<PAGE> 1
VAN ECK WORLDWIDE HARD ASSETS FUND
- --------------------------------------------------------------------------------
1997 SEMI-ANNUAL REPORT
Dear Fellow Shareholder:
During the first half of the year, shareholders voted to change the investment
strategies of the Fund from a focus on gold to a focus on hard assets -- a more
diversified natural resource and real estate fund. We believe this will result
in better long-term performance as well as reduced risk. In fact, this new
approach has already benefited shareholders as compared to the original strategy
since its implementation in May.
We have significantly changed the portfolio's sector emphasis as a result of
this new hard asset focus. Changes include: 1) a decline in the gold weighting
from 30% to 7%; 2) an increase in the real estate weighting from 8% to 16%; and
3) a decrease in the energy allocation from 39% of assets to less than 35%.
Finally, cash has been built up in the Fund in anticipation of a higher
allocation to real estate.
The Fund fell 0.3% during the first half of 1997. In comparison, most relevant
commodity price indices were down, such as the Goldman Sachs Commodity Index
(GSCI) and the Commodity Research Bureau (CRB) Index, which declined 9.1% and
2.3%, respectively. Financial assets were extremely strong with the S&P 500
rising 20.6% over the same time period. Real estate securities gained 5%.
REVIEW
The biggest surprise of the first half of the year was the strength of financial
asset performance relative to hard asset performance. At the beginning of the
year, our forecasts called for healthy global economic growth and strong demand
for commodities in an environment where inventories in many commodity sectors
were at historical lows. This has typically been a recipe for exceptional hard
asset performance. In contrast, financial assets appeared to be fully-valued
with peaking profit growth. We therefore expected hard assets to outperform
financial assets. However, so far this year, the opposite has held true. There
are two primary reasons: an excellent macroeconomic environment for financial
assets and supply concerns in regard to hard assets. Strong economic growth with
low inflation resulted in both rising earnings and multiples in the stock
market. The real growth rate of the U.S. economy, for example, rose 5.9% during
the first quarter of the year, yet inflation rates are near 25-year lows.
Meanwhile, new supplies in certain hard asset sectors put pressure on these
markets.
On the equity side, the Fund's winners included energy, paper and forest
products and industrial metals shares. The Fund's big winners in the energy
sector included Pacalta Resources, a Canadian exploration and production
company, which rose 100% during the first six months, and Windsor Energy, up 50%
during the first half of the year, both on successful drilling results. Among
forest products and paper stocks, profitable holdings included Fort Howard, up
over 80% due to an announced merger with James River, another tissue producer,
and Buckeye Cellulose, a specialty pulp producer, which gained 27%.
In the commodities markets, oversupply was the issue. Oil prices declined over
20% on renewed supplies from Iraq and record oil production. Gold prices
declined nearly 10% on fears of central bank sales adding supply to the market.
These fears were confirmed on July 3 when the Australian Central Bank announced
it had sold 167 tonnes of gold, or two-thirds of its gold reserves, in the first
half of the year. Finally, supply concerns had a positive effect on the copper
market where supply disruptions pushed prices 14% higher despite analyst
forecasts of price declines.
Real estate securities lagged in the first half of 1997. In terms of relative
performance, the U.S. under-performed -- the Wilshire, NAREIT and Morgan Stanley
REIT indices were up approximately 5% versus the broader market, which rose
almost 20%. While this is somewhat ironic in light of the strong recovery in
industry fundamentals in the U.S., it is not surprising given REITs' robust
returns in 1996 (up 35%), their historic seasonal outperformance in the second
half of the year and a crowded underwriting calendar. Property shares in Japan
performed in line with a recovering market there, which reflects improving
supply/demand relationships, especially in prime property. Most of the Southeast
Asian markets (Thailand, Philippines, Malaysia) declined sharply due to
<PAGE> 2
oversupply situations and central bank moves to prevent continued overinvestment
in the sector. Hong Kong, on the other hand, rallied up to the handover to China
on July 1. The primary risk to the Hong Kong property markets in the short term
is that the government may take action to slow the degree of property price
inflation that has occurred due to chronic supply/demand imbalances. The Fund's
current allocation to Asia property issues is very small.
