<PAGE>
Van Eck Worldwide Bond Fund
--------------------------------------
1996 Annual Report
Dear Shareholder:
Compared to the strong returns recorded in 1995, most major bond markets
registered modest gains last year, which were reduced in dollar terms due to
strength of the U.S. currency. Several "peripheral," higher risk European
markets fared well, but a rise in U.S. interest rates due to stronger-than-
expected economic growth dampened the performance of domestic bonds. In this
environment, the Worldwide Bond Fund had a total return of 2.5%* for the
calendar year ended December 31, 1996.
BOND MARKET REVIEW
During the first month of the year, bonds in most major markets were in a
relatively narrow trading range. Then, in February, U.S. interest rates
increased sharply due to a surprisingly strong January employment report. The
rise in U.S. rates and subsequent downturn in the U.S. bond market sparked a
sell-off in many major international markets during the first quarter. The
trend toward higher rates continued into the second quarter, aided by higher-
than-expected oil prices. By June 12, the yield on the 30-year U.S. Treasury
bond hit 7.19% (its high for 1996) after being as low as 5.95% on the second
trading day of the year, January 3.
To protect shareholder capital during the rise in rates, we employed a
defensive investment posture. In February, we reduced the Fund's average
duration to as low as three years. We also decreased the Fund's exposure to
domestic bonds and, later in the first half of the year, added substantially to
our positions in Canada and the United Kingdom, both of which witnessed solid
performance (which, for the UK market, unlike most others, was augmented by a
strong pound). Our rationale hinged on developments likely to have positive
implications for these markets: Canada would benefit from solid economic
fundamentals and the government's commitment to eliminate the budget deficit by
the year 2000 and the UK market would benefit from an environment of low
inflation, a strong currency and improving consumer confidence.
Although the Federal Reserve did not raise short-term interest rates in 1996,
fears of a rate hike hung like a cloud over the U.S. and international bond
markets following the rise in long-term interest rates during the first half of
the year. Stronger-than-expected employment numbers in July and August added to
the concern, but the Federal Reserve maintained a neutral monetary policy as
other data showed inflation was still under control. (For example, in August,
the government reported that the unemployment rate plunged to 5.1%, its lowest
level in seven years.) The end result for a volatile U.S. bond market was a
lackluster return of 2.7% for the year. A substantial position in U.S. bonds,
although actively managed, had a net dampening effect on Fund performance.
Some of the Fund's best results came from its investments in peripheral
European bonds, such as those of Italy, Spain and Sweden. Sluggish economic
growth and low inflation led to lower interest rates in many countries on the
Continent. In turn, most European markets achieved moderately positive returns
in local currency terms. The European markets were further helped by increasing
optimism for economic union. Peripheral markets recorded the most impressive
gains. Yields in these markets converged toward those of the higher-quality,
core European markets due to a growing belief among investors that the
peripheral countries will meet the Maastricht criteria for European Monetary
Union (EMU). At year end, the Fund had approximately 15% of total investments
allocated to these peripheral bond markets.
Early in the year, we liquidated the Fund's relatively small position in
Japanese bonds (which registered positive performance of 5%+ in yen terms, but
<PAGE>
declined 6.5% in U.S. dollar terms) as the economy began to overheat. Later in
the year, we began purchasing Japanese bonds again based on signs of
continuing economic weakness, which leads to lower interest rates and higher
bond prices. However, given the extreme volatility in the Japanese market of
late, we intend to maintain a "wait-and-see" approach toward Japan before
committing new funds to this market.
CURRENCY REVIEW
In 1996, the U.S. dollar showed strength against most of the major currencies.
For example, the dollar was up 10.8% against the Japanese yen and 6.7% against
the German mark. The only major currencies in the G-7 to show consistent
strength against the dollar were the British pound and the Italian lira, which
advanced 10.5% and 4.5%, respectively, versus the greenback. The dollar's
relative strength against most major currencies dampened returns for U.S.
investors. The Fund's relatively high cash position on several occasions
throughout the year enabled us to limit losses due to currency fluctuations.
THE OUTLOOK
Looking ahead, our forecast for the global bond markets is encouraging. We
believe the slow growth, low inflation environment in Europe will continue to
bode well for bonds there and we intend to favor European issues. We expect
the U.S. bond market to remain somewhat volatile. While U.S. inflation still
appears to be under control, the general direction of the economy and long-
term interest rates is still uncertain. However, we also believe the worst of
the domestic bond market decline may be behind us.
