<PAGE>
Van Eck Worldwide Balanced Fund
--------------------------------------
1996 Annual Report
Dear Shareholder:
While not surpassing 1995's exceptionally high returns, global equity markets
produced strong gains in 1996, supported by low interest rates and moderate
economic growth. After selling off sharply in the first quarter due to worries
over stronger-than-expected growth, global bond markets rose modestly. As the
year progressed, the Fund became more fully invested. The Worldwide Balanced
Fund recorded a total return of 11.6%* for the calendar year ended December 31,
1996.
GLOBAL EQUITY MARKETS
Similar to 1995, most major world stock markets produced excellent returns in
1996. The Japanese market was the notable exception. While the impetus for
higher global equity prices varied by market, continued favorable global
monetary policy, along with moderate but controlled economic expansion,
provided an attractive investment backdrop for global equities. For the year,
global equities increased 14.0%, an impressive result considering the 15.4%
decline in the Japanese market (in U.S. dollars). The U.S. market again
performed well on the back of continued moderate economic growth, low inflation
and good corporate earnings growth. European equities turned in very strong
performances (up 21.6%) as investors focused on the benefits to continental
interest rates from the more likely implementation of European Monetary Union
(EMU). Unrealized expectations of a sharp rebound in economic and corporate
earnings growth and a likely fiscal tightening for 1997 contributed to the poor
investment results in Japanese equities. Asia Pacific and Latin American
markets registered gains of 21%-22% on average, though performance within these
regions was quite different on a country and stock-specific basis. Your Fund
was over 60% invested in equities by year end.
U.S. equities, which comprised approximately 45%-50% of the Fund's total equity
investments by year end, gained 24.1% in 1996, benefiting from strong corporate
profitability and the favorable supply/demand situation with respect to cash
inflows into mutual funds and net corporate buybacks of shares. The market
showed surprising resilience earlier in the year after a sharp sell-off in the
bond market as signs of strengthening economic growth surfaced. As the year
progressed, worries of an accelerating economy faded, producing a reversal in
the bond market and underpinning equity valuations. In this moderate growth
environment, we focused on secular growth themes, overweighting sectors such as
technology, financials and drugs. The former two sectors were the best
performing groups in the U.S.
Though economic expansion was weak in most Continental European countries,
several factors combined to support the strong rally in European shares (which
comprised about 20% of the Fund's total equity investments). A weak economy
encouraged the German Bundesbank and neighboring central banks to lower short-
term interest rates. In addition to bolstering bond prices, this development
had a corresponding positive impact on equity values. Further, in response to
declining inflation, central banks in the peripheral European countries, such
as Sweden, Spain and Italy, lowered base rates significantly, while their
governments addressed fiscal deficits in order to qualify for EMU. This
resulted in a sharp convergence of bond yields throughout the European markets,
much to the benefit of the peripheral equity markets. In such an environment,
it was no surprise that Sweden (+38.0%) and Spain (+41.3%) outpaced their
European counterparts. The UK (+27.4%) and Ireland (+32.0%) also turned in
solid gains, though most of their gains were due to strong domestic economies
and an export-led expansion. The Fund's exposure to sought after growth stocks
(Compass Group) and corporate restructuring stories (Hoechst, Royal Dutch)
contributed to Fund performance.
Although Japan's economic growth will probably end the March 1997 fiscal year
near 2.5%, expectations by the investment community for higher
<PAGE>
economic growth were not met, thereby disappointing market observers. The
weaker-than-anticipated recovery and limited commitment of Japanese companies
to restructure their operations resulted in only modest earnings growth
compared to the declines suffered during the recession of the 1990's. The
impact of slower growth in the current year is compounded when considering
changes that will occur in fiscal policy for 1997. Much of the pick-up that
was seen in consumer spending in 1996 was in anticipation of an increase in
the consumption tax from 3% to 5% in April 1997. Thus, even though economic
growth in 1996 fell short of expectations, some of the 1997 consumer spending
has already been brought forward to the current year. This "borrowed"
spending, combined with a reduction in government infrastructure expenditures
for 1997, led analysts to downgrade their growth expectations for Japan in
1997 as well. In 1996, the Fund was underweighted in Japan, ending the year at
approximately 14% of total equity investments. Specifically, the portfolio was
underweighted in Japanese financial stocks due to fundamental weakness in the
banking sector. We overweighted the portfolio in export-related and technology
stocks as the weak yen made companies in these areas more competitive on a
global basis. The cyclical upturn in technology stocks also prompted us to
overweight the Fund in high-tech issues.