THE OUTLOOK
We continue to expect positive returns for hard assets in the second half of the
year, driven by real estate and forest product and paper companies. Our
commodity price projections continue to be dominated by supply-side concerns
during the summer months with a pick-up in the fourth quarter of the year. On a
macroeconomic level, we believe the second half of the year will see moderately
rising global economic growth with flat to moderately rising interest rates here
in the U.S.
The Fund's current allocation is approximately 80% equity exposure and 20% cash
exposure. We anticipate investing this cash in the real estate and forest
product sectors.
With regard to forest products and paper, we believe the cycle is beginning to
turn positive after nearly two years of difficult market conditions. We see
initial signs of rising commodity prices (pulp, newsprint, linerboard) and
improving commodity fundamentals, such as falling inventories and lower future
supply increases. This environment is one where paper shares outperform. Our
biggest holdings in the sector include Mead, a producer of pulp, printing and
writing papers, and Abitibi-Consolidated, the largest newsprint producer in the
world.
Real estate securities should also perform well in the second half of the year.
We continue to see improving real estate fundamentals, a beneficial interest
rate environment and reasonably attractive relative valuations. Moreover, we
believe that portfolio managers' more defensive postures during the second half
of the year should lead to real estate outperformance as they increase their
real estate holdings. Our larger holdings in the sector include Boston
Properties, a leading office developer, and Patriot American Hospitality, a
dominant hotel owner.
We would like to thank you for your investment in the Worldwide Hard Assets
Fund. We look forward to helping you meet your investment objectives in the
future.
<TABLE>
<S> <C>
John C. van Eck
Chairman Derek S. van Eck
Portfolio Manager
July 24, 1997
</TABLE>
- ---------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/97
- ---------------------------------------------------------
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN
<S> <C> <C>
- -------------------------------------------------------
Life (since 9/1/89) 7.7%
- -------------------------------------------------------
5 year 13.8%
- -------------------------------------------------------
1 year 6.5%
- -------------------------------------------------------
</TABLE>
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. These returns do not take variable annuity/life fees and expenses
into account.
<PAGE> 3
VAN ECK WORLDWIDE HARD ASSETS FUND
- --------------------------------------------------------------------------------
TOP HOLDINGS AS OF JUNE 30, 1997*
BUCKEYE CELLULOSE CORP.
(U.S., 2.2%)
Buckeye Cellulose manufactures and markets specialty cellulose pulps worldwide.
The company manufactures both wood-based and cotton linter-based specialty
cellulose pulps. End-use markets for the company's products include food
casings, high performance auto filters, automobile tires, diapers and other
consumer products.
PATRIOT AMERICAN HOSPITALITY INC.
(U.S., 2.1%)
Patriot American Hospitality (PAH) is one of the fastest growing hotel REITs in
the U.S. The Dallas-based company focuses on acquiring, redeveloping and
repositioning hotels for long-term growth through a combination of improved
operating performance and appreciation in value.
TITANIUM METALS CORPORATION
(U.S., 1.9%)
Titanium Metals is an integrated producer of high quality titanium products for
aerospace, industrial and consumer applications. The company's products include
titanium sponge, titanium ingot and slab, mill products and castings. End-use
markets for titanium producers include commercial airplanes and golf clubs.
ROYAL DUTCH PETROLEUM COMPANY
(NETHERLANDS, 1.8%)
Royal Dutch Petroleum owns 60% of the Royal Dutch/Shell Group of companies.
These companies are involved in all phases of the petroleum industry from
exploration to final processing and delivery. Royal Dutch Petroleum has no
operations of its own, and virtually the whole of its income is derived from its
60% interest.
PACALTA RESOURCES LTD.
(CANADA, 1.7%)
Pacalta is an intermediate-sized Canadian exploration and production company.
The company's main producing properties are in Ecuador with additional
properties in Canada and Latin America. Pacalta's success exemplifies the
opportunities available as countries around the world allow increased activity
by foreign oil companies.
