VAN ECK FUNDS, N-30D, 1998-08-31

VAN ECK FUNDS
N-30D, 1998-08-31

Previous: SMITH BARNEY INCOME FUNDS, N-30D, 1998-08-31

Next: DCI TELECOMMUNICATIONS INC, 8-K/A, 1998-08-31

VAN ECK GLOBAL

SEMI-ANNUAL REPORT

June 30, 1998

Asia Dynasty Fund

Emerging Markets Growth Fund

Global Balanced Fund

Global Hard Assets Fund

Global Real Estate Fund

Gold/Resources Fund

International Investors Gold Fund

U.S. Government Money Fund

A TRADITION OF GLOBAL SOLUTIONS DESIGNED FOR INTELLIGENT INVESTMENT PLANNING AND
DIVERSIFICATION

<PAGE>

VAN ECK ASIA DYNASTY FUND

- --------------------------------------------------------------------------------

Dear Fellow Shareholder:

Asia's continuing economic troubles and the resulting overall decline in the
Asian stock markets made the first half of the year very difficult for
investors. In this environment, the Van Eck Asia Dynasty Fund declined 22.9% in
the first six months of 1998, compared with a decline of 25.8% for the Morgan
Stanley Capital International Far East Free Ex-Japan Index.

REVIEW

The Asian currency and economic crisis that started in 1997 gained momentum in
the first few days of 1998. A panic sell-off was soon followed by strong rallies
in stocks and currencies in January and February. At that stage, investors
seemed to believe that the worst was over for the Asian markets. In the
following months, however, it became clear that the Asian economies were in for
a difficult time, as economic statistics started to reveal the real picture. It
took several months for the markets, accustomed to more than a decade of strong
growth, to adjust to the reality of recessions. Thus, stocks started to sell off
again in May, as Asia's crisis continued to deepen.

The problems in Asia reflect much more than the normal business cycle. They
reflect the end of a long period of super-charged growth. The wholesale
withdrawal of capital from the financial systems of Asia has its roots in poor
quality lending by Japanese banks, which was mirrored in poor credit decisions
in Thailand, Indonesia, Korea, Malaysia and the Philippines. Banks in Hong Kong,
Singapore and Taiwan have been better regulated, and were less reckless lenders,
but even these markets proved vulnerable to the end of the easy money pumping
out of Japan. The rapid reversal of foreign fund flows, which had been funding
capital investments, quickly started a wave of bankruptcies. This resulted in
the erosion of the capital base of local banks, constraining their ability to
lend, which in turn has meant further corporate casualties. Where money is
available, the cost of that money has been driven up to high levels.

To stabilize the region, the IMF stepped in to provide capital to certain
countries. The price of accepting their help has been the adoption of the strict
measures of IMF methodology. This emphasizes a stable currency and the pain of
tight monetary policy in the short term. The theory is that eventual currency
stability will entice foreign capital back into these economies. Critics of this
approach point to the social instability that it can cause, as amply
demonstrated by the eruption of popular discontent that marked the ousting of
Suharto in Indonesia. The alternative is to keep interest rates low, accept
currency weakness and hope that the economy can grow its way out of trouble.

Both approaches have validity. Thailand has followed the IMF policy, whereas
Malaysia has gone the "growth" route. Importantly, the work has begun to
rehabilitate Asia. Given the policy responses already made, the most important
factor in the healing process is time. Nevertheless, during the recuperative
process, the Asian markets will remain susceptible to external events.

The most significant external factor during the first half of the year has been
Japan. After an ill-judged hike in taxes last year, domestic demand in Japan
became very weak. It has become clear that the Japanese policymakers need to
stimulate growth by reducing taxes and cleaning up the banking system so that it
can lend again. If Japan manages to stimulate its economy, even in the short
term, we anticipate a significant lessening of the perceived risk of Asian
markets generally, which will lead to renewed inflows into Asian stocks.

Given market turmoil and uncertainty, we maintained a defensive strategy during
the first half of the year--a high cash position, a majority of Fund holdings
allocated to the relatively less vulnerable markets of Hong Kong, Singapore and
Taiwan, and an emphasis on utilities (which provide steady revenue streams even
in economic downturns). Further, we have been buying selective "recovery plays"
(such as the Korean stock S1, a security services company, and Thai Farmers
Bank, probably the best-run bank in Thailand) on an opportunistic basis.

In Hong Kong, the first half of the year saw outflows of money, which caused
interest rates to rise sharply due to the mechanics of the currency's peg to the
dollar. Higher interest rates brought about a sharp correction in the price of
real estate. As the market is still dominated by stocks that are driven by the
outlook for property, stock prices quickly declined. On top of this, the
continuing slowdown in the Chinese economy resulted in slower trade and capital
flows from the mainland. This further weakened Hong Kong's economy. A serious
effort of reflation is underway in China now, but it will take time to turn this
large economy around.

The other city-state in Asia, Singapore, has suffered as the volume of trade in
the Asian region slowed significantly in the second quarter. Despite the
significant currency devaluations, exports from neighboring countries such as
Indonesia, Malaysia and the Philippines have slowed. This is partly due to a
lack of bank credit facilities to fund exports, and also due to weak intra-Asian
demand. Singapore's economy depends heavily on trade flows in the region, and
has suffered as a consequence. Stocks declined dramatically even though the
finances of Singapore are in sound shape.

<PAGE>

VAN ECK ASIA DYNASTY FUND

- --------------------------------------------------------------------------------

Weak demand for certain electronic products pressured the Taiwanese market. On
the other hand, the dominance of domestic investors meant that stocks did not
suffer as much from the withdrawal of foreign capital. The relative weakness of
the yen has weighed on exports and profits in Taiwan just as in nearby Korea,
but debt levels in Taiwan remain manageable as profitability has been prized
more than size.

Malaysia's companies have relatively less foreign-denominated debt than the rest
of the region, so they are not as deeply affected by the consequences of
devaluation. However, there is a great deal of domestic debt. Stocks started the
year looking quite expensive, so we have maintained an underweight position.

Thailand was the first country to fall into crisis, but on the positive side, it
has also been one of the strictest adherents to the prescriptive medicine of the
IMF. We added to the Fund's Thai holdings through the purchase of the two
largest and best-run banks in the country, Bangkok Bank and Thai Farmers.
Although non-performing loans are still rising, industry consolidation will
ultimately benefit the strongest banks.

Indonesia has been by far the worst affected by Asia's problems, and the Fund
has no exposure to this market. Its banking sector was already in poor shape
before devaluation, and corruption was rampant. Eventually, popular
dissatisfaction led to the resignation of Suharto after more than 30 years in
power. His successors will have an unenviable legacy, with most of corporate
Indonesia unable to service its debt in the current environment.

Political change also took place in the Philippines, as Vice President, former
movie star and Marcos crony, Estrada, became President. Concerns about rising
bad debts of the banking system, as well as fears of a return to the era of
political favors, have weighed heavily on the market. In economic terms,
however, the Philippines is better placed than its regional peers, since it did
not have the long period of growth that other Asian countries enjoyed, and
consequently did not build up the same amount of debt.

In India, the ascension to political power of the BJP (pro-Hindu Bharatiya
Janata Party) and the nuclear issue have dominated the stock markets. Enthusiasm
for a fresh political and economic approach was disappointed by a budget that
did little to promote liberalization. We initiated positions in the promising
software sector on the subsequent sell-off.

THE OUTLOOK

With recessions now a reality in most Asian economies, the question for
investors is whether this is currently reflected in the markets. The pertinent
measure of value in this type of environment is the ability of each company to
survive the harsh economic conditions and emerge with its franchise value
intact. Our 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 plan to continue our defensive strategy, while monitoring the
operating performance and the valuation levels of these recovery play stocks,
and buying on an opportunistic basis at low valuations. Companies like these
should reward long-term shareholders as the Asian economies begin their
recovery.

A year ago it seemed obvious that in the 21st century much of U.S. companies'
profit growth would come from the developing countries, especially from Asia,
with one-half of the world's population. One year later, this remains the case.
Multinationals cannot afford to lose sight of this reality, as they will soon
exhaust the benefits of cost cutting and industry consolidation. Fund investors
should share this long-term perspective. Asia's growth will resume, in our
opinion, and with that, its stock markets will resume their performance.

We would like to thank you for your participation in the Asia Dynasty Fund and
look forward to working with you in the future.

[PHOTO] [PHOTO]

/s/Gary Greenberg /s/David A. Semple
- ------------------------------ ------------------------------
GARY GREENBERG DAVID A. SEMPLE
CO-PORTFOLIO MANAGER CO-PORTFOLIO MANAGER

July 24, 1998

Note: As of March 31, 1998, Gary Greenberg and David Semple became co-portfolio
managers of the Van Eck Asia Dynasty Fund. They have twelve and eight years of
experience, respectively, investing in Asia and the emerging markets. For
further detail on their backgrounds, please see page 51 of the Van Eck Global
Funds prospectus.

The MSCI Far East Free Ex-Japan Index is measured in U.S. dollars and reflects
the reinvestment of gross dividends.

<PAGE>

VAN ECK ASIA DYNASTY FUND

- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98
- --------------------------------------------------------------------------------
AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
- --------------------------------------------------------------------------------
A shares-Life (since 3/22/93) (6.1)% (5.2)%
- --------------------------------------------------------------------------------
5 years (8.2)% (7.3)%
- --------------------------------------------------------------------------------
1 year (50.4)% (47.9)%
- --------------------------------------------------------------------------------
B shares-Life (since 9/1/93) (9.9)% (9.6)%
- --------------------------------------------------------------------------------
1 year (50.6)% (48.4)%
- --------------------------------------------------------------------------------

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.

At certain times in the past, the Adviser waived certain or all expenses on the
Fund. Had the Fund incurred all expenses, investment returns would have been
reduced.

* A shares: maximum sales charge = 4.75%
B shares: maximum contingent deferred sales charge = 5.00%
(Prior to 4/30/97, the maximum CDSC was 6.00%)

GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 1998

China 1.0%
Hong Kong 43.0%
India 2.4%
Malaysia 4.6%
Philippines 3.1%
Singapore 7.9%
Taiwan 15.7%
South Korea 2.7%
Thailand 4.6%
Cash/Equiv. 14.4%
Option 0.6%

[ABOVE TABLE IS REPRESENTED BY A PIE CHART IN PRINTED PIECE]

<PAGE>

- --------------------------------------------------------------------------------
VAN ECK ASIA DYNASTY FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 1998*
- --------------------------------------------------------------------------------

HSBC HOLDINGS PLC
(HONG KONG, 8.2%)

HSBC Holdings is the holding company for the HSBC Group. The Group is an
international banking and financial services organization with operations in the
Asia-Pacific region, Europe (Midland PLC), the Middle East and the Americas
(Marine Midland). Services provided include retail and corporate banking, trade,
trustee, securities, custody, capital markets and treasury services, private and
investment banking and insurance.

CLP HOLDINGS LIMITED
(HONG KONG, 5.9%)

CLP Holdings is an investment holding company whose subsidiaries generate and
supply electricity to Kowloon and the New Territories in Hong Kong. The company
also exports electric power to Guangdong Province in the People's Republic of
China. Its subsidiaries are involved in property investment and development.

HUTCHISON WHAMPOA LIMITED
(HONG KONG, 4.8%)

Hutchison Whampoa is an investment holding company. It has diversified
operations in property investment and development, ports and related services,
retail and manufacturing, telecommunications, media, energy, finance, investment
and other services.

HONG KONG TELECOMMUNICATIONS LTD.
(HONG KONG, 4.3%)

Hong Kong Telecommunications provides telecommunications, computer, engineering
and other services. The company also sells and rents telecommunications
equipment.

HANG SENG BANK LIMITED
(HONG KONG, 3.8%)

Hang Seng Bank offers commercial banking and related financial services. The
company has 145 branches in Hong Kong, the United States and China.

HONGKONG ELECTRIC HOLDINGS LTD.
(HONG KONG, 3.2%)

Hongkong Electric generates and supplies electricity for Hong Kong island, and
provides engineering consulting and project management services.

CHEUNG KONG (HOLDINGS) LTD.
(HONG KONG, 2.9%)

Cheung Kong, through subsidiaries, is involved in property development and
investment, infrastructure and related businesses, real estate management and
investment in securities.

SINGAPORE AIRLINES LTD.
(SINGAPORE, 2.7%)

Singapore Airlines provides air transportation, engineering, airport terminal,
pilot training, air charter and tour wholesaling services. The company's airline
operation covers Asia, Europe, the Americas, the southwest Pacific and Africa.

PTT EXPLORATION AND PRODUCTION
PUBLIC COMPANY LIMITED
(THAILAND, 2.6%)

PTT is an affiliate of the state-owned Petroleum Authority of Thailand. The
company explores for natural gas in the Gulf of Thailand.

MEDISON CO. LIMITED
(S. KOREA, 1.9%)

Medison is a medical equipment company. It produces ultrasonic diagnosis
instruments (USD) in Korea using in-house technology. The company is also
involved in the medical rental business.

- ----------
*Portfolio is subject to change.

<PAGE>

VAN ECK EMERGING MARKETS GROWTH 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 Emerging Markets Growth Fund had a total return of
- -16.0% 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 in China. 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 (approximately 19% 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 allocations to 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 39% 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 (1.6% of
assets) position in Russia, primarily in restructuring plays (Norilsk Nickel,
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 allocation at 6.8%
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 markets in the first half. The Fund's 28% 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.

<PAGE>

VAN ECK EMERGING MARKETS GROWTH FUND

- --------------------------------------------------------------------------------

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.

We appreciate your participation in the Emerging Markets Growth 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

The MSCI Emerging Markets Free Index and the MSCI Latin America Emerging Markets
Free Index are measured in U.S. dollars and reflect the reinvestment of gross
dividends.

- --------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98
- --------------------------------------------------------------------------------

AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
- --------------------------------------------------------------------------------
A shares-Life (since 12/30/96) (21.0)% (18.4)%
- --------------------------------------------------------------------------------
1 year (41.4)% (38.5)%
- --------------------------------------------------------------------------------
B shares-Life (since 12/30/96) (20.4)% (18.3)%
- --------------------------------------------------------------------------------
1 year (41.5)% (38.6)%
- --------------------------------------------------------------------------------
C shares-Life (since 12/30/96) (18.4)% (18.4)%
- --------------------------------------------------------------------------------
1 year (39.1)% (38.5)%
- --------------------------------------------------------------------------------

The Adviser is currently waiving certain or all expenses on the Fund. Had the
Fund incurred all expenses, investment returns would have been reduced.

* A shares: maximum sales charge = 4.75%
B shares: maximum contingent deferred sales charge = 5.0%
C shares: 1% redemption charge, 1st year

<PAGE>

VAN ECK EMERGING MARKETS GROWTH FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 1998*

- --------------------------------------------------------------------------------

TELECOMUNICACOES BRASILEIRAS S.A. (TELEBRAS)
(BRAZIL, 4.2%)

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 domestic
and international telephone and data transmission services throughout Brazil.

PETROBRAZI S.A.
(ROMANIA, 2.7%)

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.

OSHAP TECHNOLOGIES, LTD.
(ISRAEL, 2.7%)

Oshap Technologies identifies and invests in software developers. The company
controls Tecnomatix Technologies Ltd., a leader in computer-aided process
engineering, as well as Decalogue (asset management) and MINT (middleware).

HELLENIC BOTTLING COMPANY S.A.
(GREECE, 2.6%)

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, Moldova, Nigeria, Romania and Yugoslavia.

NATIONAL BANK OF GREECE S.A.
(GREECE, 2.6%)

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 606 domestic branches and 81 overseas branches in fifteen
countries.

ORBOTECH, LTD.
(ISRAEL, 2.3%)

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 laser plotters.

TELECOMUNICACOES DE SAO PAULO S.A. (TELESP)
(BRAZIL, 2.3%)

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.

CIA ELETRICIDADE DE BAHIA (COELBA)
(BRAZIL, 1.7%)

Coelba generates, transmits, transforms and distributes electrical energy
throughout the Brazilian state of Bahia, including over 400 municipalities.

GRUPO FINANCIERO BANCOMER S.A. DE C.V.
(MEXICO, 1.7%)

Bancomer is Mexico's second largest bank with subsidiaries in insurance, asset
management (including the largest pension fund in Mexico) and long-distance
telecommunications. Its healthy loan profile indicates that it is leading the
recovery of the Mexican banking system.

- ----------
*Portfolio is subject to change.

<PAGE>

VAN ECK EMERGING MARKETS GROWTH FUND

- --------------------------------------------------------------------------------

GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 1998

Brazil 16.1%
Egypt 1.6%
Greece 6.8%
Hong Kong 3.1%
Hungary 3.2%
India 7.6%
Israel 11.4%
Malaysia 2.0%
Mexico 7.4%
Philippines 3.2%
Romania 3.3%
Russia 1.6%
South Africa 3.9%
Thailand 1.5%
Turkey 6.0%
Cash/Equiv. 13.4%
Other 4.4%
Argentina 2.8%
Option 0.7%

[ABOVE TABLE IS REPRESENTED BY A PIE CHART IN PRINTED PIECE]

<PAGE>

VAN ECK GLOBAL BALANCED FUND
- --------------------------------------------------------------------------------

Dear Fellow Shareholder:

We are pleased to report that the Van Eck Global Balanced Fund had a total
return of 15.0% for the first six months of the year. The Fund ranked second*
among 70 "global flexible" funds for the period, according to Standard & Poor's
Micropal, a mutual fund evaluation service. The average return among these funds
was 7.9%. The Fund's performance was also favorable versus a blend of the MSCI
World Index (+16.6%) and the Salomon Smith Barney World Government Bond Index
(+2.8%). A greater emphasis on equities versus bonds, exposure to European
equities and gains from Japanese yen hedges contributed to the portfolio's
outperformance.

WORLD EQUITY MARKETS

The trends in world equity markets during the past six months are easily
summarized: European and U.S. strength and continued weakness in Japan, Asia
Pacific and Latin America. European equities are in an investment "sweet spot,"
and although it is entirely possible that there may be a pullback from the 26.5%
gain realized in the first half of the year, the long-term fundamentals clearly
favor the region. Having been led by export growth, the economic recovery is
accelerating and is now spilling over to the domestic sectors, with consumers
starting to spend. Low interest rates continue to support equities, and while
valuations may be somewhat stretched, local investors appear to be
underestimating two key factors. The first is the positive impact that
accelerating economic growth will have on corporate earnings. The second has
been one of the major drivers of the 1990s U.S. bull market: the magnitude and
duration of inflows into investment funds by individual investors. Europe is
quickly becoming more like the U.S. in its approach to financial markets. This
is seen in corporations' newly found focus on restructuring and increasing
shareholder value, as well as in an increase in retail ownership of equities.
The portfolio is positioned to exploit these trends, investing in financial
services companies (ForeningsSparbanken, Credito Italiano, Bank of Ireland), as
well as restructuring stories (Akzo Nobel).

While unable to keep pace with European equities, U.S. stocks still registered a
17.7% gain during the first half of 1998. The much feared economic impact of the
Asian implosion has yet to make a noticeable impact on overall economic growth.
At the company level, though, earnings have taken hits, leading to a
deceleration in corporate earnings growth for the market. The clear positive
from the Asian crisis continues to be the beneficial impact on inflation, with
the Federal Reserve abstaining from increasing interest rates when domestic
considerations alone would justify the increases. The surprising resilience of
U.S. economic growth is due to the strength of consumers, with strong income
growth being the primary impetus for the acceleration in consumer spending. As
would be expected in this environment, the consumer sector led the market during
the first half, with the portfolio's sector holdings benefiting (Home Depot, CBS
Corp.).

While European markets are supported by strong fundamentals, the converse is
true for Japanese equities, which declined 2.6% over the past six months. Tax
hikes, the Asian crisis in the second half of 1997 and an unstable banking
system have all contributed to Japan's current economic downturn and further yen
weakness. Recently released figures revealed a GDP (Gross Domestic Product)
decline of 3.5% during the first quarter of calendar 1998, leading to further
yen weakness. Japan's problems would be challenge enough for most governments,
let alone one where the political machine has made it difficult to make
substantial and far-reaching structural changes. The real concern in the
marketplace presently is what the government can do to spur economic growth.
Interest rates are already close to 0%, the government has already approved
fiscal stimulus packages greater than $100 billion, and yet the yen continues to
weaken and consumers show no willingness to start spending. Following on the
heels of the recent Fed-Bank of Japan (BOJ) yen intervention, the Japanese
government has talked about a "bridge bank" to resolve the banks' bad debt
problems, as well as permanent income tax cuts. For the market to move forward,
both of these issues need to be addressed adequately; the government's track
record is poor. However, with global economies and currency markets hanging in
the balance, the increased risks may prove to be the needed stimulus. Being
cautiously optimistic at best, we have maintained only a small allocation of
3.7% of the portfolio to Japanese equities. We continue to focus on export plays
(Canon, Sony), acknowledging that any meaningful progress by the Japanese
politicians would be met by our increasing commitment to domestic-oriented
issues in the portfolio.

Much to our surprise, some of the Asian markets started the year with strong
currency and equity rallies. Investors had apparently decided the worst was over
after last year's turmoil. Expecting much greater economic pain to come, we
viewed the rallies as premature, hesitating to increase exposure to the region.
As economic data was released during the ensuing months, investors began to see
the impact of currency weakness and high interest rates in the region. Markets
have since come full circle, declining

<PAGE>

VAN ECK GLOBAL BALANCED FUND
- --------------------------------------------------------------------------------

17.0% (index includes New Zealand and Australia) during the first half of the
year. Looking forward, the region must continue to grapple with high interest
rates and their impact on excessive public and corporate debt levels, as well as
stop the deterioration in consumer sentiment. Of key interest for investors in
the region is the direction of the yen. If the recent Fed-BOJ intervention is
unsuccessful, China and Hong Kong may be forced to devalue, an event that would
undoubtedly lead to another round of currency weakness throughout all global
emerging markets. With so much uncertainty, we have completely eliminated the
portfolio's exposure to the region.

Though not plagued by all of Asia's problems, Latin American equities fell in
sympathy during the past six months, declining 19.8%. The fundamentals in Latin
America are relatively strong versus their Asian counterparts, with Argentina
and Mexico still growing at a respectable pace. To date, Brazil has been able to
defend its currency, but the high interest rates required have taken their toll
on the domestic economy. We still find attractive values in these markets;
however, currency and political risks are higher and warrant a relatively
cautious investment stance in the near term. We have reduced the Fund's exposure
to the region, maintaining a defensive posture in sectors such as public
utilities and beverages (Telecom Argentina, Panamerican Beverages).

WORLD BOND MARKETS

As highlighted above, the dominant influence in global fixed income markets for
the past six months has been the continuing unraveling of the Asian "economic
miracle." During this period, economic developments in the U.S. and Europe,
which tend to dominate trends in global fixed income markets, have been largely
overlooked as the Asian crisis continued to unfold. This occurred for two
reasons. First, there was growing recognition by central bankers that the Asian
currency collapses would have a restraining impact on economic growth and
inflation, which persuaded them against raising interest rates, even as domestic
demand growth accelerated. Second, a large flow of flight capital out of Asia
buoyed bond prices in the developed markets. As the crisis spread from Thailand
to Korea to Indonesia, more and more investors fled these and other emerging
markets in favor of the U.S. and European bond markets.

A diagnosis of the causes of the Asian crisis could fill many volumes. In the
IMF's view, "changes in market sentiment played a large role in bringing the
crisis to a head and in determining the course of contagion." By the beginning
of the period under review, virtually all of Asia's pegged currency regimes had
been eliminated, promoting large currency devaluations. (Hong Kong's currency
board enabled it to defend its exchange rate successfully while the
inconvertibility of the Chinese renminbi prevented speculators from forcing a
devaluation.) In many of the countries, central bank reserves were substantially
below the levels of short-term external debt, forcing countries such as Korea,
Indonesia and Thailand to reschedule much of their maturing debt, and to borrow
from the IMF and other multilateral sources to replenish central bank reserves
and shore up their battered banking systems.

The second phase of the Asian crisis was prompted by the dramatic worsening of
economic conditions in Japan. The Japanese financial sector, already under
pressure from continued falls in asset prices and overcapacity, now had to
contend with large losses on Asian loan portfolios. Meanwhile, the continued
restructuring of the Japanese corporate sector was leading to higher
unemployment, falling consumer and business confidence and plunging retail
sales. The Bank of Japan continued to inject much needed liquidity into the
financial system, which put further pressure on the yen. As the yen fell,
concerns mounted that a further yen depreciation would force a devaluation of
the Hong Kong dollar and Chinese renminbi, escalating the crisis to new heights.
Asian currencies and stock markets fell to new lows, prompting further flights
of capital to the relative safety of the developed bond markets. The previously
mentioned currency intervention and "bridge bank" announcement led to a
short-term retracement of part of the yen's decline (after it had fallen to an
eight-year low against the dollar). In Japan, bond yields continued to fall to
new lows (and, inversely, bond prices rose), with ten-year yields falling below
1.5%. We continued to be very underweight Japanese government bonds, although
the drag on performance this caused was more than offset by our zero exposure to
the yen.

Meanwhile, other economies reliant on short-term foreign capital experienced
large outflows and pressure on their exchange rates. These pressures were
further exacerbated by large falls in the price of oil and other commodities.
Most emerging bond and currency markets fell sharply as foreign investors fled.
We eliminated exposure in Mexico (at a small profit) and hedged most of the
portfolio's 1% position in South African bonds (our only remaining emerging
market currency exposure).

As the crisis intensified and the outlook for U.S. economic growth changed
accordingly, we further

<PAGE>

VAN ECK GLOBAL BALANCED FUND
- --------------------------------------------------------------------------------

increased our exposure to the U.S. market, which now represents more than 50% of
the bond portfolio. Additionally, we increased the duration (or interest rate
volatility) of, and thereby the portfolio's exposure to, U.S. holdings. Our
strategy in the past two years of predominantly favoring government issues was
also well rewarded during the quarter, as corporate bonds substantially
underperformed the U.S. Treasury market. In Europe, the Council of Ministers
paved the way for Monetary Union to begin in January 1999 with eleven countries
as founding members. This had little market impact and had been widely expected.
Declines in European bond yields outpaced U.S. yield declines, in part because
U.S. Treasuries had already benefited from a "flight to quality" before the
beginning of the period under review. UK bonds outperformed most of the rest of
Europe, despite further interest rate increases by the Bank of England.
Investors were attracted to the highest available yields in any developed
European market that had an increasingly credible central bank. We increased the
Fund's already overweighted exposure accordingly.

THE OUTLOOK

As highlighted above, European, UK and U.S. equities offer the most attractive
investment opportunities. The combination of an accelerating domestic economic
recovery, low and stable interest rates and the development of a U.S. equity
culture (from the corporate as well as the individual sector) is supporting what
should be the continuation of a multi-year bull market in European equities. In
the short term, volatility will reign in Japan and the emerging markets. The
Japanese government needs to deliver on its recent pledges to address the
banking system's needs as well as to stimulate domestic economic growth via
permanent income tax cuts. Over the past several years, Japanese politicians
have consistently demonstrated an inability to deliver on their promises. This
time, the verdict is still out; we would like to buy equities in this market,
but need to see more proof before changing our investment stance. During this
period, we prefer to seek the relative safety of U.S., UK and European shares.

