36,570
Administration fee (See Note 3) 116,551 53,704 154,093 384,036 21,942
Printing and mailing expense 12,284 5,652 16,062 47,620 2,225
Registration fees 9,386 10,803 9,662 32,788 18,722
Trustee fees and expenses 7,076 5,056 7,088 9,136 7,287
Insurance expense 1,991 1,086 2,540 6,341 549
Other expenses 2,712 1,396 3,598 4,168 534
---------- ----------- ----------- ------------ ---------
Total expenses before waiver 1,015,694 485,532 1,688,497 4,017,113 308,845
Less: Fees waived (See Note 3) -- -- -- -- (23,600)
---------- ----------- ----------- ------------ ---------
Net expenses 1,015,694 485,532 1,688,497 4,017,113 285,245
---------- ----------- ----------- ------------ ---------
Net Investment Income (Loss) 783,378 (223,130) 429,524 (2,327,851) (94,093)
---------- ----------- ----------- ------------ ---------
Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments 8,152,072 (5,810,680) 12,453,344 2,618,300 627,431
Futures -- -- -- -- (65,479)
Foreign currency translation (1,137) -- 28,310 (17,913) (10,255)
---------- ----------- ----------- ------------ ---------
8,150,935 (5,810,680) 12,481,654 2,600,387 551,697
Net change in unrealized appreciation
(depreciation) on:
Investments (579,037) 2,040,271 4,399,881 (61,961,646) (308,991)
Written options -- -- -- -- (7,710)
Futures -- -- -- -- 33,727
Foreign currency translation -- -- (98,001) -- 1,071
---------- ----------- ----------- ------------ ---------
(579,037) 2,040,271 4,301,880 (61,961,646) (281,903)
Net gain (loss) on investments and
foreign currency 7,571,898 (3,770,409) 16,783,534 (59,361,259) 269,794
---------- ----------- ----------- ------------ ---------
Net Increase (Decrease) in Net Assets
Resulting from Operations $8,355,276 $(3,993,539) $17,213,058 $(61,689,110) $ 175,701
---------- ----------- ----------- ------------ ---------
* Net of foreign taxes withheld $ 15,665 $ -- $ 261,628 $ 115,098 $ 8,107
---------- ----------- ----------- ------------ ---------
See Notes to the Financial Statements.
34 April 30, 2005
[This page intentionally left blank]
The Tocqueville Trust
Statements of Changes in Net Assets
The Tocqueville Fund
--------------------------
For the
Six Months For the
Ended Year Ended
April 30, October 31,
2005 2004
------------ ------------
(Unaudited)
Operations:
Net investment income (loss) $ 783,378 $ 348,638
Net realized gain (loss) on investments, futures and foreign currency 8,150,935 9,070,987
Net change in unrealized appreciation/(depreciation) (579,037) 7,700,146
Net increase from payments by affiliates and net gains realized on the disposal of
investments in violation of restrictions -- --
------------ ------------
Net increase (decrease) in net assets resulting from operations 8,355,276 17,119,771
Dividends and distributions to shareholders:
Net investment income (863,340) (128,359)
Net realized gains (5,747,338) --
------------ ------------
Total dividends and distributions (6,610,678) (128,359)
Fund share transactions:
Shares sold 16,110,340 16,686,259
Shares issued to holders in reinvestment of dividends 5,266,557 103,678
Shares redeemed* (11,192,599) (37,842,825)
------------ ------------
Net increase (decrease) 10,184,298 (21,052,888)
------------ ------------
Net increase (decrease) in net assets 11,928,896 (4,061,476)
Net Assets:
Beginning of period 145,435,426 149,496,902
------------ ------------
End of period** 157,364,322 145,435,426
------------ ------------
* Net of redemption fees of: $ 10,938 $ 6,262
------------ ------------
** Including undistributed net investment income (loss) of: $ 270,468 $ 350,430
------------ ------------
Change in shares outstanding:
Shares sold 763,005 842,452
Shares issued to holders in reinvestment of dividends 252,109 5,386
Shares redeemed (528,052) (2,038,589)
------------ ------------
Net increase (decrease) 487,062 (1,190,751)
------------ ------------
See Notes to the Financial Statements.
