<PAGE>
Van Eck Global
Worldwide Insurance Trust
SEMI-ANNUAL REPORT
June 30, 1998
discipline
Worldwide Emerging Markets Fund
allocation
diversity
A TRADITION OF GLOBAL SOLUTIONS DESIGNED FOR INTELLIGENT INVESTMENT PLANNING AND
DIVERSIFICATION
<PAGE>
VAN ECK WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
Dear Fellow Shareholder:
The emerging markets had a difficult time in the first six months of 1998 as
Asia's crisis deepened and spread to developing markets worldwide. In this
environment, the Van Eck Worldwide Emerging Markets Fund had a total return of
- -22.8% in the first half of the year, compared with a decline of 18.9% for the
Morgan Stanley Capital International Emerging Markets Free Index.
REVIEW
Asia's financial crisis, which began in the latter half of 1997, caused further
market declines in the first half of 1998. By the beginning of the year, most
of Asia's pegged currency regimes had been eliminated causing serious currency
devaluations. Hong Kong's currency board enabled it to defend its exchange rate
successfully, and the lack of convertibility of the Chinese renminbi prevented
speculators from forcing a devaluation there. However, in many of the Asian
countries the attempt to support the currencies early in the crisis depleted
central bank reserves, which dropped substantially below the levels of short-
term external debt. This forced countries such as Korea, Indonesia and Thailand
to borrow from the IMF and other multilateral sources to replenish central bank
reserves and shore up their battered banking systems. Japan's economic downturn
pushed out any hope for an early recovery for the rest of Asia. Appropriate
policy responses in Korea and Thailand were well received by the markets but
the prospect of recessions throughout Asia dominated investor sentiment.
However, Asian currencies are now undervalued by most measures, and the Fund
maintains some (albeit an underweighted) exposure to Asia (17% at June 30) in
order to take advantage of the eventual recovery in Asian economies. The Fund's
strategy of holding positions in companies that should survive and emerge
stronger as competition falls by the wayside should bear fruit in the medium
term. We are maintaining the portfolio's overweight positions in India and the
Philippines as economic growth there should remain positive in the near term as
well as in the medium term. We have begun adding positions in recovery plays in
Thailand, Korea and Hong Kong and plan to build these positions over the next
twelve months. These include positions in Thai Farmers and Bangkok Bank,
Thailand's largest and healthiest banks; JCG, a consumer finance company in
Hong Kong; Berjaya Sports Toto, a lottery operator in Malaysia; and Medison, an
ultrasound manufacturer in Korea.
The European, Middle Eastern and African markets, which comprise over 40% of
the Fund's assets, were mixed, impacted by declines in commodity-producing
countries, such as Russia and South Africa, in contrast to strong increases in
European convergence plays, such as Portugal and Greece.
The Fund is overweight Israel, Greece, Turkey and Hungary, as we expect
continued growth in Europe to benefit these peripheral economies. For this
reason, we are also adding to holdings in Poland. We reduced the portfolio's
position in Russia during the first quarter as it became clear that financing
Russia's budget deficit was problematic and the declining oil price was
exerting pressure on the ruble. Currently, the Fund maintains only a small (2%
of assets at June 30) position in Russian restructuring plays (Norilsk Nickel,
Lukoil and Unified Energy Systems), for although assets are very cheap,
macroeconomic pressures will not lift unless tax reform is implemented and oil
prices recover.
South African stocks gained in attractiveness early in the year as the prospect
of demutualization of the country's largest insurance companies promised to add
as much as 1.5% to gross domestic product in 1999. Consolidation in the banking
and insurance industries began to pick up steam as well. The Fund increased its
underweight position slightly during the second quarter, adding financial
services conglomerates FirstRand and Nedcor, but the market became vulnerable
to speculative attack given its very low level of international reserves and
the prospect of a new, untested Central Bank Governor. In the second quarter,
Greece, your Fund's largest European
<PAGE>
VAN ECK WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
allocation at 7% of assets, devalued its currency to get in line for eventual
entry into the European Union, sparking a strong gain in the market. Turkey's
fractious political parties made peace and agreed to begin the process of
economic reform. The market corrected strongly during the first quarter due to
rising tension on the Iraqi border and political fears, but then resumed its
upward momentum as inflation continued to decline. European convergence
continues to provide a powerful magnet that should pull Eastern and Southern
Europe along.