To further reduce the risk inherent in the portfolio, we have also slightly
increased the portfolio's allocation to dollar bloc and European bonds. The
restructuring of Asia's economies will continue to restrain growth in the rest
of the world. This dampening effect on global growth should further support
developed bond markets. With a deceleration in U.S. growth likely after the
strong first quarter, the U.S. bond market remains attractive. Likewise, with a
temporary moderation in European growth expected during the summer months
(before an acceleration in the fall) and budget deficits under control, yields
should fall further, particularly in the UK market. At some point, we are likely
to see some bargains in emerging markets, and we will be watching closely for
such opportunities. In the meantime, we see further weakness. Those economies
where governments have been quick to respond to recent market events (such as
Mexico) will be the first to recover. Regarding currencies, the yen poses the
greatest risk for global capital markets in the immediate future. We continue to
hedge against further deterioration of the Japanese currency, and have
eliminated exposure to China and Hong Kong in the event that further yen
weakness leads to a devaluation in those currencies.

We appreciate your participation in the Global Balanced Fund and look forward to
helping you meet your investment goals in the future.

[PHOTO] [PHOTO]

/s/Anne M. Tatlock /s/Steven J. Miller
- -------------------------------- -------------------------------
ANNE M. TATLOCK STEVEN J. MILLER
GLOBAL STRATEGIST GLOBAL EQUITY MANAGER

[PHOTO]

/s/Anthony S. Gould
- -------------------------------
ANTHONY S. GOULD
GLOBAL BOND MANAGER

July 22, 1998

*The Fund ranked second among 69 funds for the 1-year period ended 6/30/98 and
eighth among 21 funds since its inception on 12/20/93.

Unless otherwise stated, all stock market returns are Morgan Stanley Capital
International (MSCI) Indices, measured in U.S. dollar terms, and reflect the
reinvestment of net dividends.

<PAGE>

VAN ECK GLOBAL BALANCED FUND
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98
- --------------------------------------------------------------------------------

AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
- --------------------------------------------------------------------------------
A shares-Life (since 12/20/93) 10.4% 11.6%
- --------------------------------------------------------------------------------
1 year 12.2% 17.8%
- --------------------------------------------------------------------------------
B shares-Life (since 12/20/93) 10.5% 10.8%
- --------------------------------------------------------------------------------
1 year 12.2% 17.2%
- --------------------------------------------------------------------------------

The Adviser is currently waiving certain or all expenses on the Fund. Had the
Fund incurred all expenses, investment returns would have been reduced.

* A shares: maximum sales charge = 4.75%
B shares: maximum contingent deferred sales charge = 5.0%

GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 1998

France 2.0%
Germany 6.8%
Italy 4.9%
Japan 3.7%
Netherlands 2.9%
Portugal 1.1%
Spain 1.5%
Sweden 3.1%
Switzerland 1.3%
United Kingdom 9.9%
United States 49.6%
Cash/Equiv. 4.8%
Other 7.1%
Australia 1.3%

[ABOVE TABLE IS REPRESENTED BY A PIE CHART IN PRINTED PIECE]

<PAGE>

VAN ECK GLOBAL BALANCED FUND
REPRESENTATIVE EQUITY HOLDINGS AS OF JUNE 30, 1998*
- --------------------------------------------------------------------------------

AMERICAN INTERNATIONAL GROUP, INC. (AIG)
(U.S., 2.7%)

AIG is the premier growth participant in the global insurance business, with
over 50% of its revenues generated overseas. While the turmoil in the Asia
Pacific region will temporarily slow earnings growth, the global approach AIG
has followed throughout its history should serve to strengthen its market
position in its served markets in these turbulent times. AIG's earnings
predictability is related to its superior financial strength, market leadership
in numerous insurance and financial segments, and its balanced mix of domestic
and international businesses. The company is well positioned to benefit from the
increasing need for financial service products resulting from aging global
demographics.

BANK OF IRELAND
(IRELAND, 0.9%)

Bank of Ireland is the largest bank in the Republic of Ireland. The bank is
currently experiencing strong growth in demand for traditional banking services
as a very young Irish population enters the work force and as the Irish economy
continues to receive a disproportionate share of foreign direct investment into
Europe. Outside of traditional banking, the bank is well positioned with leading
investment management and brokerage divisions. We expect strong profit growth to
continue for Bank of Ireland, as our outlook for the Irish economy remains very
positive.

COMPASS GROUP PLC
(UK, 1.0%)

Compass Group is one of the leading international contract caterers, with
operations in the UK, U.S., continental Europe and Scandinavia. The contract
catering market is in the midst of a secular growth phase as private businesses,
educational institutions and government entities continue to outsource their
in-house dining services. Compass has supplemented the industry growth potential
with several well-timed acquisitions in the major markets outside of the UK, and
is therefore solidly positioned to deliver strong future earnings growth.

ERICSSON LM
(SWEDEN, 0.6%)

Ericsson is a global leader in the manufacturing and development of
telecommunications equipment. We expect the company to continue to grow revenue
and earnings at a rapid rate well into the next century. The drivers of growth
for Ericsson will be the explosive growth of wireless telephone technology and
the liberalization of European telecommunications markets. Wireless growth will
lead to increased demand for Ericsson cellular phones and cellular
infrastructure equipment. In this area, we particularly like Ericsson's exposure
to digital/GSM technology, one of the faster growing segments of the wireless
industry. For Ericsson's traditional fixed line telephone business, European
telecommunications liberalization should lead to increased demand for their
products, as several new operators look to build their own networks.

FORENINGSSPARBANKEN AB
(SWEDEN, 0.7%)

ForeningsSparbanken is Sweden's leading retail bank. The bank resulted from the
1997 merger of Sparbanken and Foreningsbank, two of Sweden's largest banks. The
merger of the two banks has created large scope for cost reductions and
increased revenues, both of which should drive strong earnings growth in the
coming years. Cost reductions will come from branch closures and the integration
of back office activities. Increased revenues should result from the selling of
Sparbanken's diverse product offerings through the previously under-utilized
Foreningsbank branch network. An improving Swedish economy also supports a
positive outlook for the shares.

MERCK & CO.
(U.S., 2.1%)

Merck is a leading manufacturer of human and animal health care and specialty
products. From the standpoint of research productivity, relations with
regulators and high regard of the medical profession, Merck is one of the
leaders in the global drug sector. Merck is well positioned in a sector that
will clearly benefit from aging demographics around the world and the resulting
increase in demand for health products. Industry fundamentals, along with the
company's strong product pipeline, should ensure continued double-digit revenue
growth over the medium term.

- ----------
* Portfolio is subject to change.

<PAGE>

VAN ECK GLOBAL HARD ASSETS FUND
- --------------------------------------------------------------------------------

Dear Fellow Shareholder:

The hard asset market was unexpectedly difficult during the first half of the
year as concerns over a slowing global economy put pressure on most hard asset
sectors. In this environment, the Van Eck Global Hard Assets Fund declined 15.2%
during the first six months of 1998. Related indices also fell sharply: the
Goldman Sachs Commodity Index fell 18.3%, the Morgan Stanley Real Estate Index
fell 5.1% and gold shares declined 4.1% (MSCI Gold Mines Index). Several
energy-related indices fell precipitously, particularly the oil service and
exploration and production sectors in the U.S. and Canada, which declined over
20%.

REVIEW

During the first half of the year, most hard asset sectors suffered greatly from
fallout related to the Asian economic crisis. We anticipated some weakness, but
did not foresee the depth of the damage. Our efforts to hedge the natural
resource equity positions through short commodity positions were successful, but
not nearly sufficient to offset significant weakness in the equities. Finally,
our defensive position in U.S. REITs failed to provide protection.

Asia's economic crisis is being driven by the region's large debt overhang, the
lack of a solvent Asian banking system, and the deflationary transition from
command to market economies in China and Japan. Economic conditions were
exacerbated by IMF-administered austerity programs in some countries that served
to damage rather than repair their economies in the short term.

The weakening of the Asian economies, and thus demand from the region, had a
large impact on hard asset investments. Non-Japan Asia has played a large role
in the commodity markets in recent years. For example, Korea, China, India and
the ASEAN-4 (Indonesia, Malaysia, the Philippines and Thailand) accounted for
about 60% of the total growth in world petroleum consumption from 1992 to 1996
and 60-65% of world consumption growth in aluminum, zinc and lead. In addition,
since most commodities are priced in dollars, strength in the trade-weighted
value of the dollar has been a negative for commodity demand and pricing.
Finally, supply additions in many markets continued, putting further pressure on
prices.

Understanding this negative impact, we hedged a substantial portion of the
Fund's oil and metals exposure during the first half of the year and the Fund
profited. Oil prices fell about 20% and industrial metals prices fell about 12%
during the first half. Still, allocations to natural resource shares (40-50% of
the portfolio) proved to be too high.

In contrast to difficult conditions in other markets, North American real estate
appeared to offer strong underlying fundamentals and defensive characteristics,
and we therefore allocated over one-third of the portfolio to this sector.
However, U.S. real estate securities also declined. Despite low interest rates,
earnings and cash flow growth rates well in excess of the U.S. equity market,
multiples one-half and dividend yields four times that of the U.S. equity
market, the market focused on other concerns. These included assumptions that
real estate prices have peaked, that legislative changes would alter the REIT
structure and that additions to supply would result in dramatic overbuilding.

Our analysis suggests that these concerns are overdone and that exceptional
value can be found in real estate securities. While we agree that prices have
risen significantly, so have rents; therefore, the drop in property yields has
not been as dramatic as some believe. Furthermore, debt rates and mortgage
spreads have declined, preserving positive leverage. Finally, steadily
increasing demand due to a strong economy and strong job growth is positive. We
believe that the market is ignoring attractive internal growth prospects and
development opportunities that should enable the group to deliver earnings and
cash flow growth well in excess of the U.S. stock market. In regard to recent
legislative attacks on REITs, we believe reforms should have a negligible effect
on these securities going forward. Importantly, it appears that the downside in
the group is limited given the rise in asset values that underpins current stock
prices.

Pulp and paper stocks (approximately 7% of portfolio assets) ended the first
half unchanged as strong performance during the first quarter was taken back in
the second. Demand weakness in Asia was a key factor in subdued commodity
prices, as Asia accounts for approximately one-third of global paper
consumption. Significant consolidation activity in one of the most fragmented
industries helped buoy valuations during the period.

Industrial metals stocks, which comprise only about 5% of your portfolio,
declined during the first half. As in the forest products sector, cost cutting
and consolidation were key positives but were more than offset by declining
commodity prices on the back of weak Asian demand.

Gold (about 8% of your portfolio) has been trading in a tight range of about
$280-$310 an ounce throughout most of the year, as the majority of the negatives
appear to have been factored into prices last year.

<PAGE>

VAN ECK GLOBAL HARD ASSETS FUND
- --------------------------------------------------------------------------------

Notably, the recent pronouncements by the European Central Bank suggest that
gold will comprise 15% of its total reserves, in line with expectations.

THE OUTLOOK

Going forward, we will continue to focus on fundamentals, as always. We are
further concentrating the portfolio in the most promising sectors and have been
upgrading the quality of the Fund's stocks in the process. We feel that there
are good absolute and relative values to be realized in hard assets, and that
there are selective opportunities at current valuations. We are optimistic that
the Fund is well positioned for the second half of 1998.

We continue to favor real estate for the reasons detailed above, and have
allocated 39% of your Fund to this sector. Our real estate position is based on
conditions of strong pricing power and cheap valuations--both on a relative
basis versus the market and on an absolute basis--in select segments of the
North American real estate industry.

We believe oil prices are near a bottom. The recently announced OPEC production
cuts (of approximately 4% of global production) should be enough to swing the
market into a deficit situation in the fourth quarter and bring inventories down
to a level that has historically resulted in higher trading ranges than current
prices. In addition, there have been recent discussions of a "new alliance" of
oil producers who control 70% of the world's known oil reserves. The goal of
this alliance would be to boost oil prices by more than 50%. These factors,
combined with conservative demand estimates and an expected decrease in
inventory levels, should push oil prices up significantly by year end.

We are maintaining a selective (7%) allocation to pulp and paper stocks. We
believe recent restructurings are very healthy for the sector from a fundamental
standpoint. Further, downside risk should be moderated by prices that are near
costs of production, and long-term healthy supply/demand conditions should help
support equity valuations despite reduced demand from Asia.

Industrial metals prices are likely to remain subdued in the coming months due
to ongoing weakness in demand from Asia. We believe prices are near lows, but
that upside is limited in the short term. The third quarter may prove to be an
excellent opportunity to purchase equity holdings in this sector for long-term
appreciation and we may add to the position. Historically, purchases at current
valuation levels have been very rewarding.

With regard to gold, we anticipate that the tight trading range established in
the first half will be maintained for the remainder of the year, and we will
maintain our policy of buying dips. The key driver of gold, investment demand,
will be muted due to the lack of inflationary pressures in the world economy. On
the positive side, while we think that additional gold sales by European central
banks are likely or at least the threat of gold sales is likely, we believe that
factor has already been priced in.

The supply/demand situation in platinum group metals markets looks healthy from
an intermediate perspective. We believe Russian stockpiles of palladium have
been depleted to close to zero. We have several equity possibilities in this
sector that we are actively monitoring and will likely purchase as core
fundamental holdings during the summer. These are attractively valued growth
stories with restructuring benefits.

We appreciate your participation in the Global Hard Assets Fund and look forward
to helping you meet your investment goals in the future.

[PHOTO] [PHOTO]

/s/John C. Van Eck /s/Derek S. Van Eck
- -------------------------------- --------------------------------
JOHN C. VAN ECK DEREK S. VAN ECK
CHAIRMAN CO-PORTFOLIO MANAGER

[PHOTO]

/s/Kevin L. Reid
- -------------------------------
KEVIN L. REID
CO-PORTFOLIO MANAGER

July 27, 1998

<PAGE>

VAN ECK GLOBAL HARD ASSETS FUND
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98
- --------------------------------------------------------------------------------

AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
- --------------------------------------------------------------------------------
A shares-Life (since 11/2/94) 13.6% 15.1%
- --------------------------------------------------------------------------------
1 year (14.9)% (10.7)%
- --------------------------------------------------------------------------------
B shares-Life (since 4/24/96) 6.9% 8.6%
- --------------------------------------------------------------------------------
1 year (15.3)% (11.1)%
- --------------------------------------------------------------------------------
C shares-Life (since 11/2/94) 15.0% 15.0%
- --------------------------------------------------------------------------------
1 year (11.9)% (11.1)%
- --------------------------------------------------------------------------------

The Adviser is currently waiving certain or all expenses on the Fund. Had the
Fund incurred all expenses, investment returns would have been reduced.

* A shares: maximum sales charge = 4.75%
B shares: maximum contingent deferred sales charge = 5.0%
C shares: 1% redemption charge, 1st year

<PAGE>

VAN ECK GLOBAL HARD ASSETS FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 1998*
- --------------------------------------------------------------------------------

PATRIOT AMERICAN HOSPITALITY, INC.
(U.S., 3.0%)

Patriot American Hospitality is a hotel real estate investment trust (REIT). The
REIT is affiliated with Wyndham Hotel Corporation, a hotel management and
operating company. Shares of the Trust and operating company are paired and
trade as a unit.

STARWOOD HOTELS & RESORTS
(U.S., 2.9%)

Starwood Hotels & Resorts is a fully integrated owner/operator of full-
service hotels. It is comprised of Starwood Hotels & Resorts Trust, a REIT,
which owns primarily hotel assets, and Starwood Hotels & Resorts Worldwide,
Inc., a hotel management and operating company, which manages the hotels and
related assets. Starwood controls both the Westin and Sheraton brands, among
others.Shares of the Trust and operating company are paired and trade as a unit.

EQUITY RESIDENTIAL PROPERTIES TRUST
(U.S., 2.0%)

Equity Residential Properties is a real estate investment trust that owns and
operates multi-family properties containing apartment units. Its properties are
located in 34 states throughout the United States. The company is one of the
largest owners of apartments in the U.S.

STEEL DYNAMICS, INC.
(U.S., 2.0%)

Steel Dynamics owns and operates a flat-rolled steel mini-mill, as well as a
cold mill. The company is also constructing a plant for the manufacture of
direct reduced iron. Steel Dynamics's customers include intermediate steel
processors, steel service centers and end users such as manufacturers of
cold-rolled strip, oil and gas transmission pipe and mechanical and structural
tube.

MACK-CALI REALTY CORPORATION
(U.S., 1.9%)

Mack-Cali is a self-administered and self-managed real estate investment trust.
Along with its subsidiaries, the company develops, owns, manages and leases
primarily office and related properties. Mack-Cali's properties are located
predominantly in the Northeast and Southwest regions of the United States.

SMITH INTERNATIONAL, INC.
(U.S., 1.8%)

Smith International supplies products and services to the oil and gas
exploration and production industry. The company's products and services include
drilling and completion fluid systems, solids control equipment, waste
management services, three-cone drill bits, diamond drill bits, fishing
services, drilling tools, underreamers, sidetracking systems and liner hangers.

ASIA PULP & PAPER COMPANY LTD.
(SINGAPORE, 1.8%)

Asia Pulp & Paper, through its subsidiaries, is a vertically integrated pulp and
paper producer in Asia (except Japan) and throughout the world. The company
produces a variety of printing and writing paper, including coated and uncoated
freesheets, cut-sized photocopier paper, stationery and carbonless paper and a
range of tissue paper products.

ST. LAURENT PAPERBOARD INC.
(CANADA, 1.7%)

St. Laurent Paperboard supplies, manufactures and converts value-added
paperboard products throughout North America. The company owns and operates four
primary mills and owns ten converting plants, as well as 372,000 hectares of
forest land.

KCS ENERGY, INC.
(U.S., 1.5%)

KCS Energy is an independent energy company that acquires, explores for,
develops and produces natural gas and crude oil. The company operates in the
Rocky Mountain, mid-continent, and Gulf Coast regions of the United States. KCS
also owns oil and gas property interests in the Gulf of Mexico and Michigan's
Niagaran Reef trend.

CHIEFTAIN INTERNATIONAL, INC.
(CANADA, 1.4%)

Chieftain International explores for and produces oil and natural gas in the
United States, as well as in the United Kingdom sector of the North Sea and in
Libya. The company operates exploration offices in Dallas and New Orleans.
Chieftain's activities in the U.S. are primarily located in Utah and the Gulf of
Mexico.

- ----------
*Portfolio is subject to change.

<PAGE>

VAN ECK GLOBAL HARD ASSETS FUND
- --------------------------------------------------------------------------------

GEOGRAPHICAL WEIGHTINGS*
AS OF JUNE 30, 1998

Australia 1.5%
Canada 24.3%
France 0.9%
Italy 0.7%
Mexico 0.6%
Russia 1.1%
Singapore 1.8%
Sweden 1.0%
United Kingdom 1.1%
United States 53.2%
Cash/Equiv 13.8%

SECTOR WEIGHTINGS*
AS OF JUNE 30, 1998

Energy 27.0%
Industrial Metals 5.2%
Precious Metals 7.8%
Forest Products and Paper 6.5%
Real Estate 39.0%
Cash/Equiv. 13.8%
Other 0.7%

[ABOVE TABLES ARE REPRESENTED BY PIE CHARTS IN PRINTED PIECE]

*Weightings take "short" positions into account. (See "Schedule of POrtfolio
Investments," p. 38.)

<PAGE>

VAN ECK GLOBAL REAL ESTATE FUND
- --------------------------------------------------------------------------------

Dear Fellow Shareholder:

The first six months of 1998 were challenging for global real estate markets.
The Salomon Smith Barney World Property Index declined 9.3% in the first half of
the year, while U.S. REITs fell about 5%. In this environment, the Van Eck
Global Real Estate Fund significantly outperformed, due to both prudent
diversification and selective stock picking. Your Fund had a total return of
- -0.2% for the first six months of the year compared to an average return of
- -5.3% among 71 real estate funds tracked by Standard & Poor's Micropal, a mutual
fund evaluation service. We are pleased to report that the Fund ranked second*
among those funds for the period. The Global Real Estate Fund remains up 18.3%
since its inception on June 23, 1997.

NORTH AMERICA

At approximately 60% of total net assets, the U.S. remained the Fund's largest
country allocation, with office and hotel holdings the largest sector
weightings. As we headed into 1998, the environment remained favorable for most
commercial property sectors and fundamentals were strong, with earnings and cash
flow growth rates well in excess of the broader stock market. However, a number
of factors had a negative effect.

First, some investors became concerned about a potential real estate "bubble,"
as certain "trophy" buildings have recently traded hands at seemingly high
prices. In our opinion, while absolute values have risen, factoring in today's
higher rents and attractive interest rates, prices are still generally
reasonable. Second, many were worried about new supply flooding the market.
While it is true that construction starts have been up significantly, except for
select cities and property types, we are comfortable that landlord pricing power
will hold as a strong economy and job creation drive demand.

Adding to negative sentiment was press coverage of IRS reforms passed by
Congress that target "paired share" REITs (a specific REIT structure), which has
left many uninformed investors concerned that the REIT structure itself is
endangered. We believe that, going forward, these measures should have a
negligible effect on REITs and REIT shareholders as a whole.

Finally, many growth and income funds that had owned REITs as a defensive
measure in the second half of 1997 exited the group in pursuit of more
aggressive returns in other sectors of the market.

We believe that these factors have resulted in very attractive valuations and
thus have added to your Fund's U.S. holdings. We augmented positions in Patriot
American Hospitality and Starwood Hotels & Resorts, two of the largest paired
share REITs in the market, which were oversold and remain promising, in our
opinion.

We maintained your portfolio's overweight position in Canada with over 14% of
assets in Canadian holdings. We believe the Canadian real estate market offers
enormous potential at this time. Most of the positive factors prevalent in the
U.S. market have been present in Canada, with the added advantage that Canada's
real estate cycle has been one to three years behind the U.S. Therefore, we were
surprised that Canadian property companies declined significantly in the first
half of the year. Canadian investors focused on a potential slowdown as a result
of the Asia crisis (Canada is a large trading partner to Asia), as well as
pending bank mergers, both of which could dampen demand for real estate. Further
impacting returns to U.S. investors was a weak Canadian dollar, which has been
trading at record lows. As we are still positive on the outlook for the Canadian
property market given strong fundamentals, we selectively added to the
portfolio's Canadian positions (in stocks such as TrizecHahn and Bentall) as
prices declined.

EUROPE

At June 30, your Fund had 10.8% of net assets in Europe, including Finland,
France, Sweden and the UK. The broad European stock markets turned in
exceptional performance in the first half of the year due to rising GDP (Gross
Domestic Product) growth estimates, a generally favorable interest rate
environment and euphoria over economic and monetary union. Selective European
property stocks benefited from this favorable backdrop as well as from improving
real estate fundamentals on the Continent, and the European stocks held in your
portfolio achieved exceptional returns. A recently added position in Sponda (a
Finnish IPO - initial public offering), a substantial position in France's Accor
(a hotel stock benefiting from World Cup-related tourism) and several Swedish
holdings (which benefited primarily from corporate restructurings) all provided
strong returns for the Fund. Even in the UK, despite concerns of overheating
property markets and high property stock valuations, our holdings in Thistle
Hotels (which is said to be a merger candidate) and Millennium & Copthorne
(another hotel company) boosted Fund performance.

THE FAR EAST

Asia's financial crisis, which hit in the latter half of 1997, continues to be a
major problem. Even after a 35% decline in Asian property stocks last year,
these equities declined further in 1998 as recessions, shaky currencies and high
interest rates depressed demand. The Fund remained very underweighted in the Far
East,

<PAGE>

VAN ECK GLOBAL REAL ESTATE FUND
- --------------------------------------------------------------------------------

with a 3.1% total allocation to Australia and Japan. In Japan, there has been
continued soft real estate demand on the back of a weak economy and continued
government dithering, but we have maintained a small position while awaiting
signs of reforms that could stimulate the economy, and hence, demand for real
estate. We have hedged the majority of the Fund's yen exposure, eliminating the
downside risk from currency weakness. Your Fund's only Australian stock,
Westfield Holdings (which is the adviser to another Fund holding, Westfield
America), has been an exception among its peers, with significant positive
performance year to date.

THE OUTLOOK

The outlook for real estate investments in many regions of the world remains
positive. In the U.S., REITs are notably undervalued, both on a relative basis
to the broad market and on an absolute basis. U.S. property values are up only
about one-third as much as the S&P 500 over the last four years. Moreover, U.S.
REITs are trading at record dividend yield spreads to the S&P--investors
currently earn an average of 6% on REITs versus 1.5% on the S&P 500. FFO ("funds
from operations") multiples on REITs are near record lows compared to the S&P
500, while earnings growth rates for REITs are substantially higher. Further,
many REITs are trading at or near their underlying asset value, providing a
degree of downside protection. We believe that as investors reevaluate relative
value and their concerns over general market volatility grow, they will again
become buyers of real estate securities as a defensive move.

In the current environment, we plan to maintain the portfolio's overweight
position in the U.S. We plan to continue to emphasize the office and hotel
sectors and will remain underweighted in retail and residential stocks given
where we are in the U.S. real estate cycle.

In Canada, we believe fundamentals are intact and see even less risk of
overbuilding in the next one to two years than in the U.S. Additionally,
interest rates in Canada continue to be near record lows, providing support to
the generally more highly-leveraged Canadian property companies.

In Europe, we may moderately increase exposure. Improving economies and recently
recovering real estate markets are positives. Also of note, public real estate
companies on the Continent are becoming more focused and proactive, following
the U.S. REIT example. Valuations here are not cheap, however, and we will add
to these positions on a selective basis, focusing on corporate restructurings
and other unique opportunities.

Although we remain cautious on the region overall, we may selectively add to the
Far East allocation, given depressed stock prices. We believe that pent-up
demand for residential property in places like Hong Kong will present
opportunities for the Fund in the future. We plan to maintain the small Japanese
position, waiting for positive signs in the economy, but will continue to hedge
the yen.

We thank you for your participation in the Global Real Estate Fund and look
forward to helping you meet your investment goals in the future.

[PHOTO] [PHOTO]

/s/John C. Van Eck /s/Kevin L. Reid
- ---------------------------- ----------------------------
JOHN C. VAN ECK KEVIN L. REID
CHAIRMAN PORTFOLIO MANAGER

July 22, 1998

- ----------
*The Fund ranked seventh among 64 funds for the 1-year period ended 6/30/98 and
seventh among 64 funds since its inception on 6/23/97.

- --------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98
- --------------------------------------------------------------------------------

AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE** CHARGE
- --------------------------------------------------------------------------------
A shares-Life (since 6/23/97) 12.4% 17.9%
- --------------------------------------------------------------------------------
1 year 11.3% 16.8%
- --------------------------------------------------------------------------------
B shares-Life (since 10/9/97)+ (6.3)% (1.7)%
- --------------------------------------------------------------------------------
C shares-Life (since 10/9/97)+ (2.5)% (1.6)%
- --------------------------------------------------------------------------------

The Adviser is currently waiving certain or all expenses on the Fund. Had the
Fund incurred all expenses, investment returns would have been reduced.

**A shares: maximum sales charge = 4.75%
B shares: maximum contingent deferred sales charge = 5.0%
C shares: 1% redemption charge, 1st year
+ Not annualized

<PAGE>

VAN ECK GLOBAL REAL ESTATE FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 1998*
- --------------------------------------------------------------------------------

PATRIOT AMERICAN HOSPITALITY, INC.
(U.S., 5.5%)

SIGNATURE RESORTS, INC.
(U.S., 5.3%)

Signature Resorts recently changed its name to Sunterra Corporation (after June
30). The company owns and operates vacation ownership resorts. Its properties
include 85 resort locations around the world, with more than 200,000 owner
families. Sunterra, through its Marc Hotels & Resorts subsidiary, manages an
additional 22 resorts in Hawaii.