36 April 30, 2005
The Tocqueville Trust
Statements of Changes in Net Assets
Small Cap Value Fund International Value Fund Gold Fund Genesis Fund
- -------------------------- -------------------------- ---------------------------- ------------------------
For the For the For the For the
Six Months For the Six Months For the Six Months For the Six Months For the
Ended Year Ended Ended Year Ended Ended Year Ended Ended Year Ended
April 30, October 31, April 30, October 31, April 30, October 31, April 30, October 31,
2005 2004 2005 2004 2005 2004 2005 2004
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ (223,130) $ (518,568) $ 429,524 $ 1,398,547 $ (2,327,850) $ (5,544,376) $ (94,093) $ (259,905)
(5,810,680) 3,310,048 12,481,654 20,548,179 2,600,387 23,030,253 551,697 (7,598)
2,040,271 (4,662,525) 4,301,880 7,193,808 (61,961,647) (18,447,515) (281,903) 435,161
-- -- -- -- -- 60,626 -- --
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
(3,993,539) (1,871,045) 17,213,058 29,140,534 (61,689,110) (901,012) 175,701 167,658
-- -- (1,164,107) (474,880) -- (452,570) -- --
(3,029,286) (11,288,152) -- -- (21,027,179) (7,973,092) -- --
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
(3,029,286) (11,288,152) (1,164,107) (474,880) (21,027,179) (8,425,662) -- --
7,396,755 36,273,646 20,682,804 61,218,738 87,662,692 344,683,052 2,414,294 14,789,631
2,803,582 10,595,378 893,120 443,677 19,721,438 8,015,104 -- --
(20,208,443) (32,222,093) (33,089,607) (23,778,607) (109,610,763) (237,735,768) (4,603,962) (5,602,703)
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
(10,008,106) 14,646,931 (11,513,683) 37,883,808 (2,226,633) 114,962,388 (2,189,668) 9,186,928
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
(17,030,931) 1,487,734 4,535,268 66,549,462 (84,942,922) 105,635,715 (2,013,967) 9,354,586
75,005,372 73,517,638 196,424,138 129,874,676 539,189,928 433,554,213 28,964,198 19,609,612
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
57,974,441 75,005,372 200,959,406 196,424,138 454,247,006 539,189,928 26,950,231 28,964,198
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
$ 23,851 $ 106,090 $ 23,987 $ 132,653 $ 246,666 $ 1,382,190 $ 1,618 $ 6,191
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
$ (223,130) $ -- $ 239,969 $ 974,552 $ (5,651,189) $ (3,323,338) $ (94,093) $ --
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
445,691 1,952,230 1,449,096 5,017,691 2,595,710 10,019,553 228,284 1,448,408
159,294 591,590 64,860 39,368 604,952 228,091 -- --
(1,245,363) (1,791,757) (2,338,705) (1,985,145) (3,322,805) (7,262,325) (436,567) (556,226)
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
(640,378) 752,063 (824,749) 3,071,914 (122,143) 2,985,319 (208,283) 892,182
- ------------ ------------ ------------ ------------ ------------- ------------- ----------- -----------
See Notes to the Financial Statements.
Semi-Annual Report 37
The Tocqueville Trust
The Tocqueville Fund
The Tocqueville Small Cap Value Fund
The Tocqueville International Value Fund
The Tocqueville Gold Fund
The Tocqueville Genesis Fund
Notes to Financial Statements
(Unaudited)
1. ORGANIZATION
The Tocqueville Trust (the "Trust") was organized as a Massachusetts
business trust registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as a diversified, open-end management investment company. The
Trust consists of five separate funds: The Tocqueville Fund, The Tocqueville
Small Cap Value Fund, The Tocqueville International Value Fund, The Tocqueville
Gold Fund and The Tocqueville Genesis Fund (individually referred to as the
''Fund'' and collectively referred to as the ''Funds''). The objective of The
Tocqueville Fund is long-term capital appreciation. The Tocqueville Fund seeks
to achieve its investment objective by investing primarily in securities of
United States issuers. The objective of The Tocqueville Small Cap Value Fund is
long-term capital appreciation. The Tocqueville Small Cap Value Fund seeks to
achieve its investment objective by investing at least 80% of its net assets,
plus borrowings for investment purposes, in common stocks of companies located
in the United States that have market values of less than $1 billion. The
objective of The Tocqueville International Value Fund is long-term capital
appreciation consistent with preservation of capital. The Tocqueville
International Value Fund seeks to achieve its investment objective by investing
primarily in non-U.S. companies. The objective of The Tocqueville Gold Fund is
to provide long-term capital appreciation. The Tocqueville Gold Fund seeks to
achieve its investment objective by investing 80% of its net assets, plus
borrowings for investment purposes, in gold and securities of companies located
throughout the world that are engaged in mining or processing gold. The
objective of The Tocqueville Genesis Fund is long-term capital appreciation
consistent with preservation of capital. The Tocqueville Genesis Fund seeks to
achieve its investment objective by investing primarily in securities of United
States issuers. Shares of The Tocqueville Genesis Fund are subject to an
initial sales charge imposed at the time of purchase, in accordance with the
Fund's prospectus. The maximum sales charge is 5.00% of the offering price. The
following is a summary of significant accounting 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
exchange 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
Trustees. Securities that are principally traded on the National Association of
Securities Dealers Automated Quotation ("NASDAQ") National Market are generally
valued at the NASDAQ Official Closing Price ("NOCP"). Precious metals are
valued at the mean between closing bid and asked prices based on dealer or
exchange quotes. When market quotations are not readily available, or when
restricted securities or other assets are being valued, such assets are valued
at fair value as determined in good faith by or under procedures approved by
the Trustees. Short-term securities maturing within 60 days are valued on an
amortized cost basis. Fixed income securities with maturities greater than 60
days are valued at market price.