MEAD CORPORATION
(U.S., 1.7%)
Mead is a paper and forest products company based in Ohio. It produces paper,
pulp and paperboard, and manufactures and distributes school, office and
industrial supplies. Mead sells its products worldwide.
WINDSOR ENERGY CORPORATION
(CANADA, 1.7%)
Windsor Energy Corporation explores for, develops and produces oil and gas in
California, Louisiana, Utah and Saskatchewan. The company's principal property
is the Rincon Island property located off the coast of California.
BRITISH PETROLEUM COMPANY PLC
(UK, 1.6%)
British Petroleum explores for, produces, refines and retails petroleum products
and manufactures chemicals. The company produces and retails petroleum products
throughout the world and owns and operates approximately 18,000 gasoline
stations. British Petroleum's chemicals business's key products are acetic acid,
acrylonitrile and polyethylene.
WILLAMETTE INDUSTRIES, INC.
(U.S., 1.6%)
Willamette Industries is a forest products company whose products include
particleboard, plywood, corrugated containers, bleached pulp, office papers,
laminated beams and grocery bags. Willamette owns and controls almost two
million acres of timberland and operates plants and mills throughout the United
States.
GENERAL CHEMICAL GROUP, INC.
(U.S., 1.6%)
General Chemical manufactures and supplies inorganic chemicals. The company
produces soda ash and supplies calcium chloride, sodium and ammonia salts,
sulfites, nitrites, aluminum-based chemical products, printing plates and
refinery and chemical sulfuric acid regeneration services. General Chemical also
makes automotive engine parts.
* Portfolio is subject to change.
Note: Equities listed as percentage of total net assets.
<PAGE> 4
<TABLE>
<CAPTION>
SECTOR WEIGHTINGS*
JUNE 30, 1997
<S> <C>
Energy 34.6%
Precious Metals 7.4%
Industrial Metals 9.3%
Forest Products & Paper 10.2%
Real Estate 16.2%
Cash/Equiv. 20.6%
Other 1.7%
- -------------------------------------
</TABLE>
*As percentage of total nets assets.
<PAGE> 5
WORLDWIDE HARD ASSETS FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NO. OF SHARES
OR PRINCIPAL VALUE
AMOUNT SECURITIES (a) (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
AUSTRALIA: 4.52%
INDUSTRIAL METALS: 1.92%
63,300 CRA $ 1,077,060
1,700,000 Gullewa Gold NL 44,836
1,050,000 Pasminco Ltd. 2,128,402
------------
3,250,298
------------
ENERGY: 0.98%
664,900 Portman Mining Ltd. 1,653,417
------------
PRECIOUS METALS: 1.62%
840,000 Acacia Resources Ltd. 1,101,389
380,000 Delta Gold NL 632,831
120,000 Plutonic Resources Ltd. 374,364
130,000 Ranger Minerals NL 396,744
139,800 Resolute Samantha Ltd. 248,617
------------
2,753,945
------------
7,657,660
------------
CANADA: 18.81%
ENERGY: 10.19%
275,000 Abacan Resources Corp. 876,563
375,000 Black Sea Energy Ltd. 1,059,360
72,400 CE Franklyn Ltd. 372,344
65,900 Chieftain International Inc. 1,445,681
170,000 Interoil Corp. 1,955,000
237,500 Pacalta Resources Ltd. 2,881,550
CAD 375,000 Pacalta Resources Corp. 10.75%
6/15/04 381,563
80,000 Poco Petroleum Ltd. 819,963
95,000 Prudential Steel Ltd. 2,614,900
30,000 Renaissance Energy Ltd. 834,450
40,000 Talisman Energy Inc. 1,229,945
630,000 Windsor Energy Corp. 2,806,490
------------
17,277,809
------------
FOREST PRODUCTS: 2.47%
100,000 Abitibi-Price Inc. 1,785,520
125,000 Fletcher Challenge Canada Ltd. 2,082,503
20,000 St. Laurent Paperboard, Inc. 311,470
------------
4,179,493
------------
INDUSTRIAL METALS: 2.44%
233,000 Atna Resources Ltd. 590,707
118,700 Boliden Limited-(Installment
Receipt) 631,955
30,000 Cameco Corp. 1,124,552
110,000 Miramar Mining Corp. 398,392
1,467,600 International Uranium Corp. 1,381,971
------------
4,127,577
------------
PRECIOUS METALS: 2.83%
130,000 Antares Mining & Exploration
Corp. (Special Warrants
expiring 3/18/98) (h) 102,405
75,000 Barrick Gold Corp. 1,650,000
1,613,800 Brazilian Resources Inc.