STARWOOD HOTELS & RESORTS
(U.S., 3.9%)

Starwood Hotels & Resorts is a fully integrated owner/operator of full-service
hotels. It is comprised of Starwood Hotels & Resorts Trust, a REIT, which owns
primarily hotel assets, and Starwood Hotels & Resorts Worldwide, Inc., a hotel
management and operating company, which manages the hotels and related assets.
Starwood controls both the Westin and Sheraton brands, among others. Shares of
the trust and the operating company are paired and trade as a unit.

SPONDA OYJ
(FINLAND, 3.7%)

Sponda is a real estate company that owns and manages commercial rental
properties primarily located in and around Helsinki and in the city of Tampere
in Finland. Sponda owns and manages the dominant retail mall in Scandinavia, in
addition to industrial buildings, a hotel and offices. The company is partly
owned by the Finnish government.

TRIZECHAHN CORPORATION
(CANADA, 2.9%)

TrizecHahn is a real estate development and operating company. The company,
through its wholly owned subsidiaries, acquires, develops, manages and owns
income-producing commercial real estate comprised primarily of office buildings
in the United States and Canada and super-regional retail centers in the U.S.
The company is also active outside North America, particularly in Europe.

CORNERSTONE PROPERTIES, INC.
(U.S., 2.8%)

Cornerstone Properties is a self-advised equity real estate investment trust.
The company invests in Class A office properties in prime central business
district locations and major suburban office markets in U.S. metropolitan areas.

BENTALL CORPORATION
(CANADA, 2.8%)

Bentall owns, manages and develops office properties. The company's real estate
portfolio consists of downtown and suburban office space in Vancouver, Seattle
and Southern California.

MACK-CALI REALTY CORPORATION
(U.S., 2.7%)

Mack-Cali is a self-administered and self-managed real estate investment trust.
Along with its subsidiaries, the company develops, owns, manages and leases
mostly office and related properties. Mack-Cali's properties are located
primarily in the Northeast and Southwest regions of the U.S.

ACCOR SA
(FRANCE, 2.6%)

Accor operates a network of 2,577 hotels, 3,000 travel agencies and 1,000
restaurants worldwide. Major brand names include "Ibis" hotels, "Hotel Sofitel"
and "Europcar." The company is the largest owner of hotel rooms in France and
one of the world's largest lodging companies.

PRENTISS PROPERTIES TRUST
(U.S., 2.6%)

Prentiss Properties is a self-administered and self-managed real estate
investment trust (REIT). The trust owns interests in office and industrial
properties in national markets.

- ------------------------
*Portfolio is subject to change.

<PAGE>

VAN ECK GLOBAL REAL ESTATE FUND
- --------------------------------------------------------------------------------

GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 1998

(The following table is represented by a pie chart in the printed report)

Australia 0.9%
Canada 14.7%
Finland 3.7%
France 3.1%
Japan 2.2%
Sweden 2.2%
United Kingdom 1.8%
United States 59.8%
Cash/Equiv. 11.6%

SECTOR WEIGHTINGS
AS OF JUNE 30, 1998

(The following table is represented by a pie chart in the printed report)

Diversified 18.4%
Hotels 20.8%
Office/Industrial 25.6%
Residential 6.1%
Retail 9.6%
Specialty 7.9%
Cash/Equiv. 11.6%

<PAGE>

VAN ECK GOLD/RESOURCES FUND
- --------------------------------------------------------------------------------

Dear Fellow Shareholder:

During the first six months of 1998, after rising from a January low of $278.50
an ounce to $314.50 in April, gold closed on June 30 at $297.00 an ounce.

Perceptions of Asian currency and banking conditions and their effect on global
economic conditions were the primary influences on the gold price during the
period. As currencies stabilized early in the year, deflationary concerns abated
and gold rose to its April high. When pressure resumed on both emerging market
currencies and the Japanese yen, funds flowed into the U.S. dollar and gold
retraced some of its earlier gains. Gold-mining shares generally tracked the
gold price, reaching their highs in mid-April and their January lows again in
June. The Van Eck Gold/Resources Fund had a total return of -7.2% for the first
half of the year, versus an average return of -8.9% among the 41 gold funds
tracked by Standard & Poor's Micropal, a mutual fund evaluation service.

GOLD-MINING SHARES

Gold shares, while achieving solid performance in the first quarter, came under
pressure in the second quarter as bullion declined from its April highs. In this
low gold price environment, companies have been slashing exploration budgets and
looking to add value through acquisitions or mergers. The net effect of this
activity has been to form fewer but larger gold-mining companies that are able
to curtail high-cost operations and gain economies of scale. Gold/Resources has
benefited from this activity, as some of the best performers in the first half
were acquisition-related.

The Australian producers recorded a 3.0% increase in the first half, as measured
by the Australian Stock Exchange Gold and Silver Index (in U.S. dollar terms).
The superior performance of the Australian sector was due to gains of between
16% and 18% from Acacia, Delta and Lihir Gold. Acacia and Delta had excellent
operating and exploration results from their Sunrise Dam project in western
Australia. Lihir Gold has been managing an exemplary start-up at its mine in
Papua New Guinea, which Canadian Placer Dome has shown an interest in acquiring.
These companies comprise 21% of the Australian portion of the Fund. The
Australian sector has been reduced to 10.5% of total net assets as a result of
the acquisition of Australian producer Plutonic Resources by U.S.-based
Homestake Mining.

North American shares, as measured by the Toronto Stock Exchange Gold and Silver
Index and the Philadelphia Gold and Silver Index (XAU), declined 7.1% and 3.3%,
respectively. While most North American stocks were down, the market looked
favorably on the Homestake/Plutonic acquisition, as Homestake was up 10.2% in
the first half. Homestake has announced a bid for another low-cost producer,
Prime Resources. Barrick gained 3% as it continued to expand its low-cost
operations, and Kinross performed well following its merger with Amax Gold. As
of June 30, 1998, Gold/Resources was 70.7% invested in North America.

THE OUTLOOK

A. POSSIBLE GOLD PRICE RECOVERY

(1) IMPROVED MARKET SENTIMENT

The co-conspirators in driving the gold price down during the last two years
have been the speculative funds and certain central banks. The latter have
provided the necessary market liquidity and their actions are responsible for
the "fear factor" that has encouraged the short selling. We believe the negative
sentiment is in the process of turning positive.

At the June Financial Times World Gold Conference in Barcelona, Spain, a central
bank speaker from the Austrian National Bank stated that "public confidence in
central banks is largely based on the idea that central banks are not primarily
income-driven institutions, but are responsible for maintaining confidence and
trust in the currency.... Psychology is, and should be, an important factor in
the holding of gold by central banks. The fact that gold is no one's liability
is one of the pillars of public confidence." The Bank of France stated, "The
main holders of gold had not changed their view on the need for gold to make up
a part of their reserves as a guarantee in the financial system. Neither the
United States, the Bundesbank, the Bank of Italy, nor of course, the Bank of
France, plans to sell the precious metal."

John Willson, president of Placer Dome Inc., Canada's second-largest gold
producer, delivered a passionate denunciation of central bank activity at the
conference. Since 1996, central banks had earned less than $1 billion from
lending gold to the market but had caused a $100 billion drop in the value of
their reserves. Brett Kebble, chairman of the Gold and Uranium Division of JCI
Limited, suggested that in the future, central banks were likely to change their
approach to gold. Another speaker added that they would become stabilizing
forces in the market rather than "going on the rampage" by selling some of their
gold reserves in an uncoordinated way. Bobby Godsell, chief executive officer of
Anglogold Limited, the world's largest gold-mining company, said that the
leading gold companies are "set fair for the day when the bull market
returns--as return it must."

<PAGE>

VAN ECK GOLD/RESOURCES FUND
- --------------------------------------------------------------------------------

from gold sales since the bank's operational framework provides that
"foreign assets which are not pooled will be subject to the guidelines issued by
the ECB."

(2) REVERSION TO MEAN IN RELATIONSHIP TO STOCKS

The extraordinary economic expansion in the United States that began in 1990 and
the corresponding stock market boom have, in our opinion, partially been
stimulated by a large increase in private debt. Monetary policy is based on
"maximum sustainable economic growth" and "price stability" of about 2% average
annual increase in consumer prices. Policy has not evidently been based on
controlling excessive debt expansion. The current private sector's (household
and corporate) financial deficit, financed primarily by borrowing, began in 1996
and is currently running at a record 3.3% of gross domestic product. The private
sector is normally in surplus. No one knows how long this rapid debt creation
will last, but we believe it is not sustainable for long. Common stock earnings
are also under pressure from tight labor markets and the economic and financial
troubles of Asian economies. Gold is one of the few assets that is negatively
correlated with stock prices. It seems to us that the Dow Jones Industrial
Average is overvalued and gold shares are undervalued at present. When and if
the current stock market cycle has a major correction, it is our judgment that
the ratio of the Dow to the price of gold, now about 31, will turn down and
revert to its mean. Gold may once again outperform the Dow.

B. POSSIBLE GOLD BULL MARKET

The BIS' latest annual report said that the markets might "lose patience with
the accumulation of U.S. external debt and drive the dollar sharply lower." The
Chairman of the Federal Reserve System recently said that while U.S. monetary
policy must consider its effect on foreign financial markets, it must ultimately
aim at optimal performance of the U.S. economy. The weakness of the
international monetary system is the fact that each country, including the
United States, has its own business cycle and fiscal and monetary needs and
policies which differ, and that competitive devaluations are resorted to when
problems arise. No one knows the future, but it is possible to visualize a
recession in the United States in which, as Barry Bosworth of the Brookings
Institution bluntly stated, "We say to hell with the exchange rate. We lower
interest rates, and we run an expansionary fiscal policy. We focus on the
domestic economy and get it rolling again." Under these circumstances, it is
difficult to believe global investors would still retain confidence in

- --------------------------------------------------------------
(The following table represents a graph in the printed report)

FOREIGN HOLDINGS OF U.S. TREASURIES; U.S. DOLLAR INDEX

Billions U.S.
of Dollar
Dollars Index
------- -------
1988_____329.94 88.29
_________341.27 95.64
_________340.94 97.91
_________353.84 92.71
1989_____368.03 98.29
_________360.8 102.32
_________386.12 98.64
_________423.8 93.2
1990_____415.74 93.59
_________421.33 91.42
_________434.21 85.99
_________450.29 83.44
1991_____455.18 91.7
_________465.1 96.26
_________469.52 89.78
_________496.6 83.71
1992_____512.2 89.85
_________533.69 83.81
_________538.28 81.45
_________548.08 92.43
1993_____562.52 92.06
_________567.9 93.68
_________590.25 92.98
_________625.07 96.93
1994_____635.88 93.17
_________634.7 89.59
_________656.84 87.92
_________660.1 88.85
1995_____700.24 82.11
_________755.92 81.78
_________813.81 84.3
_________860.89 84.77
1996_____929.49 86.59
_________957.76 87.83
_________1026.63 88.1
_________1109.51 88.23
1997_____1180.6 94.53
_________1213.59 95.77
_________1256.61 97.47
_________1265.56 99.81
1998_____1275.58 101.54

_____ foreign holdings of U.S. public debt ----- U.S. dollar index
(estimated) (vs. a basket of
Source:DATASTREAM other currencies)

(The following table represents a mountain chart in the printed report)

NET U.S. GOVERNMENT INCOME PAYMENTS TO FOREIGN INVESTORS

Billions
Year of Dollars
--------- ------------
Q4 70 117
1971 277
Q2 71 445
Q3 71 678
Q4 71 938
1972 1,225
Q2 72 1,495
Q3 72 1,654
Q4 72 1,818
1973 2,023
Q2 73 2,330
Q3 73 2,649
Q4 73 2,900
1974 3,007
Q2 74 3,016
Q3 74 3,056
Q4 74 3,188
1975 3,438
Q2 75 3,505
Q3 75 3,512
Q4 75 3,430
1976 3,212
Q2 76 3,149
Q3 76 3,120
Q4 76 3,188
1977 3,234
Q2 77 3,346
Q3 77 3,519
Q4 77 3,917
1978 4,625
Q2 78 5,363
Q3 78 6,117
Q4 78 6,831
1979 7,537
Q2 79 8,156
Q3 79 8,600
Q4 79 8,827
1980 9,103
Q2 80 9,252
Q3 80 9,442
Q4 80 10,122
1981 10,776
Q2 80 11,881
Q3 81 12,970
Q4 81 13,633
1982 14,130
Q2 82 14,224
Q3 82 14,784
Q4 82 15,164
1983 15,027
Q2 83 14,946
Q3 83 14,456
Q4 83 14,161
1984 14,389
Q2 84 14,532
Q3 84 15,168
Q4 84 15,928
1985 16,677
Q2 85 17,479
Q3 85 17,595
Q4 85 17,631
1986 17,690
Q2 86 17,858
Q3 86 17,811
Q4 86 18,213
1987 18,772
Q2 87 19,263
Q3 87 20,220
Q4 87 20,907
1988 20,332
Q2 88 21,652
Q3 88 23,504
Q4 88 25,013
1989 28,669
Q2 89 30,708
Q3 89 31,614
Q4 89 32,711
1990 32,611
Q2 90 32,312
Q3 90 32,604
Q4 90 30,259
1991 30,014
Q2 91 30,220
Q3 91 30,317
Q4 91 32,848
1992 33,164
Q2 92 32,814
Q3 92 32,413
Q4 92 31,968
1993 32,194
Q2 93 32,539
Q3 93 33,259
Q4 93 34,269
1994 35,032
Q2 94 36,276
Q3 94 37,811
Q4 94 40,071
1995 43,034
Q2 95 46,187
Q3 95 49,818
Q4 95 52,657
1996 54,421
Q2 96 56,267
Q3 96 58,762
Q4 96 62,757
1997 68,237
Q2 97 74,589
Q3 97 80,085
Q4 97 83,937
1998 86,239

(primarily interest on Treasuries; $ Billion; annual rates)

24
<PAGE>

VAN ECK GOLD/RESOURCES FUND
- --------------------------------------------------------------------------------

the dollar. Once again, gold may accordingly become the asset of choice. In our
opinion, such an investment demand may well culminate in a new bull market for
gold.

INVESTMENT POLICY - CONCLUSION

It has always been our recommendation that gold is a special asset class, a form
of cash reserve, which should be prudently held in modest amounts in investment
portfolios to hedge against serious unpredictable economic, financial and
monetary crises. This policy has been very successful in protecting portfolios
at various times, especially in the 1970s, but, of course, not in the last few
years when the objective has been growth rather than the protection of capital.
However, it is reported that at least 200 tonnes of gold are currently held by
leading pension funds. In view of the fact that gold is historically undervalued
and in view of our opinion that the two trends discussed above (possible
excessive private debt creation and never-ending balance of payments deficits)
are eventually unsustainable and growing in risk, we believe now more than ever
that gold and gold-share portfolio diversification may again serve their purpose
of protecting overall investment portfolios.

We appreciate your participation in the Gold/Resources Fund and look forward to
helping you meet your investment goals in the future.

/s/John C. Van Eck
- ------------------
JOHN C. VAN ECK
CHAIRMAN

July 27, 1998

- -------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98

AFTER MAXIMUM
AVERAGE ANNUAL SALES CHARGE BEFORE SALES
TOTAL RETURN OF 5.75% CHARGE
- --------------------------------------------------------------
A shares--Life (since 2/15/86) 0.0% 0.5%
- --------------------------------------------------------------
10 years (5.2)% (4.6)%
5 years (12.3)% (11.2)%
1 year (35.0)% (31.1)%
- --------------------------------------------------------------
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.

- ---------
GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 1998

Australia 10.5%
Canada 39.6%
Ghana 2.0%
Peru 0.9%
United Kingdom 1.1%
United States 31.1%
Cash/Equiv. 14.8%

<PAGE>

VAN ECK INTERNATIONAL INVESTORS GOLD FUND
- --------------------------------------------------------------------------------

Dear Fellow Shareholder:

In the first six months of 1998, after rising from a January low of $278.50 an
ounce to $314.50 in April, gold closed on June 30 at $297.00 an ounce.

Perceptions of Asian currency and banking conditions and their effect on global
economic conditions were the primary influences on the gold price during the
period. As currencies stabilized early in the year, deflationary concerns abated
and gold rose to its April high. When pressure resumed on both emerging market
currencies and the Japanese yen, funds flowed into the U.S. dollar, and gold
retraced some of its earlier gains. Gold-mining shares generally tracked the
gold price, reaching their highs in mid-April and testing their January lows
again in June. The Van Eck International Investors Gold Fund had a total return
of -10.3% for the first half of the year.

DIVIDEND NEWS

A quarterly dividend of $.01 a share was paid on June 30, 1998 to shareholders
of record on June 26, 1998. You should have received a check or, if you
participate in the dividend reinvestment plan, a statement showing the number of
shares purchased for your account at net asset value on the dividend
reinvestment date, June 30, 1998.

GOLD-MINING SHARES

Gold shares, after achieving solid performance in the first quarter, came under
pressure in the second quarter as bullion declined from its April highs. In this
low gold price environment, companies have been slashing exploration budgets and
looking to add value through acquisitions or mergers. The net effect of this
activity has been to form fewer but larger gold-mining companies that are able
to curtail high-cost operations and gain economies of scale. International
Investors has benefited from this activity, as some of the best performers in
the first half were acquisition-related.

The Australian producers recorded a 3.0% increase in the first half, as measured
by the Australian Stock Exchange Gold and Silver Index (in U.S. dollar terms).
The superior performance of the Australian sector was due to gains of between
16% and 18% from Acacia, Delta and Lihir Gold. Acacia and Delta had excellent
operating and exploration results from their Sunrise Dam project in western
Australia. Lihir Gold has been managing an exemplary start-up at its mine in
Papua New Guinea, which Canadian Placer Dome has shown an interest in acquiring.
These companies comprise 25% of the Australian portion of the Fund. The
Australian sector has been reduced to 3.7% of total net assets as a result of
the acquisition of Australian producer Plutonic Resources by U.S.-based
Homestake Mining.

North American shares, as measured by the Toronto Stock Exchange Gold and Silver
Index and the Philadelphia Gold and Silver Index (XAU), declined 7.1% and 3.3%,
respectively. While most North American stocks were down, the market looked
favorably on the Homestake/Plutonic acquisition, as Homestake was up 10.2% in
the first half. Homestake has announced a bid for another low-cost producer,
Prime Resources. Barrick gained 3% as it continued to expand its low-cost
operations and Kinross performed well following its merger with Amax Gold. As of
June 30, 1998, International Investors was 43.7% invested in North America.

South African gold shares declined 6.7% (in U.S. dollars) in the first half, as
gauged by the Johannesburg Stock Exchange Gold Index. The industry continues to
consolidate in order to reduce costs and achieve greater operating and
exploration efficiencies. The completion of the Anglogold merger resulted in the
amalgamation of seven companies into the largest gold producer in the world at
approximately seven million ounces per year. Additionally, the sale of Evander
to Harmony was seen as accretive, as each registered gains of 17.3% and 80.6%,
respectively. The Fund was 25.9% invested in South Africa as of June 30.

THE OUTLOOK

A. POSSIBLE GOLD PRICE RECOVERY

(1) IMPROVED MARKET SENTIMENT

<PAGE>

VAN ECK INTERNATIONAL INVESTORS GOLD FUND
- --------------------------------------------------------------------------------

In early July, the European Central Bank announced that 15% of its members'
reserves would be held in gold. Most of Europe's gold reserves will continue to
be held by the individual member nations. Once the European Central Bank is
functioning, member nations will be constrained from gold sales since the bank's
operational framework provides that "foreign assets which are not pooled will be
subject to the guidelines issued by the ECB."

(2) REVERSION TO MEAN IN RELATIONSHIP TO STOCKS

The extraordinary economic expansion in the United States since 1990 and
corresponding stock market boom have, in our opinion, partially been stimulated
by a large increase in private debt. Monetary policy is based on "maximum
sustainable economic growth" and "price stability" of about 2% average annual
increase in consumer prices. Policy has not evidently been based on controlling
excessive debt expansion. The current private sector's (household and corporate)
financial deficit, financed primarily by borrowing, began in 1996 and is
currently running at a record 3.3% of gross domestic product. The private sector
is normally in surplus. No one knows how long this rapid debt creation will
last, but we believe it is not sustainable for long. Common stock earnings are
also under pressure from tight labor markets and the economic and financial
troubles of Asian economies. Gold is one of the few assets that is negatively
correlated with stock prices. It seems to us that the Dow Jones Industrial
Average is overvalued and gold shares are undervalued at present. When and if
the current stock market cycle has a major correction, it is our judgment that
the ratio of the Dow to the price of gold, now about 31, will turn down and
revert to its mean. Gold may once again outperform the Dow.

B. POSSIBLE GOLD BULL MARKET

Current economic imbalances are, if not reversed, possibly leading
to a breakdown of the international monetary system and a future dollar crisis,
in our opinion. Past currency crises and now the Asian crisis have demonstrated
the fundamental instability in the currency markets. At present, the dollar has
replaced gold as global investors' principal store of value in times of fear and
uncertainty. Over the past fifteen years the United States' cumulative current
account deficit has climbed to approximately $1.7 trillion, of which $1 trillion
represents mainly net short-term capital inflows and $0.7 trillion are foreign
accumulated official monetary reserves. The trend toward growing U.S. trade
investment account and current balance of payment deficits shows no signs of
reversal (see chart below). By the turn of the century, U.S. net overseas debt
could amount to 25% of gross domestic product. Interest payments on these debts
cumulate (see chart on next page). Eventually, a future crisis may arise from a
reversal of foreign confidence in investing in the dollar. The Bank for
International Settlements (BIS) and the OECD both recently expressed their
concerns about this danger. The BIS' latest annual report said that the markets
might "lose patience with the accumulation of U.S. external debt and drive the
dollar sharply lower." The Chairman of the Federal Reserve System recently said
that while U.S. monetary policy must consider its effect on foreign financial
markets, it must ultimately aim at optimal performance of the U.S. economy. The
weakness of the international monetary system is the fact that each country,
including the United States, has its own business cycle and fiscal and monetary
needs and

[THE FOLLOWING IS REPRESENTED BY A GRAPH IN PRINTED PIECE]

Foreign Holdings
foreign holdings of U.S. Treasuries;
of U.S. public U.S. Dollar Index
debt (estimated) (VS. a basket of
Billions of Dollars other currencies)

1988 329.94 88.29
341.27 95.64
340.94 97.91
353.84 92.71
1989 368.03 98.29
360.8 102.32
386.12 98.64
423.8 93.2
1990 415.74 93.59
421.33 91.42
434.21 85.99
450.29 83.44
1991 455.18 91.7
465.1 96.26
469.52 89.78
496.6 83.71
1992 512.2 89.85
533.69 83.81
538.28 81.45
548.08 92.43
1993 562.52 92.06
567.9 93.68
590.25 92.98
625.07 96.93
1994 635.88 93.17
634.7 89.59
656.84 87.92
660.1 88.85
1995 700.24 82.11
755.92 81.78
813.81 84.3
860.89 84.77
1996 929.49 86.59
957.76 87.83
1026.63 88.1
1109.51 88.23
1997 1180.6 94.53
1213.59 95.77
1256.61 97.47
1265.56 99.81
1998 1275.58 101.54

Source: DATASTREAM

27
<PAGE>

VAN ECK INTERNATIONAL INVESTORS GOLD FUND
- --------------------------------------------------------------------------------

[THE FOLLOWING IS REPRESENTED BY A GRAPH IN THE PRINTED PIECE]

Net U.S.
Government
Income
Payments to
Foreign Investors
Billions of
Year Dollars
------- -------------
Q4 70 117
1971 277
Q2 71 445
Q3 71 678
Q4 71 938
1972 1225
Q2 72 1495
Q3 72 1654
Q4 72 1818
1973 2023
Q2 73 2330
Q3 73 2649
Q4 73 2900
1974 3007
Q2 74 3016
Q3 74 3056
Q4 74 3188
1975 3438
Q2 75 3505
Q3 75 3512
Q4 75 3430
1976 3212
Q2 76 3149
Q3 76 3120
Q4 76 3188
1977 3234
Q2 77 3346
Q3 77 3519
Q4 77 3917
1978 4625
Q2 78 5363
Q3 78 6117
Q4 78 6831
1979 7537
Q2 79 8156
Q3 79 8600
Q4 79 8827
1980 9103
Q2 80 9252
Q3 80 9442
Q4 80 10122
1981 10776
Q2 80 11881
Q3 81 12970
Q4 81 13633
1982 14130
Q2 82 14224
Q3 82 14784
Q4 82 15164
1983 15027
Q2 83 14946
Q3 83 14456
Q4 83 14161
1984 14389
Q2 84 14532
Q3 84 15168
Q4 84 15928
1985 16677
Q2 85 17479
Q3 85 17595
Q4 85 17631
1986 17690
Q2 86 17858
Q3 86 17811
Q4 86 18213
1987 18772
Q2 87 19263
Q3 87 20220
Q4 87 20907
1988 20332
Q2 88 21652
Q3 88 23504
Q4 88 25013
1989 28669
Q2 89 30708
Q3 89 31614
Q4 89 32711
1990 32611
Q2 90 32312
Q3 90 32604
Q4 90 30259
1991 30014
Q2 91 30220
Q3 91 30317
Q4 91 32848
1992 33164
Q2 92 32814
Q3 92 32413
Q4 92 31968
1993 32194
Q2 93 32539
Q3 93 33259
Q4 93 34269
1994 35032
Q2 94 36276
Q3 94 37811
Q4 94 40071
1995 43034
Q2 95 46187
Q3 95 49818
Q4 95 52657
1996 54421
Q2 96 56267
Q3 96 58762
Q4 96 62757
1997 68237
Q2 97 74589
Q3 97 80085
Q4 97 83937
1998 86239

(primarily interest on Treasuries; $Billions, annual rates)

Source: DATASTREAM

policies which differ, and that competitive devaluations are resorted to when
problems arise. No one knows the future, but it is possible to visualize a
recession in the United States in which, as Barry Bosworth of the Brookings
Institution bluntly stated, "We say to hell with the exchange rate. We lower
interest rates, and we run an expansionary fiscal policy. We focus on the
domestic economy and get it rolling again." Under these circumstances, it is
difficult to believe global investors would still retain confidence in the
dollar. Once again, gold may accordingly become the asset of choice. In our
opinion, such an investment demand may well culminate in a new bull market for
gold.

INVESTMENT POLICY - CONCLUSION

It has always been our recommendation that gold is a special asset class, a form
of cash reserve, which should be prudently held in modest amounts in investment
portfolios to hedge against serious unpredictable economic, financial and
monetary crises. This policy has been very successful in protecting portfolios
at various times, especially in the 1970s, but, of course, not in the last few
years when the objective has been growth rather than protection of capital.
However, it is reported that at least 200 tonnes of gold are currently held by
leading pension funds. In view of the fact that gold is historically undervalued
and in view of our opinion that the two trends discussed above (possible
excessive private debt creation and never-ending balance of payments deficits)
are eventually unsustainable and growing in risk, we believe now more than ever
that gold and gold-share portfolio diversification may again serve their purpose
of protecting overall investment portfolios.

We appreciate your participation in the International Investors Gold Fund and
look forward to helping you meet your investment goals in the future.

/s/John C. Van Eck
- ------------------
JOHN C. VAN ECK
CHAIRMAN

July 27, 1998

- ------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/98

AFTER MAXIMUM
AVERAGE ANNUAL SALES CHARGE BEFORE SALES
TOTAL RETURN OF 5.75% CHARGE
- ------------------------------------------------------------
A shares-Life (since 2/10/56) 9.3% 9.4%
- ------------------------------------------------------------
20 years 8.4% 8.7%
15 years (1.8)% (1.4)%
10 years (3.5)% (2.9)%
5 years (12.4)% (11.4)%
1 year (34.6)% (30.6)%
- ------------------------------------------------------------

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.