We would like to thank you for your investment in the Worldwide Bond Fund. We
look forward to helping you meet your investment objectives in the future.
[PHOTOGRAPH [PHOTOGRAPH
APPEARS HERE] APPEARS HERE]
/s/ John C. van Eck /s/ Madis Senner
John C. van Eck Madis Senner
Chairman Portfolio Manager
January 23, 1997
*Average annual returns on the Fund for the 1-year and 5-year periods ending
12/31/96 and for the period from 9/1/89 (commencement of operations) through
12/31/96 were 2.5%, 3.9% and 6.7%, 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.
Van Eck Worldwide Bond Fund
vs. Salomon Bros. World Gov't Bond Index
[GRAPH]
Average Annual Total Return**
-----------------------------------
One Year Five Years Life
2.5% 3.9% 6.7%
Van Eck Worldwide
Date Bond Fund Salomon Bros. World Gov't Bond Index
- ---- ----------------- ------------------------------------
9/1/89 10000 10000
9/89 10000 10190
10/89 10010 10275
11/89 10010 10368
12/89 10070 10495
1/90 10120 10356
2/90 9930 10197
3/90 10050 10096
4/90 10100 10065
5/90 10199 10399
6/90 10465 10590
7/90 10721 10922
8/90 10844 10837
9/90 10875 10958
10/90 11079 11447
11/90 11203 11637
12/90 11203 11752
1/91 11549 12046
2/91 11580 12050
3/91 11129 11612
4/91 11350 11791
5/91 11432 11776
6/91 11185 11653
7/91 11443 11902
8/91 11701 12132
9/91 12324 12607
10/91 12464 12739
11/91 12559 12938
12/91 13263 13611
1/92 12867 13369
2/92 12812 13295
3/92 12658 13154
4/92 12702 13248
5/92 13194 13654
6/92 13568 14037
7/92 13837 14364
8/92 14095 14765
9/92 13475 14914
10/92 13054 14509
11/92 12458 14278
12/92 12566 14364
1/93 12578 14614
2/93 12723 14902
3/93 12771 15131
4/93 12783 15450
5/93 12806 15605
6/93 12908 15572
7/93 12755 15616
8/93 13276 16086
9/93 13365 16276
10/93 13466 16249
11/93 13284 16132
12/93 13545 16270
1/94 13832 16401
2/94 13467 16294
3/94 13076 16270
4/94 13102 16289
5/94 12909 16146
6/94 12922 16379
7/94 12987 16509
8/94 12974 16452
9/94 13170 16571
10/94 13458 16837
11/94 13380 16606
12/94 13367 16651
1/95 13485 17001
2/95 13917 17436
3/95 14846 18472
4/95 15003 18814
5/95 15275 19343
6/95 15316 19457
7/95 15330 19503
8/95 15205 18832
9/95 15385 19253
10/95 15482 19396
11/95 15539 19616
12/95 15680 19821
1/96 15539 19576
2/96 15412 19477
3/96 15285 19449
4/96 15314 19372
5/96 15250 19376
6/96 15352 19529
7/96 15569 19903
8/96 15540 19980
9/96 15612 20061
10/96 15960 20437
11/96 16221 20706
12/96 16076 20539
Past performance is not indicative of future results.
The graph shows month-end net asset values, however, the net asset value
fluctuates daily.