Trading in securities on European and Far Eastern securities exchanges
normally is completed before the calculation of the Fund's net asset value.
Trading on these foreign exchanges may not take place on all days on which
there is regular trading on the New York Stock Exchange ("NYSE"), or may take
place on days on which there is no regular trading on the NYSE. Similarly, the
Fund may hold securities traded on domestic markets where the market may close
early on a given day prior to calculation of the Fund's net asset value. Events
affecting the value of such securities held by a Fund that occur between the
close of trading in the security and the close of trading on the NYSE normally
will not be reflected in the Fund's calculation of the net asset value.
Significant events will be closely monitored, and where it is determined
38 April 30, 2005
that an adjustment should be made to the security's value because significant
intervening events have caused a Fund's net asset value to be materially
inaccurate, the security will be priced at its fair value in accordance with
the procedures approved by the Trustees.
- --------------------------------------------------------------------------------
b) Restricted and illiquid securities
The Tocqueville Fund and The Tocqueville Gold Fund may invest in securities
that are subject to legal or contractual restrictions on resale or are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time.
Disposal of these securities may involve time consuming negotiations and
expense, and prompt sale at the current valuation may be difficult.
- --------------------------------------------------------------------------------
c) Federal income tax
Provision for federal income taxes or excise taxes has not been made since
the Funds have elected to be taxed as "regulated investment companies" and
intend to distribute substantially all taxable income to shareholders and
otherwise comply with the provisions of the Internal Revenue Code applicable to
regulated investment companies. Distributions from net realized gains for book
purposes may include short-term capital gains which are included as ordinary
income to shareholders for tax purposes. Accounting principles generally
accepted in the United States of America ("GAAP") requires that permanent
differences between financial reporting and tax reporting be reclassified
between various components of net assets.
At October 31, 2004 the cost of investments, gross unrealized appreciation
and depreciation of investments and distributable income for tax purposes were
as follows:
The Small Cap
Tocqueville Value International Gold Genesis
Fund Fund Value Fund Fund Fund
------------ ----------- ------------- ------------ -----------
Cost of Investments $115,858,105 $70,777,754 $162,246,330 $414,572,583 $28,292,649
------------ ----------- ------------ ------------ -----------
Appreciation $ 32,273,026 $13,620,129 $ 33,956,889 $145,237,306 $ 1,446,131
Depreciation (2,999,323) (9,096,924) (1,300,687) (23,498,696) (1,093,102)
------------ ----------- ------------ ------------ -----------
Net unrealized appreciation (depreciation)
on investments $ 29,273,703 $ 4,523,205 $ 32,656,202 $121,738,610 $ 353,029
------------ ----------- ------------ ------------ -----------
Undistributed ordinary income $ 350,430 -- $ 974,552 -- --
Undistributed long-term capital gain (16,026,143) $ 3,029,243 (6,957,380) $ 21,027,096 --
------------ ----------- ------------ ------------ -----------
Distributable earnings $ 13,597,990 $ 7,552,448 $ 26,673,374 $142,765,706 $ 353,029
------------ ----------- ------------ ------------ -----------
Other net unrealized appreciation
(depreciation) $ 226 $ -- $ 142,132 $ (213) $ 2,135
------------ ----------- ------------ ------------ -----------
Total accumulated earnings (losses) $ 13,598,216 $ 7,552,448 $ 26,815,506 $142,765,493 $ 355,164
------------ ----------- ------------ ------------ -----------
Unrealized appreciation and depreciation differ for financial statement and
tax purposes primarily due to the tax deferral of wash sale losses (The
Tocqueville Gold Fund and The Tocqueville Genesis Fund only) and realization
for tax purposes of unrealized losses on passive foreign investment companies
(The Tocqueville Gold Fund only).
Semi-Annual Report 39
The tax character of distributions paid during the fiscal years ended
October 31, 2004 and October 31, 2003 was as follows:
October 31, 2004
---------------------------------
Long-term
Ordinary Capital
Income Gain Total
---------- ---------- -----------
The Tocqueville Fund $ 128,359 -- $ 128,359
Small Cap Value Fund 1,704,472 $9,583,680 11,288,152
International Value Fund 474,880 -- 474,880
Gold Fund 2,902,418 5,523,243 8,425,661
Genesis Fund -- -- --
October 31, 2003
--------------------------------
Long-term
Ordinary Capital
Income Gain Total
---------- ---------- ----------
The Tocqueville Fund -- -- --
Small Cap Value Fund -- -- --
International Value Fund $ 86,751 -- $ 86,751
Gold Fund 1,061,753 $6,934,407 7,996,160
Genesis Fund -- -- --
At October 31, 2004, certain funds had tax basis capital losses which may
be carried over to offset future capital gains as shown below (see Note 6).