<PAGE>

VAN ECK INTERNATIONAL INVESTORS GOLD FUND
- --------------------------------------------------------------------------------

GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 1998

Australia 3.7%
Canada 21.6%
Netherlands 1.9%
Options 0.1%
Peru 0.1%
South Africa 25.9%
United Kingdom 1.1%
United States 22.1%
Cash/Equiv. 23.5%

<PAGE>

VAN ECK U.S. GOVERNMENT MONEY FUND
- --------------------------------------------------------------------------------

Dear Fellow Shareholder:

The Van Eck U.S. Government Money Fund continues to meet its objectives as an
investment that provides a high degree of safety and daily liquidity. It also
serves to assist investors who wish to employ our exchange privileges or use our
checkwriting privileges. The Fund's seven-day average yield was 4.31%* and its
30-day average yield was 4.24% on June 30, 1998. The Fund's total net assets
were $89.5 million as of June 30, 1998.

During the first half of 1998, yields on three-month Treasury bills averaged
5.13%, peaking at 5.35% in early January, and dipping to 4.97% in early May and
early June. The Federal Reserve continued to hold the fed funds target rate
steady at 5.50% during this period. From mid-January through the end of
February, T-bill rates crept higher as the domestic economy continued to
accelerate and the Asian crisis looked as if it were subsiding. From March
through the end of June, Treasury bill rates traded in the 5.00% - 5.25% range,
trading towards the lower end of the range as Asian financial turmoil worsened
and began to spread to other emerging market regions. Rates rose to the upper
end of the range on concerns that the robust domestic economy and tight labor
market would lead to an acceleration in wage pressures which would require the
Fed to tighten.

The Fund's investment strategy continues to emphasize safety by investing in
short-term United States Treasury obligations and repurchase agreements
collateralized by U.S. Treasury obligations. These obligations are the most
conservative money market investments and offer the highest degree of security
since they are backed by the U.S. Government. Of course, shares of the Fund are
not guaranteed by the U.S. Government and there can be no guarantee that the
price of the Fund's shares will not fluctuate.** Repurchase agreements allow us
to take advantage of higher yields without significantly increasing risk. The
Fund's repurchase agreements are collateralized 102% by U.S. Treasury
obligations with maturities of less than five years. In addition, your Fund has
possession of the collateral.

We plan to continue our general investment strategy, keeping an equal weighting
between U.S. Treasury bills and repurchase agreements over time. However,
repurchase agreements currently offer an attractive yield pick-up over Treasury
bills and we will look to place more emphasis on repurchase agreements while
this scenario exists.

The U.S. Government Money Fund offers daily liquidity and checkwriting
privileges, providing the kind of convenient access to cash not available in
many other types of investments. The Fund also provides an excellent base from
which investors may transfer money into or out of other members of the Van Eck
and Van Eck/Chubb Family of Funds.***

We appreciate your participation in the U.S. Government Money Fund and look
forward to helping you meet your investment objectives in the future.

/s/John C. Van Eck /s/Gregory F. Krenzer
- ------------------ ---------------------
JOHN C. VAN ECK GREGORY F. KRENZER
CHAIRMAN PORTFOLIO MANAGER

July 14, 1998

- --------------------------------------------------------------------------------
* Performance data represents past performance and is not indicative of
future results.
** There can be no assurance that the Fund will be able to maintain a stable
net asset value of $1.00 per share.
*** Currently, there is no charge imposed on exchanges or limits as to frequency
of exchanges for this Fund. However, shareholders are limited to six
exchanges per calendar year for other Van Eck and Van Eck/Chubb Funds. The
Funds reserve the right to modify or terminate the terms of the Exchange
Privilege.

<PAGE>

ASIA DYNASTY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
CHINA: 1.0%
230,000 Shanghai Dazhong Taxi $ 125,580
-----------
HONG KONG: 43.0%
77,000 Cheung Kong (Holdings) Ltd. 378,689
61,000 Cheung Kong Infrastructure Ltd. 115,354
138,000 China Telecommunications 239,590
170,000 CLP Holdings Limited 774,622
88,000 Hang Seng Bank Limited 497,535
250,000 Henderson Investment Ltd. 129,889
420,000 Hong Kong and China Gas Co. Ltd.
(Warrants expiring 9/30/99) 1,437
138,000 Hongkong Electric Holdings Ltd. 427,520
304,000 Hong Kong Telecommunications Ltd. 570,957
44,400 HSBC Holdings plc 1,086,072
11,900 Hutchison Whampoa Limited 628,256
70,000 IDT International Ltd.
(Warrants expiring 9/30/98) 6,325
250,000 Kumagai Gumi Finance Ltd. 242,813
7,500,000 Societe Generale Acceptance N.V.
(Warrants expiring 8/28/98) 304,957
33,000 Sun Hung Kai Properties Ltd. 140,145
35,000 Swire Pacific Limited - A 132,148
-----------
5,676,309
-----------
INDIA: 2.4%
10,300 ITC Ltd. 158,387
2,500 NIIT Ltd. 83,756
8,000 Satyam Computer Services Ltd. 78,302
-----------
320,445
-----------
MALAYSIA: 4.6%
12,500 Commerce Asset-Holding Bhd
(Warrants expiring 5/30/02) 967
55,000 Golden Hope Plantations Bhd 50,544
41,000 Kuala Lumpur Kepong Bhd 66,433
32,000 Malakoff Bhd - A 59,202
84,000 Malayan Banking Bhd 84,914
17,000 Rothmans of Pall Mall "B" 118,198
134,000 Telekom Malaysia Bhd 226,845
-----------
607,103
-----------
PHILIPPINES: 3.1%
21,000 Manila Electric Co. "B" 55,395
8,000 Philippine Long Distance
Telephone Co. 182,254
82,000 San Miguel Corp. "B" 108,153
400,000 SM Prime Holdings Inc. 63,309
-----------
409,111
-----------
SINGAPORE: 7.9%
23,000 City Development Limited - A 64,370
25,000 DBS Bank "F" 180,181
39,080 Overseas-Chinese Banking
Corp., Ltd. "F" 133,240
75,000 Singapore Airlines Ltd. "F" 351,319
28,582 Singapore Press Holdings Ltd. 191,507
38,000 United Overseas Bank Ltd. 118,292
-----------
1,038,909
-----------

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
SOUTH KOREA: 2.7%
29,000 Medison Co. Limited $ 255,572
1,000 S1 Corporation 101,238
-----------
356,810
-----------
TAIWAN: 15.7%
USD 500,000 A.D.I. Corp. Bond 7.00% 3/09/01 431,250
26,431 Macronix International
Company Ltd. (ADR) 232,923
127,669 Taiwan Index Fund
(Liquidity Shares) 1,411,636
-----------
2,075,809
-----------
THAILAND: 4.6%
20,000 Ban Pu Coal Co. Ltd. "F" 32,779
95,000 Bangkok Bank Public Co. Ltd. "O" 98,159
45,000 PTT Exploration and Production
Public Company Limited 342,043
185,000 Thai Farmers Bank Public Co. Ltd. 134,026
-----------
607,007
-----------
NO. OF
CONTRACTS PUT OPTION PURCHASED: 0.6%
- -------------------------------------------------------------------------------
124,500 Japanese Yen (Strike @ 160,
expiring 12/15/98) (Cost: $150,000) 78,435
-----------

TOTAL STOCKS AND OTHER INVESTMENTS: 85.6%
(Cost: $13,542,655) 11,295,518

OTHER ASSETS LESS LIABILITIES: 14.4% 1,903,325
-----------
NET ASSETS: 100% $13,198,843
===========

- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.
GLOSSARY:
ADR -- American Depositary Receipt
"F" -- Foreign Registry

SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
- ----------- ------
Agribusiness 0.4%
Air Transportation 2.7%
Banking 20.1%
Coal 0.2%
Conglomerates 7.8%
Consumer Services 0.8%
Engineering &
Construction 2.7%
Foreign Government
Bonds 10.7%
Information Systems 3.0%
Medical Products
and Supplies 1.9%

Oil & Gas Exploration 2.6%
Option 0.6%
Publishing 1.5%
Real Estate 6.5%
Semiconductors 3.3%
Telecommunications 9.2%
Tobacco 0.9%
Transportation 1.0%
Utilities 9.7%
Other assets
less liabilities 14.4%
-----
100.0%
=====

See Notes to Financial Statements

31
<PAGE>

EMERGING MARKETS GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
ARGENTINA: 2.8%
3,057 Banco del Suquia S.A. $ 6,114
3,057 Banco del Suquia S.A.
(Negotiable Obligations) 329
830 Banco Frances del Rio de la Plata
S.A. (ADR) 19,038
750 IYE de la Patagonia (Class B) 11,139
630 YPF S.A. (Sponsored ADR) 18,782
----------
55,402
----------
BRAZIL: 16.1%
502,908 Banco Bradesco S.A. (Pfd.) 4,209
420,000 Banco de Estado de Sao Paulo S.A.
(Banesp) 19,538
55,000 Banco Itau S.A. (Pfd.) 31,150
734 Cemig S.A. (ADR) 22,718
920,000 CIA Eletricidade de Bahia (Coelba) 34,191
2,300,000 CIA Paranaense de Energia
(Copel) (Pfd.) 21,320
479 CIA Paranaense de Energia
(Copel) (ADR) 4,431
169,000 CIA Saneamento Basilo de Sao Paulo
(Sabesp) 20,604
1,450 Petroleo Brasileiro S.A.
(Petrobras) (Pfd.) 27,006
770 Telecomunicacoes Brasileiras S.A.
(Telebras) 84,078
308,000 Telecomunicacoes de Sao Paulo S.A.
(Telesp) 46,074
240,000 Telesp Celular S.A. 10,179
----------
325,498
----------
CHILE: 1.0%
1,400 Banco de A. Edwards (ADR) 19,863
----------
EGYPT: 1.6%
1,038 Al-Ahram Beverages Company (GDR) 33,008
----------
GREECE: 6.8%
1,700 Hellenic Bottling Company S.A. 52,448
406 National Bank of Greece S.A. 51,956
1,630 Sarantis S.A. 33,036
----------
137,440
----------
HONG KONG: 3.1%
Huaneng Power International
Convertible Bond
USD 30,000 1.75% 5/21/04 26,213
65,000 JCG Holdings Ltd. 18,039
5,000 New World Development
Company Ltd. 9,681
11,000 Ye(Ng) Fung Hong Ltd. 7,596
----------
61,529
----------

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
HUNGARY: 3.2%
300 Gedeon Richter Rt. (Sponsored GDR) $ 24,000
500 Magyar Tavkozlesi Rt. (ADR) 14,719
980 MOL Magyar Olaj-es Gazipari Rt.
(ADR) 26,411
----------
65,130
----------
INDIA: 7.6%
10 Associated Cement Cos. 288
800 Bajaj Auto Ltd. 10,792
650 Hindustan Lever Ltd. 23,141
1,300 Hoechst Marion Roussel Ltd. 12,142
400 Infosys Technologies Limited 20,969
1,400 ITC Ltd. 21,528
3,600 Mahanagar Telephone Nigam Ltd. 15,147
1,300 PSI Data Systems, Ltd. 3,869
1,600 Ranbaxy Laboratories Ltd. 20,660
2,500 Satyam Computer Services Ltd. 24,469
----------
153,005
----------
INDONESIA: 0.3%
60,000 PT Astra International "F" 4,054
19,500 PT Ramayaha Lestari Sentosa "F" 1,515
----------
5,569
----------
ISRAEL: 11.4%
11,000 Bank Leumi Le-Israel 21,922
1,200 Formula Systems (1985) Ltd. 41,950
800 Nice Systems Ltd. (ADR) 30,000
1,275 Orbotech, Ltd. 46,378
8,000 Oshap Technologies, Ltd. 53,500
500 Teva Pharmaceuticals Industries
Ltd. (ADR) 17,594
615 United Mizrahi Bank Ltd. 16,895
----------
228,239
----------
MALAYSIA: 2.0%
11,500 Berjaya Sports Toto Bhd 17,104
10,000 Malakoff Bhd 18,500
6,000 Malaysia Assurance Alliance Bhd 5,224
----------
40,828
----------
MEXICO: 7.4%
791 Cifra S.A. (ADR) 11,584
5,000 Corp Interamericana de 14,496
Entretenimiento S.A. (Series B)
840 Fomento Economico Mexicano, 26,227
S.A. de C.V. (Series B)
1,476 Grupo Financiero Bancomer S.A. de C.V. 10,874
(ADR) (144 A)
3,124 Grupo Financiero Bancomer S.A. de C.V.
(GDR) 23,014
1,710 Kimberly-Clark de Mexico S.A. (ADR) 30,352
1,000 Panamerican Beverages Inc. (Class A) 31,437
----------
147,984
----------

See Notes to Financial Statements

32
<PAGE>

EMERGING MARKETS GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
PERU: 0.8%
1,000 Credicorp Ltd. $ 16,156
----------
PHILIPPINES: 3.2%
125,000 Benpres Holdings Corp. 18,884
4,200 Benpres Holdings Corp. (GDR) 11,550
2,000 Manila Electric Co. "B" 5,276
400 Philippine Long Distance
Telephone Co. 9,113
6,000 San Miguel Corp. (Class B) 7,914
74,000 SM Prime Holdings Inc. 11,712
----------
64,449
----------
POLAND: 1.3%
2 Central Food 11,000
815 Computerland Poland S.A. 14,608
----------
25,608
----------
ROMANIA: 3.3%
1,545 Alro S.A. 12,090
13,534 Petrobrazi S.A. 53,733
----------
65,823
----------
RUSSIA: 1.6%
300 Lukoil Holding (ADR) 9,975
4 Norilsk Nickel (RDC) 4,350
10 Norilsk Nickel (Pfd.) (RDC) 8,175
1,000 Noyabrskneftegaz 1,325
630 Unified Energy Systems (GDR) 8,656
----------
32,481
----------
SOUTH AFRICA: 3.9%
19,000 FirstRand Ltd. 28,025
1,328 Liberty Life Assoc. of Africa Ltd. 26,228
1,150 Nedcor Ltd. 23,144
----------
77,397
----------
SOUTH KOREA: 1.0%
1,100 Medison Co. Limited 9,694
100 S1 Corporation 10,124
----------
19,818
----------
THAILAND: 1.5%
20,000 Bangkok Bank Public Co. Ltd. 20,665
12,000 Thai Farmers Bank Public Co. Ltd. 8,694
----------
29,359
----------
TURKEY: 6.0%
300,000 Anadolu Biracilik ve Malt Sanayii A.S. 11,038
275,000 Carsi Buyuk Magazacilik A.S. 27,360
125,000 Efes Sinai Yatirim Holding A.S. (Class A) 25,341
30,000 Enka Holding Yatirim A.S. 15,768
150,000 Guney Buracilik ve Malt Sanayii A.S. 14,642
20,000 Migros Turk T.A.S. 19,522
150,000 Turkiye Garanti Bankasi A.S. 6,899
----------
120,570
----------

NO. OF CONTRACTS SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
PUT OPTION PURCHASED: 0.7%
20,750 Japanese Yen (strike @ JPY 160,
expiring 12/15/98) (Cost: $25,000) $ 13,074
----------

TOTAL STOCKS AND OTHER
INVESTMENTS: 86.6% (Cost: $2,147,866) 1,738,230
OTHER ASSETS LESS LIABILITIES: 13.4% 268,879
----------
NET ASSETS: 100% $2,007,109
==========

- ----------
(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

SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
- ------------- ------
Autos, Trucks & Parts 0.7%
Banks 14.3%
Computer Services & Equipment 9.4%
Consumer Products & Services 4.8%
Electronics & Electrical Equipment 2.3%
Entertainment & Leisure 1.6%
Food & Beverages 11.0%
Manufacturing 0.8%
Medical Products & Supplies 0.5%
Metals 1.2%
Oil 6.8%
Option 0.7%
Other Financial Services & Insurance 4.7%
Pharmaceuticals 3.7%
Real Estate 1.1%
Retail 3.5%
Telecommunications 8.9%
Television Broadcasting 1.5%
Tobacco 1.1%
Utilities 8.0%
Other assets less liabilities 13.4%
-----
100.0%
=====

See Notes to Financial Statements

33
<PAGE>

GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
ARGENTINA: 0.4%
4,700 Telecom Argentina (ADR) $ 140,119
-----------
AUSTRALIA: 1.3%
Government of Australia Bond
AUD 500,000 10.00% 10/15/07 407,796
-----------
AUSTRIA: 0.8%
Republic of Austria Bond
ATS 3,200,000 7.00% 9/20/99 260,293
-----------
BRAZIL: 0.4%
3,916 Cemig S.A. (ADR) 121,215
-----------
DENMARK: 0.5%
2,800 ISS International Service System A.S. 162,637
-----------
FINLAND: 0.6%
6,000 A Metra Oyj (Class B) 196,528
-----------
FRANCE: 2.0%
Caisse D'Amort Dett Societe Bond
DEM 410,000 5.125 % 1/04/28 229,242
1,800 Rhodia S.A. 50,072
2,900 Scor S.A. 183,496
2,600 SGS-Thomson Microelectronic 183,818
-----------
646,628
-----------
GERMANY: 6.8%
2,400 Bayerische Vereinsbank AG 203,097
460 Buderus AG 229,008
Bundesrepublik Obligation Bond
DEM 590,000 5.75% 8/22/00 337,257
Deutschland Republic Bonds
DEM 313,000 6.00% 1/05/06 187,142
DEM 460,000 5.625% 1/04/28 264,093
910 Fresenius AG (Pfd.) 172,135
German Unity Bond
DEM 1,010,000 8.50% 2/20/01 618,432
2,350 VEBA AG 157,728
-----------
2,168,892
-----------
GREECE: 0.8%
Hellenic Republic Bond
GRD 71,000,000 13.30% 12/27/02 241,421
-----------
IRELAND: 0.9%
13,722 Bank of Ireland 282,111
-----------

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
ITALY: 4.9%
BTPS Bonds
ITL 600,000,000 9.50% 2/01/01 $ 377,335
ITL 130,000,000 6.50% 11/01/27 83,063
ITL 640,000,000 6.25% 3/01/02 379,237
33,000 Credito Italiano S.p.A 172,436
31,000 Eni S.p.A. 202,808
76,000 Parmalat Finanziaria S.p.A. 154,710
25,000 Telecom Italia S.p.A. 183,701
-----------
1,553,290
-----------
JAPAN: 3.7%
11,000 Banyu Pharmaceutical Co. 118,573
7,000 Canon Inc. 158,456
3,400 Circle K Japan Co. Ltd. 118,012
Export-Import Japan Bond
JPY 30,000,000 2.875% 7/28/05 235,798
Japanese Government Bonds
JPY 2,700,000 2.60% 3/20/18 #39 20,915
JPY 200,000 2.60% 3/20/18 #39B 1,549
20,000 NGK Spark Plug Co., Ltd. 169,595
2,000 Rohm Co. 204,808
1,800 Sony Corporation (ADR) 154,913
-----------
1,182,619
-----------
MEXICO: 0.4%
4,000 Panamerican Beverages Inc. "A" 125,750
-----------
NETHERLANDS: 2.9%
2,884 Aegon N.V. 250,444
1,100 Akzo Nobel N.V. 244,043
Netherland Government Bond
NLG 160,000 5.50% 1/15/28 79,884
2,800 Philips Electronics N.V. 234,907
2,100 Royal Dutch Petroleum Co. (New
York Registry Shares) (ADR)* 115,106
-----------
924,384
-----------
PHILIPPINES: 0.8%
National Power Bonds
USD 150,000 8.40% 12/15/16 127,959
USD 150,000 7.875% 12/15/16 132,407
-----------
260,366
-----------
PORTUGAL: 1.1%
3,233 Banco Comercial Portugese 91,615
1,410 Telecel-Comunicacoes Pessoasis S.A. 249,868
-----------
341,483
-----------

See Notes to Financial Statements

34
<PAGE>

GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
SOUTH KOREA: 0.8%
Export/Import Bank Bond
USD 320,000 6.375% 2/15/06 $ 240,915
-----------
SOUTH AFRICA: 0.7%
Republic of South Africa Bond
ZAR 1,600,000 13.00% 8/31/10 234,284
-----------
SPAIN: 1.5%
11,400 Banco de Santander S.A. 291,536
4,100 Sol Melia S.A. 195,009
-----------
486,545
-----------
SWEDEN: 3.1%
2,500 Assa Abloy AB (Class B) 98,006
7,000 Ericsson LM (Class B) 203,951
7,000 ForeningsSparbanken AB (Class A) 210,079
6,200 Svenskt Stal AB (Series B) 93,035
Swedish Government Bond
SEK 2,700,000 10.25% 5/05/00 372,625
-----------
977,696
-----------
SWITZERLAND: 1.3%
280 Adecco S.A. 126,041
96 Novartis AG 159,463
80 Schindler Holding AG
(Participating Certificates) 121,619
------------
407,123
-----------
UNITED KINGDOM: 9.9%
17,000 Amvescap PLC 169,083
28,336 British Aerospace PLC 217,338
10,343 British Petroleum Co. PLC 150,471
28,200 Compass Group PLC 324,443
15,000 Hays PLC 251,611
16,345 Lloyds TSB Group PLC 228,113
3,006 Misys PLC 170,866
800 Select Appointments Holdings plc 23,600
10,531 Siebe PLC 210,537
15,994 SmithKline Beecham Corp. 194,546
United Kingdom Treasury Notes
GBP 166,000 8.00% 12/07/15 347,337
GBP 109,000 7.50% 12/07/06 200,217
GBP 300,000 7.00% 06/07/02 509,593
27,000 Williams PLC 174,452
-----------
3,172,207
-----------
UNITED STATES: 49.6%
5,000 ADC Telecommunications Inc. 182,656
2,800 AlliedSignal Inc. 124,250
3,500 American Express Co.* 399,000
6,000 American International Group, Inc.* 876,000
2,300 Associates First Capital Corp. 176,813
5,400 Bank of New York Co. Inc.* 327,713
2,600 Bestfoods 150,963
1,200 Burlington Northern Santa Fe Corp.* 117,825

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
UNITED STATES (continued)
2,000 Cardinal Health Inc. $ 187,500
5,000 CBS Corp. 158,750
7,000 Cisco Systems, Inc. 644,438
CNA Financial Corp. Note
USD 130,000 6.50% 04/15/05 131,071
3,800 Coastal Corp. 265,288
5,000 Compaq Computer Corp. 141,875
325 Corn Products International Inc. 11,009
3,500 Deere & Co. 185,063
12,000 Federal Home Loan Mortgage Corp. 564,750
8,500 Federal National Mortgage Association 516,375
Federal Home Loan Mortgage Bond
USD 335,000 6.22% 6/24/08 335,503
Federal National Mortgage
Association Bond
GBP 440,000 6.875% 6/07/02 738,576
3,200 Federated Department Stores, Inc.* 172,200
6,000 Fort James Corp. 267,000
4,000 General Electric Co. 364,000
Government National Mortgage
Association Bond
USD 215,000 7.00% 1/15/28 218,427
5,000 Home Depot Inc. 415,313
2,500 Intel Corp. 185,313
1,400 International Business Machines Corp. 160,738
3,000 Jacor Communications Inc. 177,000
9,000 Lucent Technologies Inc. 748,688
3,000 MCI Communications Corp. 174,375
5,000 Merck & Co. 668,750
4,500 Network Associates Inc. 215,438
5,000 Pfizer Inc. 543,438
3,000 Procter & Gamble Co.* 273,188
Residential Asset Securitization
Trust Bond
USD 200,000 6.75% 6/25/28 199,440
3,000 Starwood Hotels & Resorts 144,938
2,500 Travelers Group Inc. 151,563
3,500 Tyco International Ltd. 220,500
U.S. Treasury Bonds
USD 110,000 7.875% 2/15/21* 139,631
USD 20,000 7.25% 5/15/16 23,444
USD 200,000 6.375% 8/15/27 219,750
USD 885,000 6.25% 8/15/23 947,504
U.S. Treasury Notes
USD 495,000 7.00% 7/15/06* 540,942
USD 1,030,000 6.50% 10/15/06 1,094,369
USD 280,000 6.25% 6/30/02 287,000
USD 645,000 5.50% 2/28/03 644,799
U.S. Treasury Inflation Index Note
USD 422,327 3.625% 1/15/08 417,708
-----------
15,850,874
-----------
TOTAL STOCKS AND OTHER INVESTMENTS: 95.2%
(Cost: $21,507,676) 30,385,176
-----------

See Notes to Financial Statements

35
<PAGE>

GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF
CONTRACTS OPTION PURCHASED: 0.0%
- -------------------------------------------------------------------------------
1,690 Eurostyle Put Option (strike @ DEM 1.79
expiring 9/25/98)
(Cost: $14,495) $ 18,057
-----------
TOTAL INVESTMENTS: 95.2% (Cost: $21,522,171) 30,403,233
-----------

NO. OF
CONTRACTS OPTIONS WRITTEN: (0.0%)
- --------------------------------------------------------------------------------
1,690 Eurostyle Call Option (strike @ DEM 1.76
expiring 9/25/98) (7,729)
1,690 Eurostyle Put Option (strike @ DEM 1.85
expiring 9/25/98) (6,305)
-----------
TOTAL OPTIONS WRITTEN (Premiums received: $14,495) (14,034)
-----------

TOTAL INVESTMENTS NET OF OPTIONS WRITTEN: 95.2% 30,389,199
OTHER ASSETS LESS LIABILITIES: 4.8% 1,574,307
-----------
NET ASSETS: 100% $31,963,506
===========

- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.
* These securities are segregated for forward foreign currency contracts.
GLOSSARY:
ADR -- American Depositary Receipt

SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
- ------------- ------
Aerospace & Defense 0.7%
Auto Parts 0.5%
Banks 4.5%
Beverages 0.4%
Broadcast Media 0.6%
Chemicals 0.9%
Commercial Services 0.5%
Computer Software 0.7%
Corporate Bonds 1.0%
Diversified 0.8%
Domestic Oil & Gas 0.4%
Drug & Healthcare 5.8%
Durables 0.5%
Electronics & Electrical Equipment 6.5%
Electronic Data Processing,
Office Equipment & Supplies 2.0%
Financial Services 6.9%
Food & Household Products 2.9%
Foreign Government Bonds 20.0%
Housing & Construction 0.6%
Insurance 4.6%
International Oil 1.1%
Machinery 1.7%
Manufacturing 1.9%
Metals & Mining 0.3%
Natural Gas--Pipelines 0.8%
Paper & Forest Products--Diversified 0.8%
Pharmaceuticals 0.6%
Publishing & Broadcasting 0.5%
Real Estate 1.1%
Retail 2.2%
Science & Technology 2.0%
Telecommunications 3.5%
Temporary Services 0.5%
Transportation 0.4%
U.S. Government Agencies & Obligations 15.3%
Utilities 1.7%
Other assets less liabilities 4.8%
-----
100.0%
=====