**Performance is net of Fund expenses only.
<PAGE>
Worldwide Bond Fund
Investment Portfolio December 31, 1996
<TABLE>
<CAPTION>
BONDS AND NOTES PRINCIPAL AMOUNT VALUE (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA: 5.2%
Australian Government Bond
6.75% due 11/15/06 AUD 8,000,000 $ 6,093,765
------------
CANADA: 2.6%
Canadian Government Bond
8.75% due 12/01/05 CAD 3,500,000 2,971,584
------------
GERMANY: 10.5%
Bundesrepublik Deutschland Bonds
7.50% due 11/11/04 DEM 9,000,000 6,521,934
7.375% due 1/03/05 3,000,000 2,158,306
6.25% due 1/04/24 5,750,000 3,533,955
------------
12,214,195
------------
ITALY: 5.7%
Italian Government Bonds
10.50% due 9/01/05 ITL 2,200,000,000 1,733,333
8.50% due 4/01/99 3,700,000,000 2,546,492
8.25% due 7/01/01 3,400,000,000 2,383,584
------------
6,663,409
------------
JAPAN: 7.8%
Japanese Government Bonds
4.60% due 3/20/03 YEN 650,000,000 6,400,729
3.00% due 9/20/05 300,000,000 2,665,416
------------
9,066,145
------------
SPAIN: 5.2%
Spanish Government Bonds
10.90% due 8/30/03 ESP 150,000,000 1,425,513
8.40% due 4/30/01 425,000,000 3,577,769
7.40% due 7/30/99 135,000,000 1,082,525
------------
6,085,807
------------
SWEDEN: 4.3%
Swedish Government Bonds
13.00% due 6/15/01 SEK 16,000,000 3,011,469
6.00% due 2/09/05 14,000,000 1,982,949
------------
4,994,418
------------
UNITED KINGDOM: 5.8%
Great Britain Government Bonds
7.50% due 12/07/06 GBP 2,000,000 3,422,859
7.00% due 11/06/01 2,000,000 3,388,609
------------
6,811,468
------------
UNITED STATES: 39.8%
U.S. Treasury Notes
8.75% due 8/15/20 USD 4,000,000 4,929,376
7.125% due 9/30/99* 6,700,000 6,887,392
6.75% due 8/15/26 2,000,000 2,015,312
6.50% due 8/15/05* 2,520,000 2,536,931
6.50% due 8/31/01 5,600,000 5,663,874
6.25% due 4/30/01 6,000,000 6,015,000
6.00% due 2/15/26 2,750,000 2,503,361
5.75% due 10/31/00* 4,650,000 4,589,694
5.50% due 11/15/98* 11,400,000 11,326,086
------------
46,467,026
------------
TOTAL BONDS AND NOTES: 86.9% (COST: $99,556,385) 101,367,817
------------
<CAPTION>
SHORT-TERM OBLIGATIONS
- ---------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES: 13.1%
American Express Commercial Paper
Interest Yield 6.64% due 1/02/97 USD 2,780,000 2,779,494
G.E. Capital Commercial Paper
Interest Yield 5.58% due 1/02//97 5,000,000 4,999,236
U.S. Treasury Bills
Interest Yield 4.63% due 1/09/97 7,500,000 7,492,417
------------
TOTAL SHORT-TERM OBLIGATIONS: 13.1% (COST: $15,271,147) 15,271,147
------------
TOTAL INVESTMENTS: 100% (COST $114,827,532) $116,638,964
============
</TABLE>
- -------
* These securities are segregated for forward currency contracts.
See Notes to Financial Statements.
<PAGE>
See Notes to Financial Statements.
Worldwide Bond Fund Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments at value (identified cost, $114,827,532)............. $116,638,964
Cash............................................................. 13,238
Receivables:
Interest........................................................ 2,134,290
Capital shares sold............................................. 28,441
Unrealized appreciation on forward currency contracts (Note 4).. 102,351
------------
Total assets................................................... 118,917,284
------------
LIABILITIES:
Payables:
Capital stock redeemed.......................................... 81,178
Unrealized depreciation on forward currency contracts (Note 4).. 89,817
Accounts payable................................................ 70,166
------------
Total liabilities.............................................. 241,161
------------
Net Assets....................................................... $118,676,123
============
Shares Outstanding............................................... 10,694,792
============
Net asset value, redemption price and offering price per share... $11.10
======
Net assets consist of:
Aggregate paid in capital....................................... $118,254,467
Unrealized appreciation of investments, forward contracts and
foreign currency............................................... 1,803,481
Undistributed net investment income............................. 3,513,748
Cumulative realized losses...................................... (4,895,573)
------------
$118,676,123
============
</TABLE>
<PAGE>
See Notes to Financial Statements.