The
Tocqueville International
Fund Value Fund
----------- -------------
Capital losses expiring in:
2007 $ 1,018,738 --
2009 2,209,402 $3,219,270
2010 18,543,803 3,738,110
----------- ----------
$21,771,943 $6,957,380
----------- ----------
During the fiscal year ended October 31, 2004, The Tocqueville Fund, The
Tocqueville International Value Fund and The Tocqueville Genesis Fund utilized
$3,325,138, $20,909,375 and $126 of capital loss carryforwards, respectively.
- --------------------------------------------------------------------------------
d) Foreign currency translation
Investments and other assets and liabilities denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange,
in accordance with the Trust's Portfolio Securities Valuation Procedures. The
Tocqueville Fund, The Tocqueville International Value Fund, The Tocqueville
Gold Fund, and The Tocqueville Genesis Fund are engaged in transactions in
securities denominated in foreign currencies and, as a result, enter into
foreign exchange
40 April 30, 2005
contracts. These Funds are exposed to additional market risk as a result of
changes in the value of the underlying currency in relation to the U.S. dollar.
Risks include the potential inability of counterparties to meet the terms of
their contracts. 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 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 investments.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books, and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes in
the value of assets and liabilities other than investments in securities at the
end of the fiscal period, resulting from changes in the exchange rates.
- --------------------------------------------------------------------------------
e) Written option accounting
The Tocqueville International Value Fund, The Tocqueville Gold Fund and The
Tocqueville Genesis Fund may write (sell) covered call options to hedge
portfolio investments. When the Funds write (sell) an option, an amount equal
to the premium received by the Funds are included in the Statements of Assets
and Liabilities as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current value of the
option written. By writing an option, the Funds may become obligated during the
term of the option to deliver or purchase the securities underlying the option
at the exercise price if the option is exercised. Option contracts are valued
at the last sales price reported on the date of valuation. If no sale is
reported, the option contract written is valued at the average of the current
bid and asked price reported on the day of valuation. When an option expires on
its stipulated expiration date or the Funds enter into a closing purchase
transaction, the Funds realize a gain or loss if the cost of the closing
purchase transaction differs from the premium received when the option was sold
without regard to any unrealized gain or loss on the underlying security, and
the liability related to such option is eliminated. When an option is
exercised, the premium originally received decreases the cost basis of the
security (or increases the proceeds on a sale of the security), and the Funds
realize a gain or loss from the sale of the underlying security.
f) Futures contracts
Futures contracts listed for trading on a securities exchange or board of
trade shall be valued at the last quoted sales price, or in the absence of a
sale, the mean of the last bid and asked prices. When a Fund enters into a
futures contract, it makes an initial margin deposit in a segregated account,
either in cash or liquid securities. Thereafter, the futures contract is marked
to market and the Fund makes (or receives) additional cash payments daily to
(or from) the broker. Changes in the value of the contract are recorded as
unrealized appreciation (depreciation) until the contract is closed or settled,
at which time a realized gain or loss is recognized.
Semi-Annual Report 41
At April 30, 2005 The Tocqueville Genesis Fund had entered into stock index
futures contracts. The net unrealized depreciation is included in the
appreciation/depreciation section of the accompanying financial statements. The
terms of the open contracts are as follows:
Value as of Unrealized
Number of Expiration Value at April 30, Appreciation/
Contracts Description Date Trade Date 2005 (Depreciation)
--------- ------------- ---------- ---------- ----------- --------------
(2) S&P 500 Index 6/17/2005 $(607,194) $(579,250) $27,944
- --------------------------------------------------------------------------------
g) Use of estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that effect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of increases
and decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
h) Other
Investments and shareowner transactions are recorded on trade date.
Dividend income is recorded on the ex-dividend date or for foreign securities,
for which timely information is not available, when the Funds first learn of
the dividend, whichever is earlier. Interest income is recognized on the
accrual basis and market discount is accounted for on a yield to maturity basis
from settlement date. The Funds use the first-in, first-out method for
determining realized gain or loss on investments sold for both financial
reporting and federal tax purposes. The Funds may be subject to foreign taxes
on income, gains on investments or currency repatriation, a portion of which
may be recoverable. The Funds will accrue such taxes and recoveries as
applicable, based upon their current interpretation of tax rules and
regulations that exist in the markets in which it invests. Distributions to
shareholders are recorded on the ex-dividend date. Expenses incurred by the
Trust not specifically identified to a Fund are allocated on a basis relative
to the size of each Fund's daily net asset value. It is the 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.
================================================================================
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Tocqueville Asset Management L.P. ("Tocqueville"), is the investment
adviser to the Trust under Investment Advisory Agreements approved by
shareholders. For its services, Tocqueville receives fees from The Tocqueville
Fund, calculated daily and payable monthly, at an annual rate of 0.75% on the
first $1 billion of the average daily net assets of the fund, and 0.65% of the
average daily net assets in excess of $1 billion. Tocqueville receives fees
from The Tocqueville Small Cap Value Fund, calculated daily and payable
monthly, at an annual rate of 0.75% on the first $500 million of the average
daily net assets of the fund, and 0.65% of the average daily net assets in
excess of $500 million. Tocqueville receives fees from the Tocqueville
International Value Fund, calculated daily and payable monthly, at an annual
rate of 1.00% on the first $1 billion of the average daily net assets of the
fund, and 0.75% of the average daily net assets in excess of $1 billion.