See Notes to Financial Statements

36
<PAGE>

GLOBAL HARD ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
AUSTRALIA: 1.5%
ENERGY: 0.3%
236,935 Portman Mining Ltd. $ 190,662
-----------
PRECIOUS METALS: 1.2%
576,850 Acacia Resources Ltd. 614,161
341,545 Consolidated Gold NL 6,554
2,250,000 Gullewa Gold NL 48,746
500,000 Tanganyika Gold NL 43,330
-----------
712,791
-----------
903,453
-----------
CANADA: 24.3%
ENERGY: 12.7%
41,000 AltaGas Service Inc. (Special
Warrants expiring 1/24/99)*(c) 244,322
356,000 Black Sea Energy Ltd. 133,347
375,000 Bromley-Marr ECOS, Inc. 141,741
70,000 Carmanah Resources Ltd. 140,634
35,000 Chieftain International, Inc. 829,061
200,000 Cypress Energy Inc. 681,037
85,000 Edge Energy Inc. 225,764
95,000 Hurricane Hydrocarbons Ltd.
(Class A) 459,359
60,000 Interoil Corp. 315,000
300,000 KAPPA Energy Co. Inc. 104,199
160,000 KAPPA Energy Co. Inc. (Special
Warrants expiring 6/04/99)* 50,124
90,200 NQL Drilling Tools Inc. 552,865
87,000 Pacalta Resources Ltd. 503,627
CAD 375,000 Pacalta Resources Ltd. Sr. Notes
Series B 10.75% 6/15/04(b) 375,000
47,400 Pendaries Petroleum Ltd. 169,476
125,000 Plains Energy Services Ltd. 536,316
42,000 Prudential Steel Ltd. 323,220
190,000 Startech Energy, Inc. 588,756
140,000 Stellarton Energy Corp. 233,596
450,000 Volterra Resources Inc. 214,527
333,000 Windsor Energy Corp. 589,641
-----------
7,411,612
-----------
FOREST PRODUCTS AND PAPER: 1.7%
85,700 St. Laurent Paperboard Inc. 989,284
-----------
INDUSTRIAL METALS: 1.6%
520,000 Auspex Minerals Ltd. 116,866
23,000 Cameco Corp. 642,217
517,200 International Uranium Corp. 186,683
-----------
945,766
-----------
PRECIOUS METALS: 1.9%
20,000 Barrick Gold Corp. 383,750
707,700 Brazilian Resources Inc. (Special
Warrants expiring 9/11/98)*(c) 103,623
63,500 Greenstone Resources Ltd. 244,339
30,000 Placer Dome Inc. 352,500
-----------
1,084,212
-----------

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
CANADA (continued)
REAL ESTATE: 6.4%
25,000 Bentall Corp. $ 289,441
25,000 Boardwalk Equities, Inc. 289,441
30,000 Brookfield Properties Corp. 413,730
35,000 Cadillac Fairview Corp. 805,000
92,000 Legacy Hotels REIT 538,836
60,000 O&Y Properties Corp. 318,725
77,700 Royal Host Real Estate
Investment Trust 277,812
25,000 TrizecHahn Corp. 535,938
50,000 UniHost Corp. 246,876
-----------
3,715,799
-----------
14,146,673
-----------
FRANCE: 0.9%
REAL ESTATE: 0.9%
3,500 Societe Fonciere Lyonnaise 551,486
-----------
ITALY: 0.7%
ENERGY: 0.7%
6,500 Ente Nazionale Idrocaburi S.p.A.
(ADR) 422,500
-----------
MEXICO: 0.6%
ENERGY: 0.6%
28,500 Tubos de Acero de Mexico S.A. 365,156
-----------
RUSSIA: 1.1%
ENERGY: 1.1%
1,650 Ural Petroleum Corp.* 660,000
-----------
SINGAPORE: 1.8%
FOREST PRODUCTS AND PAPER: 1.8%
92,200 Asia Pulp & Paper Company Ltd. 1,037,250
-----------
SWEDEN: 1.0%
REAL ESTATE: 1.0%
50,000 Castellum AB 587,720
-----------
UNITED KINGDOM: 1.1%
ENERGY: 0.6%
3,800 British Petroleum Co. PLC
(ADR)(b) 335,350
-----------
INDUSTRIAL METALS: 0.5%
158,500 Billiton PLC 321,104
-----------
656,454
-----------
UNITED STATES: 58.1%
ENERGY: 15.9%
10,000 Apache Corp. 315,000
24,000 BJ Services Co. 697,500
8,000 Burlington Resources Inc. 344,500
36,200 Denali Inc. 565,625
10,000 EVI Weatherford Inc. 371,250
9,500 Exxon Corp. 677,469
22,400 Forcenergy Inc. 399,000
19,000 J. Ray McDermott, S.A. 788,500
76,000 KCS Energy, Inc. (b) 869,250
36,600 Louis Dreyfus Natural Gas Corp. 693,113

See Notes to Financial Statements

37
<PAGE>

GLOBAL HARD ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES
OR PRINCIPAL
AMOUNT SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
UNITED STATES (continued)
ENERGY (continued)
45,000 Miller Exploration Co. $ 348,750
4,200 Mobil Corp.(b) 321,825
35,200 Pride International, Inc. 596,200
30,800 Smith International, Inc. 1,072,225
16,100 Stone Energy Corp. 572,556
40,000 Swift Energy Co. 637,500
-----------
9,270,263
-----------
FERTILIZER: 0.7%
5,400 Potash Corp. of Saskatchewan Inc.(b) 408,038
-----------
FOREST PRODUCTS AND PAPER: 3.0%
13,500 Bowater Inc. 637,875
12,487 Fort James Corp.(b) 555,672
17,300 Willamette Industries, Inc. 553,600
-----------
1,747,147
-----------
INDUSTRIAL METALS: 3.1%
10,000 Aluminum Co. of America(b) 659,375
84,550 Steel Dynamics, Inc. 1,173,131
-----------
1,832,506
-----------
PRECIOUS METALS: 4.7%
42,200 Getchell Gold Corp.(b) 633,000
42,000 Homestake Mining Co. 435,750
Morgan Guaranty Trust Co.
Gold/Silver Ratio Indexed Note
USD 1,400,000 2.61% 6/18/99 1,326,080
16,100 Newmont Mining Corp. 380,363
-----------
2,775,193
-----------
REAL ESTATE: 30.7%
17,300 AMB Property Corp. 392,000
9,100 Arden Realty, Inc.(b) 235,463
27,000 Bedford Property Investors, Inc.(b) 492,750
30,000 Brandywine Realty Trust 671,250
22,000 Capital Senior Living Corp. 270,875
25,000 CapStar Hotel Co.(b) 700,000
25,000 CarrAmerica Realty Corporation 709,375
40,000 Cornerstone Properties, Inc. 705,000
10,000 Corporate Office Properties Trust, Inc. 88,750
25,500 Equity Office Properties Trust 723,563
25,000 Equity Residential Properties Trust(b) 1,185,938
20,000 Excel Legacy Corp. 87,500
20,000 Excel Realty Trust, Inc.(b) 576,250
20,000 Highwoods Properties, Inc. 646,250
9,000 Host Marriott Corp. 160,313
25,000 Kilroy Realty Corp. 625,000
19,800 LaSalle Hotel Properties 335,363
12,500 Macerich Co. (The) 366,406
31,500 Mack-Cali Realty Corporation 1,082,813
20,000 Pan Pacific Retail Properties, Inc. 407,500
22,800 Parkway Properties, Inc. 672,600
72,144 Patriot American Hospitality, Inc.(b) 1,726,940
45,000 Philips International Realty 742,500
20,000 Prentiss Properties Trust 486,250
45,900 Signature Resorts, Inc. 757,350
10,500 SL Green Realty Corp. 236,250

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
UNITED STATES (continued)
REAL ESTATE (continued)
35,000 Starwood Hotels & Resorts $ 1,690,938
13,900 Tower Realty Trust, Inc. 311,013
15,000 TriNet Corporate Realty Trust, Inc. 510,000
15,000 Westfield America, Inc. 275,625
-----------
17,871,825
-----------
33,904,972
-----------
TOTAL STOCKS AND OTHER INVESTMENTS: 91.1%
(Cost: $59,766,058) 53,235,664
-----------

PRINCIPAL
AMOUNT SHORT-TERM OBLIGATIONS: 4.5%
- -------------------------------------------------------------------------------
$2,613,000 American Express Co.
Commercial Paper due 7/01/98
Interest Yield 5.95%
(Amortized Cost: $2,613,000) 2,613,000
-----------
TOTAL INVESTMENTS: 95.6% (Cost: $62,379,058) 55,848,664
-----------

NO. OF SHARES SECURITIES SOLD SHORT: (4.9%)
- -------------------------------------------------------------------------------
UNITED STATES: (4.9%)
ENERGY: (4.9%)
30,000 Core Laboratories N.V. (648,750)
18,200 Dril-Quip, Inc. (477,750)
12,000 SEACOR SMIT Inc. (735,750)
30,000 Tidewater Inc. (990,000)
-----------
TOTAL SECURITIES SOLD SHORT
(Proceeds received: $3,209,695) (2,852,250)
-----------
TOTAL INVESTMENTS NET OF SECURITIES
SOLD SHORT: 90.7% (Cost: $59,169,363) 52,996,414
OTHER ASSETS LESS LIABILITIES: 9.3% 5,442,715
-----------
NET ASSETS: 100% $58,439,129
===========

- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Securities segregated for futures contracts.
(c) Restricted security, see Note 10.
* Fair value as determined by Board of Trustees.
GLOSSARY:
ADR -- American Depositary Receipt

SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
- ------------- ------
Energy 31.9%
Fertilizer 0.7%
Forest Products and Paper 6.5%
Industrial Metals 5.2%
Precious Metals 7.8%
Real Estate 39.0%
Commercial Paper 4.5%
Securities Sold Short (4.9%)
Other assets less liabilities 9.3%
-----
100.0%
=====

See Notes to Financial Statements

38
<PAGE>

GLOBAL REAL ESTATE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
AUSTRALIA: 0.9%
7,000 Westfield Holdings Ltd. $ 34,148
----------
CANADA: 14.7%
9,000 Bentall Corporation 104,199
6,000 Boardwalk Equities, Inc. 69,466
2,500 Brookfield Properties Corp. 34,477
2,700 Cadillac Fairview Corp. 62,100
2,000 Cambridge Shopping Centres, Ltd. 18,047
1,000 Four Seasons Hotels, Inc. 35,250
6,000 Legacy Hotels REIT 35,141
3,500 O&Y Properties Corp. 18,592
5,000 Royal Host REIT 17,877
5,000 TrizecHahn Corporation 107,188
10,000 UniHost Corp. 49,376
----------
551,713
----------
FINLAND: 3.7%
20,000 Sponda Oyj 140,117
----------
FRANCE: 3.1%
350 Accor SA 97,708
125 Societe Fonciere Lyonnaise 19,696
----------
117,404
----------
JAPAN: 2.2%
5,000 Mitsubishi Estate Co. Ltd. 43,836
5,000 Mitsui Fudoson Co. Ltd. 39,381
----------
83,217
----------
SWEDEN: 2.2%
750 Asticus AB 8,253
2,000 Castellum AB 23,509
6,000 Diligentia AB 51,769
----------
83,531
----------
UNITED KINGDOM: 1.8%
2,500 Millennium & Copthorne Hotels PLC 22,468
12,000 Thistle Hotels PLC 43,619
----------
66,087
----------
UNITED STATES: 59.8%
1,500 AMB Property Corp. 36,750
1,500 Arden Realty, Inc. 38,813
2,000 Bedford Property Investors, Inc. 36,500
4,000 Brandywine Realty Trust 89,500
11,000 Bridgestreet Accommodations, Inc. 50,870
3,700 Capital Senior Living Corp. 45,556
1500 CapStar Hotel Co. 42,000
1,500 CarrAmerica Realty Corp. 42,563
2,500 Catellus Development Corp. 44,219
6,000 Cornerstone Properties, Inc. 105,750
1,600 Corporate Office Properties Trust, Inc. 14,200
3,000 Equity Office Properties Trust 85,125
1,000 Equity Residential Properties Trust 47,438
10,000 Excel Legacy Corp. 43,750
2,000 Excel Realty Trust, Inc. 57,625

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
UNITED STATES (continued)
5,000 Grove Property Trust $ 52,188
1,000 Highwoods Properties, Inc. 32,313
2,500 Host Marriott Corp. 44,531
2,150 Kilroy Realty Corp. 53,750
2,500 LaSalle Hotel Properties 42,344
1,500 Macerich Co. (The) 43,969
3,000 Mack-Cali Realty Corporation 103,125
2,000 Pan Pacific Retail Properties, Inc. 40,750
1000 Parkway Properties, Inc. 29,500
8,600 Patriot American Hospitality, Inc. 205,863
5,000 Philips International Realty 82,500
4,000 Prentiss Properties Trust 97,250
4,000 Security Capital Group - B
(Warrants expiring 9/18/98) 1,376
12000 Signature Resorts, Inc. 198,000
2,100 SL Green Realty Corp. 47,250
2,500 St. Joe Company (The) 68,438
3000 Starwood Hotels & Resorts 144,940
700 Tower Realty Trust, Inc. 15,663
1900 TriNet Corporate Realty Trust, Inc. 64,600
1,000 United Dominion Realty Trust, Inc. 55,500
2,000 Westfield America, Inc. 36,750
----------
2,241,259
----------

TOTAL STOCKS AND OTHER INVESTMENTS: 88.4%
(Cost: $3,347,419) 3,317,476
----------

PRINCIPAL
AMOUNT SHORT-TERM OBLIGATIONS: 13.3%
- -------------------------------------------------------------------------------
U.S. Treasury Bills
$100,000 due 7/09/98 Interest Yield 4.89% 99,891
400,000 due 7/30/98 Interest Yield 4.85% 398,437
----------
TOTAL SHORT-TERM OBLIGATIONS
(Amortized Cost: $498,328) 498,328
----------

TOTAL INVESTMENTS: 101.7% (Cost: $3,845,747) 3,815,804
OTHER ASSETS LESS LIABILITIES: (1.7%) (64,105)
----------
NET ASSETS: 100% $3,751,699
==========

- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.

SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
- ------------- ------
Diversified 18.4%
Hotels 20.8%
Office/Industrial 25.6%
Residential 6.1%
Retail 9.6%
Specialty 7.9%
U.S. Treasury Bills 13.3%
Other assets less liabilities (1.7%)
-----
100.0%
=====

See Notes to Financial Statements

39
<PAGE>

GOLD/RESOURCES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
AUSTRALIA: 10.5%
425,000 Acacia Resources Ltd. $ 452,489
1,150,375 Australian Resources Ltd. 195,823
270,422 Delta Gold N.L. 331,435
808,750 Ghana Gold Mines Ltd. 31,539
990,000 Goldstream Mining N.L. 134,818
264,903 Great Central Mines Ltd. 252,521
562,500 Gullewa Gold N.L. 12,187
405,681 Lihir Gold Ltd. 499,722
570,000 Menzies Gold N.L. 67,038
650,000 Mount Burgess Gold Mining Co. N.L. 20,118
500,000 Mount Leyshon Gold Mines Ltd. 371,400
414,300 Newcrest Mining Ltd. 507,774
1,416,833 Normandy Mining Ltd. 1,157,666
588,272 Resolute Ltd. 356,858
637,964 Sons of Gwalia Ltd. 1,579,599
100,000 Ticor Ltd. 42,092
-----------
6,013,079
-----------
CANADA: 39.6%
96,800 Agnico-Eagle Mines Ltd. 532,400
125,000 Barrick Gold Corp. 2,398,438
213,300 Barrick Gold Corp. (Installment
Receipt) 2,592,982
93,600 Boliden Ltd. (Installment Receipt) 509,960
141,100 Cambior, Inc. 831,215
100,000 Claude Resources, Inc. 129,397
711,900 Dayton Mining Corp. 460,588
337,800 Echo Bay Mines, Ltd. 760,050
300,000 Eldorado Gold Corp. 173,664
106,900 Fletcher Challenge Canada Ltd. 1,488,817
250,000 Geomaque Explorations Ltd. 340,518
250,000 Greenstone Resources Ltd. 961,964
385,000 International Roraima Gold Corp. 31,464
335,000 Kinross Gold Corp. 1,129,329
327,900 Meridian Gold Inc. 681,101
321,300 Miramar Mining Corp. 413,564
103,500 Pacific Rim Mining Corp. 49,341
214,200 Placer Dome Inc. 2,516,850
27,000 Prudential Steel Ltd. 207,784
100,000 Rayrock Yellowknife Resources, Inc. 425,648
416,200 Richmont Mines, Inc. 1,062,928
247,500 Rift Resources Ltd. 20,227
34,900 Rio Narcea Gold Mines, Ltd. 77,484
100,000 Romarco Minerals, Inc. 129,397
195,000 Solitario Resources Corp. 265,604
110,000 St. Andrew Goldfields Ltd. 155,821
99,800 Sutton Resources Ltd. 567,528
140,000 Teck Corp. (Class B) 1,530,289
553,200 TVX Gold Inc. 1,694,175
399,800 Viceroy Resource Corp. 626,240
-----------
22,764,767
-----------
GHANA: 2.0%
30,191 Ashanti Goldfields Co. Ltd. 245,302
104,000 Ashanti Goldfields Co. Ltd. (GDR) 845,000
30,191 Ashanti Goldfields Co. Ltd.
(Preference Shares) 60,382
-----------
1,150,684
-----------

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
PERU: 0.9%
37,300 Co. de Minas Buenaventura
S.A. (ADR) $ 489,563
-----------
UNITED KINGDOM: 1.1%
301,667 Billiton PLC 611,144
-----------
UNITED STATES: 31.1%
645,872 Battle Mountain Canada Inc.
(Exchangeable Shares) 3,834,864
221,300 Battle Mountain Gold Co. (Class A) 1,313,969
200,800 Canyon Resources Corp. 150,600
328,700 Crown Resources Corp. 1,438,063
162,100 Getchell Gold Corp. 2,431,500
360,602 Homestake Mining Co. 3,741,245
64,400 Newmont Gold Company 1,589,875
102,505 Newmont Mining Corp. 2,421,681
1,000,000 Piedmont Mining Co., Inc.(b) 110,000
30,000 Stillwater Mining Co. 813,750
-----------
17,845,547
-----------
TOTAL STOCKS AND OTHER INVESTMENTS: 85.2%
(Cost: $63,680,283) 48,874,784
-----------
PRINCIPAL
AMOUNT SHORT-TERM OBLIGATIONS: 9.7%
- -------------------------------------------------------------------------------
$2,800,000 American Express Co.
Commercial Paper due 7/01/98
Interest Yield 6.03% 2,800,000
2,800,000 General Electric Co.
Commercial Paper due 7/01/98
Interest Yield 5.68% 2,800,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Amortized Cost: $5,600,000) 5,600,000
-----------
TOTAL INVESTMENTS: 94.9%
(Cost: $69,280,283) 54,474,784
OTHER ASSETS LESS LIABILITIES: 5.1% 2,962,812
-----------
NET ASSETS: 100% $57,437,596
===========

- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Affiliated company, see Schedule of Affiliated Company Transactions (Note
11).
GLOSSARY:
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt

SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
- ------------- ------
Aluminum 1.1%
Gold Mining 78.2%
Industrial Metals--Diversified 1.9%
Paper and Forest Products--Diversified 2.6%
Platinum/Palladium/Rhodium 1.4%
Commercial Paper 9.7%
Other assets less liabilities 5.1%
-----
100.0%
=====

See Notes to Financial Statements

40
<PAGE>

INTERNATIONAL INVESTORS GOLD FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
AUSTRALIA: 3.7%
850,000 Acacia Resources Ltd. $ 904,978
1,350,375 Australian Resources Ltd. 229,868
425,000 Delta Gold N.L. 520,889
1,668,210 Ghana Gold Mines Ltd. 65,055
364,903 Great Central Mines Ltd. 347,847
1,000,000 Gullewa Gold N.L. 21,665
564,495 Lihir Gold Ltd. 695,351
1,200,000 Menzies Gold N.L. 141,132
700,000 Mount Leyshon Gold Mines Ltd. 519,960
628,700 Newcrest Mining Ltd. 770,547
4,234,190 Normandy Mining Ltd. 3,459,672
335,156 Resolute Ltd. 203,312
200,000 Sons of Gwalia Ltd. 495,200
100,000 Ticor Ltd. 42,092
------------
8,417,568
------------

CANADA: 21.6%
192,300 Agnico-Eagle Mines Ltd. 1,057,650
540,000 Barrick Gold Corp. 10,361,250
411,700 Barrick Gold Corp.(Installment
Receipt) 5,004,832
93,600 Boliden Ltd. (Installment Receipt) 509,960
273,300 Cambior, Inc. 1,610,001
100,000 Claude Resources, Inc. 129,397
272,400 Dayton Mining Corp. 176,239
687,900 Echo Bay Mines, Ltd. 1,547,775
300,000 Eldorado Gold Corp. 173,664
250,000 Geomaque Explorations Ltd. 340,518
750,000 Greenstone Resources Ltd. 2,885,892
575,000 Kinross Gold Corp. 1,938,400
376,400 Meridian Gold Inc. 781,844
735,000 Miramar Mining Corp. 946,062
146,500 Pacific Rim Mining Corp. 69,840
960,900 Placer Dome Inc. 11,290,575
126,000 Prudential Steel Ltd. 969,660
100,000 Rayrock Yellowknife Resources, Inc. 425,648
350,000 Richmont Mines, Inc. 893,860
40,700 Rio Narcea Gold Mines, Ltd. 90,361
150,000 Romarco Minerals, Inc. 194,095
100,000 St. Andrew Goldfields Ltd. 141,656
258,500 Sutton Resources Ltd. 1,470,000
80,000 Teck Corp. (Class B) 874,451
1,669,500 TVX Gold Inc. 5,112,844
300,000 Viceroy Resources Corp. 469,915
------------
49,466,389
------------
NETHERLANDS: 1.9%
80,000 Royal Dutch Petroleum Co.
(New York Registry Shares) 4,385,000
------------
PERU: 0.1%
44,500 Compania de Minas Buenaventura
S.A. (Sponsored ADR) 584,063
------------

NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
SOUTH AFRICA: 25.9%
655,501 Anglo American Platinum
Corporation Ltd. (ADR) (b) $ 11,105,035
563,290 Anglogold Ltd. (ADR) 16,968,693
25,000 Ashanti Goldfields Co. Ltd.
(Sponsored GDR) 203,125
4,630,755 Avgold Ltd. 2,824,761
2,405,000 Avmin Ltd. (ADR) 1,382,875
682,500 Driefontein Consolidated Ltd. (b)
(Sponsored ADR) 3,497,812
359,428 Durban Roodepoort Deep Ltd. (b)
(Sponsored ADR) 797,481
363,139 Evander Gold Mines Ltd. (b) (ADR) 807,984
1,014,000 Gencor Ltd. 1,546,350
345,405 Gold Fields Ltd. 1,390,256
734,323 Gold Fields of South Africa Ltd. (b)
(Sponsored ADR) 4,560,383
589,430 Harmony Gold Mining Co. Ltd. 2,394,559
645,000 Impala Platinum Holdings Ltd. (ADR) 5,361,563
100,000 JCI Ltd. 505,000
1,201,000 Randfontein Estate Gold
Mining Co. (ADR) 2,582,150
1,032,709 Western Area Gold
Mining Co. Ltd. (b) (ADR) 3,149,762
------------
59,077,789
------------
UNITED KINGDOM: 1.1%
913,333 Billiton PLC 1,850,313
500,000 Reunion Mining PLC 587,759
------------
2,438,072
------------
UNITED STATES: 22.1%
222,000 Battle Mountain Canada, Inc. 1,318,125
1,400,000 Battle Mountain Gold Co. 8,566,031
27,000 Bedford Property Investors Inc. 279,225
251,700 Canyon Resources Corp. 188,775
65,000 CapStar Hotel Co. 1,820,000
45,750 CarrAmerica Realty 1,298,156
100,000 Crown Resources Corp. 437,500
247,700 Getchell Gold Corp. 7,822,500
990,000 Homestake Mining Co. 15,302,494
28,800 Newmont Gold Company 711,000
299,900 Newmont Mining Corp. 9,447,638
49,498 Patriot American Hospitality Inc. 1,543,921
75,000 Philips International Realty II 1,237,500
1,270,000 Piedmont Mining Co., Inc. (d) 139,700
1,025 Security Capital Group - B
(Warrants expiring 9/18/98) 353
20,000 Stillwater Mining Co. 542,500
------------
50,655,418
------------
TOTAL STOCKS & OTHER INVESTMENTS: 76.4%
(Cost: $181,110,251) 175,024,299
------------

See Notes to Financial Statements

41
<PAGE>

INTERNATIONAL INVESTORS GOLD FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

NO. OF CONTRACTS SECURITIES (A) VALUE (NOTE 1)
- -------------------------------------------------------------------------------
CALL OPTIONS PURCHASED: 0.1%
167,848 Durban Roodepoort Deep, Ltd.
Strike price @ ZAR 30
expiring 12/31/99 $ 69,646
51,411 Durban Roodepoort Deep, Ltd.
Strike price @ ZAR 60
expiring 6/30/02 18,602
26,000 Randfontein Estates Gold Mining Co.
Strike price @ ZAR 25
expiring 7/01/02 14,240
------------
TOTAL CALL OPTIONS PURCHASED
(Cost: $147,237) 102,488
------------
TOTAL INVESTMENTS: 76.5% (Cost: $181,257,488) 175,126,787
------------

PRINCIPAL
AMOUNT SHORT-TERM OBLIGATIONS: 9.3%
- -------------------------------------------------------------------------------
$10,700,000 American Express Co.
Commercial Paper
due 7/01/98
Interest Yield 5.95% 10,700,000
10,700,000 General Electric Capital
Commercial Paper
due 7/01/98
Interest Yield 5.60% 10,700,000
------------
TOTAL SHORT-TERM OBLIGATIONS
(Amortized Cost: $21,400,000) 21,400,000
------------

TOTAL INVESTMENTS: 85.8% (Cost: $202,657,488) 196,526,787
OTHER ASSETS LESS LIABILITIES: 14.2% 32,586,120
------------
NET ASSETS: 100% $229,112,907
============

- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Includes securities in the form of American Depositary Receipts (ADR). ADR's
are traded at prices substantially equivalent to those quoted for ordinary
shares.
(d) Affiliated company, see Schedule of Affiliated Company Transactions (Note
11).
* Fair value as determined by Board of Trustees.
GLOSSARY:
ADR -- American Depositary Receipt

SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
- ------------- ------
Aluminum 0.8%
Gold & Silver 63.1%
Industrial Metals--Diversified 0.9%
Oil--Integrated 1.9%
Platinum/Palladium/Rhodium 2.6%
Precious Metals--Finance 4.3%
Real Estate--Hotels 1.5%
Real Estate--Retail 0.6%
Real Estate--Office/Industrial 0.7%
Call Options Purchased 0.1%
Commercial Paper 9.3%
Other assets less liabilities 14.2%
-----
100.0%
=====

See Notes to Financial Statements

42
<PAGE>

U.S. GOVERNMENT MONEY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS JUNE 30, 1998 (Unaudited)

ANNUALIZED YIELD
AT TIME OF
PRINCIPAL MATURITY PURCHASE OR VALUE
AMOUNT DATE COUPON RATE (NOTE 1)
- -------------------------------------------------------------------------

U.S. TREASURY BILLS: 82.7%
$15,000,000 9/17/98 5.03% $14,840,588
15,000,000 9/03/98 5.00% 14,869,600
20,000,000 8/20/98 4.99% 19,864,166
-----------
Total U.S. Treasury Bills
(Amortized Cost: $49,574,354) 49,574,354
-----------
REPURCHASE AGREEMENTS: 66.6% (NOTE 12):
$20,000,000
(Cost: $20,000,000)
Purchased on 6/30/98;
maturity value--
$20,003,056 (with HSBC
Securities Incorporated
collateralized by
$18,977,000 U.S. Treasury
Note due 2/15/00 with
an interest rate of
8.50% with a value of
$20,438,445) 7/01/98 5.50% 20,000,000
$19,953,090
(Cost: $19,953,090)
Purchased on 6/30/98;
maturity value--
$19,956,111 (with Merrill
Lynch, Pierce, Fenner &
Smith Incorporated
collateralized by
$19,930,000 U.S. Treasury
Note due 2/28/99 with
an interest rate of
5.88% with a value of
$20,3678,000) 7/01/98 5.45% 19,953,090
-----------
Total Repurchase Agreements (Cost: $399,953,090) 39,953,090
-----------
TOTAL INVESTMENTS: 149.3%
(Cost: $89,527,444*) 89,527,444

