<PAGE>
Van Eck Worldwide Bond Fund
--------------------------------------
1997 Semi-Annual Report
Dear Fellow Shareholder:
Global bond markets achieved good performance in local currency terms during
the first half of the year as inflation and short-term interest rates in most
parts of the world remained low. Continued strength of the U.S. dollar,
however, pushed many foreign bond market returns into negative territory for
U.S. investors. The Worldwide Bond Fund had a total return of -0.9% for the six
months ended June 30, 1997.
BOND MARKET REVIEW
The major factors influencing the global fixed income markets in the first half
of the year have been the continued benign inflation backdrop, which has
allowed central banks to tolerate periods of economic growth without generally
raising interest rates, and the continuing march toward European Monetary Union
(EMU).
The United States is in its seventh year of economic expansion and yet,
inflationary pressures remain benign--in fact, recent data show inflation to
have fallen to 2.5%, a new low for this cycle. Despite a Federal Reserve
increase in the federal funds target rate from 5.25% to 5.50% on March 25 due
to concerns over wage inflation (which later reports showed to be unfounded),
overall concerns over inflation and further rate hikes were at a minimum,
particularly in the second quarter. U.S. bonds ended the first half of the year
with returns of 2.6%. We maintained a fairly heavy position in dollar bloc
bonds throughout the period. In addition, we increased our position in
Australia and New Zealand as yields there were relatively high, economic growth
has been weak and the dollar continued to soar.
We had an underweight position in European bonds expecting European growth to
accelerate, although in local currency terms, many European bond markets fared
well as inflation and short-term rates there remained low. The core European
countries (France and Germany) have been discovering that meeting the
Maastricht criteria for EMU qualification is proving much more difficult than
expected as slow domestic demand has put upward pressure on fiscal deficits.
Given this uncertainty, the "peripheral" European bond markets outperformed as
their own positions in EMU seem to be becoming more secure. We maintained Fund
positions in Italy and Sweden (totaling about 9% of net assets) while taking
profits and liquidating most of the Spanish bond position in February as EMU
concerns threatened a period of volatility.
We substantially increased the portfolio's weighting to United Kingdom bonds
from about 5% of assets in the beginning of the year to almost 14% by June 30.
UK bonds were Europe's best performers over the past six months, largely due to
the fact that the newly-elected Labour administration granted the Bank of
England independence in setting interest rates (a move that is expected to help
keep inflation under control). The UK market was one of the few European bond
markets to maintain positive gains in dollar terms as the pound strengthened.
Economic growth in Japan picked up in the first quarter and we liquidated the
Fund's Japanese bond position in March. In the second quarter, Japanese bonds
did experience negative returns; however, strength of the yen converted those
results to positive numbers in dollar terms for unhedged portfolios.
CURRENCY REVIEW
The U.S. dollar has been in a cyclical upswing for almost two years and
continued to surge versus most major currencies, particularly in the first
quarter. This was largely due to differentials in growth and interest rates
between the U.S. and its trading partners. Our large U.S. currency position
<PAGE>
helped Fund performance somewhat, but the overwhelming strength of the dollar
versus most foreign currencies still led to lower returns overall. The Japanese
yen began to move higher in the second quarter and we added a yen position to
the portfolio, ranging from about 8%-15%. Meanwhile, the Deutschemark came
under pressure against the peripheral European currencies due to EMU
qualification issues that arose, putting its position as a "hard" currency in
question.
THE OUTLOOK
We are fairly optimistic on the outlook for global bonds given the low
inflation, low interest rate outlook for much of the world. We believe the
dollar bloc markets will continue to outperform most European markets as
economic growth picks up on the Continent and we are maintaining our heavy
dollar bloc weighting. Among the European markets, the peripheral markets
should again mildly outperform the core markets as EMU convergence continues.
In terms of currency, although fundamental analysis suggests that the dollar
should retreat versus the mark, EMU issues should keep levels between the two
currencies somewhat static. The yen should move slightly higher against the
dollar as the Japanese economy picks up further. We will continue to be
flexible in our positioning of Fund assets in order to take advantage of these
trends.
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.
/s/ John C. van Eck /s/ Madis Senner
John C. van Eck Madis Senner
Chairman Portfolio Manager
July 22, 1997
- --------------------------------------------------------------------------------
Performance Record as of 6/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN
- -------------------------
<S> <C>
Life (since 9/1/89) 6.1%
- -------------------------
5 year 3.3%
- -------------------------
1 year 3.8%
</TABLE>
- --------------------------------------------------------------------------------
These returns do not take variable annuity/life fees and expenses into account.