There was a marked difference in year-to-date performance among the various
Asia Pacific markets (which comprised approximately 6% of the total equity
position). Hong Kong, which makes up most of this position, was clearly the
star performer (+33.1%). The market benefited from a U.S. bond rally after the
March sell-off, a recovery in the Hong Kong residential property market, a
stronger Chinese economy and reduced tension over China's takeover of Hong
Kong, which is set for July 1, 1997. Conversely, Thailand (-36.6%: 0.2% of
equities held) dealt with weaker export growth in response to the poor DRAM
semi-conductor market, high interest rates which reigned in previously high
economic growth and political unrest.
Latin American equities (about 9% of total equities) produced excellent gains
on balance, increasing 22.0% for the year. Performance among the four major
markets differed. Brazil (+42.5%), Mexico (+18.0%) and Argentina (+20.3%)
turned in solid investment results, while Chile (-13.5%) lagged its regional
neighbors as the country's perennially strong economy decelerated slightly.
Economies in Brazil, Mexico and Argentina showed strong signs of recovering
from the 1995 recessions sparked by the devaluation of the Mexican peso in
late 1994. In Brazil, recently (or soon to be) privatized companies in the
utility sector (the only sector held in that country) outperformed the market,
while private-sector companies sharply underperformed the local index.
GLOBAL BOND MARKETS
1996 was bittersweet for global fixed income investors. In local currency
terms, every major bond market outpaced the U.S. market, but an appreciating
U.S. dollar erased most of those gains. The three major bond markets, the
U.S., Japan and Germany, produced the lowest returns, while the riskiest
markets, which include emerging markets and the peripheral European markets,
produced the best investment results. Bonds comprised approximately 30% of
your Fund's investments at year end.
The U.S. market, where the entire bond portfolio was held, was volatile in
1996 as perceptions of the economy's strength remained unclear throughout the
year. Early in 1996, the Federal Reserve cut short-term interest rates in
response to seemingly weak economic activity. A series of strong employment
reports and rising consumer spending quickly dashed hopes of further interest
rate cuts, prompting some of the largest one-day price declines in a decade.
After being as low as 5.95% on January 3, the yield on the 30-year U.S.
Treasury bond hit a high of 7.19% for 1996 on June 12. Analysts feared that
stronger growth would prompt the Federal Reserve to raise rates. For the
balance of 1996, however, yields fell back to around 6.6% as growth remained
steady and the likelihood of any move by the Fed receded. The U.S. market
ended the year with a modest gain of 2.7%.
THE OUTLOOK
Similar to the beginning of 1996, we have a favorable investment outlook for
global financial
<PAGE>
assets and expect reasonable investment results in the year ahead. We do not
anticipate global equity returns to match those of the past two years. With a
moderate growth, low inflation backdrop, we continue to favor stocks over
bonds.
With the exception of Japanese equities, we expect international stocks to
outperform the U.S. in 1997, though on a stock-selective basis, we continue to
find attractive investment ideas domestically. Global inflation does not appear
to be a concern while growth in the UK, Europe, Latin America and Asia Pacific
should accelerate, with the corresponding favorable impact on corporate
earnings growth in those regions. With inflationary concerns relatively low,
the interest-rate backdrop is likely to remain favorable for equities. Your
portfolio is positioned to capitalize on the growth potential in these regions,
with particular emphasis on companies that can benefit from secular investment
themes, such as aging demographics, technological change, corporate
restructuring, industry consolidation and emerging markets growth. The counter
to our positive stance on the above regions is our underweighted position in
Japan, where economic growth remains modest and will likely suffer in 1997 as
planned fiscal tightening further restricts consumer spending.
We appreciate your participation in the Worldwide Balanced Fund and look
forward to helping you meet your investment goals in the future.