Latin America's exposure to weak commodity prices and upcoming elections led to
a 20% decline in the first half. The Fund's 29% weighting was appropriately
light but fundamentals are now improving in Brazil, Mexico and Argentina, where
signs of excess are nowhere in evidence. Third quarter weightings will reflect
this as we augment positions in these markets. The Mexican government has done
a good job of cutting fiscal spending in line with its reduced oil revenue, and
Brazil is proceeding with the privatization of its telephone, electric and
water utilities, in which the Fund is well represented.
THE OUTLOOK
Asia's recovery depends on lower interest rates, which in turn require stable
currencies. Currencies in Asia should stabilize as the Japanese economy begins
to recover, but a recovery in Japan will only start in earnest when Japan's
banks are cleaned up. This process requires profound political reform and will
take several years.
Nonetheless, many long-term positive factors remain in place. A year ago it
seemed obvious that in the 21st century, much U.S. company profit growth would
come from the developing countries, especially Asia, with one-half of the
world's population. This remains true. Multinationals cannot afford to lose
sight of this reality, as they will soon exhaust the benefits of cost cutting
and industry consolidation. In our opinion, fund investors should share this
long-term perspective.
In the meantime, however, developing markets require capital for their
development. When capital is abundant in the developed world or demand for
capital among developing countries is muted, it will be priced cheaply and
emerging market assets will rise in value. On the other hand, when capital in
the developed world is tight, or when competition for it among developing
markets is fierce, then emerging market assets will have to be priced cheaply
enough to wrench capital away from the home markets.
The cost of developed world capital has been high since 1994, when Alan
Greenspan hiked rates and European convergence started, and the emerging
markets have lagged. The repatriation of Japanese capital from Asia in 1997 and
early 1998 to bolster its weak banking system pushed up interest rates in Asia
and the rest of the emerging markets, and in many cases pushed their currencies
over the edge. Over the next year or two, Japan's recapitalization will
continue to exert upward pressure on global real interest rates, but this
should be offset eventually by an easing in the U.S. and Europe.
Thus, emerging markets must be priced very cheaply to lure capital from the
developed world and, in our opinion, they are. Offshore interest rates of
emerging market economies are yielding close to 700 basis points (7%) over U.S.
Treasuries, a very high level historically, and have scope to decline, which
would be good for equities. But already, according to some estimates, emerging
markets equities are trading at less than one-half the multiple of the S&P 500,
with better earnings growth. This level of valuation has already begun to
attract strategic buyers in Brazil, Thailand and Korea. Therefore, we believe
that over the medium term, returns from emerging markets are likely to compete
well with the U.S. long bond as well as with the richly-valued U.S. equity
market.
<PAGE>
VAN ECK WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
We appreciate your participation in the Worldwide Emerging Markets Fund and
look forward to helping you meet your investment goals in the future.
PHOTO PHOTO
/s/ John C. van Eck /s/ Gary Greenberg
John C. van Eck Gary Greenberg
Chairman Portfolio Manager
July 27, 1998
- --------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN
- -----------------------------------
<S> <C>
Since Inception (12/27/95) (6.0)%
- -----------------------------------
1 Year (44.4)%
- -----------------------------------
</TABLE>
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Performance data quoted
represents past performance and the investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. These returns do not take variable
annuity/life fees and expenses into account.
GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 1998
PIE CHART
Argentina 2.7%
Brazil 16.3%
Greece 6.8%
Hong Kong 2.7%
Hungary 3.6%
India 6.3%
Israel 12.0%
Malaysia 2.4%
Mexico 7.6%
Philippines 2.7%
Romania 2.8%
Russia 2.4%
South Africa 4.2%
Turkey 7.1%
Cash/Other 20.4%
<PAGE>
VAN ECK WORLDWIDE EMERGING MARKETS FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 1998
- --------------------------------------------------------------------------------
TELECOMUNICACOES BRASILEIRAS S.A. (TELEBRAS)
(BRAZIL, 3.5%)
Telebras is a holding company for the telecommunications sector in Brazil. The
company is comprised of 28 operating state telephone companies, including
Embratel, the long-distance telephone service provider. Telebras offers domes-
tic and international telephone and data transmission services throughout Bra-
zil.
OSHAP TECHNOLOGIES, LTD.
(ISRAEL, 2.9%)
Oshap Technologies identifies and invests in software developers. The company
controls Tecnomatix Technologies Ltd., a leader in computer and process
engineering, as well as Decalogue (asset management) and MINT (middleware).
ORBOTECH, LTD.
(ISRAEL, 2.6%)
Orbotech develops, designs and manufactures automated optical inspection
systems for inspecting and identifying defects in the production process of the
printed circuit board and liquid crystal display industries. The company also
produces computer-aided manufacturing systems and laserplotters.
HELLENIC BOTTLING COMPANY S.A.
(GREECE, 2.5%)
Hellenic Bottling produces, sells and distributes soft drinks. The company
produces all kinds of Coca-Cola brand name products such as Coke, Sprite and
Fanta. Hellenic Bottling also produces fruit juices and mineral water. The
company manufactures and distributes in Greece, Russia, Bulgaria, Armenia,
Ireland and Moldova.
NATIONAL BANK OF GREECE S.A.
(GREECE, 2.5%)
National Bank of Greece offers many types of banking and related financial
services. The company provides loans, leasing, mortgages, deposits, investing
and
insurance services to industrial, commercial and consumer clients. The bank
operates approximately 496 domestic branches and 13 overseas branches.
TELECOMUNICACOES DE SAO PAULO S.A. (TELESP)
(BRAZIL, 2.2%)
Telesp provides telecommunications services to the Brazilian state of Sao
Paulo. The company provides local and domestic telecommunications services and
voice and data transmission services.
FORMULA SYSTEMS (1985) LTD.
(ISRAEL, 2.1%)
Formula Systems, together with its subsidiaries and affiliates, principally
provides software consulting services and computer-based business solutions.
The company also develops proprietary software. Formula Systems markets its
products and services in 44 countries.
EFES SINAI YATIRIM HOLDING A.S.
(TURKEY, 2.1%)
Efes Sinai Yatirim bottles and markets Coca-Cola soft drinks. The company
operates bottling plants and sells its products in Kazakhstan, Azerbaijan, the
Kyrgyz Republic and southern Russia.
PETROBRAZI S.A.
(ROMANIA, 1.9%)
Petrobrazi is the largest refinery in Romania. Its refining assets are
currently being combined with exploration and production assets and service
stations to produce Romania's first fully integrated oil and gas company.
SARANTIS S.A.
(GREECE, 1.8%)
Sarantis is a wholesaler and retailer of perfume, beauty aids, personal
hygiene, sunscreen and baby care products. The company also produces its own
line of beauty aid products. Brand names include "Estee Lauder," "Clinique,"
"Aramis," "Nina Ricci," "Versace," "Montana" and "Boss."
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
VALUE
NO. OF SHARES SECURITIES (A) (NOTE 1)
- ----------------------------------------------------------------------------
<C> <S> <C>
ARGENTINA: 2.7%
103,702 Banco del Suquia S.A. $ 207,434
16,735 Banco del Suquia S.A.