The performance data reflects 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.
<PAGE>
Worldwide Bond Fund
Statement of Net Assets June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
BONDS AND NOTES PRINCIPAL AMOUNT VALUE (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA: 5.6%
Australian Government Bond
10.00% due 10/15/07 AUD 6,700,000 $ 6,122,258
------------
CANADA: 8.0%
Canadian Government Bonds
8.00% due 6/01/27 CAD 5,000,000 4,133,914
7.25% due 6/01/07 6,000,000 4,633,936
------------
8,767,850
------------
FRANCE: 4.9%
BTNS 5.5% due 10/12/01* FRF 30,500,000 5,406,896
------------
GERMANY: 4.6%
Bundesrepublik Deutschland Bonds
7.375% due 1/03/05* DEM 3,000,000 1,926,501
6.00% due 1/04/07* 5,300,000 3,106,923
------------
5,033,424
------------
IRELAND: 2.0%
Irish Government Bond
8.00% due 8/18/06 IEP 1,350,000 2,244,097
------------
ITALY: 4.0%
Italian Government Bonds
9.00% due 11/01/23 ITL 325,000,000 2,227,712
7.50% due 10/01/99 3,600,000,000 2,181,061
------------
4,408,773
------------
NEW ZEALAND: 4.7%
New Zealand Government Bond
10.00% due 3/15/02 NZD 6,700,000 5,143,473
------------
SPAIN: 0.9%
Spanish Government Bond
7.40% due 7/30/99 ESP 135,000,000 956,899
------------
SWEDEN: 5.2%
Swedish Government Bonds
10.25% due 5/05/03 SEK 28,000,000 3,546,159
6.00% due 2/09/05 14,000,000 2,186,302
------------
5,732,461
------------
UNITED KINGDOM: 13.6%
Great Britain Government Bond
7.50% due 12/07/06 GBP 6,800,000 11,614,652
JP Morgan
7.75% due 12/30/03 2,000,000 3,370,862
------------
14,985,514
------------
UNITED STATES: 21.3%
U.S. Treasury Notes
8.75% due 8/15/20* USD 2,000,000 2,429,376
7.125% due 9/30/99* 6,700,000 6,840,285
6.50% due 8/15/05* 1,320,000 1,317,113
6.25% due 2/15/07* 1,500,000 1,467,657
5.50% due 11/15/98* 7,400,000 7,356,066
U.S. Treasury Bond
6.75% due 8/15/26* 4,000,000 3,958,752
------------
23,369,249
------------
TOTAL BONDS AND NOTES: 74.8% (COST: $82,075,204) 82,170,894
------------
<CAPTION>
SHORT-TERM OBLIGATIONS
- ---------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES: 23.7%
U.S. Treasury Bills
Interest Yield 4.63% due 7/24/97 USD 21,100,000 20,037,461
Interest Yield 5.10% due 8/21/97 6,000,000 5,956,650
------------
TOTAL SHORT-TERM OBLIGATIONS: 23.7% (AMORTIZED COST:
$25,994,111) 25,994,111
------------
TOTAL INVESTMENTS: 98.5% (COST $108,069,315) 108,165,005
OTHER ASSETS LESS LIABILITIES: 1.5% 1,604,834
------------
NET ASSETS: 100% $109,769,839
============
</TABLE>
- -------
* These securities are segregated for forward currency contracts.