(Special Warrant expiring
3/12/98) (b) $ 232,739
62,500 Canarc Resources Corp. 42,556
11,800 Euro-Nevada Mining Corp. 363,261
80,000 Minefinders Corp. Ltd. 178,480
400,000 Namibian Minerals Corp. 1,738,438
25,000 Pacific Rim Mining Corp.
(Special Warrant expiring
4/04/98) (b) 60,231
16,500 Queenstake Resources Ltd. 24,262
43,500 Rio Narcea Gold Mines Ltd. 130,763
300,000 Vista Gold Corp. 269,457
------------
4,792,592
------------
REAL ESTATE: 0.88%
70,000 TrizecHahn Corporation 1,496,250
------------
31,873,721
------------
GHANA: 0.34%
PRECIOUS METALS: 0.34%
50,000 Ashanti Goldfields Company Ltd.
(GDR) 584,375
------------
ITALY: 1.51%
ENERGY: 1.51%
45,000 Ente Nazionale Idrocaburi
S.p.A. (ADR) 2,559,375
------------
NETHERLANDS: 1.80%
ENERGY: 1.80%
56,000 Royal Dutch Petroleum Co.
(NY Registry Shares) 3,045,000
------------
RUSSIA: 0.96%
ENERGY: 0.96%
4,230 Ural Petroleum Corp.* 1,621,509
------------
SOUTH AFRICA: 0.60%
PRECIOUS METALS: 0.60%
135,000 Western Areas Gold Mining (ADR) 902,813
5,000 Western Deep Levels Ltd. 119,375
------------
1,022,188
------------
UNITED KINGDOM: 1.59%
ENERGY: 1.59%
36,000 British Petroleum PLC (ADR) 2,695,500
------------
UNITED STATES: 49.33%
INDUSTRIAL METALS: 4.96%
63,000 Alumax, Inc. 2,390,063
141,000 LTV Corp. 2,009,250
1,052,000 Noble Group Ltd. 820,560
100,500 Titanium Metals Corp. 3,178,313
------------
8,398,186
------------
CHEMICALS: 1.59%
100,500 General Chemical Group, Inc. 2,688,375
------------
ENERGY: 17.69%
12,600 Atwood Oceanics Inc. 844,200
50,000 BJ Services Co. 2,681,250
18,500 ENSCO International Inc. 975,875
45,000 Forest Oil Corp. 660,938
</TABLE>
See Notes to Financial Statements.