OTHER ASSETS LESS LIABILITIES: (49.3%) (29,552,794)
-----------
NET ASSETS: 100% $59,974,650
===========

See Notes to Financial Statements

<PAGE>

VAN ECK FUNDS

STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998 (Unaudited)

ASIA DYNASTY EMERGING MARKETS GLOBAL BALANCED
FUND GROWTH FUND FUND
------------ ---------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments at cost-see Schedules of
Portfolio Investments ................................. $13,542,655 $2,147,866 $21,522,171
============ ============ ============
Investments at value (Note 1) .......................... $11,295,518 $1,738,230 $30,403,233
Cash ................................................... 2,200,003 153,686 505,796
Segregated cash for short sales (Note 1) ............... -- -- --
Cash-initial margin for futures contracts (Note 1) ..... -- -- --
Receivables:
Securities sold ....................................... -- 70,735 1,343,767
Receivables for securities sold short ................. -- -- --
Capital shares sold ................................... 306 550 155,930
Interest and dividends ................................ 56,190 13,238 262,294
From Adviser .......................................... -- 171,990 --
Unrealized appreciation on open forward foreign
currency contracts (Note 7) .......................... -- -- 102,961
Deferred organization costs and other assets (Note 1) -- 4,676 1,257
------------ ------------ ------------
Total assets ........................................ 13,552,017 2,153,105 32,775,238
------------ ------------ ------------
LIABILITIES:
Payables:
Due to custodian ...................................... -- -- --
Securities purchased .................................. 218,519 78,677 732,478
Securities sold short, at value (proceeds $3,209,695)
(Note 1) ............................................. -- -- --
Unrealized depreciation on open forward foreign
currency contracts (Note 7) .......................... -- -- 186
Dividends payable ..................................... -- 1,080 3,075
Capital shares redeemed ............................... 37,584 4,442 10,813
Options written (premiums received $14,495) (Note 1) .. -- -- 14,034
Accounts payable ...................................... 97,071 61,797 51,146
------------ ------------ ------------
Total liabilities ................................... 353,174 145,996 811,732
------------ ------------ ------------
NET ASSETS ............................................. $13,198,843 $2,007,109 $31,963,506
============ ============ ============
CLASS A SHARES+:
Net assets ............................................. $8,707,024 $1,652,016 $26,239,513
============ ============ ============
Shares outstanding ..................................... 1,442,928 244,540 2,207,024
============ ============ ============
Net asset value and redemption price per share ......... $6.03 $6.76 $11.89
============ ============ ============
Maximum offering price per share
(NAV/(1-maximum sales commission)) .................... $6.33 $7.10 $12.48
============ ============ ============
CLASS B SHARES:
Net assets ............................................. $4,491,819 $151,754 $ 5,723,993
============ ============ ============
Shares outstanding ..................................... 765,510 22,455 485,049
============ ============ ============
Net asset value, offering and redemption price
per share (Redemption may be subject to a
contingent deferred sales charge within the
first six years of ownership) ......................... $5.87 $6.76 $11.80
============ ============ ============
CLASS C SHARES:
Net assets $203,339
============
Shares outstanding 30,236
============
Net asset value, offering and redemption price
per share (Redemption may be subject to a
contingent deferred sales charge within the
first year of ownership) $6.73
============
Net assets consist of:
Aggregate paid in capital ............................. $16,935,864 $3,158,614 $20,463,770
Unrealized appreciation (depreciation) of
investments, options, short sales, futures
and foreign denominated assets, liabilities
and forward foreign currency contracts ............... (2,248,185) (416,543) 8,980,313
Undistributed (overdistributed) net investment
income (loss) ........................................ (296,156) (5,422) (352,373)
Accumulated realized gain (loss) ...................... (1,192,680) (729,540) 2,871,796
------------ ------------ ------------
....................................................... $13,198,843 $2,007,109 $31,963,506
============ ============ ============
</TABLE>

- --------------------------------
+ The U.S. Government Money Fund does not have a designated class of shares.

See Notes to Financial Statements

<PAGE>

GLOBAL HARD GLOBAL REAL GOLD/RESOURCES
ASSETS FUND ESTATE FUND FUND
------------ ------------ --------------
<S> <C> <C> <C>
ASSETS:
Investments at cost-see Schedules of
Portfolio Investments ................................. $62,379,058 $3,845,747 $ 69,280,283
============ =========== ============
Investments at value (Note 1) .......................... $55,848,664 $3,815,804 $ 54,474,784
Cash ................................................... 485,511 4,446 635,869
Segregated cash for short sales (Note 1) ............... 1,485,333 -- --
Cash-initial margin for futures contracts (Note 1) ..... 182,250 -- --
Receivables:
Securities sold ....................................... 1,126,509 164,088 2,818,839
Receivables for securities sold short ................. 3,209,695 -- --
Capital shares sold ................................... 456,590 556 5,628
Interest and dividends ................................ 171,743 17,989 44,065
From Adviser .......................................... -- 99,997 --
Unrealized appreciation on open forward foreign
currency contracts (Note 7) .......................... -- 740 --
Deferred organization costs and other assets (Note 1) 78,620 9,900 58,349
------------ ------------ -------------
Total assets ........................................ 63,044,915 4,113,520 58,037,534
------------ ----------- ------------
LIABILITIES:
Payables:
Due to custodian ...................................... -- -- --
Securities purchased .................................. 1,038,548 241,679 --
Securities sold short, at value (proceeds $3,209,695)
(Note 1) ............................................. 2,852,250 -- --
Unrealized depreciation on open forward foreign
currency contracts (Note 7) .......................... 26,002 -- --
Dividends payable ..................................... 34,574 4,207 --
Capital shares redeemed ............................... 492,799 36,950 320,458
Options written (premiums received $14,495) (Note 1) .. -- -- --
Accounts payable ...................................... 161,613 78,985 279,480
------------ ----------- ------------
Total liabilities ................................... 4,605,786 361,821 599,938
------------ ----------- ------------
NET ASSETS ............................................. $58,439,129 $3,751,699 $ 57,437,596
============ =========== ============
CLASS A SHARES :
Net assets ............................................. $42,448,162 $3,298,447 $ 57,437,596
============ =========== ============
Shares outstanding ..................................... 3,239,500 312,801 17,834,026
============ =========== ============
Net asset value and redemption price per share ......... $13.10 $10.54 $3.22
============ =========== ============
Maximum offering price per share
(NAV/(1-maximum sales commission)) .................... $13.75 $11.07 $3.42
============ =========== ============
CLASS B SHARES:
Net assets ............................................. $9,119,628 $289,919
============ ===========
Shares outstanding ..................................... 693,432 27,538
============ ===========
Net asset value, offering and redemption price
per share (Redemption may be subject to a
contingent deferred sales charge within the
first six years of ownership) ......................... $13.15 $10.53
============ ===========
CLASS C SHARES:
Net assets $6,871,339 $163,333
============ ===========
Shares outstanding 521,054 15,491
============ ===========
Net asset value, offering and redemption price
per share (Redemption may be subject to a
contingent deferred sales charge within the
first year of ownership) $13.19 $10.54
============ ===========
Net assets consist of:
Aggregate paid in capital ............................. $64,754,397 $3,755,419 $115,390,190
Unrealized appreciation (depreciation) of
investments, options, short sales, futures
and foreign denominated assets, liabilities
and forward foreign currency contracts ............... (6,207,643) (30,937) (14,828,802)
Undistributed (overdistributed) net investment
income (loss) ........................................ 112,357 9,011 (1,060,102)
Accumulated realized gain (loss) ...................... (219,982) 18,206 (42,063,690)
------------ ----------- ------------
....................................................... $58,439,129 $3,751,699 $ 57,437,596
============ =========== ============

</TABLE>

<PAGE>

INTERNATIONAL INVESTORS U.S. GOVERNMENT
GOLD FUND MONEY FUND
----------------------- --------------

<S> <C> <C>
ASSETS:
Investments at cost-see Schedules of
Portfolio Investments ................................. $202,657,488 $ 89,527,444
============ ============
Investments at value (Note 1) .......................... $196,526,787 $ 89,527,444
Cash ................................................... 4,837,918 --
Segregated cash for short sales (Note 1) ............... -- --
Cash-initial margin for futures contracts (Note 1) ..... -- --
Receivables:
Securities sold ....................................... 247,366 --
Receivables for securities sold short ................. -- --
Capital shares sold ................................... 42,142,011 14,348,063
Interest and dividends ................................ 366,961 32,609
From Adviser .......................................... -- --
Unrealized appreciation on open forward foreign
currency contracts (Note 7) .......................... --
Deferred organization costs and other assets (Note 1)... 22,994 --
------------ ------------
Total assets ........................................ 244,144,037 103,908,116
------------ ------------
LIABILITIES:
Payables:
Due to custodian ...................................... -- 200
Securities purchased .................................. 193,088 --
Securities sold short, at value (proceeds $3,209,695)
(Note 1) ............................................. -- --
Unrealized depreciation on open forward foreign
currency contracts (Note 7) .......................... -- --
Dividends payable ..................................... 55,375 51,269
Capital shares redeemed ............................... 14,555,381 43,753,634
Options written (premiums received $14,495) (Note 1) .. -- --
Accounts payable ...................................... 227,286 128,363
------------ ------------
Total liabilities ................................... 15,031,130 43,933,466
------------ ------------
NET ASSETS ............................................. $229,112,907 $ 59,974,650
============ ============
CLASS A SHARES :
Net assets ............................................. $229,112,907 $ 59,974,650
============ ============
Shares outstanding ..................................... 33,998,510 59,974,650
============ ============
Net asset value and redemption price per share ......... $6.74 $1.00
============ ============
Maximum offering price per share
(NAV/(1-maximum sales commission)) .................... $7.15
============
CLASS B SHARES:
Net assets .............................................

Shares outstanding .....................................

Net asset value, offering and redemption price
per share (Redemption may be subject to a
contingent deferred sales charge within the
first six years of ownership) .........................

CLASS C SHARES:
Net assets

Shares outstanding

Net asset value, offering and redemption price
per share (Redemption may be subject to a
contingent deferred sales charge within the
first year of ownership)

Net assets consist of:
Aggregate paid in capital ............................. $228,962,815 $ 59,974,650
Unrealized appreciation (depreciation) of
investments, options, short sales, futures
and foreign denominated assets, liabilities
and forward foreign currency contracts ............... (6,158,131) --
Undistributed (overdistributed) net investment
income (loss) ........................................ (43,086) --
Accumulated realized gain (loss) ...................... 6,351,309 --
------------ ------------
....................................................... $229,112,907 $ 59,974,650
============ ============
</TABLE>

See Notes to Financial Statements

<PAGE>

VAN ECK FUNDS
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1998 (Unaudited)

ASIA DYNASTY EMERGING MARKETS GLOBAL BALANCED
FUND GROWTH FUND FUND
------------- ---------------- ---------------
<S> <C> <C> <C>
INCOME:
Dividends ................................................ $ 198,628 $ 43,990 $ 145,821
Interest ................................................. 23,268 262 320,704
Foreign taxes withheld ................................... (8,314) (2,837) (10,957)
----------- ---------- ----------
Total income ............................................. 213,582 41,415 455,568
----------- ---------- ----------
EXPENSES:
Management (Note 2) ...................................... 64,686 12,271 116,231
Distribution Class A (Note 4) ............................ 28,298 5,375 63,858
Distribution Class B (Note 4) ............................ 29,651 565 27,258
Distribution Class C (Note 4) ............................ 1,264
Administration (Note 2) .................................. 30,194 2,729 46,606
Transfer agent ........................................... 63,471 44,943 56,378
Professional ............................................. 29,725 11,331 24,230
Reports to shareholders .................................. 13,961 6,443 19,770
Registration ............................................. 11,135 27,162 14,516
Custodian ................................................ 7,962 22,619 10,089
Trustees' fees and expenses .............................. 2,073 197 2,888
Amortization of deferred organization costs .............. 289 561 3,415
Other .................................................... 5,898 502 7,056
----------- ---------- ----------
Total expenses ........................................... 287,343 135,962 392,295
Expenses assumed by the Adviser and reduced by directed
brokerage and custody fee arrangement (Note 2) ......... (15,924) (127,603) (68,900)
----------- ---------- ----------
Net expenses ............................................. 271,419 8,359 323,395
----------- ---------- ----------
Net investment income (loss) ............................. (57,837) 33,056 132,173

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Realized gain (loss) from security transactions .......... (1,192,680) (433,074) 2,758,199
Realized gain (loss) from futures contracts, equity
swaps and short sales .................................. -- (572) --
Realized gain (loss) from options ........................ -- -- 4,661
Realized gain (loss) from foreign currency transactions .. (154,054) (11,677) 23,899
Change in unrealized appreciation (depreciation) of
foreign denominated assets, liabilities and forward
foreign currency contracts ............................. (23,218) (6,211) 6,733
Change in unrealized appreciation (depreciation) of
investments, futures, short sales, swaps and options .. (2,717,180) 17,830 1,418,605
----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $(4,144,969) $ (400,648) $4,344,270
=========== ========== ==========
</TABLE>

See Notes to Financial Statements

<PAGE>

GLOBAL HARD GLOBAL REAL GOLD/RESOURCES
ASSETS FUND ESTATE FUND FUND
------------- ----------- --------------
<S> <C> <C> <C>
INCOME:
Dividends ................................................ $ 740,402 $ 39,820 $ 287,971
Interest ................................................. 106,727 7,181 149,797
Foreign taxes withheld ................................... (17,541) (828) (16,921)
------------ ---------- -----------
Total income ............................................. 829,588 46,173 420,847
------------ ---------- -----------
EXPENSES:
Management (Note 2) ...................................... 354,057 11,917 248,154
Distribution Class A (Note 4) ............................ 133,207 5,159 82,718
Distribution Class B (Note 4) ............................ 47,952 1,083
Distribution Class C (Note 4) ............................ 39,690 515
Administration (Note 2) .................................. 11,533 1,830 111,444
Transfer agent ........................................... 79,283 33,301 181,053
Professional ............................................. 19,706 11,890 25,461
Reports to shareholders .................................. 20,396 19,351 20,546
Registration ............................................. 24,631 19,860 11,811
Custodian ................................................ 13,636 1,018 12,870
Trustees' fees and expenses .............................. 4,997 196 7,539
Amortization of deferred organization costs .............. 3,915 969 --
Other .................................................... 16,899 1,752 18,633
------------ ---------- -----------
Total expenses ........................................... 769,902 108,841 720,229
Expenses assumed by the Adviser and reduced by directed
brokerage and custody fee arrangement (Note 2) ......... (17,966) (99,695) --
------------ ---------- -----------
Net expenses ............................................. 751,936 9,146 720,229
------------ ---------- -----------
Net investment income (loss) ............................. 77,652 37,027 (299,382)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Realized gain (loss) from security transactions .......... (520,108) 17,239 2,114,620
Realized gain (loss) from futures contracts, equity
swaps and short sales .................................. 183,171 -- --
Realized gain (loss) from options ........................ 139,229 -- --
Realized gain (loss) from foreign currency transactions .. 124,261 503 (57,321)
Change in unrealized appreciation (depreciation) of
foreign denominated assets, liabilities and forward
foreign currency contracts ............................. (47,065) (1,224) 13,429
Change in unrealized appreciation (depreciation) of
investments, futures, short sales, swaps and options .. (11,380,760) (92,289) (6,253,447)
------------ ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $(11,423,620) $(38,744) $(4,482,101)
============ ========== ===========
</TABLE>

INTERNATIONAL INVESTORS U.S. GOVERNMENT
GOLD FUND MONEY FUND
----------------------- ---------------

<S> <C> <C>
INCOME:
Dividends ................................................ $ 2,298,678 --
Interest ................................................. 946,211 $1,917,800
Foreign taxes withheld ................................... (106,546) --
------------ ----------
Total income ............................................. 3,138,343 1,917,800
------------ ----------
EXPENSES:
Management (Note 2) ...................................... 918,272 177,743
Distribution Class A (Note 4) ............................ 88,872
Distribution Class B (Note 4) ............................
Distribution Class C (Note 4) ............................
Administration (Note 2) .................................. 388,728 73,566
Transfer agent ........................................... 489,389 41,651
Professional ............................................. 47,826 19,242
Reports to shareholders .................................. 70,272 15,010
Registration ............................................. 22,838 14,757
Custodian ................................................ 14,399 8,482
Trustees' fees and expenses .............................. 25,103 10,505
Amortization of deferred organization costs .............. -- --
Other .................................................... 57,614 19,841
------------ ----------
Total expenses ........................................... 2,034,441 469,669
Expenses assumed by the Adviser and reduced by directed
brokerage and custody fee arrangement (Note 2) ......... (556) (8,482)
------------ ----------
Net expenses ............................................. 2,033,885 461,187
------------ ----------
Net investment income (loss) ............................. 1,104,458 1,456,613

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Realized gain (loss) from security transactions .......... 9,385,384 --
Realized gain (loss) from futures contracts, equity
swaps and short sales .................................. -- --
Realized gain (loss) from options ........................ -- --
Realized gain (loss) from foreign currency transactions .. (94,787) --
Change in unrealized appreciation (depreciation) of
foreign denominated assets, liabilities and forward
foreign currency contracts ............................. 27,553 --
Change in unrealized appreciation (depreciation) of
investments, futures, short sales, swaps and options .. (24,302,164) --
------------ ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $(13,879,556) $1,456,613
============ ==========

</TABLE>

See Notes to Financial Statements

<PAGE>

VAN ECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS

ASIA DYNASTY EMERGING MARKETS GROWTH GLOBAL BALANCED
FUND FUND FUND
--------------------------- ------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------ ------------ ----------- ----------- ------------ ------------

INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) ............... $ (57,837) $ (426,753) $ 33,056 $ 48,080 $ 132,173 $ 224,771
Realized gain (loss) from security
transactions .............................. (1,192,680) 6,040,708 (433,074) (201,162) 2,758,199 3,653,554
Realized gain (loss) from futures
contracts, equity swaps and short
sales ..................................... -- -- (572) (55,479) -- --
Realized gain (loss) from options .......... -- -- -- -- 4,661 9,621
Realized gain (loss) from foreign
currency transactions ..................... (154,054) (263,828) 11,677) (19,930) 23,899 (327,252)
Change in unrealized appreciation
(depreciation) of foreign denominated
assets, liabilities and forward foreign
currency contracts ........................ (23,218) 17,313,597) (6,211) (696) 6,733 76,540
Change in unrealized appreciation
(depreciation) of investments, futures,
short sales, swaps and options ............ (2,717,180) 24,674 17,830 (427,466) 1,418,605 320,862
------------ ------------ ----------- ----------- ------------ -----------
Increase (decrease) in net assets
resulting from operations ................. (4,144,969) (11,938,796) (400,648) (656,653) 4,344,270 3,958,096
------------ ------------ ----------- ----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income:
Class A Shares+ ........................... -- -- (16,992) (22,559) (113,674) (176,328)
Class B Shares ............................ -- -- (1,558) (1,563) (14,706) (12,007)
Class C Shares ............................ (2,096) (2,750)
Realized gain:
Class A Shares ............................ -- (1,662,423) -- (38,591) -- (3,002,402)
Class B Shares ............................ -- (938,539) -- (2,911) -- (628,805)
Class C Shares ............................ -- (5,184)
Tax return of capital:
Net investment income:
Class A Shares ............................ -- (195,520) -- (927) -- (15,618)
Class B Shares ............................ -- (109,980) -- (70) -- (1,064)
Class C Shares ............................ -- (125) -- --
Realized gain:
Class A Shares ............................ -- -- -- -- -- (3,505)
Class B Shares ............................ -- -- -- -- -- (734)
Class C Shares ............................ -- -- -- -- -- --
------------ ------------ ----------- ----------- ------------ -----------
Total dividends and distributions .......... -- (2,906,462) (20,646) (74,680) (128,380) (3,840,463)
------------ ------------ ----------- ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sales of shares:
Class A Shares ............................ 4,129,729 41,432,873 178,567 3,776,464 1,016,075 2,863,588
Class B Shares ............................ 339,163 706,347 61,850 226,716 456,567 695,993
Class C Shares ............................ 32,006 350,867
------------ ------------ ----------- ----------- ------------ -----------
4,468,892 42,139,220 272,423 4,354,047 1,472,642 3,559,581
------------ ------------ ----------- ----------- ------------ -----------
Capital shares issued
in connection with acquisition (Note 13) .. -- -- -- -- -- --
------------ ------------ ----------- ----------- ------------ -----------
Reinvestment of dividends:
Class A Shares ............................ -- 1,419,527 16,031 57,444 100,414 2,878,160
Class B Shares ............................ -- 487,470 1,461 3,506 11,338 481,142
Class C Shares ............................ 2,073 7,990
------------ ------------ ----------- ----------- ------------ -----------
-- 1,906,997 19,565 68,940 111,752 3,359,302
------------ ------------ ----------- ----------- ------------ -----------
Cost of shares reacquired:
Class A Shares ............................ (5,584,162) (64,685,031) (401,804) (1,017,740) (2,998,232) (5,622,810)
Class B Shares ............................ (1,327,157) (9,377,149) (43,407) (35,593) (523,638) (1,059,645)
Class C Shares ............................ (79,361) (7,334)
------------ ------------ ----------- ----------- ------------ -----------
(6,911,319) (74,062,180) (524,572) (1,060,667) (3,521,870) (6,682,455)
------------ ------------ ----------- ----------- ------------ -----------
Increase (decrease) in net assets resulting
from capital share transactions ........... (2,442,427) (30,015,963) (232,584) 3,362,320 (1,937,476) 236,428
------------ ------------ ----------- ----------- ------------ -----------
Total increase in net assets ............... (6,587,396) (44,861,221) (653,878) 2,630,987 2,278,414 354,061
NET ASSETS:
Beginning of period ........................ 19,786,239 64,647,460 2,660,987 30,000 29,685,092 29,331,031
------------ ------------ ----------- ----------- ------------ ------------
End of period .............................. $ 13,198,843 $ 19,786,239 $ 2,007,109 $ 2,660,987 $ 31,963,506 $ 29,685,092
------------ ------------ ----------- ----------- ------------ ------------
Undistributed (overdistributed)
distributions in excess of net investment
income or accumulated net investment loss . $ (296,156) $ (84,265) $ (5,422) $ (6,155) $ (352,373) $ (22,606)
============ ============ =========== =========== ============ ===========

</TABLE>

See Notes to Financial Statements

<PAGE>

GLOBAL HARD ASSETS GLOBAL REAL ESTATE GOLD/RESOURCES
FUND FUND FUND
---------------------------- ------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------ ------------ ----------- ----------- ------------ ------------

INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) .............. $ 77,652 $ 170,654 $ 37,027 $ 23,902 $ (299,382) $ (571,501)
Realized gain (loss) from security
transactions ............................. (520,108) 3,621,165 17,239 62,655 2,114,620 (4,658,071)
Realized gain (loss) from futures
contracts, equity swaps and short
sales .................................... 183,171 287,872 -- -- -- --
Realized gain (loss) from options ......... 139,229 564,720 -- -- -- --
Realized gain (loss) from foreign
currency transactions .................... 124,261 (15,153) 503 682 (57,321) (80,566)
Change in unrealized appreciation
(depreciation) of foreign denominated
assets, liabilities and forward foreign
currency contracts ....................... (47,065) (5,442) (1,224) 230 13,429 (35,415)
Change in unrealized appreciation
(depreciation) of investments, futures,
short sales, swaps and options ........... (11,380,760) 1,828,284 (92,289) 62,346 (6,253,447) (44,299,940)
------------ ------------ ----------- ----------- ------------ ------------
Increase (decrease) in net assets
resulting from operations ................ (11,423,620) 6,452,100 (38,744) 149,815 (4,482,101) (49,645,493)
------------ ------------ ----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income:
Class A Shares+ .......................... (65,214) (69,565) (25,138) (19,044) -- --
Class B Shares ........................... (13,433) -- (2,189) (1,541)
Class C Shares ........................... (10,454) -- (1,231) (1,571)
Realized gain:
Class A Shares ........................... (65,243) (3,392,877) -- (55,078) -- --
Class B Shares ........................... (13,433) (569,869) -- (4,456)
Class C Shares ........................... (10,454) (459,071) -- (4,543)
Tax return of capital:
Net investment income:
Class A Shares ........................... -- -- -- (7,134) -- --
Class B Shares ........................... -- -- -- (577)
Class C Shares ........................... -- -- -- (589)
Realized gain:
Class A Shares ........................... -- -- -- -- -- --
Class B Shares ........................... -- -- -- --
Class C Shares ........................... -- -- -- --
------------ ------------ ----------- ----------- ------------ ------------
Total dividends and distributions ......... (178,231) (4,491,382) (28,558) (94,533) -- --
------------ ------------ ----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sales of shares:
Class A Shares ........................... 8,685,266 67,488,031 1,980,475 1,387,893 9,337,337 33,264,688
Class B Shares ........................... 2,103,994 9,516,900 180,203 114,007
Class C Shares ........................... 1,684,931 8,365,075 75,522 116,580
------------ ------------ ----------- ----------- ------------ ------------
12,474,191 85,370,006 2,236,200 1,618,480 9,337,337 33,264,688
------------ ------------ ----------- ----------- ------------ ------------
Capital shares issued
in connection with acquisition (Note 13) . -- -- -- -- -- 3,020,329
------------ ------------ ----------- ----------- ------------ ------------
Reinvestment of dividends:
Class A Shares ........................... 110,264 2,913,441 21,616 80,706 -- --
Class B Shares ........................... 19,350 385,304 1,847 6,571
Class C Shares ........................... 14,013 308,161 888 6,214
------------ ------------ ----------- ----------- ------------ ------------
143,627 3,606,906 24,351 93,491 -- --
------------ ------------ ----------- ----------- ------------ ------------
Cost of shares reacquired:
Class A Shares ........................... (19,073,535) (38,433,482) (91,754) (84,756) (13,568,355) (52,787,184)
Class B Shares ........................... (1,879,816) (913,311) (2,421) --
Class C Shares ........................... (2,204,125) (1,976,795) (29,872) --
------------ ------------ ----------- ----------- ------------ ------------
(23,157,476) (41,323,588) (124,047) (84,756) (13,568,355) (52,787,184)
------------ ------------ ----------- ----------- ------------ ------------
Increase (decrease) in net assets resulting
from capital share transactions .......... (10,539,658) 47,653,324 2,136,504 1,627,215 (4,231,018) (16,502,167)
------------ ------------ ----------- ----------- ------------ ------------
Total increase in net assets .............. (22,141,509) 49,614,042 2,069,202 1,682,497 (8,713,119) (66,147,660)
NET ASSETS:
Beginning of period ....................... 80,580,638 30,966,596 1,682,497 -- 66,150,715 132,298,375
------------ ------------ ----------- ----------- ------------ ------------
End of period ............................. $ 58,439,129 $ 80,580,638 $ 3,751,699 $ 1,682,497 $ 57,437,596 $ 66,150,715
------------ ------------ ----------- ----------- ------------ ------------
Undistributed (overdistributed)
distributions in excess of net investment
income or accumulated net investment loss. $ 112,357 $ (455) $ 9,011 $ 39 $ (1,060,102) $ (703,399)
============ ============ =========== =========== ============ ============

</TABLE>

<PAGE>

INTERNATIONAL INVESTORS GOLD U.S. GOVERNMENT MONEY
FUND FUND
------------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
(Unaudited) 1998 (Unaudited) 1998
------------- ------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) ................ $ 1,104,458 $ 3,157,009 $ 1,458,476 $ 3,032,256
Realized gain (loss) from security
transactions ............................... 9,385,384 (3,087,132) -- --
Realized gain (loss) from futures
contracts, equity swaps and short
sales ...................................... -- -- -- --
Realized gain (loss) from options ........... -- -- -- --
Realized gain (loss) from foreign
currency transactions ...................... (94,787) (77,798) -- --
Change in unrealized appreciation
(depreciation) of foreign denominated
assets, liabilities and forward foreign
currency contracts ......................... 27,553 (38,150) -- --
Change in unrealized appreciation
(depreciation) of investments, futures,
short sales, swaps and options ............. (24,302,164) (132,602,352) -- --
------------- ------------- ------------ ------------
Increase (decrease) in net assets
resulting from operations .................. (13,879,556) (132,648,423) 1,458,476 3,032,256
------------- ------------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A Shares+ ............................ (1,052,919) (3,043,229) (1,458,476 (3,032,256)
Class B Shares .............................
Class C Shares ............................. -- --
Realized gain:
Class A Shares ............................. -- (99,162) -- --
Class B Shares .............................
Class C Shares ............................. -- --
Tax return of capital:
Net investment income:
Class A Shares ............................. -- (12,911) -- --
Class B Shares .............................
Class C Shares ............................. -- --
Realized gain:
Class A Shares ............................. -- --
Class B Shares ............................. -- -- -- --
Class C Shares ............................. -- --
------------- ------------- ------------ ------------
Total dividends and distributions ........... (1,052,919) (3,155,302) (1,458,476) (3,032,256)
------------- ------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sales of shares:
Class A Shares ............................. 1,892,298,640 3,623,884,733 1,856,010,903 3,630,786,246
Class B Shares .............................
Class C Shares ............................. 118,370
------------- ------------- ------------ ------------
1,892,298,640 3,624,003,103 1,856,010,903 3,630,786,246
------------- ------------- ------------ ------------
Capital shares issued
in connection with acquisition (Note 13) ... -- -- 7,517,642 --
------------- ------------- ------------ ------------
Reinvestment of dividends:
Class A Shares ............................. 704,399 (2,309,522) 754,235 1,557,341
Class B Shares .............................
Class C Shares .............................
------------- ------------- ------------ ------------
704,399 (2,309,522) 754,235 1,557,341
------------- ------------- ------------ ------------
Cost of shares reacquired:
Class A Shares ............................. (1,881,901,983) (3,666,968,333) (1,880,958,078) (3,663,391,147)
Class B Shares .............................
Class C Shares ............................. -- (1,637,306)
------------- ------------- ------------ ------------
(1,881,901,983) (3,668,605,639) (1,880,958,078) (3,663,391,147)
------------- ------------- ------------ ------------
Increase (decrease) in net assets resulting
from capital share transactions ............ 11,101,056 (42,293,014) (16,675,298) (31,047,560)
------------- ------------- ------------ ------------
Total increase in net assets ................ (3,831,419) (178,096,739) (16,675,298) (31,047,560)
NET ASSETS:
Beginning of period ......................... 232,944,326 411,041,065 76,649,948 107,697,508
------------- ------------- ------------ ------------
End of period ............................... $ 229,112,907 $ 232,944,326 $ 59,974,650 $ 76,649,948
------------- ------------- ------------ ------------
Undistributed (overdistributed)
distributions in excess of net investment
income or accumulated net investment loss .. $ (43,086) $ 162 $ (1,863) --
============= ============= ============ ============

</TABLE>

- ----------
+ The U.S. Government Money Fund does not have a designated class of shares.