Tocqueville receives fees from The Tocqueville Gold Fund, calculated daily and
payable monthly, at an annual rate of 1.00% on the first $500 million of the
average daily net assets of the fund, 0.75% of the average daily net assets in
excess of $500 million but not exceeding $1 billion, and 0.65% of the average
daily net assets in excess of $1 billion. Tocqueville receives fees from The
Tocqueville Genesis Fund, calculated daily and payable
42 April 30, 2005
monthly, at an annual rate of 1.25% on the first $1 billion of the average
daily net assets of the Genesis Fund, and 1.00% of the average daily net assets
in excess of $1 billion. In addition, with respect to The Tocqueville Genesis
Fund, the Adviser is contractually obligated to waive its fees and/or reimburse
expenses to the extent that the total annual operating expenses of The
Tocqueville Genesis Fund exceed 1.95%. This Expense Limitation Agreement shall
remain in effect until October 31, 2005. For the six months ended April 30,
2005, Tocqueville waived fees of $23,600 for The Tocqueville Genesis Fund. The
Tocqueville Genesis Fund is not expected to repay any such waived fees in
future years.
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 six months ended April 30, 2005,
the Adviser has made payments of $24,852, $11,130, $32,673, $79,710, and $4,637
to U.S. Bancorp 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, The Tocqueville Gold
Fund and The Tocqueville Genesis Fund, respectively.
Lepercq, de Neuflize/Tocqueville Securities, L.P., an affiliate of
Tocqueville, (the "Distributor") acts as distributor for shares of the Trust.
Each Fund adopted a distribution and service plan pursuant to Rule 12b-1 of the
1940 Act. Pursuant to the plans, each Fund pays to the Distributor distribution
and service fees of .25% per annum of its average daily net assets.
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, The
Tocqueville Gold Fund and The Tocqueville Genesis Fund for the six months ended
April 30, 2005, were $97,702, $94,708, $15,310, $185,526 and $107,435,
respectively.
- --------------------------------------------------------------------------------
4. FUND SHARE TRANSACTIONS
The Funds currently offer only one class of shares of beneficial interest.
A redemption fee of 2.00% is imposed on redemptions of shares held 120 days or
less. This fee is retained by each Fund and is credited to paid in capital.
Redemptions to which the fee applies include redemptions of shares resulting
from an exchange made pursuant to the Exchange Privilege, as defined in the
Trust's Prospectus dated February 28, 2005. For a more detailed description of
when the redemption fee does not apply, please see the Trust's Prospectus. The
Trust may waive the redemption fee when the Advisor determines that the
imposition of the redemption fee is not necessary to protect a Fund from the
effects of redemptions by investors who use the Fund as a short-term trading
vehicle.
Semi-Annual Report 43
5. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
instruments) for the six months ended April 30, 2005 are summarized below.
Tocqueville Tocqueville Tocqueville Tocqueville
Tocqueville Small Cap International Gold Genesis
Fund Value Fund Value Fund Fund Fund
----------- ----------- ------------- ----------- -----------
Purchases:
U.S. Government $ -- $ -- $ -- $ -- $ --
Other 42,975,322 6,988,696 32,262,994 82,704,488 36,367,279
----------- ----------- ----------- ----------- -----------
Sales:
U.S. Government $ 3,000,000 $ -- $ -- $ -- $ --
Other 33,985,938 18,819,537 43,618,862 64,998,258 34,319,148
----------- ----------- ----------- ----------- -----------
- --------------------------------------------------------------------------------
6. ACQUISITION INFORMATION
Effective prior to the commencement of business on October 31, 2003, The
Tocqueville Fund acquired, through a non-taxable reorganization, substantially
all of the net assets of the Gintel Fund, a single series. The Tocqueville Fund
issued 3,341,209 shares (valued at $59,774,252) for the 6,538,848 shares
outstanding of the Gintel Fund. The net assets of the Gintel Fund, $59,774,252,
included net unrealized appreciation on investments of $28,019 and accumulated
net realized losses of $47,209,292. The Gintel Fund also had capital loss
carryforwards which were combined with those of The Tocqueville Fund. Subject
to limitations imposed by IRS regulations, The Tocqueville Fund may use capital
loss carryforwards of $19,834,806 to offset future capital gains.
Effective prior to the commencement of business on July 9, 2002, The
Tocqueville Fund acquired, through a non-taxable reorganization, substantially
all of the net assets of the Lepercq-Istel Fund, the single series of the
Lepercq-Istel Trust. The Tocqueville Fund issued 1,036,399 shares (valued at
$15,928,833) for the 1,240,708 shares outstanding of the Lepercq-Istel Fund.