<PAGE> 6
WORLDWIDE HARD ASSETS FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NO. OF SHARES
OR PRINCIPAL VALUE
AMOUNT SECURITIES (a) (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
110,000 Input/Output Inc. $ 1,993,750
120,000 KCS Energy, Inc. 2,445,000
50,000 Key Energy Inc. 890,625
38,000 Mobil Corp. 2,655,250
33,300 Noble Affiliates, Inc. 1,288,294
51,000 Nuevo Energy Co. 2,091,000
15,000 Ocean Energy Inc. 693,750
53,809 Pride Petroleum Services Inc. 1,291,416
31,500 Santa Fe International Corp. 1,071,000
18,000 Schlumberger Ltd. 2,250,000
92,000 Snyder Oil Corp. 1,690,500
90,000 Stone Energy Corp. 2,463,750
72,200 Tosco Corp. 2,161,485
40,000 Triton Energy Ltd. 1,832,500
------------
29,980,583
------------
FOREST PRODUCTS & PAPER: 7.69%
109,700 Buckeye Cellulose Corp. 3,702,375
46,200 Fort Howard Corp. 2,338,875
45,600 Mead Corp. 2,838,600
34,600 Rayonier Inc. 1,455,363
38,500 Willamette Industries, Inc. 2,695,000
------------
13,030,213
------------
INSURANCE: 0.03%
3,000 Highlands Insurance Group 60,375
------------
PRECIOUS METALS: 1.97%
62,800 Getchell Gold Corp. 2,213,700
50,000 Meridian Gold Inc. 218,750
42,000 Stillwater Mining Co. 900,375
------------
3,332,825
------------
REAL ESTATE: 15.42%
25,000 Alexandria Real Estate Equities 548,438
20,000 Amerco 602,500
20,000 Arden Realty Group, Inc. 520,000
25,000 Bedford Property Investors,
Inc. 503,125
40,000 Boston Properties 1,100,000
50,000 Cali Realty Corp. 1,700,000
45,000 Capstar Hotel Co. 1,440,000
47,100 Carramerica Realty Corp. 1,354,125
30,000 Colonial Properties Trust 881,250
35,000 Equity Residential Properties
Trust 1,662,500
42,000 Excel Realty Trust Inc. 1,107,750
20,000 Great Lakes REIT Inc. 328,750
40,000 Highwoods Properties, Inc. 1,280,000
50,000 Interstate Hotels Co. 706,500
20,000 Kilroy Realty Corp. 505,000
25,000 Macerich Co. (The) 693,750
137,800 Patriot American Hospitality
Inc. 3,513,900
60,000 Prentiss Properties Trust $ 1,537,500
42,000 Public Storage Inc. 1,228,500
30,000 Security Capital Industrial
Trust 645,000
90,000 Servico 1,338,750
40,000 Starwood Lodging Trust 1,707,500
20,000 Urban Shopping Centers Inc. 637,500
35,000 Westfield America Inc. 590,623
------------
26,132,961
------------
83,623,518
------------
TOTAL STOCKS AND OTHER INVESTMENTS: 79.46%
(Cost $111,545,890) 134,682,846
------------
PRINCIPAL SHORT-TERM OBLIGATIONS:
AMOUNT
$13,500,000 U.S. Treasury Bills Due 7/03/97
Interest Yield 4.40% 13,496,700
17,500,000 U.S. Treasury Bill Due 7/24/97
Interest Yield 4.88% 7,476,617
3,801,000 General Electric Co.
Commercial Paper Due
7/01/97 Interest Yield 5.90% 3,801,000
------------
TOTAL SHORT-TERM OBLIGATIONS: 14.62%
(Amortized Cost: $24,774,317) 24,774,317
------------
TOTAL INVESTMENTS: 94.08% (Cost $136,320,207) 159,457,163
OTHER ASSETS LESS LIABILITIES: 5.92% 10,038,280
------------
NET ASSETS: 100.0% $169,495,443
===========
</TABLE>
- ---------------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Restricted security, See Note 6.
* Fair value as determined by the Board of Trustees.
Glossary:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
<TABLE>
<CAPTION>
SUMMARY OF SUMMARY OF
NET ASSETS % OF NET ASSETS % OF
BY INDUSTRY PORTFOLIO BY INDUSTRY PORTFOLIO
- ----------- --------- ----------- ---------
<S> <C> <C> <C>
Energy 34.6% Chemicals 1.6%
Real Estate 16.2% Insurance 0.1%
Forest Products & Paper 10.2% U.S. Treasury Bills 12.5%
Industrial Metals 9.3% Commercial Paper 2.2%
Precious Metals 7.4% Other Assets Less Liabilities 5.9%
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements.