(Negotiable Obligations) 11,158
31,695 Banco Frances del Rio de la Plata S.A. (ADR) 727,004
11,600 Iye de la Patagonia (Class B) 172,285
20,000 YPF S.A. (Sponsored ADR) 596,250
-----------
1,714,131
-----------
BRAZIL: 16.3%
28,160,642 Banco Bradesco S.A. Pfd. 235,707
15,000,000 Banco de Estado de Sao Paulo S.A. (Banesp) 697,795
1,500,000 Banco Itau S.A. Pfd. 849,546
28,146 Cemig S.A. (ADR) 871,174
26,000,000 CIA Eletricidade de Bahia (Coelba) 1,011,673
81,400,000 CIA Paranaense de Energia (Copel Pfd.) 754,525
22,428 CIA Paranaense de Energia (Copel) (ADR) 207,459
4,916,000 CIA Saneamento Basilo de Sao Paulo (Sabesp) 599,357
55,800 Petroleo Brasileiro S.A. Pfd. (Petrobras) 1,039,275
10,186 Telecomunicacoes de Sao Paulo S.A. Pfd. (Rights
expiring 7/08/98) (Telesp) 189
9,470,000 Telecomunicacoes de Sao Paulo S.A. (Telesp) 1,416,610
20,360 Telecomunicacoes Brasileiras S.A. (Telebras) 2,223,058
9,470,000 Telesp Celular S.A. 401,646
-----------
10,308,014
-----------
CHILE: 1.2%
53,000 Banco de A.Edwards (ADR) 751,938
-----------
EGYPT: 1.7%
31,800 Al-Ahram Beverages Co. (GDR) 1,011,240
300 Commercial International Bank 3,307
4,820 Eastern Tobacco Co. 86,446
-----------
1,100,993
-----------
GREECE: 6.8%
52,000 Hellenic Bottling Company S.A. 1,604,306
12,286 National Bank of Greece S.A. 1,572,243
56,100 Sarantis S.A. 1,136,988
-----------
4,313,537
-----------
</TABLE>
<TABLE>
<CAPTION>
NO. OF SHARES
OR PRINCIPAL VALUE
AMOUNT SECURITIES (A) (NOTE 1)
- -------------------------------------------------------------------------
<C> <S> <C>
HONG KONG: 2.7%
USD 980,000 Huaneng Power International Convertible Bond
1.75%, 5/21/04 $ 856,275
1,000,000 JCG Holdings Ltd. 277,527
155,000 New World Development Company Ltd. 300,116
400,000 Ye (Ng) Fung Hong Ltd. 276,236
-----------
1,710,154
-----------
HUNGARY: 3.6%
10,000 Euronet Services Inc. 43,750
10,800 Gedeon Richter Rt. (Sponsored GDR) 864,000
16,200 Magyar Tavkozlesi Rt. (Matav) (ADR) 476,888
33,400 MOL Magyar Olaj-es Gazipari Rt. (ADR) 900,130
-----------
2,284,768
-----------
INDIA: 6.3%
2,050 Asea Brown Boveri Ltd. 20,560
5 Associated Cement Cos. 144
32,500 Bajaj Auto Ltd. 438,443
10,000 Hindustan Lever Ltd. 356,014
50,700 Hoechst Marion Roussel Ltd. 473,519
43,300 ITC Ltd. 665,840
177,400 Mahanagar Telephone Nigam Ltd. 746,419
39,428 Ranbaxy Laboratories Ltd. 509,123
77,500 Satyam Computer Services Ltd. 758,550
300 Tata Engineering & Locomotive Co. 1,178
-----------
3,969,790
-----------
INDONESIA: 0.3%
2,117,500 PT Astra Intl. "F" 143,074
693,500 PT Ramayaha Lestari Sentosa "F" 53,887
-----------
196,961
-----------
ISRAEL: 12.0%
336,665 Bank Leumi Le-Israel 670,956
38,200 Formula Systems (1985) Ltd. 1,335,406
26,500 Nice Systems Ltd. (ADR) 993,750
45,600 Orbotech, Ltd. 1,658,700
277,150 Oshap Technologies, Ltd. 1,853,441
16,540 Teva Pharmaceuticals Industries Ltd. (ADR) 582,001
18,830 United Mizrahi Bank Ltd. 517,281
-----------
7,611,535
-----------
</TABLE>
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
VALUE
NO. OF SHARES SECURITIES (A) (NOTE 1)
- --------------------------------------------------------------------------------
<C> <S> <C>
MALAYSIA: 2.4%