The net assets of the Lepercq-Istel Fund, $15,928,833, included net unrealized
depreciation on investments of $2,968,061 and accumulated net realized losses
of $7,917,312. The Lepercq-Istel Fund also had capital loss carryforwards which
were combined with those of The Tocqueville Fund. Subject to limitations
imposed by IRS regulations, The Tocqueville Fund may use capital loss
carryforwards of $5,839,853 to offset future capital gains.
44 April 30, 2005
ADDITIONAL INFORMATION (UNAUDITED)
1. ADDITIONAL DISCLOSURE REGARDING FUND TRUSTEES AND OFFICERS (UNAUDITED)
Independent Trustees
# of
Portfolios
Term of in Fund
Position(s) Office and Complex
Held with Length of Principal Occupation Overseen Other Directorships
Name, Age and Address the Trust Time Served(1) During Past Five Years By Trustee Held by Trustee
- --------------------- ----------- ---------------- ----------------------------- ---------- ----------------------
Inge Heckel (65) Trustee Indefinite Term, President, New York School of 5 Member of the
40 W. 57th St., 19th Floor 18 Years Served Interior Design, from July Advisory Council, the
New York, NY 10019 1996 to present. Institute of Classical
Architecture;
Member, Advisory
Council Olana
Preservation;
Member,
Horticultural
Committee,
Wave Hill
Lucille G. Bono (71) Trustee Indefinite Term, Retired. Tocqueville Trust 5 None
40 W. 57th St., 19th Floor 6 Years Served Trustee.
New York, NY 10019
Larry M. Senderhauf (56) Trustee Indefinite Term, Retired. Administrator and 5 None
40 W. 57th St., 19th Floor 6 Years Served Trustee, LMS 33 Profit and
New York, NY 10019 Pension Sharing Fund from
1983 to 2004.
Guy A. Main (68) Trustee Indefinite Term, Retired. Formerly, Executive 5 Director, Amwest
40 W. 57th St., 19th Floor 4 Years Served Vice President, Amwest Insurance Group,
New York, NY 10019 Insurance Group, Inc. from Inc. from April 1996
April 1996 to January 2001; to January 2001;
Chairman, President and Chief Chairman,
Executive Officer, Condor Association of
Services Inc. from April 1989 California Insurance
to April 1996. Companies from
January 1996 to
January 1998;
Director, Condor
Services Inc. from
April 1989 to April
1996.
Semi-Annual Report 45
Independent Trustees
# of
Portfolios
Term of in Fund
Position(s) Office and Complex
Held with Length of Principal Occupation Overseen Other Directorships
Name, Age and Address the Trust Time Served(1) During Past Five Years By Trustee Held by Trustee
- --------------------- ----------- ---------------- ---------------------------- ---------- ---------------------
Charles W. Caulkins (48) Trustee Indefinite Term, Founder and President, Arbor 5 Director, Phoenix
40 W. 57th St., 19th Floor 2 Years Served Marketing, Inc. from October House from January
New York, NY 10019 1994 to present. 2001 to present;
Director, Bridges to
Community from
July 2002 to present.
James W. Gerard (43) Trustee Indefinite Term, Principal, Argus Advisors 5 Director and
Argus Capital 3 Years Served International, LLC from Treasurer, ASPCA
Partners LLC August 2003 to present; from 1997 to
36 West 44th Street Managing Director, The Chart present; Director,
Suite 610 Group from January 2001 to Phoenix House, from
New York, NY 10036 present; Managing Principal, 1995 to present.
Ironbound Partners from
October 1998 to December
2000.
46 April 30, 2005
Interested Trustees (and Officers)*
# of
Portfolios
Term of in Fund
Position(s) Office and Complex
Held with Length of Principal Occupation Overseen Other Directorships
Name, Age and Address the Trust Time Served(1) During Past Five Years By Trustee Held by Trustee
- --------------------- ------------ ---------------- ------------------------------ ---------- ---------------------
Francois D. Sicart (61) Chairman, Indefinite Term, Chairman, Tocqueville 5 Chairman and
40 W. 57th St., 19th Floor Principal 18 Years Served Management Corporation, the Director,
New York, NY 10019 Executive General Partner of Tocqueville Tocqueville
Officer and Asset Management L.P. and Management
Trustee Lepercq, de Neuflize/ Corporation, the
Tocqueville Securities L.P. General Partner of
from January 1990 to present; Tocqueville Asset
Chairman and Founder, Management L.P.
Tocqueville Asset and Lepercq, de
Management Corp. from Neuflize/
December 1985 to January Tocqueville
1990; Vice Chairman of Securities, L.P. from
Tucker Anthony Management January 1990 to
Corporation from 1981 to present.
October 1986; Vice President
(formerly general partner)
among other positions with
Tucker Anthony, Inc. from
1969 to January 1990.