<PAGE> 7
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
<TABLE>
<S> <C>
ASSETS:
Investments at value (identified cost, $136,320,207) (Note 1)................................................. $159,457,163
Cash........................................................................................................ 2,593,472
Receivables:
Securities sold............................................................................................. 10,067,808
Capital shares sold......................................................................................... 1,492,428
Dividends................................................................................................... 222,721
Other assets.................................................................................................. 49,538
------------
Total assets.................................................................................................. 173,883,130
------------
LIABILITIES:
Payables:
Securities purchased........................................................................................ 4,167,555
Capital shares repurchased.................................................................................. 136,101
Open forward currency contracts (Note 5).................................................................... 6,339
Accounts payable............................................................................................ 77,692
------------
Total liabilities....................................................................................... 4,387,687
------------
Net assets.................................................................................................... $169,495,443
===========
Shares outstanding............................................................................................ 10,636,591
===========
Net asset value, redemption price and offering price per share................................................ $15.94
===========
Net assets consist of:
Aggregate paid in capital................................................................................... $137,287,554
Unrealized appreciation of investments, forward currency contracts and foreign currency..................... 23,122,307
Undistributed net investment income......................................................................... 2,041,893
Undistributed realized gains................................................................................ 7,043,689
------------
$169,495,443
===========
</TABLE>
See Notes to Financial Statements
<PAGE> 8
WORLDWIDE HARD ASSETS FUND FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS EIGHT MONTHS
ENDED ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
------------------------ ------------------------
<S> <C> <C> <C> <C>
INCOME:
Dividends (less foreign taxes withheld of $75,117 and $166,829,
respectively).................................................... $1,137,045 $1,325,638
Interest........................................................... 254,063 168,892
---------- ----------
Total income................................................. 1,391,108 1,494,530
EXPENSES:
Management (Note 2)................................................ $ 833,234 $1,121,447
Administration (Note 2)............................................ 200 5,856
Custody............................................................ 47,801 129,568
Professional....................................................... 16,807 45,557
Reports to shareholders............................................ 8,202 22,233
Trustees fees and expenses......................................... 7,415 20,098
Registration....................................................... 3,267 3,000
Miscellaneous...................................................... 15,310 42,040
--------- ---------
Total Expenses............................................... 932,236 1,389,799
Expenses reduced by a directed brokerage arrangement (Note 2)...... (5,042) (7,290)
--------- ---------
Net expense.................................................. 927,194 1,382,509
---------- ----------
Net investment income........................................ 463,914 112,021
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3):
Realized gain from security transactions........................... 9,911,918 7,578,337
Realized loss from foreign currency transactions................... (785) (301)
Change in unrealized appreciation (depreciation) of foreign
currency receivables, payables and forward foreign currency
contracts........................................................ (7,006) (8,184)
Change in unrealized appreciation of investments................... (11,188,512) (7,051,157)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... $ (820,471) $ 630,716
=========== ===========
</TABLE>
See Notes to Financial Statements
<PAGE> 9
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS EIGHT MONTHS
ENDED ENDED
JUNE 30, 1997 DECEMBER 31, YEAR ENDED
(UNAUDITED) 1996 APRIL 30, 1996
------------- ------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.................................................. $ 463,914 $ 112,021 $ 1,122,903
Realized gain (loss) from security transactions........................ 9,911,918 7,578,337 3,080,740
Realized gain (loss) from foreign currency transactions................ (785) (301) (4,602)
Change in unrealized appreciation (depreciation) of foreign currency
receivables, payables, and forward currency contracts................ (7,006) (8,184) 899
Change in unrealized appreciation (depreciation) of investments........ (11,188,512) (7,051,157) 28,055,575