See Notes to Financial Statements

<PAGE>

ASIA DYNASTY FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:

CLASS A
---------------------------------------------------------------------------
FOR THE
PERIOD
SIX MONTHS MARCH 22,
ENDED YEAR ENDED DECEMBER 31, 1993(A) TO
JUNE 30, 1998 ------------------------------------------- DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994 1993
---------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 7.82 $ 13.21 $ 12.40 $ 12.13 $ 15.28 $ 9.53
------- ------- ------- ------- ------- --------
Income from Investment Operations:
Net Investment Loss ............... (0.02) (0.28) (0.20) (0.02) -- (0.06)(b)
Net Gain (Loss) on Securities
(both Realized and Unrealized) ... (1.77) (3.82) 1.01 0.40 (2.86) 5.88
------- ------- ------- ------- ------- --------
Total from Investment Operations ... (1.79) (4.10) 0.81 0.38 (2.86) 5.82
------- ------- ------- ------- ------- --------
Less Distributions:
From Dividends from Net
Investment Income ............... -- -- -- (0.09) (0.07) --
From Distributions from
Capital Gains ................... -- (1.15) -- -- (0.22) (0.07)
From Tax Return of Capital ........ -- (0.14) -- (0.02) -- --
------- ------- ------- ------- ------- --------
Total Distributions ................ -- (1.29) -- (0.11) (0.29) (0.07)
------- ------- ------- ------- ------- --------
Net Asset Value, End of Period ..... $ 6.03 $ 7.82 $ 13.21 $ 12.40 $ 12.13 $ 15.28
======= ======= ======= ======= ======= ========
Total Return (c) ................... (22.89%) (32.10%) 6.53% 3.13% (18.72%) 61.16%
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .... $ 8,707 $12,873 $44,351 $64,275 $83,787 $108,661
Ratio of Gross Expenses to
Average Net Assets .............. 3.16%(d) 2.38% 2.42% 2.03% 1.85% 2.09%
Ratio of Net Expenses to Average
Net Assets ...................... 2.98%(d)(f) 2.38% 2.42% 2.03% 1.85% 1.92%(d)(f)
Ratio of Net Investment Loss to
Average Net Assets .............. (0.50%)(d) (0.76% (0.73%) (0.08%) --% (0.68%)(d)
Portfolio Turnover Rate ............ 48.01% 200.45% 52.99% 57.06% 51.08% 14.63%
Average Commission Rate Paid (e) ... $0.0017 $0.0024 $0.0049

</TABLE>

CLASS B
--------------------------------------------------------------------------
FOR THE
PERIOD
SIX MONTHS SEPTEMBER 1,
ENDED YEAR ENDED DECEMBER 31, 1993(A) TO
JUNE 30, 1998 ------------------------------------------ DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994 1993
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 7.63 $ 13.08 $ 12.33 $ 12.09 $ 15.25 $ 11.33
------ ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Loss ............... (0.04) (0.30) (0.24) (0.08) (0.06) (0.07)(b)
Net Gain (Loss) on Securities
(both Realized and Unrealized) ... (1.72) (3.86) 0.99 0.40 (2.86) 4.06
------ ------- ------- ------- ------- -------
Total from Investment Operations ... (1.76) (4.16) 0.75 0.32 (2.92) 3.99
------ ------- ------- ------- ------- -------
Less Distributions:
From Dividends from Net
Investment Income ............... -- -- -- (0.06) (0.02) --
From Distributions from
Capital Gains ................... -- (1.15) -- -- (0.22) (0.07)
From Tax Return of Capital ........ -- (0.14) -- (0.02) -- --
------ ------- ------- ------- ------- -------
Total Distributions ................ -- (1.29) -- (0.08) (0.24) (0.07)
------ ------- ------- ------- ------- -------
Net Asset Value, End of Period ..... $ 5.87 $ 7.63 $ 13.08 $ 12.33 $ 12.09 $ 15.25
====== ======= ======= ======= ======= =======
Total Return (c) ................... (23.07%) (32.87%) 6.08% 2.65% (19.15%) 35.22%
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .... $4,492 $ 6,914 $20,296 $27,234 $35,024 $26,205
Ratio of Gross Expenses to
Average Net Assets .............. 3.66%(d) 3.00% 2.86% 2.41% 2.38% 3.04%
Ratio of Net Expenses to Average
Net Assets ...................... 3.47%(d)(f) 3.00% 2.86% 2.41% 2.38% 3.04%(d)
Ratio of Net Investment Loss to
Average Net Assets .............. (1.00%)(d) (1.36%) (1.14%) (0.52%) (0.50%) (2.17%)(d)
Portfolio Turnover Rate ............ 48.01% 200.45% 52.99% 57.06% 51.08% 14.63%
Average Commission Rate Paid (e) ... $0.0017 $0.0024 $0.0049

</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. A sales charge is not reflected in the calculation of total
dividends and return. Total returns for periods of less than one year are
not annualized.
(d) Annualized.
(e) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose the average commission rate per share it paid for trades in
which a commission is charged.
(f) After expenses reduced by a custodian fee or advisory fee waiver
arrangement.

See Notes to Financial Statements

<PAGE>

EMERGING MARKETS GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:

CLASS A CLASS B CLASS C
----------------------------- ------------------------- -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 8.13 $ 9.52 $ 8.14 $ 9.52 $ 8.10 $ 9.52
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income ............. 0.11 0.16 0.08 0.15 0.13 0.13
Net Losses on Investments
(both Realized and Unrealized) ... (1.41) (1.31) (1.39) (1.28) (1.43) (1.28)
------- ------- ------- ------- ------- -------
Total from Investment Operations ... (1.30) (1.15) (1.31) (1.13) (1.30) (1.15)
------- ------- ------- ------- ------- -------
Less Distributions:
From Net Investment Income ........ (0.07) (0.09) (0.07) (0.10) (0.07) (0.12)
From Realized Gains ............... -- (0.15) -- (0.15) -- (0.15)
From Tax Return of Capital ........ -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Distributions ................ (0.07) (0.24) (0.07) (0.25) (0.07) (0.27)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period ..... $ 6.76 $8.13 $ 6.76 $ 8.14 $ 6.73 $ 8.10
======= ===== ======= ======= ======= =======
Total Return (a) ................... (15.99%) (12.22%) (16.09%) (12.01%) (16.05%) (12.22%)
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .... $ 1,652 $ 2,201 $ 152 $ 166 $ 203 $ 294
Ratio of Gross Expenses to
Average Net Assets (b) .......... 9.14%(c) 6.01% 26.98%(c) 16.47% 17.03%(c) 16.06%
Ratio of Net Expenses to
Average Net Assets .............. 0.68%(c) 0.00% 0.69%(c) 0.00% 0.69%(c) 0.00%
Ratio of Net Investment Income
to Average Net Assets ........... 2.70%(c) 1.94% 2.56%(c) 2.35% 2.69%(c) 2.66%
Portfolio Turnover Rate ............ 53.13% 151.00% 53.13% 151.00% 53.13% 151.00%
Average Commission Rate Paid ....... $0.0023 $0.0014 $0.0023 $0.0014 $0.0023 $0.0014

</TABLE>

- ----------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of distributions
and a redemption on the last day of the period. A sales charge is not
reflected in the calculation of total return. Total returns for periods of
less than one year are not annualized.
(b) If the expenses had not been assumed by the Adviser.
(c) Annualized.

See Notes to Financial Statements

<PAGE>

<TABLE>
<CAPTION>
GLOBAL BALANCED FUND
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:

CLASS A
--------------------------------------------------------------------------
FOR THE
PERIOD
SIX MONTHS DECEMBER 20,
ENDED YEAR ENDED DECEMBER 31, 1993(A) TO
JUNE 30, 1998 -------------------------------------- DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994 1993
-------------- ---- ---- ---- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .............. $10.38 $10.37 $10.31 $ 9.07 $9.53 $9.53
------ ------ ------ ------ ----- -----
Income from Investment Operations:
Net Investment Income ............................ 0.05 0.10 0.12 0.07(g) 0.19(g) --
Net Gain (Loss) on Securities
(both Realized and Unrealized) .................. 1.51 1.43 1.15 1.31 (0.56) --
------ ------ ------ ------ ----- -----
Total from Investment Operations .................. 1.56 1.53 1.27 1.38 (0.37) --
------ ------ ------ ------ ----- -----
Less Distributions:

From Dividends from Net Investment Income (e) .... (0.05) (0.08) (0.11) (0.14) (0.09) --
From Distribution from Capital Gains ............. -- (1.43) (1.10) -- -- --
From Tax Return of Capital ....................... -- (0.01) -- -- -- --
------ ------ ------ ------ ----- -----
Total Distributions ............................... (0.05) (1.52) (1.21) (0.14) (0.09) --
------ ------ ------ ------ ----- -----
Net Asset Value, End of Period .................... $11.89 $10.38 $10.37 $10.31 $9.07 $9.53
====== ====== ====== ====== ===== =====
Total Return (b) .................................. 15.04% 14.77% 12.28% 15.30% (3.90%) 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ................... $26,240 $24,630 29,331 30,632 $13,986 $562
Ratio of Gross Expenses To Average Net Assets ..... 2.36%(f) 2.45% 2.54% 2.69% 2.59% 7.76%
Ratio of Net Expenses to Average Net Assets ....... 2.00%(c)(f) 2.00%(c) 2.17%(c) 2.69% 1.06%(c) 0.25%(c)(f)
Ratio of Net Investment Income (Loss) to
Average Net Assets ............................... 0.94%(f) 0.85% 1.05% 0.68% 1.99% (0.25%)(f)
Portfolio Turnover Rate ........................... 46.83% 78.07% 114.30% 196.69% 174.76% 0.00%
Average Commission Rate Paid (d) .................. $0.0661 $0.0399 0.0399

</TABLE>

CLASS B
--------------------------------------------------------------------------
FOR THE
PERIOD
SIX MONTHS DECEMBER 20,
ENDED YEAR ENDED DECEMBER 31, 1993(A) TO
JUNE 30, 1998 -------------------------------------- DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994 1993
-------------- ---- ---- ---- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .............. $10.31 $10.32 $10.28 $ 9.02 $9.53 $9.53
------ ------ ------ ------ ----- -----
Income from Investment Operations:
Net Investment Income ............................ 0.02 0.04 0.06 0.01 0.11(g) --
Net Gain (Loss) on Securities Net Gain (Loss) on Securities
(both Realized and Unrealized) .................. 1.50 1.43 1.14 1.28 (0.57) --
------ ------ ------ ------ ----- -----
Total from Investment Operations .................. 1.52 1.47 1.20 1.29 (0.46) --
------ ------ ------ ------ ----- -----
Less Distributions:

From Dividends from Net Investment Income (e) .... (0.03) (0.03) (0.06) (0.03) (0.05) --
From Distribution from Capital Gains ............. -- (1.45) (1.10) -- -- --
From Tax Return of Capital ....................... -- -- -- -- -- --
------ ------ ------ ------ ----- -----
Total Distributions ............................... (0.03) (1.48) (1.16) (0.03) (0.05) --
------ ------ ------ ------ ----- -----
Net Asset Value, End of Period .................... $11.80 $10.31 $10.32 $10.28 $9.02 $9.53
====== ====== ====== ====== ===== =====
Total Return (b) .................................. 14.75% 14.26% 11.49% 14.54% (4.84%) 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ................... $5,724 $5,055 $4,932 $6,151 $5,628 $130
Ratio of Gross Expenses To Average Net Assets ..... 3.32%(f) 2.51% 3.19% 3.20% 3.21% 8.51%
Ratio of Net Expenses to Average Net Assets ....... 2.50%(c)(f) 2.50%(c) 2.71%(c) 3.20% 1.88%(c) 1.00%(c)(f)
Ratio of Net Investment Income (Loss) to
Average Net Assets ............................... 0.44%(f) 0.36% 0.51% 0.14% 1.14% (1.00%)(f)
Portfolio Turnover Rate ........................... 46.83% 78.07% 114.30% 196.69% 174.76% 0.00%
Average Commission Rate Paid (d) .................. $0.0661 $0.0399 0.0399
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Commencement of operations.
(b) 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. A sales charge is not reflected in the calculations of total return.
Total returns for periods of less than one year are not annualized.
(c) After expenses reduced by a custodian fee, directed brokerage or Advisory
fee waiver arrangement.
(d) 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.
(e) Net of foreign taxes withheld (to be included in income and claimed as a tax
credit on deduction by the shareholder for federal income tax purposes) of
$0.01 for 1997.
(f) Annualized.
(g) Based on average shares outstanding.

</TABLE>

See Notes to Financial Statements

<PAGE>

<TABLE>
<CAPTION>
GLOBAL HARD ASSETS FUND
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
CLASS A CLASS B
---------------------------------------------------------- ----------------------------
FOR THE
PERIOD
SIX MONTHS NOVEMBER 2, SIX MONTHS YEAR
ENDED YEAR ENDED DECEMBER 31, 1994(A) TO ENDED ENDED
JUNE 30, 1998 ---------------------------- DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994 (UNAUDITED) 1997
----------- ---- ---- ---- ---- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .. $15.50 $14.42 $10.68 $ 9.41 $9.53 $15.60 $14.50
Income from Investment Operations:
Net Investment Income (Loss) ......... 0.03 0.05 0.15 0.32(f) 0.010(f) (0.01) (0.01)
Net Gain (Loss) on Investments
(both Realized and Unrealized) ...... (2.39) 2.01 4.70 1.57 (0.115) (2.40) 2.00
Total from Investment Operations ...... (2.36) 2.06 4.85 1.89 (0.105) (2.41) 1.99
Less Distributions:
From Dividends from Net Investment Income (0.02) (0.02) (0.14) (0.62) (0.015) (0.02) --
From Distributions from Capital Gains . (0.02) (0.96) (0.95) -- -- (0.02) (0.89)
From Tax Return of Capital -- -- (0.02) -- -- -- --
Total Distributions .................... (0.04) (0.98) (1.11) (0.62) (0.015) (0.04) (0.89)
Net Asset Value, End of Period ......... $13.10 $15.50 $14.42 $10.68 $9.41 $13.15 $15.60
Total Return (b) ....................... (15.23%) 14.29% 45.61% 20.09% (1.10%) (15.45%) 13.72%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ........ $42,448 $61,341 $27,226 $3,820 $1,419 $9,120 $10,541
Ratio of Gross Expenses to
Average Net Assets (c) ................. 2.00%(e) 2.00% 2.63% 4.05% 3.40% 2.62%(e) 2.73%
Ratio of Net Expenses to
Average Net Assets ..................... 2.00%(e) 1.97% 0.72% 0.00% 0.15%(e) 2.50%(e) 2.50%
Ratio of Net Investment Income (Loss) to
Average Net Assets ................... 0.35%(e) 0.36% 1.45% 3.08% 0.84%(e) (0.17%)(e) (0.13%)
Portfolio Turnover Rate ................ 94.03% 118.10% 163.91% 179.33% 0.00% 94.03% 118.10%
Average Commission Rate Paid (d) ....... $0.0407 $0.0199 $0.0178 $0.0407 0.0407 $0.0199 $0.0178

</TABLE>

<TABLE>
<CAPTION>
CLASS B CLASS C
------------ --------------------------------------------------------------------
FOR THE FOR THE
PERIOD PERIOD
APRIL 24, SIX MONTHS NOVEMBER 2,
1996(A) TO ENDED YEAR ENDED DECEMBER 31, 1994(A) TO
DECEMBER 31, JUNE 30, 1998 ------------------------------------ DECEMBER 31,
1996 (UNAUDITED) 1997 1996 1995 1997
------------ ------------- ---- ---- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.55 $15.64 $14.52 $10.76 $ 9.41 $9.53
Income from Investment Operations:
Net Investment Income (Loss) 0.11 (0.01) (0.01) 0.11 0.34(f) 0.01(f)
Net Gain (Loss) on Investments
(both Realized and Unrealized) (2.95) (2.40) 2.00 4.73 1.63 (0.12)
Total from Investment Operations 3.06 (2.41) 1.99 4.84 1.97 (0.11)
Less Distributions:
From Dividends from Net Investment Income (0.14) (0.02) -- (0.11) (0.62) (0.01)
From Distributions from Capital Gains (0.95) (0.02) (0.87) (0.95) -- --
From Tax Return of Capital 0.02) -- -- (0.02) -- --
Total Distributions 1.11) (0.04) (0.87) (1.08) (0.62) (0.01)
Net Asset Value, End of Period 4.50 $13.19 $15.64 $14.52 $10.76 $9.41
Total Return (b) 24.55% (15.41%) 13.71% 45.18% 20.94% (1.20%)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) $1,806 $6,871 $8,698 $1,935 $181 $8
Ratio of Gross Expenses to
Average Net Assets (c) 3.27% 2.77%(e) 2.94% 6.02% 37.88% 39.49%
Ratio of Net Expenses to
Average Net Assets 1.64%* 2.50%(e) 2.50% 1.31% 0.00% 0.56%(e)
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.53%* (0.16%)(e) (0.15%) 0.84% 3.30% 0.53%(e)
Portfolio Turnover Rate 163.91% 94.03% 118.10% 163.91% 179.33% 0.00%
Average Commission Rate Paid (d) $0.0178 $0.0407 $0.0199 $0.0178
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Commencement of operations.
(b) 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. A sales charge is not reflected in the calculation of total return.
Total return for periods of less than one year are not annualized.
(c) Had the Adviser not assumed expenses or had expenses not been reduced by
custodian fee and directed brokerage arrangements. (d) 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.
(e) Annualized.
(f) Based on average shares outstanding.

</TABLE>

See Notes to Financial Statements

<PAGE>

GLOBAL REAL ESTATE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:

CLASS A CLASS B CLASS C
----------------------------- ----------------------------- ----------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED JUNE 23, 1997(D) ENDED OCTOBER 9, 1997(D) ENDED OCTOBER 9, 1997(D)
JUNE 30, 1998 TO DECEMBER 31, JUNE 30, 1998 TO DECEMBER 31, JUNE 30, 1998 TO DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .... $ 10.64 $ 9.52 $ 10.63 $ 11.46 $ 10.64 $ 11.46
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .................. 0.10 0.16 0.12 0.04 0.11 0.06
Net Gain (Loss) on Investments
(both Realized and Unrealized) ........ (0.12) 1.60 (0.14) (0.23) (0.13) (0.24)
------- ------- ------- ------- ------- -------
Total from Investment Operations ........ (0.02) 1.76 (0.02) (0.19) (0.02) (0.18)
------- ------- ------- ------- ------- -------
Less Distributions:
From Net Investment Income ............. (0.08) (0.13) (0.08) (0.13) (0.08) (0.13)
From Realized Gain ..................... -- (0.44) -- (0.44) -- (0.44)
From Tax Return of Capital ............. -- (0.07) -- (0.07) -- (0.07)
------- ------- ------- ------- ------- -------
Total Distributions ..................... (0.08) (0.64) (0.08) (0.64) (0.08) (0.64)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period .......... $ 10.54 $ 10.64 $ 10.53 $ 10.63 $ 10.54 $ 10.64
======= ======= ======= ======= ======= =======
Total Return (a) ........................ (0.19%) 18.49% (0.19%) (2.27%) (0.19%) (2.18%)
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ......... $ 3,298 $ 1,449 $ 290 $ 116 $ 163 $ 118
Ratio of Gross Expenses to
Average Net Assets (b)(c) .............. 7.54% 12.05% 16.03% 27.20% 26.51% 15.13%
Ratio of Net Expenses to
Average Net Assets (c) ................. 0.77% 0.00% 0.81% 0.00% 0.81% 0.00%
Ratio of Net Investment Income
to Average Net Assets (c) ............ 3.10% 3.95% 3.11% 6.70% 3.11% 5.13%
Portfolio Turnover Rate ................. 43.61% 82.00% 43.61% 82.00% 43.61% 82.00%
Average Commission Rate Paid ............ $0.0199 $0.0265 $0.0199 $0.0265 $0.0199 $0.0265

</TABLE>

See Notes to Financial Statements

<PAGE>

GOLD/RESOURCES FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:

CLASS A
----------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1998 --------------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ...................... $ 3.47 $ 5.72 $ 5.58 $ 5.35 $ 6.34 $ 3.56
------- ------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Loss .............. (0.02) (0.04) (0.06) (0.03) (0.02) (0.01)
Net Gain (Loss) on Securities
(both Realized and Unrealized) .. (0.23) (2.21) 0.20 0.26 (0.97) 2.79
------- ------- -------- -------- -------- --------
Total from Investment Operations .. (0.25) (2.25) 0.14 0.23 (0.99) 2.78
------- ------- -------- -------- -------- --------
Net Asset Value, End of Period .... $ 3.22 $ 3.47 $ 5.72 $ 5.58 $ 5.35 $ 6.34
======= ======= ======== ======== ======== ========
Total Return (a) .................. (7.20%) (39.34%) 2.51% 4.30% (15.60%) 78.09%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ... $57,438 $66,151 $132,298 $155,974 $186,091 $211,450
Ratio of Expenses to Average
Net Assets ..................... 2.18%(c) 1.87% 1.71% 1.81% 1.52% 1.39%
Ratio of Net Loss to Average
Net Assets ..................... (0.90%)(c) (0.57%) (0.75%) (0.44%) (0.30%) (0.29%)
Portfolio Turnover Rate ........... 28.40% 32.46% 12.95% 6.16% 13.75% 7.79%
Average Commission Rate Paid (b) .. $0.0157 $0.0185 $ 0.0186

</TABLE>

- ----------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period and a redemption on the last day
of the period. A sales charge is not reflected in the calculation of total
return. Total returns for periods of less than one year are not annualized.
(b) For the 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.
(c) Annualized.

See Notes to Financial Statements

<PAGE>

INTERNATIONAL INVESTORS GOLD FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:

CLASS A
-------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1998 -------------------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ......................... $ 7.54 $ 11.90 $ 13.35 $ 15.21 $ 16.08 $ 7.81
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income ............... 0.03 0.09 0.05 0.08 0.19 0.14
Net Gain (Loss) on Securities
(both Realized and Unrealized) ..... (0.80) (4.36) (1.29) (1.44) (0.36) 8.70
-------- -------- -------- -------- -------- --------
Total from Investment Operations ..... (0.77) (4.27) (1.24) (1.36) (0.17) 8.84
-------- -------- -------- -------- -------- --------
Less Distributions:
From Dividends from Net
Investment Income (a) ............. (0.03) (0.09) (0.07) (0.10) (0.18) (0.13)
From Distributions from Capital Gains -- -- (0.14) (0.38) (0.52) (0.44)
From Tax Return of Capital .......... -- -- -- (0.02) -- --
-------- -------- -------- -------- -------- --------
Total Distributions .................. (0.03) (0.09) (0.21) (0.50) (0.70) (0.57)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ....... $ 6.74 $ 7.54 $ 11.90 $ 13.35 $ 15.21 $ 16.08
======== ======== ======== ======== ======== ========
Total Return (b) ..................... (10.25%) (36.00%) (9.37%) (8.93%) (1.04%) 113.41%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ...... $229,113 $232,944 $409,331 $519,795 $634,808 $706,171
Ratio of Gross Expense to Average
Net Assets ........................ 1.66%(e) 1.52% 1.43% 1.42% 1.15% 1.12%
Ratio of Net Expenses to Average
Net Assets ........................ 1.66%(e) 1.47%(d) 1.43% 1.42% 1.15% 1.12%
Ratio of Net Income to Average
Net Assets ........................ 0.90%(e) 0.90% 0.36% 0.55% 1.23% 1.13%
Portfolio Turnover Rate .............. 32.76% 19.99% 12.45% 4.10% 7.08% 7.20%
Average Commission Rate Paid (c) ..... $ 0.0229 $ 0.0145 $ 0.0197

</TABLE>

- ----------
(a) Net of foreign taxes withheld (to be included in income and claimed as a tax
credit or deduction by the shareholder for federal income tax purposes) of
$0 for 1997, $0.01 for 1996, $0.03 for 1995, $0.07 for 1994 and $0.05 for
1993.
(b) 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. A sales charge is not reflected in the calculation of total return.
Total return for a period of less than one year is not annualized.
(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.
(d) After expenses reduced by a custodian fee and directed brokerage
arrangement.
(e) Annualized.