Robert W. Kleinschmidt (55) President, Indefinite Term, President, Chief Investment 6 President and
40 W. 57th St., 19th Floor Principal 13 Years Served Officer and Director, Director,
New York, NY 10019 Operating Tocqueville Management Tocqueville
Officer, Corporation, the General Management
Principal Partner of Tocqueville Asset Corporation, the
Financial Management L.P. and General Partner of
Officer, and Lepercq, de Neuflize/ Tocqueville Asset
Trustee Tocqueville Securities, L.P. Management L.P.
from January 1994 to present; and Lepercq, de
and Managing Director from Neuflize/Tocqueville
July 1991 to January 1994; Securities, L.P.
Partner, David J. Greene & Co.
from May 1978 to July 1991.
* "Interested person" of the Trust is defined in the 1940 Act. Mr. Sicart and
Mr. Kleinschmidt are considered "interested persons" because of their
affiliation with the Adviser.
Semi-Annual Report 47
Interested Trustees (and Officers)*
# of
Portfolios
Term of in Fund
Position(s) Office and Complex
Held with Length of Principal Occupation Overseen Other Directorships
Name, Age and Address the Trust Time Served(1) During Past Five Years By Trustee Held by Trustee
- --------------------- ----------- --------------------- ----------------------------- ---------- -------------------
John P. Cassidy (62) Secretary, Indefinite Term, less Treasurer, Tocqueville Asset N/A N/A
40 W. 57th St., 19th Floor Treasurer than 1 Year Served Management LP, from 2002 to
New York, NY 10019 present; Independent
consultant, 2001; Deutsche
Bank Group, Vice President,
1997-2000
Elizabeth Bosco (57) Anti Indefinite Term, Compliance Officer, N/A N/A
40 W. 57th St., 19th Floor Money Since 2002 Tocqueville Asset
New York, NY 10019 Laundering Management L.P. from 1997
Compliance to present.
Officer
Thomas Pandick (58) Chief Indefinite Term, Chief Compliance Officer N/A N/A
40 W. 57th St., 19th Floor Compliance Since 2004 (October 2004-present),
New York, NY 10019 Officer Tocqueville Asset
Management L.P.; General
Counsel (January-October
2004), Tocqueville Asset
Management L.P.; Vice
President, Kirkbride Asset
Management, Inc.
(2000-2004); Counsel to NYS
Workers Compensation Board
(1995-1999); Director of
Corporate Governance, Office
of State Comptroller
(1985-1995); General Counsel,
New York State & Local
Retirement Systems
(1979-1985)
1 Each Trustee will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Trustee and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Trustee resigns or retires, or a Trustee is
removed by the Board of Trustees or shareholders, in accordance with the
Trust's By-Laws, as amended, and Agreement and Declaration of Trust, as
amended. Each officer will hold office for an indefinite term until the date
he or she resigns or retires or until his or her successor is elected and
qualified.
48 April 30, 2005
2. PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that The Tocqueville Trust
uses to determine how to vote proxies relating to portfolio securities is
available without charge upon request by calling 1-800-355-7307. Information
regarding how The Tocqueville Trust voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available by
calling 1-800-355-7307 and it is also available on the SEC's web site at
http://www.sec.gov.
- --------------------------------------------------------------------------------
3. SHAREHOLDER REPORTS AND QUARTERLY PORTFOLIO DISCLOSURE
The Tocqueville Trust is required to file its complete schedule of
portfolio holdings with the SEC for its first and third fiscal quarters on Form
N-Q. The Trust's Form N-Q will be available without charge, upon request on the
SEC's website (http://www.sec.gov) and may be available by calling
1-800-697-3863. You can also obtain copies of Form N-Q by (i) visiting the
SEC's Public Reference Room in Washington, DC (information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330); (ii)
sending your request and a duplicating fee to the SEC's Public Reference Room,
Washington, DC 20549-0102; or (iii) sending your request electronically to
www.publicinfosec.gov.