------------- ------------- --------------
Increase (Decrease) in net assets resulting from operations............ (820,471) 630,716 32,255,515
------------- ------------- --------------
Dividends to shareholders from:
Net investment income.................................................. (3,252,318) (1,668,458) (1,119,954)
Net realized gains..................................................... (4,406,366) (1,636,166) 0
------------- ------------- --------------
(7,658,684) (3,304,624) (1,119,954)
------------- ------------- --------------
(8,479,155) (2,673,908) 31,135,561
------------- ------------- --------------
CAPITAL SHARE TRANSACTIONS*:
Net proceeds from sales of shares...................................... 119,754,251 168,572,105 248,311,248
Reinvestment of dividends.............................................. 7,658,684 3,304,625 1,119,954
------------- ------------- --------------
127,412,935 171,876,730 249,431,202
Cost of shares reacquired.............................................. (116,855,695) (188,155,190) (221,516,726)
------------- ------------- --------------
Increase (decrease) in net assets resulting from capital share
transactions........................................................... 10,557,240 (16,278,460) 27,914,476
------------- ------------- --------------
Total increase (decrease) in net assets............................ 2,078,085 (18,952,368) 59,050,037
NET ASSETS:
Beginning of period...................................................... 167,417,358 186,369,726 127,319,689
------------- ------------- --------------
End of period (including undistributed net investment income of $34,126,
$1,632,405 and $492,408, respectively)................................. $ 169,495,443 $167,417,358 $ 186,369,726
============ ============ ============
*SHARES OF BENEFICIAL INTEREST ISSUED AND REDEEMED (WITH AN UNLIMITED
NUMBER OF $.001 PAR VALUE SHARES AUTHORIZED):
Shares sold............................................................ 7,506,555 10,473,085 16,491,600
Reinvestment of dividends.............................................. 481,073 194,390 84,822
------------- ------------- --------------
7,987,628 10,667,475 16,576,422
Shares reacquired...................................................... (7,363,937) (11,667,614) (15,001,769)
------------- ------------- --------------
Net increase (decrease)................................................ 623,691 (1,000,139) 1,574,653
============ ============ ============
</TABLE>
See Notes to Financial Statements
<PAGE> 10
WORLDWIDE HARD ASSETS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS EIGHT MONTHS
ENDED ENDED YEAR ENDED APRIL 30,
JUNE 30, 1997 DECEMBER 31, --------------------------------------------------------
(UNAUDITED) 1996 1996 1995 1994 1993 1992
-------------- ------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period.............................. $16.72 $16.92 $13.49 $13.11 $10.61 $8.25 $8.85
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income............... 0.05 0.02 0.12 0.08 0.07 0.01 0.04
Net Gains (Loss) on Securities (both
realized and unrealized).......... (0.10) 0.09 3.44 0.37 2.47 2.39 (0.53)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations...... (0.05) 0.11 3.56 0.45 2.54 2.40 (0.49)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income............................ (0.31) (0.16) (0.13) (0.07) (0.04) (0.04) (0.11)
Dividends from net realized gains... (0.42) (0.15) -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Total Distributions................... (0.73) (0.31) (0.13) (0.07) (0.04) (0.04) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period........ $15.94 $16.72 $16.92 $13.49 $13.11 $10.61 $8.25
======== ======== ======== ======== ======== ======== ========
Total Return (a)...................... (0.29)% 0.60% 26.66% 3.43% 23.96% 29.19% (5.62%)
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000)....... $169,495 $167,417 $186,370 $127,320 $81,248 $30,896 $9,836
Ratio of Gross Expenses to Average Net
Assets.............................. 1.12%* 1.24%* 1.08% -- -- -- --
Ratio of Net Expenses to Average Net
Assets.............................. 1.11%* 1.23%* 1.08%(b) 0.96% 0.96% 1.61% 1.32%
Ratio of Net Income to Average Net
Assets.............................. 0.56%* 0.10%* 0.81% 0.71% 0.64% 0.25% 0.60%
Portfolio Turnover Rate............... 39.58% 46.14% 26.37% 23.30% 15.84% 14.61% 0.48%
Average Commission Rate Paid (c)...... $0.0321 $0.0305 $0.0310
</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 at
net asset value during the period and a redemption on the last day of the
period. Total returns for the periods less than one year were not
annualized.
(b) The ratio was not impacted by the directed brokerage arrangement.
(c) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades in
which a commission is charged.
* Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 fund's name changed from the Gold and Natural Resources Fund on
May 1, 1997. The following is a summary of significant accounting policies
consistently followed by the Worldwide Hard Assets Fund series, a 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 period. 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. 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 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. 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
<PAGE> 11
WORLDWIDE HARD ASSETS FUND
- --------------------------------------------------------------------------------
income tax regulations which may differ from generally accepted accounting
principles.