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund Financial Statements (unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
<TABLE>
<S> <C>
ASSETS:
Investments at value (identified cost, $108,069,315) (Note 1).... $108,165,005
Receivables:
Interest........................................................ 1,724,869
Capital shares sold............................................. 207,486
------------
Total assets................................................... 110,097,360
------------
LIABILITIES:
Payables:
Unrealized depreciation on forward currency contracts (Note 4).. 245,470
Due to custodian................................................ 19,664
Capital stock redeemed.......................................... 1,320
Accounts payable................................................ 61,067
------------
Total liabilities.............................................. 327,521
------------
Net Assets....................................................... $109,769,839
============
Shares Outstanding............................................... 10,319,292
============
Net asset value, redemption price and offering price per share... $10.64
======
Net assets consist of:
Aggregate paid in capital....................................... $114,189,533
Unrealized depreciation of investments, forward contracts and
foreign currency............................................... (168,071)
Undistributed net investment income............................. 1,514,581
Cumulative realized losses...................................... (5,766,204)
------------
$109,769,839
============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund Financial Statements (unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED EIGHT MONTHS
JUNE 30, 1997 ENDED
(UNAUDITED) DECEMBER 31, 1996
-------------------- ---------------------
<S> <C> <C> <C> <C>
INTEREST INCOME (NOTE 1)......... $ 2,642,198 $ 4,645,236
EXPENSES:
Management (Note 2).............. $551,519 $755,274
Administrative (Note 2).......... 2,413 4,392
Reports to shareholders.......... 16,616 30,248
Custody.......................... 8,732 21,652
Professional fees................ 19,719 35,898
Trustees......................... 4,708 8,570
Miscellaneous.................... 14,841 25,347
-------- --------
Total expenses.................. 618,548 881,381
Expenses reduced by a custodian
fee arrangement (Note 2)....... -- (5,756)
-------- --------
Net expenses.................... 618,548 875,625
----------- -----------
Net investment income........... 2,023,650 3,769,611
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTE 3):
Realized gain from security
transactions.................... 66,258 817,168
Realized loss from foreign
currency transactions........... (1,209,857) (1,674,843)
Change in unrealized appreciation
(depreciation) of investments... (1,715,742) 2,881,675
Change in unrealized depreciation
of foreign currency receivables
and payables.................... 2,203 12,454
Change in unrealized depreciation
of forward currency contracts... (258,013) (384,523)
----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS...................... $(1,091,501) $ 5,421,542
=========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund Financial Statements (unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED EIGHT MONTHS YEAR
JUNE 30, ENDED ENDED
1997 DECEMBER 31, APRIL 30,
(UNAUDITED) 1996 1996
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............... $ 2,023,650 $ 3,769,611 $ 5,770,316
Realized gain from futures contracts
and options........................ -- -- 3,705
Realized gain from security
transactions....................... 66,258 817,168 1,311,357
Realized gain (loss) from foreign
currency transactions.............. (1,209,857) (1,674,843) 1,451,829
Change in unrealized appreciation
(depreciation) of investments...... (1,715,742) 2,881,675 (2,111,991)
Change in unrealized appreciation
(depreciation) of foreign currency
receivables and payables........... 2,203 12,454 59,383
Change in unrealized appreciation
(depreciation) of forward currency
contracts.......................... (258,013) (384,523) (3,980,822)
Change in unrealized appreciation
(depreciation) of futures
contracts.......................... -- -- 4,120
------------ ------------ ------------
Increase (decrease) in net assets
resulting from operations.......... (1,091,501) 5,421,542 2,507,897
------------ ------------ ------------
Dividends to shareholders from net
investment income.................. (3,749,849) (3,020,905) (8,098,367)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS*:
Net proceeds from sales of shares... 8,922,796 26,077,547 56,024,013
Reinvestment of dividends........... 3,749,849 3,020,905 8,098,367
------------ ------------ ------------
12,672,645 29,098,452 64,122,380
Cost of shares reacquired........... (16,737,579) (20,363,640) (64,457,152)
------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital share
transactions....................... (4,064,934) 8,734,812 (334,772)
------------ ------------ ------------
Total increase (decrease) in net
assets............................. (8,906,284) 11,135,449 (5,925,242)
NET ASSETS:
Beginning of period................. 118,676,123 107,540,674 113,465,916
------------ ------------ ------------