Worldwide Bond Fund Financial Statements
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE
EIGHT MONTHS
ENDED FOR THE YEAR ENDED
DECEMBER 31, 1996 APRIL 30, 1996
--------------------- -----------------------
<S> <C> <C> <C> <C>
INTEREST INCOME (NOTE 1)....... $ 4,645,236 $ 6,952,798
EXPENSES:
Management (Note 2)............ $755,274 $ 985,741
Administrative (Note 2)........ 4,392 32,032
Reports to shareholders........ 30,248 24,467
Custody........................ 21,652 56,015
Trustees....................... 8,570 16,989
Professional fees.............. 35,898 45,260
Miscellaneous.................. 25,347 46,366
-------- ----------
Total expenses................ 881,381 1,206,870
Expenses reduced by a
custodian fee arrangement
(Note 2)..................... (5,756) (24,388)
-------- ----------
Net expenses.................. 875,625 1,182,482
----------- -----------
Net investment income......... 3,769,611 5,770,316
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTE
3):
Realized gain from future
contracts and options......... -- 3,705
Realized gain from security
transactions.................. 817,168 1,311,357
Realized gain (loss) from
foreign currency transactions. (1,674,843) 1,451,829
Change in unrealized
appreciation (depreciation) of
investments................... 2,881,675 (2,111,991)
Change in unrealized
appreciation of foreign
currency receivables and
payables...................... 12,454 59,383
Change in unrealized
depreciation of forward
currency contracts............ (384,523) (3,980,822)
Change in unrealized
appreciation of futures
contracts..................... -- 4,120
----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..... $ 5,421,542 $ 2,507,897
=========== ===========
</TABLE>
<PAGE>
See Notes to Financial Statements.
Worldwide Bond Fund Financial Statements
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
EIGHT MONTHS YEAR YEAR
ENDED ENDED ENDED
DECEMBER 31, APRIL 30, APRIL 30,
1996 1996 1995
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............... $ 3,769,611 $ 5,770,316 $ 5,334,326
Realized gain from futures contracts
and options........................ -- 3,705 100,699
Realized gain (loss) from security
transactions....................... 817,168 1,311,357 (1,882,784)
Realized gain (loss) from foreign
currency transactions.............. (1,674,843) 1,451,829 (846,176)
Change in unrealized appreciation
(depreciation) of investments...... 2,881,675 (2,111,991) 4,765,944
Change in unrealized appreciation
(depreciation) of foreign currency
receivables and payables........... 12,454 59,383 (103,343)
Change in unrealized appreciation
(depreciation) of forward currency
contracts.......................... (384,523) (3,980,822) 4,609,754
Change in unrealized appreciation
(depreciation) of futures
contracts.......................... -- 4,120 (370)
------------ ------------ ------------
Increase in net assets resulting
from operations.................... 5,421,542 2,507,897 11,978,050
------------ ------------ ------------
Dividends to shareholders from net
investment income.................. (3,020,905) (8,098,367) (342,078)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS*:
Net proceeds from sales of shares... 26,077,547 56,024,013 45,886,052
Reinvestment of dividends........... 3,020,905 8,098,367 342,078
------------ ------------ ------------
29,098,452 64,122,380 46,228,130
Cost of shares reacquired........... (20,363,640) (64,457,152) (25,306,443)
------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital share
transactions....................... 8,734,812 (334,772) 20,921,687
------------ ------------ ------------
Total increase (decrease) in net
assets............................. 11,135,449 (5,925,242) 32,557,659
NET ASSETS:
Beginning of period................. 107,540,674 113,465,916 80,908,257
------------ ------------ ------------
End of period (including
undistributed net investment income
of $3,513,748,
$2,970,039 and $1,667,825,
respectively)...................... $118,676,123 $107,540,674 $113,465,916
============ ============ ============
*SHARES OF BENEFICIAL INTEREST ISSUED
AND REDEEMED
(UNLIMITED NUMBER OF $.001 PAR VALUE
SHARES AUTHORIZED)
Shares sold......................... 2,409,912 5,046,092 4,223,715
Reinvestment of dividends........... 286,885 731,260 34,484
------------ ------------ ------------
2,696,797 5,777,352 4,258,199
Shares reacquired................... (1,886,609) (5,794,591) (2,409,229)
------------ ------------ ------------
Net increase (decrease)............. 810,188 (17,239) 1,848,970
============ ============ ============
</TABLE>
<PAGE>
Worldwide Bond Fund Financial Statements
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE EIGHT MONTHS
ENDED YEAR ENDED APRIL 30,
DECEMBER 31, ---------------------------------------------
1996 1996 1995 1994 1993 1992
-------------------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.88 $11.46 $10.05 $10.62 $11.57 $10.82
-------- -------- -------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income.. 0.36 0.58 0.68* 0.63 0.81 0.62
Net Gains (Losses) on
Securities (both
realized and
unrealized)........... 0.17 (0.34) 0.77 (0.37) (0.75) 0.67
-------- -------- -------- ------- ------- -------
Total From Investment
Operations............. 0.53 0.24 1.45 0.26 0.06 1.29
-------- -------- -------- ------- ------- -------
Less Distributions:
Dividends from net
investment income..... (0.31) (0.82) (0.04) (0.72) (0.83) (0.53)
Distributions from
capital gains......... -- -- -- (0.11) (0.18) (0.01)
-------- -------- -------- ------- ------- -------
Total Distributions..... (0.31) (0.82) (0.04) (0.83) (1.01) (0.54)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of
Period................. $11.10 $10.88 $11.46 $10.05 $10.62 $11.57
======== ======== ======== ======= ======= =======
Total Return (a)........ 4.98% 2.07% 14.51% 2.49% 0.38% 12.21%
- ---------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY
DATA
Net Assets, End of
Period (000)........... $118,676 $107,541 $113,466 $80,908 $66,035 $40,930
Ratio of Gross Expenses
to Average Net Assets.. 1.17%(b) 1.10% 0.99%
Ratio of Net Expenses to
Average Net Assets..... 1.16%(b) 1.08% 0.98% 0.93% 1.01% 1.05%
Ratio of Net Income to
Average Net Assets..... 4.99%(b) 5.26% 6.24% 6.47% 8.47% 8.55%
Portfolio Turnover Rate. 73.95% 208.05% 265.87% 37.59% 248.21% 231.34%
</TABLE>
- -----------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distribution of capital gains at net asset value during the year and a
redemption on the last day of the period. Total returns for the periods
less than one year were not annualized.