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 $833,434 for the six
months ended June 30, 1997 for investment management and advisory services. This
fee, which includes the fee paid to the Advisor for accounting and
administrative services, is based on an annual rate of 1% of 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. 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 directs certain portfolio trades to a broker that, in turn, pays a
portion of the Fund's operating expenses. For the six months ended June 30,
1997, the Fund's expenses were reduced by $5,042 under this arrangement. The
Fund could have invested the assets used in connection with the directed
brokerage arrangement in an income producing asset if it had not entered into
such an arrangement.
NOTE 3--Purchases and sales of securities other than short-term obligations
aggregated $61,976,344 and $85,354,777, respectively, for the six months ended
June 30, 1997. For federal income tax purposes, the identified cost of
investments owned at June 30, 1997 was $136,320,207. As of June 30, 1997, net
unrealized appreciation for federal income tax purposes aggregated $23,136,956,
of which $29,288,824, related to appreciated securities and $6,151,868 related
to depreciated securities.
NOTE 4--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. In addition, some
foreign companies are not generally subject to the same uniform accounting,
auditing and financial reporting rules as are American companies and there may
be less government supervision and regulation. Foreign investments may also be
subject to foreign taxes, dividend collection fees and settlement delays.
The Fund has investments in South African securities. South African securities
may be subject to greater political, social and economic risks than investments
in more developed foreign markets. Emerging market countries, such as South
Africa, may present the risk of nationalization of businesses, or prohibitions
of repatriation of assets, and may have less protection of property rights than
more developed countries.
The Fund may concentrate its investments in companies which are significantly
engaged in the exploration, development, production and distribution of gold and
other natural resources such as strategic and other metals, minerals, forest
products, oil, natural gas and coal and by investing in gold bullion and coins.
Since the Fund may so concentrate, it may be subject to greater risks and market
fluctuations than other more diversified portfolios. The production and
marketing of gold and other natural resources may be affected by actions and
changes in governments. In addition, gold and natural resources may be cyclical
in nature.
NOTE 5--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 gain from foreign currency transactions.
At June 30, 1997, the Fund had the following outstanding forward foreign
currency contracts:
<TABLE>
<CAPTION>
VALUE AT UNREALIZED
SETTLEMENT CURRENT APPRECIATION
CONTRACT DATE VALUE (DEPRECIATION)
------------------------------------------------------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY SALES
CONTRACT:
AUD 2,094,078 expiring
7/02/97-7/03/99 $1,570,994 $1,577,992 $ (6,998)
ZAL 550,000 expiring
7/1/97 121,951 121,292 659
-------
$ (6,339)
=============
</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 6--RESTRICTED SECURITIES
The following securities are restricted as to sale:
<TABLE>
<CAPTION>
PERCENT OF
DATE NET ASSETS AT
ACQUIRED COST VALUE 6/30/97
------------------------------------------------------------
<C> <S> <C> <C> <C>
3/18/97 Antares Mining & $318,185 102,405 0.06%
Exploration Corp.
(Special Warrants
expiring 3/18/98)
3/12/97 Brazilian 508,750 232,739 0.14%
Resources, Inc.
(Special Warrant
expiring 3/12/98)
4/04/97 Pacific Rim Mining 114,745 60,231 0.04%
Corp. (Special
Warrants expiring
4/04/98)
6/20/96 Canarc Resources -- -- --
Corp.
(Warrants expiring
6/20/98)
4/25/96 Vista Gold Corp. -- -- --
(Warrants expiring
10/31/97)
</TABLE>
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 June 30, 1997, the total value of the assets and corresponding liability
of the Fund's portion of the Plan is $21,634.
<PAGE> 12
VAN ECK WORLDWIDE June 30, 1997
INSURANCE TRUST
-------------------------
VAN ECK
WORLDWIDE HARD WORLDWIDE
ASSETS FUND INSURANCE TRUST
SEMI-ANNUAL REPORT
WORLDWIDE
HARD ASSETS 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.
FR1997-0729-0105
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