[PHOTOGRAPH [PHOTOGRAPH
APPEARS HERE] APPEARS HERE]
/s/ John C. van Eck /s/ Derek S. van Eck
John C. van Eck Derek S. van Eck
Chairman Portfolio Manager
January 27, 1997
* Average annual returns on the Fund for the 1-year period ending 12/31/96 and
for the period from 12/23/94 (commencement of operations) through 12/31/96
were 11.6% and 5.5%, respectively. These returns do not take variable
annuity/life fees and expenses into account. The performance data represents
past performance and is not indicative of future results. Investment return
and principal value of an investment in the Fund will vary so that shares,
when redeemed, may be worth more or less than their original cost.
Note: All equity performance figures are from Morgan Stanley Capital
International Indices.
Van Eck Worldwide Balanced Fund
vs. Global Balanced Index*
[GRAPH]
Average Annual Total Return**
-----------------------------------
One Year Life
11.6% 5.5%
Van Eck Worldwide
Date Balanced Fund Global Balanced Index
- ---- ----------------- ---------------------
12/94 10000 10000
1/95 10000 9995
2/95 10000 10186
3/95 10000 10724
4/95 10000 11029
5/95 10000 11211
6/95 10000 11236
7/95 10000 11585
8/95 10000 11273
9/95 9991 11572
10/95 9960 11498
11/95 10010 11791
12/95 9990 12049
1/96 10120 12121
2/96 10180 12142
3/96 10200 12258
4/96 10290 12413
5/96 10341 12421
6/96 10351 12499
7/96 10301 12332
8/96 10401 12437
9/96 10581 12751
10/96 10681 12902
11/96 10892 13405
12/96 11152 13234
Past performance is not indicative of future results.
The graph shows month-end net asset values, however, the net asset value
fluctuates daily.
*The Global Balanced Index consists of 60% MSCI World Equity Index and 40%
Salomon Brothers World Government Bond Index.
**Performance is net of the Fund's expenses only, which were fully reimbursed by
the Advisor. Had the Fund incurred all expenses, investment returns would have
been reduced.
<PAGE>
Worldwide Balanced Fund
Investment Portfolio December 31, 1996
<TABLE>
<CAPTION>
NO. OF VALUE
COMMON STOCK SHARES (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
ARGENTINA: 1.6%
Banca de Galicia Buenos Aires (ADR) 500 $12,125
Telecom Argentina Stet-France Telecom S.A. (ADR) 300 12,112
-------
24,237
-------
BRAZIL: 1.5%
Telecomunicacoes Brasileiras S.A. (ADR) 300 22,950
-------
CHILE: 0.4%
Chilgener S.A. (ADR) 250 5,219
-------
FINLAND: 0.4%
Nokia AB "A" (ADR) 100 5,763
-------
FRANCE: 3.6%
Carrefour S.A. 50 32,524
Scor S.A. 600 21,098
-------
53,622
-------
GERMANY: 2.8%
Hoechst AG 400 18,870
VEBA AG 400 23,102
-------
41,972
-------
HONG KONG: 4.2%
Cheung Kong (Holdings) Ltd. (ADR) 3,500 31,150
Sun Hung Kai Properties Ltd. (ADR) 2,500 30,625
-------
61,775
-------
JAPAN: 10.1%
Canon Inc. (ADR) 200 22,000
Hitachi Ltd. (ADR) 300 27,750
Matsushita Electric Industrial Co., Ltd. 2,000 32,579
Mitsubishi Heavy Industries Ltd.+ 4,000 31,717
Nomura Securities Co. Ltd. (ADR) 30 4,590
Yamatake-Honeywell 2,000 32,234
-------
150,870
-------
MEXICO: 2.8%
Apasco S.A. 6,000 41,065
-------
NETHERLANDS: 3.9%
ING Groep N.V. (ADR) 800 28,400
Philips Electronics N.V. 50 2,025
Philips Electronics N.V. (ADR) 50 2,000
Royal Dutch Petroleum Co. (New York Registry Shares) 150 25,613
-------
58,038
-------
SPAIN: 0.1%
Compania Sevillana de Electricidad 168 1,907
-------
SWEDEN: 0.3%
Kinnevik AB "B" 100 2,747
NetCom Systems AB "A"+ 100 1,614
-------
4,361
-------
SWITZERLAND: 1.9%
ABB AG-Registered 50 12,076
Roche Holdings AG 2 15,527
-------
27,603
-------
THAILAND: 0.1%
Krung Thai Bank Ltd. "F" 1,000 1,930
-------
UNITED KINGDOM: 1.4%
British Aerospace PLC 500 10,973
Compass Group PLC 900 9,533
-------
20,506
-------
</TABLE>
<TABLE>
<CAPTION>
NO. OF VALUE
COMMON STOCK SHARES (NOTE 1)
- --------------------------------------------------------
<S> <C> <C>
UNITED STATES: 34.8%
Allied Signal Inc. 150 $ 10,050
American Express Company 700 39,550
Boeing Co. 300 31,913
Burlington Northern Santa Fe 700 60,463
Chase Manhattan Corp. 400 35,700
Cisco Systems+ 600 38,175
Disney (Walt) Co. (The) 400 27,850
Federal National Mortgage Association 900 33,525
Intel Corp. 350 45,828
Lucent Technologies Inc. 1,000 46,250