(b) Annualized.
* Based on average shares outstanding.
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 Bond 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 Bond Fund, a non-diversified series,
(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. Futures are valued
using the closing price reported at the close of the Chicago Board of
Trade. Forward currency contracts are valued at the spot currency rate plus
an amount ("points") which reflects the differences in interest rates
between the U.S. and the foreign markets. 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 period. 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. The portion of realized and
unrealized gains and losses on investments that result from fluctuations in
foreign currency exchange rates is not separately disclosed. Recognized
gains or
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
losses attributable to foreign currency fluctuations on foreign currency
denominated assets and liabilities are recorded as net realized gains and
losses from foreign currency transactions.
D. DIVIDEND 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 decreased accumulated realized losses by $204,997 and
decreased undistributed net investment income by $204,997.
E. OTHER--Security transactions are accounted for on the date the securities
are purchased or sold. Interest income is accrued as earned.
NOTE 2--Van Eck Associates Corporation earned fees of $755,274 for the eight
months ended December 31, 1996 for investment management and advisory
services. The fee is based on an annual rate of 1% on the first $500 million
of average daily net assets, .90 of 1% on the next $250 million and .70 of 1%
on the excess over $750 million. In accordance with the advisory agreement,
the Fund reimbursed Van Eck Associates Corporation $4,392 for costs incurred
in connection with certain administrative and accounting functions. Certain of
the officers and trustees of the Trust are officers, directors or stockholders
of Van Eck Associates Corporation and Van Eck Securities Corporation.
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 year ended
December 31, 1996, the Fund's expenses were reduced by $5,756 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 an arrangement.
NOTE 3--Purchases and proceeds from sales of securities, other than short-term
obligations, aggregated $85,845,056 and $67,598,131, respectively, for the
eight months ended December 31, 1996. For federal income tax purposes, the
identified cost of investments owned at December 31, 1996 was $114,827,532. As
of December 31, 1996, net unrealized appreciation for federal income tax
purposes aggregated $1,811,432, of which $2,554,596 related to appreciated
securities and $743,164 related to depreciated securities. At December 31,
1996, the Fund had a capital loss carry forward of $4,039,373 available to
offset future capital gains expiring December 31, 2003 and 2004 in the amounts
of $1,233,872 and $2,805,501.
NOTE 4--FORWARD CURRENCY CONTRACTS--The Fund may buy and sell forward currency
contracts to settle purchases and sales of foreign denominated securities. In
addition, the Fund may enter into forward currency contracts to hedge foreign
denominated assets. Realized gains and losses from forward currency contracts
are included in realized loss from foreign currency transactions. At December
31, 1996, the Fund had the following outstanding forward currency contracts:
<TABLE>
<CAPTION>
UNREALIZED
VALUE AT APPRECIATION
CONTRACTS SETTLEMENT DATE CURRENT VALUE (DEPRECIATION)
- ------------------- --------------- ------------- --------------
<S> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS:
GBP 1,300,000
expiring 3/19/97 $2,162,810 $2,222,051 $ 59,241
JPY 436,067,319
expiring 3/19/97 3,879,602 3,799,886 (79,716)
FOREIGN CURRENCY SALE CONTRACTS:
AUD 4,852,838
expiring 3/19/97 3,853,153 3,854,026 (873)
DEM 1,576,888
expiring 3/19/97 1,019,320 1,028,548 (9,228)
JPY 251,022,000
expiring 3/19/97 2,230,513 2,187,403 43,110
--------
$ 12,534
========
</TABLE>
The Fund may incur additional risk from investments in forward currency
contracts if the counterparty is unable to fulfill its obligation or there are
unanticipated movements of the foreign currency relative to the U.S. dollar.