498,000 Berjaya Sports Toto Berhad $ 740,679
376,000 Malakoff Berhad 695,623
100,750 Malaysia Assurance Alliance Berhad 87,715
-----------
1,524,017
-----------
MEXICO: 7.6%
33,727 Cifra S.A. (ADR) 493,929
150,000 Corp Internamericana Entretenimiento (Series B) 434,880
29,180 Fomento Economico Mexicano, S.A. de C.V. (Series B) 911,062
25,400 Grupo Financiero Bancomer S.A. (ADR) (144 A) 187,119
100,000 Grupo Financiero Bancomer S.A. (GDR) 736,600
54,500 Kimberly Clark de Mexico S.A. (ADR) 967,375
35,000 Panamerican Beverages Inc. (Class A) 1,100,313
-----------
4,831,278
-----------
PERU: 1.0%
41,400 Credicorp Ltd. 608,063
-----------
PHILIPPINES: 2.7%
226,800 Benpres Holdings Corp. (GDR) 623,700
53,000 Manila Electric Co. "B" 139,808
12,000 Philippine Long Distance Telephone Co. 273,381
170,130 San Miguel Corp. (Class B) 224,392
2,840,900 SM Prime Holdings Inc. 449,639
-----------
1,710,920
-----------
POLAND: 1.1%
50 Central Food 275,000
25,000 Computerland Poland S.A. 448,093
-----------
723,093
-----------
ROMANIA: 2.8%
50,000 Alro S.A. 391,252
299,457 Petrobrazi S.A. 1,188,862
48,544 The Romanian Growth Fund 218,447
-----------
1,798,561
-----------
RUSSIA: 2.4%
9,000 Lukoil Holding (ADR) 299,250
360 Norilsk Nickel (RDC) 391,500
620 Norilsk Nickel Pfd. (RDC) 506,850
59,284 Noyabrskneftegaz 78,551
</TABLE>
<TABLE>
<CAPTION>
VALUE
NO. OF SHARES SECURITIES (A) (NOTE 1)
- ----------------------------------------------------------------------
<C> <S> <C>
RUSSIA (CONTINUED)
7,000 Unified Energy Systems (GDR) $ 96,175
2,200,000 Unified Energy Systems Pfd. 136,400
-----------
1,508,726
-----------
SOUTH AFRICA: 4.2%
630,000 FirstRand Ltd. 929,250
39,413 Liberty Life Assoc. of Africa Ltd. 778,407
41,700 Nedcor Ltd. 839,213
135,700 Softline Ltd. 132,308
-----------
2,679,178
-----------
SOUTH KOREA: 1.4%
34,700 Medison Co. Ltd. 305,805
3,600 S1 Corporation 364,457
7,064 SK Telecom (Warrants expiring 7/12/99) 223,147
-----------
893,409
-----------
THAILAND: 1.2%
330,000 Bangkok Bank Public Co. Ltd. 340,974
400,000 Thai Farmers Bank Public Co. Ltd. 289,786
121,200 Tipco Asphalt Public Co. "F" 138,185
-----------
768,945
-----------
TURKEY: 7.1%
825,000 Carsi Buyuk Magazacilik A.S. 820,788
650,000 Efes Sinai Yatirim Holding A.S. (Class A) 1,317,765
100,000 Enka Holding Yatirim A.S. 525,604
500,000 Guney Buracilik ve Malt Sanayii A.S. 488,061
75,000 Migros Turk T.A.S. 732,092
1,350,000 Turkiye Garanti Bankasi A.S. 620,869
-----------
4,505,179
-----------
</TABLE>
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
NUMBER
OF VALUE
CONTRACTS SECURITIES (A) (NOTE 1)
- ---------------------------------------------------------------------------
<C> <S> <C>
PUT OPTION PURCHASED: 0.6%
Japanese Yen (strike @ JPY 160, expiring 12/15/98) $ 376,488
-----------
CALL OPTION PURCHASED: 0.0%
20,055 Bank Leumi Le-Israel (strike price @ ILS 5,511
expiring 8/10/98) 7,010
-----------
TOTAL STOCKS AND OTHER INVESTMENTS: 88.2%
(COST: $68,580,918) 55,896,688
OTHER ASSETS LESS LIABILITIES: 11.8% 7,498,527
-----------
NET ASSETS: 100% $63,395,215
===========
</TABLE>
- -------
(a) Unless otherwise indicated, securities owned are shares of common stock.