Merck & Co. 400 31,700
Mobil Corp. 300 36,675
Monsanto Co. 800 31,100
Pfizer Inc. 150 12,431
SunAmerica, Inc. 800 35,500
----------
516,710
----------
TOTAL COMMON STOCKS: 69.9%
(Cost: $938,092) 1,038,528
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM BOND: 30.1% AMOUNT
- ---------------------------------------------------
<S> <C> <C>
U.S. Treasury Note 6.125% 12/31/2001
(Cost: $450,773) $450,000 448,383
----------
TOTAL INVESTMENTS: 100.0%
(Cost: $1,388,865) $1,486,911
==========
+ Non-income producing
</TABLE>
Glossary:
ADR--American Depositary Receipt
<TABLE>
<CAPTION>
% OF
SUMMARY OF INVESTMENTS BY INDUSTRY PORTFOLIO
- -------------------------------------------------
<S> <C>
Aerospace & Defense 5.0%
Banks 5.2%
Brokerage 0.3%
Cement 2.7%
Chemicals 3.4%
Drugs 0.8%
Electric Utilities 2.5%
Electrical Equipment 1.9%
Electronics 2.7%
Electronics & Electrical Equipment 2.3%
Entertainment & Leisure Time 1.9%
Financial Services 7.4%
Holding Co.--Diversified 0.2%
Insurance 1.4%
Manufacturing 0.7%
Office Equipment 1.5%
Oil Integrated--International 4.2%
Pharmaceutical 3.2%
Real Estate 4.2%
Restaurants 0.5%
Retail 2.2%
Semiconductors & Equipment 3.1%
Telecommunications 5.5%
Thrift Holding Company 2.6%
Transportation 4.1%
U.S. Government Agencies & Obligations 30.1%
Utilities 0.4%
------
100.0%
======
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Balanced Fund Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments at value (identified cost, $1,388,865) (Note 1)......... $1,486,911
Cash................................................................ 277,171
Receivables:
From Advisor....................................................... 3,401
Capital shares sold................................................ 852
Interest and dividends............................................. 540
Other assets........................................................ 2,719
----------
Total assets...................................................... 1,771,594
----------
LIABILITIES:
Payables:
Capital shares redeemed............................................ 3,263
Accounts payable................................................... 2,751
----------
Total liabilities................................................. 6,014
----------
Net Assets.......................................................... $1,765,580
==========
Shares outstanding.................................................. 158,544
==========
Net asset value, redemption price and offering price per share...... $ 11.14
==========
Net assets consist of:
Aggregate paid in capital.......................................... $1,626,122
Unrealized appreciation of investments and foreign currency........ 97,593
Undistributed net investment income................................ 40,982
Undistributed realized gains....................................... 883
----------
$1,765,580
==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Balanced Fund Financial Statements
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE
EIGHT MONTHS
ENDED
DECEMBER 31, FOR THE YEAR ENDED
1996 APRIL 30, 1996
------------------ --------------------
<S> <C> <C> <C> <C>
INCOME:
Dividends (less foreign taxes
withheld $309 and $125,
respectively)....................... $ 3,455 $ 787
Interest............................. 36,628 --
-------- ---------
40,083 787
EXPENSES:
Management (Note 2).................. $ 7,005 $1111,400
Administration (Note 2).............. 2,773 467
Professional......................... 5,932 13,583
Shareholder reporting................ 5,553 333
Amortization of organization costs
(Note 2)............................ 613 915
Custody.............................. 510 6,861
Registration......................... 152 --
Other................................ 797 --
-------- ---------
Total expenses....................... 23,335 23,559
Expenses assumed by the Advisor and
reduced by a custodian fee (23,335) (23,559)
arrangement (Note 2)................ -------- ---------
Net Expense.......................... -- --
-------- ---------
Net investment income................ 40,083 787
REALIZED AND UNREALIZED GAIN (LOSS)