End of period (including
undistributed net investment income
of $1,514,581,
$3,513,748 and $2,970,039,
respectively)...................... $109,769,839 $118,676,123 $107,540,674
============ ============ ============
*SHARES OF BENEFICIAL INTEREST ISSUED
AND REDEEMED
(UNLIMITED NUMBER OF $.001 PAR VALUE
SHARES AUTHORIZED)
Shares sold......................... 843,660 2,409,912 5,046,092
Reinvestment of dividends........... 355,099 286,885 731,260
------------ ------------ ------------
1,198,759 2,696,797 5,777,352
Shares reacquired................... (1,574,259) (1,886,609) (5,794,591)
------------ ------------ ------------
Net increase (decrease)............. (375,500) 810,188 (17,239)
============ ============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE 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.... $11.10 $10.88 $11.46 $10.05 $10.62 $11.57 $10.82
-------- -------- -------- -------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income.. 0.20 0.36 0.58 0.68* 0.63 0.81 0.62
Net Gains (Losses) on
Securities (both
realized and
unrealized)........... (0.30) 0.17 (0.34) 0.77 (0.37) (0.75) 0.67
-------- -------- -------- -------- ------- ------- -------
Total From Investment
Operations............. (0.10) 0.53 0.24 1.45 0.26 0.06 1.29
-------- -------- -------- -------- ------- ------- -------
Less Distributions:
Dividends from net
investment income..... (0.36) (0.31) (0.82) (0.04) (0.72) (0.83) (0.53)
Distributions from
capital gains......... -- -- -- -- (0.11) (0.18) (0.01)
-------- -------- -------- -------- ------- ------- -------
Total Distributions..... (0.36) (0.31) (0.82) (0.04) (0.83) (1.01) (0.54)
-------- -------- -------- -------- ------- ------- -------
Net Asset Value, End of
Period................. $10.64 $11.10 $10.88 $11.46 $10.05 $10.62 $11.57
======== ======== ======== ======== ======= ======= =======
Total Return (a)........ (0.88%) 4.98% 2.07% 14.51% 2.49% 0.38% 12.21%
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY
DATA
Net Assets, End of
Period (000)........... $109,770 $118,676 $107,541 $113,466 $80,908 $66,035 $40,930
Ratio of Gross Expenses
to Average Net Assets.. 1.12%(b) 1.17%(b) 1.10% 0.99%
Ratio of Net Expenses to
Average Net Assets..... 1.12%(b) 1.16%(b) 1.08% 0.98% 0.93% 1.01% 1.05%
Ratio of Net Income to
Average Net Assets..... 3.65%(b) 4.99%(b) 5.26% 6.24% 6.47% 8.47% 8.55%
Portfolio Turnover Rate. 107.50% 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 period 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 (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 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 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. 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 and unrealized
gains and losses on investments that result from fluctuations in foreign
currency exchange rates is not separately disclosed. Realized gains or
losses attributable
<PAGE>
Worldwide Bond Fund
- --------------------------------------------------------------------------------
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.
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 $551,519 for the six
months ended June 30, 1997 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 $2,413 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.
NOTE 3--Purchases and proceeds from sales of securities, other than short-term
obligations, aggregated $90,088,814 and $103,853,474, 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 $108,069,315. As of June 30,
1997, net unrealized appreciation for federal income tax purposes aggregated
$95,690, of which $1,763,628 related to appreciated securities and $1,667,938
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 June 30,
1997, 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:
DEM 22,144,005
expiring 9/17/97 $12,835,715 $12,769,707 $ (66,008)
ESP 409,217,973
expiring 9/17/97 2,792,534 2,779,091 (13,443)
JPY 1,807,795,154
expiring 9/17/97 16,028,693 15,962,617 (66,076)
FOREIGN CURRENCY SELL CONTRACTS:
AUD 4,500,000
expiring 9/17/97 3,394,080 3,352,950 (41,130)
CAN 5,870,130
expiring 9/17/97 4,273,133 4,253,718 (19,415)
FRF 15,468,850
expiring 9/17/97 2,645,942 2,665,389 19,447
GBP 3,350,000
expiring 9/17/97 5,563,852 5,467,435 (96,417)
IEP 1,530,000
expiring 9/17/97 2,316,624 2,314,890 (1,734)
NZD 7,400,000
expiring 9/17/97 5,022,822 5,083,800 60,978
SEK 26,500,000
expiring 9/17/97 3,445,445 3,423,773 (21,672)
---------
$(245,470)
=========
</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.
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
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 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 June 30, 1997, the total value of the assets and corresponding liability
of the Fund's portion of the Plan is $14,863.
<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.
FR1997-0724-0167
[LOGO] VAN ECK GLOBAL
June 30, 1997
VAN ECK
WORLDWIDE
INSURANCE TRUST
SEMI-ANNUAL REPORT
WORLDWIDE
BOND FUND
[LOGO] VAN ECK GLOBAL
FRENCH GOVERNMENT BONDS o US BONDS o JAPANESE BONDS o SWEDISH BONDS
o GERMAN GOVERNMENT BONDS o CANADIAN GOVERNMENT BONDS o ECU BONDS
o UK BONDS o SWISS BONDS o ECU BONDS o UK BONDS o FRENCH
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