Glossary:
ADR--American Depositary Receipt
"F"--Foreign Registry
GDR--Global Depositary Receipt
RDC--Russian Depositary Certificate
<TABLE>
<CAPTION>
SUMMARY OF
INVESTMENTS % OF
BY INDUSTRY PORTFOLIO
- ----------- ---------
<S> <C>
Auto, Trucks &
Parts 0.9%
Banks 14.6%
Building
Materials 0.2%
Computer
Services &
Equipment 8.7%
Consumer
Products &
Services 4.5%
Electronics &
Electrical
Equipment 2.6%
Entertainment &
Leisure 4.3%
Financial
Services &
Insurance 2.9%
Food & Beverages 11.3%
Investment Fund 0.3%
Manufacturing
Consumer &
Industrial
Products 0.8%
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF
INVESTMENTS % OF
BY INDUSTRY PORTFOLIO
----------- ---------
<S> <C>
Medical Products
& Supplies 0.5%
Metals 2.0%
Oil 6.5%
Options 0.6%
Pharmaceuticals 3.8%
Real Estate 1.2%
Retail 3.6%
Telecommunications 9.1%
Television
Broadcasting 1.0%
Tobacco 1.2%
Utilities 7.5%
Water Treatment
System 0.1%
Other assets
less
liabilities 11.8%
------
100.0%
======
</TABLE>
<PAGE>
WORLDWIDE EMERGING MARKETS FUND FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998
<TABLE>
<S> <C>
ASSETS:
Investments at value (cost, $69,580,918)(Note 1)................... $ 55,896,688
Cash............................................................... 7,048,506
Receivables:
Capital shares sold............................................... 526,123
Securities sold................................................... 417,712
Dividends and interest............................................ 266,004
Deferred organization costs and other assets (Note 1).............. 10,875
------------
Total assets..................................................... 64,165,908
------------
LIABILITIES:
Payables:
Securities purchased.............................................. 738,849
Capital shares redeemed........................................... 6,760
Accounts payable................................................... 25,084
------------
Total liabilities................................................ 770,693
------------
Net assets......................................................... $ 63,395,215
============
Shares outstanding................................................. 7,594,553
============
Net asset value, redemption and offering price per share
($63,395,215 / 7,594,553)......................................... $8.35
============
Net assets consist of:
Aggregate paid in capital......................................... $110,157,564
Unrealized depreciation of investments and foreign currency
receivables and payables......................................... (13,780,670)
Undistributed net investment income............................... 374,372
Accumulated realized loss......................................... (33,356,051)
------------
$ 63,395,215
============
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
<TABLE>
<S> <C> <C>
INCOME: (Note 1)
Dividends (net of foreign taxes withheld of $98,475)... $ 1,213,944
Interest............................................... 8,658
------------
1,222,602
EXPENSES:
Management (Note 2).................................... $417,942
Administration (Note 2)................................ 4,381
Custodian.............................................. 72,144
Reports to shareholders................................ 31,483
Trustees fees and expenses............................. 8,842
Professional........................................... 7,436
Amortization of deferred organization costs (Note 1)... 744
Other.................................................. 7,109
--------
Total expenses....................................... 550,081
------------
Net investment income................................ 672,521
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(Note 3):
Realized loss from security transactions............... (19,864,053)
Realized loss from foreign currency transactions....... (159,126)
Realized loss on equity swaps and foreign futures
contracts............................................. (118,831)
Change in unrealized depreciation of foreign currency
receivables and payables.............................. (96,328)
Change in unrealized depreciation of investments and
equity swaps.......................................... 541,489
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS... $(19,024,328)
