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Gintel Fund to Merge Into Tocqueville Fund

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Sept. 4, 2003 — The Gintel Fund (GINLX) is seeking to merge into the Tocqueville Fund (TOCQX), according to papers filed with the SEC on August 29.

In a letter to Gintel fund shareholders contained in the filing, Robert M. Gintel, the 75-year old portfolio manager of the Gintel fund and chairman of the fund’s investment adviser, Gintel Asset Management Inc., announced he would retire from money management.

Gintel pointed out that the Tocqueville fund “has the same investment objective as the Gintel fund” but differs in that “it is a diversified rather than a non-diversified investment company.” However, Gintel noted that “Tocqueville’s philosophy is otherwise similar to ours in that it relies heavily on fundamental investment research, including continued dialogue and visits with company management.”

Indeed, the Gintel fund’s concentrated approach hasn’t helped it outperform its peers either in the short term or over the long.

Ranked 3 Stars by Standard & Poor’s, the fund gained 4.1% year to date through July, versus a gain of 15.7% for its large-cap growth fund peers. For the ten-year period ended in July, Gintel rose an average annualized 2.7%, versus a 7.7% gain for its peers.

The $81-million Tocqueville fund, managed by Robert Kleinschmidt, has risen 16.1% year to date through July, versus 15.8% for the average mid-cap value fund. For the ten years ended in July, the fund rose 9%, versus 11.5% for its peers. The portfolio carries a 2-Star rank from Standard & Poor’s.

The Tocqueville fund’s investment advisory fee at 0.75% per year is lower than Gintel fund’s 1.00% fee, Gintel noted in his letter to fund shareholders.

The two funds have about $140 million in assets combined.