OF INVESTMENTS (NOTE 3):
Realized gain from security
transactions........................ 883 --
Realized gain from currency
transactions........................ 924 --
Change in unrealized depreciation of
foreign denominated receivables and
payables............................ (453) --
Change in unrealized appreciation of
investments......................... 87,495 10,551
-------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS..................... $128,932 $ 11,338
======== =========
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Balanced Fund Financial Statements
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
EIGHT MONTHS PERIOD
ENDED YEAR DECEMBER 23,
DECEMBER 31, ENDED 1994+ TO
1996 APRIL 30, 1996 APRIL 30, 1995
------------ -------------- --------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income.............. $ 40,083 $ 787 $ --
Realized gain from security
transactions...................... 883 -- --
Realized gain from foreign currency
transactions...................... 924 -- --
Change in unrealized depreciation
of foreign currency receivables
and payables...................... (453) -- --
Change in unrealized appreciation
of investments.................... 87,495 10,551 --
---------- -------- --------
Increase in net assets resulting
from operations................... 128,932 11,338 --
---------- -------- --------
Dividends to shareholders from net
investment income................. (812) -- --
---------- -------- --------
CAPITAL SHARE TRANSACTIONS:*
Net proceeds from sale of shares... 1,647,934 653,649 20,864
Reinvestment of dividends.......... 812 -- --
---------- -------- --------
1,648,746 653,649 20,864
Cost of shares reacquired.......... (619,220) (71,259) (11,658)
---------- -------- --------
Increase in net assets resulting
from capital share transactions... 1,029,526 582,390 9,206
---------- -------- --------
Total increase in net assets...... 1,157,646 593,728 9,206
NET ASSETS:
Beginning of period................ 607,934 14,206 5,000
---------- -------- --------
End of period (including
undistributed net investment
income of $40,982, $787 and $0,
respectively)..................... $1,765,580 $607,934 $ 14,206
========== ======== ========
*SHARES OF BENEFICIAL INTEREST
OUTSTANDING ISSUED AND REDEEMED
(WITH AN UNLIMITED NUMBER OF $.001
PER VALUE SHARES AUTHORIZED)
Shares sold........................ 157,450 64,737 2,086
Dividend reinvestment.............. 79 -- --
---------- -------- --------
157,529 64,737 2,086
Shares reacquired.................. (58,046) (7,097) (1,165)
---------- -------- --------
Net increase....................... 99,483 57,640 921
========== ======== ========
</TABLE>
+ Commencement of operations.
See Notes to Financial Statements.
<PAGE>
Worldwide Balanced Fund Financial Statements
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE FOR THE
EIGHT MONTHS PERIOD FROM
ENDED DECEMBER 23, 1994+
DECEMBER 31, YEAR ENDED TO
1996 APRIL 30, 1996 APRIL 30, 1995
------------ -------------- ------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of $ 10.29 $ 10.00 $ 10.00
Period......................... ------- ------- -------
Income From Investment
Operations:
Net Investment Income.......... 0.25 0.04++ 0.00
Net Gains on Securities (both 0.61 0.25 0.00
realized and unrealized)...... ------- ------- -------
Total From Investment 0.86 0.29 0.00
Operations..................... ------- ------- -------
Less: Distributions from Net (0.01) -- --
Investment Income.............. ------- ------- -------
Net Asset Value, End of Period.. $ 11.14 $ 10.29 $ 10.00
======= ======= =======
Total Return (a)................ 8.38% 2.90% 0.00%
- ---------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000). $ 1,766 $ 608 $ 14
Ratio of Gross Expenses to
Average Net Assets............. 2.49%(b) 12.61% 78.40(b)
Ratio of Net Expenses to Average
Net Assets (b)................. 0.00% 0.00% 0.00%
Ratio of Net Income to Average
Net Assets..................... 4.27%(b) 0.42% 0.00%(b)
Portfolio Turnover Rate......... 0.76% 0.00% 0.00%
Average Commission Rate Paid.... $0.0790 $0.0422
</TABLE>
- -------
+ Commencement of operations.