============
</TABLE>
See Notes to Financial Statements
<PAGE>
WORLDWIDE EMERGING MARKETS FUND FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income......................... $ 672,521 $ 970,903
Realized loss from security transactions...... (19,864,053) (11,105,861)
Realized loss from foreign currency
transactions................................. (159,126) (361,787)
Realized loss on equity swaps and foreign
future contracts............................. (118,831) (1,610,071)
Change in unrealized depreciation of foreign
currency receivables and payables............ (96,328) 303
Change in unrealized depreciation of
investments and equity swaps................. 541,489 (14,387,243)
------------ ------------
Decrease in net assets resulting from
operations................................... (19,024,328) (26,493,756)
------------ ------------
Dividends and distributions to shareholders
from:
Net investment income......................... (735,333) (171,583)
Net realized gains............................ (653,629) --
------------ ------------
Total dividends and distributions............. (1,388,962) (171,583)
------------ ------------
CAPITAL SHARE TRANSACTIONS*:
Net proceeds from sales of shares............. 45,535,950 197,339,135
Reinvestment of dividends..................... 1,388,962 171,583
------------ ------------
46,924,912 197,510,718
Cost of shares reacquired..................... (55,549,326) (93,767,481)
------------ ------------
Increase (decrease) in net assets resulting
from capital share transactions.............. (8,624,414) 103,743,237
------------ ------------
Total increase (decrease) in net assets....... (29,037,704) 77,077,898
NET ASSETS:
Beginning of period............................ 92,432,919 15,355,021
------------ ------------
End of period (including undistributed net
investment income of $374,372 and $596,310,
respectively)................................. $ 63,395,215 $ 92,432,919
============ ============
*SHARES OF BENEFICIAL INTEREST OUTSTANDING WITH
AN UNLIMITED NUMBER OF $.001 PAR VALUE SHARES
AUTHORIZED, ISSUED AND REDEEMED:
Shares sold................................... 4,392,471 13,987,525
Reinvestment of dividends..................... 142,166 12,617
------------ ------------
4,534,637 14,000,142
Shares reacquired............................. (5,341,382) (6,828,716)
------------ ------------
Net increase (decrease)....................... (806,745) 7,171,426
============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE
FOR THE FOR THE PERIOD
SIX MONTHS YEAR EIGHT MONTHS DECEMBER 21,
ENDED ENDED ENDED 1995(A) TO
JUNE 30, 1998 DECEMBER 31, DECEMBER 31, APRIL 30,
(UNAUDITED) 1997 1996 1996
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 11.00 $ 12.49 $ 10.95 $ 10.00
------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income.... 0.09 0.14 0.01(b) 0.07(b)
Net Gain (Loss) on
Securities (both
realized and
unrealized)............. (2.57) (1.58) 1.59 0.88
------- ------- ------- -------
Total From Investment
Operations............... (2.48) (1.44) 1.60 0.95
------- ------- ------- -------
Less Distributions:
Distributions from Net
Investment Income....... (0.09) (0.05) (0.06) --
Distributions from
Capital Gains........... (0.08) -- -- --
------- ------- ------- -------
Total Distributions....... (0.17) (0.05) (0.06) --
------- ------- ------- -------
Net Asset Value, End of
Period................... $ 8.35 $ 11.00 $ 12.49 $ 10.95
======= ======= ======= =======
Total Return (c).......... (22.77%) (11.61%) 14.66% 9.50%
- ---------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period
(000).................... $63,395 $92,433 $15,355 $ 597
Ratio of Gross Expenses to
Average Net Assets....... 1.32%(d) 1.34% 2.64%(d) 2.06%(d)
Ratio of Net Expenses to
Average Net Assets....... 1.32%(d) 0.80% 0.00%(d) 0.00%(d)
Ratio of Net Income to
Average Net Assets....... 1.61%(d) 0.91% 0.74%(d) 1.89%(d)
Portfolio Turnover Rate... 46.40% 142.39% 29.53% 45.89%
Average Commission Rate
Paid..................... $0.0014 $0.0011 $0.0029 $0.0124
</TABLE>
- -------
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of distributions
at net asset value during the period and a redemption on the last day of
the period. Total returns for periods of less than one year are not
annualized.