- --------------------------------------------------------------------------------
4. SHAREHOLDER NOTIFICATION OF FEDERAL TAX STATUS
The Funds designate the following percentages of dividends declared during
the fiscal year ended October 31, 2004 as dividends qualifying for the
dividends received deduction available to corporate shareholders:
The Tocqueville Fund 100.00%
Small Cap Value Fund 30.96%
International Value Fund 44.11%
Gold Fund 33.38%
Genesis Fund 0.00%
The Funds designate the following percentages of dividends declared from
net investment income during the fiscal year ended October 31, 2004 as
qualified income under the Jobs and Growth Tax Relief Reconciliation Act of
2003:
The Tocqueville Fund 100.00%
Small Cap Value Fund 27.33%
International Value Fund 100.00%
Gold Fund 27.60%
Genesis Fund 0.00%
Semi-Annual Report 49
5. FOREIGN TAX CREDIT
For the year ended October 31, 2004, certain of the Funds earned foreign
source income and paid foreign taxes which they intend to pass through their
shareholders pursuant to Section 853 of the Internal Revenue Code as follows:
Foreign Source
Income Earned Foreign Taxes
International Value Fund (per share) Paid (per share)
------------------------ -------------- ----------------
Austria 0.0029 0.0004
Belgium 0.0192 0.0029
Bermuda 0.0038 0.0000
Brazil 0.0063 0.0009
Canada 0.0030 0.0004
Finland 0.0189 0.0028
France 0.0060 0.0008
Greece 0.0058 0.0000
Hong Kong 0.0015 0.0000
Indonesia 0.0245 0.0037
Ireland 0.0003 0.0000
Italy 0.0135 0.0020
Japan 0.0288 0.0019
Mexico 0.0115 0.0000
Netherlands 0.0168 0.0028
Singapore 0.0692 0.0000
South Africa 0.0055 0.0000
Spain 0.0035 0.0005
Sweden 0.0031 0.0005
United Kingdom 0.0257 0.0013
United States 0.0028 0.0000
Foreign Source
Income Earned Foreign Taxes
Gold Fund (per share) Paid (per share)
--------- -------------- ----------------
Australia 0.0167 0.0024
Canada 0.0319 0.0048
Peru 0.0102 0.0004
Russia 0.0018 0.0003
South Africa 0.0519 0.0003
United Kingdom 0.0027 0.0000
United States 0.0183 0.0003
50 April 30, 2005
6. SPECIAL MEETING OF SHAREHOLDERS, JANUARY 31, 2005
A Special Meeting of Shareholders of the The Tocqueville Small Cap Value
Fund and The Tocqueville Gold Fund, each a series of The Tocqueville Trust (the
"Trust"), adjourned on October 22, 2004, was held on January 31, 2005 at the
offices of Tocqueville Asset Management, L.P. (the "Adviser"). As of August 24,
2004, the record date, outstanding shares of each of the Funds and the shares
of the Funds present at the meeting in person or by proxy were as follows:
Outstanding Shares Shares present
Fund August 24, 2004 at meeting
---- ------------------ --------------
The Tocqueville Small Cap Value Fund 4,700,714.994 4,027,265.862
The Tocqueville Gold Fund 15,321,814.151 14,530,004.465
Holders of a majority of the outstanding shares of each Fund were present,
and, therefore, a quorum for each Fund was present. The purpose of the meeting
was to consider and act upon the following proposals:
1) Approval of an increase in the amount of total assets that The
Tocqueville Gold Fund can invest in gold bullion and other precious metals
from 10% to 20% (The Tocqueville Gold Fund only).
2) Approval by the shareholders of amendments to the Investment
Advisory Agreements to Increase the Advisory Fee Breakpoints (The
Tocqueville Small Cap Value Fund and the Tocqueville Gold Fund).
The tabulation of the shareholder votes rendered the following results:
For Against Withhold/Abstain
------------- ------------- ----------------
Proposal 1.
The Tocqueville Gold Fund 7,702,094.351 218,004.537 73,291.577
Proposal 2.
The Tocqueville Small Cap Value Fund 1,928,837.496 451,023.470 132,462.896
The Tocqueville Gold Fund 5,822,793.049 1,914,528.631 256,068.785
Proposal 1 was approved by the shareholders of The Tocqueville Gold Fund.
Proposal 2 was not approved by the shareholders of the Tocqueville Small Cap
Value Fund or The Tocqueville Gold Fund.
Semi-Annual Report 51
Investment Adviser
Tocqueville Asset Management L.P.
40 W. 57th St., 19th Floor
New York, NY 10019
(212) 698-0800
www.tocqueville.com
Distributor
Lepercq, de Neuflize/Tocqueville Securities, L.P.
40 W. 57th St., 19th Floor
New York, NY 10019
(212) 698-0800
Shareholders' Servicing and Transfer Agent
U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
(800) 697-3863
Custodian
U.S. Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
Board of Trustees
Francois D. Sicart--Chairman
Lucille G. Bono
Charles W. Caulkins
James W. Gerard
Inge Heckel
Robert W. Kleinschmidt
Guy A. Main
Larry M. Senderhauf
[LOGO]
Tocqueville Funds
c/o US Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
www.tocquevillefunds.com
TQRPSEMI 05
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6. Schedule of Investments.
Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchases.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors/trustees
Item 11. Controls and Procedures.
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and
have concluded that the registrant's disclosure controls and
procedures were effective in ensuring that information required to be
disclosed by the registrant in this Form N-CSR was recorded, processed,
summarized and reported on a timely basis.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the registrant's last fiscal
half-year that have materially affected, or are reasonably likely to
affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(a) (1) Not Applicable.
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002. Filed herewith.
(3) Not applicable to open-end investment companies.
(b) Certification of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. Section 1350. Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The Tocqueville Trust
By (Signature and Title) /s/ Robert W. Kleinschmidt
-----------------------------------------------
Robert W. Kleinschmidt, President
Date 7/1/2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Robert W. Kleinschmidt
----------------------------------------------
Robert W. Kleinschmidt, President
Date 7/1/2005
By (Signature and Title)* /s/ John P. Cassidy
----------------------------------------------
John P. Cassidy, Treasurer
Date 7/1/2005
* Print the name and title of each signing officer under his or her signature.
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