++ Based on average shares outstanding.
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends at
net asset value during the period and a redemption on the last day of the
period. Total returns for the periods of less than one year were not
annualized.
(b) Annualized.
See Notes to Financial Statements.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The Worldwide Balanced Fund fiscal year end changed from April 30
to December 31. The following is a summary of significant accounting policies
consistently followed by the Worldwide Balanced Fund series, a non-diversified
fund (the "Fund") of the Trust, in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles. The preparation of financial statements in conformity with
generally accepted accounting principles requires the use of management's
estimates, and the actual amounts could differ.
A. SECURITY VALUATION--Securities traded on national exchanges and traded in
the NASDAQ National Market System are valued at the last sales prices
reported at the close of business on the last business day of the year.
Over-the-counter securities not included in the NASDAQ National Market
System and listed securities for which no sale was reported are valued at
the mean of the bid and asked prices. Short-term obligations purchased with
more than sixty days remaining to maturity are valued at market. Short-term
obligations purchased with sixty days or less to maturity are valued at
cost which with accrued interest approximates value. Securities for which
quotations are not available are stated at fair value as determined by the
Board of Trustees.
B. FEDERAL INCOME TAXES--It is the Fund's policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. Therefore,
no federal income tax provision is required.
C. CURRENCY TRANSLATION--Assets and liabilities denominated in foreign
currencies and commitments under forward currency contracts are translated
into U.S. dollars at the mean of the quoted bid and asked prices of such
currencies on the last business day of the fiscal year. Purchases and sales
of investments are translated at the exchange rates prevailing when such
investments were acquired or sold. Income and expenses are translated at
the exchange rates prevailing when accrued. Recognized gains or losses on
security transactions attributable to foreign currency fluctuations are
recorded as net realized gains and losses on investments. The portion of
unrealized gains and losses on investments that result from fluctuations in
foreign currency exchange rates is not separately disclosed.
D. DIVIDENDS AND DISTRIBUTIONS--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign
currency transactions. The effect of these differences for the period ended
December 31, 1996 increased undistributed net investment income and
decreased undistributed realized gains by $924.
<PAGE>
Worldwide Balanced Fund
- -------------------------------------------------------------------------------
E. OTHER--Security transactions are accounted for on the date the securities
are purchased or sold. Interest income is accrued as earned.
F. DEFERRED ORGANIZATION COSTS--Deferred organization costs are being
amortized over a period of five years.
NOTE 2--Van Eck Associates Corporation (the "Advisor") earns fees for
investment management and advisory services. The fee is based on an annual
rate of .75 of 1% of average daily net assets. Van Eck Associates Corporation
also earns fees for accounting and administrative services. The fee is based
on an annual rate of .25 of 1% of the Fund's average daily net assets.
Fiduciary International, Inc., the sub-investment advisor, earns fees for
investment management. The fee is based on an annual rate of .50 of 1% of the
Fund's average daily net assets and is paid by the Advisor from the advisory
fees it receives from the Fund. The sub-investment advisor waived its fee for
the period ended December 31, 1996. Van Eck Associates Corporation agreed to
waive its management fees and administrative fees and assume all other
expenses for the period ended December 31, 1996. Certain of the officers and
trustees of the Trust are officers, directors or stockholders of Van Eck
Associates Corporation and Van Eck Securities Corporation or the parent
company of Fiduciary International, Inc.
The Fund has a fee arrangement, based on cash balances left on deposit with
the custodian, which reduces the Fund's operating expenses. For the period
ended December 31, 1996, the Fund's expenses were reduced by $510 under this
arrangement. The Fund could have invested the assets used in connection with
the custodian fee arrangement in an income producing asset if it had not
entered into such arrangements.