(d) 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 following is a summary of significant accounting policies
consistently followed by the Worldwide Emerging Markets 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 on
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 amortized cost
which with accrued interest approximates value. Securities for which
quotations are not available are stated at fair value as determined by the
Board of Trustees.
B. FEDERAL INCOME TAXES--It is the Fund's policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
C. CURRENCY TRANSLATION--Assets and liabilities denominated in foreign
currencies and commitments under forward currency contracts are translated
into U.S. dollars at the mean of the quoted bid and asked prices of such
currencies on the last business day of the 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 results 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 realized gains or losses
from foreign currency transactions.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
- -------------------------------------------------------------------------------
D. DIVIDENDS AND DISTRIBUTIONS--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Income 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.
F. DEFERRED ORGANIZATION--Costs are being amortized over a period not to
exceed five years.
G. USE OF DERIVATIVE INSTRUMENTS
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 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.
EQUITY SWAPS--The Fund may entered into the equity swaps to gain investment
exposure to the relevant market of the underlying security. A swap is an
agreement that obligates the parties to exchange cash flows at specified
intervals. The Fund is obligated to pay the counterparty on trade date an
amount based upon the value of the underlying instrument and, at termination
date, final payment is settled based on the value of the underlying security
on trade date versus the value on termination date plus accrued dividends.
Risks may arise as a result of the failure of the other party to the contract
to comply with the terms of the swap contract. The losses incurred on swaps
are limited to the payments made on the purchase date by the Fund. Therefore,
the Fund considers the credit worthiness of each counterparty to a swap
contract in evaluating potential credit risk. Additionally, risks may arise
from unanticipated movements in the value of the swap relative to the
underlying securities. The Fund records a net receivable or payable daily,
based on the change in the value of the underlying securities. The net
receivable or payable for financial statement purposes is shown as due to or
from broker.
NOTE 2--Van Eck Associates Corporation (the "Adviser") earned fees of $417,942
for the six months ended June 30, 1998 for investment management and advisory
services. The fee is based on an annual rate of 1% of the average daily net
assets, which includes the fee paid to the Adviser for accounting and
administrative services. Certain of the officers and trustees of the Trust are
officers, directors or stockholders of the Adviser and Van Eck Securities
Corporation.
In accordance with the advisory agreement, the Fund reimbursed the Adviser
$4,381 for costs incurred in connection with certain administrative functions
for the six months ended June 30, 1998.
NOTE 3--Purchases and sales of securities, other than short-term obligations,
aggregated $37,523,117 and $52,272,977, respectively, for the six months ended
June 30, 1998. For federal income tax purposes, the identified cost of
investments owned at June 30, 1998 was $68,580,918. As of June 30, 1998, net
unrealized depreciation for federal income tax purposes aggregated
$13,684,230, of which $3,755,764 related to appreciated securities and
$17,439,994 related to depreciated securities.
NOTE 4--The Fund may purchase securities on foreign exchanges. Securities of
foreign issuers involve special risks and considerations not typically
associated with investing in U.S. issuers. These risks include devaluation of
currencies, less reliable information about issuers, different securities
transactions clearance and settlement practices, and future adverse political
and economic developments. These risks are heightened for investments in
emerging market countries. Moreover, securities of many foreign issuers and
their markets may be less liquid and their prices more volatile than those of
comparable U.S. issuers.
NOTE 5--The Fund invests in warrants whose values are linked to indices or
underlying instruments. The Fund uses these warrants to gain exposure to
markets that might be difficult to invest in through conventional securities.
Warrants may be more volatile than their linked indices or underlying
instruments. Potential losses are limited to the amount of the original
investment.
NOTE 6--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 Fund has elected to show
this deferred liability net of the corresponding asset for financial statement
purposes. The Plan has been approved by the Internal Revenue Service. As of
June 30, 1998 the total value of the liability of the Fund's portion of the
Plan is $11,051.
<PAGE>
LOGO VAN ECK GLOBAL
Investment Adviser: Van Eck Associates Corporation
Distributor: Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016 www.vaneck.com
FR 1998-0728-0039