NOTE 5--OPTION CONTRACTS--The Fund may invest, for hedging and other purposes,
in call and put options on securities, currencies and commodities. Call and
put options give the Fund the right but not the obligation to buy (calls) or
sell (puts) the instrument underlying the option at a specified price. The
premium paid on the option, should it be exercised, will, on a call, increase
the cost of the instrument acquired and, on a put, reduce the proceeds
received from the sale of the instrument underlying the option. If the options
are not exercised, the premium paid will be recorded as a capital loss upon
expiration. The Fund may incur additional risk to the extent the value of the
underlying instrument does not correlate with the movement of the option
value.
The Fund may also write call or put options. As the writer of an option, the
Fund receives a premium. The Fund keeps the premium whether or not the option
is exercised. The premium will be recorded, upon expiration of the option, as
a short-term capital gain. If the option is exercised, the Fund must sell, in
the case of a written call, or buy, in the case of a written put, the
underlying instrument at the exercise price. The Fund may write only covered
puts and calls. A covered call option is an option in which the Fund owns the
instrument underlying the call. A covered call sold by the Fund exposes it
during the term of the option to possible loss of opportunity to realize
appreciation in the market price of the underlying instrument or to possible
continued holding of an underlying instrument which might otherwise have been
sold to protect against a decline in the market price of the underlying
instrument. A covered put exposes the Fund during the term of the option to a
decline in price of the underlying instrument. A put option sold by the Fund
is covered when, among other things, cash or short-term liquid securities are
placed in a segregated account to
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
fulfill the obligations undertaken. The Fund may incur additional risk from
investments in written currency options if there are unanticipated movements
in the underlying currencies.
NOTE 6--The Fund invests in foreign securities. Investments in foreign
securities may involve a greater degree of risk than investments in domestic
securities due to political, economic or social instability. Foreign
investments may also be subject to foreign taxes and settlement delays. Since
the Fund may have significant investments in foreign debt securities it may be
subject to greater credit and interest risks and greater currency fluctuations
than portfolios with significant investments in domestic debt securities.
NOTE 7--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 $10,012.
NOTE 8--An income dividend of $0.36 a share was paid on January 31, 1997 to
shareholders of record date January 29, 1997 with a 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 Bond Fund (the "Fund") (one of the
series constituting the Van Eck Worldwide Insurance Trust) as of December 31,
1996, the related statements of operations for the eight months then ended and
for the year ended April 30, 1996, the statements of changes in net assets for
the eight months then ended and for each of the two years in the period ended
April 30, 1996, and the financial highlights for the eight months then ended
and for each of the five years in the period ended April 30, 1996. 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. 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 Bond 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 for
the eight months then ended and for each of the two years in the period ended
April 30, 1996, and the financial highlights for the eight months then ended
and for each of the five years in the period then ended, 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 Bond 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.
FR1997-0129-0048
[LOGO] VAN ECK GLOBAL
December 31, 1996
VAN ECK
WORLDWIDE
INSURANCE TRUST
ANNUAL REPORT
Worldwide
Bond Fund
FRENCH GOVERNMENT BONDS (Yen) US BONDS (Yen) JAPANESE BONDS (Yen) SWEDISH BONDS
(Yen) GERMAN GOVERNMENT BONDS (Yen) CANADIAN GOVERNMENT BONDS (Yen) ECU BONDS
(Yen) UK BONDS (Yen) SWISS BONDS (Yen) ECU BONDS (Yen) UK BONDS (Yen) FRENCH
GOVERNMENT BONDS (Yen) JAPANESE BONDS (Yen) AUSTRALIAN GOVERNMENT BONDS (Yen)
ECU BONDS (Yen) FRENCH GOVERNMENT BONDS (Yen) US BONDS (Yen) SWEDISH BONDS (Yen)
UK BONDS (Yen) GERMAN GOVERNMENT BONDS (Yen) SWISS BONDS (Yen) ECU BONDS
[LOGO] VAN ECK GLOBAL