NOTE 3--Purchases and sales of securities other than short-term obligations
aggregated $1,253,522 and $3,294 for the period ended December 31, 1996. For
federal income tax purposes, the identified cost of investments owned at
December 31, 1996 was $1,388,865. As of December 31, 1996, net unrealized
appreciation for federal income tax purposes aggregated $98,046, of which
$109,456 related to appreciated securities and $11,410 related to depreciated
securities.
NOTE 4--The Fund may purchase securities on foreign exchanges. Securities of
foreign issuers involve special risks and consideration not typically
associated with investing in U.S. issuers. These risks include re-evaluation
of currencies, less reliable information about issuers, different securities
transactions clearance and settlement practices, and future adverse political
and economic developments. These risks are heightened for investments in
emerging market countries. Moreover, securities of many foreign issuers and
their markets may be less liquid and their prices more volatile than those of
comparable U.S. issuers.
NOTE 5--TRUSTEE DEFERRED COMPENSATION PLAN--The Trust established a Deferred
Compensation Plan (the "Plan") for trustees. Commencing January 1, 1996, the
Trustees can elect to defer receipt of their trustee fees until retirement,
disability or termination from the board. The Fund's contributions to the Plan
are limited to the amount of fees earned by the participating trustees. The
fees otherwise payable to the participating trustees are invested in shares of
the Van Eck Funds as directed by the trustees. The Plan has been approved by
the Internal Revenue Service.
As of December 31, 1996, the total value of the assets and corresponding
liability of the Fund's portion of the Plan is $47.
NOTE 6--An income dividend of $0.25 a share was paid on January 31, 1997 to
shareholders of record January 29, 1997, with the reinvestment date of January
31, 1997.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of Van Eck Worldwide Insurance Trust:
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of the Worldwide Balanced Fund (the "Fund") (one of
the series constituting the Van Eck Worldwide Insurance Trust) as of December
31, 1996, and the related statements of operations for the eight months then
ended and for the year ended April 30, 1996, for the statements of changes in
net assets and the financial highlights for the eight months then ended, for
the year ended April 30, 1996 and for the period from December 23, 1994
(commencement of operations) to April 30, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Worldwide Balanced Fund series of the Van Eck Worldwide Insurance Trust as of
December 31, 1996, the results of its operations for the eight months then
ended and for the year ended April 30, 1996, the changes in its net assets and
the financial highlights for the eight months then ended, for the year ended
April 30, 1996 and for the period from December 23, 1994 (commencement of
operations) to April 30, 1995, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 18, 1997
<PAGE>
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<PAGE>
VAN ECK WORLDWIDE
INSURANCE TRUST
- -----------------------
Worldwide Balanced Fund
Van Eck Worldwide Insurance Trust
- ----------------------------------
99 Park Avenue, New York, NY 10016
This report must be accompanied or preceded by a prospectus, which includes more
complete information, such as charges and expenses and the risks associated with
international investing, including currency fluctuations or controls,
expropriation, nationalization and confiscatory taxation. Please read the
prospectus carefully before investing.
FR1997-0203-0029
[LOGO] VAN ECK GLOBAL
December 31, 1996
VAN ECK
WORLDWIDE
INSURANCE TRUST
ANNUAL REPORT
Worldwide
Balanced Fund
JAPANESE EQUITIES (Yen) GERMAN BONDS (Yen) AUSTRALIAN EQUITIES (Yen) FRENCH
BONDS (Yen) GERMAN EQUITIES (Yen) US BONDS (Yen) SWEDISH EQUITIES (Yen) JAPANESE
BONDS (Yen) HONG KONG EQUITIES (Yen) UK BONDS (Yen) German equities (Yen) HONG
KONG BONDS (Yen) FRENCH EQUITIES (Yen) GERMAN EQUITIES (Yen) SWEDISH EQUITIES
(Yen) JAPANESE EQUITIES (Yen) FRENCH BONDS (Yen) HONG KONG EQUITIES (Yen) GERMAN
BONDS (Yen) US BONDS (Yen) DUTCH EQUITIES (Yen) UK EQUITIES (Yen) US BONDS (Yen)
AUSTRALIAN EQUITIES
[LOGO] VAN ECK GLOBAL