See Notes to Financial Statements

<PAGE>

U.S. GOVERNMENT MONEY FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:

SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1998 -----------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------- ------- -------- ------- ------- -------
Net Asset Value, Beginning
<S> <C> <C> <C> <C> <C> <C>
of Period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- -------- ------- ------- -------
Income from Investment Operations:
Net Investment Income ........... 0.0191 0.0377 0.0385 0.0456 0.0311 0.0183
Less Distributions:
From Net Investment Income ...... (0.0191) (0.0377) (0.0385) (0.0456) (0.0311) (0.0183)
------- ------- -------- ------- ------- -------
Net Asset Value, End of Period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======== ======= ======= =======
Total Return ..................... 3.85%(a) 3.77% 3.85% 4.56% 3.11% 1.83%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .. $59,975 $76,650 $107,698 $70,130 $47,078 $31,109
Ratio of Gross Expenses to
Average Net Assets ............ 1.32%(b) 1.28% 1.23% 1.25% 1.12% 1.24%
Ratio of Expenses to
Average Net Assets ............ 1.30%(a)(b) 1.28% 1.23% 1.25% 1.12% 1.24%
Ratio of Net Income to
Average Net Assets ............ 4.10%(b) 3.91% 4.02% 4.45% 3.07% 1.83%

</TABLE>

- ----------
(a) After expenses reduced by a custodian fee arrangement.
(b) Annualized.

See Notes to Financial Statements

<PAGE>

VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------

NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:

Van Eck Funds (the "Trust"), organized as a Massachusetts business trust on
April 3, 1985, is registered under the Investment Company Act of 1940. The Trust
operates as a series fund currently comprised of eight portfolios: Asia Dynasty
Fund, Emerging Markets Growth Fund, Global Balanced Fund, Global Hard Assets
Fund, Global Real Estate Fund, Gold/Resources Fund, International Investors Gold
Fund and U.S. Government Money Fund (the "Funds"). Asia Dynasty Fund, Emerging
Markets Growth Fund, Gold/Resources Fund, International Investors Gold Fund and
U.S. Government Money Fund are classified as diversified funds under the
Investment Company Act of 1940, as amended. Global Balanced Fund, Global Hard
Assets Fund and Global Real Estate Fund are non-diversified Funds. The following
is a summary of significant accounting policies consistently followed by the
Funds 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 or foreign exchanges 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 and listed
securities for which no sale was reported are valued at the mean of the bid
and asked prices. Short-term obligations are valued at amortized cost which
with accrued interest approximates value. Forward foreign 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 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 foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid and asked prices
of such currencies. 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 and the
appreciation (depreciation) attributable to foreign currency fluctuations on
other foreign denominated assets and liabilities are recorded as net
realized and unrealized gains and losses from foreign currency transactions,
respectively.

D. OTHER--Security transactions are accounted for on the date the securities
are purchased or sold. Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned.

E. DISTRIBUTIONS TO SHAREHOLDERS--Dividends to shareholders from net investment
income and realized gains, if any, are recorded on the ex-dividend date.
Income and capital gains distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles.

F. DEFERRED ORGANIZATION COSTS--Deferred organization costs are being amortized
over a period of five years.

G. USE OF DERIVATIVE INSTRUMENTS
OPTION CONTRACTS--The Funds 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 Funds 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.

H. SHORT SALES--The Funds may make short sales of equity securities. A short
sale occurs when the Fund sells a security which it does not own by
borrowing it from a broker. In the event that the value of the security that
the Fund sold short declines, the Fund will gain as it repurchases the
security in the market at the lower price. If the price of the security
increases, the Fund will suffer a loss as it will have to repurchase the
security at the higher price. Short sales may incur higher transaction costs
than regular securities transactions.

58
<PAGE>

VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------

The Fund has recorded these obligations in the financial statements at June
30, 1998, at market value of the related securities. Amounts deposited with
brokers for short sales of securities are reported as assets. $1,485,333 at
June 30, 1998, represents a segregated account maintained by the Fund for
its short sales. Proceeds from securities sold short are reported as
liabilities and are marked to market. Gains and losses are classified as
realized when short positions are closed. At June 30, 1998, the Fund had
realized loss of $530,663 and unrealized appreciation of $357,445 on short
sales of securities.

I. EQUITY SWAPS--The Fund may enter into equity swaps to gain investment
exposure to the relevant market of the underlying securities. A swap is an
agreement that obligates the parties to exchange cash flows at specified
intervals. In the case of the following swaps, the Fund is obligated to pay
the counterparty an amount based upon the value of the underlying instrument
at termination date. Final payment is settled based on the value of the
underlying securities 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 the following 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 swaps 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.

J. FUTURES--The Funds may buy and sell financial futures contracts which may
include security and interest-rate futures, stock and bond index futures
contracts and foreign currency futures contracts. The Funds may engage in
these transactions for hedging purposes and (except for Gold/Resources Fund)
for other purposes. Global Hard Assets Fund may also buy and sell commodity
futures contracts, which may include futures on natural resources and
natural resource indices. A security or interest-rate futures contract is an
agreement between two parties to buy or sell a specified security at a set
price on a future date. An index futures contract is an agreement to take or
make delivery of an amount of cash based on the difference between the value
of the index at the beginning and at the end of the contract period. A
foreign currency futures contract is an agreement to buy or sell a specified
amount of a currency for a set price on a future date. A commodity futures
contract is an agreement to take or make delivery of a specified amount of a
commodity, such as gold, at a set price on a future date.

NOTE 2--Van Eck Associates Corporation (the "Adviser") earns fees for investment
management and advisory services. Asia Dynasty Fund and Global Balanced Fund
each pay the Adviser a monthly fee at the annual rate of .75 of 1% average daily
net assets. Emerging Markets Growth Fund, Global Hard Assets Fund and Global
Real Estate Fund each pay the Adviser a monthly fee at the annual rate of 1% of
average daily net assets, a portion of which is paid to the Adviser for
accounting and administrative services it provides to the Fund. Gold/Resources
Fund and International Investors Gold Fund each pay the Adviser a monthly fee at
the annual rate of .75 of 1% of the first $500 million of the average daily net
assets of the Fund, .65 of 1% of the next $250 million of the average daily net
assets and .50 of 1% of the average daily net assets in excess of $750 million.
U.S. Government Money Fund pays the Adviser a monthly fee at the annual rate of
.50 of 1% of the first $500 million of average daily net assets, .40 of 1% of
the next $250 million of average daily net assets and .375 of 1% of average
daily net assets in excess of $750 million.

For the Emerging Markets Growth Fund and the Global Real Estate Fund, the
Adviser agreed to assume all expenses for the period January 1, 1998 to February
28, 1998 and for the period March 1, 1998 to June 30, 1998, the Adviser agreed
to assume expenses exceeding 1% of average daily net assets. Expenses were
reduced by $127,603 and $98,599, respectively, under this agreement. For the six
months ended June 30, 1998, for the Global Balanced Fund, the Adviser agreed to
assume expenses exceeding 2% of average daily net assets for Class A shares and
2.5% of average daily net assets for Class B shares. Expenses were reduced by
$68,900 under this agreement. For the six months ended June 30, 1998, for the
Global Hard Assets Fund, the Adviser agreed to assume expenses exceeding 2% of
average daily net assets for Class A shares and 2.5% of average daily net assets
for Class B and C shares. Expenses were reduced by $5,845 under this agreement.

Van Eck Associates Corporation also performs accounting and administrative
services for Asia Dynasty Fund, Global Balanced Fund, Gold/Resources Fund and
International Investors Gold Fund and is paid at an annual rate of .25 of 1% of
average daily net assets (Asia Dynasty Fund and Global Balanced Fund) or at an
annual rate of .25 of 1% of the first $750 million of each Fund's average daily
net assets and .20 of 1% of average daily net assets in excess of $750 million
(Gold/Resources Fund and International Investors Gold Fund).

In accordance with the advisory agreement, the Funds also reimbursed Van Eck
Associates Corporation for costs incurred in connection with certain
administrative and operating functions.

The Funds have a fee arrangement based on cash balances left on deposit with the
custodian which reduces operating expenses. For the six months ending June 30,
1998, the portion of expenses reduced under this arrangement amounted to $15,924
for the Asia Dynasty Fund, $774 for the Global Real Estate Fund and $8,482 for
the U.S. Government Money Fund. The Fund had some of the portfolio trades
directed to a broker-dealer who, in return, agreed to pay a portion of the
Funds' (except the U.S. Government Money Fund) expenses. For the six months
ending June 30, 1998, the portion of expenses reduced by this directed brokerage
arrangement amounted to $12,121 for the Global Hard Assets Fund, $322 for the
Global Real Estate Fund and $556 for the International Investors Gold Fund.

<PAGE>

VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------

For the six months ended June 30, 1998, Van Eck Securities Corporation (the
"Distributor") received commissions on sales of Class A shares and paid
commissions to other dealers as follows: Asia Dynasty Fund- $819 and $5,589,
respectively; Emerging Markets Growth Fund- $296 and $555, respectively; Global
Balanced Fund- $777 and $2,189, respectively; Global Hard Assets Fund- $22,576
and $138,250, respectively; Global Real Estate Fund- $26,553 and $55,351,
respectively; Gold/Resources Fund- $11,275 and $54,408, respectively and
International Investors Gold Fund- $40,781 and $216,090, respectively. Certain
of the officers and trustees of the Trust are officers, directors or
stockholders of Van Eck Associates Corporation and Van Eck Securities
Corporation. As of June 30, 1998, Van Eck Associates Corporation owned 21.4% of
the outstanding shares of Emerging Markets Growth Fund Class A.

NOTE 3--INVESTMENTS

The cost of investment securities held at June 30, 1998, for Federal income tax
purposes is the same as for financial reporting purposes. As of June 30, 1998,
gross unrealized gains and losses were as follows:

GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES GAIN (LOSS)
---------- ----------- -------------
<S> <C> <C> <C>
Asia Dynasty Fund ......................... $ 887,670 $ 3,134,807 $ (2,247,137)
Emerging Markets Growth Fund .............. 82,912 492,548 (409,636)
Global Balanced Fund ...................... 9,353,460 472,398 8,881,062
Global Hard Assets Fund ................... 3,949,420 10,122,369 (6,172,949)
Global Real Estate Fund ................... 109,671 139,614 (29,943)
Gold/Resources Fund ....................... 6,245,709 21,051,208 (14,805,499)
International Investors Gold Fund ......... 42,573,042 48,703,743 (6,130,701)

</TABLE>

Purchases and sales of investment securities for the year ended June 30, 1998,
other than short-term obligations, were as follows:

PROCEEDS
COST OF FROM
INVESTMENT INVESTMENT
SECURITIES SECURITIES
PURCHASED SOLD
------------- -----------
Asia Dynasty Fund ................. $ 7,235,316 $ 6,696,602
Emerging Markets Growth Fund ...... 1,244,474 1,618,601
Global Balanced Fund .............. 14,167,455 15,824,368
Global Hard Assets Fund ........... 60,102,520 64,640,346
Global Real Estate Fund ........... 2,827,328 907,070
Gold/Resources Fund ............... 18,545,305 25,575,839
International Investors Gold Fund . 70,200,902 66,534,584

Transactions in call and put options written for the six months ended June 30,
1998 were as follows:

NUMBER OF
CONTRACTS PREMIUMS
--------- ---------
GLOBAL BALANCED FUND:
Options outstanding at beginning of year ...... -- $ --
Options written ............................... 3,380 14,495
Options exercised ............................. -- --
----- -------
Options outstanding at end of six months ...... 3,380 $14,495
===== =======

NOTE 4--Pursuant to a Rule 12b-1 Plan of Distribution (the "Plan") the Funds are
authorized to incur distribution expenses which will principally be payments to
securities dealers who have sold shares and service shareholder accounts and
payments to the Distributor for reimbursement of other actual promotion and
distribution expenses incurred by the Distributor on behalf of the Fund. The
amount paid under the Plan in any one year is limited to .50% of average daily
net assets for Class A shares and 1.00% of average daily net assets for Classes
B and C shares (the "Annual Limitations"). For Class C shares, the Funds will
pay to the selling broker at the time of sale 1% of the amount of the purchase.
Such Class C 12b-1 fees will be expensed by the Fund over the course of the
first twelve months from the time of purchase. Should the payments to the
brokers made by the Funds exceed, on an annual basis, 1% of average daily net
assets, the Distributor will reimburse the Fund for any excess. Class C
shareholders redeeming within one year of purchase will be subject to a 1%
redemption charge which will be retained by the Funds. After the first year, the
1% 12b-1 fee will be paid to the Distributor, which will retain a portion of the
fee for distribution services and pay the remainder to brokers.

Distribution expenses incurred under the Plan that have not been paid because
they exceed the Annual Limitation may be carried forward to future years and
paid by the Funds within the Annual Limitation. The Distributor has waived its
right to reimbursement of the carried forward amounts incurred through June 30,
1998 in the event the Plan is terminated, unless the Board of Trustees
determines that reimbursement of the carried forward amounts is appropriate. The
accumulated amount of excess distribution expenses incurred over the Annual
Limitations as of June 30, 1998, were as follows: Asia Dynasty Fund- $1,153,062
for Class A shares and $1,474,265 for Class B shares; Emerging Markets Growth
Fund- $39,918 for Class A shares, $15,974 for Class B shares and $16,490 for
Class C shares; Global Balanced Fund- $775,694 for Class A shares and $402 for
Class B shares; Global Hard Assets Fund- $747,973 for Class A shares, $87,056
for Class B shares and $87,056 for Class C shares and Global Real Estate Fund-
$47,584 for Class A shares, $18,180 for Class B shares and $17,807 for Class C
shares.

<PAGE>

NOTE 5--Shares of Beneficial Interest Issued and Redeemed (unlimited number of
$.001 par value shares authorized):

ASIA DYNASTY FUND
---------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS A
Shares sold 559,947 3,318,502
Shares reinvested -- 181,760
-------- ----------
559,947 3,500,262
Shares reacquired (762,843) (5,211,712)
-------- ----------
Net decrease (202,896) (1,711,450)
======== ==========
CLASS B
Shares sold 47,829 77,616
Shares reinvested -- 63,889
-------- ----------
47,829 141,505
Shares reacquired (188,791) (786,465)
-------- ----------
Net decrease (140,962) (644,960)
======== ==========

<PAGE>

VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
- --------------------------------------------------------------------------------

EMERGING MARKETS GROWTH FUND
---------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS A
Shares sold 22,955 366,733
Shares reinvested 2,371 6,673
-------- --------
25,326 373,406
Shares reacquired (51,382) (103,860)
-------- --------
Net increase (decrease) (26,056) 269,546
======== ========
CLASS B
Shares sold 7,616 22,920
Shares reinvested 216 417
-------- --------
7,832 23,337
Shares reacquired (5,723) (4,041)
-------- --------
Net increase 2,109 19,296
======== ========
CLASS C
Shares sold 3,718 35,075
Shares reinvested 308 977
-------- --------
4,026 36,052
Shares reacquired (10,136) (756)
-------- --------
Net increase (decrease) (6,110) 35,296
======== ========

GLOBAL BALANCED FUND
---------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS A
Shares sold 88,947 254,371
Reinvestment of dividends 8,606 275,587
-------- --------
97,553 529,958
Shares reacquired (263,096) (511,329)
-------- --------
Net increase (decrease) (165,543) 18,629
======== ========
CLASS B
Shares sold 40,321 62,268
Reinvestment of dividends 971 46,594
-------- --------
41,292 108,862
Shares reacquired (46,492) (96,388)
-------- --------
Net increase (decrease) (5,200) 12,474
======== ========

GLOBAL HARD ASSETS FUND
---------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS A
Shares sold 589,493 4,256,903
Shares reinvested 8,417 187,935
-------- --------
597,910 4,444,838
Shares reacquired (1,316,389) (2,375,388)
-------- --------
Net increase (decrease) (718,479) 2,069,450
======== ========
CLASS B
Shares sold 143,745 581,566
Shares reinvested 1,472 24,699
-------- --------
145,217 606,265
Shares reacquired (127,618) (54,979)
-------- --------
Net increase 17,599 551,286
======== ========
CLASS C
Shares sold 113,995 530,380
Shares reinvested 1,062 19,703
-------- --------
115,057 550,083
Shares reacquired (150,136) (127,212)
-------- --------
Net increase (decrease) (35,079) 422,871
======== ========

<PAGE>

GLOBAL REAL ESTATE FUND
---------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS A
Shares sold 183,242 136,149
Shares reinvested 2,051 7,585
-------- --------
185,293 143,734
Shares reacquired (8,621) (7,605)
-------- --------
Net increase 176,672 136,129
======== ========

SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS B
Shares sold 16,693 10,273
Shares reinvested 175 618
-------- --------
16,868 10,891
Shares reacquired (221) --
-------- --------
Net increase 16,647 10,891
======== ========

FOR THE PERIOD
SIX MONTHS OCTOBER 9, 1997+
ENDED TO
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS C
Shares sold 7,123 10,518
Shares reinvested 84 584
-------- --------
7,207 11,102
Shares reacquired (2,818) --
-------- --------
Net increase 4,389 11,102
======== ========

- ----------
+ Commencement of operations.

<PAGE>

VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
- --------------------------------------------------------------------------------

GOLD/RESOURCES FUND
---------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
CLASS A
Shares sold 2,605,158 6,851,960
Shares issued in
connection with
an acquisition -- 747,606
---------- -----------
2,605,158 7,599,566
Shares reacquired (3,837,051) (11,649,413)
---------- -----------
Net decrease (1,231,893) (4,049,847)
========== ==========

INTERNATIONAL INVESTORS GOLD FUND
---------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------

CLASS A
Shares sold 245,565,272 363,779,256
Shares reinvested 94,082 249,835
------------ ------------
245,659,354 364,029,091
Shares reacquired (242,564,425) (367,513,556)
------------ ------------
Net increase (decrease) 3,094,929 (3,484,465)
============ ============

U.S. GOVERNMENT MONEY MARKET FUND
---------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
---------- ----------
Shares sold 1,856,010,903 3,630,786,246
Shares issued in
connection with
an acquisition 7,517,642 --
Shares reinvested 754,235 1,557,341
-------------- --------------
1,864,282,780 3,632,343,587
Shares reacquired (1,880,958,078) (3,663,391,147)
-------------- --------------
Net decrease (16,675,298) (31,047,560)
============== ==============

NOTE 6--STRUCTURED NOTES--The Global Hard Assets Fund and Global Real Estate
Fund may invest in indexed securities whose value is linked to one or more
currencies, interest rates, commodities, or financial or commodity indices. An
indexed security enables the investor to purchase a note whose coupons and/or
principal redemption are linked to the performance of an underlying asset.
Indexed securities may be positively or negatively indexed (i.e., their value
may increase or decrease if the underlying instrument appreciates). Indexed
securities may have return characteristics similar to direct investments in the
underlying instrument or to one or more options on the underlying instrument.
Indexed securities may be more volatile than the underlying instrument itself,
and present many of the same risks as investing in futures and options. Indexed
securities are also subject to credit risks associated with the issuer of the
security with respect to both principal and interest.

When a structured note is purchased (a non-publicly traded indexed security
entered into directly between two parties) it will make a payment of principal
to the counterparty. Some structured notes have a guaranteed repayment of
principal while others place a portion (or all) of the principal at risk. The
Fund will purchase structured notes only from counterparties rated A or better
by S&P, Moody's or another nationally recognized statistical rating
organization. Van Eck Associates Corp. will monitor the liquidity of structured
notes under supervision of the Board of Trustees and structured notes determined
to be illiquid will be aggregated with other illiquid securities and subject to
the Funds' limitation on illiquid securities.

At June 30, 1998, Global Hard Assets Fund had a Morgan Guaranty Trust Co.
Gold/Silver Ratio Indexed Note with a value of $1,326,080 that represented 2.27%
of the net assets of the Fund.

NOTE 7--FORWARD FOREIGN CURRENCY CONTRACTS--The Fund may buy and sell forward
currency contracts to settle purchases and sales of foreign denominated
securities. In addition, the Funds (except U.S. Government Money Fund) may enter
into forward currency contracts to hedge foreign denominated assets. Realized
gains and losses from forward foreign currency contracts are included in
realized loss from foreign currency transactions. At June 30, 1998, the Funds
had the following outstanding forward foreign currency contracts.

VALUE AT UNREALIZED
SETTLEMENT CURRENT APPRECIATION
CONTRACTS DATE VALUE DEPRECIATION)
- --------- ----------- -------- ------------
GLOBAL BALANCED FUND
Foreign Currency Purchase Contracts:
AUD 22,500 expiring 7/20/98 $ 13,842 $ 13,199 $ 643
CAD 881,000 expiring 7/20/98 600,127 602,022 (1,895)
CHF 117,624 expiring 7/14/98 77,364 80,000 (2,636)
DEM 1,815,159 expiring 8/24/98 1,007,317 1,014,677 (7,360)
ESP 88,486,000 expiring 7/29/98 577,088 582,767 (5,679)
FIM 1,690,000 expiring 7/30/98 308,052 312,036 (3,984)
GBP 425,478 expiring 7/06/98-7/13/98 753,566 743,241 10,325
ITL 40,920,000 expiring 7/20/98 22,964 23,320 (356)
JPY 50,296,000 expiring 7/13/98 358,540 345,782 12,758
SEK 963,834 expiring 7/02/98-7/14/98 120,547 122,549 (2,002)
--------
(186)
--------
Foreign Currency Sale Contracts:
ATS 3,352,000 expiring 8/24/98 $ 264,372 267,171 2,799
AUD 743,980 expiring 7/06/98-7/20/98 458,247 439,334 (18,913)
CHF 269,000 expiring 7/20/98 176,928 179,333 2,405
DEM 1,592,000 expiring 8/24/98 883,475 892,877 9,402
FRF 896,000 expiring 8/24/98 148,332 149,832 1,500
GBP 783,000 expiring 7/13/98 1,303,811 1,306,165 2,354
GRD 73,800,000 expiring 7/22/98 241,902 241,413 (489)
HKD 1,437,358 expiring 7/02/98 185,537 185,506 (31)
JPY 197,833,425 expiring 7/13/98-7/15/98 1,411,115 1,487,492 76,377
NLG 751,000 expiring 8/24/98 369,693 374,004 4,311
SEK 958,000 expiring 7/14/98 119,872 125,722 5,850
ZAR 984,000 expiring 8/26/98 159,423 176,819 17,396
--------
102,961
--------
$102,775
========

GLOBAL HARD ASSETS
Foreign Currency Sale Contracts:
AUD 7,135 expiring 5/27/98 $ 4,417 $ 4,462 $ 45
CAD 10,000,000 expiring 9/16/98 6,820,910 6,794,863 (26,047)
--------
$(26,002)
========

GLOBAL REAL ESTATE FUND
Foreign Currency Purchase Contracts:
JPY 6,633,145 expiring 7/02/98 $47,668 $ 47,659 $ (9)
Foreign Currency Sale Contracts:
JPY 9,500,000 expiring 9/16/98 68,269 69,000 731
--------
$ 722
========

<PAGE>
VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
- --------------------------------------------------------------------------------

NOTE 8--The Funds (except U.S. Government Money Fund) invest 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 rules as are U.S.
companies, and there may be less governmental supervision and regulation.
Foreign investments may also be subject to foreign taxes, dividend collection
fees and settlement delays.

The Fund may concentrate its investments in companies which are significantly
engaged in the exploration, development, production or distribution of precious
metals, ferrous and non-ferrous metals, oil and gas, forest products, real
estate and other non-agricultural commodities. Since the Fund may so
concentrate, it may be subject to greater risks and market fluctuations than
other more diversified portfolios.

NOTE 9--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. If a
Trustee has directed all or a portion of his fee to be invested in the Fund, the
unfunded liability remains outstanding in the Fund's records since the Fund can
not invest in itself. 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 liability portion of the Plan is as follows:

Asia Dynasty Fund-$11,552, Emerging Markets Growth Fund- $351, Global Balanced
Fund-$7,332, Global Hard Assets Fund-$11,621, Global Real Estate Fund-$131,
Gold/Resources Fund-$25,165, International Investors Gold Fund-$86,271 and U.S.
Government Money Fund-$20,721.

NOTE 10--RESTRICTED SECURITIES

The following securities are restricted as to sale:

PERCENT OF
DATES NET ASSETS
ACQUIRED COST VALUE AT 6/30/98
------- -------- -------- -----------
GLOBAL HARD ASSETS
AltaGas Service Inc.
(Special Warrants
expiring 1/24/99) 4/23/98 $250,480 $244,322 0.4%
Brazilian Resources Inc.
(Special Warrants
expiring 9/11/98) 3/12/97 223,102 103,623 0.2%
KAPPA Energy Co. Inc.
(Special Warrants
expiring 6/04/99) 6/01/98 71,564 50,124 0.1%

NOTE 11--SCHEDULE OF AFFILIATED COMPANY TRANSACTIONS: Transactions with
affiliates (as defined by the Investment Company Act of 1940) for the six months
ended June 30, 1998:

GOLD/ INTERNATIONAL
RESOURCES INVESTORS
FUND GOLD FUND
---------- ----------
PIEDMONT MINING CO.
12/31/97 Share Balance 1,000,000 1,270,000
PURCHASES:
Shares -- --
Cost -- --
SALES:
Shares -- --
Cost -- --
Realized Gain (Loss)
6/30/98 Share Balance 1,000,000 1,270,000
Market Value $ 110,000 $ 139,700
Dividend Income
-- --

NOTE 12--Collateral for repurchase agreements, the value of which must be at
least 102% of the underlying debt obligation, is held by the Funds' custodian.
In the remote chance the counterparty should fail to complete the repurchase
agreement, realization and retention of the collateral may be subject to legal
proceedings and the Fund would become exposed to market fluctuation on the
collateral.

NOTE 13--ACQUISITIONS
GOLD/RESOURCES FUND: As of the close of business on October 28, 1997, the Fund
acquired all the net assets of Gold Opportunity Fund pursuant to a plan of
reorganization approved by Gold Opportunity Fund shareholders on October 1,
1997. The acquisition was ac-complished by a tax-free exchange of 747,606 shares
of Gold/Resources Fund (valued at $3,020,329) for the 479,753 shares of Gold
Opportunity Fund outstanding on October 28, 1997. Gold Opportunity Fund's net
assets at that date, $3,020,329, including $2,555,763 of unrealized
depreciation, were combined with those of the Gold/Resources Fund. The aggregate
net assets of Gold/Resources Fund and Gold Opportunity Fund before the
acquisition were $77,923,306 and $3,020,329, respectively.

U.S. GOVERNMENT MONEY FUND:
As of the close of business on April 24, 1998, the Fund acquired all the net
assets of Van Eck/Chubb Money Market Fund pursuant to a plan of reorganization
approved by Van Eck/Chubb Money Market Fund shareholders on April 16, 1998. The
acquisition was accomplished by a tax-free exchange of 7,517,642 shares of U.S.
Government Money Fund (valued at $7,517,642) for the 7,517,642 shares of Van
Eck/Chubb Money Market Fund outstanding on April 24, 1998. Van Eck/Chubb Money
Market Fund's net assets at that date, $7,517,642, were combined with those of
the U.S. Government Money Fund. The aggregate net assets of the U.S. Government
Money Fund and Van Eck/Chubb Money Market Fund before the acquisition were
$32,921,989, and $7,517,642, respectively.

63
<PAGE>

Investment Adviser: Van Eck Associates Corporation
Distributor: Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016 www.vaneck.com
Account Assistance: (800) 544-4653

FR 1998-0818-0049